January 6, 2014
Six in Sixty Seconds
INDUSTRY NEWS YOU NEED TO KNOW

auto-dealership Today’s News in Context — Monday, January 6

Deal­er­ship Employ­ees Win & Lose with Afford­able Care Act

  • Health insur­ance plans for auto deal­er­ships have been canceled
  • Mostly because they don’t com­ply with the Afford­able Care Act
  • Many deal­er­ships to pro­vide annual allowance to pay cost

Get­ting on GM-Approved Rep­u­ta­tion Man­age­ment List is Lucrative

  • GM set a man­date for 4,300 deal­ers to choose approved Rep­u­ta­tion Man­age­ment Vendor
  • Domin­ion and Reputation.com join Cobalt, Dig­i­tal Air Strike & Naked Lime on list

Google, Apple Com­pete for In-Car Dig­i­tal Supremacy

  • Two com­pa­nies seek­ing to take over the Inter­net & sys­tems inside the car
  • Seek to develop an in-car enter­tain­ment & infor­ma­tion sys­tems in the cockpit

Feds Go After Ally to Pay $80M for Dealer Loan Reserve Programs

  • Auto lenders being forced to change the way dealer reserves are set
  • Feds fine Ally $98 M to resolve claims of high inter­est rates to minor­ity buyers

Corn-Based Ethanol Price Sup­port to be Tanked by Congress

  • Con­gress is threat­en­ing to reduce Con­tro­ver­sial Ethanol Sub­sidy Program
  • Most renew­able fuel is ethanol based

Crash­less Com­puter to Turn Deal­ers’ Dig­i­tal Sys­tems Upside Down

  • Com­put­ers now able to learn from their own mis­takes & those who code
  • New com­puter chip can side­step or tol­er­ate errors in a pro­gram not crash
  • Means a new gen­er­a­tion of arti­fi­cial intel­li­gence systems

Be the Smartest Per­son in the Room: get more in-depth (but still fast) run­down of the above-mentioned sto­ries RIGHT HERE.


plache-lacey-425

VIDEO: The New Emerging Consumer

It is time to build a rela­tion­ship of trust between deal­ers and con­sumers. Lacey Plache, Chief Econ­o­mist at Edmunds.com, explains what that means with today’s new emerg­ing consumer.

VIDEO: A Smart Dealer Chat Solution
contact-at-once
  Contact at Once: How It Works
 

Shop­pers now spend hours research­ing future pur­chases on mer­chant web­sites, social media, review sites, online clas­si­fieds — and the list goes on. Con­tact At Once! helps busi­nesses har­ness that net­work so they can go almost every­where their shop­pers go. And they’re ready to engage at a moment’s notice. Watch the video to learn more.

BLOG: Automotive Digestibles
2014
  What’s Going to Be Bothering, Bugging and Bewildering You in 2014?
 

Ten Devel­op­ments that are likely to impact what hap­pens to the Auto­mo­tive Chan­nel & to your deal­er­ship in 2014:

  1. Bit­coin: Some­time in 2014, your deal­er­ship — or one across town — will get paid for a new car by a con­sumer (or a com­pany ) using this new currency.
  2. Not Try­ing Hard Enough: Look for peo­ple like bil­lion­aire Peter Thiel (Face­book) telling us that we can fix all prob­lems if we try hard enough – that what­ever con­fronts us is “emi­nently curable.”
  3. Data Bro­kers: Look for exten­sive action by Con­gress, The Feds, and Data com­pa­nies to become embroiled in a debate and sub­se­quent leg­is­la­tion about pro­tect­ing con­sumer privacy.

READ MORE to see Devel­op­ments 4–10 that are likely to affect you as 2014 unfolds.





Dealer Pain Points
BY NADA UNIVERSITY

Imacon Color Scanner Online Gossip About Your Store Getting Ugly?

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 Hol­ly­wood fame and mis­for­tune but that’s not the kind of rep­u­ta­tion that bodes well for long-term suc­cess in the car business.

Click here to learn to defend your online reputation.

measuring right metric for success Are You Measuring the Right Metric for Success?

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.

Click here to learn more.

mechanic Boosting Service Profitability

You ser­vice the vehi­cles you sell. Every­body gets that. But you have the best trained ser­vice tech­ni­cians in town. They can fix any­thing. Why not let them?

Click here to see a video that show­cases a deal­er­ship that uti­lizes its ser­vice techs tal­ent to the max.

Doing It Right  
THE POWER OF CHAT

Con­tact At Once! has pur­chased Outsell’s Direct  Chat busi­ness and the com­pa­nies have entered into a strate­gic agree­ment to inte­grate Con­tact At Once! live chat soft­ware with Outsell’s Dig­i­tal Engage­ment Plat­form for mutual customers.

Out­sell CEO Mike Wething­ton said that the com­pany decided to spin off its Direct Chat busi­ness so that it could focus on the devel­op­ment of the next gen­er­a­tion of its Software-as-a-Service (SaaS) Dig­i­tal Engage­ment Plat­form, which allows auto­mo­bile man­u­fac­tur­ers, agen­cies, mar­ket­ing asso­ci­a­tions and indi­vid­ual deal­ers to share in the devel­op­ment of brand-consistent, analytics-driven, cross-channel mar­ket­ing programs.

“We feel strongly that chat is an essen­tial part of an auto­mo­tive dealer’s cross-channel arse­nal, and came to the con­clu­sion that we could best serve our clients’ needs by part­ner­ing with the com­pany who is the mar­ket leader,” says Wething­ton.  “Con­tact At Once!‘s strong track record in the indus­try, glow­ing dealer rec­om­men­da­tions and inno­v­a­tive prod­ucts made them the hands-down choice.”

READ MORE

 
 



Build a Better Dealership
SMART INSIGHTS FOR SMART DEALERS

Toyota leasingWhat Could Off-Leasing Boom Mean in 2014?

Leas­ing turned things around for vehi­cle sales three years ago – fueled by low inter­est rates, ris­ing resid­ual val­ues, and sweet deals from automak­ers with lower monthly payments.

Now, more off-lease cus­tomers are start­ing to return to the mar­ket. Automak­ers, deal­ers, and lenders are start­ing to pon­der a few questions.

What does it mean for brand loy­alty and cus­tomer reten­tion? Off-lease cus­tomers tend to be good for reten­tion, but the com­pet­i­tive land­scape is get­ting intense with incen­tives and low-priced monthly pay­ments being promoted.

Gen­eral Motors entered the leas­ing race last month after being away for a long time.

Auto lenders have been soft­en­ing their under­writ­ing stan­dards this year. Leas­ing has been grow­ing in this envi­ron­ment. What if lenders have gone too far?

Click here to read about other issues being con­sid­ered includ­ing early buy­outs and the resid­ual value environment…….

Smart Thinking - Pass It On  
HOW WOLFGANG SUCCEEDED

What does run­ning a restau­rant have to do with run­ning a dealership?

Here’s some advice from Wolf­gang Puck him­self — specif­i­cally, Three Actions that have con­tributed to the suc­cess of the Puck Restaurants:

  1. Talk to Your Cus­tomers – When cus­tomers come to your deal­er­ship, they are com­ing to your “house.” They ulti­mately are going to pay you for a car or ser­vice so reach out for them, and talk and listen.
  2. Stick to What You Know Best — In a deal­er­ship oper­a­tion, your team has to do it all — but  your cus­tomers will tell you if your team does sales or ser­vice or cus­tomer rela­tions well. Mar­ket and sup­port this “specialty.”
  3. Hire Young Peo­ple: Get new ideas and pay atten­tion to what the young peo­ple in your deal­er­ship are telling you. They will tell you what is hap­pen­ing and what you should be doing to gain new cus­tomers – and how to take care of your exist­ing ones.

READ MORE






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