Market Watchers Predict Sandy's Impact

http://www.fi-magazine.com/News/Story/2012/11/Sandy-s-Impact-on-National-Auto-Market-will-be-Modest-Market-Watchers-Say.aspx?ref=-20121115&utm_source=Email&utm_medium=Enewsletter

Objection Handling video tip of the week from John Vecchioni

http://www.fi-magazine.com/News/Story/2012/11/Video-Tip-of-the-Week-Handling-Objections.aspx?ref=-20121115&utm_source=Email&utm_medium=Enewsletter

Nearly One-Third of Auto Shoppers Use a Mobile Phone, JD Power Reports

October 23, 2012

WESTLAKE VILLAGE, Calif. — Smartphones are quickly becoming a major source of information among in-market automotive shoppers, according to the J.D. Power and Associates 2012 Automotive Mobile Site Study. It found that 31 percent of in-market vehicle shoppers have visited automotive websites via their smartphone, compared with 24 percent in 2011 and 17 percent in 2010.


These same shoppers access third party sites and manufacturer sites at similar rates (69 percent and 68 percent, respectively). Additionally, more than half (53 percent) of these in-market shoppers access automotive content while they are physically at the dealership.

The study also examined the features and content of automotive manufacturer mobile websites and their usefulness in engaging shoppers. “As shoppers increasingly use their mobile device to gather information during the shopping process and even at the point of purchase, the importance and value of mobile websites to both manufacturers and shoppers alike grow exponentially,” said Arianne Walker, senior director of media and marketing solutions at J.D. Power and Associates.

The Top 5 types of information shoppers seek on mobile automotive websites are:

Vehicle pricing (66 percent)
Model information (54 percent)
Photo galleries (53 percent)
Vehicle reviews/ratings (52 percent)
Compare vehicles (47 percent)
In just two years, automotive manufacturers have dramatically shifted the design, layout and navigation of their website in order to keep up with online shopper usage and mobile device sophistication. Previously, many mobile websites were text-based, with linear layouts and small text links that were designed for trackball and cursor navigation, the study found.

In 2012, manufacturer sites that perform particularly well in appearance and navigation featured large, dynamic images and links that are suitable for touch-screen use. Additionally, current mobile websites host notably more content, replicating much of the desktop/laptop and tablet versions of websites. Previous mobile websites featured limited content as a supplement to desktop websites.

Although the percentage of shoppers using mobile websites to search for information during the shopping process has increased, satisfaction with mobile websites is not nearly as high as with tablet and desktop/laptop versions of manufacturers’ websites. Overall satisfaction with mobile sites is 767 (on a 1,000-point scale), compared with 818 for desktop/laptop and 824 for tablet versions of manufacturer websites.

iTap Presentation Tips

iTapMenu News iTapMenu Presentation Tips - OCT. 2012 Hi all, We at iTap hope you had a great September.  iTapMenu now has hundreds of users using our software every day for their F&I presentations.  We have received some great feedback from users.  So, we decided to share these tips with you.  If you have some presentation and work flow tips you would like to share with the iTap user community, please contact Shawn McCool at:smccool@itapmenu.com.  1.  When to use iTap This has been an important question.  Although we have several users that have literally replaced their paper or electronic menu with iTapMenu and have had improved results, a high percentage of our users are presenting iTap wherever the customer said "yes" to buying the vehicle.  Think about it...they obviously are comfortable there, the salesperson is now their "best friend," buyer's remorse has yet to set in, and they aren't "pre-exposed" to an F&I presentation by bringing them into the F&I office.  In other words, the sooner the better and not in your office has had the most impact. Also, think about the customer's perception of the F&I experience.  If you present your menu in your office, you bring them in to present the menu, print your docs, and then sign them.  That's a 30-40 minute process, all of which occurs in your office.  The customer's F&I "clock" begins when they enter your office.  30-40 minutes is a long time!  And, none of it can be shortened substantially.  We do NOT want to decrease our selling time, printing the docs takes several minutes, and the customer controls the amount of time it takes to have them signed.  So, let's change the customer's PERCEPTION of the F&I process.  If you present iTap in the showroom and then come back into your office by yourself and print the docs, and THEN bring the customer in (for the first time) to sign, they are experiencing F&I for only the last portion of the process (signing the docs).  Therefore, their perception of the F&I experience is only the 10-15 minutes it takes to sign the docs! 2.  Approach By sitting next to the customer, and sitting the iPad down and NOT picking it up during the entire presentation, you are becoming a consultant to them, not a salesperson.  Plus, the transparency of the situation relaxes the customer and they no longer feel they're getting sold something.  When this occurs, they will start to buy! 3.  iPad presentation a.  Our feedback indicates the two-column menu without the product education module, with the "terms in customer selections" menu display option UNCHECKED has had a tremendous impact on production.  Of course, please use iTap how you are most comfortable.  However, we have reports of users presenting iTap in multiple ways and determining this to be the most profitable. b.  We suggest putting all of your products in the "recommended" column.  However, if you conduct pre-delivery interviews, we suggest customizing the "recommended" column based on data received from the interview. c.  When presenting the products in the "recommended" column (two-column menu structure column name), be "educational" in your approach.  For example, "Mr Customer, let me explain why I'm recommending the extended service contract (tap the icon).  I am recommending it because the average repair bill in the U.S. is $871 per occurrence and your vehicle has 14,000+ moving parts.  If you decide to "self-insure" this product (tap the "info" button), this is a sample of what your replacement costs may be." d.  We recommend you display two, if not three payments on every menu!  Why?  There are several reasons.  As an example, let's say the customer agreed to a 60 month term when they purchased the vehicle.  Most menu presentations would display 60, 66, and 72 months.  We feel this is incorrect.  Why present a term right up-front that is pushing the customer as far away from their trade cycle as possible?  Also, why not use this extended term IF there's a payment objection after reviewing the "recommended" column?  As you know, you can change the term on the fly right on the iPad using iTap. We suggest you INVERT the terms.  That's right...in this example, we would display 48, 54, and 60 months.  Why?  For one, why wouldn't we display shorter terms in hopes the customer selects this and SHORTENS their trade cycle?  Second, we know we can change the term using iTap, so let's save this term extension if there's a payment objection (we would first recommend increasing the down payment but then using the term extension to overcome the objection).  And finally, the 60 month payment in the "recommended" column, by itself, would feel like a high payment.  However, if you're presenting it with two more expensive payments, it won't feel as "out of reach!" e.  If the customer won't select a repayment option in the "recommended" column, it's time to either create a column discount (tap and hold the column name) or custom build an option.  We think this is important...get the customer involved in this!  We don't recommend giving the customer the iPad, but nudging it over and interacting with you and iTap together is a powerful "shift" in the selling situation.  Let them make a choice!  You'll be surprised at how powerful this is. f.  Consider having a second service contract icon on your menu.  This would be used during a used vehicle menu presentation.  By having a price contrast service contract available (power train coverage for example), you are creating an opportunity for the customer to say "yes" to something!  And, something is better than nothing.  Sometimes the price is the factor.  By having a second option available, you're creating a good proposition for the customer...they still receive some coverage and at a price they can afford. g.  Product packaging...create a "win-win" Try this...the next time you build an option with the customer and you need to "sweeten the deal," don't discount a product (an example would be a service contract discount).  Think about it...$200 off only changes the payment by $3-4/month.  Plus, it's not that compelling.  Instead, select a product you have approximately $200 cost in (paint sealant, tire/wheel, dent/ding, etc) and convert the retail price to $0 right in front of them on the iPad!  Then, drag it over and watch as their payment stays the same.  By doing this, you have a similar investment but the customer's perception of "sweetening the deal" has changed dramatically because they saw the RETAIL price and viewed this as the discount!  This is true impact. 4.  Product videos By now, you likely have noticed you can upload custom videos into iTapMenu.  To add a video to any product, simply go to "configuration/products" and click a product and copy and paste the URL and select the format.  Note:  If you select YouTube, make sure the video is a "public" video.  Private videos are not able to be used. If your product provider has a video, that's great, use it.  However, we have some iTap dealers that have created a short video of an actual customer testimonial.  As an example, if you have a customer that used your service contract in your service department recently, ask him or her to talk about the situation, the amount of the claim, and how easy it was.  Then, transfer this video to YouTube and then copy and paste the URL into our interface.  A custom customer testimonial has been shown to be very effective to support the presentation of your products.  You could create this for all of your F&I products!  An iTap exclusive. That's all for now.  Look for another newsletter from iTapMenu soon.  We have another set of features on the way and a new optional feature that's going to blow you away... --   Shawn McCool Game Changer iTapMenu Phone: 855.687.4827 x 702 Fax:     855.687.4827 smccool@itapmenu.com www.itapmenu.com  iTapMenu Prospective Dealer Webinars   Here are four upcoming training webinars!  Simply click the link below to sign-up.  These are FREE, but space is limited. Date: 10/11   Time: 11:30-12:30  (EST) Date: 10/11   Time: 1:30-2:30  (EST) Date: 10/26   Time: 11:30-12:30  (EST) Date: 10/26   Time: 1:30-2:30  (EST)  www.itapmenu.com/webinars Stay in touch   Be sure to save our contact information so you can get in touch when you need something.  https://contacts.itapmenu.com/iTapMenuLLC Quick Links

iTap Presentation Tips

http://campaign.r20.constantcontact.com/render?llr=k7z888iab&v=001_bhMaCujxE03uFSoGLHKcZ6hqQrv3fgrgdaMiw9BgRHrsh5opPa1SXUMCmS1WEmyelKn9gjylV9ltcXc_6y9SWtn74HSOwR3lIWxhg-adt2x3wEg9iNu8Ec87sUWnTNAn9LibwM1uafZIHhgGiOb6w==&r44b=no

Trade-In Equity on the Rise, NADA Reports

http://www.fi-magazine.com/News/Story/2012/09/Trade-In-Equity-on-the-Rise-NADA-Reports.aspx?ref=-20120920&utm_source=Email&utm_medium=Enewsletter

iTap is all about treating every customer the same!

http://www.fi-magazine.com/News/Story/2012/09/Video-Tip-of-the-Week-Tips-from-the-Field.aspx?ref=-20120918&utm_source=Email&utm_medium=Enewsletter

http://www.prweb.com/releases/2012/9/prweb9904789.htm

vAuto & Autotrader.com

http://www.fi-magazine.com/News/Story/2012/08/vAuto-AutoTrader-com-Partner-on-Trade-In-Acquisition-Tool.aspx?ref=-20120828&utm_source=Email&utm_medium=Enewsletter

More on the rate of movement in the industry

http://www.fi-magazine.com/News/Story/2012/08/August-New-Vehicle-Sales-Strong-Amid-Weak-Economic-Growth-JD-Power-and-LMC-Report.aspx?ref=-20120828&utm_source=Email&utm_medium=Enewsletter

Used car market update

http://www.autoremarketing.com/retail/cnw-used-sales-down-overall-climb-nicely-franchised-dealers

Declining auto prices are a positive sign for everyone

http://www.sacbee.com/2012/08/17/4735243/nada-incentives-and-declining.html

Eric Thomas on success

I love this message from Eric Thomas. This is exactly what it takes, the level you need to achieve to find success...

http://www.youtube.com/watch?v=3NQREuc7JX8

Cursing at work...

It works for Hollywood because, well, it's not real. I have been guilty of this very thing. It is funny in film, or appears to have that extra humph when driving home a point. In reality, it has no place at work. I am glad I took the time to read the article. It is a nice reminder. Any conversation can be had, any point can be made at work without the use of cursing. What is not stated in the article is all too often the behind the scenes, or internal habits can & will find their way out & in front of your customers. Words cannot be vacuumed back into the mouth once they are out.

http://www.businessweek.com/articles/2012-07-26/cursing-at-work-harms-your-at-no-percent-and-career

Figure It Out

By – Willie Grubaugh

7/10/12

W

hat is “Figure it out”? Who has it? Who does not? Why do some have it, and some can’t even get close?

A dog with figure it out lives indoors, with air conditioning in the summer, fresh water, and lots of attention. A dog without figure it out lives outside.

It is not only for the Spiritual. It does not align with one political party over another. It does not discriminate against color, or race. It simply is within some of us, and non-existent in others. It is not only available to the wealthy, or unavailable to the poor. As a matter of fact, many from poverty figure it out every day; how to eat, where it will come from, how to pay bills with not enough money. This is a shocking thought to a handful, and reality for way too many. I know firsthand. I came from poverty. I figured out I hated it. I figured out I wanted a very different, better life. I did not know exactly what it looked like, but I knew what I didn’t want it to look like forever. I figured out how to get out of poverty.

The question of “How do I do that?” is replaced with “Show me (once)”, or “Let me try”. “Get out of the way & let me do it” is a common identifier of the Figure It Out class. Mistakes are common to this class, but quitting is not.

Figure it out applies in various ways to different people. I talked with a range of people about how they defined “Figure it out”; small business owners, sales people, executives, rich, poor, the spiritual.

One example of life without “Figure it out” is a person I know in sales. He is constantly in conflict with his supervisor. It is a shame. He needs to figure out the next level of maturity. He, his income, and what he is able to provide his family is limited daily to his disrespect, next comment without forethought, &, or next ignorant action. The reality is, if he could ever figure out that next level of maturity… he would be the most dominant salesman on record. He could partner in so many ways, with so many companies and his income would be without ceiling. He just does not have figure it out. He does make a decent living. He has a respectable job. It is limited to a job, not a career because he simply does not understand respect, humility, or gratitude. That is what figure it out would mean to him. Hopefully, one day, he will figure it out.

One avenue for figure it out used by the most successful is the use of mentors. Mentors are willing to help most anyone figure it out. The nice thing about mentors is the mentor has most likely been where you want to go. The mentor has learned the hard lesson and is willing to teach the softer, smarter, easier way of doing things. This is the version of figure it out minus the knots on the head.

Watch a toddler on any given day, for a few hours. Keep their cup up an inch or so above their arms’ reach. Put their snack in a large living room chair. Observe how they keep track of their favorite toy, and are always able to get it no matter where it is, what it is in, on, or how high up the toy might be. Toddlers have figure it out. They can get up on most any couch, bed, chair, or table for the sake of whatever it is the toddler wants, or needs. And, if all else fails, the toddler quickly “Figures it out” that the grandparents will take care of the rest.

In talking with recruiter Liz Fitch, she defined “Figure It Out” simply as get it done. Liz has been in business since 1989. So I asked her about her biggest mistake along the way. Her response was, “Taking for granted those who are most critical to your success along the way; particularly your significant other.” It made me reflect on my work history and the one person who’s consistently been at my side at the end of each day; my wife Amy.

I met with Katie Vrana & Stephanie Slyter recently to get their take on figure it out. Katie & Stephanie are sisters who own & operate The Hole Thing; a gourmet donut shop. The two put the idea of a donut shop together on Katie’s back patio one afternoon over mojitos. Yes, drinks were involved. How else to you get two sisters who lived over 1000 miles apart at the time, one a fitness trainer, the other in mold removal, to partner for a gourmet donut shop? Mojitos! Both girls combined to define “Figure It Out” for me. It’s a recipe of course. After all, they do operate a gourmet donut shop, and here it is:

·         One part confidence

·         One part Google

·         One part basic common sense

·         One part learn along the way

·         One part asks questions because people generally love to tell you all they know.

I asked the girls what is the biggest, most costly mistake you made along the way? This is what they both agreed & had to say, “Not paying close enough attention to our lease agreement. There are some things we should have protected ourselves against. It’s worth hiring an attorney to review lease agreements. You should somehow research the people or company who owns the property.” Figure it out continues to be a part of their daily operations as keeping up with school in, spring break, then school out for summer, weather, & holidays verses what is the right amount of donuts to make each day. Empty cases too early are no way to successfully run a donut shop.

I had the pleasure of interviewing a soldier I’ve known for some time who asked not to have his name mentioned. He’s just that humble I guess. He defined “Figure It Out” as, “My sole purpose is to figure out how to be sure and make it home every time. My day to day? Well that is just the job. My purpose is to get back home to my family. I like to surprise my family.” So I told my son I loved him and hung up the phone.

Don't get mad at your lenders for buying smarter...

http://www.marketwatch.com/story/credit-loosens-up-for-subprime-consumers-2012-06-27

I follow his video clips. They are always short, to the point, and insightful.

http://www.fi-magazine.com/News/Story/2012/06/Video-Tip-of-the-Week-5-Keys-to-F-I-Success.aspx?ref=-20120626&utm_source=Email&utm_medium=Enewsletter

Why warranties? Here's why!

WHY WARRANTIES? HERE'S WHY!

- Willie Grubaugh

Every new car, WITH ZERO MILES ON IT, from the manufacturer comes with a corrosion warranty, a power train warranty, and a comprehensive warranty at a minimum. EVERY ONE! These contracts don't start after X amount of miles. They start with the initial in-service date, very first title transfer of the car, truck, or van, at zero miles on the odometer. These are new cars.

So why in the world would you try to sell a pre-owned car with any miles at all without a vehicle service contract? Now, factor the inventory you have to choose from as an independent dealer. Your inventory resources are shrinking, not growing. There are less wholesalers in the market place. The vehicles you do have to choose from cost more initially. The reconditioning is higher on today's vehicle; parts, parts availability, and labor... all three are issues modern day. We are not even to the fact there are so many more miles on the vehicles available. And let's not forget the cardinal rule of the car dealer, "No one goes to Hell for selling a bad car at auction". Now you can't sell a bad car to a consumer, but somehow, it is OK to take the under the metal clunker to auction & sell it to another dealer as long as you don't have to look them in the eye. I don't get it, but that is the unwritten rule of the business.

Industry related article after article state multiple advantages to selling pre-owned vehicles with vs. without a service contract. That does not mean give the farm away. It simply means offer it with every vehicle with the intent to sell it. Vehicles with a service contract have a higher net. Vehicles advertised with service contracts leave the dealership quicker. Consumers are researchers today; more then ever before.

Now, if you are really feeling froggy, want to sell more cars, and make more profit, defer to my article, or any article on selling Certified Pre-Owned vehicles.

Here are the reasons you as an independent dealer should be selling service contracts:

1. Peace of Mind
2. A used vehicle is useless in today's market without a warranty
3. Today's vehicles are too sophisticated to repair, or even diagnose what the problem is
4. Today's vehicles require special tools, equipment, & training
5. Coverage tailored to the consumer needs
6. Limits out of pocket expenses to the deductible
7. Today's vehicles offer little to no warning they are about to break down
8. My personal favorite... **TOLL-FREE 800 NUMBER FOR CLAIMS & ROADSIDE ASSISTANCE
9. Today's vehicles are much more expensive to repair
10. Protects from being ripped off by unethical repair centers
11. It is the most important option on a pre-owned vehicle
12. Repairs can be made as needed, not when the consumer can afford to
13. Component parts - parts are replaced today, not repaired
14. Service contracts protect against the rising cost of repairs
15. Pays for towing; prevents the family from being stranded
16. Budgets the repair cost over time of ownership
17. Increases the resale value
18. Keeps the dealership & customer friends
19. Generates referrals & repeat business over complaints & lost customers
20. No cash outlay - can often be included in the monthly payments

For more information on how service contract sales can protect your reputation, help you grow, and increase profits, visit our website or call our office at (800) 548-1121.

www.warrantys.com

For those of you with, or thinking of adding service drives...

http://www.fi-magazine.com/Article/Story/2012/06/Meeting-and-Greeting-the-Service-Up.aspx?ref=-20120612&utm_source=Email&utm_medium=Enewsletter

Independent Survey Gives Preferred Warranties High Marks for Dealer Satisfaction, "Best in the Business"

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/05/23/prweb9534809.DTL

Autoremarketing | CPO Sales Back in Black

Here is one of so many articles testifying to the power of CPO, or Certified Pre-Owned programs.

Just because you are an independent dealer, don't think for a second you can't compete in this market. Now, you might be missing out on this piece of market share. You might be losing customers over & over to the franchise dealers because your would-be customer is searching for quality, certified pre-owned vehicles.

How do you compete? Set up your own CPO; Certified Pre-Owned program. So what exactly is a CPO? It is exactly what it says it is. It is a "CERTIFIED PRE-OWNED" vehicle. The vehicle has been through a true process in place at the dealership long before the car ever up for sale. It means the dealer takes pride in their name, their business, their reputation, and the dealer is out to best protect the customer.

• The vehicles are checked out & run through a consistent, written process.
•  The vehicles pass an inspection with a check list of items checked.
• The process is advertised, it is a talked about in email. CPO is brought up by the sales team in the initial meeting.
• The customers are asked when they call the dealership, "are you calling about our Certified Pre-Owned Program?"
• Banners, posters, and brochures define the office(s).
• Clings, stickers, are on the vehicles and brochures are in the cup holders for review before & after the test drive.

Here is what my team of consultants can help you implement:

1.       Include a short term warranty (3/6/12… preferably a PLUS plan).  

2.       Run a Car Fax or Experian and print it

3.       Use our window clings and car bling.

4.       Use the PWI important paper holders.

5.       Use the PWI 88 point inspection forms.

6.       Use the PWI Certified brochures and posters

7.       Get a PWI Certified banner from you

8.       Use the word “Certified” in the TEXT description of their AutoTrader and Cars.com advertisements

9.       Implement a Certified selling process at the dealership that requires all employees to build value into their vehicles using the Certified program.  Have employees role play a description of what an “ABC Motors and Preferred Warranties Certified Vehicle” really means….what the customer is getting for their money…. Let Preferred Warranties Consultants provide you all of this AND increased profits! Yes, we will give you the materials. We will give you the guidance. We will give you our experience & knowledge. AND you get the benefits of increase profits, better protected customers, improved reputation, repeat business, referral business; after all, why wouldn't they tell their friends & family about you now!?!?

Autoremarketing | CPO Sales Back in Black

As a dealer interested in a true Certified Pre-Owned program for your dealership, call our office at Preferred Warranties, Inc. at 800-548-1121.

Hiring & leading with the right attitude for TEAM's sake

Attitude isn’t everything, but there is absolutely nothing worth having, telling, or hearing about with bad attitude.
Attitude is 70% of everything we do, have, & share.
An owner with a positive attitude & attitude of gratitude leads a group of people who will have the same attitude. Being grateful you own a business will result in employees who are grateful to have a job.
The owner with bad attitude will develop a team of people with equally bad attitudes. Bad attitude employees will get in & stay in the bad attitude barrel. It is where they are most comfortable; rolling around in their own #%^.
Ducks fly with ducks & geese with geese. Happy, positive attitudes of gratitude will naturally isolate & weed out bad employees much faster. It is easy to spot the lone wolf over in the corner looking for anyone to listen to their complaints of the day. People with positive attitudes don’t want to be around, and won’t hang around those with the bad attitude. On the flip side of that, bad attitudes are very uncomfortable as soon as they realize no one is listening.
Happy owners develop happier, more relaxed, but still professional managers. These managers will develop a more successful team of sales people who gel together. It removes the envy
and gossip in the work place. It generates of team willing to help one another for the greater good of the business. People are staring across the show floor thinking negative thoughts
about the top salesman, “Man he’s lucky. Every sale just falls in his/her lap.” Instead, the top salesman is grateful for his/ her position and willing to coach anyone who will ask for the help. Equally beneficial, is the new hand on deck, or sales person in a slump who WALKS across the showroom floor to break down the last missed sale. They are happy and open to coaching to stay up with the team. Positive attitudes don’t want to get left behind. They will find a way. It is an ongoing shaping of the mind. These people become winners by way of the atmosphere around them & the desire to get things done.
As an owner, or manager, we need to identify the bad attitudes quickly. These can infect a team with this business cancer over time. It is important to approach the bad attitude head on & immediately upon discovery. It can be over a bad day, personal matters, or it may just be the true life style shining through after the new job honeymoon is over. Simply ask the question, “I noticed your attitude is different today. Can you share with me what is going on?” This is to
be done one on one & behind closed doors. Remind the bad attitude of the business attitude overall; team. Give them a fair & clear picture of what it takes to stay on the team... first is a positive attitude. Be willing to help anyone who is open to coaching & improvement. When the conversation goes more negative & argumentative, it is time for that employee to think about other options. It is time for management to make them clearly aware of the other employment options. Get rid of the bad attitude life-style employees as quickly as possible.
Employees with positive attitudes will be able to give you great employee referrals. Remember, ducks with ducks & geese with geese. They know other people with the right attitude who will be a good fit for the team. They will not recommend the wrong person to work with team day in & day out. People with the right attitude take pride in what they put their name on. They will not make the wrong employee referral.

Chances

If you don't take a chance, you don't stand a chance!

Toyota's Camry and Prius Top Shopping Lists in April

The article below is from the online magazine "F & I Showroom". What we know as an industry for the independent dealer is, today's new car trend is tomorrow's Pre-owned trend. I hope by sharing this article, it helps many of you stay ahead of the trend...

May 22, 2012

- F&I Showroom

NASHVILLE, Tenn. — Ford ranked highest in Dataium’s Automotive Shopper Intensity index, while Toyota’s Camry and Prius models rank highest among all new vehicles. The index, which predicts new-vehicle retail sales, also showed that sales in April increased nearly 10 percent from 2011.

The index also showed that sales were up 10 percent from last year, while the annual sales rate paced a 5 percent higher clip than April 2011. But the company did note the drag luxury vehicle sales on the annual sales rate.

“Although the overall SAAR (seasonally adjusted annual rate) number was almost 5 percent higher than April 2011 and we expect to see continued growth over the broader market, luxury brands continue to drag the retail SAAR down about 2 percent from the previous month,” read the report. For the first time this year, Ford received the highest ASI monthly ranking of all manufacturers, with leads for the domestic automaker more than doubling from the previous month. Japanese car maker Toyota dropped one ranking to the No. 2 spot, while Chevrolet remained in the third position for the second month in a row.

“Although April brought a 20 percent monthly drop in both searches and visitors for Chevrolet, their leads jumped significantly from March, suggesting stronger sales volumes for the brand in the upcoming weeks,” the report stated. Looking at new-vehicle models, Toyota's winning streak continued for the third straight month with both the Toyota Camry and the Toyota Prius receiving the highest rankings.

“A combination of Toyota's recent marketing campaigns which include low interest financing, and the fuel efficiency of both models have helped keep the brand’s momentum and consumer interest high,” noted Eric Brown, CEO of Dataium. This should positively impact sales for the brand as we move into the peak summer selling months."

Despite record retail sales in April, the index showed the Nissan Rogue having the most dramatic ASI change of all new vehicles, declining by 9 percent from March. In addition to the Rogue, the Hyundai Sonata also had significant ASI declines while the Chevrolet Camaro’s ASI score increased the most from the previous month.

Through proprietary data collection and analytics, Dataium aggregates and measures billions of auto shopper behavioral events from a database of more than 100 million active auto shoppers across a network of diverse automotive websites. For more information, click here.

Imports Head of Class on Top Cars for College Grads List

Imports Head of Class on Top Cars for College Grads List

May 21, 2012 | LOS ANGELES
By Auto Remarketing Staff

Automotive ranking and comparison website Total Car Score has issued its list of the Top Ten Cars for College Graduates, based on safety, fuel efficiency, comfort, performance and cost.

At the head of the class are three Volkswagen models, two Mazda models and representatives from five additional automakers.

“College grads are looking to make an investment in a car that is reliable and cost-conscious,” said Karl Brauer, editor-in-chief of Total Car Score. “We compiled a list of the top-rated cars that offer the best quality while being very affordable.”

The Total Car Score assigned to a vehicle is an overall industry assessment that combines quantitative car reviews from various major automotive authorities, including the Institute for Highway Safety and the National Highway Traffic Safety Administration, the company reported.

Volkswagen had the most models on the list, with the Golf ranked in the No. 1 spot, the GTI coming in second and the Jetta in ninth.

Brauer noted the 2012 Ford Focus, ranked third on the list, has shown a major improvement in the ratings and reviews received since its introduction.

Also notable is the presence of two Mazdas on the list, he said, including the updated Mazda 3 with SKYACTIV engine technology to improve fuel efficiency, and the Mazdaspeed 3.

Overall, the Total Car Score Top Ten for New College Graduates are:

• Volkswagen Golf
• Volkswagen GTI
• Ford Focus
• Mazda 3
• Chevy Cruze
• Mazda Mazdaspeed 3
• Hyundai Elantra
• Scion xB
• Volkswagen Jetta
• Kia Forte

All of the vehicles in Total Car Score’s list have a manufacturer’s suggested retail price that starts under $25,000, with seven of the 10 starting under $17,000, the company reported.

“In today’s extremely competitive new-car market, automakers are providing higher-quality cars at lower prices,” Braun said. “These models offer more technology and convenience features than ever before in the compact car segment.”

HOW TO COMBAT A CREDIT UNION STEALING YOUR WARRANTY BUSINESS

-          By Paul Potsiadlo

Like anything, if you are trying to convince someone of something after they have made up their mind; you chances of success are very low.

Some credit unions will use this tactic, since they have the trust of the customer for a car loan at a very competitive rate, they will talk to the customer about a warranty to cover their investment.   Sometimes the credit union will tack an extra six months on to the loan if the customer takes the credit union’s Vehicle Service Contract and many times the vehicle service contract they are selling is less expensive due to lower markup than the one the dealership is trying to sell. 

To be able to combat this situation save some of the vehicle service contract deals, the dealer must be aware of what it happening and why, and needs to be trained on how to preemptively counsel the customer on what is going to happen when they go to get the check.

The dealer must agree to fight for his profits on vehicle service contract’s and will need to spend some time with the customer in advance of them going to the credit union to get their check.  PASS system know how the customer will pay for the car, ask questions.

Present and explain the vehicle service contract to the customer following our PASS guidelines.  On credit union customers where the credit union is known to steal the business, explain to the customer what will happen when they go to the credit union and how and why the credit union will try to sell them their vehicle service contract. 

Let them know the credit union is interested in increasing the amount of the loan at whatever interest rate, to generate more income on the books.  They have a “branded” vehicle service contract they will be using but once the deal is done the credit union will have no input into any claims situation.

Explain to the customer why your dealership is dealing with Preferred Warranties, PWI is in the vehicle service contract business, not the finance business and everyone working for PWI is an employee of the company, not someone working for just a commission, or a disinterested third party claims adjuster. Explain customer service, length of time in business, and a relationship to help the dealer’s customers, point to plaques, awards, and point of sale materials in the office.  The dealer must let the customer know he is looking for a customer for life, regardless of where they get money to buy the car. The dealer must let the customer know that even if he does not chose to cover his car with a PWI warranty, the dealer wants to help his customers down and road and can suggested repair facilities if his vehicle is not covered under a vehicle service contract.  The dealer must let the customer know he will make a small but reasonable mark up on the vehicle service contract, but he is in the car business and like everyone needs to make a profit.

To empower the customer when he talks to the credit union rep, have the customer ask that person, “What is the BBB rating of the vehicle service contract Company you are trying to sell me?”  Use those exact words.  Have the customer ask next, on a 36 month vehicle service contract how many miles of coverage are you trying to sell me.  (Sell me)  If the dealer has presented a Premier plan, ask is the coverage you are trying to sell me an exclusionary plan or is it listed coverage. (How many people at a credit union can answer that?)  There are a lot of questions you can arm your customer with, ignition management controls, roadside, check engine light coverage,

Getting a live person on the phone, ect. 

The dealer must be committed to saving the deal and vehicle service contract for himself and must be able to think on his feet, customizing the question to the customer and vehicle service contract plan.  It must be pre emptive and the dealer must remember, he can influence the outcome, but no one bats a thousand.

The Easiest Money a Dealer Can Make

By Mike Bowers

As a fellow independent dealer I can certainly appreciate the challenges that have been presented to our industry over the past few years. With a lack of quality inventory, increasing competition from franchised dealers and the pricing stresses caused by the shift of our businesses toward the internet, making a solid profit can seem more difficult than ever. I don’t need to tell you more stories of seasoned dealers who have gone out of business over the last few years and I sincerely hope that the information I share with you in regards to selling service contracts can help to make sure that you (and I for that matter) are not among the dealers who have to give up the vocation we love.

Like me, you have probably been approached many times by someone trying to show you how to make more money selling service contracts. The sales trainer or service contract representative undoubtedly told you that their selling system would provide results and deliver an unbelievable boost to your bottom line. However, despite their slick and refined approach and impressive software and training material, there is one major flaw to every training system I have ever seen-- they lack relevance to independent dealers.

Those who service the new car and franchise side of the industry have very little working knowledge of what we do as independents. They have no idea the time and energy it takes to hunt down good inventory, manage relationships with your wholesale contacts, recondition and advertise your vehicles, relate to your customers, manage your sales staff, keep your books up to date and still make it home in time for some dinner and a little league game. I understand how difficult it is to handle those responsibilities and still find time to think about how you can increase your sales penetration when it comes to selling F+I products. The problem is we as independent dealers tend to spend so much time handling the day-to-day business of buying and selling cars that we fail to see the easiest opportunity to stay profitable under the current economic conditions.

The expression "easy money" may make you somewhat skeptical, but I want to tell you about a pile of easy money you may be missing completely. A few months ago, as my team and I were discussing how to sell more extended service contracts at John’s Great Cars, I was standing in the closet where we keep our paperwork for deals. We had been making some progress and getting our sales staff on board with the idea of selling service contracts consistently when I noticed a stack of unused service contracts sitting among the rest of our forms. I was enjoying the profit we had made on our last few deals and as I looked at the stack of contracts beside me I realized that there in that stack of paper was the easiest profit that any dealer can make. When you sell a service contract there are no cars to buy, no cars to transport, nothing extra to advertise, nothing to clean, nothing to fix and, most importantly, nothing to worry about after the sale.

Most of the work is already done in selling the car and if we, as independents, can commit to changing the culture in our stores, we can truly unlock the potential that is hidden in our dealerships. It sounds almost too simple, but I have found based on my own experience that the skills and processes needed to sell service contracts are no different than those we already employ selling cars. Sure, it is effective for sales trainers and some warranty companies to convince you that you need an elaborate or tech heavy approach to selling F+I products. They want to sell you on their services and, in the case of trainers and consultants, justify the fees they charge. There is no magic and there are no secrets. All that is required is for you, the decision maker in your dealership, to get excited about the easiest money you can make and take the time to pass that excitement on to your employees.

I can go on at length about what I feel is the right way for independents to sell service contracts, but I realize that each situation and dealership is unique. What works at our store may not exactly fit yours and you may have more or less resources available to put towards your effort. If you are ready to make some seriously easy money the one constant is that you must commit to giving every customer the opportunity to buy your service contracts. I can’t tell you how many customers left our store over the last 20 years without even knowing the options that were available and I hate to think of the mountain of profit that walked away with them. Since our commitment to selling contracts began in earnest, we have sold contracts to customers who I never thought would buy, including several mechanics who know what it costs to fix a car in today’s market. Now I venture no guesses about who will buy a service contract and work hard to make sure that every customer is presented with every option every time.

The idea of selling service contracts tends to raise some questions among independent dealers and especially their sales people. No one wants to jeopardize a sale by trying to add another product to the mix, most sales people do not want to learn something new, and some people just don’t believe in warranties as a matter of principle. I understand the objections and have dealt with them with our sales staff as well. But the decision to focus on selling more service contracts should not be left to our sales people in a sort of democratic vote. I firmly believe that when we sell cars we are not simply closing another deal, but building a business relationship with our customers. As such, we need to protect them from the inevitable failures that occur with every vehicle. This thought is what really got me excited as we began to sell more service contracts. Not only were we instantly more profitable, but we were insulated from many of the headaches that come along with selling used cars. Our business may change on a month- to-month basis, but I have done this long enough to know that one thing remains constant – cars break and our customers like us a lot more when the repair is covered.

I hope you can get excited about the prospect of being successful selling service contracts and begin to work on the best way for your dealership to give every customer your best effort. At John’s Great Cars, we have dedicated two people on our sales staff to handle our F+I and now our sales staff turns over every customer for a separate presentation on the options available to protect their new vehicle. We have been very successful with this process, but even if you have only one or two people at your building, there are ways to ensure that every customer is given a proper opportunity to buy. You wouldn’t let a customer walk away who might buy a car, and you shouldn’t let one get away who might buy a service contract. The money is just too easy!

Mike Bowers is a co-owner of John’s Great Cars, Reading, Pa. His dealership began partnering with Preferred Warranties in 1998 and has sold nearly 5,000 PWI service contracts to date. You can reach Mike at (484)663-0997 or by email at info@johnsgreatcars.com.

Facebook drives website visitors, not leads, report says

http://www.fi-magazine.com/News/Story/2012/05/Facebook-Drives-New-Visitors-to-Dealer-Websites-Report-Shows.aspx?ref=-20120510&utm_source=Email&utm_medium=Enewsletter

May 10, 2012

NASHVILLE, Tenn. — A new report on the influence of social-media sites on auto shopping behavior showed that many dealerships are successfully utilizing Facebook to generate new visitors to their Websites, but it also showed that traditional methods are still required to turn visitors into leads.

Issued by Dataium, an aggregator of online automotive shopper behavior, the report looked at online shopping events from a database of more than 100 million active auto shoppers, and detailed the impact of social media on visits, vehicle searches, inventory views and lead on dealership websites.

The report showed that while only 0.45 percent of shoppers have been referred directly from Facebook to a dealership website, 94 percent of those referrals visited the dealership website for the first time. In addition, 27 percent of those first time visitors return to the dealership website after their initial visit, compared to a 22 percent return for the average shopper.

In terms of vehicle views, 36 percent of shoppers referred by Facebook viewed at least one vehicle, compared to 32 percent of shoppers who were referred by other websites. Interestingly, however, Facebook shoppers view an average of only two vehicles compared to other shoppers who, on average, view five vehicles.

"The data shows that Facebook is a good approach to getting new visitors to dealership sites,” Dylan Snyder, senior manager of business intelligence at Dataium. “The lead-to-visitor ratio, which is less than half of our network average, is disappointingly low, however. This highlights that dealerships cannot rely on Facebook alone; traditional methods are still needed to turn these new visitors into leads."

To view the complete report, click here.

The auto world mourns the loss of Carroll Shelby

http://www.freep.com/article/20120512/COL14/205120397/Carroll-Shelby-Auto-legend-put-American-muscle-road

The will must be stronger than the skill!

The Military is coming home... are you welcoming this crowd?

Our service men & women will be coming home in mass numbers over the coming months & next two years with the draw downs in the Middle East.

These soldiers will be landing at bases around the U.S. Many will transfer out & move into the civilian sector.

Here are some thought provoking questions to help you make your business attractive to these men & women who have so honorably served:

• What are you doing to draw this crowd to your dealerships?
• Do you have the right lenders in place? If so, are they advertised specifically on your website?
• Have your ever sold to a veteran in the past?
• What is your special offer for military service men & women?
• What are you willing to do for them in return for their service for you? Yes, they've served you.
• Are you & your staff military friendly & knowledgeable? Do you need to read up, catch up?
• Do you even appreciate them?
• Is there a flag flying at your dealership? As a vet myself, that is the greatest thank you.
• How does your website attract veterans?
• When in a hiring need, would you consider advertising toward & training a veteran?
• It is perfectly OK & you should require a military ID with any special offers.

The current federal pull out date for Afghanistan is 2014, with talks in place for training, transition, and handover of security to the Afghanistan soldiers. According to the Associated Press on April 16, 2012, the the US Troops count will be down to only 68,000 by September 2012. These troops are steadily coming home.

It is important to be friendly to this segment of your business. Friendly means serving them. Put them in the right vehicle that is truly ready to be sold. Give them your best effort. Use GAP & a service contract to protect you, the soldier, & their investment. Don't be the person to allow a total loss, or an unexpected repair become something the soldier has to worry about. Let them come home, focus on family, and living again.

WHEN IMPROVING YOUR DEALERSHIP, IT STARTS WITH YOU

by Willie Grubaugh
Preferred Warranties, Inc.

Where should you start when looking to improving your dealership?

YOU! It all starts with you.  Painting, a remodel, and, or changing inventory simply will not do it. Work to change yourself first to match up with the desired change you have for the dealership. Change is good. Change is how we find new, more efficient ways to accomplish things. Change will teach us it is ok to fail. A batter in the majors will fail 630 times, but we all want a batter line up who hits 330. We don’t just want one; we want NINE batters who fail 630 times each on average. Think about this math for a minute, we want an average of 630 failures X 9 batters & that is our choice team! That is 5,670 Failures. We don’t focus on the failure itself. We focus on the lessons from each. Batting averages are not – 630 (negative 630), they are 330; that’s it, 330. We use the lessons from failure for change. This change worked, that one didn’t, & drive on.

Appearance -

What do you need to change? Some people need to change the way they dress. Some change may be in talk, how much cursing you do, slang, too much jargon, or making people feel incompetent through words & digs; too much sarcasm for comfort's sake. What about grooming, shaving, & visibility of tattoos? It all matters. Ducks fly with ducks, and geese with geese. We draw people like ourselves. If we want a different crowd, it is in ourselves where the change has to occur first.

What do you want your employees to change? The same holds true for employees as you, but it still starts with your change. You may be the boss. You may own the place. They are going to follow your dress, your walk, your talk.

1. Goals -

Are you even goal oriented?

What is the motivation of each goal?

What are your written, defined, clear goals for change?

Do your goals make sense for your business? Test them with SMART

1. S - Specific; what is the specific goal, not general, or vague here
2. M - Motivation; what is the purpose & reward for achieving this goal?
3. A - Accountability; How are you holding yourself & your team accountable for the goal(s)? How often are you discussing it? Do you meet at the same time each day, week, or month? Do you even meet at all? It is important to meet to track & celebrate the successes & progress along the way. Do not ignore the shortfalls. Have the tough conversations with yourself & your team as soon as the shortfall is recognized. Ignoring & avoiding is the single best way to fail. It is important, & only fair, you know where you stand with yourself, as well as where your team stands with you. This prevents head trash, small things creating anger & frustrations over time until the inevitable blow up. Don't do that to yourself, or your team. It burns energy with zero positive results.
4. R - Realistic; Is the goal something YOU can realistically achieve? Do you have what you need in place? Do you have the right team in place? Who all will be rewarded for helping achieve the goal(s)? What do you need to go get, implement, or get rid of immediately to start toward the goal? Be honest with yourself here. What bad habits do YOU have in the way you need to dump? What strengths do YOU have to build on?
5. T - TIME! By when will you achieve this goal? Don't just leave the goal out there with a date of "Someday, I want to..." That is the worst thing you can ever do to yourself, & your team.

The Plan(s)

What is your written, detailed plan for achieving each goal? No plan, no goal. There is no such thing as luck; good or bad. Luck is what the outside world sees when hard work & a plan comes together. “Good luck” happens to those with hard work & a plan. “Bad luck” is what happens to those with poor work ethic, no plan, & no desire for the lesson from the failure.

Continuing Education -

Seminars – Look to your state & national organizations websites for dates & locations of what they offer. Look to your vendors to see what training they offer. Many offer onsite training. Some classes may be in groups; so ask about dates & locations & what your vendors offer. They may sponsor seminar events, or may even host the training themselves.

Books – Look for books related to your industry. Ask your peers what their latest read is, what did they get out of it, what change are they making because of that read. Look for books to help with your position. There are so many that have gone before you. Books are a great resource to learn from their mistakes. People worth following are humble & open about the mistakes they’ve made & they lessons they’ve learned. Know-it-alls will never help you. 

News & industry related articles for knowledge – This is the easiest. You never have to leave your chair. Open you laptop, or tablet, start searching & reading. It is really that simple. Use social media as well. Follow the people with knowledge & experience. LinkedIn, Facebook, Google+, and so many others are out there. I would limit yourself to what you can handle. Over exposure will shut you down here. That is one mistake I have made in the past; trying to be all things, everywhere, at once.

Time -

Are you investing enough time for the changes you are looking for?

MENTOR! This one is big to me. Who is your mentor? Who are you able to comfortably able to call on for questions, advice, frustrations, & round table discussions with? It may be a group of people. I recommend one mentor inside your business, & one outside of your business, but in the same title position, or title above your current position. A solid mentor is brutally honest, encouraging, & humble. They will help build you up when you need it most. They will tell you to suck it up, pull up your bootstraps, & finish it when you need it most.... usually when you are on the edge of a breakthrough, but you can't see it yet. A mentor can see it. They are able to look at you & what is going on around you objectively.

Change has brought about things like electricity, phones to cellular phones, & indoor plumbing. I promise you, change is good. None of these things happened over night. Alexander Graham Bell had no idea what Steve Jobs was going to bring about. Both saw change & benefit to our futures. I searched, found, & saved the photo of this old phone with my iPhone. Paint is not change. Paint only covers the old, but underneath, everything is the same. Make the change you can clearly see needs to take place within you.