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8 ©2024 Utah Auto Dealer | The newsLINK Group LLC. All rights reserved. Utah Auto Dealer is published four times each year by The newsLINK Group LLC for the New Car Dealers of Utah 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 circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the New Car Dealers of Utah, 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. Utah Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of the New Car Dealers of Utah. While the New Car Dealers of Utah 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. 14 EXECUTIVE DIRECTOR’S MESSAGE 6 Taking Time to Set Priorities By Craig Bickmore, Executive Director, NCDU 8 5 Ways to Prioritize Employee Mental Health 10 Stand Up and Vote, Utah! 12 Climbing the Automotive Industry Ladder of Success By Sharon Kitzman, Dominion DMS 14 Service Warranty Audits Putting Your Best Foot Forward By Justin Carr, Vice President of Sales and Marketing, Warranty Processing Company 18 The Key to Staying Ahead of the Pack By America First Credit Union 21 When Saying Less Gets You More 22 NADA Market Beat: August 2024 By Patrick Manzi, Chief Economist, NADA 23 Don’t Miss the NADA Show 2025 Expo 6 CONTENTSPUB. 6 2024 ISSUE 2 4 UTAH AUTO DEALER
DominionDMS.com (866) 928-3210 1515 South Federal Highway, Suite 406 Boca Raton, FL 33432, USA VUE REDEFINES OPERATING IN “THE CLOUD” THE NEW CLOUD - CORE DMS LEVERAGE A DMS WITH A BETTER VUE Contact a DMS Advisor • Straightforward Agreements • Your Tech Stack - Your Way • Unlimited user access • Forever data retention Operate without constraints! • Built ground up • 3.5K Microsoft Security Pros monitor 24/7 • Robust backup & rollover design • Experienced automotive team A new age of digital efficiency is here! • Streamlined Onboarding • Ideal for new and experienced employees • Screen designs prioritize simplicity • Complexities eliminated Stay productive & avoid disruptions typical with DMS transitions. • Proactive quarterly visits • Optimization • Phone, Chat and Online Everyday, we demonstrate our commitment to you. Drive your dealership forward, focus on what matters most. VUE redefines operating in “the cloud”. Go above & beyond other traditional DMS models. Provides a transformative experience for your team. FREEDOM CLIENT EXPERIENCE CLIENT ENGAGEMENT & SUPPORT FOUNDATION
Taking Time to Set Priorities CRAIG BICKMORE, EXECUTIVE DIRECTOR, NCDU Dear Members, It’s hard to believe this year is more than half over. With so many things demanding our attention — both in and outside the workplace — it is sometimes hard to focus on the things that are most important. Namely, are we taking care of ourselves? I think it’s a good time to slow down and take some time to set priorities, celebrate wins and be present in the moment. Our industry never stops. It is 24/7, always changing and always on the go. Finding time during the day to focus on you is important. Studies have shown that taking time for yourself throughout your work week is beneficial for a number of reasons. It promotes good physical and mental health, helping you manage stress and enhancing your resilience. In other words, “Slowing down is sometimes the best way to speed up,” as Mike Vance so wisely stated. Slowing down allows you to prioritize presence over productivity. It helps you fully engage in your activities — whether it’s work, spending time with loved ones or simply enjoying a meal. Being productive is important, but focusing solely on completing tasks can cause you to miss out on amazing things happening around you. Shifting your mindset can lead to more enriching experiences. Being open to new experiences is another way to be present, which is good for your mental health. Doing the same thing repeatedly stifles creativity. As an association, we work hard to plan training seminars, educational events and fun conferences where you can slow down and get away. Join us at one of our upcoming events and, hopefully, bring a friend. We are only as strong as our membership. The more members, the better! I encourage you to take some time to slow down and enjoy all that we have been blessed with. I am always a phone call away if you simply want to catch up, need help or have a suggestion. Regards, Craig Bickmore EXECUTIVE DIRECTOR’S MESSAGE 6 UTAH AUTO DEALER
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Paul Cluff, paul.cluff@bofa.com business.bofa.com/dealer ©2023 Bank of America Corporation. All rights reserved. DFS-699-AD 5949042 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
The importance of prioritizing the mental health of your employees cannot be overstated. Ensuring the overall well-being of the people who build up your business is vital to its direct success. Mental health issues, like stress and anxiety, are at an all-time high in the workplace. In fact, 50% of full-time U.S. workers have left a previous role due, at least in part, to mental health reasons. While workplace mental health has traditionally been the responsibility of HR teams, it’s now vital for the leaders of the organizations to take this into their hands as well, in order to fight against burnout and stress. Here are five ways you can help your employees and promote mental health in the workplace: 1. Open the conversation. One of the easiest and best ways to let your employees know you care about their mental health is to tell them you care and open up the conversation about mental health-related issues. Every team member is certainly entitled to their privacy, so it’s important to create a safe space and encourage managers to invite employees to share how they’re feeling — their work-life balance, their workload and how connected they feel to their work and team. Managers should also make their employees aware of company resources for mental health support and encourage them to seek help if needed. 2. Create a task force or group dedicated to employee well-being. It’s important to provide a group specifically designated to help employees navigate their mental health issues, via education and support. Mental health issues can be extremely difficult to talk about, so creating a group for them to turn to, essentially a safe space, will allow them to feel more comfortable seeking help. 3. Normalize mental health days. Everyone needs a break at some point. Allow your employees to feel comfortable taking a mental health break by offering a generous PTO package and encouraging your leadership team to take mental health days as a model for the rest of your employees. You can also incorporate perks like Summer Fridays, where members can take a half-day on Fridays or a self-care day once a month. Allowing your employees to take a break from time to time will allow them to be their best selves when they come back to work, rather than being burnt out and working on a low battery. 4. Build mindfulness activities into the workday. As we all know, the workday can be hectic and stressful. For many people, work is a leading cause of stress. Many things at work can cause stress, whether it’s from the stress of meeting a certain quota, difficult clients or conflict with coworkers; slowing down, as 5 Ways to Prioritize Employee Mental Health 8 UTAH AUTO DEALER
counterintuitive as it may sound, is necessary from time to time. Taking time to pause in the midst of a storm can offer people the power and energy that they need to push through. Uniting your team in mindfulness will not only lower levels of stress, but can also help strengthen coworker relationships and reduce conflicts. Ways to encourage mindfulness activities at work can include breathing exercises, listening to calm music or using a meditation app. 5. Promote learning and development at work. According to SHRM 2024, 44% of U.S. employees feel burned out at work. One way to combat burnout in your employees is to help your employees feel that they are learning and progressing. If someone feels that their work has a purpose, or that they have potential to advance in their careers, they will feel more fulfilled and empowered. Offer them the tools to learn more and magnify their positions. Offer them incentives to break up hours of mundane work and promote a “big‑picture” ideology to give them purpose. Another way to help employees maintain their mental health is to create opportunities for employees to learn about the importance of doing so, and how they can address mental health issues they may face at work. Offering courses and training sessions aimed at helping them grow both mentally and within the field will go a long way. It can also remove the stigma and help them feel more comfortable communicating their issues. Consider customization to help your employees learn about specific ways they can learn to deal with certain mental health issues that may arise from their own roles. According to the “Mental Health at Work Report,” employees who felt supported by their employer with their mental health were 3 times more likely to feel comfortable talking about mental health at work and 5.6 times more likely to trust their company and its leaders. Not every person will respond the same to the methods you may use to support them. That’s why it’s important to take a multi‑faceted approach and offer your employees multiple ways to improve their mental health on an ongoing basis. If you prioritize your team members’ mental health, your workplace will reap the benefits. It will foster a more positive work environment, with employees better equipped to tackle their workloads and produce great results. Successful businessman Richard Branson once said, “If you take care of your employees, they will take care of the clients.” Take the steps today to create a safe and supportive environment for your employees — for them, for you and for your business. 9 UTAH AUTO DEALER
Stand Up and Vote, Utah! “The future of this Republic is in the hands of the American voter.” — Dwight D. Eisenhower 2024 brings one of the busiest election years Utah has seen in a while. Voters are set to weigh in on the races for the U.S. Senate, House of Representatives, governor, president of the United States and much more! We need every member of NCDU to vote to elect pro-dealer, pro‑business candidates. Voting is not only a civic duty, but it is also a fundamental right in any democratic society. By registering to vote, you can have a significant impact on shaping the future of your community, state and nation. NCDU encourages you to ask questions and get to know the candidates. Whether you or your employees are first-time voters, need to update your voter registration information or need to find your polling location, here are the resources you’ll need to make your voice heard. Registration Status Check your Utah voter registration status and find polling locations near you. https://secure.utah.gov/voterreg/ login.html?selection=REGISTER Registration Application Download the Voter Registration Application. https://vote.utah.gov/ register-to-vote-or-update-your-voter-registration/ Utah Election Dates and Deadlines Find out when Utah elections will be held at the local, state and federal election level. https://vote.utah.gov/wp-content/uploads/ sites/42/2024/02/Utah-Election-Calendar-VoterVersion-2024.pdf 10 UTAH AUTO DEALER
RETAIL WARRANTY REIMBURSEMENT ARMATUS WORKS WITH 63% OF UTAH DEALERS ON AVERAGE, UTAH DEALERS ADDED $98,880 IN LABOR UPLIFT ANNUALLY ON AVERAGE, UTAH DEALERS ADDED $109,368 IN PARTS UPLIFT ANNUALLY ARMATUS HAS COMPLETED OVER 164 SUBMISSIONS IN UTAH If you have already completed a submission in-house or with another vendor, you may still have significant opportunities to gain more. If we can’t improve your results, you owe us nothing. Between our scientifically proven optimal results, and our speed of processing, we will literally pay our own fee. Reach out to us today for a no-obligation evaluation of your parts and labor rates. OUR COMMITMENT TO OUR CLIENTS: ÙYou Won’t Lift a Finger: Armatus does all the work for you. ÙFully Contingent Fee: You only pay when you are approved. ÙSpeed and Accuracy: No one can complete a submission faster. ÙData Governance: Fully FTC compliant (888) 477-2228 info@dealeruplift.com WWW.DEALERUPLIFT.COM
Climbing the Automotive Industry Ladder of Success BY SHARON KITZMAN, DOMINION DMS In the auto industry, there is a gap between the number of women in leadership and those who buy cars. Maintaining that discrepancy is risky because it shows a lack of innovation when serving the market. Interestingly, women buy 62% of all vehicles today. Even if they don’t purchase directly, they influence 85% of car-buying decisions. Yet, while more women are in automotive leadership roles than ever, the statistics are still not great. According to Deloitte’s recent study, women account for 47% of the labor force but only 27% of the auto-industry workforce, even though those who do really enjoy it (Women at the Wheel study). The 330 women surveyed, also in a study by Deloitte and Automotive News, have an average tenure of 15 years at the same company and over 26 years in the industry. More than 80% are senior managers (directors, vice presidents and other C-suite occupants), and almost 60% are in marketing, sales, operations or product development. In most industries, women prefer conducting business with other women. Whether it’s their banker, doctor, lawyer, psychologist or salesperson, most women want to deal with the same gender because they feel more heard than when dealing with a man. Even though most women have done their research, they want someone who can understand them and listen. Can a man do this? Absolutely! But sometimes, women need to see another woman in the business before they will walk through the door in the first place. So why are there not more women in our industry? From the day in 1882 when Bertha Benz became the first person to complete a long-distance automobile trip, women have popularized the automobile and staged and led many noteworthy developments. 12 UTAH AUTO DEALER
There are many reasons why the auto industry fits well with women, and perhaps we all need to do a better job of highlighting those: 1. It’s a great industry for a career change. Many people find the need to switch careers, and the auto industry is an exceptional place to land. For many women looking to return to the job market after a leave of absence, the auto industry has many soft-skill jobs that offer a solid career path, from accounting to finance and beyond. 2. The opportunity to learn new skills. The auto industry offers a wide range of positions, each requiring specific skills to be learned and mastered. 3. A wealth of lateral job moves. Not all job moves need to go straight up. The auto industry has many opportunities that zig-zag, yet they still allow for growth. 4. Charting a career path. The auto industry offers excellent opportunities for advancement. It’s a matter of being observant, asking questions and seeking out the opportunities that arise often in most dealerships. One of the best approaches to success in the auto industry is developing a strong network of allies, mentors and good people to know. And I think there’s no better industry than the automotive industry to start your network. Most dealer principals have more than one story about the people who taught them the business and set up their career trajectory for success within the business — and they typically want to return the favor. Another great source for your network is tapping into your vendor relationships, especially if you already work in the auto industry. Strong vendor partnerships are among the greatest strategic growth tactics and best practice resources available to nearly every industry, including the auto industry. By collaborating with suppliers and vendors, within the framework of a true partner relationship, you can multiply success and profits exponentially. And the best part? Everyone benefits. A genuine mutual relationship that promotes problem-solving is an advantage for profit margins and creates a more productive and engaged organization that focuses on quality outcomes. While this should be a best practice for everyone, it’s especially important to women in the auto industry. As women in the auto industry, it’s important to identify what resources you need to do your job successfully, what resources influence your job area, and what resources can further your career and connect with them. Strong vendor relationships allow you to leverage your time, and strong mentor relationships give you the inside track on how to get things done. The future of women in the auto industry is strong; it won’t remain at 27%, and that’s a good thing. Study after study has shown the importance of gender diversity in all industries, including the auto industry. Companies with diverse management teams experience 19% higher revenue and are 70% more likely to enter new markets. Furthermore, diverse teams are 12% more productive. Better still, turnover goes down 45%. In the automotive industry, where technological advances and shifting consumer demands drive rapid change, embracing diversity and inclusion has never been more crucial. 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. Sharon Kitzman is passionate about creating and nurturing partnerships within the automotive industry and regularly discusses the many vendor products and services within the auto industry on her VUE Points podcast. Scan the QR code to listen. https://www.dominiondms.com/podcasts/ 13 UTAH AUTO DEALER
Over the past few years, warranty audits have become mandatory. They are no longer driven by your dashboard or the health of your dealership in the eyes of the manufacturer. They are happening more randomly as manufacturers work to claw back warranty dollars however and wherever they can. Planning for an audit includes having strong processes in place before a manufacturer pays you a visit. Preparing the claims for presentation once the audit comes can be difficult if your team isn’t organized. Challenging the findings will be daunting if your team doesn’t have a strong grasp of the manufacturer’s policies and procedures and the state laws that can help protect your money. Falling short in an audit scenario can be incredibly damaging for your business. Reputation, monetary loss and key players time being consumed in a market that needs their expertise are just a few reasons why it makes sense — on many levels — to be proactive. The good news is there are tools out there to help. After dealing with the pandemic, supply chain shortages and a changing economy, the auto industry is trying to find its center. Dealers are looking to fixed operations to fill the short fall of smaller profit margins experienced on the front side of the house. This high level of disruption to dealerships has changed many long-standing policies. This fact alone increases the likelihood of things slipping through the cracks. When this is paired with new staff that may not be fully trained, the stage is set for mistakes, as well as the probability of poor decisions. Since warranty audit visits are back, you are creating a high-risk, high-liability scenario if you are not prepared with a document management process that has vigorous checks and balances. Knowing this begs the question: Does your team have efficient and consistent processes in place? In a typical warranty audit, most manufacturers review 50-100 VINs. We all know how much detail, as well as supporting documentation, is involved in warranty claims. This equates to many labor hours pulling documents, checking for completeness and accuracy and re‑filing the requested documents. Additionally, compiling all this information can lead to misfiling down the road or result in lost documentation. Dealers who do not have a solid electronic system for organizing their documents are putting themselves at great risk. Employee Training Given the complexity of the warranty process, regular reviews and consistent reminders are a necessity. This may require training service and parts employees to follow all the necessary steps through the life cycle of a repair order to make sure nothing is missed. It begins with the client booking an appointment for service and doesn’t end until the claim is 100% properly paid and filed for review, should there ever be a need to look back. This requires creating, writing down and making those procedures and policies available to employees. Don’t forget it’s extremely important to keep employees accountable for the process. Would you take a long road trip without a map? This would likely end poorly, having wasted lots of time in the process. Service Warranty Audits Putting Your Best Foot Forward BY JUSTIN CARR, VICE PRESIDENT OF SALES AND MARKETING, WARRANTY PROCESSING COMPANY 14 UTAH AUTO DEALER
Traveling with no road map is like holding your team to a process that isn’t written down and clearly documented — only this time, you’re not just getting lost, you’re losing lots of money. It only takes one employee not following the process to cost your dealership thousands of dollars. Thousands of dollars that could have been avoided. In order to steer clear of this, employees should know their role in the process and make sure they complete their responsibilities before moving the claim forward. Below are just a few examples of some of the key players touching a warranty claim: • Service advisors should make sure the VIN Inquiry is run and attached, prior approvals are handled, signatures are present and repeat repairs follow manufacturer guidelines. • Technicians are responsible for documenting the 3 Cs (Complaint, Cause, Correction) with diagnostic test results. Failure to include all and complete 3 Cs on any line may lead to a chargeback during the audit. They will ensure the Technical Service Bulletins are followed in their repair and noted in their story. They are responsible for their time punching and making sure all one-time-use parts are replaced and charged out on the repair order. • Managers need to make sure they are authorizing add-on repairs, multiple component replacements, straight time and more. These are just a few important examples of the hurdle’s dealers can run into during an audit. Another area where documentation must be researched thoroughly is customer eligibility for incentives. Client information and eligibility are being scrutinized at a new level. You always want to avoid giving the impression of misconduct or being tagged for fraudulent submission by the manufacturer. Fortify yourself and your team by communicating with them about the expectations of an audit so they can be prepared. A “no exceptions” policy pertaining to paperwork and warranty work should be understood by properly trained employees. Fraud should never be taken lightly. It is a serious issue that warrants serious action. Help your new hires understand committing warranty fraud or performing unnecessary work will result in termination without warning or second chances. Implementing self-audits is a great way to help your team stay compliant. Designate a Compliance Officer Routine self-audit reviews are one of the best ways to ensure your program is compliant when an actual audit happens. Designate an employee as a compliance officer and assign them to regularly spot-checking claims and pulling a few job cards to check for complete, accurate information. You can direct them to conduct these weekly or monthly, but make sure it is consistent. Along with this, there are some important criteria to keep in mind: This position should be assigned to someone other than the service manager or an employee who is incentivized by closed claims or collected dollars. This is to make sure there is transparency and integrity in the process. Extra compensation can be considered for this person since their workload will increase, but their incentive should be based on a clean audit. Make sure their focus is on keeping all the dollars the dealership deserves instead of just closed claims or paid receivables. Electronic Document Storage There’s no better time than now to invest in electronic document storage! Stuffed filing cabinets and overflowing document boxes can lead to disaster. A single missing document could result in a costly chargeback for your dealership. Using web-based software to scan and store documents electronically provides a simple solution with significant benefits. It can take your storage from looking like Grandma’s attic to an organizer’s dream. Even better, all documents become instantly available through a quick search, allowing you to compile required auditing materials in seconds instead of hours. Scanning may not be anyone’s favorite pastime, but it is essential. Scan all documents, including signed invoices, receipts, technician notes, diagnostic tests and warranty claim reimbursement forms. By using a document scanning provider, you can quickly locate all documentation associated with each VIN through web-based software, making the audit process 15 UTAH AUTO DEALER
painless and smooth. Typing each VIN into a search bar is much easier than searching through filing cabinets for hundreds of documents. This simple solution offers a big payoff. Like most things in life, an electronic storage system is only as good as what you put into it. Even the best storage system can’t compensate for careless and haphazard scanning. Assign one of your stronger employees who will have a direct role in the audit presentation process to organize the scanning. Their time will be worth keeping your business in order if it can prevent chargebacks. Given that the role has a direct impact on your bottom line and dealership health, it should not be put on the back burner for an entry-level clerical employee to tackle. Hire Professional Help Hire someone in the industry who is familiar with the warranty process. It will pay off in the long run by saving you time and money as well as relieving unnecessary stress — and who doesn’t need that? Make sure they follow best practices and document consistently with uniform standards. You will want them to customize internal auditing procedures for your specific dealership or dealer group. Many companies offer health checks if you don’t have the bandwidth to perform a self-audit. Others offer self-audit checklists so you can perform informal audits on a regular basis. It’s best to find someone with significant experience who has navigated the industry over a long period of time. If they have their finger on the pulse of the industry, and they can help get your employees working together as a team or better yet, help in the training process, it’s a no-brainer. Remember, those who are prepared need not panic. Have consistent policies in place, and be organized so you can put the cleanest, most complete repair orders in front of the manufacturer when they ask to review them. Know the manufacturer policy and procedure manual as well as your state laws so no dollars are taken from you unnecessarily. Review the final summary with your team to identify accountability. Then, make sure to retrain and update your process list so you know your dollars are protected. Follow our advice above, and audits will be a breeze. Get your dealership in order and make the stress of warranty audits a non-issue! Warranty Processing Company has been helping dealerships since 1986. They have a number of service plans to fit your needs. Their knowledge of cars, industry experience and extensive service background make them the perfect partner to increase your warranty gross profits. Justin Carr is the vice president of sales and marketing at Warranty Processing Company, which recently relocated to Texas. Justin works with dealers nationwide to increase efficiencies within service departments and educates dealer staff on why efficiencies. To learn more, visit warrantyprocessing.com. 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. utah-auto-dealer.thenewslinkgroup.org 16 UTAH AUTO DEALER
Running a business in the automotive industry can be like racing on a track that’s always changing. Much like in any high-level race, consistently winning depends on how thoroughly you understand your vehicle and its systems, how efficiently you spend your time and resources, and how skillfully you navigate the course. However, since this course never stops shifting, those who consistently make it to the winner’s circle in this competition are the ones who are also best able to adapt to the unexpected curves. In such a dynamic and often unpredictable marketplace, no one knows what it takes for a dealership to succeed better than the people who own and manage it. You understand that whether you’re facing supply chain issues, evolving customer preferences, friction within your sales and service processes, or any of the myriad other obstacles or surprises, your expertise and experience, your preparation and — maybe most importantly — the people you have in place are what will help you meet each challenge and come out on top. Who’s on Your Team? Assembling a championship team goes well beyond staffing your organization with talented and dedicated personnel. It requires forming relationships with outside vendors and partners who both complement your strengths and can help fill in any gaps in your service or logistics capabilities. It means choosing the right financial partner — and there’s no financial teammate better ready and able to help you win and win again than America First Credit Union. America First is Utah’s No. 1 auto lender for a reason — make that many reasons. We offer competitively low rates and turnkey financing options that help dealerships turn browsers into buyers. We provide frequent on-site support to keep you up to speed on The Key to Staying Ahead of the Pack our latest offerings and promotions and to make sure we’re there to help in any way we can. And we give dealerships access to a full range of business tools and merchant services to help them maximize their cash flow, secure the financing they need to operate and grow, streamline their processes and make the most out of every dollar that comes in or goes out. Business Visa® Credit Cards Cashflow can make or break any business, which is what makes the flexibility and buying power of an America First Business Visa Platinum card so valuable. We offer a variety of options, including the Business Cash Back + card, which gives you 2% cash back on fuel purchases and 1.5% cash back on everything else, and the Business Rewards card, which earns you one point for every dollar you spend. All our Business Visa cards come standard with no annual fees, a competitively low interest rate, industry-leading security features, the backing of our unbeatable personal service and more. We’ve designed our lineup of Business Visa Platinum cards to give every organization the tool that makes the most financial sense to them. Business Loans and Lines of Credit Having reliable access to affordable financing is essential to any business trying to take the lead in a field as BY AMERICA FIRST CREDIT UNION 18 UTAH AUTO DEALER
competitive as the automotive industry. That’s one more reason why America First is such an indispensable member of any dealership’s crew. Our commitment to helping businesses secure the funds they need is second to none, and it’s that dedication that has made us the No. 1 SBA lending credit union in the country. Whether your business is big or small, we understand what it takes to grow, and we’ve got the lending options to help you do it, including SBA loans, commercial auto loans to help you build out your fleet, equipment loans, unsecured-capital loans, business acquisition loans or commercial real estate loans, or business lines of credit. High-Yield Business Checking If your dealership needs the ability to write high-dollar checks but still wants to take advantage of the best market rates, High-Yield Business Checking might be exactly what your bottom line has been looking for. It gives you easy access to your money for the everyday transactions while still earning you higher dividends on your account balance. And pairing it with a High-Yield Savings account and America First Business Visa card can help you fine-tune your cash flow and keep your dealership’s financial engine humming. Future-Proof Your Finances Business moves fast, especially in the automotive industry, but no matter what new shape the course might take in the next week or the next 10 years, your customers’ expectations of quality, personal and valuable service will never change. You and your dealership deserve to have the right people and tools in place to help you not only meet but exceed those expectations. You deserve a financial partner who will be with you every mile and every sale. You deserve to take that checkered flag — and America First Credit Union is here to make sure you do. 19 UTAH AUTO DEALER
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When Saying Less Gets You More “Less is More” is a popular phrase that has been tossed around for years, even dating back to the ancient Greeks. You may have heard it in various settings — perhaps the Minimalist Movement comes to mind. “Less is More” is a simple yet powerful concept that can greatly impact your life. The essence of the principle is this: Instead of always striving for more, sometimes focusing on less and simplifying things is better. By doing so, you can reduce stress, increase clarity and achieve greater satisfaction in your daily life. This principle can be applied to many different areas of life — from home organization to cooking and more. You wouldn’t want to ruin a nice steak by putting too much salt on it! So, why not try embracing the idea that less can sometimes be more? This premise may be more valid in the sales business than any other. We often teach salespeople that in order to excel, they need to be product-knowledge experts on each vehicle model the dealership offers. And while this is true — product knowledge can be a catalyst for growth, confidence and professional development — it must be relayed in moderation. F&I managers are also encouraged to become experts in their product, or it could reflect badly on their business. Nobody wants to be sold anything by someone who doesn’t know what they’re selling. If the salesperson or F&I manager has put forth the effort to become a product expert, they should be prepared and ready to share what they’ve learned in response to a customer’s question. The issue is that some people tend to share excessive information about a product when asked a question, instead of providing a direct answer. This can turn their extensive product knowledge into a negative rather than a positive. Whether prompted or not, sharing everything you know is usually not the best course of action. A direct response that is clear and concise trumps the volume of information just about every time. Why waste time and energy using 10 words when one will do? It takes skill, awareness and experience to know how to answer and when to stop answering. Most customers are probably not interested in the details; instead, they want their answers and they want to get on with their day. So why is it so hard for some salespeople and F&I managers to get to the point? It’s possible that they don’t have a point. Perhaps they haven’t thoughtfully considered the question and how to answer it before they start talking, or maybe they lack experience or confidence, which can lead to over-answering. People speak at about 150 words per minute but process words at about 750 words per minute. Providing too much information without getting to the point can bore your customer and come dangerously close to a lecture or history lesson nobody asked for. Over-answering can harm your credibility and erode trust, potentially resulting in a quick “No, thank you” or silence when you stop talking — which is not ideal. If salespeople and F&I managers can learn to give direct and concise answers, this can prompt customers to ask more questions. Each question can provide valuable insight into the customer’s needs and problems, which the salesperson or manager can address in a clear answer that showcases the products’ benefits and features. Remember: Speaking less leads to better listening. In sales, actively listening can be more influential than words. Effective listening gives you a better idea of how to respond, allowing for more targeted, specific, concise and direct communication. When handling a customer concern, less is more. Salespeople and F&I managers often over-empathize with the customer by offering a lengthy response, trying to show understanding or similarity with the customer’s issue. When asking for business, less is more. If a customer raises one of three common concerns — such as cost, need or urgency — offer a solution and then ask for action. The old tried-and-true method still works: “If that works, I just need your approval.” If we can learn to talk less and listen more, it will lead to more yeses from our customers. 21 UTAH AUTO DEALER
August 2024 New light-vehicle sales in August totaled a SAAR of 15.1 million units, down 1.1% from August 2023’s 15.3 million. The August 2024 sales calendar included Labor Day weekend this year, which led to a raw sales volume totaling 1.42 million units, an increase of 7.6% year over year. Even so, after seasonal adjustment, August 2024’s SAAR was down slightly. Through the first eight months of the year, raw sales volume totaled 10.5 million units, up 2.2% compared with the same period last year. As of July 2024, only the small-car and CUV segments posted year-over-year market share gains, with the biggest market share declines in the midsize and luxury car segments, which dropped 0.8 and 1.0 percentage points, respectively. Alternative-fuel vehicle sales increased in August. Sales of hybrids, plug-in hybrids (PHEVs) and battery electric vehicles (BEVs) together represented 19% of all new vehicles sold this year. Through the first eight months of 2024, hybrid sales were up 35.3%, PHEV sales rose by 17.8%, and BEV sales grew by 6.8% year over year. New light-vehicle inventory has increased throughout 2024, and as vehicle inventory has risen so has OEM incentive spending. According to J.D. Power, average incentive spending per unit should total $3,035 in August, an increase of 59.5% from August 2023. J.D. Power expects the average new-vehicle transaction price this August to be $44,039, down 4.1% year over year. Average transaction prices have decreased because of higher OEM incentives and discounts. BY PATRICK MANZI, CHIEF ECONOMIST, NADA Market Share, by manufacturer 4.0% 3.0 2.0 1.0 0.8 0.6 0.4 0.2 0 -0.2 -0.4 -0.6 -0.8 -1.0 1%2 3 4 5 6 7 8 9 1011121314151617181920 -2.0 -3.0 ● Gain ● No change ● Loss All figures are year to date/year-to-date changes. *Other is Jaguar/Land Rover, Lucid, Mitsubishi, Rivian, Volvo Nissan GM SUV 9.4% 4.5% Van Crossover Pickup Honda 17.6% Small Car 7.9% Large Car 0.3% 6.7% Midsized Car Luxury Car Ford 4.2% Market Share, by segment 49.4% Subaru Tesla Motors Mazda BMW Other* HyundaiKia Mercedes-Benz VW August 2024 Y/Y % Jan - Aug 2024 YTD/YTD % Total Car 2.87 -7.4% 2.93 -5.8% Total Light Truck 12.26 0.5% 12.56 1.9% Domestic Light Vehicle 11.54 -3.4% 11.91 -2.1% Import Light Vehicle 3.59 7.2% 3.59 10.1% Total Light Vehicle SAAR 15.13 -1.1% 15.49 0.4% U.S. Light-Vehicle Sales (Seasonally Adjusted at Annual Rates) Stellantis Toyota -4.0% Percent share of market (also indicated by size of circle) Hybrid 9.5% Electric 7.5% Plug-in hybrid 2.0% Fuel Cell 0.0% Internal Combustion Engine 81.0% Market Share, by powertrain NATIONAL AUTOMOBILE DEALERS ASSOCIATION 8484 Westpark Drive, Suite 500 | Tysons, VA 22102 SOURCE: Wards Intelligence tively. Alternative-fuel vehicle sales increased in August. Sales of hybrids, plug-in hybrids (PHEVs) and battery electric vehicles (BEVs) together represented 19% of all new vehicles sold this year. Through the first eight months of 2024 hybrid sales were up 35.3%, PHEV sales rose by 17.8%, and BEV sales grew by 6.8% year over year. New light-vehicle inventory has increased throughout 2024, and as vehicle inventory has risen so has OEM incentive spending. According to J.D. Power, average incentive spending per unit should total $3,035 in August, an increase of 59.5% from August 2023. J.D. Power expects the average new-vehicle transaction price this August to be $44,039, down 4.1% year over year. Average transaction prices have decreased because of higher OEM incentives and discounts. For September, we forecast that sales will be down year over year because Labor Day holiday weekend results were included in August. But markets do expect that the Fed will announce the first interest rate cut to the federal funds rate in September, which should help consumers with vehicle aordability. The magnitude of the expected rate cut and the timing of subsequent cuts remain dicult to pin down, yet should be a tailwind for both new- and used-vehicle sales. 22 UTAH AUTO DEALER
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