OFFICIAL PUBLICATION PUB. 3 2023 ISSUE 4 2024 TIME Dealer of the Year Nominee NANCY SPARKS
©2023 Kentucky Auto Dealer | The newsLINK Group, LLC. All rights reserved. Kentucky Auto Dealer is published four times each year by The newsLINK Group, LLC. for Kentucky Auto Dealer 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 Kentucky Auto Dealer 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. Kentucky Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of the Kentucky Auto Dealer Association. While the Kentucky Auto Dealer 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. CONTENTS 6 10 22 4 PRESIDENT’S MESSAGE Reflecting on the Victories of 2023 By Jason Wilson 6 2024 TIME Dealer of the Year Nominee Nancy Sparks 10 KADA District Meetings Recap 11 Thank You KADET Members! 12 End-of-Year KADA Board & Executive Committee Meetings 14 Buy-Sell Success in 2024 By Jennifer Rafael, DSMA 16 SAVE THE DATE! The Annual KADA Golf Tournament 17 Thank You to Our 2023 Executive Committee 17 Welcome 2024 KADA Board Members 18 How to Build a ConsumerFriendly Service Experience That Is Efficient By Sharon Kitzman, Dominion DMS 20 Kentucky Horsepower 2023 Year-End Review with KADA Chairman Joe Cummins 21 SAVE THE DATE KADA Legislative Reception 22 Motion to Stay the FTC’s Vehicle Shopping Rule 24 KADA Preferred Partner Programs 26 Mark Your Calendars for Our 2024 KADA Family Convention! WWW.KYADA.COM 3
PRESIDENT’S MESSAGE JASON WILSON Dear Kentucky Dealers, I hope you enjoyed the holiday season and the time to connect with loved ones. It’s hard to believe yet another year has come to a close. As we reflect on 2023, I’m proud of all that we’ve accomplished together as an association and dealer body. Over the past year, the automotive industry in Kentucky has experienced significant change, growth, collaboration and advocacy. Just the past few months at KADA have been filled with noteworthy activity. In October, we hosted our Annual District Meetings across the state in Lexington, Louisville, Northern Kentucky, Lake Barkley and Bowling Green. We had some very productive meetings and conversations with dealers, local legislators and vendor partners. We provided an update on electronic titling and registration in Kentucky, which we are excited to see take effect this year. Please be on the lookout for more information regarding this in the coming months. In November, we hosted our end-of-the-year Board and Executive Committee Meetings. I cannot thank our board and executive committee members enough for their support As we reflect on 2023, I’m proud of all that we’ve accomplished together as an association and dealer body. REFLECTING ON THE VICTORIES OF 2023 and participation this past year. I’d like to especially recognize Chairman Joe Cummins, who has been an instrumental leader in our association and dealer body. Thank you, Joe. I look forward to working alongside our new board members for 2024 as well as incoming Chairman David Moore of Moore Ford Chrysler Dodge Jeep Ram. We’re excited to see even more growth in 2024! We also welcomed Sarah Bishop to the KADA team as Vice President of Legislative Affairs. In her role, Sarah will be advising on compliance, corporate governance and regulatory issues, as well as the negotiation of contracts. She will supply guidance on best practices, serve as legislative counsel and provide effective representation in the courts as necessary. We’re thrilled and fortunate to have her! As we look ahead into 2024, I’m excited for what the year will bring. If there is one thing that is constant in our industry, it is change. From EV mandate implications to the Hyundai/ Amazon announcement to the FTC’s Vehicle Shopping Rule (i.e. CARS Rule), there are plenty of big headlines (just to name a few). Our goal as your association is to protect and promote your rights as auto dealers in Kentucky. We will continue to monitor and keep you informed of any issues that could affect your business. It’s an honor to serve such an incredible industry and group of people. As always, thank you for your support and participation. Onward! Jason Wilson KADA President 4 KENTUCKY AUTO DEALER
2024 TIME DEALER OF THE YEAR NOMINEE NANCY SPARKS Nancy Sparks is one of a select group of 49 dealer nominees from across the country who will be honored at the 107th annual National Automobile Dealers Association (NADA) Show in Las Vegas, Nevada, on Feb. 3, 2024. The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. The award recognizes the nation’s most successful auto dealers who also demonstrate a longstanding commitment to community service. Sparks was chosen to represent the Kentucky Automobile Dealers Association in the national competition — one of only 49 auto dealers nominated for the 55th annual award from more than 16,000 nationwide. “The greatest impact of my retail automotive career has been making a difference in the daily lives of my employees,” nominee Sparks said. “Getting to know them as family, giving them the financial security to raise their children and to enjoy life and helping them grow in their careers has been very rewarding.” 6 KENTUCKY AUTO DEALER
Sparks, who studied early childhood education at the University of Cincinnati in Cincinnati, Ohio, was a stay-athome mom and community volunteer when her husband, Patrick DeCastro, the founder of Kerry Automotive, died suddenly. “My automotive career began on Christmas Eve in 2013, the day Pat passed away of complications following a surgical procedure,” she said. “I was completely overwhelmed at the prospect of running 10 stores with 450 employees but decided that I owed it to our loyal, hardworking and dedicated associates to do my best to keep the company viable and moving forward.” Sparks went to work attending meetings, getting to know every employee, understanding each job function and learning the auto industry from the ground up. She listened to feedback, identified the company’s strengths and weaknesses and came up with ways to overcome obstacles. “I faced many challenges but surrounded myself with smart, loyal and honest advisors from within the team who helped me navigate this new world,” she said. “I was determined to keep my late husband’s legacy alive, our employees’ jobs secure and adapt to the ever-changing car business.” Today, Sparks continues to oversee Kerry Automotive’s 10 stores in Kentucky and Ohio, representing Buick, Chevrolet, Ford, GMC, Hyundai, Nissan, Toyota and Volkswagen. Her current husband, daughter, son and nephew are all part of her team at the dealership group. “In the past 10 years, every store has exceeded all expectations,” she said. “We have solidified our relationships with manufacturers and have established ourselves as a force to be reckoned with in the retail automotive industry.” Sparks is a champion of the Kentucky Automobile Dealers Association, where she is currently on the executive committee and has served as board chair. “The association provided me with invaluable insights from fellow dealers who share similar goals,” she said. “I have also had the privilege of representing Kentucky auto dealers in Washington, D.C., lobbying lawmakers on issues that affect our industry and business.” The bulk of her philanthropic giving and volunteer activities focus on helping critically ill children, a cause very close to her heart. “In March of 2016, my 15-month-old niece had an emergency heart transplant,” Sparks said. “I was inspired by the wonderful care she received and now try to make a difference for other children.” To that end, she supports Cincinnati Children’s Hospital, Ronald McDonald House Charities of Greater Cincinnati, the Juvenile Diabetes Research Foundation (JDRF) and the American Red Cross. “For Cincinnati Children’s Hospital, my contribution to the Cardiac Intensive Care Unit has provided funding to enhance the level of care,” she said. “In addition, I have endowed money for the hospital’s Heart and Mind Wellbeing Center, the first program of its kind in the nation.” The Cincinnati Ronald McDonald House is the largest in its network and provides housing for families whose children are undergoing treatment at an area hospital. Sparks supports the group’s Taste of Hope initiative, which supplies meals to families staying in their facility so parents can completely focus on their child’s care. “I provide one-third of the annual budget for the group’s Taste of Hope kitchen,” she said. “Our employees also volunteer there one night each month, helping to prepare over 250 meals for sick children and their families.” Sparks added, “In the past seven years, I have donated approximately $3 million to many charities and institutions that benefit the most vulnerable people in our society.” Dealers are nominated by the executives of state and metro dealer associations around the country. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan will select one finalist from each of the four NADA regions and one national Dealer of the Year. Three finalists will receive $5,000 for their favorite charities and the winner will receive $10,000 to give to charity, donated by Ally. In its 13th year as exclusive sponsor, Ally also will recognize dealer nominees and their community efforts WWW.KYADA.COM 7
by contributing $1,000 to each nominee’s 501(c)3 charity of choice. Nominees will be recognized on AllyDealerHeroes.com, which highlights the philanthropic contributions and achievements of TIME Dealer of the Year nominees. “At TIME, we are proud to uphold the decades-long tradition of honoring automotive dealers who make a positive impact and show dedication to their communities through our TIME Dealer of the Year award,” said TIME CEO Jessica Sibley. “We are excited to keep this tradition of applauding these community contributions together with our partners at Ally.” Doug Timmerman, president of dealer financial services at Ally, said, “Auto dealers nominated for the TIME Dealer of the Year award have demonstrated an unwavering commitment to not only the industry but to their respective communities through volunteerism, sponsorships, and supporting charitable causes, no matter the market climate. Whether their clients are purchasing a first car or upgrading for a growing family, these selected dealers have successfully extended their relationships beyond the showroom and have been steadfast in driving their communities forward.” Sparks was nominated for the TIME Dealer of the Year award by Jason Wilson, President of the Kentucky Automobile Dealers Association. She and her husband Timothy have five children. 8 KENTUCKY AUTO DEALER
ON AVERAGE OUR CLIENTS ADD $194,155* TO THEIR BOTTOM LINE *Parts and Labor Combined Uplift WE ARE ENDORSED/LICENSED BY 20 STATE DEALER ASSOCIATIONS WE HAVE OVER 14,500+ APPROVED SUBMISSIONS WE WORK IN 50 STATES WITH 29 MANUFACTURERS Armatus provides the industry’s only turn-key solution for Retail Warranty Reimbursement submissions. Our dedicated staff and proprietary software guarantee you will achieve an optimized result. OUR COMMITMENT TO OUR CLIENTS (866) 697-1895 info@dealeruplift.com | www.dealeruplift.com You’ve Heard the Generalities from Others Now Let’s Look at the Facts. Speed No one completes a submission faster than Armatus Data Governance Your customer information is safe with Armatus DMS Certifications Armatus is certified with all DMS providers You Will Barely Lift a Finger Armatus does all the work for you Optimization Proprietary software guarantees you the best result Fully Contingent Fee You only pay when you are approved ON AVERAGE OUR CLIENTS ADD $194,155* TO THEIR BOTTOM LINE *Parts and Labor Combined Uplift WE ARE ENDORSED/LICENSED BY 20STATE DEALER ASSOCIATIONS WE HAVE OVER 14,500+ APPROVED SUBMISSIONS WE WORK IN 50 STATES WITH 29 MANUFACTURERS Armatus provides the industry’s only turn-key solution for Retail Warranty Reimbursement submissions. Our dedicated staff and proprietary software guarantee you will achieve an optimized result. OUR COMMITMENT TO OUR CLIENTS (866) 697-1895 info@dealeruplift.com | www.dealeruplift.com You’ve Heard the Generalities from Others Now Let’s Look at the Facts. Speed No one completes a submission faster than Armatus Data Governance Your customer information is safe with Armatus DMS Certifications Armatus is certified with all DMS providers You Will Barely Lift a Finger Armatus does all the work for you Optimization Proprietary software guarantees you the best result Fully Contingent Fee You only pay when you are approved info@dealeruplift.com www.DealerUplift.com (866) 697-1895
KADA DISTRICT MEETINGS RECAP In October, we hosted our KADA District Meetings in Lexington, Louisville, Florence, Western Kentucky and Bowling Green. Our agenda this year focused on industry updates, association activities and providing an update on the status of electronic titling and registration. We had very successful and productive meetings. Thank you to our dealers, vendor partners and legislators who participated.
THANK YOU KADET MEMBERS! Please scan the QR code to donate today. https://kentuckyautodealerskyassoc.wliinc33.com/events/ GIVE-TO-KADET-PAC-CAMPAIGN-42/register Thank you to everyone who donated to our KADET fund this year at the maximum level. Your contributions enable us to support legislators who support our industry and your business. It is imperative that we continue to foster these relationships. We face constant changes and threats to our trade, and your participation makes all the difference. To donate to KADET, please visit www.kyada.com/kadet-pac.html. THANK YOU TO OUR 2023 PRESIDENT’S CLUB MEMBERS! Joe Cummins Nancy Sparks Tim Sparks David Moore Kim Huffman Shane Collins Joe Cross Vickie Kain Fister Bill Cole Dan Renshaw Ray Cottrell, Jr. Dwain Taylor Dann Hughes Tim Kanaly Rob Marshall Trey Marshall Mike Hyde Jeff Eickholz Fred Tolsdorf Tammy Coats Mark Pogue David Daunhauer Bob Hook III Kevin Collins David Jaggers Tammy Goodwin Tim Short Carl Swope Tom Gill John Zimmer Larry Craig Jack Kain Todd Justice Travis Flaherty Josh Cummins Ed Hyde Gary Haupt Steve Bachman NEXTGEN PRESIDENT’S CLUB MEMBERS Alex Pogue Tyler Jaggers Phillip Gill Deborah Renshaw Parker WWW.KYADA.COM 11
END-OF-YEAR KADA BOARD & EXECUTIVE COMMITTEE MEETINGS In November, we hosted our end-of-theyear Board and Executive Committee Meetings in Frankfort. We discussed the state of the association, what’s happening in our industry and where we’re headed in 2024. We are pleased to share that your association is thriving and continues to grow, and that is thanks to your participation and support. 12 KENTUCKY AUTO DEALER
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BUY-SELL SUCCESS IN 2024 By Jennifer Rafael, DSMA With some record highs in the industry of M&A in the past years, there is no doubt that 2023 will be known as a year of change in the automotive industry. Consolidation continues to be apparent in the automotive industries, and buy-sell opportunities remain to be available. For buyers and sellers, how does this change shift from the past years to the present? A crucial question that many dealers have asked DSMA Mergers & Acquisitions: How will the 2024 market’s fluctuations impact the Merger and Acquisition industry activity and strategy? With all the uncertainties in the economy and market hurdles, all signs point to a continuous transformation. The industry is overcoming high interest rate levels, more demand on inventory levels and declining inflation which are the market conditions we face. With 2024 poised to deliver another year of fluid conditions on the buy-sell market, choosing a trusted mergers and acquisitions partner is even more integral to succeeding in your buy-sell goals. Dealers are ready to act in 2024: The Mergers & Acquisition industry is certainly thriving — which is excellent news for dealers looking for the right time to complete their exit strategy or expand their portfolio. Across geographies, a trend of independent dealers ready to consider retirement results in timely opportunities for nextgeneration dealers looking to build upon the success of established rooftops. Even with the ample opportunities on the horizon, though, buying or selling a dealership is, as the saying goes, easier said than done. Successfully acquiring or selling a dealership rarely works with a roll-the-dice plan or copy-andpaste approach. People first, foremost and always: Regardless of their exit or acquisition goals, many dealers on the market share similar priorities: a high-quality investment or buyer, alignment in business values, a smooth buy-sell experience and a positive, mutually beneficial outcome for everyone involved. The Midwest market has had great success, our central focus has been and will remain to be our clients and our team. We have redefined the role of a trusted M&A firm into a complete 360-degree partner, present with you through every step of your divesting or acquiring journey. Considerations for a buy-sell in 2024: Over our years in business, not only has DSMA navigated the many fluctuations in the industry — but we have thrived amidst them. And as we prepare to close the book on 2023, the continued success our team has delivered for dealers yet again this year reinforces our strong position to support a growing variety of dealers in 2024. From single rooftops to dealership groups, and from automotive to heavy trucks, marine, powersports, commercial EVs, and more, DSMA has a proven track record across a full range of clients across North America: • 1,700+ dealerships valuations: A precision valuation is a crucial first step which gives a vital foundation to any dealership buy-sell scenario. An inaccurate valuation can limit opportunities, alienate prospective buyers or sellers, and even lead to a failed transaction. Putting in the work upfront to ensure a superior valuation is key to DSMA’s commitment to providing the right match and a smooth, positive experience. • 98% franchise applications approved: As crucial players in the buy-sell process, OEMs hold immense power. Because their approval is required whenever a dealership enters new ownership, identifying a strong buy-sell match is instrumental to earning their approval. 98% of applications filed as part of DSMAfacilitated transactions earn the manufacturer’s approval, a true testament to our team’s expertise. • 425+ dealerships sold: Every dealership is unique, which means every buy-sell scenario is also unique. The 425 sales facilitated by DSMA have included dealerships both urban and rural, large and small, old and new, and of virtually all vehicle OEMs. This range of dealership client experience means DSMA is nimble at harnessing the unique, individual factors of your business to achieve your personal goals. Staffing up to serve even more dealers: DSMA’s ongoing year-over-year growth has meant our team has expanded as well to ensure we can support even more dealers in 2024 with the exact same personalized, one-to-one experience our clients have come to know. It is no coincidence either that this growth has occurred across all departments. DSMA has brought on new team members, each expert in their respective specialties, across the full range of the M&A journey. In fact, in 2023 alone, DSMA has expanded our full-service team by 25%, with now over 50 team members — including seasoned pros in marketing, legal affairs, OEM relationships, and more — covering all of North America. For dealers who choose to become DSMA clients, this means even more resources at their disposal, yet with the same personalized service and care that has earned the valued trust which their peers have placed in our company from the very start. What to expect from your DSMA experience: DSMA’s 360-degree team includes legal experts, financial advisors, transaction managers, a marketing team, and more to provide dealers with a single trusted partner invested in their success. It starts with our team of “matchmakers,” who do the heavy lifting for you to identify targeted, relevant, and qualified buyers to successfully take over your business. From there, DSMA transaction team handles every step of the process — from due diligence, to licensing, to OEM approval, and more. A partner to trust from start to finish: DSMA knows that by working with a single partner, dealers drastically reduce risk. This is why the firm combines multiple specialties in-house to ensure discretion and confidentiality for all parties involved. To learn more how DSMA can support you in developing your entry or exit strategy, contact Jennifer Rafael at (312) 927-9561 or jennifer.rafael@dsma.com. 14 KENTUCKY AUTO DEALER
BUY AND SELL WITH CONFIDENCE GREG BROWN M&A Associate greg.brown@dsma.com 312.674.4556 JENNIFER RAFAEL Vice President, Partner jennifer.rafael@dsma.com 312.927.9561 OUR MIDWEST TEAM KEVIN CHRIST M&A Associate kevin.christ@dsma.com 312.674.4556 JONATHON MORONI Business Development Manager jonathon.moroni@dsma.com 312.674.4556 Reveal the potential value of your dealership in the market. With more than 1,700 business valuations and 425 dealerships sold, we will help you unlock the value of your business. Hire DSMA. Visit DSMA.com to get started. UNLOCK YOUR TRUE VALUE.
SAVE THE DATE! The Annual KADA Golf Tournament September 23, 2024 Frankfort Country Club Stay tuned for registration details. Is your business in the dark? ADVERTISE IN THIS MAGAZINE AND SHINE A LIGHT ON YOUR COMPANY. QR Code: website /ad-space CONTACT US TO LEARN MORE. 801.676.9722 • 855.747.4003 sales@thenewslinkgroup.com 16 KENTUCKY AUTO DEALER
JOE CUMMINS CHAIRMAN DON FRANKLIN AUTO GROUP DAVID MOORE CHAIR ELECT MOORE FORD CHRYSLER CENTER ROB MARSHALL VICE CHAIR MARSHALL AUTO GROUP RAY COTTRELL, JR. TREASURER RAY’S FORD CHRYSLER DODGE JEEP RAM NANCY SPARKS PAST CHAIR KERRY AUTOMOTIVE GROUP KIM HUFFMAN PAST CHAIR NEIL HUFFMAN AUTO GROUP CARL SWOPE PAST CHAIR SWOPE FAMILY OF DEALERSHIPS SHANE COLLINS PAST CHAIR BILL COLLINS FORD JIM REYNOLDS PAST CHAIR WALTERS AUTO GROUP DAN RENSHAW NADA DIRECTOR RENSHAW AUTO GROUP WELCOME 2024 KADA BOARD MEMBERS KAMERON HUFFMAN District 1 ALEX POGUE District 2 RICHARD SWOPE District 3 TIM SPARKS District 4 TREY BLAKLEY District 5 VICKIE KAIN FISTER District 6 ED HYDE KADA Treasurer THANK YOU TO OUR 2023 EXECUTIVE COMMITTEE WWW.KYADA.COM 17
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 HOW TO BUILD A CONSUMERFRIENDLY SERVICE EXPERIENCE THAT IS EFFICIENT By Sharon Kitzman, Dominion DMS 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 selfservice. 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 KENTUCKY AUTO DEALER
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 vital 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. 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 services 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. 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/ WWW.KYADA.COM 19
KENTUCKY HORSEPOWER 2023 Year-End Review with KADA Chairman Joe Cummins As 2023 has come to a close, we sat down for a year-end review with KADA Chairman Joe Cummins of Don Franklin Auto Group. Tune in as we discuss: • 2023 General Session highlights — scan the QR code to read more in detail. • Meetings at the Capitol and with legislators. • Electronic titling and registration. • EVs and current issues affecting our industry. • The upcoming General Session. • KADET. As always, you can listen to or watch our podcast on Spotify, Apple Podcasts and YouTube. https://files.constantcontact.com/ 2b559d00701/06739241-e048-48308e20-96d54077ee22.pdf?rdr=true Scan the QR code to listen to Kentucky Horsepower. https://kentuckyhorsepower.buzzsprout.com/ 20 KENTUCKY AUTO DEALER
KADA LEGISLATIVE RECEPTION February 7, 2024 5:30 PM-8:00 PM The Foundry on Broadway, Frankfort RSVP to Melissa Peach at mpeach@kyada.com. SAVE THE DATE 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. kentucky-auto-dealer.thenewslinkgroup.org WWW.KYADA.COM 21
MOTION TO STAY THE FTC’S VEHICLE SHOPPING RULE After a rushed, utterly flawed and what some believe is an illegal process, the Federal Trade Commission unexpectedly released its final Vehicle Shopping Rule, now called the Combating Auto Retail Scams (CARS) Rule, which takes effect July 30, 2024. In response to comments submitted by NADA and state and metro dealer associations, the FTC scaled back the proposed rule in several important ways. Among other changes, the FTC eliminated requirements that dealers: • Maintain on their website a list of all “add-on” products offered and the price of each such product; • Provide a series of written disclosures related to the sale of “add-on” products; and • Retain copies of “add-on” lists and documents describing “add-on” products offered to consumers. The changes, though good, are not sufficient. And because the FTC has continually failed to justify the wholesale changes as to the way Americans shop for and purchase new cars, NADA was left with no choice but to seek legal relief to prevent this rule from taking effect. The final rule would still impose several new problematic oral and written disclosures, numerous ill-defined requirements and additional burdensome record-keeping obligations. 22 KENTUCKY AUTO DEALER
As a response, NADA and the Texas Automobile Dealers Association (TADA) filed a Motion in the U.S. Court of Appeals for the 5th Circuit to stay the July 30, 2024, effective date. The Motion follows a court challenge to the rule that was filed by NADA and TADA. The Motion is challenging the FTC in court to stop a rule that will add massive amounts of time, complexity, paperwork and cost to car buying and car shopping for tens of millions of Americans every year. The FTC’s Vehicle Shopping Rule is simply terrible for consumers. NADA and KADA will continue to provide updates on the litigation; here is a brief background: • On Jan. 4, 2024, NADA filed a court challenge against the FTC over its final Vehicle Shopping Rule. • The FTC claims its rule is in response to “chronic deceptive or unfair practices” in the auto retail marketplace. These assertions are misguided, completely unfounded and do not reflect the modern auto retail industry. • The rule is now final. It contains draconian penalties, and franchised dealers have been given less than eight months to comply with the significant and unnecessary regulatory burdens laid out in the final rule. Text of the Final Rule https://www.ftc.gov/system/files/ ftc_gov/pdf/p204800_ cars_rule.pdf#page=361 To learn more about this issue, please scan the QR codes. NADA Press Release https://www.nada.org/nada/ press-releases/ nada-releases-statement-ftcsvehicle-shopping-rule FTC Press Release https://www.ftc.gov/news-events/ news/press-releases/2023/12/ ftc-announces-cars-rule-fightscams-vehicle-shopping FTC CARS Rule: Combating Auto Retail Scams — A Dealers Guide https://www.ftc.gov/businessguidance/resources/ ftc-cars-rule-combating-auto-retailscams-dealers-guide The new CARS Rule: What you need to know — A Customer Guide https://consumer.ftc.gov/consumeralerts/2023/12/ new-cars-rule-what-you-needknow?utm_source=govdelivery WWW.KYADA.COM 23
KADA PREFERRED PARTNER PROGRAMS Kentucky Automobile Dealers Association (KADA) is pleased to recommend a broad range of products and services aimed at controlling expenses in every facet of the dealership. The following products and/or services are recommended by the association’s Board of Directors and endorsed through the association. These vendors are reviewed periodically to ensure the quality of products and services meet the needs of our dealers and can provide special pricing through group buying. Dealer Online Platform Tom Rodriguez, (352) 931-1318 torodriguez@acvauctions.com Workers Compensation John Foresman, (502) 489-6255 jforesman@uscky.com Security Software & Services Scott Hudson, (513) 520-4187 scott.hudson@aura.com Dealership Supply Needs Chris Haas, (513) 772-2886 chaas0906@gmail.com Warranty Parts & Labor Reimbursement Leonard Bellavia, (516) 873-3000 lbellavia@dealerlaw.com Electronic Titling & Registration LT Slater, (216) 392-0695 LT@champtitles.com Complete Set of Solutions for the Auto Dealers Polly Penna, (303) 981-1298 polly.penna@coxautoinc.com Cybersecurity Compliance Sherryl Nens, (661) 210-3453 sherryl@complyauto.com Customer Engagement Technology Scott Pechstein, (949) 278-8618 scott@digitalairstrike.com 24 KENTUCKY AUTO DEALER
Dual Price Strategy Technology Amberly Joseph, (817) 404-9253 amberly@dealermerchantservices.com F&I Products & Services Brad Geren, (502) 472-3671 bgeren@dpg-inc.com Todd Howard, (859) 382-3252 thoward@dpg-inc.com Kevin Voges, (812) 204-2251 kvoges@dpg-inc.com Larry Dorfman, (404) 732-5910 ldorfman@easycare.com Group Health Insurance & Voluntary Benefits Colin Royster, (804) 545-3013 croyster@integrumadvisors.com Ben Hoffman, (804) 357-6004 bhoffman@integrumadvisors.com Lawyer Accountant Brokerage Leonard Bellavia, (516) 873-3000 lbellavia@dealerlaw.com Settlement Recovery Services Kimberly Johnson, (818) 640-3164 Kimberly.johnson@mcaginc.com Service Department Products & Programs Robert Buffington, (859) 240-2989 rbuffington@mocmidatlantic.com NADA Retirement Program Jeff Liwacz, (609) 529-3546 jeff.liwacz@empowerretirement.com Kentucky F&I Forms Library Rose Pottkotter, (567) 279-3573 RoseMary_Potter@reyrey.com Mobile Learning Platform Jay Petznick, (816) 896-4587 jay@rocked.us Automotive Finishes Patrick Shaw, (859) 509-0382 patrick.shaw@sherwin.com Financial Wellness Platform Danijel Velicki, (757) 995-3134 danijel@getsqwire.com Matt Ridjaneck, (757) 355-2242 matt@getsqwire.com Electronic Vehicle Transactions Dave Spencer, (916) 857-6063 dspencer@vitu.com WWW.KYADA.COM 25
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