LA_0811_O

L O U I S I A N A I N D E P E N D E N T A U T O M O B I L E D E A L E R S A S S O C I A T I O N

The

OPEN ROADPRSRT Standard

U.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

V i s i t u s a t w w w . l o u i s i a n a i a d a . c o m

AU

GU

ST/S

EPTE

MBE

R 2011

ALSO Understanding Buy Here-Pay Here Customers PLUS Evaluate Core Inventory to Sell Cars Faster

SCOTT ALLEN NAMED 2011 NATIONAL QUALITY DEALER

The Miss-Lou

Convention & Expo

will take place August

17-21, 2011 at the

Grand Hotel Marriott

Resort in Point Clear, AL

For more information

and to register see

page 18 OR visit

Louisiana.com.

SEE YOU THERE

LA_0811.indd 1 7/20/11 9:56 AM

LA_0811.indd 2 7/20/11 9:56 AM

AUGUST/SEPTEMBER 2011 T H E O P E N R O A D

3

w w w . l o u i s i a n a i a d a . c o m

ADVERTISERSINDEXADESA....................................................................... 11Auto Portfolio Services ............................................. 23AutoTrader.com ............................................Back CoverCars.com ........................................... Inside Back CoverChase......................................................................... 21First Consumers Financial ......................................... 19LA’s 1st Choice Auto Auction ......... Inside Front CoverManheim.com ........................................................... 22Manheim Houston .................................................... 13Manheim Mississippi ...................................................9Manheim New Orleans ...............................................5Protective .................................................................. 17SmartAuction ............................................................ 15TD Auto Finance .......................................................... 7United Acceptance .................................................... 20

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATIONWWW.NIADA.COM • WWW.NIADA.TVNIADA HEADQUARTERS: 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR [email protected].

THE OPEN ROAD IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES CORPORATION, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203; PHONE 817-640-3838. PERIODICALS POSTAGE PAID AT DALLAS, TX AND AT ADDITIONAL OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO NIADA STATE PUBLICATIONS, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203. THE STATEMENTS AND OPINIONS EXPRESSED HEREIN ARE THOSE OF THE INDIVIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF THE OPEN ROAD OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NIADA, DOES NOT CON-STITUTE ANENDORSEMENT OF THE PRODUCTS OR SERVICES FEA-TURED. COPYRIGHT © 2011 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED.STATE MAGAZINE MGR./SALES Troy Graff • [email protected] Mike Harbour • [email protected]/PRODUCTION MGR. Christy Haynes • [email protected] Nieman Printing

We would love to invite you to the Miss-Lou Convention 2011 at The Grand Hotel in Point Clear, Ala. You can call 800-544-9933 to book your rooms and let them know you’re attending the Miss-Lou Convention. You can find your registration form for the convention in this issue.

Dealer should be aware the Louisiana Department of Public Safety has implemented a requirement “Electronic Temporary Tags submission.” You can read more about this on our website at www.louisianaiada.com or the agency’s site at www.lmvc.la.gov.

Join the LIADA and continue to make the right decisions for your dealership. We will save you money with the checkbooks you can use at the auctions, forms that you need to run your business and we also offer garage liability. Let us give you the peace of mind in knowing your insurance is worry free. Call our servicing agents at 225-667-4421 and get a quote today!

You can contact LIADA at 800-960-5423 or [email protected] if you have any questions. Don’t forget to visit www.louisianaiada.com, too.

Thank you, Val ClaryLIADA President

A MESSAGE FROM THE PRESIDENT

PRESIDENTVal ClaryCourtesy Auto Sales Inc.3570 Greenwood RoadShreveport, LA [email protected] (fax)

PRESIDENT EMERITUSJ.L. RichardP.O. Box 481Carencro, LA [email protected] (fax)

IMMEDIATE PAST PRESIDENTDoug Perry Doug Perry Wholesale Cars734 Bayou Shores DriveMonroe, LA [email protected] (fax)

VICE PRESIDENTBrad SaiaSAIA Auto Consultant7212 Goodwood Ave.Baton Rouge, LA [email protected] (fax)

SECRETARYDino TaylorFreedom Motors, Inc601 Trenton StreetWest Monroe, LA 71291318-503-3369

2011 LIADA BOARD OF DIRECTORSClint BlakeyBlakey Auto Plex LLC3601 Benton RoadBossier City, LA [email protected]

Danny Moore D Moore Auctioneers15481 Airline Hwy.Baton Rouge, LA [email protected]

Scott LedetLedet’s Auto SalesP.O. Box 1505Gonzales, LA [email protected] 225-644-2419 (fax)

Steve TaylorCar Town of Monroe Inc.319 N. 3rd St.Monroe, LA [email protected] (fax)

Junior GonzalezPan-Am LLC201 Chalet DriveLafayette, LA 70508 [email protected] 337-234-7170 (fax)

Kevin RembertManheim New OrleansP.O. Box 320Slidell, LA [email protected] (fax)

John BrakefieldBlue Ribbon Motors Inc.8308 Airline Hwy.Baton Rouge, LA 70815225-925-8931225-926-0736 (fax)

Philip CrainRide Time LLC319 N. 3rd St.Monroe, LA [email protected] (fax)

Wayne PattPatt Enterprises15150 Florida Blvd.Baton Rouge, LA [email protected]

Michael McCainMagic Motors7960 Florida Blvd.Baton Rouge, LA [email protected]

FOR INFORMATION ON HOW TO BECOME A MEMBER OF LIADA, PLEASE CONTACT SHEILA JONES AT 225-275-8088 OR [email protected]

LIADA OFFICE:1630 NORTH FLANNERY ROAD BATON ROUGE, LA 70815

EMAIL:[email protected]

WEBSITE:WWW.LOUISIANAIADA.COM

2011 LIADA BOARD OF DIRECTORS

INSIDEMAGAZINECONTENTS

Sales • Operations • F&I • Remarketing • Compliance • Legal/Regulatory

• Special Features • Industry Events

PLUS:Automotive Industry News & Special Monthly Programs

FREEDEALER EDUCATION ONLY ON NIADA.TV24/7

Dealer Education

4 Scott Allen Named 2011 National Quality Dealer6 Understanding Buy Here-Pay Here Customers8 Evaluate Core Inventory to Sell Cars Faster

www.niada.tv

LA_0811.indd 3 7/20/11 12:12 PM

T H E O P E N R O A D AUGUST/SEPTEMBER 2011

4


4

30 A U G U S T 2 O 1 1 W W W . N I A D A . C O M

Confirmation of success in business can take many forms. Somemight consider the number of years in operation as a goodsign, while others may put stock in steadily improving annual

sales figures. For Scott Allen, confirmation took another form afterhe was named 2011 National Quality Dealer (NQD) of the Yearduring NIADA’s 65th Annual Convention and Expo in June.

“I think it means I’m on the right track,” said the 49-year-oldTexan, who’s owned and operated Auto Land in Haltom City, Texas,since 1991. Allen, a member of Texas IADA and NIADA for 17years, is the sixth NQD from the Lone Star State, and also is a NIADACertified Master Dealer.

“I’m still a little in shockfrom winning the award,” he said.

“I’m absolutely going to takeadvantage of the opportunityand, yes, we are going tobe marketing it heavily.Joe (Lescota, CMD programinstructor) is going to laugh atthis because one of his jokes isgetting a big gorilla and puttingit on your building. Well, I’vegot a reason to put a gorilla onmy building now.”

While Allen isn’t planningto actually rent an inflatable

primate, he definitely wants topromote the honor, albeit in a

tasteful manner.“We’re getting a huge

archway that’s probably 36 feetwide and about 20 feet

high that isgoing to

come

across our entrance,” he said. “It’s going to say ‘Stophere and see why Auto Land is NIADA’s National Quality Dealer ofthe Year.’”

Allen and 19 fellow candidates from across the country werejudged by a Northwood University panel that looked at a variety offactors to make its selection, including contributions to the auto-motive industry and community involvement. The candidates com-pete for the national award after being named as quality dealers bytheir respective state associations.

Involvement may as well be Allen’s middle name. Besidesbeing active in TIADA (he’s the 2011 president elect) and theFort Worth dealer association chapter (where he served as presidentfrom 2006 to 2010), Allen even formed a business association inHaltom City to fight unfair ordinances that threatened his dealershipas well as others.

Working with others, Allen said, is what’s helped him succeed.“I would say there is power in numbers,” he said. “Part of the

thing that got me into forming the Haltom Urban Business Associa-tion and getting involved in the local planning and zoning processand the city council had to do with the fact that we wanted to builda new building.”

City codes prevented such construction, so Allen, other dealersand even a salvage yard owner got together, and then met with otherbusiness owners in the vicinity, too.

They began to join our association, we had weekly meetingsand then we wrote several letters, made appearances at the citycouncil meetings and before we knew it, they decided maybe theyneeded to revisit this when it went from one or two guys who hadto say something about it to over 100,” he said. “Alone, I know Icould’ve never gotten that done.”

Allen, whose dealership stocks more than 75 vehicles dailyand employs eight people, applied the same idea to how he soughtadvice on improving his business.

“Some of it had to do with losing my father in 2003. He wasa real rock for me. We bounced ideas and thoughts off each otheron a regular basis and I really had a void and was missing somethingthere. At that point, I decided I needed to build a better networkof dealer friends to do those same kinds of things I used to dowith my father and it just snowballed,” Allen said. “I thinkvisibility and strength in numbers would be one of the greatestassets that an association like NIADA, TIADA or any automobileassociation can provide.”

Perhaps Allen’s greatest business epiphaniy occurred when hecompleted the CMD program in 2009.

“It had an immediate impact. I went from a guessing game toknowing where I stand,” he said. “The financial part of it was justamazing, such as being able to drill down to the cost of holding avehicle on your lot per day. I never knew how to get formulas or howto put those numbers together to get those.”

Another aspect of the course Allen appreciated was itstimeliness and flexibility.

“I went into this CMD class was when the economy began totank and Joe Lescota, who had an exact regimen for his classes eachtime, right on the very first day, said, ‘OK guys, you’re hurting and Iknow it and I’m going to throw this book out. There are two or threethings that we’re going to have to cover, but we need to drill downand start talking about your businesses and find out what’s goingon,’” Allen said.

As for the NQD award, Allen said his staff was just as thrilledas he was about being chosen for it. “Immediately, they’re using itin their spiels and they think it builds value,” he said, “and it does,in the company and what we do.”

LA_0811.indd 4 7/20/11 9:56 AM

LA_0811.indd 5 7/20/11 9:56 AM


6


2011 BHPH Buyer Study from AutoTrader.com

Key Messages to Communicate Focus on Approval: Since approval is a BHPH shoppers’ top concern, messages about financing approval should take precedence in BHPH dealer advertising – both online and offline. Talk about Speed of Process: When making a dealership selection, many BHPH shoppers are interested finding a dealer who can handle the vehicle purchase process quickly, according to the study. The good news is 83 percent of BHPH dealers complete the buying process in two hours or less. As a result, this message is an important one to include in your advertising. For example, “Get Your Car in Less Than 2 Hours!” Consider Reporting Customer Payments to Credit Bureaus: Only 37 percent of BHPH customers’ payments appear on their credit report; however, 63 percent of BHPH customers would like their payments reported. As a result, BHPH dealers should consider using messages such as, “We Can Help You Rebuild Your Credit.” Just be sure, if you advertise this message, you can follow through on it. Also, don’t forget to vet this message with your legal counsel.

The FindingsFour out of five BHPH customers conduct

research before visiting the dealership. According to the study, 81 percent of BHPH vehicle buyers said they performed either some or a great deal of research as part of the car shopping process before going to a dealership compared to the 19 percent who stated they conducted very little research.

Seventy percent of BHPH shoppers regularly use the Internet; that’s as much as traditional shoppers for general purposes. However, BHPH car buyers do not use the Internet for vehicle shopping as much as traditional auto buyers.

With four out of five shoppers conducting research prior to visiting a dealership coupled with the high percentage of BHPH customers already online, the implication is there’s an opportunity for BHPH dealers to reach and influence their shoppers by tapping into the online automotive space with advertising messages and information that resonate with the targeted consumer.

It’s important for BHPH dealers to align their advertising with the unique needs of BHPH shoppers. The need for financing approval drives the shopping process for BHPH shoppers. Nearly two out of three BHPH customers enter the process with securing financing or identifying a dealer as their first priority. While this information is in line with what the BHPH industry has long suspected, the key is to align your advertising messages with the shopping priorities of your customer base. Effectively communicating the right messages in your advertising may dramatically improve the chances of turning a shopper into an actual customer.

In October 2010 and January 2011, the National Alliance of Buy Here-Pay Here Dealers (NABD) and AutoTrader.com teamed up for a groundbreaking study to define the consumer profile of the average BHPH customer and to understand the unique shopping needs of this customer segment. The two-part study included qualitative focus groups conducted in Los Angeles and Dallas and a national quantitative online survey among 606 BHPH buyers who purchased within the previous 18 months.

The results of this study affirm for the first time many common perceptions among the BHPH community about the priorities and behaviors of BHPH customers. There are also some new findings about their Internet usage as well as the amount of research BHPH shoppers are conducting prior to visiting a dealership. Finally, we identify key messages BHPH dealers can focus on to more effectively target their advertising and influence BHPH shoppers during the shopping process.

CONSUMER PROFILE OF THE AVERAGE CUSTOMERBHPH Buyers vs. Traditional Buyers

Understanding Buy Here-Pay Here Customers: 2011 BHPH Buyer Study from AutoTrader.com Word count: 619 In October 2010 and January 2011, the National Alliance of Buy Here-Pay Here Dealers (NABD) and AutoTrader.com teamed up for a groundbreaking study to define the consumer profile of the average BHPH customer and to understand the unique shopping needs of this customer segment. The two-part study included qualitative focus groups conducted in Los Angeles and Dallas and a national quantitative online survey among 606 BHPH buyers who purchased within the previous 18 months. The results of this study affirm for the first time many common perceptions among the BHPH community about the priorities and behaviors of BHPH customers. There are also some new findings about their Internet usage as well as the amount of research BHPH shoppers are conducting prior to visiting a dealership. Finally, we identify key messages BHPH dealers can focus on to more effectively target their advertising and influence BHPH shoppers during the shopping process. Consumer Profile of the Average Customer BHPH Buyers vs. Traditional Buyers

58% Female

50% Female

39 Years Old

47 Years Old

<$50k Annual Income

>$50k Annual Income

44% Married

60% Married

Poor Credit Rating

Excellent/Very Good Credit Rating

The Findings Four out of five BHPH customers conduct research before visiting the dealership. According to the study, 81 percent of BHPH vehicle buyers said they performed either some or a great deal of research as part of the car shopping process before going to a dealership compared to the 19 percent who stated they conducted very little research.


With four out of five shoppers conducting research prior to visiting a dealership coupled with the high percentage of BHPH customers already online, the implication is there’s an opportunity for BHPH dealers to reach and influence their shoppers by tapping into the online automotive space with advertising messages and information that resonate with the targeted consumer. It’s important for BHPH dealers to align their advertising with the unique needs of BHPH shoppers. The need for financing approval drives the shopping process for BHPH shoppers. Nearly two out of three BHPH customers enter the process with securing financing or identifying a dealer as their first priority. While this information is in line with what the BHPH industry has long suspected, the key is to align your advertising messages with the shopping priorities of your customer base. Effectively communicating the right messages in your advertising may dramatically improve the chances of turning a shopper into an actual customer. First Step in the Shopping Process



Key Messages to Communicate Focus on Approval: Since approval is a BHPH shoppers’ top concern, messages about financing approval should take precedence in BHPH dealer advertising – both online and offline. Talk about Speed of Process: When making a dealership selection, many BHPH shoppers are interested finding a dealer who can handle the vehicle purchase process quickly, according to the study. The good news is 83 percent of BHPH dealers complete the buying process in two hours or less. As a result, this message is an important one to include in your advertising. For example, “Get Your Car in Less Than 2 Hours!” Consider Reporting Customer Payments to Credit Bureaus: Only 37 percent of BHPH customers’ payments appear on their credit report; however, 63 percent of BHPH customers would like their payments reported. As a result, BHPH dealers should consider using messages such as, “We Can Help You Rebuild Your Credit.” Just be sure, if you advertise this message, you can follow through on it. Also, don’t forget to vet this message with your legal counsel.

First Step in the Shopping Process

KEY MESSAGES TO COMMUNICATEFocus on Approval: Since approval is a BHPH shoppers’ top concern, messages about financing approval should take precedence in BHPH dealer advertising – both online and offline.

Talk about Speed of Process: When making a dealership selection, many BHPH shoppers are interested finding a dealer who can handle the vehicle purchase process quickly, according to the study. The good news is 83 percent of BHPH dealers complete the buying process in two hours or less. As a result, this message is an important one to include in your advertising. For example, “Get Your Car in Less Than 2 Hours!”

Consider Reporting Customer Payments to Credit Bureaus: Only 37 percent of BHPH customers’ payments appear on their credit report; however, 63 percent of BHPH customers would like their payments reported. As a result, BHPH dealers should consider using messages such as, “We Can Help You Rebuild Your Credit.” Just be sure, if you advertise this message, you can follow through on it. Also, don’t forget to vet this message with your legal counsel.

S E V E N T Y P E R C E N T O F B H P H S H O P P E R S R E G U L A R L Y U S E T H E I N T E R N E T



BHPH

Understanding Buy Here-Pay Here Customers:

LA_0811.indd 6 7/20/11 9:56 AM

LA_0811.indd 7 7/20/11 9:56 AM


8


Evaluate Core Inventory to Sell Cars Faster

Selling cars consistently is a craft few can master. It takes someone with the right combination of character and confidence to close deals. However, many experienced dealers will admit the far greater challenge is buying the right cars for their inventory – cars customers want.

That’s because the market for used cars can be unpredictable. With vehicle values always in swing between public demand and manufacturer supply, many dealers are often unsure which units will bring the greatest return on investment.

While you can’t predict the future, you can improve your chances of selling cars faster and making top-dollar if you know where to focus your efforts. To hit your sales goals, start by evaluating your core inventory.

Finding Your Bread-and-ButterClearly, your main products are used

cars. But, how do you know which are your best-sellers? Cars in your core inventory sell fastest and make you the most money. They are your bread-and-butter. Typically, a vehicle is “core” to your business if you can regularly sell it in less than 30 days and hold more than $1,500 gross profit. Imagine if you could find more of these cars to sell!

The good news is you can, and it’s easy. To identify year/make/model units as potential core inventory candidates, look at sales logs from the past few months. Record how many days it took to sell, and how much gross profit you made on each car. Then, compare to see which units consistently sold fast and gave you the most money. These core inventory units were probably the best value vehicles for your business, and you may want to consider stocking more of them.

Of course, every dealership is unique. Even stores in the same group have distinct qualities that define their character and attract buyers. Some successful business models are Certified Pre-Owned, while others are Buy-Here Pay-Here. So don’t worry if you discover that your top-selling products happen to be minivans, Mazda’s, or even motorcycles. Your goal is to learn which vehicles are best-sellers for your business, not which cars you happen to prefer personally. Ultimately, the year/make/model of the car is not as important as the return on investment it provides to your business.

What’s Hot, What’s Not?Now you can identify cars that sold well

in the past, so take the next step in growing your business. Find out which cars in your area are hot and which are not with help from an inventory management system. An investment in success can bring huge rewards for your business.

Using an inventory management system like AAX by DealerTrack helps you seamlessly evaluate and manage your entire inventory. Getting the right system for your dealership will immediately help identify vehicles in your area that are currently best-sellers, and which are riskier ventures.

For example, a Nissan Altima may be the fastest selling car in your area, but you may only make a couple hundred dollars profit in the end. On the other hand, it may take twice as long to sell an Acura MDX but you can expect to walk away with thousands in gross. As the manager in charge of selecting cars for your inventory, you need to have trusted documentation to support your purchasing decisions. Otherwise, you could end up with carrying costs for cars that won’t turn. Spotting these market trends can be invaluable when considering how much to pay for used cars at auction or trade.

Did you know it’s typical for dealers without inventory management systems to have only 10-15% of core inventory in stock? While you should never have 100% of cars as core inventory, you want

to aim for at least 50%. Remember, you’re an entrepreneur in the used car business. You should still feel free to take on “non-core” cars if you truly believe they will sell. Your competition doesn’t keep all their eggs in one basket, so it’s crucial for you to diversify your inventory as well. Who knows, maybe the best-selling car is one you’ve never tried selling before. Just remember to stay true to your core.

Know Your CompetitionOnce you determine the best-selling

cars on your lot and in your market, the final step is staying competitive with other dealers – especially in terms of how you appear online. To start, make sure your prices are in-line with other online listings. Buyers often look at dozens of search page results with listings of the same types of cars, so you should update your prices regularly to stay relevant online.

Besides pricing, many of your customers want to see vehicle’s history before buying or coming into your dealership. It makes sense that not knowing about open recalls, accidents, repairs, or previous owners can make deals sour quickly. That’s why most inventory management systems and auctions have integrated access to Carfax Vehicle History Reports to help dealers evaluate cars they’re considering. Savvy dealers check the history before acquiring cars to reduce their chances of getting stuck with a car that no one wants to buy. Furthermore, these experienced sellers include Carfax in their own TV, radio, newspaper and online advertising to attract customers and build confidence.

Stock Cars Customers WantThe market for used vehicles can be

diverse and unpredictable, but you can still find cars in your area that sell consistently. You just need to know where to look. Begin by looking within at your core inventory. Once you know which cars customers want to buy, you can maximize the potential of your business by stocking more of those valuable units.

Remember, customer preferences can change quickly in this business. The last thing you need is to be stuck with carrying costs for unpopular cars that won’t sell. Prepare by regularly checking the performance of your inventory. Try using inventory management systems and vehicle history to help choose cars. These proven tools can help dealers identify vehicles that regularly sell for the most profit in your area. You can sell faster, improve your buying power and make better decisions for your business by arming yourself with information about your core inventory cars.

BY D E N N I S C A R E Y A N D C H A D G O O D S O N

value

THE MARKET FOR USED

VEHICLES CAN BE DIVERSE AND UNPREDICTABLE,

BUT YOU CAN STILL FIND

CARS IN YOUR AREA THAT SELL CONSISTENTLY.

LA_0811.indd 8 7/20/11 9:56 AM

LA_0811.indd 9 7/20/11 9:56 AM


10


An Independent Perspective: Surviving the

Used-Inventory Crunch

more difficult to acquire at a price that won’t completely erase store margin.

Underwood offered what veteran dealers readily understand, “Small cars are easy to sell, but the problem is they have very thin margins.”

Is the Inventory Solution Online?When asked about whether online

avenues would be a better route to find vehicles that would turn, Underwood gave a mixed assessment.

“The online route obviously gives you more coverage area but the problem is that you’re buying cars in different locations. If you only have one or two in each area, you’ve got to try to group them together to get the transportation done in time,” Underwood explained.

“Buying a truckload is hard to do unless you’re paying a considerable price for them. Sometimes, you’re only buying maybe two in Dallas and one in Hattiesburg (Miss.),” he continued.

“If you’ve got 10 cars scattered across the Southeast, you’ve got a problem trying to get them back in a reasonable time or getting a good price on getting them back,” Underwood went on to say.

Even if logistics can be difficult, Underwood has seen plenty of online activity while he’s been at a physical auction.

“I think a lot of dealers are buying online. I’ve seen dealers from all across the country bidding on cars. That’s the advantage, you have the opportunity to buy either in lane or online,” Underwood observed.

Franchise Stores Feeling the Pinch, Too

While Underwood is a veteran independent dealer and is at the top of NIADA, he doesn’t think franchise stores are having any easier of a time finding inventory.

“The old stories back in the day were the new-car dealers were getting the trade-ins so they don’t have as difficult a time. But I don’t find that to be true,” Underwood told Auto Remarketing. “I think the new-car dealers are not getting the trade-ins that they got in the past. And if so, they’re not the quality of car that they’re used to because now they’re retailing high-mileage cars on franchise dealer lots now more than ever.

“New-car dealers are standing toe-to-toe with independent and they’re bidding on these cars, too. And they’re paying the price,” he acknowledged. “You may find in many cases where a franchise dealer will stay a little longer and pay more for it. But they’re still facing the same dilemma.”

Buyers Still in the MarketThough inventory managers are

struggling to scour auction lanes to find turn-ready models, Underwood thinks

buyers are still coming to lots or shopping online, ready to make a deal.

“It’s not a problem with traffic. The problem is how we’re paying the price for cars. People come in and they want to buy cars. They’re looking to do business. That’s not the problem,” Underwood insisted.

“And it’s not isolated to a certain location. People are coming into the stores to do business. The problem is we all have a small inventory to choose from and our margins are now less than they’ve ever been because we’re paying more for the cars,” he continued.

“We’re not seeing people necessarily complain so much about the price of the car. The problem is getting them financed and getting them to put enough down. It’s a three-ring circus – the finance company, the dealership and the customer – and we’ve all got to agree upon what’s a fair value,” Underwood added.

What If Gas Prices Drop?Analysts also have been projecting

fuel costs eventually will dip from the nationwide average that’s at about $4 per gallon. Should gas prices fall significantly, dealers could be left in the lurch with lots of fuel-efficient models because as Underwood said, “Americans don’t like small cars.”

NIADA’s president conceded, “The biggest fear right now is you buy a car at a certain value and, by chance, tomorrow the market just drops. Now when you’re retailing that car, you’re cost base is retail-plus. You can lose money on 30, 40, 50 cars on the lot. That’s the biggest fear right now.

“Falling gas prices would take the pressure off the small cars,” Underwood predicted. “We all know we’re paying too much for small cars based on the emotion of good gas mileage. There’s no reason why the 2010 Hyundai Accent should bring $10,500 or $11,000. You could probably buy that car new for not much higher than that.”

Advice to Fellow DealersUnderwood has been instructing his

lot personnel to use a strategy that could work for any size dealership – franchise or independent.

“You have to get cars that are as close to retail possible, but you’re going to pay the money for it,” Underwood asserted. “Back in the old days, you could go out and replace a car tomorrow. Today you probably can’t. You need to make money when you sell that car.

“You’ve got to make sure you buy right,” he went on to say. “There’s an old saying in the car business: You make your money when you buy the car; you realize the profit when you sell it. If you buy right, that’s half the battle.”

R E P R I N T E D O N B E H A L F O F N I C K Z U L O V I C H , S TA F F W R I T E R , A U T O R E M A R K E T I N G

Speaking for independent dealers from Connecticut to California, Auto Remarketing caught up with Anthony Underwood this week while he was driving back to his dealership after making one of his biweekly auction trips.

The former NIADA president (his term ended in June), called the search for inventory – especially fuel-efficient models – “amazing.”

“You talk with seasoned dealers who have been in the business for 30 or 40 years and they all say, ‘It’s the worst I’ve ever seen it,’” Underwood shared with Auto Remarketing.

“The best description out here is dealers are saying it’s not any fun anymore. It staggers the imagination that we’re paying this,” Underwood added.

While returning to his store located near Birmingham, Ala., Underwood recollected his own personal experience with a gas sipper. Three months ago, he spotted a 2011 Ford Focus coming down the lane and bought it for $11,500 despite his instincts telling him that was too much.

“Now that same vehicle is $13,500, maybe $14,000. To make it worse, a 2009 Focus is bringing $11,000 now. That’s just how ridiculous it is. When’s it going to end? I don’t know,” said Underwood, who was NIADA’s National Quality Dealer of the Year in 2003.

“Most dealers have a memory like an elephant,” he continued. “We all remember what we paid a year ago or two years ago. That’s the paradox of it all. This is an unprecedented time we’re dealing with. We don’t have a playbook to know what we’re doing.”

Some analysts have tried to compare the current situation with 2008, especially in terms of gas prices. However, Underwood doesn’t believe that’s necessarily a fair assessment.

“Keep in mind, when gas spiked three years ago, people were trying to dump SUVs and you could buy them for a song. Now, there’s no escape. There’s no particular vehicle category that has a price break,” Underwood surmised.

And that especially seems to be the case with fuel-efficient models. Even units such as the Chevrolet Cobalt – a model Underwood thinks dealers used to be able to find “any day of the week” – are becoming

newsR E P R I N T E D W I T H P E R M I S S I O N BY A U T O R E M A R K E T I N G

LA_0811.indd 10 7/20/11 9:56 AM

LA_0811.indd 11 7/20/11 9:56 AM


12


12

The Red Flags Rule doesn’t require any specific practice or procedures for your identity theft prevention program. It gives you the flexibility to tailor it to the nature of your business and the risks it faces. The FTC will assess compliance based on the reasonableness of a company’s policies and procedures. Businesses with a high risk for identity theft may need more robust procedures – like using other information sources to confirm the identity of new customers or incorporating fraud detection software. Groups with a low risk for identity theft may have a more streamlined program; for example, simply having a plan for how they’ll respond if they find out there has been an incident of identity theft involving their business. The FTC has designed a form to help groups at low risk for identity theft put together a program. It’s available at www.ftc.gov/redflagsrule.

The Red Flags Rule also doesn’t require you use Social Security numbers or any

other specific identifying information. Whether you collect Social Security numbers or other information to verify a customer’s identity depends on the nature of your business and the risks you face. Actually, collecting a Social Security number by itself is not a reliable way to verify someone’s identity because the numbers are widely available and do not prove a person is who he or she claims to be. However, Social Security numbers can be helpful as part of a more comprehensive identity verification process; for example, as a way to check against information from other sources or as a way to get other information, like a credit report, which can be used to verify a person’s identity.

It’s a good data security practice not to collect more information than you need. If you are asking for a Social Security number, but not actually using it as part of a more comprehensive authentication process, reconsider whether your business really needs to collect and maintain it.

Red Flags Rule Procedures, SSN Collection

Whether you collect Social Security numbers or other information to verify a customer’s identity depends on the nature of your business and the risks you face.

Identity Theft Prevention A Good Idea

The Red Flags Rule requires many businesses and organizations to implement a written identity theft prevention program to detect the warning signs, red flags, of identity theft in their day-to-day operations. The staff of the Federal Trade Commission has heard from companies that are developing programs from across the country. Their questions, and the FTC’s answers, may help you develop a program for your dealership.

For example, creditors or financial institutions must develop an identity theft prevention program even if they already comply with data security requirements such as the Health Insurance Portability and Accountability Act (HIPAA) or the Gramm-Leach-Bliley Act (GLB). It’s even a good idea for dealers who may not fall under a creditor or financial institution definition.

The FTC strongly encourages reasonable data security practices, but the Red Flags

Rule is not a data security regulation. Good data security practices – such as collecting only the personal information you need, protecting that information, and securely disposing of what you no longer need – help ensure personal information does not fall into the hands of identity thieves. For more information on data security, visit www.ftc.gov/infosecurity.

The Red Flags Rule picks up where data security leaves off. If identity thieves do get hold of someone’s personal information, they typically use it to get goods or services from unsuspecting businesses and have no intention of paying the bill. By having companies set up procedures to look for and respond to the red flags that an identity thief is trying to use someone else’s information, the rule seeks to reduce the damage crooks can inflict both on victims of identity theft and on businesses left with accounts receivable they’ll never be able to collect. While you may be able to incorporate some of your data security practices, your identity theft prevention program is a different kind of plan aimed at preventing a different kind of harm.

To read additional FAQs regarding the Red Flags Rule, visit the FTC’s site on the subject at http://www.ftc.gov/bcp/edu/microsites/redflagsrule/faqs.shtm.

LA_0811.indd 12 7/20/11 9:56 AM

LA_0811.indd 13 7/20/11 9:56 AM


14


We’ve often heard the phrases “Don’t expect what you can’t inspect” and “Knowledge is power.” These could not be more true than they are today in the dealer controlled financing industry (Buy Here-Pay Here, Lease Here-Pay Here and Rent-to-Own). Knowing how well your dealership and portfolio are performing compared to industry standards and compared to your own historical performance is invaluable. If you don’t inspect it, you can’t track it. If you can’t track it, there is no accountability. If there is no accountability, there is no motivation for change.

As a consultant and trainer to DCF dealers across the nation, I am often amazed when talking with prospective clients about their business results. It is surprising to see

T R E N D S P O T T I N G :

news

--Don Miller

Your data is like gold; mine it often.

how many dealers do not track their own dealership’s key figures – figures that are very relevant at determining the overall health of the lot. The figures these dealers did know were typically as of the previous month’s end-of-the-month reports. They knew last month, or maybe even last year, they collected X amount in payments or booked X amount of profit or sold X number of units. But, they don’t know how those numbers truly compare to previous months, years or even industry standards.

Most dealer management systems provide adequate reports which would enable a dealer to see static results, for example, or how many units sold and average deal structure, current inventory totals and averages, current delinquency and accounts receivable totals and more. However, very few, if any, of these systems provide any type of trend analysis reports. It is up to the dealer to record key figures on a monthly and even weekly basis to perform any meaningful analysis. The term trend analysis refers to the concept of collecting information and attempting to spot a pattern, or trend, in the information.

Having the ability to spot trends can be invaluable to a DCF dealer collecting payments on a weekly basis. Spotting a dangerous trend early enough allows

dealers to take corrective action prior to having a major issue. The trick is to know what to look for.

We have seen dramatic reductions in the average reconditioning expenses at a lot where, it turns out, the manager had been planning to quit and open his own lot. Had this trend not been spotted, the results could have been catastrophic, leaving the new management to deal with a poor performing portfolio with lots of mechanical issues. This dealer was able to set new policies for vehicle inspections quick enough to contain any major issues.

At another location, a dealer was enjoying what appear to be his lot’s typical low delinquency rates; however, because this dealer was also monitoring the staff’s collection effectiveness, he spotted a trend indicating there was a strong possibility of fraud. With some further investigating, this dealer was able to obtain proof of employee theft within just a few weeks. Putting an end to what most certainly could have lasted months had he not been tracking weekly performance.

The first step to take to have the ability to spot these types of trends is to record data. Determine which key figures you want to track and enter those across the top of your page as the column headers. The first column should be for the date and each line or row will start with the date the data is recorded. If you are recording weekly data, pick one day of the week (Friday, Saturday, etc.) and record data as of that day each week. As you continue to enter your information, it won’t take long before you have mounds of valuable data, data that you can now use to spot trends and to aid with forecasting.

You can use a simple ledger card, but this is the 21st century and a spreadsheet will allow for much more flexibility. There are several free options available today on the web; Google Docs (www.docs.google.com), Microsoft Excel Online (www.OfficeLive.com) and Open Office (www.OpenOffice.org). Google and Microsoft each offer a decent basic spreadsheet that can be accessed online and Open Office has a complete one that can be installed on your computer.

Webster defines data as factual information used as a basis for reasoning, discussion, or calculation. Data mining has been defined as the extraction of implicit, previously unknown, and potentially useful information from data. Don’t expect what you can’t inspect. Your data is like gold; mine it often.

Don Miller is a senior consultant and supervisor of Constellation’s DCF Consulting Group, a consulting firm specializing in BHPH start-ups, training, consulting and analytics. For more information, visit www.ConstellationAuto.com/dcf.

BY D O N M I L L E R

Don’t Do Business Without It

LA_0811.indd 14 7/20/11 9:57 AM

LA_0811.indd 15 7/20/11 9:57 AM


16


Online video continues to increase in popularity among auto shoppers. Video brings vehicles to life in a way photos just can’t. Sight, sound and motion make it more emotional and engaging for viewers. As a result, video is a powerful merchandising tool that can help influence shoppers to not just buy your make and model, but to buy it from you.

Video Facts• More than 75 percent of Internet users

watch video online• 50 percent of consumers watch videos

while shopping for a car• 66 percent of car shoppers would watch

more video if it were available • 72 percent of shoppers are more likely to

buy a product or service when a video is used

What You Can DoFirst, let’s talk about where you should

be posting videos online. It’s not just about a video’s content – the key is in the wide distribution of your videos. It doesn’t matter how good the video itself may be if it’s not being seen by auto shoppers.

According to an AutoTrader.com Video Survey, vehicle shoppers say they expect to find videos on dealership sites, manufacturer sites and independent sites such as AutoTrader.com. Therefore, it is critical for automotive advertisers to place video content in front of all potential customers. Don’t forget about video sites like YouTube, too.

Now that you know where you’re going to be posting your videos, let’s talk content.

Do-It-Yourself VideosDo a complete video walk-around. Give

shoppers a sense of what it would be like to drive and own the car.

Keep videos to less than one minute. Shoppers will often lose interest if a video is too long.

State the facts. Include price but keep information objective to avoid a sales pitch.

Include information that cannot be gained from photos. (i.e., warranty, single owner, non-smoker, etc.)

Reinforce the retention of information. Show what you are talking about (i.e., show the odometer while talking about mileage).

Use Pan-and-Scan VideoConsider using pan-and-scan videos.

AutoTrader.com offers a personalized, video solution called FastAds that’s based on this technology. This option allows you to use vehicle photos and easily turn them into a virtual walk-around video, narrated by a

voiceover with a custom script. It’s a very convenient and easy tool that can effectively showcase any vehicle you are trying to sell.

Leverage Manufacturer AssetsYou don’t always have to make a homemade

video to communicate the message. Most OEMs will have video assets available for your use, so use them when you can’t use the other two options I mentioned already, or use them in conjunction with a do-it-yourself or pan-and-scan video. If you are participating in a manufacturer’s certified pre-owned program, it’s a great opportunity to leverage these assets as many manufacturer’s have commercials specifically dedicated to the CPO message.

Merchandise Your Dealership in a Video, Too

So far, we’ve only focused on videos about your inventory, but your online marketing is about much more than the vehicles you sell. Building confidence in your capability as a dealership is just as important in getting shoppers to choose you.

Tell your story. Do a store video tour and highlight amenities and departments. Show customers why you are a dealership they should do business with.

Use customer testimonials videos. Build a strong image for your prospective customer.

Include dealership information. Be sure to incorporate your contact information, website address, map and directions.

Post your videos on a multitude of sites. Include user-generated sites such as YouTube and other social networking sites, as well as your dealership site, independent sites and anywhere else your inventory is listed.

Howard Polirer is the director of industry relations for AutoTrader.com. He has helped train more than 10,000 dealers in over 200 cities across the U.S. on the industry’s best practices to reach automotive consumers. He can be reached at [email protected].

BY H O WA R D P O L I R E R

Telling Your Value Story with Video

DR IV ING TR AFF IC

VIDEO

LA_0811.indd 16 7/20/11 9:57 AM

LA_0811.indd 17 7/20/11 9:57 AM


18


LA_0811.indd 18 7/20/11 9:57 AM


19


LA_0811.indd 19 7/20/11 9:57 AM


20


Want to increase your sales? Sell to women buyers

1. SELL SAFETY! Quality and performance are givens. But safety is still a priority and concern for women. Women are often thinking about their family members or their growing family when purchasing a vehicle. For a used vehicle, they will definitely ask questions about previous owners and will review Carfax history report. Be sure you are ready to answer.

2. SELL SPACE! Women don’t have to have big cars, but like closets and nooks in a home, women want spaces or places to put and tuck stuff…sunglasses, coffee cups, luggage, shopping bags, snacks for the family and more. So, seat pockets, compartments, and cup cubbies are a must.

3. SELL MAINTENANCE! Women want the convenience of service and maintenance options. Used vehicles do come with a certain amount of risk. Including service and maintenance plans in the purchase of a used auto enhances the one stop shopping deal that women look for.

4. SELL GREEN! Not necessarily the color, but the environmental friendliness. Women do look for unique colors in vehicles and

these are getting easier to find. But for the most part, women are going green. Naturally nurturing, women are conscious of the changes in the environment and want to do their parts in keeping it clean and safe. Share knowledge about the used vehicle’s emission, miles per gallon, and more.

5. BE PATIENT! When a woman enters your site or lot, she is expecting to begin a mutual relationship with you, one of trust and loyalty. She wants your name, your attention and her questions answered. She may need two or more visits before a decision is made. So get ready to treat her well. Hopefully she will buy and love her newly purchased vehicle. For added value, she’s going to remember the treatment and tell all of her friends.

These selling tips are by no means in any order of importance. They are all equally important when marketing your vehicles to women.

BY S Y E D A Z A MSyed Azam is the president of AutoJini.com, a leading provider of website solutions for auto dealers. Contact him at [email protected] or 515-232-2024.

The issue isn’t about whether or not women are buying vehicles. They are. According to all the latest industry research, women even play a lead role in vehicles purchased by most men. And women are buying used vehicles as much as new ones. But don’t presume a woman’s expectations or process will change.

When it comes to a new or used vehicle, women’s expectations are pretty much the same. Just like men, women expect a newly purchased auto to perform well. And like men, women search for the best quality their money can buy when purchasing a used vehicle. So where’s the difference?

Well, one fact you might first consider is women do lots more homework and planning than men prior to a vehicle purchase. They may not be ready to purchase on the first visit. Consequently, you might want to practice patience when marketing to women.

H E R E A R E FIVE QUICK SELLING TIPS T O H E L P Y O U M A R K E T Y O U R V E H I C L E S T O W O M E N :

LA_0811.indd 20 7/20/11 9:57 AM


21


ADESA Shreveport7666 Greenwood RoadShreveport, LA 71119318-938-4400 Phone800-673-2240 Toll Free318-938-7623 Faxwww.adesa.comEvery WednesdayIn-Op sale at 8:45 amGM/GMAC sale at 9 amFleet/Lease sale at 10 amConsignment sale at 10 amEvery Other ThursdayGM Factory Closed sale at 10 am

Alexandria Auto Auction515 N 3rd StreetAlexandria, LA 71301318-484-9672 Phone318-484-9699 FaxSale every Tuesday at 5:30 pm

Dealer’s Auto Auction, Inc.136 Gregory DriveMonroe, LA 71202318-343-8200 Phone318-343-8259 Faxwww.manta.comConsignment Sale at 11:00 amSale every Tuesday at 12 noon

Greater Shreveport-Bossier Auto Auction1315 Grimmett Drive, Shreve-port, LA 71107318- 221-3362 Phone 318- 221-3372 Faxwww.gsbautoauction.comEvery Tuesday at 6:00 pmInsurers Auction

406 Almedia RoadSt. Rose, LA 70087504-468-6995 Phone866-468-6995 Toll Freewww.insurers-auction.comSale every other Wednesday at 9:00 amLong Beach Auto Auction8494 County Farm RoadLong Beach, MS 39560228-452-2030 Phone228-452-9588 Faxwww.lbautoauction.comSale Every Wednesday at 1:30 pmDisabled and Damaged Units is the 4th Wednesday each Month @ 11:00am Capital One Auto Finance Runs the 4th Wednesday Each Month

Louisiana’s 1st Choice Auto Auction18310 Woodscale RoadHammond, LA 70401985-345-3302 Phone985-345-5735 Faxwww.lafcaa.comConsignment Sale every Tuesday at 8:30 am

Manheim Houston14450 West RdHouston, TX 77041-1103281-890-4300 Phone800-444-2444 Toll Free281-890-7953 FaxTRA Sale - Every Tuesday morning at 8:15AMConsignment Sales - Tuesday, 9AMHertz - Weekly, TuesdaysManheim Lafayette 1611 Saint Mary StreetScott, LA 70583337-237-5620 Phone337-237-0762 Faxwww.manheim.comSale every Thursday at 10 am

Manheim New Orleans 61077 St. Tammany AvenueSlidell, LA 70460985-643-2061 Phone800-783-2062 Toll Free985-643-2122 Faxwww.manheim.comDealer Consignment Sale every Wednesday at 9:00 am.Fleet/Lease Sale Wednesday 9:00 am.Total Resource Auctions every Wednesday at 11:00 am

Manheim Texas Hobby8215 Kopman RdHouston, TX 77061-5405713-649-8233 Phone713-640-8395 FaxClosed Ford Factory Sale - Every Other Wed. 10AM CT FMC/Fleet Lease/Dealer OPEN Sale - Tuesday 3:00PM CST, Thursdays 9:00AM CT Mechanically Challenged Sale - Tuesday 2:00PM CSTTotal Recourse Auction – Texas Hobby Tuesdays @ 9:30 AM

Oak View Auto Auction13451 Florida Blvd.Baton Rouge, LA 70815225-272-5139 Phone225-272-5314 Faxwww.oakviewautoauction.comConsignment Sale every Friday at 10 am Fleet/Lease Sale Friday 10 am. Salvage Sale Friday 9 am.

Rea-Brother’s Mid-South Auction800-261-26711657 Old Whitfield RoadJackson/Pearl, MS 39208www.rbmsa.comSale every Tuesday 9:00 am

SmartAuctionYou’re online Auto Auction1-877-273-5572www.smartauction.biz

A U C T I O N D I R E C T O R Y

LA_0811.indd 21 7/20/11 9:57 AM


22


N E W A N D R E N E W I N G M E M B E R SNew Members:Donovan Gaudet Auto Sales LLCBrittany Spears933 CrestwoodCovington, LA 70433985-892-6266

Innsotech LLCJason Bennett504 Hwy. 550Spearsville, LA 71241318-368-2881

Stacy’s AutoStacy Matthews1040 Leo St.St. Martinville, LA 70582337-577-3220

America’s Choice Warranty LLCDavid StellyP.O. Box 78221Baton Rouge, LA 70837225-261-5854

Prestigious Autoplex LLCThadius Hawkins1029 W. HutchinsonCrowley, LA 70526337-250-4409

Charlot’s Used Auto SalesAlvin Charlot102 Radcliffe DriveLafayette, LA 70501337-356-4218

Foster Auto SalesDavid FosterP.O. Box 3164Shreveport, LA 71133318-393-6953

LA Autoplex Enterprises LLC17000 S. Goodtime RoadFrench Settlement, LA 70733225-573-2899

Seitz Enterprises Inc.Udo Seitz15110 Market PlaceBaton Rouge, LA 70817225-778-5257

Tillis Motor Co.Bryon Tillis5353 Parish RoadChalmette, LA 70043504-812-6252

Blayne Kite Motor Co. LLCBlayne Kite1902 N. Pine St.DeRidder, LA 70634337-401-0919

B & M Auto WholesaleBassam Elrachidi2231 Williams Blvd.Kenner, LA 70062504-712-4006

Renewing Members:Global Management Concepts Inc.Shoeil Pourmehr704 E. Veterans Memorial DriveKaplan, LA 70548337-517-9999

A W C Mobile LLCMohammad Allan10833 Chef MenteurNew Orleans, LA 70127504-241-5524

ByeFromMe LLCReggie Gibson1905 Roselawn Ave.Monroe, LA 71201318-614-4108

Mike McTurner Dealers Auto Auction Inc.Mike McTurner136 GregoryMonroe, LA 71202318-343-8200

Eighth St. Auto LLCKevin Begnaud1010 Eighth St.Lafayette, LA 70501337-739-1148

Express Auto Sales LLCHugh Baillio1400 N. Causeway Blvd.Metairie, LA 70001504-837-6380

H & H Appliance & Auto AirReggie Harbor2436 North St.Baton Rouge, LA 70802225-346-8077

Lagniappe Motors of New Iberia Inc.Robert Richard1302 Center St.New Iberia, LA 70560337-369-7116

RJB AutoRicky Logsdon29635 Lawson LaneLivingston, LA 70754225-686-7711

Schubert Auto Sales LLCMary Schubert13166 Montrose North DriveDenham Springs, LA 70726225-664-6609

Stan’s Auto SalesStan Davis7125 Cypress St.West Monroe, LA 71291318-366-2968

Avery’s Auto Brokerage LLCAvery Goins605 Cypress St.West Monroe, LA 71291318-512-6853

Custom Auto Used CarsSteve Manno432 Florida Ave. SEDenham Springs, LA 70726225-266-7043

Fruge’s Auto SalesWilton Fruge32847 Walker Road N.Walker, LA 70785225-791-5336

K B Auto & Truck SalesDonald Jameyson1333 Lovell St.Crowley, LA 70526337-783-5952

Redemption Auto Sales LLCAlanna Singleton13511 Airline Hwy.Gonzales, LA 70737225-647-5300

R G Motors LLCGuy Renfroe10044 Hooper RoadBaton Rouge, LA 70818225-775-3757

The Kar Kompany of Cenla Inc.Mitch O’Neal2204 MacArthur DriveAlexandria, LA 71301318-487-1433

Tint City AutoWalter Warren1410 W. Thomas St.Hammond, LA 70401985-902-8468

AAA Affordable Glass Inc.Alvin Williams Jr.6276 Airline Hwy.Baton Rouge, LA 70805225-358-6922

B. Brown’s Auto TownBridgett Brown1619 S. Grand St.Monroe, LA 71202318-388-4001

Cash-N-A Flash Inc.Randy Matthews4601 East TexasBossier City, LA 71111318-746-9494

Discount Auto SalesBryan LedetP.O. Box 755Opelousas, LA 70571337-351-3452

Foreign Car SalesRaulston Turner5555 Greenwell Springs RoadBaton Rouge, LA 70806225-923-1062

Fritz & Hans Auto Sales LLCUdo Seitz3225 28th St.Baton Rouge, LA 70817504-836-2030

Hughes’d CarsPatrick Hughes1330 Woodcliff DriveBaton Rouge, LA 70816225-272-1370

J L Auto WorldJimmy Lam4411 Greenwood RoadShreveport, LA 71109318-635-4113

Milam KarsThomas Milam3933 Benton RoadBossier City, LA 71111888-742-7497

LA_0811.indd 22 7/20/11 9:57 AM


23


1630 North Flannery Road Baton Rouge, LA 70815

225-275-8088


225-275-8088

Phaze 3 Auto Sales LLCDelaine Lawrence7318 Bereau Field DriveNew Orleans, LA 70128225-288-5681

Songe Motors Inc.Keith Songe7033 WestparkHouma, LA 70364985-876-1613

South Bay Corp.Jim Estes8105 PrestonKeatchie, LA 71046800-252-2913

Southern City Auto SalesCalvin Emery3745 Mohican St.Baton Rouge, LA 70805225-202-7092

Tyson Marketing LLCVernon Tyson17778 Nolan TraceLeesville, LA 71446337-392-0781

Southwest Auto Sales & Salvage Inc.Tammy Ziegler868 S. CooleyDequincy, LA 70663337-725-3116

Don’s Auto Repair & SalesDonald Thomas927 3rd Ave. Hwy. 190 WestKinder, LA 70648337-738-4447

Bargain Wholesalers Inc.Sarkis Meguerditchian330 Veterans Blvd.Kenner, LA 70062504-469-3555

C and R Auto BrokersCharles Richard222 St. John Ave.Opelousas, LA 70570337-942-7664

Dads BR1 LLCKevin Breaux4256 North Blvd.Baton Rouge, LA 70806225-382-8650

First Consumers Financial LLCBob Chedville14580 Florida Blvd.Baton Rouge, LA 70819225-272-9009

Louisiana 1st Choice Auto AuctionJohn Poteet18310 Woodscale RoadHammond, LA 70401985-345-3302

Roberts Auto World Inc.Robert Covington3615 East Texas St.Bossier City, LA 71111318-742-9241

SEADRA Inc.John Garner128 Fairway DriveCovington, LA 70433504-241-0211

Dealers Want Better Auto Transport Options from Auto Auctions

Results from ShipCarsNow’s 2011 survey of independent and franchise auto dealers show dealers want more auto transport options when buying vehicles online from wholesale auto auctions.

Preliminary results show the number of dealers who buy pre-owned vehicles via online auction is steadily increasing year over year, and those auctions are increasingly located farther away from the dealership. More dealers report they are expanding their search for wholesale autos nationwide. In 2009, 75 percent of dealers reported they usually sourced inventory within 50 miles of their dealership and only 14 percent were shopping as far away as 500 miles or more. In ShipCarsNow’s 2011 dealer survey, 35 percent of dealers reported they shop nationally and more than half of the survey respondents said they planned to buy more inventory online in 2011 compared to 2010.

So, what does this mean for online and simulcast auto auctions? ShipCarsNow reports 63 percent of dealers surveyed said they think online auto auctions should improve transportation options. Almost half said they would purchase more vehicles online if auctions improved auto transport services and increased reliability of condition reports. Suggestions that ranked highest included providing the transportation cost before or during the bidding process and the ability to see discounts for multiple vehicle shipments, as well as the ability to combine vehicles with other dealers’ for economies of scale. Dealers also reported they’d like to see multiple auto transport bids, and that price and reliability are key requirements for any auction offering auto shipping services.

So, what is the bottom line? Like any savvy consumer, auto dealers want options. They want to shop where they want, and when they want. They want vehicles delivered safely, timely and economically. And they want the transaction process to be intuitive and hassle-free. Innovative auto transport companies and online auto auctions need to collaborate to develop the tools and services that dealers need.

For more information about ShipCarsNow’s 2011 Dealer Survey, visit www.ShipCarsNow.com; the complete survey report will be available soon.

LA_0811.indd 23 7/20/11 9:57 AM


24


LOUISIANA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION

1630 North Flannery Road • Baton Rouge, LA 70815

LA_0811.indd 24 7/20/11 9:57 AM


25



NADART (NADA Retirement Administrators, Inc.) is pleased to announce a number of new products and enhanced services, which includes the Sub20 Plan, online investment guidance and NADART’s Executive/Deferred Compensation Plan.

NADART offers a number of retirement plan options, including the Sub20 Plan designed specifically for small businesses (a 401(k) plan for those with 20 or fewer employees). As an added benefit for starting a new plan, employers will benefit from a three-year tax credit. In addition, the Executive/Deferred Compensation Plan allows owners and select employees to contribute up to 100 percent of their compensation on a tax-deferred basis to a retirement savings plan.

The company has provided and administered retirement plans for dealerships and automotive trade associations since 1957. It offers retirement plans and financial services to companies in all industries, as well as to members of NIADA. NADART maintains about $3 billion in assets for close to 100,000 participants nationwide.

For more information, visit www.nadart.org/retirement or contact the provider at 800-462-3278 or [email protected].

NADART Offers New Retirement, Financial Resources

LA_0811.indd 25 7/20/11 9:57 AM


26


A recent U.S. Supreme Court decision marks a turning point for auto dealers in the use of arbitration agreements to avoid class action lawsuits and class arbitration. On April 27, the court ruled under the Federal Arbitration Act such agreements are enforceable, helping dealers avoid lengthy legal battles with hundreds or thousands of disgruntled consumers.

In position papers, press releases and letters to Congress, numerous state and metro dealer asso-ciations had pointed to arbitration agreements with waivers of class arbitration as a means to quickly, ef-ficiently and cost-effectively resolve consumer dis-putes in the place of class-action lawsuits. Arbitra-tion agreements that include waivers of class-action arbitration can help dealers avoid a tarnished reputa-tion, a decreased customer base and millions of dol-lars in damages and legal fees resulting from a class-action suit. The associations have also contended that the agreements benefit consumers by helping them get complaints taken care of more rapidly and saving them the cost of attorneys’ fees.

Recent cases highlight the favorable impact the Su-preme Court decision could have on the industry. For example, a California dealer made headlines in Feb-ruary when a Court of Appeals judge ruled against it in a class-action lawsuit dating back to 2007. The suit was tied to the dealer’s practice of backdating a sales contract and including insurance in the purchase price of the vehicle. The Court of Appeals’ decision will allow 1,500 auto buyers to have their purchase contracts rescinded, which is estimated to cost the dealer up to $30 million. And in March 2010, a Mis-souri dealer group settled a class-action lawsuit tied to document preparation fees for $8.8 million. That suit was filed in 2008.

A well-crafted arbitration agreement that avoids resolving disputes in court and prohibits class ar-bitration can help dealers avoid legal landmines like these. Because the Supreme Court’s decision removes a significant obstacle to the enforceability of these agreements, independent auto dealers who have been uncertain about using them in retail in-stallment sales contracts or leases may be inclined to give them a second look. Those dealers already using them have a reason to feel more confident that they will be enforced if challenged in court.

BY CHIP ZYVOLOSKI Chip Zyvoloski is senior attorney for indirect lending at Wolters Kluwer Financial Services. For more information, visit www.wolterskluwerfs.com/indirect.

Supreme Court Ruling Provides Clarity On Arbitration Agreements

LA_0811.indd 26 7/20/11 9:57 AM

LA_0811.indd 27 7/20/11 9:57 AM

LA_0811.indd 28 7/20/11 9:57 AM

LA_0811_O

Documents

Transcript of LA_0811_O