June 2014 - Oregon Independent Automobile Dealers Association

R E P R E S E N T I N G
A L L
A U T O ,
T R U C K ,
T R A I L E R ,
R V
A N D
P O W E R
S P O RT
D E A L E R S
O F
O R E G O N
DEALER NEWS
GET YOUR DEALER EDUCATION CREDITS FROM THIS MONTHLY MAGAZINE
JUNE 2014
magazine
CRM
VS
BDC
Keeping Your Cart
Full of Customers
u inside
• Used Cars Getting Cheaper
• Insights into Customer Experience
• OIADA Convention
DALLAS, TEXAS
Permit No. 2079
PAID
PRSRT Standard
U.S. Postage
V I S I T
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INDUSTRY
NEWS
2014 NIADA Used Car Industry Report
Get a sneak peak of the upcoming 2014 NIADA Used Car Industry Report at this
year’s NIADA Convention & Expo. You’ll be able to pick up an advance copy in the
NIADA convention exhibit hall. Simply visit the NIADA Dealer Lounge located in the
center of the expo hall.
Look for your mailed copy the first week of July. Compare
your dealership statistics with those nationwide and get the
latest facts and statistics on the used vehicle industry based
on proprietary research by some of the best known industry
analysts.
Get an overview of the independent used car dealer and
used vehicle marketplace. Included this year is the entire 2014 NAAA Market Report.
ASSOCIATION NEWS
Priorities
INSIDE
06 Buying a Used Car
08 CRM vs. BDC
10 Used Cars Getting Cheaper
10 Insights into Customer Experience
12 Washington Update
15 OIADA Convention
WHAT’S NEW
Tire Safety Week
BE TIRE SMART
4
Mark your calendars for the 2014 National Tire
Safety Week June 1-7. The event is sponsored
by the Rubber Manufacturers Association to
raise consumer awareness about tire safety.
Help consumers keep their tires safe and
demonstrate your commitment to motorist
safety. Sign up for free materials at
www.rma.org/tire-safety/tire-safety-week.
ADVERTISERS
INDEX
Ally......................................................................9
Black Book..........................................................5
Brasher’s Northwest AA....... Inside Back Cover
Brasher’s Portland AA.................... Back Cover
DAA Northwest / Seattle.......Inside Front Cover
Lobel Financial...................................................3
Manheim.com.....................................................7
NextGear Capital..............................................11
United Acceptance...........................................18
VAuto.................................................................13
NIADA HEADQUARTERS
National Independent Automobile Dealers Association
www.niada.com • www.niada.tv
2521 Brown Blvd. • Arlington, TX 76006-5203
phone (817) 640-3838
For advertising information contact:
Troy Graff (800) 682-3837 or [email protected].
OIADA Dealer News is published 12 times per year
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 6006-5203. The statements and opinions expressed
herein are those of the individual authors and do not
necessarily represent the views of OIADA Insider or the
National Independent Automobile Dealers Association.
Likewise, the appearance of advertisers, or their
identification as members of NIADA , does not constitute
an endorsement of the products or services featured.
Copyright © 2013 by NIADA Services, Inc.
State Magazine MGR./Sales
Troy Graff • [email protected]
Editors
Andy Friedlander • [email protected]
Jacinda Timmerman • [email protected]
Magazine Layout & Graphic Artist
Chantae Arrington • [email protected]
Art Director
Christy Haynes • [email protected]
Printing
Nieman Printing
OIADA DEALER NEWS
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CHAIRMAN OF THE BOARD LETTER
As car dealers, we are constantly balancing
our life’s priorities of family and business.
Some of us add a volunteer component, which
can sometimes tip the delicate balance and cause
us to refocus life’s priorities. Recently some of
our OIADA executive committee members found
themselves faced with a balance decision and
stepped down independently to focus on family
and business.
As OIADA chairman of the board and NIADA
vice president for Region 4, I want to thank
these board members for their dedication and
continued support. Though these board members
will be sincerely missed, I assure my fellow
dealers and associate members that the Oregon
Independent Automobile Dealers Association’s
mission and commitment of support to all Oregon
dealers has not wavered.
An OIADA dealer member recently asked me
who OVDA is and whether they are affiliated with
OIADA’s membership and continued education
classes/reading material. He was confused by
different materials being presented and his
renewal of membership with OIADA.
Sounds confusing right? Well, OIADA sounds
like OVDA if you say it fast enough.
Given this identity confusion, I think that it’s
time for some Q&A regarding OIADA.
Question: Who is OVDA and are they
associated with OIADA?
Moving Forward
As we move forward in 2014, OIADA has had
some growing pains. The structure of our leadership
has had a change of face. We remain strong and
continue to move forward with the support of
NIADA, NIADA’s Region IV and our local leaders.
OIADA continues with the same quality of
service, programs and attention we provide to the
dealers of Oregon. We continue to develop new
programs with the Oregon dealer in mind. We at
Answer: NO. OVDA is a for-profit business
with membership and a dealer education
provider.
OIADA, on the other hand, is a nonprofit dealer association providing
dealer education as well as representing
all Oregon dealers statewide and at the
national level since 1948.
Question: Is OVDA recognized by the National
Independent Automobile Dealers Association?
Answer: NO. OIADA is the only Oregon
independent dealer association recognized
by NIADA as representing all Oregon dealers
statewide and nationally. Members of OIADA
are automatically members of NIADA, giving
its members access to all education, leadership,
conventions, benefits and hundreds of products
provided by our member associates. Go to NIADA.
com to view everything offered and available to
our members.
Question: Is my OIADA membership tax
deductible?
Answer: Yes, as a business expense.
I hope I have addressed and put to rest any
concerns, as well as cleared up
some identity questions.
GARY SARGENT
SARGENT’S MOTORSPORTS
OIADA CHAIRMAN OF THE BOARD
REGION IV NIADA
OIADA would love to hear from you, what would
help advance your dealership and your business.
Times are changing and so will OIADA, so that we
can be on the forefront of the dealer’s needs.
Please watch for updates on education, regional
meetings, quality dealer of the year, annual
convention and much, much more.
If you have any questions, please feel free to call
OIADA at 503-362-6839.
OIADA Office
Oregon Independent Auto Dealers Association • 1475 Capitol St. NE • Salem, OR 97301
800-447-0302
JUNE 2014
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ASSOCIATION NEWS
OIADA Forms Store
YOU CAN EASILY ATTAIN FORMS NEEDED FOR EVERYDAY BUSINESS
Don’t let yourself run out
of the forms you need to do
business every day. OIADA has
four ways for you to get forms:
1. You can order forms any
time of the day online at OIADA.
com. However, you do need to
have a username and password.
Call OIADA at 503-362-6839
to get your access to the online
store.
2. You can stop by one of three
locations within the Oregon
auction houses during auction
day.
3. You can pick up forms at
the OIADA office, located at 1475
Capitol Street NE in Salem.
4. You can call the OIADA
Office Monday-Friday. We will
ship your order that day. In most
cases, it will be delivered to you
6
PRODUCTS
overnight by UPS.
Don’t be caught without a
Secure Odometer Form or Secure
Power of Attorney. These forms
are DMV forms and each has a
registered number assigned to
the dealer who purchased them,
so don’t lend yours out and do not
borrow from your neighboring
dealer.
When you purchase these
forms, it’s a good idea to pull
them out of the packet and slip a
reminder near the bottom to call
OIADA and order more. You can
even add the phone number (503362-6839) on the note.
Did you know that our
members get a discount on most
state forms? OIADA members
save an average of $100 or more
every year.
Our most common ordered
forms include:
•Secure Odometer
Reassignment •Secure Power of Attorney
•OADA Purchase Agreements
•OADA Retail Installment
Contract
•F TC Buyers Guide
•Dealer Inventory Folder/
Jacket
•As Is Disclaimer, State of
Oregon
• D isclosure Regarding
Consignment Sale
• Test Drive/Loaner/Rental
Agreement
•Goodwill Service Form
(customer repair)
& SERVICES
Buying a Used Car
NEW TECHNOLOGY TO AVOID CARS THAT HAVE BEEN WRECKED
BY RUSS HEAPS
accident to a few seconds after.
During the course of an accident
investigation, investigators use
the crash data retrieval tool to
download EDR data to determine
what the car was doing in the
seconds leading up to the crash.
Was it speeding, swerving or
braking? Was there an airbag
deployment? Were the occupants
wearing seat belts?
CDR is also able to access other
components that store data, such
as the powertrain module, rollover
sensor and airbag control module.
The ACM is a virtual storehouse of
crash data gathered through crashsensing systems such as seatbelt
related sensors and occupant
detection systems.
into the vehicle’s universal data
port, the user can have a printed
report in three or four minutes.
This can happen at the dealer’s
lot before accepting a used car as
a trade-in, or at auctions, where
dealers acquire 80 percent of the
used cars they sell. Once they’ve
won the bid on a vehicle at an
auction, dealers have opportunity
to inspect it before any money
changes hands. If the CDR report
uncovers a serious event, the dealer
can opt out of the deal.
So far, used car dealers haven’t
embraced CDR as a sales tool, but
the day may come when used car
shoppers demand a CDR report just
as they do service history records
and vehicle history reports.
So, What Does It Mean?
How might all of this translate
into helping the typical shopper
avoid damaged vehicles when
buying a used car? When
purchasing a used car for resale,
the used car dealer can make a
CDR report part of the evaluation
process. By plugging the CDR tool
RUSS HEAPS BEGAN COVERING THE AUTOMOTIVE
INDUSTRY IN 1986. HE HAS SERVED AS MANAGING
EDITOR OF AMI AUTO WEEK AND NOPI STREET
PERFORMANCE COMPACT MAGAZINES. RUSS
CURRENTLY FREELANCES
HIS AUTO REVIEWS AND
INDUSTRY ANALYSIS TO
THE WASHINGTON TIMES,
HISPANIC MAGAZINE,
JOURNAL-REGISTER
NEWSPAPERS, BANKRATE.
COM, MYCARDATA.COM,
INTEREST.COM, AND OTHERS. HE
RESIDES IN GREENVILLE, SC.
Buying a used car is almost
always a roll of the dice. People have
said, “You are just buying someone
else’s problems.”
The truth is there are plenty of
good used cars out there. Most cars
reach the used car market because
of expiring leases or simply because
owners are getting something
newer, but there are exceptions.
Some used cars are unloaded
by their owners because of a
problematic past.
When considering a used car,
we always recommend getting it
inspected by a qualified mechanic
and obtaining a vehicle history
report from an agency such as
Carfax.com or AutoCheck.com.
Unreported Damage
Even taking these precautions
is not guaranteed to uncover a
vehicle’s every accident, however.
Without taking a car apart, even an
accomplished mechanic can miss
signs of accident repairs. Moreover,
vehicle histories only contain
reported accident information.
If an owner crashes his car into a
OIADA DEALER NEWS
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JUNE 2014
tree, manages to get his car to a
repair facility without alerting law
enforcement and doesn’t file an
insurance claim to fix the damage,
the accident probably won’t show
up in a vehicle history report.
So, is there a foolproof method for
identifying cars that have been in
unreported accidents and evaluating
the extent of any resulting damage?
Yes, and it’s currently being used
by accident investigators and law
enforcement to aid in reconstructing
accidents.
Not Exactly a Black Box
Since 2010, most new cars
are equipped with an event data
recorder. Although it has very little
in common with the black box we
hear so much about after a plane
crash, that’s the term most people
understand when talking about the
EDR.
An airplane’s black box
continuously records data – often
including sound – while the plane
is in operation, but the EDR is
more of a snapshot of a car’s data
from a few seconds before an
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BHPH
PERSPECTIVES
CRM VS BDC
EITHER, NEITHER OR BOTH 8
Is a CRM right for you? Maybe a BDC is
what you need. Whether they realize it or
not, every Buy Here-Pay Here dealer has
some form of both. Or at least they better if
they want to survive.
Let’s start by defining each of these to
clear things up a little. I wouldn’t want
anyone running out and spending money on
something they already have and just don’t
realize it.
CRM, or customer relationship
management, by definition is simply a
strategy for managing and nurturing a
company’s interactions with customers
and sales prospects. Technology is
usually involved in the form of a software
package that helps organize, automate and
synchronize sales related activities as well as
marketing and customer service activities.
A CRM’s goals are to find, attract and win
new customers; nurture and retain those
you already have; entice former customers
to not be former customers and help reduce
the cost of marketing and customer service.
Sounds a whole lot like a repeat and referral
program, doesn’t it? Something every
BHPH dealer should already have.
Using some sort of a software package
to help manage your CRM is a necessity.
That doesn’t mean you need to go out and
purchase one specifically for a CRM. The
software that you currently use for your
day to day BHPH operations should be able
to produce reports of customers with low
balances and customer paid out reports.
All you need to do is make sure you have
in place a process for working those low
balance customers and customers that have
recently paid off in addition to the potential
customers given as referrals from current
customers or other sources. It needs to be
a simple follow up plan that a manager is
responsible for instituting and can be as
simple as a call log that the salesperson has
to turn in.
As your business grows, it may be
necessary to seek professional help, so to
speak, and invest in a software package that
can better manage these tasks. Handwritten
logs are fine when you’re talking about
10-20 contacts. When that number gets
to 100-200, it’s time to get a little more
sophisticated.
A truly effective CRM will cover not
only sales but a service center as well. Both
need new customer development, current
customer retention and previous customer
renewals. And since they are an integral part
of customer service, both can have an effect
on collections, both positive and negative.
A poorly managed CRM means poor
customer service. Poor customer service
from the sales or service departments to
current customers can make it difficult to
collect from them much less resale them.
Poor customer service to previous sales
or service customers means no return
business from them and pretty much
ensures no referral business. You know the
old adage: “A satisfied customer will tell five
people about their experience. A dissatisfied
customer will tell 20.” But that’s another
article entirely.
BDC, or business development center, is
exactly what the name implies – a center
to develop business. This is usually a
department within an organization whose
sole purpose is to get prospective customers
through your doors.
Their goal is to set as many appointments
as possible. This is done through calling
referrals given by customers and Internet
u To be truly
successful, dealers
are going to have to
become more efficient at maximizing
repeat business and holding on to
customers, and turning new leads into sales.
OIADA DEALER NEWS
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JUNE 2014
BY BRENT CARMICHAEL
leads, and handling incoming calls to the
dealership. Hopefully a fair amount of those
appointments will show. Then it’s up to your
sales staff to close the deal.
A BDC can be as simple as your current
sales staff or as in depth as including
business development representatives, team
leaders and business development managers.
The level of staffing depends on the number
of leads you have. As with a CRM, a BDC
can be used for both sales and service. It too
can have a positive and negative effect on
collections for all the same reasons.
A specific software package is not a
necessity for an effective BDC. A simple
process for routing incoming calls and
Internet leads to a salesperson, along with a
process for when and how to work referrals,
is all you really need.
As your lead volume grows, so must your
ability to effectively manage them. That will
be the time to call in the professionals and
find good BDC software to help manage all
those leads. As with a poorly managed CRM,
a poorly managed BDC can not only cost you
sales and service business, but can cause
collections issues.
By definition, every BHPH dealer has, or
should have, both of these systems in some
form. If they have a process for generating
repeat business or have a referral program,
they have a CRM. If their salespeople are
taking incoming sales calls or working
Internet leads, they have BDC.
I shudder to think there might be a BHPH
dealer out there that doesn’t have both of
these. The biggest question is whether they
are managing them as such. And by that I
mean, do they have a process and procedure
in place for these, do they have goals and
expectations for each and do they have
follow up and accountability in place? The
successful dealers, I can assure you, do.
To be truly successful, dealers are going to
have to become more efficient at maximizing
repeat business holding on to customers, and
turning new leads into sales. Both of these
can only be accomplished through a CRM
and BDC in some form.
With the current state of the economy,
there are more customers in the BHPH
arena than ever before. There is also
more competition for those customers, so
accomplishing the aforementioned has
gotten a lot more difficult. To ensure long
term survival, dealers have to manage both
their CRMs and BDCs.
BRENT CARMICHAEL IS ONE OF THE INDUSTRY’S MOST WELL
RESPECTED BUY HERE-PAY HERE EXPERTS. HE IS EXECUTIVE
CONFERENCE MODERATOR FOR NCM ASSOCIATES, INC. PRIOR
TO JOINING NCM, BRENT WORKED 17-PLUS YEARS IN SUB-PRIME
FINANCE AND COLLECTIONS.
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MARKET
WATCH
Used Cars Are Going to Keep
Getting Cheaper and Cheaper
ONE AFTEREFFECT OF THE GREAT RECESSION IS ON DISPLAY NOW AT CAR DEALERSHIPS,
WHERE THERE ARE MORE AND MORE USED CARS FOR SALE AT INCREASINGLY LOWER PRICES.
10
The used car market has gone a
bit haywire over the last half-dozen
years. During the height of the
Great Recession, new auto sales
of all shapes, sizes and variations
tanked.
As a result of relatively few new
cars being purchased, there were
fewer used cars on the market
during the years that followed –
years when the economy was still
struggling, when demand for cheap
vehicles was understandably high
and when used car prices soared
because there weren’t enough preowned vehicles for sale to keep up
with demand. Signs of a softening
in used car prices began appearing
around 2012 and now consumers
can expect better pricing and a
more robust selection of most
models.
In particular, a trend that’s
stretched for several years in
SALES
the lease market will soon result
in a “used-car flood” at auto
dealerships, as Automotive News
put it. Leasing, which slumped
during the peak recession years,
has rebounded considerably lately.
In 2009, according to Edmunds.
com, consumers scooped up
only 1.5 million or so new cars
via three-year lease, down from
nearly 2 million the year before.
Fast-forward three years after that
low for leasing, and in 2012 there
were only about 1.5 million offlease used cars hitting the market
– an exceptionally small number
compared to the high of 3.4 million
in 2002, per the Manheim Used
Car Market report.
Because the pace of used-car
leases has picked up each year after
2009, so too have the ranks of used
cars going up for sale three years
later, when the lease terms are
up. This year, roughly 2.1 million
off-lease vehicles will be back on
the market, up from 1.7 million
in 2013. Next year, the number of
off-lease used cars for sale should
swell to 2.5 million, and in 2016
and for the foreseeable future,
Manheim predicts that there will
be more than 3 million off-lease
vehicles returning to the market
annually.
Add in the fact that cars have
increasingly longer life spans, and
we’re seeing an across-the-board
rise in supply of used cars – and
the increasing supply is projected
to translate to lower prices. Earlier
this year, Edmunds.com forecast
that used-car prices would slide
2 percent in 2014, and perhaps
further down the road as a result of
leasing trends.
“Many car shoppers might not
realize how much the new- and
used-car markets feed off each
other,” explained Edmunds.com
senior consumer advice editor
Philip Reed. “The boom in new
car leases, for example, is leading
to a higher number of lease
returns, which adds to the growing
inventory of used cars, forcing
their prices down.”
The news isn’t all good for
consumers, however. A decrease
in used-car prices also means
that drivers will get less for used
vehicles they’re trading in or
selling. That shiny new car you
purchase is likely to lose its value
more quickly than it would have in
the recent past.
Individual car buyers also tend
to simultaneously be sellers of
their older cars, and from the
looks of things, it’ll be a buyer’s
market for quite some time.
TIME.COM
MATTERS
Insights into Customer Experience
IT’S A RELATIONSHIP-DRIVEN BUSINESS
We are all consumers. As a
consumer, what is it that you truly
desire when doing business with a
company? Sure, you expect to pay
a fair price for whatever product or
service you purchase. Moreover, you
should perceive value for the money
you are spending. Isn’t there a lot to
be said about the overall customer
experience? Your basic expectation
is a successful transaction, but
shouldn’t you expect more?
If the answer to this question
is yes, then you should take into
account your overall customer
experience with the individuals
and companies you do business
with. Everyone wants to feel like
they matter, and most people seek
a certain degree of satisfaction that
inspires repeat business. What do
you do to create a positive customer
experience?
Most people like it when
someone genuinely cares about
their best interests. However, how
many people like it when someone
tries to sell them something?
OIADA DEALER NEWS
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Essentially, people love to buy, but
hate to be sold.
This holds true for the car buying
experience, which is consistently
ranked as one of the most stressful
purchases someone will make.
Customers don’t want to feel like
they are being pressured into buying
a certain vehicle or add-ons.
In general, most of them know
what kind of car they want and
what they want to pay. If they have
contacted you about a car or come to
your lot, the hardest part – getting
them onto your lot – is done. Now
the key is to provide the experience
that enables you to close the deal.
Two weeks ago, I decided to get a
new car. I found the dealership that
had the best selection of the car I
wanted. I set clear expectations with
the salesperson of what they could
expect from me. I told them exactly
what I wanted from them and I
asked if they would like to proceed.
I was assured that they would
work with me under those terms.
While I may be in the industry, on
BY GARRETT JOREWICZ
this day I was a consumer seeking a
hassle-free experience at a fair price.
In reality, they just wanted to get me
in the door, upon which they then
proceeded to change their initial
agreement.
Unable to resolve the issue, I
walked out of the dealership. This
experience sums up how important
a good customer experience is to
me as a consumer. Had they upheld
their initial agreement, they would
have gotten my business. Instead,
not only did they lose a sale, but
they also lost the potential for a loyal
customer.
Ultimately, I was able to get the
same deal from the dealer down the
street I had purchased my last four
cars from. In retrospect, I should
have gone to them first due to my
past positive customer experience
with them.
There are some very basic
principles to enhance the overall
customer experience. Following
these guidelines will help earn
repeat business and referrals!
• P
ut yourself in the shoes of your
customer.
• Be empathetic to the process.
• Educate your customer and be
consultative.
• Care.
Understand that this is a
relationship-driven business
and providing a good customer
experience can help you stand out
from your competition, leading to
loyal, repeat customers.
GARRETT JOREWICZ IS THE REGIONAL DIRECTOR OF
NEXTGEAR CAPITAL, INC.
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WASHINGTON
UPDATE
NIADA Government Report
HERE’S A RUNDOWN OF SOME OF THE LATEST GOVERNMENTAL ISSUES AND ACTIVITY AFFECTING THE USED CAR INDUSTRY
FROM NIADA REGULATORY COUNSEL SHAUN PETERSEN AND NIADA LOBBYIST SANTE ESPOSITO.
National Independent Automobile Dealers Association
12
LEGISLATIVE REPORT
H.R. 749, Eliminate Privacy Notice
Confusion Act; S. 635, Privacy Notice
Modernization Act of 2013
NIADA has been monitoring these
bills, which would eliminate a costly
and duplicative requirement of the
Gramm-Leach-Bliley Act that all financial
institutions mail their customers a copy of
their privacy notice each year even if there
has been no change in the privacy policy.
While NIADA supports both bills in
concept, our preference is the alreadypassed House bill because of concerns over
an addition included in the pending Senate
bill.
Both would remove the annual privacy
notice requirement if an institution has not
changed its privacy policies or procedures.
The bills do not exempt any institution
from an initial privacy notice, nor do they
allow a loophole for an institution to avoid
issuing an updated notice.
The Senate bill adds a qualifying
condition for exemption – that customers
be provided “access to such most recent
disclosure in electronic or other form
permitted by regulations prescribed under
section 504.”
The Senate bill envisions financial
institutions posting their privacy policy on
their website or transmitting it via email.
While that might work for traditional
financial institutions, some small
dealers do not have websites, and email
transmittals can be costly, cumbersome
and speculative at best. And email
transmittal assumes customers have the
capability to receive them, which is not
always the case.
In addition, the reference to “section
504” creates significant uncertainty –
that section, in part, gives the Consumer
Financial Protection Bureau and Federal
Trade Commission broad authority to issue
regulations on an ongoing basis, leaving
Q
in doubt what “other form permitted by
regulations” might take.
Because of that, NIADA’s position is that
subparagraph (3) not be included in the
final version of S. 635.
On April 23, we met with staff of the
House and Senate Banking Committee
to discuss the bills, expressing NIADA’s
support and raising questions about the
Senate’s “add-on language,” and submitted
a formal comment letter.
MAP-21 Reauthorization
The Moving Ahead for Progress
in the 21st Century Act (MAP-21), a
transportation bill enacted in 2012, expires
Sept. 30.
While Congress and the industry realize
transportation bills are rarely passed on
time and short-term policy extensions are
usually required, this time extending the
authorizing language will not be enough
because the Highway Trust Fund will not
have the funds to pay for the extensions.
Congress must decide not only what
policy provisions to include in the next
reauthorization bill, but how to fund it.
There is strong support from the
industry for a gas tax increase from
stakeholders who might be expected to
oppose it, such as the American Trucking
Associations and the U.S. Chamber
of Commerce, but Congress does not
appear to have the will to take on such
a politically charged issue prior to the
November mid-term elections.
As a result, Congress will have to pass a
short-term funding bill before its August
recess. It’s estimated that $10 billion is
needed through the end of the year, on top
of the $53 billion already transferred from
the general fund over the past few years.
That’s a problem because the
committees charged with drafting MAP21 reauthorization bills and short-term
extensions do not have authority to add
There is strong support from the
industry for a gas tax increase
from stakeholders who might be
expected to oppose it, such as the
American Trucking Associations and
the U.S. Chamber of Commerce, but
Congress does not appear to have the
will to take on such a politically charged
issue prior to the November mid-term elections.
OIADA DEALER NEWS
OR_0614.indd 12
JUNE 2014
revenue to the trust fund. The committees
that do have not indicated how or when
they will deal with the situation.
Meanwhile, Transportation Secretary
Anthony Foxx unveiled the President’s longterm transportation bill, the Grow America
Act, a four-year surface transportation
reauthorization bill that includes more
than $300 billion for highway repair
and construction, public transportation,
railroads and a multi-modal freight
program.
REGULATORY REPORT
Consumer Financial Protection
Bureau
BMO Harris to pay flat fee: In
response to the CFPB’s scrutiny over dealer
markup in indirect lending, Chicagobased BMO Harris Bank announced it will
pay dealers a flat percentage of the loan
as compensation and eliminate dealer
markup. CFPB director Richard Cordray
applauded the move.
Arbitration study: The CFPB is
charged with studying the impact of
arbitration clauses in consumer financial
transactions.
The study’s director indicated the bureau
is looking at the outcomes of lawsuits
involving consumer financial products
(including class actions) and arbitrations,
the costs and benefits to consumers of class
actions, the impact of class actions and
arbitrations on prices for goods and services,
and the relationship between private and
public enforcement of consumer financial
services laws. The study is scheduled to be
completed by the end of the year.
FEDERAL TRADE COMMISSION
Review of Fuel Economy Guide:
The FTC is seeking comments on potential
updates to Environmental Protection
Agency fuel economy labeling rules. The
FTC is updating the “miles per gallon”
rating system and including a measurement
for alternative fuel vehicles.
The FTC is asking for industry input
on useful information that is helpful to
consumers and helps marketers avoid
unfair and deceptive claims.
New FTC commissioner: On April
28, Terrell McSweeny began her term
as FTC commissioner, which ends in
September. McSweeny previously served
as chief counsel for competition policy
and intergovernmental relations for the
Department of Justice. She has served as
a policy advisor to President Obama and
Vice President Joe Biden.
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AUCTION
NEWS
DAA
Northwest
Helps Toyota
Raise Funds
EFFORTS BENEFIT BOYS & GIRLS CLUBS
14
DAA Northwest recently teamed up with
fellow independent Norwalk Auto Auction,
ADESA and Manheim auctions in support
of Toyota Financial Services’ Boys & Girls
Clubs fundraising drive. With an emphasis
on reducing the national high school dropout
rate, Boys & Girls Clubs provide youth with the
academic, behavioral and social skills needed
to graduate. In a recent survey conducted at
local clubs, 28 percent of club alumni said they
would have dropped out without the club’s
influence.
With DAA Northwest and additional auction
contributors, TFS presented a check for
$500,000 to 35 Boys & Girls Clubs during the
March 17 “diplomas 2 Degrees” event.
“We’re honored to support TFS in this
effort,” said DAA president Bob McConkey.
“These funds will have a direct, positive
impact on young people who might otherwise
lose hope and drop out of school.” Toyota’s
recent contribution surpasses last year’s and
provides funding for 19 additional new clubs.
Toyota Financial Services collaborates with
The Darden Restaurants, Inc. Foundation to
support d2D, a college-readiness program. The
$500,000 raised will help fund d2D as it offers
support for club operations and increases each
club’s ability to serve more youth.
DAA Northwest offers TFS consignment
in the lanes and online via EDGE Simulcast
and Toyota Financial Services’ Weekend
Events. Together with KCI Kansas City, EPI
El Paso and DAA Seattle, it is a member of the
McConkey Auction Group and ServNet, North
America’s premier independent auto auction
association. The McConkey Auction Group is
powered by Auction Edge.
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OIADA DEALER NEWS
5/16/14 12:12 PM
PRODUCTS
Oregon
Independent
OIADA ~ Oregon Independent Auto Dealers Association
Auto Dealers Association
Your only nationally recognized association since 1948.
OIADA, here to help, support, educate and promote quality dealers in Oregon.
Here are the great benefits of OIADA membership:
• Oregon Dealer News is delivered to our dealers monthly, filled with quality up to date
business articles.
• Included in each Dealer News Magazine is 30 minutes towards continued education,
free to OIADA members, which now means returning eight answer sheets a year. This
is a savings of $75 annually.
• OIADA Auction Punch Card: Our valued auction houses in Oregon, Washington and
California are offering $50 savings on your buy and sell fees, a value of $1,100.
• OIADA offers members discounts on all meetings, educational programs and
conventions, with an annual savings of over $200.
• OIADA members receive a discount on most forms, a savings of up to $100 or more
annually.
• Quarterly regional dinner meetings, an outreach to bring programs, education and
conversation to all areas within Oregon.
• Annual convention will host a variety of programs including eight or more hours of
continued education. Quality Dealer of the Year Awards and Banquet. At a savings of
$100 for OIADA members.
• Opportunities for OIADA members to be awarded Oregon’s Quality Dealer of the Year
and to compete for the National Quality Dealer of the Year at our national convention.
• National education opportunities, becoming a Certified Master Dealer and more.
• National access to Dealers 20 Groups .
• OIADA has on contract a lobbyist to bring forth interests and to protect our dealers at
the state level.
• OIADA hosts a required certified 8-hour Pre-License Class. Upon completion dealers
will receive the DMV required 8-hour certificate.
• Title and registration classes, savings of $35 for OIADA members.
• Help and support with your issues is just a phone call away.
• Automatic membership with NIADA and the NIADA Used Car Dealer Magazine.
• Access to NIADA’s annual convention.
• Opportunities for scholarships, both state and national.
• NIADA offers OIADA members a wide variety of discounts to members, from education
to everyday business expenses.
16
Contact OIADA at 503-362-6839 to start your enrollment for all these great opportunities as a
member of OIADA.
Annual Savings
$1100
Auction Punch Card
$ 100
Forms
$ 75
Education
$ 100
OIADA Convention
$ 50 Driven to Learn & Regional Meetings
$ 1425 Bottom Line Savings
$325 Cost of Membership ~ OIADA helping you succeed.
OIADA DEALER NEWS
OR_0614.indd 16
JUNE 2014
& SERVICES
Carfax Adds
Vehicle History
Search
UNIQUE VEHICLE LISTINGS SITE HELPS CONSUMERS
FIND THE RIGHT CAR WITH THE RIGHT HISTORY
FROM DEALERS
Carfax has unveiled a new online car
shopping tool that helps consumers find the
right car with the right history. At carfax.com,
online shoppers now can search for used cars
with specific vehicle history details – such as no
accidents reported to Carfax, service records
and Carfax 1-Owner.
Used cars for sale from thousands of dealers
on the new listings site all come with free
Carfax vehicle history reports. Plus, vehicles are
shown based on the history attributes shoppers
want, making the shopping process for carfax.
com visitors easier and faster.
“I found a great car on Carfax,” said used car
shopper Nathan Walker from Washington. “I
called the dealer immediately and he said the
car was not listed in their inventory yet because
it was still in detail and undergoing inspection.
I already knew from the information in the
Carfax listing that I wanted to see it. I drove
forty miles to the dealership and bought the
car.”
Key vehicle history details seen in every
vehicle listing help save time while sifting
through search results. At carfax.com, visitors
begin their search of more than one million
used cars by selecting the vehicle history
attributes they want. Listings from Carfax
Advantage Dealers also include price, photos
and a detailed description of the vehicle.
Once potential buyers find the car they want,
they easily connect with the dealer directly
from the vehicle listing.
“We’ve made sure our inventory is included
on carfax.com for years,” said Jeff Best, vice
president of used cars for Brown’s Car Stores.
“It’s an easy way for us to get in front of readyto-buy shoppers. Consumers trust Carfax,
which helps build their trust in the cars we list
on Carfax.”
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ASSOCIATE MEMBERS
ACCOUNTING SERVICES
Delap, CPA
Adam Puckett
Lake Oswego, OR 97035
503-697-4118
ADVERTISING
Affiliated Media LLC
Aaron Jarvis
503-683-2574
Carsforsale.com
Aaron Oestretch
605-306-3302
AutoTrader.com
Ed Merrick
503-747-9162
Carjohnny.com
Thomas Garza
888-435-3000
Cars.com
James Lynch
312-601-5052
The Oregonian
Rich Fryback
503-221-8486
UsedCars.com by Dealix
Tamara Garris
847-397-1700
AUTO SERVICES &
ACCESSORIES
Auto Marketing Specialist
Gary Palaniuk
503-519-7725
AUTO DETAILER
Show Room New
Mike Barthe
P O Box 822073
Vancouver, WA 98682
360-882-8162
Northwest Auto Accessories
Craig Lessard
503-288-5700
DAA Northwest
Mitzi Vanvoorhis
509-244-4500
Credit Concepts
Jason Moon
541-342-8545
NextGear
Robert Torbet
503-358-3911
SHOWROOM/BUSINESS
JANITORIAL
JaniKing
Morgan Thomas
1500 Valley River Dr., STE # 205
Eugene, OR 97401
503-535-9758
DAA Seattle
Dave Blake
Auburn, WA 98002
253-737-2200
JP Morgan Chase Auto
Finance
Jeff DeGarmo
503-201-4370
Manheim Seattle
Auto Auction
Ray Priest
206-762-1600
Lobel Financial
Tom McConkey
503-653-8000
INSURANCE & BONDING
Hecht & Hecht
Insurance Agency
Evelyn Hecht
503-542-1131
Show Room New
Mike Barthe
360-882-8162
COMMERCIAL CLEANING
JaniKing
Morgan Thomas
541-868-8080
PRIVATE AUCTIONS
Brasher’s Northwest
Auto Auction
Mark Melton
541-689-3901
Brasher’s Portland Auto
Auction
Jerry Hinton
503-492-9200
Crosspoint NW Dealer
Auction
Brian Hardy
503-594-2800
Manheim Portland
Auto Auction
Ray Priest
503-286-3000
OUT-OF-STATE AUCTIONS
ADESA Seattle Auto Auction
Jason Arcaro
253-735-1600 x 213
PUBLIC AUCTIONS &
AUCTIONEERS
Commercial Industrial
Auctioneers
Ray Beal
503-760-0499
Insurance Auto Auctions, Inc.
Ryan Hall
503-253-1500
Petersen Auction
Group of Oregon
Curt Davis
541-689-6824
Shepard & Shepard
Business Solutions
Todd Shepard
509-396-0488
Nationwide Insurance
Mark Tischer
503-339-4165
The Summit Group of Oregon
John Petrie
503-581-2825
Oregon Auto Finance
Gary Veum
541-868-0472
LEASING
Oregon Roads, Inc.
Joseph McKinney
541-683-2277
Oregon Community
Credit Union
Rich Black
541-681-6311
SERVICE CONTRACTS
A.U.L./D.P.C.
Jim Bangert
360-834-3333
Reliable Credit Association
David Marx
503-462-3022
Rick Leathers Auctioneers
Rick Leathers
503-668-5326
Smartway Auto Advisors
Sheldon Harris
503-795-7700
Automotive Business
Developers
Shannon Meany
541-944-9186
Woodburn Auto Auction
Steve Morin
503-981-8185
The Equitable Finance Co.
Brandon Fox
503-808-7939
Auto Services Company
Susan Williams
800-442-7116
DEALER SOFTWARE
Frazer Computing
Michael Frazer
888-963-5369
United Finance
Todd May
503-238-6488
Protective Life Insurance
Dylan Doran
818-836-1455
FLOORPLAN FINANCING
Floorplan Xpress
Josh Chandler
503-621-9260
TRAINING
OIADA/NIADA Certified
Pauline Sill
503-362-6839
FINANCING
Credit Acceptance
John Bragg
360-980-2214
17
MEMBER BENEFITS
There is not another association that works harder than
we do to provide its vendors with exposure, leads and
other lucrative opportunities. Please review some of the
following programs and areas that we help promote those
businesses that support OIADA.
Marketing: Opportunity to give coupons to dealer
members, included in all dealer packets. Ad space on
inside pages all presentation folders sent throughout
the year. Meal sponsorships available for Pre-License
classes, Title & Registration classes.
Databases: Access to all OIADA membership databases
for mailings. We require a review of the info that you will
be sending to our members. Associates may have a list
quarterly or 4 times a year. Each time you get a list you
may use it only once for a mailing. Just send us an e-mail
request for current database and we’ll be glad to send to
you once we review your marketing page.
OIADA Magazine & Service Provider Listing: Your
company and contact information will be listed in OIADA’s
Dealer Service Provider Directory in our magazine that
is distributed to around 2000 dealers every month of
the year. We also have great rates for those companies
interested in additional exposure in OIADA’s popular and
well read “Oregon Dealer News”
Website Listing and Link: If your company has a website,
we will add your company link to our company website as
well as listed in Oregon Dealer News.
Regional Meetings (7) and Membership Drives: Many
of OIADA’s Associate Members like to get involved in
helping with OIADA’s regional meetings. Also our auction
hosted membership drives. Those vendors who agree
to participate get the benefit of meeting larger groups of
dealers in one location while being able to establish a
relaxed relationship with future potential prospects.
Special Speaking and Sponsorship Opportunities:
OIADA is always having events going on where the
environment is ideal for sponsors to participate. Some
examples of this are regional meetings, golf tournaments,
auction membership drives and of course our annual
convention and trade show.
Developing Strategic Relationships: Network with
other companies who associate themselves with
our association. Either during our regional meetings,
membership drives or board meetings.
Annual Convention and Trade Show: Participate in our
once a year convention and trade show for maximum
exposure and opportunities. Call for information on
Reception, Tradeshow, Meal and Golf Tournament
sponsor levels.
OIADA EDUCATION
SCHEDULE
June
The CERTIFIED MASTER DEALER® program was developed in 2001, in collaboration with
Northwood University, to help dealers manage and grow their businesses. Since then, it has grown
into one of the industry’s most respected training programs. Dealers who attend this training
are committed to the industry, support ethical business standards and practices, and are leaders
in their communities. They bring a wide range of experience to each class, and leave with new
strategies for analyzing their business practices and increasing their bottom line. Instruction is
provided by Joe Lescota, NIADA Director of Dealer Development and former retail automotive
executive with more than 25 years of frontline dealership, selling management and training
experience. For more information, please contact Georgia Brown at (800) 472-8101.
W W W. O I A D A . C O M
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2 Pre-Licensing Class, Salem
20
Title and Registration,
Manheim Portland
25 Pre-Licensing Class, Salem
JUNE 2014
OIADA DEALER NEWS
5/16/14 12:12 PM
P R O G R A M
E D U C A T I O N
C O N T I N U I N G
Complete this test and certify below that you have read the articles for JUNE 2014
“Buying a Used Car”
True/False: A vehicle history report is guaranteed to uncover a
vehicle’s every accident.
What kind of report can give you additional insight into a vehicle’s
history?
a) Credit report.
b) CDR report.
c) Damage report.
“CRM vs. BDC”
For what does CRM stand?
a) Customer Relationship Management.
b) Credit Report Management.
c) Car Repossession Management.
True/False: A CRM’s goals are to find, attract and win new
customers; nurture and retain those you already have; entice
former customers to not be former customers and help reduce
the cost of marketing and customer service.
What is the goal of a BDC?
a) To monitor compliance/regulatory matters.
b) To help you manage the dealership.
c) To set as many appointments as possible.
OIADA DEALER NEWS
OR_0614.indd 18
“Insights into Customer Experience”
True/False: A car is consistently
ranked as one of the most stressful
purchases someone will make.
What should you do to enhance
customer experience?
a)Put yourself in the shoes of your
customer.
b) Be empathetic to the process.
c)Educate your customer and be
consultative.
d) Care.
e) All of the above.
I certify to OIADA that I have personally read these articles in The Oregon
Dealer News Magazine for JUNE 2014. STOP!! Before you sign and send this
form, make sure you have answered and completed all the quiz questions to
receive Continued Education Credits.
My Name _______________________________________________
Dealership Name _________________________________________
Dealership # _____________________________________________
Dealer License Expiration Date:
(Month)__________________________ (Year)__________________
O I A D A
18
Read & Respond and Certify Below
Signed: ___________________Date___________________________
FAX TO: 503-364-7331 or mail to OIADA, 1475 Capitol St
NE, Salem, Oregon 97301
JUNE 2014
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