f&i and showroom september 2011

SEPTEMBER 2011 $10.00

SASALELES S DRDRIVIVERER:: GGAMAME-E-CHCHANANGEGERSRS || ZIZIEGEGLELER:R: P PROROFIFIT T HAHAPPPPENENSS || MAMAD D MAMARVRV:: BBACACK-K-ENEND D BUBULLLLYIYINGNG

A BOBIT PUBLICATION FI-MAGAZINE.COM

SOCIAL MEDIACLAIMS FIRST VICTIMS

ENTROPY KILLSHOW TO REBOOTYOUR F&I PITCH

ROBERT BASSAM’SSURVIVAL STORY

E-CONTRACTINGBITES THE BULLET

SHOWDOWNTHE 5-MINUTETHE 5 MINUTEINTERVIEW STOP

Piecing Together your Aftermarket Product Portfolio.

See our ads on page 3 & 45 for more details

IAS offers competitively priced, best-in-class F&I products and software - all fully insured and eligible for reinsurance.

See all that IAS has to offer at the F&I Industry Summit Booth #119 and find out how you could win an iPad2 or Motorola Xoom!

FI0911ias_bb.indd 1 8/26/11 1:58:56 PM

FI_ias_bellyband.indd 1FI_ias_bellyband.indd 1 9/15/11 10:52:19 AM9/15/11 10:52:19 AM

blackpage.indd 1 8/30/11 12:37:21 PM

© 2011 Innovative Aftermarket Systems L.P. All Rights Reserved.

F&I Software:IAS also offers world-class technology

solutions that create a sensible and pro table turn- ey approach to F&I.

FI0911ias_bb.indd 1 8/26/11 1:58:56 PM

Get in touch with IAS.

Contact IAS Sales at 800-346-6469 x8989 or www.iasdirect.com for more information.

F&I Products:IAS offers the highest-quality F&I products in the industry and bac s them up with the nest quality administration

and claims that exceed industry standards.

FI0911ias_bb.indd 1 8/26/11 1:58:56 PM

FI_ias_bellyband.indd 2FI_ias_bellyband.indd 2 9/15/11 10:52:21 AM9/15/11 10:52:21 AM

http://www.iasdirect.com

cvr hed boldcvr hed

cvr hed boldcvr hed

cvr hed boldcvr hed

SEPTEMBER 2011 $10.00

SALES DRIVER: GAME-CHANGERS | ZIEGLER: PROFIT HAPPENS | MAD MARV: BACK-END BULLYING

A BOBIT PUBLICATION FI-MAGAZINE.COM

SOCIAL MEDIACLAIMS FIRST VICTIMS

ENTROPY KILLSHOW TO REBOOT YOUR F&I PITCH

DIE HARDROBERT BASSAM’S SURVIVAL STORY

E-CONTRACTINGBITES THE BULLET

SHOWDOWNTHE 5-MINUTE INTERVIEW

FI0911cover.indd 991FI0911cover.indd 991 8/26/11 9:55:45 AM8/26/11 9:55:45 AM

The PROFITABLE Yet SAFE Solution for F&I

The PROFITABLE Yet SAFE Solution for F&I

Find out for yourself how we put the “service” in service contracts.

• More than $210 million distributed to dealers in participation programs.• More awards as the industry’s top service contract provider.• More than $1 billion paid for customers’ repairs.• More than $55 billion in assets held by our parent company.• More than 29 years of fast and fair claims settlement.• More superior service from experienced local agents.

800-345-0191, Extension 7204150 N. Drinkwater Boulevard, Scottsdale, AZ 85251www.cnanational.com

• Service Contracts • GAP • Preferred Tire CareSM • Online Rating and e-Contracting • F&I Training

FI0911cna.indd 1 8/18/11 8:22:41 AMFI0911reahard.indd 1 8/25/11 11:20:10 AM

FI0911cover.indd 992FI0911cover.indd 992 8/25/11 4:07:34 PM8/25/11 4:07:34 PM

http://www.cnanational.com

FI0911cna.indd 1 8/18/11 8:22:41 AMFI0911reahard.indd 1 8/25/11 11:20:10 AM


Contents

2 F&I and Showroom September 2011

September 2011 Volume 14, Issue 9

Dealer Profi le

14 Down But Not OutAfter 20 years of steady growth, Easterns Automotive founder Robert Bassam nearly lost it all. Learn how old friends and a new business model put his operation back on track.

Compliance

20 4 Social Media Pitfalls to AvoidSocial media offers great opportunities to market your store, but there are several legal traps inherent to this type of viral marketing.

Finance and Insurance

26 4 Ways to Reenergize Your PitchHave you ever wondered why your performance levels lag? F&I expert offers a remedy for keeping you on your game.


30 The InterviewA fi ve-minute interview can go a long way toward putting customers at ease, and it may even lead to a nice boost in F&I profi t per vehicle retailed.

Technology

34 E-Contracting’s Missing LinkIntegration has been one of the obstacles in the way of the industry’s push toward e-contracting. One technology expert says that will no longer be the case going forward, especially for product providers.

4 Letters

6 Editorial

8 Developments

12 Industry Trends

38 Sales Driver

40 On the Point

42 Legal

44 Bottomliners

47 Ad Index

48 Mad Marv

Departments

Features

F&I and Showroom (ISSN 2154-1728) (USPS 018-706) (CDN IPM# 40013413) is published monthly, by Bobit Business Media, 3520 Challenger Street, Torrance, California 90503-1640. Periodicals Postage Paid at Torrance, California 90503-9998 and additional mailing offi ces. POSTMASTER: Send address changes to F&I and Showroom, P.O. Box 1068 Skokie, IL 60076-8068. Please allow six to eight weeks for address changes to take effect. Subscription Prices: United States $20 per year; Canada $35 per year; Foreign: $35 per year. Single copy price: $10; Fact Book: $30. Please allow six to eight weeks to receive your fi rst issue. Bobit Business Media reserves the right to refuse nonqualifi ed subscriptions. Please address editorial and advertising correspondence to the executive offi ces at 3520 Challenger Street, Torrance, California 90503-1640. The contents of this publication June not be reproduced either in whole or in part without the consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission.

14

20

26

34

Endorsed as the offi cial publication of the Association of Finance

& Insurance Professionals

COVER PHOTO BY PHOTOGRAPHY BY SUSIE

FI0911toc.indd 2FI0911toc.indd 2 8/26/11 9:25:31 AM8/26/11 9:25:31 AM


Contact IAS Sales at 800-346-6469 x8989

or www.iasdirect.com for more information.

SmartPad software runs on the world’s most popular tablets, including the

Apple iPad, most Google Android tablets and the Blackberry Playbook.

IAS’ SMARTPAD TABLET-BASED

TECHNOLOGY IMPROVING SALES

IN DEALERSHIPS NATIONWIDE

IAS F&I PERSPECTIVEwww.iasdirect.com WE’VE GOT IT ALL RIGHT HERE SEPTEMBER 2011

SmartPad shortens the

F&I process and creates sales

opportunities by utilizing an

electronic tablet to gather and

present a customizable array of

information while the customer

is preparing to be transitioned

from sales to F&I.

“SmartPad is a fantastic tool

that provides me information

about my customers which

ultimately saves everyone time,

increases F&I penetration

and produces an overall

PRUH� VDWLV¿HG� FXVWRPHU�´�

said Lindsay Ferrell of Byers

Automotive. “As a dealer, it’s

a huge bonus to be able to

go into my F&I presentation

dealing with happy customers

and ones that I already know

something about so I can tailor

my presentation and, in the end,

LQFUHDVH�),�SHQHWUDWLRQ�´

SmartPad can dynamically

conduct the F&I interview and

electronically deliver results to

managers while the customer

waits to enter F&I. Alerts can

notify the general manager,

or other designee, via text or

email, that a negative situation

has occurred and should be

addressed immediately before

the sale is lost or irreversibly

damaged.

“SmartPad has given our

agency a renewed energy to call

on dealerships and offer key

management the opportunity

to ask survey questions of

their customers before being

WXUQHG� RYHU� WR� ),�´� VDLG�

Frank Phillips of Dealer

Consulting Services, Inc.

in Santa Maria, California.

“In these challenging

WLPHV�� SUR¿WV� DQG� FXVWRPHU�

satisfaction are all time high

priorities for dealerships.

SmartPad affords the dealers

the insight into the customers’

driving habits and alerts them

to ownership risks which

in turn increase F&I sales

penetration. The beauty of this

software is that the dealership

gains this knowledge prior to

F&I involvement in real time.

I N N O V A T I V E A F T E R M A R K E T S Y S T E M S

It gives the F&I manager time to formulate

an approach to maximize sales product

penetrations and if the customer isn’t

FRPSOHWHO\� VDWLV¿HG� ZLWK� WKHLU� H[SHULHQFH��

the dealership is alerted in time to correct

it and turn a negative situation into a

positive one before they drive off to show

HYHU\RQH�WKHLU�QHZ�YHKLFOH�´

See all that IAS has to offer at the F&I Industry Summit Booth #119 CPF�ſPF�QWV�JQY�[QW�EQWNF�YKP�CP�

iPad2 or Motorola Xoom!

If you’re not using tablet-based technology at your

dealership, you’re leaving money on the table.

FI0911toc.indd 3FI0911toc.indd 3 8/26/11 9:25:35 AM8/26/11 9:25:35 AM



Letters

In With the NewTO JIM ZIEGLER: I left the car business

just over a year ago, but I’ve learned

a great deal from you over the years,

and I wanted to thank you for that.

My 15 years in the car business was

a wild ride, so thanks for giving me a

safety belt — and some high-octane

gas. Best of luck to you in the future

and in your new column for F&I and Showroom.

Steve BissenLa Crescent, Minn.

Don’t Let the Customer ‘Walk’TO GERRY GOULD: Your July 2011 ar-

ticle (“Take A Walk,” Page 34) rec-

ommends that we walk our custom-

ers through the service department,

as well as parts. Shouldn’t this be a

walk to build a value in the dealer-

ship rather than selling a VSC? If I

was a salesman, I wouldn’t appreci-

ate an F&I manager focusing on the

fact that the vehicle my customer is

about to purchase will eventually end

up in the service drive.

Paul BednarzInternational Imports LLC

Tinley Park, Ill.

Paul, you make a good point. We certainly do not want to devalue or create any doubt in the customer’s mind. The service walk is not the walk of doom. When you approach it the way I described in the article, it energizes the sales process. It gives the customer a sense of convenience, confi dence and security in knowing that the dealership is ready for them, whether for routine maintenance or

those unexpected perils of owner-ship they may face down the road. — Gerry Gould

Practical AdviceTO MAD MARV: Having been around

the business for 22 years, I thought

your July column (“It Takes Two,”

Page 37) was spot on. So many

times a dealer will try to shave dol-

lars from the pay plan because it’s

“too rich.” The dealer ends up los-

ing an outstanding employee and,

worse yet, profi t per vehicle retailed

sinks like the Titanic. Keep up the

great work.

Mark F. AnthonyEquity 4 U

Golden Valley, Minn.

TO MAD MARV: Your column last

month, “Call on ‘Line 5’” (Page 52),

was dead on. The only thing missing,

in my opinion, is building a personal

relationship with a lender to add the

products when an exception is need-

ed. It has saved me several times at

month end. Again, Marv, great col-

umn. I really enjoy reading your page

every month.

Steven Ellis via e-mail

Don’t Train, Won’t GainTO CORY MOSLEY: I appreciate the

new-school ideas you share in your

column each month, and I’m a big

fan of training as well. If anyone in

this industry doesn’t believe in train-

ing, they’re in the wrong business. A

perfect example is the fact that some

veteran salespeople can’t produce

more than eight or 10 cars a month

and think it’s OK to stick to their old-

school way of thinking. Same goes

for F&I managers who can’t move

their middles or maximize their

gross. Thanks for the useful advice

each month.

Faith MbaBusiness Manager

Toyota of Greenfi eld and

Ford of Greenfi eld (Mass.)


Vice President Group Publisher, AutoGroup

Sherb Brown

Publisher, Dealer GroupNational Sales Manager

David Gesualdo727-947-4027

[email protected]

Executive EditorGregory Arroyo

[email protected]

Managing Editor / Art DirectorTariq Kamal

[email protected]

Assistant EditorJennifer Washington

[email protected]

Great Lakes Sales ManagerRobert Brown Jr.

[email protected]

Sales & Marketing CoordinatorTracey Tremblay

E-Media and Print Production Manager

Brian Peach310-533-2548

[email protected]

Web ManagerSam Kim

[email protected]

Audience Marketing ManagerTony Napoleone

Chairman Edward J. Bobit

President & CEOTy F. Bobit

Chief Financial Offi cerRichard E. Johnson

Business and Editorial Offi ceBobit Business Media3520 Challenger St.Torrance, CA 90503

Phone: 310-533-2400Fax: 310-533-2503

Change Service RequestedReturn Address:

Bobit Business MediaPO Box 2703

Torrance, CA 90509

Subscription Inquiries888-239-2455

[email protected]

Printed in U.S.A.

If I was a salesman, I wouldn’t appreciate

an F&I manager focusing on the fact that the

vehicle my customer is about to purchase will eventually end up in

the service drive.

FI0911letters.indd 4FI0911letters.indd 4 8/26/11 9:23:08 AM8/26/11 9:23:08 AM

mailto:[email protected]








Vehicle Service Contracts I GAP Coverage I Credit Insurance

Lifetime Engine Warranty I Limited Warranty I Dealer Participation Programs

F&I Training I Advanced F&I Technology

866.922.0672www.protectiveassetprotection.com

A “National Corporate Partner” has met stringent NIADA criteria demonstrating that it can provide valuable products and services to NIADA members. No legal partnership has been created by the granting of this status, but NIADA does receive compensation from Protective. Lifetime Engine Warranty, Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VSCs are backed by Old Republic Insurance Company. GAP and

Lifetime Engine Warranty are not available in NY. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.

We Listen • We Care • We Have Solutions

The Service Contract Provider Diamond Award Winner

2011 Dealers’ Choice AwardsBy Auto Dealer Monthly

Are you ready to work with an industry leader?

Serving Automotive Dealers Since 1962

Call us today to find

out how our service

contracts can increase

your dealer profits and

customer satisfaction.

FI0911letters.indd 5FI0911letters.indd 5 8/26/11 9:23:09 AM8/26/11 9:23:09 AM

http://www.protectiveassetprotection.com


Rising to defend the industry in the pages of Newsweek, the editor learns that it’s not always easy to explain what goes on in the F&I offi ce. By Gregory Arroyo

T he e-mail arrived at 12:36 p.m.

on Tuesday, July 26. It was

from Gary Rivlin, staff writer

for Newsweek. It read: “I’d love to

talk with you about a piece that has

me getting into the world of dealer-

arranged auto fi nancing.”

My fi rst thought was that nothing

good could come of my participation.

But, as an F&I advocate, I felt com-

pelled to defend our business if that’s

what was needed. I asked Rivlin if he

could tell me what his angle was.

“We’re doing a consumer-oriented

package: things to watch out for,” he

replied. He then quoted a stat from a

report issued by the Center for Re-

sponsible Lending (CRL). The orga-

nization’s numbers appeared to show

that, in 2009, dealers used rate mark-

ups to overcharge consumers to the

tune of $26 billion.

And there it was: our old nemesis,

the dealer hit piece. The same hit

piece, in fact, that I wrote about in

May. If that was the basis for Rivlin’s

article, I couldn’t help myself.

“Be careful of that $26 billion,” I

wrote. “Although I’m supposed to be

an industry advocate, the consumer

in me questions some of the data

coming out of the CRL recently.”

We agreed to talk the next day. I

took the evening to work on some

talking points. I started by checking

a thread on our F&I Forum that we

started last year in response to an-

other dealers-are-at-it-again article.

I asked forum members for tips they

would provide consumers.

“Learn basic math,” one member

wrote. “$300 per month x 60 months

does not equal $35,000.”

Armed with that gem and a few

others, I called Rivlin the next morn-

ing. We started our conversation with

the CRL’s $26 billion claim. I told

him that the problem with that stat

— and the entire report — is that the

CRL assumes that consumers have

access to the same rates that indirect

lenders provide to dealers, which, as

we all know, is not the case.

I also told Rivlin that dealers work

under a minimum of 15 state and

federal regulations on every deal. In

case he thought I was drinking di-

rectly from the industry’s Kool-Aid

bowl, I added that consumers should

shop their rate and make the F&I of-

fi ce fi ght for their business.

I also told him that, even in Cali-

fornia, lawmakers didn’t ban mark-

ups when they passed the Car Buyer’s

Bill of Rights last decade. Yes, they

set limits on markups, but they also

recognized why dealers charge for

the services they provide consumers.

It was clear Rivlin had done his

homework, too. He quoted an article

published in this magazine back in

2006. It offered advice on how F&I

managers can achieve an average

$1,500 in profi t per retail unit (PRU).

Rivlin wanted to know how much of

that would come from rate markup.

I fi rst explained that $1,500 was a

lofty goal and that most dealerships

are in the $600 to $800 PRU range.

I added that $1,000 PRU was a more

realistic goal.

Rivlin then asked about warran-

ties, prompting me to clarify the dif-

ference between a warranty and a

service contract. He asked about the

product that put the “I” in F&I, then

asked whether it was a good product.

I told him credit insurance was, since

most consumers are underinsured.

He then asked if paint protection

was an insurance product. “Isn’t it

just glorifi ed Turtle wax?” he asked.

Not only is that not a true statement,

I explained, but what consumers are

really getting is a service contract

that says certain benefi ts kick in if

the product fails. Turtle wax, I told

him, makes no such offer.

We covered a lot of ground, and I

felt like I had represented the indus-

try well. … That is, until Rivlin said

he wanted to quote me on that $1,000

goal. Oh, boy. I asked if I could break

down how that number is achieved in

an e-mail, and he agreed. Truthfully,

I was stalling. I wanted to run my

claim by buddy, Mad Marv.

I called Marv the second I hung up

with Rivlin and explained the situ-

ation. We talked for about 20 min-

utes, and his advice helped craft my

response. I don’t have enough room

on this page to share with you what I

wrote, but that’s OK. My response is

not the point of this editorial.

The point is to tell you that it is

sometimes diffi cult to defend what we

do. But I guess I’m tired of our indus-

try having to live in the shadows. The

day is coming when we’ll be forced

out into the open, so let’s make sure

we know our talking points.

What’s My ‘Buy Rate’?

Letter From the Editor

It is sometimes diffi cult to defend what we do. But I guess I’m tired of

our industry having to live in the shadows. The day is coming when we’ll be

forced out into the open.

FI0911editor.indd 6FI0911editor.indd 6 8/26/11 9:51:34 AM8/26/11 9:51:34 AM

.BYJNJ[F�ZPVS�QSPGJUT�XJUI�/"$ �UIF�MFBEFS�JO�TBMFT�BOE�BENJOJTUSBUJPO�PG�NBSLFU�SFBEZ�WFIJDMF�TFSWJDF�DPOUSBDUT�BOE�NPSF�

"SF�ZPVS�TBMFT�FGGPSUT�'"--*/(�4)035�CFDBVTF�PG�TVC�QBS�'0--08�5)306()�

CZ�ZPVS�DVSSFOU�74$�QSPWJEFS

TM

.BLJOH�0VSTFMWFT�7BMVBCMF��UP�:06�&WFSZEBZ�SM

'PDVT�ZPVS�MJOF�PG�QMBZ�

BOE�XJO�NPSF�QSPGJUT�XJUI�

/"$μT�IJHI�QFSGPSNBODF�

UPPMT �FYQFSU�TVQQPSU�BOE�

MJHIUOJOH�GBTU�UFDIOPMPHZ�

/"$�GPMMPXT�UISPVHI�JO�QFSGFDU�GPSN�

XJUI�GBTU�BOTXFST �TUSPOH�TVQQPSU�BOE�

JNNFEJBUF�DMBJNT�QBZ�FOBCMJOH�:06�UP�

BDF�TBMFT�BOE�NPWF�VQ�UIF�-FBEFS�#PBSE��

8JUI�FOIBODFE�74$�QSPEVDUT�BOE�/"$�

&YQSFTT�-BOF™�� PVS�QPXFSGVM�EFBMFS�

DPOUSBDUJOH�TZTUFN �ZPVμMM�NBLF�NPSF�TBMFT�

JO�MFTT�UJNF�BOE�TDPSF�MJLF�B�QSP�

$BMM�/"$�OPX�BU��PS�WJTJU�OBDTPMVUJPO�DPNUP�TFOE�ZPVS�QSPGJUT�TPBSJOH�

FI0911editor.indd 7FI0911editor.indd 7 8/26/11 9:51:35 AM8/26/11 9:51:35 AM

Developments

DealerTrack to Sell ALG to TrueCarDEALERTRACK HOLDINGS INC. announced that it has signed an agreement to sell its wholly owned subsidiary, ALG Inc., to TrueCar Inc. As part of the deal, the Lake Success, N.Y.-based dealer services provider will maintain a perpetual, royalty-free license to use certain ALG intellectual property and data in its products and services.

DealerTrack will receive a 15 percent equity interest in True-Car and the option to increase its ownership interest to up to 19.9 percent. And as part of the transaction, structured as a tax-free reorganization, DealerTrack will have the limited right to appoint a director to TrueCar’s board. The sale is expected to close in the fourth quarter.

On Aug. 5, rating agency Stan-

dard & Poor’s downgraded

the value of U.S. debt, send-

ing shockwaves around the world. A

week later, as the Dow Jones Indus-

trial Average continued to alternate

between big gains and losses, Chris

Stinebert said it was too early to know

the full impact on the automotive fi -

nance industry.

What did concern the president and

CEO of the American Financial Ser-

vices Association (AFSA) was what

the new rating would do to the still-

jittery consumer psyche.

“We don’t expect the downgrade

to have a major impact on the auto fi -

nance industry,” Stinebert said. “Our

biggest concern is the impact on con-

sumer confi dence, which could cause

consumers to delay buying vehicles.”

The Dow swung more than 400

points for four straight days the week

after S&P’s downgrade, setting a new

record in the index’s 115-year history.

By the end of the following week, the

Dow recorded eight days with moves

of more than 200 points.

Stinebert said the association

wasn’t surprised by S&P’s actions, as

the 105-year-old ratings agency had

been warning the federal government

about a potential downgrade. What

was encouraging, he added, was that

Moody’s and Fitch Ratings main-

tained their AAA rating of U.S. debt,

and U.S. Treasuries remain strong de-

spite the turbulence.

“The quality of auto fi nance has

been strong and the underlying assets

are well understood,” he said. “Over

time, rates will go up, but only as the

economy improves.”

That was the message the Fed-

eral Reserve sent on Aug. 9 when it

said it would hold short-term inter-

est rates near zero through mid-2013

to keep credit fl owing into the mar-

ket. Whether that will help boost

consumer confi dence remains to be

seen, especially since the Fed failed

to announce any new measures to

stimulate growth.

Three days after the downgrade,

Bandon, Ore.-based CNW Research

reported that its Jitters Index experi-

enced the largest month-over-month

increase since the metric was intro-

duced in 1996. It jumped 6.9 percent

in the fi rst seven days of August vs.

July and 5.5 percent vs. August 2010.

Updating the metric fi ve days later,

CNW reported on Aug. 12 that its

Jitters Index set a new record at 7.91

on a 10-point scale.

The Conference Board wasn’t ex-

pected to update its index until Aug.

30, several days short of F&I and

Showroom’s editorial deadline.

Stinebert said he doesn’t expect

the downgrade to impact the abil-

ity of fi nance sources to access the

asset-backed securities (ABS) mar-

ket for funding, which has been key

to the recovery of the auto fi nance

industry.

“We’ll keep close watch on show-

room traffi c,” he said. “This time of

year is typically busier with the in-

troduction of new models.”

Production Gaps Stall California New-Vehicle SalesIF NOT FOR PRODUCT SHORTAGES and consumers waiting for a drop in the state sales tax, the 19.8 percent jump in California new-car registrations during the fi rst half of 2011 might have been a lot higher. According to the California New Car Dealers Association (CNCDA), new-car registrations increased 4.9 percent during the second quarter — about 15 percent lower than the 19.7 percent year-over-year increase realized in the fi rst quarter.

Offi cials blamed the slowdown on inventory shortages caused by the March 11 earthquake in Japan, and consumers waiting for a 1 per-cent drop in California’s sales tax rate, which took effect July 1.

“Once Japanese auto manufac-turers and parts suppliers ramp up production, the second half of the year should be very good,” said Steve Snyder, CNCDA chairman.

Industry Reacts to S&P Downgrade

8 F&I and Showroom September 2011 PHOTO BY B64

FI0911develop.indd 8FI0911develop.indd 8 8/26/11 9:03:44 AM8/26/11 9:03:44 AM

;/,�>(@�0;�:/6<3+�),�

7,673,�796+<*;:�7,9-694(5*,�

5(;065(3

(<;646;0=,

,?7,9;:

;/,�>(@�0;�:/6<3+�),�

�� >>>�5(;065(3(<;646;0=,,?7,9;:�*64

'LDPRQ�)XVLRQė

9HKLFOH��0RWRUF\FOH�6HUYLFH�&RQWUDFWV

/LPLWHG�:DUUDQWLHV

:LQGVKLHOG�3URWHFWLRQ

'HQW��'LQJ�3URWHFWLRQ�

(QYLURQPHQWDO�3URWHFWLRQ�

5RDGVLGH�$VVLVWDQFH

&XVWRPL]DEOH�3UH�3DLG�0DLQWHQDQFH�3URJUDPV

7LUH��:KHHO�3URWHFWLRQ

:DUUDQW\�)RUHYHUġ

1R�8VH�1R�/RVHġ

.H\�5HSODFHPHQW�

*$3

7KHIW�3URWHFWLRQ

1HYHU�$IUDLG

WR�6KRZ�2XU�+DQG�

(33�796+<*;:��65,�(+4050:;9(;69�+09,*;��9,;96��9,05:<9,+�

9LVLW�XV�DW�ERRWK��DW�WKH�,QGXVWU\�6XPPLW�


Developments

Mark H. Mishler was named chief executive offi cer of Interstate National and its subsidiaries. He will be

responsible for overseeing Inter-state’s executive team and manag-ing the company’s long-term strategic initiatives. Mishler previously served as president and chief operating offi cer of The Warranty Group Inc.

GSFSGroup, a provider and administrator of F&I products and reinsurance structures, named Alan Bond vice

president of national sales. The former national sales director for Allstate Dealer Services will be responsible for developing growth strategies, as well as maintaining and expanding the company’s agent network.

AFS Acceptance, a subprime auto fi nance company, has named Scot Seagrave execu-tive vice president. He

will be responsible for all aspects of loan originations. Seagrave previously served as senior vice president of loan originations for Prestige Financial.

Flagship Credit Accep-tance has appointed Robert Cullinan as senior vice president of sales and marketing. Jeff Haymore also was named vice president and national director of sales. Cullinan has more than 25 years of sales

experience and most recently served as sales director and vice president of sales for CitiFinancial Auto. Haymore brings 15 years of experience, and previously devel-oped and executed sales strategies for companies such as Guardian Warranty, HSBC and Capital One.

Sonic Goes MobileSONIC AUTOMOTIVE INC.

is arming its corporate executives and regional teams with Apple iPads and iPhones equipped with the dealer group’s new mobile reporting app. Based on software designed by MicoStrat-egy Mobile, the new app displays dealership scorecards and provides insights into key metrics, among other features.

The Warranty Group, Lithia Motors Extend VSC DealTHE WARRANTY GROUP

Inc. has announced that Lithia Motors will continue to offer the F&I product provider’s service contract offerings throughout its dealership network. Lithia has been a client of The Warranty Group since 1997.

F&I Express and NAE Ink E-Contracting DealINTERSECTION TECHNO-

logies Inc. has added National Automotive Ex-perts to its e-contracting platform, F&I Express. The partnership will provide NAE dealers with the ability to e-contract and e-rate the company’s full suite of F&I products, ac-cording to the company.

SNAAC Adds E-Signature Feature to WebsiteSECURITY NATIONAL

Automotive Acceptance Corp. (SNAAC) an-nounced the launch of its e-signature tool for its SNAACNow.com Website. The new tool is designed to ensure that car buyers review the accuracy of contracts and other docu-ments before signing.

MaximTrak Launches New Platform for Providers and AdministratorsMAXIMTRAK TECHNO-

logies has launched a new e-contracting plat-form that will connect providers to their dealers through the software company’s F&I menu platform. Called e-TRAK, the turnkey solution also offers electronic rating, signature and registra-tion capabilities.

Exeter Acquired by BlackstoneBLACKSTONE GROUP HAS

acquired Exeter Finance Corp. from Navigational Capital Partners, and also secured a $600 million line of credit to help fuel its expansion plans. Blackstone offi cials said the fi rm will invest up to $277 million in the transaction.


THE OPTION TO ADD

accessories infl uenced 12 percent of all vehicles sold last year, ac-cording to a new study by Fore-sight Research. The fi rm’s “2011 Automotive Ac-cessory Market Report” indicated that 23 per-cent of the 7,459 new-car buyers interviewed

said the availability of accessories infl uenced their choice of dealer as

well. However, the report’s fi ndings showed that only 39 percent of salespeople

made an effort to sell accessories, and fewer than half of deal-ers had accessorized vehicles on display.

Report: Accessories Infl uence 12 Percent of Sales

Moves and Hires

t”

weresoo

mat ll



Industry Trends

A recent poll revealed that 64 percent of Americans don’t have enough saved to cover a $1,000 car repair or unplanned expense, providing further evidence of the importance of service contracts for budget-minded car buyers.

Economic woes have put a strain

on rainy-day funds. Sixty-four

percent of respondents to an on-

line poll said that if a car repair bill

or any other unplanned expense of

$1,000 were to come up, they wouldn’t

have enough in their savings accounts

to cover it.

Conducted by the National Founda-

tion for Credit Counseling (NFCC),

the survey’s fi ndings make a strong

case as to why a vehicle service con-

tract is critical in today’s economic cli-

mate, as only 36 percent of the poll’s

2,700 respondents said they could foot

a $1,000 repair bill.

According to the National Auto-

mobile Dealers Association’s 2011

“NADA Data” report, acceptance

rates for vehicle service contracts rose

from 37 percent in 2009 to 39 percent

last year, while F&I income rose 15

percent.

The NFCC’s data also revealed

that 17 percent of respondents would

look to friends or family to borrow

money, while another 17 percent said

they would ignore existing fi nancial

obligations to pay for the emergency.

Only 9 percent of respondents said

they would take out a loan or cash ad-

vance on their credit card to pay for an

emergency repair or cost. Researchers

at the NFCC said this could signify a

lack of access to credit.

“Selecting any option other than

taking the money from savings should

be a red fl ag,” said Gail Cunningham,

spokesperson for the NFCC. “People

often say they can’t afford to save,

but the truth is that they can’t afford

not to.”

36% 17% 17% 12% 9% 9%

My savings account

Borrow from friends or family

Disregard other monthly expenses

Sell or pawn assets

Cash advance on my credit card

Take out a loan

Survey SaysIf you needed $1,000 for an unplanned expense, where would you turn to fi nd the money?SOURCE: NATIONAL FOUNDATION FOR CREDIT COUNSELING

New-Vehicle Service Contract Penetration RatesSOURCE: NADA INDUSTRY ANALYSIS DIVISION

VSCs Critical as Rainy-Day Funds Shrink

Note: The NFCC’s July Financial Literacy Opinion Index was conducted via the homepage of the NFCC Website, www.debtadvice.org, from July 1 – 31, 2011, and was answered by 2,667 individuals.

45%

40%

35%

30%

25%

20%

15%

5%

02000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

FI0911trends.indd 12FI0911trends.indd 12 8/25/11 4:13:57 PM8/25/11 4:13:57 PM

http://www.debtadvice.org

D E A L E R S E R V I C E S

FI0911trends.indd 13FI0911trends.indd 13 8/25/11 4:14:00 PM8/25/11 4:14:00 PM

Robert Bassam doesn’t pre-

tend to know everything

about the car business.

The plain-spoken founder

and owner of Easterns

Automotive Group says he was as

surprised as any other dealer by the

2008 downturn. As the bottom fell

out of the economy, he watched as

the used-car empire he spent nearly

two decades building began to crum-

ble around him.

“That’s the only time I was ever

truly scared,” Bassam says now. “I

realized I might lose everything I had

worked for.”

After being forced to close 11 of

16 locations and let go of hundreds of

loyal employees, the group is profi t-

able again. But getting leaner is only

After nearly 20 years of steady growth, Easterns

Automotive founder Robert Bassam almost

lost it all. Learn how old friends and a new

business model put his operation back on track.

By Tariq Kamal


Dealer Profi le

DownOutBut

Not

PHOTO BY PHOTOGRAPHY BY SUSIE

FI0911profile.indd 14FI0911profile.indd 14 8/29/11 10:09:56 AM8/29/11 10:09:56 AM

THANK YOU

1,000,000 contracts sold. The best administration team, agents and dealers in the business. Find out how we do it at www.aulcorp.com or call 800.826.3207.

Service Contracts. It’s What We Do.®

© 2011 Associates Underwriting Limited L.L.C.


http://www.aulcorp.com

part of the story. Bassam credits his

senior staff, his partnership with

lenders such as Capital One Auto Fi-

nance and a focus on Internet sales

as the main reasons Easterns is still

around today.

Self-Made DealerBassam moved to the nation’s capital

from his hometown of Miami in the

mid-1980s. He was working as a wait-

er when he got into the car business

“accidentally,” reselling a car his fa-

ther bought off the street on a whim.

After selling two more vehicles he

purchased from a Salvation Army

sale, Bassam was hooked. He set up

shop in Arlington, Va., and spent the

next six years building a wholesale

operation. As his volume increased,

he began expanding into larger lots,

inadvertently attracting car shoppers.

“We just needed a place to store

cars,” Bassam says, “but retail cus-

tomers continued to roll in.” The

would-be buyers he spoke with were

looking for quality used cars, and

many had been turned down by area

dealerships.

For Bassam, the trend was too ob-

vious to ignore. “We realized very

quickly that the subprime market was

underserved and mistreated,” he says.

Bassam founded Easterns Automo-

tive Group in 1991 and the business

grew quickly. He was soon book-

ing 100 deals a month with Credit

Acceptance and would expand his

lender spread to include AmeriCredit

Corp. and the now-defunct National

Auto Credit. In 2003, he signed up

with Capital One Auto Finance,

which would become the group’s top

fi nance source.

The Widening ’NetThe business was motoring along

when Bassam’s cousin, Eiman Bas-

sam, joined the operation in 2004. He

had spent several years working up

the ranks at the now-defunct Auto-

Mall Online, an e-commerce site

that was based in the Washington,

D.C., area before it fi led for bank-

ruptcy in 2005.

Eiman’s experience there pro-

vided him with a nice template for

what would become Easterns.com.

“A lot has changed since then,” he

says. “In 2004, Easterns had a Web-

site — not as strong as it is now, but

it was a presence.”

At its height, AutoMall Online

— known more for its mall ki-

osks than its e-commerce strategy

— marketed inventories for about

19,000 dealerships nationwide. Un-

fortunately, the dot-com investment

bubble popped before it was ready

to make its initial public offering.

The most important lesson Eiman

learned there was the impor-

tance of transparency when

marketing online. That’s

why Easterns was quick to

partner with Carfax, and why each

vehicle listed on its site boasts a

link to a vehicle history report and

a minimum of 20 photos.

“Our goal was to answer all ques-

tions before they come in,” he says.

“‘Can we see the Carfax? Is it a one-

owner vehicle? Can you move it to

another location?’ And we found that

people were willing to drive as long

as one or two hours to get the vehicle

they wanted.”

Crisis ModeBy early 2008, Easterns was riding

high. The Website was well estab-

lished, the group’s 500 employees and

16 locations were moving 1,000 units

a month, and annual revenue was in

the $250 million range. A popular ad

campaign featuring pro athletes (see

sidebar, next page) had made East-

erns a household name. But when the

credit crisis took hold, Robert Bas-

sam began to smell trouble.


Dealer Profi le

▲

PHOTO COURTESY EASTERNS

“Our goal was to answer all questions before they come in. ‘Can we see the Carfax? Is it a one-owner vehicle? Can you move it to another location?’ And

we found that people were willing to drive as long as one or two hours to get the vehicle they wanted.”

— Eiman Bassam, Easterns Automotive Group

JULY 2011’S USED-VEHICLE SALES were the best for that month since 2005, according to the latest fi gures from CNW Research. Inde-

pendent dealers such as Easterns Automotive moved 1.667 million used units, an increase of 17.8 percent over July 2010.

Used Sales Surge

4.83 4.49 4.303.76 3.85 3.96

4.50

July 2005

Total U.S. Used-Vehicle Sales (in millions)

July 2006 July 2007 July 2008 July 2009 July 2010 July 2011SOURCE: CNW MARKET RESEARCH


Our loyalty to dealers hasnever wavered.And it never will.

© 2011 JPMorgan Chase Bank, N.A. Member FDIC

Call your Chase Regional Manager directly:

PRIME • NEAR-PRIME • SUB-PRIME • FLOORPLAN • DEPOSITORY PRODUCTS • COMMERCIAL BANKING SERVICES

Chase knows a thing or two about commitment.

Even in the toughest of times, we’ve been the leader our

dealers can trust. We help them reach their goals and

succeed, with expert advice and the right combination of

financial products. We’ve proudly served the automotive

industry nationally for more than 60 consecutive years—

we are a leader you can rely on.

REED RAFETTO, EAST JEFF JOHNS, MIDWEST REGGIE LINEBARGER, WEST

813.584.3482 614.248.4432 713.483.1141


FI0911roadvantage.indd 1 8/18/11 11:29:13 AM

“I was buying cars for less,” he says.

“Customers were ready to buy. But the

lenders stopped communicating.”

Things began to unravel fast. Sales

dropped off and diffi cult decisions

had to be made. Bassam started clos-

ing his “boutique” stores and cutting

costs across the board. He garaged

his prized luxury cars in favor of a

Hyundai Accent.

“The fi rst real fall in the business

came in 2008 and 2009,” he says. “I

was a wounded duck.”

That could have been the end, Bas-

sam says, were it not for his highest-

volume lender. He joined Capital One

Auto Finance’s Diamond Dealer pro-

gram, an initiative the company un-

dertook so it could continue offering

fl exible terms and special benefi ts to

a select group of dealers.

Bassam says that, as he continued

to retrench, Capital One’s support

made the difference. He became an

active member of the fi nance source’s

dealer board and was among the fi rst

to sign up for its new prime program

in 2010.

“The word ‘partnership’ is thrown

around a lot,” he says. “True partner-

ships [are formed] in tough times,

when they’re telling you you’re still

OK, that you matter. Now, we’re hav-

ing amazing earnings.”

Road to RecoveryWhen the dust settled, Bassam was

left with his fi ve largest stores and a

new outlook. He has begun to rehire

as much staff as he can support, but

he doesn’t plan to expand again. In-

stead, he will continue to rely on the

willingness of customers to travel

great distances in search of their

next car.

“If I could have one location for

500 customers, I would do it,” he says.

“Look at AutoTrader.com. Their fi rst

search option is ‘50-mile radius.’”

The cousins agree that the Web-

driven megastore model depends on

transparency in all phases, as well

as a quality product. Eighty percent

of the available inventory is Carfax

One Owner-certifi ed, and they rarely

sell trade-ins.

Easterns offers GAP coverage and

a vehicle service contract from War-

ranty Solutions on every purchase.

They’re willing to add the VSC with

no markup, which helps to explain

their 88 percent penetration rate.

“We like to max out the car, not the

payment,” Robert Bassam says.

Considering how far some custom-

ers travel, Eiman looks forward to a

time when all phases of the purchase

process can be safely completed on-

line. “We complete the credit app in

the showroom; that’s a privacy re-

quirement,” he says. “But I believe

that, in the future, customers will

choose, buy and fi nance without ever

touching the car.”

Meanwhile, Eiman’s Internet team

works hard to maintain the Website

and Easterns’ social media accounts.

One of his staff members spends most

of her workday updating the group’s

Facebook page and answering cus-

tomer questions via the Website’s chat

feature.

“If you’re not doing the research,

you’re not a good customer,” Robert

says of today’s Internet shopper. “My

family doesn’t even go out to eat be-

fore checking [the restaurant] on Yelp.

We call each customer two weeks af-

ter their purchase and ask if they can

rate us on their favorite site.”

He expects the subprime market to

continue to drive sales going forward.

He wants his managers to continue to

make transparency their No. 1 goal,

even as they respond to whatever

changes lay ahead.

“Robert is driven to succeed,” Ei-

man says. “He thrives on making oth-

er people successful. That leadership

and love got us through some very,

very tough times.”


Dealer Profi le Redskins RidesIN 2003, WASHINGTON REDSKINS linebacker LaVar Arrington was coming off three consecutive Pro Bowl seasons and was among the city’s most popular young athletes. Robert Bassam tapped Arrington (below) to become the fi rst in a

long line of Easterns Automotive Group pitchmen. Other Redskins to appear include running back Clin-ton Portis, wide receiver Laveranues Coles and tight end Chris Cooley.

Stars from other sports, such as Washington Capitals star forward Alex Ovechkin, have joined their ranks in recent years. The commer-cials feature a maddeningly catchy jingle, with the athletes singing (or lip synching) “At Eastern Motors, your job’s your credit.”

The ads are ubiquitous in the D.C. area, and even Bassam is sur-prised to see the effect they’ve had on the local sports landscape.

“When Donovan McNabb was traded to the Redskins in 2010, The Washington Post ran an article asking whether he would star in an Easterns commercial,” he says.

In March, Easterns held “Red-skins Rides,” a two-day mega sale, at FedEx Field. The dealer group sent 100,000 Capital One pre-ap-proved mailers to promote the sale, which moved 140 units. Easterns also showcased some of its many philanthropic efforts, including participation in Operation Second Chance, a charitable organization that offers support for wounded veterans and their families.

“It was an all-in bet,” Bassam says. “You’re putting out a substan-tial amount of money for a two-day event. But it was a success, and we handed out 1,000 care packages for troops at war, as well as a car, and tickets to ’Skins games.”

“If I could have one location for 500 customers,

I would do it. Look at AutoTrader.com. Their fi rst search option is

‘50-mile radius.’”— Robert Bassam,

Easterns Automotive Group


F&I Programs

FI0911roadvantage.indd 1 8/18/11 11:29:13 AMFI0911profile.indd 19FI0911profile.indd 19 8/29/11 10:10:05 AM8/29/11 10:10:05 AM

FI0911warrantech.indd 1 8/18/11 8:41:54 AM

4Social Media Pitfalls Avoid

It was bound to happen. The tre-

mendous growth in digital and

social media marketing was

simply too diffi cult for govern-

ment regulators to ignore. That’s

why social media ethics are no longer

based solely on personal preference.

It’s now a matter of law.

Take the Federal Trade Commis-

sion’s truth in advertising laws, which

hadn’t been updated since 1980. But

because of the boom in online mar-

keting activities, the FTC is now

actively updating its rules. The agen-

cy’s position, which is shared by state

regulators, is that social media is not

a loophole for deceptive marketing

practices. Regulators are actively en-

forcing rules and cracking down, so

let’s review four key areas your deal-

ership can’t afford to ignore.

Faking ReviewsThe FTC has updated its Guides

Concerning the Use of Endorsements

and Testimonials in Advertising to

require that companies ensure their

online posts are completely accurate

and not misleading. Planting or al-

lowing fake reviews to be posted is

a violation.

Keep in mind that the guidelines

are extremely broad and can apply

to anyone writing reviews on rat-

ing sites such as Google Reviews, or

promoting products via social media

sites, including blogs. For dealers,

companies which promise to improve

your ratings on review sites should be

viewed with skepticism.

Last October, a BMW dealer-

ship in San Antonio suffered serious

damage to its reputation after it was

caught posting fake online reviews.

The culprit was a company the deal-

ership hired to contact customers to

generate actual reviews. After click-

ing on a suspicious reviewer’s profi le,

a customer discovered that the author

had written fi ve-star reviews for nu-

merous dealerships and other busi-

nesses, and not just in San Antonio.

Even worse, all those reviews were

posted on the same day.

The social media sphere offers great opportunities to market your store, but there are several legal traps inherent to this type of viral marketing. Compliance expert reviews

four of them in this digital marketing primer. By Jim Radogna


Compliance

1

to

▲

FI0911compliance.indd 20FI0911compliance.indd 20 8/25/11 4:02:37 PM8/25/11 4:02:37 PM

When cookie cutter coverage just won’t do.Vehicle service contract coverage on a month-to-month basis.

M2M

Let Warrantech work for you.

For all your VSC needs, choose Warrantech.CustomEdge: Consumers choose their own coverage terms.

Extended powertrain coverage.

Extended non-powertrain coverage.

Comprehensive pre-owned vehicle coverage.

A dealership training and income development program.

A comprehensive VSC for used vehicles with month-to-month payment terms.

Coverage for repair labor costs offered through the Service Department.

Provides a method for developing a personal asset for retirement and estate planning.

WarrantechAn AmTrust Financial Company

Your Success is Our Policy. SM

FI0911warrantech.indd 1 8/18/11 8:41:54 AMFI0911compliance.indd 21FI0911compliance.indd 21 8/25/11 4:02:39 PM8/25/11 4:02:39 PM

This is happening every day,

folks, so be wary of the companies

you hire to help you with your digi-

tal marketing efforts. And don’t for-

get your own staff. The FTC recent-

ly charged a California marketing

company with deceptive advertising

after it found employees were posing

as ordinary consumers and posting

positive reviews.

Dealers may face liability if em-

ployees use social media to com-

ment on their employer’s services

or products without disclosing their

relationship with the business. Re-

member, the FTC requires all “ma-

terial connections” between a poster

and the companies they review to

be disclosed. That extends to any

association that could affect the re-

viewer’s credibility.

So, if employees, friends, fam-

ily or vendors post reviews to prop

up a dealership’s online reputation,

they must clearly disclose their re-

lationship with the company. Ad-

ditionally, the reviews themselves

must be an honest opinion based on

a real experience. The FTC’s rules

stipulate that reviewers must never

endorse a product or service that

they have not used personally. Re-

member, it’s all about transparency

and full disclosure.

Failing to follow those guidelines

puts more than your reputation at

risk. It also can result in substantial

penalties. In 2009, then-New York

Attorney General Andrew Cuomo

fi ned a cosmetic surgery practice

$300,000 for ordering its employees

to write fake reviews for its facelift

procedure. Last March, the FTC

ordered a company marketing in-

structional DVDs to pay $250,000

for fake reviews posted by the com-

pany’s affi liate marketers.

The FTC also has indicated that

companies are fully responsible and

liable for any inappropriate actions

committed by their employees, ven-

dors and any advocates they recruit.

The reviewers themselves also may

be held personally liable for state-

ments made in the course of their

endorsements.

Paying for ReviewsThe practice of offering a free oil

change or gas card to a customer in

exchange for a positive survey has

long been frowned upon by manufac-

turers. Their concern is valid. There

are no factory gatekeepers when it

comes to online ratings, and they

know dealers may be tempted to en-

tice customers with some type of in-

centive to get them to post a review.

The good news is there is no law

prohibiting that practice — yet. But

regulations do require that a reviewer

who has been provided with any form

of compensation (e.g., free services,

rewards, incentives, promotional

items, gifts or samples), must fully

disclose the source and nature of any

compensation received.

Advertising on Social Media SitesThe benefi t of trying to “sell” on

social media sites by posting inven-

tory, prices or monthly payments is

an ongoing debate, but many deal-

ers are already doing it. While I have

no opinion on the relative merits of

whether or not to sell on social me-

dia, it’s important to note the poten-

tial implications of these types of

activities.

Social media tends to be a low-

key, casual form of communication,

but that doesn’t mean advertising

regulations don’t apply. In fact, the

FTC recently announced that it was

updating its guide on social media

advertising. First published in 2000,

“Dot Com Disclosures: Informa-

tion About Online Advertising” was

written to inform advertisers that

consumer protection and disclosure

laws would be applied just as strictly

to the digital realm.

So, if inventory is posted or prices

and payments are quoted on social

media, it’s likely that the posts will

be considered advertisements. That

means they are subject to state and

federal disclosure and truth in adver-

tising regulations.

Lack of space is not an acceptable

excuse. If you’re advertising on Twit-

ter, your 140 characters must include

a clear link to any necessary disclo-

sures. A good rule of thumb is to have

any information that could possibly

be construed as advertising reviewed

by upper management or a qualifi ed

professional before it is posted.

Failure to Create a Social Media PolicySocial networking sites, blogs and

video sharing have soared in popu-

larity. Unfortunately, according to an


Compliance

2

34

PHOTO ©ISTOCKPHOTO.COM / DNY59


informal poll conducted by law fi rm

Proskauer Rose, 45 percent of com-

panies have no social media policy at

all. Hopefully, your dealership isn’t

one of them.

Dealerships need to control the in-

formation that’s coming out of their

business. Written policies and proce-

dures must spell out how employees

are expected to conduct themselves

online. If anything, a good policy

can help take the guesswork out of

what is appropriate for employees to

post about a company to their social

networks.

There also are a number of po-

tential legal issues with employees

operating in the social media sphere

that need to be addressed. Claims for

violation of privacy, harassment, dis-

crimination or defamation are a real

risk, and employees can harm a deal-

ership’s reputation by posting contro-

versial or inappropriate comments.

However, employer restrictions on

the use of social media can be tricky.

The National Labor Relations Board

(NLRB) recently issued a complaint

against an Illinois dealership, charg-

ing management with unlawfully

terminating an employee for making

critical comments about the store on

Facebook. While some unprofession-

al and inappropriate conduct may

not be protected, the intersection of

social media and the National Labor

Relations Act is an evolving area of

the law.

The best way to protect your deal-

ership from legal trouble is to estab-

lish formal policies for your staff.

But remember, creating a policy also

means creating a training program to

educate employees about appropriate

social media use and disclosure. Hav-

ing both is the only way your policies

will be legally defensible.

Jim Radogna is president of Dealer Compliance Consultants Inc., a San Diego-based provider of training and compliance solutions. He can be reached at [email protected].

September 2011 F&I and Showroom 23

Dan Kilian and Kristina Reid of Meade Lexus in Southfi eld, Mich., are using social media to raise the dealership’s online profi le. But they also have taken steps to remain compliant, adding links to any required disclosure statements.



“Service Contracts, GAP, Etch, CPO, PPM – all from one source. That’s why we use Resource.”

“When the manufacturer rep drives up to my store, they see their name. When Resource pulls up, they see mine. That’s what I’m talking about.”

“They gave me a website that features my QCertified used cars – at no charge. Seriously!”


[email protected]. 312.560.9182 Visit us at thewarrantygroup.com/automotive

“We wanted our own prepaid maintenance program. They private labeled one, just for us.”

“F&I, fixed, variable - Resource is our training solution.”

“I like immediate cash flow from my service contract sales. The First Extended dealer obligor model makes it happen.”

“I bought this store with my reinsurance dividends. Now my kids have their store, and I have mine. Best of all, Resource managed everything.”



Reenergize

It happens to every F&I man-

ager in every dealership. When

you’re fresh from a seminar or

workshop, your presentation and

pitch are reenergized and your

customers are responsive to the new

strategies you picked up. But over

time, the effectiveness of the lessons

learned begins to fade. Why is that,

right? Well, it has to do with the law

of entropy.

If you don’t remember the concept

from your high school physics class-

es, entropy, in its simplest defi -

nition, is the “inevitable

and steady deterioration

of a system or society.”

So, how do you prevent

this from happening to your F&I

pitch? Well, I recently read that 86

percent of fresh knowledge learned

will be lost in 90 days if it is nei-

ther reinforced nor used consistently.

So, the challenge for F&I manag-

ers is to fi gure out how to keep that

energy level up and maintain that

passion for the products you offer.

So, let’s review four exercises that, if

followed, can help you break the law

of entropy.

Step 1: How You Start Determines How You FinishSpend the fi rst 30 minutes of each

day practicing your skills, setting a

few goals for yourself and read-

ing something inspirational.

Not only will this energize

you as you start the day, it

will keep the things you

Have you ever wondered why your performance levels lag? The magazine’s resident expert knows the answer, and offers a remedy for keeping you on your game. By Rick McCormick



4 Ways to

Your Pitch

FI0911pitch.indd 26FI0911pitch.indd 26 8/26/11 8:54:47 AM8/26/11 8:54:47 AM

_ulf

_tates

_inancial

_ervices

Your F&I offerings are incomplete without GSFSGroup®.

is to switch to us, contact Tony Orozco at 713-580-3023 or [email protected].

Agent and dealer inquiries welcome.

GSFSGroup® is a registered trademark of Gulf States Financial Services,Inc.

Visit us at the 2011 F&I Conference at Booth #314

Gulf States Financial Services (GSFS) is an expert reinsurance administrator with national coverage and a 29-year history of success. We provide a nationwide suite of participation programs – Dealer Obligor, Dealer-Owned Warranty Company, NCFC, CFC and Retro.

Our products include Vehicle Service Contracts, GAP, Pre-Paid Maintenance, Credit Insurance and Tire & Wheel. In addition, our dealers benefit from a highly effective training support team designed to generate dealer revenue. To find out how easy it



can’t control, such as the economy,

from impacting your performance.

You also have to dedicate your-

self to putting what you learned

— whether from a workshop or an

article — into practice every day.

That means never cutting corners. It

means staying with the process on a

daily basis. It means training for your

next customer interaction the same

way professional athletes train before

a sporting event, as the skills you

practice regularly will fi nd their way

into your game.

Step 2: Create Your Own MomentumGood F&I managers wait for good

things to come their way. They wait

for the banks to provide more fl exible

terms. They wait for more favorable

deals and better opportunities for

profi t. Great F&I managers are indi-

viduals who take the limited oppor-

tunities they have and look for ways

to maximize them.

So, to see an increase in overall

profi t and income, you must fi rst in-

crease the level and consistency of

your training activity. So, be proac-

tive and study the products you offer

and their benefi ts to your custom-

ers. Doing so will not only increase

your appreciation of the benefi ts your

products offer, it will lead to a more

convincing presentation.

Spending time in the service de-

partment is another great way to

learn the true value of your products.

There you’ll see what consumers are

seeing, including what repairs, both

minor and major, they’re paying for,

and how much they cost.

Take a recent visit I made to a Toy-

ota store. While in the service area,

I overheard a customer explaining to

a service rep that the keyless remote

on his Toyota Camry was no longer

working. It turned out the receiver

inside the dash was bad. A new re-

ceiver cost $550. After factoring in

labor costs, the bill to get the remote

system to work again added up to

$1,000. That’s the kind of informa-

tion that will improve your chances

of turning a “No” into a “Yes.”

Step 3: Get Out of the TunnelAs trainer, I’ve been fortunate to be

able to meet some of the most tal-

ented F&I managers in the country.

I know it’s diffi cult for many of you

to fi nd time to leave the store to meet

with other professionals in your fi eld.

Well, I’m here to tell you that you

need to make time to get out to an

industry event, like the magazine’s

annual conference, or join a social

media group like the magazine’s

F&I Forum.

On the forum are some seasoned

professionals who can provide great

insight into how to be productive and

how to produce at a high level. Col-

lectively, there’s got to be a hundred

years of experience on the forum, so

take a moment to read some of the

posts and become an active member.

I can’t tell you how energizing it

is to be able to exchange ideas with

other F&I pros. These people can be

goldmines of information, so take

the time to step outside of your world

and reach out to others in your fi eld.

Remember, never stop learning. Read

everything you can fi nd about pre-

senting and selling intangibles.

One of the most formidable public

speakers today is a gentleman named

Michael Hingson. Despite being blind,

he was a very successful computer

sales executive with an insatiable thirst

for knowledge. But that’s not what

makes him an inspiration. See, he was

working in his offi ce in Tower One of

the World Trade Center on 9/11, and

he and his loyal guide dog led dozens

of people to safety just minutes before

the building collapsed.

What I fi nd motivating about

Hingson’s story is his refusal to stay

inside the tunnel of his limitations.

That’s how you need to approach

your career.

Step 4: If It Hurts, “S-T-R-E-T-C-H” YourselfWherever I go, the No. 1 question I’m



The only person you need to worry about is yourself.

Comparing yourself to another person’s success can be deceiving and can some-

times leave you satisfi ed with less than your best.

PHOTOS ©ISTOCKPHOTO.COM / GILAXIA


asked is, “What is everyone else do-

ing?” Well, I’m here to tell you that

the only person you need to worry

about is yourself. Comparing your-

self to another person’s success can

be deceiving and can sometimes

leave you satisfi ed with less than your

best. So, don’t make that mistake.

Look, you know where you stand

and what you’re successful at, so

work to outdo yourself. If your ac-

ceptance rate for service contracts

is at 47 percent, why not make 50

percent your goal for the next three

months. Your fellow F&I managers

at the dealership might be at 35 per-

cent, but remember that you’re not

competing against them. So, energize

your production by working to beat

your personal best.

My favorite story from sales guru

Zig Ziglar is the one he tells about his

days as a door-to-door salesman. He

was making a sales call and sitting on

the front porch of the house he was

visiting was an older gentleman and

a whimpering dog. Ziglar asked what

was wrong with the dog and the gen-

tleman answered, “He’s sitting on a

nail.” Ziglar responded with another

question: “Why does he keep sitting

on the nail?” The man’s response

was incredibly insightful: “Because

it doesn’t hurt enough for him to get

up and do something about it!”

Does performing at a level that’s

less than your best hurt yet? Well

then, break free from that trap, stretch

yourself and defy the law of entropy.

Don’t let time drag you down. Instead,

do the things you need to keep your

performance levels up and watch your

profi ts and income do the same.

Rick McCormick is the director of training and income development for Automotive Financial Services, a provider of F&I products and training for dealerships nationwide. E-mail him at [email protected].

FI0411wisefi.indd 1 3/25/11 8:30:54 AM




InterviewThe

Some F&I managers dislike

it, others swear by it. Some

say it’s the single most im-

portant part of the F&I

process, and they won’t

deliver a vehicle without it. What

we’re talking about here is the cus-

tomer interview.

Only you can decide whether the

extra fi ve minutes per customer is

worth your time. If it is, then it’s

worth doing it right. Let’s delve into

the customer interview and highlight

a couple of must-haves for making it

work for your dealership.

Perception Is EverythingF&I managers who favor the custom-

er interview prefer it be done in the

showroom, either at an empty offi ce

or at an empty table. The key is that

it be done outside of the F&I offi ce,

as it allows the customer to remain in

his or her comfort zone.

Whether based on past experiences

or stories they’ve heard from friends,

customers perceive the F&I offi ce as

the place where buyers have their pay-

ment and rate bumped. To them, F&I

is where they are lied to and pressured

into buying products they don’t want.

At the very least, they know they will

have to sign piles of paperwork.

So, if that’s how customers feel

about the F&I offi ce, how could they

A fi ve-minute interview can go a long way toward putting customers at ease, and it may even lead to a

nice boost in F&I profi t per vehicle retailed. F&I trainer

breaks down the process. By Don Geroni



PHOTOS ©ISTOCKPHOTO.COM / MICHAEL DELEON

FI0911interview.indd 30FI0911interview.indd 30 8/25/11 4:09:59 PM8/25/11 4:09:59 PM

| GAP | Tire & Wheel | Theft | Lease Wear & Tear | Paintless Dent Repair | Windshield | Roadside Assistance | Identity Theft || Key Replacement | Planned Maintenance | Interior & Exterior | Mechanical Protection | Emergency Notification |

| E-Business Solutions | Menu Software | Training & Development |

Strength.Security.Results.It’s who we are.

• #1 volume F&I product provider.

• Over 200 exceptional agent partnersdelivering value in all 50 states –the absolute best in incomedevelopment.

• 26 customized OEM private-labelprograms, more than all otherproviders combined – theundisputed leader.

• $600 million in claims paid.

• $5 billion in profits for our clients.

• 15 million consumers protectedworldwide.

Safe-Guard is committed to providingexceptional service and profit-drivenresults. Experience for yourself whySafe-Guard is the industry’s leadingF&I provider.

One Company. One Solution.800-742-7896 | [email protected]

Visit Safe-Guard in Booth 212 at the F&I Conference & Expo.



http://www.safe-guardproducts.com

FI0411ally_uwc.indd 1 3/31/11 11:11:10 AM

possibly be in the the right state of

mind to listen to everything the F&I

manager has to say? The good news

is that those walls of resistance can

be broken. And the best time to do

that is when the salesperson has a

signed purchase order, a customer

application and a credit report.

Once those items have been col-

lected, the F&I manager should go

out to the customer and introduce

himself or herself. Be sure to pro-

vide your name and title while shak-

ing hands with your customers and

congratulate them for their purchase.

Then, ask them if they will join you

for a quick discussion.

First, list your responsibilities as

F&I manager, which includes com-

pleting and reviewing his or her pa-

perwork and assisting with his or her

fi nancing options. You also want to

make sure you tell the customer that

your job is to get him or her on the

road as quickly as possible. Doing

this sets a realistic time expectation

for the entire process, which is key to

keeping customers in a listening and,

hopefully, buying mood.

This nonconfrontational, down-

stream approach will work wonders

for your dealership’s customer sat-

isfaction index. Customers feel re-

laxed and in control, and they will

more likely have a positive impres-

sion of you.

Keys to an Effective InterviewNow that you have permission to

begin the process, it’s time to start

the interview. The benefi t of the in-

terview is it can provide a wealth of

information about the customer if

the right questions are asked. It can

help you set the terms of a service

contract or prepaid maintenance

program. You’ll also learn whether

the sale is a straw purchase and if a

demo ride was taken.

More importantly, the interview

will provide the F&I manager with

the information he or she needs to

obtain lender approval, which is our

primary goal. It also can plant the

seed for the sale of F&I products.

More important, you’ll have the op-

portunity to use the three most im-

portant words on the road to a sale:

“You told me …” Those three little

words can be critical to overcoming

an objection when you get the cus-

tomer into the F&I offi ce to present

your menu. Here are some examples

of what I mean:

1Service contract: “You know, I’m

surprised. You told me earlier that

you are going to put 15,000 miles per

year on the vehicle, and you plan to

keep it for fi ve years. That means you

will be out of the factory warranty

in two-and-a-half years. So what it is

about the service contract that con-

cerns you?”

2Prepaid maintenance: “You told

me earlier that maintenance was

important to you. What is it about

the prepaid maintenance program

that concerns you?”

3Appearance protection: “You

told me earlier that keeping your

vehicle looking showroom-new was

important. What is it about the ap-

pearance protection (or dent pro-

gram) that concerns you?”

4Credit life insurance: “You told

me earlier that in the event of your

death, you want your spouse to receive

the title. What is it about the credit life

insurance that concerns you?”

I have had the privilege of man-

aging and training hundreds of F&I

managers through the years, and

I can tell you that the only way the

interview works is if it is conducted

100 percent of the time with 100 per-

cent of your customers. But that also

requires a 100 percent commitment

among the staff — from your dealer

to your sales manager and the rest of

your team.

Yes, there are times when there

is a backup of customers waiting to

get into the F&I offi ce, which makes

sticking with the showroom inter-

view diffi cult. And sometimes, in a

rush to get the customer on the road,

the salesperson may be the reason

the interview is skipped. Whatever

the cause, your dealership could be

leaving money on the table.

Look, it takes about 15 seconds

for the F&I manager to walk to the

salesperson’s desk and less than fi ve

minutes to conduct the interview.

If you buy into this process and get

everyone committed to making it

happen on every deal, you could see

a nice increase in your store’s F&I

profi t per vehicle retailed.

Don Geroni serves as the national sales and F&I trainer for PermaPlate Inc. He also served as the national director of F&I training for Auto-Nation Inc. E-mail him at [email protected].



The customer interview should take no more than fi ve minutes. You can

gather customer information, set service contract terms and deter-

mine if a sale is a straw purchase.


mailto:@bobit.com

Meet the man behind the dealer, the customer and VehicleOne.

Independent agent Brian Gaines knows what it takes to do business—honesty, dependability and some serious elbow grease. When times are tough and vehicle sales are hard to come by, maximizing PVR on every vehicle is critical. VehicleOne delivers protection for vehicles and increased revenue for dealers like the York Automotive Group in Indiana. And like Brian, VehicleOne supports his dealers and their customers with over 30 years of automotive coverage experience.

Meet your own Brian Gaines.Call 1-248-263-4498 to find your local independent UWC agent. Or visit universalwarranty.com for more information.

©2011 Universal Warranty Corporation

Meet the man behind the dealer

“ You have to work harder to go above and beyond what everyone else is doing.”

FI0411ally_uwc.indd 1 3/31/11 11:11:10 AMFI0911interview.indd 33FI0911interview.indd 33 8/25/11 4:10:05 PM8/25/11 4:10:05 PM

FI0711charter.indd 1 6/27/11 11:05:20 AM

E-Contracting’s Missing Link

The auto fi nance industry’s

decade-old push toward

e-contracting has served

as a nice template for F&I

product providers. How-

ever, there is one step providers may

be able to skip, a prospect that could

speed up the delivery of the paperless

future both segments envision for the

F&I offi ce.

The F&I product segment is where

the auto fi nance industry was a decade

ago in its drive toward e-contracting.

Web portals that allowed dealers to

submit credit applications ruled the

day, as they do currently for today’s

product providers. Advancements in

how business applications are de-

signed and distributed, however, are

speeding up the F&I product indus-

try’s progress. That progress also

raises the prospect of F&I managers

being able to book all product and fi -

nance contracts without ever having

to leave their dealership management

system (DMS).

The Birth of e-ContractingThe concept of e-contracting was

born in the late 1990s. At that time,

fi nance sources began introducing

online credit apps. It wasn’t until se-

cure Internet connections were devel-

oped that these online credit systems

fl ourished. One of the fi rst compa-

nies to come online with such a sys-

tem was Household Finance Super-

highways. Like other trailblazers, the

company developed a single-lender

Website that could receive credit

applications.

These sites also became great

dealer communication platforms for

fi nance sources, especially for cap-

tive fi nance companies. Aside from

being able to distribute new rates,

captive fi nance companies used them

to deliver service bulletins and host

loyalty-building dealer contests. The

goal was to load these credit portals

with as much content as possible to

keep their dealers from visiting their

competitors’ sites.

The single-lender sites worked

Integration has been one of the obstacles in the way of the industry’s push toward e-contracting. One technology expert says that will no longer be the case going forward, especially for product providers. By Mark Virag


Technology

PHOTO ©ISTOCKPHOTO.COM / OKEA

FI0911technology.indd 34FI0911technology.indd 34 8/25/11 4:13:30 PM8/25/11 4:13:30 PM

When traditional loan financing doesn’t cover the F&I products your customer wants, your deal isn’t at a loss. Save-A-Deal provides alternative funding solutions for F&I products not covered by vehicle financing to ensure customers can afford the aftermarket programs they need. Realize F&I profits and save your deal today with quick, 72 hour funding with no dealer cancellations.

Get your customer the financing they need. Call 877-404-6823 or visit www.saveadeal.com for more information.

THIS DOESN’T HAVETO BE YOUR CUSTOMER

FI0711charter.indd 1 6/27/11 11:05:20 AMFI0911technology.indd 35FI0911technology.indd 35 8/25/11 4:13:32 PM8/25/11 4:13:32 PM

http://www.saveadeal.com

great, but they were ineffi cient. F&I

managers were forced to learn pro-

cedures for submitting credit apps

for each platform. This is the stage

at which product providers now fi nd

themselves, and the challenge will

undoubtedly be the same.

The main problem with the portal

sites is that F&I managers must rekey

basic information about the customer

for each site they visit to price a prod-

uct. And once they’ve done that, they

are forced to switch back to the DMS,

input the products selected and then

check the fi gures before printing the

fi nance contract. It’s true that most

F&I professionals can price products

by memory, but that may not be feasi-

ble in the near future as the list of rat-

ed F&I products continues to grow.

The biggest issue with having doc-

uments prepared on separate systems

is the lack of integration and cross-

checking. There are provider portals

available today that can read from

the DMS, which eliminates the need

for rekeying. However, only a few of

these platforms can push product in-

formation back to the DMS. Linking

through certifi ed and even “hostile”

integration has been a great short-term

solution, but there is a better way.

Detour AheadThe next logical step for F&I prod-

uct providers would be aggregator

platforms. When DealerTrack intro-

duced its credit platform early last

decade, you would think the con-

nected fi nance companies benefi ted

the most. They did, but not without

some grumbling.

Yes, DealerTrack’s credit platform

did put those fi nance sources a mouse

click away from hundreds of F&I

managers, but it also erased the edge

some sources had gained through

their portal sites. The biggest fear

among fi nance sources in those days

was they would be commoditized by

the credit aggregation systems. It was

for that reason that a group of cap-

tives got together to form RouteOne

in 2002.

F&I product providers, especially

those affi liated with fi nance compa-

nies, know that story well. But their

biggest concern is that aggregator

platforms will foster price compari-

sons, which is why many simply

won’t play that game unless they can

control the rules.

Two things can alter the path of

providers and technology companies

alike: service-oriented architecture

(SOA) and Web services. SOA re-

fers to a design approach in which

components are created with concise

interfaces, with each component per-

forming a distinct set of related func-

tions. A Web service is a way to de-

liver a company’s solutions from an

SOA system.

What a Web service represents to

providers is a way to make portal

functionality available to outside sys-

tems such as — you guessed it — the

DMS. It also represents a cost-effec-

tive way to organize IT resources, as

a Web service offers more options to

providers on how they deliver their

services. They can expose the servic-

es to multiple menu systems, connect

directly to a DMS, or allow a provid-

er to join a network hosting multiple

dealer systems.

In the dealership environment, Web

services will allow product prices and

fi nance rates to be presented over the

DMS in a controlled environment. It

also will allow all contract forms to

be prepared by the DMS.

At present, the DMS supports plain-

paper contracting by means of a virtu-

al forms library. Using Web services,

these forms can be prepared in real-

time by the provider, allowing dealer-

ships to deliver an electronic funding

package to the fi nance source. F&I

managers also will be able to book

product contracts automatically.

This isn’t science fi ction. The net-

works and services are already in

place, and DMS providers are ac-

tively putting the other pieces of this

“e-puzzle” together. In fact, my com-

pany was founded specifi cally for

this purpose.

The main benefi t of this scenario

to F&I managers is that they can per-

form duties on one system. Providers

benefi t from various cost savings,

including the ability to change rates

automatically. The benefi t to a car

buyer is if they scrape a rim driving

off the lot, that road hazard contract

they purchased will already have

been booked by the time they took

delivery of the vehicle. And this is

why it’s critical that your dealership

familiarizes itself with e-contracting,

because this future isn’t far off.

Mark Virag is the managing direc-tor of Provider Exchange Network. He can be reached at [email protected].


Technology

1995Finance sources deploy private systems for credit approval.

1999Single-lender credit systems offer “portals,” i.e., Websites.

2001 DealerTrack becomes “aggregator” for multiple fi nance sources.

2002RouteOne founded as captive-friendly aggregator.

2005 Aggregators begin to develop e-contracting.

2009ODE founded to develop e-contracting for DMS.

Evolution of Online Credit

This isn’t science fi ction. The networks and services are already in place, and

DMS providers are actively putting the other pieces of this “e-puzzle” together.


Are you ready for the Automotive Industry Event of the Year?

For the first time ever we will hold our NADA Convention and Expo in conjunction with the ATD Convention and Expo in Las Vegas, Nevada! Mark your calendar for February 3-6, 2012, to reap the benefits outlined below.

We promise: � Exciting new exhibits

� Workshops on the most recent trends and best practices with topics featuring the latest from facility construction to everything internet.

� A respected line-up of speakers, including:

t Sergio Marchionne, CEO Chrysler LLC

t Aron Ralston, survivalist and inspiration for the film 127 Hours

t George W. Bush, 43rd President of the United States and Founder, George W. Bush Foundation

� Valuable face time with the manufacturers

� A New Social Connection Zone complete with Twitter Wall

We deliver: � Comprehensive on-line resources

� Money-saving early bird registration

� 3 bonus workshop sessions on Friday

� Exhibit time all day, every day

� The Industry’s Premier Marketplace featuring the latest technologies and trends

Registration and Housing to open online at www.nadaconventionandexpo.org

Voice of the Dealer…


http://www.nadaconventionandexpo.org

12 4


Sales Driver

The magazine’s sales columnist continues with his call for change in Part 1 of a two-part series on creating sales momentum at your store. By Cory Mosley

I have worked with a lot of talented

people in this business, many of

whom went on to be key leaders

within their organizations. Recent

conversations with some of those

individuals and the completion of

an important project inspired me

to write this month’s column. You

may not like what I have to say,

but, hopefully, it will act as a catalyst

for change.

See, in today’s marketplace, “little

by little” isn’t the answer. Neither is

“moving at a glacial pace.” Reaching

a dominant position requires massive

action. The following are the fi rst

four of nine ideas that, if successfully

implemented, will create the momen-

tum you need to do just that:

Get feedback from your sales team: At my company, we offer something

called “Breakthrough Consulting.”

It’s designed to identify the major

roadblocks preventing a dealership

from reaching the next level. First, I

gather the sales team alone in a room.

With no managers present, they are

free to tell me what’s really happen-

ing at the dealership. It also allows

me to extract their ideas for getting

increased results.

I started in the showroom myself,

and I’ve been consulting long enough

to know the difference between com-

plaints and actual challenges. The

truth is that some of the best ideas for

moving the sales department forward

rest in the minds of your sales team.

Unfortunately, many great ideas for

inventory, pricing, pay plans, incen-

tive plans, marketing and even cost

cutting fall on deaf ears because the

decision maker is too ego-driven to

accept recommendations from their

subordinates.

Remember, successful salespeople

are good for more than just writing

deals and mastering the meet and

greet. Most of them have creative

ideas that are not solely focused on

increasing their income. In fact,

many sales professionals simply want

to have a role in the dealership’s suc-

cess. So, why not start weekly meet-

ings to discuss new ideas or create a

process by which ideas can be sub-

mitted for serious consideration?

Get rid of the sacred cows: I’ve writ-

ten it before and I’ll write it again:

Expand or become expendable. If

my 66-year-old mother is texting, e-

mailing, Facebooking and tweeting,

then there is no excuse for salespeo-

ple and managers not being able to do

the same. Properly using the CRM

system or surfi ng the Web to educate

yourself on the information your cus-

tomers are fi nding online should be a

daily job requirement.

I can’t tell you how many times

I’ve seen capable sales, fi nance and

service managers — including sales

professionals — sink a dealership.

Decision makers need to look in the

mirror and be honest, because it’s

critical that they put more energy into

those who are committed to enhanc-

ing the business rather than those

who simply will not step up.

Sweep away the bureaucracy: Just

like the sacred cows, the bureaucra-

cy and red tape has got to go. “Nim-

ble,” “quick” and “responsive” need

to become the new adjectives in your

life, as death by meeting and paraly-

sis by analysis will kill even the best

of intentions.

To increase the level of communi-

cation across the dealership, the “us

vs. them” mentality that manifests

in the sales, fi nance and service de-

partments must be eliminated. And

don’t just talk about an open-door

policy; literally unscrew the doors

from their hinges, reengage your

passion for the business and reignite

that fi re within your sales and man-

agement teams.

Don’t recycle talent: I’m all for

recycling when it comes to bottles,

cans and paper, but not when it

comes to employees. One of my cli-

ents has a manager on his fourth tour

at the dealership. He was fi red at the

end of the three previous go-arounds.

Do yourself a favor and don’t make

the same mistake.

I’ve often said that the length of

your tenure in the business has no

bearing on how competent and skilled

you are. You read right — none! I’ve

met second-year managers who could

run circles around the so-called vet-

erans. And by utilizing personality

profi ling, tweaking the pay plan and

work schedule, and participating in

a real training and development pro-

gram, you too will be able to attract

and retain the talent that you’ll need

to dominate in the future.

Cory Mosley is principal of Mosley Auto-

motive Training, a company focused

on new-school techniques, products

and services. He also is the creator of

the “Control Your Sales Destiny” semi-

nar series. E-mail him at corey.mosley@

bobit.com.

4 Operational Game-Changers

FI0911friendly.indd 1 8/23/11 11:31:11 AMFI0911salesdriver.indd 38FI0911salesdriver.indd 38 8/25/11 4:12:54 PM8/25/11 4:12:54 PM

FRIENDLYFINANCECORPORATION

DealerTrack Electronic Lender No Dealer Agreements Always 100% Non-Recourse

For 1 in 125 U.S. Households,BANKRUPTCY Has Become the Only Option.

Don’t Pass By this Rapidly Growing Demographic!

We Fund OPEN Chapter 13 Bankruptcies BEFORE Other Lenders.We Fund OPEN Chapter 7 Bankruptcies BEFORE 341 Meeting.

Turning Problems into Solutions® Since 1949Licensed in DE, GA, IL, IN, KS, KY, MD, MI, NE, OH, TN and VA

800.872.2877, ext. 231 or ext. 236 www.friendlyfinancecorp.com

Call Us Today About Our Cash Rewards

Monthly Program!

FI0911friendly.indd 1 8/23/11 11:31:11 AMFI0911salesdriver.indd 39FI0911salesdriver.indd 39 8/25/11 4:12:55 PM8/25/11 4:12:55 PM

http://www.friendlyfinancecorp.com

FI0911ziegler.indd 1 8/18/11 8:45:29 AM

1

2

4

3


On the Point

‘Da Man’ says it’s time for dealers to stop believing in the fl awed logic that says it’s impossible to make a profi t in today’s Internet age. By Jim Ziegler

T here are so many defeatists in

our industry telling you that

it’s impossible to make gross

profi ts on car deals because of com-

petition and the information avail-

able to today’s car shoppers. Person-

ally, I think that’s ridiculous. I refer

to those naysayers as the “prophets of

low profi t.”

As a general manager, dealer prin-

cipal or general sales manager, there

are several adjustments you can

make to the way you negotiate with

customers that will dramatically in-

crease your profi tability. Let’s review

four simple changes that can have an

immediate impact:

Stop apologizing for making a profi t: Full price is a fair price, es-

pecially on new cars and trucks.

Dealers are operating with less than

6 to 8 percent markup on new cars

and trucks, while furniture and jew-

elry stores are allowed to mark up

their products 300 percent without a

complaint.

The root of most blown deals and

lost profi ts is a premature discussion

about fi gures. Salespeople, you need

to stop this, because what you’re re-

ally doing is giving away all the profi t

before management is even aware of

the customer or the deal.

Stop qualifying on anything but income and credit: The main reason

you’re not as profi table as you should

be is because your salespeople —

and, in some cases, even your man-

agers — are overqualifying custom-

ers with all of the questions they’re

asking. By asking questions that are

basically designed to fi nd out why

they can’t buy, all you’re doing is dis-

qualifying your customer rather than

qualifying.

So, instead of fi nding out how

much they’d like to pay, how much

they have budgeted and how much

they want for their trade, try asking

your customers if they can afford the

vehicle they want and whether their

credit report agrees.

Think about it: Are customers real-

ly going to tell you the highest amount

they can pay, or the least they’ll take

for their trade-in? Remember, cus-

tomers have a strategy, too.

Profi t is a state of mind: The big-

gest problem with asking too many

questions is it tends to saturate the

salesperson’s mind with every rea-

son why the deal won’t get done.

That kind of thinking tends to rub

off on the sales manager, who then

gets gun shy about pulling the trig-

ger on the deal.

Think about this: Isn’t it amazing

how much higher our current gross

per unit is these days because of the

shortage of quality used vehicles?

Customers are paying a premium for

pre-owned cars, which allows us to

hold a higher profi t, right? My ques-

tion to you is: Why weren’t you able

to do that all along? Well, because it’s

all about one’s mental state.

See, it’s important that customers

see our numbers before we delve too

deeply into what they want to pay.

Try this line: “Mr. Customer, we pre-

fer to make the fi rst proposal to you.

Let’s wait and see what management

offers before you tell me what you

have in mind.”

No matter what they believe or say,

customers are going to want to nego-

tiate. And you can bet they brought

their “A” game to the table. See,

there’s no such thing as a no-haggle

dealership. Every deal moves the

numbers somewhere, even if it’s just

a second look at the trade.

Never ask how much they want to put down: Down payment is the

key to profi t and getting more deals

approved. Never ask a customer how

much down payment they have. In-

stead, tell them how much they need

before you hear their number. Here’s

an example of what I mean:

“Mr. Customer, as you know, the

banks in our community and ABC

Captive Credit would like to see 20

percent cash down for preferred and

premium fi nancial programs. In your

case, we’d like to get a check for

$3,824.”

By using this method, customers

will negotiate your number down

instead of you having to bump their

number up. It’s also a much more

customer-friendly approach.

Again, most blown deals are the

result of sales staffers being afraid of

the numbers or overqualifying cus-

tomers. Remember, every deal has a

heartbeat with a rhythm and a pulse,

so you know when it’s still alive and

when you’ve lost it. The key is con-

fi dence, because a lack of it is like

blood in shark-infested water. So, be

sure of yourself and follow the advice

I laid out, because it really is OK to

make a profi t.

Jim Ziegler is the president of Ziegler

SuperSystems Inc. E-mail him at jim.

[email protected].

Beware False Prophets of Profi t

FI0911onthepoint.indd 40FI0911onthepoint.indd 40 8/25/11 4:12:07 PM8/25/11 4:12:07 PM


FI0911ziegler.indd 1 8/18/11 8:45:29 AMFI0911onthepoint.indd 41FI0911onthepoint.indd 41 8/25/11 4:12:09 PM8/25/11 4:12:09 PM

FI0411uds.indd 1 3/23/11 4:27:37 PM

Legal


The magazine’s legal wiz shares a textbook case on what not to do when spot delivering a vehicle. By Tom Hudson

T he editor sent me a few ques-

tions and points raised in a re-

cent discussion among mem-

bers of an F&I Facebook group. The

topic: spot deliveries. Rather than go

point by point, I thought I’d share

an e-mail a dealer friend of mine

shared with me. See, my friend has a

friend who is a lawyer. Evidently, that

lawyer friend sometimes represents

consumers in cases against car deal-

ers. He also sometimes represents

dealers. In the case I’d like to share

with you, he was recommended to a

consumer by a dealer who wanted to

“level the playing fi eld” with a com-

petitor. The following, albeit slightly

edited, is what the lawyer wrote:

I’m reproducing the lawyer’s letter

here for a couple of reasons. First,

dealers need to know that there

are lawyers representing consumer

plaintiffs who are very knowledge-

able — and often more knowledge-

able than dealers — about the laws

that apply to the sale and fi nancing

of cars. Second, this letter serves as

a good checklist for how not to ex-

ecute a spot delivery transaction.

These transactions are diffi cult

to do properly, which requires good

documentation, a thorough under-

standing by the dealer of the laws

and regulations governing them, and

full disclosure to the customer about

what’s happening. Spot deliveries

are no place for abusive practices

like those described above. They are

risky enough when they are done

properly and ethically.

The practice of spot deliver-

ing cars raises issues under fed-

eral law as well as state law, and

the rules vary from state to state.

If you haven’t already done so, you

should thoroughly review your spot

delivery forms and procedures with

your lawyer. That’s unless you enjoy

stroking big checks to your custom-

ers’ lawyers.

Thomas B. Hudson Esq. is a partner in

the law fi rm of Hudson Cook LLP and

the author of several books, available

at CounselorLibrary.com. ©Counselor

Library.com 2011, all rights reserved.

Based on an article from Spot Delivery.

Single print publication rights only,

to F&I and Showroom magazine. HC#

4840-0728-8074 (9/11).

Spotting by the Book

he dealer of the laws delivery forms and procedures with

car when they had no right to do so and are now offering it for sale), coercion and duress (they made her take a rental and a check for trade allowance), breach of contract (consumer not in default), wrongful repossession, breach of the peace, unfair and deceptive collection practices and resulting intentional infl iction of emotional distress. And, concurrently with the civil complaint, I told them I’m fi ling with the Federal Trade Commission for

violations of the Fair Credit Reporting Act, fi ling with the North Carolina Attorney General for improper conditional delivery (didn’t put the customer out on a dealer tag), and then with the state DMV for violations of NCGS 20-294 (4), (5) and (6) (fraud on customer, illegal repo, unfair and deceptive acts and practices).The dealer already tried to institute his arbitration clause on me and I said he could discuss that on a summary judgment motion. Some of the above will stick. I also might include the third-party fi nance company as a defendant. I’ve also mentioned that the complaint will get publicity with regional papers, news outlets and the Internet.

point by point, I thought I d share ers. He also sometime

Atvtcdoil

Thclsusticothenew

ABC Legal Services

Dear Friend,

I’ve got a textbook case of what not to do. A dealer

attempted a conditional “spot delivery” but put

the customer out on a generic installment contract

with no “unwind” language. It also had the dealer

identifi ed as “seller/creditor.” The third-party fi nance

company refused the deal and reassigned it to the

dealer. The dealer then forcefully repossessed the

vehicle six days before the fi rst payment was due.

The vehicle was titled in the customer’s name, with

the lienholder shown as the third-party fi nance

company. That means the dealer wasn’t even the

correct repossessing party. I’ve talked with the

regional manager who said the customer agreed to

settle (duress and coercion … it was either take the

dealer’s offer or walk).

I’ve already told them my civil complaint starts at

false imprisonment (they blocked in her car), assault

and battery (they tried to let the air out of the tires

while she was in the car), conversion (they took her

FI0911legal.indd 42FI0911legal.indd 42 8/25/11 4:10:39 PM8/25/11 4:10:39 PM

FI0411uds.indd 1 3/23/11 4:27:37 PMFI0911legal.indd 43FI0911legal.indd 43 8/25/11 4:10:41 PM8/25/11 4:10:41 PM

Bottomliners

BOOTH420

��'HPR�D�UHYROXWLRQDU\�QHZ�GHDOHUVKLS�WUDLQLQJ�VROXWLRQ�:LQ�3UL]HV��L3DGV

��9DFDWLRQ�IRU��

��*ROI�3DFNDJHV

��*LYHDZD\V

��HPDLO��HQWHU�JUDQG�SUL]H�GUDZLQJ�SIUDQNV#XQLWHGFDUFDUH�FRP

ZZZ�8QLWHG&DU&DUH�FRP


JM&A Offers Short-Term Coverage Plan JM&A GROUP HAS LAUNCHED TERM

Care Select, a new plan designed for leases and short-term vehicle own-ers. The new program offers pre-mium mechanical failure protection on most mechanical components, as well as wear-and-tear coverage on items such as brake pads, batteries and headlamps. The product will be available to dealers through Fidelity Warranty Services Inc., according to the company. For more information, visit www.jmagroup.com.

VisionMenu Now Offers PRU Reporting

VISION MENU INC.

now offers a new reporting tool that will make a strong case for why a menu should be used. The new feature equips the company’s Vision-

Menu Plus and Vision Report offerings. It is designed to track a dealership’s dollars per retail unit when a menu is and isn’t used, and the percentage of menus and disclosures that are printed. For more information, visit www.visionmenupro.com.

Universal Offers VSC Financing for GWC DealersGWC WARRANTY DEALERS NOW

have an alternative fi nancing op-tion for customers who don’t qual-ify to have their service contract included in their vehicle fi nancing. Called The Zero Plan, the new offering was developed through a partnership between GWC and Universal Lenders LLC. It offers interest-free fi nancing on GWC service contracts and can be used to fi nance other ancillary products. For more information, visit www.the-zero-plan.com.

DealerTrack to Support Dodd-Frank ComplianceDEALERTRACK HAS ADDED NEW

functionality to its DealerTrack Performance Suite that is designed to help dealers comply with the Dodd-Frank Wall Street Reform Act and Consumer Protection Act. Both laws became effective on July 21, 2011. The enhancements are available at no additional charge to dealerships on the DealerTrack credit application network, ac-cording to the company. For more information, visit www.dealertrack.com/compliance.

Product Feature

MPi Offers Vehicle Inspection Mobile AppMPI HAS RELEASED A NEW VEHICLE

inspection program designed to work on an iPhone or iPod touch. Billed as a sales tool, EDGE Mobile is designed to allow service advi-sors to perform a walk-around inspection before the repair order has been entered into the dealer-ship management system. It also provides service advisors with access to a list of recommended services and repairs the customer

declined on prior visits. The app offers three best practice inspec-tion templates, one of which is de-signed to help advisors note any dents or dings when a vehicle is dropped off, according to MPi. For more information, visit www.mpi-edge.com.

FI0911bottom.indd 44FI0911bottom.indd 44 8/25/11 3:58:09 PM8/25/11 3:58:09 PM

http://www.jmagroup.com

http://www.visionmenupro.com

http://www.visionmenupro.com

http://www.the-zero-plan.com

http://www.the-zero-plan.com

http://www.dealertrack

http://www.mpi-edge.com




Contact IAS Sales at 800-346-6469 x8989 or www.iasdirect.com for more information.

We’ve Got it All Right Here.

STOPPiecing Together your Aftermarket Product Portfolio.

F&I Software:IAS also offers world-class technology solutions that create

D�VHQVLEOH�DQG�SURÛWDEOH�WXUQ�NH\�DSSURDFK�WR�),�

F&I Products:,$6�RIIHUV�WKH�KLJKHVW�TXDOLW\�),�SURGXFWV�LQ�WKH�LQGXVWU\�DQG�EDFNV�WKHP�XS

ZLWK�WKH�ÛQHVW�TXDOLW\�DGPLQLVWUDWLRQ�DQG�FODLPV�WKDW�H[FHHG�LQGXVWU\�VWDQGDUGV��

6HH�DOO�WKDW�,$6�KDV�WR�RIIHU�DW�WKH�),�,QGXVWU\�6XPPLW�%RRWK��DQG�ÛQG�RXW�KRZ�\RX�FRXOG�ZLQ�DQ�L3DG��RU�0RWRUROD�;RRP�

,$6�RIIHUV�FRPSHWLWLYHO\�SULFHG��EHVW�LQ�FODVV�),�SURGXFWV�and software - all fully insured and eligible for reinsurance.

FI0911bottom.indd 45FI0911bottom.indd 45 8/25/11 3:58:12 PM8/25/11 3:58:12 PM


Products


As part of our team you will enjoy:• Outstanding earnings

potential

• The opportunity to shape a rewarding future with a stable, growing leader in the Industry

• Paid vacations and holidays

• Full-featured benefits including medical/dental/vision/life insurance, deferred compensation and retirement plans

You should enjoy motivating others to excel, be able to

travel extensively during the initial phase, and be willing to relocate. After the initial phase, you will be responsible for managing and growing your own territory.

If you are driven to succeed and want the opportunity to take the fast-track to career satisfaction, please apply online at www.jmfamily.com. Click on the careers home-page and search for the F&I Specialist opening.

DO YOU WANT TO CHANGE YOUR

CAREER PATH?CAREER PATH?

F&I SpecialistDistrict & RegionalManager Positions

F&I Specialist LEADING TO District & Regional Manager Positions

FI0611jma_cls.indd 1 5/18/11 8:41:50 AM

Established 1984

I’m Dave Mathews, President & CEO of UCC.

Over 27 years, I have built a company of value.

My experienced team will help your agency with:

��3URVSHFWLQJ��3HUIRUPLQJ�'HDOHUVKLS�$VVHVVPHQWV

��'HDOHUVKLS�(GXFDWLRQ�DQG�7UDLQLQJ��&XVWRPL]LQJ�D�SURJUDP

Vehicle Service Contracts ��Prepaid Maintenance ��Theft Deterrent

www.UnitedCarCare.com/dealeragent.html

1-800-571-6412

FI0611chemetch_cls.indd 1 5/18/11 8:05:38 AM

Get Connected!F&I and Showroom readers are among the nation’s best-informed automotive

sales and fi nance professionals.

FI07-02.11

To advertise in the next issue of F&I and Showroom, contact David Gesualdo at 727.947.4027 or [email protected].

FI07-02getconnect.indd 1 7/1/11 9:34:52 AM

FI0911index.indd 46FI0911index.indd 46 8/25/11 4:09:28 PM8/25/11 4:09:28 PM

http://www.jmfamily.com

http://www.UnitedCarCare.com/dealeragent.html



Allstate Dealer Services 904-992-6185 allstatedealerservices.com 13American Financial & Automotive Services 800-967-3633 afasinc.com C4AUL Corp. 800-826-3207 aulcorp.com 15CARLAW Auto Dealer Suite 877-464-8326 counselorlibrary.com 47Charter Warranty 877-404-6823 saveadeal.com 35Chase • chase.com 17Chem Etch Manufacturing Inc. 877-564-2565 chemetchmfg.com 46CNA National 800-345-0191, ext. 720 cnanational.com C2Dealerlink 800-890-8850 DealerLink.us 23Friendly Finance Corp. 800-872-2877 friendlyfi nancecorp.com 39GSFS Group 713-580-3023 [email protected] 27Innovative Aftermarket Systems (IAS) 800-346-6469, ext. 8989 smartdealerproducts.com 3, 45JM&A Group 800-553-7146 jmagroup.com 46NAC (National Auto Care Corp.) 800-548-1875 nacsolution.com 7NADA Convention & Expo • nadaconventionandexpo.org 37National Automotive Experts 800-810-8859 nationalautomotiveexperts.com 9Protective 800-794-5491 protectiveassetprotection.com 5Reahard & Associates Inc. 866-REAHARD go-reahard.com 1Resource Automotive 312-560-9182 thewarrantygroup.com/automotive 24-25Ristken Software Services 800-368-9680 ristken.com C3RoadVantage 855-762-8268 roadvantage.com 19Safe-Guard 800-742-7896 safe-guardproducts.com 31TD Auto Finance 800-200-1513 tdafdealer.com 11United Car Care 800-571-6412 unitedcarcare.com 44, 46United Development Systems Inc. (UDS) 800-282-1154 UDSDealerServices.com 43Universal Warranty Corp. 248-263-4498 universalwarranty.com 33Warrantech 800-723-1154 warrantech.com/auto 21Wise F&I 800-849-1080 WiseFandI.com 29Ziegler Super Systems 800-726-0510 ZieglerSuperSystems.com 41

we are.

FI0411hudco.indd 1 3/28/11 2:30:36 PM

Ad Index

FI0911index.indd 47FI0911index.indd 47 8/25/11 4:09:30 PM8/25/11 4:09:30 PM



Mad Marv

Last month, it was the dreaded ‘Line 5’ call. Now, our in-the-trenches columnist ponders the dynamics of rehashing deals and enhancing back-end approvals. By Marv Eleazer

Nothing irritates me more than

a lender that won’t bend its

guidelines when an exception

is needed to deliver a vehicle. Even

more irritating is when a customer

wants a back-end product and the

lender won’t budge.

Over the years, I have taken my

frustration out on more than a few

reps and lender buyers over this is-

sue. I’ve thrown their contracts in

the dumpster, cursed them on the

phone and banished them from my

store. It’s true; my pride has gotten

the best of me over the years. In fact,

I’m amazed I haven’t completely

alienated some of the people I’ve

taken to task. Then again, the cool

name the editor gave my column

wouldn’t work as well if I had been

any other way.

So, why did I behave so badly?

Well, I was trained to believe that

strong-arming lenders was the only

way to get what I wanted. I guess I

felt that the louder and more obnox-

ious I was, the faster buyers would

give me what I wanted — even if it

was just to get me off the phone.

The truth is that my ranting and

raving only showed that I failed to un-

derstand my lender’s business model.

So, let’s make sure that doesn’t hap-

pen to you.

Guidelines vs. Rules: Let’s be clear,

guidelines aren’t the same as rules.

It’s imperative that you know the dif-

ference before I explain what each

term means to an F&I manager.

See, guidelines are stated points a

lender believes — based on its inter-

nal analysis — must be reached for

a loan to achieve its intended profi t

yields. Guidelines typically cover

loan term, book value limitations,

back-end product allowances and

monthly payment caps, among oth-

ers. They can be stretched, bent and

even trumped.

Rules, on the other hand, are non-

negotiable. No amount of shouting

will change them. We’re talking

about hard-and-fast loan limits, such

as vehicle age and type, miles, mini-

mum amount fi nanced, back-end

product price caps or minimum in-

come requirements.

The reason guidelines and rules

exist is so the lender can expect a

reasonable return on its investment

while maintaining good loan perfor-

mance. There’s no way a lender can

remain in business if it caved to every

demand, so don’t expect exceptions

on every deal.

Back-End Exceptions: Every lender

has varying tolerance levels, so make

it your business to know each lender

individually. And as I wrote last

month, you must pick your battles

when asking for back-end excep-

tions. They should be used wisely and

prudently.

You also have to remember that,

even within a lending institution,

opinions on the business vary. And

that’s why supervisors are important.

If you truly believe you have a viable

deal and the buyer isn’t budging, give

his or her boss a call. It could save

the deal.

Rehashing a Callback: When re-

hashing, it’s critical that you return to

the table with something you didn’t

have before, such as more cash down

or a vehicle that’s a better fi t with

the lender’s program. Remember,

we can’t assemble an F&I presenta-

tion until the lender and dealer have

agreed to an acceptable deal struc-

ture, so it’s vitally important you

learn the various lender guidelines.

The key is to be sensible and ap-

proach the buyer with good reasons

why they should buy the deal. That’s

why I’ve created the following six

keys to rehashing a deal:

■ Be familiar with the lender’s

guidelines and rules before calling to

rehash.

■ Be familiar with the customer’s

situation.

■ Be sure there isn’t any more cash

or trade equity.

■ Be sure the customer’s monthly

debt-to-income ratio is within the

lender’s guidelines.

■ Be sure there is no co-signer.

■ Be sure there isn’t any more in-

come.

The truth is, sometimes a simple re-

quest is all it takes. Captives like Ford

Motor Credit rely heavily on payment,

so you can often get an increased pay-

ment call from them simply by asking

for it. The lesson there is, never take

the lender’s initial callback as gospel.

Pick up the phone and ask!

Look, whether you think so or not,

your buyers aren’t looking for every

reason to turn down your deals. In

fact, it’s quite the opposite. They have

quotas to meet, too, so give them ev-

ery reason to believe your deal is a

buyable one.

Marv Eleazer is the fi nance manager at

Langdale Ford in Valdosta, Ga. E-mail

him at [email protected].

Be the Buyer

FI0911madmarv.indd 48FI0911madmarv.indd 48 8/25/11 4:11:43 PM8/25/11 4:11:43 PM


Solved.

Technology exists to solve problems.But to solve a problem, you must first understand it.

Visit us at the F&I Conference, Booth #111

To see our Platformsin action, scan this code with your smartphone.

Download your free QR Reader from your mobile App store.

FI0911madmarv.indd 993FI0911madmarv.indd 993 8/25/11 4:11:43 PM8/25/11 4:11:43 PM

COMMITMENTThe American Bald Eagle, once paired, remain together for life.

Just like the eagle, American Financial & Automotive Services, Inc. develops a lasting partnership.

t Team of veteran automotive agents

t Continuous in-dealership development

t Proper product mix to generate revenue

t Dealer participation programs to fuel the dealership

MasterTech Vehicle Protection ProgramAutomotive Training Academy | Panoptic® Insurance


f&i and showroom september 2011

Documents

indd 991fi0911cover

indd 992fi0911cover

indd 1fi0911cover

pmcontents2 fi

class fi products

fi training fi0911cna

highestquality fi products

fi industry summit booth