Tag Archive | "dealers"

NFADA’s MacKay to Deliver Compliance Summit Welcome Address


LAS VEGAS — Andy MacKay, executive director of the Nevada Franchised Auto Dealers Association (NFADA), will deliver the welcome address at the upcoming Compliance Summit, organizers announced Monday. The event will be held Aug. 29–30, 2016, at Paris Las Vegas as part of the annual Industry Summit.

MacKay’s address, “The Dealer’s Voice: Trade Associations on the Front Lines,” will begin at 9:05 a.m. on Monday, Aug. 29, following a sponsored breakfast and preceding the opening keynote address, which will feature The Warranty Group’s Aaron Lunt. MacKay is expected to offer an insider’s perspective on campaigns led by NFADA and other dealer trade associations against regulatory and factory overreach.

“We simply could not have asked for a better speaker to kick off the first Compliance Summit designed for dealers in the Western states,” said David Gesualdo, show chair and publisher of Auto Dealer Today and F&I and Showroom. “Considering the work he and his organization have done on behalf of franchised dealers throughout the state of Nevada in what has been, at times, a hostile regulatory climate, we can’t wait to hear what he has to say.”

The Compliance Summit agenda also will include educational sessions devoted to Rules and Regulations, Your Responsibilities and Easy-to-Implement Processes and Controls. Registered attendees are invited to RSVP to attend the review session and sit for the Certified Automotive Compliance Specialist exam, offered for no additional charge by Automotive Compliance Education (ACE).

To register for Compliance Summit, click here.

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J.D. Power: Speed No Longer Top Consideration When Selecting Finance Sources


DETROIT — When it comes to choosing lender partners, dealers value the type of relationship they have with their finance sources over the speed of their services, according to J.D. Power’s 2016 U.S. Dealer Financing Satisfaction Study.

Jim Houston, senior director of the automotive finance practice at J.D. Power, said finance sources need to shift from a transactional relationship with their dealers to a more consultative one.

“Speed has been king and the area lenders have traditionally focused on, but as the market gets tougher, lenders need to center their attention on their relationships with dealers, or they are going to lose business,” Houston said.

The first step to success, Houston noted, is communication. According to the study, fewer than half of dealers receive consistent sales rep calls or visits from their finance sources — both of which can boost overall satisfaction by as much as 6.8% and 7.5%, respectively. However, it’s not just about frequency, he added. The nature of the calls or visits is what really adds value to the relationship.

“Dealers value a lender that can help them handle the tough issues and solve those outside-the-box situations,” Houston said. “This is where having the right people focused on their dealers and helping them execute their strategic plan is essential.”

There are three things that dealers want from their lenders but aren’t necessarily getting on a consistent basis, Houston noted. Dealers want their lenders to maintain consistent performance among their dealer relationship managers, identify their best dealers and prioritize those relationships, and to focus on areas most important to dealers. Finance sources that are able to meet these expectations, he added, will reap a greater share of the business.

The study also found that there was a correlation between high satisfaction ratings among finance sources and how much business dealers send to those respective lenders over the next year.

Sixty-two percent of dealers who indicated they were 90% or more satisfied with a lender said they would likely increase the amount of business they would send to that lender over the next year. However, as soon as satisfaction with a lender begins to dip, the expected increase in business drops dramatically. As soon as a lender’s satisfaction rating drops below 90% to 80%-89%, according to the study, the amount of dealers who indicate they’d send more business toward that lender plummets to 37%. That amount drops to 22% when satisfaction ratings drop to 70%-79%.

While the study found that speed was no longer the leading factor for dealers deciding on a lender partner, it still plays a significant role. Dealer satisfaction increases by as much as 6.4% when lenders fund error-free contracts the same day they are submitted, the study found. If lenders notify dealers of contract issues within four hours of submission, satisfaction increases by as much as 6%. Additionally, a well-managed exception process can increase overall satisfaction by up to 7.9%.

When it came to satisfaction ratings, Mercedes-Benz Financial Services and BMW Financial Services were the clear winners of the study. Mercedes-Benz Financial Services placed first across all three of the segments the study looked at: prime retail credit, retail leasing and floor planning. BMW Financial Services placed second across all segments.

The 2016 U.S. Dealer Financing Satisfaction Study captured more than 20,000 finance provider evaluations across four segments. The evaluations were provided by 3,100 new-vehicle dealerships in the United States.

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AE to Honor Women in the Industry


TARPON SPRINGS, Fla. — The publishers of Agent Entrepreneur are accepting nominations for “Women in the Industry,” a cover story that will honor hardworking and successful women in the dealership, agency and F&I product provider and administrator segments.

“In what many still regard as a male-dominated industry, countless strong, smart, industrious women have reached the heights of success,” said Kate Spatafora, associate publisher of AE and P&A. “If you or someone you know fits that description, I encourage you to nominate them today.”

The deadline for nominations is August 28. Nominations should include:

  • The nominee and nominator’s name, title, company and contact information
  • 100 to 200 words explaining why the nominee is deserving of recognition, including any professional accomplishments, recent promotions, honors and awards

The magazine’s publishers and editorial board will carefully consider every nomination and select 20 honorees for inclusion in the story, which is scheduled to run in the September/October 2016 edition of AE.

 

Submit Your Nomination!

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A Month’s Work in Three Days


Over the many years I have spent working with agents and F&I product providers, I have gotten a pretty good insight as to the best time to call on your dealer accounts. I’ll share the benefit of my anecdotal observations here.

Narrowing the Field

First, it’s not good to call on dealers in a week that begins or ends the month. On the last few days of the month they are busy trying to get as many deals done as possible to “make” their month. The first few days of the month are bad because they are closing out the previous month and figuring out what the month’s first paycheck will look like.

That leaves the middle three weeks, but even then, you have to be strategic

First, it’s not good to call on them on Monday. They are finalizing the deals from the weekend and don’t have time to see you. Friday is also bad, because they are looking forward to the weekend and are, as you know, distracted. You like to start your weekend early anyway, so it works out.

That leaves Tuesday through Thursday, three weeks out of the month. That’s a nine-day window, folks, and we’re not done yet.

Because the managers you need to see work weekends, they will very likely take Tuesday or Wednesday off. It makes no sense to visit the dealer unless you can see all the managers, right? Thursday is a better day.

So that leaves just Thursdays, three weeks out of the month. That’s three short days a month.

However, dealers tell us that they expect their reps to spend Thursdays doing some training, spend some time with their people and maybe take them to lunch. That takes most of the day. When you add driving time, you really can only service one account per day if you do it properly.

So that leaves three days for three accounts. That’s all you can really expect to cover in a month.

However, the dealer would like to see you more than once a month. After all, he makes you a lot of money, right?

So it looks like you need to limit yourself to one dealer account. That way you can provide the level of training and service the dealer has every right to expect.

Of course, you’ll have to figure out how to pay for the gasoline to get there.

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AE to Honor Women in the Industry


TARPON SPRINGS, Fla. — The publishers of Agent Entrepreneur are accepting nominations for “Women in the Industry,” a cover story that will honor hardworking and successful women in the dealership, agency and F&I product provider and administrator segments.

“In what many still regard as a male-dominated industry, countless strong, smart, industrious women have reached the heights of success,” said Kate Spatafora, associate publisher of AE and P&A. “If you or someone you know fits that description, I encourage you to nominate them today.”

The deadline for nominations is August 28. Nominations should include:

  • The nominee and nominator’s name, title, company and contact information
  • 100 to 200 words explaining why the nominee is deserving of recognition, including any professional accomplishments, recent promotions, honors and awards

The magazine’s publishers and editorial board will carefully consider every nomination and select 20 honorees for inclusion in the story, which is scheduled to run in the September/October 2016 edition of AE.

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Compliance Summit Adds Certification Component


TAMPA, Fla. — Organizers of Compliance Summit have announced that attendees will have the opportunity to earn Certified Automotive Compliance Specialist status at the Las Vegas event, which will be held Aug. 29–30, 2016, at Paris Las Vegas, as part of the annual Industry Summit.

David Gesualdo, who serves as show chair and as publisher of Auto Dealer Today and F&I and Showroom, said the addition of a certification component was in response to demand from past attendees.

“I can’t tell you how many times we have heard, ‘I need something I can take back to the dealership,’” Gesualdo said. “That is a perfectly reasonable request and, with the help of our speakers, we are going to make it happen.”

Certification will require participation in a comprehensive, four-hour review session on Tuesday afternoon and successful completion of a written exam. The review will be given by Compliance Summit speakers and focus on the following topics:

Part 1:

  • Ethics
  • Reg Z
  • Reg M
  • Risk-Based Pricing Rule
  • Adverse Actions
  • ECOA
  • FCRA
  • Credit Applications
  • Signature Issues
  • Conditional Delivery
  • Monroney Labels
  • Addendum Stickers

Part 2:

  • Magnuson-Moss Warranty Act
  • Used Car Rule
  • Red Flags Rule
  • Safeguards Rule
  • FACT Act
  • Cash Reporting
  • OFAC
  • USA PATRIOT ACT
  • Discrimination
  • Fair Credit Policies
  • UDAP
  • EH&S Basics

Compliance Summit is a series of regional events that began in Miami in November 2014 and has made stops in Chicago, Austin and Tampa. Attendees are invited to take part in the rest of Industry Summit, which also includes two full days of sales and F&I training, at no additional cost.

To register for the Las Vegas event, visit www.dealercompliancesummit.com. Attendees who register by July 29 will enjoy a $100 discount. For more information about Compliance Summit, including sponsorship and exhibition opportunities, contact David Gesualdo via email hidden; JavaScript is required or at 727-947-4027.

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