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YOUR CONNECTION TO ONTARIO’S USED CAR INDUSTRYTHE ONTARIO UCDAVOLUME 7, ISSUE 1THE OFFICIAL MAGAZINE OF THE USED CAR DEALERS ASSOCIATION OF ONTARIOPLUS DEALER PROFILE: Right Drive Inc. /24> INSIDE:WRITING EFFECTIVE JOB POSTINGS /34 TURNOVER BLUES /39 WINTER 2019THEONTARIODEALER.COMComing soon to your screens!Will you be among the first to enhance your results? This fall, Desjardins will be launching a unique online platform with the following features: • Dashboards for revealing business opportunities • Calculators for optimizing your credit files • Online training to increase your efficiency • And much more! Speak to your Business Development Advisor this fall to2find out how toDEALER get your privileged access. | THE ONTARIOTHE ONTARIO UCDAIN THIS ISSUEVOLUME 7, ISSUE 1Winter 2019 USED CAR DEALERS ASSOCIATION OF ONTARIO 230 Norseman Street, Toronto, ON M8Z 2R4 Tel: 416.231.2600 Toll Free: 1.800.268.2598 web@ucda.orgFEATURED STORIES Your Dashboar dTotal Product456000SalesDo You KnowonTorontoInformati210CategoriesConsumers210 TotalBy Lori StrausProducts70003501278 78300Reach% % Amazon240001435160 80Amazon0Statistic78% 12%4253%Total GraphPartner24%78%250 %200 150 100Amazon50 0 AmazonTotal consum American Publication Mail Agreement #41890516Marketing Getting Tired? By Angela WestONTARIO DEALER is published by Laservision Graphics Ltd. four times a year.21130 Industry Street, Unit 36, North York, ON M6M 5G3Writing Effective Job Posting By Lori StrausEDITOR Gina Monaco Tel: 1.647.344.9300 or 1.289.456.4617 gina@ontariodealer.com34ADVERTISING SALESTurnover BluesTerry Coster Direct: 416.360.0797 Office: 647.344.9300by Angela WestPHOTOGRAPHY39photosbypierce.comEXIT05 07 09 11 17 19 24 28 32 42 44The Driver’s Seat Warren BarnardEditor’s Note Gina MonacoMember’s Corner Bob PierceThe Law Matters Jim HamiltonTrends Chris ChaseTech Talk Angela WestDealer Profile Rhonda PayneBest Practices The Common Lawyer Justin M. JakublakOld Car Detective Bill SherkLine of Credit Angela WestDESIGN thrillhousestudios.comCONTRIBUTORS Chris Chase, Rhonda Payne, Bill Sherk, Lori Straus, Angela West, David Miller. If you are interested in having your personal opinion heard, contact the editor at gina@ontariodealer.comThe publisher of The Ontario Dealer reserves the right to turn down any advertising or content submitted to it. The Used Car Dealers Association of Ontario and the publisher accept no responsibility for claims or statements made by advertisers in this publication or by the independent authors of articles appearing in this publication. All statements and opinions appearing in this publication are those of the writers themselves and are not to be construed as reflecting the position or endorsement of the Used Car Dealers Association of Ontario or the publisher.VOLUME 7, ISSUE 1 | 3ALL-IN PRICE ADVERTISING It’s putting the fun and excitement back into car-buying … and, IT’S THE LAW.omvic.on.caTHE DRIVER’S SEAT Knowing What You Need to Know With support from OMVIC and the Automotive Business School of Canada at Georgian College, the UCDA and Wye Management have developed a new Dealership Management Certification Program. Unlike the OMVIC certification course, this program is designed for currently registered dealers and salespeople. Its focus is on management … both for an individual currently involved in the management side of a dealership, or someone aspiring to become a manager.By Warren Barnard, Executive Director, UCDAWELL, HOPEFULLY WE’RE OVER THE HUMP of what’s turned out to have beena pretty frigid and snowy winter to start 2019. Let me start by wishing a belated Happy New Year to all our readers!One of the themes for this issue of The Ontario Dealer is getting educated to know what you need to know and familiarizing yourself with and following best practices. In a larger sense, education has become a buzz word in the industry these days. It has long been a priority of the UCDA. The UCDA pioneered industry education in the mid-1990s with our Green and Red education courses for dealers and salespeople, respectively. Mandatory education has been required for entry into the industry since 1999. The UCDA has taught the OMVIC certification course in class for the last four years. We now have 4 instructors and offer five or more classes per month. Classes are often booked solid a month or more in advance.Compliance certification has long been a feather in the cap in many regulated industries and professions. Many skilled trades, for example, offer various certification upgrades.could serve to point the salesperson back in the right direction. At the end of each module, he or she would need to answer a few review questions. If a question were to be answered incorrectly, the salesperson would be referred back to the section of the course material that provides the correct answer and allowed to re-submit an answer until they get it right. No one would fail. No one would lose their licence.The course would serve to remind salespeople about things like disclosure requirements and the importance of following best practices. This type of course would also be able to introduce and explain any new requirements that Continuing education is the likely next step for salespeople in our industry. When may have come into effect since the salesperson had last completed a course. it comes, it will be delivered in an onWe already promote “Buy with line format of some sort. Right now, the automotive sales business is one of very few Confidence” to consumers when purchasing from a UCDA member dealer. regulated professions that do not already Education and certification would deliver have some type of continuing education a stronger image of professionalism. requirement. The program need not require the completion of a formal test or exam, but could take the form of a simple refresher course on an on-line platform. I can see the day where a salesperson will complete an on-line refresher in order to renew their sales licence. This would not have to involve lengthy reading of course material or an all or nothing test that you must pass in order to avoid losing your licence.Anyway, that’s for some time in the future.An ongoing education refresher could consist of several modules which the salesperson would complete on-line. It’s common to slip into bad habits and start taking shortcuts in completing paperwork or doing proper appraisals. The refresherLine of Credit – Is It Worth It?For now, here are some of the stories you’ll enjoy in this issue of The Ontario Dealer: ■ Get Educated! Do You Know what you need to know? Best Practices - Get your sales team on the same pageMarketing Getting Tired? Writing Effective Job AdsFeel free to contact me at w.barnard@, anytime.VOLUME 7, ISSUE 1 | 5EDITOR’S NOTE Could Self-Driving Cars Ease Traffic Issues? as they normally would in rush hour traffic. The video showed that the vehicles ended up driving in a stop and go pattern. The cars race around one side of the track, only to get caught in the traffic jam on the other side of the track. Then unbeknownst to the drivers, a selfdriving car, with artificial intelligence, was introduced, and the pattern changed.By Gina Monaco, EditorEVER WONDERED WHY, WHEN YOU’RE DRIVING along the freeway and, for noreason, in some lanes, cars start to slow down? And in other lanes cars just sail through. I was interested in understanding why when I was commuting from Hamilton to Toronto for a time last year. It’s what experts call a “phantom” traffic jam – I was getting stuck because of the way people drive. According to traffic researcher Dan Work, “small disturbances from one driver get magnified by the driver behind. Pretty soon it’s speed up, slow down, speed up, slow down.” He took the concept one step further with a driving test. He had 22 cars drive in a circle on a test track. Drivers were asked to driveThe car was programmed to smooth the flow of traffic and the human drivers responded to the steady speed. As the self-driving car moved more smoothly, so did all the other cars. The self-driving car was able to monitor the speed of the other cars, the ones who were driving too fast and the ones who were driving too slowly, and found the average speed. This is the magic traffic-calming speed. Humans can’t seem to figure it out but artificial intelligence can.There’s also an energy savings component -- mixing regular humandriven vehicles with one self-driving car in a controlled setting, reduced fuel consumption by 40 per cent. That’s pretty amazing when you think about it. And the fuel savings is not just for the self-driving car, but for all the other cars that are in the traffic flow. Whether you like it or not, some level of automation is coming to a roadway near you. The technology is already available as an optional feature in some vehicles in the US. These systems use an advanced version of cruise control that allows you to set the amount of space between your car and the one ahead. Researchers say that can help keep you driving more smoothly - and benefit everyone around you. If you’ve ever driven on Ontario’s highways during rush hours, then you know that something has to be done – this just might be the answer. ■Traffic researchers at the Department of Energy’s Lawrence Berkeley National Laboratory in California have been using computer modeling to simulate different traffic scenarios to test what self-driving cars can do to improve traffic. The computer models show that selfdriving cars can figure out, on their own, how to improve efficiency when cars are merging on to a road or moving through an uncontrolled intersection.VOLUME 7, ISSUE 1 | 7canadianblackbook.comLocal Market Insight Proprietary Industry DataCross-Device SyncVehicle Appraisal ToolEasy to UseFree Online ListingsExperience the new CBB Connect: Your end-to-end remarketing solution Easy to use• Proven CBB data & format • VIN scanner & keyboard • Capture vehicle and appraisal data quickly and accurately • Instantly synced across platformsProprietary Data• Real-time market specific wholesale, trade-in and retail values • Retail Listing Data • Integrated JD Power PIN data*Local Market Insight• Local market retail pricing comparison report • Customized profit and cost calculator • Creates transparent trade-in processVehicle Appraisal Tool• Easy-to-follow appraisal process • Comprehensive sharable appraisal report • Archive appraisals for future recall or additional inputsFor additional information and sales support please contact: Yves Varin, National Director, Business Development 905.413.7626 office 514.444.2886 mobile *Available to franchised dealersTMConnectTMConnectMEMBER’S CORNER The IN and OUT DealBy Bob Pierce Member Services DirectorYOUR CUSTOMER HAS A REALLY SWEET CAR. The neighbour knows he has itand wants in. Your customer wants a newer car from you and knows you won’t offer anywhere near what the neighbour will give…in cash. But, your customer wants the tax credit for the trade-in. What to do? Oh yeah! Let’s do an “in and out”.Another term for this is a “convenience deal” and this practice has been around since cars were taxed…. But, let’s fast forward to this century and take a look at how this practice goes wrong under today’s regulated industry. First, everything your customer said about the car to get the neighbourto buy it, every representation, disclosure or pedigree about the car will be your responsibility. If, in fact, it is found to be untrue, you are on the hook.The term “in and out deal” is slang that is best forgotten by the Industry. There are no circumstances that should change the process of buying and re-selling vehicles.When the car goes through your books and you become the seller, everything is on you. The most problematic issue is that you sold a “certified” vehicle but you didn’t do the safety. Your customer had a relative or friend that did it and they overlooked a couple of things to save some money.No manager, finance manager, sales person or owner can or should change the process just because the customer has arranged the sale of their vehicle, wants the tax reduction and wants retail for their trade. There is nothing in it for the dealer.Second, you aren’t making any money. You have to give your customer the same amount in trade as he/she has agreed that the neighbour will pay retail for the car. So far, has anything that you have read been good for the dealer? The example I am using to write this article was a deal involving a 2014 Corvette with 14,500 km on it. Apparently the customer was going through a nasty divorce, and he had to sell his toy.I've seen these deals go sour so many times in the last 20 years. Most often the new owner of the trade-in comes back because the vehicle isn’t what they thought it was, it needed a lot of repairs, has had undisclosed damage and the customer you were bending over backwards for, is nowhere to be found. The only consistent thing in these “convenience deals” is…..the dealer pays. ■The sales person and the floor manager were doing “everything” to make the seller and the new buyer happy. No appraisal on the toy, no inspection, no searches and someone else did the safety. The bill of sale was as clean as could be and everyone was happy…….except the ex-wife and coowner of the Vette.VOLUME 7, ISSUE 1 | 9Cyber-breach or a common virus – no one is immune By Philomena Comerford, President & CEO Baird MacGregor Insurance Brokers LP | Hargraft Schofield LPA CYBER SECURITY MISHAP couldhappen to just about any business. On November 1, 2018, federal mandatory breach notification came into effect, putting the onus on all Canadian businesses to report any breach of your customer, staff or any other third party’s personally identifiable information. As businesses become more dependent on technology, cyber privacy exposure is a growing concern, especially for dealers who deal with a large amount of personal information gathered in a sales transaction. Mainstream media is riddled with stories of cyber breaches, network extortion, and social engineering fraud. The Cyber Security Readiness of Canadian Organizations - 2018 SCALAR Security Study, reports that the annual cost to recover from a cyber breach averages $3.7 million in direct and indirect costs per organization. SCALAR noted in its study10 | THE ONTARIO DEALERthat Canadian organizations reported an average of 455 attacks in 2017; more than one a day. Suffice it to say, if you are hearing about cyber security disasters every day in the news, you ought to be protecting your dealership with cyber privacy insurance. Two thirds of small businesses that experience an uninsured cyber breach do not survive. Not only are there direct financial costs of cyber privacy claims to your dealership, but there is also a risk of third-party costs. With a well-crafted cyber security insurance policy in place, your dealership can have ready access to the insurer’s forensic cyber security experts, breach notification services, legal advice and access to restoration contractors. Your business could be exposed by something as simple as an unwitting employee opening a virus-infected link that spreads throughout the dealership network; or losing a laptop or smart phone on public transit, increasing the risk of exposing sensitive customer or employee data. Phishing and/or other electronic scams are becoming increasingly common. These risks can be insured under a cyber privacy policy. Cyber privacy coverage has not traditionally been part of dealership coverage. However, business ownerswho add cyber privacy insurance to their insurance program will sleep better at night knowing they are well covered in the event of a cyber-privacy claim. In addition to insurance, dealers should focus on developing cyber security internal protocols, employee cyber security training, and an incident response plan. Statistics on data breaches investigated in the Verizon Data Breach Investigations Report indicated that 31% of breaches involved companies with fewer than 100 employees, 78% of cyber thieves employed techniques classified as ‘low’ or ‘very low’ difficulty, 75% of attacks were untargeted and opportunistic and 66% of breaches took months or longer to be discovered. Data destruction, virus file corruption, extortion threats, unauthorized access, firewall and network security attacks, loss of income and security breach expenses can be staggering. It can become a dealer’s worst nightmare to learn their business has been hit with an uninsured cyber-event. This awful predicament can be avoided by adding cyber insurance to your insurance program. The time for a ‘vaccination’ is before the ‘virus’ strikes not after. No one is ‘immune’. ■THE LAW MATTERS Should What Happens in Vegas Stay There?By Jim Hamilton Legal Services Director WHAT FOLLOWS MIGHT LOOK LIKE A BIT OF A RANT, and I don’t want to appearalarmist, but we are becoming victim to our own data and the sky is falling! Well maybe not, but still …As consumers we produce millions (billions?) of points of data every day in countless ways, from our shopping choices, to the online searches we do, to the calls we make on our cell phones. We create data in other ways too, ways that many people may not fully appreciate. When we drive our vehicle, when we have an accident, when we go to a body shop for estimates or repairs, when we make an insurance claim, we are creating data. Companies are collecting this data and monetizing it on a massive and ever increasing scale. I’m not aware of anyone questioning who owns this data. It seems to be accepted wisdom that the company collecting it owns it, but do they? If it’s my car, is it not my data?This is not to say that huge benefits haven’t been realized from the compiling of these data points into organized and useable forms so that I can simply search (for a fee) online using the VIN of a car I want to buy and find out if it might have been in an accident, had an estimate, a police repair or an insurance claim in relation to the damage. I can find out quite a bit about a vehicle without leaving my desk if I want, and that’s much different than the lay of the land even 20 years ago. That’s a good thing. But. You knew that word was coming didn’t you? The first concern here has always been interpretation. If I search a vehicle and I get a response that says “police reported incident 2013, $0 dollar amount” what am I to make of that? Is it a “red flag” or a “red herring”? Am I better informed than when I paid $40 to find this out? Who explains this mountain of data to me? In the meantime, I may have so much information I’m paralyzed to act for fear of making the wrong choice, not fear of missing out (FOMO) but fear of messing up (FOMU)! Data collection science, if I can call it that, does not stand still. As I mentioned, it has become monetized and as soon as that happens, companies will continuously seek to push the envelope into new uncharted regions; potentially darker areas that should raise concerns for us all. Recently, word out of Las Vegas, breathlessly reported in automotive news circles, is that Audi announced at a J.D.Power Automotive Marketing conference that in 2019 they will unleash upon the world their first “all digital” vehicle. Just to share with you what that means, in case I’m not the only one who didn’t know, is that this little gem will send data back to Audi about every aspect of my driving experience. Audi will know virtually every aspect of the vehicle’s function, more than 800 data points every minute … but wait … there’s more! The car will also “know” and report on my travel destinations, the load weights I carry, the time I spend at various places and so on. My car will know more about me than I do. And so will Audi. Supposedly this data will be used for the noble purpose of creating
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