1. automotive and vehicles
2. buying and selling cars

volume 2, issue 2
Your connection to Ontario’s Used Car Industry
driving loyalty
14
P
what does a successful loyalty
program look like for your
dealership?
female friendly
24
P
female clientele are the most
powerful purchasing force in
today’s automotive marketplace
marketing to millenials
36
P
nine million Canadians are coming
of age now and are a very powerful
cohort you can’t afford to ignore
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volume 2 number 1
Used Car Dealers Association of Ontario
230 Norseman Street, Toronto, Ontario M8Z 2R4
Tel 416.231.2600 Toll Free 1.800.268.2598
email: web@ucda.org
www.ucda.org www.ucda.ca
Publication Mail Agreement #41890516
Ontario dealer is published by
Laservision Graphics four times a year
130 Industry Street, Unit#36A, North York, ON M6M 5G3
Editor
Gina Monaco
gina@ontariodealer.com
1.647.344.9300 or 1.905.628.4843
Advertising Sales:
Terry Coster
Direct: 416.360.0797 Office: 647.344.9300
Contributors
Andrea Connell
Anna Davey
Sean Deasy
Dave Kemp
Connie Motz
Anja Sonnenberg
Lori Straus
Angela West
Cover: photography by Sabrina Bertsch
in each issue
5 The Driver’s Seat................................. Warren Barnard
7 Editor’s Note.................................................. Gina Monaco
9 Member’s Corner ........................................... Bob Pierce
10 The Law Matters ........................................ Jim Hamilton
12 Sane Selling ........................................................ Dave Kemp
22 Dealer Profile.........................................Anja Sonnenberg
28 Tech Talk ............................................................Angela West
40 Social Media Spotlight................................Gina Monaco
44 Industry News..............................................................................
46 The Last Word ................................................ John Kenny
The publisher of The Ontario Dealer reserves the right to turn down any advertising or
content submitted to it. The Used Car Dealers Association of Ontario and the publisher
accept no responsibility for claims or statements made by advertisers in this publication or
by the independent authors of articles appearing in this publication. All statements and
opinions appearing in this publication are those of the writers themselves and are not to be
construed as reflecting the position or endorsement of the Used Car Dealers Association
of Ontario or the publisher.
ONTARIO DEALER
3
feature stories
female friendly by Connie Motz
24
31
36
In recognizing that women make up 60 per cent of new car buyers and 53
per cent of pre-owned vehicle customers, female clientele are the most
powerful purchasing force in today’s automotive marketplace.
more satisfied customers by Anna Davey
Here are some strategies for creating happier, more loyal customers.
marketing to millenials by Lori Straus
These roughly nine million Canadians are coming of age now and are a very
powerful cohort you can’t afford to ignore.
also inside
14 driving loyalty................................................................................................................... Sean Deasy
18 best practices.................................................................................................................. Lori Straus
Each issue features a guest column discussing an issue of interest and importance to the industry.
If you are interested in having your personal opinion heard, please contact the editor at gina@ontariodealer.com
FORM
RE
YOUR
BUSINESS!
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Contact: 416.534.7278 or 1.877.414.7278 email: info@laservision.ca
4
ONTARIO DEALER
We offer colour, numbering and can design your forms from scratch.
Call 416.534.7278
www.laservisiongraphics.ca
the driver’s seat
spring is here
….finally!
W
hat a Winter!
It was a tough one for
everyone. Many businesses
and industries, Ontario’s used car
industry included, suffered through the
cold, stormy days that lasted well into
April in many parts of the province.
New and used vehicle sales were hit
hard by the icy blast. Auctions
struggled to clear vehicles of ice and
snow so they could drive them
through the lanes. With few
customers venturing outside, Mother
Nature put the brakes on the
recovery we were starting to see in
retail sales during the last half of 2013.
If there was any silver lining, it may
have been for dealers who also have
collision shops or towing businesses.
They’ve been kept busy by the
weather, but otherwise, service
departments and repair shops also
saw business drop. Who wanted to
venture out in brutal cold for regular
maintenance?
The country is full of vintage 1950s
cars …. Chevys, Pontiacs, Mercurys,
you name it. Most of them are in
amazing condition and their owners,
who must spend many hours and a
very large portion of their small
incomes keeping these cars running
…. usually with improvised parts and
European or Asian engines … are
rightfully proud of their cars.
Despite having very limited
entrepreneurial freedom, the Cuban
people display a great ability to
innovate and make the best of what
they have, with what they have.
I had the pleasure of a two hour trip
in this beautiful 1958 Chevy Bel Air.
If you love old cars, a visit to Cuba is
well worth it just to see these classics!
Warren Barnard, Executive Director, UCDA
I hope you enjoy what we have for
you in the Spring issue of The Ontario
Dealer.
• Loyalty programs that work.
Customer retention is one of the
most challenging issues facing the
auto sector, whether new or used.
Read how some dealers are using
loyalty programs to keep
customers coming back.
...continued on page
16
There’s a lot of pent up demand out
there, for both sales and service that
should benefit dealers in the coming
months.
Speaking of parts and maintaining
vehicles, on a recent trip to Cuba
I saw firsthand how necessity is the
mother of invention.
ONTARIO DEALER
5
Gretzky never
pole-vaulted
on the side.
*
We’re auto finance specialists
and plan to stay that way.
Our only business is auto financing, which allows us to be more
responsive than our competition. Not only do we offer competitive
rates, but you get friendly, prompt service from professionals who
know your business. Try Rifco and see how good financing can feel.
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Our only business
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*Wayne Gretzky and his personality have no affiliation, association, or relationship whatsoever with Rifco National Auto Finance
Corporation. Nothing herein should be construed as an endorsement by Wayne Gretzky of Rifco National Auto Finance Corporation.
editor’s note
why I never liked car service departments
F
or many years I would have
nothing to do with car dealerships or their repair shops. If my
car needed work done, I always asked
one of my brothers or my husband to
deal with it – I just always felt I would
be treated differently. Here’s why.
I lived in Calgary for eight years with
my husband and two young sons. One
cold, snowy morning there – gee,
what a surprise – I had an uncomfortable encounter with a car service rep.
We had just graduated to a two-car
family but it (a Buick) wasn’t ready for
pick up yet, so I had to drive my husband to work. I would just have
enough time to drop off my one son
at school on the way back.
I had dropped my husband off and
was headed for home when my car
(a Ford) starts to sputter, and it
died…on a very busy road. If you
know Calgary, those roads are like
highways, and at the time we lived in
a sub-division called the Ranchlands,
which wasn’t built up yet.
I managed to get the vehicle to the
side of the road and just sat there for
a minute trying to figure out what to
do. It was cold and a light snow was
falling.
I wasn’t publicly presentable – no
make-up – I don’t even think I
brushed my hair. I wasn’t dressed for
the weather because I was just taking
a short drive. I had thrown on a pair
of track pants, threw on a jacket – no
hat or mitts, bundled the kids and off
we went. This was also pre-cell phone
days.
Anyway, we got out and started walking – my school-aged son holding my
hand and my two-year old in my arms.
I had no idea where to go – just had
to find a phone. Fortunately a motorist stopped and offered to take us to a
dealership close by that had a service
department.
I can imagine what the guy standing
behind the counter thought when this
motley crew walked in. I told him the
problem and he said it would take
three hours or so because they were
busy. What??? Then he just left me
standing there -- no, “you can take a
seat over there,” or “there’s coffee
over there,” or “the washrooms are
there.” Nothing. And the other customers sitting in there – all male – just
stared at me.
I stood there feeling very outside my
comfort zone. I did manage to ask to
use the phone and called my husband.
He asked to speak to the service rep
so I handed over the phone and sat
down while they spoke. The service
rep motioned me back to the phone.
When I spoke to my husband, he said
it would be looked after as soon as
possible. In the meantime my husband
would borrow a friend’s car from
work to pick me up. It took a whole
Gina Monaco
20 minutes for my husband to get
there. When he pulled up, lo and
behold, at the same time, a tow truck
pulled in with my dead car. That did it
for me – I vowed never to deal with
anyone, ever, to do with cars..ever!
But, fortunately, times change. Today,
I’m treated much differently, although
I still come across gender bias now
and again. I’ve also learned to ask a
lot of questions.
I do my research on the Internet and
now consider myself somewhat savvy
when it comes to cars.
I like my mechanic – he is honest and
gives me options. In return, he has a
very loyal customer who refers him to
others all the time. OD
ONTARIO DEALER
7
All-in pricing... it’s the law
CAR PRICING IN A NEAT LITTLE PACKAGE
BuyWithConfidence.ca
members’ corner
our dealer insurance program
T
he UCDA’s dealer insurance
program has consistently been a
popular and proven member
service. The program was the result
of the vision of Bob Beattie and Jack
Baird who truly believed that used car
dealers were not a risk to the insurance industry. This set into motion the
current insurance program, and is
proven to be good for both the insurance company and dealers.
Although the program has had different insurance companies, the UCDA
has only had one brokerage, Baird
MacGregor Insurance Brokers LP since
1995, which delivers the dealer general insurance program. In the program’s
start-up year, Baird MacGregor
insured approximately 200 dealers.
Today, over 1400 member dealers are
under this exclusive UCDA member
program.
“It has been our experience that a
dealer program flourishes when there
is a commitment to communication
and customer service to our UCDA
member customers, and that sound
underlying risk management practices
are employed by the participating
dealers,” said Philomena Comerford,
Principal and CEO of Baird
MacGregor Insurance Brokers. “These
principles have resulted in a 95%
renewal rate for existing dealers and
reliable insurance products for startup newly registered members.”
Baird MacGregor has an experienced
and dedicated team of knowledgeable
brokers who specialize in servicing
dealer clientele. This team is supported by a “live” receptionist who
makes sure that customer calls are
directed to the assigned licensed
broker. In case of an emergency, any
team member will field a call, including
senior management.
The Baird MacGregor philosophy is to
return customers calls promptly and
to perform a detailed review of every
customer’s insurance program upon
initial binding and prior to each anniversary. Underwriters look for
well-managed risks and these selection criteria are reflected in the good
underwriting performance of the program Comerford said.
“One of the keys to maintaining a successful insurance program is consistent
adherence to sound loss control practices and procedures. The key to cost
control is loss control,” she added.
In keeping with this objective, Baird
MacGregor has created an information sheet of helpful loss control tips
that dealer members can implement
to improve the management of their
day-to-day operations.
These tips encompass a wide range of
situations. For example, waste oil can
become an environmental issue as
well as a fire hazard. Baird MacGregor
suggests that waste oil be stored in a
tank approved by Underwriters
Laboratories of Canada (ULC) for the
purpose of storing oil. If the tank is
Bob Pierce
stored indoors it should be vented to
the exterior. A licensed recycler
should regularly collect oil to minimize
the volume stored.
Another potentially dangerous situation is allowing customers into the
service area. This practice exposes
them to injury – they could fall, slip, or
trip. To reduce the risk of injury, signs
should be posted restricting these
areas to staff only and this rule should
always be enforced.
Dealers can guard against fire loss by
making sure portable fire extinguishers are serviced and tagged annually
by a qualified contractor to ensure
effective and safe operation.
These are just a few of the suggestions. The next issue of the Ontario
dealer will have a section devoted to
Loss Control Recommendations. OD
ONTARIO DEALER
9
the law matters
changes to the
ppsa and rsla
A
s of August 1, 2007, changes
to both the Personal Property
Security Act (PPSA) and the
Repair and Storage Liens Act (RSLA)
became effective.
PPSA
Most dealers are familiar with the
PPSA in relation to car loans and
banks. A financial institution loans
money to a consumer to buy a
vehicle. They “secure” this debt by
registering a lien on the vehicle under
the Personal Property Security
Registry set up by the Ontario
Government under the PPSA.
The change to the PPSA was in the
area of leasing. This affected all
companies who lease vehicles for
more than a period of one year. Such
leases now require a lien for the
lessor to be secure even if the leases
are “true leases” (as opposed to
conditional sales or financing
agreements that look and act like a
lease). This brought leases more in
line with traditional financing.
The UCDA has always recommended
liens be registered by all dealers who
engage in financing or leasing, for any
period and under any circumstances.
Without a lien the risk always exists
that in a bankruptcy the trustee could
take the position the vehicle forms
10
ONTARIO DEALER
part of the bankrupts’ assets even if
it’s registered in the dealer’s name!
When you have a security interest in
a vehicle, it only makes sense to
register a lien to let everyone else
know it too!
RSLA
Dealers with service facilities and
some associate members of the
UCDA who service vehicles may have
encountered or used the RSLA. It
provides strong relief to repairers,
with or without possession, of motor
vehicles they have repaired, stored or
towed and have not been paid for.
Not very many people know about
this legislation or its considerable
power. Used correctly, a repair facility
can self-help their way through some
pretty complicated collection
problems without ever having to set
foot in a courtroom. The RSLA
ensures that the owner does not take
the benefit of an improved unit
without paying the burden of the
repair costs.
As long as the requirements of the
RSLA have been followed, even a
consumer who has their vehicle back
on the road can have it repossessed
by a repairer seeking to satisfy an
unpaid bill.
Jim Hamilton
Sometimes, repairers engage the
services of a bailiff to repossess the
vehicle for them instead of doing it
themselves. As a side note, dealers
should be careful when using a bailiff
to ensure they are registered, and this
can be confirmed on-line or through
the UCDA.
Unfortunately, in the past, some
repairers were presented with large
bills for these services. In some cases
the bailiff’s bill exceeded the original
repair bill! Consumers were told they
could not have their car back until
they paid the repair bill AND the
bailiff’s bill.
13
If you
fund
less than
out
of
non-bank finance applications
then you are losing out…
It`s time for
The RSLA has been amended to make two things clear.
First, the costs a repairer is able to claim from a consumer
for seizure of a vehicle do not form part of the lien for the
repair (ie. the vehicle cannot be held until those costs are
paid) and second, the costs are limited by the Costs of
Distress Act, which places reasonable limits on what can
be charged for seizure and related expenses.
Repairers now need to consider if the cost of repossessing
a vehicle is ultimately worth it knowing that the only way
they will likely recoup those expenses is by suing the
consumer they repossessed the vehicle from!
The PPSA and the RSLA remain powerful tools in this
industry. Used wisely and correctly, they can help keep
losses down and profits up. OD
UCDA
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416.599.7412 or 1.800.668.8265
Fax : 416.232.0775 or
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ONTARIO DEALER
11
sane selling
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12
ONTARIO DEALER
by Dave Kemp
Let’s face facts. Selling is an
acquired skill. You have to be
good to succeed with aggressive price shoppers and people ‘just looking’. You and
your sales consultants have to
be ready and capable to handle your customers who say
“I’m not buying today but
want your ‘best’ price.” At
least 65–70% of your customers are not initially easy to
handle. Are your sales consultants up to selling these buyers? Most importantly, are
they able to deliver a great
buying experience with these
aggressive people?
The Facts on Closing
The mystery shoppers in the industry
have found that most sales people do
not deal adequately with these buyers.
Dealers stats indicate closing ratios are
about 13% with first time walk-ins–
that means only one out of seven
shoppers buy at most dealers they
shop. That seems an awful lot of business to lose.
The Internet has created a whole new
buyer today–more informed, more
skeptical, more price savvy, more
vehicle savvy and more prepared to
buy. But, too often their buying
experience is unpleasant and they
keep shopping. Shoppers don’t have
to buy from inadequate sales
people…and they don’t because
you’re not the only game in town. The
Internet marketplace and competition
has driven the focus on price and
therefore the used vehicle is commoditized in the mind of your buyer.
We are a non-conventional lender!
Cash or other income allowed!
No credit report focus!
We can create a program for the client!
So, ask yourself this question:
Unique offerings to make dealerships money!
What separates your dealership from your competition?
•
•
•
•
•
Your vehicles are similar
Your vehicle content is similar
Your prices are similar
Your advertising is similar
Your lot display, buildings and office furniture are the
same.
• Why would people buy from you and not your competition?
Start with your sales process–from the handshake to the
close. Make it better than your competitors and you will
sell more vehicles with fewer hassles. You will stand for
something positive in your customers mind. You probably
need to update your sales process even more today than
ever before. So let’s go back to the new basics, the opening greet and the money question.
other
lenders
can’t
TREND Financial is a True
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Sales 101– The Opening Greet
So, what is your sales consultants typical opening greeting? Is it still the classic, can I help you or the equally
ineffective, anybody spoken to you yet? Key Point: Train
your sales people to NEVER start a conversation with a
question – it always leads to “No, I’m just looking!” or
“I’m not buying today!” Why start on a negative?
Instead try an opening statement followed by a question.
“Hi, welcome to Trackstar Motors, I’m Dave Kemp and you
are? “What vehicle did you see online that you want me to
show you?” Then lead the conversation with a simple
change of focus. “What are you driving now?”
...continued on page
we do what
35
1-855-88-TREND (87363)
www.TRENDfinancial.com
ONTARIO DEALER
13
driving loyalty
by Sean Deasy
There’s an undeniable buzz
around loyalty marketing these
days. But what does a successful loyalty program look
like for your dealership? And
more importantly,
how can it benefit your bottom line?
Walk into any Starbucks Coffee
House and watch the regulars get
their morning caffeine jolt. You may
not be able to decipher their order
(what does a no-fat, no foam,
no-whip, extra-hot skinny latte even
mean?), but what’s undeniably simple
to follow is the actual transaction. The
swipe of a card (or ping of a smart
phone) not only reduces the touchpoint to mere seconds – without the
inevitable scramble for loose change –
it also offers redeemable points, and
can top up the card automatically
14
ONTARIO DEALER
from the customer’s bank account. In
other words it’s a program that’s truly
centered around the customer, dead
simple to use and incentivizes the customer’s return.
spend money, they are rewarded by
points, which can later be used like
money. It’s simple, straightforward and
is clearly working very well.
Leave it to the top retail brands for a
roadmap to successful innovative loyalty marketing – especially a sleek user
experience. You’re not selling coffee,
but you certainly want to generate
loyalty. Why? Because loyal customers
tend to buy more, are more likely to
recommend your business to others
and, most important of all, they tend
to come back themselves. Again and
again.
In the dealer’s world, the merely satisfied customer is yesterday’s dinosaur.
Today every customer expects satisfaction as a baseline – what is needed
to compete for their guaranteed
ongoing business is a level of excitement that encourages a return visit (at
least) or a lifetime of loyalty (at best).
And that is sending the strategies of
loyalty marketing into the stratosphere, both in business and creative
terms, and all focussed on customer
retention.
The ‘why’ of loyalty
The top loyalty programs in the world
not only retain customers, they bolster their brand. Starbucks has created
a program that succeeds because it
delivers on the primary promise of all
loyalty programs: when customers
“Loyalty programs aren’t new, but
more and more dealers are considering going with their own program,”
says Brian Caldwell, President of
Dealer Communications Inc. “It’s a
huge issue: how to get those customers to come back.” According to
Caldwell, the time to act is right now.
“Consumers in 2014 are participating
in more and more programs. And if
you as a dealer can get them in once,
that’s great. Now how can you get
them back in again?” A rewards program is on the way to doing just that.
“Loyalty programs have become part
of our culture,” says Caldwell. “And if
dealers are looking for an edge, they
need look no farther than the Moritz
Report, which indicates that the average Canadian is a member in more
than seven loyalty programs.”
Your approach needs to be careful
and considered. The recommendations of the Moritz Report, the
Canadian whitepaper on loyalty
marketing, underline the need to
maintain respect for the customer.
“Being transparent with customers
about what is being captured and how
and by whom the information is to be
used…will ensure that marketers’
efforts to create personalized experiences will be viewed as surprising and
delightful, rather than creepy and
weird.” But equally important, the
report contends, is “the social
contracts into which customers have
engaged with brands. The foundation
of this is trust.”
How is this trust built? Caldwell, who
has witnessed firsthand the growth of
loyalty programming among dealerships in Quebec, appreciates the staggering variety of strategic options and
possibilities facing Ontario dealers,
who are eager to leverage membership to fill the retention void.
Getting started
“Dealers can start by asking themselves any of the following questions:
‘How am I going to communicate?
How am I going to reward my customers? Will I use cards versus no
cards? Do I simply offer discounts on
oil changes or other service? And
what exactly am I rewarding – is it
based on referrals?’” asked Caldwell.
also cross-over promotions and referrals and even a social media call-toaction (“Like us on Facebook!”) can
garner a free litre of oil.
Cross-promotions on their own seem
to work exceedingly well for constant
(day-to-day) transactional purchases –
think AirMiles reward miles for your
groceries or fuel purchases. But what
about car dealerships?
That said, most dealers are already
busy enough and not many possess
the in-house resources to generate
the creative and send rewards-based
email notifications let alone tackle and
manage the data to maintain such a
program.
Parts and service may be the most
obvious touchpoint for a rewards program, but anything goes – even vehicle
purchases, even though on average a
customer buys a vehicle every three
to five years. Dealers can create a
loyalty program that offers an opportunity to keep customers buying cars
from you, as well as generating new
customer business. As they accumulate ‘rewards’ points from each and
every service and parts transaction
customers build a stronger relationship with your dealership. Since customers can only collect points exclusively at your dealership, the likelihood
ramps up that they will come back to
increase their rewards balance – and
eventually redeem them towards their
next vehicle purchase.
It seems pretty straightforward. For
dealers taking a loyalty-program
approach into their own hands (putting aside consultancy for the
moment) it’s a matter of time. How
much time do you have to set up and
maintain a rewards-based system, one
that hinges on data gathering and
regular communications? Experts
agree it starts with taking the time to
understand what your customer will
truly value. This could be as simple as
offering a discount on scheduled oil
changes and ties into tire storage.
With used car dealerships, the emphasis would obviously be on more service, more body shop, but there are
The consultants
Enter the loyalty-marketing consultants. There are quite a number of
loyalty marketers out there who are
poised to help dealers better use their
data and, as Melissa Vargas of
Automotive Loyalty Marketing
explains, use it in various ways, as well.
“From conquest marketing, to upgrade
campaigns, or even the one- or twoday private sale VIP events. The latter
two speak to our company’s own
motto, ‘Your best customer is the one
you already have!’ Marketers from
various industries would all agree that
it is far more expensive to acquire
new customers than it is to keep the
customers you already have – and in
the case of dealerships, those within
their database.”
The various automotive marketing
companies out there are all striving to
help dealerships work with their existing database, and to find ways to communicate with them. According to
Vargas, all of the players have key
competitive advantages and specialties.
Some focus more on target market-mass penetrations using print
media (like flyers), while companies
like hers offer more detailed customer
database analysis, and then work with
their dealers to determine whether,
say, a two-week campaign or a
...continued on next page
ONTARIO DEALER
15
driving loyalty
the driver’s seat
>> continued from previous page
>> continued from page 5
time-sensitive one-day VIP private sale
event exclusively for those existing
customers is the type of traffic activity
they’d like to see at their dealership.
“With the changing marketing media
and increasing competitive scale in the
automotive industry, loyalty marketing
should be a part of every dealership’s
key strategy,” says Vargas. “You can
never take that customer relationship
for granted. Customers who purchase
their vehicles are easily lured away to
have their service done at alternate
shops. Similarly, customers that may
have been service-only could become
your next new or pre-owned vehicle
purchaser as well.”
One of the more established firms,
NuCar, has been around since 1994
and recognized as a leader in automotive loyalty marketing, earning relationships with some of industry’s most
successful dealer groups. NuCar’s
AutoAwards Program creates dealership loyalty by allowing customers to
earn exclusive rebate points applied
toward the purchase of their next
new or pre-owned vehicle. This program continually invites and consistently rewards a dealership’s best
repeat customers.
That build is important to dealers like
Andrew Gorman in Milton, who has
been using Nucar Consulting for the
last five years and is beginning to reap
the benefits.
“You build the relationship,” says
Gorman, who notes that the program
16
ONTARIO DEALER
benefits his dealership, garnering for
his customers everything from coupons for local restaurants to reserved
parking places at the nearby Go
Station.
The program has a deeper
significance, then, not only as a relationship builder, but outside the
dealership gates, enhancing the local
economy and community, and readily
dispelling the notion that loyalty programs are “a gimmick.”
Another program specifically designed
for the industry that has seen success
in Quebec and is now reaching into
Ontario is IQ7/24. The program offers
a turnkey-style service that sets
dealerships up with a points program,
exclusive offers, bonus points, products on a card, pre-paid cards, bonus
offers and discounts, gift cards, contests and free gifts, aspirational and
infinity awards – essentially any benefit
that helps drive sales and maximizes a
bottom line through loyalty.
“Effective loyalty marketing is all about
managing the ebb and flow of this
business,” says Bryan Smith, Group
Fixed Operations Manager at Toronto
KIA and Toronto Honda, which signed
on with IQ7/24. “The program integrates well with your Direct Marketing
Services (DMS); it’s robust and holistic
and that is key, because the DMS ties
in everything, so you’ve got an all-inone system that can pull invoicing and
(customer) habits. You’ve got to get
the business in, and with cutting-edge
marketing like this, the sky’s the limit.”
OD
• More satisfied customers.
Customer satisfaction is growing
among consumers according to
JD Power & Associates. Find ways
you can improve customer
relationships and let them drive
away from your dealership smiling.
• Come into the 21st century –
reach out to millennials.
It’s a market you can’t afford to
miss out on, but how do you
reach it? Read about ways your
dealership can be the first stop on
a car hunter’s journey for younger
buyers.
• Lease to own
What’s it all about? Is it right for
your dealership?
• Make your dealership
friendlier – to females.
Women make up 54% of the
buyers in the market and influence
a lot more sales than that. Best
practices your dealership can
implement to make used-car
buying a positive experience for
women.
Enjoy this issue of the magazine.
If you’ve got any classic car photos
from Cuba, I’d love to see them!
You can always reach me at
w.barnard@ucda.org
OD
NO ONE BUYS
PART OF A CAR.
SO DON’T BUY
PART OF A DIGITAL
MARKETING SOLUTION.
TRADER is the only solution provider that offers a complete digital marketing
toolkit for your business, including the industry leading marketplace, digital
advertising and inventory management solutions.
Find out how to take full advantage of everything TRADER has to offer.
Call 1-877-414-2030.
Best
Practices...
by Lori Straus
for a buy here, pay here dealership
Buy here, pay here is a
business model that is
becoming more popular in the
used car industry. Its focus is
on setting up a payment plan
for customers that is paid
directly to the dealer. The
customer does not go through
the bank. Interest rates are
typically higher than a bank
and customers typically have
damaged credit or need
credit repair.
18
ONTARIO DEALER
So why engage in this kind of business
model? For two reasons:
1. The monthly cash flow can help
you through a tough economic
time
2. Helping customers successfully
rebuild their credit can increase
the number of customers you
have for life
“With my lease portfolio,” says John
Kenny, owner of 2nd Chance Auto in
Ottawa, “my cash flow is about
$100,000 monthly. We can tap dance
through pretty much any storm.”
The storm for Kenny was a major
infrastructure construction that
impacted his business two years ago.
“The city even shut my off-ramp
because of sewer or water issues,”
Kenny says. “I usually get 10-15
thousand cars a day drive by, then I
was getting none. That was probably
the single most devastating challenge
we ever had. If I hadn’t had my lease
portfolio, I wouldn’t have survived
those two years.”
Kenny strongly believes in the need
for a lease portfolio. “If you’re going to
get into the used car business, you’ll
make a living retailing if doing it
properly, but you need to have a lease
portfolio to keep your cash flow
going.”
If you’re going to get into the used car business,
you’ll make a living retailing if doing it properly.
But you need to have a lease portfolio to
keep your cash flow going.
If done well, the buy here, pay here
model can help buffer the storm of
seasonal ups and downs with regular,
monthly income. Kenny only
repossessed 15 cars in 2013, and out
of those, five or six customers had
come back in to pay. That’s not a bad
statistic considering his dealership
manages about 250 monthly
contracts.
“Our repossession rate is in the single
digits as far as percentage goes,” he
says, yet his customer base includes
many customers with bad credit and
multiple bankruptcies.
Marjorie Gignac is a financial specialist
and owner of Velvet Financing in
Windsor. Velvet Financing finds
lenders for customers who need a
vehicle and who want to rehabilitate
their credit at the same time.
“The industry needs buy here, pay
here,” she says. “There are lots of
people who just can’t prove income:
hairdressers, waiters, dancers, painters
– there is a need for in-house
financing, if it’s done properly.”
1. Put your customer first.
Gignac says you should have two
intents when using a buy here, pay
here model: you’re trying to move
inventory and you want to help
customers rebuild their credit
rating. “If you have an opportunity
to use a bank or lender that will
report to Equifax, then do it!”
Putting your customer last can
easily end you up on a YouTube
video from a local newscast, with
a customer complaining about the
evils of the buy here, pay here
John Kenny, owner of 2nd
Chance Auto in Ottawa
model. If, however, you put the
customer first and follow best
practices, you have a strong
chance of creating customers for
life.
2. Sell only safe cars in the lowprice category.
According to Phil Engs, president
and founder of CMH Sales &
Leasing in St. Catharines, the
traditional price point of vehicles
suitable for the buy here, pay here
model is about $4,000 - $7,000,
though he’s gone up to $12,000
and sometimes a little higher on
occasion, depending on the down
payment. This is due to the
customer base: leasing a vehicle
upwards of $20,000 means that
either the monthly payments are
going to be too much for the
customer to handle, or the
contract is going to be too long,
increasing the dealer’s risk in the
contract.
Gignac says $7,000 is the upper
end. In addition, the car should be
certified safe.
“You’re on the ownership, so you
need to keep the customer out of
harm’s way. You need to do a
proper safety. You need to make
sure the air-conditioner runs, you
need to make sure that everything
in your vehicle is done properly,
even if it is not part of the safety.”
Kenny’s range is more $5,000 $15,000. He does lease out higher
models, but it depends on the
customer.
“It’s very important to deal with
each consumer face-to-face,”
he says.
Kenny also advises to not lease
out junk. “All you’ll get will be
grief.”
3.Require a large down
payment.
A large down payment increases
the investment for your customer.
Engs says, “The down payment is
pinnacle, the key point.” He feels
that a large down payment will
discourage the customer from
breaking the lease and walking
away.
Engs suggests a minimum 30 per
cent down payment, especially for
new customers. Repeat customers
can be offered a lower down
payment, depending on what
you’re comfortable with.
“If they’re perfect payers, you
would not let them walk, that’s for
sure,” says Engs.
...continued on next page
ONTARIO DEALER
19
Best Practices
>> continued from previous page
Kenny tries for 30 per cent on
anything over $10,000. For cars
under $10,000, he only requests
$1,000 plus the first month in
advance, all lien registrations, and
plates. He estimates that to be
about $1,500.
“We really don’t pay much
attention to whether their credit
score is 400, 500, or 600,” he
says. “We look at the ability to
pay. We sit down with the
consumer and go through their
income, whether it be reportable
or not, and say, ‘OK. So here is
what we will do for you ...’ It’s
very important to not oversell the
customer because it would defeat
the purpose of what we are trying
to do.”
4. Make sure the lease is the
right length of time.
Engs calls a 36-month lease with
the buy here, pay here model
“suicidal. It’s got to be under 30
months, preferably under 28
months.”
Gignac also advocates for shorter
lease periods. She believes offering
six and twelve-month leases to
customers with bad credit (and
therefore high interest) is the way
to go.
“You have to make it so that in
one year, that customer can walk
out of that deal without having
five thousand dollars to take with
them into the new deal,” she says.
5.Investigate your options for
financing.
Whether you attempt to set up a
line of credit at a bank, use your
own funds, or borrow through a
20
ONTARIO DEALER
company that specializes in
inventory financing for the
automotive industry, investigate
your options carefully.
One avenue that Engs routinely
tries is to have the customer apply
through the bank first. “Even
previous leasing customers who
have improved their credit, we
always try to put them through a
bank first,” he says.
6. Get the insurance right.
Engs emphasizes the importance
of insurance. If you’re going to
keep the car in your name, you
have to make sure you have
contingent lessors’ liability.
Contingent lessors’ liability is
intended to protect you in case
the customer’s insurance won’t.
Also, make sure you receive
written confirmation of the
customer’s insurance coverage
before the car leaves the lot. The
customer’s insurance should also
include endorsement #5, “which
is permission to lease,” says Engs.
“That protects you as a lessor in
many instances.”
But be sure to check with your
insurance broker on the details.
As Engs also says, there are a lot
of details in insurance coverage.
Make sure your insurance covers
you.
7. Know your customer.
Gignac strongly advises to be
prepared to not sell to a
customer. If you feel your
customer will be struggling to
make payments in six months’
time and spending excessive
money for fuel on a gas guzzler,
for example, be prepared to turn
the customer away. If your goal is
to truly help the customer, locking
them in to a thirty-six-month loan
with payments they’ll hardly be
able to make is counterproductive. Not only will the
customer likely despise you, they
will pass on their discontent to
anyone willing to hear, including
the media. Simply search “buy
here pay here” in Google and click
on the “videos” link at the very
top of the search results page.
You’ll see a long list of videos
about the evils of buy here, pay
here dealerships.
However, customers you feel will
make good customers can still end
up in a repo situation. What can
you do before your customer
signs the contract to prevent that?
Engs already mentioned the large
down payment he requires. Kenny
advocates for the personal
approach. “If someone’s a firsttime customer and they miss the
first payment, you take the car
right away,” he advises.
Engs says another strong signal
that a customer may not be
suitable is the length of time
they’ve been living in your area.
“You want someone who’s been
around at least a couple of years.
If somebody comes to you with
no credit and they want to lease a
vehicle but they’re in Ontario
from Alberta with no reason for
being here…that’s a customer you
don’t want.”
Engs also suggests getting contact
references and confirming them.
If you can’t find the customer, the contact references
can hopefully assist you.
8.Install a GPS in each vehicle.
Engs started installing a GPS in each lease-to-own
vehicle about five years ago, which, he says, was not
soon enough.
The GPS makes it much easier to find the car should
you need to repossess it. Some GPSs can be installed
with a starter disabling circuit, preventing the car from
starting. However, Engs suggests against it. The
customer can have the car towed to a mechanic who
can remove the starter disabling circuit or the GPS
altogether. In addition, if the circuit is activated and
inadvertently stops the vehicle, the customer may
damage the vehicle out of frustration.
Engs feels that the only use for a starter disabling circuit
is if you’re about to repo the car, you’ve located it, and
you don’t want it to move.
“But to me, it’s not worth it, so I don’t even bother
with the disabling. I’d just like to know where the
vehicle is,” says Engs.
It’s important for any dealer that’s considering the use of
GPS in a vehicle to be aware of the privacy concerns
that may arise. The Bill of Sale or Lease Agreement
should clearly state that a GPS unit will be installed in
the vehicle. If the unit has a starter disabler this should
also be disclosed clearly to the customer.
9. Be clear with your accountant what is revenue
and what isn’t.
As much as the government would like to charge taxes
on the whole price of the car and not just the down
payment and monthly payments, Engs says that revenue,
and therefore taxes, only count as they’re paid.
“That is one of the big advantages of leasing,” he says,
“because you don’t have to pay all the taxes up front.
So if there’s a repo situation, you don’t lose all the taxes
that you’ve remitted.”
Certainly work with your accountant to make sure
you’re calculating your revenue properly. In the end,
Engs’s advice is simple: “Have good paperwork, a good
file, and a spare key in every file.”
...continued on page
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42
ONTARIO DEALER
21
dealer
profile
by Anja Sonnenberg
lecos auto sa
It’s all about
making
customers
happy,
regardless of
their financial
circumstances
22
ONTARIO DEALER
With a deep rooted history in
the preowned vehicle industry,
Lecos Auto Sales continues to
evolve and adapt in a
changing industry. Located on
Milford Avenue in Toronto, the
company has grown to
become a premier used car
dealer serving the Greater
Toronto Area.
Established in 1983 by Gus Lecos,
Lecos Auto Sales was one of the first
dealers in Toronto to become a
member of the UCDA. Today the
UCDA has over 4,700 members in
almost 500 communities across
Canada, but when Gus joined in 1984,
he was the 12th member of the
association. Before immigrating to
Canada, Gus worked as an
automotive technician at Mercedes
Benz in Germany.
Despite the growth of the company
over the past three decades, it still
maintains a family atmosphere even
though Gus has now retired. His son,
Dennis Lecos, is the secretary of the
company, Philip Lecos is the Treasurer
and son-in-law Saki Melissas is the
Finance Manager.
Over the last 31 years, the dealership
has moved locations three times to
accommodate growth. Today, the
facility offers a large indoor showroom
boasting an extensive inventory of
new and used cars, trucks, minivans
and SUVs, a Parts & Service Centre
and a Finance Department. It carries
makes including Mercedes, BMW,
Lexus, Infiniti, Jaguar, Land Rover,
ales
Ferrari, Acura, GMC, Ford and many
more. Dedicated sales staff and toptrained technicians make the shopping
experience fun, easy and financially
advantageous for every potential
customer who walks onto the lot.
Whether a customer is looking to buy
a newer automobile or they need
parts and service for their current
vehicle, the team at Lecos Auto Sales
always place the emphasis on offering
exceptional customer service.
“It’s all about making customers happy,
regardless of their financial
circumstances,” explains Dennis Lecos.
In fact, Lecos Auto Sales pioneered
the no credit lease-to-own program
that they now specialize in and have
become very well known for.
It doesn’t matter whether someone
has good, bad or no credit at all – the
Finance Department offers financing
options to everyone, with a minimum
deposit of $3,000 from customers.
“A lot of people will come to see us
after visiting other dealers where they
were denied credit,” explains Lecos.
“Instead of using a bank, we offer
financing, so customers can buy and
pay through us.” Low interest car
loans are available for customers with
existing loans and terms of existing
loans can also be adjusted. Lecos Auto
Sales credit policy has become very
popular and word-of-mouth referrals
have become one of the most
successful ways of promoting the
dealership. “A happy customer is the
best kind of advertising.”
“A lot of customers who have been
with us for years and years keep
coming back. They even call my Dad
Pops,” says Lecos. One way to ensure
customer loyalty, Lecos believes, is
looking beyond that initial sale. Treat
them well and they will recommend
your dealership to family and friends.
Lecos grew up in the business, worked
at the dealership on weekends as a
kid and has built long lasting
friendships with customers over the
years. As the industry continues to
evolve, Lecos sees the financing
component of the business to be one
of the most important factors in the
company’s continued success.
“A person who has credit problems
still needs a vehicle and they’ll be
looking for alternative financing,
instead of going through traditional
channels,” explains Lecos. Lecos Auto
Sales doesn’t penalize potential clients
...continued on page
ONTARIO DEALER
27
23
female
friendly
Connie Motz
make your dealership female friendly
In recognizing that women
make up 60 per cent of new
car buyers and 53 per cent of
pre-owned vehicle customers,
female clientele are the most
powerful purchasing force in
today’s automotive
marketplace. Does your
dealership offer a positive
buying experience for
women? By consulting a
marketing guru, industry
experts and fellow UCDA
dealers, we’ve come up with
best practices your dealership
can implement to make the
female used-car buying
experience a positive one.
24
ONTARIO DEALER
If that wasn’t enough to sway you,
think about this. “Women are the
fastest growing segment of buyers.
Female millennials, age 22 – 30, are
outpacing their male counterparts by
20 per cent in vehicle purchases.
Women influence a whopping 85 per
cent of all car purchases – that’s worth
more than $80 billion annually. Add in
expenditures on maintenance, repairs,
and other services, and women
control about $300 billion worth of
vehicle spending. With figures like
those, it’s no wonder that 86 per cent
of women list reliability as a very
significant factor in purchasing their
next vehicle,” says Patricia A. Muir,
Dealer Principal Coach and Canadian
Regional Manager for AskPatty.com.
Keeping those bottom line numbers in
mind, AskPatty.com offers femalefriendly training, certification and
marketing for automotive retailers and
related businesses to create an
attractive culture for their female
customers. With 2,200 Certified
Female Friendly® locations across
Canada and the US, Muir explains,
“Women’s main focus in automotive
purchases and service are trust,
respect, and developing relationships
with the dealership. Women focus on
the vehicle being dependable and safe
for themselves and their family.”
While it’s true women are more
inclined to shop around, it’s only
because they want to make informed
choices and smart decisions. “They
consider more makes and models than
their male counterparts. For this
reason, we see more females
conducting research activities on our
site and women tend to be more
informed than male shoppers,” says
Glenn Pereira, Manager of Industry
Education for AutoTrader.com, noting
that price, fuel efficiency and safety are
the top three priorities for a female
used-car buyer.
“The biggest opportunity for the
automotive dealer to have the most
influence is actually before a customer
ever steps on the showroom floor.
Dealers need to ensure that their
inventory is online and wellmerchandised (using several photos,
custom comments, and pricing, to
name a few) and that they have
consistent pricing wherever the vehicle
is advertised (including on the lot). It’s
important dealers recognize they likely
have a very well-informed consumer
walking on to the lot,” Pereira said.
“Female consumers are very savvy
today so it’s important for a culture to
promote a friendly and open attitude
towards them. Transparency is
especially important when it comes to
pricing and understanding that women
are willing to wait until they feel the
price is right. Female buyers are also
likely looking for clear information
regarding the financial aspect of
purchasing a vehicle. The relationship
with the salesperson is critical to
having a positive dealership
experience.”
With seven years experience in the
automotive dealership industry, this is
a sentiment that Avi Zur, Business
Manager at Toronto Auto Brokers
agrees with. “Our female buyers tend
to be much less focussed on price
negotiations, but rather focus on
quality of service received from our
sales staff. They prefer to be made
comfortable and get assurance that
they are purchasing a quality vehicle
and to get as educated as possible
about the vehicle they are purchasing.
They know the prices in the market
and when they sit at the office, I
believe they already made their
decision to buy, as long as they feel
comfortable and satisfied by the
dealership.”
According to Women-Drivers.com,
today’s female used-car buyer wants
to feel empowered as she makes her
precise and simple purchase decision.
It needs to be quick, easy and maybe
with a little fun thrown in. But most of
all, she wants to know about the
salesperson in order to create a
trustworthy experience where she’ll
be treated in a fair and respectful
manner.
By the numbers, according to
askpatty.com
• 60% of all new vehicles are
purchased by women
• 53% of all used cars are purchased
by women
• 85% of vehicle purchases are
influenced by women
• $300 billion spent by women on
vehicles annually
• 105.7 million women have driver’s
licenses – 1.4 million more than
men
• 62% of women rank safety as very
significant
“Women go to two dealerships
before buying a car,” says Anne
Fleming, President & Car Buying
Advocate for Women-Drivers.com.
Women-Drivers.com
The number one reason women buy
from a sales advisor is trust – the
second reason is price. So, if the sales
advisor doesn’t establish trust right
away, 72 per cent of women will leave
and NOT return to that dealership. It
is critical that the sales advisor
approach and establish rapport with
the shopper even if she says she is
“just looking”.
Top WSI Purchasing Used Car Brand
as Rated by Women WSI Score
“No one is in your store to just look –
at some point they will be buying a
car. Just looking can mean “I am not
sure” or “I haven’t bought a car in 10
years and am nervous” or ‘I am testing
you to see if I can trust you,” says
Fleming.
As a whole, used car shoppers spend
about 15 hours researching (75 per
cent of which is done online) before
they make their vehicle purchase.
2014 Top Used Auto Brands as Rated
by Women (Women Satisfaction
Index™ out of 5)
0
1
2
Chevy 3
4
5
4.82
Chev
Ford
Jeep
Nissa
Toyot
Hyun
Dodg
KIA
Chrys
Subar
Volks
Hond
Buick
Mitsu
Ford4.59
Jeep 4.85
Nissan4.31
Toyota4.54
Hyundai4.60
Dodge4.97
KIA4.62
Chrysler4.75
Subaru 4.28
Volkswagen 4.31
Honda4.53
Buick 4.85
Mitsubishi 4.54
... continued on next page
ONTARIO DEALER
25
female friendly
>> continued from previous page
“Women are 50 per cent more likely
to use car dealer review sites than
men, and when a dealership/brand
delivers more than expected, women
will write about it and share their
positive experience,” Fleming adds.
How can a dealership establish trust
with their female clientele? With more
than 20 years experience in the
automotive industry, Ori Haik,
Manager of Malibu Motors in Toronto
says, “We do not treat women any
different than our male customers
when selling them a vehicle. We offer
all our clients a copy of the history of
the vehicle. I feel that people in
general are more educated today with
all the information that is available to
them. We want our clients to know
what we know about the vehicle that
we are selling them. We also allow
them to have an independent
mechanical inspection on the vehicle.”
With the same thoughts in mind,
Weston Motors of Toronto attributes
their 40 years of family-run success to
repeat clientele. “Our in-house service
bay processes all our used vehicles
being certified and reconditioned to
proper standards and regulations,”
says owner Paul Sanginesi. “We
provide on-site auto detailing which
we believe is crucial – any customer
purchasing a used vehicle craves for
that innovative appearance.”
Muir of AskPatty.com agrees with
these same objectives saying that
while females “source out businesses
that demonstrate that they care about
women, families, and their community,
26
ONTARIO DEALER
they also enjoy adding “bling” and
accessories to individualize their
vehicles.”
While women may like to shop
around, they appreciate one-stop
shopping even more. Avi Zur knows
the value of keeping customers
satisfied. Besides offering female
clientele “assurances that the vehicle is
a quality and headache free one with
an extended warranty, we also offer
many accessories such as navigation,
backup cameras, parking sensors,
Bluetooth®, remote start, push button
start, DVD players, etc.”
Besides the beloved one-stop
shopping experience, it’s really all
about the details. Like any other
shopper out there, female customers
want to know what dealerships can
offer them after they make their initial
used-car purchase. In addition to
offering oil changes, brake checks and
tires, is your dealership able to fix her
cracked windshield? That small dent
she got when she backed up? Or how
about detailing her car? Be sure to
keep in mind that the number one
requested item in the service
department by women is a concierge
vehicle. All of these services help build
loyalty and trust while potentially
inspiring referrals to friends and family.
Ryan Holtz, owner of Ryan Holtz
Automotive Marketing, read a recent
statistic saying “66 per cent of all
service-related work to a vehicle is
requested by females. That is huge!
However most service promotions or
ads are aimed at men. Imagine a
service ad that said ‘15 per cent off
your next oil change’ and had a
picture of a stiletto heel. That might
get a female’s attention.”
Holt enthusiastically promotes the
benefits of using social media and
digital marketing to his automotive
dealership clients saying, “they are
using these new mediums to really
cater to females. For example, we
create a nice blog post that talks
about women and cars, making it fun
but informative. Just treat females like
people and remember they have most
of the purchasing power.”
Holt also recommends paying
attention to the details by providing
unexpected services and amenities
including “a complimentary floor mat
wash or latte machines. Good waiting
room music is popular and literature
that is tailored more to females rather
than just “car guy” magazines. All of
these extras are designed to make
female customers feel more at home
and relaxed.
Women-Drivers.com takes it one step
further by suggesting used-car
dealerships consider hiring more
women sales people, and service
people, especially as service advisors.
The more popular dealerships offer
truly comfortable seating, connectivity
to WI-FI, a designated children’s play
area and extended service
department hours to help meet a
busy mother’s needs more efficiently.
OD
dealer profile
>> continued from page 23
for being new to the country or having made bad decisions in the past –
some people may need a vehicle to
get to and from work and without it,
they’ll never be able to get back
on track.
Another plan that Lecos Auto Sales is
hoping to roll out in 2014 is to offer
customers dealer funding. Customers
will be able to visit other dealers,
choose a vehicle and Lecos will take
care of the financing.
Not spending a lot of money
advertising vehicles, Lecos relies
heavily on customer referrals and
advertising the services they offer.
Twenty years ago they advertised in
Auto Trader, but now that everything
is online, everything changes so
rapidly.
“It’s such a competitive market and
our product can move very quickly.
It doesn’t make sense to advertise
individual vehicles because prices
fluctuate so much. Instead we focus
on taking care of our customers and
showcasing what we do really well. I’m
up front and honest with each and
every customer right from the get go.”
When asked what advice he has for
other dealers in the business, Lecos
replies, “Be honest with your
customers – it works and it saves
headaches and arguments.” OD
ONTARIO DEALER
27
tech talk
28
ONTARIO DEALER
cars talking to each other for
safety: the wave of the future
by Angela West
The U.S. Department of
Transportation’s National
Highway Traffic Safety
Administration (NHTSA)
announced earlier in February
that it would be taking steps to
implement Vehicle-to-Vehicle
(V2V) safety communication
technology for light vehicles.
This implementation may
include requiring automakers to
equip new vehicles with the
technology.
The Department of Transportation
estimates that V2V technologies
could prevent up to 80% of
accidents that aren’t caused by
driving under the influence or
mechanical failure. It is issuing a
report on the systems, which will
be used to begin work on
regulatory proposals that will be
finalized by the end of the Obama
administration’s term.
V2V Communication Defined
Vehicle-to-vehicle communication
allows vehicles to transmit
information between them up to
ten times per second using
wireless signals. Speed, distance,
heading and more information
would be communicated, which
the vehicle’s computer would use
to warn the driver of a possible
collision and, in some cases,
automatically apply the brakes.
Collision warnings will be
dependent on the car
manufacturer and could include
vibrating seats, steering wheels,
visual cues on the vehicle’s screen
or front windshield, and audio
warnings. If the signals aren’t
heeded by the driver, the vehicle
would automatically reduce its
speed or come to a full stop,
depending on the situation.
Automakers Working on V2V
Technology
Most of the major automakers are
already investing in vehicular
communications, including
General Motors, Ford, Daimler
Chrysler, BMW, Honda and Audi.
General Motors demonstrated
V2V technology back in 2006 with
concept Cadillac vehicles. BMW
ConnectedDrive already offers
Active Cruise Control with Stop
and Go, which uses radar-based
technology to scan your speed
and automatically applies brakes
when you reach a distance it
deems unsafe from the vehicle in
front of you. V2V technology
would extend these features to
communication with the vehicles
around you if they were also
equipped with V2V. This would
allow you to be alerted of a
collision several vehicles ahead of
you, give you warnings for
collisions around corners, and
more.
Privacy and Security Concerns
A major concern that consumers
will have about V2V is security and
privacy. As far as privacy goes,
V2V does not transmit information
about a certain vehicle, only
information about what that car is
doing on the road. Data such as
the Vehicle Identification Number
(VIN), licence plate and so on will
not be transmitted.
Security is a major concern for
automakers. In an interview with
Fox News, Scott Belcher,
president of the Intelligent
Transportation Society of America
said auto manufacturers are
spending time and money to
ensure their systems are safe and
hack-free. He also said in a USA
Today article that V2V technology
will revolutionize driving and the
auto industry.
continued on next page
ONTARIO DEALER
29
tech talk
>> continued from previous page
Canadian Markets and
Consumers
While Canadian officials haven’t
come forward to announce similar
requirements, what’s happening in
the U.S. will likely trickle down to
the Canadian market. Insurers are
obvious fans of the technology
due to its accident prevention
potential and consumers will want
the latest in vehicle safety
technology. Craig Weber, CEO of
Celent, recently spoke at the
National Insurance Conference of
Canada and said the need for
auto insurance could be reduced
by V2V and other driving safety
technologies.
It may take time, however, for the
average Canadian consumer to
get up to speed. Up to one-third
of Canadians don’t understand
safe-driving technology, according
to a survey by the Traffic Injury
Research Foundation. This could
change as V2V technology is
implemented and actively
marketed by auto manufacturers.
How V2V May Affect Used Car
Dealers
Consumers are sure to be fans of
the technology once it’s
introduced for two reasons: its
safety benefits and the potential
for insurers to offer premium
discounts. If given a choice
between a V2V-equipped vehicle
and a standard vehicle, consumers
will likely choose the V2V model.
While GPS-enabled smartphones
30
ONTARIO DEALER
could be used to replicate the
benefits of V2V, they would
require special antennas and are
typically not equipped with GPS
technology as accurate as an
in-vehicle V2V system, although
GPS accuracy may increase in
smartphones over the next
decade.
Cost and Effects of Market
Adoption
V2V systems add about $100 to
$200 to the retail cost of a new
vehicle, and Qualcomm estimates
that it would take about 15 years
for over half the vehicles on the
road in the U.S. to be equipped
with the technology once
regulations are rolled out. If
smartphones are brought up to
speed and used for V2V purposes,
Qualcomm estimates that 50% of
vehicles would be equipped with
some sort of V2V technology in
five years instead of 15.
Paul Feenstra, a spokesperson for
the Intelligent Transportation
Society of America, said that
significant safety benefits could
be realized even if only 7-10% of
vehicles on the road were
equipped with V2V technology.
Since U.S. government proposals
are calling for V2V to be
introduced into new vehicles only,
it’s unlikely that used vehicles
would be required to be
retrofitted with the technology
prior to sale.
Auto manufacturers
are spending time and
money to ensure their
systems are safe and
hack-free.
Scott Belcher, president of the Intelligent
Transportation Society of America
While consumers may not be
ready to accept a concept as
radical as Google’s self-driving
car, V2V technologies put most of
the benefits of that concept into
the hands of consumers. The
sticking point for adoption for
both automakers and the public
will be the security of V2V
technologies and the perception
of lack of privacy. But with the
potential of preventing 80% of
accidents not caused by
impairment or mechanical failure,
V2V technologies are very
attractive to all industries and the
public. We’ll find out soon if the
U.S. government will mandate
their adoption, or if it will be left
up to automakers to offer them to
the public. OD
More satisfied
customers
by Anna Davey
The service your customer
receives in the dealership is
important, but so too is how
you manage your relationship
with your customer after the
sale. Here are some strategies
for creating happier, more
loyal customers at both stages
of the process.
At the dealership
Take a look at your dealership through
your customer’s eyes. Ask yourself
how you would feel about the dealership if you were visiting for the first
time. Solicit feedback from family
members, friends, acquaintances and
even strangers. Listen openly to their
opinions, and use their experiences to
improve areas where the customer
experience may be lacking.
A car is a big purchase, and it’s
important for customers to know that
their voices are being heard. Rather
than rushing to sell the most expensive car on the lot, make sure your
staff is trained to listen to the customer and make a meaningful recommendation that meets the customer’s
needs.
John Edelman, President of Haldimand
Motors, believes the happiest customers are the ones who have been given
the most agency in their decision making. “We don’t even try to close
them,” he says. “That creates the
loyalty because they don’t feel pressured.” At his dealership, the sales
staff is even instructed to never leave
the showroom. “Customers can drive
themselves,” he says with a chuckle.
1. Ensure that you have dedicated
customer relations staff. It’s
important to have someone
whose job is to liaise with customers, management, and staff. A
good customer relations manager
would be able to administer and
coordinate follow up programs,
identify areas where customer
relations could use improvement,
and resolve customer problems
with efficiency.
2. A large portion of efficient customer service comes down to
communication. Train your sales
staff in communication skills. Every
member of the sales team should
be able to speak knowledgeably
about your inventory, and should
know where to go for accurate
information if there’s something
they’re unsure of. Communication
to the customer should be
upfront, and sales staff should be
able to respond to customers
thoroughly and clearly.
continued on next page
ONTARIO DEALER
31
satisfied customers
>> continued from previous page
3. While it’s important to take communication seriously, visiting the
dealership should still be a chance
for the customer to enjoy themselves. “If it’s a customer’s birthday, the salesmen will sing Happy
Birthday to the customer. I didn’t
tell them to do that, they just do
it because it’s fun,” says Edelman.
4. Most of all, say “thank you.”
Offering your customer sincere
thanks for their visit – even if they
don’t make a purchase at that
time – improves their perception
of their experience with your
dealership, and makes them more
likely to return when they are
ready to buy.
5. A good way to promote customer
satisfaction is to offer a trade-in
program. Let your customers
know you are going to offer them
reasonable value for their existing
vehicles. Not only will your customers appreciate the opportunity to save some money on a
future purchase, you will wind up
with stock you may be able to
resell.
Away from the dealership
Once the customer has made a purchase with your dealership, you still
have a number of opportunities to
give them a fantastic customer service
experience. Edelman is a strong advocate of third party review processes
for customer follow up.
“A third party platform is healthier.
Customers feel like they have a legitimate say,” he explains. “We do not
tamper with the reviews. If we see
anything of a negative nature we
respond immediately.”
32
ONTARIO DEALER
1. Always ensure you follow up on
sales and service calls. This can be
done via email, telephone, or even
letter mail, but it can’t be neglected. It shows the customer you’re
interested in their experience with
your dealership. Giving the customer an opportunity to provide
you with feedback about their visit
shows that you care about their
opinion.
2. It’s important to embrace customer complaints as much as their
praise. You want your customers
to know that their concerns are
important to you, and that you’re
working just as hard to fix their
problems as you are to sell them
in the first place.
3. A good attitude is essential to giving customers a good experience
when they come to you with a
concern. Edelman stresses that he
never makes a decision immediately when faced with a complaint,
but rather takes the time to
gather as much information about
the situation as possible.
“I think you have to come to a point
in dealing with customers when dealing with an issue is to, not get defensive but sit back and listen to everything they have to say,” he says. “If
they feel as if they haven’t been treated fairly, I will agree with the customer. I say it is out of character for the
staff member they dealt with, but I
agree with them. Even if the issue
wasn’t intentional, it’s still perceived.
I will always accept that it’s real to the
customer.”
Edelman also stresses the importance
of flexibility. “I always try to come up
with a resolution that gives the customer multiple choices, so they never
feel pinned in a corner. If you give several options, it makes the customer
feel like they’ve been listened to.”
Customer service and social
media
Customers are increasingly turning to
social media platforms to address
issues with their dealership.
Responding to concerns brought to
your Facebook or Twitter is now
becoming part of a basic customer
service practice. To really improve
how customers perceive your business, however, take some time to
review sites like Yelp for mentions of
your dealership. Taking the time to
reach out to a customer away from
your own social media accounts shows
a real dedication to customer service.
Not only does this give you another
chance to repair a customer relationship, it gives your dealership the reputation of going above and beyond customer expectations in order to make
them happy.
Customers who contact businesses
through social media tend to expect a
response in an hour or less, so it’s
very important to have a process in
place to see and reply as soon as an
issue comes up. Interestingly, studies
have shown that customers feel more
positively about businesses that offer a
speedy but inaccurate response to
their concerns over a slower but more
accurate reply. You should obviously
refrain from giving customers misinformation, but this does highlight the
importance of speed when it comes
to creating a positive experience.
Even better, once the problem has
been resolved, you can use it to create a positive customer impression by
sharing the situation and your
response on social media. Customers
recognize that mistakes sometimes
happen, and showing that your dealership responds with a positive attitude
helps them feel secure in bringing you
their own questions and concerns,
which gives you further opportunity
to give them an excellent customer
service experience.
A third party platform
is healthier. Customers
feel like they have a
legitimate say. We do
not tamper with the
reviews. If we see
anything of a negative
nature we respond
immediately.
John Edelman,
President of Haldimand Motors
Who are your customers?
In order to make their interactions
with your dealership reach a level of
excellence, learn as much as you can
about your customers. Collecting
demographic information – such as
age, gender, location, family size,
income level – and building a database
with that information helps you see
the market you’re attracting with
greater clarity. With this information,
you are able to offer your customers
more tailored communications, as well
as improve their impression of your
...continued on page 35
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satisfied customers
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>> continued from page 33
>> continued from page 13
dealership by sending out birthday
cards or other personalized mail.
Personalized mail also gives you the
opportunity to give your customers
the inside scoop. Let them know
about special promotions, sales, or
new inventory before the general
public. There’s no need to flood your
customers with news of every
development at the dealership – just
provide them with enough information to make them feel they’re part of
an exclusive club. This enhances the
customer’s perception of your value.
Be part of the community
Take the time to be a part of the
community, not just a business. Being
seen as partners in the local community increases the positive perception of
your dealership. Sponsoring sports
teams, holding fundraisers, making
donations to local causes, and hosting
community cleanup events are all
ways to show your commitment to
the people who live and work around
you.
With these customer service strategies under your belt, it won’t be long
before your customers report even
greater levels of satisfaction with your
service. As truly satisfied customers
are more likely to bring you repeat
business themselves – and recommend your business to others –
investing in excellent customer service
now can have a healthy impact on
your profits in the future. OD
Your sales process should offer an
opportunity to build a relationship not
a confrontation. We both know customers only buy from people they like
... and trust!
Sales 101 – The Money Question
This is a no brainer. Money and payments are on the mind of your shoppers. Train your people to expect the
money issue early in the conversation.
“What’s your price on this vehicle?”
Key Point: Never avoid or divert the
price question or your personal integrity is in the tank.
Your typical Internet buyer already
knows your inventory, your payments
and prices you have advertised on the
net or in the newspaper–that’s why
they are at your store! They are
somewhat motivated or they wouldn’t
be with you.
For that reason always train your sales
people to respond with the price, and
most importantly the bi-weekly payments, without hesitation. “This
vehicle is priced to sell for $$$$ and
we have more vehicles in that price
range for your consideration. The best
part is the low bi-weekly payments,
which are available from $$$”. Then
continue the conversation with the
question, “Is this the payment range
you prefer?”
Better still, have your sales people
initiate the money talk. Have your
sales professionals volunteer upfront
that you have vehicles in a variety of
payment and price ranges and ask
what range they were exploring.
OD
Dave Kemp was Canada’s youngest Ford
dealer without family money and is president of Automotivator Professional
Development and Trackstar International
Follow-up Systems. Dave is a car industry expert with decades of success training Canada’s most profitable automobile
dealerships. He shares his sales strategies with thousands of sales team members across North America.
www.automotivator.com
Next issue:
Closing and Selling More Cars
ONTARIO DEALER
35
Marketing to
Millenials
by Lori Straus
“Millennials” is simply another
name for Generation Y, those
born roughly between 1980
and 2000 (though some
sources say 1985 – 2000).
They’re expected to have the
same power on politics, culture, and economics as the
baby boomers. These roughly
nine million Canadians are
coming of age now and are a
very powerful cohort you can’t
afford to ignore.
Abacus Data, a public opinion and
marketing research firm based in
Ottawa, surveyed 1,000 Millennials
(ages 18-30) and 1,005 non-Millennials
(over 30 years of age) to try and
define this cohort. Growing up,
Millenials experienced many socio-political changes in Canada that previous
generations had not. Many are the
36
ONTARIO DEALER
first generation to have both parents
working. These Canadians therefore
spent some of their early years in daycare instead of at home. According to
Abacus Data’s report, North
American governments also increased
spending on children, including
investing more in public libraries, public education, and youth sports.
Non-Millennials, though, have a very
poor opinion of Millennials. According
to the research, 56% of non-Millennials believed Millennials were materialistic; 50% felt they were coddled;
and 37% labeled Millennials as lazy.
Only 3% of non-Millennials described
Millennials as loyal.
Hardly a solid customer base.
But wait. Maybe we’re just misunderstanding this group.
When it comes to Millennials, authenticity matters. Abacus Data reports
that this group prefers authentic
brands that align with Millennials’ values, are aspirational, and connect with
them online.
This also means that reaching them is
easy and inexpensive. In the end, all
they want, like any other consumer, is
to be understood and spoken to on
their terms. And their terms include
being online. This means you need to
be there.
Start with your website.
Forbes.com is predicting three main
web design trends for 2014:
1. Make your website responsive.
This means that your website
adjusts so it appeals to users on
desktops, tablets, and smartphones equally. Given that
Millenials carry and use their
smartphones with them wherever
they go, updating your website to
a responsive design can certainly
increase your dealership’s appeal
to this group.
2. Keep your website design simple.
Hiring a good designer (and copywriter, if needed) will give you an
impartial opinion on what’s truly
important and what can be cut
away or moved elsewhere on
your site. If your website is too
cluttered and visitors can’t find
what they’re looking for easily,
then you stand a good chance of
losing business.
3. Design your website with a story
in mind. This doesn’t mean you
need to use Snow White to guide
your visitors to their preferred
used cars. It means lead your
visitors through from grabbing
their interest when they land on
your website to setting up an
appointment with a member of
your sales team. The website has
to be about your visitors, not
about you.
Because used cars are one-of-kind, it’ll
be hard for Millennials to find out
specific information about the cars on
your lot. Have the main details online
about each car in stock. Some dealers
even have a button to request the
vehicle’s history online. This can
encourage potential buyers to communicate with your sales team before
they even step through your doors.
All of your campaigns should point
back to your website. It is, after all, the
main source of publicly available information about your business. This also
means you should keep your website
up-to-date. A stale website can negatively impact your business. Treat your
website as your virtual car lot/showroom. It reflects your business the
same way your physical car lot/show
room does.
Peter Carr, a professor in Management
Sciences at the University of Waterloo
who has developed online courses in
social media, says that the defining
characteristic of Millennials is that they
shop online first.
“The main thing is they’re looking for
information online about the products
they might be buying,” says Carr. “And
they also might go more broadly into
social media and look for anything that
anyone might have written anywhere
else about the product itself. So, when
they’re thinking about buying a used
car, they’re likely to be going on to the
Internet and looking to see if there’s
anything mentioned.”
Social media includes many sites
whose main purpose is to have members exchange information with each
other quickly. The most well-known
social media sites are Facebook and
Twitter, but there are many.
Perhaps the scariest thing about opening up your business to social media is
the ensuing discussion that may
include negative comments about your
dealership. Even if your dealership has
top-notch customer service, you’ll likely still find that one customer who
turns a small, unnoticeable and therefore undiscovered scratch into a massive social media blame campaign
against you.
In fact, says Carr, you should be looking for the discussions, because they’re
likely happening.
“If what’s posted isn’t accurate,” says
Carr, “you should be responding to
that.”
This doesn’t mean have an online
argument if a customer is complaining.
But consider responding to their complaints to try and solve the problem if
you can. Use the social media site to
set up a verbal dialogue that takes
place off-line. For example, “Thank
you for your comments. How can we
get in touch with you?” Once it’s been
resolved, go back online and publicly
thank them. Consider sourcing someone to help you do it right. If done
well, it can be a positive experience
for your company. If done poorly, it
can be very negative. Let’s look at two
examples.
Marie-Christine Fournier is director of
marketing and communications at
Newad, an advertising and marketing
agency that focuses on younger con...continued on next page
To
Advertise
Please contact:
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at 416.360.0797 + 647.344.9300
or email terry@ontariodealer.com
ONTARIO DEALER
37
marketing to millenials
>> continued from previous page
sumers. She cited the McDonald’s
Ask Your Questions campaign as an
example of answering difficult questions online.
“That was done really well, because
they monitored it and even when the
questions were delicate, they
answered them anyway, because they
were comfortable with that,” she says.
Some of the questions in the
McDonald’s campaign include these:
• “I was told u no longer serve
apple slices. Why?”
• “Do you use real eggs in your Egg
Mc’muffins? (I doubt it)”
• “Do you use azodicarbonamide in
the food?”
• “Do you use pink slime in your
chicken?”
McDonald’s answered all of those
questions and then some. (You can
visit yourquestions.mcdonalds.ca if you
want to have a look.)
There are two things to take away
from McDonald’s: 1) They were bombarded with questions that would
normally be considered harmful to
their image and 2) They put the
resources in to answering all the questions, some even with video tours of
food processing plants.
Social media can certainly be done
in-house, but you also have to do it
well. If you’re unsure about how to
balance the openness of social media
with your business’s own needs, then
perhaps consider some training.
If social media makes you incredibly
uneasy, though, then hire someone to
do it for you. Fournier warns that a
38
ONTARIO DEALER
tiny error on social media can
certainly backfire. That happened to a
major manufacturer five years ago.
Autoblog reported on a now infamous social media mishap from a major
manufacturer back in 2009. When the
manufacturer released a new vehicle,
many fans criticized its appearance,
especially on the vehicle’s dedicated
Facebook page. One “fan,” though,
supported it. He wrote, “Interesting
design. I would get this car in a heartbeat. I may be the older crowd with
my kids out of the house and still
need some space and performance.
Don’t need anything big.”
It didn’t take long for other Facebook
users to figure out that the fan was
indeed a manager in the manufacturer’s product planning department.
One responder even posted the
employee’s LinkedIn profile.
There is certainly nothing wrong with
employees posting on their company’s
social media site. What’s important to
Millenials is transparency. This employee did not identify his connection to
his employer, and according to the
manufacturer’s official response a day
later, he had never been permitted to
speak for the company in the first
place. Had his original post read
something to the effect of this: “I
work in product planning here. We
had designed this new vehicle with x,
y, z purposes in mind. Your feedback
does get collected and we take it into
consideration in future models,” then
we probably wouldn’t be talking about
this social media example right now.
If upgrading your website and then
moving in to the world of social media
sounds too complicated, don’t worry:
these are all ideas that have worked
for some, not for others. It’s up to you
to decide how to use them.
Joe Pulizzi, founder of the Content
Marketing Institute, made these points
in a February 2014 editorial from his
magazine, Chief Content Officer:
• The average major brand uses
17 different content marketing
tactics to distribute information to
their audiences.
• Content marketing gurus claim
that more content is needed for
companies to be successful.
• About 60 percent of North
American brands plan to increase
their content marketing in the
next twelve months.
• Almost six in ten marketers
believe their content tactics are
ineffective, despite increasing the
number of channels they’re advertising through.
Pulizzi’s suggestion, which he supports
with a few examples, is to start simply:
find the one channel (Twitter,
Facebook, email, etc.) that works very
well for you, and build on that first.
Starting out with a social media campaign doesn’t mean you have to start
out on all platforms. However, don’t
just pick the one you’re familiar with. If
you choose Facebook because you’re
used to it, but your potential customers are hanging out on Twitter, then
Twitter should be your first choice for
social media marketing.
Whatever strategy you choose to
engage with your audience, find the
Posting vehicle listings may not generate a lot of
discussion. However, encouraging customers to talk to
you over social media if they need help, offering a few
contests, and including some red-hot vehicle listings
might be a healthy mix that you can safely manage.
right balance. Fournier recalls a car
company that used Twitter to promote a contest.
“Try it on a small scale, first,” advises
Fournier. “If it works, then implement
it on a larger scale.”
“Usually, contests really work well
with Millenials,” Fournier says.
Fournier believes that social media by
itself is not enough.
This company, however, would follow
up each person’s contest entry with
five other Tweets. It backfired on
them, because contest entrants simply
wanted to enter the contest. They
didn’t want to be bombarded with
advertising that had no value for them.
“Maybe support it with an ad campaign on the radio or on TV or an
indoor advertising campaign of some
sort.”
The key to advertising with Millenials
is to make sure you have interesting
content. Sharing that content over the
17 channels Pulizzi says is average for
larger enterprises will likely amount to
a waste of time for you. But finding
the right channel or two (or three –
whatever your research suggests is
right) and adding meaningful value to
your message can increase your chances of success.
Whatever you decide to do, don’t feel
you have to implement it on a large
scale immediately.
It’s of course crucial that you speak
your customers’ language. “It’s a good
starting point to really understand
how to speak to [Millenials] on social
media as well, because if how you talk
to them isn’t genuine, of course, it will
show and it will not appeal to them,”
says Fournier.
Carr suggests adding value to your
social media by viewing it more as
relationship-building rather than simple
messaging. You can encourage people
to ask questions about how to look
after a car, or you can list special
offers from time to time, for example.
Be clear with yourself and your staff
about what you believe genuinely
interests your potential customers.
Only posting vehicle listings may not
generate a lot of discussion. However,
encouraging customers to talk to you
over social media if they need help,
offering a few contests, and including
some red-hot vehicle listings might be
a healthy mix that you can safely
manage. Just remember: the last thing
people want is to be bombarded with
advertising. Millenials are no different.
Reaching the Millenials, the group of
Canadians born roughly between
1980 and 2000, can rarely be successfully done with older advertising methods like television ads and flyers.
Taking your ad campaigns online is
likely the best way to reach them. Be
honest and transparent, engage with
your Millenial customers, and you’re
likely to find a new generation of loyal
customers. OD
ONTARIO DEALER
39
social media
40
ONTARIO DEALER
social media spotlight
Why Blog?
Let’s say you’ve spent a lot of money
on developing your very cool website.
All your information is there – your
products, your services – and it all
looks very professional. You’ve added
all the social networking buttons so
visitors can follow your twitter feed
and Facebook messages – if you have
those. Now what? How do you get
people to your website? Sure, your
web info is on all your printed marketing materials and on your advertising,
if you have any, but it’s not enough.
Today, people search for information
about businesses, products and services online. This is why you need to
blog. It’s the best way to increase the
numbers of people who find your
website through search engines.
Where once the lowly blog was a simple online diary – it has now become
an integral part of any online business
marketing strategy. Every time you
post a blog – you’ve created another
entry point for search engines to
index and for consumers to find you.
Believe it or not, a blog will help your
business grow.
Here’s how you can benefit from
blogging on a regular basis:
• Build your brand: Your content
can raise brand awareness and
create loyalty
• Marketing tool: Boost word-ofmouth about your business
• Sales tool: Drive traffic to your
site
• Customer Service: Two-way conversations with customers
• Build Relationships: Communicate
with potential customers to
strengthen connection
• SEO: Can boost your search
engine ratings
So what to blog about?
Well, it’s all about the content. So
make sure that whatever you blog
about, or if you hire a blogger, that
the content is interesting, relevant and
useful…and ORIGINAL. Google loves
original content. The goal is to publish
a blog that will get people talking and
will have them coming back for more.
The business you’re in will affect the
language and the content for your
blogs, of course, but what is common
to all good blogs is their accessibility
and honesty.
UCDA_Verticle_5_Outlines.pdf
1
14-04-21
9:04 AM
Best Blogging Practices
C
The secret to blogging is that there is no secret. There’s no
magical code or piece of advice that will make your blog
reader-worthy. However, there are a few basic blogging
practices that are always crucial no matter what blog you’re
writing.
M
Y
CM
MY
CY
Whether you’re a newbie or a pro, there are always ways
to refine and refocus your blogging skills. If your goal is to
write an awesome blog, connect with readers, and build a
community, the following fool-proof best blogging practices
are the “secrets” to success.
CMY
K
The Voice
Your first step should always be to evaluate the voice from
which you’re writing. Focus on being conversational. You
want your words to leap off the page so readers feel like
you’re talking directly to them, writer to reader. Be you.
Since you’re chatting with readers conversationally, don’t be
afraid to let your passion shine through. Readers appreciate
when you’re real and authentic with them.
The Logistics
Don’t make your blog posts the length of a paperback.
Shoot for posts to be no more than five paragraphs long. If
you have to go longer, use bold text, headings, page breaks,
or images to liven up the lengthy text. After focussing on
the length of your blogs, you might also wonder about frequency of posting. Just be consistent. But no matter how
often you post, each time you post a new blog, don’t forget
to share it. Include a link to your blog in your email signacontinued on next page
ONTARIO DEALER
41
social media spotlight
best practices
>> continued from previous page
>> continued from page 21
ture, post new pieces on Facebook and
Twitter, and ask friends or other bloggers to
share your content.
10.Figure out the best times
to increase your inventory.
Kenny suggests you understand
the times of the year when you
sell more and when you sell
less. Being careful not to have
too much inventory sitting
around, he increases his
inventory significantly at slower
times.
“There’s no point in putting on
a big sale only to run out of
inventory,” he says.
The Connection
A blog isn’t a blog without reader interaction. Nobody wants to spew out their
thoughts all day without any reader
response – that’s why engaging readers is
critical. Make your content relevant and find
real ways to connect with your readers. A
simple way is to just ask readers for their
thoughts and opinions. Even throwing the
question out there will encourage people to
take the time to respond.
Monitor comments and be ready to
respond in a timely manner, but remember
to think carefully about what you write to
readers. Readers will appreciate that you
chose to engage with them directly, and
they’ll automatically feel more connected to
any future content that you write.
Five Ways to Increase Blog Traffic
1. Post consistently. Smart bloggers will
post at least once a week or bi-weekly
– usually on the same day.
2. Always put your best foot forward. Always
blog your best, and you’ll be surprised
how you’ll come up with even better
ideas as a result.
3. Think readers first. If your blogging goal
is to increase your audience, then you
need to think about the needs of your
readers first.
4. Provide links. Link well and link often.
Link to your own blog content. Link to
the other sources of information across
the Internet. Link, link, link.
5. Invite guest bloggers. This brings in new
readers. OD
42
ONTARIO DEALER
11.Help your customers
improve their credit
rating.
“Reporting to Equifax on how
a vehicle is repaid will help a
customer when he or she is
looking to move up into a
different vehicle,” says Gignac.
“Some smaller dealers may not
be able to report each and
every lease as a trade line, but
they can certainly put a
registered lien on the vehicle
so a future lender can see who
has the lien and the amount
that was given.”
This is crucial to helping your
customers improve their credit
rating, Gignac says.
When you meet with your
customer to complete the
paperwork, fully disclose your
customer’s credit rating and
explain what needs to be done
to improve it. This is where the
shorter-term leases come in to
play. If a customer proves on a
short-term lease that they pay
consistently, they may qualify
for a lower rate and/or a better
car. Again, make sure they can
make those higher payments if
they go for a more expensive
car.
Charging customers a lower
rate may sound counterintuitive, given that you need to
earn money. But if you become
known as a trustworthy used
car dealer who doesn’t take
advantage of people, you’ll
likely find yourself spending less
on advertising, because most of
your clients will be through
word-of-mouth.
That has been Kenny’s
experience.
“My best customer retention
has been my lease portfolio,”
he says. “And my best referrals
come from my lease portfolio.”
Buy here, pay here can be a real
hassle, or a real blessing. If your
intent with this business model is to
manage your cash flow better and
help people improve their credit
rating, then you’ll stand a good
chance of success. Not only will the
regular cash flow help you get
through many financial difficulties,
but once customers realize that
your intent truly is to help them
out of their credit difficulties, you’ll
increase your chances that they’ll
remain customers for life. OD
The three pillars on which the UCDA has been established are
Education, Representation and Mediation.
This is why we’re very pleased to now offer a 1-day education course
for OMVIC Certification. This course for new dealers and salespeople is
administered by Georgian College and taught by Bob Pierce, the UCDA’s
Director of Member Services.
PROUD PROVIDERS OF THE
Now you can take the course, write the test the same day and know
within 48 hours if you’ve passed. The registration fee includes the course
text book, 1-day course, lunch and the test for only $365.
AUTOMOTIVE CERTIFICATION COURSE
Current available dates are:
Call Valerie MacLean at 1-800-268-2598
for more information, or to register!
May 23rd – Wye Management
Woodbridge, ON
May 30th – OMVIC
Toronto, ON
For those who do not wish to take the full classroom
course, off-site, self study is also available.
June 11th
Ottawa – Southway Hotel
Registration for self-study is handled directly by
Georgian College:
June 18th – Georgian College
Barrie, ON
Call 1-877-722-1513
June 19th – Wye Management
Woodbridge, ON
&
…Announce their new:
Salesperson Training Course
This new Sales Training course is a 1-day workshop (specifically for new Salespeople) designed to
teach you how to approach your customers, negotiate and close the deal and do it all the right way
(including the paper-work!)
The next two available class dates are May 12th and June 20th. Both are held at the
Wye Management Centre in Woodbridge, ON at 55 Winges Road.
Salespeople will learn:
t How to get started in the auto industry
t Sales skills and the steps to a modern sales process
t How to close a sale and deal with difficult objections
t How to negotiate a sale
t How to ensure success
UCDA Members: $150 + HST
Non-Members: $300 + HST
Call Valerie MacLean at 1-800-268-2598
ONTARIO DEALER
43
Industry
Annual Investigation Results Hurt All Dealers
A recent report on CTV News
focussed on the investigation by W5
and the Automobile Protection
Association (APA) of the Canadian car
industry.
The APA surveyed 21 car sellers in
the Toronto area and turned up
everything from dealers who added
extra fees to their advertised price, to
dealers who misrepresented a car’s
accident history and even dealers who
misrepresented themselves, as private
individuals selling their personal
vehicles.
However, the real issue was finding
rebuilt cars that were so poorly
repaired after an accident that they
should have never passed a
government approved structural
inspection, said the APA.
Some of the cars the APA found for
sale raise questions about the
oversight of that inspection system –
particularly structural inspections at
government licensed Structural
Inspection Stations.
One car in particular stood out – a
2012 Mazda 3. The salesman admitted
the car had been in an accident but
claimed it was only cosmetic damage
and that there was “no frame
damage”. He showed the shoppers a
photo showing only minor damage to
the car.
There was just one problem: the
photo he showed as his proof was a
photo of a completely different car.
W5 tracked down the car’s real
accident photos and the damage was
much worse than the salesman
claimed. The car did indeed have
frame damage.
44
ONTARIO DEALER
The APA also found:
• the car was improperly welded
(torch welding was used to patch
up ultra-high strength steel);
• the bumper was improperly
attached (welded instead of
bolted); and
• the car was poorly aligned.
The Ministry of Transportation told
W5 that deficiencies like this should
have been spotted in a structural
inspection. However, when W5
investigated, it found that the car had
indeed passed a structural inspection
and been given a certificate.
In March 2014, the government
introduced new legislation that it says
will remedy many of the issues raised
by the APA survey. The MTO says the
new bill will “substantively improve
enforcement and inspections.”
Most poorly repaired and improperly
disclosed salvage vehicles found by the
APA investigation were being sold by
curbsiders. This re-emphasizes the
danger for consumers when they
purchase a vehicle privately and
reinforces the importance of the
protection that consumers have when
purchasing from a registered dealer.
Rifco announces two new members to
the New Dealer Partner Development
Rifco has announced the addition of two new team members to connect with
more dealers in Ontario.
Tina Shanahan and Joanna Godden both have over 10 years in sales and
relationship management experience in the auto finance industry. Tina will be
working with Ontario West dealers; Catherine Del Monte will continue to
grow the Greater Toronto area; and Joanna will expand Rifco’s presence in
Ontario East.
This group will continue to build relationships with Rifco’s growing number of
dealer partners.
OMVIC has a new location ...and new look!
Ontario’s dealers and salespeople are very familiar with OMVIC and its
mandate, but it’s not the case with many
consumers. Changing this is the driving force
behind OMVIC’s new logo.
OMVIC’s new address: 65 Overlea Blvd.,
Suite 300, Toronto, ON M4H 1P1
news
Car Facts
Top Searched Makes & Models
Courtesy of autoTrader and Google Analytics as of March 2014
CANADA
Total Unique Searches: 3,221,473
Rank MakeTop 5 Models
Searches
1
Ford
F-150, Mustang, Escape, Focus, Edge
231,490
2
Honda
Civic, Accord, CR-V, Odyssey, Pilot
230,972
3
Toyota
Corolla, Tacoma, RAV4, Camry, Sienna
143,030
4
BMW
3 Series, X5, 5 Series, X3, M3
141,004
5
Chevrolet
Corvette, Camaro, Silverado 1500, Equinox, Impala
103,459
ONTARIO
Total Unique Searches: 1,654,499
Rank
MakeTop 5 Models
Searches
1
Ford
F-150, Mustang, Escape, Focus, Edge
117,767
2
Honda
Civic, Accord, CR-V, Odyssey, Pilot
113,665
3
BMW
3 Series, 5 Series, X5, X3, M3
81,178
4
Toyota
Corolla, Camry, RAV4, Tacoma, Sienna
73,609
5
Chevrolet
Corvette, Camaro, Silverado 1500, Equinox, Impala
53,669
Source:
1. autoTRADER Google Analytics Data, March 2014. 2. autoTRADER Google Analytics Data, March 2014.
3. autoTRADER Google Analytics Data, March 2014.
Please contact:
Justin M. Jakubiak
416-864-7605
jjakubiak@foglers.com
to discuss how our lawyers
can help your dealership today
We regularly assist Ontario dealerships with:
•
•
•
•
•
•
Advertising
• OMVIC registration, licensing
Commercial Leasing
and compliance
Employment Law
• Proposals to Refuse and
Licence Appeal Tribunal Matters
Proposals to Revoke
Litigation
• Provincial Offence Act charges
Mechanic’s and Storage Liens
www.foglers.com
ONTARIO DEALER
45
the last word
lease–to–own the right way
W
ith the crash of 2008 still
lingering from the new
manufacturers, we used car
dealers are still feeling the impact of
slow lease returns. Prior to the crash
we could go to the auction and there
would be 600-800 GMAC units with
an equal number in the Ford and
Chrysler lanes. At the same time loan
approvals got tougher – banks wanted
more proof of income and more due
diligence and more criteria for the
self-employed sector.
The positive side of the self-employed
market is they are very easy to sell
an in-house leasing program. Today,
I have a lot of self-employed customers staying in-house for the simplicity
of it and the tax write-off. When the
lease is over, customers have the
option to buy the lease out for one
additional payment. So the company
makes the payment and gets the
deductions. Someone gets the option
at the end to buy the unit for under
value. Normally the owner buys it for
the one extra payment and sells it
back to the company or sells it himself
or trades it in to upgrade.
I have been in the car business for 30
years – 20 years as a used car dealer.
There is a lot of traction right now
with the lease-to-own segment of the
business. There are pitfalls, as there
are in any venture, but those who do
it right stand to earn a lot of money
46
ONTARIO DEALER
Besides making money, a lease-toown program helps clean up aged
units, and gives you the ability to
finance cars outside the box of your
lenders.
The myth of high repos in the leaseto-own business is just that–a myth.
Our repo rate is in the single digits:
7-8%. We do have a process for
those who don’t pay, which includes
going to small claims court.
Alternately, customers can come in
and come up with a settlement to
avoid court. We also tell customers
at delivery what will happen if you
don’t pay. We make the rules very
clear up front and fully disclose on all
our contracts.
In the almost 20 years of our leaseto-own program, we have never had
a customer with buyer’s remorse.
Our base interest rate is 29%. For a
customer who pays well and stays
in-house we will discount the rate to
25%. Our best rate for our best
customers or for those who want to
stay in-house rather than go through
a bank is 19%.
Customers are, for the most part,
very grateful they’ve been given a
chance to re-establish their credit
and help clean up their credit score
as well. OD
John Kenney
As a member of
I want ...
• Competitive prices
• A big network
of stores
• Loyalty rebates
and rewards
NAPA Auto Parts offers everything a car dealer needs.
More than $1.3 million reinvested
in the UCDA network in 2013