WE ARE A STRONG COLLECTIVE VOICE, DEDICATED TO ADVANCING THE AUTOMOTIVE INDUSTRY IN WEST VIRGINIA. SAVE THE DATES! Motor Vehicle & Title Registration Seminar WV AUTO DEALERS ASSOCIATION ENDORSES Chris Miller for Governor 2024 ELECTION
Driving excellence in all we do. 304-624-5564 www.tetrickbartlett.com T&B Tetrick & Bartlett, PLLC is an accounting and consulting firm serving clients throughout West Virginia. We are dedicated to providing our automobile dealer clients with professional, personalized services and guidance in a wide range of financial and business needs.
WE HAVE West Virginia COVERED! In Business in West Virginia For Your Business for 30 years Responsible Attorney, Johnnie E. Brown www.pffwv.com Beckley 304-254-9300 | Charleston 304-344-0100 | Martinsburg 304-260-1200 | Morgantown 304-225-2200 WHEN IT COMES TO BEING LEGALLY COMPLIANT AND AGGRESSIVELY DEFENDED, YOU HAVE A CHOICE. WHY NOT CHOOSE A LAW FIRM THAT KNOWS YOUR INDUSTRY AND IS FOUNDED IN WEST VIRGINIA WITH FOUR OFFICES COVERING EACH REGION OF THE STATE TO PROTECT YOU? OUR FOUNDING MEMBERS AND ATTORNEYS LIVE IN THE COMMUNITIES WE SERVE. PULLIN, FOWLER, FLANAGAN, BROWN & POE, PLLC KNOWS WEST VIRGINIA AND WEST VIRGINIA’S AUTOMOBILE DEALERS. In Business in West Virginia For Your Business for 30 years Responsible Attorney, Johnnie E. Brown www.pffwv.com Beckley 304-254-9300 | Charleston 304-344-0100 | Martinsburg 304-260-1200 | Morgantown 304-225-2200 WHEN IT COMES TO BEING LEGALLY COMPLIANT AND AGGRESSIVELY DEFENDED, YOU HAVE A CHOICE. WHY NOT CHOOSE A LAW FIRM THAT KNOWS YOUR INDUSTRY AND IS FOUNDED IN WEST VIRGINIA WITH FOUR OFFICES COVERING EACH REGION OF THE STATE TO PROTECT YOU? OUR FOUNDING MEMBERS AND ATTORNEYS LIVE IN THE COMMUNITIES WE SERVE. PULLIN, FOWLER, FLANAGAN, BROWN & POE, PLLC KNOWS WEST VIRGINIA AND WEST VIRGINIA’S AUTOMOBILE DEALERS.
©2023 West Virginia Automobile Dealers Association (WVADA) | The newsLINK Group, LLC. All rights reserved. The WVADA News is published four times each year by The newsLINK Group, LLC for the WVADA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the WVADA, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. The WVADA News is a collective work, and as such, some articles are submitted by authors who are independent of the WVADA. While the WVADA News encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at 855.747.4003. CONTENTS 5 President’s Message The Learn and Earn Program BY JARED WYRICK, PRESIDENT WVADA 6 Finding Talent Through the WVADA Learn and Earn Program BY JARED WYRICK, PRESIDENT WVADA 8 WV Auto Dealers Association Endorses Chris Miller for Governor — 2024 Election 10 By the Numbers West Virginia Elective PassThrough Entity Tax BY LONNIE ROGERS, TETRICK & BARTLETT, PLLC 12 Counselors Corner Safeguarding Your Property and Your Customers’ Vehicles BY JOHNNIE BROWN, ESQ. 13 Save the Dates! Motor Vehicle & Title Registration Seminar 14 Dealerships Must Use New Form I-9 Beginning November 1 BY MATT SIMPSON, FISHER PHILLIPS 16 Control What You Can BY JUSTIN CARR, WARRANTY PROCESSING COMPANY 18 7 Powerful Vehicle Acquisitions Tactics That Will Boost Your Profits BY BRIAN KRAMER, CARS.COM 20 Driving West Virginia's Economy 22 Remaining Competitive in the Car Business Professionalizing the FamilyOwned Auto Dealerships BY KENDALL RAWLS, THE RAWLS GROUP 24 Dealership Facility Design Adapts to Shifts in Auto Retailing BY JASON W. SMITH, HEAD OF TRUIST DEALER SERVICES, RYAN STANCILL, PRINCIPAL AT PRAXIS3 ARCHITECTURE DESIGN FIRM, AND JOE PELLA, HEAD OF NATIONAL COMMERCIAL REAL ESTATE AT TRUIST 27 Masquerade: A Night in Disguise VIP Charity Gala 28 Partnerships Help Dealers Succeed BY SHARON KITZMAN, DOMINION DMS 31 Save the Date! 2024 WVADA Dealer Family Convention 32 In the Community 34 Executive Committee, Board Of Directors, Directors At Large, and Meet Our Team 2023 Issue 3 22 24 WVADA News 4
JARED WYRICK PRESIDENT’S MESSAGE The Learn and Earn Program Dear West Virginia dealers, In an ever-evolving automotive industry, staying ahead of the curve is crucial for success. One innovative program, the Learn and Earn initiative, is offering auto dealers a unique opportunity to connect with community and technical college talent while enjoying substantial financial benefits. The program connects employers with students, allowing them to take courses while gaining paid work experience with your dealership. This program not only fosters relationships between businesses and community and technical colleges but also supports students on their educational journey while offering financial incentives to employers. Created by the West Virginia Community and Technical College System, I strongly encourage you to take advantage of this program. One of the standout features of the Learn and Earn program is the direct reimbursement it provides to companies for the costs associated with training. The student pay is shared 50/50 by the company and the community and technical college, with students receiving at least $10/hour to work in the field they’re studying. This financial incentive not only encourages businesses to hire West Virginian workers but also helps offset training expenses. Last fall, the Learn and Earn program at Eastern CTC partnered with Weimer Chevrolet Buick GMC of Moorefield to provide a program for students enrolled in the auto technology program. Dr. Tom Striplin, President of Eastern CTC, highlighted the benefits for students, saying, “This is an exciting opportunity for our automotive technology students to gain experience and strengthen their understanding of working in the automotive industry while receiving compensation, which helps to offset the cost of a college degree.” For students pursuing careers in auto technology, the Learn and Earn program offers valuable on-the-job training opportunities that enhance their skillset and employability. Gareth Hill, General Manager of Weimer Chevrolet Buick GMC of Moorefield, emphasized how the partnership benefits dealerships. "Having students train in the dealership provides Weimer an opportunity to assess work habits, dependability and skills prior to consideration for employment," he stated. This partnership not only provides dealerships with highly qualified prospective employees but also contributes to the development of a skilled labor pool for the entire industry. Workforce skills development is a top priority for businesses in the region, and community and technical schools are stepping up to meet these demands, especially with this Learn and Earn Program. WVADA News 5
Overall Program Benefits for Your Dealership • Tap into a trusted talent pool • Reduce the cost of onboarding • Cultivate dedicated employees • Address current skills gaps Available Programs BridgeValley in South Charleston, Eastern in Moorefield and New River in Beckley are among the institutions offering auto tech and diesel programs. These schools collaborate with students and employers to create customized training courses, design curriculum specific to industry needs and identify students for specialized positions. If you would like more information about the Learn and Earn, please contact: • BridgeValley at learnandearn@bridgevalley.edu or (304) 205-6629 • New River at gkincaid@newriver.edu • Eastern at lauren.arbaugh@easternwv.edu Thank you, Jared Wyrick WVADA President Finding Talent Through the WVADA Learn and Earn Program WVADA recently spoke with Chris Miller of Dutch Miller Auto Group about their dealerships’ experiences with the Learn and Earn program. What are your thoughts about the Earn and Learn program as it relates to the auto industry’s focus on recruiting and retaining talent? It’s an incredibly successful program. Our experience with it has been wonderful. Due to the pandemic, the program experienced a lull because we couldn’t have students in the shop, but we felt it was successful enough that we are planning on revisiting it How have you used this program in your dealerships? Before the pandemic, we were working with twelve students per year throughout all our dealerships. Our techs loved to engage with and mentor the students — you know mentoring is really a positive thing for both the mentor and the student, if you will. I think the interaction is really beneficial for everyone. Depending on the student’s school schedule, the students were on-site as much as they could be. They were excited, too — some students even came in on Saturdays. Employers get credit for wages paid and students get school credit. This is such a win/win program. The education system positively impacts the talent pipeline for employers here in West Virginia, while the students receive real ground-level, hands-on training and experiences. As all dealers know, there’s a major demand for automotive techs. I think that this program is invaluable; students come out more informed about their career options and ready to work. This program is a sort of “grown your own” approach to hiring, and while there is a longer commitment to mentoring and growth, what are your thoughts about the quality of the hires coming through a program like this? Very good, we still have two full-time employees from this program. The students are young — 16 to 18 — but they are so excited for real-world experiences. Now granted, some of the students will go into other areas of the automotive industry, and some will decide it’s not for them and go on to college or other opportunities. But it’s a positive thing all the way around. Even if you get one longterm employee, it’s a win. Please share a success story. Well, as I mentioned, we still have two full-time mechanics through this program, so that’s successful. We also gained our first female mechanic, who stayed with us for years through this program. I felt it was groundbreaking at the time; I love that this program offers career options to students who may never have considered the auto industry before. What would you say to other dealers about this program? If you are not considering this program as a viable option for increasing talent at your dealership, you are missing the boat. We need to mentor kids and sell our industry as a career option. WVADA News 6
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T he West Virginia Automobile Dealers Association, the state’s new car franchise dealer membership group representing 140 dealerships, over 13,000 employees, and $295 million in state sales taxes paid annually, is excited to announce the organization’s endorsement of Chris Miller for Governor. Jared Wyrick, President of the West Virginia Automobile Dealers Association, said, “Chris Miller understands that the problems West Virginia faces today are not made for politicians to solve, but rather a businessman. West Virginia’s greatest export should not be its citizens. It’s time to rebuild a West Virginia where our next generation will want to stay, and Chris will create an economy that brings those who left back.” “For years, I’ve watched our state never reach its full potential, and I’m tired of it. They've taken our coal and our gas, and we have little to show for it,” said Miller. “Our state is a gold mine, and if we play our cards right, we are on the verge of greatness. I’ll be the greatest promoter West Virginia has ever had.” From Biden’s record inflation to the fentanyl pouring across our border to defunding our police, Miller knows that liberal politicians are failing West Virginia families. Miller believes in getting the government out of the way and supporting West Virginia families and businesses. Miller will fight to bring transparency to Charleston, protect our kids from the radical left’s agenda, and defend West Virginians’ rights. “We mine the coal that built this country, and among our hills are honest, hardworking people and tons of natural resources. We have what people want: high quality of life, natural beauty, and a lower cost of living,” said Miller. “West Virginia has made tremendous strides the past few years, and I plan to continue the momentum.” Miller was born and raised in Huntington, West Virginia, where he learned the importance of hard work, discipline, and responsibility from an early age. Now, Miller is ready to use his business experience to create a government that treats its citizens like customers. Miller is currently an owner of a successful auto dealership group in the state, and he and his family employ approximately 600 people under 26 different enterprises that include not only the automotive space but also real estate, insurance/reinsurance, and energy. He lives in his hometown of Huntington with his wife Cassie, their three children, and two puppies. For additional information, please contact Jared Wyrick at 304-343-4158. WV AUTO DEALERS ASSOCIATION ENDORSES Chris Miller for Governor 2024 ELECTION WVADA News 8
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
BY THE NUMBERS West Virginia Elective PassThrough Entity Tax By LONNIE ROGERS, Tetrick & Bartlett, PLLC n March of 2023, the West Virginia legislature passed a bill allowing passthrough entities (PTE) to annually make an election to pay West Virginia income tax at the entity level for the 2022 tax year and beyond. The bill affected primarily partnerships and S corporations; however, other entities that pass-through income to individuals can also be impacted. This article deals only with the impact on partnerships and S corporations. The PTE tax rate is the top marginal individual rate for the year. The PTE tax rate was 6.5% for 2022 and is 5.12% for 2023. The significance of the elective pass-through entity tax is that the state income tax paid qualifies as a deduction at the entity level for calculating the federal taxable income that will flow through to the individual owners’ (partners or S corporation shareholder) return. This state income tax deduction at the individual level was limited to $10,000 as a component of property and other deductible taxes as an itemized deduction. An example of the federal tax savings available for those electing the pass-through entity tax for 2022 follows: Net income before pass through entity tax $1,000,000 Elective Pass-Through Entity Tax @ 6.5% $65,000 Reduction in Qualified Business Income 20% $13,000 Net Reduction in Federal Taxable Income $52,000 Federal Tax Savings on Elective PTET @ 37% $19,000 For 2023, an estimated payment for the first three quarters was due on Sept. 15, 2023. The final estimated payment for 2023 is due Dec. 15, 2023. The elective pass-through entity tax is allocated to the partners and shareholders of the companies and is claimed as a non-refundable credit on the WV personal income tax return. Excess credits may be carried forward for up to five taxable years. A cautionary note for non-resident owners: some states do not allow the pass-through entity tax as a credit for income taxes paid to another state. An example of this is Pennsylvania. Pennsylvania allows a pass-through entity tax as a credit for income taxes paid to another state for S corporation shareholders but not for partners in entities taxed as partnerships. Proper planning for non-resident owners needs to be considered. In most instances, the elective PTE tax is a benefit to the partners and shareholders of profitable pass-through entities. There are situations where electing the PTE tax is not advantageous to the taxpayer when the taxpayer’s personal income is reduced by losses from other sources. You should consult with your tax advisor before making the election. Leon M. (Lonnie) Rogers, CPA/ABV/CFF, is the managing member of Tetrick & Bartlett, PLLC and has been providing accounting, tax, valuation, and consulting services to automobile dealers since 1977. Tetrick & Bartlett, PLLC currently serves over fifty dealers in West Virginia, Virginia, Ohio, and Pennsylvania and is a member of the AutoCPA Group, a nationwide organization of CPA firms specializing in services to automobile dealers. Lonnie can be reached at lrogers@tb.cpa or (304) 624-5564. I WVADA News 10
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SAFEGUARDING YOUR PROPERTY AND YOUR CUSTOMERS' VEHICLES By JOHNNIE BROWN, Esq. his article takes a little different track by not addressing a particular area of the law, but offering more practical or day-to-day information that may assist you. I have the opportunity to review and study a variety of products and services available to dealers. This usually occurs during my review of contracts for West Virginia dealers. Of course, there is a wide variety of marketing, customer satisfaction and management tools. The latter can include used car inventory and pricing assistance, human resources and financial reporting. All are important as we attempt to guide our businesses through these challenging times. However, not to exclude any vendors or service areas, I wish to focus on a product that hits a little closer to home and which is designed to prevent theft and destruction of your property. Around the country and in our small state, we have seen the rising tide of catalytic converter theft. The financial and operational disruptions caused by these thefts are of significant concern, not to mention the psychological toll of theft. It's certainly important that we explore innovative solutions to initially protect your inventory and, later, our customers' investments to help ensure the continued success of our businesses. You may recall during the 2021 Legislative Session, WVADA passed a bill relating to catalytic converter thefts. The bill prohibits scrap dealers from taking possession of any converter that has had its identifying information alerted or destroyed. Today, I wish to inform you about a tool in this battle: Catalytic Converter Etching. While I am sure there are several vendors offering this type of product, I wish to address one that I more closely examined; it is called CatTrak Catalytic Converter Etching. Catalytic converter theft has reached alarming levels, wreaking havoc on our dealerships' bottom lines and eroding customer trust. Thieves target these emissions control devices due to the valuable metals they contain, leaving vehicle owners burdened with substantial repair costs and insurance claims. However, there is a proven way to deter these criminals and preserve the integrity of your business. CatTrak provides a strong deterrent against these thieves and protects your customers' vehicles against catalytic converter theft. CatTrak is a voluntary protection product with current and practical applications to real-world problems. This voluntary protection product can not only enhance a customer’s peace of mind but also increase your dealership's revenue streams. 1. Revenue Generation By offering CatTrak to your customers as an optional addon, you're opening a new avenue for revenue generation. The value of this product lies in its effectiveness and practicality. It's a relatively small investment that promises significant returns for both your customers and your dealership. 2. Seamless Integration with NICB Registration CatTrak is not just any anti-theft solution; it's a partner in crime prevention. This product seamlessly integrates with the National Insurance Crime Bureau's (NICB) catalytic converter registration system. This integration ensures that each etched catalytic converter is registered in the NICB's database, bolstering its traceability in case of theft. This collaboration with NICB enhances the value of this type of product, as the NICB database aids law enforcement agencies in swiftly identifying stolen COUNSELOR'S CORNER T WVADA News 12
catalytic converters and returning them to their rightful owners. This integration between CatTrak and NICB showcases your dealership’s commitment to proactive security measures. 3. Affordable and Simple Installation The implementation of CatTrak is both affordable and straightforward. With minimal training, your technicians can seamlessly incorporate the etching process into your service offerings. With an installation and NICB registration time of under 10 minutes, the convenience of installation will not disrupt your dealership's operations, making it a hassle-free addition to your services. I appreciate you have to evaluate many products and services and consider a variety of factors before adding them to your inventory of voluntary protection products. I know our members sell products that provide real value to their customers. In turn, we want the customers to appreciate the value of the vehicles and products they purchase — products that address the current problem that exists and provide an obvious value. Next article, I will get back to legal guidance. I have an interesting experience on Canadian vehicles to share with you. I hope you have enjoyed the slight detour in “Counselor’s Corner,” but let me know what you think about occasionally addressing these voluntary protection products. As always, the goal is to provide you with useful and helpful information. As always, the WVADA and I are here to assist you, so please don’t hesitate to reach out with your concerns and questions. We are already ready to assist. I hope everyone has a great fall, and cheers on the Mountaineers and Thundering Herd. CatTrak provides a strong deterrent against these thieves and protects your customers' vehicles against catalytic converter theft. Tuesday, Nov. 7th VIENNA Grand Pointe Conference Center 1500 Grand Central Ave Vienna, WV 26105 Wednesday, Nov. 8th CHARLESTON Charleston Coliseum 200 Civic Center Dr Charleston, WV 25301 Thursday, Nov. 9th BECKLEY Beckley-Raleigh County Convention Center 200 Armory Dr Beckley, WV 25801 Monday, Nov. 14 WHEELING Wheeling Country Club 906 Oglebay Dr, Wheeling, WV 26003 Wednesday, Nov. 16 MARTINSBURG Hilton Garden Inn 65 Priority Dr Martinsburg, WV 25401 Thursday, Nov. 17 BRIDGEPORT Bridgeport Conference Center 300 Conference Center Way Bridgeport, WV 26330 MOTOR VEHICLE & TITLE REGISTRATION SEMINAR Save the Dates! 6 Locations If you have any questions, please contact Haley Justice at 304-343-4158 Scan to register. https://wvcar.com/2023motor-vehicle-titleregistration-seminar/ WVADA News 13
ederal immigration officials just made critical changes to modernize the I-9 employment verification process. The new Form I-9 was made available for employers to use beginning August 1, and all employers must use the new form by November 1. Here are best practices for compliance, given the new rules soon in effect. DHS Makes Changes to the Streamlined Form I-9 The new Form I-9 has been available for dealers to use beginning August 1. However, dealers must use the new form by November 1. The full list of DHS’s changes include: • Reduced Sections 1 and 2 to a single-sided page by merging some fields; • Moved the Section 1 Preparer/Translator Certification area to a separate, standalone Supplement A that employers can provide to employees if needed; • Ensured the form can be filled out on tablets and mobile devices; • Ensured the form can be downloaded easily and removed the requirement to enter “N/A” in certain fields; • Revised the Lists of Acceptable Documents page to include some acceptable receipts, as well as guidance and links to information on automatic extensions of employment authorization documentation; and • Added a box that eligible employers must check if the employee’s Form I-9 documentation was examined under a DHS-authorized alternative procedure rather than via physical examination. DHS also reduced the length of the Form I-9 Instructions from 15 pages to eight pages and streamlined the steps each actor takes to complete their section of the form, among other changes. Qualified E-Verify Employers May Remotely Examine Form I-9 Documents Under current Form I-9 rules, employers are required to physically examine an employee’s original identity and work authorization documents. DHS has now created a separate framework to authorize alternative document examination procedures as an optional alternative to the in-person physical document examination method. The first alternative DHS authorized is an option for qualified E-Verify employers to remotely examine identity and work authorization documents beginning on August 1. Qualified E-Verify employers are those employers who are in good standing with E-Verify, have enrolled in E-Verify with respect to all hiring sites that use the alternative procedure and comply with all E-Verify requirements. If a qualified employer chooses to offer the alternative procedure to new employees at an E-Verify hiring site, they must do so consistently for all employees at that site. However, dealers may choose to offer the alternative procedure for remote hires only and continue to apply physical examination procedures to all employees who work onsite or in a hybrid capacity, so long as they do not adopt such a practice for a discriminatory purpose or treat employees differently based on their citizenship, immigration status, or national origin. A qualified E-Verify employer may continue to examine documents physically instead of remotely. Additionally, dealers must allow employees who are unable or unwilling to submit documentation using the alternative procedure to submit documentation for physical examination. F DEALERSHIPS MUST USE NEW FORM I-9 BEGINNING NOVEMBER 1 By MATT SIMPSON, Fisher Phillips WVADA News 14
Requirements of the Alternative Document Review Procedure Within three business days of an employee’s first day of employment, a qualified E-Verify employer (or an authorized representative acting on the employer’s behalf) who chooses to use the alternative procedure must: 1. Examine copies (front and back, if the document is two-sided) of Form I-9 documents or an acceptable receipt to ensure that the documentation presented reasonably appears to be genuine; 2. Conduct a live video interaction with the individual presenting the document(s) to ensure that the documentation reasonably appears to be genuine and related to the individual. The employee must first transmit a copy of the document(s) to the employer (per Step 1 above) and then present the same document(s) during the live video interaction; 3. Indicate on the Form I-9, by completing the corresponding box, that an alternative procedure was used to examine documentation to complete Section 2 or for reverification, as applicable; 4. Retain a clear and legible copy of the documentation (front and back, if the documentation is two-sided); and 5. Create an E-Verify case if the employee is a new hire. DHS Provides Relief for Certain Employers Enrolled in E-Verify During COVID-19 Flexibilities Perhaps the most significant development is the alternative solution DHS is now offering qualified employers who were left with an arduous task of bringing in all the employees they hired remotely during the COVID-19 pandemic to review their original documents and annotate their I-9s by the upcoming August 30 deadline. Qualified E-Verify employers can use the alternative procedure to satisfy the required physical examination of an employee’s documents for that Form I-9 if the dealer: • Was enrolled in E-Verify at the time they performed a remote examination of an employee’s Form I-9 documentation for Section 2 or reverification while using the COVID-19 flexibilities; • Created an E-Verify case for that employee (except for reverification); and • Performed the remote inspection between March 20, 2020 and July 31, 2023. These dealers should not create a new case in E-Verify. All qualified employers that use the alternative procedure instead of physical examination as described above must follow the steps of the alternative procedure and add “alternative procedure” with the date of examination (meaning the date the employer performed a live video interaction as required under the alternative procedure) to the Section 2 Additional Information field on the Form I-9 or in Section 3, as appropriate. WVADA News 15
n business, as in life, there are some things you can control and others you can’t. However, there are many controllable aspects of your dealership. For example, you can control how you spend your time, allocate your resources, respond to challenges and obstacles, and the suppliers you choose as partners to propel your success. Cycles Are Inevitable The automotive industry goes through cycles just like other industries. In 2019, dealers sold over 17 million vehicles. In 2020, it was less than 14.5 million vehicles. The number fell even lower in 2022 to less than 13.9 million. We’ve seen this before and know sales and service will pick up. The best thing you can do is get deep processes in place so your dealership can grow when sales rebound. A finely tuned service department can pick up the dealership. Warranties matter because they impact service revenue. When fewer vehicles are fixed, maximizing the profit margin for each repair is more important than ever. Payroll and Process Hold Hands This is worth discussing. If you make the process efficient now, you can keep your overall payroll smaller and may not need to hire anyone later. Having your house in order helps you avoid having to hire unneeded staff during the rebound, which can maximize your margin of profitability. Why Dealers Need a Warranty Service Partner No matter how successful you think your dealership is, you can strengthen it by looking at processes and training employees. Employees should know what matters and how they contribute to the dealership’s success. Understanding their role helps them to feel part of the bigger picture. This strengthens your culture and can help reduce turnover. Dealers who ignore issues with efficiency or timeliness hurt their dealerships in multiple ways that can affect their dealership’s longevity. First, managers need to know which processes are working or failing. Revenue can decrease if a manager cuts costs without understanding which costs grow revenue. For example, a manager might not realize a highly paid employee’s value in lifting the entire service department and training younger, less experienced employees. Being wellpaid doesn’t equal being overpaid. Second, dealers sometimes expand their payroll instead of maximizing their margin within the service department. Many people play a role in the life cycle of a warranty claim. Since people compensate for inefficiencies with workarounds, the results can affect the whole service department adversely. Hiring more people instead of improving the process costs you hard dollars and lets the service department continue to be inefficient. Increasing the profit margin is smarter than spending money unnecessarily; also, maximizing your margin when it is harder to make a profit will serve as preparation to grow profits more efficiently later. To improve how your dealership works, evaluate and improve the quality of your business decisions. Running a dealership is complicated. Getting knowledgeable and objective advice from outside the dealership can help you examine and improve your business’s processes. Your goal should be to capture every warranty dollar, but you must be granular to do that, and a General Manager’s job is typically not granular in that department. Instead, hire a warranty company to act as your partner. What the Right Partner Should Do A warranty partner can get receivables flowing and protect your dealership from audit problems, but they don’t just lift warranty claims. A good one boosts the service department by making it unnecessary for the service manager to spend time in the weeds. They also help the team work together more efficiently. Tech enablement is important on the fixed operations side of a dealership, but deep tribal knowledge and an equally deep understanding of data are also important. The warranty I By JUSTIN CARR, Vice President, Warranty Processing Company Control What You Can WVADA News 16
company helps the service manager focus on growth by fixing processes and providing insights and information. Owners and General Managers often don’t have a front-row seat to the intricate details that get and protect the money on a warranty repair. Although state laws are being implemented to combat dated factory policies, dealerships should not solely focus on getting a labor rate and parts markup increase. These types of increases will certainly help the bottom line, but are they being as impactful as they could be? Some dealers don’t maximize the warranty to include items like rentals, test drives, or any additional work that needs to be done so the repair is handled correctly the first time. They may skip signing and approving add-ons, which could ultimately result in you losing that money down the road. Sometimes employees leave items off claims because they don’t know how to get an advanced repair order paid. Teach them. Checks and balances in the warranty process are important to maximize repair orders. Adjustments that appear on the warranty schedule are not necessarily a bad thing. Imbalances are an opportunity to gain knowledge, fight for additional dollars and make corrections to processes or systems that improve efficiency. Too many dealers are submitting repair orders to the manufacturer before they are closed to the DMS system. Once they are paid, they are closed to the DMS for that amount. How can you ensure that you have collected every dollar in that process? What is your tool to monitor progress? In the previously mentioned scenario, there is nothing on the schedule that would show you that a rental was left off or a part was marked up incorrectly. It also creates risk and potential audit liability. Was a recurring problem not identified? Are you giving the manufacturer just reason to recapture your legitimate dollars stating that a repair didn’t follow policy and procedure? Be conscious that you are getting all the dollars the manufacturer will pay, and avoid closing repair orders after the manufacturer has released the credit statement. Audit each claim to ensure it complies with the policy and procedure, and nothing is missing. Ensure all codes are applied, identify and understand all variances before reconciling the differences, and update everything daily. It is easy to keep a schedule clean and running clean when you touch it every day. When warranties fall behind, they become a mess. When that happens, the work it takes to clean them up is extremely time-consuming and can involve many staff. By controlling the things you can, you make it easier to achieve your goals and objectives. You also minimize the risks associated with uncertain or uncontrollable factors. The right warranty company can help you create a clean, complete process. Justin Carr is a VP at Warranty Processing Company, which recently relocated to Texas. Justin works with dealers nationwide to increase efficiency within service departments and educates dealer staff on why efficiencies matter. To learn more, please visit warrantyprocessing.com. WVADA News 17
ompared to this time last year, inventory levels continue to improve. But we’re still not back to the number of available new and used vehicles pre-pandemic. Thankfully, there are always new tactics you can implement to help to improve your dealership’s ability to acquire the right vehicles, at the right price. Here are seven that will keep your lot stocked with fresh vehicles in the months to come. TACTIC #1: Use the Power of “Why Sell” During the height of the inventory shortage, as retail prices on used inventory soared, many consumers took advantage of favorable market conditions to consolidate the number of vehicles in their family fleet while improving their financial position at the same time. This shift in selling intent was clearly observable when looking at search trends for keywords like “sell my car” and “sell my car for cash today.” When we fast forward to today, this trend isn’t slowing down. Search volume for related keywords is still elevated well above pre-inventory shortage levels. That’s why it’s important not to focus your marketing and messaging on just “trades.” When you leave out the option for consumers to sell their car to you without buying one, you’ll be missing a key opportunity to acquire additional inventory. Be sure to keep your dealership top of mind for consumers off-loading their current ride by combining a connected marketing campaign with your unbeatable local selling experience. TACTIC #2: Maximize Trade/Sell Engagement on Your Website If you want your website visitors to know your dealership will buy their car, you have to tell them. So, back up and amplify your “why sell” message on your website and other marketing channels. Overall, you want to highlight the benefits of trading or selling a car to your dealership. Be sure to include details like providing a guaranteed offer, avoiding the hassle of private sales and saving time and money. On your website, your trade/sell messaging should be front and center, making that experience only a click or tap away. Additionally, make sure to maximize your impressions by linking your trade/sell landing page to your main menu, and don’t forget to place a prominent CTA above the fold on your homepage. TACTIC #3: Provide Consistent Values Across Your Platform With the proliferation of trade-in, digital retailing and chat widgets being mixed and matched on dealer websites, a growing problem has emerged where consumers receive different values for their vehicle on your website depending on the experience they’re using. For example, you may have a trade-in widget embedded on a landing page that provides an estimated value range for a vehicle. But the trade-in phase of your digital retailing tool uses a different source of data, resulting in an alternate value provided for the same vehicle. You’ll build trust by providing a consistent appraisal experience across your website platform. In turn, you’ll increase your chances of acquiring more vehicles. Powerful Vehicle Acquisitions Tactics THAT WILL BOOST YOUR PROFITS By BRIAN KRAMER, Cars.com C 7 WVADA News 18
Take action by appraising a personal vehicle using the same tools on your website that your consumers use. Are you getting matching values across your different tools, or do they differ depending on the experience you’re using? TACTIC #4: Optimize Your Trade-In Page for Local SEO When you turn to Google to search using keywords related to selling or trading in a vehicle, you’ll typically find that a majority of the organic results belong to the bigname brands in auto. However, if you look closely, you’ll see that Google also will provide searchers with links to relevant local dealerships on the first page of results and in the map pack, if you have relevant content published on your website. It’s not enough to embed your trade-in tool on a basic landing page and expect it to be enough to crack the rankings by itself. You must also optimize and add content to that page that explains your process, and share your message of a local, quick, convenient and trustworthy experience. TACTIC #5: Market Your Experience Online Once you’ve refined your trade/sell message and have optimized that experience across all areas of your website, now it’s time to go to market with a strong message targeted to local consumers looking to maximize the value of their vehicle. You’re probably already running search engine marketing campaigns for your inventory, name, and/or location; but do you have a campaign set up specifically for vehicle acquisition? With the majority of searches taking place on mobile devices, it’s hard to ignore the fact that the first one or two screens of the search results are sponsored listings. So even if you have an optimized trade/sell landing page that ranks organically, you still want to be able to catch a consumer’s attention right from the start with a well-placed ad and with your dealership’s value propositions. For the biggest impact, look to increase your trade/sell reach by utilizing your other marketing channels like display, social, and video to ensure that you're sharing your message with local in-market consumers during all stages of their journey across platforms and devices. TACTIC #6: Get Trades from Traditional Ads Just as the inventory shortage was brought about by the pandemic, so was the accelerated adoption of technology that changed consumer behavior. One such technology is the QR code, which had been largely overlooked for a decade, but now has become a common feature in our daily lives. If you want to make sure you’re giving your dealership every opportunity to acquire more cars, use QR codes in your newspaper, direct mail, and TV advertising. When scanned, they’ll lead a consumer directly to the trade/sell experience on your website. QR codes not only create engaging offline-to-online experiences, but they also provide a better insight into the ROI of your traditional advertising campaigns — which historically has been challenging to prove. TACTIC #7: Future-Proof Your Follow Up It’s important to understand that all the opportunities in the world to acquire a vehicle won’t mean a thing if you haven’t developed a specific follow-up process for your dealership. Too often, a trade or sell lead gets treated just like any other sales opportunity. It hits the CRM, and then a salesperson or BDC agent picks up the phone to give them a call. More often than not, they leave a voice message, and then the CRM automated email follow-up process kicks in for the next 90 days. As fewer people answer phone calls from unknown numbers and email continues to become less urgent for consumers to check regularly — texting has become the best way to follow up with all of your leads to get an immediate response. Closing Thoughts No matter how your dealership's inventory is being affected by industry trends, there are always ways to enhance your vehicle acquisition process. Start by looking for simple ways to improve the tactics you’re already embracing. If you don’t see the level of results you want, try one (or all) of these tactics that you haven’t used before, and watch how it will make your acquisition operations more effective for today, and the future. … there are always new tactics you can implement to help to improve your dealership’s ability to acquire the right vehicles, at the right price. WVADA News 19
Dealerships (new car) 132 11,770 Total (created by dealerships) Includes 6,066 direct jobs and 5,704 indirect and induced jobs. 46 Employees (average per dealership) $415M Payroll $68,445 Average Annual Earnings $111M State & Federal Income Taxes Paid Includes income taxes paid for direct, indirect and induced jobs. DRIVING WEST VIRIGINIA’S ECONOMY Source: Center for Automotive Research, NADA, S&P Global, Taxfoundation.org, U.S. Bureau of Labor Statistics, U.S. Census Bureau Numbers reflect annual economic activity during 2022 ___________________________ $6.6B Total Sales (all dealerships) _____________ $396M State Sales Tax Paid WVADA News 20
DRIVING WEST VIRIGINIA’S ECONOMY 14 Total New-Truck Dealerships 840 Dealership Employees Total Sales $736M Annual Contribution of West Virginia’s Class 4-8 New Truck Dealers $53M Payroll 1,184 Annual Registrations (Class 4-8 trucks) AMERICAN TRUCK DEALERS 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 WVADA News 21
The Importance of Professionalism in FamilyOwned Auto Dealerships In the current corporate landscape, family-owned enterprises are facing challenges as they vie for success against bigger conglomerates and nationally recognized brands. In the automotive industry, where consolidation is prevalent, family-owned dealerships are under significant strain to keep pace with their larger counterparts and stay relevant. One viable solution for family-owned dealerships to gain a competitive advantage is to adopt a more professional approach to running their business. The Role of Culture in Family-Owned Auto Dealerships Successful family-owned dealerships or auto groups often neglect formalities that can lead to problems such as nepotism, inconsistent policies, and toxic family/business interactions. These issues can have a negative impact on performance and drive away valuable talent. Without top talent, family business owners will struggle to stay competitive, and the value of the business will decline rapidly. To remain competitive and grow the business, it is crucial to create an attractive culture that retains employees and customers while also performing well. The Unique Advantage of Family-Owned Auto Dealerships At the NADA 2023 “Growth Strategies for the FamilyOwned Business” workshop, Champ and Kendall Rawls discussed a unique approach for family businesses to succeed. Rawls suggested keeping the “family” aspect in a family-owned business as it can provide a competitive advantage over private and public companies. Additionally, leveraging the existing name recognition in the community can be beneficial. To achieve success, it is essential to promote your dealership(s) as a local family-owned business while also incorporating the formalities of successful mega dealers and public companies. This approach can help maintain the family aspect while still achieving growth and success. Strategies for Professionalizing Your FamilyOwned Auto Dealership Elevate the professionalism of your business by formulating, systematizing and transmitting your fundamental values. Construct a purpose statement, a future outlook and objectives and ensure that you and your team adhere to these indispensable principles. By applying this methodology, you can rest assured that your family enterprise will not only endure but also prosper. The Benefits of Professionalizing Your Family-Owned Auto Dealership To professionalize your family business, it is advisable to develop job descriptions for all positions, identify and adhere to core values, and establish standardized processes and procedures. This approach will result in increased efficiency and effectiveness in running your business and also position your business as one that values its employees and customers, thereby standing out in your community. “Professionalizing” your family business will mitigate emotional distractions allowing your people to focus on the purpose of their positions. By professionalizing your business, you are also building value in your business, which will support your long-term growth and succession strategy. Consider the following as it relates to achieving your family and business vision. Remaining Competitive in the Car Business PROFESSIONALIZING THE FAMILY-OWNED AUTO DEALERSHIPS By KENDALL RAWLS, The Rawls Group WVADA News 22
8 Steps for Creating a Growth & Succession Strategy 1. Determine your vision. Your vision may be to get out of day-to-day so you can focus on strategic growth and mentoring, to spend more time on hobbies and less time at work, or a combination of both. Whatever it is, it will involve some form of growth and change. • What is the WHY behind what you are doing now and what you want to be doing in the future? • Where do you see yourself in the next 5-10 years? 2. Share your vision with your trusted advisors. • Lean on expert advisors and trusted leaders to provide perspective and support based on where you want to go. Business, personal and family success is not a solo endeavor; it requires a team effort. 3. Evaluate who and what will be impacted based on where you are now and where you want to grow and transition into. • What resources do you need? • What infrastructure is required? 4. Develop a strategy with your team of advisors and key leaders to achieve your vision. • How will you develop or acquire the resources needed? • What is your one-year, two-year, three-year strategy? • Who is driving each project and how frequently will you meet to review the strategy? 5. Consider the possible, probable and potential issues that can impact achieving your vision such as: • Unexpected health scare or death of the owner/ key leader • Inflation, recession, supply chain, technology, political or regulatory issues • Conflict with business partners • Family issues influencing or impacting business decisions • Issues with strategic vendor(s) impacting business performance 6. Develop A, B, and C plans, considering your strengths, weakness and outside opportunities and threats; so no matter what is thrown your way, you have options to fulfill your vision. 7. Lean on your team of expert advisors to educate you so you can make well-informed decisions. 8. Re-evaluate your vision and proceed where necessary through steps one through seven. Kendall Rawls knows and understands the challenges that impact the success of a family-owned business. Her unique perspective comes not only from their educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group — Business Succession Planners. For more information, visit seekingsuccession.com or email info@rawlsgroup.com WVADA News 23
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