2024 ISSUE 4 THE OFFICIAL PUBLICATION OF THE VIRGINIA AUTOMOBILE DEALERS ASSOCIATION A Message From President and CEO Don Hall Community Colleges: The Key to Automotive’s Workforce Challenges Backing Technicians and Service Departments With 2025 Virginia Legislation
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® JL Winslow, jl.winslow@bofa.com business.bofa.com/dealer ©2023 Bank of America Corporation. All rights reserved. DFS-699-AD 5949042 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “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, derivatives, 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., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
©2024 Virginia Automobile Dealers Association (VADA) | The newsLINK Group LLC. All rights reserved. Virginia Auto Dealer is published four times each year by The newsLINK Group LLC for VADA and is the official publication for the association. The information contained in this publication is intended to provide general information for review and consideration. 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 specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the 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. Virginia Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of VADA. While VADA and The newsLINK Group encourage 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 newsLINK Group at (855) 747-4003. CONTENTS 2024 Pub. 5 Issue 4 Virginia Automobile Dealers Association A Message From President and CEO Don Hall 4 Community Colleges: The Key to Automotive’s Workforce Challenges 6 VADA PAC United as One for the Franchise System 8 Tune In to VADA LIVE 10 Backing Technicians and Service Departments With 2025 Virginia Legislation 12 Dealer Day at the Capitol 2025 13 VADA ‘25 18 4 14 14 Plan Now for a Smooth Business Transition Later Learn Strategies to Avoid 7 Common Pitfalls When Preparing for Dealership Transition By Duncan Moseley, Managing Director in the Center for Family Legacy at Truist, and Stacey Prince-Troutman, Partner and Chair of the Trusts and Estates Practice at Akerman LLP 18 Checkup Time! How To Avoid Burnout 20 Leadership 21 Thank You VADA Allied Members 22 Thank You VADA Program Partners vada.com 3
Community Colleges: The Key to Automotive’s Workforce Challenges In late 2024, I was fortunate to join Virginia Community College and state leaders for a workforce development bus tour of East Tennessee’s successful career and technical programs at their own community colleges. I was the invited guest of my friend, Tazewell Sen. Travis Hackworth, and attended alongside Virginia Community College System Chancellor David Doré, Ph.D., representatives of several regional community colleges and other lawmakers. Southwest Virginia Community College hosted the tour, and I thank their president, Dr. Tommy Wright, for bringing us together. It was a long but worthwhile day, visiting three Tennessee community colleges to learn more about our neighboring state’s successful education system, learn best practices and benchmark Virginia’s own workforce development operations. Tennessee has made career and technical education (CTE) a top priority. And the investment is paying off. Their support for community colleges was evident. Their recent governors prioritized funding and resources for the schools, in turn creating robust programs, credits and certifications that feed young men and women directly into promising and in-demand career fields. Tennessee has championed its community colleges and recognized that vocational training is a critical part of our society (and, to be sure, so has Virginia). Tennessee’s partnerships across the state, local industry and educational A MESSAGE FROM PRESIDENT AND CEO DON HALL institutions have made it a model for how career training and technical education can look. And that includes automotive training. Many Tennessee schools have partnerships with industry professionals, such as the Volkswagen plant in Chattanooga, which regularly provides the latest internal combustion and electric vehicles for students to develop their hands-on skills. Seeing what was happening in Tennessee was a reminder of what we could bring back to Virginia. For our state to excel, we need a similar model where community colleges are valued by society and not considered “less than” a four-year institution. And for us to succeed as an industry, we must ensure more dealers get involved with Virginia community colleges. VADA will take the lead to help develop these relationships and ensure the schools also have close relationships with Automotive Service Excellence (ASE) to help students join the more than 250,000 people who hold ASE certifications. We need many more, and we need dealers’ help to get there. In Virginia, we must give more people who don’t have the option of earning a four-year college degree — due to money, grades or interest — an opportunity where they can go to school, continue to work and remain close to 4 Virginia Auto Dealer
home. Virginia must recommit to its community college system. We need more support for instructors, updated equipment and a fresh approach to how we prepare young people for high-tech, skilled careers. We must work harder to provide opportunities for economic mobility for all Virginians. I spoke with Chancellor Doré, and it is clear the community colleges and dealers share a mutual interest in providing life-changing opportunities to kids and meeting the needs of the Commonwealth’s business — and retail automotive — community. Virginia’s dealers have a role to play — whether through advisory councils, apprenticeships or financially supporting automotive programs. Ultimately, investing in community colleges is about giving back to the industry that has given so much to us while building a capable, local workforce ready to support Virginia’s automotive future. ULTIMATELY, INVESTING IN COMMUNITY COLLEGES IS ABOUT GIVING BACK TO THE INDUSTRY THAT HAS GIVEN SO MUCH TO US WHILE BUILDING A CAPABLE, LOCAL WORKFORCE READY TO SUPPORT VIRGINIA’S AUTOMOTIVE FUTURE. HOW CAN VIRGINIA DEALERS GET INVOLVED? VADA Field Rep. Pat Martin and General Manager Bruce McGeorge are leading our effort to forge new relationships between dealers, community colleges and ASE certification. Contact Pat at pmartin@vada.com or Bruce at bmcgeorge@vada.com to get started. In addition to the community college bus tour, Don also joined Sen. Travis Hackworth for an elk tour in Tazewell County. vada.com 5
vadapac.com VADA PAC United as One for the Franchise System Virginia dealers fiercely compete with one another. But when it comes to politics, they are united as one under the Virginia Auto & Truck Dealers Political Action Committee. Auto dealers support pro-business, pro-dealer candidates regardless of political affiliation. Our support gives us access to candidates and lawmakers to share our stories and discuss the important issues impacting the auto industry. We need every member of VADA to contribute to our PAC, including dealership owners, general managers, dealer operators, parts and service directors, finance and insurance managers, and used/new car managers. Whether you are an owner, GM or principal, give to the PAC. Forward this message to your leaders and have them give, too. Even a few dollars from sales or service members is appreciated. If every one of Virginia’s 61,000 retail automotive employees gives, consider the impact. INVEST IN YOUR FUTURE BY CONTRIBUTING TO THE VIRGINIA AUTO & TRUCK DEALERS PAC Our dealerships rely on a strong, united voice to tell our story to elected officials who craft the regulatory rules of the road impacting our stores. Every dealership role, from owners and general managers to salespeople and technicians, depends on the pro-business environment that comes from supporting candidates who value the work our industry does every day in keeping customers on the road, creating jobs and serving as an economic engine for Virginia. Securing pro-dealer laws and regulations takes hard work, and it’s a fight we can’t win unless we have your investment to help elect candidates who support our industry. Please give to the Virginia Auto & Truck Dealers PAC and help us continue on the road to success. 6 Virginia Auto Dealer
Everyone wins when your dealership simplifies and streamlines registration and titling workflows. Your team finalizes more deals with ease, your dealership realizes revenue gains when fast title release drives quick trade-in turns, and your customers drive away with a great last impression to boost CSI. Only Dealertrack offers a complete suite of reg and title solutions backed by Cox Automotive to simplify the complex and send profits soaring. User-friendly reg & title Today’s customers want to be in and out of your dealership as fast as possible. You can simplify and streamline deal finalization with digital solutions that help your team catch errors, drive accuracy, and complete and submit paperwork directly to the Virginia DMV in under 4 minutes1. Customers are happier when you get the deal out the door faster — and that’s reflected in higher CSI. Smooth cross-border deal finalization Your dealership may hesitate to take on the complexity of out-ofstate reg and title transactions. Yet with the right technology, your team can navigate each state’s specific reg and title requirements quickly and accurately with deal checklists, while driving the best deal forward via key connections to every state DMV nationwide. Straightforward trade-in title release Used vehicle shoppers often find a shortage of options when it comes to selecting their best-fit vehicles. Getting trade-ins front-line ready fast is vital to boost your inventory and keep your cash flowing. Yet it typically takes 20 days or more to get a clean lien and title for vehicles taken in on trade. An expedited trade-in titling solution can streamline your process, helping you gain liens and titles up to 70 percent faster2. Shoppers get more vehicle choice, and you optimize your process to help keep your cash moving. Simplify your way to business growth Backed by the power of Cox Automotive, Dealertrack’s complete suite of registration and titling solutions can help you simplify your way to business growth. Simplify your way to business growth today. Schedule a no-obligation call with Kim Haddaway, regional sales manager for Virginia, to discuss how Dealertrack solutions streamline workflows to send profits soaring. Simplify Your Way to Profitability Streamline reg & title workflows with Dealertrack. 1 Dealertrack User Timing report through Google Analytics 1/1/2023 to 12/31/2023. 2 Based on average industry timeframe for vehicle title release and vehicle payoff process of 18+ days, as determined by 2023 Dealertrack data. <4min submission of in-state transactions1 70% faster payoff, lien and title release2
Tune In to VADA LIVE VADA LIVE is our newest digital media platform, bringing Virginia’s dealer community timely, relevant insights through live and recorded interviews, trainings and in-depth conversations with industry leaders. Check out one of our first episodes with guest Brian Finkelmeyer, senior director of enterprise insights and advisory at Cox Automotive, to unpack the latest trends shaping automotive retail. To watch the video, scan the QR code. vada.com/live/ BECOME AN OFFICIAL VADA LIVE EXPERT As we grow our online video and podcasting platforms, we’re always looking for the best and brightest dealership leaders from across all departments to share their insights: the things that work, the things that don’t, future trends, best practices and more. Make your voice heard and together, let’s build an even stronger dealer body in Virginia and across the nation. Scan the QR code and fill out the form to become a VADA LIVE Expert! forms.gle/axf5fvUfVhQ89H4H8 8 Virginia Auto Dealer
Keith A. Laudenberger, CPA klaudenberger@cbmcpa.com Councilor, Buchanan & Mitchell’s automotive dealership accounting team is your trusted partner in achieving your financial goals. Our professionals are experienced leaders with a deep comprehension of the challenges and opportunities faced by the automotive industry. Contact us today if you are ready to experience personalized service. cbmcpa.com 301.986.0600 7910 Woodmont Ave, Suite 500 Bethesda, MD 20814 John R. Comunale, CPA jcomunale@cbmcpa.com STEERING YOUR FINANCIAL SUCCESS IS OUR BUSINESS Tax Planning & Preparation Cost Segregation Analysis Mergers & Acquisitions Audits, Reviews & Compilations Business Process Review Succession Planning LIFO Inventory Fraud Prevention Buy/Sell Agreements Business Valuations Financial Planning Wealth Management Our Services: vada.com 9
Backing Technicians and Service Departments With 2025 Virginia Legislation Don’t pay the same labor rate as retail LEGISLATION Artificially reduce the amount they claim is required for labor FAIR REIMBURSEMENT TO BUSINESSES FOR WARRANTY & RECALL WORK When a vehicle needs a part or technology fixed that is under an auto maker’s warranty or a recall, the customer pays nothing and the dealership is reimbursed by the manufacturer. That’s where problems start for small businesses. MANUFACTURERS MANIPULATE AMOUNTS PAID FOR WARRANTY AND RECALL REPAIRS. THEY: HOW DOES THIS IMPACT DEALERS? They are forced to pay their technicians less for warranty/recall repairs, or supplement their pay and allow the manufacturer to shift the costs of their product quality issues to the dealer. HERE’S HOW VIRGINIA FIXES THE PROBLEM. VADA’s legislation brings Virginia in line with other states, adjusting the law to rely on a statutory calculation to determine a retail amount that manufacturers reimburse dealers. The bill also addresses pricing parts manipulation, prohibiting auto makers from reducing the price parts used in a recall repair. The part will be pegged to its highest price in the last 12 months. HOW DOES THIS IMPACT CONSUMERS? Higher prices when paying retail. Auto technicians should be paid for increased time spent communicating with manufacturers on increasingly complicated repairs. Dealers should also be quickly compensated when required by the manufacturer to provide a rental vehicle to customers during warranty/recall repairs. Our bill has no impact on consumers, and in fact ensures costs are not passed on to Virginians. Control part prices and alter them to reduce costs As the unified voice of Virginia’s franchised auto dealerships, VADA’s top priority is advocating for policies that support businesses, employees and consumers. This means we are active every year in the Virginia General Assembly, which convenes each January. VADA maintains year-round relationships with lawmakers on both sides of the aisle. Sometimes, our legislation is focused on the dealership operation as a whole, as it was in 2022 when we advocated for stronger protections to the franchise system from direct-sales models. Other times, we hone in on an issue on the sales side or back in F&I. This year, we are supporting an issue with service teams as we work to pass statutory changes in how dealers work with manufacturers on warranty and recall repairs. The following is an overview. 10 Virginia Auto Dealer
fair pay for businesses and technicians In 2022, Virginia Code changed to address the determination of retail compensation to dealers for warranty and recall repairs. VADA originally proposed removing the term “reasonable” as a qualifier for the retail amounts. We compromised and amended the language of that legislation related to the reasonableness of repairs. It still allows a manufacturer to challenge a dealer’s requested amounts, while establishing a presumption that the manufacturer must overcome that the dealer amount, as calculated according to statute, is reasonable. We did not include that it must be overcome by clear and convincing evidence, as originally drafted. However, manufacturers now routinely deny dealers their full retail amounts by simply stating that another facility charges less. This is all manufacturers offer to overcome the presumption. What the bill does: Bringing Virginia in line with other states, the bill removes the “reasonable” qualifier and relies on the statutory calculation to determine a retail amount. DETERMINATION OF RETAIL COMPENSATION Dealers are compensated for both labor and parts. Manufacturers routinely slash the price of parts to pay dealers less. Price manipulation unfairly shifts the cost of auto maker quality issues to dealers. Additionally, manufacturers often prohibit a dealer from returning parts that the dealer does not use. This leaves the dealer with obsolete inventory. They are then forced to limit parts on hand to quickly fix their customer’s vehicles or risk losing money on parts they can never return. What the bill does: Stops manufacturers from arbitrarily reducing the price of a part that will be used in a recall (or recall-like) repair. The bill establishes the price of the part as the highest price in the last 12 months. Dealers would also be allowed to return unused parts. PARTS PRICING MANIPULATION Vehicle technology has changed. Dealers have seen an uptick in the time dealership techs spend troubleshooting repairs with manufacturers. An automotive technician cannot work on another vehicle while waiting on the phone for an answer to a problem. What the bill does: Guarantees techs are compensated for time spent waiting and communicating with a manufacturer for assistance related to a warranty or recall repair. FULL PAYMENT FOR DIAGNOSTIC TIME Manufacturers sometimes require dealers to provide a rental for customers to use during a repair. In 2022, the General Assembly passed legislation requiring full reimbursement to dealers for the rental cost. While some manufacturer policies still do not provide full reimbursement, we are not addressing that issue for now. However, a related problem has arisen. Given the unusually long delays in parts availability, which prevent dealers from making necessary repairs for weeks, months, and even years. Dealers are not reimbursed for the rental expenses until the repair is complete and the warranty claim is filed. When a customer drives a rental for an extended time before a warranty repair can be completed, the dealer carries a large expense. What the bill does: Allows a dealer to request reimbursement for rental expenses incurred with 30 days of paying for a customer’s rental. PAYMENT TIME OF RENTAL REIMBURSEMENT REIMBURSEMENT FOR WARRANTY & RECALL WORK vada.com 11
Dealer Day at the Capitol 2025 Dealership leaders are encouraged to join the VADA legislative team on Wednesday, Jan. 29, for Dealer Day at the Capitol in Richmond. The event begins at the Hilton Richmond Downtown, where we’ll review the issues before walking to the General Assembly Building in Capitol Square to meet with lawmakers. Our goal is to help them understand the value of the franchise system and address matters important to your business. We encourage someone from every dealer group or store to attend. If you’ve never attended a VADA Dealer Day event or feel that politics is “out of your comfort zone,” there is no better reason to attend. Speaking to lawmakers is not required; just your presence helps. Use this day to learn from others and get involved to advocate for pro-dealer, pro-business initiatives. Registration is free. We only ask for your time and knowledge. Scan the QR code to register today! vada.com/event/dealerday 12 Virginia Auto Dealer
vada.com/convention vada.com 13
Plan Now for a SMOOTH Business Transition Later Learn Strategies to Avoid 7 Common Pitfalls When Preparing for Dealership Transition By Duncan Moseley, Managing Director in the Center for Family Legacy at Truist, and Stacey Prince-Troutman, Partner and Chair of the Trusts and Estates Practice at Akerman LLP It can take years — or generations — to build a thriving auto retailing enterprise. The complexities can make a smooth transition to the next generation challenging, but addressing key concerns and problem-prone areas today will make the transition easier down the road. Getting started early on structuring can help ensure a more seamless transfer and the continued success of your business. NO ONE-SIZE-FITS-ALL APPROACHES A business transition ideally occurs when the right conditions align in 1) the market, 2) the business and 3) timing for the owner. In the real world, dealers must balance these elements, making tradeoffs based on what’s possible and how flexible they’re willing to be on payout and timing. A long runway allows you to better coordinate the timing and address other potentially thorny issues to ensure a smooth and rewarding exit. While every dealership is different, certain shared characteristics make transitions particularly tricky: • Multi-layer structures. Auto retail businesses often have several value drivers, such as real estate, new and used car sales, parts and service revenues, and F&I profit participation funds, among others. Many long-established businesses have real estate and business investments throughout the community. • Multi-generational and minority operating partner involvement. Dealerships often have immediate and extended family, along with operating partners with minority ownership stakes, in various roles, from active dealership management to passive ownership. • Hardworking owners. Owners who’ve invested years into building a business look forward to enjoying an active, well-funded retirement. In our experience, car dealers are among the most passionate about staying in the business for the long term. • Tax concerns. Dealer businesses and estates need to be properly structured to minimize tax liabilities and preserve wealth. • OEM relationships. The OEM, with its operational and investment requirements, functions as another “partner” in the business. Involving the OEM in the succession planning process can help maintain a strong relationship post-transition. Reaching the transition outcomes you want for your business, your family and yourself hinges on how you’re able to get ahead of and manage these issues effectively. 14 Virginia Auto Dealer
AVOID THESE 7 COMMON TRANSITION PITFALLS 1. Suboptimal Business Structure Structure the business and its assets efficiently — this is of key importance in maximizing wealth transfer, as well as stabilizing the business through any transition. Though your immediate focus may be on day-to-day operations, your business grows increasingly complex as you add dealerships, real estate corporations, reinsurance corporations and, perhaps, a management or holding company. Save time and expense in accomplishing your estate goals by getting guidance from a trust and estate planning attorney early in the lifecycle of your business. A well-designed business structure not only provides significant tax benefits but also lays a solid foundation for effective, ongoing management and governance of all the entities that make up your business. If the business is intended to pass generationally, you can also minimize or even eliminate any estate tax burden that may be placed on the business and, therefore, better secure the continued success in the next generation. 2. Untimely Tax Planning It’s impossible to overemphasize the importance of conducting early estate planning long before you exit the business — it’s the most important tactic for achieving tax-efficient wealth transfer. If the business’ valuation is significant, then planning for adequate liquidity when the estate passes is a primary concern. Starting a transition without a plan in place means fewer opportunities to minimize your tax exposure, including: • Leveraging the estate tax exemption. • Putting valuation discounts in place. • Considering trust structures to meet your estate planning goals. • Passing wealth, through gifting, to lower the taxable estate value. It’s important to proactively work with your Truist dealer relationship manager and wealth advisor on plans related to trusts. In addition, experienced estate attorneys and financial advisors can help you capitalize on every occasion to reduce the tax burden as you transfer ownership. 3. Last-Minute Gifting Another tax-saving strategy is to gift while you’re still operating the business. Waiting until the last minute may reduce the likelihood of achieving the best transfer outcomes for you and your family. To create a plan that fits your age, where you are in the business lifecycle and the level of involvement you want going forward, ask: • What are your motivations and goals around transition? • What income do you need to maintain your desired lifestyle? • What other assets and income streams do you have? vada.com 15
A qualified estate planning attorney, accountant, financial advisor and banking relationship manager can work as a team to design a gifting strategy that achieves the tax benefits and succession outcomes you want and to set up the level of continued income and involvement that you desire. As maintaining control is a primary consideration for most of our owners, consider the transfer of non-voting interests and retaining voting interests. This can provide you with flexibility if business or economic shifts occur. Moreover, explore different trust structures. For instance, an irrevocable life insurance trust can be designed to achieve tax-free wealth transfer and provide liquidity for payment of estate tax to the extent that any portion of the retained business interest is included in your estate. 4. Contentious Family Dynamics Transition planning forces leaders to make tough choices that may lead to dissent among family members. It may be tempting to let it unfold once you’ve stepped aside, but it’s best to address these issues upfront for the sake of your family and your business. Strong emotions, old resentments and challenging personal relationships can complicate planning and transition. These situations often present themselves in blended families, when there are longstanding rifts within a family and when some children are engaged in the business while others are not. Bypass sentiment and think objectively about who is best qualified to assume leadership of the family enterprise. It may be best to determine now whether business ownership can be shared with all family members or if ownership needs to be held within a smaller subset of the family to provide the best chance of continued success. If an owner’s primary goal is continued family harmony, then a decision may need to be made to transition the business prior to the owner’s passing if issues resulting from complicated family dynamics cannot be resolved. With solid reasoning behind your choices, you’ll be better prepared for those potentially uncomfortable conversations. 5. Psychological Resistance Dealers sometimes hesitate to start transition planning, slowed by conscious or unconscious concerns regarding: • Uncertainty about what legacy they wish to leave. • Discussions of their own passing. • Loss of identity (“the business is who I am”). • Loss of the leadership role in the family. • Loss of the primary income stream. • Loss of control. Consider your long-time employees, your management team, your business partners and your family. Crafting strategies that are fair to each person is a daunting task. Tackling such an undertaking means contemplating handing over a business you’ve worked hard to nurture and grow, which can keep you stuck on the starting block. These doubts and anxieties can become paralyzing, but it’s important not to let them delay or prevent progress on your transition planning. If it starts to feel overwhelming, remind yourself that you don’t have to get it perfect right now. Start the process where you are today. You can improve your plan over time, adapting it as your vision and goals for your post-transition life evolve. 6. Delays in Seeking OEM Approval Getting OEM approval needs to be part of your exit planning process. As dealer groups become more complex, the OEMs typically want to see more documentation and have a say in the plans of the business. While it’s not likely to pose a problem, OEMs are more curious about the details of dealers’ succession plans than they once were. Here again, timing is paramount. Start the process early to make sure the OEM is on board with your plans. They may request that you structure the succession plan with a ramp-up period to get comfortable with the successor you’ve chosen. 7. The Worst-Case Scenario: No Transition Plan To prevent chaos in the event of an untimely death, even young owners need a succession plan. Not having one could create a daunting tax liability for your family and threaten the continuity of the business. A well-constructed plan will address existing contractual and shareholder agreements to build a path for successors without any financial fallout for the business. That includes addressing the inheritance split if one child never worked a day in your dealership and the other has devoted their life to it. You want to make sure your family won’t be forced to sell at fire sale prices and will be able to continue with minimal conflict or lingering feelings of inequity. To achieve the best outcomes for everyone involved, prepare for the unexpected by getting a plan in place and continuing to refine it. Special thanks to Stacey Prince-Troutman, partner and chair of the Trusts and Estates Practice at Akerman LLP, for her contribution to this article. To learn how Stacey and her firm can help your dealership, she can be contacted at stacey.prince-troutman@akerman.com. Truist Bank, Member FDIC. ©2024 Truist Financial Corporation. Truist, the Truist logo and Truist Purple are service marks of Truist Financial Corporation. Equal Housing Lender. 16 Virginia Auto Dealer
Several times throughout the year, it’s important to slow down, take a deep breath and evaluate ourselves, our processes and our results. Whether we call it a checkup or a self-assessment, taking the time to evaluate your work provides a fresh perspective, creates a path for improvement and helps us to set goals. Burnout can occur when we fail to take the time to analyze our daily work habits, so let’s do what we can to prevent it! To ensure we stay on the right path, here are three things we should be checking up on regularly. 1. CHECK YOUR EXPECTATIONS Expectations that are too high or too low can cause frustration and a sense that the results we seek are unattainable and out of our control. Setting realistic and measurable goals is a great way to keep ourselves and our expectations in check. Instead of setting a specific number to reach, we must set the steps and activities that will produce what we expect. Practicing the process, researching areas of focus and overcoming common objections we hear from customers will bring about change and improvement. Our numbers never define us; our habits do. So inspect what you expect. Checkup Time! How To Avoid Burnout 18 Virginia Auto Dealer
2. CHECK YOUR FEEDBACK We have entered a world where everyone is guided by feedback. It’s not just a cultural phenomenon; it’s a discovery that everything improves when we look at it from the eyes of others. So be open to feedback, and in fact, you should welcome it! The best and most profitable ideas often come from customers, leadership and, at times, from the most unsuspecting places, like role-play. Role-play can be one of the most productive uses of our time. It provides an opportunity for fellow employees to look at what we do and tell us one thing we can do better. The name of the game is constructive feedback. The cumulative effect of this feedback can bring about tremendous improvement and cause us, and our teams, to reach levels we could never achieve by ourselves. The most successful individuals and companies are top-performing because they have honed the power of feedback. We must check to ensure we are listening to feedback and using it to improve. 3. CHECK THE CLOCK In our increasingly busy world, time has become a commodity more important than money! For example, it is easy to focus on the total time a customer is in the F&I office and try to hurry through the process to shorten it in hopes of eliminating any frustrations for them. However, customers are not frustrated with the amount of time spent in the office but rather how that time is spent. If customers gain insightful information and are able to ask questions to understand how a product will help them, they’ll have a better ownership experience, time will fly by and the second hand on the clock will be less concerning. A good goal to set is for every customer to leave the office feeling that their time was respected and they were enlightened. If we are making a point to be fully present in our conversations, listening to others with purpose and sharing relevant information to provide an understanding, our customers will have a better experience! It’s all about what we are doing with the time as the clock moves each day! Regular checkups always produce better results and a better future. You will never be sorry that you took a moment to take a step back and evaluate yourself. This applies to teams and individuals. So, give yourself a checkup and watch as you become the efficient, successful and fulfilled worker everyone strives to be! vada.com 19
VADA Executive Committee Dan Banister Chair Banister Automotive Roger Keller Vice Chair Sheehy Auto Stores Eley Duke Treasurer Duke Chevrolet GMC John Altman Secretary Beyer Auto Group Don Hall President David Dillon Immediate Past Chair Southern Auto Group Tim Pohanka Legislative Chair Pohanka Nissan Hyundai Chris Lindsay PAC Chairman Lindsay Automotive VADA Board of Directors John Altman Beyer Automotive Group Conrad Aschenbach Front Royal Ford LLC Daniel Banister Banister Nissan of Chesapeake Andy Budd Country Chevrolet Harry Carrion Haley Automotive Zachary Cochran Whitten Bros Chrysler Dodge Jeep Mazda Mark Dalton Terry Volkswagen Subaru David Dillon Southern Team Auto Group Eley Duke Duke Automotive Eric Flow Flow Motors Don Hall Virginia Automobile Dealers Association LEADERSHIP Josh Hamilton Checkered Flag Motor Car Co. Tanner Hulette Mechanicsville Toyota Cameron Johnson Magic City Ford Lincoln Isuzu Roger Keller Sheehy Auto Stores Steve Klimkiewicz Cavalier Ford Lincoln Ashton Lewis, Jr. First Team — Automotive Chip Lindsay Lindsay Management Co. Chris Lindsay Lindsay Chevrolet Ross Luck Luck Chevrolet Thomas Mohr Highway Motors Jeff Owens Southern Auto Group Michael Patrick Patrick GMC Tim Pohanka Pohanka Nissan Hyundai Rachel Pullen Safford Brown Michelle Radley Radley Automotive Group Jake Sodikoff Steven Nissan Michael Suttle Suttle Motor Corp. Matthew Walsh Carter Myers Automotive Virginia Motor Vehicle Dealer Board Alexis Barker-Taplett Mercedes-Benz of Virginia Beach Thomas Bates RK Chevrolet Inc. Tom Barton Beach Ford and Barton Ford Dennis Ellmer Priority Automotive Group Chip Lindsay Lindsay Volvo Cars of Alexandria Timothy Pohanka Pohanka Nissan of Stafford LLC VADA Group Self-Insurance Association Board of Directors Cole Balderson Ourisman Automotive of Virginia Burt Brenner Lindsay Lexus of Alexandria Chris Brown Haley Automotive Penny Burch Magic City Ford Lincoln Isuzu Gerald Duncan Duncan Ford Chrysler Dodge Jeep Don Hall Virginia Automobile Dealers Association Adam Johnson Johnson Family Chevrolet Fred Kirschbaum Checkered Flag Motor Car Co. Ralph Mastantuono American Service Center Associates Benji Nowak Ted Britt Ford Lincoln Michelle Radley Radley Automotive Group Chris Strosnider Strosnider Chevrolet Rich Tritel Carter Myers Automotive HRADA Officers Pat Fields President Wynne Ford Volvo Gerry Reust Vice President Cavalier Ford Heath Wynn Treasurer Hall Auto Group Mike Owen Secretary Southern Auto Group Rebecca Wilson Immediate Past President Checkered Flag Audi HRADA Board of Directors Jarryd Carver Winners Circle Auto Group Brian Clark Charles Barker Mercedes-Benz Tom Ellmer Priority Auto Group Jim Hernandez Priority Honda Dave Lawson CMA Williamsburg Ford Cameron Shaw Southern Auto Group Allied Member Bryan Dougherty ACV GRNCDA Board of Directors Keith Hightower Chairman Pearson Honda Zach Cochran Vice Chairman Whitten Brothers Harry Carrion Secretary/Treasurer Haley Automotive Michael Patrick Immediate Past Chairman Patrick Buick GMC Brenton Evans Audi Richmond Kayla Kody Richmond Ford 20 Virginia Auto Dealer
Accumatic Inc. Ally Financial Atlantic Union Bank AutoFi Baker Tilly US LLP Bank of America — Merrill Lynch BDO USA LLP BG Products & Services Blue Whale EV Brightline Dealer Advisors Brown, Edwards & Co. CBIZ Charapp & Weiss Chase Dealer Services Computerized Vehicle Registration Core 22 Design Build Core Assurance Councilor, Buchanan & Mitchell, PC Diamond Dealer Services DLRdmv Dominion DMS DSMA Dynatron Software Ethos Group Forvis Mazars Foti, Flynn, Lowen & Co. Fulton Bank GM Financial GPW & Associates Inc. Greensboro Auto Auction Haig Partners JM&A Group Kerrigan Advisors KPA M&T Bank Manheim Fredericksburg Manheim Harrisonburg PDP Group Pinnacle Bank PMA Management Corp. Protective Asset Protection QoreAI Quantum5 Safepoint GPS Strategic Source TowneBank True Car Truist Bank United Bank Wells Fargo Dealer Services VADA ALLIED MEMBERS THANK YOU! Jeffrey McMillion, PNC Bank - Dealer Finance 615 Third Avenue South, Suits 604 Nashville, TN 37210 (878) 208-2099 | jeffrey.mcmillion@pncbank.com Daniel P. Cannaday, VP, PNC Bank - Dealer Finance 1 E. Pratt Street Baltimore, MD 21202 (443) 605-7334 | daniel.cannaday@pncbank.com vada.com 21
ACV is investing in game-changing technologies and world class people to improve the wholesale process for all dealers. They provide unbiased vehicle information that is unparalleled in its transparency. Their inspectors complete comprehensive condition reports on fresh vehicles, right at the seller’s lot. Cintas leads the industry in supplying corporate identity uniform programs, providing entrance and logo mats, restroom supplies, promotional products, first aid, safety, and fire protection products and services. Learn how Cintas’ solutions can benefit your sales and service departments at cintas.com. Forget the forms, binders, spreadsheets, folders, manual audits and training sessions. Compliance is automatically performed, logged and demonstrated in one simple platform. They’re not just another software company. They’ve actually worked at dealerships and have spent their entire legal and compliance careers in the automotive industry. You can receive optimal results for your parts warranty uplift. Just outsource the process to Armatus. Hand the entire retail warranty process to them, and you won’t have to lift a finger. Plus, there are no upfront fees — Armatus doesn’t get paid until you do. Dealertrack Technologies offers a cutting edge web-based registration and titling solution developed with input from dealerships across the Commonwealth. They are the only registration and titling company endorsed by VADA. Digital Air Strike is the leading social media, intelligent lead response, consumer engagement and customer experience (CX) technology company helping over 7,700 businesses increase consumer response and conversions by leveraging patented AI-powered digital technology that generates measurable ROI. A pioneer in digital response, social media marketing technology and online reputation management solutions, Digital Air Strike deploys industry-specific mobile apps, software, intelligent messaging and consumer engagement platforms to monitor, respond, improve and convert more consumers into customers for thousands of businesses in the United States. More information about the company is available at www.digitalairstrike.com. As specialists in the antitrust settlement field, DCap makes antitrust claim filing easy for businesses, navigating the inherent complexities of the process and maximizing claim refunds for its clients. For nearly a decade, DCap has provided premier settlement education, guidance and ongoing support, resulting in millions of dollars recovered, for thousands of businesses. VADA PROGRAM PARTNERS THANK YOU! Directly from state registrations, Cross‑Sell Interactive® vehicle data provides insight into customized local markets to help dealerships and dealer partners create strategies for increased market share. Cross‑Sell reports provide in-depth views of local automotive sales, registrations and trends. VADA regularly publishes articles and news from our Program Partners. It’s content that makes you a more informed dealer. Find it at vada.com/news. For more information on our programs, contact Natalie Toler at ntoler@vada.com. 22 Virginia Auto Dealer
DMS allows dealers to take advantage of federal law to greatly diminish their expenses with credit card processing fees, typically between 75%–95%. DMS can save some dealers well over $100,000 per year in fees. Find out how at dealermerchantservices.com. Promote your business, reduce compliance risk, manage data and keep your office inventory stocked with Reynolds Document Solutions. Hilb Group comes to work each and every day to ensure they have you covered. They take pride in providing sound advice to all of their clients. Hilb Group’s job is not done until you have complete peace of mind that you and your employees are receiving the best benefits and service available. MOC® is a leading provider of innovative products and solutions to the retail automotive industry. Their program is designed to provide new car dealers the ability to buy necessary products, tools and equipment at manufacturer direct pricing, but also receive unprecedented local and regional service and support. One Source Wonderful! Your local, one‑stop shop for all departments supply needs! In 2010, Co-Founders Adam Robinson, Michael Krasman and Jeff Ellman reinvented the hiring process, empowering businesses to ditch their filing cabinets and manilla folders in exchange for an intuitive, technology-based hiring process. Management consulting, human resource management and labor relations. For more information visit sescomgt.com. Zurich F&I professionals can help you increase product penetration, per vehicle retail, and customer satisfaction. They currently work with more than 100 Mid-Atlantic dealers, helping them build relationships with their customers and increase product sales. As the provider of Connect CRM, a leading dealership customer relationship management system, VinSolutions helps more than 5,000 dealers make every connection count. VinSolutions products integrate dealership systems, processes and tools to deliver a single view of the customer across the business. RockED’s mobile learning platform turns employees within minutes into customer‑centric high-performers. The app allows for learning anytime, anywhere, through a mobile solution. Lessons are based on competencies and include highly relevant, industry-specific audio-visual content delivered by industry leaders. Learn more at rocked.us. Sqwire’s mission is to help low- to moderate-income families realize their financial promise by providing financial education that is hopeful, respectful and fun. Financial education includes topics that build a solid financial foundation, using tools created specifically for today’s adult learners and quizzes, and detailed reporting ensures clients meet their goals. Learn more at getsqwire.com. vada.com 23
This magazine is designed and published by The newsLINK Group LLC | (855) 747-4003 1800 W. Grace St. Richmond, VA 23220 Virginia Automobile Dealers Association © 2024 Truist Financial Corporation, TRUIST, Truist purple and the Truist logo are service marks of Truist Financial Corporation. All rights reserved. Truist Securities is the trade name for the corporate and investment banking services of Truist Financial Corporation and its subsidiaries. Securities and strategic advisory services are provided by Truist Securities, Inc., member FINRA and SIPC. | Lending, financial risk management, and treasury and payment solutions are offered by Truist Bank. | Deposit products are offered by Truist Bank, Member FDIC. We’re more than a financial partner. We’re an invested one. True relationships matter. We don’t take this lightly. The best are built on a deep understanding of your short- and long-term goals and always backed by thoughtful, strategic advice in support of your vision. With full-service financial solutions and a deep bench of industry expertise, we’ll build a team around your organization to focus on your success. So, let’s drive further—together. To learn more, visit us at Truist.com/DealerServices.
www.thenewslinkgroup.orgRkJQdWJsaXNoZXIy MTg3NDExNQ==