BY: LAWRENCE S. SEARCY, JR.
Almost anyone who watches late night television is familiar with the convincing pitches for service contracts on out-of-warranty vehicles. Most of the commercials promise full coverage for repair bills regardless of the vehicle’s age or mileage. However, increasing media attention of these warranty companies is exposing what many call a telemarketing scam.
In June, 2009, I wrote an article about companies selling service contracts using automated telephone dialers and national commercials. At that time, the Better Business Bureau was warning consumers about unsolicited telemarketing calls from vehicle extended “warranty” companies. In the last three years, the BBB has received more than 1200 complaints and 33,000 inquiries on one of the companies, US Fidelis, based in St. Louis, Missouri. Moreover, a recent Federal Trade Commission settlement with another warranty company, Transcontinental Warranty Company, put the company out of business and awarded damages to victims. Transcontinental was involved in what the FTC called “Your Warranty is About to Expire” telemarketing and postcard scheme that involved more than 1 billion phone calls to consumers. More recently, the December 2009 issue of Car and Driver magazine exposed three companies’ attempts to use bait and switch tactics to get consumers to purchase products they either did not need or did not want. In the Car and Driver article the author called three warranty companies, US Fidelis, Mogi, and Stoprepairbills.com and exposed efforts to pressure consumers into buying products they did not need or would not pay claims for repair bills.
A quick internet search of these and other service contract companies reveals a host of consumer complaints and investigations by consumer groups and state’s attorneys general. Most of the complaints against these companies allege that customers were pressured into buying unwanted products, misled about the coverage that applied or excluded items that the consumer was told would be covered. The Federal Trade Commission (FTC.gov) and the Better Business Bureau (BBB.org) have excellent information on how to avoid being scammed by an extended warranty companies. (For some additional information see my article in the June 2009, Cenla Focus). The most important lesson is to research any company you do business with.
To avoid being scammed by these or any other company soliciting information by phone or internet, be cautious of the information you give. The Better Business Bureau advises consumers to check its web site for the company’s grade. All of these companies mentioned above have a grade of “F” with the BBB, which is the lowest possible grade. Also, use state resources like the Attorney General, the state’s motor vehicle commission or the state automobile dealer association. Each of these agencies can receive complaints and steer consumers to the appropriate reporting agency for a particular issue.
As a general rule, buy products from the people you know and trust. Locally, extended service contracts can be purchased from your local car dealer. These companies are invested in the community in both location and employees. If there is a problem, you can go directly to the dealer for a resolution. If you are not comfortable going to your selling dealer, call one of the agencies listed above to get information on reputable alternatives for purchasing an extended service contract.
When purchasing any warranty product, ask specifically what items are covered by the contract and those that will be excluded. All contracts will exclude maintenance items like tires, oil changes, windshield wipers and the like. Be sure to ask when coverage begins and when it ends. Some coverages are based on mileage while other are based on years in service or a combination of both
It is important to understand the exact price of the service contract and if a deductible exists for a repair. Some contracts have no deductible, some have a single deductible per items repaired, and others require a single deductible payment for each service visit. Also, ask whether the coverage can be cancelled and, if so, whether a refund will be issued to you for the unused term. Many consumers will sell or transfer their vehicle and may be entitled to a refund for amounts paid but not used during the term of the contract.
Protect yourself by dealing with those you know and trust. Do not give out personal information over the phone or by mail to anyone you do not know. Read the manufacturer’s warranty and be sure that you do not pay for coverage that the manufacturer already provides. Finally, trust your instincts. If something sounds too good to be true, it usually is.
Thursday, November 19, 2009
Tuesday, November 3, 2009
Treats in Trunks Raises Money for Charity
On Saturday October 31, 2009 Saturn of Alexandria and Walker Automotive hosted the Third Annual Treats in Trunks event. The successful event raised almost $1,000 for the United Way of Central Louisiana and AMIKids - Alexandria. The ability to raise this money was due in large part to the many sponsors who donated time, money, food and gifts to the event. Special thanks to the following:
- Sonic on Jackson Street and Tad Hunter
- Opus Broadcasting and Country 103
- Cheryl Jones and CJ Karaoke
- Jon Oats and his pony rides
- Autotrader and Pam Lee
- AMIKids for volunteers
- Alexandria Fire Department
- Sheriff Chuck Wagner, Vince Meadows and the Rapides Parish Sheriff's SWAT Unit
- United Way of Central Louisiana and its volunteers
- Kroger stores
- News Channel 5
- ABC 31
- KSYL Morning Show
- All of the employees at Walker Automotive who donated money to the charities
Tuesday, October 20, 2009
WHAT IS THE DIFFERENCE BETWEEN A CERTIFIED PRE-OWNED VEHICLE AND A PROGRAM CAR?
By: Lawrence S. Searcy, Jr.
In a tight economy many consumers opt for a used vehicle rather than a new vehicle to save money. Consumers are often presented with different terms like Certified Pre-Owned or Program Car when shopping for a quality pre-owned vehicle. While the terms “certified pre-owned” and “program” vehicle are often used interchangeably by car buyers, they have completely different meanings. A certified pre-owned or “CPO” is one sold by a manufacturer’s franchised dealer on the dealer’s used car lot after undergoing a rigorous inspection. A program car, on the other hand, is a loosely defined term that could include rental cars, vehicles driven by employees or dealer demonstrator car. The reason the distinction is important is because with the consolidations and closings in franchised dealerships, many non-franchised used-car dealers are advertising “program cars” as if they were certified by the manufacturer. Since these dealerships no longer have a new car franchise, they cannot “certify” a used car in accordance with the manufacturer’s guidelines.
In 2008, more than 700 franchised dealerships closed across the country. By July 2009 the number of closings for the year had already topped 1,000 with an estimated 2,200 closings by the end of the year according to the National Automobile Dealers Association. Many were closed because of the economic downturn and many others will close because of the General Motors and Chrysler bankruptcies. Some of these closed franchised dealerships are trying to survive with a used car only operation. In an attempt to maintain a competitive edge, these used car dealers are advertising “program cars” to appear as if they have passed the rigorous tests associated with a certified used car.
A program car is usually defined in the car industry as a late model used car with low mileage. A dealer demonstrator may also be referred to as a program car but it must be sold as a new vehicle since it has never been registered or titled. According to Carfax, approximately 70% of “program cars” are rental cars that are subsequently sold at car auctions. They may not undergo any type of pre-sale inspection and are not sold with any type of extension of the manufacturer’s warranty. A program car may have some of the remaining factory warranty left on it but an additional service contract will cost the buyer extra money.
A “certified pre-owned car” on the other hand must be sold by a franchised dealer and undergo a rigorous inspection process. The vehicle must fit within the manufacturer’s mileage and age restrictions and cannot have prior damage or suspicious title histories. Most CPO programs require a Carfax report or similar title history be given to the customer. The Carfax report will detail the car’s origin, title history and any reported accidents in the vehicle. In addition, the CPO program will extend the manufacturers warranty on the vehicle for additional time and mileage. A program car does not have to meet these requirements.
As an example, General Motors’ CPO program requires that only certified GM dealers sell CPO cars. The vehicles must be less than 4 years old and have a mileage restriction of less than 75,000 miles. GM-trained technicians will conduct a 117-point inspection of the vehicle and repair any non-conforming item. The dealer will also check the Carfax report and be sure no deficiencies exist with the title or damage history. Once the vehicle passes inspection, it will have an additional 12-month or 12,000-mile warranty attached to it from the date of sale. Also, the powertrain warranty will extend to 100,000 miles or 5 years from the original in-service date. Other manufacturers programs are similar and can be found by looking at the manufacturer’s website.
Before buying any pre-owned vehicle, research the dealership, the manufacturer’s Certified program, and the vehicle itself on the internet. Any additional questions should be answered directly by the sales associate. If a dealer is reluctant to disclose the CPO inspection report or the Carfax report, go to a dealer that will provide the information willingly. For more automotive news and information about car purchases, visit http://www.walkerautomotive.com/.
In a tight economy many consumers opt for a used vehicle rather than a new vehicle to save money. Consumers are often presented with different terms like Certified Pre-Owned or Program Car when shopping for a quality pre-owned vehicle. While the terms “certified pre-owned” and “program” vehicle are often used interchangeably by car buyers, they have completely different meanings. A certified pre-owned or “CPO” is one sold by a manufacturer’s franchised dealer on the dealer’s used car lot after undergoing a rigorous inspection. A program car, on the other hand, is a loosely defined term that could include rental cars, vehicles driven by employees or dealer demonstrator car. The reason the distinction is important is because with the consolidations and closings in franchised dealerships, many non-franchised used-car dealers are advertising “program cars” as if they were certified by the manufacturer. Since these dealerships no longer have a new car franchise, they cannot “certify” a used car in accordance with the manufacturer’s guidelines.
In 2008, more than 700 franchised dealerships closed across the country. By July 2009 the number of closings for the year had already topped 1,000 with an estimated 2,200 closings by the end of the year according to the National Automobile Dealers Association. Many were closed because of the economic downturn and many others will close because of the General Motors and Chrysler bankruptcies. Some of these closed franchised dealerships are trying to survive with a used car only operation. In an attempt to maintain a competitive edge, these used car dealers are advertising “program cars” to appear as if they have passed the rigorous tests associated with a certified used car.
A program car is usually defined in the car industry as a late model used car with low mileage. A dealer demonstrator may also be referred to as a program car but it must be sold as a new vehicle since it has never been registered or titled. According to Carfax, approximately 70% of “program cars” are rental cars that are subsequently sold at car auctions. They may not undergo any type of pre-sale inspection and are not sold with any type of extension of the manufacturer’s warranty. A program car may have some of the remaining factory warranty left on it but an additional service contract will cost the buyer extra money.
A “certified pre-owned car” on the other hand must be sold by a franchised dealer and undergo a rigorous inspection process. The vehicle must fit within the manufacturer’s mileage and age restrictions and cannot have prior damage or suspicious title histories. Most CPO programs require a Carfax report or similar title history be given to the customer. The Carfax report will detail the car’s origin, title history and any reported accidents in the vehicle. In addition, the CPO program will extend the manufacturers warranty on the vehicle for additional time and mileage. A program car does not have to meet these requirements.
As an example, General Motors’ CPO program requires that only certified GM dealers sell CPO cars. The vehicles must be less than 4 years old and have a mileage restriction of less than 75,000 miles. GM-trained technicians will conduct a 117-point inspection of the vehicle and repair any non-conforming item. The dealer will also check the Carfax report and be sure no deficiencies exist with the title or damage history. Once the vehicle passes inspection, it will have an additional 12-month or 12,000-mile warranty attached to it from the date of sale. Also, the powertrain warranty will extend to 100,000 miles or 5 years from the original in-service date. Other manufacturers programs are similar and can be found by looking at the manufacturer’s website.
Before buying any pre-owned vehicle, research the dealership, the manufacturer’s Certified program, and the vehicle itself on the internet. Any additional questions should be answered directly by the sales associate. If a dealer is reluctant to disclose the CPO inspection report or the Carfax report, go to a dealer that will provide the information willingly. For more automotive news and information about car purchases, visit http://www.walkerautomotive.com/.
Friday, October 9, 2009
TREATS IN TRUNKS
On October 31, 2009 Saturn of Alexandria will sponsor the third annual Walker Automotive “Treats in Trunks”. This event provides a safe trick or treat location for families. Walker employees will hand out candy and there will be a host of fun games and treats for people of all ages. This year’s event will raise money for The United Way of Central Louisiana and AMIKids – Alexandria. The scheduled time for the event is from 4:30 p.m. to 6:00 p.m., at Saturn of Alexandria, 1515 Dorchester, Alexandria. Every year local companies contribute to assist with the event in the form of donations and prizes. Look for the November Newsletter which will contain a full list of companies that helped make Treats in Trunks possible. For more information, contact Khristi Romero at 318-445-6421.
AMI Kids is a non-profit organization dedicated to helping troubled youth develop into responsible and productive citizens. AMI Kids has been active in Alexandria since 2006, there are 56 AMI Kids programs in eight states including 9 programs in Louisiana. The United Way is a non-profit local partnership that links donors and helping agencies with business, government, and other key players in central Louisiana to build a stronger community.
AMI Kids is a non-profit organization dedicated to helping troubled youth develop into responsible and productive citizens. AMI Kids has been active in Alexandria since 2006, there are 56 AMI Kids programs in eight states including 9 programs in Louisiana. The United Way is a non-profit local partnership that links donors and helping agencies with business, government, and other key players in central Louisiana to build a stronger community.
Thursday, September 24, 2009
Can You Text Customers?
TEXTING IN BUSINESS
BY: LAWRENCE S. SEARCY, JR.
In 2007, more than 363 billion text messages were sent in the United States. That number has since risen to more than 1 trillion messages a year in 2008. According to a recent Nielsen poll, teenagers between the ages of 13 and 17 text an average of 1,742 times per month. Most of this messaging is person-to-person. However, with texting popularity rising among all age groups, businesses are starting to use it as a tool to communicate with customers. Many businesses use texting to advertise, promote a product or event, or notify customers of sales. What used to go into the mail is now being sent by e-mail or text.
At first glance, most businesses would not see a problem with texting customers about a special offer. However, there are legalities that must first be considered. Unfortunately, the law has not caught up with technology and texting is caught in the middle of some outdated laws that apply to other mediums such as telephones and emails. Federal agencies, courts and regulatory bodies are now struggling with how to categorize a text message and apply the old rules to a new technology.
Is a text message a phone call?
A federal law called the Federal Telephone Consumer Protection Act (TCPA) generally governs telephone calls. The problem is that the act itself does not define the term telephone call. Instead the regulatory body enforcing the law, the Federal Communications Commission (FCC), considers a text a call even though the law giving the FCC its power does not define it one way or the other. If a text is treated as a call, then businesses need to be aware of at least two implications.
1. A business cannot text a message to any number that is on a business “Do Not Call" list” or on the national “Do Not Call" list.
2. A business cannot send a text message to a cellular phone regardless of whether the number is on the "Do Not Call" list, if the text is sent from an automatic dialer or “robo-dialer.” Be careful because any computer may be considered an automatic dialer.
Is a text message an e-mail?
If the text is considered an e-mail, then any communications to consumers in e-mail format are subject to the “CAN SPAM” Act. The Can Spam Act is another federal law regulating e-mail messages and their content. For example, all commercial solicitation e-mails must contain the sender’s name, physical address, and a notice that the program is cost- free. Additionally, the consumer must have an opportunity to “opt-out” of additional solicitations. Moreover, the FCC has regulations that prohibit sending commercial e-mail messages to mobile devices without express prior permission.
Is a text message both an e-mail and a phone call?
According to the FCC, a text message qualifies as both an e-mail and a call. If this is the case, then businesses wishing to use the technology should comply with both sets of regulations. To do so, be sure to do the following things before sending the messages:
1. Get express prior permission from the recipient before sending the message.
2. Review your company's personal "Do Not Call" list to be sure the recipient is not on the list.
3. Review the national "Do Not Call" list to be sure the recipient is not on the list.
4. Determine if the delivery of the message complies with all of the requirements of the CAN SPAM Act.
In the end, each business needs to determine if the risks of texting are worth the compliance hassles. It may be better to hire an experienced outside consulting firm to implement the program. Also, always be sure to consult with an experienced attorney about compliance issues before starting a new program.
BY: LAWRENCE S. SEARCY, JR.
In 2007, more than 363 billion text messages were sent in the United States. That number has since risen to more than 1 trillion messages a year in 2008. According to a recent Nielsen poll, teenagers between the ages of 13 and 17 text an average of 1,742 times per month. Most of this messaging is person-to-person. However, with texting popularity rising among all age groups, businesses are starting to use it as a tool to communicate with customers. Many businesses use texting to advertise, promote a product or event, or notify customers of sales. What used to go into the mail is now being sent by e-mail or text.
At first glance, most businesses would not see a problem with texting customers about a special offer. However, there are legalities that must first be considered. Unfortunately, the law has not caught up with technology and texting is caught in the middle of some outdated laws that apply to other mediums such as telephones and emails. Federal agencies, courts and regulatory bodies are now struggling with how to categorize a text message and apply the old rules to a new technology.
Is a text message a phone call?
A federal law called the Federal Telephone Consumer Protection Act (TCPA) generally governs telephone calls. The problem is that the act itself does not define the term telephone call. Instead the regulatory body enforcing the law, the Federal Communications Commission (FCC), considers a text a call even though the law giving the FCC its power does not define it one way or the other. If a text is treated as a call, then businesses need to be aware of at least two implications.
1. A business cannot text a message to any number that is on a business “Do Not Call" list” or on the national “Do Not Call" list.
2. A business cannot send a text message to a cellular phone regardless of whether the number is on the "Do Not Call" list, if the text is sent from an automatic dialer or “robo-dialer.” Be careful because any computer may be considered an automatic dialer.
Is a text message an e-mail?
If the text is considered an e-mail, then any communications to consumers in e-mail format are subject to the “CAN SPAM” Act. The Can Spam Act is another federal law regulating e-mail messages and their content. For example, all commercial solicitation e-mails must contain the sender’s name, physical address, and a notice that the program is cost- free. Additionally, the consumer must have an opportunity to “opt-out” of additional solicitations. Moreover, the FCC has regulations that prohibit sending commercial e-mail messages to mobile devices without express prior permission.
Is a text message both an e-mail and a phone call?
According to the FCC, a text message qualifies as both an e-mail and a call. If this is the case, then businesses wishing to use the technology should comply with both sets of regulations. To do so, be sure to do the following things before sending the messages:
1. Get express prior permission from the recipient before sending the message.
2. Review your company's personal "Do Not Call" list to be sure the recipient is not on the list.
3. Review the national "Do Not Call" list to be sure the recipient is not on the list.
4. Determine if the delivery of the message complies with all of the requirements of the CAN SPAM Act.
In the end, each business needs to determine if the risks of texting are worth the compliance hassles. It may be better to hire an experienced outside consulting firm to implement the program. Also, always be sure to consult with an experienced attorney about compliance issues before starting a new program.
Monday, September 14, 2009
WALKER #21 ON WARDS LIST FOR USED CARS
Every year “Wards Dealer Business” magazine publishes a list of the 150 most successful used vehicle dealerships in the country. The annual list, published each September, ranks dealerships according to total revenue. This year, Walker Automotive ranks #21 nationwide on the list. No other dealer in Louisiana made the list. This distinction comes two months after Walker was named #64 on the Ward’s annual list of the nation’s largest dealerships.
Foster Walker, III, President of Walker Automotive, said he is pleased with the ranking and that the people in the organization are the ones deserving praise. “This ranking marks a significant achievement for our business. In a year when the industry is showing signs of slowing, Walker Automotive continues to excel in all of our operations. This is a real testament to the people in our organization. We are fortunate to have a great sales and management team. They work hard each day and are passionate about their profession. Their enthusiasm shows through our continued growth in a time when the industry as a whole is struggling,” Walker said.
Ray Leggio, Used Car Manager at Walker’s Big Lot Used Cars on MacArthur Drive (one of Walker’s three used car locations), said that the key to success is the right product mix and a number of financing options. “We try to have the vehicles in stock that people want. With the right inventory, we are able to offer competitive financing options through local banks, national lending institutions, credit unions and alternative lending for those customers who may have a negative credit history,” Leggio said.
Wards Dealer Business is an automotive trade publication distributed monthly to more than 25,000 automotive dealers. The annual used vehicle rankings are issued each September with an analysis of the top performing used vehicle retailers based on total used vehicle revenue. In 2008, Walker automotive retailed more than 2,100 used units with a total used revenue in excess of $40 million.
Walker Automotive is a fourth generation family company with more than 180 employees. Walker was founded in 1919 as Alexandria Auto Company, Inc., by Foster Walker, Sr. After returning from World War I, Foster Walker, Sr., began selling Durant, Reo and Star automobiles from a gas station in downtown Alexandria. That business eventually became Walker Oldsmobile Company and is now run by Foster Walker, III. Ninety years after its inception, the dealership has expanded from its meager origins to three new and used vehicle locations, eight manufacturers, three service departments and a collision center. Over the last nine decades, Walker has won numerous national and factory awards for all aspects of its business and offers new and pre-owned vehicles ranging from quality entry level models to German luxury vehicles.
Foster Walker, III, President of Walker Automotive, said he is pleased with the ranking and that the people in the organization are the ones deserving praise. “This ranking marks a significant achievement for our business. In a year when the industry is showing signs of slowing, Walker Automotive continues to excel in all of our operations. This is a real testament to the people in our organization. We are fortunate to have a great sales and management team. They work hard each day and are passionate about their profession. Their enthusiasm shows through our continued growth in a time when the industry as a whole is struggling,” Walker said.
Ray Leggio, Used Car Manager at Walker’s Big Lot Used Cars on MacArthur Drive (one of Walker’s three used car locations), said that the key to success is the right product mix and a number of financing options. “We try to have the vehicles in stock that people want. With the right inventory, we are able to offer competitive financing options through local banks, national lending institutions, credit unions and alternative lending for those customers who may have a negative credit history,” Leggio said.
Wards Dealer Business is an automotive trade publication distributed monthly to more than 25,000 automotive dealers. The annual used vehicle rankings are issued each September with an analysis of the top performing used vehicle retailers based on total used vehicle revenue. In 2008, Walker automotive retailed more than 2,100 used units with a total used revenue in excess of $40 million.
Walker Automotive is a fourth generation family company with more than 180 employees. Walker was founded in 1919 as Alexandria Auto Company, Inc., by Foster Walker, Sr. After returning from World War I, Foster Walker, Sr., began selling Durant, Reo and Star automobiles from a gas station in downtown Alexandria. That business eventually became Walker Oldsmobile Company and is now run by Foster Walker, III. Ninety years after its inception, the dealership has expanded from its meager origins to three new and used vehicle locations, eight manufacturers, three service departments and a collision center. Over the last nine decades, Walker has won numerous national and factory awards for all aspects of its business and offers new and pre-owned vehicles ranging from quality entry level models to German luxury vehicles.
Tuesday, August 25, 2009
Buyer Beware
Buyer Beware
By: Lawrence S. Searcy, Jr.
On a Saturday afternoon, while reading through one of the many automobile trade magazines that come to the office, I noticed another article about two used vehicle dealers being arrested for odometer fraud. Unfortunately, this kind of crime is not uncommon and despite federal laws aimed at protecting consumers, a number of unsuspecting car buyers are defrauded each year by odometer fraud. In this particular article two dealers in Wyoming conspired for four years to misrepresent the mileage on the vehicles that they sold. The dealers would allegedly buy high mileage vehicles and then roll back the odometers and change title documents to increase the value of the car. Every customer that bought a car from these two dealers could have prevented the fraud with a little extra investigation into the car’s history.
This story is important because it notes a growing trend in used car sales. Even though digital odometers are more sophisticated than their old mechanical cousins, they are not immune from tampering. In fact, the National Highway Safety and Traffic Administration (NHSTA) estimated that between 2002 and 2005 approximately 450,000 vehicles have been sold each year with false odometer readings. Total cost of the fraud to consumers is estimated at $1 billion annually.
Congress passed the Federal Odometer Law to prohibit the disconnection, resetting, or alteration of a vehicle’s odometer with the intent to change the mileage stated on it. The law now requires written mileage disclosures to all buyers when ownership is transferred. The law was passed because Congress realized that consumers rely heavily on the mileage to determine issues of price, safety, and reliability.
To protect yourself from unscrupulous dealers, research the vehicle before you purchase. It is best to buy from a reputable franchised dealer and ask questions about the car’s history. For instance, Walker Automotive offers a free Carfax on every pre-owned vehicle. By offering the Carfax upfront, customers can be confident that they are buying a quality, pre-owned vehicle. Providing the customer with a free Carfax report gives the customer the peace of mind that the vehicle has not been wrecked, damaged, or driven more miles than stated on the odometer. If a dealer refuses to give you a Carfax report or similar ownership information, the buyer should be suspicious and use extra caution before purchasing that car from that dealer.
A Carfax report can also be ordered online with the 17 character Vehicle Identification Number (VIN) and for a nominal fee. Each report will contain title information, flood damage reports, total loss accident history, lemon law or other manufacturer buy back claims, the number of owners and other pertinent information.
In addition to Carfax, official state reports on vehicle can be obtained from the state for a nominal fee. Louisiana provides the records by requesting information from the Department of Public Safety, Motor Vehicle Division, in Baton Rouge. A charge of $7.50 will be required for the records. Be sure to contact the office at (225) 925-6388 before making the request because the costs may have changed. When requesting the documents from the DMV be sure to specify what type of information you want and include the VIN, the year, make and model of vehicle. If you suspect that a vehicle odometer may have been tampered, a complaint can be made to the Louisiana Attorney General Auto Fraud Section in Baton Rouge.
Pre-owned vehicles can cost a lot of money and a little investigation can go a long way. Protect yourself from fraud by researching the vehicle’s ownership history before you buy. Beware of dealers that won’t give you the information for free or won’t access the information while you are at the dealership. A Carfax report can be obtained in minutes and it might make the difference of thousands of dollars in the selling price.
By: Lawrence S. Searcy, Jr.
On a Saturday afternoon, while reading through one of the many automobile trade magazines that come to the office, I noticed another article about two used vehicle dealers being arrested for odometer fraud. Unfortunately, this kind of crime is not uncommon and despite federal laws aimed at protecting consumers, a number of unsuspecting car buyers are defrauded each year by odometer fraud. In this particular article two dealers in Wyoming conspired for four years to misrepresent the mileage on the vehicles that they sold. The dealers would allegedly buy high mileage vehicles and then roll back the odometers and change title documents to increase the value of the car. Every customer that bought a car from these two dealers could have prevented the fraud with a little extra investigation into the car’s history.
This story is important because it notes a growing trend in used car sales. Even though digital odometers are more sophisticated than their old mechanical cousins, they are not immune from tampering. In fact, the National Highway Safety and Traffic Administration (NHSTA) estimated that between 2002 and 2005 approximately 450,000 vehicles have been sold each year with false odometer readings. Total cost of the fraud to consumers is estimated at $1 billion annually.
Congress passed the Federal Odometer Law to prohibit the disconnection, resetting, or alteration of a vehicle’s odometer with the intent to change the mileage stated on it. The law now requires written mileage disclosures to all buyers when ownership is transferred. The law was passed because Congress realized that consumers rely heavily on the mileage to determine issues of price, safety, and reliability.
To protect yourself from unscrupulous dealers, research the vehicle before you purchase. It is best to buy from a reputable franchised dealer and ask questions about the car’s history. For instance, Walker Automotive offers a free Carfax on every pre-owned vehicle. By offering the Carfax upfront, customers can be confident that they are buying a quality, pre-owned vehicle. Providing the customer with a free Carfax report gives the customer the peace of mind that the vehicle has not been wrecked, damaged, or driven more miles than stated on the odometer. If a dealer refuses to give you a Carfax report or similar ownership information, the buyer should be suspicious and use extra caution before purchasing that car from that dealer.
A Carfax report can also be ordered online with the 17 character Vehicle Identification Number (VIN) and for a nominal fee. Each report will contain title information, flood damage reports, total loss accident history, lemon law or other manufacturer buy back claims, the number of owners and other pertinent information.
In addition to Carfax, official state reports on vehicle can be obtained from the state for a nominal fee. Louisiana provides the records by requesting information from the Department of Public Safety, Motor Vehicle Division, in Baton Rouge. A charge of $7.50 will be required for the records. Be sure to contact the office at (225) 925-6388 before making the request because the costs may have changed. When requesting the documents from the DMV be sure to specify what type of information you want and include the VIN, the year, make and model of vehicle. If you suspect that a vehicle odometer may have been tampered, a complaint can be made to the Louisiana Attorney General Auto Fraud Section in Baton Rouge.
Pre-owned vehicles can cost a lot of money and a little investigation can go a long way. Protect yourself from fraud by researching the vehicle’s ownership history before you buy. Beware of dealers that won’t give you the information for free or won’t access the information while you are at the dealership. A Carfax report can be obtained in minutes and it might make the difference of thousands of dollars in the selling price.
Tuesday, August 18, 2009
Walker WOW Factors
- On any given day Walker Automotive has almost 1,000 vehicles in stock.
- Every year more than 4,000 customers purchase from Walker Automotive.
- In June 2009 Walker Automotive was named #64 on the list of the largest automobile dealers in
- Walker Automotive is the largest volume dealer in
- Our employees have an average tenure at the dealership of more than 10 years.
- Walker Automotive is the only
- Walker Automotive has an A+ rating from the Better Business Bureau
Friday, July 31, 2009
How to Get a Free Credit Report
A credit report contains information about individuals, their income, bill paying habits, address, lawsuits, arrest records and bankruptcies. Every consumer is entitled to a free credit report every 12 months and all individuals should take advantage of this right to insure the information is correct.
The federal legislation known as the Fair Credit Reporting Act (FCRA) controls credit information and requires the nationwide consumer reporting agencies (Experian, TransUnion, and Equifax) to provide consumers with a free copy of the report when a written request is made. The purpose of the legislation is to promote the fairness, accuracy and privacy of the information in the consumer’s file. This is important because businesses use the credit score to evaluate applications for credit, insurance, employment and leasing.
Under the Act you have the right to know what information is in the credit file and whether that information has been used against you to deny credit. If the information is incorrect or incomplete it can be disputed and corrected. As a general rule of thumb, credit agencies cannot report derogatory information older than seven years or bankruptcies older than ten years.
While many websites promote free credit reports, there is only one website authorized to fill orders for free reports: annualcreditreport.com. Other websites that offer free reports are not part of the federally mandated free program and may try to sell consumers additional products in exchange for the credit report. It is important to note that annualcreditreport.com will never send a solicitation e-mail requesting personal information. If you get a solicitation from a company claiming to be from the free program do not respond by giving out personal information. If you prefer to use the telephone you can call 1-877-322-8228 or mail a request to P.O. Box 105281, Atlanta, Ga. 30348-5281. The government website at ftc.gov/credit has a wealth of information about credit scoring and the information that will usually be found on a credit report.
If you order the report on-line it will be available immediately. If you order by phone the report should take about two weeks to be mailed. The same is true when you request a copy by mail. If inaccuracies are found, you must report the inaccurate information in writing. The company will perform an investigation and usually respond within 30 days. The agency must give you written results of the investigation and another free copy of the report if the information has changed as a result of the report. For more information go to www.ftc.gov.
The federal legislation known as the Fair Credit Reporting Act (FCRA) controls credit information and requires the nationwide consumer reporting agencies (Experian, TransUnion, and Equifax) to provide consumers with a free copy of the report when a written request is made. The purpose of the legislation is to promote the fairness, accuracy and privacy of the information in the consumer’s file. This is important because businesses use the credit score to evaluate applications for credit, insurance, employment and leasing.
Under the Act you have the right to know what information is in the credit file and whether that information has been used against you to deny credit. If the information is incorrect or incomplete it can be disputed and corrected. As a general rule of thumb, credit agencies cannot report derogatory information older than seven years or bankruptcies older than ten years.
While many websites promote free credit reports, there is only one website authorized to fill orders for free reports: annualcreditreport.com. Other websites that offer free reports are not part of the federally mandated free program and may try to sell consumers additional products in exchange for the credit report. It is important to note that annualcreditreport.com will never send a solicitation e-mail requesting personal information. If you get a solicitation from a company claiming to be from the free program do not respond by giving out personal information. If you prefer to use the telephone you can call 1-877-322-8228 or mail a request to P.O. Box 105281, Atlanta, Ga. 30348-5281. The government website at ftc.gov/credit has a wealth of information about credit scoring and the information that will usually be found on a credit report.
If you order the report on-line it will be available immediately. If you order by phone the report should take about two weeks to be mailed. The same is true when you request a copy by mail. If inaccuracies are found, you must report the inaccurate information in writing. The company will perform an investigation and usually respond within 30 days. The agency must give you written results of the investigation and another free copy of the report if the information has changed as a result of the report. For more information go to www.ftc.gov.
Monday, July 20, 2009
WALKER NAMED TOP DEALER IN THE COUNTRY
Every year “Wards Dealer Business” Magazine publishes a list of the 500 biggest automobile dealerships in the country. The annual list has been published for 22 consecutive years and ranks dealerships according to total revenue. While overall sales in the industry took a nose-dive, Walker Automotive advanced 11 spaces from number 75 to number 64 on the list. No other Dealer in Alexandria or Central Louisiana made the list.
Foster Walker, President of Walker Automotive said that he is please with the ranking and that the people in the organization are really the ones who should get credit for its success. “Without the tremendous sales, service and support team that we have in place we would be unable to continually grow in an era when so much pressure is put on retail sales,” Walker said. “We remain committed to honesty and integrity in every facet of our business and it is this philosophy that has earned our company an outstanding reputation and continued prosperity.” Walker continued.
Mr. Walker also emphasized that as a fourth generation family company, Walker Automotive always tries to do what is in the best interest of its customers. “Our customers make it possible for us to be and stay in business and we realize that customer loyalty is the key to generations of success. We believe that we are rewarded for our efforts by the vast majority of our customers who are repeat and lifetime buyers.”
Walker was founded in 1919 as Alexandria Auto Company, Inc. by Foster Walker Sr. After returning from World War I, Foster Walker Sr. began selling Durant, Reo and Star automobiles from a gas station in Downtown Alexandria. That business eventually became Walker Oldsmobile Company and is now run by Foster Walker III. Ninety years after its inception the dealership has expanded from its meager origins to three locations, 8 manufacturers, three service departments and a collision center. Over the last 9 decades, Walker has won numerous national and factory awards for all aspects of its business and offers new and pre-owned vehicles ranging from quality entry level models to German luxury vehicles.
Foster Walker, President of Walker Automotive said that he is please with the ranking and that the people in the organization are really the ones who should get credit for its success. “Without the tremendous sales, service and support team that we have in place we would be unable to continually grow in an era when so much pressure is put on retail sales,” Walker said. “We remain committed to honesty and integrity in every facet of our business and it is this philosophy that has earned our company an outstanding reputation and continued prosperity.” Walker continued.
Mr. Walker also emphasized that as a fourth generation family company, Walker Automotive always tries to do what is in the best interest of its customers. “Our customers make it possible for us to be and stay in business and we realize that customer loyalty is the key to generations of success. We believe that we are rewarded for our efforts by the vast majority of our customers who are repeat and lifetime buyers.”
Walker was founded in 1919 as Alexandria Auto Company, Inc. by Foster Walker Sr. After returning from World War I, Foster Walker Sr. began selling Durant, Reo and Star automobiles from a gas station in Downtown Alexandria. That business eventually became Walker Oldsmobile Company and is now run by Foster Walker III. Ninety years after its inception the dealership has expanded from its meager origins to three locations, 8 manufacturers, three service departments and a collision center. Over the last 9 decades, Walker has won numerous national and factory awards for all aspects of its business and offers new and pre-owned vehicles ranging from quality entry level models to German luxury vehicles.
Monday, June 29, 2009
Gap Protection
For most people, buying a car will be one of the largest single purchases of their life. In addition to the daunting task of picking the right car with the correct trim package, you also have to arrange financing and secure insurance coverage before driving off of the lot. Unfortunately, the minute the vehicle is purchased it begins depreciating such that it may not be insured for what you owe in the event the car is totaled or stolen. Most people think that when they buy “full coverage” insurance that the car loan will be paid off in the event that the car is later totaled. In many instances this assumption is incorrect.
In the early part of a vehicle loan, most people are “upside down” in their vehicle. That means the value of the vehicle is less than what is owed is owed to the finance company. When this occurs there is a “gap” between what the insurance company will pay for the total loss and what is actually owed to the finance company. There is, however, a special kind of protection called “Gap Coverage” that is designed to protect consumers from being upside down in the event of a total loss. Simply put, the protection pays the “gap” between what the insurance company pays (minus your deductible) to the finance company for the loss and what you owe the finance company. In many cases there is a gap because the actual cash value of the vehicle is far less that what is owed on the loan.
Here is how it happens:
Basic Information:
What you owe the bank when car is totaled: $23,000.00
Actual value (what the insurance pays you) $20,000.00
Primary insurance deductible $1,000.00
Insurance Payment:
Actual Value: $20,000
Minus Customer Deductible -$1,000
=============
Amount Insurance Pays $19,000
What you owe the bank $23,000
Minus amount paid by Insurance - $19,000
=============
Amount needed to payoff car loan (“GAP”) $4,000
Gap coverage would pay this $4,000 in the event there was a total loss. Without Gap, another $4,000 would have to be paid to the finance company before purchasing another vehicle or $4,000 negative equity would have to be rolled into another loan agreement.
Because of the large amount of customers that are now financing negative equity or taking low annual percentage rates in lieu of rebates, Gap protection is becoming more popular. In fact, in Louisiana, every customer purchasing a vehicle with credit must be offered the opportunity to purchase or decline Gap coverage. Buyers who choose to put little or no money down on a vehicle, or those who roll unpaid balances into their new loan, probably need Gap coverage. The same is true for those buyers who extend their loan terms beyond 48 months or add expensive accessories to the vehicle and roll the amount into the loan agreement.
Gap coverage can be purchased from many places but is easiest to obtain from the car dealership at the time you purchase your vehicle. The amount of the coverage is purchased separately but may be included in your finance agreement. The charge varies but is usually paid for with a single premium charge for the coverage. In many cases, Gap coverage bought at the dealership will also cover the amount of any insurance deductible. Other Gap policies may not offer deductible protection so it is best to ask before purchasing. Finally, Gap will not cover amounts already paid to the lender, past due premiums, personal property taxes or other charges. If you think you may need Gap coverage, contact your local new car dealer for more information.
In the early part of a vehicle loan, most people are “upside down” in their vehicle. That means the value of the vehicle is less than what is owed is owed to the finance company. When this occurs there is a “gap” between what the insurance company will pay for the total loss and what is actually owed to the finance company. There is, however, a special kind of protection called “Gap Coverage” that is designed to protect consumers from being upside down in the event of a total loss. Simply put, the protection pays the “gap” between what the insurance company pays (minus your deductible) to the finance company for the loss and what you owe the finance company. In many cases there is a gap because the actual cash value of the vehicle is far less that what is owed on the loan.
Here is how it happens:
Basic Information:
What you owe the bank when car is totaled: $23,000.00
Actual value (what the insurance pays you) $20,000.00
Primary insurance deductible $1,000.00
Insurance Payment:
Actual Value: $20,000
Minus Customer Deductible -$1,000
=============
Amount Insurance Pays $19,000
What you owe the bank $23,000
Minus amount paid by Insurance - $19,000
=============
Amount needed to payoff car loan (“GAP”) $4,000
Gap coverage would pay this $4,000 in the event there was a total loss. Without Gap, another $4,000 would have to be paid to the finance company before purchasing another vehicle or $4,000 negative equity would have to be rolled into another loan agreement.
Because of the large amount of customers that are now financing negative equity or taking low annual percentage rates in lieu of rebates, Gap protection is becoming more popular. In fact, in Louisiana, every customer purchasing a vehicle with credit must be offered the opportunity to purchase or decline Gap coverage. Buyers who choose to put little or no money down on a vehicle, or those who roll unpaid balances into their new loan, probably need Gap coverage. The same is true for those buyers who extend their loan terms beyond 48 months or add expensive accessories to the vehicle and roll the amount into the loan agreement.
Gap coverage can be purchased from many places but is easiest to obtain from the car dealership at the time you purchase your vehicle. The amount of the coverage is purchased separately but may be included in your finance agreement. The charge varies but is usually paid for with a single premium charge for the coverage. In many cases, Gap coverage bought at the dealership will also cover the amount of any insurance deductible. Other Gap policies may not offer deductible protection so it is best to ask before purchasing. Finally, Gap will not cover amounts already paid to the lender, past due premiums, personal property taxes or other charges. If you think you may need Gap coverage, contact your local new car dealer for more information.
Thursday, June 4, 2009
Walker Automotive Selected as a Key Dealer By GM
By Lawrence S. Searcy, Jr.
Walker Automotive is pleased to announce that on June 1, 2009 it was selected as a General Motors “Key Dealer” for its Buick and GMC brands. On June 1, 2009 General Motors filed for Chapter 11 bankruptcy protection with the Federal Bankruptcy Court in the Southern District of New York. In doing so, GM hopes to reinvent itself with fewer, stronger and a more properly located dealer network. GM’s selection of Walker Automotive as a Key Dealer shows the confidence that GM has in Walker being part of the new GM.
Throughout the years, Walker Automotive has endured many changes in the automotive business. This year represents Walker’s 90th birthday and Walker is excited about the next 90 years. GM’s announcement means that Walker will continue to sell and service GMC and Buick vehicles well into the future. The Pontiac brand will be phased out over the next 18 months but Walker will continue to provide sales support, warranty service and parts on the all Pontiac vehicles into the foreseeable future.
“We remain committed to honesty and integrity in every facet of our business and it is this philosophy that has earned our company an outstanding reputation and longevity,” said Foster Walker III, President of Walker Automotive. Mr. Walker emphasized that as a fourth generation family company, Walker Automotive always tries to do what is in the best interest of its customers. “Our customers make it possible for us to be and stay in business and we realize that customer loyalty is the key to generations of success. We believe that we are rewarded for our efforts by the vast majority of our customers who are repeat and lifetime buyers.”
Walker was founded in 1919 as Alexandria Auto Company, Inc. by Foster Walker Sr. After returning from World War I, Foster Walker Sr. began selling Durant, Reo and Star automobiles from a gas station in Downtown Alexandria. That business eventually became Walker Oldsmobile Company and is now run by Foster Walker III. Ninety years after its inception the dealership has expanded from its meager origins to three locations, 8 manufacturers, three service departments and a collision center. Over the last 9 decades, Walker has won numerous national and factory awards for all aspects of its business and offers new and pre-owned vehicles ranging from quality entry level models to German luxury vehicles.
Walker Automotive is pleased to announce that on June 1, 2009 it was selected as a General Motors “Key Dealer” for its Buick and GMC brands. On June 1, 2009 General Motors filed for Chapter 11 bankruptcy protection with the Federal Bankruptcy Court in the Southern District of New York. In doing so, GM hopes to reinvent itself with fewer, stronger and a more properly located dealer network. GM’s selection of Walker Automotive as a Key Dealer shows the confidence that GM has in Walker being part of the new GM.
Throughout the years, Walker Automotive has endured many changes in the automotive business. This year represents Walker’s 90th birthday and Walker is excited about the next 90 years. GM’s announcement means that Walker will continue to sell and service GMC and Buick vehicles well into the future. The Pontiac brand will be phased out over the next 18 months but Walker will continue to provide sales support, warranty service and parts on the all Pontiac vehicles into the foreseeable future.
“We remain committed to honesty and integrity in every facet of our business and it is this philosophy that has earned our company an outstanding reputation and longevity,” said Foster Walker III, President of Walker Automotive. Mr. Walker emphasized that as a fourth generation family company, Walker Automotive always tries to do what is in the best interest of its customers. “Our customers make it possible for us to be and stay in business and we realize that customer loyalty is the key to generations of success. We believe that we are rewarded for our efforts by the vast majority of our customers who are repeat and lifetime buyers.”
Walker was founded in 1919 as Alexandria Auto Company, Inc. by Foster Walker Sr. After returning from World War I, Foster Walker Sr. began selling Durant, Reo and Star automobiles from a gas station in Downtown Alexandria. That business eventually became Walker Oldsmobile Company and is now run by Foster Walker III. Ninety years after its inception the dealership has expanded from its meager origins to three locations, 8 manufacturers, three service departments and a collision center. Over the last 9 decades, Walker has won numerous national and factory awards for all aspects of its business and offers new and pre-owned vehicles ranging from quality entry level models to German luxury vehicles.
Wednesday, May 20, 2009
Warranties and Extended Service Contracts
Warranties and Extended Service Contracts
By: Lawrence S. Searcy, Jr.
I received an e-mail this week from the Better Business Bureau warning consumers about unsolicited calls from vehicle extended “warranty” companies. These “warranty” companies have attracted attention from congress because of the number of calls received on home and cell phones. Congress is now considering measures to stop calls from computer assisted dialers (“robo-callers”) to consumers hawking these after-market products. Telemarketers are using the automated dialers to pose as manufacturer representatives and contact consumers claiming that the consumer’s manufacturer warranty is about to expire. The call solicits the customer to purchased extended warranty coverage on the vehicle. While the context of these calls is deceptive, purchasing an extended service contract may sometimes be in the consumer’s best interest.
What is an Extended Service Contract?
A warranty and an extended service contract are not the same thing even though the terms are often used interchangeably. Warranties are offered on new products at the time of purchase. Warranties are protected by federal law under the Magnason-Moss Warranty Act. The act, passed in 1975, requires all manufacturers and sellers of new and unused consumer products to provide the consumer with detailed information about warranty coverage. In vehicle sales, every new vehicle sold in the United States has a limited time transferrable warranty that covers mechanical breakdown for a period of miles or years, whichever comes first. The warranty is published in the vehicle’s operating manual and specifically details the items covered and the length of coverage. Most people will be familiar with the standard 3-year / 36,000-mile warranty.
“Extended Service Contracts” are not warranties. They are supplemental coverage to the manufacturer’s factory warranty and can be purchased separately by the consumer. They provide mechanical repair protection for items not covered by the manufacturer’s warranty or for items that fail after the lapse of the manufacturer’s warranty. Extended service contracts are not called warranties because under the law, warranties cannot be sold. For people who will keep their vehicle beyond the coverage period of the new vehicle warranty, an extended service contract will allow the consumer to know their total out of pocket repair expenses through the life of the contract – for example 5 years /100,000 miles.
Who can Purchase an Extended Service Contract?
Extended service contracts can be purchased for new, used and manufacturer certified used vehicles. A consumer may want one for a new vehicle to cover items not normally covered by the manufacturer or to use when the original factory warranty expires. On a used or certified used vehicle, the same may apply. There may be some remaining factory warranty but the consumer wants to be protected for expensive repair costs when the original warranty expires. Extended service plans may even be purchased after you have owned the vehicle but before the expiration of the original warranty. For these types of contracts, the company usually requires that a certified service center inspect the vehicle before the contract can be written to cover the vehicle. The best place to inquire about one of these products is from your local selling dealer. When you purchase from the selling dealer you know that the dealer will honor the program when you bring you vehicle in for service. Further, the dealer is associated with the manufacturers and is the most knowledgeable about the coverage that would best fit your vehicle.
Today’s vehicles have more than 14,000 moving parts, on-board computers, entertainment centers and a host of other amenities. Because of the complex interaction of all of the mechanical and electrical parts, the odds are in favor of something going wrong with a vehicle during the ownership experience. Unfortunately, the average costs of repairs are expensive. For instance, engine repairs can cost as much as $6,000.00 while something as mundane as an air conditioning compressor can cost more than $1,500. Facing these repair costs, many people elect to purchase an extended service contract at the time they purchase their vehicle.
What is Covered?
When considering an extended service contract, it is important that the selling dealer notify you what will or will not be covered. The list of non-covered items should be limited to maintenance items (oil, filters, coolant, and scheduled service), wearable replacement items (battery, shocks, struts, break pads, rotors, etc.), and appearance items (exterior molding, ornamental items, metal, paint, etc.). The price for the contract will vary with the duration in years and mileage and there may be a deductible for each claim. Additionally, the price will increase for diesel engines, four-wheel-drive trucks or high-end foreign vehicles. Each selling dealer should be able to provide a list in advance of the items that will be covered and those that will not and the complete out-of-pocket cost for the contract.
Questions to Ask a Selling Dealer.
A selling dealer should be willing to disclose to you all of the information about the company that backs its extended service products. Ask the dealer how long the dealer has been doing business with the company. Be sure to ask the cost of the product in advance and how much it may increase your monthly payment on the vehicle. Be sure to understand any limitations on the contract and the duration of the coverage. Ask whether the contract is transferable or whether a refund will be issued to you in the event you sell the vehicle before the end of the protection period. If there is a deductible, ask the amount and whether it is a per-claim deductible.
In addition to coverage for repairs, many extended service contracts offer other benefits and features. A 24-hour towing and roadside assistance benefit may be included for a flat tire, dead battery or other emergency. Some products offer replacement car rental during repairs and nationwide acceptance at other dealers in the event you are away from your selling dealer during a mechanical breakdown.
Like most other products, a consumer should beware of unknown and unwanted solicitation by phone or e-mail. Instead, it is best to see your local dealer for extended service products and information. Your dealer can give you specific information about the products that are best suited for your type and age of vehicle and can also offer a range of financing options. In the long-term, extended service contracts can limit your out-of-pocket repair costs and increase the long term value of your vehicle.
By: Lawrence S. Searcy, Jr.
I received an e-mail this week from the Better Business Bureau warning consumers about unsolicited calls from vehicle extended “warranty” companies. These “warranty” companies have attracted attention from congress because of the number of calls received on home and cell phones. Congress is now considering measures to stop calls from computer assisted dialers (“robo-callers”) to consumers hawking these after-market products. Telemarketers are using the automated dialers to pose as manufacturer representatives and contact consumers claiming that the consumer’s manufacturer warranty is about to expire. The call solicits the customer to purchased extended warranty coverage on the vehicle. While the context of these calls is deceptive, purchasing an extended service contract may sometimes be in the consumer’s best interest.
What is an Extended Service Contract?
A warranty and an extended service contract are not the same thing even though the terms are often used interchangeably. Warranties are offered on new products at the time of purchase. Warranties are protected by federal law under the Magnason-Moss Warranty Act. The act, passed in 1975, requires all manufacturers and sellers of new and unused consumer products to provide the consumer with detailed information about warranty coverage. In vehicle sales, every new vehicle sold in the United States has a limited time transferrable warranty that covers mechanical breakdown for a period of miles or years, whichever comes first. The warranty is published in the vehicle’s operating manual and specifically details the items covered and the length of coverage. Most people will be familiar with the standard 3-year / 36,000-mile warranty.
“Extended Service Contracts” are not warranties. They are supplemental coverage to the manufacturer’s factory warranty and can be purchased separately by the consumer. They provide mechanical repair protection for items not covered by the manufacturer’s warranty or for items that fail after the lapse of the manufacturer’s warranty. Extended service contracts are not called warranties because under the law, warranties cannot be sold. For people who will keep their vehicle beyond the coverage period of the new vehicle warranty, an extended service contract will allow the consumer to know their total out of pocket repair expenses through the life of the contract – for example 5 years /100,000 miles.
Who can Purchase an Extended Service Contract?
Extended service contracts can be purchased for new, used and manufacturer certified used vehicles. A consumer may want one for a new vehicle to cover items not normally covered by the manufacturer or to use when the original factory warranty expires. On a used or certified used vehicle, the same may apply. There may be some remaining factory warranty but the consumer wants to be protected for expensive repair costs when the original warranty expires. Extended service plans may even be purchased after you have owned the vehicle but before the expiration of the original warranty. For these types of contracts, the company usually requires that a certified service center inspect the vehicle before the contract can be written to cover the vehicle. The best place to inquire about one of these products is from your local selling dealer. When you purchase from the selling dealer you know that the dealer will honor the program when you bring you vehicle in for service. Further, the dealer is associated with the manufacturers and is the most knowledgeable about the coverage that would best fit your vehicle.
Today’s vehicles have more than 14,000 moving parts, on-board computers, entertainment centers and a host of other amenities. Because of the complex interaction of all of the mechanical and electrical parts, the odds are in favor of something going wrong with a vehicle during the ownership experience. Unfortunately, the average costs of repairs are expensive. For instance, engine repairs can cost as much as $6,000.00 while something as mundane as an air conditioning compressor can cost more than $1,500. Facing these repair costs, many people elect to purchase an extended service contract at the time they purchase their vehicle.
What is Covered?
When considering an extended service contract, it is important that the selling dealer notify you what will or will not be covered. The list of non-covered items should be limited to maintenance items (oil, filters, coolant, and scheduled service), wearable replacement items (battery, shocks, struts, break pads, rotors, etc.), and appearance items (exterior molding, ornamental items, metal, paint, etc.). The price for the contract will vary with the duration in years and mileage and there may be a deductible for each claim. Additionally, the price will increase for diesel engines, four-wheel-drive trucks or high-end foreign vehicles. Each selling dealer should be able to provide a list in advance of the items that will be covered and those that will not and the complete out-of-pocket cost for the contract.
Questions to Ask a Selling Dealer.
A selling dealer should be willing to disclose to you all of the information about the company that backs its extended service products. Ask the dealer how long the dealer has been doing business with the company. Be sure to ask the cost of the product in advance and how much it may increase your monthly payment on the vehicle. Be sure to understand any limitations on the contract and the duration of the coverage. Ask whether the contract is transferable or whether a refund will be issued to you in the event you sell the vehicle before the end of the protection period. If there is a deductible, ask the amount and whether it is a per-claim deductible.
In addition to coverage for repairs, many extended service contracts offer other benefits and features. A 24-hour towing and roadside assistance benefit may be included for a flat tire, dead battery or other emergency. Some products offer replacement car rental during repairs and nationwide acceptance at other dealers in the event you are away from your selling dealer during a mechanical breakdown.
Like most other products, a consumer should beware of unknown and unwanted solicitation by phone or e-mail. Instead, it is best to see your local dealer for extended service products and information. Your dealer can give you specific information about the products that are best suited for your type and age of vehicle and can also offer a range of financing options. In the long-term, extended service contracts can limit your out-of-pocket repair costs and increase the long term value of your vehicle.
Wednesday, March 25, 2009
Buy Local
Since the beginning of the recession, economic downturn or whatever you may want to call the current state of the economy, legislative leaders from local governments, statehouses and national politicians have begun touting “Buy Local” campaigns. Even before the economic downturn, cities like Las Vegas and Baltimore were experiencing shrinking tax revenue from on-line sales. In response, large “buy local” campaigns were started to urge local residents to keep tax dollars in the community.
In December 2008 and January 2009 Louisiana Governor Bobby Jindal and Baton Rouge Mayor Kip Holden hit the airwaves to launch buy local campaigns. These public service announcements were possible with free airtime provided by Cox media. Suddenlink Communications and local Alexandria stations teamed up to run ads touting the message that now is a great time to purchase a car. Noticeably absent, however, were any local elected officials leading a buy local movement. I do understand, however, that Alexandria is now launching some type of campaign called “Smartalex” under the direction of Mayor Roy’s community development team.
Why the sudden interest in buy local campaigns? With the downturn in the economy, cities are seeing tax revenue dry up from lost tax dollars generated from sales taxes. Car dealers are major contributors sales tax revenues nationwide simply by virtue of the dollar value of the items they sale. Simply put, car dealers generate millions in tax dollars every year for the state and local communities. In 2007 (the most recent year numbers are available), Louisiana car dealers put up some staggering numbers:
Average Dealership sales: $31.6 Million
Total Sales from New vehicle dealers: $10.6 Billion
Dealership sales as a percent of retail sales: 21%
Total number of new vehicle dealer employees: 18,210
Average number of employees per dealership: 54
Average annual earnings per employee: $43,342
Annual average payroll of dealerships: $2.33 Million
Slow car sales mean decreased tax revenue flowing to the city and local governments from sales tax revenue, corporate tax revenue, and payroll tax revenue.
Studies show that for every dollar spent locally the recirculation rate of that dollar in the community is many times higher than if the dollar is spent in another community. In other words, purchasing outside your community is supporting another’s tax base. Locally, automobile dealers employ several hundred people in sales, administrative jobs, as technicians, and managers. Average salaries at local dealerships are higher than the median wage in other industries. Moreover, local automobile dealers give generously to local charities. When local citizens go out of town to purchase automobiles, local tax revenue dries up, employment opportunities at dealerships shrink, wages go down and charitable contributions shrink.
Why is this important now? As you drive around the city look at the advertising license plates on the front and back of your friends and neighbors vehicles. Then look at your local politicians – police jurors, mayors, city council members, and school board members. Look also at your local business leaders – real estate agents, local shop owners, entrepreneurs, and corporate executives. What do you see? Are they are driving a car that they purchased out of town or from a local dealer? If from out of town, calculate the dollar impact this has on your community. How many direct and indirect jobs are affected by a single automobile purchase outside the community?
According to Donna Andries at the Rapides Parish Sales Tax office, tax revenues in 2007 from motor vehicles sales totaled $10,122,639. That number decreased 10% in 2008 to $9,051,975. Automobile sales in the Alexandria area year to date 2009 from 2008 are down 31.5% for domestic cars, 28.6% for import cars and 32.6% for trucks. Of course, a decrease in sales in 2009 is expected. However, the impact locally can be drastically reduced if those people who are going to buy this year do so locally instead of out of town.
On Tuesday, March 24, 2009 the Alexandria City Council debated a measure to use surplus funds to balance the budget for this fiscal year. Councilman Chuck Fowler noted that the reason for the buildup in the surplus was because of the increased tax revenue over the last several years. Councilman Fowler then specifically noted that usually sales taxes would increase, but this year an increase is unlikely specifically due to the decline in new car sales. This may mean decreased funding from the city for Mardi Gras, Downtown Rocks, the Alexandria Zoo, Art Walk and other discretionary programs that make our community unique.
Alexandria needs a buy local campaign and it needs it now. All of our public officials need to get behind the movement and support all of our local retailers regardless of size. Simply put, support you local business, their employees, and the charities that they support. Support those people and politicians in your community who buy local and keep tax dollars in the community to pay for the services we need and enjoy.
In December 2008 and January 2009 Louisiana Governor Bobby Jindal and Baton Rouge Mayor Kip Holden hit the airwaves to launch buy local campaigns. These public service announcements were possible with free airtime provided by Cox media. Suddenlink Communications and local Alexandria stations teamed up to run ads touting the message that now is a great time to purchase a car. Noticeably absent, however, were any local elected officials leading a buy local movement. I do understand, however, that Alexandria is now launching some type of campaign called “Smartalex” under the direction of Mayor Roy’s community development team.
Why the sudden interest in buy local campaigns? With the downturn in the economy, cities are seeing tax revenue dry up from lost tax dollars generated from sales taxes. Car dealers are major contributors sales tax revenues nationwide simply by virtue of the dollar value of the items they sale. Simply put, car dealers generate millions in tax dollars every year for the state and local communities. In 2007 (the most recent year numbers are available), Louisiana car dealers put up some staggering numbers:
Average Dealership sales: $31.6 Million
Total Sales from New vehicle dealers: $10.6 Billion
Dealership sales as a percent of retail sales: 21%
Total number of new vehicle dealer employees: 18,210
Average number of employees per dealership: 54
Average annual earnings per employee: $43,342
Annual average payroll of dealerships: $2.33 Million
Slow car sales mean decreased tax revenue flowing to the city and local governments from sales tax revenue, corporate tax revenue, and payroll tax revenue.
Studies show that for every dollar spent locally the recirculation rate of that dollar in the community is many times higher than if the dollar is spent in another community. In other words, purchasing outside your community is supporting another’s tax base. Locally, automobile dealers employ several hundred people in sales, administrative jobs, as technicians, and managers. Average salaries at local dealerships are higher than the median wage in other industries. Moreover, local automobile dealers give generously to local charities. When local citizens go out of town to purchase automobiles, local tax revenue dries up, employment opportunities at dealerships shrink, wages go down and charitable contributions shrink.
Why is this important now? As you drive around the city look at the advertising license plates on the front and back of your friends and neighbors vehicles. Then look at your local politicians – police jurors, mayors, city council members, and school board members. Look also at your local business leaders – real estate agents, local shop owners, entrepreneurs, and corporate executives. What do you see? Are they are driving a car that they purchased out of town or from a local dealer? If from out of town, calculate the dollar impact this has on your community. How many direct and indirect jobs are affected by a single automobile purchase outside the community?
According to Donna Andries at the Rapides Parish Sales Tax office, tax revenues in 2007 from motor vehicles sales totaled $10,122,639. That number decreased 10% in 2008 to $9,051,975. Automobile sales in the Alexandria area year to date 2009 from 2008 are down 31.5% for domestic cars, 28.6% for import cars and 32.6% for trucks. Of course, a decrease in sales in 2009 is expected. However, the impact locally can be drastically reduced if those people who are going to buy this year do so locally instead of out of town.
On Tuesday, March 24, 2009 the Alexandria City Council debated a measure to use surplus funds to balance the budget for this fiscal year. Councilman Chuck Fowler noted that the reason for the buildup in the surplus was because of the increased tax revenue over the last several years. Councilman Fowler then specifically noted that usually sales taxes would increase, but this year an increase is unlikely specifically due to the decline in new car sales. This may mean decreased funding from the city for Mardi Gras, Downtown Rocks, the Alexandria Zoo, Art Walk and other discretionary programs that make our community unique.
Alexandria needs a buy local campaign and it needs it now. All of our public officials need to get behind the movement and support all of our local retailers regardless of size. Simply put, support you local business, their employees, and the charities that they support. Support those people and politicians in your community who buy local and keep tax dollars in the community to pay for the services we need and enjoy.
Wednesday, March 18, 2009
Walker is 90 - Happy Birthday
WALKER AUTOMOTIVE CELEBRATES 90 YEARS
IN CENTRAL LOUISIANA
By: Lawrence S. Searcy, Jr.
March 2009 represents a milestone for Walker Automotive as the local car dealership celebrates its 90th birthday. Walker was founded in 1919 as Alexandria Auto Company, Inc. by Foster Walker Sr. After returning from World War I, Foster Walker Sr. began selling Durant, Reo and Star automobiles from a gas station in Downtown Alexandria. That business eventually became Walker Oldsmobile Company and is now run by Foster Walker III. Ninety years after its inception the dealership has expanded from its meager origins to three locations, 8 manufacturers, three service departments and a collision center. Over the last 9 decades, Walker has won numerous national and factory awards for all aspects of its business and offers new and pre-owned vehicles ranging from quality entry level models to German luxury vehicles.
“We are committed to honesty and integrity in every facet of our business and it is this philosophy that has earned our company an outstanding reputation and longevity,” said Foster Walker III, President of Walker Automotive. Mr. Walker emphasized that as a fourth generation family company, Walker Automotive always tries to do what is in the best interest of its customers. “Our customers make it possible for us to be and stay in business and we realize that customer loyalty is the key to generations of success. We believe that we are rewarded for our efforts by the vast majority of our customers who are repeat and lifetime buyers.”
While the physical locations have changed the Walker business model has remained the same. “We celebrate this month with our 90th birthday and thank all of our customers, employees and friends who have made it possible for our company to be so successful,” Walker said. Various events celebrating the birthday are scheduled throughout the month of March.
IN CENTRAL LOUISIANA
By: Lawrence S. Searcy, Jr.
March 2009 represents a milestone for Walker Automotive as the local car dealership celebrates its 90th birthday. Walker was founded in 1919 as Alexandria Auto Company, Inc. by Foster Walker Sr. After returning from World War I, Foster Walker Sr. began selling Durant, Reo and Star automobiles from a gas station in Downtown Alexandria. That business eventually became Walker Oldsmobile Company and is now run by Foster Walker III. Ninety years after its inception the dealership has expanded from its meager origins to three locations, 8 manufacturers, three service departments and a collision center. Over the last 9 decades, Walker has won numerous national and factory awards for all aspects of its business and offers new and pre-owned vehicles ranging from quality entry level models to German luxury vehicles.
“We are committed to honesty and integrity in every facet of our business and it is this philosophy that has earned our company an outstanding reputation and longevity,” said Foster Walker III, President of Walker Automotive. Mr. Walker emphasized that as a fourth generation family company, Walker Automotive always tries to do what is in the best interest of its customers. “Our customers make it possible for us to be and stay in business and we realize that customer loyalty is the key to generations of success. We believe that we are rewarded for our efforts by the vast majority of our customers who are repeat and lifetime buyers.”
While the physical locations have changed the Walker business model has remained the same. “We celebrate this month with our 90th birthday and thank all of our customers, employees and friends who have made it possible for our company to be so successful,” Walker said. Various events celebrating the birthday are scheduled throughout the month of March.
Tuesday, March 17, 2009
Employee Free Choice Act - Really?
The Employee Free Choice Act – What Is It?
Again this year, the United States Congress is considering legislation to make it easier for union organization. The Employee Free Choice Act, (“EFCA”) amends the National Labor Relations Act “to establish an efficient system to enable employees to form, join, or assist labor organizations, to provide for mandatory injunctions for unfair labor practices during organizing efforts, and for other purposes.”(H.R. 1409) Any small business owner (or manager), regardless of the number of employees, needs to educate themselves on the potential impact of this legislation.
Again this year, the United States Congress is considering legislation to make it easier for union organization. The Employee Free Choice Act, (“EFCA”) amends the National Labor Relations Act “to establish an efficient system to enable employees to form, join, or assist labor organizations, to provide for mandatory injunctions for unfair labor practices during organizing efforts, and for other purposes.”(H.R. 1409) Any small business owner (or manager), regardless of the number of employees, needs to educate themselves on the potential impact of this legislation.
Over the last 50 years the impact of labor unions has been decreasing. In the 1950’s union membership hovered around 35%. That number has decreased to around 7.5% today. The membership decline is attributable, in part, to the number of federal laws that have been passed to protect workers from the abusive practices that once existed in the workplace. There are hundreds of federal and state laws that protect consumers, employees, and part-time workers. In the automobile sector there are no less than eighty-six federal regulations that apply to retail automobile franchises and repair shops.
In an effort to bolster union membership, organized labor is fighting very hard for the EFCA. In a nutshell, the EFCA changes the current law in three ways: (1) Recognition, (2) Negotiations, and (3) Penalties.
Recognition: The current law requires that employees sign union cards indicating their support for an organized union and then petition with the National Labor Relations Board to form a union. Both the employer and the union organizers then campaign for a period of 30 days either for or against the union. After 30 days, the NLRB supervises a secret ballot election and, if the union passes, then the company must recognize the union as the bargaining entity for the employees. The EFCA would essentially cancel the right of companies to campaign against the union. Instead, once the union has 50% of the cards signed, the company would have to recognize the union. No secret ballot. The fear is that employees would be pressured by the union to sign the card and any secret vote against a union would be lost.
Negotiations: Current law allows the parties to bargain for contracts in “good faith” and until a contract is reached the parties continue to work under the status quo. A contract is reached only when both parties agree to the terms. The amendment to the law would change this procedure. Instead, if a contract is not reached in 90 days the contract is sent to mediation (non-binding arm twisting). If after 30 days of mediation a contract is not reached then the matter goes to binding arbitration. The arbitrator will set the terms of the contract which will be in effect for two years. Here, the fear is that the terms may be so onerous that the company would be unable to meet the contract terms without serious alterations to the work environment.
Penalties: Under the new law the penalties are only enhanced for company violations not for union violations. Back pay awards are increased three times and fines could reach up to $20,000 per employer violation. Shouldn’t any change in penalties be reciprocal?
The law can be easily researched on the internet or by going to the Library of Congress’ web site http://thomas.loc.gov/.
Thursday, February 19, 2009
Surviival
Surviving a Recession
A recession, depression or any other down turn in business requires a leader to look introspectively at their business and determine the best way to move forward. Sometimes, a business simply cannot make it through tough times. Most, however, can survive. And with hard work and a well thought-out strategy, most will emerge stronger.
First, restructure immediately to meet the demands that exist today – not under your old business model. Take a good hard look at everything in your business and shed the items that are not completely necessary. In household budgets, families talk in terms of food, water and shelter to survive. Take care of those items first and lose everything else. The same is true in business. Don’t wait to see what happens tomorrow because tomorrow is too late. Start making changes and restructure your business model now. Scour your financial data and determine what vendors you can cut and which ones might offer you a discount to keep your business. A full day examination at your financials will reveal expenses that you had long forgotten about and may not be necessary anymore.
Second, bring all of you leaders together and develop a single action plan for all departments. The plan must set achievable goals and a realistic timeline for completion. Force all of your people to acknowledge hurdles and develop a plan to overcome all of the hurdles. Every department should find expenses that can be cut. Trimming expenses is the easiest way to increase your net profit or shrink your loss.
Third, own all of your processes. As a leader you have to be the single person in charge and delegate to your people. Keep your managers accountable and ensure that they stay on target with the timeline of progress. Hold daily or weekly updates to measure accomplishments. Don’t let anyone off the hook. The other managers are watching how everyone is kept on task. A single forgiving moment can allow chaos in the process.
Identify the key players. Every organization has key employees of every pay grade. Every organization also has a host of unproductive employees that take but don’t give back. Shed the employees who don’t help you or who hurt morale with negativity. Watch your key employees because every competitor is coming after your most productive employees.
Consistently communicate with employees. Employees smell fear and market conditions make all personnel afraid of losing their job. As a leader it is your responsibility to remind employee that while times are tough their jobs are secure. Ask them for input on cost saving measures and they, in turn, will own the process of a turn-around with you. Don’t lie to the employees. Be honest and they will respect you for that and help you emerge as a stronger company.
Communicate with customers. Customer service and customer retention become primary goals. Get out and meet with your customers and assure them that you can still provide the same high quality product and service. Remain enthusiastic and optimistic in front of all of your customers. Be honest but positive. Don’t give your customers a reason to buy elsewhere. Poor quality and bad customer service is the only excuse a customer needs to move their business to the guy down the street.
Don’t lose sight of the original vision that the company had when it started. Continue to set sales goals and mandate that your employees meet them. Goals may have to be scaled back but they should still be met.
Work every day. Entrepreneurs have no days off.
A recession, depression or any other down turn in business requires a leader to look introspectively at their business and determine the best way to move forward. Sometimes, a business simply cannot make it through tough times. Most, however, can survive. And with hard work and a well thought-out strategy, most will emerge stronger.
First, restructure immediately to meet the demands that exist today – not under your old business model. Take a good hard look at everything in your business and shed the items that are not completely necessary. In household budgets, families talk in terms of food, water and shelter to survive. Take care of those items first and lose everything else. The same is true in business. Don’t wait to see what happens tomorrow because tomorrow is too late. Start making changes and restructure your business model now. Scour your financial data and determine what vendors you can cut and which ones might offer you a discount to keep your business. A full day examination at your financials will reveal expenses that you had long forgotten about and may not be necessary anymore.
Second, bring all of you leaders together and develop a single action plan for all departments. The plan must set achievable goals and a realistic timeline for completion. Force all of your people to acknowledge hurdles and develop a plan to overcome all of the hurdles. Every department should find expenses that can be cut. Trimming expenses is the easiest way to increase your net profit or shrink your loss.
Third, own all of your processes. As a leader you have to be the single person in charge and delegate to your people. Keep your managers accountable and ensure that they stay on target with the timeline of progress. Hold daily or weekly updates to measure accomplishments. Don’t let anyone off the hook. The other managers are watching how everyone is kept on task. A single forgiving moment can allow chaos in the process.
Identify the key players. Every organization has key employees of every pay grade. Every organization also has a host of unproductive employees that take but don’t give back. Shed the employees who don’t help you or who hurt morale with negativity. Watch your key employees because every competitor is coming after your most productive employees.
Consistently communicate with employees. Employees smell fear and market conditions make all personnel afraid of losing their job. As a leader it is your responsibility to remind employee that while times are tough their jobs are secure. Ask them for input on cost saving measures and they, in turn, will own the process of a turn-around with you. Don’t lie to the employees. Be honest and they will respect you for that and help you emerge as a stronger company.
Communicate with customers. Customer service and customer retention become primary goals. Get out and meet with your customers and assure them that you can still provide the same high quality product and service. Remain enthusiastic and optimistic in front of all of your customers. Be honest but positive. Don’t give your customers a reason to buy elsewhere. Poor quality and bad customer service is the only excuse a customer needs to move their business to the guy down the street.
Don’t lose sight of the original vision that the company had when it started. Continue to set sales goals and mandate that your employees meet them. Goals may have to be scaled back but they should still be met.
Work every day. Entrepreneurs have no days off.
Thursday, February 5, 2009
Back to Basics
In a sales meeting the other day, the General Manager mentioned that “in good times people develop bad habits and in bad times people develop good habits.” Succinctly said, the key to success in today’s environment is nurturing good habits by going back to basics. I am fully aware that this is what every success coach is preaching right now. You cannot pick up a single article in any business magazine without getting bombarded with advice on how to get back to basics, or develop winning habits, or stay positive. The reason these messages are out there is because they are true.
If you don’t know already, these are some good habits to go back to.
Focus on Customer Service. Every customer is much more important now than they were a year ago. Selling was easy over the past few years. In 2006 thru 2008 customers were employed and flush with cash. Banks were giving money to anyone who was breathing and negative equity was not even a hiccup on the way to purchasing a new car. Now customers have to be cultivated and a salesman cannot let a customer walk without pulling out all of the stops.
Spend time with every customer and answer all of their questions. Listen – don’t talk. Talk after you are done listening and when the customer is done speaking. Be professional. Know your product better than anyone else that sells your product and know your competitor’s product better than they do. If you don’t, you can’t answer the customer’s comparison questions and objections.
Demonstrate the product. Train yourself to do the same demonstration every time. When sales are slow, do online training or train with other sales staff. Imagine if you were buying a car. What are the items you would like to see demonstrated? Now turn that around. What items would your spouse like to see demonstrated? What about your kids? Imagine all of that and then demonstrate them all.
Prospect. People are still buying and it is the sales staff’s job to find those people that want to buy. Call on cars for sale by owner on the side of the road or call on car ads out of the newspaper. If just one is tired of trying to sell their car by owner maybe you have a deal. Hand out your business card to everyone you meet. Wear your uniform and name tag everywhere. Customers will ask you about vehicles while waiting in line at the movies. Give them a card and set up an appointment right there. Tell everyone what you do for a living and ask if they know anyone looking for a car.
Maintain an healthy lifestyle. This means both physically and mentally. Physically, you should exercise a few times a week. Exercise is as simple as taking the stairs or walking to lunch down the block instead of driving. Mentally stay sharp by doing product training or reading. Every morning should start with reading the news on line or in a paper. Get away from negative people and surround yourself with positive people.
Advertise yourself and your business. There may not be a lot of money to advertise but there are many free ways to get the word out about what you do. Send e-mails and ask that they be forwarded. Call old friends. Connect on Facebook. Write a blog. Whatever you decide you have to get the word out about what you do every day.
Measure your results. How will you know where you are going if you do not know where you have been. How many people did you meet today? How many prospect calls did you make? Did you miss a sale? Why? If you measure all of these things and more your skills will improve as you become more proficient in the way you approach your job. Remember to hone your good habits.
I can guarantee you that others in your business are sitting at their desks all day every day saying “this sucks. There are no customers. I can’t make a living doing this.” How hard will it be for you to compete against those people if you are doing all of the things mentioned above? Your day will fly by, customers will flock to you and you will sell more cars.
If you don’t know already, these are some good habits to go back to.
Focus on Customer Service. Every customer is much more important now than they were a year ago. Selling was easy over the past few years. In 2006 thru 2008 customers were employed and flush with cash. Banks were giving money to anyone who was breathing and negative equity was not even a hiccup on the way to purchasing a new car. Now customers have to be cultivated and a salesman cannot let a customer walk without pulling out all of the stops.
Spend time with every customer and answer all of their questions. Listen – don’t talk. Talk after you are done listening and when the customer is done speaking. Be professional. Know your product better than anyone else that sells your product and know your competitor’s product better than they do. If you don’t, you can’t answer the customer’s comparison questions and objections.
Demonstrate the product. Train yourself to do the same demonstration every time. When sales are slow, do online training or train with other sales staff. Imagine if you were buying a car. What are the items you would like to see demonstrated? Now turn that around. What items would your spouse like to see demonstrated? What about your kids? Imagine all of that and then demonstrate them all.
Prospect. People are still buying and it is the sales staff’s job to find those people that want to buy. Call on cars for sale by owner on the side of the road or call on car ads out of the newspaper. If just one is tired of trying to sell their car by owner maybe you have a deal. Hand out your business card to everyone you meet. Wear your uniform and name tag everywhere. Customers will ask you about vehicles while waiting in line at the movies. Give them a card and set up an appointment right there. Tell everyone what you do for a living and ask if they know anyone looking for a car.
Maintain an healthy lifestyle. This means both physically and mentally. Physically, you should exercise a few times a week. Exercise is as simple as taking the stairs or walking to lunch down the block instead of driving. Mentally stay sharp by doing product training or reading. Every morning should start with reading the news on line or in a paper. Get away from negative people and surround yourself with positive people.
Advertise yourself and your business. There may not be a lot of money to advertise but there are many free ways to get the word out about what you do. Send e-mails and ask that they be forwarded. Call old friends. Connect on Facebook. Write a blog. Whatever you decide you have to get the word out about what you do every day.
Measure your results. How will you know where you are going if you do not know where you have been. How many people did you meet today? How many prospect calls did you make? Did you miss a sale? Why? If you measure all of these things and more your skills will improve as you become more proficient in the way you approach your job. Remember to hone your good habits.
I can guarantee you that others in your business are sitting at their desks all day every day saying “this sucks. There are no customers. I can’t make a living doing this.” How hard will it be for you to compete against those people if you are doing all of the things mentioned above? Your day will fly by, customers will flock to you and you will sell more cars.
Wednesday, February 4, 2009
Tax Break for Buying a Car - A Great Idea
On Tuesday, February 3, 2009 the United States Senate overwhelmingly approved a broader stimulus package which includes help for consumers who want to buy a vehicle. The passage of the amendment would make interest and sales taxes deductible on federal income tax returns for vehicle purchases made this year. The National Automobile Dealers Association says that a consumer will save approximately $1,500 for a $25,000 vehicle.
The measure is clearly intended to jumpstart automobile sales. Why is that important to the overall economy? One only needs to look at the impact of automobile sales and the revenue generated for states and local economies from sales taxes. In Rapides Parish alone, sales of new and used vehicles (i.e. anything with a title) generated more than $29 million in sales tax revenue to the parish over the last three years. While the sales taxes would be deductible, the measure would not affect the amount of taxes collected by the state or the community. Instead, additional sales generated by the incentive of having the interest and sales taxes deducted for the year would spur more sales. More sales, of course, mean more revenue for the parish.
Take the dollar amounts collected in Rapides Parish and multiply that over Louisiana’s 64 parishes and the total impact of automobile sales on the state’s economy is readily apparent. Multiply that number again by the total number of counties and states across the United States and the revenue collected is staggering.
Rapides Parish alone saw a 10% drop in sales tax revenue from 2007 to 2008. Sales tax revenue is expected to decline even farther in 2009 because total vehicle sales in the state are expected to decrease dramatically from 2008 and even more drastically from 2007. Experts expect that nationwide sales will be at their lowest since 1981. In 2007, sales nationwide were north of 15 million. In 2008 they dropped to below 12 million. Every manufacturer and retailers has seen sales decrease. More than 1,200 franchised dealerships closed their doors in 2008 and the estimate for 2009 is even more dealerships will vanish.
The fall in sales, dealerships and employment in the automobile sector has a direct and proportional impact on states, parishes (counties) and local governments. Without automobile sales’ tax revenue governments are forced to cut services. Stimulating automobile sales directly places sales tax revenue into local government coffers which, in turn, allows them to hire employees and continue servicing its constituents.
In 2007 (the most recent year data was available) Louisiana automobile dealerships employed more than 18,000 workers with an annual payroll of $785 million. The average dealership employee earned $43,342 per year among the 337 new vehicle dealers. These numbers do not include non-franchised dealers, boat dealers, ATV dealers or non-franchised repair facilities. However, the tax incentive currently attached to the Senate bill will stimulate sales, increase tax revenue, allow employees currently employed by dealerships to keep their positions and drive the economy. Contact your local legislator and express your support of the Senate Bill so that it may be carried back into the House version when it is amended.
The measure is clearly intended to jumpstart automobile sales. Why is that important to the overall economy? One only needs to look at the impact of automobile sales and the revenue generated for states and local economies from sales taxes. In Rapides Parish alone, sales of new and used vehicles (i.e. anything with a title) generated more than $29 million in sales tax revenue to the parish over the last three years. While the sales taxes would be deductible, the measure would not affect the amount of taxes collected by the state or the community. Instead, additional sales generated by the incentive of having the interest and sales taxes deducted for the year would spur more sales. More sales, of course, mean more revenue for the parish.
Take the dollar amounts collected in Rapides Parish and multiply that over Louisiana’s 64 parishes and the total impact of automobile sales on the state’s economy is readily apparent. Multiply that number again by the total number of counties and states across the United States and the revenue collected is staggering.
Rapides Parish alone saw a 10% drop in sales tax revenue from 2007 to 2008. Sales tax revenue is expected to decline even farther in 2009 because total vehicle sales in the state are expected to decrease dramatically from 2008 and even more drastically from 2007. Experts expect that nationwide sales will be at their lowest since 1981. In 2007, sales nationwide were north of 15 million. In 2008 they dropped to below 12 million. Every manufacturer and retailers has seen sales decrease. More than 1,200 franchised dealerships closed their doors in 2008 and the estimate for 2009 is even more dealerships will vanish.
The fall in sales, dealerships and employment in the automobile sector has a direct and proportional impact on states, parishes (counties) and local governments. Without automobile sales’ tax revenue governments are forced to cut services. Stimulating automobile sales directly places sales tax revenue into local government coffers which, in turn, allows them to hire employees and continue servicing its constituents.
In 2007 (the most recent year data was available) Louisiana automobile dealerships employed more than 18,000 workers with an annual payroll of $785 million. The average dealership employee earned $43,342 per year among the 337 new vehicle dealers. These numbers do not include non-franchised dealers, boat dealers, ATV dealers or non-franchised repair facilities. However, the tax incentive currently attached to the Senate bill will stimulate sales, increase tax revenue, allow employees currently employed by dealerships to keep their positions and drive the economy. Contact your local legislator and express your support of the Senate Bill so that it may be carried back into the House version when it is amended.
Monday, February 2, 2009
Secret Ballot
Many Americans would be surprised to know that the right to cast a secret ballot in a national election is not found in the Constitution. Instead it was a method adopted from the Australian system. All states now have provisions in their Constitutions allowing for secret ballots and as such it has become an important way for Americans to choose their federal, state and local leaders. If you ask any American, you are sure to get the refrain that a secret ballot “is the American way.” The purpose was initially adopted to ensure the voter casts a sincere choice by forestalling attempts to influence the voter by intimidation or bribery. Such has been the case since Grover Cleveland was the first American President to be elected by secret ballot in 1892.
Since that date the confidential ballot has been used in everything from voting for grade school student council members to organizing labor unions. The right has always been available to go behind a curtain and cast a vote without threats or intimidation. Fast forward a 100 years and small business community is faced with federal provisions that would allow unions to organize without the benefit of secret elections.
How is this possible? Look at the misnamed Employee Free Choice Act. The bill would amend the National Labor Relations Act to allow employees who work for small businesses (whose gross sales exceed $500,000) to organize a labor union without a secret election. Here is how it works. Currently, a union can be organized if 30% of the employees sign a statement requesting a union. Then a secret vote is held and it must pass by a 50% majority. The EFCA, originally co-sponsored by President Obama, would only require 50% of the employees to sign cards (“card check”) expressing an intent to be unionized and there is no need for a vote or a secret ballot. A retail business only needs to sell $500,000 in gross sales per year and there is no employee minimum number of employees to be affected. With these requirements, almost every car dealer in the nation would be subjected to these rules. A unionized shop would increase costs, restrain productivity, and imperil competitive advantages over non-union shops.
What makes this so important is that the same measure almost passed in 2007. The house passed the Card Check provision but it died in the Senate. With the senate majority solidly in favor of the democrats this issue is sure to rear its head again. Organized labor has seen their ranks decline steadily over the years and they see Card Check as a way to get businesses to organize that might not do so under a secret ballot. In fact, in speeches to labor groups President Obama has promised to push the card check measure.
The intent of the secret ballot in the 1890’s was to prevent intimidation and bribery and a secret ballot for union elections does just that. Imagine a scenario where a union organizer can present a worker with a card to form a union and the worker has no secret alternative to vote against it.
Historically, there was a time for the unions and there is no doubt that organized labor led a great revolution for workers rights. The problem in the automotive industry, especially the American Auto industry, is that the unions have essentially bankrupted the industry. Even as the big three were receiving bailout money before Christmas 2008, they paid hundreds of millions of dollars to retirees as year end bonuses (not current employees, but retirees). At the same time, they were all paying workers at their “job banks” where union members are paid not to work. Moreover, workers continue to receive full benefits with no deductible insurance, antiquated work hours, and pay plans that cannot be supported in today’s economy. Why not let the free market prevail? Instead of unions the competitive advantage should be decided by the laws of Charles Darwin. Good employees who work hard will earn a top wage because they generate that much revenue for the company. Those employees who do not produce will fall to the bottom and be asked to seek employment elsewhere. There should be no requirement that employers keep unproductive employees. If however, a group of employees wants to unionize then put the matter to a vote in the same manner we have been handling elections since the election of Grover Cleveland – the secret ballot.
Call you congressman and senator and urge them to vote AGAINST “card Check.”
Since that date the confidential ballot has been used in everything from voting for grade school student council members to organizing labor unions. The right has always been available to go behind a curtain and cast a vote without threats or intimidation. Fast forward a 100 years and small business community is faced with federal provisions that would allow unions to organize without the benefit of secret elections.
How is this possible? Look at the misnamed Employee Free Choice Act. The bill would amend the National Labor Relations Act to allow employees who work for small businesses (whose gross sales exceed $500,000) to organize a labor union without a secret election. Here is how it works. Currently, a union can be organized if 30% of the employees sign a statement requesting a union. Then a secret vote is held and it must pass by a 50% majority. The EFCA, originally co-sponsored by President Obama, would only require 50% of the employees to sign cards (“card check”) expressing an intent to be unionized and there is no need for a vote or a secret ballot. A retail business only needs to sell $500,000 in gross sales per year and there is no employee minimum number of employees to be affected. With these requirements, almost every car dealer in the nation would be subjected to these rules. A unionized shop would increase costs, restrain productivity, and imperil competitive advantages over non-union shops.
What makes this so important is that the same measure almost passed in 2007. The house passed the Card Check provision but it died in the Senate. With the senate majority solidly in favor of the democrats this issue is sure to rear its head again. Organized labor has seen their ranks decline steadily over the years and they see Card Check as a way to get businesses to organize that might not do so under a secret ballot. In fact, in speeches to labor groups President Obama has promised to push the card check measure.
The intent of the secret ballot in the 1890’s was to prevent intimidation and bribery and a secret ballot for union elections does just that. Imagine a scenario where a union organizer can present a worker with a card to form a union and the worker has no secret alternative to vote against it.
Historically, there was a time for the unions and there is no doubt that organized labor led a great revolution for workers rights. The problem in the automotive industry, especially the American Auto industry, is that the unions have essentially bankrupted the industry. Even as the big three were receiving bailout money before Christmas 2008, they paid hundreds of millions of dollars to retirees as year end bonuses (not current employees, but retirees). At the same time, they were all paying workers at their “job banks” where union members are paid not to work. Moreover, workers continue to receive full benefits with no deductible insurance, antiquated work hours, and pay plans that cannot be supported in today’s economy. Why not let the free market prevail? Instead of unions the competitive advantage should be decided by the laws of Charles Darwin. Good employees who work hard will earn a top wage because they generate that much revenue for the company. Those employees who do not produce will fall to the bottom and be asked to seek employment elsewhere. There should be no requirement that employers keep unproductive employees. If however, a group of employees wants to unionize then put the matter to a vote in the same manner we have been handling elections since the election of Grover Cleveland – the secret ballot.
Call you congressman and senator and urge them to vote AGAINST “card Check.”
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