Latest “Chicago Drives Electric” EV Test Drive and Educational Event Successfully Concludes PUB 1. ISSUE 2. 2023
Memberships in: • AUTOCPA Group • The American Institute of Certified Public Accountants • The Illinois CPA Society CERTIFIED PUBLIC ACCOUNTANTS Located in Central Illinois, we serve the entire state. Contact us today to learn how we can help your dealership thrive. Drive Your Dealership Toward Financial Success We specialize in automobile dealers in the following areas: • Dealership valuations • Automobile dealer legal support • Buy-Sells for dealerships • LIFO inventory computations • Financial statement analysis • Corporation Income Tax returns • Personal Income Tax returns • CPA prepared financial statements • Dealer estate planning • Employee theft consulting • Internal control studies and audits • Profit consulting • Training office managers/CFO’s • 401K Audits Serving more than 250 Automobile Dealers throughout the United States (309) 662-8797 Email: woodwardassoc@cpaauto.com Website: www.cpaauto.com 1707 Clearwater Avenue P.O. Box 1584 ·Bloomington, IL 61702
©2023 The Chicago Automobile Trade Association | The newsLINK Group, LLC. All rights reserved. CATA Up To Speed is published four times each year by The newsLINK Group, LLC for the Chicago Automobile Trade Association and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the Chicago Automobile Trade Association, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. CATA Up To Speed is a collective work, and as such, some articles are submitted by authors who are independent of the Chicago Automobile Trade Association. While CATA Up To Speed encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at 855.747.4003. 5 State of the CATA By Chris Konecki, Executive Vice President 8 Latest “Chicago Drives Electric” EV Test Drive and Educational Event Successfully Concludes 10 Succeeding in the Midwest’s Hot Buy-Sell Market 12 10th Annual Barbecue for the Troops Recognizes Decade-Long Supporters 14 CATA Donates $1,500 to the Chicago Community Works and Sports Alternative on Behalf of Pugi Auto Group 15 CATA and Brilliance Subaru Team Up to Donate $3,000 to Anderson Humane Society 16 2024 What Drives Her Best Retailer Award Nominations Are Now Open 18 How to Build a Consumer-Friendly Service Experience That Is Efficient By Sharon Kitzman, Dominion DMS 20 The Push To Stop the Misguided FTC Vehicle Shopping Rule 22 Save the Date 2024 Chicago Auto Show CONTENTS 8 16 CATA UP TO SPEED 3
SAVE AN AVERAGE OF $6,500 MONTHLY / PER LOCATION! EVERYTHING YOU NEED, NOTHING YOU DON’T. SCAN THE QR CODE AND SCHEDULE YOUR DEMO TODAY! DominionDMS.com (866) 928-3210 1515 South Federal Highway, Suite 406 Boca Raton, FL 33432, USA SCHEDULE YOUR DEMO SECURITY FLEXIBILITY SAVINGS • $0 Core Monthly Support • $0 Conversion and Training • Unlimited Users • Encrypted Integration to Any Application • Continuous Software Enhancements • Robust Suite of Core Features • Easy to Learn / Simple to Use • Access from Any Web Connection • Choose the Apps You Want The new pricing structure, including an unheard-of $0 initial and monthly fee for VUE Core DMS, is unique in our industry. With the many challenges they face, we want to give dealers freedom and flexibility to create the custom software solution their business needs. Sharon Kitzman | President of Dominion DMS
Dear CATA Members, As we move toward the end of the year, I thought it would be appropriate to deliver an update on what the CATA has been pursuing on your behalf. In September, CATA Vice Chairman Jason Roberts, CATA Co-President Jen Morand and I attended the Washington Conference, organized by the NADA, to discuss issues that impact dealers across the country. The conference outlined the ongoing strategy NADA has legislatively. After the conference sessions concluded, each association delegation had opportunities to meet with their individual state’s Congressional representatives to discuss the most important issues. This year, the NADA has identified its top three initiatives listed below: 1. FTC’s Overreaching “Vehicle Shopping Rule”: Members of Congress should cosponsor the soon-to-be-introduced “FTC REDO Act” directing the FTC to “redo” its flawed “Vehicle Shopping Rule” to prevent the agency from needlessly imposing significant burdens and costs on consumers and small business dealers. 2.EPA’s EV Mandate Goes Too Far Too Fast: Members of Congress are encouraged to sign letters to congressional leadership warning that unless the EPA creates a national greenhouse gas standard that is reasonable and achievable for all 50 states and stops attempting to ban the sale of gas-powered cars, Congress will need to step in. The EPA’s proposed rule effectively mandates that 67.5% of new vehicle sales in 2032 be electric. NADA filed comments opposing the rule. A House Appropriations bill included language to prevent the EPA from spending money to finalize this mandate. 3.The Technical and Non-Controversial “Supply Chain Disruptions Relief Act” (LIFO Relief, H.R. 700/ S. 443): Members of Congress should cosponsor the bipartisan “Supply Chain Disruptions Relief Act” and urge House and Senate leadership to pass this technical and noncontroversial legislation at the earliest opportunity. Under the legislation, Congress would determine that the conditions necessary to grant additional time to replace vehicle inventories under existing law due to pandemicrelated foreign trade interruptions have been met. Our meetings included Congressmen Sean Casten, Brad Schneider and Raja Krishnamoorthi, as well as Congresswoman Robin Kelly. We also met with staff from Senator Dick Durbin’s office. Each of these lawmakers seemed to understand our concerns and were outwardly interested in what we had to discuss. It’s important that we attend these conferences. It allows us to stay abreast of the issues that NADA feels are crucial and, State of the CATA Chris Konecki, Executive Vice President № 1 CATA UP TO SPEED 5
more importantly, to lobby our state’s congressional leaders to support those initiatives. Another more recent initiative, which the CATA produced at the end of September, was the fall version of Chicago Drives Electric. This was the second presentation of the electric vehicle ride and drive offered at our headquarters in Oakbrook Terrace. We are proud to say that we had stronger attendance, better manufacturer participation and exceptional attendee feedback regarding the outlook of EV purchases. We found that consumers are still very interested in learning about electric vehicles and how they could transition into potential ownership. We were joined by our partners from Powering Chicago, a co-op of local electricians and NECA (National Electrical Contractors Association) contractors who were on hand to help with questions regarding power availability and how a consumer would go about converting their homes to becoming more electric vehicle friendly. ComEd was also present for infrastructure questions and rebate program information. The feedback we have received from the manufacturer representatives and the consumers who attended the weekend event has been more than positive. We feel that events like this one are valuable to our members and certainly drive electric vehicle adoption. Finally, as the CATA staff turns its focus to the 2024 Chicago Auto Show, we are curious to see what effects, if any, the UAW strike could have on the show in February. We are working with all OEMs to get them contracted and to begin to establish the 2024 floor plan. Since March 2020, when the COVID pandemic changed all auto shows, in many instances cancelling some of them, we have persevered by continuing to produce the auto show without missing a cycle. Our attendance for the media preview, the First Look for Charity and the public show days have increased each year since we produced our first post-pandemic show. Although we are still building back, we are not quite fully back yet. We will continue to produce the best auto show in the country and will not be happy until our show is back to where it was before the pandemic appeared. I hope that this update shows that the CATA is always working on your behalf and that you realize that when we are successful, our whole organization benefits. I wish all of you a warm and joyful holiday season. Sincerely, Chris Konecki Executive Vice President Chicago Automobile Trade Association 6 CATA UP TO SPEED
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Latest “Chicago Drives Electric” EV Test Drive and Educational Event Successfully Concludes № 2 The CATA successfully concluded its second annual fall Chicago Drives Electric experiential test drive and educational event last fall. Organizers plan to, once again, bring Chicago Drives Electric indoors to the 2024 Chicago Auto Show February 10-19 at McCormick Place. In alignment with National Drive Electric Week, Chicago Drives Electric aimed to raise awareness of the many benefits of all-electric, hybrid and plug-in hybrid vehicles and help consumers understand how EVs can fit individual needs and lifestyles. Featured brands available for test drives included: Audi, Cadillac, Chrysler, Ford, Hyundai, Jeep, Kia, Nissan, Toyota, Volkswagen and Volvo. In addition to putting interested parties behind the wheel of a wide array of the latest EVs, event organizers brought in a variety of experts to help break down the various aspects of EV ownership and tackle complex topics such as range anxiety, at-home charging solutions, on-the-go charging and infrastructure, tax credits and incentives and where people can begin their search. On-hand experts included Cars.com, ComEd, Drive Chicago and Powering Chicago. Once again, Powering Chicago’s mobile field trip truck was onsite, a 73’ semi-truck and trailer outfitted with current and emerging electrical technology, including EV chargers, which provided a classroom for licensed electricians and contractors to offer knowledgeable insights. Between test drives, attendees enjoyed freshly grilled tailgate food courtesy of Chicago-based grill company Weber, which demonstrated its Lumin all-electric grill and was powered by two different EVs, a Ford F-150 Lightning and a Kia EV6. This activation was a perfect example of how the EV lifestyle extends beyond the daily commute. 8 CATA UP TO SPEED
Over the course of the weekend, the event attracted 1,437 total registered drivers and netted more than 5,800 in-vehicle experiences, doubling the attendance from the previous year. The buzz generated from the event carried over to social media; Chicago Drives Electric reached more than 4.6 million, according to initial results from media measurement firm Meltwater. “We are thrilled to see this event grow and involve more brands for consumers to test drive and experience,” said CATA Chairwoman Kelly Webb Roberts. “It’s clear, based on sold-out registrations, that interest in EVs is still prominent among today’s new-car buyers. In fact, nearly 50% of Chicago Drives Electric attendees indicated that they are likely to consider purchasing an EV.” “There’s no other event quite like Chicago Drives Electric where people were able to test drive a wide range of EVs back-to-back, speak directly with product specialists about the vehicles and meet with experts who addressed questions about EV ownership and charging — all in one place,” Webb Roberts continued. “We’re planning to bring back the large Chicago Drives Electric indoor test track and EV education hub to the 2024 Chicago Auto Show,” said Chicago Auto Show Co‑General Manager Jennifer Morand. “Last year’s test track featured models from five different brands. We look forward to continuing that experience at the 2024 show.” “There are brand-new EV options coming to the market at a rapid pace, which makes an event like Chicago Drives Electric and the Chicago Auto Show an ideal place to see all of the options side-by-side,” added Morand. “We understand that consumers have questions, and we believe it’s our mission to help provide those resources and answers.” « CATA UP TO SPEED 9
Succeeding in the Midwest’s Hot Buy-Sell Market № 3 When it comes to the dealership buy-sell market, America’s heartland is truly at the center of the action. Whether you’re one of the growing numbers of Midwest-based dealers ready for retirement or an aspiring dealer looking to enter the market for a growth opportunity, interest is peaking in the Midwest’s thriving potential for buy-sell opportunities. The Midwest has some of the country’s strongest returns on investment and a large population of independent rooftops positioned for acquisition. But with this spotlight on the region, the market is poised to become a delicate environment for a dealer looking to buy or sell. Whether you are buying or selling, there are five key themes that should be kept in mind to ensure a smooth and positive experience. 1. Planning, Not Reacting: Engage early with a mergers and acquisitions (M&A) partner to strategically seek out the best acquisition opportunities. Even if you’re not ready to make a move tomorrow, it is wise to engage sooner rather than later. That way, you can take the time you need to prepare, learn what to expect, and ultimately be in a more secure position when it comes time to make a move. You will thank yourself later for taking some of the pressure off earlier and by starting on your own timeline, instead of on someone else’s. 2. Quality, Not Quantity: By working proactively, you create time to focus on strong opportunities with great potential, not just what is available at the moment. Not all buyers — or sellers, for that matter — are created equal. A dozen opportunities mean nothing if those opportunities aren’t strong ones. Whether you’re looking to exit or to grow, it’s important not to lose sight of your strategic goals. 3.The Right Fit, Not Any Fit: From either side of the equation, it’s crucial to prioritize finding the right match, both as a buyer and as a seller. When seeking a successor, keep in mind that you’re not only looking for someone who will honor the legacy you’ve built but also someone looking for strategic growth opportunities, not just to grow for the sake of adding rooftops to their list. 4.Collaborators, Not Rivals: A buy-sell scenario is certainly a delicate environment, which is why the chemistry between the parties is so important. For each transaction, everyone should come out of the deal feeling positive about their experience; that is why having a trusted M&A partner is essential. As a business owner, it isn’t every day that you’re buying or selling a company, so it’s only understandable that the situation can sometimes feel overwhelming. At the end of the day, all most buyers want is to grow and evolve with the business the seller has started, and all most sellers want is to find someone who values their legacy as much as they do. 5. Big Picture, Not Tunnel Vision: Working with an experienced M&A broker matters. They can evaluate buy-sell opportunities at a holistic level, not just from the limited viewpoint of a standard automotive broker. Your M&A broker should be a true strategic partner, not just another vendor who comes to check a box, cash a check and leave. Buying or selling a dealership or group is a major decision, so choosing your M&A partner carefully is important. At DSMA, our end-to-end capabilities, including our best-in-class valuations, allow us to dig into the finer details of an opportunity to help buyers and sellers both be confident in an opportunity. We can help you achieve your goal to make an exit or expand your business while helping to ensure a fair deal and positive experience for everyone involved. Jennifer Rafael, Vice President and Partner of Midwest Operations for DSMA, recently oversaw an acquisition in her hometown market of Chicago that she says offers valuable takeaways for dealer principals considering buying or selling in the Midwest. Under Rafael’s guidance, family-owned Pugi Auto Group of Chicago suburb Downers Grove, Ill., found its new family in locally trusted Castle Automotive Group. “I consider it a privilege to be trusted by dealers during what can sometimes be a delicate process, and nothing matters more to me than honoring that trust,” Rafael said. “The business we’re in is a highly personal space, so working with a partner who respects the emotional factors at play and facilitating the right deal chemistry is crucial. At DSMA, we like to say that your business is no one’s business but your own.” With 20 years of automotive experience, including multiple senior management roles in finance, Rafael is an industry expert in dealership mergers and acquisitions. As a Partner at DSMA, she leads the firm’s expansion into the growing Midwest dealership market. She holds a BA and an MBA in Business and Finance. She can be reached at Jennifer.rafael@dsma.com. « To read more about the acquisition, please scan the QR code. https://dsma.ca/dsma-fall-newsletternovember-2023-edition/ 10 CATA UP TO SPEED
AUTOMOTIVE PEOPLE KNOW... We are first in the automotive industry. That is why clients trust us with their mergers and acquisitions goals. DSMA is an automotive Intelligence & M&A Advisory Service that has completed 1700+ valuations and sold 425+ dealerships. Hire DSMA. Visit DSMA.com to get started. BUY AND SELL WITH CONFIDENCE ...WE FUEL THIS INDUSTRY GREG BROWN M&A Associate greg.brown@dsma.com JENNIFER RAFAEL Vice President, Partner jennifer.rafael@dsma.com OUR MIDWEST TEAM KEVIN CHRIST M&A Associate kevin.christ@dsma.com JONATHON MORONI Business Development Manager jonathon.moroni@dsma.com
10th Annual Barbecue for the Troops Recognizes Decade-Long Supporters № 4 This past summer, the Chicago Automobile Trade Association hosted the 10th Annual USO Barbecue for the Troops fundraisers, where more than 80 local new-car dealerships rallied their communities to bring in $100,453 for local military and their families. The barbecue events, held on July 15, featured everything from patriotic ceremonies, classic car shows, live music, games for kids of all ages and, of course, barbecues. This year’s fundraiser brought the grand total of the decade-long program to more than $1.1 million, supporting the USO initiatives with nearly 700 fundraisers. “This year’s fundraiser, raising more than $100,000, is the perfect example of what Chicagoland new-car dealers can do when communities come together and rally around this cause,” said CATA Chairwoman Kelly Webb Roberts. “We celebrated the 10th anniversary of the USO Barbecue for the Troops program this year and look forward to continuing our support of the USO and our local military and their families for the next decade.” This anniversary year was a special time to recognize and thank the dealerships who have participated in the program every year over the last 10 years: • Apple Chevrolet • Arlington Heights Ford • Evanston Subaru • Haggerty Buick GMC • Hennessy’s River View Ford • Ray Chevrolet • Raymond Chevrolet • Raymond Kia • Wickstrom Auto Group “We are so grateful for the support we receive from our partners at the Chicago Automobile Trade Association and the local new-car dealerships,” said USO Illinois Executive Director Christopher Schmidt. “This grassroots fundraiser has now raised more than $1.1 million in crucial funds that support our service members and their families. On behalf of the USO and all those who serve our nation, we thank all the participating dealers and their communities for their generous support not only this year but over the last 10 years.” « 12 CATA UP TO SPEED
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№ 5 CATA Donates $1,500 to the Chicago Community Works and Sports Alternative on Behalf of Pugi Auto Group The Chicago Automobile Trade Association recently donated $1,500 to the Chicago Community Works and Sports Alternative. The donation came via the CATA’s Chicagoland Dealers Care program in conjunction with a $5,000 donation by Pugi Auto Group of Downers Grove. Through Chicagoland Dealers Care, the CATA matches up to $1,500 of a member dealer’s donation to local charitable organizations. The Chicago Community Works and Sports Alternative was founded in 1991 as an anti-gang and drugs organization for students after school. One of the most well-known programs that Community Works and Sports Alternative produces is the Chicago Jokers football team, which greatly benefits from these donations by providing equipment and transportation for students on the football team. Many Jokers return to coach the team, and some even go on to have a professional football career. Most recently, Jokers alumni Jayden Reed was drafted by the Green Bay Packers in the second round of the 2023 NFL Draft. In addition to the Chicago Jokers football program, the organization also supports students through etiquette and mentoring programs. There are currently more than 80 students participating throughout the organization. “We are proud to provide these students a safe place to come together,” said Eric McLendon, Chicago Community Works and Sports Alternative founder and President. “Now they have the courage and resources to say ‘no’ when faced with questionable decisions.” The CATA has been a longtime supporter of local nonprofit organizations. Since its inception in 2008, the grassroots Chicagoland Dealers Care program has donated more than $125,000 to local charitable organizations. Additionally, since 1992, the association has raised more than $60 million for Chicago-area charities during the annual First Look for Charity black-tie event, traditionally held the evening before the Chicago Auto Show opens to the public. “The CATA’s Chicagoland Dealers Care program makes our member’s donation dollars go further and also highlights the positive impact that new-car dealers have within their communities,” said CATA Chairwoman Kelly Webb Roberts. “We applaud local dealers like Pugi Auto Group for their very generous contributions to supporting their community.” For more details on the Chicagoland Dealers Care program, please visit www.ChicagolandDealersCare.com.« 14 CATA UP TO SPEED
CATA and Brilliance Subaru Team Up to Donate $3,000 to Anderson Humane Society The Chicago Automobile Trade Association (CATA) donated $1,500 to the Anderson Humane Society of South Elgin, matching CATA dealer Brilliance Subaru’s initial donation to the non-profit. The donation came via the CATA’s Chicagoland Dealers Care program in conjunction with a fundraising campaign and event hosted by Brilliance Subaru. Brilliance Subaru has partnered with Anderson Humane for more than two years and has directly helped adopt more than 625 rescue animals. “I have been lucky enough to travel to Oklahoma, Virginia, Missouri and other surrounding states in my parts truck, picking up loads of rescue animals, bringing them back to Anderson, and helping them find their forever homes,” said Kevin Keefe, owner of Brilliance Subaru. “We are doing it again,” continued Keefe. “We are assembling a caravan to Oklahoma to bring back at least 50 rescue animals. Unfortunately, there are exorbitant costs to spay, neuter, vaccinate and transport these animals which is why we organized an event called ‘Operation Oklahoma’ where all of the funds raised will offset Anderson Humane’s investment in these animals.” The CATA has been a longtime supporter of local nonprofit organizations. Since its inception in 2008, the grassroots Chicagoland Dealers Care program has donated more than $125,000 to local charitable organizations. Additionally, since 1992, the association has raised more than $60 million for Chicago-area charities during the annual First Look for Charity black-tie event, traditionally held the evening before the Chicago Auto Show opens to the public. “Kevin and the entire team at Brilliance Subaru have been extremely hands-on and involved with not only raising money for this wonderful organization but putting in the time and work to help rescue hundreds of animals over the last several years,” said CATA Chairwoman Kelly Webb Roberts. “The CATA is proud to support their fundraising efforts and applaud Kevin, and all Chicagoland dealers, for making such positive contributions to their communities.” For more details on the Chicagoland Dealers Care program, please visit www.ChicagolandDealersCare.com. « № 6 CATA UP TO SPEED 15
№ 7 2024 What Drives Her Best Retailer Award Nominations Are Now Open The Chicago Auto Show organizers are proud to partner with A Girls Guide to Cars and Women in Automotive to produce the annual What Drives Her networking event and awards program during the show’s Media Preview. What Drives Her was started in 2017 as a way to bring together influential women in the automotive industry and amplify the female leadership and innovation contributions across manufacturing, retailers, media and beyond. Event organizers introduced the What Drives Her awards in 2022 to recognize and applaud outstanding females and advocates in the industry. Nominations are submitted from individuals within the industry ranging from auto manufacturers, suppliers, media and dealers. The panel of distinguished jurors are made up of female automotive journalists. At a local level, the Best Retailer award calls on CATA dealers to nominate an extraordinary female at Chicagoland and Northwest Indiana dealerships. This person demonstrates a high level of commitment and drive to any task at hand, whether that’s in sales, service, finance or technical support. Nominees must be employed by a Chicago-area dealership. 16 CATA UP TO SPEED
The 2023 recipient was Soledad Romero, Store Manager, Romeoville Toyota. Soledad started in an entry-level position at the dealership during the pandemic. She demonstrated her excellence as a leader and a human being with compassion, pride, integrity and discipline to achieve results, since she has climbed her way up to the top of management. Romero didn’t have any automotive experience when joining the team just two years ago. She leads by example and is willing to help with any department in the dealership. Her team says she handles it all with grace and compassion while leading her team. “It has been such an honorable moment in my career, to have been recognized and presented with the Best Retailer Award,” stated Romero. “To have been classified under a category such as ‘Influential Woman in Automotive’ has been an incredible experience. Let’s continue to support and stand strong behind empowering women who share the same passion for retail in automotive.” 2023 Best Retailer finalists included: Gabrielle Abinion, General Manager, Fox Valley Volkswagen; Soledad Romero, Store Manager, Romeoville Toyota; and Carly Weck, Finance Manager, Elgin Kia. Nominations are now open for the 2024 Best Retailer Award. Please reach out to CATA Communications & Marketing Manager Hayley Feichter at hfeichter@drivechicago.com with your nomination. Nominations will remain open until mid‑January 2024. « CONTACT US TODAY! 801.676.9722 sales@thenewslinkgroup.com Your Customers Are Too. Advertising Space Available. QR Code CATA UP TO SPEED 17
№ 8 How to Build a ConsumerFriendly Service Experience That Is Efficient By Sharon Kitzman, Dominion DMS Delivering a superior service experience is the goal of every business. To achieve this goal, dealers must build a service experience that is both efficient and friendly. Achieving this balance can be difficult, but with the help of some fantastic technology, it’s not impossible. In this article, we will explore the steps necessary to create a consumer-friendly service experience that is also efficient. The Check-in Process The check-in process is a crucial part of the overall customer service experience. It sets the tone for the entire service experience. As such, it is essential to get it right to deliver a truly consumer-friendly experience. By looking at other industries with check-in processes, we can learn from their operations and apply them to our own. My veterinarian reminds me of my appointment more frequently and in a fun and friendly way (think texts with dog emojis) than the appointments I have booked online for my car. The emojis might seem childish, but it makes me smile when I see the text, and I open the text to read the whole reminder. My dealership could do better with the appointment reminder process or the linkage between what I have already filled out online and the questions I am re-asked when I get into the service lane. This level of accessible customer service keeps me coming back. Similarly, the automotive industry could take a cue from the airlines and ensure they check in customers as quickly as possible. I know what you are thinking. Really, the airline industry? But take yourself back 10 years before the kiosks and bag drop, when everyone waited for a live person to help them. I remember my first kiosk experience with Delta, thinking, “This is never going to stick,” but now it is the rule, not the exception. The airlines invested in consumer apps to smooth processes and satisfy the desire for self-service. They also changed their operations, funneling the travelers to the kiosks the minute they walked in the door with a greeter. The key is providing an excellent check-in process, where your consumer can self-service the things that make sense, and your advisors use the data supplied by that consumer to check in quickly and efficiently. Waiting and standing in line is rarely an enjoyable experience and not one that consumers want to repeat. However, by providing a simple, efficient and friendly check-in process, you can start your service experience on a positive note. The Waiting Area One of the essential parts of creating a consumer-friendly service experience is ensuring your waiting area is as inviting and efficient as possible. There are consulting companies that do this full-time for the medical industry. For example, having a quiet, safe and clean environment is essential. Even something as simple as comfortable chairs, bottled water and snacks can make a world of difference. Complimentary Wi-Fi is always appreciated to allow your customers to stay connected with their busy lives. 18 CATA UP TO SPEED
Sharon Kitzman leads the launch and long-term growth of Dominion DMS. Previously, she managed the strategic direction and product development for Reynolds & Reynolds and Dealertrack. Her experience spans every area of dealership software development, including sales, marketing, product lifecycle management, process re-engineering, OEM management, professional service, and customer services. Kitzman is a recognized leader in the automotive industry for her expertise in DMS technology. She received numerous accolades for her leadership, including Automotive News Top 100 Leading Women 2015 and 2020, Auto Remarketing Women in Retail 2021, and AutoSuccess Women at the Wheel 2021. She has a Bachelor of Business Administration from Ohio State University. Additionally, providing timely information about what is going on with their vehicle and pushing video content to the consumer’s device can keep them in the waiting area and not coming back to the drive to ask additional questions. Consider giving customers the option to upgrade additional repairs while they wait. A big plate glass window for added transparency will reassure the customer about the work being completed on their vehicle, avoiding questions regarding the services. Having a comfortable and productive waiting area will help ensure customers have a friendly automotive service experience. Overcommunicate Clear communication with consumers is critical to providing a friendly service experience. Technology can be used to streamline the process, as well as provide transparency throughout the duration of the service. A communication system that keeps customers informed throughout the process should be a priority. From the time of check-in, customers should be given an estimate that makes them aware of the approximate time and cost of their services. The estimate should list all the suggested services and the rough cost for completing each service. Upon the customer’s review and agreement, the customer will sign the document, ensuring there are no surprises once everything has been completed. Prices should never be a surprise, so communicating with the customer is vital for transparency. Plenty of research shows most consumers prefer text as the best way to reach them because it allows for concise yet detailed updates that won’t take too much of the consumer’s time. Through the use of text updates, customers will have the ability to stay on top of their service and make any necessary changes that they may require. I have witnessed certain regionally based demographic tendencies — think South Florida — where text is not always best. You know your client base! Transparency is also critical to providing a consumer-friendly service experience. It is essential to allow customers to view updates to their service or inform them of any changes that could impact the service’s completion. Good news can be delivered autonomously, as it won’t require any action from the customer. Bad news should always be delivered in person so that the customer can fully understand and respond to the issue. Finish Strong Completing the service experience in a consumer-friendly way is just as important as the beginning of the process. Ensure that the bill does not surprise the consumer and take payment their way. Offer payment options such as online, in an app, through SMS or at the cashier station. Use technology to allow the technician to show and tell what repairs were made to the vehicle and ensure the consumer knows what was done and why it was necessary. The client that brought the car in for service may have a partner, not with them, who wants to understand what repairs were made. Lastly, follow up with the consumer one to two days after completing the service to ensure there are no lingering concerns. Following these steps will ensure consumers have a friendly and satisfactory service experience. « Listen to our VUE Points podcast to stay up to date with news and current events related to the automotive software and retail industry. https://www.dominiondms.com/podcasts/ CATA UP TO SPEED 19
THE PUSH To Stop the Misguided FTC Vehicle Shopping Rule In July of 2022, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking (NPRM) and solicited public comment on a Rule regarding unfair and deceptive acts or practices under its authority in regard to auto dealers. The Rule would prohibit auto dealers from making misrepresentations during the car buying journey, including selling, leasing or arranging financing for motor vehicles. It would require accurate pricing disclosures in sales discussions and advertising and would require dealers to obtain a consumer’s express, informed consent for all charges. It would also prohibit the sale of add-on products or services that give no benefit to the consumer. Additionally, dealers are required to keep records of advertisements and customer transactions. The public comment period closed on Sept. 12, 2022. According to the National Automobile Dealer Association (NADA), auto retailing generates 17% of the nation’s retail sales, and this Rule would affect nearly 42 million consumer transactions each year, thus injecting large amounts of time, cost and unnecessary complexity into the vehicle sales process. And, according to a recent study by the Center for Automotive Research (CAR), the untested mandates in this Rule will cost consumers both time and money. This Rule, in essence, undermines industry efforts to streamline and improve customer experiences. Additionally, the Alliance for Automotive Innovation, which represents General Motors, Toyota Motor, Volkswagen and other major automakers, voiced concerns about the Rule and warned that “excessive regulation and micromanagement of the sales experience can do more harm than good for both consumers and the industry.” № 9 20 CATA UP TO SPEED
NADA has urged the FTC to scrap the proposed rule, go back to the drawing board and propose a rule that would go through a responsible regulatory process that involves all stakeholders. On Oct. 3, 2023, S. 3014, the FTC REDO Act, a bipartisan bill from Senator Jerry Moran (R-KS) and Senator Joe Manchin (D-WV), was introduced. The bill directs the FTC to redo the proposed FTC Vehicle Shopping Rule by: 1. Issuing an advance notice of proposed rulemaking 2. Conducting a quantitative study on auto retailing 3. Conducting consumer testing 4. Publishing a cost-benefit analysis based on actual data The FTC failed to perform any of these essential steps before proposing the Vehicle Shopping Rule. In an October press release, NADA shared the following key points: • The FTC has not followed a fair and transparent process in issuing this proposed rule, which would add more time and costs to the car buying process. Despite adding more paper to the sales process, the FTC counterintuitively (and without any analysis or support) assumes that this new rule would save consumers three hours per transaction and, in turn, save consumers $29.7 billion. The CAR report, with clear supporting evidence, shows that consumers would spend an additional two hours per transaction, with an overall cost of $38.1 billion. • This rule increases the complexity of the car-buying process, adding more paperwork for consumers while also creating inconsistent and unnecessary rules and burdens for small businesses. Vehicle sales are already extensively regulated with a document-intensive process. Under the rule, every time a consumer asks about a specific vehicle or monthly payments, there would be new written (and untested) disclosures involved. • Congress must stop the FTC’s rushed and flawed rule since adding additional regulatory burdens must be the result of an informed process. All the behaviors the FTC’s rule is aimed at addressing are already against the law, and the agency presently has sufficient enforcement authority to police any alleged wrongdoing. The FTC should work collaboratively with the auto industry, as it has in the past, to promote compliance without unnecessarily adding costs, lengthening transaction times and harming consumers. As of now, the FTC has not disclosed a timeframe for when the final rule will be released. NADA is urging members of Congress to join the conversation and cosponsor the FTC REDO Act in an effort to stop the misguided Vehicle Shopping Rule. « DID YOU KNOW? Enjoy your association news anytime, anywhere. Scan the QR code to visit our online publication to stay up to date on the latest association news, share articles and read past issues. cata-up-to-speed.thenewslinkgroup.org CATA UP TO SPEED 21
MEDIA PREVIEW February 8-9 FIRST LOOK FOR CHARITY February 9 PUBLIC SHOW February 10-19 McCormick Place 2301 S. King Dr. Chicago, Illinois For more information, to get involved or to purchase tickets, please scan the QR code. https://www.chicagoautoshow.com/default.html 2024 Chicago Auto Show
Running a dealership comes with its share of uncertain terrain. But one thing is certain. Our Dealer Financial Services team is dedicated to being by your side with the resources, solutions and vision to see you through. Brad Bartsch bradley.w.bartsch@bofa.com 469.201.9755 Tony Garcia anton.r.garcia@bofa.com 312.438.8356 business.bofa.com/dealer Making business easier for auto dealers. Especially now. Diana Zamudio diana.zamudio@bofa.com 312.234.2466 “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: | Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value | ©2022 Bank of America Corporation. All rights reserved. 4826555 08-22-0145 Running a dealership comes with its share of uncertain terrain. But one thing is certain. Our Dealer Financial Services team is dedicated to being by your side with the resources, solutions and vision to see you through. Brad Bartsch bradley.w.bartsch@bofa.com 469.201.9755 Tony Garcia anton.r.garcia@bofa.com 312.438.8356 business.bofa.com/dealer Diana Zamudio diana.zamudio@bofa.com 312.234.2466 “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: | Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value | ©2022 Bank of America Corporation. All rights reserved. 4826555 08-22-0145
BROWN & BROWN Overview Brown & Brown Dealer Services (BBDS) is an F&I performance company aimed at helping to build tailored solutions for today’s vehicle retailer. The complexities inherent to the F&I business demand a white glove approach with the flexibility to satisfy a variety of brands or markets. The BBDS network of providers helps ensure the proper F&I program is developed and executed to help maximize upfront sales and profits, provide a top-tier customer ownership experience and create wealth-building opportunities downstream. How We Can Help Our BBDS team is comprised of experienced and knowledgeable F&I specialists that have worked with dealers for decades. They are equipped with access to the industry’s top product providers, a top-rated training and development program and commercial insurance products to help you find solutions to fit your business needs. F&I Products • Flexibility to help fit your needs • Access to A-rated providers • Two in-house administration companies • Wealth-building opportunities on products Training Solutions • F&I Management Certification School • Learning Management Systems (LMS) delivering online training • Monthly webinars and video training archive • Ethics & Compliance Certification Participation Programs • Program selection based on your goals and objectives. NCFC, CFC, Retro or DOWC • Nationally recognized team that specializes in evaluating and configuring personalized solutions • No obligation evaluation of your current program Property & Casualty • More markets for your risks mean more choices to help meet your individual business and personal needs • Knowledgeable professionals to help identify your unique risks and find solutions to help protect your assets Employee Benefits • We can help you build an effective benefits strategy • Health Collective Purchasing Arrangement that includes a dedicated service representative to help you with premium savings, national and regional coverage and to help make the administration of your plan more efficient DEALER SERVICES The Broker for the Dealer Custom F&I Programs That Help Deliver Results and Profits Brown & Brown Dealer Services 263 Shuman Blvd. • Naperville, IL 60653 | bbrown.com | (847) 612-9361 Overview Brown & Brown Dealer Services (BBDS) is an F&I performance company aimed at helping to build tailored solutions for today’s vehicle retailer. The complexities inherent to the F&I business demand a white glove approach with the flexibility to satisfy a variety of brands or markets. The BBDS network of providers helps ensure the proper F&I program is developed and executed to help maximize upfront sales and profits, provide a top-tier customer ownership experience and create wealth-building opportunities downstream. How We Can Help Our BBDS team is comprised of experienced and knowledgeable F&I specialists that have worked with dealers for decades. They are equipped with access to the industry’s top product providers, a top-rated training and development program and commercial insurance products to help you find solutions to fit your business needs. F&I Products • Flexibility to help fit your needs • Access to A-rated providers Training Solutions • F&I Management Certification School • Learning Management Systems (LMS) delivering online training • Monthly webinars and video training archive • Ethics & Compliance Certification Participation Programs • Program selection based on your goals and objectives. NCFC, CFC, Retro or DOWC • Nationally recognized team that specializes in evaluating and configuring personalized solutions • No obligation evaluation of your current program Property & Casualty • More markets for your risks mean more choices to help meet your individual business and personal needs • Knowledgeable professionals to help identify your unique risks and find solutions to help protect your assets Employee Benefits • We can help you build an effective benefits strategy • Health Collective Purchasing Arrangement that includes a dedicated service representative to help you with DEALER SERVICES The Broker for the Dealer Custom F&I Programs That Help Deliver Results and Profits This magazine is designed and published by The newsLINK Group, LLC | 1.855.747.4003 18W200 Butterfield Rd #096 Oakbrook Terrace, IL 60181
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