April 2016 - Oregon Independent Automobile Dealers Association

REPRESENTING ALL AUTO, TRUCK, TRAILER, RV AND POWER SPORT DEALERS OF OREGON
Dealer
News
THE
OFFICIAL
MAGAZINE
OF
OREGON
S T A T E
A P R I L
A F F I L I A T E
2 0 1 6
Inside:
IADA
Social Media Strategy / 06
Structure Profitable Car Deals / 10
Dropping Loonie and US Car Sales / 12
ENTREPRENEURSHIP
LANDMINES
HOW TO AVOID THEM
DALLAS, TEXAS
Permit No. 2079
PAID
PRSRT Standard
U.S. Postage
VISIT US AT W W W.OIADA.COM
Page
08
O I A DA
CONTINUING
E D U C AT I O N
P RO G R A M
Read &
Respond
and Certify
Page 12
AUC T ION NE W S
Inside
A P R I L
2 0 1 6
SOCIAL MEDIA STRATEGY
Plan to Succeed | PAGE 06
ENTREPRENEURSHIP LANDMINES
How to Avoid Them | PAGE 08
GIVES ADESA STRONGER
FOOTHOLD IN WEST
BY JOE OVERBY, AUTO
REMARKETING EDITOR
THREE STEPS TO STRUCTURE
PROFITABLE CAR DEALS
Make the Right Deal
| PAGE 10
DROPPING LOONIE AND U.S.
CAR SALES
U.S. Dealers Driving Canadian Exports | PAGE 12
APRIL QUIZ
Continuing Education | PAGE 12
WHY YOUR GRANDFATHER
WOULD OUTSELL TODAY’S
SALESPERSON
Key Advantages | PAGE 14
What’s New
2016 NATIONAL TIRE SAFETY WEEK
MAY 29-JUNE 4
Tire Safety Week, an initiative of the Rubber
Manufacturers Association’s “Be Tire Smart
– Play Your PART” program, will be celebrated
May 29-June 4. Dealers can do their part in
educating motorists about proper tire care and
maintenance. To help, RMA provides free “Be
Tire Smart” brochures and other materials,
which can be ordered at www.betiresmart.org.
Advertiser’s Index
Autotrader........................................................................................................... 7
Brasher’s Northwest/Portland ........................................................BC
DAA Northwest/Seattle.........................................................................IFC
GM Financial...................................................................................................... 5
Lobel Financial Corporation.................................................................. 3
Manheim.com............................................................................................... 11
NextGear Capital ........................................................................................10
TrueCar ................................................................................................................. 9
VAuto...................................................................................................................IBC
Office
Oregon Independent
Auto Dealers Association
1475 Capitol St. NE
Salem, OR 97301
800-447-0302
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 © 2016 by NIADA Services,
Inc.Inc. All rights reserved.
STATE MAGAZINE MGR./SALES
Troy Graff • [email protected]
EDITORS
Jacinda Timmerman • [email protected]
Andy Friedlander • [email protected]
MAGAZINE LAYOUT & GRAPHIC ARTIST
Chantae Arrington • [email protected]
ART DIRECTOR
Christy Haynes • [email protected]
PRINTING
Nieman Printing
4
OIADA DEALER NEWS
| APRIL
2016
ADESA
to Buy
Brasher’s 8
Auctions
|
ADESA has signed a definitive
agreement to purchase the
Brasher family’s eight auto
auctions.
ADESA parent company
KAR Auction Services said
the purchase would be a $283
million (approximately) cash
deal. The transaction must meet
customary conditions, including
the expiration or termination of
the Hart-Scott-Rodino waiting
period, before it closes.
KAR expects the deal to close in
the first quarter. It plans to fund
the purchase with available cash
and proceeds from its revolving
credit facility. The purchase can
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
Cars.com
James Lynch
312-601-5052
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
SHOWROOM/BUSINESS
JANITORIAL
Show Room New
Mike Barthe
360-882-8162
give ADESA a stronger foothold
in the West, the company said.
Brasher’s locations include
Brasher’s Salt Lake, Brasher’s
Sacramento, Brasher’s Portland,
Brasher’s Boise, Brasher’s San
Jose, Brasher’s Northwest,
Brasher’s Reno and Brasher’s
Fresno.
KAR said key corporate
and local auction personnel
for Brasher’s will maintain
leadership roles throughout the
Brasher auctions.
“The Brasher family is one
of the most highly respected
families in our industry. It is a
tremendous honor that they
have agreed to become part
of ADESA,” Jim Hallett, KAR
chairman of the board and chief
executive officer, said in a news
release.
“Brasher’s is a premier
auto auction with a strong
management team that shares
our passion for the auction
business and desire to provide
the best customer service
possible. I am also pleased that
the members of the Brasher
family and other leaders in their
business have agreed to join our
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
DAA Northwest
Mitzi Vanvoorhis
509-244-4500
DAA Seattle
Dave Blake
Auburn, WA 98002
253-737-2200
Manheim Seattle
Auto Auction
Ray Priest
206-762-1600
Board of Directors
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
Rick Leathers Auctioneers
Rick Leathers
503-668-5326
Woodburn Auto Auction
Steve Morin
503-981-8185
DEALER SOFTWARE
Frazer Computing
Michael Frazer
888-963-5369
FINANCING
Credit Acceptance
John Bragg
360-980-2214
Credit Concepts
Jason Moon
541-342-8545
JP Morgan Chase Auto
Finance
Jeff DeGarmo
503-201-4370
Lobel Financial
Tom McConkey
503-653-8000
PRESIDENT
Gary Sargent
Sargent’s Motor Sport
1st VICE PRESIDENT
Siamak Lofti
Siamak’s Car
Company
EXECUTIVE VICE
PRESIDENT
Tommy Wilson Jr
Tommy Wilson Motors
TREASURER
Gary Brooks
Brooks Motors
W W W. O I A D A . C O M
management team,” he said.
John Brasher added, “For
67 years, Brasher’s has been
synonymous with outstanding
auto auctions. We take that
commitment to our employees
and our customers personally,
and do not approach this sale
of our auctions lightly. We fully
believe that our auctions will
reach even greater levels of
excellence as part of ADESA.”
Stephane St-Hilaire, CEO
and president of ADESA, said,
“Brasher’s is a leader among
independent auctions with a
strong mix of commercial and
dealer consignment customers.
Along with increasing ADESA’s
footprint in three new states, the
addition of Brasher’s enhances
ADESA’s physical and online
buyer bases.
“It also increases our ancillary
services, while enabling our
sister company, AFC, to develop
a presence at Brasher’s eight
auction locations. As part of
the KAR group of companies,
we plan to offer Brasher’s
customers the complete suite
of KAR’s end-to-end vehicle
remarketing services.”
Nationwide Insurance
Mark Tischer
503-339-4165
Oregon Auto Finance
Gary Veum
541-868-0472
Oregon Community
Credit Union
Rich Black
541-681-6311
PacWest LLC
John Keifer
341-868-2595
Reliable Credit Association
David Marx
503-462-3022
Smartway Auto Advisors
Sheldon Harris
503-795-7700
The Equitable
Finance Co.
Brandon Fox
503-808-7939
United Finance
Todd May
503-238-6488
FLOORPLAN FINANCING
Lobel Financial
Tom McConkey
503-653-8000
Floorplan Xpress
Josh Chandler
503-621-9260
NextGear
Robert Torbet
503-358-3911
INSURANCE & BONDING
Hecht & Hecht
Insurance Agency
Evelyn Hecht
503-542-1131
SECRETARY
Jim Weaver
Credit Union
Auto Broker
KMI Agency, Inc.
Kelly Martin
503-625-2615
Shepard & Shepard
Business Solutions
Todd Shepard
509-396-0488
The Summit
Group of Oregon
John Petrie
503-581-2825
LEASING
Oregon Roads, Inc.
Joseph McKinney
541-683-2277
SERVICE CONTRACTS
A.U.L./D.P.C.
Jim Bangert
360-834-3333
Automotive
Business Developers
Shannon Meany
541-944-9186
Auto Services Company
Susan Williams
800-442-7116
DPC, Inc.
Jacob Bangert
360-834-3333
Protective Life Insurance
Dylan Doran
818-836-1455
TRAINING
OIADA/NIADA Certified
Pauline Sill
503-362-6839
SO CI A L MEDI A
Common
Challenges
Solved with
Targeted
Social Media
Strategy
PLAN TO SUCCEED
BY KATHI KRUSE,
FOUNDER/CEO, KRUSE
CONTROL INC.
What are your sales and
revenue goals? Setting goals
greatly increases the chance
you’ll achieve them... but many
businesses jump into social
media marketing without even
a thought as to what their goals
are. Some bring their goals
to the table with wide-eyed
enthusiasm but get attached to
problematic tactics they think
will solve their challenges.
When things don’t work, they
give up.
With a solid plan and welldefined goals, a targeted social
media strategy can be applied
and, suddenly, things begin
to fall into place. Without an
authoritative plan, valuable
assets are wasted on things
that will not solve challenges,
and things that do matter get
overlooked.
I had two such examples
recently that illustrate this need
for well-defined goals and the
ideal social media strategy to
solve challenges:
1. The client’s challenge was
declining traffic, leads and
sales. Their plan was to attract
buyers from a new market using
social media. There was no data
to back up this plan and no
details on how they were going
to get there.
After further investigation,
we helped them discover a
deeper, broader strategy that
included content creation
and SEO, which solved
their challenge much more
effectively.
2. The client’s challenge was
entering a new market without
any brand awareness. They had
very little budget (a common
misperception of social is that
it’s free). The plan was to hire
a part-time person to publish
messages on social media to
“get the word out.”
After data gathering and
further investigation, we
proposed a more ideal strategy
beginning with a solid marketing
plan and website update. As
budget allowed, they would then
roll out social media marketing
to support their goals.
Let’s face it, social media
and all online marketing and
advertising is getting more
TODAY’S CHALLENGES
NEED TO BE MET WITH
TODAY’S SOLUTIONS.
GIVE YOUR DEALERSHIP
THE FIGHTING CHANCE
IT DESERVES BY SETTING
STRONG FOUNDATIONAL
STRATEGIES IN PLACE
TO GROW YOUR
BUSINESS.
6
OIADA DEALER NEWS
| APRIL
2016
|
W W W. O I A D A . C O M
complicated. Before you jump
in, or if you’ve already jumped,
outline the challenges you’re
facing with your business,
including your organizational
structure.
If you don’t have the expertise
in-house to determine your
goals and/or the design and
execution of your social media
strategy, a qualified expert can
help you get going on the right
course of action.
SOCIAL MEDIA
STRATEGY... FOR THE WIN!
The following common
business challenges can be
solved with a precise social
media strategy designed to
achieve that goal.
Challenge: Low Website
Traffic
Nearly every buyer starts his
or her purchase journey online.
Your website is the virtual
storefront of your dealership
and low website traffic means
fewer customers and decreased
revenue.
Social media strategy: With
a goal of increasing traffic to
your site, focus your strategy on
publishing links that go directly
to your website. Promoting
those links to your helpful
content using Facebook ads
will position your business as
a trusted resource and, with a
little savvy, increase leads and
sales.
Challenge: Weak Brand
Awareness
Social media is ideal for
reaching a broad audience.
However, what you post creates
an impression in users’ minds.
Social media strategy: Identify
what makes your business
unique – what differentiates
you from your competition.
Create and publish content that
illustrates why people buy from
you instead of your competitors.
Stay away from promotional
messages at this stage. Pretend
you’re meeting these people in
person for the first time. You
wouldn’t greet them with a sales
pitch. Focus on meaningful
content that personifies why
customers choose you.
Challenge: Declining
Customer Retention
Social media is excellent for
staying in touch with current
customers. It costs five to eight
times more to acquire a new
customer than it does to keep an
existing one.
Social media strategy:
Treat your social channels as
communities where like-minded
people come to hang out. Appoint
a “community manager” who
engages and supports your
community by listening and
being responsive. A good social
relationship with your customers
improves perceptions and offline
relationships.
Challenge: Poor Online
Reputation
Don’t give online ratings sites
the power to control your business.
If what’s being said about you
doesn’t mirror the true customer
experience delivered, take action
now to turn things around.
Social media strategy:
Implement an internal process
to capture your happy, loyal
customers’ opinions. Create a
review funnel. Focus on email
surveys that ask a net promoter
score question: “On a scale of
1 to 10, how likely are you to
recommend us to your friends and
family?”
If they answer 1-6, send them
to a landing page asking to get in
touch to resolve the issue. If they
answer 7-10, ask for their feedback
and send them to a landing page
with links to your profiles.
Challenge: Slow Sales
Social advertising, especially
Facebook ads, is one of the
most under-utilized options out
there right now. By publishing
relevant, holistic content you
lay the groundwork for further
engagement. The next natural step
is to target would-be buyers with
offers.
Social media strategy: Facebook
ads are ideal for laser targeting your
ideal customers. Create landing
pages with lead forms and design
ads that compel buyers to click.
Action time: Today’s challenges
need to be met with today’s
solutions. Give your dealership
the fighting chance it deserves
by setting strong foundational
strategies in place to grow your
business.
Outline your challenges. Make
your plan, define your business
goals and employ proven social
media strategies to solve those
challenges.
In 2016, the winners will be those
who have leveraged the social web
to their advantage. I want you to be
one of the winners!
Kathi Kruse is an automotive social media
marketing expert, blogger, consultant, author,
speaker and founder of Kruse Control Inc. Kruse
Control coaches, trains & delivers webinars
focused on integrating social media and
online reputation management into dealership
operations.
M A N AG E MEN T M AT T ERS
Entrepreneurship
Landmines
HOW TO AVOID THEM
BY PETER ORD
Throughout
my years in the automotive
industry, I’ve watched dealer
after dealer fall prey to
“tunnel vision.” It’s easy to
get so caught up in the day
to day process of selling cars
you forget you’re running a
business.
I’ve also seen a handful of
dealers I know would succeed
regardless of the industry.
They could sell hamburgers,
furniture or sunglasses.
It doesn’t matter because
they are simply stellar
businesspeople and know how
to run a company.
If you own an independent
dealership, you’re more
than a sales organization.
You’re an entrepreneur first
and foremost, and the most
successful dealers remember
that. Let’s explore some
common mistakes dealers
make as they spread their
entrepreneurial wings, and
what you can do to avoid them.
Landmine No. 1: You don’t
want to accept the industry
has changed.
I’m referring chiefly to
compliance here, but you
could also apply this concept
to many other areas. Over the
past decade, we’ve witnessed
regulatory burdens grow
heavier and heavier. Even so,
some dealers want to continue
the status quo, citing their
small size as a reason to stay
under the radar.
Unfortunately, that strategy
won’t work going forward.
Recent cases spotlight
the exposure even small
independent dealerships have
with the FTC, CFPB and other
regulators, not to mention
lawsuit risk. Now is the time to
invest in serious compliance
education and to implement
what you learn.
Landmine No. 2: You don’t
use the best technology,
processes or systems.
As a one-man show, you
might be able to (temporarily)
get away with running a
business inefficiently. Once
a full team is hired, however,
8
OIADA DEALER NEWS
| APRIL
2016
those days will be long gone.
You need repeatable, scalable
processes and systems to
achieve sustainable growth.
If you can’t take more than a
day or two off for fear chaos will
ensue, your processes should
be revamped. You should be
working on your business (i.e.,
planning for the future) rather
than in your business (i.e., in
reactive mode every day).
Be sure to support your
infrastructure with top of
the line technology, and
take advantage of training
to maximize the benefits of
software or third party services.
Most dealers think they are on
track with these criteria, but an
honest assessment will likely
reveal at least a few areas to
fine tune.
Landmine No. 3: You don’t
have a clear picture of where
the company is headed.
Before you can empower
your team, you must first
develop the vision yourself.
What objectives do you want
to accomplish over the next 12
months?
I’m not just talking about
sales goals. Write down your
concrete, actionable and
measurable objectives for this
year, and review it multiple
times. Write out a clear path
to get there. Hint: If this plan
doesn’t involve delegation, try
again!
Landmine No. 4: You have
not communicated corporate
goals to your staff where
they can “own” the vision.
If you plan to sell your
company one day or pass
it down to family, this
point is crucial. I see two
types of businesses in
our industry: 1) systemsdriven and 2) personalitydriven. A systems-driven
business reflects the solid
infrastructure described in No.
2. It’s sustainable, repeatable
and – most important – can
exist apart from the owner.
On the other hand, a
personality-driven dealership
relies heavily on your day to
day involvement. Delegation is
rare, and few employees – not
even department heads – are
encouraged to take ownership
of their team’s goals. This
|
W W W. O I A D A . C O M
BEFORE YOU CAN EMPOWER YOUR
TEAM, YOU MUST FIRST DEVELOP
THE VISION YOURSELF.
sort of organization consists
mostly of order takers
who are not personally
invested in any particular
outcome. I believe the
strongest business model
is built on a clear hierarchy
with department leaders
empowered to fulfill the
company’s vision.
Landmine No. 5: You
have not hired the right
team for long term success.
If you cringe at the thought
of delegation, perhaps
you need to hire different
people. You should trust
the competence of your
department heads serving
as your inner circle. If you
don’t, that’s a red flag.
Create clear job
descriptions, along with
hiring processes and policies,
that will make your business
appealing to an outside buyer
or understandable to family
members who take over
when you retire. Whether
you execute this step could
mean the difference between
running a “lifestyle business”
or one with a profitable exit
strategy.
Landmine No. 6: You
avoid paperwork like the
plague.
I’m not saying you should
get bogged down in minutiae.
However, if you’re committed
to building a solid system
others can follow, it requires
documentation. There’s no
way around it.
Dealerships can be overly
sales-focused, which I
completely relate to as a
salesperson myself. But
front-end sales are not the
end of the story. Ultimately,
sustainable profits are
what matter, and that’s
only possible when you’ve
done some heavy lifting to
implement a bulletproof
infrastructure on the back
end.
Landmine No. 7: You
don’t understand the power
of first impressions.
Some dealers believe
their showroom should look
flawless and pristine. Fewer
believe the same about
their sales/F&I offices. Even
fewer believe it about their
staff. And still fewer believe
it about their websites. In
reality, the appearance of all
these things matters.
Today’s buying cycle usually
includes weeks of research
before the customer ever
steps onto the showroom
floor. Much of that research
is conducted on a dealer’s
website. Pay attention to
the details, such as errors,
broken links, search
engine optimization and
consistent content. Better
yet, walk through the site
as a customer (including
submitting a lead with the
online form), and see what
areas need improvement.
As an entrepreneur, you
must be intentional in
building your dealership’s
brand. Every interaction
a customer has with your
website, salespeople, F&I
manager or receptionist
ultimately creates the brand
story he or she remembers.
Support your team with a
clear vision, and give them
the tools to carry it out. A
few years from now, when
you open up a purchase offer
letter that could fund your
retirement, you’ll be glad
you took the time.
Peter Ord is director of sales operations
at DealerSocket. He has installed,
implemented, and managed the
DealerSocket system at more than 2,500
dealerships in his 13 years with the
company.
BHP H P ERSP EC T I V E
Three Steps to Structure
Profitable Car Deals
MAKE THE RIGHT DEAL BY BRENT CARMICHAEL
Whether you are concerned about
collecting or about meeting sales goals,
there are good reasons to make sure the
deals you do make are well-structured.
Here are three tips to make that happen.
Choose the right term and payment.
A sound deal starts with the term. Your
deal has to make sense. A low ACV unit
on a long term just because we got a good
down payment? That simply doesn’t work.
Not because the car won’t run the note,
but because the customer won’t run the
note.
Fewer than half the deals we put on the
books in the BHPH industry go to term.
Almost a third will charge off, and another
20 percent will pay off early either through
our effective repeat programs or from our
competition.
Term should be dictated by two factors:
What the customer can afford (based
on their verified net income) and your
appetite for exposure. If the customer
can afford a $300 monthly payment and
you are only comfortable with a 30 month
term, then that customer’s total contract
can only be $9,000. So, you can sell that
customer any vehicle on your lot as long as
they leave owing you no more than $9,000
in principal and interest.
Obviously, because payment is an
integral piece of establishing term, it’s
also an important factor in a sound deal
structure. What we are looking for here is
the same as term. The payment date has
to be logical. Payment should be due when
the customer gets paid and on their next
available paycheck, barring any deferred
downs.
Allowing a BHPH customer to go 30 days
without a car payment without a deferred
down is asking for trouble. We know our
customers have had issues with budgeting
money in the past, why not help them
budget better by starting their payment
right away? And, to help them even more,
have their payment scheduled for the day
they get paid. It’s an easy reminder: get
paid, make payment.
Select the right rate and add-ons.
Interest rate is the next aspect of deal
structure. Now, before I get hate mail, I’m
not suggesting you shouldn’t profit from
your state’s usury limits. But, I am saying
you may need to adjust this expectation
depending on the term and payment deal
structure. Yes, interest income is our
reward for the risk. However, if the overall
deal structure doesn’t make sense, your
ability to collect your reward will greatly
diminish.
10
OIADA DEALER NEWS
| APRIL
2016
|
W W W. O I A D A . C O M
Back end or addon products are
similar to interest in
the overall scheme of
deal structure. While
they are great profit
generators, their addition to a deal can
affect payment and term, not to mention
cash flow.
It’s a balancing act. You have to decide
how you want to divide the money you
collect from the customer. Will it go to
principal and interest in order to reduce
your risk and increase your reward? Or will
it go to recoup cost in a product?
Use common sense to help the client
pick the right vehicle.
You can’t forget the customer in the deal
structure. Yes, the term, payment, rate
and additions are all critical to the hard
business aspects of the deal, but you need
to keep an eye on what they are buying.
Let me give you an example of a deal
I came across during a consulting visit.
A single mother with four children, two
of whom required car seats, was allowed
to purchase a Chevrolet Camaro. When I
asked the dealer about it, he responded
the customer could afford the payment
based on his criteria and the term was
within his criteria.
Okay. Yes, both of those do make sense,
but common sense should tell us the
deal doesn’t make sense. Sure enough,
the owner wanted to be traded out of the
vehicle within the first year because it
wasn’t big enough.
Moral to the story? The overall deal
structure has to make sense not only for
you the dealer but for the customer as
well.
Bringing it all together: Make the right
deal.
So, let’s review three main steps you
need to take to create the most profitable
deal structure.
1. Term should be dictated by your
exposure comfort level.
2. Payment needs to fit the customer’s
financial ability. Interest and add-ons
need not dictate the term and payment.
Instead, term and payment should impact
how you set up interest and add-ons.
3. Not only should the vehicle fit the
customer’s financial needs, but also their
physical and lifestyle needs.
Brent Carmichael is an executive conference moderator for
NCM. Prior to joining NCM, Brent worked 17-plus years in
subprime finance and collections, the last 11 of which were
in Buy Here-Pay Here. This article originally appeared on
NCM’s Up to Speed blog (http://blog.ncminstitute.com) and
is reprinted with permission.
OI A DA CON T INUING EDUCAT ION P ROGR A M
INDUS T R Y WAT CH
Dropping
Loonie
Pushing
Used Vehicle
Exports to U.S.
OIADA CONTINUING
E D U C AT I O N P R O G R A M
COMPLETE THIS TEST AND CERTIFY BELOW THAT YOU HAVE READ THE ARTICLES
FOR APRIL 2016.
“ENTREPRENEURSHIP LANDMINES”
True/False: If you can’t take more than a day or two off for fear chaos
will ensue, your processes should be revamped.
U.S. DEALERS DRIVING CANADIAN EXPORTS
BY SARAH RUBENOFF, AUTO
REMARKETING CANADA EDITOR
A lower Canadian dollar has
been bad for some industries, and
boosted others. One division of
the Canadian automotive industry
that has grown substantially
over the past year is used vehicle
exports to the U.S.
In fact, according to DesRosiers
Automotive Consultants, the
number of used vehicles exported
to the U.S. from Canada through
November of last year grew to
200,000. This is the highest
export level from Canada to the
U.S. for pre-owned vehicles since
2002.
Interestingly, although this
number is being driven by
American car dealers looking
to secure cheap used vehicles
due to the current exchange
rate, AutoTrader.ca also saw an
uptick in U.S. traffic on its site.
From Nov. 1 to Dec. 31 of 2015,
U.S. traffic to the site increased
by 27.7 percent year-over-year,
AutoTrader.ca’s Paul Williams
reported.
AutoTrader.ca’s director
of marketing Ian MacDonald
said, “A weak Loonie makes
it less expensive for Canadian
manufacturers and exporters
to sell their goods south of the
border. More people looking
to purchase Canadian goods
increases demand. A larger pool
of consumers means dealerships
and private sellers have seen
significantly higher sales year
over year.”
And Canadian auto auctions
have been selling south, as well.
In talking with ALG Canada
regional director Geoff Helby
this past fall, he likened export
activity at ADESA’s Canadian
auctions to a “U.S. dealer
invasion.”
In fact, according to ALG data,
exports were already exploding
last summer. July 2015 marked
the highest volume month at
the time since January 2014 for
12
OIADA DEALER NEWS
| APRIL
2016
Read & Respond
and Certify
Below
True/False: It’s not important to have concrete, actionable and
measurable objectives.
“THREE STEPS TO STRUCTURE PROFITABLE CAR DEALS”
Which of the following should you do to structure profitable car deals?
a) Choose the right term and payment.
b) Select the right rate and add-ons.
c) Use common sense to help the client pick the right vehicle.
d) All of the above.
U.S. dealer purchases. Helby also
reported a year-over-year U.S.
dealer purchase volume increase
of a whopping 114 percent for July
2015.
Tom Kontos, ADESA Analytical
Services’ chief economist,
touched on this trend this past
fall as well, noting at the time it
was definitely a trend to watch
and was already having an impact
on used pricing at auction.
“I did also want to draw
attention to the fact that U.S.
bidders are contributing to the
strength of the market, too,” said
Kontos. “You have got tighter
supply, and dealers coming in
from across the border from the
U.S. and bidding aggressively for
cars, because of the strength of
the U.S. dollar. The U.S. buyers
are contributing to the strength of
prices in the Canadian wholesale
market.”
So, will the export trend last,
grow or diminish with time? Josh
Bailey, Canadian Black Book vice
president and editorial director,
said it’s truly cyclical, and the
trend goes both ways depending
on the two currencies.
Bailey said in October, “From
what we hear from our auction
surveyors, there are still many
U.S. buyers in the Canadian
market making purchases,
whether online or in the lanes,
mostly motivated by the foreign
exchange rate.
“Naturally this creates some
tension, but no doubt when
Canadians were in the U.S. buying
a few years ago, it was not any
different.”
|
W W W. O I A D A . C O M
True/False: The term of your deal should be dictated by two factors:
What the customer can afford (based on their verified net income) and
your appetite for exposure.
“WHY YOUR GRANDFATHER WOULD OUTSELL TODAY’S
SALESPERSON”
Which of the following is NOT a key factor discussed in the article that
gives the “old guard” an advantage?
a) Preparation and Sales Skills
b) Drive for Success
c) Dedication and Commitment
d) Focus on People
True/False: The World War II generation was focused upon themselves.
True/False: With the work ethic and character traits of someone from
the World War II generation and the technology of today, you can have
the best of both worlds.
I certify to OIADA that I have personally read these articles in The Oregon Dealer
News Magazine for April 2016.
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)________________ Signed: ____________________________________________
Date ____________________________________________________________________
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Here are the great benefits of OIADA membership:
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Contact OIADA at 503-362-6839 to start your enrollment for all these great opportunities as a
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OIADA DEALER NEWS
|
APRIL 2016
|
W W W. O I A D A . C O M
13
S A L ES M AT T ERS
Why Your
Grandfather
Would
Outsell
Today’s
Salesperson
KEY ADVANTAGES
BY JOHN CHAPIN
With the development of
the Internet, social media, and
the “new” relationship and
solution selling techniques,
there seems to be a belief out
there that today’s salespeople
are superior to those of the
past. As you can probably
gather from the title, I don’t
necessarily agree. Here’s why.
THREE KEY FACTORS THAT
GIVE THE OLD GUARD AN
ADVANTAGE OVER THE NEW
GUARD
Preparation and Sales Skills
When my dad went for
training at I.B.M. in the early
60s, it was primarily sales
training. Yes, you learned the
product too, but they made
sure you knew everything
about selling: getting through
the gatekeeper to the decision
maker, how to present
your product, overcoming
objections, closing, follow up
and how to build solid, longterm relationships.
Everything was scripted and
you role played until you could
recite everything verbatim
if someone woke you from a
sound sleep at 3 a.m. They also
covered the important basics
such as how to dress, the right
way to shake hands and to pop
a breath mint before a sales call
while avoiding garlic during the
workweek.
These days I am amazed by
the lack of sales skills I run
into on a daily basis. If I walk
into almost any sales meeting
and blurt out objections, stalls
and other prospect obstacles
they have been running into
every day for years, salespeople
stall, stammer, and trip over
their tongues as if it’s the first
time they’re hearing what I’m
throwing at them.
I even give people objections
during the interview just to
see what their best, current
14
OIADA DEALER NEWS
| APRIL
2016
response is to something
simple like, “I can get it
cheaper down the street.” If
they’ve been in sales for any
length of time, they’d better
have a good, quick response to
that one.
Add to that the fact many
salespeople these days seem
to be much more lax with
dress, manners and etiquette
in general. Knowing how to
sell, having a good handshake
and other “basics” should
be common sense, but that
common sense, which was
common decades ago, is more
the exception than the rule in
today’s selling world.
Dedication and
Commitment
When it comes to dedication
and commitment, you’re not
going to beat the World War
II generation. They are also
tough to beat when it comes
to living up to promises and
their word. When you hired
someone from that generation
they understood they had an
obligation to the company,
their boss and their family for
whom they needed to provide.
One of the biggest issues
today is accountability. Decades
ago people were responsible
enough to hold themselves
accountable.
My dad tracked his calls and
kept a call sheet, but these
were success tools as opposed
to something his manager used
to make sure he was doing
what he was supposed to be
doing. His generation would
never consider fudging a call
sheet or hiding out in a coffee
shop or movie theatre when
they were supposed to be out
making calls. Yes, there were a
few of those people back then
but not many, and they weren’t
employed with that company
for very long.
Another major issue is
motivation – simply putting
in an honest day’s work for an
honest day’s pay, along with
taking care of the company, the
customers and one’s family,
was all the motivation one
needed back then. It didn’t
matter how you felt on a given
day. The question was about
the obligation and commitment
you signed up for.
That generation also brought
character traits and a work
ethic to the job we rarely see
these days. All of this comes
|
W W W. O I A D A . C O M
EVEN 60 YEARS AGO, THE BEST HAVE
ALWAYS FOCUSED ON THE RELATIONSHIP
AND WHAT’S BEST FOR THE OTHER PERSON,
THINKING OF THEMSELVES, THEIR PRODUCT
AND THEIR COMPANY SECOND.
back to the dedication and
commitment they felt toward
others knowing that if you’re
taking a paycheck from
someone, you owe them your
best.
Focus on People
The World War II
generation would never be
accused of being the “me”
generation. My dad was the
number one sales rep in New
England for over 30 years for
I.B.M. and Diebold Banking
Equipment because, like most
people of his generation, his
objective was to help and
serve other people. Decades
ago I think there was much
more of a focus on other
people and more of a “thecustomer-is-always-right”
mentality. While many
talk about past salespeople
beating people up and having
one more close than they had
objection, I find the best of
the best have always sold the
right way, with a focus on the
other person.
And, by the way, there is no
“new” relationship selling.
Even 60 years ago, the best
have always focused on the
relationship and what’s best
for the other person, thinking
of themselves, their product
and their company second.
All of the above said, are
there hard workers out there
today who are committed?
Yes. Also, social media,
technology and new sales
ideas are tremendous tools
to warm up cold calls, pinpoint
prospect pains and continue
to connect and communicate
effectively with prospects and
customers.
So although I’ll take the
work ethic and character traits
of someone from the World
War II generation – using a
car, pay phones, and keeping
track of prospects on index
cards every day of the week and
twice on Sunday – imagine the
best of both worlds. Start with
someone hungry, with a bluecollar mentality and thick skin,
who isn’t afraid to show up
early, leave late and pound the
pavement making more calls
than anyone else.
Combine that with someone
who cares about people,
studies their craft and knows
their product. Someone who
practices, drills and rehearses
their presentation, answers to
objections, closes, and anything
and everything they’re likely to
run into during the day.
Finally, add knowledge of
social media and technology,
using it in a supporting role,
in the background, and not as
the foundation for their sales
efforts. Yes, those people are
out there. No, they are not easy
to find. Time to get to work.
John Chapin is a sales and motivational
speaker and trainer. He has over 27 years
of sales experience as a number one sales
rep and is the author of the 2010 sales
book of the year: Sales Encyclopedia.
For more information, visit www.
completeselling.com or email johnchapin@
completeselling.com.