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.


Pain Point: Cash Flow Killers

Resolution: Getting rid of Obsolete Parts

While it’s true that Cash is King, the King’s life is always in mortal danger at auto dealerships. Every department has assassins in the form of practices, processes and procedures — or sometimes sheer poor employee performance — that are cash flow killers.

As every dealer knows, a balance sheet showing a profit doesn’t mean you have cash in the bank. That balance sheet contains eight critical concerns — every one of them as dangerous as a sniper at point-blank range.

Watch the “Cash Flow Killers” video to learn about one place where dealers are vulnerable.

For more information, download our Parts Management PDF.

Selling Service Hours

Pain Point: Perishable Profits

Perishable Profits

Resolution: Sell all Service Hours available

Dealers don’t sell fruits and vegetables but they carry something that’s even more perishable and far more valuable. Tick. Tock. Every second that passes by is a lost opportunity. Tick. Tock. Every lost minute is potential revenue lost forever. Tick Tock.

Dealer perishables don’t smell up a storeroom as crates of spoiled supermarket produce would. But when you take a look at the impact on your bottom line, you’ll want to hold your nose. “Perishable Profits” explains the one place in the dealership where you never get a second chance at a sale.

Watch the video, and learn to hold on to those Service Department profits!

For more information, download our Selling Service Hours 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.

Exception Deviation Report

Pain Point: Stolen Service Profits

Resolution: Exception Deviation Report

The famed bank robber Willie Sutton said he robbed banks because that’s where the money is. If he were going after dealership profitability, his richest target would be your service department. Whether through theft, fraud or simply poor practices and processes, it’s easy for profitability to erode in the service department. But when it happens, it’s a stealth attack. No alarms blare. No one dials 9-1-1. In fact, nobody notices a thing.

Click on the video to learn about a financial alarm that will alert you to trouble.

For more information, download our Exception Deviation PDF.