Pub 1 • Issue 1 Embarking on This New Chapter Together Official Publication of the Louisiana Automobile Dealers Association
10543 South Glenstone Place, Baton Rouge, LA 70810 • 225-769-9923 • theldsgroup.com LADA'S ENDORSED F&I PROVIDER OF PRODUCTS, TRAINING AND INCOME DEVELOPMENT A FEW OF OUR 60+ TEAM MEMBERS: Keith Decell President Jason Rasti Executive Vice President Cole Miller Director of Training Shelley Cavin Client Relations Manager Sunny Mayhall General Counsel Lee Martinez Regional Manager Dan Stowers Territory Manager Ryan Ipson Territory Manager Curtis Loftin Territory Manager Edward Burnett Territory Manager Alfonso ‘Fons’ Augustine Territory Manager Mustafa ‘Moose’ Mohammad Territory Manager
A Better Core in 2024 DominionDMS.com (866) 928-3210 1515 South Federal Highway, Suite 406 Boca Raton, FL 33432, USA SCHEDULE YOUR DEMO Discover how VUE By Dominion DMS gives your dealership: Hearing the cries of the automotive community, we developed a brand new cloud core DMS, called VUE. This software is flexible, efficient and innovative. Schedule a demo and upgrade to a Better Core in 2024. EFFICIENCY INNOVATION FLEXIBILITY SAVINGS Personalization, Engagement, and Speed – the holy trinity of an amazing customer experience. Being a cloud-core DMS and using agile development methodologies means that we can keep dishing out top-notch solutions for our dealers and partners. Dominion DMS is easy to learn and simple to use. You have easy access from any web connection and you get to choose the apps you want and need to drive your success. Behold, VUE! Waving a magic wand to make DMS core fees vanish into thin air. Franchise dealerships can now save while still enjoying our best in class accounting, parts, sales, and service modules.
CONTENTS 6 A MESSAGE FROM THE PRESIDENT Embarking on This New Chapter Together By Coulter McMahen, President/CEO, LADA 8 A MESSAGE FROM THE CHAIRWOMAN Building Upon Our Collective Success By Kristie M. Hebert, Chairwoman, LADA 9 Dealer Day @ the Capitol 10 Troy Duhon Honored at the 2024 NADA Show 13 Credits for New Clean Vehicles Purchased in 2023 or After By Lance J. Kinchen, Breazeale, Sachse & Wilson LLP 16 The Latest FTC CARS Rule Developments and How They Impact Your Dealership By Toby Graham, KPA 19 How to Build a Consumer-Friendly Service Experience That Is Efficient By Sharon Kitzman, Dominion DMS 22 Dealer Advocacy Fund 24 The Grind We Know as the Car Business By Jason Rasti, The LDS Group 26 2024 Event Calendar © 2024 Louisiana Automobile Dealers Association (LADA) | The newsLINK Group, LLC. All rights reserved. Up to Speed is published four times each year by The newsLINK Group, LLC for the LADA 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 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 LADA, 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. Up to Speed is a collective work, and as such, some articles are submitted by authors who are independent of the LADA. While Louisiana Automobile Dealers Association 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. 2023-2024 EXECUTIVE COMMITTEE Kristie M. Hebert Arceneaux Ford Chairwoman Patton Fritze Red River Chevrolet Vice-Chairman, District 7 Rand Alford Alford Motors, Inc. Treasurer, District 15 Marshall Harper Harper Chevrolet GMC Immediate Past-Chairman Robert A. Grace Southpoint Volkswagen District 11-12 John R. Young John R. Young Chevrolet-GMC District 13 Mark A. Hebert Sr. Hebert’s Town & Country Ford Lincoln NADA State Director OUR TEAM Coulter McMahen President/CEO Katherine Carver Director of Events and Communications Krystal Hudson Executive Assistant and Membership Director Our a busin autom of the emplo O b a o e 4
fisherphillips.com | 36 Locations attorneys can help you steer through the labor laws affecting the car ness. Since 1943, we have been the labor lawyers of choice for mobile dealers. Fisher Phillips is dedicated to helping the members e Louisiana Automobile Dealers Association with their labor and oyment legal matters. We’re driven to help you succeed. 201 St. Charles Avenue, Suite 3710 | New Orleans, Louisiana 70170 Phone (504) 529-3834 • Fax (504) 529-3850 Timothy H. Scott tscott@fisherphillips.com Our attorneys can help you steer through the labor laws affecting the car business. Since 1943, we have been the labor lawyers of choice for automobile dealers. Fisher Phillips is dedicated to helping the members of the Louisiana Automobile Dealers Association with their labor and employment legal matters. We’re driven to help you succeed. Timothy H. Scott Partner New Orleans | Boston 504.529.3834 tscott@fisherphillips.com fisherphillips.com | 36 Lo Our attorneys can help you steer through the labor laws affecting the car business. Since 1943, we have been the labor lawyers of choice for automobile dealers. Fisher Phillips is dedicated to helping the members of the Louisiana Automobile Dealers Association with their labor and employment legal matters. We’re driven to help you succeed. 201 St. Charles Avenue, Suite 3710 | New Orleans, Louisiana 70170 Phone (504) 529-3834 • Fax (504) 529-3850 Timothy H. Scott tscott@fisherphillips.com fisherphillips.com 201 St. Charles Avenue | Suite 3710 | New Orleans, LA 70170 With almost 600 attorneys in 41 offices across the United States and Mexico, Fisher Phillips is an international labor and employment firm providing practical business solutions for employers’ workplace legal problems. FISHER PHILLIPS LLP
Embarking on This New Chapter Together A MESSAGE FROM THE PRESIDENT COULTER McMAHEN, PRESIDENT/CEO, LADA 6
I am honored and thrilled to address the membership in my first official president’s message in the Up to Speed magazine. It is with great humility and excitement that I step into this role, and I want to extend my deepest gratitude to each one of you for entrusting me with the great responsibility of leading our esteemed association. I am truly fortunate to be surrounded by a board and staff of dedicated professionals who share a common passion for the automotive industry in our great state. Your commitment to excellence has laid a strong foundation for LADA’s success, and I am eager to build upon this legacy as we embark on this new chapter together. As I assume this role, I am acutely aware of the challenges and opportunities that lie ahead. I am confident that, with your support and collaboration, we can continue to strengthen the voice of franchised new car and heavy truck dealers across Louisiana. Together, we will navigate the evolving landscape of our industry, advocate for our members and ensure the continued success of our association. I would also like to take this opportunity to highlight the ongoing dues renewal period. Your continued support is crucial to sustaining the impactful work we do. The LADA community is a powerful network that provides numerous benefits to its members, from advocacy and legislative representation to valuable industry insights and networking opportunities. Your dues play a crucial role in maintaining and expanding these offerings, allowing us to better serve you and our community. By the time you read this article, you should have received your dues renewal invoice via mail and electronically. I encourage each of you to renew your membership promptly and also share the benefits of LADA membership with your colleagues in the industry. Together, we can ensure that our association remains a strong and influential force, advocating for the interests of Louisiana’s franchised new car and heavy truck dealers. I am excited about the journey ahead, and I look forward to working closely with each of you to make a lasting impact on our industry. Thank you once again for this incredible opportunity, and let us embark on this journey together. I am excited about the journey ahead, and I look forward to working closely with each of you to make a lasting impact on our industry. 7
Building Upon Our Collective Success As chairwoman of the board, I am honored to continue serving alongside such a dedicated and accomplished group of individuals. Together, we have achieved remarkable milestones, and I am eager to build upon our collective success. Our association plays a crucial role in supporting and advocating for the franchised new car and heavy truck dealers in Louisiana, and I am committed to leading us through the dynamic landscape of our industry. In this ongoing chapter, I emphasize the importance of unity and engagement within our association. Your active participation is not only crucial to our collective success but also serves as a testament to the strength of our community. Together, we can amplify our voice, influence positive change and foster a supportive network for all members. As we are in the midst of the renewal period for membership, I urge you to consider the significant impact your continued support has on the vitality of LADA. Your renewed commitment will enable us to enhance our advocacy efforts, provide valuable resources and create a robust platform for collaboration. I am truly excited about the possibilities that lie ahead and look forward to continuing our journey together. Thank you for your ongoing support — let us embark on this next phase united in our commitment to the success of LADA and our industry. Kristie M. Hebert Arceneaux Ford A MESSAGE FROM THE CHAIRWOMAN Together, we can amplify our voice, influence positive change and foster a supportive network for all members. KRISTIE M. HEBERT, CHAIRWOMAN, LADA 8
01MK7923 R12/23 better with friends For life’s moments, big and small. We’re here with the strength of the cross, the protection of the shield. The Right Card. The Right Care. 9
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Troy Duhon Honored at the 2024 NADA Show More than 23,000 dealers and managers, OEM execs, allied industry and international guests wrapped up four days of education, networking, dealer franchise meetings and event programming at NADA Show 2024, held in Las Vegas Feb. 1-4. The highlight of the show was an evening filled with honors for some of the best dealers in the industry. Troy Duhon, 2023 Louisiana Dealer of the Year, was honored as the 2024 TIME Dealer of the Year Nominee. From buying his first dealership at 30 years old to starting his own nonprofit, Troy’s achievements exemplify the entrepreneurial spirit and generosity we pride our association membership on. Our entire association is proud to recognize Troy. His success in the industry and support of his community embodies the true spirit of the award. Congratulations, Troy! 11
On Solid Ground: Reducing Slip, Trip, and Fall Risks During the 2023 policy year, the Louisiana Automobile Dealers Association Self-Insurers’ Trust Fund (LADA-SIF) saw 75 claims in slip, trip, and fall injuries, which is a 21% increase from the previous year. These claims resulted in over $485,097 in direct losses making this category the costliest and the most frequently reported on-the-job injuries in 2023. Slip, trip, and fall injuries are problematic nationwide. According to the Safety National Council, in 2021, 850 workers died in falls, and hundreds of thousands were injured severely enough to require days off of work. A worker does not have to fall from a high elevation to suffer severe injuries. The Following Tips Can Help Reduce Slip, Trip, and Fall Injuries: Housekeeping: It is extremely important to maintain a clean and organized dealership, this will help minimize the risk of slip, trip, and fall incidents. Regular housekeeping practices such as cleaning up spills promptly, keeping walkways clear, and picking up all cords (e.g., air hoses and cables) can help prevent employees from getting injured. Footwear: It is recommended to have a footwear policy in place especially for the Service, Parts, and Detail Departments. This policy should require employees to wear slip-resistant, closedtoe, and low-heeled footwear to help reduce the risk of slip, trip, or fall injuries. Stairways / Steps: Always keep stairs clear of any objects, debris, or clutter. Employees should always use the handrails, walk slowly, and take one step at a time when walking up or down stairs. Maintenance: Conduct routine inspections to identify, report, and repair any damages of the interior and exterior of the building(s). All drains should have covers and block off any open holes or damaged floors. It is recommended to paint a bright yellow caution line in areas where there is a change in elevation to provide visual cues to employees and customers. Winter Weather Conditions: Have a plan established, that can be communicated to employees via text message / email / phone call, for icy conditions that colder temperatures can produce. This plan should include designating specific parking areas, entrances / exits, and passageways that can be safely accessed during cold weather events. To help avoid slick surfaces, place moisture absorbent mats, rugs, runners, and signage at the designated entrances / exits. If your dealership has safety & health or OSHA questions, please feel free to contact Risk Management Services’ Loss Prevention Department at 1-800-351-7475 or by email: lossprevention@rmsla.com. ENDORSED BY:
Credits for New Clean Vehicles Purchased in 2023 or After BY LANCE J. KINCHEN BREAZEALE, SACHSE & WILSON LLP Internal Revenue Code (IRC) Section 30D provides a tax credit with respect to each new clean vehicle that a taxpayer purchases and places in service. Section 30D has been amended several times, most recently by the Inflation Reduction Act of 2022 (the IRA). The discussion of credits for qualified previously owned or used clean vehicles under IRC §25E is beyond the scope of this article. A taxpayer may qualify for a credit of up to $7,500 under IRC §30D if the taxpayer buys a new, qualified plug-in electric vehicle (EV) or fuel cell electric vehicle (FCEV). The IRA changed the rules for this credit for vehicles purchased from 2023 to 2032. The amount of the credit depends on when the taxpayer placed the vehicle in service, regardless of the purchase date. Prior to the amendments made by the IRA, the base amount of the credit was $2,500 plus $417 for a battery with a capacity of at least five kilowatt hours and an additional $417 for each kilowatt hour of capacity in excess of five kilowatt hours, up to a maximum credit of $7,500 per vehicle. However, the IRA amended IRC §30D to provide a maximum credit of $7,500 per vehicle, consisting of $3,750 in the case of a vehicle that meets certain requirements relating to critical minerals and $3,750 in the case of the vehicle that meets certain requirements 13
relating to battery components. The amendments made by the IRA apply to vehicles placed in service on or after April 18, 2023. To qualify, a vehicle must have a battery capacity of at least seven kilowatt hours, have a gross vehicle weight rating of fewer than 14,000 pounds, be made by a qualified manufacturer, undergo final assembly in North America and meet critical mineral and battery component requirements. The sale qualifies only if the buyer buys the vehicle new and the dealer reports the required information to the buyer and the IRS. In addition, the vehicle’s manufacturer suggested retail price can’t exceed $80,000 for vans, sport utility vehicles and pickup trucks, or $55,000 for other vehicles. A buyer can also go to www.fueleconomy.gov to see if their vehicle is eligible for the new clean vehicle credit. The dealer’s first step in reporting is to register your business as a vehicle seller or dealer on IRS Energy Credits Online. For eligible clean vehicles placed in service on or after Jan. 1, 2024, the dealer or seller must submit all reports through IRS Energy Credits Online within three (3) calendar days of the date of sale at the website available by scanning the QR code. The dealer or seller must also provide the buyer with a copy of the accepted seller report submitted to IRS Energy Credits Online within three (3) calendar days of the date of submission. For more information on submitting time of sale reports, see IRS Publication 5863, “A Step-by-Step Guide for New and Used Clean Vehicle Dealers and Sellers for the Energy Credits Online,” as well as IRS Publication 5867-A, “Clean Vehicle Time of Sale Reporting User Guide.” As IRS Energy Credits Online provides real-time confirmation of a vehicle’s eligibility using VINs provided by manufacturers, it is strongly recommended that this submission occur prior to finalizing a sale and when the buyer places the vehicle in service. For vehicles placed in service in 2023, the information provided to the IRS is detailed in IRS Rev. Proc. 2022-42. Dealers or sellers must file reports within 15 days after the end of the calendar year (i.e., Jan. 15, 2024). The IRS had extended the due date for sellers and dealers to provide these reports to the IRS until Jan. 31, 2024. For vehicles placed in service in 2024 or later, providing the buyer with a copy of the seller report submitted to IRS Energy Credits Online and the confirmation that the IRS accepted the submission meets the seller’s reporting obligation. The IRS on Jan. 5, 2024, announced an extension for dealers and sellers of https://www.irs.gov/creditsdeductions/register-yourdealership-to-enable-creditsfor-clean-vehicle-buyers clean vehicles to submit time-of-sale reports. Sellers reporting on IRS Energy Credits Online became available on Jan. 1, 2024. To provide dealers and the IRS more time to submit and intake seller reports into this new system, the IRS temporarily extended the 3-day time period to submit time-of-sale reports provided in Rev. Proc. 2023-38 through Jan. 16, 2024. That meant dealers had until Jan. 19, 2024, to submit a time-of-sale report for vehicles sold from Jan. 1, 2024, to Jan. 16, 2024. In order to claim the credit, the taxpayer must generally file IRS Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit, with the taxpayer’s tax return. Beginning on Jan. 1, 2024, buyers can now elect to transfer their expected credit to a registered dealer, who will receive advance payments from the IRS in exchange for discounting the price of the vehicle. Buyers are limited to two transfers per year for their SSN/ TIN. The new rule allows buyers to claim the tax credit at a participating dealership at the point of sale. If you have any questions about the Tax Credits for Clean Vehicles, please do not hesitate to contact me. Lance Kinchen is a partner in the Baton Rouge office of Breazeale, Sachse & Wilson LLP. His principal areas of practice include automotive, corporate law, taxation, mergers and acquisitions, business succession planning, estate planning and probate administration. Contact Lance at lance.kinchen@bswllp.com. 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 14
LEGISLATIVE LABOR & LEGAL NEEDS NETWORKING IN THE KNOW WORKERS' COMP Connect with industry peers at one of LADA's events and empower your employees with educational opportunities through various webinar offerings throughout the year. Utilize access to LADA's onretainer labor and general counsels available to LADA members as questions around regulations and mandates arise. Stay on the forefront of industry issues with our Dealer Alerts, Legislative Updates, quarterly Up to Speed magazine, and online Membership Directory to connect you with other LADA members. The LADA Self-Insurer's Trust Fund leads the industry with low rates, low expense ratios, and consistent surplus returns, with over $101 million in member distributions returned. LADA's on-retainer CPA's at Hannis T. Bourgeois provide a wealth of experience to handle special accounting and tax needs for dealerships. We are your voice in both state and national legislative issues. Our staff monitors the ever-changing landscape of governmental relations, including titles, taxes, leasing, insurance, licensing, and more. TAXES & ACCOUNTING 225.769.5500 LADA@LADA.ORG
The Latest FTC CARS Rule Developments and How They Impact Your Dealership BY TOBY GRAHAM, KPA 16
If you haven’t heard, the FTC has paused the Combating Auto Retail Scams Rule (CARS) Rule which is also known as the Vehicle Shopping Rule. Let’s review what has happened so far, the scenarios that can play out, and the steps dealers should take going forward. The FTC’s newly announced Vehicle Shopping Rule has been a hot topic for dealers since it was announced in December. The Rule will have a profound impact on dealership advertising, sales and financing strategies prior to its effective date of July 30, 2024. The penalties for violating the Rule are steep. Violations of the Rule constitute unfair and deceptive acts and practices under Section 5 of the FTC ACT, and the FTC can impose penalties of $50,120 per violation. WHAT LED TO THIS PAUSE? On Jan. 4, the FTC published the Rule into the federal register. This is a typical part of their process. And, typically, it takes two or three weeks for it to be recorded in the federal register. The day after the rule was published to the federal register, NADA and the Texas Auto Dealers Association filed a petition for review in the Fifth Circuit Court. They challenged the Rule for a few reasons: • They had concerns about the wording of the regulation itself, along with questions about the definitions of certain terms. • They noted that the FTC did not follow the process called an Advanced Notice of Proposed Rulemaking (ANPRM). NADA and the Texas ADA argue that the Rule itself is improper. • They requested that the court expedite the matter for hearing and asked that the matter be stayed or that the regulation itself be stayed until the court can resolve the issue. Ten days later, the FTC announced that they were pausing the enforcement date for the Rule. They voluntarily decided to pause enforcement for the litigation to happen to eliminate any miscommunication to dealers. According to the FTC, “Petitioners’ arguments for a stay rest on mischaracterizations of what the Rule requires of covered motor vehicle dealers, including inaccurate claims that it will require dealers to overhaul their practices and substantially increase compliance costs. In fact, the Rule does not impose substantial costs, if any, on dealers that presently comply with the law, and to the extent there are costs, those are outweighed by the benefits to consumers, to law-abiding dealers, and to fair competition — as honest dealers will not be at a competitive disadvantage relative to dishonest dealers. Nonetheless, Petitioners’ assertions and suggestions that legally compliant dealers have to make unnecessary changes to satisfy Petitioners’ misunderstandings of the Rule have created uncertainty. Additionally, Petitioners are seeking expedited consideration of the PFR, and if that request is granted, a stay of the effective date pending expedited review should not postpone implementation of the Rule by more than a few months, if at all. Balancing the equities here, the Commission has determined that it is in the interests of justice to stay the effective date of the Rule to allow for judicial review. A Federal Register notice to reflect this action is forthcoming. Once the PFR’s merits are resolved, the Commission will publish a new document in the Federal Register establishing a new effective date.” WHAT DOES THIS MEAN FOR YOUR DEALERSHIP? There are a few scenarios that could play out from here. Scenario 1: The case is expedited by the court. Vehicle Shopping or CARS Rule is valid in whole or in part. At this point, the FTC might keep the July 30 effective date if the ruling happens fast enough, or the FTC might delay it a few months. Scenario 2: The case isn’t expedited by the court. The court may say, “You know what, FTC, you’ve already paused enforcement of the rule. Therefore, we don’t see a need to expedite it. And because of that, we’re going to go through the standard review process.” If the court finds the Rule valid in whole or part, the FTC will reset the effective date for a later date. Potentially later in 2024 or early 2025. It will be a bit later than if it was expedited. Scenario 3: The vehicle Shopping or CARS Rule is not found to be valid. Let’s say that NADA and TADA are correct in their arguments, and the court sides with them. The FTC will not be able to reset their effective date at that point, and they won’t be able to use the Rule as the basis of enforcement actions going forward. They might have to restart the process and come up with a new rule. MOST OF THE RULE IS ALREADY THE STANDARD IN THE INDUSTRY There are quite a few recent enforcement actions for legal advertising and fees that are already occurring in the auto industry. This is not a new trend. This has 17
been happening over the past couple of years. There have been allegations that each one of these dealership groups has essentially assessed fees that they were charging to consumers illegally. These enforcement actions are happening without the Rule. REGULATORS ALREADY HAVE MANY WEAPONS AT THEIR DISPOSAL One of the primary vehicles that the regulators can use is their ability to prosecute Unfair and Deceptive Acts and Practices. • The FTC, under section five of the FTC Act, has the ability to prosecute unfair and separate acts and practices. • The CFPB can do it under Dodd-Frank. • The states under their Consumer Sales Practices Act and Deceptive Trade Practices Act. They also have the ability to prosecute unfair and separate acts and practices. So those situations mentioned above would also be vehicle Shopping or CARS Rule violations. USING THE SAFEGUARDS RULE AS AN EXAMPLE The Safeguards Rule was established in 2003. In the 2000s, we started to see a lot of data breaches occur. The FTC started taking enforcement actions against businesses in response to these breaches. These enforcement actions reflected omissions like not having multi-factor authentication in place, encryption, or continuous monitoring. Businesses got in trouble for not providing employee training. The FTC kept building these omissions into their enforcement actions and into their orders and faulting them. Over time, the FTC revised the Safeguards Rule, establishing minimum standards. Now, for minimum standards, dealers are required to have multi-factor authentication, encryption and continuous monitoring, along with many other things. This parallels what we see progressing with the CARS Rule. The FTC is taking pains to outline the things that they consider already to be unfair and deceptive acts and practices. PUT YOUR DEALERSHIP ON A PATH TO COMPLIANCE To avoid exposing your dealership to multimillion-dollar settlements, take the proper steps to achieve and maintain advertising sales and finance compliance. KPA’s solution provides dealers with the tools they need to comply with the numerous federal and state laws and regulations that impact dealership advertising, sales and finance practices beyond the requirements within the Rule. It also provides consumers peace of mind, knowing that their dealership follows transparent best practices when selling or leasing their vehicles. Learn more about CARS Rule Compliance solutions at kpa.io. Please do not consider this as legal advice. If you have specific legal questions, reach out to your attorney so they can answer them. 18
How to Build a Consumer-Friendly Service Experience 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 consumerfriendly 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 That Is Efficient BY SHARON KITZMAN, DOMINION DMS emojis might seem childish, but it makes me smile when I see the text, and I open the text to read the whole reminder. My dealership could do better with the appointment reminder process or the linkage between what I have already filled out online and the questions I am re-asked when I get into the service lane. This level of accessible customer service keeps me coming back. Similarly, the automotive industry could take a cue from the airlines and ensure they check in customers as quickly as possible. I know what you are thinking. Really, the airline industry? But take yourself back 10 years before the kiosks and bag drop, when everyone waited for a live person to help them. I remember my first kiosk experience with Delta, thinking, “This is never going to stick,” but now it is the rule, not the exception. The airlines invested in consumer apps to smooth processes and satisfy the desire for self-service. They also changed their operations, funneling the travelers to the kiosks the minute they walked in the door with a greeter. The key is providing an excellent checkin process, where your consumer can self-service the things that make sense, and your advisors use the data supplied 19
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. 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. 20
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/ 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 reengineering, 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. What will tomorrow look like? hubinternational.com Scan the QR code to learn more. It may not be what you expected. With HUB, you have a partner who is committed to supporting and protecting you, assisting to align business and personal goals to protect your profits and drive organizational vitality and resilience. Risk & Insurance | Employee Benefits | Retirement & Private Wealth David W. Alligood, Senior Vice President Office: 225-218-2410 david.alligood@hubinternational.com 21
PLATINUM Group 1 Automotive Kenworth of Louisiana Lake Charles Toyota Landers Dodge Chrysler Jeep Tommy Harvey Shreveport Bossier New Car Dealers Association Price LeBlanc Auto Group GOLD Alford Motors Inc. Arceneaux Ford Inc. Baton Rouge New Car Dealers Association Dantin Chevrolet Foy Chevrolet Buick GMC Giles Nissan Harper Chevrolet GMC Hebert’s Town & Country Dodge Chrysler Jeep Honda of Covington Hollingsworth Richards Ford Mike Harper Ralph Sellers Motor Company Richards Honda Trapp Cadillac Chevrolet Van-Trow Toyota LLC Walker Automotive SILVER Acadiana Chrysler Dodge Jeep Acura of Baton Rouge Alford Motors Inc. Ann Barker-Fairley Ascension Honda Audi Lafayette Audi New Orleans Brett Barker Chris Barker Geaux Chevrolet Hyundai of Metairie John Harvey Toyota John R. Young Chevrolet GMC Keith Barker L. Keith Hanks Michael Barker Ryan Chevrolet Shelter Corley Ford Ltd. Sparks Nissan Kia Southland Dodge Chrysler Jeep LLC Toyota of Slidell BRONZE Courtesy Chevrolet Buick GMC Cadillac of Ruston LLC John Roussel P.K. Smith Motors Inc. Robin Ford Ross Downing Chevrolet Inc. Southpoint Volkswagen Southwest Volkswagen Inc. Toyota of New Orleans Waller Singer Chevrolet Inc. White Ford LLC Thank you to those listed above for your contribution! To make a tax-deductible donation to the LADA Dealer Advocacy Fund, please visit www.lada.org/dealer-advocacy-fund. The LADA Dealer Advocacy Fund is 501(c)(6). Please consult with your legal and tax advisor as to the taxability of any donation made to the fund. 22
With your help, we can clean up our roa ways. While supplies last, eep Louisiana eautiful will provi e the following to participating ealerships free of charge. he campaign launches in ay! A complete roa si e litter re uction campaign that is positive and inviting to your customers. A vertical anner to isplay in your dealership showroom supporting the campaign. Litter prevention kits distributed by the dealership to customers at the time o purchase. its will include a car litter bag, litter prevention tips, and a coaster with the litter hotline number. A igital toolkit. The tool it will include a press release template to announce your partnership, digital ads, social media graphics, and sample posts. Questions? ontact info@keeplouisiana eautiful.org. Visit keeplouisiana eautiful.org to learn more aout litter prevention. Scan to Si n p! Supplies re Limite . First-Come, First-Ser e . Why put the brakes on litter? Over 143 million pieces o litter are on ouisiana’s roa ways. Over 79% o roa si e litter is rom motorists. The litter pro lem costs ouisiana over $91 million each year. 9 % o ouisianans elieve litter is a pro lem where they live. The Put the ra es on itter campaign rom eep ouisiana eauti ul o ers your automobile dealership an opportunity to help reduce litter along our roadways.
THE GRIND We Know as the Car Business As we sit in Q-1 of 2024, it’s become very clear that the landscape in our industry has drastically changed and changed quickly! In 2023, we witnessed inflation, interest rates topping a 20-year high and global conflicts, which add up to economic uncertainty for the consumer. We watched as our front gross eroded, expenses increased, the used car market dropped and inventory was swiftly on the way. All this on the heels of the best, and may I say, easiest three years in the history of the automotive business. Everyone made a lot of money with little effort. During a recent conversation with a Baton Rouge dealer, he shared words that are indicative of where we stand: “Our guys got sloppy. We forgot how to sell; it was too easy, and now we are in a pinch.” We are back to the grind that we know as the car business! So, what should we do? BRINGING BACK THE FUNDAMENTALS Dealers are looking to get tight processes and consistency back in their showrooms. Early management intervention, qualifying conversations, quality walkarounds/demos, proper BY JASON RASTI THE LDS GROUP 24
turns to the F&I department and consistent sales meetings are some of the fundamentals that many sales teams have moved away from. As a result, we have continued to diversify our training offerings here at LDS, making sales and sales management training a top priority this year! Not only are our territory managers doing more in-dealership sales training than ever before, but we are also devoting every Wednesday to Sales Management Training on our LDS Virtual Coaching Platform! As you may know, in April 2020, as a response to the COVID-19 pandemic, we started virtual training via Zoom. We continue to have 100+ attendees for the daily 15-minute sessions. Although this has been primarily F&I focused, we are now doing a weekly session on topics such as holding productive sales meetings, the dos and don’ts of effective sales training, hiring winners and other salesrelated topics. NEW PRODUCT OFFERINGS Speaking of lower front grosses, dealers have been asking us for more products to bridge the gap! Some of our newer products include Ceramic Safe-Shield Protection, Windshield Protection, Short Term Dealer Certified Programs, GPS Location Services, and our latest addition, Precision Protect! Some of these products are offered in the traditional fashion in the F&I office, while others, such as Ceramic Protection and GPS, are primarily presented and sold by the salesperson up front. Consumers are seeing value in these products, leading to high penetrations and increased profit margins for the dealers utilizing these tools. Those of us who have been at this for a while know when our business takes a turn, it’s time to make changes. At LDS, we are evolving to ensure we are prepared to offer the best resources to our Louisiana dealers! Please contact your LDS territory manager or myself for assistance. We would love to help! 25
2024 EVENT CALENDAR 2024 Louisiana Regular Legislative Session March 11-June 3 LADA Dealer Day at the Capitol April 9 85th Annual LADA Convention June 19-23 The Greenbrier, West Virginia 26th Annual LADA Golf Tournament October 15 University Club, Baton Rouge Future Convention Dates June 10-15, 2025 June 17-21, 2026 WWW.LADA.ORG 26
Integrated Software Platform Expert Consulting Award-Winning Training Your Safety & Compliance Partner Improve Safety. Lower Risk. Save Money. To learn more visit kpa.io/automotive or reach out to info@reply.kpa.io.
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