Employee training can cost a lot of money. Not training your employees can cost even more. In lawsuits, courts and regulatory agencies sometimes impose after-the-fact training requirements in addition to large monetary penalties. Consider these actual cases: A dealership faced a wide range of complaints, including failure to disclose material defects and misrepresenting sales and [...]

As I read through dealer websites, I’m often surprised at how many advertising violations I find. You would think that website providers would make sure that this doesn’t occur, right? You should never assume that the company that creates and maintains your website follows all the laws and regulations governing advertising compliance. State advertising laws [...]

If your sales staff told you that they had a 50% closing ratio, would you take their word for it? I suspect not – you would probably track all of their opportunities to determine the true percentage. Most dealerships measure a vast number of items on a daily basis. After all, you can’t manage what [...]

Many of the big money, big publicity compliance meltdowns in the auto industry have been the result of vehicle financing issues. Remember the Gunderson Chevrolet news clips showing the management team being convicted and sent to jail? Being a fearless bunch, some F&I folks still walk a fine line when it comes to compliance. Maybe [...]

Before the internet, when there were only phone pops, we learned valuable lessons on how to handle calls, such as selling the appointment, creating urgency, not giving shopping numbers and keeping information close to the vest until the customer showed up. It was good advice then and it may be good advice now. But keep [...]

“BUYERS ARE LIARS”. I don’t think I was in the car business one hour before I heard that catchy little phrase. Sure enough, over the course of my retail career, I suspect I was lied to over and over again by the best of them. I’m not going to pontificate about what buyers lie about [...]

I was browsing through the website of a prominent dealer-chasing law firm this morning (I know, I have weird hobbies), and came across a posting about a dealer with a link to a YouTube video. This dealership is part of a good-sized group that is very well-regarded in the area. As I am personally acquainted [...]

I get it. It’s tough out there. Customer access to information on the internet continues to squeeze margins. Dealerships are just trying to make a buck in a fiercely competitive marketplace. You have to do whatever it takes to stay ahead of the competition. I also get that some may view compliance as unnecessary, overrated, [...]

Many complaints and legal actions against auto dealers are the result of the way vehicles are advertised. According to a joint survey by the Consumer Federation of America (CFA), National Association of Consumer Agency Administrators (NACAA), and North American Consumer Protection Investigators (NACPI), the number one consumer complaint has been misrepresentations in advertising or sales [...]

Much has been written about Automotive Online Reputation Management and, fortunately, there are a number of companies and consultants now available to assist dealers in getting a handle on this crucial subject. Reputation and customer satisfaction is of the utmost importance to dealers and there is little doubt that many negative online postings are either [...]

It seems like dealers just can’t catch a break when it comes to lawyers and lawsuits. Back in 2004, California businesses won a hard-fought battle against “shakedown” lawsuits with the passing of Proposition 64. Previously, the law had allowed any party to sue a company regardless of whether the plaintiff was directly affected. For example, [...]

First, I’d like to go on record as saying that I sincerely believe that the Brownback Amendment is a good thing. The last thing auto dealers need is more regulation. Most dealerships are highly ethical and provide a great service to the public by helping provide affordable auto financing. NADA, as usual, is doing an [...]

When the Going Gets Tough, the Tough Get an Attorney It’s been a tough couple of years for just about everyone in this business. I suspect there is an exception though – attorneys that specialize in suing car dealers. It seems that the recent economy has caused a higher than usual amount of disgruntled customers. [...]

Another day, another news story about a sexual harassment lawsuit against an auto dealer. This time it’s the general manager and the GSM versus the receptionist. Allegedly, they were snapping her bra, whacking her backside with a back scratcher, hounding her with come-ons, and sending her inappropriate text messages among other things. According to the [...]

I remember the good old days when I was blissfully ignorant about everything except making the next car deal… Back in the days when I was a dealership general manager, I couldn’t wait for the next Big Sale, Promotion, Mailer, etc., whatever it took to make things happen. I gladly signed up for whatever “Next [...]

Will You Still Love Me Tomorrow? There are a number of good reasons for operating an ethical and legally compliant dealership, not the least of which is staying out of a courtroom. Perhaps the most important – and most often overlooked – reason is increased customer satisfaction. There are times when an employee may feel [...]

Top Ten Ways an Employee Can Ruin Your Day Question: Where are compliance lapses likely to occur in most dealerships? 1. The F&I office 2. The sales managers’ office 3. The lot 4. The showroom 5. All of the above In my humble opinion, the answer is a qualified all of the above. The reason I [...]

Legal Compliance – Who Taught You the Rules? Back when I was a green-pea salesman, I listened carefully to everything the closers and sales managers said. These guys were good! It seemed that no matter what the customer said, they had an answer. So I listened and learned. When I got my shot and became [...]