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AgentSummit

2013

Special Pre-Show Edition of Agent Entrepreneur

2013 Agent Entrepreneur 1

Agent Summit 2013

Show Preview 2 Agent Summit 2013: Packed with Info Every Agent Needs By Toni McQuilken

4 2013 Participation & Reinsurance Symposium By TariQ kaMal

6 Letter from the Advisory Board Chairman By randy crisorio

7 Show Sponsors 8 Show Agenda 10 Speakers and Advisory Board Members 49 Provider Innovator of the Year Award

Features 12 An Agent’s Guide to Using Video Review By sTeve veldkaMp

14 Tire and Wheel Is Strong and Getting Stronger By rick MccorMick

16 Leasing Is Back By gerry gould

19 Watch Your Words! That 7 Percent Will Make or Break You By joe verde

20 Are We Setting the Right Price? By lee Bowron

22 Changing Tech, Changing Coverage: Preparing for New Vehicle Technologies By john kerper

24 Asking the Tough Questions By ron reahard

26 Diagnosing Your Clients’ Needs By ToM hopkins

30 Why Customers Purchase By john vecchioni

32 Technology in the Hands of the Customer By MaTT nowicki

34 Selling PPM in the Service Drive By ryan williaMs

Company Profiles 36 AFIP & AiGA 37 Dent Wizard 38 F&I Admin 40 GSFSGroup 42 Innovative Aftermarket Systems (IAS) 44 MenuVantage 46 MyStar Personal Assistant

48 National Auto Care 50 National Automotive Experts 52 Nation Safe Drivers 53 PermaPlate 54 Protective Asset Protection 56 Q&A with Ken Ferguson 57 Q&A with David Duncan

Contents

cover photo courtesy las vegas convention & visitors authority

photo courtesy las vegas convention & visitors authority2 Agent Entrepreneur 2013

Agent Summit 2013

Agent Summit 2013Packed with Info Every Agent NeedsBy Toni McQuilken

agenT suMMiT 2013 will Be held March 4–6 at caesars palace in las vegas. this year’s show is already shaping up to be a good one, with a wide range of speakers, sessions and exhibitors to help agents get ahead. as of press time, in addition to the sessions, there are 40 exhibitors with booths on the expo floor, including various F&I providers with products agents will want to check out.

the show’s educational agenda was put together by an advisory board that reads like a who’s who of the industry. the chairman is randy crisorio, president and CEO of United Development systems inc. Joining him on the board of directors was Tim Brugh, executive vice president, American Auto Guardian inc.; Bob corbin, president and ceo, Innovative Aftermarket Systems (IAS); Michael Klass, principal, associated Dealer Services; Jim Maxim Jr., president and ceo, Maximtrak technologies; Bruce osborne, national sales manager, Allstate Dealer Services; Rick Roesel, president, Agency Services Consolidated inc.; glen tuscan, president, Dealer Commitment Services Inc.; and Matt Twyman, CEO, Ristken Software Services.

Monday, March 4The pre-show events will kick off on Monday with a day-long participation & reinsurance symposium. sponsored by The Warranty Group, the event will feature a welcome address from Jim ganther, president, Mosaic compliance Services, and will include four full sessions packed with information to help agents better understand, sell and work with reinsurance programs. For

more information on this one-of-a-kind event, see our preview on page 4.

The official Agent Summit program will kick off at 5:10pm on Monday night, with the first evening keynote address from Joel Kansanback, president, Automotive Development Group. He’ll look at what agents should be doing to build a better business and position themselves better for future growth. Kansanback’s address will be followed by an evening welcome reception, which all attendees are invited to attend.

Tuesday, March 5tuesday will be packed with a wide range of sessions, as well as some time built in around the lunch hour for agents who want to attend all the sessions to have time to walk the show floor as well. The day will kick off with a welcome address from Luis Garcia, vice president of sales and business development, Safe-Guard products international; followed by an opening keynote address from scott Karchunas, president, Protective Asset protection. the keynote will look at the economics behind the automotive industry as a whole, then will drill down to look at how this affects F&I sales specifically — and how agents can take advantage of it.

From 10:35–11:30 on Tuesday morning, agents will have a choice between a panel and a workshop. the panel, “training Mediums,” features moderator ron reahard, president, reahard & associates inc.; and panelists ray Jennings, director of training, GSFSGroup Training; Garrett Thorpe, vice president and director of training, the impact group; John Vecchioni, director of F&I development and national trainer; and Steve Veldkamp,

training director, great lakes companies. The group will tackle the issue of various ways to convey training messages both in-person and in online meetings. they’ll explore issues such as which types of training work best and how often sessions should be scheduled.

the workshop in this time slot will be hosted by Michelle Damiano, “misschief” and creative director, Impressions WHQ. Damiano will walk agents through setting up their online presence and branding efforts, and teach them how to provide dealers with the information they need to know, when they need to know it.

At 11:35, Rich Moore, director of training, Protective Asset Protection, will tackle the topic of dealer prospecting. he’ll discuss what agents are doing right and wrong when calling on potential new clients, and present new tactics and techniques to use to get more appointments, including real-life examples.

At 12:30, Mike Rayburn will entertain attendees during his luncheon keynote address. A well-known motivational

speaker, Rayburn uses his virtuoso guitar skills to help motivate people to move beyond their perceived limitations.

at 2:05pm, agents can attend a session on new account acquisition, hosted by peter chafetz, national sales training manager, Allstate Dealer Services. he’ll look at the entire new account acquisition process and best practices, and analyze common mistakes that even the best agent can make.

At 3:05pm, James Duggan, principal, Duggan Bertsch, will give his advice for helping agents understand and take advantage of comprehensive planning for private clients. “Taming the B.E.A.S.T.” will examine elements such as buy/sell planning, estate planning, asset protection, succession planning and tax planning.

The final session of the day, at 4:35, will explore how technology in F&I has evolved over the years, and what agents need to do to adapt and stay ahead of the curve. the panel discussion will be moderated by Tony Wanderon, president and CEO, Family First Dealer Services, and be staffed with

industry thought leaders, including Doug Dingman, partner, pro consulting; Matt Nowicki, vice president retail software, ias; John peterson, president, the oak group; and Brian reed, president and ceo, intersection technologies.

wednesday, March 6On Wednesday, the first session will begin at 9:05am. gerry gould, director of training, United Development Systems Inc. will look at “menus discipline” — in other words, how to use the F&I menu to it’s fullest potential to sell more products and secure each car buyer’s investment. His approach will set the foundation for a more consistent and dependable process agents can bring back to their F&I managers.

at 10:05am, there will again be two sessions for agents to choose from. The first will be hosted by speaker Gil Van Over, principal, gvo3 & Assoc. he’ll look at compliance, and why agents should absolutely not act as the “compliance cop” for their dealers. he’ll look at strategies and answers to have ready for when dealers ask, and teach agents how to use them effectively.

At the same time, Mike Legros, vice president, North American Automotive group, will moderate a panel on the best practices and challenges agents should be aware of in 2013. The panel will include arden hetland, ceo, american Financial and Automotive Services (AFAS); Jim Maxim Jr., president and ceo, Maximtrak technologies; rick Messinger, partner, Dealer associates Inc. (DAI); and Bob Volatile, owner, Northeast Dealer Services. The group will explore the best practices every agent should be adhering to if they want to elevate both their own performance and boost their agency’s bottom line.

The show will close out at 11:35 on Wednesday morning, with a keynote from David Robertson, executive director, AFIP and AiGA. He’ll end the show with tips and tricks to take all the information agents have gathered in the other sessions and on the expo floor, and turn them into actionable plans to move forward with. it’s not enough to just listen; agents need to act on what they learn, and robertson will help bridge the gap.


Agent Summit 2013

By Toni McQuilken

agenT suMMiT 2013 will Be held March 4–6 at caesars palace in las vegas. this year’s show is already shaping up to be a good one, with a wide range of speakers, sessions and exhibitors to help agents get ahead. as of press time, in addition to the sessions, there are 40 exhibitors with booths on the expo floor, including various F&I providers with products agents will want to check out.

the show’s educational agenda was put together by an advisory board that reads like a who’s who of the industry. the chairman is randy crisorio, president and CEO of United Development systems inc. Joining him on the board of directors was Tim Brugh, executive vice president, American Auto Guardian inc.; Bob corbin, president and ceo, Innovative Aftermarket Systems (IAS); Michael Klass, principal, associated Dealer Services; Jim Maxim Jr., president and ceo, Maximtrak technologies; Bruce osborne, national sales manager, Allstate Dealer Services; Rick Roesel, president, Agency Services Consolidated inc.; glen tuscan, president, Dealer Commitment Services Inc.; and Matt Twyman, CEO, Ristken Software Services.

Monday, March 4The pre-show events will kick off on Monday with a day-long participation & reinsurance symposium. sponsored by The Warranty Group, the event will feature a welcome address from Jim ganther, president, Mosaic compliance Services, and will include four full sessions packed with information to help agents better understand, sell and work with reinsurance programs. For

more information on this one-of-a-kind event, see our preview on page 4.

The official Agent Summit program will kick off at 5:10pm on Monday night, with the first evening keynote address from Joel Kansanback, president, Automotive Development Group. He’ll look at what agents should be doing to build a better business and position themselves better for future growth. Kansanback’s address will be followed by an evening welcome reception, which all attendees are invited to attend.

Tuesday, March 5tuesday will be packed with a wide range of sessions, as well as some time built in around the lunch hour for agents who want to attend all the sessions to have time to walk the show floor as well. The day will kick off with a welcome address from Luis Garcia, vice president of sales and business development, Safe-Guard products international; followed by an opening keynote address from scott Karchunas, president, Protective Asset protection. the keynote will look at the economics behind the automotive industry as a whole, then will drill down to look at how this affects F&I sales specifically — and how agents can take advantage of it.

From 10:35–11:30 on Tuesday morning, agents will have a choice between a panel and a workshop. the panel, “training Mediums,” features moderator ron reahard, president, reahard & associates inc.; and panelists ray Jennings, director of training, GSFSGroup Training; Garrett Thorpe, vice president and director of training, the impact group; John Vecchioni, director of F&I development and national trainer; and Steve Veldkamp,

training director, great lakes companies. The group will tackle the issue of various ways to convey training messages both in-person and in online meetings. they’ll explore issues such as which types of training work best and how often sessions should be scheduled.

the workshop in this time slot will be hosted by Michelle Damiano, “misschief” and creative director, Impressions WHQ. Damiano will walk agents through setting up their online presence and branding efforts, and teach them how to provide dealers with the information they need to know, when they need to know it.

At 11:35, Rich Moore, director of training, Protective Asset Protection, will tackle the topic of dealer prospecting. he’ll discuss what agents are doing right and wrong when calling on potential new clients, and present new tactics and techniques to use to get more appointments, including real-life examples.

At 12:30, Mike Rayburn will entertain attendees during his luncheon keynote address. A well-known motivational

speaker, Rayburn uses his virtuoso guitar skills to help motivate people to move beyond their perceived limitations.

at 2:05pm, agents can attend a session on new account acquisition, hosted by peter chafetz, national sales training manager, Allstate Dealer Services. he’ll look at the entire new account acquisition process and best practices, and analyze common mistakes that even the best agent can make.

At 3:05pm, James Duggan, principal, Duggan Bertsch, will give his advice for helping agents understand and take advantage of comprehensive planning for private clients. “Taming the B.E.A.S.T.” will examine elements such as buy/sell planning, estate planning, asset protection, succession planning and tax planning.

The final session of the day, at 4:35, will explore how technology in F&I has evolved over the years, and what agents need to do to adapt and stay ahead of the curve. the panel discussion will be moderated by Tony Wanderon, president and CEO, Family First Dealer Services, and be staffed with

industry thought leaders, including Doug Dingman, partner, pro consulting; Matt Nowicki, vice president retail software, ias; John peterson, president, the oak group; and Brian reed, president and ceo, intersection technologies.

wednesday, March 6On Wednesday, the first session will begin at 9:05am. gerry gould, director of training, United Development Systems Inc. will look at “menus discipline” — in other words, how to use the F&I menu to it’s fullest potential to sell more products and secure each car buyer’s investment. His approach will set the foundation for a more consistent and dependable process agents can bring back to their F&I managers.

at 10:05am, there will again be two sessions for agents to choose from. The first will be hosted by speaker Gil Van Over, principal, gvo3 & Assoc. he’ll look at compliance, and why agents should absolutely not act as the “compliance cop” for their dealers. he’ll look at strategies and answers to have ready for when dealers ask, and teach agents how to use them effectively.

At the same time, Mike Legros, vice president, North American Automotive group, will moderate a panel on the best practices and challenges agents should be aware of in 2013. The panel will include arden hetland, ceo, american Financial and Automotive Services (AFAS); Jim Maxim Jr., president and ceo, Maximtrak technologies; rick Messinger, partner, Dealer associates Inc. (DAI); and Bob Volatile, owner, Northeast Dealer Services. The group will explore the best practices every agent should be adhering to if they want to elevate both their own performance and boost their agency’s bottom line.

The show will close out at 11:35 on Wednesday morning, with a keynote from David Robertson, executive director, AFIP and AiGA. He’ll end the show with tips and tricks to take all the information agents have gathered in the other sessions and on the expo floor, and turn them into actionable plans to move forward with. it’s not enough to just listen; agents need to act on what they learn, and robertson will help bridge the gap.

photo ©istocKphoto.coM / MWooKie4 Agent Entrepreneur 2013

Agent Summit 2013

By Tariq Kamal

This year’s agenT suMMiT feaTures the first-ever Participation & Reinsurance Symposium. The four-hour event begins at 1 p.m. on Monday, March 4, concluding shortly before the evening keynote address and welcome reception for the conference, which runs through midday Wednesday.

Organizers designed the event to offer agents a comprehensive review of the various types of reinsurance programs available to dealers today. It will be divided into four parts, each detailing one segment of the reinsurance industry and presented by an expert speaker.

“The variety and potential complexity of participation programs make this symposium worthwhile, and the enormous level of interest in this topic makes it timely,” said James ganther, an attorney with Mosaic compliance Services, who will serve as host.

The topic was first broached at last year’s conference. randy crisorio, president and CEO of United Development systems inc., and greg petrowski of gpW and associates, teamed up to present “reinsurance: painting the right picture for your Dealers.” crisorio and petrowski held the audience’s attention throughout their hour-long, question-and-answer-style presentation.

in the year that followed, crisorio led a 12-member advisory board tasked with building the agenda for agent summit 2013. He said the demand from agents for more information about reinsurance couldn’t be ignored; and the speakers he helped line up won’t disappoint.

“Never before has there been a more expert group assembled to detail, from the ground up, the values of our biggest marketing advantage: dealer participation and reinsurance,” crisorio said.

parT 1 retros, dealer obligor and dealer-owned warranty companiesMark Macek is president of us Warranty corp., the oldest licensed vehicle service contract provider in the state of Florida. He will kick off the symposium with a detailed overview of his company’s specialty: dealer-owned warranty companies (DOWCs). Macek’s presentation also will cover retroactive participation and dealer obligor programs.

“in retros and obligors, administrators hold the reserves, and profits are paid back to the dealer after subtracting claims and adding any investment income,” Macek explained. “With a DoWc, it is their own company, but they don’t have to hire anybody.”

Macek noted that the current climate in Washington will inevitably lead to changes to the tax code, some of which may impact


Agent Summit 2013

&ParticipationReinsuranceSymposium

2013

dealers’ back-end earnings potential. “Dealers need to make as much profit as possible, and these programs provide that.”

parT 2 controlled foreign corporationsthe symposium’s second speaker is Steve Mailho of Mailho Co., who will cover controlled foreign corporations. those programs are better known by the acronym “CFC,” which is a bone of contention for Mailho.

“that terminology is an unfortunate shorthand,” Mailho said, explaining that the acronym arose as an antonym to “NCFC,” or non-controlled foreign corporations (see Part 3, below). “The use of that term triggers alarms with accounting firms that are unfamiliar with the concept,” Mailho said.

In fact, the overseas company is a “CFC,” but only for an instant in time, before it becomes a u.s. taxpayer. the acronym has also caused confusion among dealers and, at times, the irs, but that hasn’t stopped Mailho co. from forming more than 4,500 offshore companies for auto dealers since it was founded in 1978.

parT 3 non-controlled foreign corporationsNext up is Steve Barrett, executive vice president of Resource Automotive Inc., a subsidiary of the Warranty group inc. his presentation will focus on non-controlled foreign corporations, or NCFCs.

The key difference between CFCs and NCFCs is that an NCFC is, in most cases, sponsored by a specific provider and tied to earnings from their products. NCFCs also are subject to a different tax structure: CFCs are designed to operate as u.s. taxpayers and pay taxes on investment income, while NCFCs pay an excise tax.

Barrett believes that NCFCs go furthest to promote a healthy working relationship between dealers and product providers. “Participation, specifically reinsurance in its various forms, has long been the cornerstone of those partnerships,” he said. “it’s been our experience that when all parties have a vested interest in the performance of the various F&I products offered at the dealership, that performance tends to be exponentially better.”

parT 4 investing the cashThe fourth and final speaker is Hugh Barit, chairman and ceo of prp performa ltd. Barit will discuss how assets derived from NCFCs are invested and managed. his company was founded in 1992, and has grown to manage more than $2.5 billion in assets, including more than $1 billion from auto dealer NCFCs.

in the two decades since he founded performa, Barit said, he has been forced to reconsider his investment strategies. “the current situation,

in which the fixed-income market is offering a rate of essentially zero, puts the NCFC shareholder in a difficult position,” he explained. “you don’t want volatility in your investment, but you do want to make money.”

part of the solution, Barit said, is investment in the more-volatile equity market. the greater strategy is portfolio diversification and, ultimately, managing expectations. “the other challenge is that shareholders need to lower expectations for return,” he said. “that 5% benchmark might now be closer to 4%.”

Building the Bottom lineultimately, the shared goal of organizers, ganther and all four speakers is to provide agents with a primer they can use to serve as consultants to their dealer clients. At a time when every dealer is watching their bottom line, the income offered by reinsurance programs has taken on a singular importance.

David Gesualdo, Agent Summit show chair, said he believes the Participation & Reinsurance Symposium will have a lasting effect on those who attend. “i challenge anyone to sit through this four-hour course and not leave with a better understanding of how reinsurance works, and how these programs can benefit some or all of their dealers,” he said. “if you really want to be a consultant at the highest level, this is a great place to start.”


Agent Summit 2013

Letter from the Advisory Board Chairman

By Randy Crisorio

welcoMe To agenT suMMiT 2013! as an attendee and supporter of this conference, i can tell you there is no event like it in our industry. As the chairman of this year’s advisory board, i can tell you that it wouldn’t happen if it weren’t for the hard work of a very dedicated group of people.

i want to thank each member of the advisory board for their input and creativity in building an event loaded with content designed to grow our agencies’ business. they’re all pros for their masterful contributions. all the keynotes are expected to be groundbreaking, and the panels and workshops are like never before.

Think about learning the varying values of training mediums. What works best? What’s most effective? Get the latest pulse on technology tools and the influence of mobile sales tablets, etraining, eplatforms and the like. rich Moore will tell you how to get dealers on the phone, make appointments, and let you know what you’ve been doing wrong. Then there’s “Why Reps Fail” with peter chafetz. peter spent years training JM&a reps to sell dealers; now he will share with you. Don’t miss it.

you’ll meet Jim Duggan, a chicago attorney who specializes in the planning elements of personal wealth. there’s a panel on Web site marketing and how to make your company relevant online. And wouldn’t it be great to know that your F&I managers are utilizing a consistent and expert effort to grow product penetration? gerry gould sets the foundation for menu discipline and accountability that will deliver for you in a big way.

Gil “gvo3” Van Over will be on hand to deliver a compliance workshop that will keep all parties out of the crosshairs. there’s also a blue-ribbon panel on best practices and challenges for 2013. They’ll detail the issues and fixes we have today for our business model, and take a good look ahead to prepare us for what’s coming down the road.

those are just a few examples from an agenda packed with valuable sessions. And before the conference even begins, you’re invited to the first-ever Participation & Reinsurance Symposium. Never before

has there been a more expert group assembled to detail from the ground up the values of our biggest marketing advantage: dealer participation and reinsurance. this single afternoon is clearly a don’t-miss event, and it’s included with your summit registration.

Finally, agents from across the country had the opportunity to nominate their favorite new product or service for the Provider Innovator of the Year award. the results are in, and the winner will be named in a special ceremony during the tuesday luncheon.

in brief, that’s what you can expect from the agent summit in las vegas this year. power packed headliners will draw agents from all over the country. This is the only dedicated agent conference we have to learn and share with each other, and i look forward to seeing each of you in person!

all the keynotes are expected to be groundbreaking, and the panels and workshops are like never before.


Agent Summit 2013

Lead Sponsors

Premier Sponsors

General Sponsors

Media Sponsors and Association Partners


Agent Summit 2013 AgendaMonday, March 4th, 201312:00 p.m. – 7:30 p.m.Agent Summit Registration Open

sponsoreD By

Participation & Reinsurance SymposiumsponsoreD By

1:00 p.m. – 1:05 p.m.Welcome AddressEmcee: Jim ganther esq., president, Mosaic Compliance Services

1:05 p.m. – 1:55 p.m.Workshop: Retros, Dealer Obligor and Dealer-Owned Warranty Companies

Speaker: Mark Macek, president, us Warranty corp.

Macek will offer a primer on retros and dealer obligors before focusing on dealer-owned warranty companies. He believes DoWcs are a great option for dealers looking to maximize back end profits in the current economy. he will offer agents a detailed survey of what programs are available, which work best for different types of dealers, and how changes to the tax code will affect their operations.

2:00 p.m. – 2:50 p.m.Workshop: Controlled Foreign Corporations (CFCs)

Speaker: Steve Mailho, president, Mailho company

Mailho has organized more than 4,500 off-shore companies for automotive dealers since 1978. his presentation will focus on the genesis and evolution of controlled foreign corporations, including an explanation of when a company loses its overseas-company tax status and how the CFC acronym has misled the irs into mistaken judgments.

2:50 p.m. – 3:10 p.m.Refreshment Break

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3:15 p.m. – 4:05 p.m.Workshop: Non-Controlled Foreign Corporations (NCFCs)

Speaker: Steve Barrett, Executive Vice President, Resource Automotive Inc.

Barrett is a licensed cpa and securities principal and an expert on the formation of non-controlled foreign corporations. his presentation is designed to lower the level of abstraction about how reinsurance works to benefit dealers and product providers and how participation in NCFCs can drive product sales in the F&I office.

4:10 p.m. – 5:00 p.m.Workshop: Investing The CashSpeaker: hugh Barit, chairman & ceo, prp performa ltd.

Barit’s presentation will pick up where the prior session leaves off by discussing how assets derived from NCFCs are managed. he will focus on maximizing returns in a fixed-income market delivering a near-zero interest rate by diversifying portfolios to provide the best opportunity for positive, long-term, risk-adjusted returns.

Agent Summit5:10 p.m. – 6:00 p.m.Evening Keynote: Building Your Agency For The Future

Speaker: Joel Kansanback, president, Automotive Development Group

Kansanback’s 20 years of experience in the automotive industry includes work as a trainer, consultant, lending executive and agency partner. his remarks will draw on each phase of his career to explain how a focus on business development can lead an agent to success in an evolving and fast-changing landscape.

6:00 p.m. – 7:30 p.m.Reception in Expo Area

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Tuesday, March 5th, 20138:00 a.m. – 7:00 p.m.Agent Summit Registration Open

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8:00 a.m. – 9:00 a.m.Breakfast in Expo Area

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9:05 a.m. – 9:10 a.m.Welcome AddressEmcee: luis garcia, vp sales & Business Development, Safe-guard products international

Registration Giveaway

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9:10 a.m. – 10:00 a.m.Opening Keynote: F&I Economics – An Optimistic Outlook of an Industry Where New Challenges and Emerging Opportunities AboundSpeaker: scott Karchunas, president, Protective Asset ProtectionA look at the underlying economics driving our nascent automobile recovery along with the challenges and opportunities presented by emerging trends. the

automobile industry has been one of the most consistent bright spots in a slow and grinding U.S. economic recovery. At the same time new challenges have started to emerge along with real opportunities to enhance the strength and influence of the F&I industry.

10:00 a.m. – 10:30 a.m.Refreshment Break in Expo Area

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10:35 a.m. – 11:30 a.m.Panel: Training MediumsModerator: ronald J. reahard, president, reahard & associates

Panelists: ray Jennings, Director of Training, GSFSGroup; Garrett Thorpe, vice president and Director of training, the impact group; John vecchioni, Director of F&I Development and National Trainer; and Steve Veldkamp, Training Director, great lakes companies

everyBoDy talKs … everyBoDy talKs … But more importantly, how is the material best conveyed and received? Live and In Person, via Webinar or online? What frequency is most effective? Learn what works and what doesn’t from this seasoned panel of industry veterans. If you’re looking to grow your business, this session will put a spotlight on the path to success.

Workshop: Web Marketing, C.I.A. StyleSpeaker: Michelle Damiano, Misschief and Creative Director, Impressions WHQ

Become a commanding internet agent and smoke your competition! trade secrets aren’t just for intelligence agencies. getting inside the mind of your target Dealers and providing them with what they need to know, when they want to know it, can help you become the agent of choice for dealers nationwide. Join the ranks of elite agencies by taking control of one of the most important elements of your brand. Don’t miss this powerful workshop where we will teach you how to maximize your website and leverage your Internet presence to position your agency ahead of the competition. Refining your website presence and integrating it seamlessly into your overall marketing strategy is critical to your success. your mission, should you choose to accept it, is to increase your competitive edge in a complex and ever-changing digital marketplace.

11:35 a.m. – 12:30 p.m.Workshop: Prospecting a New Dealer – I Guarantee You’re Doing It Wrong!

Speaker: rich Moore, Director of training, Protective Asset Protection

think of those dealers you just can’t get


Agent Summit 2013

an appointment with; ever wonder why? It’s because you’re just like everyone else, static and noise if you will. Join rich Moore as he brings you new tactics and techniques to get those appointments. these are tools that actually work, not the old, tired ideas that have been running around the sales world forever. During rich’s presentation you’ll get to see examples of these tools actually working with dealers, just like the ones you’re trying to reach for appointments.

12:30 p.m. – 2:00 p.m.Luncheon: Mike Rayburn, Keynote Artist

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2:05 p.m. – 3:00 p.m.Workshop: New Account Acquisition – Why Reps Fail

Speaker: peter chafetz, national sales training Manager, Allstate Dealer Services

this bare-knuckle workshop takes a look at the new account acquisition process and the sale killing mistakes even the best sales people make. Based on nearly 30 years of experience working with some of the best salespeople in the industry and the newest research in the field, you’ll understand the most important question you will never be asked, and how to address it.

3:05 p.m. – 4:00 p.m.Workshop: Advice for Taming The “B.E.A.S.T.”

Speaker: James M. Duggan esq., principal, Duggan Bertsch

this presentation will help better the agent’s understanding of the core elements of comprehensive planning for the private client. in particular, the presentation will focus on the integration of the following elements of a comprehensive plan:• Buy-Sell Planning – an understanding of alternate buy-sell structures, key trigger provisions and structuring the agreement;• Estate Planning – a review of core estate planning documents including wills, trusts, powers of attorney for health care and property and living wills;• Asset Protection – minimizing personal and business exposure to creditors through the use of exempt asset planning, limited liability entities and asset protection trusts;• Succession Planning – ensuring an accurate and efficient transition of management, businesses and assets upon death, disability and retirement; and,• Tax Planning – minimizing income and estate taxes during life and at death.Although comprehensive in its nature, the presentation is intended to provide a practical survey of those planning elements relevant for the agent.

4:00 p.m. – 4:30 p.m.Refreshment Break in Expo Area

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4:35 p.m. – 5:30 p.m.Panel: Technology Tools

Moderator: tony Wanderon, president and ceo, Family First Dealer Services

Panelists: Doug Dingman, partner, pro consulting; Matt nowicki, VP Retail Software, Innovative Aftermarket Systems (IAS); John peterson, president, the oak group; and Brian reed, ceo and president, intersection technologies

Without a doubt, technology within the F&I sector has evolved. Agents need to both adapt and adopt new strategies within their business model to stay at the forefront of the industry. this expert panel will address the varied solutions available for E F&I Business generation, electronic online training, the latest Mobile sales tools, and more. identifying challenges and opportunities will electrify this session.

5:30 p.m. – 7:00 p.m.Reception in Expo Area

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wednesday, March 6th, 20138:00 a.m. – 12:30 p.m.Agent Summit Registration Open

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8:00 a.m. – 9:00 a.m.Breakfast in Expo Area

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9:05 a.m. – 10:00 a.m.Workshop: Menu DisciplineSpeaker: gerry gould, Director of training, united Development Systems (UDS)

Though the use of an F&I Menu is recognized as the most efficient means to escalate F&I profit, why is it that many fall short and resist following a consistent and steady process? there is little validity to the excuses an F&I Manager has for not using an F&I Menu to the degree it was designed. the Menu Discipline Workshop will present the secrets to unlocking an F&I Menu’s full potential by revealing a simple yet streamlined approach. this sets the foundation for a more consistent process and dependable means to hold F&I Managers accountable for relying on the process to generate over the top results.

10:05 a.m. – 11:00 a.m.Workshop: Will You Be My Compliance Cop?

Speaker: Gil Van Over, Principal, gvo3 & Associates

the answer is not only “no”, but “hell no!” When a dealer asks you this dreaded question, you need a prepared response. there are reasons you can’t be a client’s Compliance Cop. First, you have been retained to generate production and profits, not be the watchdog. Second, you have to generate production and profits from Managers with whom you have a relationship with. Being the watchdog can affect that relationship. third, you don’t want the liability. in this session, nationally recognized compliance consultant and dealership expert witness Gil Van Over will arm you with enough information to intelligently answer the basic compliance questions and steer your dealer toward retaining a competent outside party to be the compliance Cop. Topics he will cover include the Paper Trail, Red Flags, Safeguards, desking process and menu execution.

Panel: Best Practices & Challenges 2013

Moderator: Mike legros, vice president, North American Automotive Group

Panelists: arden hetland, ceo, American Financial and Automotive Services (AFAS); Jim Maxim Jr., President and ceo, Maximtrak technologies; rick Messinger, partner, Dealer Associates Inc. (DAI); and Bob Volatile, Owner, Northeast Dealer Services

this Blue-ribbon panel will address many of the Best Practices that serve to elevate Agents’ and Agencies’ proficiency and bottom line while looking ahead through 2013 and beyond in preparation for the challenges that could impact our growth. hear it all right here at the agent Summit from these seasoned veterans.

11:00 a.m. – 11:30 a.m.Refreshment Break in Expo Area

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11:35 a.m. – 12:30 p.m.Closing Keynote: Transforming the Conference Into an Action Plan

Speaker: David Robertson, Executive Director, AFIP and AiGA

Robertson will deliver closing remarks designed to help participants transform the knowledge gained at the conference into income, with a focus on the principle issues that shape the dealer/agent/provider relationship, including new products, technology and the evolving regulatory climate.


Agent Summit 2013

Masters of Ceremonies

James S. Ganther, Esq.presidentMosaic Compliance Services

emceeParticipation & Reinsurance Symposium

Luis Garciavice president, sales & Business DevelopmentSafe-Guard Products International LLC

emceeAgent Summit 2013

Keynotes

Joel KansanbackpresidentAutomotive Development Group

M. Scott KarchunaspresidentProtective Asset Protection

Mike RayburnComedian and guitar virtuosoKeynote Artist

David N. RobertsonExecutive DirectorAssociation of Finance & Insurance Professionals

Speakers

Hugh Baritchairman and ceoPRP Performa Ltd.

Steve BarrettExecutive Vice President reinsuranceResource Automotive Inc., a subsidiary of The Warranty Group Inc.

Peter Chafetznational sales training ManagerAllstate Dealer Services

Michelle DamianoMisschief and Creative DirectorImpressions whq

Doug DingmanpartnerPRO Consulting

James M. Duggan, M.B.A., J.D.principalDuggan Bertsch LLC

Gerry GouldDirector of trainingUnited Development Systems Inc.

Arden HetlandceoAmerican Financial & Automotive Services Inc.

Ray JenningsDirector of trainingGSFSGroup Training

Mike Legrosvice presidentNorth American Automotive Group Inc. (NAAG)

Mark MacekpresidentUnited States Warranty Corp.

Steve MailhoFounderMailho Company

Jim Maxim Jr.president and ceoMaximTrak Technologies

Rick MessingerpartnerDealer Associates Inc. (DAI)

Rich MooreDirector of trainingProtective Asset Protection

Matt Nowickivice president retail softwareInnovative Aftermarket Systems (IAS)

Speakers


Agent Summit 2013

John PetersonpresidentThe Oak Group

Ronald J. ReahardpresidentReahard & Associates Inc.

Brian ReedFounder, CEO and PresidentIntersection Technologies

Garrett Thorpevice president and Director of trainingThe Impact Group

Gil Van Overprincipalgvo3 & Associates

John VecchioniDirector of F&I Development and national trainerUnited Car Care

Steve Veldkamptraining DirectorGreat Lakes Companies

Robert L. Volatilepresident and ceoNortheast Dealer Services

Tony Wanderonpresident and ceoFamily First Dealer Services LLC.

Advisory BoardChairman

Randy Crisoriopresident and ceoUnited Development Systems Inc.

Board Members

Tim BrughExecutive Vice PresidentAmerican Auto Guardian Inc. (AAGI)

Bob Corbinpresident & ceoInnovative Aftermarket Systems (IAS)

Michael KlassprincipalAssociated Dealer Services

Jim Maxim Jr.president and ceoMaximTrak Technologies

Bruce Osbornenational sales ManagerAllstate Dealer Services

Rick RoeselpresidentAgency Services Consolidated Inc.

Glen TuscanpresidentDealer Commitment Services Inc.

Matt TwymanceoRistken Software Services


Agent Summit 2013

An Agent’s Guide to Using Video Reviewphoto ©istockphoto.com / ost

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By Steve Veldkamp

So aS an agent, you are thinking of putting cameras into your stores. this may be because you have been to a recent conference and heard other agents extolling the virtues of such a program. or your dealer just came back from a 20 group where someone said, “if you want to add $200 to you pVR, just put a camera in the F&I office!” Or maybe it’s just a decision to increase the level of service provided to your dealer clients.

i began using video in 2006. in those years, i’ve come to believe that the camera is the most powerful training tool available to agents. however like any tool, if not used properly it will not perform or worse, may even cause more harm than good.

here are six key steps to successfully using the camera.

every transaction must be recorded. Period.this sounds elementary, but surprisingly this may be the most difficult step. You will hear every reason imaginable for not recording. “It stopped working,” “It was a cash deal,” “They’re a previous customer who never buys anything,” “It’s a subprime deal …”

if you do not get the commitment or have the resolve to record every transaction, my recommendation is, do not put the cameras in at all. Why? Your time will be spent determining if the transaction should have been recorded and listening to all the reasons why a particular transaction was not captured. more importantly, your client may be put into possible class-action discrimination troubles. Anytime a dealership has one process for one set of customers, and different processes for a second set, the dealership may have lawyers examining the reasons why.

so how does an agent ensure that every transaction is recorded? By getting the dealer’s support. plain and simple, if the dealer does not require that every transaction be captured; video review

should not be an option. the dealer can support the process by providing an incentive for 100 percent of all transactions recorded. the dealer can also support the process by not paying commission on deals where the camera was not used. Either way, dealer support is needed to make sure every transaction is captured.

Watch the videos.this was my biggest failure early on. i struggled getting the production out of one of our dealer groups. i recommended to the dealer that we put cameras in, at his expense. i told him that the results nationally were $200 per car, and that it would be a great investment! We put the cameras in and, after the first month, production really did not change. the only thing that did change was the dealer spent a bunch of money on hardware and software fees, upsetting many of his people in the process. soon after, i lost the account.

one big reason the numbers usually go up after installing the camera is that the producers realize they now must follow the 300 percent rule (100 percent of the products to 100 percent of the people 100 percent of the time). When they realize someone is watching, they are more likely to present every product every time.

Watch at least four transactions per Financial services manager per month. if this is too much for you to do personally, hire a professional reviewing service from your provider, or hire someone at your agency to review the videos. make sure the individual has rudimentary knowledge of the Financial services process, this will make sure there is no disconnect on behalf of the reviewer.

grade them.Develop a grading system to use when reviewing each transaction. Be sure to include everything that you want to see accomplished during the transaction. i look for 12 accomplishments, broken into two categories, sales and compliance.

the grading system should follow after the training system. For example, we train the producer to establish the need for each product and then show how the product solves the need. Notice how the grading system follows what we think makes for the best presentations. After scoring the video, we compile all the scores, keeping them in a database for tracking.

give feedback.After completing the review sheet, give it back to the producer along with any words of praise and/or recommendations to improve. We have found it to be most effective to have the producer and dealer to sign-off on the feedback sheet.

Another very effective way to give feedback is to watch a producer’s transaction together. this way the producer themselves can see the areas they are the strongest in and should continue to do, and the areas they need improvement.

hold review meetings.this is most effective with clients that have more than one producer. At least one time per month, bring all the producers of the organization together to review transactions from the previous month. These should always be “highlights!” You want to praise the producers in public, train and correct in private.

in these meetings share with the other producers what is working, right within their own organization. these meeting should be no more than an hour, reviewing specific pertinent time frames of five to six transactions.

use the videos.Use the videos. Use them in training. Use them to share new closes. Use them to share compliance initiatives.

Videos can be a powerful tool in increasing pRU and making you a more viable asset in the dealerships you serve.

Steve Veldkamp is the Training Director for the Great Lakes Companies, a diversified, Michigan-based provider of dealership services.

An Agent’s Guide to Using Video Review2013 Agent Entrepreneur 13

Agent Summit 2013


Agent Summit 2013

photo ©istockphoto.com / mAcRoWoRlD

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By Rick McCormick

tire and Wheel road-hazard protection has become one of the fastest-growing products provided in the F&I office. While there are a few isolated areas of the country that have endured high increases in the cost of this product, for most it is a great profit opportunity for the dealer, and a great value for the customer. that’s a recipe for success.

there are three trends fueling this growth.

the evolution of the type of tires and wheels on today’s vehicles.customers are demanding wheels that enhance the look of the vehicle.

the manufacturers have responded with alloy wheels that are bigger and more costly to replace if damaged. the larger wheels are complemented by low-profile tires. Both factors have produced a tire and wheel that are more susceptible to damage. tires are the contact point of the vehicle with the road and are purposely excluded from almost all manufacturers’ warranty coverage. this provides for a level of risk to the customer and genuine need for protection.

the bundle.many providers are bundling products that are attractive to customers, which is driving acceptance levels. An example would be tire and wheel together

with paintless dent repair, windshield protection, key replacement and roadside assistance on import vehicles that do not provide this, along with the other factory coverages. We live in a “bundle” retail environment and there is a perceived value with customers when they are presented products in this manner, as opposed to a long list of individual products. it’s how they buy fast food, cell phone service, internet and cable/satellite television service — and it is a preferred way to buy protection on their vehicle.

training, training and more training.technology has provided fast menu options that are integrated with Dms systems. many come with pre-loaded videos to illustrate the value of the

Is Strong and Getting Stronger

Tire Wheeland


coverage. however, these offerings have not driven acceptance levels. today’s F&i manager must be prepared to provide the cost to replace a tire and/or wheel on the vehicle the customer is buying to show the level of exposure. F&i managers lose credibility if they tell a customer the cost of replacing a tire and wheel on the vehicle they are buying is “around $600.” However, if they are told “the cost would be $183 for the tire and $378 for the wheel for a total of $561,” that tells the customer you know what you are talking about and makes the likelihood of selling the product go up dramatically.

An interactive process that discovers why that particular customer needs

the coverage — and the ability to match that to the benefit provided — will always lead to more sales. Does the vehicle being purchased have a full-size spare? Does the vehicle have run-flat tires, and how does that affect the cost of replacement? What is the series of the tire? All these are questions the F&i manager must know the answer to for the vehicles they offer. this requires consistent training and follow-up to assure that a fact-filled, needs-based process is being used to sell the product. technology, menus and videos do not sell F&i products — well-trained F&i professionals do.

All products have life cycles, and tire and wheel road-hazard protection is

still young by comparison. it provides needed coverage at a value-based price to the customer and is providing good profit levels for dealers. Bottom line, it is a great product that is a strong performer and is still growing stronger everyday. the key is to train the F&i manager to utilize a needs-based sales process and have a level of product knowledge that will drive sales. Now let’s get busy helping customers make good buying decisions!

Rick McCormick is the national account development manager for Reahard & Associates Inc, which provides customized F&I training for dealerships throughout the U.S. and Canada. He has more than 20 years of sales and F&I experience.

photo ©istockphoto.com / thE BloWFish iNc.

Is


Agent Summit 2013

LeasingBack

By Gerry Gould

leaSing iS back With a vengeance. Attractive lease rates and high trade-in values are energizing its surge in popularity. As more and more of our clients’ customers see leasing as an attractive alternative for acquiring a new vehicle, our efforts in securing more products and profit on these transactions must intensify. if you want to stay ahead of the pack, it is critical that you find and relay creative methods to capitalize on the additional profit opportunities leasing presents for our clients’ F&i departments.

that being said, although leasing has become more popular with consumers, many F&i managers continue to overlook a lease’s potential — and, like cash deals, often put little or no effort in securing additional profit on them. We can attribute the lack of interest and enthusiasm F&i managers and sales managers have for leases to a lack of knowledge and understanding of how a lease really works. While there are many among us who do not know how a lease works, those who do embrace leasing with the same attitude and determination as finance deals and get great results.

though certain parts of this article, such as how to calculate a lease payment, may seem elementary to some, the information is vital in developing the confidence and credibility necessary to go into a lease transaction and come out a winner. information that will enhance their knowledge of leasing and provide

them additional skills necessary to gain more commitments from their customers to purchase protection products and services on lease transactions. learning how to perform basic lease calculations is the first step in understanding leasing and how it works.

basic lease calculationthere are a few factors that need to be determined before you can calculate a lease payment. The first is the MSRP, which needs to include any dealer installed items (hard adds) that can be residualized; other items that cannot be residualized (soft adds) need to be rolled into the gross cap cost. the gross cap cost, otherwise known as the sale price, needs to be determined and must include any soft adds, upfront fees such as the acquisition fee, title and registration fees, dealer fee first payment or any other fees that will not be collected at the lease’s inception.

You must determine the cap reduction — better known as total money down — which can be in the form of a rebate, customer cash or trade equity (negative equity may be added to the net cap cost up to the lease companies maximum advance) that will be deducted from the gross cap cost to determine the net cap cost. the money factor needs to be determined; if the lease company provides you with an interest rate rather than a money factor, divide the interest rate by 2,400. For example, if the interest rate is 6%, 6 / 2,400 = 0.0025 money factor. All that’s left to select is the lease term, miles

per year and residual percentage.

once you have all the factors that will make up the structure of the lease, calculating the payment becomes a matter of basic arithmetic. Now, let’s put it all together and see exactly how a monthly lease payment is calculated.

Step 1: Determine the residual or future value portion of the lease that will be left at the end (msRp x residual % = residual value).

Step 2: Determine the depreciation — that’s the portion of the lease which will be used (net cap cost – residual value = depreciation).

Step 3: Determine the monthly depreciation (depreciation / lease term = monthly depreciation).

Step 4: Determine the monthly rental charge (net cap cost + residual value x money factor).

Step 5: Determine the monthly sales tax (monthly depreciation + monthly rental charge = base payment x sales tax % = total monthly lease payment).

Now who needs a DMS to figure out a lease payment? i often say “knowledge is power,” and knowing how to calculate a lease using a simple calculator goes a long in projecting confidence and credibility all the while providing a solid foundation when explaining the concept of leasing to a customer. here’s an example of how it all breaks down:


Agent Summit 2013

MSRP $35,000

Gross cap cost $33,000

cap Reduction -$2,000

Fees +$1,260

Net cap cost =$32,260

Residual @ 52% $18,200

lease term 39 months

money Factor .00085

Miles Per Year 12,000

sales tax 6%

Step 1: Residual

$35,000 msRp

x .52 Residual %

= $18,600 Residual

Step 2: Depreciation

$32,260 Net cap cost

-$18,200 Residual

= $14,060 Depreciation

Continued on page 18

Step 4: Monthly Rent Charge

$32,260 Net cap cost

+$18,200 Residual

= $50,460 total

x .00085 money Factor

= $42.89 monthly Rent charge

Step 5: Sales Tax

$360.51 monthly Depreciation

+ $42.89 monthly Rent charge

= $403.40 Base payment

x .06 sales tax %

= $24.20 monthly sales tax

+ $403.40 Base payment

= $427.60 total lease payment


Agent Summit 2013Continued from page 17

Start on the right footit is important to start the transition to F&i on the right foot, and perhaps more so during lease transactions, as they can be more of a challenge. making a great first impression sets the tone for a better relationship with the customer. meeting and greeting customers out in the showroom, in their comfort zone, rather than having them pulled along the dreaded walk to F&i is most important to setting a positive tone.

it is equally important that the F&i manager establish credibility right from the start. At the point of sale, customers are done with small talk and want to get right down to business. so teach your F&i managers to save the small talk for the sales consultants. F&i managers need to display confidence and credibility, and take on an advisory role. the more you know about your customer the better off you’ll be.

Albert Einstein once said “know where to find the information and how to use it — That’s the secret of success.” So true; you will find indispensable information about your customer only if you ask, and that knowledge is the secret to F&i success. the information gathered by the F&i manager permits them to present products and gain commitments to purchase based on their customer’s criteria rather than theirs. presenting based on a customer’s criteria is the game changer, as it makes better sense to the customer and is seen as much more valuable to them.

of the most successful F&i managers, nearly all have one thing in common: they all adhere to a consistent method when making a presentation of F&i products and asking for the sale. their willingness to remain consistent, along with their understanding that their process drives their performance, has permitted them to develop to the point that they are able to display confidence and credibility during every presentation. these attributes are essential in the F&i arena, and you can depend on them for consistently good results.

starting on the right foot takes discipline and a willingness to let the process drive profits. It all starts with three key components; F&i managers need to “set the tone” they need to “establish credibility” from the start, and they must “gather information” they can use to form a presentation and gain commitment to enroll in F&i products and services based on their customers’ criteria.

take it to the next leveltell, don’t sell. telling the features during your presentation, and selling the benefits when asking for the sale is the best advice anyone can offer. telling allows the F&i manager to expose all the products in the shortest amount of time, all the while making it seem as though

they are telling about one product with a whole lot of features. selling during the presentation oftentimes will wear out the customer, causing the F&i manager to overlook a product that may have made better sense to their customer. selling more products on leases is quite simple when the presentation makes sense. After making a telling presentation and the customer says “No”, try this:

“You really have only three responsibilities outside of making the payments on your leased vehicle: 1) maintain the vehicle, 2) provide insurance on it and 3) return it in satisfactory condition. that’s why i am surprised you didn’t select option three, which is the most popular option with our lease customers because it provides them with the most logical coverage. Excess wear and tear provides a remedy for unforeseen lease-end charges, the pre-paid maintenance program is set up to fulfill your requirement to maintain the vehicle and the tire-and-wheel program provides protection for the most vulnerable part of the vehicle. Now that I have restated the benefits of the programs, doesn’t it make sense to enroll?”

though words speak volumes, utilizing all the tools F&i managers have at their disposal will significantly improve product sales as well. tools such as evidence manuals, props, the lease-end “wear square” lease companies provide to the customer and the lease contract itself is a great selling tool. By showing customers the excess wear and tear portion of the terms on the contract and providing them with a remedy could be the difference in a sale or no sale of an environmental contract, paintless dent repair or excess wear-and-tear coverage. hand them a set of keys with a price tag on them and remind them they will need both sets of keys at lease termination.

Do your clients’ F&i managers utilize an evidence manual that beholds information on the benefits of the products and services being offered, as well as proof of claims paid? that just might be the difference between a sale and a no sale. When all else fails, perhaps the F&i manager can rely on the “apartment” close:

Business Manager: “Do you mind if I share something with you?”

Customer: “No, not at all.”

Business Manager: “Leasing a vehicle is a lot like renting an apartment. May I explain?”

Customer: “Sure, go ahead.”

Business Manager: “There may be another way to look at it. Do you mind if I share something with you? Let’s say you’re renting an apartment and the air conditioner stops working. Are you going to pay for the repairs yourself? Or will you be relying on the landlord to pay for the repairs?”

Customer: “Why, the landlord, of course.”

Business Manager: “What if the roof begins to leak?”

Customer: “I’ll call the landlord.”

Business Manager: What happens when you leave the apartment? Are you going to patch and repaint the walls where you hung your paintings? Are you going to clean or replace the carpet that may have become stained while you were living in the apartment?”

Customer: “No, i would expect the landlord to take care that.”

Business Manager: “I couldn’t agree with you more. I would feel the same way. Leasing is a lot like renting an apartment. If something should go wrong mechanically with the vehicle, you can rely on the manufacturer’s warranty to make the repairs just like you would expect the landlord to make the repairs to the air conditioner and roof. When you turn the vehicle in to the lease company, like the landlord, you should expect some wear and tear. However, if the landlord determines excess wear and tear, they’re able to retain all or a portion of your deposit, right?”

Customer: “Yeah, I guess so.”

Business Manager: “Your vehicle lease works much the same way, but there is no security deposit for the leasing company to recover from. So if the lease company determines excess wear and tear they will send you a bill for the repairs, regardless if they make the repairs or not. Can you see how spending just a few dollars more per month now could protect you from the potential of spending hundreds or even thousands of dollars in unexpected lease end expenses down the road?”

Customer: “Yes. That makes sense!”

sure that makes sense, and a sensible, no-nonsense presentation will make a world of difference. leasing is a great choice for customers that are interested in attaining the lowest cost of driving. A lease allows customers to get a new vehicle every few years, it minimizes residual risk of purchasing and allows the driver to drive a vehicle that is (in most cases) under factory warranty throughout the term of the lease. However, specific responsibilities remain that go along with a lease. it is through our willingness to uphold a process regardless of a lease, finance or cash deal that we will yield the greatest result.

Gerry Gould is the director of training for United Development Systems in Clearwater, Fla.

2013 Agent Entrepreneur 19photo ©istockphoto.com / AlExANDRENUNEs

Agent Summit 2013

By Joe Verde

our WordS in SaleS may only make uP 7 percent of effective communication, but they are almost always deal breakers or deal makers. ‘Words’ doesn’t just mean learning the correct question to ask or knowing all the facts about your product, it means carefully choosing every word you say and when you say it. i’ll say it again, because this is so important:

“You don’t miss sales by a few dollars, you miss sales by a few words.”

it’s amazing how salespeople will choose their words carefully if they’re around their grandparents, or a potential new girlfriend, or at church — but not in sales. cussing around my grandmother would have gotten me smacked for sure. Not being on your best behavior might get you a stern look from Grandpa, it can cost you a girlfriend, and you know the unwritten rules about what to say in church.

But when it comes to their career, and the job they depend on to make a living for themselves and their families, a lot of sales people blow sales out of the water every day. they don’t want to do simple stuff like dress like a professional and they don’t want to change what they say either. the stand-by excuses are, “i’m more comfortable dressing like I do,” or “My customers don’t want to talk to someone in a suit.” And when it comes to learning a better way to greet the customer or close the sale they’ll say, “i’m not going to learn some canned script,” or “I don’t want too.”

What’s that definition of insanity? “Doing the same thing over and over again, hoping for a different result.” It’s true, and if you won’t change how you look, how you act, how you sound and won’t develop new skills or change what you do or say in sales, you won’t change your income either.

let’s look at some words and things you say now, that you need to change right away because they’re costing you sales every day. these aren’t skills, they’re just words that create the wrong impressions, reactions or the wrong focus in the sale.

First, we all know our customers are nervous and uncomfortable when they’re out buying a new car. they don’t do this very often and they know if they’re not careful when they’re shopping, they’ll end up paying too much or buying the wrong vehicle for them (like a lot of them did

last time). our customers also have a few built-in objections when they hit the lot. the key word in that last sentence, though, was a few objections. they start out with five potential objections and salespeople either add a few more or make the ones customers already have even worse.

price is a standard potential objection. it’s always a question or concern, but price is number 16 on their list of buying motives. most salespeople only hear price though, and that’s all they talk about (their words focus on price). trade-ins are another potential objection. Watch your words and do not knock their trade or toss out stupid numbers on its value to get their reaction. You’ll get a reaction, but you won’t like it. those words may cost you a deal.

payments are standard objections, but this is really a budget issue if you say the right words and handle it right. learning to bypass price and build value is the key. Down payments are an objection for most. say the right words (scripts), you’re ok. Wrong words, you’re toast.

those are the built-in objections, the rest we tack on along the way by not listening and by saying the wrong things. selling is like running a race with hurdles. There are five on the track and 50 more on the sidelines that somebody throws out any time we don’t handle the sale professionally. here are some things to keep any eye out for.

Profanity. there’s no place for it at work. tV language for mature audiences is not okay with customers. pretend you’re in church or wake up and show respect for the person in front of you who may let you earn $500 in a couple of hours. trade slang costs you money, too. You understand the words, but people outside the car business don’t.

Rejection words have negative connotations and create objections. to avoid adding

more objections, replace the words on the left with the ones on the right…

Buy-Sell Own Price Current Market Value Price (Used) Live Market Value Sign OK – Approve Monthly Payment Monthly Investment Down Payment Initial Investment Contract Agreement

Pre-qualifying people. the negative people in the huddle are wrong. You never want to pre-qualify, whether you’re talking to a buyer or not. 78 percent are going to buy and you can’t tell who won’t by looking or by asking those dumb things the six-car guy taught you. You’re guessing wrong six out of eight times right now, so just stop. You’re creating objections and losing deals.

cars and trucks are the easiest products you could have picked to sell. Everybody has one, they’ll always buy more. to send them home today with one from you, just listen to find out what’s really important to them, and say the right words.

Joe Verde Sales & Management Training Inc., is an automotive sales and management training company focused on leadership, management and sales training. Joe Verde holds workshops across North America and pioneered virtual training with JCTN.

Watch Your Words! That 7 Percent Will Make or Break You

photo ©istockphoto.com / sAGADoGo20 Agent Entrepreneur 2013

Agent Summit 2013

Right Price?Are We Setting

By Lee Bowron

aS an actuarial conSulting firm, we spend a lot of time deriving the specific cost for F&I products, both from an overall perspective and down to the granular level. For example, we develop models that inform you that the cost of a wrap service contract for a hyundai Elantra with 30,000 miles and 2.5 years of service will be $45 less than a hyundai Elantra with 45,000 miles and 3.5 years of service. (Note, we just made up these numbers).

so we are very precise with our estimates of what drives service contract claims. however, we don’t seem to be very precise when setting the final price to the consumer. many administrators charge the same administration fee for all the contracts within the same product. that makes little sense when some contracts are two years in length and others may be eight years in length. it will cost the administrator significantly more money to administer a longer contract (which will generate substantially more claims).

this problem is even worse with dealer and agent markups, which are often the same dollar amount regardless of the underlying coverage. the result is that the differential in the actual retail prices of service contracts are much narrower (from a percentage standpoint) than the underlying costs.

Percentages vs. flat dollarA curious thing seems to have happened in the service contract industry: the common use of flat dollar amounts for dealer margin and administrative costs. traditional insurance (including credit insurance) relies on percentages for acquisition and perhaps a mix of flat dollar and percentages for administration costs.

Percentages have definite advantages, but these are not perfect. one problem with using percentages is that small dollar policies are not practical

because the acquisition costs are too low to entice production.

one example is renters insurance. Renters insurance (which covers an insured’s belongings but not the structure) is a great product, which protects the consumer against theft, fire, natural disaster and personal liability. it is also fairly inexpensive, with typical premiums of less than $300 per year. since the premium is so low, the typical commission arrangement of 15 percent would provide less than $45 of commission. Because of this, agencies will rarely promote or market this product and penetration rates are low. According to the insurance Research council, only 43 percent of renters have renters insurance.

too much coverageReturning to service contracts, we often see higher sales on the most expensive coverage options — such as low deductibles, more coverage and more expensive vehicles. While it may be true that buyers of these vehicles want these plans, it is also true that for most buyers the difference in the price of these plans (once again, in percentages) may not be so great.

While it is great to sell the most coverage, we might be seeing lost sales on the more discounted plans. it is often a murky world at the dealership, with trade-ins, negotiation and other factors often driving the F&i product purchase decision. But flat dollar margins and administrative costs are making the most affordable products less affordable.

one option might be to use a combination of the two (percentage and flat dollar amounts) to price service contracts. For example, suppose the average reserve for a contract is $1,156, the administrator fee is $200 and the average dealer markup is $400. Figure One shows the pricing options using flat dollar additions versus using 50 percent flat dollar and 50 percent markups.

As you can see, the overall average margin is the same, but there is more price differential with allocating margin partially on percentage markups. this reflects basic cost accounting for both the dealer and the administrator — higher priced coverages should not only reflect higher reserves for claims but also higher administrator fees and higher margins for dealers.

beyond cost accountingso far, we’ve limited our discussion to a more proper application of cost accounting, but ignored the other half of the equation: the demand for the product.

As we all know, some items are priced more for the demand than the cost of the supply. Airline tickets and hotel rooms are almost exclusively priced on the demand for the items. For a hotel, it makes little sense to allow a room to remain unsold for the night when a lower price would entice a traveler to stay there. the same is true for selling an airline ticket — the plane will fly regardless of whether the seat is sold.

For dealers, the margin is controllable and could be optimized. For example, selling a service contract with a $100 margin is preferable to not selling the contract at all — and receiving a margin of $0. For example, the willingness of a customer

Reserve Percent of Contract

Flat Administrator

Flat Markup

Customer Price

50% Method

400 5% 200 400 1,000 804600 12% 200 400 1,200 1,056800 15% 200 400 1,400 1,308

1,000 15% 200 400 1,600 1,5601,200 15% 200 400 1,800 1,8111,400 15% 200 400 2,000 2,0631,600 10% 200 400 2,200 2,3151,800 8% 200 400 2,400 2,5672,000 5% 200 400 2,600 2,819

Avg. 1,156 100% 200 400 1,756 1,756

the

figure one


Agent Summit 2013

to pay for a service contract might depend on a variety of things, including:

• The customer’s demographic profile• The vehicle that is being purchased• The time of day the sale is made• The dealership• The salesperson• The F&I manager• Any other factors• The price of the contract

the only one of these items that can easily be changed instantly is the price of the contract. Wouldn’t it make sense to offer higher prices to those customers who see the benefit of the contract (and are more likely to purchase a contract) and lower prices to entice those who are less likely to purchase?

Using the information above, one can build a model that will predict the likelihood of purchase for any price. of course, this model is dependent on the underlying data — both the amount and its predictive qualities.

once the predicted sale rate is determined, the margin can be determined to increase the likelihood of selling the service contract. Using such a model would allow the dealership to increase the penetration rate for service contracts and the overall profitability for the book (See Figure Two).

in this hypothetical case, the dealer can increase the average profit by 11 percent and offer a lower margin (but sell more contracts). typical results for optimization projects are a 5 to 10 percent increase in profitability.

to begin a project such as this, you need data. if you are not capturing data that reflects your customers, your F&I product offerings and the results of your sales process (the margin and products offered and customer’s decision to a specific offering) you should begin to collect that data now for future analysis.

the next step is to create a model that predicts the sales penetration for products. this is helpful to see what factors are driving sales, such as product, vehicle, customer

demographics or the F&i personnel.

Finally, this information can be used to develop a more robust pricing strategy for the dealership — one that incorporates the customer demand along with considerations such as negotiations, dealer objectives, long term customer relationships, refund exposure and all of the other factors which are part of the F&i process. Administrators who price their products more effectively should see some increased penetration as lower priced coverage options should be more attractive as well as less costly to administer.

Regardless of your pricing strategy, the “Dark Ages” of simply adding flat dollars to a premium reserve should come to an end.

Lee Bowron, ACAS, MAAA is a partner with Kerper and Bowron LLC which focuses on service contracts and other F&I products. Kerper and Bowron LLC is considered a leading expert on vehicle service contracts and has developed innovative techniques and models for analyzing service contracts. He is an active member of the Casualty Actuarial Society, serving as a member of a research committee and chair of statistical working group, and is a member of the American Academy of Actuaries.

Reserve Percent of Contract

Flat Administrator

Flat Markup

Customer Price

50% Method

400 5% 200 400 1,000 804600 12% 200 400 1,200 1,056800 15% 200 400 1,400 1,308

1,000 15% 200 400 1,600 1,5601,200 15% 200 400 1,800 1,8111,400 15% 200 400 2,000 2,0631,600 10% 200 400 2,200 2,3151,800 8% 200 400 2,400 2,5672,000 5% 200 400 2,600 2,819

Avg. 1,156 100% 200 400 1,756 1,756

Option Customer A Margin

Purchase Probability

Customer B Margin


Customer C Margin


1 400 70% 400 85% 400 50%2 500 60% 500 70% 500 45%3 600 50% 600 55% 600 40%4 700 40% 700 40% 700 35%5 800 30% 800 25% 800 30%6 900 20% 900 10% 900 25%7 1,000 10% 1,000 5% 1,000 20%

current 700 40% 700 40% 700 35%optimal 500 60% 500 70% 700 35%

current optimized change

margin 700 567 -19% close Rate 38% 53% 37%

Profit/sale 268 298 11%

Administrators who price their products more effectively should see some increased penetration as lower priced coverage options should be more attractive as well as less costly to administer.

figure two

photo ©istockphoto.com / pAGA DEsiGN22 Agent Entrepreneur 2013

Agent Summit 2013

By John Kerper

one of the technology driverS in the auto markets is the new cAFE standards set by the National highway and Traffic Safety Administration (NHTSA) to boost the fleet average MPG of vehicles sold in the United states. The CAFE standards were first enacted by congress in 1975 in response to the oil embargo against the Us by opEc, with the goal of decreasing the energy consumption of consumers by increasing the fuel efficiency of vehicles.

Recently, the NhtsA set new standards to drastically increase the average mpG of new models sold in the next few years, with the goal of 54.5 mpG by 2025. the increase started for the 2012 model year, and each model year after will have the cAFE standard raised. Each automaker with be penalized if the average is below the set standard by 0.01 mpG, and they will gain credits if their average is above that same standard. these credits can be applied to a different model year to offset any penalties.

calculating the cAFE standards for each automaker is complex, with the documentation on it well over 1,000 pages. the formula to determine the vehicle mpG standard for each car is based off of the size of the car’s “footprint”, which is the track width multiplied by the length between the tires. the footprint size has an inverse relationship with the calculated mpG, which means that a vehicle with a larger footprint size will have a lower calculated mpG. the cAFE standard that must be met by the manufacturer is the sales weighted average of each mpG measurement from all the vehicles in the manufacturer’s fleet. For example, General motors will have a lower cAFE requirement than Suziki, because GM’s fleet contains many pickup trucks and sUVs with large

footprints compared to the Suzuki fleet which contains smaller cars and sUVs.

Actual fuel efficiency under the CAFE standards will not be as great as the calculated numbers imply. According to micheline maynard of Forbes magazine, the cAFE standard calculates a higher MPG number than what you will find on the sticker of new models. this is because the calculation is an outdated process that hasn’t changed much since when the cAFE standards went into law back in 1975. this process involves calculating the mpG from driving on a highway and in the city. The MPG you find on the sticker of new cars uses a more rigorous testing to simulate the actual conditions that people drive the cars in, such as hot/cold weather, high speed driving and air condition usage while driving.

the new cAFE standards introduce initiatives for car companies to produce more hybrid and electric vehicles. in model year 2017, the sale of one electric vehicle counts as two. For example if you sell 5,000 electrics then for cAFE standards it is counted as selling 10,000. this factor is reduced from 2 to 1.5 by 2021. similarly, hybrid factors are 1.6 in 2017 and this will be reduced to 1.3 in 2021. however, current sales of hybrids are under 5% of the market and sales of electrics are under 1%.

vSc on hybrid and electric vehicleshybrid and electric vehicles bring new challenges in covering batteries, as batteries are becoming more of a part of these new vehicles being created. typical battery pack warranty coverage for hybrids is 8–10 years, or 80k-100k miles (whichever comes first), even though most manufacturers expect the batteries to last the life time of the vehicles. For example, the 2012 sonata has a lifetime battery warranty. A recent consumer reports

Changing Tech, Changing CoveragePreparing for New Vehicle Technologies


Agent Summit 2013

review showed minimal degradation in a 10-year-old hybrid battery. the battery pack replacement costs generally in the $2,000-$4,000 range, but those costs can be reduced when using batteries from salvaged wrecked hybrids (hybrids have been sold in the Us since 1999). therefore, since there is a low frequency of battery failure and replacement cost is not too high, then Vscs sold on hybrid vehicles can be priced like similar non-hybrid models.

Electric vehicles have only been mass-produced in the United states since 2011, and the warranties for batteries in these vehicles are 8 years and 100,000 miles. Battery packs in these vehicles generally lose the ability to hold a charge over time. many factors are attributed to this loss, such as hot climates and the cooling system built in the car (water cooling is the best, then air cooling and no cooling is the worst). When and how you charge is another important factor to the decline of a battery’s ability to hold a charge. some examples of charging habits that accelerate battery decline are Dc quick charges, full charges (over 80%), and deep discharging. so the user has a strong influence on the battery life of the vehicle.

the replacement costs are also very high for these batteries; for example the battery pack for a Ford Focus EV is $12,000-$15,000 and the Nissan leaf is $9,000-$18,000. however, some of the cells might be able to be replaced instead of replacing the full battery, thus reducing some of that cost. there is an unknown frequency of failure in these batteries, but there are early indications of battery degradation in some the recent models. There is no significant exposure for Vscs in the usual new vehicle terms due to long manufacturer warranties, and it will be a few years before these vehicles show up in quantity as used cars. therefore, it is better to wait and see what manufacturers do with pricing their Vscs.

Expect to see several other changes in engines that might affect Vsc pricing as manufacturers attempt to meet the new cAFE standards. the use of turbo charging to enhance gas mileage and power on small engines, instead of using large engines, will become more common with these cAFE standards. the widespread use of this feature reduces, and sometimes eliminates, the need to surcharge these vehicles because turbo charging cars with smaller engines often leads to lower Vsc costs than cars of similar models with larger engines. Additional enhancements to improve fuel mileage include engine shut-off at stops (expected in 50% of vehicles in 2016 according to Johnson controls (Reuters)) and electronically controlled grill shutters to enhance aerodynamics of the vehicle. these enhancements are not expected to have a significant impact on Vsc cost. however, the performance of the enhancements will need to be monitored and vehicle classifications adjusted as experience emerges.

infotainment and Sirus Xm radioin vehicle infotainment systems generally include the following features: rear-seat entertainment (movies, games, tV, etc.), navigation, radio/cD, location-based services, internal connectivity to mobile devices and external communications (as defined by Intel). By 2014, autos will be one of the three fastest growing markets for connected devices and internet content (source: Gartner inc). Fifteen percent of the cars built today have interactive infotainment systems that integrate climate control, voice commands, Gps, connectivity with mobile devices and even applications similar to those found in smart devices into one touch screen dashboard unit. in five years, that percentage is expected to increase to 50 to 60 percent of new cars sold in the United states. many

manufacturers are already producing their own versions of these infotainment systems. some examples of these are myFordtouch, mylink (chevrolet), Entune (toyota), iDrive (BmW), hondalink and Blue link (hyundai).

the majority of new vehicles now come with installed satellite radio. sirus xm will be installed in 70% of new vehicles this year; they passed the 50 million installations mark in 2012 for new vehicles, and expect to have 100 million in new vehicles by 2018.

infotainment brings new challenges to Vscs. As penetration of the new touch screen infotainment systems and sirus xm satellite radio increases, there will be a need to include coverage of these systems as a standard component of exclusionary coverage. lack of expertise in servicing these systems may lead to a high level of replacements versus repairs. Also, proprietary systems that integrate vehicle functions could be very expensive to replace. there should be differentiation for the pricing for systems that can be replaced by non-oEm systems that are less expensive.

so the take-away from all of this is that changing technology will lead to changes in the Vsc market, and we, as Vsc administrators, need to keep up with the changes to keep our products competitive and profitable.

John Kerper, FSA, MAAA is a partners with Kerper and Bowron LLC, which focuses on service contracts and other F&I products. Kerper and Bowron LLC is considered a leading expert on vehicle service contracts and has developed innovative techniques and models for analyzing service contracts. He is a member of the Society of Actuaries and the American Academy of Actuaries.


Agent Summit 2013

photo ©istockphoto.com / shENki

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By Ron Reahard

in many dealerShiPS, the f&i process is based on what worked 10 or 15 years ago. it’s not an enjoyable experience for the customer, nor do they perceive it as helpful, educational, informational or necessary.

As independent agents, you have the opportunity to help. i’d like to lay out nine things we as an industry need to do to ensure the F&i process is viewed by every customer as a valuable part of the purchase experience. Read through them and determine for yourself whether your dealer clients are meeting the standards of today’s F&I office.

Start With ‘Why?’simon sinek, a professor at columbia University, found that all the great, inspiring, and successful companies think, act and communicate who they are and what they do “from the inside out.” By that, he means you must determine your purpose, your cause, your belief and your reason for being.

that’s what i believe we all have to do with regard to the F&i department and F&I products. Profit cannot be the primary reason why dealers have an F&i department, or why they sell F&i products. Profit is merely the result of having a professional help customers make good decisions with regard to the options available in connection with their purchase. We have to continually reinforce the idea that we offer F&i products because they help customers and provide real value, not just because they make us money.

establish Parameters for the deskthe desk should help educate customers, not attempt to outsmart them. if the desk is allowed to quote payments, the dealer must establish parameters, including using an average interest rate prior to obtaining a credit bureau report; and a predetermined rate from rate grid after obtaining a credit

bureau report. the customer’s actual interest rate is not determined until a lender has approved the financing.

We have to increase, not reduce, the F&i department’s value to customers, to lenders and to the dealership. At the very least, the F&i manager must be the person who communicates lender terms, ApR and exact payment to the customer.

f&i must be involved in arranging the financingthe customer needs to see that the F&i manager is helping to arrange their financing. The F&I manager should be the customer’s advocate with the lender. he or she should personally review the credit application and credit bureau report with the customer prior to submission to a lender.

the customer has to perceive the F&i manager as helping them obtain favorable financing terms, not just someone who is trying to sell them something. if the F&i manager is not seen by the customer as an advocate, then their time in the finance office lends no value to their purchase experience; it’s just added aggravation.

f&i has to expedite the delivery Process, not extend itF&i managers should meet the customer in the salesperson’s office and then bring them back to the F&I office as soon as possible. We have to stop forcing customers to answer a series of questions on the showroom floor designed to benefit us, not them, and then make them wait while an F&i manager tries to create the perfect menu.

F&i managers have to be capable of asking needs-discovery questions while they prepare the customer’s paperwork. the F&i process must be totally transparent. the customer needs to see the F&i manager preparing their paperwork and doing everything possible to help them take delivery of their new vehicle as quickly as possible.

f&i has to be easy to do business Withit ought to be fun to buy a car. F&i managers should have fun with customers, and treat customers the way they would want their mother treated. We have to change the emphasis from selling products to helping customers. F&i managers have to stop making product

AskingToughQuestions

the


the F&i process must be totally transparent. the customer needs to see the F&i manager preparing their paperwork and doing everything possible to help them take delivery of their new vehicle as quickly as possible.

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presentations and have conversations instead. We need to help each customer based on their agenda rather than the dealership’s agenda. We also have to be capable of selling customers the way they want to buy, whether that’s online, on the phone or in their home.

Prevent menu madnessAttempting to create the perfect menu with the right products and packages before even presenting it to the customer is a waste of time. the customer needs to actually see the F&i manager at work. it’s better to customize the menu when they’re sitting across the desk than making them wait in the salesperson’s office. It’s not

the time they spend in the F&I office that drives customers crazy. it’s the time they spend waiting to get in the F&I office!

turn the internet into an ally, not an adversaryJust like customers, F&i managers have to do their research. they have to know what consumer Reports and other Web sites are saying about service contracts, GAp and environmental protection. keeping links to Web sites with favorable information on the products adds third-party credibility. Access to favorable information can help offset and negative information they may have found elsewhere.

some great sites you might want to put shortcuts to on your F&i manager’s computer desktop include Edmunds.com, myFico.com, NicB.org , EpA.gov, cciAonline.com, consumerAutomotiveResearch.com, motortrend.com, kBB.com and JDpower.com

make the invisible visibleAn F&i professional should use visual aids to help customers “see” the need for F&i products and keep them engaged

in the process. A simple hand drawing makes it easy for a customer to see the need for GAp, tire and wheel, or a service contract. so rather than telling the customer when they’re going to be out of factory warranty, we have to let them see when they’re going to be out of warranty.

the best F&i managers have learned to stop lecturing customers on the value of F&i products and start asking the questions that allow them to discover it for themselves. “let me ask you a question” is more likely to keep the customer engaged than “Let me show you something.”

implement an f&i Wellness ProgramFor F&i to remain a viable department, you have to implement an ongoing F&i training program. training has to be a process, not an event. You can’t send someone through a three-day class and then leave them twisting in the wind. track each manager’s training activity. if you want performance to improve, you can’t just track results. You have to track effort!

pay plans are another key factor. if you expect an F&i manager to embrace an ongoing training program, it has to be part of their compensation. F&i managers don’t get better because you tell them to, they get better because you put in place a process to ensure it happens.

As an independent agent, staying competitive requires staying hungry, embracing change and bringing value to your business relationships. Your agency must be perceived by your dealers as their F&i partner with the expertise and commitment necessary to help them maximize F&i income. For the F&i department to not just survive, but thrive, we need to remember the fundamental purpose of every successful business — and department — is to help customers.

Ron Reahard is president of Reahard & Associates, Inc., an F&I training company providing F&I classes, as well as in-dealership and online training.


Agent Summit 2013

Diagnosing Your Clients’ NeedsBy Tom Hopkins

When PeoPle think about making a vehicle purchase, they aren’t likely to compare talking with you to going to the doctor, but you should make that comparison when preparing to talk with clients. people trust doctors. they usually accept the diagnosis and prescription for wellness with few questions asked. that’s because they recognize doctors as experts in their fields. Your goal is to have your clients see you the same way. When they have an ache or pain related to their mode of transportation, they should immediately think of calling you. That’s because they’ll be confident you have the right prescription for their ills.

to earn this level of respect and trust, you need to start every relationship with the right skills. these skills include a caring manner, a confident air and your diagnostic tools. the tools you use in diagnosing the automotive needs of your clients may be as simple as a pad of paper and your product knowledge. they may include your past client experiences, personal experiences or memories.

the most powerful diagnostic tools used by all people in sales are questions. like a doctor, your use of questions begins with general areas of need. then, based on the answers you are given, you narrow your questions down to where you can readily determine the right cure or solution for the clients’ needs.

Average car salespeople have this fantasy in which they think they should be able to simply present the wonderful features of their vehicles and the customer, seeing the value, pulls out their checkbook or credit card and says, “I’ll take it.” If customers made buying decisions based on features alone that might work, but it’s a rare occasion when it does.

the reality of it is that most buying decisions are based on past experiences, the experiences of others the client trusts, advertising, gut feelings and hundreds of other factors that you can’t do much about. so, you have to start with questions to find out what they’re thinking. Get them talking about their needs, wants and perceptions of your product or service. the answers will help you put yourself in their shoes. once you’re there, you’ll see what steps you need to take in order to help them make a sound buying decision.

PHOTO ©ISTOCkPHOTO.COM / EYEIDEA

Diagnosing Your Clients’ Needs


Agent Summit 2013

Be sure to ask “what past experience do you have with this type of vehicle?” It could be that they’re very well-versed on the features of an sUV or luxury sedan, even used it in the past, and are seeking a new one of the same type. if they know little or nothing about the vehicle they’ve come to see, you’ll have to invest a bit more time in educating them as to the features and what they can expect.

Ask very specifically what they hope to accomplish with an investment in this particular type of vehicle. it could be that one of your vehicle’s key benefits is sought after by most clients; however, that feature does nothing for this particular client. You won’t want to turn them off by talking about something that doesn’t matter to them.

i like to use the analogy of a torpedo when talking about this subject. A torpedo leaves a ship in the general direction of its intended target. it bounces a signal off in the target direction. if the signal doesn’t come back, it corrects its direction to get back on course, and sends another signal seeking feedback.

that’s what questioning does for you. You take off in a certain direction with your questions. the answers you receive either tell you that you’re on target or that you need to take another tack. Rarely will you take a direct course from initial contact to the vehicle sale. more often than not, you’ll find yourself zig-zagging but all the while heading in the general direction of the sale until you find just the right answer for each and every client.

take a moment to think about the quality of the questions you are asking. how quickly and accurately are they bringing you back the information you need to move forward with a sale? if you continually get hung up in one aspect of your presentation, invest some non-client time writing out the questions you’re using now. then, think about how you could rephrase them to get better feedback. An even better strategy is to make a list of all the information you need to have before asking for a decision. then, work backwards, writing out the questions that will provide those answers. Either way, you’ll soon find yourself with better questions to ask, and a shorter, more efficient sales process.

Tom Hopkins is world-renowned for teaching practical, how-to selling strategies. His training increases competence and builds confidence when it comes to qualifying, presenting and closing sales.


Agent Summit 2013

Why Customers

Purchase

photo ©istockphoto.com / 1001 NiGhts

By John Vecchioni

if you have ever found yourSelf having to listen to someone talk about something you had no interest in, perhaps you can appreciate how customers might feel. You’re asking yourself, “Why is he telling me about this?”

in order to capture the interest of anyone on any subject, you have to discover what they might like about that subject in the first place. Too often professional sales people recite the features and benefits of their products, but fail to present the real life values to the customer. our job is to determine two specific areas about the customer. The first area of discovery is to determine why this customer would have a need for my product. the second area of discovery is showing the customer how he can afford to add these protection products to his purchase. it has to be a benefit to him, not just a benefit.

selling is more than knowing and repeating the features and benefits of

your products. it’s a given that you should know and understand the products being offered in your finance office. How you use your product knowledge and attach it to your discovery determines how your customer views his benefit. You are always striving to build value for the customer. Why not take his words and his real concerns and begin to attach features and benefits with impact statements to create realized value for his specific needs?

have you ever been greeted in your finance office with any of the following statements?

• “I’m not interested in anything.”• “I never buy that.”• “I’m in a hurry.”• “I never buy anything.”

We have heard every objection that can be offered by a customer in the finance office. It’s not about becoming excellent at handling objections, it’s about becoming good at using the customer’s words as the reason you are offering him these

protection products. the easiest way to discovering what is really important to each customer is to ask him or her.

move away from questions that only benefit our need to know, but build no value to the customer. “how many miles a year do you drive?” “How do you use your car?” “Did you have any major repairs on your last vehicle?” “Do you have any insurance products we should cancel for a refund?” These questions have been asked hundreds of times and don’t instill any value to the customer. in fact, what these questions do is cue up the defenses for the upcoming sales pitch.

The first task is to always confirm the sale and the agreed-to structure. i want the customer to verbalize to me why the structure is important to him and how he came to that conclusion. if budget is important and there is no additional down payment, then i want him to share that with me. it’s important that i hear him say that. Now, when i introduce GAp or Vsc, i have a reason why i am


talking to him about that protection and i am using his words and reason why it benefits him specifically. It’s using his words that budget is important and then building value as to why this product helps him achieve a fixed transportation allowance. customers often offer discovery statements to us; we just fail to recognize them.

Want to sell more interior/exterior protection? Every trade you take in, simply ask the customer, “Did you do anything to prepare your trade to be looked at?”

Think about it! Most people will at least wash and vacuum the vehicle for a trade evaluation. Why do you think they do that? Ask them! They do it to get more money for their trade. so, the customer’s perception is that a clean vehicle brings more value. if they agree a clean vehicle brings more value, how hard can it be to use their words and attach features and benefits to your interior/exterior product?

Whatever we are offering to the customer in the finance office, it has to make sense to them. there are two ways to look at this. the need can be different from customer to customer, but only value, not strictly “a good deal,” will determine why that customer makes a purchasing decision. Amazingly, you will find that customers will determine value over cost on their own; we just have to lead them there through logic and service.

John Vecchioni is the national trainer for United Car Care. He provides webinar training, which covers all aspects of a successful F&I office.

move away from questions that only benefit our need to know, but build no value to the customer. these questions have been asked hundreds of times and don’t instill any value to the customer.


Agent Summit 2013

Technology in the Hands

of the CustomerBy Matt Nowicki

utilization of tablet-baSed technologies has taken off in virtually every industry. there are many valid reasons why executives, sales people, retail stores and yes, even car dealers, are flocking to tablet-based devices and technology.

With so much of the population having tablets in their households or at their workplace, they have become a familiar device that customers are comfortable with using. they are rapidly becoming a part of everyday life — for not only dealerships but the consumers they sell to.

laptops, kiosks and other devices that could assist with sales lose spontaneity having to boot up, and once they are ready, they have limited applications. they are also much less dynamic. tablets allow instant access to customers who have fresh feedback and are happy to provide it to a familiar device where they can be honest and forthcoming — while still at the dealership.

smartpad, a tablet-based application available through innovated Aftermarket systems (iAs), helps create sales opportunities by gathering information in real-time while the customer is waiting to enter the F&I office.

Before handing the tablet over to the customer, the sales representative has the ability to tailor a survey to

include specific information on a vehicle about to be purchased. As questions are being answered by the customer, a text message or email can be sent immediately to upper management for review. For example, if a customer is asked if they were treated professionally and answer “no,” management would receive this information and be able to work on correcting the problem before the customer leaves the dealership.

lindsay Ferrell of Byers Automotive said, “As a dealer, it’s a huge bonus to be able to go into my F&i presentation dealing with happy customers and ones that i already know something about so i can tailor my presentation and, in the end, increase F&I penetration.”

At the core, applications such as smartpad can be used to provide the simple csi survey style of old, but also have the capabilities of presenting and gathering information in an engaging way that has never before been done in F&i. tablets go beyond the typical survey and interview by using dynamic video or multimedia presentations to engage the customer in additional sales opportunities once they are turned over to F&i.

With the cost effectiveness of tablet devices, several available at $350 or less, and the growing number of providers developing software specifically for the car dealer, it’s easy see why this form of marketing/data gathering is being rapidly adopted by car dealers.

Well-designed applications and software like smartpad impact not only the sales process, but transition all the way through the dealership from F&i to the service department providing real time customer data. tablet-based programs designed to include modules designed specifically for service are primed for a big impact. the presentation frees up busy service directors while ensuring the consumer is informed of the benefits of, for example, loyalty programs without the addition of a sales pitch.

Future trends also include using these application-type programs for selling F&i to internet-only purchasers. With online auto sales continuing to climb, dealerships have struggled to find a way to sell aftermarket to the true internet

PHOTO ©ISTOCkPHOTO.COM / GRAYTIN


customer. most buyers take delivery at the dealership, but more and more buyers are purchasing vehicles never having set foot in the store. it used to be enough to “get the sale” via the internet. But in today’s environment, the reality is, dealers need every incremental dollar they can generate.

Additionally, while several providers are rolling out applications to work with tablets, various delivery mechanisms that would transform these applications into an even more powerful sales tool are in the making. these include using the applications on not only tablets, but also computers, and email for upselling and internet customers. Additionally, this flexibility allows the application to be used throughout the

sales process and beyond in various scenarios including before F&i, after F&i, before service, and after service.

tablet applications have opened up a new frontier of technology for many dealerships and could potentially reach a segment of consumers currently not even being sold to, like the growing number of internet-only purchasers. it’s an exciting time see what is on the horizon for dealerships as they blaze their own trails in tablet-based application technology.

Matt Nowicki is vice president of retail software at Innovative Aftermarket Systems (IAS). He has over twenty years of experience with all aspects of computer technology from hardware and software development to network integration.

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Agent Summit 2013

SellingPPMService

Drive

photo ©istockphoto.com / GchUtkA

By Ryan Williams

For years, our industry has been attempting to sell pre-paid maintenance, Vsc, paint protection or any variety of products in the service drive without much success. i think that the majority of us would agree on five fundamentals that make this notion too difficult to overcome.

timeservice consultants are very busy, and need to add very little to their already stressful process. if they do, it needs to be quick and fall into line with their existing process to ensure success.

having the capability to add a maintenance plan to the customer’s order, and instantly redeem one or two of the services that are already on the

customer’s bill, will show value, save them money and increase the chances of seeing them in the drive in the future.

Compensationpacking in a reasonable spiff into each contract more often than not makes the retail contract price too expensive and less valuable for the customer.

Any good service consultant or employee is going to work their pay plan. A few of the top 100 stores in the country use the same best practice in this regard. Rather than adding the spiff to the contract price, the consultant commission is paid out of the total service department gross. this amount ranges from $10 to $50 per policy sold. some of my top-performing service consultants are averaging about 80 policies per month to customers that are already walking in the door. And

with a good pay plan they can increase their pay by a significant percentages.

ProcessThe offering must fit squarely with a dealer’s motives and overall customer retention strategy. You must have complete dealer buy-in as you do in any other program.

this means they must have a retention strategy to begin with. if they don’t know how much money they are leaving on the table and don’t have a clear plan to improve it, this strategy will fail. many dealers we do business with prefer to go the reinsurance route. this is a slightly different overall cost structure, but when then see the additional benefits of adding another 50 to 200 policies per month into their company, they tend to buy in much quicker.

in the

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Agent Summit 2013

teamworkmake sure the service manager develops the program with the writers involved, and that all pay plans include service drive contracts.

too often, service departments are given a program that they had little to no input in, and are told to sell it or else. Well, guess what? they won’t. if the reimbursement levels aren’t enough, if the packages don’t make sense to them or if they themselves don’t see value in it to buy one on their own, it will not sell. i have found that when it is their program, their pricing and tied to all other pay, you will see immediate success that will last for years.

softwareDms-integrated software must track all metrics and holds them accountable.

our industry has done a great job with F&i menus, tracking pVR and product sales, but has fallen short in the service lane.

my dealers all use an integrated software program that tracks the upsell of each consultant to ensure they aren’t just giving everything away, as well as how often the customers are coming back to the drive. it will rank each adviser against the other in performance, just like in F&I, and creates a terrific competitive environment with accountability.

Ryan Williams in the executive vice president of Fidelis PPM. For the past 18 years he has worked in this industry, while still finding time to get married, have two children and two dogs, and occasionally get out to the golf corse or go cycling. To contact him, email [email protected].

too often, service departments are given a program that they had little to no input in, and are told to sell it or else. Well, guess what? they won’t.

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Agent Summit 2013

CompAn y profile Afip and AiGAThe AssociATion of finAnce & insurAnce Professionals (AFIP) was founded in 1989 to support individuals plying the F&I trade in car dealerships through education, communication, representation and the implementation of an enforced code of ethics. AFIP’s mission is twofold. The primary objective is to protect dealers by ensuring that in-dealership F&I practitioners and sales executives are fully aware of the applicable state and federal regulations — and take responsibility for their actions. Regulatory knowledge, coupled with the personal accountability requisite of the AFIP certification program, keeps thousands of dealers out of harm’s way. AFIP is the dealer’s first line of defense.

The second objective is to transfer the expense and contingent liability inherent in compiling and disseminating state and federal rules away from the captive and institutional lenders and aftermarket vendors to an independent entity charged with regulation education. By design, the training schools concentrate

on dispensing product knowledge and conversion techniques — information that will make the dealers money. In addition, in the mid-1990s, GMAC executives noted that AFIP certification yielded a second positive benefit: Dealerships with AFIP Certified staffs consistently posted higher CSI ratings.

AFIP plays an important role for agents, placing independent general agents on equal footing with the major captive and institutional lenders and aftermarket vendors with their ability to offer special pricing, as well as every product and service benefit available to industry level members, regardless of their size. AFIP also provides agents with two free neutral-ground door-opener services designed to place them in front of the decision makers in prospective accounts.

AFIP certifies dealership personnel and select lender/vendor/general agent field operatives for franchised, independent and buy here, pay here and lease here,

pay here operators. The three-tiered AFIP certification program — Basic, Senior and Master — draws on the expertise of recognized industry resources. The course textbook is written for AFIP by the Hudson Cook LLP legal staff. The applicable state laws are compiled and updated by HudCo’s Counselor Library. The installment sale and consumer lease contract covenant material is based on the Reynolds and Reynolds “LAW” forms, and the GAP and related aftermarket information is provided by CreditRe, an industry actuarial firm. The ethics module was developed by the Walsh Institute for Ethical Behavior. PSI, the professional proctoring firm, maintains 300 testing facilities throughout the United States. Candidates must sign a code of ethics holding them personally accountable for what they tell a customer.

AFIP serves as an aggressive industry advocate. AFIP also markets, under the DealerAide marque, template-based Safeguards Rule, Red Flags Rule and Disposal Rule programs for dealerships.


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CompAn y profile Dent Wizard

DenT WizArD inTernATionAl sTArTeD as a company with a single focus: Provide high-quality paintless dent removal (PDR) services and products to customers through agents, auto dealerships, auto auctions and body shops. Over time, however, not only has Dent Wizard evolved the PDR process to an art form, it has added more products and services designed to keep the exterior of a vehicle looking brand new, while generating profits for dealerships and agents in a responsible and sustainable manner.

PDR is a process that removes dings and dents from vehicles without harming the factory finish, or requiring time-intensive and expensive traditional body work. Dent Wizard’s well-trained technicians know how to get behind a vehicle’s panels without damaging the paint or finish of a vehicle, or compromising the vehicle’s structural integrity. Dent Wizard’s new technicians go through an intensive eight-week

course to be certified, and then go through advanced training on a yearly basis. In addition to teaching them the schematics of every possible vehicle — which Dent Wizard obtains through its relationships with OEMs — technicians learn how to use the newest tools, and how to work with various metals used in vehicles today.

Ding Shield is the company’s F&I product for agents and F&I managers in automotive dealerships, and it remains Dent Wizard’s top-selling F&I product today since its introduction in the mid-2000s. Ding Shield provides consumers with unlimited ding and dent protection, plus a hail deductible benefit.

In February 2013, the company launched Ding Shield Preferred. Ding Shield Preferred covers all aspects of Ding Shield ding and dent repair, plus windshield chip repair and cosmetic alloy wheel repair. All repairs are performed on site at the dealership by

fully-trained Dent Wizard and Safelite AutoGlass technicians using the latest repair technology. The plan provides coverage for up to six years and is backed by Great American, an A.M. Best A-rated insurance company and Dent Wizard’s lifetime limited warranty.

Dent Wizard works hard to provide agents and F&I managers with regular training on the products, including what they are, how they work and compliance. The company also offers sales training, including key selling points and overcoming objections. Plus, Dent Wizard field managers are accessible to agents for product demonstrations and cooperative sales presentations.

What’s in the future? Dent Wizard’s products and services will continue to evolve, prudently and in response to market demand. But the critical role of agents in the market presence, sales and support of Dent Wizard’s products will be steadfast.


Agent Summit 2013


Agent Summit 2013


CompAn y profile f&i Admin

f&i ADminisTrATion soluTions (F&I Admin) provides SCS Auto, a state-of-the-art, turnkey and comprehensive F&I product administration platform. F&I Admin has been in business for over 10 years, under various ownership changes. But the company did not really take off until it became an independent entity in 2009, under the ownership — and leadership — of CEO David Trinder and COO Kumar Kathinokkula.

In the last few years, F&I Admin has grown from seven clients when they first broke out on their own to 27 today, and growing. And that growth, Kathinokkula noted, is no fluke. It occurred because with each new customer signed, F&I Admin was systematically removing obstacles to its customers’ growth.

“People were still using difficult to manage, old technology for what is a fairly sophisticated and rapidly changing industry” he said, referring to the fact that while F&I products were rapidly growing in sophistication, the means to manage the product portfolios had lagged behind. “New product introductions were costly and time-consuming, requiring considerable IT involvement.

“At the same time, regulations were becoming ever more complex requiring ever more business rules to be programmed into existing systems. Dealers and agents required an ever greater share of the pie with increasing demands for simplifying the cluttered ecosystem of ancient applications at the dealers. So only companies who could afford a considerable IT force could afford to grow, and even then not at the pace they would have liked.”

comprehensive, Turnkey solutionTo achieve turnkey deployment, the product is primarily available as software as a service, or SaaS. This means product providers need not buy any special hardware or software to start doing business — they sign on via a Web browser and start configuring their products, rates, agents and dealers. This removes one of the major obstacles for companies looking to enter the administration space: the considerable investment in hardware and software licenses along with the continual expense for the infrastructure and staffing

required to support such a solution. The solution is also available for customers to host themselves, if they so choose.

Providers benefit further from the service because they can have a single source to manage their entire F&I product lineup from end-to-end, all in one place. It was very typical for providers to have completely separate systems to manage service contracts and GAP — especially GAP claims. With SCS Auto, they can configure their entire product catalog in a single system with no IT involvement, along with specifics needed to sell each one, including business rules, rates, forms, commissions, chargeback

rules and seller-specific portfolios. Providers support at least 14 different F&I products (VSC, GAP, pre-paid maintenance, theft, dent, etc.) on SCS Auto today within a single system.

connecting the industryIn addition, the system integrates with 22 different menu systems, so the provider — or agent — can walk into a dealership and, in a short amount of time, have the new product lineup ready to sell using the dealer’s existing menu system. Further, using the branded, private-labeled DAP that is an integral part of the solution, dealers can sell the products, manage contracts, check on claims status, and always have the most up-to-date information. The DAP also allows integrated financing using SPP and Paylink payment plans. The multitude of options available to process and send business electronically means that there are no channels left unopened for providers to accept business from producers — whether it is the old way via paper contracts, or through menus, or through the DAP, or via batch files.

For agents, F&I Admin provides FIAgent, a mobile application providers can private label. This app allows agents to see, in real time, how their dealerships are doing

— how many contracts were sold, how many claims have been paid, etc. They can thus have more current information literally at their fingertips enabling them to manage dealers much more effectively and, in the end, sell more products.

“Independent agents are responsible for a vast majority of dealers at a typical independent provider,” said Kathinokkula. “An agent’s main goal is to make sure the dealer is compliant with regulations, producing at peak and is trained adequately.” To that end, having real-time, mobile tools can give agents a huge advantage.” The providers are actively courting agents,

and agents need the ability to see what the dealers are doing at all times.”

Connectivity, integration and cost efficiency benefits extend all through the value chain, right down to claims. Providers have saved hundreds to thousands of man hours every year using the integrated parts pricing, integrated inspections and integrated credit card payments and reconciliation via WrightExpress. These integrations cut down on per-claim handling time and thus cost per claim administered.

F&I Administration Solutions has become a leader in a product category that it didn’t necessarily invent, but did revolutionize and bring into the modern era. The SaaS model eliminated an administrator’s high upfront and ongoing costs of IT to support systems in-house. The unparalleled connectivity to menus removed the frequent objections from dealers and agents about the lack of real-time rating and contracting that they needed and wanted to use for selling. Providers, agents and dealers all benefit from a far more robust, advanced system that allows everyone to sell more effectively, process contracts and claims easier and faster, and ensure that every part of the system is working seamlessly.

It was very typical for providers to have completely separate systems to manage service contracts and GAP — especially GAP claims. With SCS Auto, they can configure their entire product catalog in a single system with no IT involvement.

Agent Summit 2013

40 Agent Entrepreneur 2013 SPEC IAL ADVERT IS ING SEC T ION

CompAn y profile GSfSGroup

once A yeAr, AgenTs from ArounD the country converge on GSFSGroup’s headquarters in Houston for the company’s annual agent event. Last July was the first chance for many of them to meet Alan Bond, vice president of national sales. Bond says the meetings were productive, despite the sweltering Texas heat. “I was relatively new, and the meeting was scheduled for the dead of summer,” he said, laughing. “This year, we’re having it in October.”

Bond has already had plenty of opportunities to meet with GSFSGroup agents under more pleasant circumstances. He oversees three directors, each of whom is responsible for 15–20 agents, and his annual schedule includes four trips to different parts of the country to meet with everyone in the field.

But the support doesn’t begin and end with two meetings a year. Bond says GSFSGroup is committed to developing highly productive agents with expert training and a full lineup of F&I products and reinsurance programs.

experience countsBond joined the company after 13 years at Allstate Dealer Services in Jacksonville, Fla. As that company’s national sales director, he helped strengthen and expand the nationwide network of agents and third-party administrators. Prior to joining Allstate, he logged six years on the retail side and two more as an independent F&I consultant.

At GSFSGroup, he works with training director Ray Jennings to lead the company’s “Right From the Start” agent education program. The pair also offers hands-on assistance in the field, offering to sit side-by-side with agents to help close deals. Bond points to the company’s long-term relationships as proof of the formula’s success, noting that GSFSGroup’s top-producing agents have been with the company for at least 10 years.

In the current climate, however, back-end profits have taken center stage. Bond says GSFSGroup has responded by offering every possible type of reinsurance program, including controlled and non-controlled foreign corporations, dealer-owned warranty companies, retro and dealer obligor.

“We position our agents to be consultants,” he said. “We want them to be able to walk in and say, ‘Let’s see what program works for you.’”

looking forwardBond said he will be anxious to hear what his colleagues are saying at Agent Summit in March, noting that “a lot of optimistic numbers have been thrown around” regarding new-vehicle sales in 2013. He pointed out that March also will bring Round Two of the debate over the fiscal cliff in Congress, which could cause banks to tighten lending standards, if only temporarily, and unfolding developments at the newly formed Consumer Financial Protection Bureau will have dealers on notice.

Few would disagree that 2013 will be a big year for leasing, and Bond says GSFSGroup will be ready. The company is launching “LeaseGuard,” a new program designed to offer lease customers a vehicle service contract matched to the term of their lease as well as tire-and-wheel and dent-and-ding coverage.

Whatever the product, Bond believes that, for dealers, success will continue to depend on the partnerships their agents form with providers and the opportunity to get their fair share of the back-end profits.

“When you get right down to it, the numbers have been sliced and diced 100 times,” he said. “The differentiation is in the model the agent brings to the table.”

To learn more, visit www.gsfsgroup.com or stop by the GSFSGroup table top at Agent Summit.

Bond points to the company’s long-term relationships as proof of the formula’s success, noting that GSFSGroup’s top-producing agents have been with the company for at least 10 years.

Agent Summit 2013


CompAn y profile innovativeAftermarketSystems (iAS)

in 1984, Jerry lAcour sAW A neeD in the industry for an aftermarket provider that offered complete F&I solutions in a creative way. From that philosophy, IAS was born. Since its inception almost 30 years ago, IAS has continually brought to market innovative products, pioneering many F&I staples such as GAP and tire and wheel.

The company even staffs an in-house design team for the purpose of providing a previously unprecedented level of support to their dealers. As a result, customization has become a cornerstone of the IAS brand. “We believe our agents can offer our programs with a distinct differentiator because of the level of ease at which we will work with them to tailor the right program for their dealership,” said Bob Corbin, president and CEO. “And we go the next step to provide fully customized sales tools to successfully market and sell them.”

Corbin joined the company in 2000, when, he noted, the industry was at a tipping point, especially when it came to technology and the legal and regulatory issues that surround it. To that end, IAS now boasts an entire division build around the company’s SmartDealerProducts software suite. The suite, Corbin explained, is constantly evolving with upgrades to current products and new ones being introduced, to try and stay ahead of the challenges modern dealerships face in selling and servicing a wide range of F&I products.

Since its inception, IAS has had a foothold in another big arena: reinsurance. All of IAS’s products are

eligible to participate in the company’s program. And they rely on agents to help identify dealers who would be good candidates for it, offering them a marketing tool that projects underwriting profits and investment income that is specifically tuned for each individual dealer’s projected unit sales, product penetration and historical profit and loss performance.

Beyond technology and reinsurance, IAS has a wide range of F&I products, such as tire and wheel, GAP, anti-theft and environmental protection. The company offers individual products as well as pre-packaged bundles for dealers to offer end-users as well, combining popular or complimentary coverage options. IAS also recently introduced a Trade Assurance Program, or TAP, which works like GAP coverage for trades.

One common thread throughout the company’s business model is the agent. IAS feels strongly about its agent network, and is always looking for ways to help its agents be more successful. “IAS is the kind of business partner who offers immediate access, understands urgency, has expert field sales support and offers personal attention to our agents,” said Corbin. “We offer our agents products they can rely on and people they can trust. It’s a simple philosophy that has served IAS and our agents and dealers well over the last 30 years, and we’re excited to see what the future holds.”

To learn more, stop by the IAS table top at Agent Summit or visit www.iasdirect.com.

“We believe our agents can offer

our programs with a distinct differentiator

because of the level of ease at which we will work with

them to tailor the right program for their dealership.”


Agent Summit 2013


CompAn y profile menuVantage

chAD Agler’s pAssion for The automotive industry extends beyond the advanced software and technological expertise at his disposal. As a product line owner for ADP, Agler is responsible for how the firm directs the resources of MenuVantage, the dealer software provider ADP acquired in 2009.

But Agler is adamantly “not a tech guy,” and his résumé backs that claim: His first 12 years in the business were spent as a salesman, F&I manager and general manager at his brother’s Dodge/Chrysler/Jeep/Toyota store in Topeka, Kan., where he still resides. The connection to his work with ADP and MenuVantage lies with the partnerships he formed with agents during his tenure at the dealership.

Agler credits those agents — and the product providers they represented — with easing his transition into F&I after only one year on the show floor. Together, they doubled the store’s product penetration rates and moved away from the traditional four-square product presentation; first, to step selling, then a paper menu.

“We developed good relationships with the agents, and that’s crucial to get to know any vendors,” Agler said. “The better you control those relationships, the better you can direct your future, stay in touch and stay informed.”

from showroom to BoardroomBy 2008, Agler was ready to make a move. He considered becoming an agent himself, but felt the offer he received from ADP would give him the opportunity to do more for the industry. He started as a director of dealer development, selling specialized products and services, and working with agents to help F&I departments improve their penetration rates.

Four years later, he was assigned to MenuVantage, and his mandate was clear. “Our biggest focus is to first take care of the customer, then to make revenue,” Agler said. “What we’re trying to do now is go deeper and wider; get as many providers involved as possible.”

Ultimately, Agler’s goal is a completely paperless F&I workflow. Memories from his early years in F&I offer an example of how much progress has already been made. Selling a vehicle service contract, for example, required retrieving the

class code from a rate book, adding any surcharge, writing it all down and, inevitably, making the occasional mistake.

“This company has done so much to ensure that F&I makes fewer mistakes,” Agler said. “Now, you just select the product, term and anything that’s special about the vehicle.”

So what took the industry so long to get on the paperless path? “There are two reasons: First, dealers wanted to protect the fact that the F&I office had no cost. Second, dealers were asking, ‘Can I really trust a computer program over a guy who only makes a few mistakes?’” In the end, Agler says, dealers and agents agreed that freeing F&I managers to focus on product sales was a good idea.

new Tools, new productsFrom his Topeka base, Agler is in touch with a nationwide network of agents, and he makes regular trips to visit the teams he manages in Chicago, Fort Lauderdale, Fla., and Portland, Ore. Part of his day-to-day work includes staying ahead of industry trends, including the emerging mobile menu segment. He has heard the concerns about tablets making the F&I manager obsolete, and he doesn’t buy it.

When agents ask him how to advise their dealers on whether to go mobile, he responds with a question of his own. “‘What do you hope to gain?’” he asks. “Your process will sell products, not technology. We have 3,000 clients who love our menu because they love the process. … Mobile is a great thing, and we will leverage it where it makes sense.”

Agler sees good things for the industry in the year ahead. The ADP/MenuVantage team will come to Agent Summit armed with the latest information about existing products as well as the new, mobile version of Product Sale, a system that allows F&I managers to recalculate service contract rates after adding products, as well as the migration to an ADP-integrated compliance workflow, and the company’s continued drive toward integration with each of the providers on the Provider Exchange Network (PEN).

For more information, visit www.menuvantage.com or stop by the ADP/MenuVantage table top at Agent Summit.

The ADP/MenuVantage team

will come to Agent Summit armed with the latest

information about existing products

as well as the new, mobile version of

Product Sale, a system that allows

F&I managers to recalculate service

contract rates after adding products.


Agent Summit 2013


CompAn y profile myStar personal Assistant

This yeAr’s AgenT summiT incluDes a number of new exhibitors; among them is MyStar Personal Assistant, the Dallas-based company that offers the type of cell phone-based concierge-level service that was once available only to the rich and famous. MyStar’s president, Ken Ferguson, wants every car buyer to enjoy the service, and he says independent agents are the key.

“I came from the dealer services world, and I understand the agent side,” Ferguson said. “MyStar is an agent’s dream: You’re bringing a high level of customer service to your dealers, and it pays well.”

The story Behind the serviceThat customer service is delivered by MyStar’s team of professional personal assistants, all of whom work at a call center located in the company’s Dallas headquarters. Customers can call 24 hours a day, seven days a week to ask questions, or request research on a wide range of topics. Better yet, they’re greeted by name, and the service is branded to the dealership that sold them their car.

MyStar’s representatives are trained to tackle questions and tasks from an unlimited number of categories. The level of service is a cut above the typical call center, and they’re “not in a hurry to get off the phone,” said Ferguson. “We are a world-class personal assistance service that strives to delight callers with every interaction.”

The system was originally developed by Adam and Kfir Alfia, co-founders of Maestro Personal Assistants, and marketed to corporate executives as an alternative to hiring an assistant to manage their day-to-day affairs. As a veteran of the F&I products industry, Ferguson saw potential for the service in the auto industry. He and the Alfias partnered to form MyStar, and began marketing the service to dealers across the United States.

“The product didn’t change; the way dealerships explained the service to the customer was adapted to work as part of the dealer’s walkaround of the vehicle,” Ferguson said. “It’s an enhancement to the ‘Why buy here?’ concept. It’s all in the dealer’s name, and there’s no equipment to install, no pre-load and no upfront cost.”

Some of MyStar’s dealers sat on the advisory board for Infiniti. They recommended that the OEM explore a partnership with MyStar. That led to the launch of Infiniti Personal Assistant and, later, Infiniti Connection (available in select Infiniti vehicles), which integrates MyStar’s service with telematics technology from Agero. With Infiniti Connection, drivers can contact a personal assistant instantly with the push of a soft button on the navigation screen. They can then ask for dinner reservations, for example, and the assistant can send directions to the restaurant directly to the vehicle's navigation screen — all in the same call.

Agents in the Driver’s seatThe first 300 registrants for Agent Summit 2013 were treated to a free, 60-minute MyStar Personal Assistant account. The vast majority of MyStar’s existing clients were signed by agents, and the company’s presence at the conference is a clear sign that Ferguson is counting on agents to continue to drive the company’s success.

“The agent-based distribution model was the original plan,” Ferguson says. “We want to take advantage of agents’ relationships with their dealers. In fact, if a dealer calls us, we refer him to an agent.”

When new distributors sign on, they’re invited to fly into Dallas for an all-day session that includes a meeting with Ferguson, a visit to the call center and five hours of one-on-one training. MyStar will even subsidize a portion of the trip expense. Agents earn a monthly commission check, and the company provides registration forms as well as dealer-branded marketing materials, all shipped directly from Dallas.

But the support doesn’t end there: If requested, Ferguson will personally accompany a new agent to his or her first presentations and assist in the rollout at a newly signed dealership. And dealers aren’t required to sign contracts; the service can be ended at any time.

Ferguson will host a one-hour “New Revenue Streams” workshop on Monday, March 4 at 3 p.m. in the Trevi Room. Agent Summit registrants are welcome to attend free of charge.

For more information, stop by the MyStar table top at Agent Summit or visit www.mystarauto.com.

The vast majority of MyStar’s existing clients were signed by agents, and the company’s presence at the conference is a clear sign that Ferguson is counting on agents to continue to drive the company’s success.


Agent Summit 2013

CompAn y profile national Auto Carein 1984, pAul Aselin, A former AuTo- motive dealer, service contract agent and entrepreneur, designed a business plan to be used by a dealership that combined vehicle service contract sales and reinsurance. He did so at the request of a client, who never implemented it. However, Aselin did, and that concept became National Auto Care (NAC).

His mission, which continues through the company today, was to bring values and integrity back to the automotive industry by measuring his success based on the success of his clients. He brought Bill Speaks on board in 1987, followed by Pete Biscardi in 1990. Both men helped Aselin grow the business, and by 1995, he was able to retire to serve as chairman of NAC’s Board of Directors. In 2009, Speaks and Biscardi purchased NAC from Aselin, and sold it to Trivest Partners in late 2012.

In that time, Christina Schrank was

appointed president of NAC, and today runs the daily operations of the company. NAC is a leading administrator of customizable vehicle service agreement products, all of which are securely backed by an A.M. Best A-rated carrier and over $28 billion in assets.

Through the years, the company has evolved to keep up with what the industry has demanded of them, providing new products, technologies and services, and creating new programs specific to client requests. Schrank noted that agency and dealer clients now run leaner than they ever did in the past, and they need solid results on a regular basis. NAC, she said, is committed to meeting and exceeding their expectations.

One of the key ways NAC is fullfilling changing agency/dealer needs is through expansion in technology services. “Working together with our agents and dealers, we developed a powerful,

turnkey solution that enables online rating, contracting, submissions, claims and so much more,” said Schrank. “We’ve shifted from paper contracts and faxes to having over 90% of our business submitted electronically. And we continue to add new features and release updates regularly to ensure we stay on the leading edge for the future.”

For agents, NAC has a strategy in place to provide the support they need to be successful. That includes an agent/dealer management system to help manage accounts, set up new dealers and marketing rates, make remote adjustments and view reports at any time of the day or night, on demand.

“At NAC, the structure of our business is flexible — not rigid and corporate — which enables us to be very agile, make faster decisions, and deliver custom solutions while our competitors are still analyzing,” Schrank said.



Agent Summit 2013

reCoGni t ion provider innovatorof the year Award

This yeAr’s AgenT summiT Will feature a first for the three-year-old event: a new award, presented to the company that produced the best new F&I product or service — as voted on by agency personnel.

David Gesualdo, show chair and publisher of F&I and Showroom magazine, said the Provider Innovator of the Year award will be an opportunity for agents to identify significant advancements in the dealer space. “New technology drives our industry,” he said. “This award recognizes that agents are in the best position to tell which innovations are making a difference for their dealers.”

The conference kicks off Monday, March 4 at Caesars Palace in Las Vegas. The Provider Innovator of the Year award will be presented to a representative of the winning company by Tariq Kamal, publisher of Agent Entrepreneur, during the Tuesday luncheon.

“We’re anticipating a significant number of nominations,” Kamal said. “This past year was a big one for the auto finance industry in general and for agents in particular. It will be interesting to learn which innovation gets the most votes.”

Voting is now open to any agent who wishes to nominate the new product or service they feel will have the biggest impact on automotive F&I operations. Any innovation that reached the market in 2012 or the first quarter of 2013 is eligible.

To submit your nomination, visit www.agentsummit.com.

“New technology drives our

industry. This award recognizes

that agents are in the best position to tell

which innovations are making a difference for

their dealers.”

Agent Summit 2013


CompAn y profile national Automotive expertsKelly price founDeD nATionAl Automotive Experts (NAE) in 1996 in an effort to help dealers with their reinsurance positions. She wanted to create a company that had nothing to hide, without any fees, reserves, ceding fees or administration fees.

In the past seven years, the company has seen tremendous growth, which coincided with when they started working with independent agents.

Prior to that, NAE only worked directly with dealers. “With that change, we have been able to better serve our dealers with the help and advice of many agents around the country,” said Price. Today, NAE is a full-line administration

and training company. It offers just about every product available in the F&I office, and specializes in assisting dealers and agents with the training of the F&I department. In addition, they recently formed a partnership with The Impact Group, which is now

providing additional intense F&I process training for the Fusion Menu system.

Some of the products the company offers include:• Dealer development• F&I training and compliance• Service retention tools• Custom administration services• Reinsurance positions• Retro participation programs

All of NAE’s products are backed by an AM Best “A” rated insurance carrier, and are available through an online eRating, eContracting and eRemitting platform, allowing dealers and agents the ability to be fast and efficient.

The company offers a range of specific programs to help agents be more successful. These include on-site dealer presentations, webinar-style demonstrations and training sessions, as well as a full schedule of F&I bootcamp-style training courses.

“We work very closely with our agents, not only helping them to structure and propose new presentations, but long afterward with ongoing training and quarterly reinsurance reviews with their clients,” Price noted.

To learn more, stop by the NAE table top at Agent Summit or visit www.nationalautomotiveexperts.com.

“We work very closely with our agents, not only helping them to structure and propose new presentations, but long afterward with ongoing training and quarterly reinsurance reviews with their clients.”

CompAn y profile national Automotive experts


Agent Summit 2013

CompAn y profile nation Safe DriverslAsT yeAr, nATion sAfe Drivers celebrated its 50th year in business. The Boca Raton, Fla.-based company is a leading F&I product provider, offering tire and wheel coverage, key replacement, dent and ding, windshield repair, GAP, bundled programs and more.

NSD’s specialty is and has always been roadside assistance. The company began as a motor club in 1962, and has been building its nationwide network ever since. Today, NSD services more than fifteen million customers every year thanks to partnerships with insurance companies, dealerships, OEMs and, of course, agencies.

Mike Mennella, NSD’s vice president of sales and marketing, says the company’s hundreds of agents are a key part of the company’s success. They don’t just provide NSD-branded programs, “we private-label,” Mennella said. “We started that way. It allows us to accommodate all kinds of producers.”

Mennella joined the company in 2000. After earning a degree in engineering, he was quickly drawn into the auto industry. He went to work for a Pompano Beach, Fla. Honda dealership as a wholesale parts manager. Over the course of his tenure, he began to see great potential in products most dealers now take for granted, starting with tire protection.

He took his ideas 10 miles north, to Boca Raton, where he partnered with NSD’s Mike Wiener. By 2001, the pair had launched “Titanium,” the first of the company’s bundled product offerings. Titanium complemented NSD’s roadside assistance program with tire and wheel, dent and ding and windshield coverage. Mennella says companies like NSD, which began writing tire protection policies early in the decade, got the jump on the low-profile tires that began to dominate the market in the mid-2000s.

In the years that followed, Mennella would add new products — such as key/

remote replacement and GAP — to NSD’s lineup. The missing piece would appear to be vehicle service contracts, but that’s by design: The company provides roadside assistance to several of the industry’s leading VSC providers.

Mennella is looking forward to a profitable year in 2013, noting that the company has recently entered into new partnerships with MaximTrak, F&I Express and the Provider Exchange Network (PEN). At this year’s Agent Summit, he and his team will be armed with new additions to their product lineup, including paint and interior protection and a GAP depreciation program. Mennella also is excited about a new product for lease customers. The wraparound warranty will include bundled coverage that will free customers from paying for tire damage, door-panel dents and dings, windshield repair, paint and interior at lease end.

To learn more, stop by the NSD table top or visit www.nsdmc.com.



CompAn y profile permaplatein The lATe 1970s, Bill nisson launched the PermaPlate line of automotive appearance protection products in response to consumer and dealer demand for more reliable products in this particular arena. The company has remained committed to providing the highest quality products and services possible through the years, staying focused on meeting the needs of its dealer partners and their ultimate end users.

PermaPlate offers a wide range of products and services in a wide range of categories. These include:• Paintguard exterior paint protection• Fiberguard fabric upholstery and carpet protection • Leatherguard leather and vinyl protection• Soundguard undercarriage coating• Rustguard coating for unpainted metal inner surfaces• Windshield Protection windshield enhancement

• Etchguard theft deterrent protection• Clearplate, a clear urethane protection product for hood, fenders and mirrors• Door Edge & Cup Guard, a clear urethane protection product for exterior handle wells and door edges• SolarPlate window tinting• PDR paintless dent repair• Tire & Wheel Protection road hazard and indemnity

• GAP to cover the difference between the vehicle’s insured value and the outstanding loan balance in the event of a total loss

“Our culture of exceptional service is present in everything that we do, from field sales support to claims processing

and everything in between,” said Karen Johnson, president of PermaPlate. “Our goal is to be the best ancillary product provider to our strategic partners and to instill confidence and secure long-term relationships.”

She went on to note that a big part of PermaPlate’s success is the company’s focus on attracting and retaining top

talent, with the average employee staying with the company for 14 years, and many of them logging in more than 20 years of service. That commitment, Johnson noted, carries through to the agents and dealers they work with, many of whom, she said, have also been with PermaPlate for decades.


Agent Summit 2013

The company has remained committed to providing the highest quality products and services possible through the years, staying focused on meeting the needs of its dealer partners and their ultimate end users.


Agent Summit 2013


CompAn y profile protective Asset protection

proTecTive AsseT proTecTion is one business segment within the Protective Life Corporation group of companies. It has been selling F&I products and services for more than 50 years, while Protective Life Corporation is more than 100 years old, lending a huge amount of stability and history to the industry.

In some cases, that kind of history could bog a company down, but Protective Asset Protection has made it a priority to stay on top of the changing trends in the automotive marketplace. “Though we are proud of our history, we are committed to providing new and innovative solutions that allow our agents and dealers to provide consumers with solutions that help them protect their customer’s automotive investment,” said Scott Karchunas, president, Protective Asset Protection.

That includes a focus that has always been on providing value to agents, dealers and consumers. To achieve that, Protective Asset Protection has taken the step of forming its own Agent Council, where it can interact with and hear from the agents who sell its products. Through the council, Karchunas noted, the company works to understand the needs of the dealers, and ensure it creates full F&I solutions, rather than just independent product lines.

“The F&I industry has seen countless changes and we at Protective Asset Protection spend much of our time working to stay ahead of an evolving marketplace,” he noted. “We feel the right F&I solutions are a collection of competitive products delivered with advanced training and supported by superior customer support and technology.”

Those products include a wide range of categories, such as vehicle protection plans, limited warranty products, GAP coverage, credit life, credit disability and other asset protection products. Protective sees the need for both the products, as well as training to ensure both the agents and F&I managers are fully aware of how each product works, and how it benefits customers.

And training is an area Protective pays close attention to; with agent-specific training to help them better help the dealers, as well as other tools and access to the company’s network of industry talent. “In addition to being a leading provider of F&I solutions, we also leverage our vertical integration as an insurer, administrator and distributor — this means our agents know they can rely on Protective to be there for them today, tomorrow and well into the future,” Karchunas said.

“Though we are proud of our history, we are committed to providing new and innovative solutions that allow our agents and dealers to provide consumers with solutions that help them protect their customer’s automotive investment.”


Agent Summit 2013


ne W re Venue Stre Am

Q&A with Ken ferguson, myStar personal Assistant

This yeAr’s AgenT summiT Will include a one-hour New Revenue Streams workshop. Attendees are invited to join Ken Ferguson, president of MyStar Personal Assistant, on Monday, March 4 at 3 p.m. in the Trevi Room, just down the hall from the exhibition area.

Ferguson will be there to discuss how independent agents are driving the success of MyStar Personal Assistant. Agent Entrepreneur caught up with Ferguson to learn more about the service.

AE: Tell us about the history of your company.

Ferguson: In 2004, entrepreneurs Adam Alfia and Kfir Alfia co-founded Maestro Personal Assistants to offer branded personal assistant-based marketing and loyalty programs to corporations searching for unique customer incentives and rewards.

In 2006, I met with Adam Alfia to discuss creating a stand-alone personal assistant program aimed specifically at the auto industry. I’m a 28-year veteran in the industry, as well as a former owner and manager of a successful dealer services group, so I felt that the auto industry was the ideal market for this type of assistant program. Before Maestro, Mr. Alfia owned a chain of successful import auto service shops, so he also recognized the true potential for an auto-specific program.

A year later, MyStar Personal Assistant was launched. At first, we offered private-labeled programs direct to dealers, and we began putting custom programs in place for many auto groups. In 2011, we also began servicing OEMs. Today, MyStar is helping several prestigious OEMs and dealerships across the U.S.A. increase sales, improve customer satisfaction, build long-term loyalty and strengthen their overall brand presence. In 2012, we began expanding into Canada. Now, MyStar is searching for sales agents to offer our programs throughout the industry. Having qualified, informed and heavily-supported agents is at the core of MyStar’s growth strategy.

AE: What products are you showing at Agent Summit?

Ferguson: MyStar offers high-impact marketing and loyalty programs with a powerful incentive: cell phone access to a live, VIP personal assistant and information service 24 hours a day, branded in the dealership’s name. Even in today’s competitive industries, offering our high-touch service with the purchase of every vehicle is an ideal way to increase sales — not just car sales, but also F&I and related products. Including the personal assistant benefit also increases satisfaction, reinforces loyalty, and generates referrals. MyStar adds value to vehicles and services by promoting OEMs and dealerships in a very personal way.

AE: What news should we look forward to from your company in 2013?

Ferguson: MyStar never stops searching for ways to provide even higher levels of exceptional service to our OEM and dealership clients. For example, MyStar’s development team is expanding the capabilities of our customizable VIP mobile app. New abilities will extend OEM and dealership brand exposure by increasing the interaction between our clients and their customers. Through the use of emerging and proprietary technologies, innovative new standard or optional app features will be added soon.

AE: What F&I trends are you personally keeping an eye on this year?

Ferguson: One trend we’re happy to see is that the economy is slowly improving, and we expect it to continue to do so, especially in the auto industry. According to a recent Equifax National Consumer Credit Trends Report, automotive credit balances and new accounts are increasing steadily. That means more people are buying cars, as well as related F&I products and services.

But in order to tap into this improving market, OEMs and dealerships will need new and unique incentives that will help set them apart from the competition more than ever. That’s where MyStar comes in. We will continue to work with our new and existing clients to help ensure 2013 is a very successful year.

Even in today’s competitive

industries, offering our high-touch

service with the purchase of every vehicle is an ideal

way to increase sales — not just car sales,

but also F&I and related products.

CompAn y profile Q&A with David Duncan, Safe-Guard productsAE: Tell us a little bit about your company's history. Who founded it? When? Why?

Duncan: My brother, Doug, and I started out in the retail auto business during the 1980s while we were in our 20s. In 1992, Doug founded Safe-Guard with the idea that F&I was changing, and that vehicle service contracts and credit insurance were no longer going to be the only offerings in the F&I office.

Think about it — cars were getting much more sophisticated and, as a result, there would be new perils of ownership affecting customers. We started out with a theft-protection program (etching) and soon added GAP and tire and wheel. Today, we offer more than a dozen programs and have more than 250 associates. We are proud to be a portfolio company of Goldman Sachs. I believe we have the sharpest CEO in our industry, Randy Barkowitz, and our senior management team has no equals.

AE: How has the company changed over the years?

Duncan: On the outside, it may look like we have changed a lot. We are a much larger organization. We have a beautiful new world headquarters, and we have many exciting new partners. This past year, Safe-Guard delivered more than two million F&I products marketed through the best general agents, national retailers and OEMs. We believe we are the very first company in our industry to accomplish this feat.

However, it is our associates’ continued adherence to the company’s core value of providing the absolute best customer service that is the key to our success. We strongly believe that as long as we continue to take care of the customer, we will continue to grow our business. We also know that we have three

customers: the distributor (agent), the dealer and the consumer. For 20 years, we have been the leader in providing world-class customer service solutions to our industry. There is a book titled “We Have Met the Enemy and He Is Us.” The theme of the book is that it is completely in our own power to do the right thing each and every day. For more than 20 years, we have done just that.

AE: What types of products and services do you offer?

Duncan: Since its inception, Safe-Guard has focused on the ancillary products sold in the F&I office. In fact, we have been the innovator of many of these products. For VSC, we are focused more on higher-mileage vehicles and

customized programs such as private-label solutions. For example, we have a complete independent dealer suite that is centered around the VSC. We also provide CPO and VSC services for some OEMs.

We are proud to say that Safe-Guard is the industry leader in the ancillary space. Think about how important ancillary is today, and consider that just 20 years ago the segment did not even exist. GAP, tire and wheel, lease wear and tear, pre-paid maintenance and theft protection products are all very important to dealers’ and agents’ bottom lines. If you have a dealer selling 1.5 F&I products per delivery, and that dealer is running 40% VSC penetration, then more than two-thirds of the products sold are ancillary. That is pretty amazing! We have always said that Safe-Guard was ancillary before ancillary was cool. We believe the expansion

of ancillary products in our industry will continue for quite some time.

AE: How do you serve the agent market, specifically?

Duncan: Safe-Guard was founded as an agent-driven company. My brother, Doug, and I were both agents before the founding of Safe-Guard. Therefore, many of the processes in place at Safe-Guard are based on the knowledge that came out of that experience. We understand that an agent’s “office window” is the windshield of his or her automobile. Sometimes things do not go as planned. You may need a form faxed, rates e-mailed or a question answered about coverage. That is why you will always be able to get a live person on the phone

at Safe-Guard. Our client relations team is there to be your back office or to provide executive assistant service.

From a technology standpoint, Safe-Guard is always advancing so that agents can bring new ideas to their dealers. Whether it be mobile apps or e-contracting, Safe-Guard believes that these benefits should be a part of the entire solution and not a part of some for-profit division. We firmly believe that the biggest differentiator for the agent in the marketplace is his or her ability to develop income at the dealer level. The OEM has struggled to provide this to the dealer. Safe-Guard University provides the absolute best training in our industry. Led by Luis Garcia, this team can provide training at any level: national, regional or at a specific dealership. Once again, there is no charge for this significant benefit. It is a part of the entire Safe-Guard solution.


Agent Summit 2013

This past year, Safe-Guard delivered more than two million F&I products marketed through the best general agents, national retailers and OEMs.


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