NIAGARA FALLS, NEW YORK, NY – June 21, 2016: First Wheel’s Automotive Dealer Supplies Inc. released its new reusable dry-erase type hang tags to save dealers money while using these tags as powerful merchandising tools. 

Now comes from Wheels new Magic Cling car window information holders for adding a crisp, like-new merchandising appeal that shouts, ‘Look here!” as shoppers browse the lot. 

Presenting with a pre-printed customized section for dealership branding and marketing, these cling holders accept dealer-printed window stickers and then press and hold everything firmly and tightly to the window glass, creating a better visual perception for your used cars. 

Wheel’s magic-cling window sticker holders can be custom ordered in any size or shape. The minimum order is 25. These magic-cling holders leave no residue when removed from car windows. They can be used again repeatedly. Custom imprint area is 5 by 11-inch. 

Dealers may also be interested in Wheel’s new reusable dry erase-type hang tags designed to save dealers money by replacing wasteful paper tags.  With Wheel’s exclusive dry-erase hang tags dealers simply wipe clean any prior message and write new details using dry erase or wet erasable markers. 

A dealer selling 1,000 new and used vehicles a year will enjoy an ROI of $600 in the second year of tag use, replacing disposable paper tags. 

To order Wheel’s proprietary dry erase reusable hang tags that save money to merchandise inventory, call Renee at 1-800-465-8831, Ext. 105. For more innovative and cost-saving lot merchandising and dealership supplies, visit wheelsauto.com

By David R. Missimer

Dealers often ask us how they’re to respond to someone requesting information about why the dealership ran their credit.

The nature of these requests is one of two motives:

• The consumer is demanding to know why the dealership ran their credit, or
• The consumer is a victim of identity theft

The dealership may receive requests for information from a phone call, correspondence from the consumer, correspondence from an individual claiming to represent the consumer or law enforcement.

The response is conditioned on whether the request is for identity theft information, or concerns previous credit inquiries by the dealership.

Usually for most franchised dealers, our recommendation is simple and straightforward – reply as the dealership, as it is the “User” of the credit report and not a “Furnisher” of information under the Fair Credit Reporting Act (FCRA).

However, and to be clear, if the dealership finances transactions (BHPH) or reports information to consumer reporting agencies on particular consumers, the dealership then is a “Furnisher” under FCRA and has very different obligations to investigate and respond to claims from consumers.

This article addresses the requirements the “User” of a consumer report must respond to consumer inquiries.

The previous credit inquiry

Frequently consumers will question a credit inquiry from the dealership that shows on their credit report will be to demand it be removed, or that information be sent to them verifying the dealership had a permissible purpose of requesting the consumer report. The dealership’s only obligation is to verify it had a permissible purpose of running credit on the individual. This can be accomplished by locating the signed credit application in either the deal file or dead deal folder.

Once you confirm a signed credit application for the consumer, the only response required is to advise the individual that credit was run at their request and the dealership has a signed credit application on file.  Do not send, email, or fax a copy of the application to the individual inquiring.

Once the dealership is satisfied that appropriate documentation exists for the credit request, nothing further is required. The only time a consumer should be provided a copy of their signed credit application is when you are 100% certain they are who they say they are, or in response to an identity theft claim.

Identity theft

Under FCRA, the User of a credit report must provide certain information to a victim of identity theft, law enforcement officials identified by the victim, or authorized individuals investigating the claimed identity theft on behalf of the victim. Before providing any information, however, the dealership must receive a written request for information, and verify both the identity of the individual claiming to be a victim of identity theft, and the theft itself.

A request for information from an Identity Theft Victim must:

• Be in writing, and
• If not initially provided, then at the dealership’s request, include available relevant information concerning the alleged Identity Theft, including the date of the transaction and any other identifying information.

Once an acceptable written request is received, the dealership must verify both the claim of identity theft and the identity of the person claiming their identity was stolen. To prove the claim of theft, the victim must provide a copy of a police report and a completed Identity Theft Affidavit.

To check the identity of the person making the theft claim one of the following, at a minimum, must be provided:

• A government-issued identification card;
• Personally identifiable information of the same type provided the Dealership by the unauthorized person; or
• Identifying information typically requested from customers financing their purchase.

Once the victim has made the request, and both the existence of a theft claim and the claimant’s identity have been verified and only then, must the dealership turn over information concerning that transaction.

The next time a consumer contacts your dealership demanding you take action concerning their credit report don’t panic. Follow the above guidelines and respond accordingly.

The consumer may not be satisfied with your response to their prior credit inquiry, but can take no action against the dealership that ran the bureau for a permissible purpose. If that consumer believes another used his or her identification at your store, let them take the necessary steps to report it as identity theft.

The easiest identity theft scam in the world is to contact a creditor and demand they send a copy of the credit application.

For more information on this subject, contact the author or visit www.compliantnow.com.

David R. Missimer, dmissimer@compliantnow.com is General Counsel for Automotive Compliance Consultants Inc. He spent 28 years in private practice as a seasoned litigator and trial lawyer representing lenders, auto dealers and numerous other entities and individuals. He has worked with dealership compliance issues since 2003. He joined Automotive Compliance Consultants in 2003. He is a member of American Financial Services Association and National Automotive Finance Association as General Counsel of Automotive Compliance Consultants Inc.

NIAGARA FALLS, NEW YORK, NY – May 17, 2016: Clever new reusable dry erase-type hang tags exclusively from Wheel’s Automotive Dealer Supplies, Inc. help dealers merchandise inventory and save them money by replacing wasteful paper tags.   

Dealers will reuse these durable hard plastic tags with built-in mirror hanger repeatedly. Innovative and ecofriendly, these unique dry erase hang tags exclusively from Wheel’s eliminate the costly need to waste paper tags having old data or misprints.

With Wheel’s exclusive dry-erase hang tags you simply wipe clean any prior message and write new details using dry erase or wet erasable markers.  

A dealer selling 1,000 new and used vehicles a year will enjoy an ROI of $600 in the second year of tag use, replacing disposable paper tags. 

“Erasable, reusable hang tags is just the kind of money-saving inventory merchandising idea dealers have come to expect from Wheel’s Automotive Dealer Supplies,” said Richard Ashworth, president. Wheel’s is North America’s most renowned experts in innovative marketing products for automotive retailers.

• This unique, one-of-a-kind dry erase, reusable hang tag features a highly visible area dealership branding, For Sale notices, or other dealer-customized copy.
• The area for writing vehicle details is bright, substantial, and clearly visible even through tint.
• Tags are available in multiple colors. Dimensions can be customized to any size and scale.  Copy is easily customized to highlight the topic on which the dealer wants the shopper to focus.
• There is no minimum tag order.

“We are always listening to dealers and looking for practical new ways to help dealers sell cars and save money,” Ashworth said. “These new dry erase useable hang tags will not curl at edges or fade easily, so they always look new and fresh to shoppers.”

To order Wheel’s proprietary dry erase reusable hang tags that save money to merchandise inventory, call Renee at 1-800-465-8831, Ext. 105. For more innovative and cost-saving lot merchandising and dealership supplies, visit wheelsauto.com.

A new white paper from MaximTrak Technologies leads auto dealers into the present and future potential of digital F&I platforms for improving F&I profitability and customer satisfaction. 

“The digital revolution has influenced F&I best practices for more than a decade, led by digital cutting-edge e-menu technology. Today the industry is being driven by multichannel, high-touch, visual tools that integrate with the industry, use predictive technology, are easy to use, and engage consumers proactively in the F&I experience,” notes Jim Maxim, Jr, president, MaximTrak Technologies. 

This new report notes recent results of dealers using digital technologies to boost PVR and aftermarket product penetration. Across a study of 270 dealers and 1.5 million transactions, PVR increased $538 per deal and service contract penetration lifts of 52% per deal.  

“Every dealership I talk to wants new opportunities to maximize F&I profitability. Those dealerships that embrace the right technology experience better results…more than they thought possible. Profitability is not elusive…it is a choice,” Maxim says. 

Click here to download this report (http://offers.maximtrak.com/future_of_f-i). 

This white paper also details MAXIMTRAK FLITE, a digital platform that combines a state-of-the-art touch screen, tablet technology, and a unique “smart survey” with MaximTrak’s fully integrated, compliant and comprehensive system. It is designed to put the F&I customer in control in a whole new way. With FLITE, a buyer’s entire buying process is enhanced and streamlined with interactive videos, surveys, product recommendations, package building, and more. With the flick of a finger, customers are guided through a consistent, frictionless, and enjoyable sales experience transforming the vehicle delivery process and driving dealer profitability. 

To learn more and for a personal demonstration, contact 1.800.282.6308 or email sales@maximtrak.com. Click here to download this report.

More than 100 companies at NADA this year marketed products and services aimed at making fixed operations more efficient and profitable. The big question coming out of NADA is this: did dealers grasp onto the better ideas to help them eliminate costs, improve service volume, and increase customer retention? 

“If not, that’s a big miss,” says Ryan Williams, president of Fidelis PPM, revenue- and retention-building prepaid maintenance software. “Dealers should already be investing in solutions that create new revenue streams and then hold on to it.” 

Coincidently, international sales strategist Grant Cardone, a name well known in automotive retailing, shared similar caution, in his article “Prepare for a Massive Recession,” in Entrepreneur magazine.  “Don’t wait for it to get here - operate like it is here now,” Cardone wrote. “Stop ALL spending except on those things that can increase income. Do NOT spend to consume; spend only to increase income. 

With monthly proven ROI and 20% service growth, products such as prepaid maintenance programs meet these criteria, Williams says. “When programs like this can deliver a three-year retention average of 68% and $70 per RO upsell, their contribution to a dealership’s profitability can be enormous.” 

 Dealers should ask the following when considering products or services that are being offered: 

• Does your retention program drive consumers to your shop?
• Is the customer experience it delivers positive enough, so they come back again?
• Are there accountability tools baked into the solution to measure the lift in customer-pay dollars for each visit, so program ROI can be proved? The dealers Williams met with at NADA were actively gauging vendors’ service-profitability ideas. They were also seeking advice about solutions that didn’t require them to reinvent how their service department operates.  

Programs that enhance existing processes, such as prepaid maintenance plans that drive buyers back to the selling dealership, help retain customer business and keep service bays occupied. Such plans produce: 

• 85% first-year retention, 65% each of the following two years
• $70 customer-pay upsell per repair order
• On average $1,105 in customer-pay service business a year with you, for the majority of the six years consumers own their vehicles today 

“Every decision a dealer makes about an investment factors in at least two objectives: How will it streamline operations to remove waste and cost, and how will it drive service volume, retention, and thus revenue,” Williams notes. 

“If a dealer isn’t evaluating purchases for their ability to achieve both goals, dealers leave potential revenue on the table. That’s not the way to situate the dealership for leaner days ahead.” 

Williams notes that most any vendor’s service offering, especially from those marketing prepaid maintenance and related programs, must offer the dealer measurability. 

“Most programs cannot substantiate their retention promises, and dealers putting faith in such plans have misplaced hope,” he says. 

Fidelis PPM is the authority in helping dealers retain customers through process-driven prepaid preventive maintenance retention programs. These programs drive consumers into participating dealers’ service  departments. Deep reporting tools provide dealers with detail-rich accountability metrics.

For more information, visit www.getfidelis.com    or email Williams at ryan@getfidelis.com

Reconditioning workflow evangelists such as Dennis McGinn, founder, and CEO of Rapid Recon, says GMs who create a Time-to-Market workflow culture among recon, service and used cars can help dealers: 

• Drive down recon costs – up to a quarter-million-dollars or more a year
• Get vehicles frontline ready in four to five days – not 10 to 12!
• Increase inventory turns 2.5 times for every five days shaved in recon 

“The message from this year’s NADA was ‘be prepared.’ Dealers recognize that leaner times ahead will require other parts of their business to pick up any slack. Recon is an ideal hidden treasury,” McGinn said. “Getting a dealership to this level of recon efficiency and profitability is a GM-level responsibility.” 

Here's more: 

<iframe width="560" height="315" src="https://www.youtube.com/embed/PbVX2DuH-No" frameborder="0" allowfullscreen></iframe>

“If the general manager isn’t involved in one of the highest profiting departments in the store, you might have the wrong GM,” Tom Dunn, General Manager for the Fred Martin Superstore, Barberton, Ohio, told me. 

“If you don’t care about improving reconditioning, why should your staff?” says Edward Hyde, dealer principal of the Legacy Auto Network, London, Kentucky. 

Dealers who successfully establish this culture start by replacing outdated and largely ineffective reconditioning tracking methods such as whiteboards, spreadsheets and sticky notes with automation. They assign a management-level champion to manage its daily oversight, and they use their reconditioning software to structure work and then monitor and control its outcome to specific time deadlines.

Network and data security for your auto dealership is serious business! You just cannot operate an automobile dealership safely and without undue stress unless modern systems, security tools, and network protection are in place to keep good data safe and keep out bad data and cyber troublemakers.

You want and need the facts – clearly presented, to make the right decision about how to best protect you and your customers’ valuable assets from data hacking and cybercrime.

Better understanding and application of just three data security best practices will keep your dealership well protected, secure, and productive. We invite you to learn more. Download brief here.

CRYSTAL LAKE, IL, March 15, 2016 – From the CFPB’s encroaching influence on dealer finance and insurance practices to new challenges in human resources to increasing cyber crime exposures and day-to-day OSHA and EPA requirements, dealers in 2016 juggle considerable change.

“Dealership compliance in 2016 is increasingly difficult, given so many regulatory and social influences on the business today. Dealers want answers – and prefer not to wade through paperwork to find them, and we’re at NADA in Las Vegas again this year to provide direction,” said Terry Dortch, president, Automotive Compliance Consultants.

Dealers and their staff can visit the company at Booth 468C, where the compliance firm’s general counsel and vice president David Missimer also will answer questions, review why the CFPB is pushing dealers to adopt Compliance Management System software and practices, and address dealers’ other compliance challenges.

Also offering guidance will be representatives from Automotive Compliance Consultant’s network and data compliance partner, Nuspire Networks.     

Third-party access to the dealer management system for additional data applications needed by  CRM, data mining, lead generation systems, for example, are making dealership networks increasingly active targets for cyber criminals, Dortch said.

Automotive Compliance Consultants specializes in dealership and auto finance compliance, providing in-dealership consultations and analysis, compliance audits and training, and offers solutions for all compliance needs. The Automotive Compliance Consultants staff has extensive experience in the retail automotive industry and focuses exclusively on dealership compliance issues. For information, contact terry_dortch@compliantnow.com  or visit www.compliantnow.com

No dealer today can tolerate lost margin, yet dealers’ difficulty in managing and using OEM and vendor incentive funds costs them thousands of dollars a month in lost opportunity and sales.

The unused portion of an OEM or vendor sales program incentive fund (spiff) is referred to by sales and marketing as “breakage.” This represents opportunity for dealerships.

How to leverage this breakage to improve margin is a core theme of “Are You Leaving Money on the Table?” a presentation at theInnovative Dealer Summit 2016 in Denver by Sean Ugrin, founder and CEO of Colorado-based Spiffit, an end-to-end incentive dashboard application.

At the March 15–16 Summit at the Denver Conference Center, Ugrin will share best practices for increasing spiff utilization and optimization in service, sales, accessories, parts, and F&I departments. Read more.

.

Consider these points:

• Vehicle tracking via spreadsheet or whiteboard, while an improvement over sticky notes, is neither transportable nor shareable. In my experience, use of these tracking tools falls into disuse after a brief and energetic start.
• Misplaced vehicles can be taken out of the process temporarily while they await parts or repair authorization. The busy-ness of the day means these units are too easily forgotten about – or take time to locate again when ready to reenter the process.
• Misplaced communication between recon and the used-car manager slows repair approvals, causing delays that mount up and erode gross margin.
• Many compensation plans are based on time, not units of production

Each of these inefficient processes cost money – in time, labor and days in recon. 

The recon process should flow from point A to B in linear fashion. If that looks like an assembly line, it is. Your recon processes may not include each of the steps that this illustration shows, but running recon like a factory focuses on maximizing output and reducing cost.

More details here.