Virginia T H E O F F I C I A L P U B L I C A T I O N O F T H E V I R G I N I A A U T OMO B I L E D E A L E R S A S S O C I A T I O N PUB 3. ISSUE 2 2022 Beck was succeeded by Liza Borches at the convention. For more convention photos and a link to even more online, see page 14. Emily Marlow Beck, the 2021-2022 VADA Chair, shows her skills at the VADA Annual Convention in June
Running a dealership comes with its share of uncertain terrain. But one thing is certain. Our Dealer Financial Services team is dedicated to being by your side with the resources, solutions and vision to see you through. JL Winslow jl.winslow@bofa.com 804.489.5043 business.bofa.com/dealer Making business easier for auto dealers. Especially now. “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, 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. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: | Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value | ©2022 Bank of America Corporation. All rights reserved. 4826555 08-22-0145 CAD-08-22-0145_Virginia.indd 3 8/18/22 11:43 AM
1 CONTENTS PUB 3. ISSUE 2 2022 @ 2022 Virginia Automobile Dealers Association (VADA) |The newsLINK Group, LLC. All rights reserved. Virginia Auto Dealer is published four times each year by The newsLINK Group, LLC for VADA and is the official publication for the association. The information contained in this publication is intended to provide general information for review and consideration. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the association, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Virginia Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of VADA. While VADA and the newsLINK Group encourage a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact The newsLINK Group at 855-747-4003. 18 4 8 2 A Message From President and CEO Don Hall 4 Leading From the Front Retail Auto Pros Talk Protecting the Franchise System By Jeff Kelley 6 Get Materials from our 2022 Legal and Legislative Update 8 A Cease and Desist Order for Every Dealer By Michael G. Charapp, Charapp & Weiss LLP 10 All In 11 Driving Virginia’s Economy Annual Contribution of Virginia’s New-Car Dealers 14 2022 Convention Pictures from Asheville! 16 Snapshot: Legislative Activity in 2022 and 2023 By Ralston King, VADA VP Legislative Affairs 18 Keeping Eyes on the Chip Shortage — and Solutions 20 Did You Know…? Top 5 Interesting Facts About How ACV Can Help Dealerships 26 Thank You to Our Program Partners 28 VADA Allied Members 30 VADA Member Directory
VIRGINIA AUTO DEALER vada.com 2 A Message From President and CEO Don Hall In our latest issue of Virginia Auto Dealer magazine, we’re bringing some of the highlights of our work in recent months and perspectives around what’s to come in retail automotive. Amid the aftermath of COVID, supply chain woes, record inflation, and the evolving transformation of the very engines that have powered your business for over a century, this is one of the most interesting times in our history. “In my 20-plus years of doing this, this is the most dynamic time in the industry,” Bloomberg Intelligence Senior Automotive Analyst Kevin Tynan told us this summer. And he’s been analyzing auto retail since post-9/11 and through the Recession. “The changes that we’ve seen in the dynamics of the auto industry, specifically in the U.S., are metrics and data points reading in ways I never thought I would see.” And amid the inventory and economic challenges are proposed sales concepts that threaten the very foundations of the franchise system. Specifically, the “agency model” proposed by some manufacturers would centralize all sales and marketing, with vehicle shipment to the dealer only once it is sold to the end user (via an online sale) and In the End, Customer Service Wins
3 President and CEO Virginia Automobile Dealers Association delivered under your sales license. As a dealer, you collect a small percentage of the sales fee. You would also be responsible for education and service. I will not mince words: the agency model will destroy your business and have a ripple effect on the companies that support you. It will turn independently operated franchised dealerships into delivery and service agents for OEMs and distributors. For now, the agency model is exclusive to foreign markets, but we have no reason to believe OEMs won’t attempt to land on our shores. Ford in particular has been aggressive in their remarks about the EV reservation system and how dealerships will change significantly with the new powertrains. VADA will remain vigilant to maintain the franchise system that benefits the consumer by fostering competition, providing options, and lowering prices. VADA will remain vigilant to maintain the franchise system that benefits the consumer by fostering competition, providing options, and lowering prices. I believe the model that ultimately triumphs is the one that succeeds on a single front: taking care of the customer. You do this with local businesses that value relationships, not a centralized, out-of-state, onlineonly experience. You must be aggressive in pricing and services to attract customers. Consumers benefit from this competition, and they will be hurt by agency or direct-to-consumer models manipulated by OEMs. As a longtime legal expert and VADA friend Mike Charapp told dealers at our convention in Asheville: “You are the disruptors. You do business differently today than you did two years ago. And two years ago, you did business differently than you did five years before that. You are constantly disrupting that process that began a century ago with Henry Ford.” I could not agree more. Press forward, take care of your customers, and show them why our model is the best one for America’s transportation needs.
VIRGINIA AUTO DEALER vada.com 4 Leading From the Front: Retail Auto Pros Talk Protecting the Franchise System By Jeff Kelley
5 (L-R) VADA's Don Hall, CBT News’ Jim Fitzpatrick, and attorney Mike Charapp talk about the challenges and opportunities of the franchise system at the 2022 VADA Annual Convention on June 20, 2022. (Photo: Sean Toler) The franchise system is under attack, but if dealers focus on ensuring a great and easy buying experience — and giving flexibility to consumers in how they choose to buy a vehicle — the future of the nation’s auto dealerships looks bright. That was the message during a panel discussion at the 2022 VADA Annual Convention in Asheville, N.C., in June. The hour-long talk included retail automotive attorney Mike Charapp and VADA President and CEO Don Hall, and was moderated by CBT Automotive Network’s Jim Fitzpatrick. The trio honed in on the recent push by new EV entrants and traditional OEMs to bypass the franchise system by selling vehicles directly or using online methods. “The ground for dealers is as good as it's always been, which means there’re lots of challenges, but I don't know anybody better than dealers to take up the challenges,” said Charapp, a partner in the law firm of Charapp & Weiss and longtime counsel to VADA. He noted dealers not only “have to look after your business today,” but they “have to look out for the business — the franchise model that’s been around for 100 years and is evolving regularly.” The franchise system was blindsided in recent years, Charapp admitted, by manufacturers who convinced state and federal politicians to allow the direct sale of automobiles, especially EVs. “When we did not immediately identify that electric is the future, we let (OEMs) get a toehold in through their political strength,” Charapp told a room of 200 Virginia dealers and partners. “And frankly, it is a little bit of a lack of oversight by us.” Disruptors will not be stopped, Hall said, so dealers must evolve to beat them at the game. “The question is, how easy is it for [a consumer] to buy a car predicated on how I want to buy a car, which may be the more traditional model, or in a way where I can never touch or see anybody,” he said. Charapp called Tesla, Rivian and other EV manufacturers and directsellers “new entrants” but reserved the term “disruptor” for “the folks sitting in this audience.” Hall agreed. “You are the disruptors. You do business differently today than you did two years ago. And two years ago, you did business differently than you did five years before that,” Charapp said. “You are constantly disrupting the process that began a century ago with Henry Ford. It may be the same basic outline, but the stories within the outline are completely different.” Charapp criticized the OEMproposed “agency model,” such as the one adopted by Mercedes-Benz in Europe that allows consumers to buy online and pick it up at the dealer, which completes the sale in exchange for a percentage of the total. Some dealers like the concept, while others don’t, Fitzpatrick said. “The fact of the matter is, people can tell me how this is an attractive model of the agency for dealers, but I'm saying to you, it's the beginning of the end of the dealership model,” Charapp said. “The agency model will kill you as a business.” Hall also teased a forthcoming VADA-backed Virginia General Assembly bill, one of the first in the country, that will “lead from the front” to “show the rest of the nation what we need to do to make sure we have the grounds as we go into court to litigate, that we have the proper tools to prevail, so we can protect the franchise system.” Hall also said that while many consumers are unaware the dealer franchise system exists, it is a model they need to know about because it creates a fair market for buyers and protects their interests. “At the end of the day, the people in this room have the brainpower to give consumers whatever they want,” Hall said. “The question is: Are we listening to what consumers want, rather than saying, ‘Here's how we're going to do it?’”
VIRGINIA AUTO DEALER vada.com 6 CBM has an experienced team of tax, personal financial planning and advisory professionals devoted to the automotive retail industry. Since 1921, we have specialized in new car and light duty truck dealerships, heavy truck, motorcycle and RV dealerships, primarily in the Mid-Atlantic region. Investment management, financial planning and retirement planning services are delivered by MBI, a subsidiary of CBM. More than 260 members from Virginia’s franchised new car and truck dealerships tuned in to our 2022 Legal and Legislative update presentation in late May. The VADA legislative team covered several topics, including warranty and recall reimbursement, overtime, electric vehicles, advertising & compliance, CFPB and franchise issues. On our website, you can watch the full presentation and download several updated legal documents covered during the event. This includes a federal advertising checklist, franchisor agreements and documents checklist, a critical letters checklist, and much more. The full presentation and downloadable materials can be found at vada.com/blog/2022/06/01/2022legal-and-legislative-update. Get Materials from our 2022 Legal and Legislative Update
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VIRGINIA AUTO DEALER vada.com 8 The Federal Trade Commission issued a comment period on a proposed trade regulation rule on motor vehicle sales. The Trade Regulation Rule (TRR) is onerous, and comments from those familiar with the business will be important. (Comments are due Sept. 12, 2022.) The problems with this TRR are too numerous to be covered in this article. However, we will explore issues that threaten to negatively affect your business. Before doing so, let ’s look at some questions the proposed TRR raises. Who is subject to it? A motor vehicle dealer licensed as such owns its vehicle inventory, and is engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both, is covered. Why the emphasis on service if this is a TRR about sales? As we have noted frequently when writing about the creation of the Consumer Financial Protection Bureau by the DoddFrank Act, to address the FTC’s complaint that many of its functions were usurped by the CFPB, Congress gave the FTC expanded, primary jurisdiction over motor vehicle dealers exempt from CFPB jurisdiction. Having a service department is a necessary element for exemption from CFPB jurisdiction. This TRR covers those dealers subject to FTC jurisdiction. Aren’t the prohibitions and requirements already part of the law? Some say the prohibitions and requirements are not a big deal since they simply represent what the FTC already views as the law. Some of these prohibitions A Cease and Desist By Michael G. Charapp, Charapp & Weiss LLP Order for Every Dealer
9 and requirements, along with the burdensome recordkeeping requirements, have been ordered against companies the FTC has decided to sue as lawbreakers. The prohibitions and requirements of this TRR go well beyond anything imposed on a single dealer or group under a cease and desist order. They are imposed on every dealer exempt from CFPB jurisdiction with no allegation of a dealer’s individual wrongdoing. And the micromanaging of every dealer’s business will require substantial changes in business practices. Why now? This TRR is proposed on the heels of a United States Supreme Court ruling that the FTC does not have the power to order monetary impositions as part of an administrative cease and desist order. The FTC’s answer is this TRR — the violation of which can be punished by civil penalties of $46,517 per violation — should be adjusted annually. The TRR has the effect of imposing on every dealer exempt from CFPB jurisdiction a cease and desist order for which a dealer found to be violating it can suffer crippling monetary impositions. Why does the FTC feel qualified tomicromanage a dealer’s business? Anyone who asks that question doesn’t know many federal government lawyers. Federal government lawyers know the businesses they seek to regulate through the complaints they review and handle. It is common for them to assume that by reading consumer complaints, they know more about managing a business to prevent the practices about which complaints are filed than the businesspeople who do it for a living. They rarely question whether the complaints are exaggerated, perhaps even fashioned with the aid of an anti-dealer attorney, to establish a position to generate an acceptable settlement, whether it is a large cash payment or cancellation of the transaction. Their qualifications to impose standards on a business are based on complaints, justified or not, that paint the worst picture of an industry. Is the approach of this TRRwhat Congress had in mind to define unfair and deceptive practices? One must question whether this is the type of regulation to benefit consumers. For years, dealers have been criticized, including by the FTC, for the time to complete a deal. Yet the FTC is mandating new processes, disclosures, and paperwork that will only worsen a situation that dealers have been improving. What are the prohibitedmisrepresentations? There are sixteen specific misrepresentations included in the proposed TRR. Many are repeats of previous FTC positions on the state of the law and are straightforward. We have counseled dealers for years about some of the issues covered to be sure it is clear whether a transaction involves financing or leasing, the qualifications a consumer must have to qualify for rebates and discounts not available to all, the number of vehicles available at the advertised price or terms, and at what point a transaction is final as to both the buyer and the seller. Unfortunately, several specific prohibitions of the TRR are loosely written to enhance FTC discretion and cause dealer anxiety about what is covered. For example, the first prohibition is about misrepresentations of the “costs or terms of purchasing, financing, or leasing a vehicle.” What does that mean? Today, dealers strive for transparency in what a vehicle will cost a consumer. But how much is enough? The second prohibition is misrepresentation of any “costs, limitation, benefit, or any other Material aspect of an Add-on Product or Service.” We will discuss the FTC view of “add-ons” later. But, again, what does this mean? How extensive must disclosures be to meet the test of the FTC regarding what is not a misrepresentation? Similarly, what must a dealer do to avoid the prohibition of misrepresenting any “[m]aterial information on or about a consumer’s application for financing”? A prohibition of misrepresenting any of the “required disclosures” of this TRR brings us to the expanded requirements that will dramatically change dealer practices. Read more, including required disclosures and other burdens of the proposed rule, at vada.com/blog/2022/07/18/a-cease-and-desistorder-for-every-dealer/ or scan the QR code. Today, dealers strive for transparency in what a vehicle will cost a consumer. But how much is enough?
VIRGINIA AUTO DEALER vada.com 10 These Dealer Leaders Are All In … Are You? Our PAC’s All In campaign is raising money to help elect dealer-friendly candidates in next year’s General Assembly races when every state House and Senate seat is up for grabs. We extend a sincere THANK YOU to these dealers for pledging their support to the Virginia Automobile Dealers Political Action Committee. The latest economic impact numbers from Virginia dealers have been disclosed by NADA. In 2021, Virginia’s 449 dealerships directly employed more than 30,000 people, plus another nearly 31,000 in indirect or induced roles. And, dealers continue to be the state’s leading retail contributor to the state tax base, funneling $1.2 billion to the Commonwealth. Please view Driving Virginia's Economy on the next page. $27.7B: Dealers’ Contributions to Virginia’s Economy Jim Koons Management $30,000 Company Sheehy Auto Stores $30,000 Carter Myers Automotive $14,500 Country Chevrolet $11,575 Ted Britt Ford Lincoln $10,000 Front Royal Ford LLC $5,000 Pohanka Automotive Group $5,000 The Pomoco Group, Inc. $5,000 Duncan Ford Chrysler $2,000 Dodge Jeep Beyer Automotive Group $2,000 Alexandria Volkswagen $2,000 David R. McGeorge Car Co., Inc. $2,000 Radley Chevrolet $2,000 Karen Radley Acura VW $2,000 Geneva Management $1,500 Sheehy Auto Stores $1,500 Steven Nissan $1,500 Sheehy Auto Stores $1,500 Give now at vada.com/pac22. See the latest one-pager at vada.com/media-statistics. Loyalty Automotive $1,500 Robert Woodall Chevrolet Buick $1,500 GMC Cadillac Hyundai Nissan Suttle Motor Corp. $1,500 Cavalier Ford Lincoln $1,500 Malloy Automotive Group $1,500 Shelor Motor Mile $1,500 Harvey's Chevrolet Cadillac Buick $1,500 Terry Volkswagen Subaru $1,500 Richmond Ford Lincoln $1,500 Duke Automotive $1,500 Lindsay Chevrolet $1,500 Hall Automotive, LLC $1,500 Beach Ford, Inc. $1,500 Ted Britt Ford Lincoln $1,500 Charlie Obaugh Chevrolet $1,500 Buick GMC Kia Kern Motor Co. $1,500 Priority Auto Group $1,500 Berglund Management $1,500 RK Chevrolet Subaru $1,500 Pohanka Nissan Hyundai $1,500 Magic City Ford Lincoln $1,500 Isuzu Ourisman Automotive $1,500 of Virginia Chrysler of Culpeper $1,000 Banister Nissan of $1,000 Chesapeake Southern Team Hyundai $750 Nissan Subaru Luck Chevrolet $500
11 Source: Center for Automotive Research, NADA Industry Analysis, IHS Markit, Taxfoundation.org, U.S. Bureau of Labor Statistics, U.S. Census Bureau $2.3B $27.7B 2.3% Includes income taxes paid for direct, indirect and induced jobs. PAYROLL TOTAL SALES (all dealerships) REGISTRATIONS STATE SALES TAX PAID N A T I O N A L A U T O M O B I L E D E A L E R S A S S O C I A T I O N NADA Industry Analysis | 8484 Westpark Drive, Suite 500, Tysons, VA 22102 | 800.557.6232 | economics@nada.org NADA Legislative Affairs | 412 First St. SE | Washington, DC 20003 | 202 547-5500 | legislative@nada.org 449 DEALERSHIPS (new car) 61,060 TOTAL JOBS (created by dealerships) Includes 30,452 direct jobs and 30,608 indirect and induced jobs. 68 EMPLOYEES (average per dealership) Driving Virginia’s Economy Annual Contribution of Virginia’s New-Car Dealers Numbers reflect annual economic activity during 2021. $75,036 Average Annual Earnings $685M State and Federal Income Taxes Paid Virginia’s Share of Total U.S. New-Vehicle Registrations $1.2B
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VIRGINIA AUTO DEALER vada.com 14 2022 Convention Your 2022-2023 Executive Committee, L-R: Don Hall (President), David Dillon (Vice Chair), Liza Myers Borches (Chairwoman), Tim Pohanka (Legislative Chair), Emily Marlow Beck (Immediate Past Chair), Roger Keller (Secretary), Chris Lindsay (PAC Chairman), Dan Banister (Treasurer). Photo Credit: Sean Toler. Relive the fun from our Star Wars-themed reception, golf tournament, and more at vada.com/convention. To view all of the pictures please scan QR code. vada.com/convention Pictures from Asheville!
15 Warrenton’s Andy Budd gives $10K toAutoDealers PAC@VADA ’22 Country Chevrolet’s Andy Budd, a member of the VADA Board of Directors, made an impromptu speech at the VADA Annual Convention encouraging all dealers and dealership employees to give to the Virginia Auto Dealers PAC. Then, the Warrenton dealer doubled down, pledging and then giving $10,000 to the PAC to support upcoming legislative efforts. We thank Andy for his support and commitment and for leading from the front! Are you a retail automotive supplier and want to support our 2023 Convention? Sponsors are an integral part of our conventions — and we make sure you are supported in return. Get information on sponsorships at vada.com/convention/sponsorship-2023/ Our 2023 Annual Convention will be held June 19-22, 2023, at The Greenbrier in White Sulphur Springs, West Virginia.
VIRGINIA AUTO DEALER vada.com 16 Snapshot: Legislative Activity in 2022 and 2023 By Ralston King, VADA VP Legislative Affairs The VADA focused on two critical pieces of legislation affecting Virginia’s car dealers during the 2022 General Assembly session: • The priority legislation, HB 259 (Wyatt)/SB 216 (McPike), supported fair warranty/recall reimbursement. The bill addressed the continued struggles new car and truck dealerships face when seeking warranty reimbursement at retail amounts. Furthermore, the bill required full reimbursement for dealers for customer rental vehicles while warranty/recall repairs were made. The bill also required that the dealership and its technicians be compensated for their time when assisting customers with software updates at the dealership. Finally, the bill will protect consumers from unknown software upgrade charges through up-front disclosures by the manufacturer. Governor Youngkin signed the legislation on April 27, 2022, and the bill went into effect on July 1, 2022. • The Virginia Overtime Wage Act was also a focus for the VADA in 2022. During the 2021 General Assembly session, lawmakers sought to create a state remedy for violations of federal overtime requirements. Unfortunately, the bill’s language went far beyond that intended result, making substantive changes to overtime requirements for many Virginia employers. Federal law lays out various exemptions to overtime requirements that specify exemptions for auto dealership employees. During the special session in the summer of 2021, the VADA fixed this problem with budget language; however, that fix was temporary until July 2022. To address this issue permanently, the VADA proposed HB 1173 (Ware) and SB 631 (Barker). The legislation solved the overtime issue by incorporating all the federal exemptions, including the auto dealer-specific exemptions. The For information on VADA legislation, contact Ralston King at rking@vada.com. Governor signed the legislation on April 11, 2022, and the bill went into effect on July 1, 2022. Coming in 2023: The VADA’s legislative focus now turns to the franchise system. OEMs are moving to the “agency model” in New Zealand, Australia, Canada, and the EU. OEMs are experimenting with the “agency model” in the U.S., whether it is Audi or VW with online reservation systems. VW Scout brand provides no information to dealers on access to these EVs. Ford has been aggressive in their remarks about the EV reservation system and how dealerships will change significantly with EVs. VADA must remain vigilant and maintain the franchise system that benefits the consumer by fostering competition, providing options and lowering prices.
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VIRGINIA AUTO DEALER vada.com 18 Keeping Eyes on the Chip Shortage — and Solutions
19 www.wric.com/news/virginia-news/bill-boosting-chipproduction-could-help-struggling-car-shoppers-but-not-quickly/ Your team at the Virginia Automobile Dealers Association continues to monitor the chip shortage and its impact on Virginia dealers. This summer, the Senate approved funding to bring chip manufacturing back to the U.S., and we provided the public and members with some additional analysis on the big move. This is, clearly, a long-term solution that won’t see an immediate impact — but is a positive development, nonetheless. The bill, known as the CHIPS-Plus package, includes $52 billion to build fabrication plants, plus $2 billion for legacy chipmaking essential to the automotive industry. There are also tax incentives for investing in chip production. Virginia Senator and former tech executive Mark Warner called the legislation “one of the most significant pieces of legislation that the Congress has gotten to the president in years, if not decades.” Our partners at Cox Automotive Analysis, citing S&P Global Polk registration data from January 2022 through May, gave us a pulse on the state of sales in Virginia, which have been impacted by chips, inflation, and COVID. Through May, new light vehicle sales were down 25% over the comparable period in 2021. The decline resulted from a 22% decline in retail vehicle sales and a 39% decline in fleet sales. Within retail, new leases were down 51% as manufacturers have reduced incentive spending, and lease offers have been less attractive to consumers who are increasingly opting to finance. The used car market has held up better in 2022, as used car sales through May were down 9%. Compared to the U.S., Virginia has seen larger declines in the new market but smaller in used. The used car market has held up better in 2022, as used car sales through May were down 9%. Compared to the U.S., Virginia has seen larger declines in the new market but smaller in used. See VADA’s Ralston King interviewed by Richmond’s ABC station regarding the Senate’s approval to fund chip manufacturing in the U.S. and its potential impact on automotive sales by scanning the QR code below. A special thanks to VADA member Ron Kody and general manager Mike Serpico of Richmond Ford Lincoln for hosting the reporter, and us, on short notice. We also thank our key dealer partner, Cox Automotive/ Dealertrack, for providing us with Virginia-specific analysis of registration and inventory levels.
VIRGINIA AUTO DEALER vada.com 20 Top 5 Interesting Facts About HowACV Can Help Dealerships Did You Know…?
21 Our industry is constantly changing, challenging dealerships to evolve their people and processes to match market demand. These trends might seem daunting at first. But in reality, they pose opportunities for you to streamline operations, right size inventory, and improve the overall customer experience. Because of this, you need to focus on selling more vehicles faster and for a higher gross profit. This isn’t news. But accomplishing it is. The best way to succeed is through deploying a robust set of solutions that helps you prosper in every aspect, from acquisition to merchandising. And while we know that our industry will continue to ebb and flow, you must pay attention to what is happening around you. At any given moment, the trajectory of business can be altered, casting shadows over business goals. ACV helps shed light on even the darkest of corners. No fad or unexpected turn is immune to the powerful data ACV employs to make influential decisions for the automotive retail sector. You probably already have a playbook for success. But chances are that there are some fresh ideas that you can add to your approach which will make the difference between surviving and thriving. So, what are you missing? It starts with understanding your market and the industry around you. There are many opportunities for you to work with digital solution providers like ACV to help drive success at your dealership. For example, did you know: The average mileage from buyer to the seller last month for ACV Auctions transactions was over 800 miles, thereby greatly expanding your audience? Understanding the importance of the reach ACV provides is critical to your business. But it’s not just the continued on page 22
VIRGINIA AUTO DEALER vada.com 22 reach. It’s the flexibility that ACV offers. For example, did you know: Twice a week, ACV offers a No Reserve Sale? Every car sells, and there is zero risk involved; plus, the seller gets to keep the upside. Beyond flexibility, ACV also helps to streamline the process of securing the right inventory. Have you met SAM? ACV has built SAM, a programmatic buying tool. Dealers can automatically get the vehicles they need in the condition they want and for what they are willing to pay. Unlike other companies, there are no middlemen involved, just fair, transparent transactions. You get the inventory you desire while putting time back on your clock. But what do you do when you have the correct vehicles on your lot? Now comes the fun part of managing inventory and merchandising it. Did you know ACV now has a solution for that? ACV continues to bring advanced data to help you make informed decisions on your lot. ACV’s MAX Digital’s inventory management and merchandising solutions continued from page 21 make it easier than ever to stock your lot competitively and sell cars at the highest gross imaginable. Gross profits are important, so you need to use a platform that brings you the highest return on your investment. On that note, were you aware that: According to independent accounting firms, vehicles bought through ACV tend to be more profitable than other auction sources? ACV is capable of all that and more. Want to discover all of the ways that ACV can assist your dealership? Don’t delay a second more! Reach out today and start building processes that will put you on the road to victory. Beyond flexibility, ACV also helps to streamline the process of securing the right inventory. Automobile dealerships are complex businesses with unique legal problems requiring highly specialized knowledge and skills. Our nationally recognized law firm provides comprehensive legal expertise for auto dealers. Scan For Specialized Auto Dealer Law Information mbhylaw.com/areas-of-practice/auto-dealer-law/ 11350 Random Hills Road Suite 700 Fairfax, Virginia 22030 (703) 352-1300 (office) (703) 352-1301 (facsimile) mbhylaw.com Michael Charapp Brad D. Weiss Kimberly S. MacCumbee Barrett Charapp Beaty Travis F. Salisbury
Pocket more profit Holding costs are what a dealership spends to hold unsold inventory, including storage space, labor, insurance, interest charges, and more. Can they vary? They sure can, thanks to changing operating expenses, floor plan fluctuations, and the cost of capital, including interest rates. According to recent studies, dealerships could be paying as much as $37 a day in holding costs, on average, for every vehicle that sits idle on their lot. Don’t let holding costs eat into your profit margins. Dealertrack provides you with tools that help you move new and used vehicles off your lot faster. Dealertrack’s in-state registration and title solution integrated with your DMS reduces data re-entry so you can submit a transaction to the DMV in under 4 minutes.2 That’s up to 35 percent faster3 than standard reg and title submissions. Dealertrack Accelerated Title streamlines your trade-in process, connecting with over 100 lenders to speed payoff and title release 70% faster, allowing dealers to gain title release in as quickly as 4 to 6 days. That’s 70 percent faster4 than the standard payoff and release time. The take-away? Cars leave your lot faster with the help of electronic sales and trade-in solutions that minimize holding costs and keep more cash in your pocket. Dealers using Dealertrack solutions slash holding costs and grow their margins. Schedule a no-obligation demo to learn how Dealertrack solutions can help you pocket more profit. 1 NCM Associates Group Study 2019 2 Dealertrack User Timing Report through Google Analytics 1/1/21 to 12/31/21. 3 Based on comparing Dealertrack DMS performance against state registration processes. 4 Based on average industry timeframe for vehicle title release and vehicle payoff process of 18+ days, as determined by 2021 Dealertrack data. 70% per day1 $37 faster than the standard payoff and release time4 Average holding cost for every vehicle ® Registration & Title Solutions
+3,500 Active Dealers +35 State Dealer Associations Endorse ComplyAuto 100% Client Retention. Zero Cancellations. Month-to-Month First Month Free No Implementation Fees FEDERAL SAFEGUARDS & CYBERSECURITY COMPLIANCE Get compliant. Be secure. Save money. Not only will ComplyAuto help you achieve 100% compliance with the revised FTC Safeguards Rule, but you’ll become more secure in the process, which will help reduce your cybersecurity insurance premiums and help prevent data breaches. PRIVACY COMPLIANCE A 50-state legal solution for local consumer privacy laws. ComplyAuto is the only privacy rights management system built specifically for dealers. Processing consumer deletion, opt-out, right to know, and data portability requests has never been easier with our fully automated solution. ComplyAuto also installs the required website tools, like compliant cookie banners, privacy policies, and consumer request portals in a matter of days. No one likes being locked into a contract, so we’re purely month-to-month. We want you compliant, so the first month is on us if you complete our implementation survey within 2 weeks. No hidden fees, services charges, or installation costs. Oh, and unlimited customer support & training! Schedule a demo: https://complyauto.com/schedule-demo/ Are you ready for the December 9, 2022 deadline? ComplyAuto offers a turnkey solution for the revised FTC Safeguards Rule and all things privacy & cybersecurity compliance. ComplyAuto has the substantive expertise to help Virginia dealers achieve these goals by the effective date. ComplyAuto E: Info@ComplyAuto.com P: (661) 214-8671
25 Only one player knows all the moves and how to pick a winning strategy every time 49 STATES WE WORK IN 49 STATES WITH 29 MANUFACTURERS 15 ASSOCIATIONS WE ARE ENDORSED/LICENSED BY 15 STATE AUTO DEALER ASSOCIATIONS (888) 477-2228 | INFO@DEALERUPLIFT.COM | WWW.DEALERUPLIFT.COM Armatus provides the industry’s only turn-key solution for retail warranty reimbursement submissions. Our dedicated staff and proprietary software guarantee you will achieve an optimized result. OUR COMMITMENT TO OUR CLIENTS: You’ll Barely Lift a Finger: Armatus does all the work for you Fully Contingent Fee: You only pay when you are approved Speed and Accuracy: We’ll deliver guaranteed, optimized results Data Governance: Your customer information is safe with us 7,000+ SUBMISSIONS WE HAVE OVER 7,000 SUCCESSFUL SUBMISSIONS $170,604 AVERAGE PARTS and LABOR COMBINED UPLIFT OUR CLIENTS ADD ANNUALLY RETA I L WARRANTY RE IMBURSEMENT Endorsed by PNC and PNC Bank are registered marks of The PNC Financial Services Group, Inc. (“PNC”). Banking and lending products and services and bank deposit products and investment and wealth management and fiduciary services are provided by PNC Bank, National Association, a wholly-owned subsidiary of PNC and Member FDIC. Lending and leasing products and services, including card services, trade finance and merchant services, as well as certain other banking products and services, require credit approval. ©2019 The PNC Financial Services Group, Inc. All rights reserved. CON LEND PDF 1119-082-1391202 PNC DEALER FINANCE GROUP | Discover how PNC’s specialized Dealer Finance group can deliver a flexible, custom-built solution that supports your sales efforts and growth strategy — and puts your goals on the road to success. Talk to a dedicated PNC Dealer Finance representative today. FLOOR PLAN & COMMERCIAL FINANCING Kevin Devlin, Vice President, PNC Bank Dealer Finance cell: 443-974-4009 I office: 301-493-5900 I kevin.devlin@pnc.com SHIFT YOUR PLANS INTO DRIVE, STARTING TODAY. _ CON LEND_1391202_Dealer Finance Ad_7.5x4.625_Final.indd 1 11/20/19 9:19 AM
VIRGINIA AUTO DEALER vada.com 26 ACV is investing in game-changing technologies and world class people to improve the wholesale process for all dealers. They provide unbiased vehicle information that is unparalleled in its transparency. Their inspectors complete comprehensive condition reports on fresh vehicles, right at the seller’s lot. Cintas leads the industry in supplying corporate identity uniform programs, providing entrance and logo mats, restroom supplies, promotional products, first aid, safety, and fire protection products and services. Learn how Cintas’ solutions can benefit your sales and service departments at cintas.com Forget the forms, binders, spreadsheets, folders, manual audits, and training sessions. Compliance is automatically performed, logged, and demonstrated in one simple platform. They’re not just another software company. They’ve actually worked at dealerships and have spent their entire legal and compliance careers in the automotive industry. Thank You TO OUR PROGRAM PARTNERS In 2010, co-founders Adam Robinson, Michael Krasman, and Jeff Ellman reinvented the hiring process, empowering businesses to ditch their filing cabinets and manilla folders in exchange for an intuitive, technology-based hiring process. You can receive optimal results for your parts warranty uplift. Just outsource the process to Armatus. Hand the entire retail warranty process to us, and you won’t have to lift a finger. Plus, there are no upfront fees — we don’t get paid until you do. Dealertrack Technologies offers a cutting edge web-based registration and titling solution developed with input from dealerships across the Commonwealth. They are the only registration and titling company endorsed by VADA. Digital Air Strike is the leading social media, intelligent lead response, consumer engagement, and customer experience (CX) technology company helping over 7,700 businesses increase consumer response and conversions by leveraging patented AI-powered digital technology that generates measurable ROI. A pioneer in digital response, social media marketing technology, and online reputation management solutions, Digital Air Strike deploys industry-specific mobile apps, software, intelligent messaging, and consumer engagement platforms to monitor, respond, improve, and convert more consumers into customers for thousands of businesses in the United States. More information about the company is available at www.digitalairstrike.com. DMS allows dealers to take advantage of federal law to greatly diminish their expenses with credit card processing fees, typically between 75% – 95%. DMS can save some dealers well over $100,000 per year in fees. Find out how at dealermerchantservices.com.
27 Zurich F&I professionals can help you increase product penetration, per vehicle retail, and customer satisfaction. They currently work with more than 100 Mid-Atlantic dealers, helping them build relationships with their customers and increase product sales. Promote your business, reduce compliance risk, manage data, and keep your office inventory stocked with Reynolds Document Solutions. As the provider of Connect CRM, a leading dealership customer relationship management system, VinSolutions helps more than 5,000 dealers make every connection count. VinSolutions products integrate dealership systems, processes, and tools to deliver a single view of the customer across the business. Management consulting, human resource management, and labor relations. For more information visit: sescomgt.com Sqwire's mission is to help low- to moderate-income families realize their financial promise by providing financial education that is hopeful, respectful, and fun. Financial education includes topics that build a solid financial foundation, using tools created specifically for today’s adult learners and quizzes, and detailed reporting ensures clients meet their goals. Learn more at GetSqwire.com. RockED's mobile learning platform turns employees within minutes into customer-centric high-performers. The app allows for learning anytime, anywhere, through a mobile solution. Lessons are based on competencies and include highly relevant, industry-specific audiovisual content delivered by industry leaders. Learn more at Rocked.us. At Integrum Advisors, we come to work each and every day to ensure we have you covered. We take pride in providing sound advice to all of our clients. Our job is not done until you have complete peace of mind that you and your employees are receiving the best benefits and service available. MOC® is a leading provider of innovative products and solutions to the retail automotive industry. Their program is designed to provide new car dealers the ability to buy necessary products, tools, and equipment at manufacturer direct pricing, but also receive unprecedented local and regional service and support. One Source Wonderful! Your local, one-stop shop for all departments supply needs!
VIRGINIA AUTO DEALER vada.com 28 Ally Financial Assurant Bank Of America — Merrill Lynch BDO USA, LLP CarNow CBIZ Chase Dealer Services Citrin Cooperman Core Assurance Councilor, Buchanan & Mitchell, PC COX Automotive Crovato BG Products & Services CVR Diamond Dealer Services Ethos Group FORVIS Fulton Bank Greensboro Auto Auction Heartland Kerrigan Advisors KPA LoJack by Spireon Mahdavi, Bacon, Halfhill & Young, PLLC Manheim Fredericksburg Manheim Harrisonburg PBS Financial Systems PNC Bank Protective Asset Protection Spotts Fain, PC Sunbit The Branding Agency, LLC The Carbon Offset Company The Frieden Agency The Providence Group Towne Insurance TowneBank TrueCar Truist Bank Wells Fargo Dealer Services ALLIED MEMBERS To advertise in this magazine, contact us today. 801.676.9722 | 855.747.4003 thenewslinkgroup.org sales@thenewslinkgroup.com It’s your time to grow.
www.VinSolutions.com | (866) 578-8152 TWO HEADS ARE BETTER THAN ONE, especially when one is a supercomputer. Cox Automotive touches 75% of vehicle transactions in North America, giving you access to a world of customer data. VinSolutions Connect Automotive Intelligence analyzes that data across integrated platforms to generate insights that create instant relevancy between your dealership and your customer. Learn how your dealership can use Connect Automotive Intelligence to personalize the car buying experience at VinSolutions.com/AI.
VIRGINIA AUTO DEALER vada.com 30 Alexandria Hyundai / Genesis of Alexandria (703) 535-6840 alexandriahyundai.com Alexandria Toyota (703) 684-0700 alexandriatoyota.com Alexandria Volkswagen (703) 684-8888 alexandriavw.com Alfa Romeo of Washington, D.C. (703) 935-1300 alfaromeousaofsterlingva.com Apple Ford of Danville (877) 999-1736 applefordofdanville.com Apple Ford Of Lynchburg, Inc. (434) 385-5012 applefordva.com Aston Martin Washington D.C. Bentley Tysons (703) 712-8324 exclusiveautomotivegroup.com Audi Arlington (703) 739-7460 audiarlington.com Audi Chantilly (703) 956-2100 audichantilly.com Audi of Hampton (866) 979-9342 audihampton.com Audi Richmond (888) 611-6861 westbroadaudi.com Audi Tysons Corner (877) 370-5405 auditysonscorner.com Auto Giants Nissan (703) 497-3000 agnissanwoodbridge.com AutoNation Honda Of Dulles (703) 444-2010 autonationhondadulles.com AutoNation Toyota Leesburg (703) 771-8990 leesburgtoyota.com Banister Nissan of Chesapeake (757) 436-4900 banisternissanofchesapeake.com VADA MEMBER DIRECTORY Banister Nissan of Norfolk (757) 284-3140 banisternissanofnorfolk.com Bareford Buick GMC (804) 443-3500 barefordbuickgmc.com Barton Ford Suffolk (757) 539-1595 bartonford.com Battlefield Chevrolet (540) 547-3700 battlefieldchevrolet.com Battlefield Ford Culpeper (540) 547-3673 battlefieldford.com Battlefield Toyota (540) 317-7800 battlefieldtoyota.com Bayside Chrysler Dodge Jeep RAM (540) 775-5516 baysidecdjrva.com Beach Ford, Inc. (757) 486-2717 beachford.com Berglund Chevrolet Buick (540) 344-1461 berglundchevroletbuick.com Berglund Chrysler Jeep Dodge RAM (540) 345-9881 berglundchryslerjeep.net Berglund Ford Mazda (540) 389-7291 berglundcars.com Berglund Luxury Auto (540) 344-1461 lynchburgmercedes.com Berglund Luxury Roanoke (855) 589-8792 berglundluxuryroanoke.com Berglund Oak Ridge Toyota (434) 528-3202 berglundtoyota.com Berglund Of Bedford Ford Buick GMC (540) 586-8281 berglundofbedford.com Beyer Subaru (703) 768-5800 beyersubaru.com Bill Hudgins Automotive, Inc. (804) 693-2828 billhudginsauto.com Bill Page Honda (703) 533-9700 billpagehonda.com Bill Page Toyota Scion (703) 532-8800 billpagetoyota.com Bill Talley Ford, Inc. (804) 746-2000 billtalleyford.com Billy Craft Chrysler Dodge Jeep RAM (434) 845-3456 billycraftchryslerjeep.net Billy Craft Honda (434) 385-6045 craftauto.net Blackwell Automotive (434) 792-8853 blackwellautos.com Blake Ford (757) 569-9756 blakeford.net Blue Ridge Chrysler Dodge Jeep (276) 794-9000 blueridgecdjr.com BMW Of Alexandria (703) 684-8500 bmwofalexandria.com BMW of Fairfax (703) 560-2300 bmwoffairfax.com BMW of Sterling/Mini of Sterling (571) 933-8222 bmwofsterling.com Bob Huff Chevrolet Buick GMC (276) 228-2131 huffonline.com Bob Wade Autoworld (540) 434-3900 bobwadeautoworld.com Bomnin Chevrolet Manassas (703) 368-2111 bomninchevroletmanassas.com Bowditch Ford, Inc. (757) 595-2211 bowditchford.com
31 Boyd Honda Of South Hill (434) 447-3111 boydhondaofsouthhillva.com Brown’s Alexandria Mazda (703) 660-8400 alexandriamazda.com Brown’s Arlington Honda (703) 522-8808 arlingtonhonda.com Brown’s Chantilly Mazda (703) 222-8920 chantillymazda.com Brown’s Dulles Nissan (703) 948-1100 brownsdullesnissan.com Brown’s Fairfax Mazda (703) 385-8170 fairfaxmazda.com Brown’s Fairfax Nissan (703) 591-8009 fairfaxnissan.com Brown’s Leesburg Hyundai (703) 443-2220 brownsleesburghyundai.com Brown’s Manassas Hyundai (703) 361-9600 manassashyundai.com Brown’s Manassas Kia (703) 331-8080 brownsmanassaskia.com Brown’s Manassas Subaru (703) 361-5866 manassassubaru.com Brown’s Sterling Chrysler Dodge Jeep RAM (571) 206-0422 brownssterlingcdjr.com Brown’s VW (804) 379-7283 brownsvw.com Campus Ford (540) 932-3200 campusford.com Casey BMW (757) 989-1300 caseybmw.com Casey Chevrolet (757) 591-1100 caseyauto.com Casey Honda (757) 591-1300 caseyauto.com Casey Kia (757) 249-8000 caseykia.com Casey Toyota Scion (757) 259-1000 caseyauto.com Casey VW Subaru (757) 988-1200 caseyauto.com Cavalier Ford At Chesapeake Square (757) 488-8311 cavalierford.com Cavalier Ford Lincoln (757) 424-1111 cavalierford.com Cavalier Mazda (757) 777-3200 cavaliermazda.com Charles Barker Maserati of Virginia Beach (855) 460-8500 maseratiofvirginiabeach.com Charlie Obaugh Chevrolet Buick GMC Kia (540) 885-8893 charlieobaugh.com Checkered Flag Alfa Romeo Fiat (757) 833-8090 checkeredflagalfaromeo.com Checkered Flag Audi Porsche (757) 490-1111 checkeredflag.com Checkered Flag BMW (757) 490-1111 checkeredflag.com Checkered Flag Chrysler Dodge Jeep RAM (757) 854-6986 checkeredflagcdjr.com Checkered Flag Genesis of Virginia Beach (757) 687-3464 genesisofvirginiabeach.com Checkered Flag Honda (757) 490-1111 checkeredflag.com Checkered Flag Hyundai (757) 490-1111 hyundai.checkeredflag.com Checkered Flag Jaguar Land Rover (757) 260-5902 landrovervirginiabeach.com Checkered Flag Mini (757) 490-1111 checkeredflagmini.com Checkered Flag Toyota Scion (757) 490-1111 checkeredflag.com Checkered Flag VW (757) 490-1111 vw.checkeredflag.com Chrysler of Culpeper (540) 547-3900 chryslerofculpeper.com Classic Nissan Newport News (757) 369-6600 classicnissannewportnews.com Classic Nissan Williamsburg (757) 234-8800 classicnissanwilliamsburg.com CMA’s Colonial Auto Center (434) 951-1000 cmascolonialautocenter.com CMA’s Colonial Chevrolet, Inc. (804) 748-6461 cmascolonialchevrolet.com CMA’s Colonial Honda (804) 414-1900 cmascolonialhonda.com CMA’s Colonial Hyundai (804) 414-2020 cmascolonialhyundai.com CMA’s Colonial Kia (804) 431-3838 cmascolonialkia.com CMA’s Colonial Subaru (804) 818-7900 cmascolonialsubaru.com CMA’s Honda of Winchester (540) 869-5000 cmashondaofwinchester.com CMA’s Hyundai of Winchester (540) 665-0144 cmashyundaiofwinchester.com CMA’s Subaru of Winchester (540) 545-8000 cmassubaruofwinchester.com CMA’s Valley Chrysler Dodge Jeep RAM (877) 355-4228 myvalleychryslerdodgejeepram.com CMA’s Valley Honda (540) 213-9000 cmasvalleyhonda.com
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