The Ontario Dealer - Volume 7 Issue 3

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YOUR CONNECTION TO ONTARIO’S USED CAR INDUSTRYTHE ONTARIO UCDAVOLUME 7, ISSUE 3THE OFFICIAL MAGAZINE OF THE USED CAR DEALERS ASSOCIATION OF ONTARIOPLUS DEALER PROFILE: Heffner Lexus Toyota /24> INSIDE:SPOTLIGHT SERIES NAPA /34 WHATS UP WITH WARRANTIES /44 SUMMER 2019THEONTARIODEALER.COMConvenient. Accessible. A dynamic platform at your fingertips soon.Stay tuned on the launch of this unique tool that includes: • Dashboards to optimize your performance and implement strategies • Financing scenarios calculators • Online training modules to increase your efficiency • Access to important news Get in touch with your Desjardins advisor to discover how to obtain your privileged access2 | THE ONTARIO DEALERTHE ONTARIO UCDAIN THIS ISSUEVOLUME 7, ISSUE 3Summer 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 The ROI of Search Engine Optimization By Angela Publication Mail Agreement #41890516Ontario Cars By Angela WestONTARIO DEALER is published by Laservision Graphics Ltd. four times a year.15130 Industry Street, Unit 36, North York, ON M6M 5G3Spotlight Series: NAPA By Rhonda PayneEDITOR Gina Monaco Tel: 1.647.344.9300 or 1.289.456.4617 gina@ontariodealer.com34ADVERTISING SALESWhats Up With WarrantiesTerry Coster Direct: 416.360.0797 Office: 647.344.9300by Barbara LehtiniemiPHOTOGRAPHY44photosbypierce.com05 07 09 11 18 20 24 28 32 38 42The Driver’s Seat Warren BarnardEditor’s Note Gina MonacoMember’s Corner Bob PierceThe Law Matters Jim HamiltonTrends Chris ChaseTech Talk Angela WestDealer Profile Lori StrausGet More From Your DMS Chris Chase The Common Lawyer Justin M. JakubiakDigital Marketing Matt McDonaldOld Car Detective Bill SherkDESIGN thrillhousestudios.comCONTRIBUTORS Chris Chase, Ronda Payne, Bill Sherk, Lori Straus, Angela West, Matt McDonald, Barb Lehtiniemi 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 3 | 3You asked. OMVIC delivered. The Help for Dealers Video Series and Educational Resources In response to a survey, more than 3300 dealers and salespeople told OMVIC they wanted to learn more about: •All-in price advertising•How to handle contract cancellation•Disclosing collision repairs•Disclosing vehicle condition andVicneeded repairs •Disclosing negative equity on bills of saleAnd they said they’d like the information via video and interactive tools. OMVIC listened.Check it Out Meet Vic, host of the OMVIC Help for Dealers video series. These short videos and the downloadable toolkit will assist dealers and salespeople better understand and comply with the Motor Vehicle Dealers Act.Visit and take advantage of these free resources.4 | THE ONTARIO DEALER“Fairness and professionalism are good for the consumer, the industry and your business”THE DRIVER’S SEAT New Technology Leads the Way Still, those drops need to be balanced against the fact that overall sales of both new and used vehicles have been at or near record levels for the last five years.By Warren Barnard, Executive Director, UCDAAS WE ENJOY WHAT ’S LEFT of our shortOntario summer, some are concerned that storm clouds may be building on the horizon.Just like the towering clouds that bring summer downpours that can temporarily cool off a hot, humid August afternoon, there’s talk of economic storm clouds that may cool off the economy. Economic news has continued to be mostly positive of late. The overall economy remains hot, yet we’ve seen a steady cooling off in new car sales for almost a year and a half now. June saw the 16th straight monthly drop in terms of year over year numbers. And some are predicting that used sales will suffer the same fate. I’ve heard from more than a few members, that June was a particularly tough month for used sales.Our industry, which is often said to be slow to change and adapt to new trends, has, I think, shown great resiliency in meeting consumer expectations when it comes to purchasing a vehicle. The industry has generally accepted the fact that the sales process is now very much driven by the consumer’s love for social media, online research and shopping, digital reviews and new technology. These are what drive the consumer experience when searching for and deciding on which vehicle to purchase. Dealers who have recognized what the consumer wants and can give it to them have thrived and will continue to excel in today’s hyper-competitive market. Dealers who don’t adapt quickly will struggle as the industry becomes ever more digitized. Perhaps the best news for the industry’s future is that, despite many predictions to the contrary, tech-loving millennials (currently between 25 and 42 years of age) still love cars and continue to purchase them, especially tech heavymodels. Sales figures show that the oft-predicted demise of the consumerowned automobile has clearly been exaggerated. Older millennials are now approaching their peak buying years, and while they may value tech features and utilize ridesharing services more than previousgenerations, they still need and want their own wheels! So, with all this in mind, New Technology, for both consumers and dealers, is the focus of this issue of The Ontario Dealer. Here are some of the topics in this issue that I’m sure you’ll enjoy reading about:New Tech Roundup High Touch, High Tech: Get More from your DMS  What’s new in Warranties   Digital Marketing – the great equalizer. How to compete with the big boys   The rise of texting as a means of communication – get on board  Spotlight on NAPA – explaining the program ABCs – why aren’t you in it?  The Return on SEO  Keep an eye out for those economic storm clouds, but don’t fret over them too much. They will come and go. There are plenty of potential customers out there and they are not drying up anytime soon. Hope you enjoy this issue of The Ontario Dealer and the remainder of summer! Feel free to contact me at, anytime. ■VOLUME 7, ISSUE 3 | 5give your customers the best in audio entertainment. With over 140 channels of unparalleled entertainment, the SiriusXM All Access package has something for everyone.YOUR ALL ACCESS TRIAL INCLUDES 300+ CHANNELS: Premium Channels24/7 Artist Channels – Commercial freeDownload SiriusXM wherever life takes youBy giving your customers an All Access trial, they’ll receive coast-to-coast coverage of unlimited entertainment, PLUS they can listen online, on the App, or on their Smart TV. SiriusXM has a sound for every moment that will amplify life in the car and beyond.© 2019 SiriusXM Canada Inc. “SiriusXM,” the SiriusXM logo, channel names and logos are trademarks of Sirius XM Radio Inc. and are used under license. All other trademarks, service marks, images and logos are property of their respective owners and are displayed with permission. © 2019 NFL Properties LLC. All NFL-related trademarks are trademarks of the National Football League. Major League Baseball trademarks and copyrights are used with permission of Major League Baseball Properties, Inc. Visit Games subject to availability and change and may not include all Spring Training games. NASCAR® is a registered trademark of the National Association for Stock Car Auto Racing, Inc. PGA TOUR and the Swinging Golfer design are trademarks of PGA TOUR, Inc. and used with permission. The Beatles logo is a registered trademark of © Apple Corps 2019 and is used under license. Elvis Presley™ © 2019 ABG EPE IP LLC. Apple®, iPhone®, iPod®, iPod touch®, iPad® and iTunes® are registered trademarks of Apple Inc. Apple TV® is a registered trademark of Apple Inc. Android is a trademark of Google LLC. Amazon, Kindle, Echo, Alexa, Dash, Fire and all related logos are trademarks of Inc., or its affiliates. SONOS, PLAY:1, PLAY:3, PLAY:5, PLAYBAR, BRIDGE, SUB and all other Sonos product names and slogans are trademarks or registered trademarks of Sonos Inc. SONOS Reg. U.S. Pat. & Tm Off. All rights reserved.6 | THE ONTARIO DEALEREDITOR’S NOTE The Better Than Selling PrincipleBy Gina Monaco, EditorI recently attended a conference focusing how to build better relationships with customers. Although it was geared to another industry, there were some takeaways I thought could apply to the auto industry. Many of you may already know much of this, but I think it’s always good to be reminded of what we really do, as salespeople. There are three key points to business success that salespeople need to understand. The most important goal is to create and keep customers. While our primary job is to sell, that transactional approach may be short-sighted. Making sales creates short-term dollars while creating customers creates long-term dollars.There’s a big difference between selling and helping people buy. That difference is attitude.very best for your employer and your employer’s customers, then take action to contribute where you can.Traditional “selling” can be quite manipulative. It assumes the following, “Let’s take what we have and talk someone into buying it.” If we take the opposite approach, then the statement changes to, “Let’s find out what the customer wants or needs and see if we can match it with what we have. And, if we don’t have it, maybe we can find it.” If we can’t then – and this may be tough for some – “Let’s send him to someone who can help and ask to serve the customer in the future.” Selling creates a sale but helping people buy creates a customer.Make helping the customer the top priority in your job. There may be a tendency to look at a customer with just dollar signs in your head. This doesn’t work in the long term. While sales quotas are important, they are a means to an end. And that end is to create and keep customers.People love to buy but hate to be sold. Focus on what your customers need and want, then help them buy what’s best for them, and make them feel good about it. This approach is better than selling. This is equally important for everyone who works, whether or not in sales. If you’re working in a larger dealership as a receptionist, or in the service department, for example, you may not have direct contact during the sales process but the dealership’s customers are actually paying your salary, so anything you can do to improve your employer’s products and services helps everyone.So, try starting your day off by asking yourself, “How can I be of greater help to my customers?” Keep a notebook handy and when you have a new idea, write it down. Get others at work to do the same thing. You could even make a contest out of it, with prizes for those who come up with the best new ideas for helping customers. There’s a saying that business is a lot like tennis – those who don’t serve well, end up losing. ■After all, you’d like to continue to have a job and earn money, even get a raise. One way to guarantee that is to want theVOLUME 7, ISSUE 3 | 7Members-Only Health PlanFor over 12 years, the UCDA Benefits Plan has provided leading health & dental insurance coverage to Ontario member companies. The stability and value that owners need. The comprehensive plan design that employees love. Call us today 1-866-476-8722 or visit UCDAbenefits.comApply Online, by Fax, or Email! 1-866-476-8722 8 | THE ONTARIO DEALERMEMBER’S CORNER A Million Dollar Lesson the minimum public liability is $35,000 dollars and rental car companies often carry the minimum coverage … in order to be able to sell you more. California Law Requiring Insurance  In California, the following minimum liability insurance is required for private passenger vehicles: By Bob Pierce Member Services DirectorJUST WHEN YOU THOUGHT insurancecoverage rules couldn’t get any crazier……. read this.Big or small, every member has insurance for their vehicles, plates and building and a lot of you include family members and others “named” on your policy. Insurance rules are pretty much consistent across Canada. Some provinces have government programs, but most are private company coverage. Ontario has a “no fault” program, which is probably the wrong name for it. The compulsory minimum for Ontario is $200,000, but almost everyone carries at least a million dollars, if not more. ( auto-insurance/mandatory-coverage) Then there is the U.S. and that’s a totally different story. A lot of us travel frequently in the U.S. for business and pleasure and often we rent cars. In California, for example,• $15,000 for injury/death to one person. (Also known as bodily injury liability) • $30,000 for injury/death to more than one person • $5,000 for damage to property. (Also known as product damage liability) California:United-States:Car.Rental. Insurance.Requirements.html Saying NO to extra coverage can have consequences Recently, a member was in California on holiday and rented a car. He declined the extra insurance coverage. He was a named insured on the family business insurance policy and he did not have his own personal auto policy. Consider what might happen if you or a family member are in the U.S. on vacation, rent a vehicle and purchase only the minimum limits for the state.Under the laws of most states, the at-fault driver’s policy (your Ontario garage policy) could be next in line. Lawyers for the injured party make a Demand for Payment directly from the Driver/Renter. In the California case that demand was for one million dollars (U.S.) Since cases in the U.S. can have very high awards your policy would have to respond for its full limits. Demands for Payments have short timelines for response and penalties for failure to respond, so decisions need to be made quickly. What happens when the Demand is for an amount higher than your policy limit? Your Insurance Company will ALWAYS make the demanded payment only up to your limit. You could be faced with personal liability. Now, you have a problem! You have an at-fault accident, the maximum limits are “paid” against your insurance policy and depending on your claims history you could have serious insurability issues for your business at time of renewal. One thing is for sure … your rates will be negatively affected. Things you need to do: 1) Talk to your broker about additional coverage. 2) Pay the additional rental car coverage for your staff and family members traveling in the U.S. Always purchase the higher limit – not the state minimum. 3) Confirm any possible credit card coverage prior to leaving Canada.Unfortunately, you or the family member are involved in an at-fault accident involving a resident of the state who also carries the state minimum limit. The injuries to the U.S. driver are catastrophic and their automobile policy and the rental … Better safe than really sorry ….. car policy are grossly inadequate.■VOLUME 7, ISSUE 3 | 9N IM PR AN EW O D VE D !The new and improved CBB Connect. Your all-in-one remarketing tool.With more features that make it even easier to appraise, value and re-market your inventory. New Desktop and Mobile Application Enhancements: • Add and delete favourite vehicles to make searching and recalling data even easier • Seamlessly share vehicle valuations and a customer-facing worksheet via email • Add and see all notes specific to a vehicle in one record • Copy and paste in the VIN field for even greater accuracyDesktop-only Enhancements: • Switch between values, appraisals and residual values at the touch of a button • Download and print valuations and a customer-facing worksheetMobile-only Enhancements: To make the mobile app even better we’ve added: • A new icon layout that lets you easily navigate between values, appraisals, residual values and the listing market view • A large font option to make reading data easier • New horizontal value table views to make it easier to see the data you want • A simple “swipe away” function to delete a vehicle from your list • Copy and paste in the VIN field for even easier vehicle data inputCBB Connect subscribers can seamlessly update to these great new features by switching update settings in the control panel to “automatic”. Not a CBB Connect subscriber yet?Find out why CBB Connect is the complete all-in-one remarketing tool. Contact Sales at or call 1-800-562-3150 today.TMConnectConnecTHE LAW MATTERS Amendments to Repair and Storage Liens Act (“RSLA”) and Consumer Protection Act (“CPA”) Authorization A provider is required to get authorization from the consumer or their representative and keep proof of same. Invoice Requirements Tow and storage providers are required to deliver a written invoice containing details as required by the legislation.By Jim HamiltonAccess to Vehicle Providers have to give a consumer whose vehicle is towed or stored, or a person acting on their behalf, access to the vehicle without charge to remove all property contained in the vehicle.Legal Services Director EFFECTIVE LOBBY EFFORTS BY ONTARIO insurance companies resulted in sweeping amendments to the RSLA and CPA as they apply to the towing and service industry. The majority of these changes took effect over two years ago. However, many of these changes are still not well known. CPA Regulations Disclosure Towing and storage providers are required to give consumers: • The name under which the provider carries on business; • The telephone number and address of the provider, and any other ways that the consumer can contact the provider, such as by fax, email or through a website; • A current statement of rates; and • The address of the location where the provider will take the vehicle. In addition, a provider must disclose if it has a direct or indirect interest in a location or facility where vehicles may be towed for repair, storage or appraisal.Note: These amendments above do not apply in circumstances where a tow and storage provider provides tow and storage services as a result of the vehicle being impounded, detained under the authority of other laws, or otherwise lawfully seized. Prohibitions Tow and storage providers are not allowed to recommend salvage yards, auto body repair shops, or storage yards unless they are asked by the consumer to do so. The provider has to give a written statement as to any benefits the provider receives for such a referral. A provider is not allowed to charge an amount for services that is greater than what the provider usually charges, unless there is an agreement in place. Identifiers on Tow Trucks and at Business Premises Providers are required to clearly post on both sides of every tow truck and at business premises that they operate: • The name of the provider’s business; • The telephone number• If applicable, the provider’s municipal licence number. The provider is required to have rates available at all business premises from which they conduct business, and on their website (if one is maintained). RSLA Regulations Fair Value To determine the fair value of the repair the following factors shall be considered and may be included in calculating the fair value amount: • The repairer’s fixed costs, variable costs, direct costs and indirect costs; • The repairer’s profit; and • Other relevant factors. To determine the fair value of storage, or storage and repair, certain factors will continue to be included, such as expenses rela
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