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DRIVINGFORCET H E N E W Y O R K

V i s i t u s a t w w w . n e w y o r k i a d a . o r g

ALSO The 3 Dimensions of Mobile Marketing for DealersPLUS Understanding Buy Here-Pay Here Customers

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PAIDDALLAS, TEXASPermit No. 2079

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A DEAL IS A DEAL?

WE ARE NOW ON FACEBOOK AND TWITTERVisit our website to “Like” us on Facebook or send us a “tweet”Twitter.com/NewYorkIADA (@NewYorkIADA)

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SEPTEMBER/OCTOBER 2011 T H E N E W Y O R K D R I V I N G F O R C E w w w . n e w y o r k i a d a . o r g

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OPOLY!NYIADA Website:

www.newyorkiada.orgNYIADA Phone:

855-NYIADA4

Dear Members and Readers,Ah, fall. While January may

be the official start of the year, to me, autumn offers an even more promising rejuvenation period – a time to edit goals and evaluate progress. With the leaves changing and kids back in school, September is the perfect month to get serious and get back on track on what is really important in the automobile industry.

Here at NYIADA, we hope you had a wonderful summer; all season long, we have been cooking up amazing offers for association members. Members should have received our Coupon Board, which I am proud to say has more than $4,000 in savings, auction coupons and services to help get you on target with fall goals. Additionally, want to welcome Auto Search Technologies (AST), STARS GPS, Bellavia, Gentile & Associates, GWC, Penn Warranty and Diamond Warranty as our Preferred Partners. Besides deals on the Coupon Board, STARS GPS is also offering $5 off each of its GPS units, Bellavia, Gentile & Associates is offering the first month free on its dealer representation program, and Dealerlaw.com/Auto Search Technologies is offering $1,000 off website design. Browsing insurance? Please visit our wonderfully updated website, NEWYORKIADA.org, and fill out the insurance questionnaire so we can give you an accurate insurance quote for all of your insurance needs. The NYIADA is making every effort to assist dealers with discounts to help you save money and time.

I have been writing to you since I became NYIADA’s executive director in February; now, I welcome all of my readers to communicate back to me. Please visit our website at NEWYORKIADA.org to mail me any thoughts, information or concerns you would like to share with me or our readers. After all, we have the same interests; together, this fall, we can make even more progress.

Sincerely, Paula FrendelNYIADA Executive Director855-694-2324

Fall into Fall with NYIADA

$4,000 in savings, auction coupons and services to help get you on target with fall goals.

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T H E N E W Y O R K D R I V I N G F O R C E SEPTEMBER/OCTOBER 2011

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INSIDE

FOR INFORMATION ON HOW TO BECOME A MEMBER OF THE NYIADA, PLEASE CONTACTPAULA FRENDEL (855) 694-2324 [email protected]

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATIONWWW.NIADA.COM • WWW.NIADA.TVNIADA HEADQUARTERS: 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR [email protected] NEW YORK DRIVING FORCE IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SER-VICES CORPORATION, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203; PHONE 817-640-3838.PERIODICALS POSTAGE PAID AT DALLAS, TX AND AT ADDITIONAL OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO NIADA STATE PUBLICATIONS, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203. THE STATEMENTS AND OPINIONS EX-PRESSED HEREIN ARE THOSE OF THE INDIVIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF NEW YORK DRIVING FORCE OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS AS-SOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NIADA, DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT (C) 2011 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED.

STATE MAGAZINE MGR./SALES Troy Graff • [email protected] Mike Harbour • [email protected]/PRODUCTION MGR. Christy Haynes • [email protected] Nieman Printing

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MAGAZINECONTENTS

ADVERTISERSINDEXADESA.................................................. Inside Front CoverAuto Use ....................................................................... 19AutoTrader.com ............................................... Back CoverCars.com .............................................. Inside Back CoverChase ............................................................................ 15Diamond Warranty Corp ................................................5Leedom Group .................................................................9Manheim.com ................................................................ 17Protective ....................................................................... 13SmartAuction ....................................................................7Southern Auto Auction .................................................. 16TD Auto Finance ........................................................... 11

6 A Deal is a Deal? 8 The 3 Dimensions of Mobile Marketing for Dealers 10 Understanding Buy Here-Pay Here Customers

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

Video Facts• More than 75 percent of Internet users

watch video online• 50 percent of consumers watch videos while

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

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

a product or service when a video is used

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

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

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

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

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

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

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

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

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

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

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

AutoTrader.com offers a personalized, video solution called FastAds that’s based on this technology. This option allows you to use vehicle photos and easily turn them into a virtual walk-around video, narrated by a voiceover with a custom script. It’s a very convenient and easy tool that can effectively showcase any vehicle you are trying to sell.

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

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

Merchandise Your Dealership in a Video, Too

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

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

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

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

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

Howard Polirer is the director of industry relations for AutoTrader.com.

He has helped train more than 10,000 dealers in over 200 cities across the U.S.

on the industry’s best practices to reach automotive consumers. He can be reached at [email protected].

Telling Your Value Story with Video

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

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www.stopcurbstoning.com

A Used Car Field Guide for Detecting Collision Repair

It used to be fairly easy to spot the signs of a collision repair: overspray, bad color matching, and misaligned body panels. Now, with computers assisting with everything from frame straightening to color matching, it’s a lot harder to tell if a vehicle has been in a collision, especially if the repair was done well.

That’s great if you want your car �xed after an accident. But it makes things hard if you’re looking for a good used car.

NOTE: We’re not saying to avoid any car that’s had bodywork. A vehicle that’s been properly and professionally repaired after a minor fender-bender could be a terri�c bargain. We are saying to watch for disparities between what a seller says and what his or her vehicle shows.

Of course, no one can catch all the bad cars. That’s why an inspection by a trusted, experienced mechanic, along with a

vehicle history report form a service like AutoCheck, are absolutely vital steps to take before payingmoney for any used car from a private party.

However, here are some quick, simple things you can watch for when you’reout looking at cars. One element on your side is simple greed: curbstoners want to maximize their pro�ts. After all, they only need to fool a buyer long enough to collect the cash. So, curbstoned cars rarely get top-notch repair treatment.

At A GlanceA walk around the vehicle in good light will often disclose whether or not a body panel has been replaced or repainted. Look at thecar from several angles to make sure the color matches across all the body panels.

Look also at the re�ections in the paint – factory paintwork is mirror-smooth, even when dirty or dinged up. Signs of repair often reveal themselves in a slightly rippled re�ection, or a re�ection that doesn’t exactly line up across two body panels. Be sure to look at re�ections from several angles.

If the car is so dirty that you can’t see re�ections, you might need to ask for the car to be washed. While you’re sighting down the sides of the car, check to make sure the body panels all �t �ush, and that the gaps between the panels are even from top-to-bottom and side-to-side.

Good places to look for paint overspray or excess paint include:

Around electrical conduits in door jambs

Near door, hood, and trunk hinges

On window and door seals

Around seals and �ttings in the engine compartment �rewall

Along the trim pieces inside wheel wells

Sun damage typically affects large body surfaces like hoods and roofs. When you see small patches of peeling clear-coat, especially in corners and other hard-to-reach areas, they may indicate a poorly prepped paint job.

At the same time, beware of too-perfect paint. Even a garaged, well-cared-for used vehicle will have small paint chips and even minor dings. If the chin fascia beneath the front bumper is pristine, it may have been recently replaced or repainted.

We know that used auto buyers today must navigate a minefield of unscrupulous sellers and haphazardly repaired vehicles. Among the worst offenders are “curbstoners” – unlicensed individuals who buy and sell used cars to make a quick buck from unwary victims.

That is why we put together a handy guide to help used auto buyers detect collision repair. “A Used Car Field Guide for Detecting Collision Repair,” is an online booklet full of useful tips for spotting subpar repair work, ensuring there are no disparities between what a seller says and what the vehicle shows.

To access the booklet, visit stopcurbstoning.com.

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

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A Dealis a Deal?B Y Z U R I C H F I N A N C I A L S E R V I C E S G R O U P

NEW FEDERAL AND STATE CONSUMER LAWS ARE PASSED

EVERY YEAR, SO IT IS IMPORTANT TO UNDERSTAND

AND EDUCATE DEALERSHIP

PERSONNEL ON HOW TO COMPLY.This Loss Prevention Bulletin is provided for informational purposes only. Please

consult with qualified legal counsel to address your particular circumstances and needs. Zurich is not providing legal advice

and assumes no liability concerning the information set forth above.

FACTS

It should be no surprise to you how many federal consumer laws and regulations affect the typical

automobile dealer. The Truth in Lending, Equal Credit Opportunity and Fair Credit Reporting acts are all too familiar. The same is true of regulations Z and B and the various Federal Trade Rules, including the Used Car Rule. Then, of course, there are state unfair business practice acts, common law fraud, misrepresentation and improper disclosure to consider.

The fact is you must be more careful than ever to ensure a deal is put together the right way. As the stack of paperwork that must be signed by your customer grows, so does the opportunity for mistakes and mistakes can cost you money – perhaps far more money than you realize. The winter issue of The Specialist reported a recent fraud and failure-to-disclose situation where a dealer’s customer was awarded $218,000 in punitive damages (not insurable in many states) as the result of a lawsuit involving damage disclosure. The customer was told the vehicle was “in perfect condition,” “had never been wrecked” and was a “one-owner vehicle.” Evidence later proved none of these assertions were true. Take appropriate measures to protect your dealership from damage disclosure and truth in lending complaints and lawsuits.

We offer the following suggestions:MANAGEMENT ISSUES• Provide extensive training to sales and F&I personnel on all consumer laws.• Have legal counsel review all sales, leasing and other applicable documents for compliance with federal, state and local laws.• Implement a vehicle sales checklist to establish standard procedures for staff.• Have customer sign or initial forms as needed.• Establish policies to address ethical business practices and ensure your management team abides by them.TRADE-INS• Perform a title search to verify mileage, past ownership and lien holders.• Develop and use a seller’s disclosure, customer title disclosure and trade-in certification or equivalent forms to document mileage, prior damage, airbag deployment, salvage vehicles, frame damage, etc.• Odometers must be inspected carefully for rollback, replacement or tampering.• Vehicle appraisers (and managers) must be diligent in evaluating trade-ins and determining prior damage manager.

AUCTION VEHICLES• Use a title search firm or state agencies to check vehicle history.• Deal with auctions that guarantee the title is free and clean.• Don’t purchase vehicles with prior frame damage.

RETAIL TRANSACTIONS• In conjunction with legal counsel, consider developing and implementing a buyer’s arbitration agreement requiring the customer to seek relief through an arbitration process in lieu of litigation. We neither recommend nor disfavor arbitration agreements. This is a business decision that only you and your advisors can make. Note: as of Jan. 1, 1999, the American Arbitration Association (AAA) will not administer an arbitration proceeding if the signed agreement does not meet minimum standards established by its National Disputes Advisory Committee. The AAA’s Consumer Due Process Protocol includes a statement of 15 principles intended to protect consumer rights.• To avoid being held financially responsible to a creditor deemed unsecured by a bankruptcy court, process the title work promptly to ensure timely perfection in all cases within 20 days after the vehicle is delivered.• If the customers’ creditworthiness is questionable, delay the delivery as the 20 days noted above does not begin until the vehicle is delivered.• Be very cautious with deals involving out-of-state paperwork or missing titles, it may be difficult to process the necessary title paperwork• Videotape the sales transaction in the business office, but only after the customer (and your employee) voluntarily agree to be videotaped. Consult your legal counsel to determine how long the tape should be kept and the potential risk of not taping or saving all transactions. While videotaping can be a good idea, it isn’t one you should proceed to undertake without careful thought of all ramifications. New federal and state consumer laws are passed every year, so it is important to understand and educate dealership personnel on how to comply. Your legal counsel and auto dealer associations are excellent resources for keeping appraised of these new regulations. Contact your local Zurich account executive for additional information on how these laws affect your business. If you have any questions or comments, contact your Zurich account executive or the Loss Prevention Department at 800-821-7803.

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FACTS

The 3 Dimensions of Mobile Marketing for Dealers

88 percent of mobile phone users said they’d be more likely to buy a vehicle from a dealer with a mobile website. Having a mobile website can significantly increase your ability to engage potential customers and sell autos. However, not having one can seriously limit your ability to compete with tech-savvy dealers.

When it comes to the design of your mobile website, simplicity is crucial. It should have minimal words and pictures. Then, visitors will feel comfortable browsing your inventory on their phones. Try using touchable text and large buttons. That’ll make it easier for visitors to ‘thumb-surf ’ through your site and contact you. Don’t hide critical information such as your phone number or email address in a graphic. Remember, visitors are likely to abandon your mobile site if they can’t easily access information they want.

If you have a mobile website but don’t feel like you’re getting enough value yet, it may pay to consider mobile marketing resources such as those offered by AutoRevo. The company’s proven techniques help dealers boost online response rates so they can sell more. For example, some dealers use AutoRevo mobile tools to help sell inventory on Facebook Marketplace or eBay. Other dealers like to track performance metrics of their mobile website and paid search campaigns to help identify areas of their business that need improvement.

2ND DIMENSION – WHY LOCAL SEARCH IS VITAL

Now that you know how valuable your mobile website can be, it’s time to start promoting it. Then, Internet search engines and more shoppers can find you online. Focus on local search marketing – it’s your best opportunity to see results fast.

Did you know researchers saw a 500-percent increase in mobile searches from 2008-2010? Not surprisingly, they found Google to be the most frequently used search engine. So make sure your dealership and mobile website are visible on Google Places. Then, shoppers can find you faster.

Luckily, claiming your business listing with Google Places is a free, straightforward process – just follow the instructions online at google.com/places. To help shoppers find your mobile site while searching, you’ll want to use keywords on Google Places such as: used cars, your city, your dealership name, and, for franchise dealers, your OEM affiliation. Also, include your

local phone number and a link to your mobile website.

You can add up to 10 photos and five videos on Google Places. Use these as opportunities to show customers why your dealership is the best place to buy. For example, the logo used by Carfax Advantage Dealers helps them stand out and build confidence with online buyers. It shows shoppers that every auto sold comes with a free Carfax Vehicle History Report. The power of a trusted brand can give you an edge over other dealers in your area.

Important: When it comes to search marketing, it’s important to avoid duplicate content between your main and mobile websites. Otherwise, it could have a negative impact on your search rankings. In other words, don’t run your mobile website on the same exact URL as your main website.

Try using variations like: m.yourdealership.com, mobile.yourdealership.com or yourdealership.mobi to make your mobile URL appear different to the search engines. Without a unique web address, your mobile site runs the risk of penalty for duplicate content by Google.

3RD DIMENSION – QR CODES AND THE FUTURE

If you’re ready to try something new, tell your marketing team to include a Quick Response (or QR) code with your next newspaper or print advertising opportunity. It can instantly turn an offline consumer into an online shopper.

Today, QR codes are one of the hottest trends in mobile marketing. These black and white barcodes are generally the size of postage stamps, and link users to mobile websites. You simply scan a barcode with your smartphone from a printed piece and are sent to a specific mobile website. It’s great for marketing because it’s a curious way to get consumers to interact with your dealership.

A relatively new technology, QR codes saw a reported 1,200-percent increase in scanning from July to December 2010. This fast and engaging marketing method could be the way you take business to the next level.

Most of us couldn’t get through the day without our smartphones or mobile devices. Yet many independent dealers haven’t even attempted to reach this massive mobile audience. With so much opportunity out there, you need the right mobile marketing strategies in place to engage a greater number of shoppers and sell more vehicles.

B Y C H A D G O O D S O N , P R O C E S S I M P R O V E M E N T M A N A G E R , C A R F A X

Did you know there are about 300 million mobile phones in the U.S. active today? That’s practically

one for every American. We rely on smartphones to help do our jobs, keep up with current events and shop for things like used autos. Indeed, phones today can do almost anything and are the constant center of attention for many of us.

The prominence of our phones provides greater opportunity for dealers to reach potential customers more efficiently and effectively. However, you need a proven search marketing strategy to successfully capture the attention of this massive audience and sell more vehicles. If you’re an independent dealer, you need to know the three dimensions of mobile marketing.

1ST DIMENSION - YOUR MOBILE WEBSITE

You need a mobile website to stay competitive in today’s used vehicle marketplace. Why? Customers expect you to have one. A recent survey showed

TO HELP SHOPPERS FIND YOUR MOBILE SITE WHILE SEARCHING, YOU’LL WANT TO USE KEYWORDS

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

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

58% Female

50% Female

39 Years Old

47 Years Old

<$50k Annual Income

>$50k Annual Income

44% Married

60% Married

Poor Credit Rating

Excellent/Very Good Credit Rating

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

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

Understanding Buy Here-Pay Here Customers2 011 B H P H B U Y E R S T U D Y F R O M A U T O T R A D E R . C O M

In October 2010 and January 2011, the National Alliance of Buy Here-Pay Here Dealers (NABD) and AutoTrader.

com teamed up for a groundbreaking study to define the consumer profile of the average BHPH customer and to understand the unique shopping needs of this customer segment. The two-part study included qualitative focus groups conducted in Los Angeles and Dallas and a national quantitative online survey among 606 BHPH buyers who purchased within the previous 18 months.

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

CONSUMER PROFILE OF THE AVERAGE CUSTOMERBHPH Buyers vs. Traditional Buyers

The FindingsFour out of five BHPH customers

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

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

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

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

First Step in the Shopping Process

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

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

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


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


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

PERCENT OF BHPH SHOPPERS REGULARLY USE THE INTERNET

BHPH

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12


Independent Auctions: The Dealer’s FriendBY JOHN POTEET, MANAGING PARTNER, LOUISIANA’S 1ST CHOICE AUTO AUCTION

More than half of the 316 auto auctions in the National Auto Auction Association

(NAAA) are independently owned and operated. Those 176 independents make up the largest group of auctions in the NAAA and include some of the most innovative, creative entities in the industry. When it comes to customer service and dealer responsiveness, this group is second to none.

Independent auctions are very similar to independent dealers because they are often family-owned businesses and may have only one location. Yet, no matter how large or small, they understand – just as independent dealers do – the importance of customer service. When dealers visit an independent auction, they are often dealing with the owner of the business; that can make a difference in how quickly issues are resolved because owners know how important it is for an independent to get things done effectively and efficiently.

Many dealers believe independent auctions may not have the technology or the products of a chain auction, but that’s far from the truth. The services offered by independent auctions rival the latest in auction offerings by the large chains. Independents offer the basic services a dealer would expect from an NAAA auction, and most offer other services such as reconditioning, mechanical work, and transportation. In addition, many offer live simulcast sales, Internet sales through OVE, SmartAuction, or OpenLane, post-sale inspections, and array of floor planning services including MAFS, AFC, and DSC among others.

The influence of independent auctions is felt throughout the industry. Owners and managers play pivotal roles in arbitration standards, industry legislation, electronic condition reports, and NAAA standards for certification. The impact of independents is so significant 10 of the last 15 and four of the last five NAAA presidents have come from independent auctions.

Louisiana’s 1st Choice Auto Auction sums up the independents devotion to service with one Cajun French word, “lagniappe.” Pronounced LAN-yap, it means that little something extra you get when doing business with a merchant. The auction adopted this philosophy when it opened for business in 2002 to convey to dealers they were more than customers, they are special. Managing Partner John Poteet also believes outstanding service begins with outstanding people, and the tradition of lagniappe is perpetuated by the employees’ drive to go above and beyond the customers’ expectations.

An important component of Louisiana’s 1st Choice Auto Auction’s success is the commitment to the latest and best technology for their dealers. Many independent auto auctions in the NAAA are on the cutting edge of auction technology which enhances the customer experience, even when the dealer can’t see the technology in action. This goes from the latest in auction software to implementing platforms such as Auction Pipeline, AWG simulcast, Auction Access, and social networking sites such as Facebook and Twitter. As technology advances, independents are searching for better and faster ways to please their customers and make their employees more efficient.

Of course, as dealers become more technologically sophisticated, auctions must respond to their needs. For example, Louisiana’s 1st Choice Auto Auction offers free Wi-Fi for dealers enabling them to use their wireless devices to get the latest information regarding in-sale vehicle information. Another important tool for buyers is the ability to buy online with a simulcast auction. However, sellers can also utilize simulcast to sell vehicles. This is a great feature allowing remote repping for dealers and institutional sellers who cannot attend the auction.

According to Poteet, dealers can still buy and sell in the lanes as always, but at Louisiana’s 1st Choice, they also have the options of using simulcast, or buying and selling 24/7 with OVE, OpenLane, SmartAuction, and Auction Pipeline. This choice of buying and selling platforms is unique to independent auctions and gives dealers a greater opportunity to conduct business than any other venue.

MANY DEALERS BELIEVE

INDEPENDENT AUCTIONS MAY NOT HAVE THE

TECHNOLOGY OR THE PRODUCTS OF A

CHAIN AUCTION, BUT THAT’S FAR FROM

THE TRUTH. THE SERVICES OFFERED BY INDEPENDENT

AUCTIONS RIVAL THE LATEST IN AUCTION OFFERINGS BY THE

LARGE CHAINS. --- JOHN POTEET, MANAGING PARTNER,

LOUISIANA’S 1ST CHOICE AUTO AUCTION

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14


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

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

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

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

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

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

While Allen isn’t planningto actually rent an inflatable

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

tasteful manner.“We’re getting a huge

archway that’s probably 36 feetwide and about 20 feet

high that isgoing to

come

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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SEPTEMBER/OCTOBER 2011 T H E N E W Y O R K D R I V I N G F O R C E

15


Edmunds.com Names Best Bets on Used Autos for 2011

Edmunds.com, the premier online resource for automotive information, released its 15 best used vehicle bets for 2011 in June. A total of 11 makes are represented on the list, with four makes (Ford, Honda, Hyundai and Toyota) each contributing two models.

BY SEGMENT, THE WINNERS ARE: •�Compact�Sedan:�2004-2009�Hyundai�Elantra•Midsize�Sedan:�2004-2009�Nissan�Altima•Large�Sedan:�2006-2009�Hyundai�Azera•Coupe:�2004-2009�BMW�3�Series•Convertible:�2004-2009�Mazda�Miata•Wagon:�2004-2009�Pontiac�Vibe•Compact�SUV/Crossover:�2004-2009�Honda�CR-V•Midsize�SUV/Crossover:�2004-2009�Ford�Explorer�•Large�SUV/Crossover:�2004-2009�Chevrolet�Tahoe�•Minivan/Van:�2004-2009�Honda�Odyssey•Compact�Truck:�2004-2009�Toyota�Tacoma�•Large�Truck:�2004-2009�Ford�F-150�•Luxury:�2004-2009�Infiniti�G35/G37�•Hybrid:�2004-2009�Toyota�Prius•Sport�Compact:�2004-2009�Subaru�Impreza�WRX

A�team�of�Edmunds.com�editors�assembled�the�list,�which�emphasizes�the�most�important�criteria�to�consider when researching and deciding on a used vehicle:�reliability,�safety,�value�and�availability.�Eligibility�was�limited�to�vehicles�ranging�in�age�from�2�to�7�years.

For more details on Edmunds.com’s selection process and for a brief description of all the cars on this year’s list, visit 2011 Used Car Best Bets at www.edmunds.com/car-reviews/best-used-cars.html.

Results from ShipCarsNow’s 2011 survey of independent and franchise auto dealers show dealers

want more auto transport options when buying vehicles online from wholesale auto auctions.

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

So, what does this mean for online and simulcast auto auctions? ShipCarsNow reports 63 percent of dealers surveyed said they think online auto auctions should improve transportation options. Almost half said they would purchase more vehicles online if auctions improved auto transport services and increased reliability

of condition reports. Suggestions that ranked highest included providing the transportation cost before or during the bidding process and the ability to see discounts for multiple vehicle shipments, as well as the ability to combine vehicles with other dealers’ for economies of scale. Dealers also reported they’d like to see multiple auto transport bids, and that price and reliability are key requirements for any auction offering auto shipping services.

So, what is the bottom line? Like any savvy consumer, auto dealers want options. They want to shop where they want, and when they want. They want vehicles delivered safely, timely and economically. And they want the transaction process to be intuitive and hassle-free. Innovative auto transport companies and online auto auctions need to collaborate to develop the tools and services that dealers need. For more information about ShipCarsNow’s 2011 Dealer Survey, visit www.ShipCarsNow.com; the complete survey report will be available soon.

FAQS

Dealers Want Better Auto Transport Options from Auto Auctions

SO, WHAT IS THE BOTTOM LINE? LIKE ANY SAVVY CONSUMER, AUTO DEALERS WANT OPTIONS.

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16


A Message from the Vice President

Dear Dealers,

My�name�is�Patrick�Leary�and�I�am�the�owner�and� operator� of� Pat� Leary� Motor� Cars� Inc.� in�Upstate�New�York,�just�outside�Buffalo.�I�am�very�happy�to�be�teaming�up�with�your�other�executive�officers�here�at�New�York�IADA�as�vice�president.�My� goal� is� simple:� create� awareness� for� our�organization�with�the�independent�dealers�in�the�Upstate�area�of�New�York.

Please� take� a� few�moments� to� log� onto� to�our fantastic website at www.newyorkiada.org. You�will�see�and�be�amazed�of�the�opportunities�that�await�you�by�becoming�a�member�now.�Pat�Leary�Motor�Cars�Inc.�has�been�a�long-standing�member�since�the�early�1990s.�This�organization�has done so much to help me navigate through these quickly changing times. Change is constant�and�our�organization�will�help�lead�the�way. They have done it for me and they will for you.�NYIADA,�together�with�National�IADA,�will�be�a force you can lean on as you look for guidance to stay competitive in today’s market.

The�member�benefits�are�plentiful�as� I�have�already�taken�advantage�of�many�of�them.�You�can, too!

You�get�$3,500� in�member�benefits� just� for�joining.�This�coupon�book�is�filled�with�items�you�normally pay for but are free through some our partners throughout the state. This is a huge return�on�your�$350�annual�membership�fee.�As�dealers,�we�all�like�deals�and�this�is�a�deal.�It’s�a�no-brainer.

Education� is� available� on� NIADA.TV.� It’s� all�there for you to see when you have the time to view it. The education there is second to none.

We� have� a� partnership� with� companies�such�as�Auto�Zone.�My�dealership�buys�lots�of�parts from them each month. Their discounting program�gives�us�plenty�of�opportunity�for�profit�on repairs completed in our repair shop. They have�great�service,�too.�We�are�online�with�them�and we’re seeing plenty of time savings for both our�techs�and�our�office�staff.�This�is�good!

Auto� Search� Technologies� is� working� on� a�project�to�increase�web�traffic�to�member�dealers�here�in�New�York�with�no�monthly�fees!�This�is�real good! Take a look at www.newyorkiada.org. It� is� new,� fresh,� and� amazing.� You,� too,� could�have one like this at a deeply discounted price. I� have� one� at� www.patleary.com,� so� take� a�look�at�it.�This�site�consistently�drives�traffic�to�our�store.� I� get� compliments�all� the� time� from�customers at ease of searching through our inventory.�Video�is�here.�I�am�working�quickly�to�bring�video�to�our�inventory.�I�am�excited�about�that upcoming opportunity, too.

We�also�have�other�partners:��(A)�GWC�Warranties��(B)��Group�Medical�Plans��(C)�Workmans�Compensation��(D)�Floor�Plan�Assistance��(E)�Credit�Card�ServicesPat� Leary�Motor� Cars� Inc.� just� saved� $800�

this year on our credit card fees through our partner�Solveras.�It�was�easy�to�change�as�they�provide�great�back-up�service,� too.�This�was�a�good move!

Dealers,� we� are� just� getting� started.� Paula�Frendel,� our� executive� director,� and� Fred�Donnelly, our president, are both working closely with vendors, auctions, and banks Downstate to bring them on board. There will only be more benefits� to� you,� the� dealer.� This� is� happening�and�I�am�excited�as�you�should�be,�too.

So,� as� you� read�my�message,� you� can� see�there is plenty of opportunity for all of us. The first�step�is�to�check�out�www.newyorkiada.org.�Look�at�the�opportunities�for�yourself.�I�know�you�will� join.�We�need�you�to�make�this�state�work�for all of us!

In�closing,�I�am�truly�excited�to�be�a�part�of�this�team.�As�I�wrote�earlier�my�goal�is�simple:�create�awareness for my fellow state dealers and they will�come.�I�ask�you�to�join.�This�will�be�the�best�decision you will make for your dealership this year.� I� joined�back�in�the�early�1990s�and�can�truly�say�my�relationship�with�both�NYIADA�and�NIADA�have�been�so�rewarding.�I�have�survived�and�thrived�through�the�guidance�I�have�gotten�from� them.� I� thank� them� for� this� and� I� thank�them for the opportunity to serve as your vice president.

Best�regards,Patrick�LearyPat�Leary�Motor�Cars�[email protected]

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17


Identity Theft Prevention A Good IdeaThe Red Flags Rule requires many

businesses and organizations to implement a written identity theft

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

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

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

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

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

TO READ ADDITIONAL FAQS REGARDING THE RED FLAGS RULE, VISIT THE FTC’S SITE ON THE SUBJECT AT HTTP://WWW.FTC.GOV/BCP/EDU/MICROSITES/REDFLAGSRULE/FAQS.SHTM.

FAQS

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18


Chances are your business has a business plan, a plan that describes your products, distributions channels,

marketing strategy, and revenue goals, among other things. A business plan helps you maximize the profitability of your business.

Whether you are aware of it or not, you also have a business succession plan for your business. A business succession plan is a roadmap for the transition of ownership and management of your business following disability, retirement, or death. While a business plan maximizes the profitability of your business, a well-crafted business succession plan maximizes the value of your business at the time of transition.

The challenge is, in the absence of thoughtful planning, the value of your business at the time of transition is likely to be much less than you hoped. Also, without a well-planned transition, there is a risk your business interest will end up in the hands of someone other than intended.

TRIGGERING EVENTSEvents such as disability, retirement, and

death are often referred to as triggering events. That’s because these events are so dramatic they trigger change, planned or unplanned. Understanding the natural consequences of these triggering events is often a prime motivator in developing a formal business succession plan.

Disability: The occurrence of a long-term disability – a disability lasting six months or more – that affects a small business owner impacts not only the financial well-being of the owner’s family but also the continuity of the business. In many cases, the owner is also a key employee. If an owner becomes unproductive due to disability, there may be insufficient cash flow to continue his or her salary. Even if the business is financially able to continue salary, court cases have held that, in the absence of a pre-disability salary continuation plan, payments to disabled owners may be considered non-deductible dividends rather than deductible compensation.

But, even deductible salary continuation payments to a disabled business owner are likely to create a strain on the business in the long-term. Healthy business owners may become resentful as they search for a replacement for their disabled colleague while struggling to grow the business in his or her absence. If it becomes apparent that the disabled owner is unlikely to return to work or return to work at full strength, the

healthy parties may negotiate a purchase of the disabled owner’s interest. Unfortunately, a disabled owner with dwindling resources is hardly in a position to drive a hard bargain. And, the healthy owners may face difficulties getting financing for the buyout if revenues are down.

Retirement: The retirement of a small business owner creates parallel concerns. Unless a pension, profit-sharing, or 401(k) plan is in place, the owner cannot count on an employer-sponsored retirement plan as a source of retirement income. Also, because the net worth of many business owners is tied up in their business, the owner may be unlikely to have substantial personal savings and investments to rely on in retirement. Consequently, it is often necessary to sell the business to achieve retirement income goals.

Unfortunately, although small businesses are often cash cows while the owner is healthy and working, finding a buyer that understands the business well enough to continue it profitably and pay fair market value for it can be a challenge.

Death: Upon the death of a business owner, the business interest becomes a probate asset similar to marketable securities, real estate, and household items. If the owner has a will, the business interest passes to the named beneficiary or as part of the residual estate. If the owner lacks a will, the business interest passes to his heirs under the laws of intestacy. A common disposition pattern calls for a portion of all property to pass to the surviving spouse and children.

One concern is that, following the death of an owner, surviving family members usually need cash, not stock certificates evidencing ownership in a small business that probably does not pay dividends to inactive shareholders. Again, finding a qualified buyer – one with financing or cash who is willing to pay a fair price – may be difficult.

Bottom Line: Whether the transition is triggered by disability, death, or retirement, in the absence of a formal business succession plan, the “plan” is uncertain income continuation for the owner or his or her heirs, uncertain tax consequences to the business, and diminished business value.

0200138-00001-00, Ed 04/2011, Exp 10/22/2012Provided courtesy of Prudential. For more information, contact Kerri Allard, a financial professional associate with The Prudential Insurance Company of America’s agency located in Marlborough, Mass. She can be reached at 508-382-4929.

Small Business Financial Tune-Up: Business Succession Plan

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19


Red Flags Rule Procedures, SSN CollectionThe Red Flags Rule doesn’t require

any specific practice or procedures for your identity theft prevention

program. It gives you the flexibility to tailor it to the nature of your business and the risks it faces. The FTC will assess compliance based on the reasonableness of a company’s policies and procedures. Businesses with a high risk for identity theft may need more robust procedures – like using other information sources to confirm the identity of new customers or incorporating fraud detection software. Groups with a low risk for identity theft may have a more streamlined program; for example, simply having a plan for how they’ll respond if they find out there has been an incident of identity theft involving their business. The FTC has designed a form to help groups at low risk

for identity theft put together a program. It’s available at www.ftc.gov/redflagsrule.

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

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

FAQS

WHETHER YOU COLLECT SOCIAL SECURITY NUMBERS OR OTHER INFORMATION TO VERIFY A CUSTOMER’S IDENTITY DEPENDS ON THE NATURE OF YOUR BUSINESS AND THE RISKS YOU FACE.

Small Business Financial Tune-Up: Business Succession Plan

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20


There�is�a�rumble�in�the�Bronx�and�it’s�not�a�motion�picture�sequel�starring�Jackie�Chan.�The�dealers�of�New�York�have�spoken�and�NYIADA�has�listened!�Located�in�the�Bronx,�the�association�is�growing�at�a�viral�rate,�and�to�better�serve its members, we have launched a brand new website to keep dealers informed of the constantly changing rules and legislation in the independent automotive community.

NYIADA�cares�about�the�community�and�in�partnership�with�NIADA�is�pleased�to�announce�the� launch�of�www.NewYorkIADA.org.�The�completely� redesigned�site,�created�by�Auto�Search�Technologies�Inc.,�embodies�the�dedication�and�fo-cus�of�the�NYIADA�team�is�to�ensure�independent�dealer�members�have�access�the latest news and information to help them advance in today’s marketplace. NYIADA�is�on�your�side�and�we�look�forward�to�proudly�serving�you!

The association acts as a voice of the independent automobile dealers all across�New�York�State.�If�you�would�like�to�be�a�part�of�something�bigger�than�just�business,�we�urge�you�to�join�NYIADA�and�become�an�integral�part�of�help-ing your business, helping your communities and your families alike.

With�numbers�comes�strength,�and�together�as�a�team�of�like-minded�suc-cessful business owners we will succeed as an industry.

How Do I Get Involved?If�you�are�not�already�a�member�of�NYIADA,�joining�is�simple�and�there�are�

lots�of�benefits�that�come�with�it.�We�have�a�registration�form�on�our�site�that�makes�joining�a�breeze.�In�addition�to�more�than�$3,500�in�auction�coupons�and�membership�discounts�in�New�York,�New�Jersey�and�Pennsylvania,�you�also�receive:

1.Thousands of dollars in discounts yearly off of the products and services you use everyday via NIADA’s special member benefit programs it has devel-oped with many industry vendors.

2.Protection for your business through NIADA’s legislative program that moni-tors and protects used motor vehicle dealers with Congress, the IRS, NHTSA, FTC, and others.

3.Valuable educational opportunities with free access to more than 450 hours of dealer education on NIADA.TV, education and networking at NIADA’s Annual Convention & Expo, and access to NIADA’s Certified Master Dealer program.

4.Used Car Dealer Magazine, a member-only benefit, that provides industry news, columns and features all designed to help you maximize your profit-ability.

5.Prestige and professionalism to customers by placing your NIADA Member sticker in your dealership window.

6.Alerts about laws that may be headed your way through NIADA’s many chan-nels of communicating late breaking news to members.

7.An invaluable resource for expert advice on financing, marketing, taxes, legal matters, and much more!

8.A safe and nationwide network of thousands of used vehicle dealers who want to see your business succeed!

9.A strong voice in the only national organization which speaks for the used motor vehicle industry.

10.A leg up on your competition, and prove to your community and your cus-tomers that you strive for the best and abide by the high business standards set forth by NIADA.

With�a�membership�in�NYIADA,�you�can�keep�your�dealership�updated�with�the�latest�information�to�help�your�business�grow.�With�the�Internet�constantly�offering new information, you must always be able to keep up with the fast pace.

Marketing�techniques�and�business�practices�that�have�worked�to�make�to-day�doesn’t�necessarily�mean�they’ll�continue�to�work�tomorrow.�It’s�so�impor-tant�to�have�new�information�and�technology�as�well�as�an�organization�behind�you�to�make�sure�success�is�in�your�future�and�not�your�past.�We�will�help�em-power our business with the best tools in today’s market to make a difference in today’s economy.

Although you may feel you can survive alone in today’s automotive market, together we have a stronger voice and can work together to strive for success.

If�you�are�an�independent�dealer�in�New�York�and�would�like�to�increase�your�business,�then�get�involved�with�NYIADA.�Simply�visit�www.NewYorkIADA.org�and�click�on�Apply�Now�to�join�today!��

NYIADA Launches

Dynamic New Website

NYIADA cares about the community and in partnership with NIADA is pleased to announce

the launch of www.NewYorkIADA.org.

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MEMBERSHIP APPLICATION

It is important to me to be recognized as a professional! Enclosed are my annual dues of $350 to make sure that my business has all the advantages the NYIADA provides to put me at the forefront of my profession. By completing this form, I am consenting to and giving NYIADA, its affiliates and subsidiaries, my permission to contact me and provide information to me at the mailing and email addresses, telephone and fax number(s) I have provided. Business Name: _________________________________________________________ Contact Person: _________________________________________________________ Mailing Address: ________________________________________________________ ________________________________________________________ Physical Address: ________________________________________________________ (if different from mailing) ________________________________________________________ Phone: ____________________________ Fax: ____________________________ Email Address: __________________________________________________________ Website Address: ________________________________________________________ Dealer License Number: ________________________ How did you hear about NYIADA? _________________________________________ Please mail application and $350 check or money order made payable to New York Independent Automobile Dealers Association (NYIADA) to the address above.

Thank you for being a member of NYIADA! “Individually we struggle to be heard, collectively we cannot be ignored.”

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

5 6 5 H u n t s P o i n t A v e . | B r o n x , N Y 1 0 4 7 4 8 5 5 - 6 9 4 - 2 3 2 4 ( N Y I A D A 4 ) | F a x 7 1 8 - 3 2 8 - 1 4 4 5

p a u l a @ n e w y o r k i a d a . o r g w w w . n e w y o r k i a d a . o r g

n y i a d a . p f r e n d e l @ g m a i l . c o m

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As an attorney, I find that many people are surprised to learn I am also a magician. It’s a fun and challenging hobby that can offer good lessons. For example, you quickly learn that things

are not always what they seem. To master most techniques, you need to clearly understand what’s happening beyond the visual component.

This lesson also applies to regulatory compliance. For dealerships, it particularly rings true when it comes to relationships with third-party service providers and their products. A company might appear to be reputable on the outside, but it could be just an illusion.

There are risks involved with all third-party relationships, whether they involve backend products dealers sell to buyers, such as credit life insurance, GAP insurance, extended warranties or service contracts, or operational products dealers buy or license from third-parties, in-cluding consumer credit information, loan documents or software.

One risk with third-party relationships is whether the vendor un-derstands and satisfies its unique regulatory compliance requirements. As a dealer, do you understand where your responsibilities end and the vendor’s begin in terms of service, performance and providing any required disclosures? A vendor’s compliance failure may ultimately cause your dealership to be out of compliance too. So how do you pro-tect your dealership’s reputation and ensure your vendors understand and are focused on compliance? Here are some questions to consider in the due diligence process:

• Does the vendor stand behind its products and services with a warranty or other written representations?

• Does it have stable management and finances to support its obliga-tions to you and your customers?

• Does its business history suggest that it will be around several years from now to fulfill its promises?

• Does it have a customer service area that is responsive to customer questions and problems?

• Does it understand the laws and regulations that apply to its prod-ucts and services? For example, does it know whether its product is considered insurance in your state? If it is an insurance product, is the vendor licensed to sell that particular type of insurance in your state?

• Is the vendor current on law or regulatory changes that affect its products and services (are its marketing materials and customer contracts in compliance and up-to-date)?

• Is the vendor the subject of any complaints to regulators, investiga-tions, and/or is it involved in any serious litigation?

Dealers want to make sure their customers are getting the best ser-vice possible, and regulatory compliance issues can greatly impact that goal. Third-party providers may have relationships with hundreds or thousands of dealerships. Their offerings may include a number of products in multiple states, which can increase the chances for error or oversight.

In a regulatory environment that’s constantly changing, the dealer needs to confirm that its vendors are keeping up with state and federal laws. A third-party provider might say the magic words you want to hear, but it’s up to you to make sure it’s not hocus-pocus.

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

What You See Isn’t Always What You GetFREE

DEALER EDUCATION ONLY ON NIADA.TV24/7

Watch where you

want......when you want

Sales • Operations • F&I • Remarketing •

Compliance • Legal/Regulatory

• Special Features • Industry Events

PLUS: Automotive Industry News &

Special Monthly Programs

www.niada.tv

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