October 2009
Newsletter
What Drives Customers To Purchase Service Work? (ATO)
1. Unusual credit activity, such as an increased number of accounts or inquiries.
2. Photograph on ID inconsistent with appearance of customer.
3. Information on ID inconsistent with information provided by person opening account.
Management
Ensuring that your dealership is running smoothly depends on maintaining a high level of reliability in a number of areas. Gain valuable insight from automotive incentive specialist Sherralyn Peterson on what you should be doing to stay on top of things. Read her article:
Marketing
Advertising and marketing is important even in tough times. Learn what advertising and marketing expert Henry Kwartler says about it. Read his article:
Training
Veteran business consultant Hal Scott shares his expertise on what drives customers to purchase service work. Read his article:
Industry News
Saturn To Stop Sales In Canada
General Motors and Penske Automotive Group plan to stop selling Saturn vehicles in Canada, which will result in the closure of 46 Saturn dealerships in the country, according to reports on Fox News and the Detroit Free Press. "GM and Penske have been exploring the potential sale and distribution of Saturn vehicles in Canada. After careful and thorough analysis, it was determined that the business case did not support distribution of Saturn vehicles in Canada," said GM spokesman Stew Low. Saturn dealers in Canada are to close their stores by the end of the year.
New Rule Prohibiting Unwanted "Robocalls" Takes Effect September 1 Telemarketers Must Obtain Prior Written Approval from Consumers Who Want to Receive Such Calls
Beginning September 1, 2009, prerecorded commercial telemarketing calls to consumers - commonly known as robocalls - will be prohibited, unless the telemarketer has obtained permission in writing from consumers who want to receive such calls, the Federal Trade Commission announced today. Read More
Text Messaging: Regulations for Dealer Communications with Customers
Communications with prospective customers or others via "text messaging" may be subject to a number of federal regulations. A text message may be deemed to be a phone call, an email or perhaps even both under federal law. At the request of NADA's IT Committee, NADA Legal Affairs has prepared a summary of the legal issues that dealers should consider before "texting." Click here for the summary.
New IRS Memo Addresses UNICAP Compliance
The IRS Industry Director, Heavy Manufacturing and Transportation, Large and Mid Size Business Division has issued a Sept. 15, 2009 memorandum entitled Tier III - Field Directive on the Planning and Examination of IRC § 263A issues in the Auto Dealership Industry. The memo and its attachments, which pertain to uniform capitalization (UNICAP) audits that IRS field examiners conduct at franchised car and truck dealerships, are available at www.nada.org/regulations (see the lead item). Dealers should consult with their tax practitioner concerning this development. (Source: NADA Regulatory Affairs)
Department of Justice Announces $6.8 Million to Fund Enhancements to National Motor Vehicle Title Program
WASHINGTON - The Department of Justice has awarded more than $6.8 million to 12 states and to the American Association of Motor Vehicle Administrators (AAMVA) to protect consumers from vehicle fraud and unsafe vehicles. AAMVA received $5.7 million to fully implement NMVTIS and make necessary system enhancements and relieve states from any user fees for the system in 2010. The funds will assist with implementation of the National Motor Vehicle Title Information System (NMVTIS), an electronic system launched for consumers in January 2009 that enables users to verify key automobile information. Read More
