Used Car Manager Headache: Waiting for Reconditioning

Pain Point: Inefficient Reconditioning Processes

Used Car Manager Headache

Resolution: Implement Procedures and Incentives for Timely Reconditioning

Why do some dealerships ignore their dealers’ investments? It happens every day on used-car lots all across the country where trade-ins sit and sit, waiting to be reconditioned. The used-car manager—who needs those vehicles ready for retail because he’s desperate for inventory—just can’t seem to get anyone’s attention. What’s the solution? You’ll find a few in this video.

For more information, download our Streamlining Reconditioning Processes PDF.

Used Vehicle Marketing

Pain Point: Online Expectations Rising

Resolution: More Pictures, Better Descriptions, Video

The market changes fast. If you’re posting just a picture or two of each vehicle on the used-car lot, then the market has passed you by. The leading dealers are showing their inventory from every conceivable angle. They’re also paying more attention to the written description. The video demonstrates where the market is going and how some dealers are staying ahead of the pack.

For more information, download our Used Vehicle Marketing PDF.

Defending Online Reputation

Pain Point: Online Gossip About Your Store Getting Ugly?

Defending Online Reputation

Resolution: Actively Defend Your Reputation Online

What’s the old saying about publicity? Even bad publicity is good, as long as you spell my name right. That may be true for the bad boys and girls of Hollywood fame and misfortune but that’s not the kind of reputation that bodes well for long-term success in the car business. As the video demonstrates, with today’s communication tools available to any disgruntled consumer, it’s important to defend your reputation online.

For more information, download our Online Reputation PDF.

Velocity Management

Pain Point: Are You Measuring the Right Metric for Success?

Velocity Management

Resolution: Focus on Speeding Cash Flow

Everyone wants to grow their business and increase profitability. But are you managing the right metrics to achieve success? You may need to re-think your financial targets in a way that revs up your bottom line. Everyone knows cash is King. But while the King may like to count his cash, turning it over and over — as the video discusses — is what leads to royal profits.

For more information, download our Velocity PDF.

Online Listening Tools

Pain Point: Customers are talking. Are you in the conversation?

Resolution: Online Listening Tools

How long would you stay in business if you disconnected your phones? Stupid question, right? You wouldn’t even consider it. But are you disconnected from a vast majority of current and potential customers in a new and different way? Are you clued into the “chatter” about your store that’s there for anyone with an Internet connection to see? The video shows some easy ways to join the conversation and gather critical information with online listening tools.

For more information, download our Online Listening Tools PDF.

Market Days’ Supply

Pain Point: Are the Profit Police Looking for You?

Resolution: Market Days’ Supply

What goes up must come down. You can’t repeal the law of gravity. The same is true for the “laws” of business. One of the most critical is supply and demand. If you want to get in trouble with the profit police, go ahead and flout the laws of supply and demand. It’s a sure way to handcuff your cash flow and financial success, especially when it comes to stocking used vehicles. The video tells how to enforce the law at your store.

For more information, download our Market Days’ Supply PDF.

In Demand Vehicles

Pain Point: How to Stock Used Vehicles Customers Want

Resolution: Stocking In-Demand Vehicles

Chances are you have someone on staff who fancies himself a used car expert. He’s been a valued employee. He’s been around forever. And, at the drop of a hat or before you can get out your Blackberry, he can tell you the price of a 2002 vehicle with 120,000 miles on it. You know who we’re talking about.

But there’s a problem: Nobody can know it all anymore. The digital revolution has changed how the game is played. Ignore the new rules at your own peril.

As the video below shows, there’s a new way to know and stock the vehicles that your customers want.

For more information, download our In-Demand Vehicles PDF.

Internet Response Time

Pain Point: Boosting Online Success

Resolution: Internet Lead Response Time

Your store managers and employees know how to handle “ups” on the lot. They’ve been doing it for years. There’s a system. And if it didn’t work you’d be out of business by now.

But what about the “ups” who visit your virtual store on the Internet? Are you happy with your online performance? More importantly, are you setting and measuring the proper benchmarks? Are you asking the right questions about your Internet ups and how your staff handles them?

For more information, download our Internet Response Time PDF.

Used Vehicle Turn

Pain Point: ROI: Really Old Inventory or Return On Investment?

Resolution: Used Vehicle Inventory Turn

What does a dealership have in common with the produce section of a supermarket? Both want only fresh inventory.

Brown lettuce and mushy tomatoes are money losers. It’s the same with old inventory on your used car lot. The longer the vehicle sits, the more likely you’ll have to heavily discount it — just to get rid of it.

In the video you’ll learn about how to improve the pace of the “turn” of your used inventory and your return on investment at the same time.

For more information, download our Used Vehicle Turn PDF.

Vehicle Receivables

Pain Point: Cash Clot. Financial Defibrillator Needed.

Resolution: Vehicle Receivables

Clogged arteries slow down blood flow and lead to heart attacks. What’s true for the human body is true for dealerships where the lifeblood of the business is cash.

When a dealership’s financial arteries get clogged that slows the flow of cash into the store and could put the business on life support. Dealers have eight vital signs to monitor their financial health.

The video discusses the dangers posed by one of them and offers a prescription for treatment.

For more information, download our Vehicle Receivables PDF.

Brand Management

Pain Point: Is Your Reputation Getting Hammered Online?

Resolution: Page One Management

Reputation. It takes years and untold amounts of money to build a solid reputation. But only seconds to lose it on the Internet.

Brand damage usually refers to a product in crisis. But in the case of dealerships, the brand is the dealer’s name. It’s easy for dissatisfied and disgruntled consumers to go online and attack dealers. Nobody’s perfect and everyone makes mistakes but dealers put their dealerships in peril if they don’t defend their reputations online.

The video describes some of the challenges and solutions.

For more information, download our Brand Management PDF.

E-Contracting

Pain Point: How to Stop Chasing Cash Every Day

Resolution: E-Contracting

Some of today’s dealerships opened their doors in a bygone era — selling horse-drawn carriages. Unfortunately, some dealers are collecting receivables at about the same pace as the horse and buggy era.

Today, we live in a tweet and text-message world. Failure to quickly collect vehicle receivables leaves many dealers in the frustrating and uncomfortable position of chasing cash every day.

Dealers need to collect at Internet speed, and the video points the way.

For more information, download our Cash Flow E-Contracting PDF.

UNICAP

Pain Point: New IRS Ruling Benefits Dealers

Resolution: UNICAP

The IRS decided that dealers don’t have to capitalize certain costs and can instead “expense them.” In a major victory for car and truck dealers, the IRS has created two safe harbors under its uniform capitalization, UNICAP, methods of accounting. The IRS decision favorably resolves several contentious and costly income tax issues. When some IRS auditors re-interpreted UNICAP 5 years ago, the affected dealers’ tax bill rose more than $100,000.

Watch the video explaining that most dealers will no longer face such exposure under the new IRS ruling.

For more information, download our UNICAP PDF.

Internet Conversions

Pain Point: Website Hits and Misses

Resolution: Internet Conversions

In baseball, a batter can’t just have a good-looking swing. He’s actually got to hit the ball. It’s the same with websites. It may look good. But what is its batting average? Is your site even getting to first base with potential customers? Is it striking out too much? And just as in baseball if a batter is not performing well, the manager makes adjustments. You’re the manager of your Internet team.

Watch the video for an explanation of why you should regularly check your website’s effectiveness.

For more information, download our Internet Conversions PDF.

Contracts in Transit

Pain Point: Cash Flow Giving You a Sinking Feeling?

Resolution: Contracts in Transit

You’re making sales and showing a profit but the bank balance is close to zero or worse! If you’re in choppy financial waters, then somewhere in the store there’s a Bermuda triangle swallowing up cash and threatening to sink the dealership. As captains of the ship, dealers must locate the problem and chart a course to calmer waters.

Watch the video for info on one place to look, and how to navigate around the problem.

For more information, download our Cash Flow Contracts in Transit PDF.

CRM

Pain Point: Boosting Be-Backs and Closing Ratios

Resolution: Good CRM

Dealers have lived the adage, “If at first you don’t succeed, try, try again.” But is your sales department giving up after the first try? Of course, it’s not your policy to give up. But sometimes practices and procedures, or the lack of them, produce the same result. Managers and employees need to know that the store’s success—and their jobs—depend on getting a second chance with people who didn’t buy on their first visit.

Watch the video for an explanation of why Customer Relationship Management is the way you “try, try again.”

For more information, download our CRM PDF.

Used Vehicles Cash Flow

Pain Point: Is Your Cash Stuck in “Park”?

Resolution: Used-Vehicle Cash Flow

Running a dealership would be a lot easier if only your cash moved as fast the vehicles you sell. If only. Unfortunately, some of your cash is going nowhere fast. And some of it is on the fast track to depreciation. Where is it? Stuck in “park,” sitting on your used-car lot.

Used-vehicle sales helped many a dealer survive when new-car sales took a nose dive. But it only takes a few wrong turns for your used-vehicle inventory to put a significant dent in your cash flow.

Check out the video to see if you’re meeting NADA’s inventory guidelines.

For more information, download our Cash Flow Management and Vehicle Inventory PDF.

Risk-Based Pricing

Pain Point: Requirement for Credit Customer Notices

Resolution: Learning to comply with Risk-Based Pricing

Dealership F & I departments have a new federal rule they must comply with effective January 1, 2011. That’s when the new Risk Based Pricing Rule took effect. Congress mandated the rule when it passed the FACT Act in 2003.

The rule is designed to help customers understand the effect that their credit report has on the credit terms they are being offered. That sound simple enough but finding a way to implement the law’s objective in the real world proved to be far more difficult for the two agencies charged with writing the regulations: the Federal Reserve Board and the Federal Trade Commission. NADA suggested the agencies find a manageable way for dealers to comply with the law. And they did.

Watch the “Dealer Deadline” video to learn more about dealership responsibilities under the new rule.

For more information, download our Risk-Based Pricing PDF.

Privacy Notice

Pain Point: Need to Adopt New Model Privacy Notice!

Resolution: For quick, intensive learning, see archived webinar, “Transitioning to the New Model Privacy Notice.”

Privacy law requires dealers to notify consumers about their information-sharing practices and to inform them of their opt-out rights. The FTC and the federal banking agencies have released a new model privacy notice form that makes it easier for consumers to understand how dealers and other financial institutions collect and share information about consumers. The new notice is the only notice that will afford dealers safe harbor protection beginning December 31, 2010.

Watch the video to learn more about the new notice and what’s at stake.

For more information, download our Privacy Notice PDF.

Extended Service Contracts

Pain Point: Low Service Contract Sales

Resolution: Profit-Building Tools and Training from NADA University

Service contracts don’t exactly sell themselves, do they? What dealer wouldn’t want a product that not only makes money today but improves service department profitability and brings customers back to buy their next car? If that sounds to you like something that not only boosts profits but builds a business, you’re right.

But the truth is that even the best products are just opportunities – they never really sell themselves.

Watch the video to discover how a single sale can turn into a profit-rippling wave that surges through your dealership and leads to steady growth in every department.

For more information, download our Extended Service Contracts PDF.