TIME Dealer of the Year Nominee FRED TIMBROOK WE ARE A STRONG COLLECTIVE VOICE, DEDICATED TO ADVANCING THE AUTOMOTIVE INDUSTRY IN WEST VIRGINIA.
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 6 PRESIDENT’S MESSAGE A Year of Growth, Collaboration and Advocacy BY JARED WYRICK, PRESIDENT WVADA 8 Thank You Sponsors for a Successful 2023! 9 WVADA President’s Circle 10 2024 TIME Dealer of the Year Nominee: Fredrick “Fred” J. Timbrook 12 TIME Dealer of the Year Past Nominees 14 Thank You to Everyone Who Attended Our DMV Seminars 16 BY THE NUMBERS Corporate Transparency Act Yes, It (Most Likely) Applies to You BY TASHA SINCLAIR, CPA/ABV, TETRICK & BARTLETT, PLLC 17 Save the Date! 2024 WVADA Dealer Family Convention 18 Counselor’s Corner BY JOHNNIE BROWN, ESQ. 20 Masquerade: A Night in Disguise VIP Charity Gala 21 Charlotte Pyle Inducted Into Hall of Fame 22 How to Build a Consumer-Friendly Service Experience That Is Efficient BY SHARON KITZMAN, DOMINION DMS 24 6 Drivers To Keep Your Dealership’s Team Engaged in Times of Change BY DON GELETKO AND JEREMY SPIDELL, TRUIST LEADERSHIP INSTITUTE. BROUGHT TO YOU BY TRUIST DEALER SERVICES. 27 WVADA Preferred Partner Programs 28 In the Community 33 Executive Committee, Board Of Directors, Directors At Large, and Meet Our Team 34 Thank You to All Our WVCar PAC Contributors for 2023! 34 Thank You to Everyone Who Contributed to NADA PAC in 2023! 2023 Issue 4 10 24 WVADA News 4
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
JARED WYRICK PRESIDENT’S MESSAGE A Year of Growth, Collaboration and Advocacy A s we kick off 2024 and have just started the 60-day legislative session that began on January 10th, I am pleased to reflect on the significant milestones we’ve achieved together. This past year has been a year of growth, collaboration and advocacy for the automotive industry in West Virginia. One noteworthy event for our association was the first-ever board retreat held last October at the beautiful Breakers Resort in West Palm Beach. The retreat provided a valuable opportunity for our board members to strategize, plan and strengthen our collective vision for the future. Thank you to all who attended. This past November, WVADA, in collaboration with the Department of Motor Vehicles, hosted six title and registration seminars across the state. These seminars saw the active participation of approximately 400 title clerks, further enhancing their skills and knowledge in the field as we transition to a fully digital titling system. Looking ahead to the upcoming legislative session, WVADA is set to push a franchise bill that addresses several crucial aspects of our industry. This includes clarifying the timeline for manufacturers to dispute motor vehicle dealer requests for adjustments to parts and labor rates and allowing the use of independent manuals or guidelines to determine proper time allowances for warranty recalls or service repairs. Additionally, the proposed bill aims to establish a 15-year period on dealer facilities that applies to any subsequent dealer obtaining ownership. It prohibits manufacturers from amending dealer agreements without the dealer’s consent and ensures manufacturers provide dealers with all makes and models, irrespective of the propulsion method. Furthermore, the bill safeguards dealers from manufacturer interference in pricing, tradein values, financing terms and the pricing of voluntary protection products. It prohibits manufacturers from treating franchised motor vehicle dealers merely as agents, reinforcing the independence and integrity of our members in the sale and lease of motor vehicles. As you can see, this bill is extremely important to franchise rights, and we will need your help and support as we aim to push this forward in the 2024 Legislative Session. Thank you for your support of the West Virginia Auto Dealers Association. Here’s to a successful year behind us and an even more prosperous one ahead. Sincerely, Jared Wyrick WVADA President WVADA News 6
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Thank You Sponsors for a Successful 2023! We couldn’t have done it without you! PRESENTING Protective HEADLINE Capital City Auto Auction • Mountain State Auto Auction • United Bank DIAMOND CHAMPtitles • Pullin, Fowler, Flanagan, Brown & Poe PLATINUM Ally • Capital Automotive • Integrum/ClaimDOC • MetroTech Automotive GOLD Brown & Brown • ComplyAuto • Cox Automotive • CVR • Good News Mountaineer Garage • JM&A Group • Komax • S2 Cyber • Specialty Underwriters Group • True Car • USI SILVER Advanced DMS • Brightline Dealer Advisors • Crystal Clean • DDI • Enterprise • Huntington National Bank • Jackson Kelly, PLLC • Reynolds & Reynolds • Tyler Technologies • WSAZ • Zurich BRONZE ACV Auctions • Carsignment • Dominion DMS • NADA Retirement from Empower • People’s Bank • Tetrick & Bartlett • WCHS • WOWK Nexstar • WVU Medicine Children’s GOLDEN GLOBE SPONSORS Protective OSCAR SPONSORS Capital Automotive • DSI • United Bank EMMY SPONSORS Ally • Champ Titles • ComplyAuto • Integrum • King Cut Rate/CJs • USI GRAMMY SPONSORS Capital City Auto Auction • Huntington Bank • Mountain State Auto Auction • Pullin Fowler Flanagan Brown & Poe • Specialty Underwriters • Truist TONY SPONSORS BakerTilly • Brightline Dealer Advisors • CVR • FORVIS • Heritage Crystal Clean • Jackson Kelly • Milby Group • Suttle & Stalnaker • True Car • WSAZ • Zurich JUNO SPONSORS ACV • DC-America • People’s Bank • Tetrick & Bartlett • WCHS/Fox11 • WOWK CONVENTION SPONSORS GALA SPONSORS 8
1936: Robert Wilson 1937: M. M. Moorehead 1938: H. B. Long 1939: E. B. Hopkins 1940-41: Russell Meredith 1942-44: J. A. Thackston 1945: G. H. Brown 1946-47: Homer Charmichael 1948: Arthur Walker 1949: Richard Chittum 1950: Walter Duncan 1951: A. D. Wolfe 1952: G. C. “Red” Stollings 1953: William Wilson 1954: Paul Layman 1955: Andrew Clark 1956: Bernie Sonderman 1957: A. W. Orndorff 1958: William D. Poland 1959: O. L. Mullin 1960: Harold Hupp 1961: Jack Moses 1962: Joe B. Holland 1963: I. Wilbur Bays 1964: William Simpson 1965: William C. Turnbull, Sr. 1966: George Evans, Jr. 1967: T. A. Galyean, Sr. 1968: James E. Britt 1969: James Thomas 1970: William Robinson 1971: Dutch Miller 1972: Charles Ellison 1973: C. K. Corky Black 1974: C. W. Bill Rechter 1975: George Breckenridge 1976: Luke Gianato 1977: Verner Spohn 1978: Bert Wolfe 1979: Daniel B. Wharton, Sr. 1980: Harry L. Green, Jr. 1981: Ralph E. Hanna, Jr. 1982: Robert “Bob” Robinson 1983: Paul Cole, Jr. 1984: James Pitrolo, Jr. 1985: Larry Smith 1986: Larry LaFon 1987: Jake Rardin 1988: Marvin Ware 1989: Mike Ratz 1990: Alan Chenoweth 1991: James F. Love, III 1992: Bill Forbes 1993: Matt Miller 1994: Robert Urse 1995: Bill Talbott 1996: Ellen Parsons 1997: Robert Moses 1998: Bill Minsker 1999: Richard Stephens 2000: Mike Matheny 2001: Joey Holland 2002-03: Stephen Talbott 2004-05: Jo Marie Pitrolo 2006-07: Chuck Lewis 2008: Barbara Atkins 2009: Wally Thornhill 2010: Harry Green, III 2011-13: Dennis Sheets 2014: Tom Cole 2015: Roberta Robinson Olejasz 2016: Jack Stewart 2017: Joel Goldy 2018: Robin Blankenship 2019: Chris Miller 2020: T.R. Hathaway 2021: Roberta Olejasz 2022: Charles Rashid 2023: JR Toothman WVADA PRESIDENT’S CIRCLE WVADA News 9
2024 TIME Dealer of the Year Nominee: Fredrick “Fred” J. Timbrook F red Timbrook is the 2024 TIME Dealer of the Year nominee for West Virginia. On Feb. 3, 2024, he, along with 49 other dealer nominees from across the country, will be honored at the 107th annual National Automobile Dealers Association (NADA) Show in Las Vegas, Nevada. The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. The award recognizes the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service. “My retail automotive career has given me the opportunity to help others achieve their goals and dreams,” Fred said. “As a result of my success in this business, I have also been able to financially support many causes that improve people’s lives.” Fred graduated from Liberty University in Lynchburg, Virginia, in 1992 with a B.S. in finance. Even though his father, Fredrick, ran a Pontiac and Cadillac dealership in Cumberland, Maryland, where Fred worked as a teenager, he never planned on a career in the auto industry — nor staying in the town where he grew up. “Of course, life can change in a moment, and my dad ended up purchasing the Cumberland store due to the sudden death of the owner when I was a junior in college,” he said. “I joined him after graduating, and my first ‘real job’ was Body Shop Estimator.” He worked his way through every department, developing an in-depth knowledge of dealership operations and gaining the experience necessary to take on a leadership role. In 2001, when he was 31 years old, he bought the business. “My father sold the dealership and the real estate to me — for full price — because he wanted me to experience the responsibility that goes with owning a store,” Fred said. At that time, there were 50 employees. His father was a great mentor who taught by example. “He was very demanding but very rewarding at the same time,” recalled Fred. When asked what lessons his father taught him, he shared: “Never do anything illegal or immoral to make money; you’ve got to make money to be able to give money and work for the job that you want, not the one you have. My father was a great mentor and continued to help me build the company until his retirement in 2017. His sacrifices in the past paved the way for our future.” Fred took his father’s advice to heart, and today, Timbrook Automotive has 14 locations in West Virginia, Maryland, Virginia and Pennsylvania and has 450 employees. “All of our team members, some of whom have been with the company longer than I have, are truly outstanding,” Fred said. “Most of our locations have general managers who are also partners in the store, which has provided me the opportunity to focus on growing the company overall.” Being a member of WVADA is important to Fred. In 2007, he opened two dealerships in West Virginia and immediately after joined the association. “With so many issues facing the industry, the united voice that the association provides is imperative,” Fred stated. He went on to say, “They represent us with legislators. They’re pro-business, pro-dealer and making sure that our franchise laws are protected.”
Giving back and lifting others are two things that come naturally to Fred. One of the contributions to his community is helping to launch CityReach Church in Cumberland, Maryland, along with his wife, Kristin, in 2015. He is currently the Lead Pastor. “As the name implies, CityReach is focused on reaching our community with the life-changing message of Jesus through various types of community outreach events,” he said. To that end, the church prepares and distributes holiday dinner food boxes containing a complete holiday dinner for those in need at Easter, Thanksgiving and Christmas. In addition, they host backpack giveaways, clothing drives and playground cleanups. The One Fest, a recent CityReach event in downtown Cumberland, featured music, children’s activities and an “Everything With Wheels” giveaway of Trek mountain bikes, Honda motorcycles and a Kia Soul. Both Fred and his wife work with the residents at The CityReach Hope Homes. The CityReach Hope Homes consist of two recovery homes, one for men and one for women, and provide nine- to 12-month faith-based resident programs for men and women struggling with addiction. These free programs are designed to help individuals break free from drugs and get back on their feet. “I preach and teach almost every week, and I personally interact with residents of the Hope Homes several times per week,” says Fred. “I have seen men and women go from living on the street — completely addicted to heroin, crack or meth — to becoming productive members of society who know their value and worth. Some have even started a career in the automotive industry and are working for our company.” Fred and his wife have three children. His two daughters, Caroline Rogers and Lauren Timbrook, are the next generation to join the family enterprise. His son, also named Fredrick, is an OBGYN in his third year of residency. WVADA had a chance to talk with Fred about his TIME Dealer of the Year nomination. Here are some insights that he shared: What is the biggest issue facing dealers right now? Interest rates are the biggest issue. They have adversely affected the cost of doing business, from floor planning cars for the dealer to customers dealing with higher payments. I believe we’ve peaked out of where rates are going to go. I believe that there’s not going to be much movement until the third or fourth quarter of next year. It might be 2025 before we really see rates come back to a reasonable level. I’m sure if you asked any car dealer, they would say that EV is an issue, good or bad, regardless of how you feel about it. It’s changed the landscape of the car business. Most manufacturers rushed in and now we’re sitting on an abundance of electric vehicles. On the ground, we have too many days’ supply of them because manufacturers overbuilt them, but it’s a growing segment. There are also issues with customer loyalty to both the dealer and brand. As we’ve come out of the pandemic, inventories have come up some. But at the same time, customers can go online, find the car they want and purchase it. The way we’ve tackled that is that we focus on tying customers to the salesperson to keep them engaged. Do you find it more difficult to conduct business today than when you first became a dealer? I’d say it is 100% more difficult, but I don’t know that it’s worse. It’s a different environment today with a faster pace. Technology allows you to do more in a day than you could 30 years ago. I find I’m more productive on a given day, but at the same time, I find it hard to disconnect from staying up to date. What has been the most rewarding part of your career? I like creating opportunities for people to grow. It’s one thing to grow the company, but for me, it’s so rewarding to bring people along with the company. Not everybody wants to grow; some people have had the same job for 30 years and I love that. But there are people who have career goals; they’re gifted and they have certain abilities. The rewarding part for me is to be able to give them opportunities to make more money, develop better skills and make their family life better. What pieces of advice would you give someone if you were mentoring them? 1. Have priorities. We’re only here for a short period of time. We should do the best we can with the things we’ve been entrusted with and prove to be a good steward of what God has put in our care. I make sure that my employees know their families are important. I encourage them to put family first and to never put a job ahead the most important thing in life. When you have your priorities in line, it makes life better. 2. Be productive. If you get up 30 minutes early every day, it adds three weeks of productivity to your life every year. When people say, “I don’t have enough time in the day,” I say, get up five minutes early, then 10 minutes early, and next thing you know, you have more time than you realize. Maximizing your day is a big thing. 3. I always try to encourage people. You literally can do more than you think you can. It’s important to think big and not limit yourself. I try to stretch people to move to the next level. 4. Giving back is a big deal, whether it’s financially or with your time or whatever. Maybe it’s taking time for yourself to work out, to slow down and think or to rest. All those things are important. I encourage others to focus on doing the basics well and the big things will take care of themselves. 11 WVADA News
TIME 2015 Hal Green 2009 Jo Marie Pitrolo 2021 JR Toothman 2017 Jed Smith 2011 Wally Thornhill 2007 Kyle Hamilton 2019 Steve Moses 2013 Barbara Moses Adkins 2016 Dennis Sheets 2010 Charles Lewis 2022 Ginny Bowden 2023 Chris Miller 2024 Fred Timbrook 2018 John Miller 2012 No Nominee 2008 Paul Stephens 2020 Wally Thornhill 2014 Bill Cole Dealer of the Year Past Nominees WVADA News 12
1979 Andrew Clark 1985 Paul Cole 1991 Clair Chenoweth 1981 Daniel B. Wharton, Sr. 1987 No Nominee 1993 Anthony Pitrolo 1983 Harry Green II 1989 Sam Yanen 1995 James F. Love III 1980 Vern Spohn 1986 Jim Pitrolo 1992 Dan Wharton 1982 Joe B. Holland 1988 James Love III 1994 Mike Ratz 1984 Dick Smith 1990 Marvin Ware 1996 Matt Miller 1997 W. J. “Bill” Talbott 2003 Robert Moses 1999 A. Andrew Earehart 2005 Bill Minsker 2001 George Miller 1998 Ellen M. Parsons 2004 Michael Matheny 2000 Robert Robinson 2006 Larry LaFon 2002 Richard Stephens WVADA News 13
Vienna, WV Wheeling, WV Charleston, WV Wheeling, WV Beckley, WV Martinsburg, WV Bridgeport, WV Thank You to Everyone Who Attended Our DMV Seminars WVADA News 14
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BY THE NUMBERS Corporate Transparency Act YES, IT (MOST LIKELY) APPLIES TO YOU By TASHA SINCLAIR, CPA/ABV, Tetrick & Bartlett, PLLC A s of Jan. 1, 2024, many companies are required to report beneficial ownership information to the U.S. government’s Financial Crimes Enforcement Network (FinCEN) as mandated by the Corporate Transparency Act (CTA). You may be surprised by what entities qualify as a company and what individuals qualify as a beneficial owner. Reporting Companies According to the Small Entity Compliance Guide (fincen.gov/boi/small-entity-compliance-guide), a “reporting company” is any entity that does not qualify for an exemption. A reporting company is either a “domestic reporting company” or a “foreign reporting company.” The CTA exempts 23 specific types of entities from the reporting requirements, but as owners of car dealerships with related entities, many of those entities will not meet the exemption requirements. Think about reinsurance companies and LLCs that own the dealership real estate. Beneficial Owners Once you determine the reporting companies, the next step is determining the beneficial owners. Refer to the Small Entity Compliance Guide for more information, but know that a beneficial owner is defined as any individual who, directly or indirectly, exercises substantial control over the reporting company OR owns or controls at least 25% of the ownership interests of the reporting company. Senior officers such as CEOs and CFOs are beneficial owners. Information to Report Reporting companies will report the following: • Full legal name and any DBAs • U.S. physical address where the company conducts business • State, Tribal or foreign jurisdiction of formation • Taxpayer Identification Number (TIN) or foreign equivalent Submit the following for beneficial owners: • Full legal name • Date of birth • Residential address • Government-issued photo ID details • Image of the ID Filing Deadlines and Penalties for Non‑Compliance Reporting entities formed before Jan. 1, 2024, have until Jan. 1, 2025, to file. Entities formed on or after Jan. 1, 2024, have 90 days from the company’s creation or registration to file. Willful non-compliance may result in civil penalties of up to $500 for each day that the violation continues or criminal penalties, including imprisonment for up to two years and/or a fine of up to $10,000. Conclusion Start preparing now to comply with the Corporate Transparency Act. Read the Small Entity Compliance Guide and consult with your accountant or attorney if you need assistance. Tasha Sinclair, CPA/ABV is a principal of Tetrick & Bartlett, PLLC and has been providing accounting, tax, valuation and consulting services to automobile dealers since 2002. Tetrick & Bartlett, PLLC currently serves over 50 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. Tasha can be reached at tsinclair@tb.cpa or (304) 624-5564. WVADA News 16
2024 WVADA DEALER FAMILY CONVENTION June 2-5, 2024 The Sanctuary Kiawah Island Golf Resort Charleston, South Carolina Scan the QR code to view photos from the 2023 convention. https://wvcar.com/2024-convention/ Save the Date! WVADA News 17
By JOHNNIE BROWN, Esq. A t the writing of this article, I debate whether to wish you a Happy New Year or say that I hope you had a great holiday season. Regardless, I hope your time with your family and friends will be, or was, well spent. In this edition of Counselor’s Corner, I wish to caution everyone about a new legal theory, at least here in West Virginia, that has arisen and also discuss some legal trends my fellow lawyers and I have been seeing over the last six months. Recently, dealers have faced claims based upon the fact pattern that begins when a motor vehicle was originally manufactured for the Canadian market and then legally transferred into the United States. Most of you likely had trouble finding used motor vehicles during COVID, and dealers, including those in West Virginia, purchased Canadian vehicles through auctions in order to replenish supply. Canadian vehicles are perfectly legal to sell in the United States and West Virginia as long as the Canadian motor vehicle has passed required EPA inspections. Otherwise, Canadian motor vehicles are manufactured to meet all safety and other United States standards. It now seems that some dealers, upon trade-in, are arguing that because the trade-in vehicle is a Canadian vehicle, it is a “grey vehicle” and worth less than their United States counterpart. Please do not take my comments as a negative statement towards the trade allowance amount that a willing buyer and willing seller agree upon, but this has caused some legal exposure for the dealerships who initially sell the Canadian vehicles. One argument now being presented is that because these motor vehicles are Canadian “grey vehicles,” a selling dealer should advise the consumer of the potential significant decrease in market value at the later time of trade-in. While this is quite a stretch of a legal theory, nevertheless, dealers are now faced with this particular type of claim. Objectively, models of all motor vehicles vary in how they hold “value.” I do not believe it to be a dealer’s legal duty to advise a consumer on such a detail. On the other hand, there are legal concerns that are real and need to be considered when selling a vehicle originally manufactured for, and sold in, Canada: • Be careful about recalls. Recalls are specific to the country of the vehicle’s origin. For example, a recall on a United States vehicle may not apply to the Canadian vehicle and vice versa. Also, can an open recall on a Canadian vehicle be repaired here in the United States, and a dealer receives manufacturer warranty payment? These are issues that have arisen in recent litigation. • A dealer should consider whether the manufacturer’s warranty coverage applies to a Canadian vehicle that has been transferred to the United States. This varies and is dependent upon the manufacturer. I encourage you to do your due diligence on this point before representing that the used motor vehicle has any remaining COUNSELOR’S CORNER WVADA News 18
manufacturer’s warranty when a Canadian vehicle. This will impact how you complete the FTC Used Car Buyer’s Guide. • Be concerned that a service contract provider may or may not provide coverage for the Canadian vehicle or that parts may be unavailable, potentially giving the buyer a breach of contract or a breach of warranty claim against a motor vehicle dealer. • I have also seen issues arise about dealer-provided warranties placed upon used motor vehicles, i.e., the powertrain warranty that is commonly available these days, and whether those provide coverage for a Canadian vehicle. Situations may arise in which a claim is made on a Canadian vehicle under the dealer’s provided service contract or warranty, and it may not provide the coverage that the customer purchased or that the dealer may have mistakenly represented to the consumer solely because the motor vehicle was originally built for and sold initially in Canada. Interestingly, I have learned of class actions that have arisen both in Ohio and Indiana over Canadian vehicles. These class actions contain allegations of the types of legal claims discussed. Please understand I am not suggesting that Canadian vehicles are not valuable, marketable and not legal to sell in the state of West Virginia. I believe they are quite legal to sell. However, a dealer needs to clarify whether the voluntary protection products we sell are applicable to Canadian vehicles. I encourage our dealers to ensure that the Canadian motor vehicle can be covered as if they were a United Statesmanufactured vehicle. Over my 36 years of the practice of law, I’ve observed that litigation increases as the strength of the economy decreases. I believe we are in one of those cycles. Unfortunately, consumer default and late payments are on the rise with automobile purchases. The dealer is facing legal challenges based upon allegations of misrepresentation or failure to properly disclose the purchase of voluntary protection products. It is also common to face claims that consumer incomes are overinflated. Now is the time to check your transactional paperwork and F&I procedures. On the lending side, lenders are becoming stricter and demanding that the dealer assume the note and refund the loan proceeds when there is consumer litigation. This is based upon incorrect vehicle features or options represented to the lender or any consumer allegation against the lender. Frequently now, the consumer is placing the lender and dealer at odds and creating a litigation advantage. We have seen a significant increase in consumer claims. More specifically, we are seeing more lawsuits that were initially lender instituted against an alleged defaulting consumer. The consumer then sues the dealer over some alleged misrepresentation which then puts the dealer at odds with the lender. I advise you of this trend and, again, encourage you to evaluate your consumer compliance practices. For the last year, dealers have been extremely focused on compliance with the new regulations governing the privacy of consumer information. However, this does not equate to proper compliance with the sale of a motor vehicle and any voluntary protection products. It is becoming imperative that dealers emphasize proper training and certification, if needed, and stress an audit process for compliance quality control. Compliance can be accomplished in many ways and can be flexible based upon the size and scope of a dealership’s operations. You may have a DMS provider who can provide the training for you, or perhaps there are vendors related to your voluntary protection products who can train on compliance. The key is consistency and establishing procedures to ensure that things are disclosed and recorded properly. Please work with knowledgeable counsel to make sure that your internal compliance program or your third-party-provided compliance program is sufficiently detailed and entails a quality control element. Of course, as General Counsel for the West Virginia Automobile Dealer Association, the Association and I are always available to assist you with these questions and prepare you for a more challenging consumer environment and a hostile regulatory scheme. Is your business in the dark? ADVERTISE IN THIS MAGAZINE AND SHINE A LIGHT ON YOUR COMPANY. QR Code: website /ad-space CONTACT US TO LEARN MORE. 801.676.9722 • 855.747.4003 sales@thenewslinkgroup.com WVADA News 19
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C harlotte Pyle was inducted into the National Auto Auction Association’s Hall of Fame and received the Ed Bobit Industry Icon Award during the 2023 NAAA World Remarketing Convention in Chicago. The NAAA Hall of Fame, established in 1968, recognizes individuals whose long-term service to the auto auction industry and NAAA has contributed improvements to remarketing, and who have worked with the trade organization to benefit its members and have consistently followed the high standards of the association’s Code of Ethics. NAAA represents more than 340 auction members and 140 associate members in North America. NAAA and the International Automotive Remarketers Alliance jointly created the annual Ed Bobit Industry Icon Award in 2015 for members of the automotive industry who most exemplify his leadership, dedication, service and devotion to excellence. Charlotte Pyle is the 10th recipient of the Ed Bobit Industry Icon Award and is the first woman to receive the award. Pyle and her husband Joe, owners of Mountain State and Capital City Auto Auctions in West Virginia, have been part of the auction business since 1987. She is a past president of NAAA, and a member of NAAA’s Executive, Legislative, Membership and Governance committees. She also serves as NAAA’s Southern Chapter secretary/treasurer and has been co-chair of the Independent Auction Group for more than two decades. In addition to being an auction owner, Pyle is a licensed real estate agent and broker, and a licensed auctioneer. In 2016, she earned the prestigious Certified Auctioneer Institute designation. Most recently, Pyle and her team at Capital City Auto Auction hosted the World Automobile Auctioneers Championship in May — the inaugural WAAC under NAAA ownership. Charlotte Pyle Inducted Into Hall of Fame WVADA News 21
D elivering a superior service experience is the goal of every business. To achieve this goal, dealers must build a service experience that is both efficient and friendly. Achieving this balance can be difficult, but with the help of some fantastic technology, it’s not impossible. In this article, we will explore the steps necessary to create a consumer-friendly service experience that is also efficient. The Check-in Process The check-in process is a crucial part of the overall customer service experience. It sets the tone for the entire service experience. As such, it is essential to get it right to deliver a truly consumerfriendly experience. By looking at other industries with check-in processes, we can learn from their operations and apply them to our own. How to Build a Consumer-Friendly Service Experience That Is Efficient By SHARON KITZMAN, Dominion DMS My veterinarian reminds me of my appointment more frequently and in a fun and friendly way (think texts with dog emojis) than the appointments I have booked online for my car. The emojis might seem childish, but it makes me smile when I see the text, and I open the text to read the whole reminder. My dealership could do better with the appointment reminder process or the linkage between what I have already filled out online and the questions I am re-asked when I get into the service lane. This level of accessible customer service keeps me coming back. Similarly, the automotive industry could take a cue from the airlines and ensure they check in customers as quickly as possible. I know what you are thinking. Really, the airline industry? But take yourself back 10 years before the kiosks and bag drop, when everyone waited for a live person to help them. I remember my first kiosk experience with Delta, thinking, “This is never going to stick,” but now it is the rule, not the exception. The airlines invested in consumer apps to smooth processes and satisfy the desire for self-service. They also changed their operations, funneling the travelers to the kiosks the minute they walked in the door with a greeter. The key is providing an excellent check-in process, where your consumer can selfservice the things that make sense, and your advisors use the data supplied by that consumer to check in quickly and efficiently. Waiting and standing in line is rarely an enjoyable experience and not one that consumers want to repeat. However, by providing a simple, efficient and friendly check-in process, you can start your service experience on a positive note. The Waiting Area One of the essential parts of creating a consumer-friendly service experience is ensuring your waiting area is as inviting and efficient as possible. There are consulting WVADA News 22
companies that do this full-time for the medical industry. For example, having a quiet, safe and clean environment is essential. Even something as simple as comfortable chairs, bottled water and snacks can make a world of difference. Complimentary Wi-Fi is always appreciated to allow your customers to stay connected with their busy lives. Additionally, providing timely information about what is going on with their vehicle and pushing video content to the consumer’s device can keep them in the waiting area and not coming back to the drive to ask additional questions. Consider giving customers the option to upgrade additional repairs while they wait. A big plate glass window for added transparency will reassure the customer about the work being completed on their vehicle, avoiding questions regarding the services. Having a comfortable and productive waiting area will help ensure customers have a friendly automotive service experience. Overcommunicate Clear communication with consumers is critical to providing a friendly service experience. Technology can be used to streamline the process, as well as provide transparency throughout the duration of the service. A communication system that keeps customers informed throughout the process should be a priority. From the time of check-in, customers should be given an estimate that makes them aware of the approximate time and cost of their services. The estimate should list all the suggested services and the rough cost for completing each service. Upon the customer’s review and agreement, the customer will sign the document, ensuring there are no surprises once everything has been completed. Prices should never be a surprise, so communicating with the customer is vital for transparency. Plenty of research shows most consumers prefer text as the best way to reach them because it allows for concise yet detailed updates that won’t take too much of the consumer’s time. Through the use of text updates, customers will have the ability to stay on top of their service and make any necessary changes that they may require. I have witnessed certain regionally based demographic tendencies — think South Florida — where text is not always best. You know your client base! Transparency is also vital to providing a consumer-friendly service experience. It is essential to allow customers to view updates to their service or inform them of any changes that could impact the service’s completion. Good news can be delivered autonomously, as it won’t require any action from the customer. Bad news should always be delivered in person so that the customer can fully understand and respond to the issue. Finish Strong Completing the service experience in a consumer-friendly way is just as important as the beginning of the process. Ensure that the bill does not surprise the consumer and take payment their way. Offer payment options such as online, in an app, through SMS or at the cashier station. Use technology to allow the technician to show and tell what repairs were made to the vehicle and ensure the consumer knows what was done and why it was necessary. The client that brought the car in for service may have a partner, not with them, who wants to understand what repairs were made. Lastly, follow up with the consumer one to two days after completing the service to ensure there are no lingering concerns. Following these steps will ensure consumers have a friendly and satisfactory service experience. Sharon Kitzman leads the launch and long-term growth of Dominion DMS. Previously, she managed the strategic direction and product development for Reynolds & Reynolds and Dealertrack. Her experience spans every area of dealership software development, including sales, marketing, product lifecycle management, process re-engineering, OEM management, professional services, and customer services. Kitzman is a recognized leader in the automotive industry for her expertise in DMS technology. She received numerous accolades for her leadership, including Automotive News Top 100 Leading Women 2015 and 2020, Auto Remarketing Women in Retail 2021, and AutoSuccess Women at the Wheel 2021. She has a Bachelor of Business Administration from Ohio State University. Listen to our VUE Points podcast to stay up to date with news and current events related to the automotive software and retail industry. https://www.dominiondms.com/podcasts/ 23 WVADA News
6 Drivers To Keep Your Dealership’s Team Engaged in Times of Change By Don Geletko and Jeremy Spidell, Truist Leadership Institute. Brought to you by Truist Dealer Services. T he Truist Leadership Institute has dedicated more than a decade to researching and measuring the effect of engagement on workplace performance. Don Geletko, Senior Leadership and Business Advisor, and Jeremy Spidell, Director of Client Engagement at Truist Leadership Institute, share how building a more engaged workforce is especially important when conditions in the industry and overall economy are changing. Automotive dealers are experiencing changes and challenges on many fronts. On the labor front, record-high numbers of workers have quit their jobs in recent years in search of better opportunities, better pay and better benefits. Dealerships need to continue attracting and retaining talented workers while providing them with the technical and management skills they need to succeed. The industry’s shift toward digital buying and the continued expansion to electric vehicles only add to the new skillsets that dealers will require in the future. In this challenging environment, it’s more important than ever that dealers focus on recruiting quality candidates, retaining key performers and developing workers’ talents. Building engagement with your employees and their teams is a key element in making this effort a success. What Makes Engagement So Important? Research shows that engaged employees are dedicated, enthusiastic, immersed, passionate and proactive. And when it comes to working hard, they go above and beyond. Plus engaged workers are often more resilient and respond better to the stress of change, whether in the workplace or in the world beyond. Top dealership groups outperform on engagement.1 % receiving positive responses from employees Employer practice and policy All dealerships that made the Best Dealerships to Work For list All dealerships not on the list Leadership 99% 90% Corporate culture and communications 99% 89% Role Satisfaction 99% 92% Work environment 99% 91% Relationship with supervisor 99% 93% Training, development, and resources 99% 89% Pay and benefits 97% 83% Overall engagement 99% 91% Survey average 99% 90% WVADA News 24
Engagement doesn’t just happen. It is usually the result of an intentional strategy. Dealers can raise workers’ engagement levels by focusing on the six drivers of engagement: • Connectedness • Importance • Control • Competence • Clarity • Fairness While each driver has its role, they’re all interrelated and additive — getting the engagement you want comes from working on all six in concert. Learn more about each one and the actions you can take to keep your dealership team engaged. 1. Connectedness: “I belong.” Connected employees know they are part of a team. They trust the people they work with and feel supported by managers and company leadership. Their managers value their abilities, strive to provide what’s needed to grow and develop their skills and trust them to successfully perform their jobs. Research shows that employees’ perception of a company’s executive leadership has roughly the same impact on engagement as their perception of an immediate manager. As a leader, staying connected means listening and being tuned in to what workers need while providing clear guidance on their job goals and honest feedback on their performance. Action: Stay visible to employees through meetings, social gatherings, email and dealership visits. Make a point of connecting with employees even when there’s nothing new to report. 2. Importance: “My work is meaningful.” Employees who find meaning in their work are more engaged. They understand how their job has a positive impact on people’s lives, and they can see where their contributions support your dealership’s goals and purpose. The sales you make and the service your dealership provides allow your customers access to the fundamental need of transportation — getting people to work, helping them get their kids to school, enabling them to go shopping and providing a means for people to socialize. For many dealerships, this is the core component of their purpose, the core reason for being and the source of their positive impact on the world. One southeast dealer regularly reminds his team, “We’re not just selling someone a car. We’re actually helping improve how they live.” Engaged employees find merit in the work they do and look to align their work values with their personal values. Demonstrating your business’s purpose and framing the way your dealership does business in terms of its meaning to your community allows employees to see your values in action and embrace them. Action: Elevate your dealership’s purpose and its goals. Make them visible and communicate them often through internal meetings and informal one-on-one discussions and externally in social media, in the press and in your marketing and online presence. WVADA News 25
3. Control: “I have a choice.” Engaged employees need the right amount of control and autonomy to understand the work that needs to be done, have the independence to do it the way they see fit, and have the responsibility to do it correctly. Control that leads to success builds confident employees who can take on more, including charting their career path to places they feel most comfortable going and where they can excel. For managers, the trick is to find the right amount of control that each person needs and seek each employee’s input on decisions that affect them. Employees who have more control tend to be more open about any obstacles they’re facing and that leaves them more willing to come up with solutions rather than waiting to be told what to do. And when it comes to team settings, employees who feel they have more control over their work can perform with less contention over job boundaries and roles. Action: Match the right person to the right job, give them control to perform and set clear expectations for success and accountability. 4. Competence: “I am capable. I am the right person for the job.” Engaged employees should be well-suited for the job they are assigned and have the skills and talents needed to meet challenges and complete their work. Carefully matching workers to the right jobs helps them get satisfaction from doing what they do best. Be clear about opportunities for growth and skill development and give employees input into crafting their job. Could the job be better structured to align with their strengths? Are there strategies to move the job in that direction? Managers with a growth mindset understand that mistakes happen when trying something new, and they let employees learn and grow from those missteps. That may often mean reframing mistakes as challenges to be overcome and growth opportunities to be gained. Action: Excellence at matching worker talents with task requirements should be a core skill for you and your management team. Make learning and employee growth a priority. 5. Clarity: “I know where I stand.” Engaged employees know the “why” behind decisions made and understand the contributions they must make to help the team reach its goals. This is especially important in unsettled times, when workers may wonder if they’ll still have a job and are struggling to see the big picture. Leadership and managers who communicate honestly and regularly about the challenges the business is facing and how the dealership plans to adapt and respond can reduce uncertainty and resulting anxiety. If there’s nothing new to report, say that, and let your staff know that when there’s news, they’ll hear it from you first. You can use the time to ask for ideas and solutions from your workforce. You may come up with solid input from employees who know your business and see things you don’t. Plus, you’ll show them you’re listening and reinforce the value they bring in helping your dealership devise answers and succeed. Employees will feel a measure of control, even when conditions are unsettled. Action: Communicate clearly and honestly about the challenges your business faces and your plans to address them. Solicit input from employees who know the business and are dedicated — like you — to its success. 6. Fairness: “I am treated with respect.” Employees feel respected when the workload is evenly distributed and their work is compensated fairly, yet there can often be different perceptions among leaders, managers, employees, and their peers about whether those two conditions are met. Discussions around assignments and compensation can be some of the trickiest to conduct, and confrontation-adverse leaders who shy away from these communications usually find that issues fester and grow. Managers who are attentive to balanced assignments and appropriate pay stay ahead of situations by informing employees about why decisions were made and when — or if — they expect things to change. If there’s a path to increase employee pay with greater contributions to the business, help them understand what they need to do and when they can expect to be rewarded. Action: Pay close attention to work/pay alignment and communicate about it openly, broadly and frequently. Truist Bank, Member FDIC. ©2023 Truist Financial Corporation. Equal Housing Lender. Ready to start your journey to greater organizational engagement? There are many elements to increasing engagement. The Truist Leadership Institute team can help you identify where you are in the journey, accurately measure the gaps that you can address, and advise you on actions to take to develop a highly engaged workforce. 1. Moore, C.J., The pandemic exposed what dealership employees value, Automotive News, October 17, 2022. WVADA News 26
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