Oregon Dealer News March 2011 www.oiada.com - 1-800-447-0302 www.oiada.com 800-447-0302 Oregon Independent Automobile Dealers Association July 2012 Representing all Auto, Truck, Trailer, RV, and Power Sport Dealers of Oregon An Inside Look Into a Changing Market [p16] Ask Val [p17] The Heat is On [p18] EXPECT MORE WITH MANHEIM Tuesdays starting at 8:30 am HONDA ▪ INFINITI ▪ KIA ▪ DODGE ▪ CHRYSLER ▪ JEEP ▪ YAMAHA ▪ f irst tech c r e d i t u n i o n Airfare and Hotel Assistance Available. Ask for Details. 3000 N Hayden Island Drive Portland, OR 97217 503.286.3000 www.manheim.com Sales every Tuesday starting at 8:30 a.m. SIDE Political Action Committee . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 1 THIS ISSUE Shifting Gears with the President. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 3 Welcome New Members! .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5 Service Department Loyalty . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 7 Certified Pre-Owned . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..10 New Quarterly Education Schedule .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 14 The Importance of Salespeople . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..15 Older Drivers Push Industry Recovery . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..16 Ask Val . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..17 The Heat is On . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..18 PolitiCal Read and Respond . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..20 Action Committee OIADA must be a constant presence in monitoring current legislation within our state. We need to interpret legislative activity that may impact our industry. It is the association’s responsibility to maintain an ongoing relationship with governmental officials and regulatory agencies. Your voluntary PAC contribution helps our legislative representatives work for you, the independent auto dealer. OIADA has worked on many issues affecting dealers such as stopping the 3 day right of rescission, getting temporary motorcycle permits that actually fit on the rear plate area, extension of DEQ slips from 90 days to 180 days, all new broker disclosure forms, new silver dealer plate that makes us really look like a dealer, opposing no sales on Sunday, saying no to a big increase in DMV fees, as well as ongoing dealings with regulatory agencies, just to mention a few. An added benefit to making a political contribution is the Oregon Tax Credit. You can take this directly off your state tax liability. The credit is $50 for an individual and $100 on a joint return. We thank you for understanding the importance of a strong presence within our Legislature. Please remember the next time you renew your membership to consider your PAC contribution. 2012 OIADA Executive Committee Gary Sargent, President Sargent’s Motorsports 10207 SE Foster Road Portland, OR 97266 503-775-9445 Fax 503-777-9886 Cell 503-969-5228 [email protected] Dan Nicholson (CMD), Executive Vice President Central Oregon Motors 1123 N 6th Street Redmond, OR 97756 541-923-3961 Fax 541-923-3964 [email protected] OIADA Staff Wendy Riggi, Office Manager [email protected] Valerie Dominici Dealer Relations [email protected] Bryan Steward, 1st Vice President AAA Oregon AutoSource 6 SW Centerpointe Dr. #100 Lake Oswego, OR 97035 503-973-6570 Cell 503-709-3835 [email protected] Doug Blizzard 2nd Vice President Blizzard Motors, Inc. 1604 E. Burnside Portland, OR 97214 503-238-5510 Fax 503-238-3838 [email protected] Tommy Wilson Secretary Tommy Wilson Motor Company, LLC/ 9215 SW Canyon Rd. Portland, OR 97225 503-629-6000 [email protected] Committee Chairs Legislative: Lisa Larkin Education: Vince Powell Image: Tom Collier Membership: Brian Hardy Past Presidents: Glen Rardin Oregon Dealer News is a publication of the Oregon Independent Auto Dealers Association, 1475 Capitol St. NE, Salem, OR 97301 and is published every month. The association was established in 1948, chartered as a non-profit organization in Oregon and is affiliated with the National Independent Auto Dealers Association. Advertising rates may be furnished upon request. ~ The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of the Oregon Independent Auto Dealers Association. Likewise, the appearance of advertisements or the identification as members of OIADA does not constitute endorsement of the products or services featured. *For advertising information please contact OIADA at 800.447.0302 2 | OIADA July 2012 “Shifting GEARS” With the President It has been said many times “What happens in Vegas stays in Vegas!” Gary Sargent Sargent’s Motorsports 503-969-5228 Well I’m guilty of breaking that spoken rule as I came back from the NIADA convention in my opinion a smarter, more educated dealer. Not only smarter in the way I do business but more importantly educated with how valuable our relationship with NIADA is to Oregon Dealers and especially my fellow OIADA members. NIADA has lobbyists and attorneys in Washington DC watching our backs at the federal government level, addressing any issue that affects our industry, something we alone could not achieve. OIADA has an even closer relationship with NIADA as I was nominated and elected to the position of Region 4 NIADA Vice President by all the attending states representatives. I will not only represent Oregon at the national level, but I will represent Washington, California, Idaho, Montana, Wyoming, Colorado, Utah, Arizona, New Mexico, Nevada, Alaska, and Hawaii Independent Dealer Associations also. My fellow Oregon Dealers that attended the convention were treated to several business enhancing seminars, networking social events every evening, a vender expo that had it all; if it related to our industry it was there and not to forget a televised National Quality Dealer Awards event mirrored after the Academy Awards. Our 2012 State of Oregon Quality Dealer Tommy Wilson was one of only 23 Quality Dealers nationally recognized at this prestigious event. Though Tommy did not win the national title, after hearing his bio read by Michael York, the evenings MC, it was evident Tommy was a top contender for the National title and true testament to why he was chosen the State of Oregon’s 2012 OIADA Quality Dealer. You can go to www.niadatv.com and view the 2012 National Quality Dealer Awards. FOUR THINGS ABOUT NIADA AND YOUR OIADA MEMBERSHIP 1. OIADA is the ONLY Oregon Independent Dealer Association recognized and partnered with NIADA 2. As a member of OIADA you are also a member of NIADA 3. As a member of OIADA you are entitled to all the member benefits given by NIADA 4. OIADA, like NIADA, is a Non-Profit Association owned by its member dealers, unlike other Oregon Dealer Associations that are privately owned and for profit. Any Questions remember to Ask Val or myself, as my car door is always open 503-969-5228 Sincerely, Gary W. Sargent OIADA President NIADA Vice President Region 4 OIADA July 2012 | 3 Is Proud To Be In Oregon! 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January April Auto Leasing Company Affordable Luzuries Commercial Industrial Auctioneers Cars Buying Service D & C Motors Mirareed - USA Midtown Auto Sales Oregon Coast Auto Portlandia Auto Sales Precision Motors Topline Auto Sales & Detail Unique Auto Group LLC Urymann Auto Group May Westside Auto Sales All Star Dealer February Cars for Kids Foundation Amina’s Auto Place Grand Prix Motors LLC Carl’s Motors Jordan Motorz LLC Carnack Northwest Lebanon Auto Brokers MAC Auto Center Walt Johnson Auto Sales Vercoe Yacht Sales March A-1 Auto Adventures Inc. Benjamin Auction Service Cascade Auto of Springfield Kevin Hoover Wright Auto Locating, LLC Get the Most out of Your OIADA Membership Visit www.oiada.com to connect with other members, get news updates and more! OIADA July 2012 | 5 Creating and Keeping Loyal Customers for Your Service Department Once again, the age-old question has emerged: How can we improve customer loyalty in the service department? much longer lasting impression. And even better, emotional wows don’t cost nearly as much as investments like a coffee bar. Before providing some answers, consider an important point. In order to improve loyalty, we need to understand why customers aren’t returning to the dealership for their service needs. Emotional wows reflect the overall feeling and vibe of the store from a personal perspective. They are reflected in the way the service staff greets and treats the customer during the visit and the relationship that develops during subsequent interactions. Dealerships have tried to improve customer retention in their service departments since the day they first opened. While some dealership customers maintain their own vehicles or perform their own repairs, most choose to take their car to an aftermarket facility. Initially, vehicle manufacturers recognized this problem and determined that as manufacturer vehicle warranties increased, so would service department loyalty. At one point, new vehicle warranty terms were one year or 12,000 miles, with a 90-day adjustment period. These days, warranties have extended to two years/24,000 miles or three years/36,000 miles and some extend as far as 10 years/100,000 miles. Still, even with the longer manufacturer warranty terms, service department loyalty hasn’t increased. Dealerships have tried numerous strategies to increase customer loyalty. Direct mail campaigns, upgraded and/ or remote service facilities, lifetime oil changes, quick lube centers, discounts for seniors or other targeted groups, new owners clinics, courtesy shuttle services and birthday reminders are just a few of the ways dealers have attempted to hold onto their customers. Today some dealerships even provide coffee bars, workout facilities, spa services, or putting greens in an attempt to keep and draw more customers. Despite all those efforts, according to DMEautomotive, 69 percent of customers defect to aftermarket centers within the first three to six years of vehicle ownership. That number jumps to 87 percent by year seven. So if all those innovative strategies don’t generate customer loyalty, what does? When it comes to making an impression with customers, there are two types of “wow” factor – physical wows and emotional wows. Typically, dealerships have focused on physical wows such as free car washes, discount coupons or fancy coffee bars. While physical wows make a great impression the first time you offer them, their impact is very short-lived. After the first experience, a physical wow loses its punch and customers either don’t notice or worse, simply expect that wow to always be there. So the one time you forget to offer the free car wash with a service, or the coffee bar is closed, the customer becomes upset, because they now take those “special” services for granted. Emotional wows help personalize the customer’s service experience. By building a relationship, emotional wows help a dealership retain that customer as a long-term client. However, before we can delve into customer loyalty and the impact of emotional wows, we need to understand why customers leave a dealership in the first place. Is it price? Convenience? Lack of trust? Does the process take too long? While it might seem there are many reasons customers leave, according to studies the primary reason customers take their repeat business elsewhere is a feeling of indifference. Customers’ think the business doesn’t care or is indifferent to them so they have no real attachment to that store. “According to Emotional wows, on the other hand, have a studies the primary reason customers take their repeat business elsewhere is a feeling of indifference.” That might get dealers wondering. Indifference? We aren’t indifferent to our customers. We are police, professional, and courteous. Our customer satisfaction (CSI) scores are always good, our surveys tell us we are doing a great job and we genuinely care about our customers. continued on p. 8 OIADA July 2012 | 7 Most dealerships believe they are treating their customers well. But let’s take a minute to examine other areas of the service industry. Restaurants and hotels often treat customers in ways that demonstrate indifference. For example, when you arrive at one of these establishments you are almost always greeted with the words, “Can I help you?” Obviously, if you are in a restaurant you are there to eat. At a hotel, you are usually there to check in. of the waiting room, then moves on to the next waiting car. Once again, polite but indifferent. “Can I help you?” and it also lays the foundation for a relationship with the customer. After the customer waits for an hour or so in the crowded service department waiting area, the service advisor finally enters and calls out, “Mr. Smith? Mr. Smith?” From the customer’s perspective, that simple and innocent call means that the service advisor didn’t remember his name even though he was in his office only an hour before. Similarly, if the service advisor involved the customer in the walkaround instead of sending him or her off the office, the customer would feel included in the process. The service advisor could also escort the customer to the waiting area and make sure the customer didn’t need anything else before leaving him. And obviously, the service advisor should remember the customer’s name later on. Since the reason for your visit is apparent, instead of asking if you need “help,” it would be better to welcome you first. Think about five-star hotels and top-notch restaurants. They welcome you first and treat you in a way that generates your loyalty. On that note, let’s look at typical dealership service departments. At most dealerships, customers pull into the service lane, get out of their car and wait. And wait. After a minute or two (or longer), a service advisor or greeter finally approaches, saying, “Can I help you?” or “Do you have an appointment?” These greetings are polite and professional but somewhat indifferent. Once the customer states the reason for his or her visit, the service advisor generally directs the customer to his office and politely asks the customer to wait while he obtains the vehicle’s data. Once the customer walks away, the service advisor gets the information and performs a walkaround before re-joining the waiting customer. Again, polite and professional, but from the customers stand point, indifferent. The service advisor is focused on the car, not on the customer. After completing the vehicle writeup, the customer opts to wait for the vehicle maintenance or repair to be completed. The service advisor politely points the customer in the direction 8 | OIADA July 2012 Service departments think that by simply being polite, professional, and courteous, they are not being indifferent. However, the above example illustrates that isn’t the case. In order to create long-term customer loyalty, service personnel need to understand and acknowledge how they might be sending a message of indifference to their customers every single day. Instead, they should start using relationship marketing strategies designed to turn a customer into a friend. Service departments should strive to turn all of their customers into friends – friends who would even consider doing business with anyone else. What if instead of asking the customer when he arrived, “Can I help you?” the service advisor or greeter instead said “Good morning, welcome to ABC Motors! My name is Bob, and your name? …Mr. Smith, how can I assist you today?” This greeting is much more welcoming than a simple When you invite a friend over to your house for dinner, do you send him off to the dining room to wait while you prepare the meal? No, you include him in whatever you are doing. Maybe he stays in the kitchen while you finish cooking, discussing ether the meal itself or another topic of mutual interest. And once dinner is over, you thank him for coming and say you hope to get together soon. Your friend leaves happy and reflects fondly on the experience. Service advisors should view the service department as their “home” and welcome their customers as friends. Customers need to be welcome in the same way we would welcome friends into our home. Service advisors need to learn customers’ names and use them often. They should take the time to get to know their customers by using such clues as bumper stickers on the vehicle or by simply asking customers how they use their cars, and engage customers in conversation during the write-up process. They should also include customers in the process as much as possible. Remember, turning a customer into a friend means making the transaction about the customer, not about the car. We have all heard the saying, “Sales sells the first vehicle. Service sells the rest.” Service advisors see dealership customers more often than anyone else in the store, so the ability to create long-term clients falls heavily on their shoulders. Even though discussing the necessity of their roll and using terms like relationship marketing are important, the fact remains most service advisors nee defective training to truly impact customer loyalty. But what type of training do most dealerships provide their service advisors? Most service advisor training is limited to topics like how to work the dealer management system (DMS) and understanding their pay play. Training focuses on topics such as hours per repair order (RO), labor rates, CSI and work flows. Very few service advisors receive more than manufacturerrequired training on topics that impact customer service or loyalty. And that limited customer service training rarely addresses such topics as customer hecht_autoins_ad_final_out.indd 1 indifference or the need for a cultural change. In order to truly impact customer loyalty, it’s time to focus on customeroriented training. The training should be formal classroom training, which demonstrates its importance, and managers should be required to attend. Key discussions during training should focus on dealership efforts that were unsuccessful in retaining customer loyalty. Service personnel need to understand and embrace how they are perceived by customers today and the feelings of indifference they might be sending. They need to learn how to change their behavior in order to truly impact that relationship. Those messages not only need to be conveyed during training, but after the fact, there should be constant reinforcement in the service department. The sales department has dialing meetings to reinforce its sales message and goals. The same should hold true for service. To make an impact in the long term, that consistent reminder of how to interact with service customers needs to be there. Dealerships have worried about how to increase customer loyalty since the establishment of the first service department, and they have tried – often unsuccessfully – many ways to improve it. By incorporating relationship marketing into the service department’s culture and providing proper training on the approach, dealerships should experience improvement in customer satisfaction and loyalty. For more best practices and the latest news from the used-car industry, visit www.AutoRemarketing.com and subscribe to our lineup of daily and weekly e-newsletters. Subscriptions can be added and managed at http:// subscriptioncenter.autoremarketing.com. Questions, concerns, comments and story ideas can be sent to Auto Remarketing editor Joe Overby at joverby@ autoremarketing.com. OIADA July2/3/11 2012 | 9AM 10:23:10 What You Should Know About CPO Vehicle Programs NIADA Certified Pre Owned Vehicles Program As an independent used vehicle dealer, you are likely aware of the recent trend in the automobile industry toward selling certified preowned vehicles. The trend began with manufacturer-backed programs for new vehicle franchised dealers and has expanded into the independent used car segment. community. - I mproved gross revenue and increased profitability created by the sale of more vehicles. -T he ability to compete with franchise dealerships that offer CPO programs - An edge on the competition. - I ncreased customer satisfaction and confidence. The vehicle is normally designated as “certified” after undergoing a thorough inspection of key components for both functionality and safety, and completing the needed repairs and reconditioning. Most CPO programs require that the vehicle meets safety and mechanical standards and has a clean title, assuring the potential buyer he is purchasing a safe and dependable vehicle that is a step above a typical used car. The program generally includes a mechanical breakdown warranty for a specific term and most provide extended coverage options. The programs generally include a mechanical breakdown warranty for a specific term and most provide extended coverage options. You might even have found it difficult to compete against dealers selling a certified program, even with a price advantage, because consumers seem willing to spend more for a vehicle that has been certified and comes with some term of mechanical protection coverage. So what are the advantages to you, as an independent dealer, of selling CPO vehicles? There are several: -O ffering a product and service the car-buying public is eagerly looking for. -A n enhanced image in your 10 | OIADA July 2012 CPO is very much the cutting edge of the used auto industry. Sales are growing rapidly. As reported in Auto Remarketing, CPO sales reached 174,471 vehicles in March, the most certified units ever sold in a month, according to the latest numbers from Autodata Corp. That closed the best quarter ever for CPO sales – a record 454,944 vehicles sold in the first three months of 2012, up 8.4 percent from the first quarter of 2011. In its 2010 Used Vehicle Market Report, J.D. Power and Associats found 67 percent of all used car buyers began their purchase process planning to buy a certified vehicles, and 21 percent of CPO buyers were not originally looking for a certified vehicle. Given the obvious consumer interest in them, it’s no wonder CNW Marketing Research found certified vehicles turn almost 20 days faster than non-certified, with an average 24.8-day turn. CNW’s March statistics also chowed CPO sales provide dealers with 12 percent to 17percent additional profit – an average of $2,274 per unit – versus the sale of non-certified used vehicles. And that premium has been rising steadily since January 2011. The market potential is huge. More than 35 million used vehicles were sold in 2011, but less than 2 million were certified by manufacturer programs. Independent dealers sold 22.4 million cars in 2010. An independent dealer who chooses to sell certified pre-owned vehicles can expect to earn a larger share of that enormous market and earn a higher percentage of repeat customer sales as a result of the higher level of customer satisfaction with a CPO vehicle. Victor Salvato, president of Auto Sales Outlet in Rochest, N.Y., is an independent dealer who has experience offering a CPO program to his customer. Salvato said advertising certified vehicles made an immediate impact on his dealership in a variety of ways. “The quality and volume of the responses to our advertising improved immediately,” he said. “It was obvious that we were reaching a higher quality prospect who was interested in a higher quality prospect who was interested in a higher quality vehicle based on the customer’s perception of what a certified vehicle is. We can thank the manufactures and franchise dealers for educating our customers through their promotion of certified vehicles. “Not only have we sold some more cars, but our profits have increased as well. Being a certified dealer has definitely improved our image and our credibility in the marketplace, and we are beginning to see an increase in repeat sales as well.” The New NIADA CPO Program As an independent dealer, you might have been wondering how you can compete with the manufacturers’ established CPO programs. NIADA’s answer is a partnership with Warrantech, an AmTrust Financial company, in the design and administration of its new certified preowned program. NIADA completed extensive research with its dealer members to assure that the program it is providing is exactly what dealers want and consumers expect. The combined efforts of NIADA and Warrantech, and the input of the dealers consulted, have resulted in a program that is innovative, marketable, flexible and financially sound. The NIADA CPO program is much more than a 125-point inspection and a warranty. The program is truly a “selling system.” All eligible vehicles must be certified, a requirement that insures the integrity and credibility of the program. The dealer selects one of three limited warranty terms that are complemented by flexible and affordable wrap-around and extended coverage options for the consumer. With three unique plans under the NIADA CPO program, dealers will be able to select the option that is right for their market and their customer base. The options include: -A three-month/3,000-mile limited warranty that includes 36 months/36,000 miles of engine and air condition component coverage. -A six-month/6,000-mile limited warranty that includes 36 months/36,000 miles of engine and AC component coverage. -A 12-month/12,000-mile limited warranty. The NIADA CPO limited warranty options include coverage of engine, air conditioning, turbocharger or supercharger, automatic and manual transmission, transfer case, drive axle, steering components, select electrical components and seals and gaskets. For more consumer choice and confidence, the NIADA CPO limited warranty options can be supplemented by adding the extended NIADA Total Care or the NIADA Total Care Plus coverage which includes front and rear suspensions, brakes, fuel system, cooling system and additional electrical components. provides coverage from day one and a slid benefits package, day one rental coverage (no minimum shop time), simplified pricing, low-cost surcharges and eligibility guidelines that are very generous – current plus 14 model years and 100,000 miles at time of sale. The program is supported by a wealth of top-quality marketing and merchandising materials to promote the program throughout the dealership, and proudly displaying the familiar logo of NIADA. An NIADA-backed CPO program adds even more credibility for dealers who choose to market it. NIADA brings the strength of nearly 20,000 members nationwide, the stability of 66 years of experience and the dependability of being the dealers’ voice to regulators, suppliers and, most importantly, consumers. “CNW Marketing Research found certified vehicles turn almost 20 days faster than non-certified vehicles.” “In re-tooling the NIADA CPO program, we recognized independent dealer business models vary widely and that we had to offer additional CPO options to specifically meet the operational demands of our dealers,” NIADA chief operating officer Steve Jordan said. “Warrantech’s successful track record with independent auto dealers, varying product offerings, world-class claims operation, nationwide sales footprint and longterm commitment to support the success of our dealer members made the partnership decision easy to make.” The program is easy to sell, “Warrantech is honored to have been selected by the 66-year old NIADA as its CPO program administrator,” Warrantech CEO Sean Stapleton said. “We applaud the time-honored tradition of excellence NIADA member dealers observe, including their adherence to a strict code of ethics. We feel that commitment mirrors Warrantech’s dedication to excellence and drive to provide superior products and continued quality customer service.” NIADA, with the support and participation of the state independent dealer associations around the country, is excited to make this program available to its member dealers. continued on p. 13 OIADA July 2012 | 11 3500 Cars, Trucks & Bikes | $25,000 in Post-Sale Prizes TWO FULL DAYS OF AUCTION ACTION WEDNESDAY AT 10 A.M. Exclusive 1000-Unit Fleet/Lease and MotorSports sale WEDNESDAY AT 6 P.M. Join your industry friends at theWest Coast’s Hottest Auction Event of the Summer!* Enjoy complimentary appetizers, beverages, and a private outdoor concert featuring Foreigner with special guestsThe Cronkites. Celebrating 20 Years • 1992-2012 Spokane, WA P: 509.244.4500 | F: 509.244.8244 daanw.com THURSDAY AT 9 A.M. DAA’s biggest Thursday Sale Event of the year begins. While you work the sale, DAA will treat your significant other to a Catered Cruise on beautiful Lake Coeur d’Alene. *Sorry - for liability reasons, no guests under age 18 will be admitted. facebook.com/daanorthwest LIKE US twitter.com/daanorthwest FOLLOW US Warrantech and AmTrust In selecting Warrantech/AmTrust as the administrator of the program, NIADA has partnered with a worldclass provider of warranty products and administrative services. For more than three decades, Warrantech has been the solution for manufacturers, retailers, dealers, distributers and other sales organizations seeking increased profitability, enhanced market differentiation and long term customer loyalty. Those clients include Volvo, Mazda, General Motors, Ford, Chrysler, Sony, Samsung, Panasonic, PepBoys and many more familiar names. AmTrust, rated “A” Excellent, FSC IX by A.M. Best, fully insures the NIADA CPO program, adding the financial strength and security necessary to protect the dealers who market the program and the KMI consumers who are protected by the product. Warrantech provides a state-ofthe-art claims center that houses more than 300 experienced claims adjustors. All automotive adjustors are ASEcertified technicians with an average tenure of more than 10 years with the company. Claims service highlights for the CPO program include: - Instant credit card payment. -R epairs can be completed at the selling dealership or sublet to any licensed shop or franchised dealer. -M ultiple, convenient methods of submitting claims. The NIADA Certified Pre-Owned program is designed to give dealers more options to better serve their customers, allow them to compete with manufacturer CPO programs and provide them with a competitive edge against over used car dealers in their marketplace that do not offer a CPO advantage. If you are interested in marketing the new program or just want more information, please call (877)3100288 or email automotivesales@ amtrustgroup.com Patrick Reed is Business Development Manager for Warrantech/AmTrust Group in Bedford, Texas. He has more than 35 years of automotive industry experience, focusing on vehicle service contracts. He can be reached at patrick. [email protected] or (817)785-6258. For more best practices and the latest news from the used-car industry, visit www.AutoRemarketing. com and subscribe to our lineup of daily and weekly e-newsletters. Subscriptions can be added and managed at http://subscriptioncenter.autoremarketing.com. Questions, concerns, comments and story ideas can be sent to Auto Remarketing editor Joe Overby at [email protected]. AGENCY KELLY MARTIN INSURANCE AGENCY, INC. 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We sincerely want to be of service to you! 503-625-2615 Kelly Martin, President/Owner PROVIDING INSURANCE SERVICES SINCE 1985 Kelly Martin Insurance Agency 22566 SW Washington • Sherwood, OR 97140 kellymartinagency.com Proudly endorsing OIADA OIADA July 2012 | 13 OIADA EDUCATION CLASS SCHEDULE Pre-License - Continuing Education – Title & Registration July 2012 13 – OIADA Salem Office – Pre-licensing 20 – B rasher’s Portland Auto Auction – Title & Registration/Compliance Class August 2012 3 – Manheim Portland Auto Auction – Pre-licensing 17 – O IADA Salem Office – Title & Registration/ Compliance Class 31 – Brasher’s Portland Auto Auction – Pre-licensing September 2012 7 – Manheim Portland Auto Auction – Pre-licensing 21 – OIADA Salem Office – Pre-licensing Brasher’s NW Auto Auction: 90485 Auction Way, Eugene, OR 97402 Manheim Portland Auto Auction: 3000 N Hayden Island Drive, Portland, OR 97218 Brasher’s Portland Auto Auction: 23585 NE Sandy Blvd, Portland, OR 97238 OIADA: 1475 Capitol St NE, Salem, OR 97301 Meet PRE-LICENSING IS AVAILABLE IN A “LIVE CLASSROOM FORMAT” OR “HOME STUDY” COURSE • Pre-licensing classes begin at 8:30 a.m. unless otherwise noted • Title & Registration classes begin at 9:00 a.m. unless otherwise noted • All dealers must complete 5-hours of Continuing Education per year • All persons who desire to be licensed as a motor vehicle dealer must complete an • 8-hour pre-licensing seminar before DMV will issue a dealer’s license. ********** TO REGISTER FOR A CLASS Call 503-362-6839 or 1-800-447-0302 (All times, dates, locations subject to change) Driver’s license or other positive ID required BEFORE class begins WWW.OIADA.COM Bobbi Cockeram Born and raised in Eastern Oregon in the little town of Vale, Bobbi worked for the local GMC dealership in Ontario, Oregon at the age of 18 selling to the local “Good ol’ boys” farmers and ranchers. This is where her love for the Auto Industry started. She relocated to the Portland area in 1996 where she entered her career as a “Title and Registration Specialist.” It was a very challenging time back then as there were no classes or training of any sort, so after years of hard work, dedication, and making it her business to become as knowledgeable as she could from whatever resources she could find, she successfully graduated from the school of “Hard Knocks,” and took off in the world as an independent Auto Dealer Consultant/Title and Registration Specialist for Oregon auto dealers. Bobbi has not only had the opportunity to work with Oregon auto dealers, but with Dealer Auctions, and several other states dealers as well. Additionally, she is well versed in other state laws and DMV statues. Bobbi started instructing Title and Registration classes as well as Prelicensing Courses and other forms of Continuing Education for us at the OIADA 3 years ago and the classes just keeping better and bigger. She brings to us a great deal of knowledge and experience to our members and staff. We are very excited about partnering with Bobbi. Her addition to the team has taken our educational and consulting programs for our members to the next level. 14 | OIADA July 2012 Services Provided by Bobbi: Dealer-to-Dealer and Dealer-toConsumer Mediation Title Training CarFax and Auto Check Cleaning Lost Duplicate Titles (in all states) Title clerk fill-in Dealer Setups Title Preparation/Processing Notary Services Book Keeping Services Title Corrections/Problem Titles V-3 Training/ Setup Deal Jacket Compliance Audits Bobbi L Cockeram Po Box 727 Gladstone, Or 97027 503-810-5535 [email protected] The Importance of Dealership Salespeople As one recent analysis showed the new-vehicle sales surge is being fueled by older buyers, the Maritz Research New Vehicle Customer Study revealed what’s the most influential source of information for buyers no matter their age. Contrary to a potential belief social media will soon replace traditional dealerships, Maritz found that the store salesperson most influences purchases. In fact, the Maritz report showed salespeople were ranked significantly higher in 2011 than in the past five years. The NVCS, which Maritz believes is the largest automotive study in North America, asked customers what sources of information they found most influential in their buying decisions. The top 10 sources in the U.S. were as follows: 1. S alesperson at the dealership (21.9 percent) 2. F amily/ friend/ word of mouth (18.7 percent) 3. Consumer guides (18.4 percent) 4. D ealer or manufacturer websites (8.6 percent) 5. T hird-party websites (6.4 percent) 6. A utomotive magazine reviews (6.1 percent) 7. T V advertisements (4.0 percent) 8. D ealer or manufacturer brochures (3.2 percent) 9. D ealer- or manufacturersponsored event (2.4 percent) 10. N ewspaper advertisements (1.7 percent) “People buy from people,” said Chris Travell, vice president and strategic consultant for Maritz Research. “Social media can certainly support the selling effort, but I believe it would be a mistake to believe that social media will usurp it.” Travell pointed out recommendations from family, friends and word of mouth were also ranked statistically higher than in past years, while consumer guides such as Consumer Reports still remain the third most influential source of information. “What our family and friends say or recommend to us is important,” Travell added. “Every manufacturer needs to have a well-defined social media strategy. However, we still need to remember the importance of human interaction in buying a car.” While Maritz’s study discussed what influence, a new report release early last month showed that older buyers are leading the way in auto industry recovery, with dealership experience the key factor in purchasing vehicles. “We need to remember the importance of human interaction in buying a car.” more seasoned buyers, who more often choose a dealership based on inventory and selection, no price haggling, financing availability, quick quote response and the dealer website. “The auto industry recovery is being fueled by older buyers,” said Steve Bruyn, chief executive officer of Foresight Research. “In addition to their buying power, they bring different shopping and buying behaviors including more reliance on their dealership experience.” For more best practices and the latest news from the used-car industry, visit www.AutoRemarketing. com and subscribe to our lineup of daily and weekly e-newsletters. Subscriptions can be added and managed at http://subscriptioncenter.autoremarketing.com/. Questions, concerns, comments and story ideas can be sent to Auto Remarketing editor Joe Overby at [email protected]. Automotive research firm Foresight Research has released its 2012 Dealership Experience Strategy Report, noting a need for dealerships to refocus marketing to OIADA July 2012 | 15 Older Drivers Push Industry Recovery “Perhaps the aging baby boomers were not hit so severely by the economy,” Hein explained. “They have disposable income, and they are able to qualify for financing.” Other findings note changes in brand and dealership loyalty, the company said. A new report shows that older buyers are leading the way in auto industry recovery, with dealership experience the key factor in purchasing vehicles. Automotive research firm Foresight Research has released its 2012 Dealership Experience Strategy Report, noting a need for dealerships to refocus marketing to more seasoned buyers, who more often choose a dealership based on inventory and selection, no price haggling, financing availability, quick quote response and the dealer website. “The auto industry recovery is being fueled by older buyers,” said Steve Bruyn, chief executive officer of Foresight Research. “In addition to their buying power, they bring different shopping and buying behaviors including more reliance on their dealership experience.” Foresight Research Executive Vice President Ron Hein says the study defines older buyers as those ages 55 and up. That demographic has seen a steady increase, from 25 percent of all buyers in 2008 to 40 percent in 2011. Buyers in the 35- to-54 age group dropped from 48 to 37 percent in that period, while buyers age 18 to 34 have remained fairly steady, dropping from 27 to 23 percent. 16 | OIADA July 2012 “With older buyers we historically have seen higher levels of brand and dealership loyalty — that is not the case today. Manufacturers and dealers must refocus their marketing to seasoned buyers,” said Bruyn. Hein said the study showed a high degree of both segment and brand switching among older buyers, and an increase in minivan and pickup truck purchases. Dealership loyalty dropped to 47 percent in 2011, from 58 percent in 2010. “They may switch segments for looks or fuel economy, and switch brands at the same time,” Hein said. He noted the change in dealership loyalty could be attributed to dealership closings, particularly in rural areas, or buyers just deciding to try something new. 2012 Dealership Experience Strategy Report showed that older buyers engage in fewer shopping activities and are influenced by fewer forms of marketing communications. The report analyzes buyer behaviors throughout the shopping and purchase process to examine the role the dealership plays in the purchase compared to 16 other forms of marketing communications, from traditional advertising channels to auto shows, events and sponsorships, word of mouth, and print articles. Influential marketing messages received by the buyers were measured and rank-ordered, and compared to messages typically communicated by dealerships. Topping the report’s list for dealership experiences that influenced sales — among buyers of all ages — were Lexus, Infiniti, Lincoln and Mercedes-Benz. Buick, Audi, Mazda, Mini Cooper, Cadillac and Honda showed significant improvement over previous data, Hein said. “The study showed a high degree of both segment and brand switching among older buyers.” “It’s a dynamic that’s something dealers have to be wary of, if they’re banking on a good portion of their customers returning. That might not be the case,” he said. The top elements in dealership choice among older buyers were vehicle selection, a comfortable shopping experience, service department and a courteous, knowledgeable salesperson. Based on interviews with 7,851 new vehicle buyers in the U.S., the “Even though the auto industry is mature in the U.S., it’s always dynamic,” he said. “And it’s the older buyers who are driving recovery.” For more best practices and the latest news from the used-car industry, visit www.AutoRemarketing. com and subscribe to our lineup of daily and weekly e-newsletters. Subscriptions can be added and managed at http://subscriptioncenter.autoremarketing.com/. Questions, concerns, comments and story ideas can be sent to Auto Remarketing editor Joe Overby at [email protected]. We had a dealer call in the office who wanted to know if there is something or someone who tracks vehicle sale data by state. SUCH a poignant question! His idea was to use industry trends to help him be smart about how he builds his inventory. Of course there are other factors that go into a calculation like this such as: regional location within the state, economic demographics, whether or not you have already established a target market, etc. Given that you already have a pretty good grasp on who you’re buying for, getting a better understanding of what the consumer population wants will help a dealer buy smarter. I’m not saying that looking into this kind of data is going to determine whether or not you become a millionaire, but doing your research on local demand will definitely make you a better businessperson. I bet you’ll think twice about letting that 2007 Acura TL go by next time you’re at the auction….if anybody ever decides to part with one. All of that being said I’m still vigorously on the hunt for this data! I know it has to be out there somewhere, and if it is, I’m going to find it for you guys! Until next month though, hopefully this will tide you over: The NIADA 2012 Used Car Industry Report. NIADA describes it as, “NIADA publishes an annual edition of its Used Car Industry Report in June of every year. Each year, we conduct proprietary research and team up with some of the best-known industry analysts to bring you an overview of the independent used car dealer and used car marketplace. The newly published 2012 Used Car Industry Report is jam packed with 52 pages of NIADA dealer member demographics, data on the entire used car industry as a whole from CNW Research, BHPH industry benchmarks, Ask Val! via….. inventory turn studies, auto parts and service data, dealer sourcing data, auto shipping information, financing & title data, and statistics on the 1) email: [email protected] remarketing industry courtesy of NAAA. All NIADA Dealer Members in good 2) written letter sent to the OIADA Office: 1475 Capitol St NE. Salem, OR 97301 standing receive the free printed version of the yearly report the first week 3) tweet for short and/or immediate feedback (@oiada) of June, as a benefit of their membership with NIADA.” 4) facebook: www.facebook.com/OregonIADA http://www.niada.com/2012_niada_used_car_industry_report.php OIADA July 2012 | 17 continued from p. 5 Oregon Dealers News Corner Blizzard MOTORS, 1604 E Burnside, Portland Or 97214 Thursday, July 26th 6pm-8pm Any OIADA member and/or nonmember. Members: meet your OIADA Executive Committee, bring a nonmember to join us. Barbecued chicken, salad, sides and refreshments served at no cost to members. Nonmembers get charged the same! Giving back is what we are all about! In recognition of this OIADA cordially invites you to our summer barbeque, cruise-in, and part-time sales meeting! Come bask in camaraderie while enjoying a free chicken barbecue hosted by the Executive Committee of OIADA If you have something cool to drive be sure to arrive in it! Show off points count and are in this instance…encouraged!! 18 | OIADA July 2012 ASSOCIATE MEMBER LIST: Your Dealer Products and Service ADVERTISING CAR RENTALS Affiliated Media LLC Ronald Massey, 503-705-9497 Canon Investments, Inc. Joe Canon (Salem), 503-580-0473 AutoTrader.com Amelia Goldman, 360-303-8407 [email protected] DEALER SOFTWARE Carsforsale.com Aaron Oestretch, 605-306-3302 Cars.com 312-601-6134 The Oregonian Rich Fryback, 503-221-8486 UCMLink www.ucmlink.com Allison Pittman, 601-812-5876 UsedCars.com by Dealix Tamara Garris, 704-243-6652 AUTO ACCESSORIES Northwest Auto Accessories Craig Lessard, 503-288-5700 PRIVATE AUCTIONS Brasher’s Portland Auto Auction Jerry Hinton, 800-300-3200 Skywerks Martyn Olliver, 425-738-0234 Frazer Computing Michael Frazer, 888-963-5369 FEE-BASED INCOME PRODUCTS Mile High Consulting Inc. Mike Cintron 720-838-7400 Cell FINANCING Credit Acceptance John Bragg, 253-279-3230 INSURANCE & BONDING Consumer Insurance USA Robert Wells, 877-431-0970 Hecht & Hecht Insurance Evelyn Hecht [email protected], 800-609-0979 Kelly Martin Insurance Agency, Inc. Kelly Martin, 503-625-2615 Sentry Insurance Randy Dombrowski 800-624-8369 x 7272 LEASING Oregon Roads, Inc. New & Used Vehicle & Commercial Leasing Joseph McKinney, 541-683-2277 RECONDITIONING Credit Concepts Jason Moon, 541-342-8545 E & N, Inc. Marco Segura, 503-850-4730 JP Morgan–Chase Auto Finance Jeff DeGarmo, 503-201-4370 SERVICE CONTRACTS Nationwide Northwest, LLC Mark Tischer, 503-339-4165 A.U.L. Corporation Gina Eagerton, 800-826-3207 Reliable Credit Association David Marx, 503-462-3022 Automotive Business Developers Shannon Meany, 541-944-9186 Gold Acceptance/ Oregon Auto Finance 1700 Valley River Dr. #300 Eugene, OR 97401 Gary Veum, 541-868-0472 Auto Services Company Dick Proudfoot, 503-705-7597 A.U.L. Corp/ D.P.C. Inc. Jim Bangert, 360-834-3333 Protective - Asset Protection Division Dylan Doran, 818-836-1455 Adesa Seattle Auto Auction Jason Arcaro, 253-735-1600 x 213 United Finance: Burnside, 503-232-5153 Eugene, 503-342-7671 Salem, 503-585-6411 Medford, 541-779-7391 Dealer’s Auto Auction Northwest Steve Doyle, 509-244-4500 SmartwayAdvisors Sheldon Harris, 503-795-7700 Manheim Seattle Auto Auction Julie Picard, 206-762-1600 FLOORPLAN FINANCING OIADA: Continuing Education, Title & Registration, & Pre-licensing Wendy Riggi, 800-447-0302 PUBLIC AUCTIONS Dealer Services Corporation Garrett Jorewicz, 866-230-0820 Automotive Business Developers Shannon Meany, 541-944-9186 Insurance Auto Auctions, Inc. Ryan Hall, 503-253-1500 HEALTH CARE & BENEFITS Petersen Auction Group of Oregon Curt & Susan Davis, 541-689-6824 The Summit Group of Oregon, LLC John Petrie, 503-581-2825 Brasher’s Northwest Auto Auction Lisa Larkin, 800-905-3901 CrosspointNW Dealer Auction Brian Hardy, 503-457-4000 Manheim Portland Auto Auction 503-286-3000 OUT-OF-STATE AUCTIONS GWC Warranty 800-482-7357 ext. 767 TRAINING Woodburn Auction Steve Morin, 503-981-8185 OIADA July 2012 | 19 Read & Respond or Certify Below OIADA CONTINUING EDUCATION PROGRAM Complete this test and Certify below that you have read the articles for July 2012 Dealership Salespeople: Loyal Customers for Your Service Department: Which of the following is the least influential source to a According to DMEautomotive, 69 percent of customers consumer considering the purchase of a vehicle? defect to aftermarket centers within the first three to six a) salesperson at a dealership years of vehicle ownership. That number jumps to __ b) newspaper advertisements percent by year seven. c) third-party websites a) 87 d) TV advertisements b) 75 c) 90 d) 88 Older Drivers: Certified Pre-Owned: According to automotive research firm Foresight CNW Marketing Research found certified vehicles turn Research in its 2012 Dealership Experience Strategy almost __ days faster than non-certified vehicles. Report, the older buyer demographic (55+) has seen a a) 14 steady increase in market concentration, from __ percent b) 21 of all buyers in 2008 to __ percent in 2011. c) 20 a) 40, 25 d) 10 b) 15, 50 c) 35, 40 d) 25, 40 I certify to OIADA that I have personally read these articles in The Oregon Dealer News Magazine for #7-2012 My Name __________________________________________________ ____________(printed) Dealership Name ____________________________________________________ ___________ Dealer License Expiration Date:_________________________ Dealership #_______________ Signed: _______________________________________________Date _____________________ FAX TO: 503-364-7331 or mail to OIADA, 1475 Capitol St. NE, Salem, Oregon 97301 20 | OIADA July 2012 Now Running Weekly! High-quality Dealer Consigned Vehicles Running in the Lanes and Online Call the Brasher’s Northwest Sales Hotline for more information on this program at 541-463-7150 or email us at [email protected] Brasher’s Northwest is an AuctionPipeline Auction. Visit us at www.BrashersNorthwest.com NORTHWEST AUTO AUCTION 90485 Auction Way, Eugene, OR 97402 • www.brashersnorthwest.com • 800-905-3901 PRSRT STD U.S. POSTAGE PAID Albany, OR PERMIT NO. 188 1475 Capitol St. NE Salem, OR 97301 503.362.6839 ●800.447.0302 Fax: 503.364.7331
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