Fast Track Your Dealership with Document Management Software

By Jeff Frankel

As one of the most highly regulated industries in the country, automotive dealers and service companies are burdened with an overwhelming amount of paperwork - from managing customer deal jackets, vendor files, inventory and parts delivery, to safely and accurately handling employee records, accounting files and service orders - not to mention stringent audit and inspection requirements, FTC Privacy Rules and ISO compliance. 

But there is a better way to efficiently and securely store all the necessary paperwork while maintaining regulatory compliance: Document Management Solutions. Document Management  Solutions are sweeping the auto industry for good reason. Systems have progressed from simple scanning and archiving to business process automation. And that’s changing the way the automotive industry works – reducing the reliance on paper systems and delivering ROI with cost savings, greater efficiency, and improved customer service.

So, why invest in Document Management Software? Here are a few solid reasons:

Efficiently Store, Access & Route Documents
Gone are the days of yellowing files crammed in file cabinets. With Document Management Software, all business critical documents like repair orders and histories, customer service invoices and credit applications, warranty records and manufacturer documentation can be scanned into the electronic system then indexed, archived and stored indefinitely (and deleted in accordance with a retention schedule).  Using automated workflow documents can be routed to the right person and location automatically – ensuring timely processing of invoices, consistent notification of policies and streamlining approvals and signatures.  All documents – regardless of age or source, can be stored for access anytime, anywhere. Time saved on paperwork can be time better spent on improving operations and making sure customers are being attended. 

Quickly & Securely Retrieve Files

Unlike paper files, document management systems manage data in a secure, central repository that is easily searchable via a web-based interface on any internet–enabled device. Documents are current so all employees are working with the same information.  With real-time visibility, employees no longer need to leave the bay or front desk to search for paperwork – creating efficiencies and labor cost savings, as well as the space and archival storage savings, which can add up to thousands per year.

Maintain Regulatory Compliance

Auto dealerships need to securely retain sensitive customer data like financial records, driver’s licenses and applications. With permission settings, access is granted to only those with the security settings to do so – ensuring data is protected. Audit trails are automatically created without having to store paper copies in multiple locations.  Businesses can also easily apply and automatically enforce document retention policies, including document freezes or auto-destroy capabilities.

Streamline Operations

Advanced analytic and reporting capabilities ensure managers are apprised of performance in all areas – from finance and operations to quality control and customer satisfaction.  Managers can instantly access key information and collaborate on the go via mobile devices.  By integrating document management software with current invoicing, AP/Payroll and dealer management systems, dealers can eliminate the time consuming duplication of work and reduce costly financial and regulatory errors.

Improve Customer Service

Instantly access a customer’s automotive history from any front desk, back office or in-shop computer or internet-enabled mobile device to improve customer wait times and increase the accuracy of information for mechanics, salespeople and customer support reps. For multi-site dealerships and service organizations, instant access across all physical locations gives your business up-to-the-minute information about a customer’s entire record – ensuring prompt response times and consistency across your entire enterprise.

The time for the automotive industry to reap the benefits of document management software is now. From sales and service to parts, inventory, accounting and customer service – the answer lies in better management of the increasing piles of paperwork that are taking up time and tying you down.

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Fast Track Your Dealership with Document Management Software
Fast Track Your Dealership with Document Management Software

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NADA: Used-Car Prices Will Fall, but Gradually

By Jonathan Banks

Is a sharp correction in used-vehicle prices imminent? The National Automobile Dealers Association expects used-vehicle prices will indeed start to fall—but gradually, not all at once.

After the Great Recession, a sharp decrease in new-vehicle sales greatly reduced the supply of late-model used vehicles. At the same time, price-conscious consumers opted for more affordable used vehicles rather than new vehicles. These two factors helped lift used-vehicle prices by 17% from 2007 to 2013, according to NADA. Prices have grown another 2% so far this year to an all-time high of $16,560.

Now, an improving economy and increased employment have brought new-vehicle sales back up to pre-recession levels, which in turn has increased the supply of late-model used vehicles. Ultimately the additional volume of used vehicles and an increasingly competitive new-vehicle market – both in terms of pricing and consumer demand – will decrease used-vehicle prices.

But there are many reasons why such a correction in used-vehicle prices will happen gradually. First, while the used-vehicle supply is recovering, it’s being done at a steady pace. This means that associated pressure will also come into play incrementally over time and not in one massive wave.

Second, economic growth and an improving employment situation will unlock demand for both new- and used-vehicle buyers. Certainly, a stronger financial position will continue to see many consumers shift back to the new-vehicle market. But it will also support demand for used vehicles—particularly among hourly-wage and part-time workers.

Third, the used-car landscape is dramatically different today than it was in 2007. Dealerships have bolstered the used-vehicle world with increased staff, advertising, software and infrastructure all designed to make the used-vehicle department as much a part of the business as the new-vehicle department. (Large dealer groups like Sonic and Asbury are even opening standalone used-car dealerships.) True, this is partly based on the lack of new-vehicle demand during the financial crisis, but there is also a much longer, more stable trend underlying this as well: the dramatic increase in the quality and reliability of vehicles—coupled with the success of manufacturer Certified Pre-Owned programs—has blurred the lines between a new vehicle and a used vehicle in the minds of consumers.

All these factors greatly reduce the risk of an impending collapse in used-vehicle prices. To be sure, automaker actions will play a key role in determining how far prices will fall in the coming years. The current level of incentive spending is as high as it’s been since 2010. With North American production scheduled to increase 9 percent through 2017, this raises the potential for incentive spending to grow even further if new-vehicle sales don’t live up to expectations. But while incentives likely will continue to rise, NADA doesn’t expect spending (and cash discounts in particular, or the form of incentive with the most direct and immediate impact on used-vehicle prices) to return to the destructive levels of the last decade—at least in the near-term.

Taking current market trends into consideration, NADA expects used-vehicle prices to finish the year roughly on par with 2013, before dropping by 3.5 percent to 4 percent in 2015 and 2016. Notable, yes, but even with the cumulative 8 percent decline factored in, prices will still be well above levels recorded in the decade and half leading up to the last recession.

 

Jonathan Banks is executive automotive analyst for the NADA Used Car Guide.

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NADA: Used-Car Prices Will Fall, but Gradually
NADA: Used-Car Prices Will Fall, but Gradually

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China Said to Consider Relaxing Rules for Car Dealers

By Bloomberg News

Chinese authorities are considering relaxing restrictions on car dealers so they would be able to sell vehicles from multiple brands in the same store, people familiar with the matter said.

The Ministry of Commerce, responsible for regulation governing auto sales, met with dealers and carmakers last week to discuss changes to the rules, three people said, asking not to be identified as the talks were private. The government is also considering allowing parallel imports -- the practice of shipping cars without the authorization of the brand owner -- into China, one of the people said.

The proposed changes may tilt the balance of power away from automakers, which can prevent dealers from selling products made by rivals and dictate which cars are sold where. The move could also be a boon for China Grand Automotive Services Co. and other dealers in the country by giving them greater flexibility in choosing the cars they sell.

“This would untie dealers, allow them to do business in a more flexible way and help boost their profitability,” said Han Weiqi, an automotive analyst with CSC International Holdings Ltd. in Shanghai. “It will make the industry more competitive and ultimately benefit consumers with lower vehicle prices and maintenance costs.”

2005 Rules

Wuhu Yaxia Automobile Corp. (002607) and Pang DA Automobile Trade Co. (601258), two Chinese auto dealers, rose the most in two weeks in Shenzhen and Shanghai trading.

The Commerce Ministry didn’t reply to faxed questions from Bloomberg News. Dealers including China Grand Auto and Lentuo International Inc. (LAS:US) didn’t respond to e-mails seeking comment. General Motors Co. (GM:US) and Volkswagen AG, the two biggest foreign automakers in China, didn’t respond to queries. Neither did SAIC Motor Corp. (600104), the country’s biggest automaker.

According to China’s 2005 Enforcement Measures on Administration of Automobile Brands Sales, dealers can only sell cars after getting authorized to do so by the vehicle maker. Additionally, the rule puts automakers in charge of setting business forecasts, dealer locations and standards for setting up stores.

The government is also looking into adding provisions that would prevent automakers from forcing dealers to take on inventory or sell a specific number of vehicles for them, two of the people said.

The move adds to the regulatory risks faced by global carmakers in the world’s largest auto market recently. Antitrust investigations since last year have prompted groups representing U.S. and European companies to voice concerns that the Chinese government is targeting foreign businesses.

China has repeatedly rejected such claims, with Premier Li Keqiang saying yesterday that local companies are the targets of about 90 percent of anti-monopoly probes in the country.

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China Said to Consider Relaxing Rules for Car Dealers
China Said to Consider Relaxing Rules for Car Dealers

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F1 legend Nigel Mansell to Open New Mitsubishi Dealership

By Dave Brown

FORMULA ONE legend Nigel Mansell is taking the driving seat for a new team – Mitsubishi Motors in the UK.

The former World Champion will open a Mitsubishi franchise at his family-run dealership on Jersey. The new showroom and service centre, which will be managed by his son Leo, will open for business on September 16.

Nigel, who is chairman of The Mansell Collection dealership, which opened in St Helier in 2013, said: ‘Our dealership has gone from strength to strength and the time is right to get a franchise on board. We wanted a brand that crossed a lot of boundaries of motoring and with Mitsubishi there’s something for everyone.

‘The most exciting thing for me is how great the Mitsubishi product is. I have been involved with motorsport all my life and now we have an incredible opportunity to be blessed with selling these vehicles.

‘I know from Formula One that you must not leave any stone unturned, so we will make sure the customer gets the care and respect they absolutely deserve. It’s a very exciting time for us.’

The dealership also houses The Nigel Mansell Story – a museum displaying his trophies and some of his race-winning cars, including the Williams FW14B in which he won the world championship in 1992.

Nigel will take an active role and will be handing over the keys to customers when he is on the island. Leo, himself a former racing driver, is managing director at the dealership, which employs 14 people.

Leo said: ‘Mitsubishi is a perfect fit for us. The range of vehicles excites me and this is a great opportunity. Having the museum at the dealership is a real asset and it’s been a far bigger success than we imagined.’

He added: ‘It’s great working with family. We are eager to show the Mitsubishi range to the island. Jersey will be surprised by what they get from a Mitsubishi.’

While it was his daring overtaking manoeuvres and exciting style that won him enormous adulation from fans, these days Nigel and his team are focused on delivering excellent customer service.

Lance Bradley, managing director of Mitsubishi Motors in the UK, said: ‘It says much about Mitsubishi Motors’ current and upcoming products, and our plans for the brand in the UK, that Nigel and Leo have chosen to join us, because there are a lot of brands that would have loved to have them. Their vision is one of an incredible level of service for the customer and that aligns perfectly with what we do. We’re absolutely delighted to be working with them.’

Mitsubishi was the fastest-growing mainstream car brand last year and sales in 2014 are equally impressive – up by 36 per cent.

To arrange a test drive at The Mansell Collection call 01534 880606 or go to www.themansellcollection.co.uk.

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F1 legend Nigel Mansell to open new Mitsubishi dealership
F1 legend Nigel Mansell to open new Mitsubishi dealership

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Owners of 8 N.J. Dealerships Reach $1.8M Settlement For Deceptive Practices

By: Admin

The New Jersey Division of Consumer Affairs has reached a settlement of $1.8 million, plus consumer restitution, from eight auto dealerships and their owners. The settlement resolves an investigation into alleged deceptive sales tactics at the dealerships.

Carmelo Giuffre and Ignazio Giuffre are accused of failing to disclose existing mechanical defects or past damage to used cars; charging for supplemental warranties and other costly “after-sale items” without customers’ consent; and failing to honor the negotiated or advertised prices for vehicles.

The settlement includes Route 22 Toyota, Route 22 Honda, Route 22 Nissan, and Route 22 Kia, all located in Hillside, as well as Hackettstown Honda, Hudson Honda, Freehold Hyundai, and Freehold Chrysler Jeep. All eight dealerships are owned by Carmelo and Ignazio Giuffre.

“This settlement is a tremendous success for the consumers who were affected by the alleged deceptive sales tactics,” Acting Attorney General John J. Hoffman said. “The consequences, including a civil penalty of $1.8 million, are particularly appropriate in light of the fact that the owners of these dealerships allegedly violated an earlier settlement in which they had promised not to engage in such practices.”

The State alleged that actions by the dealerships directly violated a prior settlement that Carmelo and Igazio Giuffre reached with the state in 1999. That agreement was related to similar consumer complaints received by the state regarding the dealership's practices.

The Division of Consumer Affairs received complaints from numerous consumers who documented a host of allegations against these dealerships. In addition to bait-and-switch tactics and add-on sales without consent, consumers alleged that the dealerships failed to refund deposits in a timely manner after consumers either canceled sales or were denied financing; advertised cars without including required information such as vehicle identification numbers, thus preventing consumers from being able to check the vehicle’s history of damage and use; and failed to provide consumers with motor vehicle titles and registrations in a timely manner.

“Buying a new or used vehicle can be an intimidating process, especially for consumers who lack the ability to independently learn about a used car’s condition or history before making a decision,” Division of Consumer Affairs Acting Director Steve Lee said. “Our state laws protect all consumers by ensuring they have access to all relevant information when buying a motor vehicle. This settlement is intended to ensure that these dealerships will not again violate our laws or deceive potential customers.”

In February 1999, Carmelo and Ignazio Giuffre, as well as Route 22 Toyota, Route 22 Honda, and Route 22 Nissan entered into a settlement in which the defendants agreed to pay $450,000, including $250,000 as a compensatory fund for consumers, to settle similar complaints by consumers.

The new settlement requires a payment of $1.8 million, which includes $1,733,059 in civil penalties and $66,941 to reimburse the state’s investigative costs and attorneys’ fees.

In addition to that payment, the defendants must work to resolve the complaints of 45 consumers who documented their allegations with the Division of Consumer Affairs.

Additionally, under the settlement, the defendants must, at their own cost, hire a state-approved compliance monitor for two years. The monitor will oversee the defendants’ compliance with all applicable state and federal laws, rules, and regulations, and with the defendants’ own internal policies and procedures; will review the defendants’ policies and procedures and make any recommended changes; will facilitate the resolution of additional consumer complaints; and will provide written quarterly reports to the Division of Consumer Affairs.

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Resource: 
Owners of 8 N.J. Dealerships Reach $1.8M Settlement For Deceptive Practices
Owners of 8 N.J. Dealerships Reach $1.8M Settlement For Deceptive Practices

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