Official Publication of the Montana Auto Dealers Association Auto Dealer PUB. 3 – 2023 – ISSUE 2 CHUCK NOTBOHM TIME DEALER OF THE YEAR NOMINEE
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©2023 The Montana Auto Dealers Association (MTADA) | The newsLINK Group, LLC. All rights reserved. The Montana Auto Dealer is published twice each year by The newsLINK Group, LLC for the MTADA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and dealer 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 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 MTADA, 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. The Montana Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of the MTADA. While the Montana 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 12 18 6 Montana Automobile Dealers Association EVP’s Message: Looking Forward to Another Great Year 8 MTADA Office Staff, Executive Committee, Board of Directors and Insurance Trust 10 Legal Update: “Oh, When Will They Ever Learn” 12 Chuck Notbohm: TIME Dealer of the Year Nominee 16 Montana Overdrive is Live! 18 109th MTADA Annual Family Convention Wrap Up! 22 Keep Your Hands & Feet Inside the Car at All Times: Things Are About To Get Real! 25 Welcome New Members 26 Innovation in Automotive Accounting 29 Revolutionizing the Auto Industry: Meeting Consumer Demands Through Transparency, Digitalization, and Omnichannel Platforms 30 2024 NADA SHOW 32 Dealerships Must Use New Form I-9 As of November 1 34 MTADA's Employee Benefits Programs Keep Getting Better 36 2023 MTADA Endorsed Partners 40 2023 MTADA Associate Members 42 Save the Date! MTADA's 110th Annual Family Convention 4
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MONTANA AUTOMOBILE DEALERS ASSOCIATION EVP’S MESSAGE Bruce Knudsen Executive Vice President It's hard to believe that a new year is almost upon us. Looking back over this past year and the many issues we as an industry have faced — from regulatory changes to our nation's economic volatility — I can honestly say that Montana auto dealers are some of the best and brightest out there. Each one of you has made adjustments, solved unforeseen problems and risen above insurmountable odds. Recently, I had the chance to visit our nation’s capital for the annual NADA Washington, D.C. Conference with several of our Montana car dealers. Our time there was spent meeting with our legislators to discuss key federal issues impacting dealerships today. I am confident that solutions to many legislative issues are in the works and that our voice was heard and will be a part of any future decisions. The 109th Annual Family Convention has come and gone, and I’m happy to report that this year's event was a huge success. It was great to see all of you there. I enjoyed catching up with you and learning from the impressive line of speakers. I also wanted to take this opportunity to thank all of our sponsors and exhibitors. The products and services that they bring to the table help keep the industry strong. LOOKING FORWARD TO ANOTHER GREAT YEAR 6
Please save the date for next year’s convention to be held Aug. 15-18, 2024. It will be held in Helena, Montana, and our opening reception will be held at the Lewis and Clark Brewery. Please join us for an evening of live music, award-winning craft beer and the opportunity to dunk me in a dunk tank. We have also reserved a boat for the Gates of the Mountains tour for Sunday morning after the convention. For those of you who have not experienced this wonder of nature, it will be a great opportunity to see the real Montana. For a sneak peek of this majestic wonder nestled in the heart of Montana, scan the QR code. https://gatesofthemountains.com/about As we look ahead to the new year, if you are in need of anything to help your dealership grow while remaining compliant, I encourage you to turn to our Preferred Partners. These companies have been vetted and endorsed by MTADA in an effort to ease your decisionmaking process of who to partner with. The holiday season is always a good time to reflect on our accomplishments. I, for one, am so proud of our members. The many ways you give back to the communities you work and live in make our association and the great state of Montana a better place. I look forward to another great year. Please don’t hesitate to get in touch if you need help, have an idea or suggestion, have feedback or just want to say hello. You are a valued member of the Montana Auto Dealers Association, and I want to hear from you. As always, feel free to call me anytime on my cell at (406) 461-7680. Sincerely, Bruce The many ways you give back to the communities you work and live in make our association and the great state of Montana a better place. 7
MTADA OFFICE STAFF EXECUTIVE COMMITTEE Bruce Knudsen Executive Vice President bknudsen@mtada.com Cell: (406) 461-7680 Office: (406) 442-1233 Jillian Nash Communications Manager jnash@mtada.com Cell: (253) 561-2889 Office: (406) 442-1233 Debbie Jean Office Manager/Insurance Coordinator/ Bookkeeper bkkpr@mtada.com Cell: (406) 461-6333 Office: (406) 442-1233 Erick Anderson Placer Motors Chairman Wade Rehbein Rehbein Ford President Eric Henricksen Don Aadsen Ford President-Elect Don Kaltschmidt Don “K” Whitefish NADA Director Peder Billion Billion Auto Group Vice President 8
Eric Henricksen Don Aadsen Ford District 1 Wade Rehbein Rehbein Ford District 2 Erick Anderson Placer Motors District 3 Jackson Bell Bell Motor Co. District 4 Aaron Jones Courtesy Ford District 5 BOARD OF DIRECTORS Don Kaltschmidt Don "K" Whitefish Rob DeMarois DeMarois Buick GMC Eric Henricksen Don Aadsen Ford Peder Billion Billion Auto Group District 6 James Johnson High Plains Motors, Inc. District 7 Jason Davis Archie Cochrane Ford District 8 Shane Morinville Lithia Ford of Missoula Group Dealership Director Josh Soares GMC Billings Next Gen Don Kaltschmidt Don “K” Whitefish NADA Director INSURANCE TRUST Bill Underriner Underriner Motors Chairman James Johnson High Plains Motors, Inc. Executive Member Erick Anderson Placer Motors Executive Member Craig Tilleman Tilleman Motor Co. 9
10 LEGAL UPDATE R. J. “JIM” SEWELL, JR. MTADA GENERAL COUNSEL Many of you may be too young to remember, although a few of the “old timers” like me will. Back in 1955, Pete Seeger wrote “Where Have All the Flowers Gone,” recorded by the Kingston Trio in 1961 and made famous by Peter, Paul and Mary in 1962. The last lines of each stanza lament “. . . oh, when will they ever learn, oh, when will they ever learn . . .” Those lines have come down through the decades and, in a different context, apply to the car business today. Recent industry news reminded me of this old tune as I read in the trade press FMC is once again elbowing its way into the retail business. Steve DaSilva reported in Jalopnick, a trade newsletter: Ford CEO Wants To Abolish The Dealership Experience As We Know It Steve DaSilva, June 2, 2022 “Ford wants to do things differently as it expands into the EV business. It’s spinning electric cars into their own sub-brand, untethered from the time-honored tradition of dealers asking, ‘What can I do to get you in this car today?’ Months after that news first came out, CEO Jim Farley is doubling down. In a speech today, the executive confirmed that under his new plan, dealerships would get rid of inventory entirely and become high-quality service centers for customers who purchased their vehicles online. In a presentation at Bernstein’s 38th Annual Strategic Decisions Conference, an event that is apparently real and not an Arrested Development plot point, Farley confirmed that Ford intends to sell EVs entirely online, with no-haggle pricing. Dealer lots full of preordered inventory would be gone, and today’s existing dealers would pivot to providing service for cars purchased online. ‘We’ve got to go to a non-negotiated price. We’ve got to go to 100% online,’ Farley said. ‘There’s no inventory (at dealerships); it goes directly to the customer. And 100% remote pickup and delivery.’” “OH, WHEN WILL THEY EVER LEARN”
Curious to know who Jim Farley is, I discovered, in addition to being a cousin of the comedian Chris Farley of SNL fame, he was born to a banker father in Buenos Aires, Argentina, where he spent his early years, before moving to Greenwich, Connecticut. He earned degrees in economics and computer science at Georgetown University and an MBA at UCLA in 1990. Reportedly, he’s a race car driver and has bought and sold a few race cars on the side. I could not find any evidence that he’s ever spent any meaningful time on the inside of a retail dealership operation. He’s obviously a smart guy, and he knows how to work the levers in the executive suite. But he doesn’t appear to understand Ford company history in the retail end of the car business. As I read the Jalopnick article, I recalled an earlier dive into the retail car business by FMC. It ended badly. I found the article again in Ward Automotive from just over 22 years ago: Tim Keenan | Jun 26, 2001 “Like General Motors Corp. before, Ford Motor Co. is getting out of the automotive retail business. Ford is ending a three-year experiment in which it tried to run dealerships in mid-size urban markets. The automaker announced today that it will sell the auto ‘collections’ it runs in Tulsa, Oklahoma City, Salt Lake City and Rochester, NY. Started in 1998 as a reaction to dealership consolidators such as AutoNation, Inc. and the rising potential of the Internet, the collections have been a source of disagreement between Ford and its dealers since day one. Ford’s once-ambitious plan called for as many as 30 ‘collections’ of Ford-run dealerships in certain cities. It didn’t work out. Dealers, in general, reacted coolly to the idea, seeing it as a turf invasion. Yet in a few cities — notably Tulsa — enough dealers sold interests in their stores to Ford to get the plan going. It soon went awry. The Ford-owned stores started losing business, not only to the competition but also to independently owned Ford dealerships outside of town. Ford CEO Jac Nasser told Ward's Dealer Business magazine that the idea was to better connect Ford to the marketplace. However, he added, “It got very complicated.” Ford Div. President James O'Connor tells Ward's, ‘I think we have to acknowledge that we paid a heavy price for the auto collections in terms of trust with our dealers. Divesting ourselves of this hopefully puts us on a positive journey to improving and getting that partnership back to what we were used to.’ Ford will sell the seven Tulsa stores to United Auto Group and the local operator, Jim Evans. The 23 stores in Rochester, Salt Lake City and Oklahoma City will be purchased by individual dealers in those markets. ‘Ford realized that dealers do a great job on a day-to-day basis servicing their communities and moving cars down the road,’ says Ford Dealer Council Chairman Jerry Reynolds of Texas. ‘Would I had preferred (the collections) hadn’t happened? Sure. But since they did, we did learn a lot, and I’m ecstatic today.’” (emp. added). Without a nod to 2001, Farley drew his line in the sand a year ago. Obviously, he has never asked a retail customer that time-honored question, “What can I do to get you in this car today?” His experience with the retail side of the car business must have come from case studies during his MBA program. Apparently, he’s not much of a history student either. Dealers and the ATAE network, on behalf of the dealer body, have pushed back in their state legislatures and at the courthouse to preserve the franchised dealer model with a considerable degree of success to date. It’s “very complicated,” all right, particularly when you don’t know nearly as much about the retail business, personal relationships, customer service or being a big part of your community as you think you do. CEO Jac Nasser and Ford Div. President James O’Connor are now long gone along with their recognition of the heavy price Ford paid in terms of trust with its dealers back in 2001, and so must be the collective wisdom and knowledge of the company history as FMC and the other OEMs are hell-bent on getting back in the retail car business, bound to repeat the errors of their predecessors. “. . . Oh, when will they ever learn; Oh, when will they ever learn.” 11
TIME and Ally Financial have honored Charles (Chuck) Notbohm as MTADA’s nominee for the 2024 TIME Dealer of the Year. This award recognizes new-car dealers in America who exhibit exceptional performance in their dealerships as well as distinguished community service. Recently, MTADA had a chance to talk with Chuck about this recognition. We would like to thank him for his time and hope you enjoy getting to know more about him as much as we did. The following are excerpts from our conversation. What does receiving the TIME Dealer of the Year nomination mean to you? It is very humbling to be chosen for this honor by my peers. It's something that I didn't expect and something that is greatly appreciated. How did you become a car dealer? Did you always aspire to be part of the automotive industry? I began my automotive career after 14 years in public school education at a small rural farming community in north central North Dakota with a population of 1,000 people. We began our dealership with seven employees, selling about 15 vehicles a month. The teaching experience was a great start as it taught me how to guide, motivate and encourage individuals to obtain goals and ambitions they did not realize they could do. This did not change within the automotive industry. The location in North Dakota was a single Chevrolet franchise. Two years later, I purchased the Oldsmobile dealership, moving the operation to the Chevrolet store. In the early 1990s, I began looking for more opportunities for growth. Visiting with my zone manager, he mentioned several options in the Midwest, one being Miles City, Montana. In 1995, I purchased the General Motors store in Miles City and moved Chevrolet to that point, which offered Buick, Pontiac and GMC. We began with 11 full-time employees. The facility was aged and did not provide enough space to grow the business. In 1998, I started building a new facility in a higher-traffic area in Miles City. Construction was completed in 1999, allowing for a better display area for new and used vehicles and a larger service department to address the sales, service and parts needs of our customers. Three years later, we realized growing pains in the service department and added six more service bays. As we CHUCK NOTBOHM: TIME DEALER OF THE YEAR NOMINEE 12
continued to grow, Chevrolet’s stand-alone Quick Lube model seemed to be a good solution. In 2003, we forged ahead with building a two-bay Quick Lube, which helped the flow within the service department and showed extensive growth in our customer base. During this time, personalization of vehicles with accessories was in demand. In 2008, we further expanded by building a state-ofthe-art accessories store selling and installing the full range of accessories such as grill guards, running boards, stereos, light packages, remote starters, window tinting and more. The facility included a Rhino lining spray booth and a down draft paint booth. Then, in 2014, we tore down the old and built a new six-bay Quick Lube with a full basement to better address the needs of our service customers. Finally, in 2022, we acquired the Ford store in Miles City, giving us the opportunity for further growth in our sales and service operations. Between all locations, we now total over 70 employees and retail about 80 units a month. After all of that, to answer your question, no, I did not also aspire to be in the automotive industry; however, business was the direction I thought I would pursue. Are there any specific individuals who had a major impact on your career? My parents, Carl and Ardella, have had a major impact on my life, including my career. The example they set instilled in me the importance of having strong moral values, a hard work ethic and compassion for others and how they should be treated. That heritage has defined who I am today. What is the most rewarding part of your career? I feel the most rewarding part of my job as a dealer principal is watching my employees grow in their careers as a salesperson, technician, office personnel and even management-level positions. Seeing growth in each employee and the difference that has taken place in their lives when they are able to be a part of decision-making and daily activities. Also, when they let you know that they love their job and working for you, it feels like being part of the family. Another reward in this business is when you are contacted by a customer expressing their appreciation for what have done for them, taking care of their automotive needs and giving them the best service possible. As I reflect and look back at my career, I see God's hand and His plan for my life. He has guided me through many changes, from education to the retail car business. I am very blessed. The values that my parents instilled in me have served me well, and I am so grateful. My life and my career are rewarding. What do you think will be some of the dominant trends within the auto industry in the next 5-10 years? I think alternative fuel sources, whether it be electric or something else, are going to be the biggest change. It’s a big shift because, especially in Montana, the infrastructure isn't ready to go full electric. There are too many miles between charging stations, and the grids aren't quite ready. I think there are going to be many good things that are happening with the quality of the vehicles that are being produced. There is a lot to look forward to. Are you involved in any civic or charitable organizations? In the area of community service, we have supported organizations that directly impact the youth in our area, including 4-H; youth hockey, soccer, and baseball; local rodeos; the CABA (Continental Amateur Baseball Association) World Series; Miles City ROCKS (Raising Our Community Kids Safely), an after school program; Special Olympics Montana; and Erin’s 13
Hope Project, which arranges outdoor adventures for children with lifethreatening illnesses. One year, our team selected a different youth organization each month to bring awareness to and to support through donations that were determined by the number of sales the store produced that month. It was a good thing for the staff to think of how they could be a part of helping others. We have also partnered with Holy Rosary Hospital Foundation on fundraising events, such as a car raffle, which resulted in upgrades to the hospital and the Outlaw Baseball Club raffle of a Camaro to assist with program expenses. I have also contributed time to the board of directors of Holy Rosary Healthcare and SCL Health, which is now Intermountain Healthcare, where I am on the board and executive committee and chairing the Community Benefit Committee of the hospital. Other community involvement would include the Helping Hands Charity Event, help those in need with car repair at no cost to the individual, the 4-H livestock auction, where we purchase animals, process the meat and give it to our employees, and our annual car show, where we have the community and area show-off their classic cars and trucks and we give out prizes and have a meal for those in attendance. What three things have you learned during your career that you would pass on to someone you are mentoring? 1. Listen more than you talk. 2. Surround yourself with good people. 3. Be charitable and treat others as you like to be treated. What does the best day in this business look like for you? The best day would be to see your employees happy and excited with their part in the dealership operation and come to tell you how much they enjoy their job and working for us. A close second is experiencing completely satisfied customers, whether it is in the purchase of a 14
different vehicle for them and receiving excellent service from our service department. Those are the things that make a big difference to me and make my day. Describe your all-time favorite vehicle. What are you driving today? Although I like classic cars, the new mid-engine Corvette is my favorite. Yes, I have one, a 70th Anniversary Edition and love it. What is your favorite way to spend your free time? Do you have any hobbies? I love to be outside, doing all kinds of things like working in my yard or just enjoying the fresh air. Then, of course, camping has been a part of my family life since I first got married. We have many fond memories of taking our family on those camping adventures. And, of course, traveling in our motorhome and seeing the many wonders of our great country is a great thing for me. Please tell us about your family. I have been married to my wife, Mary, for 53 years. She has been by my side, helping and encouraging me all the way. She has been a part of the dealership operation, mainly working in the office, although when we first arrived in Miles City, I was short a service advisor, so she dug right in and took that position until we found someone. She has since retired and loves the time she can do what she wants and grab a cup of coffee with her friends or submerge herself in her quilting activities. We joke that she has retired twice, but not sure if there will be a third time. We have two sons. Our oldest, Chad, is the General Manager here in Miles City. He is married to Janelle, who does the marketing for the dealerships. They have three children: Jace, Natalie and Brynn. Our second son, Brady, is a Structural Engineer in Tempe, Arizona. He and his wife, Amy, have two children: Paige and Blake. 15
MONTANA OVERDRIVE IS LIVE! BRINGING AUTOMOTIVE PRODUCTS TO YOUR FINGERTIPS We are happy to announce the launch of our new website serving all Montana automotive dealerships! With thousands of products to choose from, we offer all of your automotive form and supply needs. Visit our FAQ page if you have any questions at montanaoverdrive.com/faq. SCAN THE QR CODE TO REGISTER TODAY! montanaoverdrive.com Sign up today and receive a code via email for 15% off your first purchase through the website. Happy Shopping! powered by: 16
INTRODUCING YOUR NEW SHOWROOM GET YOUR UNFAIR SHARE OF DIGITAL BUYERS. 406-313-6661 z@webbuy.com webbuy.com Get a Preview of Steve Zabawa's NADA 2024 Presentation and How it Applies to Your Stores SCHEDULE YOUR REVIEW WITH STEVE
109th MTADA ANNUAL FAMILY CONVENTION WRAP UP! AUGUST 24-27, 2023 BUTTE, MT 18
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KEEP YOUR HANDS & FEET INSIDE THE CAR AT ALL TIMES: Are you thinking about selling your dealership? Buckle in because you’re in for an emotional roller coaster! One aspect of selling a dealership that few dealers discuss is the emotional impact the decision can have on the dealer principals themselves, not to mention their employees and families. Because of confidentiality reasons, many dealers don’t have anyone to talk to about the emotions they are experiencing. Here are a few of the most common emotional issues that we’ve seen over the years: Fear of the unknown: Selling your most valuable financial asset — your dealership— is usually a rare occurrence. So much so that to most dealers, the process is unfamiliar. Facing an unknown future can make you uncomfortable and be very unsettling. You may stress about making the wrong decision or worry about what the future will bring after the sale of your dealership. And letting go of something that has been a substantial part of your life can be difficult. Uneasiness with due diligence: The due diligence process can be tedious, intrusive, and uncomfortable. Putting a microscope on accounting, legal, insurance, human resources, and other areas of the dealership to understand how the business operates takes effort. As a business owner, you are required to provide the story of your company through detailed documentation so potential buyers can assess the opportunities as well as any risks. Most business owners aren’t used to this level of inquiry and may face being secondguessed and even criticized over past decisions. Losing control: If you’re like most dealers, your dealership is a source of pride and accomplishment and an extension of yourself — you’ve put your heart and soul into building it. Selling it can make you feel like you’ve lost control, as though you’re giving up a core piece of your identity. Sadness and grief: Letting go of something that has been an important part of your life may bring on natural feelings of sadness and even grief. It is important to recognize these emotions are a normal part of the process, especially when facing a major life change, Regret and guilt: Feelings of regret may come when selling your dealership, especially if you believe that you could have done more or that you’re walking away from opportunities. As you consider your employees and other stakeholders who will be affected by the sale, feelings of guilt may creep in. THINGS ARE ABOUT TO GET REAL! By Katie Naughton & Eric Levitt, DSMA 22
Anxiety: The act of selling a dealership is timeconsuming and can be stressful at best. Many business owners have felt overwhelmed by the demands of the detailed process. You certainly won’t be the first nor the last dealer to find yourself worrying about the “what if’s,” the possibility of the sale falling through or the potential of unfavorable terms from the sale for you and your stakeholders. Selling a business can be a difficult and emotional process, especially if the business has been a key part of your identity while providing financial security and stability, which tends to be the case for most dealer principals. One of the best reasons for using the services of a professional mergers and acquisitions firm is that not only will they bring insight and understanding about the transaction itself, but they also have significant experience in the emotional aspects of selling a business. At DSMA, we understand ALL aspects of the sale: business, financial and emotional. We created this case study so that dealers will know what to expect when to expect it and how to deal with the very real emotions they will experience throughout the road to the sale. To learn more, please contact Eric at eric.levitt@dsma.com and Katie at katie.naughton@DSMA.com or visit dsma.com. Eric Levitt and Katie Naughton, have joined DSMA as Vice Presidents of the Central/West region. In their new roles, they look forward to serving as sounding boards for other dealers who are going through the same decision process and emotional journey that they experienced because they, too, were dealer principals. “We understand that selling a dealership is so much more than a business transaction,” said Eric. “For dealers, it is more like a death in the family. It’s the exact same mourning process. We are here to help them through it.” To read more about Eric and Katie’s journey selling their dealership, please scan the QR code. https://dsma.com/why-we-sold-ourdealerships-part-1-of-2/ 23
AUTOMOTIVE PEOPLE KNOW... OUR CENTRAL/WEST TEAM 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 ERIC LEVITT Vice President, eric.levitt@dsma.com KATIE NAUGHTON Vice President, katie.naughton@dsma.com
WELCOME NEW MEMBERS We would like to introduce and welcome our newest members of the association. Thank you for supporting the Montana Auto Dealers Association! BIG SKY HARLEY Brian Moen Harley Davidson Great Falls www.bigskyharley.com WHITEFISH MARINE Garth Wells Boats & RVs Whitefish www.whitefishmarine.com COPPER CANYON HARLEY Brian Moen Harley Davidson Butte www.coppercanyonharley.com TRP OF KALISPELL Steve Howard Truck Parts Supplier Kalispell www.kenworthsalesco.com/locations/ montana/kalispellmttrp-all-makes/ LESKOVAR HONDA Carly Leskovar Honda Butte www.leskovarhonda.com 25
INNOVATION IN AUTOMOTIVE ACCOUNTING By Tobey Bryant, Accumatic We have all heard automotive experts talk about how the automobile industry is changing more today than it has in the last five decades combined. And for those of us in the industry, working within dealerships every day, we experience those changes every day. The automotive industry has historically focused on the front end of the dealership to increase the movement and margin of car inventory while streamlining the customer experience. The adoption of technology initially focused on the front end has paved the way for dealerships to pay more attention to the back office as well, specifically around the benefits of data automation. What is Automation in Data Analytics? In simple terms, it means using technology to perform analytical tasks, reducing manual processes and minimizing human error. Why Do You Need It? There are many benefits to data automation, including, but not limited to, the following: • Increased accuracy — manual data entry is incredibly time-consuming and error-prone • Improved efficiency, which, in turn, allows staff and management to focus on other critical aspects of their business • Easier training and onboarding of new employees • Higher operating margins The shift to focus on back-office automation has expanded across the marketplace; examples include Cox Automotive, CDK, DealerTrack and Open Track, to name a few. In addition, data automation (as opposed to manual keying) allows dealers to use their existing technology platforms (like their DMS) in a more substantial and efficient manner. Automation and Accounting The finance and accounting departments are the backbone of any dealership, and expectations for the F&I staff are mounting as technology evolves and customer expectations rise. Accounting personnel within a dealership are challenged with retrieving real-time reporting, resulting in even more paperwork. They are overwhelmed with heaps of transactional work — expense reporting, collections, analyzing cash flows, making predictions and so on — leaving little time to focus on growth goals and higher returns for the business. Meanwhile, implementing intelligent automation into your financial workflow promises to improve accuracy, maintain compliance and scale enterprise-wide so you can unify your workforce, transform your operations and expand your automation across departments. Automation can return thousands of employee hours a month and improve processes by up to 75% for the average dealership. Intelligent automation enables your people to focus on higher-value work and improve efficiency across your organization. Automotive Accounting Trends for 2023 • Dealerships are looking towards automating data intake processes for hundreds of factory, warranty, discount and financial reports. • DMS companies are moving to unlock your data, making accounting, analysis and reporting of your data an easily achievable task. • The use of AI and improved computing allow your programs to do more than ever before. • Back-office technology allows the automotive industry to keep employees focused on value-driven analytics with less employee turnover and training. In Conclusion Data is a valuable resource that many car dealerships underutilize. Data offers a powerful set of tools, but in raw form, data is just a bunch of numbers. It takes the right tools to turn that bunch of numbers into a clear picture that then helps dealers boost sales, increase efficiency and spot deficits. Accumatic, an accounting automation company, was born when a franchise owner approached one of the founders and described the arduous process of posting factory and F&I reports into their DMS. Accumatic began working with the automotive industry to streamline data entry into dealer management systems, as well as reduce error-prone, manual processes. It soon became apparent that reconciliation processes and financial reporting beyond the factory, warranty and discount report ingest also needed automation. For more information on automating your accounting processes, call us today at 1-877-500-7049. 26
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ADS of Montana www.adsfi.com Automotive Development Services (ADS) is an independent agency founded in 1988. Being independent agents gives us the ability to find the best products in the marketplace that fits your needs and allows us to develop long-term relationships with our dealer customers. Headquartered in Bozeman, we’re local and here to serve your dealership. We apply our expertise in training and personnel development with your people to achieve outstanding results. There’s a reason that 75% of Montana dealerships work with us. Ca us today! (406) 522-9071 Automotive Development Services, Inc. P.O Box 11669 Bozeman, MT 59719 Montana’s leading provider of F&I training and products.
REVOLUTIONIZING THE AUTO INDUSTRY: MEETING CONSUMER DEMANDS THROUGH TRANSPARENCY, DIGITALIZATION, AND OMNICHANNEL PLATFORMS By Matthew Dykstra, WebBuy In today's fast-paced world, consumer expectations are rapidly evolving, and industries are tasked with adapting to these changing preferences. It has been commonly stated during the last decade that a business still using a fax machine is easy prey for disruptors. In today’s modern automotive dealership landscape, dated websites with poor user interfaces and no ability to transact digitally are becoming the new fax machines. Consumers now demand a seamless digital experience with much greater transparency in their deals. This shift in consumer behavior has paved the way for innovative solutions that enable dealers to gain a competitive edge by redefining the way they engage with consumers. Embracing Transparency: A New Standard in Consumer Expectations Transparency has become a cornerstone of consumer trust and satisfaction. In the realm of automotive transactions, consumers now seek more open communication, readily available information and straightforward processes. Traditional dealer practices that once thrived on mystery and negotiation are rapidly losing ground. Modern consumers value clarity, fairness and the ability to make informed decisions at their own pace. Dealers who embrace transparency are finding success by offering detailed pricing breakdowns. When consumers feel empowered with accurate and comprehensive data, they are more likely to develop trust to refer friends and maintain longlasting relationships with dealerships. The Digital Revolution: Transforming Auto Purchases The digital era has ushered in a new age of convenience where consumers expect to access products and services with just a few clicks. This shift in behavior has given rise to the demand for a seamless, digital buying experience in the automotive values, prices, incentives, and payments don't match, and customers feel like they get the runaround. The Band-Aid: Dealers limit the capability of the BDC and website to force every deal through the showroom. This need not be the case. The Solution: Have omnichannelcapable digital retailing. The digital retailing platform must have the vision of delivering a seamless and consistent customer experience across all customer touchpoints and across in-store, mobile and online. Some key enabling features for a synchronized, omnichannel digital retailing tool include showroom kiosk and tablet mode and resume online deals in the showroom and viceversa; additionally, the BDC will start a deal and send it to the customer, identify the salesperson and integrate with the CRM. Conclusion: Adapting for a Bright Future As the automotive industry continues to evolve, dealerships must adapt to changing consumer expectations. Transparency, digitalization and omnichannel platforms are reshaping the landscape, creating an environment where consumers are in control and empowered to make wellinformed decisions. By embracing these shifts and meeting consumers on their own terms, dealerships can build trust, foster loyalty and thrive in this new era of auto sales. The future belongs to those who listen to the consumer's call for change and innovate accordingly. At the forefront of this consumer-driven revolution is WebBuy with its omnichannel solution — an innovative platform that's changing the way dealers engage with their customers. WebBuy recognizes the desire for transparency and a digital shopping experience. The omnichannel digital retailing experience WebBuy provides empowers dealers to provide customers with the ability to work on every step of their deal in the most user-friendly online purchasing journey possible. Call us today for more information at (406) 313-6600 or visit webbuy.com. industry. Consumers want the ability to research their options and secure a deal online at their own leisure. Dealerships that invest in userfriendly websites, intuitive mobile apps and online tools for browsing inventory and calculating payments, are gaining a competitive edge. With digital platforms, consumers can explore their options, personalize their choices and gather information without the pressure of traditional inperson interactions. A customer should be able to browse inventory, get prequalified, explore financing options, get multiple instant credit offers, get hard or soft instant trade offers from dealer controls, shop for vehicle-specific accessories, evaluate F&I offerings, schedule appointments, obtain property and casualty insurance and upload documents. And they should be able to do it all from the comfort of their own home or in the showroom, on desktop, tablet or mobile. Multichannel vs. Omnichannel The key difference between omnichannel and multichannel is the focal point of your marketing strategy. Omnichannel marketing takes a customer-centric approach while using all available media channels. Multichannel takes a product-centric approach while using more than one channel to promote the product or service. In the last 20 years, dealers added the sales channels of the Business Development Center (BDC) and the e-commerce website. The dealership has become a multichannel sales operation, especially with the addition of true digital retailing tools to the website. However, regardless of industry, multichannel operations are disjointed. Omnichannel is a synchronized system that reaches the customer through multiple channels. The Problem with Multichannel: Different software platforms result in a lack of consistency in deal presentation to the customer. Trade 29
CONTACT US TODAY TO PLACE YOUR ANNOUNCEMENT AD Call 801-676-9722 or scan the QR code to fill out the form. Employees are motivated when they are recognized and feel valued. It’s about… ▷ Who to congratulate ▷ Who to acknowledge ▷ Who to thank for a job well done This magazine is a great platform to celebrate your team’s accomplishments! Place QR Code Here IT’S ABOUT THE It Takes a Village to Run an Auction. We’re here for you. Whether in the lanes or online, we’ve got you covered. 31
DEALERSHIPS MUST USE NEW FORM I-9 AS OF NOVEMBER 1 By Matt Simpson, Fisher Phillips Federal immigration officials just made critical changes to modernize the I-9 employment verification process. The new Form I-9 was made available for employers to use beginning August 1, and all employers must use the new form as of November 1. Here are best practices for compliance, given the new rules soon in effect. DHS Makes Changes to the Streamlined Form I-9 The new Form I-9 has been available for dealers to use beginning August 1. However, dealers must use the new form as of November 1. The full list of DHS’s changes include: • Reduced Sections 1 and 2 to a single-sided page by merging some fields; • Moved the Section 1 Preparer/Translator Certification area to a separate, standalone Supplement A that employers can provide to employees if needed; • Ensured the form can be filled out on tablets and mobile devices; • Ensured the form can be downloaded easily and removed the requirement to enter “N/A” in certain fields; • Revised the Lists of Acceptable Documents page to include some acceptable receipts, as well as guidance and links to information on automatic extensions of employment authorization documentation; and • Added a box that eligible employers must check if the employee’s Form I-9 documentation was examined under a DHS-authorized alternative procedure rather than via physical examination. DHS also reduced the length of the Form I-9 Instructions from 15 pages to eight pages and streamlined the steps each actor takes to complete their section of the form, among other changes. Qualified E-Verify Employers May Remotely Examine Form I-9 Documents Under current Form I-9 rules, employers are required to physically examine an employee’s original identity and work authorization documents. DHS has now created a separate framework to authorize alternative document examination procedures as an optional alternative to the in-person physical document examination method. The first alternative DHS authorized is an option for qualified E-Verify employers to remotely examine identity and work authorization documents beginning on August 1. Qualified E-Verify employers are those employers who are in good standing with E-Verify, have enrolled in E-Verify with respect to all hiring sites that use the alternative procedure and comply with all E-Verify requirements. If a qualified employer chooses to offer the alternative procedure to new employees at an E-Verify hiring site, they must do so consistently for all employees at that site. However, dealers may choose to offer the alternative procedure for remote hires only and continue to apply physical examination procedures to all employees who work onsite or in a hybrid capacity, so long as they do not adopt such a practice for a discriminatory purpose or treat employees differently based on their citizenship, immigration status, or national origin. 32
A qualified E-Verify employer may continue to examine documents physically instead of remotely. Additionally, dealers must allow employees who are unable or unwilling to submit documentation using the alternative procedure to submit documentation for physical examination. Requirements of the Alternative Document Review Procedure Within three business days of an employee’s first day of employment, a qualified E-Verify employer (or an authorized representative acting on the employer’s behalf) who chooses to use the alternative procedure must: • Examine copies (front and back, if the document is two-sided) of Form I-9 documents or an acceptable receipt to ensure that the documentation presented reasonably appears to be genuine; • Conduct a live video interaction with the individual presenting the document(s) to ensure that the documentation reasonably appears to be genuine and related to the individual. The employee must first transmit a copy of the document(s) to the employer and then present the same document(s) during the live video interaction; • Indicate on the Form I-9, by completing the corresponding box, that an alternative procedure was used to examine documentation to complete Section 2 or for reverification, as applicable; • Retain a clear and legible copy of the documentation (front and back, if the documentation is two-sided); and • Create an E-Verify case if the employee is a new hire. DHS Provides Relief for Certain Employers Enrolled in E-Verify During COVID-19 Flexibilities Perhaps the most significant development was the alternative solution DHS offered qualified employers who were left with the arduous task of bringing in all the employees they hired remotely during the COVID-19 pandemic to review their original documents and annotate their I-9s by the August 30 deadline. Qualified E-Verify employers can use the alternative procedure to satisfy the required physical examination of an employee’s documents for that Form I-9 if the dealer: • Was enrolled in E-Verify at the time they performed a remote examination of an employee’s Form I-9 documentation for Section 2 or reverification while using the COVID-19 flexibilities; • Created an E-Verify case for that employee (except for reverification); and • Performed the remote inspection between March 20, 2020 and July 31, 2023. These dealers should not create a new case in E-Verify. All qualified employers that use the alternative procedure instead of physical examination as described above must follow the steps of the alternative procedure and add “alternative procedure” with the date of examination (meaning the date the employer performed a live video interaction as required under the alternative procedure) to the Section 2 Additional Information field on the Form I-9 or in Section 3, as appropriate. If a qualified employer chooses to offer the alternative procedure to new employees at an E-Verify hiring site, they must do so consistently for all employees at that site. 33
SERVICE, AFFORDABILITY and HIGH-QUALITY CARE! The Montana Automobile Dealers Association Group Benefits Trust is a multiple-employer welfare arrangement (MEWA) trust. It is lead by a board of Montana dealership owners who are committed to providing the highest quality health care and benefits while addressing the ever-rising cost of health insurance for employers and employees alike. High-quality service for you and your employees. Free access to the best clinical support and advice in the country. Affordable and sustainable prices for all your benefits needs. Combined 35 years of experience in employee benefits and health risk management. Group and voluntary programs to choose from. Ability to serve your organization with programs outside of the Trust as well! Bruce Knudsen Executive Vice President bknudsen@mtada.com 406.461.7680 Deb Jean Enrollments, Administration bkkpr@mtada.com 406.442.1233 Jacquelyn Gomes Insurance Consultant Jacq Creek Consulting Group jgomes@jacqccg.com 406.465.7077 MTADA’S EMPLOYEE BENEFITS PROGRAMS KEEP GETTING BETTER To learn more about the Trust and all complementing benefits, call our dedicated and independent Insurance Consultant, Jacquelyn Gomes.
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