Better training for your dealership’s F&I teams can improve the department’s profitability — and boost employee retention.

For dealers, the outcomes of customer discussions in their business offices — whether online or in person — have a direct impact on their dealership’s profitability.

So why leave those crucial interactions with your customers to chance?

That’s what many dealerships are doing when they don’t invest enough in training for their F&I Managers and business office teams. “At many dealerships, the customer experience varies dramatically, and can depend on the F&I Manager that a vehicle buyer is dealing with,” said Jake Stacey, Executive Vice President, Sales & Training, LGM Financial Services (LGM) and a frequent speaker at auto industry events. “This lack of consistency in approach and process has a direct impact on profitability.”

To help dealerships improve their performance, LGM developed an entire set of tools, including a comprehensive Performance Enhancement program, facilitated by industry experts.

“It’s designed to elevate the skills and knowledge of F&I professionals,” explained Stacey.

The program is all-encompassing, covering topics such as: financial products, compliance, customer experience, dealership-specific best practices, and even soft-skills, like communication training. In November, the company also announced the official launch of its Financial Services Manager (FSM) Certification Program.

FSM Certification is part of LGM’s broader Learning Journey Program, and consists of a three-phase program designed to empower Financial Services Managers with advanced skills, enhancing dealership performance and customer satisfaction, according to a news release about the new program. “This structured curriculum ensures that professionals excel in their roles, ultimately contributing to the success of their dealership,” said Nathalie Abdallah, Vice President, Sales Effectiveness and Training at LGM.

Each phase of the FSM Certification program focuses on different learning objectives and offers participants the flexibility to access courses online,  through virtual platforms, and  in-person.

If employees aren’t adequately trained, it will impact the experience they are delivering every day to customers. When properly trained, however, they can effortlessly deliver excellent service, address customer questions and provide the right solutions tailored to a customer’s specific needs. This confidence boost can lead directly to more engaged and motivated employees — and improved results in your business office.

“Since implementing LGM’s processes and systems, we’ve seen significant improvement in the performance and efficiency of our business office and a substantial boost in interdepartmental collaboration across our dealership,” said David Deline, General Manager at Port City Kia. “We continue to discover ways that benefit LGM and Port City Kia while providing industry leading protection and peace of mind for our valued customers.”

Pauline Bessada, Financial Services Manager at Bessada Kia also had praise for the performance boost they experienced. “We have been utilizing LGM’s processes and systems for the last two-plus years and have had an impactful improvement in both the efficiency and performance of our business office,” she said. “The tools and training have increased sales, and improved penetration and profitability of the core products. Collaboration among sales and service has improved as a direct result of LGM’s processes as well!”

According to their 2022 Industry Report, a national workforce study released by the Canadian Automobile Dealers Association (CADA) in 2023, the national average annual salary for F&I Managers in 2022 was $152,511 — with the top quartile earning $184,986. 

But despite the good pay, the same study found that annual turnover rates for F&I Managers was 31 per cent and the average tenure for the position was only 5.6 years. In fact, F&I Managers have the third highest turnover rates of all dealership positions, with Sales Consultants being at 43 per cent and Service Advisor / Writer at 39 per cent, according to the CADA study. 

“If employees aren’t properly trained, they can get frustrated and it creates stress for them when they know they aren’t performing as well as they should,” said Stacey, adding that this can contribute to the already high turnover rates for F&I Managers.

Stacey said she is also a big believer in measuring performance and fine-tuning as needed. “Every month our teams conduct a performance review to see what’s working in certain regions or dealerships,” she said.

By sharing that information with dealers, the company can continuously strengthen team performance even after their formal training. “By building a strong team in all areas of your dealership that fully understand the value of all the F&I products you offer, and by measuring your results, you can close the experience gap and deliver better profitability too. That’s a winning formula for dealerships,” said Stacey.

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In every small and large town across Canada, where there’s a need, you’ll find a dealer making a difference.

Whether it’s providing financial assistance, volunteer support or assistance to a charity, organization or association, Canadian dealers are always willing to give back to their communities.

In fact, according to The Bridgespan Group, a global non-profit, 90 per cent of car dealerships keep their donations in the local community to support services and organizations, and more than 65 percent organize staff volunteer opportunities.

Giving to charities is a big part of the ethos of the Myers Automotive Group, the biggest automotive group in Ottawa.

Brothers Harry and Rob Mews were recently asked to pledge $2.5 million towards the construction of the new Ottawa Hospital Civic Hospital and the purchase of equipment.

The brothers had already made $1 million donations twice in the past few years towards local hospitals. The first happened in 2015 for the Acute Care of the Elderly Unit of The Queensway Carleton Hospital Foundation.

The Mews’ parents had volunteered their services there over the years and their father, Hank, made numerous private donations. The second donation was made to the University of Ottawa Heart Institute in 2022 following a successful heart procedure their father underwent in 2017.

“It’s a local business that really depends on the local community and reputation is everything,” said Harry in an interview with Canadian auto dealer. “Some don’t give back as much as others, but for the most part dealers are aligned that way.

Generally speaking the people that work for us are driven locally. That’s the immediate touchpoint for our staff, so it makes sense they feel good about us when we support their local interests.

There’s not too many businesses our size that can do what we do and are still local at the same time.”

One of the big functions of the Kelowna Auto Dealers Association is to give back to the community through fundraisers. From August 1 to September 30, dealers raised $230,000 for B.C.-Cancer Kelowna for a new state-of-the-art systemic cancer therapy suite.

“We do a lot individually to give back to the community and we thought it would be a good opportunity with this need for systemic treatment facility upgrade to come together and do something bigger to really give some decent assistance to get this going,” said KADA President Aaron Fanslau. “This was something we’d never done before of this scale. I thought it was really important to get the group together. There was no minimum donation. We just really wanted to see if we could get together and get some momentum. We were thrilled to overachieve (the original financial target).

“The Kelowna B.C. Cancer Facility treats 20 percent of B.C. residents in all of the Okanagan, so it’s grown quite large and it’s very important. It was built 25 years ago. They are able to administer the treatments, but with very tight conditions. There’s no room for you to bring a support person to you. Once they finish this renovation it will be a first-class experience with individual pods and room to bring people. It’s really going to improve the experience dramatically for people who are going to need it.”

Fanslau, General Manager of Turner Volkswagen, said all of the dealerships in Kelowna are locally-owned and locally-operated, and there is a deep tie-in between Dealer Principals and GMs to the community.

“At the end of the day the least we can do is to give back,” said Fanslau.

Earlier this year, Ryan Finch of the Finch Auto Group in London, personally donated $5 million to St. Joseph’s Health Care. The donation was the largest to support mental health care research in Southwestern Ontario.

“If you’ve got mental health issues you should be able to receive the same treatments as someone who was bleeding badly and needed stitches…and yet mental health still has the stigma around it,” said Finch. “I kind of wanted to stay on the right side of that issue and I want to help the community.”

His company donates to various charities, one of which is the London and Middlesex Humane Society.

“It’s a great cause, one we’re certainly proud to be associated with,” said Finch. “We’ve got all these animals in London that don’t have people to care for them and support and services, so how could you not support such a wonderful cause?”

Jay McKeen, Managing Partner of Jack Carter Auto Group, which has a total of 12 stores collectively in Alberta, B.C. and California, said giving back to charities is something he and his employees embrace.

“The way that I was taught when first starting out in the industry is we’re in the community, we represent the community, our business comes from the community, therefore we need to give back to the community,” said McKeen. “It’s really that simple. We can’t just take by doing business, we have to give back, too. I think it’s just something a lot of us feel is just really important.

“It’s not unique to our dealership group, I know of lots of groups that are heavily involved, and I think that’s great. That real tie to the community is because our business is centred around a specific area.”

Following the Alberta Wildlife fires earlier this year, McKeen decided to donate the proceeds of the sale of four classic cars that were trade-ins, to the Canadian Red Cross. He anticipated $30,000-$40,000 would be raised, which the Red Cross has agreed to split between the Kelowna, Shuswap and Yellowknife fire relief.

“I’d love to brag and tell you that was my idea, but that was an employee-driven idea,” said McKeen. “There were lots of ideas that we bounced around. There weren’t a lot of boots on the ground things we could do, but we could try and raise some money.”

A few years ago following the Humboldt Broncos’ bus tragedy in which 16 people were killed and 13 injured, McKeen devised the idea of donating money for every stick dropped off at the company’s dealerships and anticipated it would amount to a budget of $5,000-$10,000. Through a social media blitz, about 2,000 sticks were collected and the final donation was $55,000. The sticks were donated to The Hockey Foundation for overseas countries promoting hockey and KidSport Society of Calgary for families facing financial barriers.

While McKeen does not have any dealerships in Humboldt or Saskatchewan, he said the tragedy resonated because there’s a lot of people from that province living in Alberta and hockey is popular throughout Canada. He also said many people who have played the sport have travelled to games and tournaments in a bus.

“I think (the tragedy) touched people because they could see it could have been them or their family, so they could really feel the pain those families would have felt,” said McKeen.

These are only a handful of snapshots of dealers who care, but there are thousands of similar stories from Canadian dealers. Canadian auto dealer applauds all of you for the work you do to keep our communities strong.

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Dealers can expect similar demand for new and used vehicles in the months ahead.

As we near the end of the year, it is clear that used vehicles remain the go-to option for many consumers. And yet, new vehicle inventory is expected to continue to move forward in the new year as demand remains, giving dealers a ray of hope for 2024.

In an interview with Canadian auto dealer, Daniel Ross, Canadian Black Books’ Senior Manager of Industry Insights & Residual Value Strategy, said he expects new vehicle inventory and new sales volume to be higher in 2024. On the flip side, he does not see used vehicle supply as sufficient enough to support the demand coming its way.

“We’re probably seeing more of a stagnant or maybe a leveling off of MSRP increases on the new car side. So that might be a better story for new cars as they come back to the market. But used cars, we’ve already had three-plus years of less-than-perfect new car sales and that’s going to infiltrate on the returning vehicles to today’s market — or tomorrow’s market if you will,” said Ross.

He expects this issue will hamper supplies even more, while the used vehicle supply is anticipated to be a smaller portion of the overall volume in the market than it is today. This, in turn, should result in better retention on value and, possibly, still high residual values — particularly in the short term.

“That’s kind of going to illustrate what happens next year in terms of new cars moving forward in sales volume, but still incremental versus used cars being even more hampered on inventory, keeping those prices relatively high,” said Ross.

He suggested that dealers keep an eye on wholesale prices and how used vehicle volume will play out next year. Used vehicle supply is anticipated to worsen before it improves.

Ross also noted that new vehicle sales, lease trade-ins or lease maturities are not coming back to the market nearly in the fashion they used to.

“If a dealer is looking for good used vehicles to fill their lot, it’s going to be tough to do that next year as well. They can rely a little bit more on the new car side of things, but lots of consumers are looking for used vehicles. Two-to-six-year-old vehicles are predominantly what they’re looking for,” he said, adding that the result may create a tougher opportunity to buy, especially in open auctions.

A slow decline is also expected in 2024, though nothing extreme; it will be segment-specific due to changing consumer trends in favour of cars and smaller SUVs. “That’s kind of what I would incentivize dealers to sort of look at more carefully, in terms of their inventory levels and where they want to focus.”

As for electric vehicles, the demand appears to be weakening — slightly. But as EVs remain in the early stages of adoption, Ross said it will be interesting to see how the market fares in 2024, knowing that some key players will be introducing vehicles in certain segments of the Canadian market that are expected to sell well. “So that’ll be good,” said Ross.

The post Sales, trends and predictions for 2024 appeared first on Canadian Auto Dealer.

Garage insurance programs adapt to cover new types of risks and perils dealers now face.

Dealers have enough to worry about today. Changing consumer expectations, managing relations with their OEMs, growing new and used vehicle sales and keeping their teams engaged and productive, just to name a few.

Ensuring they have comprehensive garage insurance in place, that protects them and their business from a wide range of risks, is something that can help ease their minds so they can focus on their businesses.

“It’s not easy being a car dealer,” said Tim Reuss, President and CEO of CADA. “That’s why when we provide programs for our dealer members, like CADA 360 Garage Insurance, we consult broadly with our dealers. The program is managed by a CADA dealership committee to ensure it’s aligned with what dealerships really need.”

For example, the dealer committee and the insurance program managers are currently exploring the impact of electric vehicles in terms of any liability and safety risks that might not yet be fully understood. What’s going to change in your insurance portfolio when you are selling EV products as opposed to ICE vehicles? What are the concerns regarding safety and fires and EV batteries? Is the program right now providing adequate coverage for any emerging risks related to EVs?

“When we meet with our dealer committee, it’s a collaborative effort where trends in the marketplace are discussed.” said Reuss. “We want to get in front of things so that we anticipate what the types of losses could be, and to make sure that the dealers are covered for it as opposed to realizing we have a problem after the unthinkable happens to a particular dealer. That’s the worst thing in the world. Our main concern is how do we protect our dealers from what’s coming down the pipe?”

Those regular meetings are also the place where dealers can bring forward any specific concerns regarding any claims or other issues. “When dealers bring forward an issue, we table it at that committee and then we all come back and talk about what happened, why it happened, and how to fix it,” said Laurie Maher, CADA 360 Program Manager.

It’s this collaborative approach with dealers that has helped make the CADA 360 Garage Insurance program Canada’s preferred garage insurance program, with more than 1,000 dealerships signed on — and an impressive retention rate last year of 94 per cent.

One of the hallmarks of the program is how extensive and flexible the insurance offerings are with flexible deductibles. “CADA 360 Garage Insurance covers everything from shop tools, facilities to business operations,” said Michael Psotka, CADA’s CFO and Director of Member Services.

“Whether you are a large dealership group or a single rooftop, it’s a comprehensive package that can be tailored to suit your needs.”

Derrick Osborn, Vice President, Dealers & Leasing Unit Leader at HUB International, said dealers’ primary concerns are similar, but they do vary depending on what’s happening in the industry. “The number one thing that’s plaguing dealers right now is auto theft,” said Osborn, the approved insurance broker of the CADA 360 Garage Insurance program, who works with Aviva Insurance Company of Canada, one of the country’s largest commercial P&C insurance companies to provide the coverage. “There are so many new threats from cybersecurity and physical security that dealers are increasingly combatting, and our program helps cover those risks,” said Osborn.

Psotka said that when dealers join the program, they receive risk-management tools to help them reduce the risks for the biggest sources of loss including fires, thefts, cyber assaults, vehicle demo accidents, and fraud. “This can lead to lower premiums and deductibles,” said Psotka.

As with all CADA 360 programs, like employee benefits or HR automation, the proceeds from the programs help fund CADA’s advocacy efforts on behalf of dealers across Canada. “You get industry-leading coverage and programs, and in turn help fund our legal and advocacy teams that are working every day to protect dealer interests,” said Psotka.

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Louis-Philippe Ménard, Senior Manager, Consumer Financing Solutions, National Bank of Canada

With a large field staff across Canada, and a focus on staying close with dealer customers, National Bank of Canada is looking to grow its automotive business.

You can’t deliver top notch service that connects with your customers if you aren’t staying extra close to them.

That’s true for car dealers, and also true for their banking partners. “It’s all about relationships,” Louis-Philippe Ménard, Senior Manager, Consumer Financing Solutions, National Bank of Canada. “At the end of the day, dealers want to deal with lenders they know, that have their trust and know their business. That’s why we try to be out there as much as possible.” 

Ménard said to accomplish that goal, the bank built a large field staff spread out across Canada with one team for Québec and the Atlantic, another for Ontario and one for western Canada. Being close to their dealers helps ensure they are positioned to help explain new bank programs and offerings. 

“Dealers in different regions of Canada have different lending needs, and the profile of their customers is also much different,” said Ménard. “Having regional field teams really helps make sure that our programs are right for each market. For example, demand and infrastructure for EVs is variable across the country and as such, incentives or special lending programs will not have the same success across all markets. There is no one size fits all approach.” 

Staying close to dealers and their customers also means the bank can stay abreast of broader trends impacting the auto retail industry, so that they can pivot and adapt as needed.

“Recently, a lot has changed in the economy and in people’s personal financial situations that have to be taken into consideration,” said Ménard. “We try to understand where the market is going to land for the next few years to come. Having a good understanding of that will impact the loan offers, not only from a new vehicle perspective, but also for used.”

To stay connected to the reality on the ground the bank adapts to the environment. Menard said the bank can change the way they structure their loans and terms based on the borrowers’ evolving needs. “At the end of the day, the dealers are the ones sending us the customers, so we want to make sure that we’re working closely with them. In a few years, that customer might be buying another vehicle from the same dealer, and we want to retain our customers.”

Menard said the bank also works hard for their dealers to prove they are an agile partner that can get deals approved and funded quickly. “They want to make the process quick, and we’re there for that. That applies not only to the funding decision but to the disbursement of funds. While we are diligent, we try to be quick and agile. We’re there for them.”

Menard said the bank keeps close tabs on the OEMs and their incentive strategies, and other market factors. “How are all the forces in the ecosystem interacting? That’s mainly what we’re trying to figure out and try to land at the right place for the customer at the end of the day,” he said.

Headquartered in Montréal, Qué., National Bank of Canada was founded in 1859 by a group of Québec City businessmen, and has grown to become Canada’s 6th largest bank with 360+ branches — and is the leading bank in Quebec. They offer a full range of financial services for individuals, businesses, and clients with specific needs, both domestically and internationally. They also offer a wide range of banking and insurance services as well as innovative investment and wealth management solutions.

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Building culture and community is the key to keeping employees engaged.

With employee turnover as high as 30 per cent in Canadian dealerships, it’s more important than ever to build and nurture your dealership’s culture.

Is your dealership a fun place to work? Are you doing events and activities to engage your employees? Are you giving back to your community, and if so do your employees know about it?

“Culture has always been an important part of dealership success,” said Tim Reuss, President and CEO of the Canadian Automobile Dealers Association (CADA). “But for younger employees, it’s a key part of how they evaluate their workplace. These generations want to do more than just go to work, they want to connect and feel like they matter, and are making a difference.”

To that end, the CADA 360 HR Automation platform rolled out a suite of new tools to help support and nurture the culture within your dealership. “Instead of just engaging with your employees when they are hired, fired or retired — you can keep in contact with them throughout their career,” said Michael Stassen, Regional Manager with DealerPILOT, the software that powers the CADA 360 HR Automation platform.

Stassen says the platform’s new Culture Module features allow for things like centralized posting of events, posting and sharing media and photos, commenting and suggestions, and even surveys of employees from within the platform.

“Instead of just engaging with your employees when they are hired, fired or retired — you can keep in contact with them throughout their career.” — Michael Stassen, Regional Manager with DealerPILOT

“It’s kind of like an internal social media platform for sharing content. it’s a great way to stay connected and engaged with existing and new staff,” said Laurie Maher, CADA 360 Program Manager. “We are excited to see how dealership teams start to use these new features built right into CADA 360 HR Automation.”

Michael Psotka, CADA’s CFO and Director of Member Services, said DealerPILOT is CADA’s exclusive partner for HR software, and he is pleased to see more innovation and customizing within the platform to meet the evolving needs of dealerships. “When employees are able to do things like build their own profile within the platform, and can connect to other employees it fosters a sense of team and being part of a work community. These are important tools that help retain people,” he said.

Psotka said the platform already checks all the boxes for what a dealership would require from a highly-automated HR software system such as: employee onboarding, training, vacation requests, inspections, health and safety, record keeping, bio-punching, and HR compliance needs — but these new culture tools will encourage employees to use the software more often to stay on top of their dealership’s activities. “This added visibility will allow people to see what’s happening throughout their organization, or for dealership groups, across their network,” he said.

Dealers also say they like using the platform and interacting with the team behind it. “In all my interactions with the CADA360 HR Automation team, responsiveness and helpfulness has truly set them apart,” said Nancy Little, Corporate Controller from the Boyer Auto Group in Ontario. “Whenever I’ve had a concern or question, the support team consistently goes above and beyond to provide me with the support I need. I strongly believe that it’s in a dealer’s best interest to consider CADA360 HR Automation.”

The best part for dealers, said Psotka, is that by supporting CADA 360 programs and services, the proceeds go to help fund CADA’s advocacy efforts on behalf of dealers across Canada. “You get best-of-breed software and tools, and in turn help fund activities that benefit and protect your business interests. That’s a win-win in my books,” said Psotka.

The platform is fully mobile-enabled, and employees can check for updates on their desktop computers, laptops or phone while at work or home. “This platform was built by dealers, for dealers, and is always evolving based on the feedback from CADA and their dealer members,” said Stassen. “The Culture Module is another example of how we adapt the platform to new business needs.”

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Companies go the extra mile to make sure dealership teams are fully-versed in their products and how to promote them.

Finance and insurance is a key driver of profitability for dealerships, and many are taking advantage of training programs available to their managers to boost that aspect of the business.

Sym-Tech Dealer Services and iA Dealer Services are companies that have robust F&I training programs that are becoming increasingly popular. In fact, Sym-Tech’s training called the Performance Plan has grown so much it was introduced into another province, New Brunswick, in September.

Sym-Tech and iA Dealer Services both offer five-day programs and follow up assistance. Sym-Tech has Performance Centres in Toronto, Montreal and Calgary.

iA Dealer Services’ APEX program is available for in-person training in every province and online.

The objective of both companies is to increase customer retention and grow loyalty with F&I products and services.

“While we provide protection products, we also ensure that we support dealerships with information, tools and development opportunities that will help to promote their dealership, brand and provide the best vehicle ownership experience to their customers.” — Danielle Campbell, Regional Sales Vice President Western Canada, iA Dealer Services

“F&I is a vital part of a dealership’s operations and we are very proud of our protection products,” said iA Dealer Services’ Danielle Campbell, Regional Sales Vice President Western Canada, Ontario and Atlantic. “While we provide protection products, we also ensure that we support dealerships with information, tools and development opportunities that will help to promote their dealership, brand and provide the best vehicle ownership experience to their customers.”

Derek Sloan, President Sym-Tech Dealer Services, said F&I managers who take the training course realize a 90 per cent retention of the process and material trained. He said the reason for this is facilitators use video recording in mock F&I offices that simulate a real customer experience. The facilitators then review these recordings and score the F&I manager for accuracy and improvement.

“Daveplus is flexible and allows different approaches to the customer. It allows for the single point of contact process where the sales representative can handle the customer from beginning to end with the technology and sales process because it’s easier and is more efficient.” — Derek Sloan, President, Sym-Tech Dealer Services

“The training is state-of-the-art because our goal is to have a high level of retention from the F&I manager,” said Sloan, who was hired in 2010, in part to build up the training program. “We train by showing, not by telling. Our approach is more so about the customer journey through the F&I process.”

Following the in-class training, the trainers spend a week with the F&I managers in their office in the dealership and help them take the practical classroom knowledge and put it into real situations with customers. Sloan said because the trainers are OMVIC and AMVIC certified, they can participate in — or completely do — the deals themselves.

“We sit in the chair in the F&I office,” said Sloan. “It impacts the F&I managers in the stores because we’re having a huge impact on them immediately. They get to see the process.”

In addition, the trainers spend one full day each month with the F&I managers to assist in training and development with anything they need. The program is available for as long as the dealership is selling Sym-Tech products.

When a new store opens retaining Sym-Tech products, a Sym-Tech representative will spend two weeks taking all the deals and then switches it back to the F&I manager.

Sym-Tech will soon be launching a variation of its proprietary technology ”dave” which is an acronym for Dealer Automated & Verified E-solutions. It was created in 2012 and features built-in menus that are customized with prescriptive analytics that take the customer’s driving habits and past history and tailors it to their needs. The new iteration, daveplus, was done in partnership with JD Power and Darwin Automotive in the U.S.

“Daveplus is flexible and allows different approaches to the customer,” said Sloan. “It allows for the single point of contact process where the sales representative can handle the customer from beginning to end with the technology and sales process because it’s easier and is more efficient…If you’re a store that wants the journey for the customer to be with one representative throughout the whole process, including F&I, then daveplus allows them to that with ease.”

iA Dealer Services has been an F&I partner to dealerships for 60 years and is one of the largest of its kind in Canada. It provides learning and development services to dealership Financial Service Managers through its Centre of Excellence and APEX.

“Many of our trainers and our sales consultants come from a dealership background, whether it’s sales management or financial services themselves. They have real-life knowledge of the ins and outs of the finance office as well as the dealership.” — Sophie St-Laurent, National Director, Learning and Development, iA Dealer Services

Sophie St-Laurent, iA Dealer Services’ National Director, Learning and Development, said APEX provides those new to the F&I role with tools in presentation, financing processes, turnover etiquette, knowledge in products and compliance regulations. It has interactive role play, job practice and practical exams. There are also regular follow-ups to determine if more assistance can be offered to support the dealership’s F&I objectives.

Of the 150 people that iA Dealer Services has in the field, 23 of them are dedicated specifically to learning, development and training. These trainers, who are based across the country, are able to provide a whole range of learning and development sessions to FSMs, from workshops to customized one-on-one sessions, that provide dealerships with F&I support and that will hone their F&I skills.

St-Laurent said all of the company’s learning and development programs are heavily promoted and attended. “For us it’s a great way to introduce new FSMs to dealerships that require people,” she said. “The goal is to provide them with the necessary information, knowledge, and tools so they can perform to their fullest in their dealership career. Many of our trainers and our sales consultants come from a dealership background, whether it’s sales management or financial services themselves. They have real-life knowledge of the ins and outs of the finance office as well as the dealership.”

She added her company’s product and training pivots from what is required in the market.

“There’s been lots of emphasis on different products post-COVID,” said St-Laurent. “We are listening to the dealers where they want assistance and where they need support.”

“The company is invested heavily in the growing problem of auto theft with an antitheft trackable device called InvisiTrak Locate. It is covertly attached to the vehicle and engineered to be virtually undetectable by thieves and can help in recovery in up to 98 per cent of the cases with law enforcement. It has a 24-7 phone number that can be called to begin the process of recovering the vehicle with local law enforcement authorities.” — Steve Clelland, VP, OEM Partnerships, iA Dealer Services

Steve Clelland, VP, OEM Partnerships, with iA Dealer Services, said his company’s product portfolio is the most comprehensive in the industry, ranging from Extended Warranty, GAP and Replacement Insurance to Appearance protection and Loan Protection.

He said the company is invested heavily in the growing problem of auto theft with an anti-theft trackable device called InvisiTrak Locate. Clelland said it is covertly attached to the vehicle and engineered to be virtually undetectable by thieves and can help in recovery in up to 98 per cent of the cases with law enforcement. It has a 24-7 phone number that can be called to begin the process of recovering the vehicle with local law enforcement authorities.

He said InvisiTrak Locate is the first solution of its kind to function from inside a shipping container and allows authorities to pinpoint the precise container containing the stolen vehicle.

“InvisiTrak Locate offers consumers the best chance for them to recover their vehicle and the greatest value with auto insurers recognizing the recovery device and enabling consumers to benefit,” said Clelland.

The post Dealerships’ training vital for F&I providers appeared first on Canadian Auto Dealer.

From physical threats to cyberthreats, dealerships are facing more risk on all sides. We look at what you can do to help reduce your risk.

Not a single player in the automotive industry, from OEMs to dealers, suppliers, and consumers, has been left untouched when it comes to physical and/or cyber security issues.

Towards the end of July, the Motor Vehicle Retailers of Ontario (MVRO) sent out an urgent notice to its members highlighting the importance of protecting dealership valuables after at least three stores in York Region, Ontario, were broken into.

“Thieves are finding new ways to target our dealer members and we need them to remain ever vigilant to protect their businesses,” said Executive Director Todd Bourgon at the time, in an interview with Canadian auto dealer.

Other dealerships in Mississauga, the Greater Toronto Area, and Brampton were also targeted around the same period. Vehicles and point-of-sale equipment were stolen. Bourgon said the thieves hacked into the POS system, stole money through chargebacks, and gained access to the cash register and keys.

Québec tops all other provinces when it comes to vehicle theft, with special attention given to Montréal. But Toronto is moving up the ranks, as a number of thieves from the French-speaking province now operate out of Ontario.

Data from Équité Association, a not-for-profit organization that supports Canadian property and casualty (P&C) insurers, shows that auto theft is up 48.3 per cent in Ontario, 50 per cent in Québec, 18.3 per cent in Alberta (following years of decline), and 34.5 per cent in Atlantic Canada — all year-over-year.

“Criminals are now taking advantage of the outdated standards,” said Bryan Gast, VP of Investigative Services for Équité Association, in a statement.

A 2023 survey conducted on behalf of the CAA Insurance Company found that a growing number of consumers in Ontario (47 per cent) are “very concerned” about the situation. That figure jumps to 57 per cent when considering respondents living in Toronto and within the GTA.

Some companies have released products to help improve physical security, such as Tag Tracking, an anti-jamming technology supplier. They have an anti-theft system that was designed and manufactured in Canada, and is described by the company as having an estimated deterrent effect of 99.82 per cent. The system is independent of the vehicle’s battery, which makes it more difficult to dismantle.

But physical security is only part of the problem, as cyber threats and attacks are also on the rise — and consumers are taking notice.

TransUnion Canada’s Consumer Pulse study for the second quarter of 2023 found that 80 per cent of respondents have concerns about cyber security, including credit card fraud (51 per cent) and identity theft (49 per cent). In fact, 48 per cent of consumers were targeted by a fraud scheme within a three month period, and 6 per cent fell victim to the same thing.

The most popular fraud schemes that target consumers, based on the report, are vishing — fraudulent phone calls — (46 per cent, up 3 per cent), phishing — fraudulent emails (45 per cent, down 1 per cent), and smishing — fraudulent text messages — (41 per cent). Identity theft (14 per cent) is up 4 per cent.

Most attacks stem from an actual person and relate to emails and other similar types of online communications. “It’s always or almost always how companies get screwed,” said Étienne Parent, Business Development Manager at MicroAge Québec, which offers cyber security services.

“The hackers remain on the client’s network infrastructure for many months. We’re talking about six, eight, 10 months, where the hackers stay inside the company digging, seeing what they are capable of doing, if they can delete the backups or infect the system.”

Once they do this, Parent said the hackers will launch a procedure to encrypt the data. “At this point, it’s a bit like the end. If we realize it at the right time, perfect. If we don’t realize it at the right time, well…”

This is where a number of solutions come in, such as bringing forth a much older backup, turning to insurance or, as some companies will do, paying the ransom in hopes of getting their data back. However, Parent said the latter option is never a certainty, since the company is negotiating with thieves.

Overall, cyber attacks are expensive, time consuming, and result in loss of confidence on the part of the company’s clients and employees. Hackers are also more advanced and modern in their approach now, including in their messaging, which is more in-line with what you would expect from the business or person they are mimicking.

“We always have to keep in mind that every email we open is potentially infected or an attack,” said Parent, adding that within the next 10 years he believes it is almost certain that all businesses in Québec will be attacked at least once. “It’s now a career to be a hacker,” he said.

People need to be on guard. Research released this year from NordPass found that employees of the world’s biggest companies from 31 countries use very poor passwords. They discovered this when exposing 10 of the most commonly used passwords in the automotive sector. Passwords such as 12345 and “password” made the top of the list.

Others used a variation of their company’s email domain.com: an abbreviation of the company’s name, part of the name, or the name combined with other words or symbols. And although NordPass has no data representing auto retailers specifically, they do assume the passwords of dealership employees would not be much different from the ones they presented for the auto sector.

“Same as regular internet users, people working in the automotive industry tend to choose easily-memorable passwords, namely number combinations (e.g., ‘123456’), keyboard sequences (e.g., ‘qwerty’), names (e.g., ‘Tiffany’), and similar,” said Emilija Gaivenytė, PR Manager at NordPass, in response to an email inquiry from Canadian auto dealer. “Based on the research, represented company names or their variations often end up in passwords people use to secure work accounts.”

The issue is not without solutions: creating a more complicated password does not take long, and dealerships can consider a security risk assessment. For example, the New Car Dealers Association of BC (NCDA) said it worked with HUB Insurance to offer a complimentary cyber scan to dealer members in British Columbia. That assessment is an external vulnerability scan, according to Rachel LeGear, Account Manager for Transportation, HUB International Insurance Brokers.

“They effectively ‘see what a hacker would see,’” said LeGear in response to an email inquiry from Canadian auto dealer. “Coalition passively collects external data on your organization’s Internet facing IT infrastructure.” She added that they do not perform active collection of information, including penetration testing against the organization’s networks, without explicit permission.

The NCDA also created a Cybersecurity Toolkit this year: a resource developed for its members in partnership with HUB International and with support from Clyde & Co (Cyber Risk). It contains a set of guidelines to help members manage cyber security strategically, since risk cannot be fully removed.

“The importance of having a plan in place to protect a dealership’s people, property, and profitability is vital and cannot be underestimated,” said the association’s president, Blair Qualey.

Last year, the average ransom payment reached $298,755, according to HUB and Coalition Insurance data.

The post Rise in theft & fraud poses risk to dealerships appeared first on Canadian Auto Dealer.

A solid employee benefits plan can be a competitive advantage in recruiting top talent.

In the battle for talent, dealerships need all the tools at their disposal to attract, recruit and retain their key employees.

That means providing a solid benefits program that is both fiscally responsible for the dealership, but that also offers the coverage and flexibility to meet the needs of today’s employees.

“The overall costs associated with providing a great employee benefits plan is always a key concern for dealers,” said Cindy Robinson, Director, Governance & Plan Management, CADA Employee Life & Health Trust, with the Canadian Automobile Dealers Association. “We are always working to improve the program to ensure it is flexible and allows dealers to create their own benefits offering for their employees at a price point they can afford.”

Robinson said to ensure dealer needs are always at the forefront, they recruit active dealer principals from across the country to serve on the CADA 360 Employee Benefits Dealer Committee which oversees the plan. CADA 360 doesn’t operate to generate profit for the plan; instead, any proceeds are used to fund CADA’s extensive advocacy work on behalf of dealers.

The flexibility of the plan is a huge bonus for dealers. Dealers can choose to add a HCSA, Group Retirement Savings, Critical Illness Coverage, Teladoc (Best Doctors) and Consult + (Virtual Health) to enhance their individual dealership’s plan.

“That’s why our program’s tagline is ‘It all comes back to you,’” said Robinson. “The plan proceeds help amplify the voices of dealers with governments, industry groups and the media.”

The fact that the plan is fully-insured also helps protect dealers from any additional risk. “To spread risk and keep costs low within the trust, the total experience of all the dealerships is aggregated to develop block renewal factors,” she said.

Drug claims are typically any program’s largest spend. To help manage drug claims CADA 360 introduced Reformulary in November of 2019 on a staggered basis to all provinces, except Quebec. This program ensures that clinically acceptable, and cost effective, first-line drugs are tried and are placed on file with Canada Life before a more expensive second-line drug is used. This limits dealers’ exposure and reduces drug claims which impact a dealers renewal each year. “The feedback has been very positive with very few issues. Reformulary helps each dealership manage their individual drug spend to ensure health rates remain as low as possible,” said Robinson.

CADA 360 also pools high-cost health and drug claims along with all out-of-country claims. Pooling helps to keep rates low as high-cost claims are not included in renewal calculations.

The flexibility of the plan is a huge bonus for dealers. Dealers can choose to add a HCSA, Group Retirement Savings, Critical Illness Coverage, Teladoc (Best Doctors) and Consult + (Virtual Health) to enhance their individual dealership’s plan. Until August 2025, EAP is included in all CADA 360 Employee Benefit plans at no additional cost to dealers.

“We also have optional benefits available such as Optional Life and AD&D which employees can apply for and purchase at a discounted rate,” said Robinson.

As an added bonus, Retiree Plans ensure ongoing coverage is available to dealership employees throughout retirement. “This is a valuable additional feature to your employee benefit program, and since retiring employees pay for their coverage it does not cost the dealership for this enhancement,” she said.

Robinson explains that one of the distinct features of the plan is its higher Target Loss Ratios: which represents the difference between premiums received by an insurer and the claims they pay out. “Our ratios are typically 10 per cent higher than industry standard. Due to the size of the CADA 360 Employee Benefits program, all dealers can benefit from our economies of scale,” she said.

CADA 360’s Target Loss Ratios are on a sliding scale based on annual premium. Typically, the larger the dealership or dealer group, the higher their premium is, and therefore the higher their ratio becomes.

“So for dealerships looking to win and retain more employees by offering a comprehensive benefits plan, while keeping costs low — and helping fund advocacy efforts to protect their business interests — CADA 360 Member Benefits plans are a win-win-win,” said Robinson.

The post Taking care of your team appeared first on Canadian Auto Dealer.

AMBASSADORSHIP

For extraordinary service to the community and the industry

PETER HEPPNER

Preston Chevrolet Buick GMC Cadillac Ltd., Langley, B.C.

Advice to others:
This business remains one of great opportunities in my view. Where else can someone with little more than a great deal of desire and a hard work ethic be so well rewarded and appreciated? My advice for those starting out would be to not move around to different dealerships. Be patient, develop your clientele over time. Look at your employment as a partnership with your dealer. Pursue your career goals within an organization or group rather than chasing the unknown. You will be rewarded. Make an effort to give back to your industry and community — it will be returned to you in so many ways. Also, everyone claims to be an expert in this business. Before deciding who to listen to, check out their own accomplishments. Choose carefully who you associate with. There are a great many admirable people in the new car dealership world.

What I like most about the business:
The business is ever changing, evolving and ultra-competitive. If you stand still for a moment, you fall behind. I can’t wait to get to work each morning. Seeing the happiness in people’s faces when taking delivery of a new vehicle is most gratifying! I also note that if there is something good happening in a community (fundraising, sports, charity, etc.), chances are a new vehicle dealer is playing a meaningful role. As a result, I am very proud to be part of our industry.

NEIL KALAWSKY

Kalawsky Auto Group, Castlegar, B.C.

Advice to others:
Get involved in committee work with your provincial dealers association. You will meet interesting and engaged people that you can learn a lot from. Also, I would take the time to learn the fundamentals of operating a business, including how to read and interpret financial statements. Running a dealership is complex, busy and challenging. Sometimes all of the tasks and responsibilities and decisions are overwhelming. In midst of all the noise and distractions, understanding the financial position and performance of your dealership will help you focus, reset your priorities, and make better decisions with a clear mind.

What I like most about the business:
I find the business to be interesting, challenging and rewarding. You are empowered to make a direct impact on your business. When you make a decision, you will often see the results of that decision, good or bad, quite quickly. I also enjoy the people that work in this industry. They are interesting, engaged, hardworking and personable, and a pleasure to spend time with.

PAUL WILLIAMS

Centaur Subaru, Calgary, Alta.

Advice to others:
Time is the most important commodity you have, and the most important element you can invest in. Sometimes you will be compensated for your time and sometimes you won’t; that’s okay! Use your time to learn and gain understanding. Volunteer for committees and dealer associations. Participate in factory dealer councils, dealer advertising associations, parts & service advisory boards, etc. Many times, people get asked to serve but say “I don’t think I have the time to do this.” This is a huge mistake. Others trust in your ability and are encouraging you for your insight. The time you invest will be the foundation of your future success.

What I like most about the business:
The innovation. To compare technology and features from vehicles three decades ago versus today is simply astonishing. I work with a brand that has a very loyal customer base. The returning customers are always shocked by the changes they see in the new models.

GERRY WOOD

Wood Auto Group, Calgary, Alta.

Advice to others:
Be innovative and be ready to work hard. Foster good relationships and be able to provide exceptional customer service.

What I like most about the business:
The great people that I work with and the tremendous customers and colleagues that I have met and gotten to know over the years. They have brought great meaning to my life.

BUSINESS INNOVATION

For initiatives that significantly enhance performance or broaden the scope of business for new car and truck dealers

MARK K. HICKS

Sherwood Ford, Sherwood, Alta.

Advice to others:
For young people embarking on a career in the automotive industry, my advice is to find an organization whose business purpose, vision, and values, matches your own, and then cultivate an unwavering commitment to hard work and perseverance in that environment. It is crucial to have a clear and focused vision for your future, and to pursue your goals with dedication and passion. Those who have achieved the highest levels of success in both sales and technical roles in our industry have consistently exhibited these behaviours. Seek out mentors and seasoned professionals who can provide guidance and insight into the industry.

What I like most about the business:
I absolutely love the automotive retail business and the personal daily opportunity to interact with both customers and staff! It is truly a people business, and the people are what make this industry truly special, with their positivity and willingness to tackle any problem or challenge that comes their way. Each day requires focus and brings fresh and exciting opportunities to sharpen your mind while building your team and customer relationships. I enjoy the challenges of fierce competition, and the fact that personal dedication, attention to detail, and work ethic, can create real and meaningful results for myself, our staff, and my family.

MATHIEU LANDRY

Landry Automobiles Ltée, Laval, Qué.

Advice to others:
If you treat customers honestly and your goal is to make their buying experience a simple and transparent one, customers will reward you and your dealer with higher volume, more references, and a good reputation which often also creates better profits and a lot less headaches than when a dealer who chases profit by executing questionable business practices. Also, by being honest you are setting up your store to be in business for a long time and your honest reputation will attract a better class of potential employees.

What I like most about the business:
I love the strategy the most; automotive retail is a competitive sport and it’s a chess game. I get great pleasure working with our dealer’s team members who are motivated and want to outperform and be the best we can be whilst building strategies and executing on them. And to then have those strategies reward us with the success we have lived. It’s a lot of fun.

KYLE ROMERIL

Kaizen Auto Group, Calgary, Alta.

Advice to others:
Prioritize exceptional customer service for long-term success. Put the time in the dealership and learn the business and keep current with market trends. The grass isn’t always greener at another dealership. Seek mentorship from experienced professionals. Develop strong communication skills for building relationships. Embrace technology and digital tools to stay competitive. Cultivate a strong work ethic and be proactive in your role. Embrace a growth mindset, learn from setbacks, and strive for excellence. With dedication, perseverance, and continuous improvement, you can thrive in the automotive retail business.

What I like most about the business:
I love the automotive industry because of the stiff competition and the different challenges it presents every day. The competitive nature of the industry pushes me to constantly strive for excellence, innovate, and find new ways to stand out from the crowd. It’s exhilarating to be part of a dynamic environment where dealerships compete for customers, market share, and profitability. I thrive on the excitement of finding creative solutions, surpassing goals, and delivering exceptional service to customers.

MATHIEU SPINELLI

Groupe Spinelli, Montreal, Qué.

Advice to others:
Regardless of your field of expertise, the automotive retail sector is an exciting and challenging industry that is, more than ever, evolving at full throttle. Let yourself be carried away by your passions, as our business offers career opportunities that allow you to grow to the heights of your ambitions. Always be true to your values.

What I like most about the business:
I’ve always been passionate and fueled by innovation and technology. The dynamic nature of the industry, combined with the opportunity to connect with customers and help them find their perfect vehicle makes every day exciting and fulfilling for me and for all my colleagues.

RETAIL OPERATIONS

For outstanding achievement within an individual dealership

DEAN COOLEY

Dean Cooley Motors, Dauphin, Man.

Advice to others:
The advice I would give young people is to take every opportunity to immerse yourself in the industry. Let the automotive world show you all the exciting ways to have a great career in an ever changing, exciting, and dynamic business. Each role within a dealership is equally as important and should be treated as such. From the detail center, service bay, sales floor, or management team, having a wellrounded knowledge and respect for each role will enhance the success of your career. If you focus and work hard the automotive business will reward you. Don’t forget to have fun while you’re at it.

What I like most about the business:
I love coming to work and helping people. Being a part of that excitement when a first-time buyer gets their own set of keys or providing that sense of relief when a service customer’s vehicle is returned running like new makes what we do rewarding. I enjoy seeing teammates having success; whether it be achieving journeyperson status or having a record sales year. It’s celebrating the individual successes that makes this industry fun.

JASON MILLS

Westridge Buick, GMC Ltd., Lloydminster, Alta.

Advice to others:
Go for it! Get in it and stay in it. This industry is going to be so full of change and challenge for many decades and it is a great career. Work hard, really hard and put in the time to master your craft and the rewards are endless. When you get in, be full speed ahead and live it. Learning how to build quality relationships is a skill you can use in every facet of your life along with the auto business. The world has enough average people so go be great! Make sure to surround yourself with people that are better than you so you see what is available. You are in control of 95 per cent of what you need to be to have great success, don’t get bogged down in the 5 per cent.

What I like most about the business:
The pace and the people. Nothing beats the fast pace of the auto industry. Every minute of the day there are things happening throughout the store. I have said it is like the Las Vegas of work environments, there is never a dull moment! The people make the days even better! The best part is the relationships made along the way with staff and customers.

FRANCESCO G. POLICARO

Porsche Centre Oakville, Oakville, Ont.

Advice to others:
First, build a solid foundation through education. Acquire the necessary knowledge and craft to navigate the industry’s intricacies. Turn your devotion for the industry into a business. Let your enthusiasm drive your efforts and fuel your motivation. Find the sweet spot that aligns interests and capitalize on it. Focus on delivering a complete service from the moment a customer enters the building until your last employee leaves for the day. Strive for excellence in every step of your journey. Prepare to work–hard. Practice discipline and continuous improvement. The industry demands dedication and constant learning. The success and rewards you can achieve surpass your imagination. Witnessing people’s dreams come true is a privilege.

What I like most about the business:
People — whether employees, clients, partners, community members, or colleagues, mean the world to me. Their well-being is of utmost importance, and it’s a privilege to serve. Daily, I wake up excited about witnessing automotive tech advancements that revolutionize traveling. Vehicles are humanity’s greatest invention. The satisfaction felt seeing the joy on customers’ faces is priceless. It’s like living my childhood dream daily in an unparalleled emotional experience. That, for me, is pure magic!

MARTIN TAILLANDIER

BMW Montréal Centre, Montréal, Qué.

Advice to others:
Go for stability, and be patient. The key to success in automotive is perseverance. Many young people change careers and businesses many times over the course of a lifetime. Stability leads to the development of expertise, and this is what can make you stand out today! You have to work hard and obviously love what you do to have fun. You should not be afraid to share your ideas. Value and respect the experience of your superiors, but don’t be afraid to take your place. After all, it is the next generation that will modernize the automotive field!

What I like most about the business:
Each day is never like the previous one. I like the customer contact and the fact that we have the chance to help every customer who comes through the door: whether it is in service to repair their vehicle, or in sales to find what really meets their needs. It is also an environment that is constantly evolving and there is always something to improve upon!

The post The 2023 Laureate Finalists appeared first on Canadian Auto Dealer.

Better tools and equipment, workshop technology, and communication and training can save time, boost profits, and put a smile on your technician’s face.

Automating parts of a technician’s job to make life easier and free up time for other tasks is a surefire way of improving their environment, while also reducing the potential for job-hopping.

That may be top-of-mind for dealers eyeing their facilities as the technician shortage on the fixed ops side of auto retail remains an overwhelming concern, according to Pete Liebetreu, Vice President of Marketing at Hunter Engineering.

“Recruiting and retaining is really where a lot of their minds are at. They’re looking for solutions that help them in that way,” said Liebetreu in an interview with Canadian auto dealer. “When we talk about what’s important to technicians, it’s the same things that are important to any worker.”

Data from a 2018 Carlisle & Co. Automotive Technician Survey that is being used by Hunter Engineering highlights what those factors are. It is worth noting that not much has changed, post-pandemic, from this survey, which included 35,000 technicians from the United States and Canada with an average age of 40.

The report found that three of the top four areas of dissatisfaction for automotive service technicians is related to equipment. So while 79 per cent of technicians are dissatisfied with their pay plan, 75 per cent are none-too-pleased with diagnostic equipment, followed by workshop technology (73 per cent), and special tools and equipment (70 per cent).

“(Based on the survey, we found that) the ability of technicians to access diagnostic equipment, the workshop technology, and the special tools and equipment — in other words, the things they need to do their jobs — if those things are available to them and they are easy to use and they’re always working…then that’s a great (environment) to work in,” said Liebetreu.

Hunter specializes in these areas. They have products that do automatic wheel alignment, thread-depth measurement, on-site data analysis, vehicle identification that automatically determines OEM specs for most vehicles, and more. Its Revolution Walkaway can do a four-tire changeover 25 per cent faster when in semi-autonomous mode and compared to the manual process. 

“That’s both useful for your retention side of things and for the recruiting side,” said Liebetreu. “Time is really important. It’s obviously probably one of the things that we look at the most.”

The right tools

For Reynolds and Reynolds, the right technology can also give technicians the benefit of making more money. And that can make them happier or more satisfied with their job. They just need the right tools to both succeed and save time, according to Lance Alverson, Area Vice President of Sales for Central U.S. and Canada.

He said the company has a fixed operations specialist in Canada that helps them dig into how dealerships are operating to identify where their inefficiencies are.

“One of the things we found out that technicians get frustrated at is identifying work to be sold, and then the advisor not selling it,” said Alverson. “They have to have the tools to give the information to the advisor to sell that properly, which will in turn give them the work to continue and get those cars fixed.”

Doing this, he said, can also improve the level of trust between the technician and advisor, which would be a win-win for both — and also for the dealership and the customer.

Examples of the “right technology” include the ability for the technician to take photos and videos of the vehicle/work being done with their mobile device. That information would then be sent to the advisor, who in turn would review it and email or text the photos/video to the customer for approval. The customer can do this immediately, and electronically.

“I mean, everybody’s mobile today,” said Alverson.

Communication is key

The concept of saving time was also echoed by Elise Parsons, Manager of Account Services at PBS Systems. She highlighted three struggles that dealerships across Canada and the United States are dealing with: staffing, digital disconnect, and communication.

“Time is money. The old adage, right? And time really is a valuable commodity. When you have inefficient communication, you lose so much time going back and forth. So finding ways to leverage really efficient communication is key,” said Parsons.

Dealers know it takes time and money to train new staff, and lack of communication is one of the main frustrations that consumers have when inquiring about the status of their vehicle. For this reason, PBS Systems has an online academy so that whenever there is a lull in the day the technician can log-in.

Global training includes a live person leading sessions on specific topics. They also have knowledge bases that allow technicians to search for specific topics and review a ‘how-to’ with pictures in it.

“We can also leverage technology in terms of making the job require less input. So even if you have an experienced advisor coming from a different manufacturer, they don’t necessarily know your service intervals.”

Parsons said the company has technology that can prompt for recommended services based on the history of the vehicle. Any previously deferred services will prompt. “Even if you don’t know the customer of the car, the system’s doing the work for you to tell you what you need to sell. It’s making it easier to train staff and get them up to speed, and sell where they need to be selling.”

Training and a change in mentality

Training technicians to learn, understand, and use the technology they are being provided with is something KPI Dealer Solutions is focused on.

“Technicians are really in a situation where they have to keep up-to-date,” as the use of technology continues to increase, said Co-founder/Managing Partner Michael Giguère. He recognizes the breadth of technology, from tools to equipment to computer systems, that they must master on top of repairing vehicles.

The challenge today, he said, is keeping technicians up to speed with software, so that they can comfortably do their work in concert with the mechanical and customer service side of their job. Training is especially important because, while some technicians catch on quickly, others do not.

“What we see as the future is a team of expert advisers who will enable technicians to optimize their dealerships, both in terms of fixed operations…and also to allow them to have confidence in the performance of their daily tasks,” said Giguère.

However, even money and training may not be enough if the industry does not change the mentality it has towards technicians — something Giguère hopes to improve. He compares them to doctors, in the sense that they take care of our vehicles. And like doctors, keeping technicians in the long-run will involve valuing them for the work they do.

The post Optimizing your tech’s time appeared first on Canadian Auto Dealer.

Expert advice on how to prepare your dealership for sale

It’s never easy for a Dealer Principal to decide when it’s the right time to sell his or her dealership. They have their own life journey to consider, but there are also a host of other factors such as the current buy/sell market, recent financial performance and getting the dealership positioned legally and financially for the transaction.

Peter Heasty, who has worked for more than 30 years in the auto business, including a role as a Chief Financial Officer of a large dealership group, and as a Dealer Principal himself, says he fully understands their situation.

Heasty is President of Baker Tilly Dealer Acquisitions Inc, a leading professional chartered accounting firm, and he is focused exclusively on dealerships. His “in-the-trenches” experience gives him a unique lens on being able to relate to his clients, and understand their concerns and goals.

Heasty explained some of the key things dealers should consider in a video interview with Canadian auto dealer.

For some dealers, the pressure of running a dealership and competing in markets with dealerships that have full marketing divisions and Internet operations can be taxing. “You’re told that if you don’t answer a lead in 32 seconds you are going to lose it to the competition.”

He said dealers who haven’t invested as heavily in digitizing their operations and new marketing practices are feeling additional pressures.

“Running a car dealership today is a challenge. You never know what the day is going to bring and there are decisions you make every day,” says Heasty. “There comes a time when you just want to smell the roses —
You can buy a lot of roses with $20 million bucks.”

At some point, some dealers recognize it’s a good market for buy/sell, there is a lot of consolidation going on and they decide that it’s time. “If you’re still having fun and you want to go in every day, all the power to you. But the cheques are bigger, as big as they’ve ever been still today.”

Heasty operates a one-stop shop so that dealers can ensure all aspects of their transaction from legal to finance and accounting have been accounted for.

When dealers do make the decision, Heasty says advice he gives them is to not try to do it alone, or with a legal or accounting firm that isn’t experienced in the dealership buy and sell space.

“Make sure you get proper advice, because if you are going to sell you need to pre-plan your tax and your exit strategy,” says Heasty. 

“You need a conductor who is experienced, who does these things because I’ll tell you what, if you don’t get to the finish line, everybody loses, especially the seller who’s now mentally committed to selling.”

He said to prepare for a sale, it never hurts for dealerships to “pull up their socks” and enhance the profitability by focusing on areas your dealership might be lagging behind other franchises. “We have ways of maximizing a dealer’s return, even if their profitability is not where it could be, but when you’re actually making money it does make a difference and makes it easier to do a transaction.”

As for trends impacting the markets at the moment, Heasty doesn’t see the current threats or “disruptions” as having a major impact on the prices paid for dealerships. The business model is solid, the transition to EVs is starting and the increase in acquisitions is because people in the business community recognize dealerships can be profitable businesses.

“At the end of the day, everybody has to win,” he says. “My rule of thumb is that the buyer has to see their way to about a 20 per cent return.”

So, if a dealership is looking at a transaction that looks like it’s an 11 or 13 per cent return, Heasty says they do their homework and present evidence that the dealership can hit those targets. “You do the analysis, you present it, you say, ‘Here’s what we need for the store.’ And you show the buyer that within three to six months they’re going to be making a 20 per cent return.”

To reach Peter Heasty, send him an email at: Peter.Heasty@bakertillywm.com

The post When is the right time to sell? appeared first on Canadian Auto Dealer.