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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
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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
sargiii@sargentsmotorsports.com
Dan Nicholson (CMD),
Executive Vice President
Central Oregon Motors
1123 N 6th Street
Redmond, OR 97756
541-923-3961
Fax 541-923-3964
com@bendbroadband.com
OIADA Staff
Wendy Riggi,
Office Manager
Wendy@oiada.com
Valerie Dominici
Dealer Relations
VDominici@oiada.com
Bryan Steward,
1st Vice President
AAA Oregon AutoSource
6 SW Centerpointe Dr. #100
Lake Oswego, OR 97035
503-973-6570 Cell 503-709-3835
bsteward@aaaautosource.com
Doug Blizzard
2nd Vice President
Blizzard Motors, Inc.
1604 E. Burnside
Portland, OR 97214
503-238-5510
Fax 503-238-3838
doug@blizzardmotors.com
Tommy Wilson
Secretary
Tommy Wilson Motor Company, LLC/
9215 SW Canyon Rd.
Portland, OR 97225
503-629-6000
tom@tommywilsonmotorco.com
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
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OIADA Welcomes You!
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
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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.
reed@amtrustgroup.com 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
joverby@autoremarketing.com.
AGENCY
KELLY MARTIN INSURANCE AGENCY, INC.
One of Oregon’s Largest Agencies
Exclusively Devoted to Serving Used Car Dealers

Tailored policies that you want

Insurance/bond pricing among the best

One- or three-year term bonds

Offer only top-rated carriers with peace of mind claims practices

Assistance with DMV dealer licensing process

Car, RV, heavy equipment, tractor/trailer, and motorcycle dealers
HUNDREDS OF DEALERS’
FIRST CHOICE!
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
bobbi.dealerservices@gmail.com
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
joverby@autoremarketing.com.
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
joverby@autoremarketing.com.
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: vdominici@oiada.com
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
Amelia.goldman@autotrader.com
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
evelyn@hechtins.com, 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
nwaasales@brashers.com
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