Advanced Dealer Solutions joins Zurich North America’s network of select F&I Agencies

Advanced Dealer Solutions (ADS), has announced it has signed on to represent the Zurich suite of protection products to its current and future auto and powersports dealers. 

Zurich North America is a leading provider of Finance and Insurance (F&I) solutions for auto dealers offering a full suite of vehicle protection products for gas-combustion, hybrid, and electric vehicles.

“We are excited to add Zurich products and programs to our current offering”, says Bob Mancuso, President of ADS. Mancuso went on to say, “Zurich’s size, strength, and stability will add to our overall value proposition, and it furthers our goal of being an independent voice when it comes to a dealer’s F&I products and programs.”

“We are pleased to welcome Bob, Ryan, and the entire ADS team to the Zurich network of F&I agencies; and expand our reach to their auto and powersports dealers,” said Todd Kaminski, Head of Business Development for Direct Markets, Zurich North America. “Their sound business processes, solid dealership relationships, and tremendous client satisfaction are key characteristics we look for to help bring Zurich F&I products, training, and participation program to new markets.”

“Advanced Dealer Solutions prides itself on its unbiased approach of offering dealers a true choice in the products and programs that best fit their needs. We feel Zurich’s market presence and customer awareness will add value to the products and programs we currently provide our dealers.” says Ryan Nelson, EVP of Advanced Dealer Solutions.

Advanced Dealer Solutions is a premier dealer development agency based in Richfield, Ohio with specialties in F&I training and development, product structure, and reinsurance management for auto, RV and powersports dealers across the country.

Zurich can trace its roots in the automotive industry to 1922. Over the last 101 years, Zurich has evolved alongside its auto dealer customers, listening to their needs and challenges, and developing solutions that help accelerate their growth and protect their legacy.

February Newsletter

A Message From The ADS Team

Just like the industries we serve; ADS has a lot going on and much to be excited about.

In the last month we have hosted the inaugural F&I training as well as a dealer group meeting in our new training facility. The space has exceeded our expectations, and more importantly it has exceeded our dealer’s expectations. Check out the pictures below to see the room in action.

Over the next few months, we will be making several exciting announcements. Stay tuned to hear about our growth and how we plan to provide even more solutions to dealers. Be sure to subscribe to our LinkedIn, YouTube and Facebook pages as well as our newsletter to get the latest updates on what our team is up to.

Here are few interesting items to consider:
January Sales Report
Monthly payments over $1,000 hits record high
Inflation possibly turns to stagflation
EV’s already dropping in price
NADA 2023 Recap – See you Next Year In Las Vegas
Upcoming Events ADS will be attending:

AIMExpo Las Vegas, NV – https://aimexpousa.com/
AFIP Bootcamp Certification – https://afip.com/events-open-boot-camp/ads-onsite-boot-camp
Agent Summit – https://www.agentsummit.com/

We would love the opportunity to connect with you, please let us know if you will be attending.

Sincerely,
Bob and Ryan

Click to view our full Newsletter.

IOS 15 And Dealership Email Marketing

Data privacy and its impact on automotive marketing. It was positioned to be a headlining story of 2022 as dealers evaluated the impact on their advertising strategies. But, between the ongoing vehicle inventory shortages and Google’s announcement that they will delay deprecating 3rd party cookies until 2023, the story has largely faded from view. If your dealership has put data privacy and its impact on automotive on the back burner, it’s time to turn up the heat. Why? The next update from Apple – iOS 15 – will impact your email marketing.

Before we go any further, no need to panic. Email marketing remains one of the most effective ways to influence car shoppers. The evidence suggests Apple’s iOS 15 update will likely impact how you and your vendor partners measure effectiveness. And the first hint of that impact will come quickly.

So, what is it and what should you be thinking about?

iOS 15 will go public for iPhones, iPads, and desktops using OS Monterrey this month. The update includes two features that will impact email marketing and measurement, Mail Privacy Protection and Hide My Email. At a high level, Mail Privacy Protection gives the consumer the opportunity to protect their email and prevent the tracking that tells people like you and me if, when, and where the email was opened. There’s no need to get into the technical weeds, but this update means when a customer or prospect receives an email on their Apple device, and they have opted into Mail Privacy Protection, that email will automatically register as “opened” regardless of the person’s actual activity.

Now you might be asking, is this the reality for everyone using an Apple device, and will it be effective immediately? The short answer to the first question is no. However, when Apple Mail user downloads the new operating system to their device, they will be asked if they want to protect their email. What we learned when Apple introduced App Tracking Transparency with iOS 14 this spring, 96% of Apple users said “Yes! Don’t track me.” So, it is prudent to expect a majority of Apple users to do the same with Mail Privacy Protection.

The second answer is yes, but not fully. We know from experience that the adoption of new operating systems comes in waves. Some cutting-edge techies update as soon as new features are available and others follow suit in waves. Suffice it to say, expect at least 75% of users to be up and opted in on the new updates by the end of 2021.

Which leads us to why this matters. Google Chrome’s plans with 3rd party cookie tracking is front and center because they are the dominating web browser – accounting for 65% of internet activity. Similarly, Apple is the dominant player in email. For dealers using email marketing (which is practically everyone), this update has the potential to impact up to half of the customers and prospects you engage via email.

Again, no need to panic. This update does not render email marketing ineffective. But it should cause you to pause, evaluate and adjust a few things.

Let’s look at a few high-level actions you can take.

1. Look back at Opens: Establish a measurement standard

Because Mail Privacy Protection automatically triggers the “open” pixel, you can expect your open rates to grow. To track how much, take a look at your history. Open rates vary from send to send, but normalize within a given range over time. Start by taking a look back at the first six months of 2021 to set a measurement standard. This gives you a benchmark to see how open rates change month to month. When you see the normalized open rate start to increase, you will have a general idea of how many of your customers are Apple Mail users and inflating your measurement.

2. Look beyond Opens: Expand your portfolio of email metrics

Open rates are a key metric in marketing reports. Yet by itself, the open rate has long been a flimsy performance measurement. Open rates can be an indicator of awareness, but engagement is better measured by clicks and conversions. Open rates are typically higher and look better on a report, and iOS 15 will likely only inflate those numbers. Resist the urge to take credit for the higher open rates that everyone will see as more users download the new operating system.

Instead, pay MORE attention to click thru rates and conversion metrics. In order to understand email campaign effectiveness at a greater level, utilizing UTM tags and Google Analytics are another incredibly effective way to monitor email performance and conversion. At Client Command, we also measure effectiveness through match back reporting and give dealers visibility into the impressions, frequency and clicks that influence a sale. Your vendors are likely already measuring the effectiveness of email marketing with an equal or greater focus on clicks and conversions. It’s important that you make sure you extend this to internal email engagement efforts, such as email cadences from your CRM.

3. Assess your Automation “Triggers”: Disable cadences based on “Opens”

Marketing automation is built on trigger events. If X action happens, Y cadence is deployed. There is a high likelihood that at least one email cadence set up in your CRM are built around whether someone opens or does not open an email. Opens is far from the only trigger, but is common, especially within dealership operations.

Instead, tie triggers to a more reliable action; such as ownership milestones, service activities or important events. To go deeper, build trigger events inside those cadences, based on clicks — to the enclosed offer, digital retailing tool or form. At Client Command, our marketing automation is triggered by online shopping activity and clicks to lead forms.

4. Resist the urge to react: Entertain some level of the “wait and see” approach

Yes, we know enough to take some proactive action like the steps previously mentioned. But even the Email Service Providers (ESPs) who think only about email delivery all day every day, are taking some level of the “wait and see” approach versus an all-encompassing game plan. They are making necessary adjustments now (including but not limited to the ones mentioned prior), preparing to measure the full impact over a period of time and make optimizations and recommendations accordingly. We experienced this earlier this year when Apple released iOS 14 – partners positioned themselves for the change and continue to optimize as we learn more about the nuances of the impact. Adjustments from ESPs could further impact OR improve email marketing measurements. So, if the ESPs are waiting, there is wisdom in following their lead.

Net-net. Email marketing remains a highly effective way to stay in front of car shoppers and a critical component of your omni-channel marketing strategy. As iOS 15 rolls out and users begin to sign on, start adjusting what you can control – how you measure effectiveness and how you trigger your email cadences – and be ready to adjust to residual impacts. The key is working with partners you trust — committed to staying up to speed, working to keep you ahead of the curve and ready to navigate these and future changes with you.

Article originally published here https://clientcommand.com/ios-15-and-dealership-email-marketing/.

Used vehicle demand and prices continue to decline from record highs

KEY POINTS

  • Wholesale prices of used vehicles reached their lowest level in more than a year last month, as retail sales decline amid interest rate hikes, rising new vehicle availability and recessionary fears.
  • The Manheim Used Vehicle Value Index, which tracks prices of used vehicles sold at its U.S. wholesale auctions, has declined about 16% from record levels in January.
  • The decline is good news for potential car buyers, however not great for companies such as Carvana that purchased vehicles at record highs and are now trying to sell them at a profit.

DETROIT – Wholesale prices of used vehicles reached their lowest level in more than a year last month, as retail sales decline amid interest rate hikes, rising new vehicle availability, and recessionary fears.

Cox Automotive said Wednesday that its Manheim Used Vehicle Value Index, which tracks prices of used vehicles sold at its U.S. wholesale auctions, has declined 15.6% from record levels in January through November. The index dropped to 199.4 last month, below 200 for the first time since August 2021, and is down 14.2% from the same month a year ago. It marks the sixth-consecutive month of declines.

The falling prices come as the availability of new vehicles steadily rises from historic lows, providing additional options for consumers and potentially better loan options from automaker’s financing arms.

“New inventory is finally starting to build, and that’s producing momentum in new retail sales, but that momentum appears to be at the expense of used retail. Especially it’s the traditional used car buyer that’s most impacted by payment affordability,” Cox chief economist Jonathan Smoke said Tuesday during an industry update.

Retail prices for consumers traditionally follow changes in wholesale prices. That’s good news for potential car buyers, however not great for companies such as embattled retailer Carvana that purchased vehicles at record highs and are now trying to sell them at a profit.

Retail pricing thus far has not declined as quickly as wholesale prices, as dealers attempt to hold steady on record-high pricing. According to the most recent data, Cox reports the average listing price of a used vehicle was $27,564 in October, down less than a half percent from the beginning of the year.

“They’re not wanting to sell at trough prices,” said Chris Frey, senior industry insights manager at Cox Automotive, told CNBC last month. “That’s why we’re not seeing the prices decline so much at retail.”

Cox estimates that used retail sales declined 1% in November from October and were down 10% from a year earlier.

Automakers for several years now have been battling through a semiconductor chip shortage that has sporadically halted production of new vehicles, causing record-low inventories of vehicles and higher prices. The circumstances pushed many new-vehicle buyers into the used-car market.

Cox last month estimated the total used market was on pace to finish the year down more than 12% from 40.6 million in 2021.

Originally posted by CNBC.

December Newsletter

On the heels of giving many thanks and taking stock on all we are thankful for over this past Thanksgiving weekend; we begin to look forward to arguably the most magical time of the year.

December is typically a robust month for our industries, and this year is setting up to deliver another strong finish. Dealers are seeing a bit more inventory, used car pricing has somewhat settled into a comfortable position, and the recent rise in interest rates hasn’t seemed to slow sales as much as some anticipated. Dealers should consider these headwinds in their 2023 planning and forecasting.

Here are a few items which seem to be picking up energy in our recent conversations with dealers across the country.

As the team at ADS looks back on 2022 and the many successes we’ve had, we are proud to have the partnerships we have with so many dealers and industry leading providers. Without the resolute support of so many, we wouldn’t be able to be so focused on exceeding our dealer’s goals and objectives.

Merry Christmas!

Link to our full newsletter.

FTC Extends Deadline by Six Months for Compliance with Some Changes to Financial Data Security Rule

Financial institutions covered by the Safeguards Rule must comply with certain provisions by June 9, 2023

The Federal Trade Commission today announced it is extending by six months the deadline for companies to comply with some of the changes the agency implemented to strengthen the data security safeguards financial institutions must put in place to protect their customers’ personal information. The deadline for complying with some of the updated requirements of the Safeguards Rule is now June 9, 2023.

The Safeguards Rule requires non-banking financial institutions, such as mortgage brokers, motor vehicle dealers, and payday lenders, to develop, implement, and maintain a comprehensive security program to keep their customers’ information safe.

The Commission is extending the deadline based on reports, including a letter from the Small Business Administration’s Office of Advocacy, that there is a shortage of qualified personnel to implement information security programs and that supply chain issues may lead to delays in obtaining necessary equipment for upgrading security systems. These difficulties were exacerbated by the COVID-19 pandemic. These issues may make it difficult for financial institutions, especially small ones, to come into compliance by the deadline.

The FTC approved changes to the Safeguards Rule in October 2021 that include more specific criteria for what safeguards financial institutions must implement as part of their information security programs. While many provisions of the rule went into effect 30 days after publication of the rule in the Federal Register, other sections of the rule were set to go into effect on December 9, 2022. The provisions of the updated rule specifically affected by the six-month extension include requirements that covered financial institutions:

  • designate a qualified individual to oversee their information security program,
  • develop a written risk assessment,
  • limit and monitor who can access sensitive customer information,
  • encrypt all sensitive information,
  • train security personnel,
  • develop an incident response plan,
  • periodically assess the security practices of service providers, and
  • implement multi-factor authentication or another method with equivalent protection for any individual accessing customer information.

The Commission vote to extend the deadline was 4-0.  Commissioner Wilson issued a separate statement.

The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

Originally posted by the FTC.

Ford postpones deadline for dealers to decide on EV investment

Dealers will get an extra month to decide whether to spend up to $1.2M on chargers and other upgrades the automaker is requiring for certification to sell EVs after 2023.


DETROIT — Ford Motor Co. is giving its dealers an extra month to decide whether they will agree to invest up to $1.2 million and follow other new standards the automaker is imposing so they can sell electric vehicles after next year.

The Oct. 31 deadline has been pushed back to Dec. 2 after some retailers asked for more time to make a decision, according to Ford spokesman Marty Gunsberg.

“We value our relationship with our dealers and have decided to provide additional time for dealers who have not yet decided or asked for more time,” Gunsberg said in a statement.

He declined to say how many dealers have already opted in, saying Ford will provide figures after the enrollment period ends.

The new deadline more closely aligns with the Dec. 15 deadline Lincoln dealers face for a similar program requiring up to $900 million in investment. Dealers who sell both brands would have to invest in each program.

The Ford standards are divided into two tiers with different investment levels in fast chargers and staff training. Dealers who choose the lower dollar amount will be limited in the number of EVs they can sell.

Dealers who don’t make the upgrades will be limited to selling internal-combustion vehicles and hybrids from the Ford brand.

The EV sales cap has rankled some state dealer associations, who argue that it violates state laws. The Virginia Automobile Dealers Association earlier this month sent a letter to Ford CEO Jim Farley and other executives asking them to reconsider the program and revise the rules.

Separately, a group of automotive trade association executives, representing associations in Virginia and 11 other southern states, this week asked Ford to “reconsider the Ford Model e program as it is currently described,” saying it “includes unreasonable restrictions on dealer autonomy.” Model e is the name of the EV division that Farley created this year and oversees as its president.

The new sales standards require dealers to set nonnegotiable prices for EVs. Those who choose the lower-priced certification tier won’t be allowed to carry any EVs in inventory, with their customers having to order exactly what they want for later delivery.

Ford has said each of its roughly 3,000 U.S. dealers can choose whether to opt in to the standards, and it will not force any to do so.

Dealers who opt in will be certified to sell EVs from Jan. 1, 2024, until the end of 2026. Those who don’t will have another opportunity to be certified for EV sales starting in 2027, but again, won’t be required to do so to retain their franchise, officials have said.

Originally posted by Automotive News.

AutoNation’s CEO Warns of Used-Car Price Drop as Rising Rates Curb Demand

(Bloomberg) — AutoNation Inc., the biggest US chain of car dealerships, warned that used-vehicle prices are softening as rising interest rates curb demand from more price-sensitive buyers.

The company said Thursday that third-quarter earnings rose to $6 a share excluding some items. That was below the $6.29 a share average of analysts’ estimates. Revenue increased 4% to $6.67 billion, roughly in line with the average of Wall Street projections.

Mike Manley, who took over as chief executive officer of AutoNation a year ago, said he’s been aggressively turning over his portfolio of used cars to make sure he doesn’t get stuck selling them for less than he paid.

“We’re beginning to see used-car prices mitigate with faster depreciation” among mainstream and budget cars, Manley said in an interview. “We benefit from the mix of our portfolio being premium luxury.”

Shares of the company, which also said its board approved a stock buyback of up to $1 billion, pared an early gain of as much as 6.7% to trade up 3.2% to $105.64 as of 9:57 a.m. in New York.

Separately, Hertz Global Holdings Inc. said Thursday that its depreciation costs jumped in the third quarter, reflecting the decline in prices its used cars fetch at auction. Still, the rental-car company narrowly beat Wall Street’s estimates for profit in the period.

Pent-Up Demand

AutoNation’s CEO said new-vehicle inventory is still tight, despite the chip shortage beginning to ease, and there is strong, pent-up demand for vehicles priced above $30,000.

“It’s easing rather than becoming a glut,” he said.

New-car inventory will remain below pre-pandemic levels next year as automakers try to preserve margins to pay for electrification, Manley said on an earnings call Thursday.

In the used-car market, it’s just a matter of time before weaker prices at car auctions filter through to the retail market, pressuring margins for dealers, he said.

Last month, used-car retailer CarMax Inc. said profit from wholesale vehicles dropped 30% in its second quarter as buyers encountered “affordability challenges” and its bank of used cars depreciated.

The article was originally posted by Bloomberg. https://www.msn.com/en-us/money/other/autonation-s-ceo-warns-of-used-car-price-drop-as-rising-rates-curb-demand/ar-AA13qSuj?cvid=d80090900b4a4c25cd9c52261cc24e40&ocid=winp2sv1plustaskbar

The Solution to Dealership Success In Today’s Depressed Economy

In the post-pandemic climate of inventory shortages and heightened consumer demand, industry analysts predicted automakers would sell as many vehicles as they could build. But now, just as supply chains and inventories are starting to flow again, there are new pressures on the horizon. Inflation, and the interest rate hikes meant to ease it, are leading to higher auto financing costs and cooling demand for new cars, according to Agent Entrepreneur. 

Last month, the average interest rate on a new vehicle purchase hit 5.7%, an increase from about 4% in 2021. “It seems likely that much of the pent-up demand from limited supply will dissipate quickly as high interest rates erode car buyers’ willingness and ability to buy,” said Cox Automotive Senior Economist Charlie Chesbrough. Adding to the equation, the average price for new vehicles reached $45,971 in Q3 2022, up 10% from a year earlier and the highest of any quarter on record, according to J.D. Power.

The irony for dealerships is that just when new vehicles are finally becoming more available, most car buyers can no longer afford them. AutoPayPlus offers dealerships a solution to this challenge. 

AutoPayPlus is an F&I service that uses automated biweekly payments to help car buyers better afford their loan payment, purchase additional products, shorten their trade cycle and return to the dealership with less negative equity. A 10-year analysis has shown that dealerships sell approximately 57% more F&I products on AutoPayPlus deals versus standard retail deals. In addition, results from our company’s top dealer groups reveal a 63% increase in per-vehicle financed income on AutoPayPlus customers.

How does it work? Standard auto loans require one payment every month. Biweekly loan payments divide the monthly amount in half and pay it every two weeks. Because there are 52 weeks in a year, the borrower makes 13 payments over the course of a year (instead of 12) with the extra payment applied to the principal. 

These smaller biweekly payments are scheduled to coincide with when the borrower gets paid to make it easier to plan for and ensure timely repayment. On a monthly basis though, the payment amount is the same. Simply put, this biweekly strategy gives dealerships a solution to present affordable payments in challenging times.

A lot has also been written in recent months about the wisdom of generating more revenue from the service department as a way to improve a dealership’s bottom line and, in turn, create customers who return to the dealership to buy their next vehicle. AutoPayPlus can help here, as well.

The company offers dealerships an industry-first fintech solution for increasing profits from customer-pay service and boosting customer retention. AutoPay+PERKS combines the company’s biweekly loan payment service with the added advantage of a Mastercard debit card at no additional cost to the customer or dealer. 

Once a customer’s AutoPayPlus account has been active for six months and it’s time for their first service, AutoPayPlus sends them a debit Mastercard co-branded with the dealership’s logo and preloaded with $100 that can only be used at the selling dealership’s service department. A dealer boost program allows dealers to load additional funds to the card, further incentivizing their customers’ return to the dealership. It’s a guaranteed way for dealerships to drive new customers to the service department that doesn’t interfere with any other existing retention program such as pre-paid maintenance and, best of all, it’s easy and can be cost-free for dealerships to implement.

As interest rates increase, car buyers are facing significantly higher auto loan payments. And, with no notable inventory improvements forecasted for the fourth quarter combined with waning new-vehicle demand, Cox Automotive is projecting sales in 2022 will be down more than 9% versus 2021 and at the lowest level in a decade. 

Yet, in the face of continued market volatility, supply chain and inventory concerns, and questionable consumer financial strength, opportunity still exists. “The key to a dealership’s success today is to maximize its two primary profit sources,” AutoPayPlus CEO Robert M. Steenbergh explains. “Our programs give agents something to offer their dealerships that no other biweekly program can deliver and a solution to continually build customer loyalty.” 

Originally published on Linkedin by John Stephens, CSO of AutoPayPlus. https://www.linkedin.com/pulse/solution-dealership-success-todays-depressed-economy-john-stephens/