A Dealer Management System is more than software

J U N E 2 0 2 1 | I N D E P E N D E N T D E A L E R | 1

JUNE

2021

www.FIADA.com

Convention details start on Page 16

A Dealer Management System is more than software; it's the foundation for your dealership.

2 | I N D E P E N D E N T D E A L E R | J U N E 2 0 2 1

toDealer Dealer a podcast presented by the

Join host Jason March as he interviews guests and discusses topics important to used car dealers in Florida and beyond. Stay tuned for more details on this upcoming podcast

C O M I N G S O O N


For members of the Florida Independent Automobile Dealers Association

JUNE 2021 | C O N T E N T S

F E AT U R E S

12 | Selecting the Right DMS Ask the right questions when comparing Dealer Management

System choices to make the right choice for you.

24 | Evolution of the DMS The used car industry is always changing, and your DMS

should be able to adapt with it.

26 | Online Video vs. Television Video is still one of the most effective ways to reach customers

and today's choices are more cost-effective than ever.

28 | Consumer Complaints on the Rise The CFPB released its Annual Complaint Report and has a lot

of information of interest to used car dealers.

D E PA R T M E N T S

4 President’s Message Jason March

6 Executive Director’s Message Lisette Mariner, CAE

7 PAC Contributors

8 Back to Basics Terry Myers

10 Membership News

15 Reader Survey

23 HR Advisor

30 Industry News

MAILING ADDRESS 1840 Fiddler Court Tallahassee, FL 32308

TELEPHONE (850) 385-2712 (800) 237-0448

FAX (850) 385-3251

WEBSITE www.FIADA.com

EXECUTIVE COMMITTEE

Jason March President

Chris Ellis Senior Vice President

Jim Winterick, Sr Chairman of the Board

Dexter Beard Secretary

Luis Giraldo Treasurer

Ejola Cook Regional Vice President

John Giasullo Regional Vice President

Brad Joel Regional Vice President

FIADA STAFF

Lisette Mariner, CAE Executive Director

Terry Myers Director of Development & Education

Julia Rooney Membership Manager

Savannah Calhoun Administrative Assistant

Christy Taylor Editorial/Advertising

POSTMASTER:Send address changes toFIADA • 1840 Fiddler Court

Tallahassee, FL 32308

(850) 385-2712 • Call/Text: (800) 237-0448

Fax (850) 385-3251 • www.FIADA.com

Florida Independent AutomobileDealers Association1840 Fiddler CourtTallahassee, FL 32308

The magazine is published every month inTallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers.Advertising rates are available upon request.

The statements and opinions expressedherein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.

The Independent Dealer is a publication of:

Facebook FriendsHave you "liked" the FIADA Facebook page? It's a great way to stay up-to-date in between magazine issues. We posted this video from President Jason March to invite dealers to the last Town Hall meeting.


PRESIDENT’S MESSAGE

Are You Delivering?Let the voice of the customer define your value proposition. | BY JASON MARCH

The Oxford dictionary defines Order Winning Criteria as the characteristics of a product or service that are most important in deciding whether or not a customer will make a purchase. These are the characteristics that positively differentiate a particular product from similar products in the market. Clearly order-winning criteria vary from customer to customer. OWC (order winning criteria) include things like: cost, quality, speed, flexibility (customization), innovation and information. Historically, dealers would choose one or two of these dimensions in which to compete. It reminds me of the old shop sign that says, "we do three types of jobs."

In reality, our current customer is asking us to deliver AT LEAST

three of these dimensions.Let me paint a picture, The customer sees a vehicle you have advertised on Facebook-one owner, clean Carfax, good miles, great shape. You are advertising that you can take the customer's info over the phone and set the whole deal up over email, text and photos so the customer spends the least bit of time possible at the dealership.You are delivering three dimensions: quality,

innovation and speed. Quality being that the vehicle you are selling is in great condition. Innovation is found in the ability to process the main parts of the deal digitally and speed with the customer not having to spend hours in your showroom.

Let's say in this example, a customer contacts you and wants you to sell the vehicle for $1,500 under your advertised price. This would be an example

of the customer wanting you to include a fourth dimension, cost. Or the customer is asking for you to arrange transport for out of state delivery, this would be an example of the customer asking you to offer the dimension of customization.

Now a days, most independent dealers have set up their operation to deliver three dimensions. Our dealership has always tried to hit the dimensions of quality, speed and flexibility. We try and buy a gently-used vehicle with one to three owners. We try to stay away from vehicles with heavy rust or major body damage, and recon the vehicle at our shop both

cosmetically and mechanically in order to fulfill our first dimension; quality.

Speed is our second dimension. We aim to have our customer in and out of the dealership in no more than two hours. The majority of the time we are able to accomplish this goal due to the in-house financing that we offer. This can be a struggle for other dealerships that depend on bank approvals.

Our third dimension is flexibility. Being a Buy Here-Pay Here, we are able to structure a loan with a customer who may be self-employed or have troubled credit. With the ability to customize a deal term to fit the customer's specific situation, we feel that this is an important part of our customer offering.

When delivered well, we feel these three dimensions are enough to satisfy our customer's expectations. For decades, three dimensions were all you needed to keep an upstanding reputation in the area and a loyal customer following. Socrates said, Better do a little well, than a great deal badly.

Many franchise Dealers are advertising an online financing process, home delivery and a price that is

JASON MARCHFIADA PRESIDENT


HARNESS THE POWER OF OUR DMS PLATFORM

MANAGE YOUR DEALERSHIPTHE PROGRAMS ARE OURS THE BENEFITS ARE YOURS

Monitor Inventory & Sales Process

Instant Approvals 24/7

Prompt ACH Funding

Full SpectrumFinancing

Competitive Rates

Aggressive Advances

Flexible Terms

Local Branch Offices

Training & Support

www.lobelfinancial.com │ 800.871.8051 │ [email protected]© 20

21 Lo

bel F

inanc

ial. A

ll righ

ts re

serve

d. Me

mber

NIA

DA.

263087-Lobel Harness the Power7.367x4.811.indd 1263087-Lobel Harness the Power7.367x4.811.indd 1 11/5/2020 10:26:46 AM11/5/2020 10:26:46 AM

PAID

ADV

ERTI

SING

at or below market value. This is an example of cost, speed and information.

Maybe your market is selling high line, luxury vehicles.The dimensions you are providing are cost, quality and flexibility. Your vehicle price competitive, you have a capable, well equipped service department and you are able to provide a loaner car if the customer brings the vehicle in for service.

Offering a fourth dimension can be a challenge. The nation is watching Carvana, Vroom and others try and hit multiple dimensions within our business to capture a piece of the market. Carmax and Autonation are also two large retailers that are attempting to go above and beyond the traditional dealership offering. Home delivery and online document signatures were accelerated by Covid. Now you can have 55 pictures to view, three videos, a 7-day test drive, the ability to shop for the lowest price, get the car delivered, fill out the documents online, and request every piece of information about the vehicle - Carfax, Autocheck, factory window sticker and warranty info.

Customers can have the option of choosing between several service contracts, gap contracts, tire and wheel, key replacement, paint protection, glass protection and more

when it comes to the world of ancillary products. They have the selection of color, mileage and trim package on specific models due to the vast inventory that these online retailers have. They also have multiple financing options for customers with varying levels of credit.

If you look at the reviews for Carvana and Vroom, they are not that impressive. Average reviews, less than a 4-star rating in certain cities. My brother-in-law almost bought a truck from Carvana but toward the end of the transaction, he learned the truck was not going to be delivered for at least three weeks. Delayed delivery of more than three weeks can be a challenge that money alone can't fix. I believe there must be great planning, training, preparation and follow through. Sometimes, you may even have to look at your operation and reconsider what dimensions you are attempting to offer.

Understanding your Order Winning Criteria can help dealerships cut down on time and energy spent working on things that do not align. Looking at your online reviews and talking with your customers can be a great way to determine what you do well and the dimensions that you can improve on. Listen to the voice of YOUR customer. We can't be everything to everyone.


What Do I Get For the Money?EXECUTIVE DIRECTOR’S MESSAGE

LISETTE MARINER, CAEEXECUTIVE DIRECTOR

Understanding the value of your FIADA membership. | BY LISETTE MARINER, CAE

Nearly every day I hear aboutcosts going up on daily necessities. The cyber-hijacking of the pipeline will increase the cost of gas. The truck driver shortage will increase the cost of deliveries. I even heard yesterday that chlorine tablets are going to go up because of a fire at a production plant in Louisianna. The point is, the cost of living is increasing and for most of us, incomes are not.

Simple math tells you that means that everyone will be looking at their expenses a little closer and deciding where their money will be best spent. While FIADA membership is a relatively modest investment (and, I'll add FIADA/NIADA dues have remained the same since 2013), compared to other trade associations, it is still an expense that needs justifying and I hope that I can do that for you.

Let's start with the tangible benefits. The things that you get with your membership that you can see, touch and put a monetary value on. This magazine is one of them. We send this magazine to members every month and fill it with information that can

better your business and your bottom line. We also follow-up the magazine with our E-newsletter, that provides you direct links for the printed stories as well as timely between-issue info. The FIADA Coupon Program offers over $6,000 of savings on products and services for independent

dealers. FIADA members receive complimentary (FREE) training at FIADA.com. We published a list of over a dozen courses currently

ready to view and are adding more all the time. The online courses and webinars are in addition to the other free resources available to download at FIADA.com like various federal compliance guides and forms.

Members also can call the FIADA office at 800.237.0448 and get help with compliance questions from the FIADA General Counsel. If you

have ever paid "billable" hours to an attorney then you know what a savings this is. Not to mention, the value of having assistance from experts who focus on the auto sales industry.

Beyond these benefits, there are others that maybe you can't put a dollar amount on per se, but are invaluable. FIADA is your "seat at the table" in Tallahassee, and through our partnership with NIADA, in Washington. Politics aren't for everyone, but like it or not that is the world we live in. So often laws get written, or vetoed, mostly because of "who you know." With our state headquarters positioned in Tallahassee and our full-time lobbyist Sandra Mortham representing us at The Capitol, the FIADA has built connections with influential lawmakers and has a listening ear with the state regulatory agencies that govern your business. Yes, non-members may enjoy the indirect benefits of these relationships when legislation is passed or vetoed, but you get the full-benefit of having a place to call when you need help.

Another priceless benefit of membership is the networking and camaraderie of members. It is unbelievably helpful to "know a guy" that can help you with any situation. FIADA is that link. Between our dealer members and our associate members, we can connect you with anything and everything you need to run your business well. We have done the legwork, the vetting and sometimes the negotiating for you to create a network of businesses and providers who are reputable and willing to help. Let's also not forget how important it is to be able to talk with other dealers, just like you, having problems, just like you, and brainstorming together ways to solve them and make it happen. It makes me proud to watch our members talk with each other at our meetings and events and see them enjoy helping and learning together.

So, what do you get for your money? All of this and so much more.


Contributor’s Name: ___________________________________Dealership/Company: ____________________________________

Street Address, City, State, Zip: _______________________________________________________________________________

q Check (payable to FIADA-PAC) q Credit Card (one time contribution) q Monthly Credit Card Contribution (until cancel)

q $500 q $250 q $100 q $50 q $25 q $________

Credit Card Information: q Visa q MasterCard q American Express q Discover

Name on Card: ______________________________________Card Number: __________________________________________

Exp. Date: __________________ Sec Code: __________________ Billing Phone: __________________________________

Billing Address: ____________________________________ Authorized Signature: ____________________________________

thank you pac donors!

Mail this form with payment to 1840 Fiddler Court • Tallahassee, FL 32308PAC CONTRIBUTION INFORMATION

The FIADA PAC has a year-end goal of $30,000. Current donations total $8,030.00, which is only 27% of the goal. Join the list of other dealers who have already contributed, and help move the needle forward!

you can also make a PAC CONTRIBUTION online at www.fiada.com/pac

Auto Dealers WholesaleB&A Auto Sales of Central Florida

BNM Enterprises, LLCCar CreditsCarBucksCarpay

Charles A Krblich, PA, CPAsCKC Auto Haus LLCDrive Nation USAFerco Motors Corp

Fleet Lease DisposalFlorida Auto Dealer SchoolFlorida Auto Exchange Co.

Gas BuggiesGoldStar by Spireon Inc.

GWC Warranty CorporationHaims Motors Inc

J-Linn MotorsMaher Chevrolet

Miami Auto BrokerMichael's Auto Sales of West

Melbourne Inc.NewGen Motors

Next Generation MotorsPeak Performance Team

Premier Motor CarsPremier Truck Center LLC

Speedway Auto SalesSteve's Auto Repair

Streetside Classic CarsThe Guaranteed Best Choice Inc

Unique Cars Of Palm BeachVans Cars & Trucks


Understanding what a DMS is and does can help you use it better. | BY TERRY MYERS

What Do the Letters DMS Mean to You?BACK TO BASICS

The acronym DMS can representdifferent things to different people. DMS could stand for the Division of Motorist Services, the agency tasked with licensing, educating, and overseeing the activities of Florida licensed dealers.

It can also mean Dealer Management Software, which is a valuable tool(s) designed to help the dealer find the right car and put it together with the right customer for the right amount of money. It also helps the dealer answer the right questions into the right documents so that transactions take place when, where and how they are mandated to do so. When someone from the DMS (Division of Motorist Services), or other governing agency has questions, it helps the dealer produce the desired answers.

DMS, is also the Dealer Management System, and provides the what, when, why and how do I duplicate it if it provides a good result. In this case, the DMS can help make the dealer money!

Properly established and constantly fine-tuned by the dealer of a successfully operated business, the Dealer’s Management System helps the dealer identify: What is producing the desired results now and into the future. When did it happen and do I see it continuing to happen in the near term, long term, and/or certain times of the year? Why did this desired result happen? How do I prepare ahead of time to duplicate it?

Which DMS (Dealer Management System) does your dealership have in place to help produce the legal elements required to meet the needs of the customer, the vendors, the business, DMS (Division of Motorist Services), and other applicable governing entities? Review the sample checklist on page 9 to verify which DMS you have in place and which might you still need to incorporate.

These systems can be and are valuable tools to train and review with employees. Place into their employment folders as proof of training.Should you discover a system you need to improve upon, you may want to investigate the many training tools currently available on the FIADA website.

When you have a Dealer Management System that works, and you train your employees to use it properly, everybody wins!

Not to be confused with a DMS, the DMH can also help your business. DMH in this case stands for Dealer Money Hour, the monthly webinar I host at www.FIADA.com. This month's topic is "Lien Sale Piracy: Protecting Your Dealership's Vehicle Investment." My guest will be Bankruptcy Attorney Dennis LeVine. If you want to learn about your rights, actions to take and when to take them when it comes to bankruptcy, then go to www.FIADA.com/webinars and register now.

Need experienced eyes to help you see into today’s future? Call the association at (800) 237-0448 and ask for Lisette. Connect with someone who has expertise in the area(s) you would like to learn more about. She can help connect you with me, an FIADA dealer member or a relevant vendor. FIADA members also have access to an industry attorney for answers and/or directions the dealer may need to pursue.

If you are not yet a FIADA member, what are you waiting for? Go to www.fiada.com.

Articles are the opinion of the author and are not intended to be legal or accounting advice. The intent is to share thoughts and concepts that help the business owner(s) find new and perhaps revisit, ways to be as successful as they are capable of being. Terry can be reached at (727) 804-7375. Email: [email protected]. Feedback is appreciated and encouraged. Terry L Myers, FIADA Director of Education and Development.

TERRY MYERSEDUCATIONALINSTRUCTOR


Can You Answer Yes to the Questions Below? Yes No Potential Sanctions/Fines/Penalties if NoDo you have the NEW 2018 FTC BUYER’S GUIDE displayed on EVERY QUALIFIED used vehicle?

$1,000/each to $46,000+/each

Do you make each customer of a ‘qualified’ vehicle aware they may redirect $105, or a lower qualified amount, to the HOPE SCHOLARSHIP fund?

$1,000/day to $10,000

Are you transferring ownership within the required 30-days? $1,000/eachAre you collecting, electronically reporting and remitting sales tax by the end of the business day prior to the 20th?

$0.00 collection allowance, + Taxes, + Penalties, + Interest

Are you checking each customer against the SDN list to obtain permission of how to proceed?

Million$$$ in fines, Loss of assets business & personal, + too many years in jail

Are you following state and federal Repossession laws? Court Fines & Attorney FeesDo you obtain HSMV 84061 for customers who do their own Title & Registration in another state or country?

$1,000/each

Do you obtain a copy of the customer’s completed DOR-123 as proof you had a right to charge at that state’s rate?

Taxes, penalties & interest on what was not exempt without the DR-123

Do you provide and obtain a signed Pollution Control statement to retail customers and a signed one for the file?

$1,000/each

Do you have a Motor Vehicle Retail Installment Seller license and remember to renew it each even year December?

$500/each unlicensed transaction

Are you paying off liens of trade-ins within the required 10 business days, as per f.s.319.24 (5)(a)?

Sanctions/Fines, Court Costs, Attorney Fees, Jail

Are you carrying forward all Brands of acquired vehicles to the retail customer on HSMV 82040 and providing the required Affidavit they signed acknowledging the brand?

Reimburse customer for Major Repairs, Principal, Interest (or) your bonding company

Are you reporting qualifying Cash or Cash Equivalent Transactions to the IRS on IRS 8300, with a Copy to the Florida DOR and a letter to the customer within the required time frames?

$25,000/each non-reported qualifying event

When you advertise a vehicle for sale, is it in one of your Designated Display slots?

$1,000/each

Do you take a Tax Credit for qualified Repossessed Vehicles on the DR-95B within the allowable time frame or lose that benefit?

Credits may only be applied within 12-months of the qualifying event

Are you able to timely produce records of all retail and wholesale transactions within the last 5-years when asked in an audit?

$1,000/each

Do you dispose of private information as required by the Federal Disposal Rule?

$46,000/each

Do you have Bills-of-Sale and required Odometer Statements for every vehicle purchased and sold?

$1,000/each

Are you aware of the 10-year/20-year EXEMPT rules for Odometers as of January 1, 2021?

You, your business and more

Do you always know what your 1099 and W-4 Employees are doing under your authority?

Your entire business and more

Sample DMS Checklist

1 0 | I N D E P E N D E N T D E A L E R | J U N E 2 0 2 1

ALPHA AUTO TRADER LLCTampa, FLZiya TuncerSponsor: FIADA

BAUTISTA AUTO SALES & REPAIR INC.Winter Haven, FLLoretta BaileySponsor: Julia Rooney

CARQUEST MOTORSSanford, FLZaheer MDatooSponsor: Lisette Mariner

ELECTRONIC MERCHANT SYSTEMSCleveland, OHJennifer HeideloffSponsor: Luis Giraldo

PEAK PERFORMANCE TEAMSurfside, SCDanny DelichSponsor: Julia Rooney

PRIME LEASING & SALES LLCWinter Garden, FLSixto VargasSponsor: Terry Myers

SIROUS AUTOJacksonville, FLSirous GabraniSponsor: FIADA

T AUTO SALES LLCCoconut Creek, FLEthellot ElusmaSponsor: Terry Myers

US AUTO CREDITJacksonville, FLSean DallSponsor: FIADA

VINTAGE MOTORS OF SARASOTASarasota, FLBlake GodbeySponsor: FIADA

R E N E W I N G M E M B E R S

30+ Year MembersFlorida Auto Exchange Co. Dunedin, FL20+ Year MembersCar Credits Tampa, FLFleet Lease Disposal Delray Beach, FLGWC Warranty Corporation Wilkes Barre, PAJ-Linn Motors Clearwater, FLMaher Chevrolet Saint Petersburg, FLTaylor Morgan, Inc. dba Network Auto Sales Jacksonville, FLVans Cars & Trucks Brooksville, FL10+ Year MembersAuto Dealers Wholesale Tallahassee, FLGoldStar by Spireon Inc. Irvine, CARock Bottom Auto Sales, Inc. Hudson, FLSouthern Country Auto Sales Gainesville, FLUnder 10 Year MembersAdvantage Automotive Analytics Irvine, CAB&A Auto Sales of Central Florida Winter Garden, FLBNM Enterprises, LLC St. Augustine, FLCarBucks Greenville, SCCarpay Edmond, OK

CARS Protection Plus Murrysville, PACharles A Krblich, PA, CPAs Fort Lauderdale, FLDirect Deal Autos LLC Fort Lauderdale, FLDrive Nation USA Bradenton, FLFERCO MOTORS CORP Miami, FLGas Buggies Lehigh Acres, FLHaims Motors Inc Hollywood, FLMichael's Auto Sales of West Melbourne Inc. Palm Bay, FLMugrado Automotive Group Jacksonville, FLNewGen Motors Lakeland, FLNext Generation Motors Gainesville, FLPremier Motor Cars Bonita Springs, FLPremier Truck Center LLC Palmetto, FLSafe Financial Group LLC Doral, FLSpeedway Auto Sales Lake Wales, FLSport Classic Motorcars, LLC Ormond Beach, FLSteve's Auto Sales, LLC Sarasota, FLStreetside Classic Cars Lutz, FLTampa Hybrids Inc. Lutz, FLThe Guaranteed Best Choice Inc Hollywood, FLUnique Cars Of Palm Beach Boca Raton, FL

MEMBERSHIP NEWS

N E W M E M B E R S

MAY 2021

CKC LUXURY AUTOFt. Myers, FLCharles CunninghamSponsor: Terry MyersRALPH'S PLACEPort St Lucie, FLRalph FoggSponsor: FIADA

R E J O I N I N G M E M B E R S

J U N E 2 0 2 1 | I N D E P E N D E N T D E A L E R | 1 1

PAID

ADV

ERTI

SING


How to choose the right system that will work best for your dealership.

Selecting the Right

DMS BY BOB HIGGINS

When choosing a Dealer Management Software System, the choices are not always equal when the smoke and mirrors are gone. To be able to make the right choice for your dealership's needs, you have to be able to evaluate exactly what the DMS does and can do, how much it will cost and whether the investment of your time and money will be worth it.

Often referred to as a DMS, Dealer Management Software, is a program that can be accessed from a computer, tablet or mobile device. It is used by a dealership to track vehicles they purchase and inventory reconditioning expenses. It allows for selling to either wholesale or retail customers as well as submitting credit applications to lenders for funding. For the Buy Here-Pay Here Dealer, it will be used to receive payments as well as making the collection process easier with

automation, and some may also include a built in related finance company. In a nutshell, a DMS should be the dealership hub that communicates with almost every other vendor or portal the dealership uses. If it's not making your life as a dealer easier, then you probably haven't selected the right one.

Decisions for purchasing a DMS are sometimes based on previous experience or referrals, but dealers should be careful as out-of-date or misleading information may lead to an inappropriate choice. Often, a DMS provider will require a contract to be signed, which can obligate a dealer to a minimum number of months. This is good information to be aware of before signing the agreement for service. Long-term contracts can be difficult to escape, and in some cases, the unsuspecting dealer ends up paying for two DMS services while only using one. Other dealers may look at pricing, integrated partners, available forms or base


the decision on the type of vehicles they will be selling. For example; cash sales, wholesale, Buy Here-Pay Here, bank financing or a combination of all. It seems that while every dealership is a little different, the one thing they all have in common is the need for a DMS.

Things to consider when choosing a DMS:Costs: To avoid surprises, it's important to understand what the upfront costs as well as the total monthly costs are going to be for a DMS. The one that appears to be the least expensive can sometimes turn out to cost a dealership much more than they anticipated.

So what should the conscientious dealer look for? Additional setup fees, monthly subscription fees, costs per deal, pay-per-click forms and even a monthly charge per open account. There may also be expenses for additional training for employees or owners. It is always good to remember that additional expenses not directly related to the DMS provider may need to be considered

when setting the budget for the DMS. Some examples include, but are not limited to, networking (the cost of setting up computers to communicate when the program is installed locally), online storage fees for backing up and archiving data, and finally, calculating the cost on the total number of computers and printers that are needed.

Budgeting is also recommended for the network wiring that will allow for each computer to communicate with the internet and printers to ensure trouble free access. Wireless access points which will allow computers, phones and tablets to communicate with the internet are also a great addition; however, without spending large amounts of money, wireless access points do not usually provide the stability needed for heavy users.

Finally, dealers should also budget in the cost of reliable internet, printer ink or toner, and paper. To get the best out of any DMS, additional subscriptions

are usually available for items such as book values, vehicle history reports, credit bureaus and title processing.

Online or Desktop: This may be one of the more important things to think about. First, what's the difference? With Desktop Software, the dealership data will always be stuck on an office computer. On the other hand, an Online DMS will provide data storage that data can be securely accessed by computers from anywhere, which allows for greater mobility of the dealership. In today’s

mobile world, accessing a DMS from the auction, the house, or the office could be one of the most important decisions to consider.

Desktop DMS programs tend to be faster and dealerships are able to maintain control of the data. However, one of the most common disadvantages of a desktop program is the vulnerability of this data. Protecting data means establishing a consistent policy of running and storing backups, protecting computers behind a firewall as well as

A Dealership Management System (DMS) is a bundled management information system created specifically for automotive industry car dealerships. These systems often contain software that cater to the needs of the finance, sales, parts, inventory and administration components of running the dealership.

— Wikipedia

Continued on page 14


protecting the computers against theft in the office. Dealers using a desktop program must have a plan in place that will allow recovery from hardware failure, theft, and even a data breach.

With an Online DMS, the data is hosted securely online, and backups, as well as live data replication are usually handled with no need for additional online storage expenses. There are likely no networking expenses as dealerships just need the computers accessing the data to be connected to the internet. An online DMS also allows for dealerships to grant access to their CPA’s, which can allow the CPA to run the reports they need more efficiently and often at a reduced expense.

However, there are a few disadvantages to Online DMS programs. The speed of the data access is limited to the speed of the internet.

As internet speeds have drastically increased in the last few years, this has become much less of an issue, but it does still remain a challenge for some areas. It is worth remembering that even a desktop DMS will need access to the internet for many of its functions. Some examples include checking the Specially Designated Nationals list, pulling credit bureau reports, submitting credit applications to finance portals and lending institutions. So, good internet access is always recommended whether the DMS is Online or Desktop

Over the last few years and indeed even recently many DMS companies have been acquired by large corporations or private equity firms. Some DMS companies are still privately owned and may operate in smaller geographic regions where a more customized experience can be enjoyed

by the dealers who elect to use them.

Nothing seems to be more aggravating to a dealer than changing from one DMS to another. This means choosing a company carefully and hopefully avoiding the need to switch DMS providers at a later date.

The Benefits of Making the Right Selection:A well chosen DMS will be like a favorite employee. It will be available for work or questions any time, day or night. It will keep forms up to date and never run out of them. It will help make sure of consistent paperwork in deal jackets and track money owed to the dealership. It should automatically run backups and updates. It should communicate with the dealerships website and

make the electronic titling effort easier by populating

data for temp tag printing and electronic

titling. It will allow transferring of deal data to all the

popular finance portals. At the

end of the day it will know

how much money has been

collected for the deposit slip and at month's end it should provide a sales tax report that can be used to help complete monthly state sales and use tax returns. Other important features enjoyed by many are the ability to handle electronic signatures and auto posting of customer payments received online. As the car business changes, make sure the DMS provider you choose can provide the tools you need to keep up.

Bob Higgins is the Business Relations Director with Wayne Reaves Auto Dealer Solutions; www.waynereaves.com.

SELECTING THE RIGHT DMS continued from Page 13.

M A Y 2 0 2 1 | I N D E P E N D E N T D E A L E R | 1 4

We don't send SPAM!Are you getting our monthly newsletters and Dealer Alerts? If not, check your spam folder and make sure you mark us for your inbox. Add [email protected] to your contacts!

We regularly send out information that is important for all dealers. If you aren't receiving our newsletters, and want to subscribe, send your email to [email protected]


READERSURVEY

With all the options available to dealers for DMS software, we were curious to find out what our members use. Check out this list of your write-in responses.

Do you have an idea for a survey question? Send it to us at [email protected] Us:

Wayne Reaves Auto Dealer Solutions

Blackpurl

Adam Systems

InterActive DMS

Frazer

DealerCenter

Auto Master Systems

ADD123

Cybernetics

NetSuite

ComSoft

None

If you are shopping around for a DMS, don’t forget, there are a few member-only savings that you can take advantage of:

ABCOA/ Deal Pack Software: free training, free updates, free support and 20% off one time set up fee for FIADA members.

Auto Data Direct: Auto Data Direct offers free activation for FIADA dealers who sign up for their ELT services and deposit $50 in a pre-paid account.

DealerCenter: Free DealerCenter 30-day trial.

Dealerplatform.com: FIADA members get first 30 days free.

FIADA DMS Savings:It Pays to be a Member!

Advice from a FIADA Dealer:

Jim Winterick is a past FIADA President and a veteran used car dealer in Miami. When it comes to choosing a Dealer Management System he says:

“Find something that is easy to use and anyone can learn. I call mine a PHD, push here dummy. These systems can be expensive, so make sure you choose one that fits in your budget. The one I use isn’t fully automated; we still have to post payments manually, but we like how uncomplicated everything else is. Remember, you don’t always have to order a filet when all you need is a cheeseburger.”

Dealer Full access pass:

$199 (THROUGH JULY 25)

ASSOCIATE Full access pass:


ONE DAY pass:


SPOUSE FULL access pass:


CHILD pass:

free (12 AND UNDER) | $100 (AGES 13+)

registration options:go to f iada.com for pass descriptions

Blue Heron Bridge Worth Avenue Shopping District Rapids Water Park Lion Country Safari

Join us at the 2021 FIADA Annual Convention and Trade Show at the Hilton West Palm Beach in august.

It's your chance to join Florida's top independent dealers for industry education, networking and fun.

The Sunday-Tuesday schedule means less time out of the office and more time to focus on bettering your business with 10 hours of educational sessions designed for all types of dealers.

From retail to BHPH, we have a track that fits your needs. Check it out at FIADA.com/Convention



CLUBFIADA

August 1-3, 2021west palm beach

turn your work trip into a family getaway

West Palm Beach is full of family-friendly activities such as Lion Country Safari, the Fisher Family Science Center, the Palm Beach Zoo and Rapids Water Park. Enjoy shopping on Worth Avenue or at the Palm Beach Outlets. Check out all the things you can do at FIADA.com/ConventionFun.

Image Credits (L to R): Scott Eddy, Discover The Palm Beaches, Adrian Wilcox Photography

South Florida Science Center and Aquarium Ann Norton Sculpture Gardens Sailfish Marina Resort Mural by Eduardo Kpbra | Canvas Outdoor Museum

Hilton West Palm Beach600 Okeechobee Blvd, West Palm Beach, FLMake reservations before June 30 to receive FIADA's Group Rate of $139/night (plus tax). Head over to FIADA.com/ConventionRegistration to book or, call the hotel directly at 1-855-757-4985 and use Group Code: ZFIADA. This is a valet-only hotel.

We're excited to announce the first-ever FIADA Kid's Club! While you enjoy the Exhibit Hall Grand Opening on Monday night, drop the kids off for supervised food and fun. (Open to ages 2 and up).

featured speakers

breakout sessionsThe schedule is full of concurrent breakout sessions on Monday and Tuesday covering topics like:

Compliance • Sales Training • Inventory Management • Portfolio Management • Best Practices Marketing Benchmarks • Understanding Financials • and MORE!

meet the legislatorsOne of the top sessions at the Annual Convention is always the "Meet the Legislators." Planned for Tuesday morning at 9:00, FIADA is honored to present Senator Ed Hooper and Representative Stan McClain. Get to know these legislators, hear their take on the 2021 Session, get a preview of what's next for the Legislature and more. If you've always wanted to be part of the Legislative process and help FIADA advocate for Florida's Independent Dealers this is your chance! United we Stand.

Sen. Ed Hooper Rep. Stan McClain

PALMER BRANDGeneral Session - Tuesday at 3:20 pmPalmer Brand currently serves as Program Manager for the Bureau of Dealer Services and has been employed with the Florida Department of Highway Safety and Motor Vehicles for the past 32 years. Join him on Tuesday for a Department update and Q&A session.

TIM DEESEKeynote Speaker - Tuesday at 2:15 pmTim Deese is a veteran of the auto industry and head of Progressive Basics, a training and consulting firm specializing in used cars. Join him for "A Good Old-Fashioned Sales Team Meeting" on Tuesday at 2:15pm.

ROB SICKLESGeneral Session - Monday at 3:00 pmRob Sickles is the FIADA General Counsel and a litigator who defends clients in individual and class action consumer financial and regulatory matters, with a special emphasis on the automotive industry. He will be providing a legislative and regulatory update on Monday.

JOE LESCOTAKeynote Speaker - Monday at 9:00 amJoe Lescota is a highly recognized executive level, automotive retail educator and presenter. His area of expertise and focus is on; dealership financial statement analysis, inventory management and controls with emphasis on teaching dealers how to control expenses leading to greater net profit and sustainability.


tentative schedule

The three-day schedule has been carefully created to offer a wide variety of educational sessions and industry speakers:

Sunday, August 1, 2021

3:00 - 7:00 pm Registration Open

6:00 - 7:00 pm Welcome Reception

Monday, August 2, 2021

7:30 am - 4:00 pm Registration Open

8:00 - 9:00 am Breakfast

9:00 - 10:15 am Opening Keynote with Joe Lescota

10:15 - 10:45 am Member Meeting

11:00 am - 12:00 pm Breakout Sessions

12:15 pm - 1:30 pm Lunch

1:45 - 2:45 pm Breakout Sessions

3:00 - 4:00 pm General Session: Legal Update with Rob Sickles (Mandatory for CE)


5:30 - 9:00 pm Exhibit Hall Grand Opening

Tuesday, August 3, 2021

7:30 am - 4:00 pm Registration Open

8:00 - 9:00 am Breakfast with Exhibitors

9:00 - 10:15 am Meet the Legislators with Sen. Ed Hooper and Rep. Stan McClain (Mandatory for CE)

10:30 - 11:30 am Breakout Sessions

11:45 am - 2:00 pm Lunch with Exhibitors

2:15 - 3:15 pm Closing Keynote with Tim Deese

3:20 - 4:20 pm General Session: DHSMV Update with Palmer Brand (Mandatory for CE)


exhibit hall

Get the latest on products, services, trends, tools and more in the exhibit hall. Current exhibitors (as of 6/2/21) include:

New this year FIADA is making it easy to request one-on-one focused time with the exhibitors you want to network with. On your registration form, or online at FIADA.com/ConventionSponsors just choose which industry category or vendor you are interested in meeting with. We'll match you with a time and place to meet making your time at the expo as efficient and beneficial as possible.

sign-up for one-on-one meetings at the expo


ACV

Advance Professional

Advantage Automotive Analytics

Agora Data

American Credit Acceptance/Spartan Financial

Auto Data Direct

Buckeye

Carpay

DDI Technology

Frazer Computing

Georgia Carolina Auto Auction

Golden Eagle Management Services LLC (GEMS)

Goldstar GPS guided by Spireon

GWC Warranty

Kinetic Advantage

Nationwide Southeast Orange Auto Tag Agency

PassTimeGPS

Peak Performance Team

Preferred Dealer Solutions

ProGuard Warranty Inc

Purvis Gray and Company LLP

REPAY

SecureClose

Spartan Financial

Sterling Credit Corporation

Tax Refund Services

U.S. Auto Credit Corporation

Wayne Reaves Software


get more details and register at www.f iada.com/convention

Silver

Bronze

Marquis

2021 convention sponsors

Additional SponsorsLanyard Sponsor Welcome Reception

SponsorBadge Sponsor

Thank you to our 2021 Convention Sponsors!

Interested in becoming a 2021 Convention Sponsor or Exhibitor? Hurry before it's too late.Go to FIADA.com/ConventionSponsors for details.

Lunch SponsorTote Bag Sponsor


DEALER FULL ACCESS PASS (Includes all events and meals)

Badge Name: ______________________________________________________ [ ] $199 [ ] $349

ASSOCIATE FULL ACCESS PASS (Includes all events and meals)

Badge Name: ______________________________________________________ [ ] $299 [ ] $399

ADDITIONAL FULL ACCESS PASS (Available with purchase of Full Access Pass)

Badge Name: ______________________________________________________ [ ] $199 [ ] $199

Badge Name: ______________________________________________________ [ ] $199 [ ] $199

SPOUSE FULL ACCESS PASS (Available with purchase of Full Access Pass)

Badge Name: ______________________________________________________ [ ] $100 [ ] $100

CHILD PASS (13 and under)

Badge Name: ______________________________________________________ [ ] FREE [ ] FREE

ONE-DAY PASS* (Please choose which day)*You must attend both days of the convention in order to obtain continuing education credit.

[ ] Monday [ ] Tuesday [ ] $150 [ ] $200

[ ] I have enclosed a check made payable to FIADA [ ] I will be using a credit card

Name (as it appears on card): ______________________________________ Company: _____________________________________________

Credit Card Billing Address: ______________________________________________________________________________________________

Credit Card Number: ________________________________________________________________ Exp Date: _________________________

Authorized Signature: ________________________________________________________________ CC Security Code: ___________________CANCELLATION POLICY: If cancellations are received in writing before 5pm on Monday, June 21, 2021, we will refund your registration fee. If cancellation is received between 6/21/2021 and 7/19/2021, we will refund your registration fee less a $25 processing fee. Fees cannot be refunded for registrations canceled after 7/19/2021or for no-shows. PHOTO/VIDEO/TEXT RELEASE: By registering for the 2021 FIADA Annual Convention, I hereby grant permission to use any and all photographic imagery and video footage taken of me at this event and activities pertaining to this event, without payment or any other consideration. I understand that such materials may be published electronically or in print, or used in presentations or exhibitions. By providing your mobile number, you agree to receive convention-related texts from FIADA.

Return this completed form: Mail: FIADA, 1840 Fiddler Court, Tallahassee, FL 32308 Fax: (850) 385-3251 Register: Online: www.FIADA.com Call/Text: (800) 237-0448

Company: ___________________________________________________________________________________________________________

Address: ________________________________________________________ City, State, Zip: _______________________________________

Phone: __________________________________________________________ Mobile: _____________________________________________

E-mail: _________________________________________________________ Website: ____________________________________________

TOTAL: $

2021 FIADA ANNUAL CONVENTION REGISTRATION FORM

REGULAR(Until 7/25)

ON-SITE(7/26 - 8/1)

REGISTRATION INFORMATION

AUGUST 1-3, 2021 | HILTON WEST PALM BEACH

FULL ACCESS PASSES includes all meal functions, seminars and exhibit hall access and is eligible for continuing education credit. Additional Full Access passes and Spouse pass are only available with a Full Access registration. Valid FIADA membership required for FIADA member registration rates. CHILD REGISTRATIONS AVAILABLE Contact FIADA at (800) 237-0448 for details and to register.

COMPANY INFORMATION

PAYMENT INFORMATION

HOTEL INFORMATION

Hilton West Palm Beach, 600 Okeechobee Blvd, West Palm Beach, FL 33401. Hotel stay is separate from convention registration.

Reservations must be made by JUNE 30, 2021 to qualify for group discount of $139 per night (plus tax) For reservations call 561-231-6000 Option 1.

MEETING OPPORTUNITIESWhich of the following would you be interested in learning more about?(Check all that apply)

Auctions

Insurance Products/ Warranties/F&I

Financing

GPS Services

Other (please specify):

_______________

_______________

_______________

_______________

VENDOR NETWORKING

DUES: $325 Annually Sponsor: ________________________________________

Company Name: _____________________________________________________________

Address: _________________________________________ City: ______________________ State: ______ Zip: _________

Phone: ________________________________Fax: _______________________________ Email: _______________________

Principal Contact: ____________________________________ Signature:___________________________________________

Payment Method:

Card Number: _____________________________________________ Expiration Date: ___________________ CVV: _________

Name on Card: ___________________________________________________________________________________________

Dealer Type: Years in business? ____________ License# _____________________

SUPPORT THE FIADA PACYour PAC Contribution helps spread the awareness and gain support of issues affecting independent dealers in the state's capitol.

q $500 q $250 q $100 q $50 q $25 q _________

q New Mbr q Associate Mbr

q Check (made payable to FIADA) q Visa q Mastercard q American Express q Discover

By signing I agree to the FIADA code of ethics and FCC Consent.

I authorize FIADA to charge my credit card listed above.

q Retail q BHPH q Wholesale

FCC Communications Consent: I understand that by providing my mailing address, email address, telephone number and fax number, I consent to receive valuable and timely communications via mail, parcel, email, telephone, text and/or fax from or on behalf of the Florida Independent Automobile Dealers Association (FIADA). This consent shall remain in effect until FIADA receives written revocation signed by an authorized representative.

800.237.0448 | Fax: 850-385-3251 | Email: [email protected] | www.FIADA.com | Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308

Florida Independent Automobile Dealers AssociationServing Dealers Since 1940.

FIADA’s Vision is to be the leading resource for Florida’s independent automobile industry. OUR Mission is to protect, promote and preserve independent automobile dealers, vendors and consumers through education, ethical practice, professional networking and advocacy of fair legislation/regulation.

FIADA PROVIDES DEALERS WITH:

REPRESENTATION:A lobbyist and legislative committee that fights for the interest of dealers.

EDUCATION:Free Continuing Education and free phone calls to legal counsel.

DEDICATION:A network of 600+ dealers who are united by the same issues as you.

AFFILIATION:Access to over 100 vendors who specialize in auto industry needs.

MEMBER DISCOUNTS:Take advantage of member-only discounts at over 12 auctions in Florida & Georgia as well as savings from companies like ADD, ASC, Carfax and more. The number of benefits you receive as a member pays for the price of your membership. For $325 you can’t afford not to be a member. It costs less than $1.00 per day to get connected inside the industry.

MEMBERSHIP APPLICATION


q New Mbr q Associate Mbr

I authorize FIADA to charge my credit card listed above.

800.237.0448 | Fax: 850-385-3251 | Email: [email protected] | www.FIADA.com | Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308

Three Tips to Make Online Training Successful Long TermOnline trainings can be a useful tool for developing talent, but they can also end up being a waste of time and resources, even if the content and presentation are good. The difference between effective and ineffective training often comes down to whether employees are able to absorb and retain the information they receive.

There are lot of obstacles to absorption and retention of trainings. Busy employees may listen to a webinar while they work on other things, catching only tidbits here and there. Or they may put a training video off until they’ve finished a project and are too exhausted to give it due attention.

To avoid these training pitfalls, consider these three tips:

1. Follow the AGES Model. The NeuroLeadership Institute argues that we learn quickly and retain information best when we focus on one topic (attention), actively connect what we learn to what we already know (generation), experience positive feelings while learning (emotion), and space our intake of information (spacing). For example, cramming training on multiples topics into a tight two-day workshop would be much less effective than spreading that training out over a few weeks. You can learn more about the AGES Model here.

2. Give employees time to reflect and practice the skills they’ve learned. In some professions, like music and athletics, you spend most of your work time learning, building, and reinforcing skills before the big performance, whether it’s a concert, game, or race. Good performance necessitates constant practice. But in most professions, practice seems like a luxury you can’t afford because you’re expected to be performing during your work time. This is one reason trainings fail to deliver results. To master new skills, employees need time to focus on building those skills. That means some work time needs to be set aside post-training for them to reflect on and practice what they’ve learned.

3. Align trainings with the present needs and future goals of both the company and the employee. When assessing employee training goals, consider what additional knowledge and skills would enable them to do their jobs better now, but also set them up for success in their future careers. Employees are more likely to be excited by and personally invested in their training if they understand their personal return on that investment. If they don’t recognize its value, it won’t have any value to them.

The HR Advisor is a monthly newsletter from MyPayrollSite.com. Find out more information by calling (850) 322-6437 or visiting online at www.mypayrollsite.com.

HR AdvisorMonthly best tips, trends and HR practices for small business

FIADA TRAINING OPPORTUNITIESFIADA has an ever-growing library of online training courses and webinars as well as in-person courses and events specific for independent dealers. Most are available for free to members (including their staff). Log on to www.FIADA.com/Training to view the current course catalog and explore the many options available. While you are there, check out the Resource Library and make sure you are up-to-date with regulatory and compliance requirements.


EVOLUTIONOF THEDMSHow to choose the right system that will work best for your dealership.

BY JESSE MARTIN

What is the new norm as we all navigate to the

post-pandemic world? One thing is for certain, car shoppers will continue to shop online and prefer to spend little to no time in the actual dealership to finalize the sale. So how is your dealership equipped to meet this new norm of doing deals virtually?

As our industry evolves, so should your dealer management system (DMS). Your DMS should do much more than just print your contracts and bill of sales. It should serve as your command center, connecting all of the critical systems you need to run your dealership. To simplify this concept, let’s break it down into functional categories:

inventory acquisition and management, marketing, customers, deals, reporting and analytics, and mobile phone accessibility.

INVENTORY ACQUISITION AND MANAGEMENTFirst things first, you have to acquire inventory, or you don’t have anything to sell. DMS’s today have the capability to consolidate multi-auction access into a single platform to browse, sort and select vehicles that align with your business model. Further evaluate those vehicles with market pricing tools such as JD Power, KBB, Black Book, MMR or MAX Digital to decipher the good buys from the bad. Your DMS should provide vehicle history reports with AutoCheck and/or Carfax which run automatically

on all vehicles for due diligence. And once you pull the trigger to acquire a vehicle, your DMS should have the ability to manage the reconditioning process to start marketing your inventory.

MARKETINGMarketing inventory involves multiple functions that your DMS should make easy for you. A website specifically designed for car dealers is absolutely necessary for your online presence.

Your website should list your inventory and be searchable by year, make, model, color and more. From here you should showcase your inventory by uploading and editing photos, videos, and 360 view images. Your DMS and website should automate exporting inventory to the various listing sites you use such as OfferUp, CarGurus, Craigslist, Autotrader, etc. Make sure that all the leads from these listing sites funnel back into


your DMS for to track and calculate return on investment from your marketing spend. This is critical, so you spend your marketing dollars wisely to maximize your income.

CUSTOMER MANAGEMENTManaging your customers should also converge within your DMS. After all, that is where the deal will happen. But to earn the deal, you’ll have to convert that internet lead into a qualified car buyer. Your DMS should combine the functionality

of a customer relationship management (CRM) tool into the platform so you can easily communicate with prospects, send electronic credit applications, run credit, and qualify for financing options. Text, email, and chat are all essential forms of communication to keep prospects engaged and turn car shoppers into car buyers! The DMS should offer compliance automation with system-generated adverse action notices to give you peace of mind.

MAKING THE DEALTime to make a deal! You should not have to leave your DMS to submit deals to your lenders, receive approvals, automatically calculate taxes and fees, or print any form or contract you need to complete the deal. Accessing Dealertrack and/or RouteOne should all be done from within your DMS. The days of toggling between multiple systems is over. And now, the ability to eContract deals as an added service offered by industry leading DMS providers. Franchises have been doing it for quite some time, but there are now affordable options for independent dealers to utilize this same capability to get deals done electronically quickly and easily.

ANALYTICSAs an Owner or General Manager, it is critical to have access to business data so you can make intelligent financial decisions. Your DMS should be designed to tell you what you need to know, when you need to know it. The ability to email automated reports on a regular cadence to show you sales activity daily, weekly, or monthly is essential to see the overall health of your dealership. Aging reports, customer demographics, sales pipeline activity, or tax reports should all be standard reports you have access to. Again, reviewing your marketing spend and showing sales in relation to lead source quickly tells you

if your marketing spend is generating the return you need.

MOBILITYLastly, your DMS should offer you a mobile solution that keeps you connected on the go. Everything you need to access to effectively manage your dealership should be accessible on your smartphone. VIN scan, driver’s license scan, lead management, and reviewing deals should be key features in your DMS mobile app. Technology is removing so many constraints from the way we manage our day-to-day business operations which make it faster and easier than ever before to drive your business.

It’s always a good practice to regularly evaluate your business operations, this includes your DMS. Technology is advancing, the industry is evolving and your DMS should be changing with the times to keep you in control. Is your DMS meeting your needs and helping you be more efficient and sell more cars? If not, consider looking at alternative solutions on sites such as Capterra, G2 or Google. Read reviews, get free trials and find the right DMS to help you grow.

Jesse Martin is the Sr. Vice President of Sales and Marketing of DealerCenter, an all-in-one, cloud based dealer management solution that gives the independent dealer full control over their sales, inventory & customer management, financing , and more!


During the most recent Super Bowl(won by Tampa Bay:), companies paid $5.6 million for a 30-second television commercial spot.

The first television commercial appeared on screens across the United States on July 1, 1941. Bulova, a watch company, aired their 10-second commercial at a cost of $9 prior to a Brooklyn Dodgers and Philadelphia Phillies baseball game.

Video was exclusive to television in 1941 but obviously it is not any longer. The delivery of video has grown because of the internet and sites like YouTube.

Here are some interesting stats about YouTube:• Almost 5 billion video views per day1 • The 2nd most visited site in the world1 • 37% of all mobile internet traffic belongs to

YouTube2

• 77% of 26 to 35-year-olds from the U.S. use YouTube3

• 51% of people over 75 watch videos on YouTube3

• 51% of users say they visit the site daily4

• 37% of Millennials aged 18 – 34 binge-watch YouTube daily5

• YouTube’s revenue came to $15.1 billion for the full year 2019, up 36% from 20186

A lot has changed since July 1, 1941. What has not changed—video is powerful.

Some advertisers have cut back on television ads because of other available delivery systems, not because video stopped working. Less expensive and more targeted distribution has allowed additional genres and lower advertising budgets to use video.

Comparison: Television and YouTubeFor the sake of these comparisons we are focused on traditional television, not connected television which is still fairly new. This list is not exhaustive; it is more of a "Ken’s Notes" version.

TargetingTelevision-Target-based on a guess of the type of person who may watch a specific show type.

YouTube-Target demographics, sociographics, and behavior. Most people will get the first two, but behavior? YouTube ads used to be primarily keyword driven. Someone would use YouTube like Google but looking for videos. In the search box they would type “how to replace a water heater.” Nobody was going to YouTube to search for “car dealerships near me.” YouTube (owned by Google) has implemented their artificial intelligence and machine learning. They have also done a good job of connecting mobile devices, Google, and YouTube. This means someone searching at 9am on Google for “car dealerships near me” then watching a YouTube video of “how to fix my golf swing” at noon, may see your dealership advertisement as a commercial because they searched for “car dealerships near me” earlier.

Actual ViewershipTelevision-People often have a television running in the background. They may be cleaning house and

MARKETING ADVICE

Online Video Vs. Television Video is vital; the question is how to deliver it | BY KENNY ATCHESON

KENNY ATCHESONDEALER PROFIT PROS

1 (https://fortunelords.com/youtube-stats)

2 (https://www.statista.com/chart/17321/global-downstream-mobile-traffic-by-app)

3 (https://www.omnicoreagency.com/youtube-statistcs)

4 (https://www.pewresearch.org/fact-tank/2019/04/10/share-of-u-s-adults-using-social-media-including-facebook-is-mostly-unchanged-since-2018/)

5 (https://www.comscore.com/fre/Perspectives/Blog/What-Millennials-YouTube-Usage-Tells-Us-about-the-Future-of-Video-Viewership)

6 (https://www.businessinsider.com/youtube-ad-revenue-15-billion-2019-google-breakout-2020-2)


PAID

ADV

ERTI

SING

not paying that much attention.

YouTube-Viewers specifically go to YouTube to watch videos. If they do not have interest in your video right away, they click off and you do NOT pay.

InvestmentTelevision-Usually a minimum spend. Pay for impressions whether or not anyone watching has any interest in buying a vehicle anytime soon. Production costs may be very high.

YouTube-It could be pennies per view. We’ve created well thought out video advertisements which included actors, graphics, imagery, audio, and a call to action for much less than the average television commercial.

MessagingTelevision-Although it does not have to be, producers of television ads tend to make them impersonal and very commercial-feeling.

YouTube-Ads can be more personal, engaging, and compelling.

Free AdvertisingTelevision-Zero free advertising. Nobody is recording your television commercial and watching it again or forwarding it.

YouTube-Videos can be used for paid advertising but you may also organically earn thousands of views of your video. Because your video is online, it can be shared via social media, email, and text. If your video is interesting it can be saved and watched later by the same person.

RecommendationThink strongly about different ways to create and distribute videos. Television is not the only distribution channel anymore. Work with someone who will develop a unique style that works for you, and watch sales soar.

Kenny Atcheson is the founder and president of Dealer Profit Pros, which offers several marketing and advertising programs, customer service and sales training: www.DealerProfitPros.com

Whether its old-fashioned network or cable programming, or online streaming like YouTube, the bottom line is video is vital.


LEGAL & LEGISLATIVE

Consumer Complaints on the RiseTaking a look at CFPB's Annual Complaint Report | BY ERIC JOHNSON

As required by the Dodd-Frank Act, theConsumer Financial Protection Bureau recently provided to Congress its Consumer Response Annual Report for 2020. The report's introduction notes that, in 2020, the CFPB received more than half a million consumer complaints. This number represents a nearly 54% increase over the number of consumer complaints the CFPB received in 2019. As you might expect, the global pandemic, state and local stay-at-home orders, and businesses closing drove up consumer complaints in 2020. These complaints play an integral and central role in informing the CFPB's policy and enforcement priorities.

The report includes analyses of complaints across multiple consumer financial products and services. Credit/consumer reporting, debt collection, credit card, checking or savings accounts, and mortgage were the most complained about consumer financial product and service categories, comprising approximately 92% of all complaints the CFPB received in 2020. A vehicle "loan" or lease product accounted for only 2% of the complaint volume. By vehicle "loan," I assume the CFPB includes a retail installment contract.

The CFPB sent approximately 456,100 complaints to approximately 3,300 companies for review and response in 2020. Companies provided timely responses to 99% of the complaints received. However, approximately 4,600 complaints did not receive a timely response from companies. Timely responses are those provided within 15 calendar days of receipt and, if applicable, when a company provides a final response, within 60 calendar days.

According to the CFPB report:• credit and consumer reporting complaints accounted for

more than 58% of complaints received, followed by debt collection (15%), credit card (7%), checking or savings (6%), and mortgage (5%);

• beginning in April 2020, consumers began to submit more than 3,000 complaints mentioning coronavirus keywords nearly every month, and consumers submitted approximately 32,100 complaints mentioning coronavirus or related keywords in 2020;

• consumers from the great state of Florida submitted more complaints per capita than consumers from any other state (309 complaints submitted per 100,000 in population); and

• the CFPB received 40,800 complaints from self-identified servicemembers, veterans, and military families.

The report also highlights multi-year complaint trends that pre-date the pandemic, as well as how companies responded to complaints. The report claims that:• the CFPB received more complaints from consumers

about inaccurate information on their credit and consumer reports in 2020 than in 2019, and incorrect information on credit reports was the most common credit and consumer report issue for 2020;

• consumers primarily submitted these complaints about the three largest nationwide credit reporting agencies (CRAs): Equifax, Experian, and TransUnion;

• while the CRAs typically provided substantive and comparatively detailed responses to the majority of complaints in prior years—including details of dispute investigations and steps taken for consumers who are attempting to address identity theft—this year, the CFPB claimed that the CRAs stopped providing complete and accurate responses to many of these complaints;

• the CRAs provided closure responses noting that a dispute would be filed on the consumer's behalf, but they allegedly did not address the issues consumers raised in their complaints; and

• the CRAs mentioned suspected third-party activity in their responses to consumers, but they allegedly did not detail steps taken to authenticate consumers or to address the issues raised in their complaints.

Of the vehicle "loans" or lease complaints, the CFPB reported that companies responded to approximately 98% of the complaints sent to them for review and response. The companies closed 86% of complaints with an explanation, 8% with non-monetary relief, and just 3% with monetary relief. Reportedly, companies did not provide a timely response for 2% of complaints.

In 95% of the submitted vehicle "loans" or lease complaints, consumers reported that they first attempted to resolve their issue with the company before filing a complaint with the CFPB. If that percentage is accurate, that's a real opportunity for businesses to resolve the complaint with a consumer before he or she complains to the CFPB.

For vehicle "loans" or lease complaints, the options consumers


It’s time to changeyour approach to F&I compliance

WITH THIS SPECIAL OFFER...

Subscribe to Spot Delivery and, at no additional charge, we will send you a copy of your choice of any of our legal compliance books, CARLAW, CARLAW IIStreet Legal or CARLAW III Reloaded.

To order, visit us atwww.counselorlibrary.com/offer/spot

or call us at 877-464-8326.Also follow us on:

It’s time to changeyour approach to F&I compliance

WITH THIS SPECIAL OFFER...

Subscribe to Spot Delivery and, at no additional charge, we will send you a copy of your choice of any of our legal compliance books, CARLAW, CARLAW IIStreet Legal or CARLAW III Reloaded.

To order, visit us atwww.counselorlibrary.com/offer/spot

or call us at 877-464-8326.Also follow us on:

PAID ADVERTISING

had to describe the problem they experienced included: getting a loan or lease; managing the loan or lease; problems at the end of the loan or lease; problems with credit report or credit score; and struggling to make payments. The most common issue was managing the loan or lease (33% of complaints).

In these complaints, consumers often reported issues involving billing problems associated with their vehicle "loan." Consumers complained about automatic payments, problems incurred while navigating creditor websites and payment portals, and changes in payment due dates. Some consumers also reported that the creditor was trying to repossess or disable their vehicles.

Companies responded by providing an account history and details of dates and times a customer service representative communicated with a consumer concerning a billing dispute and details of online account usage.

The CFPB also indicated that it continues to analyze complaint data to understand and detail "disparities observed in complaints submitted by consumers from Black, Brown, and Indigenous communities and will publish these analyses to inform the marketplace." However, the report doesn't make clear how the CFPB will be able to flag and log consumer complaints from those communities.

The CFPB plans to issue a separate report later this year regarding complaints submitted about the CRAs that are related to incomplete or inaccurate information on consumers' credit reports in keeping with its reporting requirements under the Fair Credit Reporting Act.

Finally, David Uejio wraps up his "Message from the Acting Director" with the following statement: "Going forward, the Bureau will work to amplify consumer voices so that they are

heard at every level of this organization. From rulemaking to COVID education to increasing racial equities to punishing bad actors, the Bureau will seek out, listen to, and integrate consumer voices via complaints into

Bureau priorities."

These consumer complaints are a window into the soul of the CFPB and its priorities. Pay attention to them, and govern yourself accordingly.

Eric L. Johnson is a partner in the Oklahoma office of Hudson Cook, LLP. He can be reached at 405.602.3812 or by email at [email protected].


INDUSTRY NEWS News and headlines of interest to the Florida Used Car Industry and beyond

ADESA Empowers Buyers with "% to Retail" Feature

Manheim Central Florida Unveils New Retail Recon Facility Manheim Central Florida has converted a building once used to host night sales into an 8,500-square-foot mechanic facility dedicated to retail reconditioning. With this service, Manheim delivers frontline ready vehicles, enabling clients to devote more time to customer pay work and focus on their other retail operations. The transformation began in late 2018 when Manheim Orlando was at its capacity for retail reconditioning and looked to nearby Manheim Central Florida for help. That location had unused space in a multipurpose building that hosted regular night sales and outfitted it with 10 mechanic lifts to create a dedicated space for retail reconditioning. The move created capacity for both locations and allowed Manheim Central Florida clients to save the cost of having to transport their units to Manheim Orlando for reconditioning.

“This is an excellent example of how Manheim’s Market Centers structure delivers greater opportunities and efficiencies for clients when nearby auctions work cooperatively to share support functions,” said Catherine Woodall, an assistant vice president for the Orlando Market Center, which includes Manheim Orlando and Manheim Central Florida. Source: Used Car News

ADESA has launched its proprietary "% to Retail" functionality with all 24/7 bid/buy vehicle listings on ADESA's digital marketplace now showcasing the current bid of the vehicle compared to the estimated national used retail market price. The new feature is aimed at helping dealers quickly analyze vehicle pricing and make better informed decisions on the best inventory for their lot. "Our customers are experiencing unusual market dynamics across North America, so having instant access to real-time intelligence on vehicle valuation has never been more helpful and important," said John Hammer, chief commercial officer of KAR Global and president of ADESA. "With the '% to Retail' feature, we're making it easier and faster for dealers to identify vehicles priced right for their wholesale-to-retail strategy. Our digital marketplaces are expanding the pool of fresh inventory accessible to buyers, and '% to Retail' will help them make better, faster and smarter bidding and buying decisions." The "% to Retail" functionality uses KAR's proprietary data science capabilities to evaluate data from across ADESA and KAR's other digital marketplaces along with the latest industry, market and economic data to accurately

estimate potential vehicle profitability. Buyers can filter their searches on ADESA by "% to Retail" range to focus their bidding and buying on vehicles within a particular range—and each listing will tell the dealer the estimated margin between the wholesale price/bid and the estimated retail sale. Vehicles with a lower percentage to retail present the greatest opportunity for retail profit while those with higher percentages are closer to the estimated retail market price. ADESA's industry-leading search capabilities allow buyers to sort and/or filter vehicles by additional specifications like proximity, make and model, and condition to showcase all vehicles that are available. "Dealers who piloted the '% to Retail' functionality consistently found it easy to use and beneficial for finding the best, most competitively priced vehicles," said Rick Griskie, president of digital marketplaces at KAR Global. "This new feature allows our dealers to find the exact inventory that supports their overall retail strategy, and we've already seen early success with our dealers using the tool showing a 20% higher success rate in finding vehicles to purchase compared to those who did not use the tool."


JOHN GIASULLO, REGIONAL VICE PRESIDENTClassic Cars of Palm Beach, Jupiter, FL(561) 529-3101

JASON MARCH, PRESIDENTMarch Motors, Inc., Jacksonville, FL(904) 805-0105

2021 FIADA EXECUTIVE COMMITTEE:

CHRISTOPHER ELLIS, SR VICE PRESIDENTP.C. Motors, LLC, Plant City, FL(813) 708-1300

JIM WINTERICK, SR., CHAIRMAN OF THE BOARDGulfstream Motor Credit, Miami, FL(305) 253-2335

DEXTER BEARD, SECRETARYCredit Cars, Orlando, FL(407) 295-6211

LUIS GIRALDO, TREASURERVeneauto Cars, Gainesville, FL(352) 870-2278

EJOLA COOK, REGIONAL VICE PRESIDENTOff Lease Only, West Palm Beach, FL(561) 222-2277

BRAD JOEL, REGIONAL VICE PRESIDENTSplish Splash Auto Sales, Princeton, FL(305) 258-1191


SAVEMONEYON DEALER SUPPLIES:

FORMSSALES SUPPLIESLOT DECORATIONSSERVICE SUPPLIES

JANITORIAL& SO MUCH MORE

One stop shopping, 20% o retail, 24/7 only at FIADA.com/SHOP

A Dealer Management System is more than software

Documents