UCC Newsletter 22-1

I n s i d e N e w s a n d I n f o r m a t i o n f o r D e a l e r s a n d A g e n t s

www.UnitedCarCare.comwww.fandiseminar.com

Spring 2010 Volume 22

For the last three years, United Car Care has offered free webcast training to those interested in maximizing customer satisfaction, dealership compliance and penetration levels. These free 10-minute webcasts are an introduction to F&I and Sales training and cover the basics with topics ranging from “How to Conduct an Effective Interview” to “Techniques on Closing the Sale” and everything in between.

United Car Care is currently in the middle of switching all webcast training directly to one of the country’s biggest social networking sites – Facebook.

The free training webcasts via Facebook will be exclusively offered to those who friend request John Vecchioni, UCC’s F&I Development Leader, through their own personal site.

(One must have a Facebook account in order to add Vecchioni as a friend. If one already has an account, visit

http://www.facebook.com/fnicoach.)

“Through John’s personal page, people can view any of the free webcast archives we have done,” says Christian Bakken, UCC’s Marketing and Graphics Communication Specialist.

On Vecchioni’s page, he will answer questions and will give personal tips on the industry from his roundtable

of F&I professionals. People who ask him specific questions will get weekly responses, depending on his training schedule, Bakken added.

The innovation of the free webcasts gradually laid the groundwork for a more comprehensive F&I and Sales training subscription, which consists of 24 one-hour-long live webinars twice a month. The webinar subscription package is just $225 for one year and is much more in depth than the free webcasts, designed for those who want to really step up their game.

Vecchioni is currently offering a special event F&I Sales Webinar on April 6th and 7th titled, “How to Become an Expert in F&I with These 5 Techniques.” The webinar will last an hour and is free to those who sign up. In the webinar, Vecchioni will discuss how practicing certain techniques leads to more satisfied customers, higher vehicle penetration and increased income.

To sign up for this free webinar go to the following links and choose a day:

Tue, Apr 6, 2010 11:00 AM - 12:00 PM MDThttps://www2.gotomeeting.com/register/417850106

Wed, Apr 7, 2010 1:00 PM - 2:00 PM MDThttps://www2.gotomeeting.com/register/949445275 Once registered, you will receive an e-mail confirmation with the information needed to join the webinar.

Social Networking - F & I Coach and United Car Care, Inc.

Established 1984

STAFF:Art Director: Christian Bakken

Editor: Pam Franks

Creative Writer:Cam Mathews

Proofreader:Erin Ware

Look for a digital copy of our Newsletter at:www.UnitedCarCare.com

Inside This Issue:

We Will Survive

Funfacts:Airbags

Sell Like You Mean It

Under The Hood

and more.

- 1 -

We Will Survive – From the PresidentEstablished 1984

Dear Valued Agents & Dealers,

Having been in the automobile business for 35 years, I have seen many of the highs and lows. In 1980, the prime interest rate was 21 percent, causing dealer floor plan expenses to soar.

Lee Iacocca, then Chrysler’s public spokesperson, pled for financial support from the government in an effort to survive. In 1990, we survived an 8-month recession, the Savings & Loan collapse and the oil price shock. In 2001, the dot.com bubble burst, and we were faced with the 9/11 terrorist attacks, which crippled our economy for almost three quarters. I remember many conversations that began, “If we can just get through this…we’ll look back and remember how we managed to get by.”

Well, guess what? It got tough again in the fourth quarter of 2008, and 2009 was a year “as tough as we’ve ever seen it.” Déjà vu?

Substandard credit risks no longer get funded. Auto sales have plummeted. Home foreclosures have grown. New construction has come to a near standstill, and unemployment has soared to almost 10 percent nationwide. The list goes on and on.

Once again, we have seen the automobile industry fight to survive: leaner inventories, broadened credit affiliates, reduction in personnel, closely watched expenses and trimmed excesses.

Today, we see dealers and vendors returning to profitability, slowly but surely. Many have said they wish they had taken a harder look at expenses before this debacle. This is good news. We have held on. We are continuing to hold our heads above water.

Will business return to the “good ole days?” Perhaps not, but we are confident that the future holds the return of gradual and steady profit margins.

We will survive.

Phot

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hris

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Bak

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- 2-

An airbag moves up to 4500 mph within a single second when it is triggered, generating a force of about 200g! Designed to explode at an impact speed of 19 mph, the bag itself inflates within just 40 milliseconds of an automobile crash. It was in the 1980’s when the first commercial airbags appeared in automobiles. All new cars sold in the United States have been required to have airbags on both driver and passenger sides since 1998.1

Essentially, a sensor in the airbag is what allows it to inflate during the event of a crash. Inflation happens when

there is a collision force equal to that of running into a brick wall at 10 to 15 mph. The airbag system ignites a solid propellant, which burns very quickly to create a large amount of gas to inflate the bag. The bag then bursts from its storage site at up to 200 mph, faster than the blink of an eye. After that, the gas dissipates through tiny holes in the bag, thus allowing the driver or passenger to move.2

1. www.2SportsCars.com 2. www.auto.howstuffworks.com

Upcoming Dates

April

6th FREE Webinar - 2010 11 AM - 12 PM MDT How to become an Expert in F&I with these 5 Techniques.

7thFREE Webinar - 2010 1 PM - 2 PM MDT How to become an Expert in F&I with these 5 Techniques.

9thWebcast - Close the sale using the start.Webinar - Close the sale using the start. Increase sales and profit.

23rdWebcast - Improve production per salesperson.

Webinar - Improve your and everyone’s production with good follow up.

May

7thWebcast - Who’s accountable for success? Webinar - Who’s accountable for success? Setting individual and team goals.

21st Webcast - Upsell your value with the customer.Webinar - Upsell your value with the customer. Who knows product and lenders?

June

11th Webcast - Objection Handling. Webinar - Objection Handling. Reasons customers object.

25thWebcast - Get real 4 square doesn’t work! Webinar - Get real 4 square doesn’t work! Everyone should know how to close.

July

5thWebcast - Become an Expert in F&IWebinar - How to become an Expert in F&I with these 5 Techniques

UCC Web-Training: United Car Care is pleased to announce Webinar, Podcast and Webcast training that is set up to specifically meet and address the needs of each individual store.

$225 per year, per rooftop www.fandiseminar.com1-800-571-6412or check us out on facebookwww.facebook.com/fnicoach

Fun Facts: AirbagsEstablished 1984

- 3 -

TIME Magazine Dealer of the Year Award Finalist

Established 1984

Dan Wilder, president of Wilder Auto Group in Washington, was recently named as one of the National Automotive Dealers Association’s (NADA) three finalists to receive TIME Magazine’s Dealer of the Year award.

Wilder, longtime dealer with United Car Care, accepted his award with the other finalists during February’s NADA annual convention in Orlando, Florida.

The Washington State Auto Dealers Association reported that 45 auto dealers from a group of about 17,000 dealerships across the country were nominated for the industry’s most prestigious award, which recognizes new car and truck dealers for “exceptional performance in their dealerships and distinguished community service.”

“Dan has been with us (UCC) for over 10 years and is one of the most respected dealers in his state,” said UCC President Dave Mathews. “He’s been around a long time. He’s very respectful and has been one heck of a client for us over the years.”

Two other UCC dealers also found themselves in the top 45 selected by the NADA. Jeff Longbine with Longbine Auto Plaza in Emporia, Kansas and Phil Schmidt with Greiner Ford in Casper, Wyoming, were both nominated to receive this

year’s award. Mathews said Longbine has been a great dealer for UCC over the years and is well respected by those who know him.

“Jeff has been highly involved with KADA, as he was its president last year,” he said. “He is a really nice man.”

Having been in Casper the last decade, Mathews said Smith has seen many ups and downs in the automotive industry.

“For him to receive this nomination, I think, is a nice way of saying thanks for all his hard work.”

NADA has many specifics they look for when considering potential candidates for the TIME Magazine Dealer of the Year award, including:

• Be a franchised new-car dealer• Be a member of the NADA• Be a member of a state dealer association and local association• Be the operating head of a dealership as designated in the factory agreement• Have presence in the dealership’s offices, during at least 60 percent of business hours, actively managing the dealership• Have at least a five-year record of active participation in affairs of the nominee’s state or local dealer association

In addition to all of the NADA requirements, current NADA directors are not eligible for this year’s award. The president of the nominee’s association must also be out of office for three years before they can be nominated. Past nominees can be re-nominated only four years from the last date of nomination.

To see all of the specific nominee requirements set by the National Automobile Dealers Association, visit its Web site at h t tps : / / t imedea le rof theyear.com/ info_nomineerequirements.html.

Courtsey of Sequim Gazette

- 4 -

Selling Like You Mean It!

The first question a “professional sales person” should ask is, “Why would anyone want what I’m selling?” Think about it! Why would you buy the product you’re selling? Do you currently own the product you sell? I’m not suggesting you immediately purchase the products you’re offering, but do you see yourself owning your product? The easiest way to sell something is through conviction. If I see value in a product, it’s so much easier to argue in favor of someone else owning it. But understanding how your product works is only the beginning of selling effectively. It’s also important to understand the customer’s need and to display how the product facilitates that need.

Service Contracts fulfill needs of circumstance. They have features that consumers take advantage of to preserve savings or prevent unwarranted debt. Yet only 3.5 out of every 10 customers add it to their transaction. If this product has value and can fill customers’ needs, then why are 65% declining protection? Perhaps a portion decline because they don’t know what they’re declining.

That’s where the expert advice of the Finance/Business Manager comes into play. What defines him/her as an expert? Understanding lending criteria and how your customer fits into a suitable scenario is certainly one mark of a finance expert. What else? The ability to communicate the value of product as it relates to each customer. Taking the time to ask the right questions and explain; “Tell. Don’t sell.” Until you discover the reason why a customer would benefit from your product, it’s just your story. Make it their story.

A vehicle service contract facilitates so many needs for customers. Can you name 5, 10, 15? More? It has to be personal, and only your customers can provide their need, so don’t be in a hurry to get them in and out of your office. That is exactly what they are accustomed to. “Pitching” features and naming benefits without any personal impact statements comes across “canned” and impersonal. So, take the necessary time to discover their need and why they would benefit from what you’re offering. Recommending vehicle service contracts to your customer is expert advice. Encouraging them to add it to their transaction is constructive consulting. Do you think anyone actually reads the warranty book or owner’s manual? Aside from setting the clock twice a year, very few even open it. The manufacturer’s warranty book specifically tells car buyers why they should consider a vehicle service contract.

Every automobile manufacturer warrants their product. They define exactly what is covered, but also what isn’t. Take for example the “bumper to bumper warranty” that doesn’t cover bumpers, by the way. It states that they warrant the mechanics against workmanship or defects. Which means that it’s possible for the factory to install a bad part or to improperly install a good part. Given the 3 year or 36,000 mile time lines, the engineers have determined that if there is a problem, it will be more likely to occur in that time frame; it’s possible. Anything beyond the time and mile line is determined to be probable. Which means it will probably break! Find out exactly how they describe the other products you offer. New or used, it doesn’t matter, the same principle applies-possible as opposed to probable! There are three ways consumers pay for auto repairs. They put it on a credit card (at a higher interest rate amortized over a longer period of time), they pay with cash or a check from a bank account that was never intended for an auto repair (children’s education, vacation fund or rainy day savings) or they borrow money from a family member, bank or credit union. Just

ask your customers how they would pay for an expensive auto repair. Bring the point home and make it about them.

How would your customer see value in any product you’re offering? What makes it special and how could those features impact his/her life? Those are the answers you have to find out when conducting your customer needs analysis or interview. Do not shortcut this step. If you do, your job becomes much harder. How can you offer somebody something you deem valuable without using them as the example? Keep that in mind.

Spend 80% of your effort in the interview. It’s the ingredient to a great recipe. If you spend the right amount of time asking the right questions, you will sell something to every customer. Cash purchasers, bold personalities, fleet sales-it doesn’t make a difference. Anyone and everyone can benefit from something you offer. They just don’t know it yet. That’s where you come in. You, after all, are the expert. So, don’t be ordinary, because that’s exactly what customers expect. Instead, impress them. Be extraordinary.

~ Written by John Vecchioni, Director of Sales & Marketing

Established 1984

Dave Mathews escorted his only daughter Erin down the aisle this past December. Erin, 25 years old, married Asa Ware from northeastern Colorado at a downtown Denver church where friends and family members gathered for the occasion. Though everyone was worried about “sobbing uncontrollably,” the day went off without a hitch (or a breakdown). After the holidays, Erin returned to the Claims Payments Department at United Car Care where she works with her older brother Cameron. Congrats go out to the Mathews family!

James Lundberg– Claims Adjuster

Below are the newest additions to the UCC Family - Welcome Aboard!

New faces at UCC

As United Car Care’s newest Dealer Development Representative, Mike Mathews said his responsibilities include calling dealerships to help implement various products and training, which will help them become both more professional and profitable down the road.

“I hope to bring in a lot more business and add to the success of an already impressive company,” Mathews said. “This (UCC) is the most positive place I have ever worked and the people here are great.”

Mathews, who was hired in January, started his career in the automotive business in 1983 as a finance manager at various dealerships, both import and domestic. After about four years, he left to work for his father full time, who was a retired new car dealer for many decades.

“We mostly operated as wholesale car dealers, buying and selling cars from dealer to dealer, for about six years,” he said.

From there, Mathews opened up his own retail operation, which, over time, became less and less viable due to the changing economic climate. He then returned to work as a sales manager in early 2008.

“I soon became an internet manager and prospered along the way, breaking many sales records in a highly competitive market,” Mathews said. “I recently joined United Car Care to share my experience and knowledge with the many prospects and highly established dealer network.”

When he isn’t a focused, driven and motivated UCC Dealer Development Representative, Mathews enjoys spending his free time with family and playing a round of golf when he can.

Mike Mathews – Dealership Development

James Lundberg, one of United Car Care’s newest claims adjusters, feels his job here involving customer vehicles makes a difference in their daily lives.

“I love to listen to the problems that people have and to take care of their problems,” he said. “Being able to do something relatively simple, as well as being precise and technical in my daily work, gives me a deep satisfaction that isn’t possible at most jobs.”

Lundberg, who joined the claims department in January, has an extensive background in the food service industry. He worked long hours and holidays for many years prior to going into the automotive business. Over time, he wanted a job that had normal working hours during the week and so found a position as a service advisor for a dealership in Southern Colorado.

“I used my restaurant experience to manage my workload,” Lundberg said. “High-paced, multi-faceted, customer service-based work is what I like. I like it not only because it makes the day go by more quickly, but also because I’m able to use my brain to organize and execute all that goes on from when I get to work until the time I leave work.”

Lundberg formed a relationship with UCC and its adjusters before making the move to Denver, where the company is based. This relationship gave him the desire to be a part of the UCC team himself. When asked to define himself, Lundberg feels he is diligent, capable, teachable, reliable and very understanding.

“I will continue as a claims adjuster to learn on a daily basis,” he said. “I want to do my job well so that everyone else can do their jobs. From what I see here, this is a perfect situation for me—to work for UCC for many years to come.”

Outside normal business hours, Lundberg enjoys fishing, snowboarding, kayaking, hiking, camping, road trips and watching basketball, football and baseball.

- 5 -

Asa & Erin WareEstablished 1984

- 6 -

“The Perfect Sales To F & I Hand-Off” with Ian FeeEstablished 1984

Ian Fee, a United Car Care agent in Seattle, Washington, recently gave a hands-on presentation for UCC dealers and professionals on the importance of not only knowing, but also seeing what’s under the hood of your vehicle.

“When is the last time you looked under the hood of your vehicle? In the past five years?” Fee asked. “I haven’t.”

Start in the dealership’s showroom, Fee explained. Leaving the hood open on a vehicle makes it more visual. Seeing what is inside the vehicle better preps the salesperson on what information the customer may need to know about warranty coverage. “I like it when the hood is open on vehicles in

the showroom,” he said. “You look inside on the way to the finance office. Touch it quick.”

The key is making sure the dealership’s Finance & Insurance representative trains the salesperson on what to look for regarding what a warranty would or wouldn’t cover. This sets up the F&I person later on, after the potential sale is completed.

For instance, Fee said, the salesperson should walk a customer by a vehicle, new or used, and simply say, “This (car) has a 4 year/50 limited bumper-to-bumper warranty on it. Open the door. One thing the factory hasn’t figured out yet is how to cover interiors. There’s no warranty

on the interior of the car.”Fee continues, “The exterior paint, it’s only covered for manufacturer defects. No dings, chips, scratches.”

Relaying this information as customers walk by, looking inside and under the hood of a vehicle, gets the customer to think about it without really thinking about it.

“Just touch it as you’re walking by,” Fee said. “They (the customers) see it. Don’t sell it; just mention it as you’re walking them to the finance office.”

United Car Care, Inc.P.O. Box 3988 Greenwood Village, CO 80155-3988 www.unitedcarcare.com

Established 1984

Bumper 2 Bumper

What just

happened?

Established 1984

Don't be left with a bunch

of hot air!

Don't be A WEAK RICHARD.

www.fandiseminar.comGet your training and more.

www.unitedcarcare.com

Bumper 2 bumper©

Buy a Car, get a free balloon

We’ll,

take it.

$?!

This is done! Even Richard

couldn’t blow this deal

and they’re a “lay down”

for a service contract.I Don’t know, I wanted to

BUY, but all I ended up with

is this lousy balloon?!?

Established 1984