Brian Moskowitz – Canadian Auto Dealer https://canadianautodealer.ca Fri, 04 Aug 2017 18:22:28 +0000 en-CA hourly 1 Pop-ups shake up auto retail https://canadianautodealer.ca/2017/08/pop-ups-shake-up-auto-retail/ Fri, 04 Aug 2017 18:22:28 +0000 https://canadianautodealer.ca/pop-ups-shake-up-auto-retail/ Dealers watch to ensure new OEMs’ pop-up retail experiences aren’t the thin end of a wedge If fewer people are visiting dealerships to look at cars, is the answer to bring the cars to the people? OEMs around the world, and now in Canada, are experimenting with a variety of new pop-up retail models, and... Read more »

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Dealers watch to ensure new OEMs’ pop-up retail experiences aren’t the thin end of a wedge

If fewer people are visiting dealerships to look at cars, is the answer to bring the cars to the people?

OEMs around the world, and now in Canada, are experimenting with a variety of new pop-up retail models, and community-based experiential events.

They are designed to kick-start conversations by presenting vehicles in entertaining, playful ways, using digital tools and technologies not often available in dealerships.

The OEMs say that their dealers still play an instrumental role as the conversion point in vehicle sales and are an integral part of the OEM’s business.

They say they are just trying to do their bit to drum up interest and get consumers excited about their product lines by embracing new strategies and technologies.

The first automotive brand gallery pop-ups surfaced in U.S. malls in 2015 and in Canadian shopping centres, one year later.

The idea behind the new approach was for OEMs to connect with customers in a context that would be different from the traditional dealership, especially with regards to customer sales expectations.

“When I think of pop-up, I think it’s the opportunity to engage people and to not necessarily interrupt, but to command their attention in a place, whereby, they’re not necessarily shopping, and they’re not necessarily being pressured to make a purchase,” says Jamie Humphries, Director of Marketing at Toyota Canada. “In that moment, there’s an open window of communication.”

Auto marketing lends itself well to “thinking outside the box,” says Humphries. It’s important for Toyota to extend its marketing efforts beyond TV and radio ads and embrace innovation, so that it can properly inform Canadians about what “Toyota is up to, other than just strictly producing great cars and trucks,” he explains.

“We definitely see a need in our industry to reach out to customers a little bit more upstream in their shopping process, to expose them to the different brands and models that we carry,” says Norman John Hébert, Vice President of Corporate Development at Groupe Park Avenue of the Greater Montreal Area.

As with other retail categories, people are mostly doing their shopping online, says Hébert.

“The traditional showroom today is a place of transaction, rather than a shopping area.

“The sad part about that for us, as a distributor, as someone who represents these wonderful brands, is that we don’t get a chance online to really show people the true value of the products,” says Hébert.

To shake things up a bit, and to better engage the public in the “beautiful designs, interior features, or most importantly, the driving on-road behaviour of the product,” Groupe Park Avenue, which currently has 18 stores representing 10 brands, is launching its own “unique retail concept” this summer.

The first of its kind in Canada, the “product discovery environment” — its official name and the scope of the site is set to be announced in July — is both similar and different to the pop-up gallery concept.

Group Parke Avenue’s upcoming project will enable the public to discover more about its offerings, largely through the latest technology — this includes computer-generated “realities” such as virtual reality (VR) and augmented reality (AR), says Hébert.

Toyota pop-up galleries have also employed VR to highlight brand offerings, such as Toyota Safety Sense Suite features, and to “entertain and enlighten” consumers, says Humphries.

Groupe Parke Avenue’s undertaking differs from the brand gallery pop-up, because it is going to be a permanent location, spearheaded by the dealership and not the OEM — although OEM input into the facility has been critical, says Hébert.

“This is not a multi-brand, Costco approach to ‘Pepsi next to Coca-Cola’; this is a unique experience for a specific brand at a time.”

To “reinvent the customer experience,” Groupe Park Avenue chose to work with automotive industry architectural and brand identity consultants, Weis and Associates.

“Weis has a great understanding of how people interface with technology. They’re a fantastic partner of ours and they will play a big role in the conception of our space and the flow of customers through it,” says Hébert, adding that several Montreal-based technology partners have also made contributions to the project.

Space and Time

Toyota launched a brand gallery pop-up pilot program for three months at Square One Shopping Centre in Mississauga, Ont. in the spring of 2016.

Building on the success of that experiment, the company ran Towards Tomorrow by Toyota between Nov. 1, 2016 and Jan. 30, 2017 in malls in Que., Ont. and B.C.

Humphries says he was surprised by the average duration of more than 18 minutes consumers spent in each of the galleries. “You tend to think of retail as being very transactional, being very in and out: you get your groceries, your dry cleaning; but in this case, 18 minutes of engagement is very valuable in terms of consumers really having a deep understanding of what we’re up to.”

More than 60 per cent of people surveyed by Toyota who spent a minimum of 18 minutes reported a desire to visit again, adds Humphries.

“I think from the dealer perspective, this really was about providing more information to people about what Toyota had in the marketplace,” says Andy Caletti, Owner at Belleville Toyota and Erin Park Lexus Toyota.

Caletti is also Chair of Toyota Canada’s Marketing Subcommittee, and was approached by Humphries for input on the pop-up pilot program before it was launched at the Mississauga, Ont. location, not far from Caletti’s Erin Park Lexus Toyota dealership.

“It’s all about interrupting in the marketplace,” says Caletti, who appreciates the fact that he was invited ahead of the launch to offer comment on the project and was included in the opening at the mall. “You definitely saw that people were wowed. They didn’t know Toyota had this, or what the offering even was.”

When customers aren’t coming to you, you go to them, says Caletti.

The pop-up brand gallery is a great opportunity to position the brand right in front of the consumer, to understand more about what the OEM has to offer and check things out “from a forward-thinking perspective,” he says.

Conversation is King

“We’re really starting to recognize that in order to connect with Canadians and challenge them about the perceptions they might have about Toyota, or the industry in general, you have to really foster conversations,” says Humphries.

These conversations must move in both directions and provide space for a view of more than one specific OEM, to include “any auto company, for that matter” believes Humphries.

Dealers like Caletti, who have been on the brand gallery floor, understand exactly what the customer has seen, and this increases engagement, raising the level of the conversation. “You can have a much more informed dialogue with that guest” notes Caletti. “I know where you were, I know what you saw, and we are able to speak intelligently about what their experience was.”

The car buying process can continue on from where the customer left off at the gallery, instead of having to start over. “It’s all about complementing the experience, instead of taking them back to that introductory 101 again,” says Caletti.

He describes this pop-up power play, as a “two-pronged” strategy, where Toyota Canada “works hard to drive brand perception and attitude towards brand, and then drives those customers to us, the dealers, to hopefully turn those leads into sales.”

Individual dealers lack the money to produce this type of attention-grabbing retail interruption, so the OEM takes care of the “cost prohibitive” nature of the initiative, Caletti explains.

OEMs vs. Dealers

Whenever an OEM introduces a new way to reach consumers directly, it’s natural for dealers to raise a wary eyebrow, and be protective of their franchise agreements that protect their rights in any given locale.

Brand gallery pop-ups and other retail strategies that “catch customers up stream” in the car-buying process, can appear to dealers and stakeholders as a way for the OEM to start to own the conversation with customers. Dealerships don’t want to risk playing a diminished role in the relationship with their customers.

Humphries says that at first, dealers did express their “trepidation” around pop-up brand galleries taking their place. But as the galleries continue to drive leads to dealerships, dealers are finding resonance with the new approach to retail.

“So what was first seen as a little bit of a ‘Hey! Who’s playing what position? And ‘Are we sure you’re not stepping on our toes’ — and vice versa — has turned into a really nice collaboration in the space, with the experience leading to a dealership visit,” Humphries explains.

He says that staff from various Toyota dealerships have even shown up at brand galleries reporting that they’ve had customers coming in to the dealerships who “talked all about the pop-up, and ‘we just needed to see it for ourselves.’”

“The partnership between OEMs and their dealers is one that is very healthy and should continue to last,” says Hébert, adding that it’s important to reach out to customers via the Internet, or any other channel that can facilitate a multi-channel marketing strategy.

Caletti says he does not believe that the pop-ups have anything to do with disintermediation between the OEM and the dealer. “If that was where they were going, obviously, there wouldn’t have been any support from the dealer perspective.”

“The galleries, the pop-ups, Towards Tomorrow by Toyota, were never designed to sell cars, physical units Everything that we do is with the goal of directing people to their closest Toyota dealership,” explains Humphries.

The product specialists do not have OMVIC licenses and are available to handle people’s questions while interacting with guests in a “very fun way that puts technology at the forefront,” he says.

“The point of the pop-ups is to get them to say ‘Hey, this is kind of cool — Toyota is a cool brand; this is something I’m interested in and I’d like to go learn more.”

At that point, the lead is forwarded on to the dealership.

Pardon the interruption

The one issue facing Toyota Canada brand galleries, is that of scale.

Humphries says connecting with pre-existing local partnerships helps both Toyota, the local business and allows Towards Tomorrow to become highly relevant to “local flavours and preferences.” For Fort McMurray, Alta, for example, trucks would be the gallery vehicle of choice, whereas in downtown Quebec City, hybrids and smaller vehicles would take centre stage.

This sense of local engagement starts with the individual, a new brand of buyer who wants to experience something different, fun and technologically-driven.

These shoppers are normally found beyond the showroom walls of the dealership — usually in cyberspace or in malls around the country.

Along with their comprehensive automotive knowledge, they bring curiosity to the shopping experience and challenge dealers and OEMs to create new channels to connect with them.

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Fair trade https://canadianautodealer.ca/2017/08/fair-trade/ Fri, 04 Aug 2017 00:24:14 +0000 https://canadianautodealer.ca/fair-trade/ A homegrown valuation tool is becoming popular among dealers and consumers for its reliability, speed and simplicity A new trade-in valuation tool designed for Canadians from the Canadian dealer perspective is quickly gaining traction with dealers and consumers around the country, said Marty Meadows, President, Mobials Inc. Built by the London, Ont. automotive industry technology... Read more »

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Marty Meadows, President, Mobials Inc.

A homegrown valuation tool is becoming popular among dealers and consumers for its reliability, speed and simplicity

A new trade-in valuation tool designed for Canadians from the Canadian dealer perspective is quickly gaining traction with dealers and consumers around the country, said Marty Meadows, President, Mobials Inc.

Built by the London, Ont. automotive industry technology tools provider, Tradesii is powered by Canadian Black Book, “the country’s most trusted brand for values” and an easy-to-use platform which generates the trade-in value of a vehicle in less than 10 seconds, said Meadows.

More than 250 dealers across Canada have signed on since the tool was launched in April, with an expected 100 more to join the service in the coming months, he said.

“We’re in a right now world,” said Meadows. “Consumers want information right now and if you don’t supply it to them in 10 seconds or less on the dealer’s website, they’re going to leave and go somewhere else.”

Meadows said Tradesii fulfills each of the reasons a consumer visits a dealer’s website: inventory search, figuring out if the dealer is trustworthy and finding out the trade-in value of their car.

“We are very transparent that there are reconditioning costs, there’s overhead, there’s net profit, there’s advertising costs,” said Meadows. “When they come into the dealership, which is the key for the dealer, Tradesii disarms the customer and gives them a good sense of roughly what the car is worth, which is why it’s selling so well.”

Tradesii guarantees a return on investment, said Meadows. “If we do not perform like we say we do, you let us know and it’s over — there’s no contract.”

Launched as the exclusive on-site trade-in valuation tool available to more than 3,000 dealers on Kijiji.ca, Tradesii keeps web traffic on site — leads are then passed to the dealer with the specific vehicle details searched for during the website visit.

Approximately 10 per cent of Kijiji-generated leads are coming directly through Tradesii with twenty per cent of those consumers being transitioned into actionable leads, said Meadows.

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CADA releases Laureate finalists video https://canadianautodealer.ca/2017/06/cada-releases-laureate-finalists-video/ Wed, 07 Jun 2017 18:48:46 +0000 https://canadianautodealer.ca/cada-releases-laureate-finalists-video/ The Canadian Automobile Dealers Association (CADA) released the names of the 15 finalists vying for the 2017 CADA Laureate Dealer Recognition Awards in a new video. The submissions from the 15 finalists will now be reviewed by independent judges from the Ivey Business School at Western University. They will then select the three Laureate winners... Read more »

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The Canadian Automobile Dealers Association (CADA) released the names of the 15 finalists vying for the 2017 CADA Laureate Dealer Recognition Awards in a new video.

The submissions from the 15 finalists will now be reviewed by independent judges from the Ivey Business School at Western University.

They will then select the three Laureate winners in the three categories of: Ambassadorship, Business Innovation Innovation and Business Operations.

The Laureate program is supported by an exclusive sponsorship with iA Dealer Services – SAL, who have been CADA’s partner in this annual celebration of dealer excellence since the inception of the Laureate program over a decade ago.

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Inside Automotive video: Michael Croxon, NewRoads Automotive Group https://canadianautodealer.ca/2017/06/inside-automotive-video-michael-croxon-newroads-automotive-group/ Wed, 07 Jun 2017 18:41:30 +0000 https://canadianautodealer.ca/inside-automotive-video-michael-croxon-newroads-automotive-group/ In this episode, Inside Automotive host and Canadian auto dealer columnist Chuck Seguin speaks with Michael Croxon, President and CEO, NewRoads Automotive Group. Different topics covered in the interview include NewRoads’ expansion north of Toronto, the group’s HR-deployment style after acquiring a new dealership and the process of merging different dealership cultures.

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In this episode, Inside Automotive host and Canadian auto dealer columnist Chuck Seguin speaks with Michael Croxon, President and CEO, NewRoads Automotive Group. Different topics covered in the interview include NewRoads’ expansion north of Toronto, the group’s HR-deployment style after acquiring a new dealership and the process of merging different dealership cultures.

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Eco-friendly car journey to launch on Parliament Hill https://canadianautodealer.ca/2017/06/eco-friendly-car-journey-to-launch-on-parliament-hill/ Wed, 07 Jun 2017 18:36:29 +0000 https://canadianautodealer.ca/eco-friendly-car-journey-to-launch-on-parliament-hill/ The Automobile Journalists Association of Canada (AJAC) is kicking off its sixth EcoRun on June 15 in Ottawa at a ceremony on Parliament Hill featuring the 19 fuel-efficient and eco-friendly vehicles that will drive a total of 670 kilometres, said the organization in a news release. Some of the country’s top automotive journalists will be... Read more »

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The Automobile Journalists Association of Canada (AJAC) is kicking off its sixth EcoRun on June 15 in Ottawa at a ceremony on Parliament Hill featuring the 19 fuel-efficient and eco-friendly vehicles that will drive a total of 670 kilometres, said the organization in a news release. Some of the country’s top automotive journalists will be driving the vehicles in real-world road conditions to test for fuel efficiency, the reduction of carbon dioxide emissions and to highlight the growing electric infrastructure being built in Quebec and Ontario.

To help inform consumers of “alternative options,” the new vehicles will have a broad range covering everything from subcompacts to pickup trucks, said the release.

The annual event includes the gamut of green vehicles from plug-in and conventional hybrids to hydrogen fuel cells, pure electrics and highly-efficient gasoline options.

Each stop along the route that begins in Ontario and is mostly centred in Quebec, has been chosen because of its existing charging infrastructure, scenery and activities available in the vicinity.

The event’s most eco-friendly driver will be awarded with the yearly Green Jersey award.

“As the voice of transportation fuels industry in Canada, the Canadian Fuels Association is pleased to be involved with AJAC’s EcoRun and sponsoring the Green Jersey,” said Peter Boag, President and CEO, Canadian Fuels Association.

Other sponsors of EcoRun include Natural Resources Canada, AddEnergie, Michelin North America (Canada) Inc. and Meo Electric.

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New trade-in valuation platform gaining momentum https://canadianautodealer.ca/2017/06/new-trade-in-valuation-platform-gaining-momentum/ Wed, 07 Jun 2017 18:29:55 +0000 https://canadianautodealer.ca/new-trade-in-valuation-platform-gaining-momentum/ Tradesii, a recently launched trade-in valuation tool is quickly gaining industry traction, as more than 250 dealers across Canada have signed on in the first three months since its release. Built by the London, Ont. automotive industry technology tools provider Mobials Inc., the off-the-shelf tool for dealer websites or larger vehicle aggregator sites is powered... Read more »

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Tradesii, a recently launched trade-in valuation tool is quickly gaining industry traction, as more than 250 dealers across Canada have signed on in the first three months since its release. Built by the London, Ont. automotive industry technology tools provider Mobials Inc., the off-the-shelf tool for dealer websites or larger vehicle aggregator sites is powered by valuation data provider, Canadian Black Book and has captured over three per cent of the country’s dealer market since April.

Launched as the exclusive on-site trade-in valuation tool available to more than 3,000 dealers on Kijiji.ca, Tradesii keeps web traffic on site, passes high quality, convertible leads to dealers while providing a positive consumer experience, said Marty Meadows, President, Mobials Inc.

“We’re in a right now world,” said Meadows. “Consumers want information right now and if you don’t supply it to them in 10 seconds or less on the dealer’s website, they’re going to leave and go somewhere else.”

Meadows pointed out that Tradesii was built by Canadians for the Canadian dealer perspective and uses “the most trusted brand in the country — Canadian Black Book — for values.”

Approximately 10 per cent of Kijiji-generated leads are coming directly through Tradesii with twenty per cent of those consumers being transitioned into actionable leads, said Meadows.

Consumers who visit the dealer website or larger vehicle aggregator sites, can look up their vehicle’s trade-in value by providing their contact information.

The average asking price of similar vehicles listed on CanadianBlackBook.com is part of the Tradesii report. Leads are passed to the dealer with the specific vehicle details searched for during the website visit.

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Twist Eco Car Wash saves water without using chemicals https://canadianautodealer.ca/2017/06/twist-eco-car-wash-saves-water-without-using-chemicals/ Tue, 06 Jun 2017 19:41:28 +0000 https://canadianautodealer.ca/twist-eco-car-wash-saves-water-without-using-chemicals/ K Detail Plus has launched a new retail-focused website to promote Twist Eco Car Wash, a car cleaning system that uses saturated dry steam and micro-fibre cloths to clean and sanitize vehicles, says Moneer Korban, owner of K Detail Plus and Dealer Principal of K Motors Inc. Manufactured in Italy by Menikini-General Vapeur, the machine... Read more »

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K Detail Plus has launched a new retail-focused website to promote Twist Eco Car Wash, a car cleaning system that uses saturated dry steam and micro-fibre cloths to clean and sanitize vehicles, says Moneer Korban, owner of K Detail Plus and Dealer Principal of K Motors Inc.

Manufactured in Italy by Menikini-General Vapeur, the machine uses no chemicals and requires about 12 litres of water per average work day. A traditional water cleaning method uses approximately 1,500 — 2,000 litres of water per work day and produces waste water.

The machine cleans the interior and exterior, undercarriage, and other hard-to-reach areas, is non-abrasive, and produces no waste water, says Korban.

“I saw a YouTube video of the machine and didn’t believe what I saw; so I took carpets with crystallized salt and grime from a van that had 500,000 km on it to Italy to test
it out — the deal was done then and there,” says Korban who holds the exclusive North American rights to sell and distribute the system units.

“There’s no calcium or residue from water, no swirl marks, so it’s completely dry,” says Korban. By applying the steam into a car’s vents, the steam spreads through the entire HVAC system, killing microorganisms, pollen, bacteria and irritants trapped in the system.

The machine’s nozzle emits steam at 10 bar, or 145 psi, and can be safely placed directly in front of one’s hand at a distance of 30 cm.

Twist Eco Car Wash is also safe to use around electrical components and wiring, allowing it to clean under the engine bay — once the heat is applied, the micro-fibre cloths pick up the grease and dirt.

“Use of the equipment at a dealership can represent everything from customer service — whether returning a vehicle, after service, or fully cleaned — to a profit centre where the dealership cleans and sanitizes the interior of a vehicle and charges for the service,” he explained.

Currently, Korban has three Ontario-based clients including Moffatt Autoworks Inc., ProTech Monte-Carlo and Car Lounge.

Twist Eco Car Wash has been sold in Europe for the last 15 years. Korban intends to create franchises across North America.

To find out more about Twist Eco Car Wash visit: www.kdetailplus.com.

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The new reality of used https://canadianautodealer.ca/2017/06/the-new-reality-of-used/ Tue, 06 Jun 2017 19:11:42 +0000 https://canadianautodealer.ca/the-new-reality-of-used/ How digital tools are changing the auction game and dealer priorities Integration, efficiency and transparency are foundational pillars for success in the automotive remarketing business. But the critical role of logistics, quick delivery and accuracy in sourcing the right vehicles turn these pillars from a set of broad strategic criteria into the indispensable prongs behind... Read more »

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Angus Tai, General Manager, Downtown Acura & Honda Downtown

How digital tools are changing the auction game and dealer priorities

Integration, efficiency and transparency are foundational pillars for success in the automotive remarketing business.

But the critical role of logistics, quick delivery and accuracy in sourcing the right vehicles turn these pillars from a set of broad strategic criteria into the indispensable prongs behind an effective vehicle sourcing strategy.

Tools of the trade

In its quest to resolve what it considers the biggest issues facing dealers today — i.e. which units to acquire; where to find them; where to pay for them and, of course, the perennial question: how much? — Cox Automotive recently launched a new merchandising model that tracks real-time shopper engagement through the lens of supply/demand and the dealer experience of selling the vehicles, says Jack Sulymka, Director, Marketing & Corporate Communications, Cox Automotive Canada.

“Our brands work together; they are fully integrated, which helps out at the end of the day with the dealer who manages vehicle purchases from the auction,” says Sulymka.

“Instead of just buying on feel and hoping they can eventually sell, the dealers are trying to use the data to know where they’re going to sell the cars, prior to even buying them,” says Brendan Reardon, Director of Outside Sales for VinSolutions, Cox Automotive’s chief CRM brand.

VinSolutions plays a key role in integrating a used car department with Xtime, Cox’s service scheduler, as well as vAuto, an additional brand “specific to the optimization of the used vehicle inventory,” says Reardon.

The CRM system has been in the U.S. for nine years, in Canada for four, and has recently been combined with Cox’s Manheim Auction service.

Manheim has achieved double-digit growth in digital remarketing transactions, according to the company’s 2017 Used Car Marketing Report. “Our clients are experiencing record-setting sales rates — averaging 70 per cent — with mobile auctions,” states the report.

“VinSolutions is the hub of connecting and providing an integrated solution to our client,” explains Sulymka.

Reardon says that the software allows dealers to recognize whether people have actually come to the dealership looking for a particular vehicle, which saves time and the cost of vehicle storage.

Additionally, vAuto’s Provision used-car software suite employs market data to assist the dealer in accurately determining hot moving vehicles in their market so they may be able to make an informed purchase decision at the auction, says Sulymka.

Change of plans

Improved technology, its increasing affordability and the constant availability of consumer-related information have created a highly-informed customer with almost omnipresent awareness of vehicle and pricing details.

This significant shift along the goods-services-sales continuum coupled with advancements in online auction tools, is changing the way some dealerships deal with used cars and their role in generating business.

“In the last 18 months, we have converted ourselves from ‘phase one’ where we used to be the seller, to ‘phase two’ where we purchase the used cars,” says Angus Tai, General Manager at Toronto’s Downtown Acura & Honda Downtown, owned by AWIN since 2012.

Tai explains that he has replaced the “traditional model” where a used car manager decides on both buying and selling, with a “strong team of dedicated purchasers” who work exclusively on buying cars from ADESA, other auction purveyors as well as Honda Financial Services.

Along with the digitally-informed shopper, U.S.-based used car auction purchasers are leveraging the weak loonie to their advantage, making purchases more difficult to keep in the Canadian market.

Tai says these two factors have turned the remarketing arena into a market-based reality, one where a dealer can no longer count on gross profit per unit sold, but must instead buy wholesale to succeed and grow one’s customer base.

“We are heavily involved with TradeRev; it’s a brilliant product that is revolutionary in terms of allowing auctions to happen online,” says Tai. “It allows you to put the vehicle on the auction block right away; then there are enough purchasers within the TradeRev forum, that they will bid on the vehicle right away.”

Despite the concept of online auctions not being new — in 2002, Cox Auto pioneered Simulcast for live auction participation — Tai says he appreciates TradeRev’s ability to make the process happen in its day-to-day operations.

Three years ago, Honda Downtown was using TradeRev to wholesale vehicles; now, it’s using the app to buy vehicles.

“We save time, energy, a lot of hassles and are able to look at all the vehicles and get them in for 35-45 day turns, as we enter phase two,” he says.

In 2016, Tai’s team hit a new benchmark of used to new sales with a 0.8:1 ratio.

“Used car potential, in my opinion, depends on inventory, not having the best sales managers,” he adds.

Making the connection

In April, TradeRev and ADESA struck a partnership deal, turning the homegrown online auction facilitator into the sole mobile tool of more than 120 dealership groups, including AWIN and Dilawri, and ADESA into these dealer groups’ exclusive physical auction partner.

The news followed on the heels of a KAR Auction Services announcement that it was adding $15 million to its TradeRev investment — KAR owns a 50 per cent stake in TradeRev through its ADESA business unit.

“There are multiple connection points between ADESA and TradeRev,” says TradeRev CEO, Mark Endras.

“But the integration most people use is the one that connects us with their auction management system, where with one click of a button, TradeRev calls their APIs (application programming interface) and provisions the process of moving a vehicle from a dealer’s lot, to a physical lot, to running it.”

Once that process is completed, the TradeRev and ADESA platforms provide updates, explains Endras, who launched his first software firm in 1999 and is also Senior Vice-President of his family’s business, Endras Auto Group.

“Basically what we’ve done, because of the technology, is that we now offer dealers remarketing processes that were initially only offered to the OEMs,” says Endras.

How efficiently one conducts retail transactions is the most important factor when looking to turn one’s inventory quickly, says Endras. “It’s not just about price discovery — it’s inventory discovery and matching real time consumer demand with real time inventory availability.”

The concept, says Endras, is to increase the velocity of the retail cycle.

The technology is enabling TradeRev to help dealers meet consumers’ demands for shorter-term contracts by making it possible for them to get rid of those cars and at the same time, find vehicles for the customers, he explains.

“There are those that really like the technology but use it as a supplement to the wholesale process; so for those people we created a standard version of the product with no subscription model.”

TradeRev also offers its subscription-based “Pro” version where the company gives performance rebates to dealers if they reach a certain volume level.

“Everything going mobile has created more efficiencies,” says Endras. “But what we’re seeing in the next wave now, is the proliferation of all this dealer warehousing, machine learning and AI, that are powering not only price discovery, but the best prices to sell vehicles at.”

Last month, TradeRev launched Upcoming, a feature that allows dealers to set proxy bids on vehicles they have researched, 24 hours before the auction goes live. The feature, said Endras, allows dealers to “set it and forget it” so they can spend their time with their customers on the showroom floor.

Advanced condition reports

On May 1, J.D. Power Valuation Services (formerly known as NADA Used Car Guide) announced that it had inked a deal with ClearVin to integrate NADA Values with ClearVin’s vehicle history reports.

“This gives dealers credible information to source vehicles at the right price,” says ClearVin CEO, Yury Strachuk.

“It becomes easy to see what type of margin any car can bring since both retail and trade-in values are included in every ClearVin report a dealer can get.”

Although many people still favour kicking the tires when “feeling out” a prospective purchase, Sulymka says that consumers can “buy with confidence” based on Cox Auto’s condition reports.

In conjunction with providing an online visual tour of the vehicle, Cox provides the reports before the vehicles are run at the auction — they include prior accidents, types of damage and other details.

“Each vehicle goes through the Electronic Vehicle Imagery System process (EVIS): it’s 360 degrees, high depth, interior/exterior, all angles — it allows someone purchasing online to zoom in and see the condition of the vehicle,” says Sulymka.

The condition report also applies to vehicles that don’t sell their first-time around, and is available through OVE, a 24/7 online inventory purchasing forum.

High-tech change

From an automotive software solutions company that combines the insights of its CRM system and service scheduling with auction-purchasing specific software, to the incorporation of a vehicle history provider’s reports with the conclusions of a leading valuation services provider, the remarketing sector is undergoing major changes.

The integration of the auction business is happening holus bolus — and it’s happening as fast as the technological change that are driving it.

And much like the marketing and customer retention facets within automotive, the fusion of integration, efficiency and transparency are forming exclusive partnerships that marshall the power of digital in the palm of the consumer’s hand.

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Banking on history and the future https://canadianautodealer.ca/2017/06/banking-on-history-and-the-future/ Tue, 06 Jun 2017 18:49:27 +0000 https://canadianautodealer.ca/banking-on-history-and-the-future/ National Bank set to offer clients quicker loan setups With a history stretching back to 1859, National Bank of Canada has remained an industry leader for more than 150 years by constantly innovating and looking out for its clients’ needs. This Montreal-based banking institution serves more than 4,500 merchant and dealer partners across Canada through... Read more »

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Jean-Jacques Bérubé, Deputy Vice-President — Merchant Relationships, National Bank of Canada

National Bank set to offer clients quicker loan setups

With a history stretching back to 1859, National Bank of Canada has remained an industry leader for more than 150 years by constantly innovating and looking out for its clients’ needs.

This Montreal-based banking institution serves more than 4,500 merchant and dealer partners across Canada through a dynamic team of 27 Business Development Managers operating at the local level.

National Bank’s Merchant Relationships team has real expertise that comes from experience.

Here’s a recap of an interview with Jean-Jacques Bérubé, who has had a 35-year career at the bank and has been Deputy Vice-President — Merchant Relationships, for the past 10 years.

Making dealers’ lives easier

Partnering with the auto sector, the Merchant Relationships team specializes in consumer financing.

National Bank has more than 20 years’ experience in this field and their team is fully committed to being an outstanding business partner for dealers.

Whether they’re giving dealers the support they need to maximize their sales, delivering fast financing or answering any questions that may come up, the team’s goal is to make each dealer partner’s life easier while streamlining the transaction for buyers.

Fast and easy: a winning combination

Simply offering financing solutions isn’t enough — being available to dealers is crucial.

National Bank focuses on convenience and speed when it comes to application processing. “What we often hear is that our payment process is fast and easy, which means there’s less paperwork to do,” Bérubé explained.

For example, in nearly 90 per cent of cases, the dealer receives an almost immediate reply in less than five minutes. “Our quick turnaround times put us out in front of the other financial institutions,” he added.

Coverage from coast to coast

Roberto Nardi, Senior Manager, Ontario and Manitoba

National Bank’s Merchant Relationships team covers the entire country.

Building out from well-established bases in Ontario, Quebec and Atlantic Canada, the team has broadened its reach into Western Canada during the past two years.

“Every year, we’ve been expanding our market shares in the auto sector. We already enjoy a very solid reputation in Quebec. Now we want to sustain that growth and roll out our best practices at the local level in other provinces,” said Jean-Jacques.

In conjunction with this cross-Canada expansion, the team has revamped its structure. To ensure that dealers’ needs are being met, it’s important to have a deep understanding of the market and remain attuned to what people want.

Darren Kiley, Senior Manager, Saskatchewan, Alberta and British Columbia

The team now has three Senior Managers: Roberto Nardi is in charge of Ontario and Manitoba, Darren Kiley covers Saskatchewan, Alberta and British Columbia, while Nathalie Laforest oversees the Atlantic and Quebec regions.

“Dealers want Business Development Managers to be available and know their markets well — that’s what we can offer.” Every Senior Manager is backed by a group of Business Development Managers.

The new structure enables Business Development Managers to be accessible to clients locally and adjust to their specific needs.

In line with that approach, National Bank has recently extended its hours for customer service staff working out of Montreal so that dealers anywhere in Western Canada can count on convenient service hours.

Major initiatives on the way

This summer, National Bank will be continuing to upgrade its systems for this sector by making a major investment in new technology to automate the financing process.

In just minutes, buyers will be able to have their loan funds advanced and their account opened at the bank. The loan account will be opened automatically as soon as the funds are advanced and the dealer payment is made. “I think this will put us at the leading edge,” Jean-Jacques noted.

Looking forward

2016 was an excellent year and 2017 is off to a great start.

But that kind of performance certainly isn’t based on luck; it depends on the right mix of convenience, synergy, processing speed, promotional offers and, of course, personalized service. That’s a good recipe for a very successful future!

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CARPROOF names new exec https://canadianautodealer.ca/2017/06/carproof-names-new-exec-2/ Mon, 05 Jun 2017 23:16:49 +0000 https://canadianautodealer.ca/carproof-names-new-exec-2/ CARPROOF, one of Canada’s leading vehicle valuation, history and appraisal providers has appointed Greg Beckman as its Vice-President, Product. ”CARPROOF has a proven history of harnessing data to fuel informed decisions,” said Beckman in a statement. “I look forward to guiding its product development in ways that will innovate and enhance the future of the... Read more »

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CARPROOF, one of Canada’s leading vehicle valuation, history and appraisal providers has appointed Greg Beckman as its Vice-President, Product.

”CARPROOF has a proven history of harnessing data to fuel informed decisions,” said Beckman in a statement. “I look forward to guiding its product development in ways that will innovate and enhance the future of the Canadian used car industry.”

Most recently, Beckman served as Senior Director, Product Management and Strategy at OpenText Corporation where he worked in strategic senior positions for eight years.

Beckman started at the company’s London, Ont. head office in April.

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Jerry Chenkin joins Dilawri in advisory role https://canadianautodealer.ca/2017/06/jerry-chenkin-joins-dilawri-in-advisory-role/ Mon, 05 Jun 2017 23:14:31 +0000 https://canadianautodealer.ca/jerry-chenkin-joins-dilawri-in-advisory-role/ Dilawri Group of Companies, the country’s largest automotive group, has named Jerry Chenkin as the Vice-Chair of its Advisory Board. Chenkin brings more than four decades of experience in the country’s automotive industry to his new role at Dilawri — he served as Honda Canada’s CEO for the last four years and retired from the... Read more »

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Dilawri Group of Companies, the country’s largest automotive group, has named Jerry Chenkin as the Vice-Chair of its Advisory Board.

Chenkin brings more than four decades of experience in the country’s automotive industry to his new role at Dilawri — he served as Honda Canada’s CEO for the last four years and retired from the position on March 31, 2017.

“After 42 years of working directly with manufacturing and distribution, I’m looking forward to providing strategic direction to Canada’s largest automotive group,” said Chenkin in a news release.

“Jerry has experience in both sales and production facilities, which is unique in Canada,” said Ajay Dilawri, one of the group’s three dealer principals.

Chenkin explained in the statement that he will not be involved in “day-to-day” operations, but will offer his “experience to help ensure the company moves forward as a leader in the industry.”

Dilawri emphasized the advantage Chenkin brings to the group with his loyalty to customer service and cutting-edge technology. “We know that his guidance will benefit all of our customers,” said Dilawri.

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Best footprint forward https://canadianautodealer.ca/2017/06/best-footprint-forward/ Mon, 05 Jun 2017 23:13:06 +0000 https://canadianautodealer.ca/best-footprint-forward/ TADA provides support to Mexican charity during annual conference When Elva Haro’s students walk by Canadian and American tourists in the sunny Mexican coastal city of San Jose Del Cabo, they do their best to smile at them; after all, Elva explains to the middle and high schoolers from low-income homes: “that person you smile... Read more »

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TADA provides support to Mexican charity during annual conference

When Elva Haro’s students walk by Canadian and American tourists in the sunny Mexican coastal city of San Jose Del Cabo, they do their best to smile at them; after all, Elva explains to the middle and high schoolers from low-income homes: “that person you smile at could be one of your donors.”

The Trillium Automobile Dealers Association recently added its friendly face to the crowd of generous supporters when it surprised Elva, Executive Director of LigaMAC, with a $10,000 contribution to support the nonprofit’s efforts in helping local youth complete their education, improve their English-language skills, prevent teenage pregnancy, and provide referral services to social and health care workers.

“It’s amazing that a group from so far away had a big heart to get interested in the people living in the San Jose area that they don’t even know,” says Elva, who oversees the distribution of funds to purchase uniforms, in-class and gym shoes and school supplies to 450 students.

“I think dealers expect our association to represent our industry at the highest level — wherever we go and whatever we do,” says Larry Lantz, TADA President and President of Hanover Honda.

The TADA was in Mexico in April for its annual five-day conference, attended by dealers, suppliers and industry partners.

Lantz says the conference was a “resounding success on all levels” and encourages those that have not yet attended to consider doing so. “We put on a great event with the perfect business and education mix,” he adds.

Speakers focused on improving training and Maria Soklis, President of Cox Automotive Canada, spoke about becoming empowered in a changing business reality.

The TADA board voted to “leave a positive footprint in Mexico” by continuing the precedent it set several years ago, when it went to St. Lucia and donated a fridge and other necessities to a local orphanage, says Lantz.

Elva said that Liga in Spanish means “rubber band” and MAC is an acronym standing for Mexicans, Americans, Canadians. The organization’s name therefore represents the “banding together” of people from these different countries, who have worked tirelessly to improve the lives of countless people since LigaMAC was founded 20 years ago by Canadian Pearl Pardy.

In February, Elva received an email from Bill Bratt, a colleague of the TADA who was inquiring about local charities. Bratt passed on LigaMAC’s information to the TADA which decided to make an in-kind donation to provide students with backpacks.

Giving an in-kind donation on an international basis presented several impediments connected to imports and taxes, explains Elva.

“Once it became clear that the TADA’s in-kind donation was not feasible, I didn’t expect anything more,” she says. “But the group visited the support centre, toured the facilities and asked questions; right then and there they gave me the news that they had decided to switch the in-kind donation with a cash donation!”

“I was very surprised and very grateful because this really helps us continue our programs,” she added.

LigaMAC “scholars” said Elva, are distributed among 10 middle schools, two universities and five high schools — the high school also requires students to pay additional registration fees which the organization covers on their behalf.

It costs roughly $480 to put one kid through school, Elva said.

“Dealers are always very generous in supporting various charities,” says TADA Executive Director, Todd Bourgon. “I think they can feel good that their organization is conscious about representing our industry both at home and abroad, in a positive light.”

Bourgon added that many of the conference participants made private donations while at the support centre and were very impressed with LigaMAC and its executive director.

Lantz says he thanks the vendors and dealers for attending and supporting the conference.

“Our board of directors is very grateful — especially the Canadian ones,” explains Elva.

To learn more about LigaMAC-sponsored scholarships, medical aid, advocacy and other initiatives, please visit: www.ligamac.org

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