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.