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How Car Salesmen Can Get Unlimited Free Auto Sales Leads Fast

It is not that hard to get unlimited free automotive leads if you do it the right way and know what you are doing. With hundreds of millions of Google searches for cars and trucks every month, you now have the ability to quickly and easily make contact with many prospects.

Get Your Information Out There

You can reach thousands of prospects each month if you put your contact information in front of them when they are searching for a motor vehicle to buy. This means you have to find a way to get your contact information shown on the pages where they are looking, instead of your competitors’ information. When they see your name instead of theirs they will call you or stop by and see you instead of the competition.

Due to search engine changes in 2011, you can now dominate your local search market for new and used cars and trucks. This is because Google and others now give search engine results based on local markets and local geographical areas. This is good for smaller local companies. It means you now have a way to be #1 online in your market.

How To Get A #1 Ranking

To get the #1 ranking in Google and all the other search engines means you must have a plan to get your name and contact information listed in so many places that Google can’t ignore you. Every time your name shows up somewhere online it is a vote for you to be #1, and the car dealer with the most votes will be ranked #1. We do this through a program of internet domination that includes every type of website you can think of, including blogs, forums, other local websites, business directories, articles, press releases, twitter, Facebook, and YouTube.

Once we do this, then Google starts noticing and believes you have a good website and a good car dealership because you are being mentioned so often in so many different places. How many other web cites and references it takes all depends on how competitive your market is.

If you are trying to be #1 for all the search terms for new and used cars in a large city it will take more time and more work than a small city. With our domination system we have found we can get a car dealer to #1 even in a large city eventually.

Your Window Of Opportunity

What is in your favor right now is the fact that most of your competitors don’t know about all the changes in local search rankings. This gives you a window of opportunity to be ranked #1 now pretty quickly, at least in your own city.

We have found that with the right help from an expert you can shoot to the top of not just Google but all the other search engines as well, including YouTube and other Google-owned websites. The problem is that many internet marketing firms are still using methods that worked a year or two ago but don’t work anymore. To get to #1 in your market means getting leads from many different websites, forums, directories and blogs, not just Google.

Massive Online Presence

The approach that works for local internet domination is to have a massive online presence, and to accomplish that we invented something called The Massive Lead Machine for automobile sales. This not only gets you top ranked it also gives you an ongoing, unlimited amount of free car leads from the internet. The Massive Lead Machine succeeds in positioning your business name and contact information in thousands of internet locations so that people online looking for vehicles will always be seeing your name and so will call you or stop by for a test drive.

Positive Online Reviews

Not only that, we have also created a system to get your business a lot of positive online reviews and a lot of favorable comments in discussion websites. This creates the most valuable form of advertising – word of mouth advertising. And this not only works better than expensive paid ads, but it is also free once you have a Massive Lead Machine working for you generating unlimited internet leads.

Dominate Your Market

All of this online publicity and word of mouth advertising, along with links, reviews, citations and top search engine rankings, will allow you to truly dominate your local market for auto and truck sales.

Automotive Equipment and Tools For The Automotive Industry

The automotive equipment industry deals with the production of every kind of tool and machinery that is needed for the manufacture, maintenance and repair of vehicles including cars and car parts. As such, the industry produces several different varieties of equipment starting from basic hand tools to more complex machinery.

Different Kinds of Automotive Equipment

Automotive workshops and garages will be unable to function without automotive equipment. Shop furniture, lifts, exhaust hoses, air compressors, lubrication equipment, electric and light reels, jacks, vehicle servicing equipment, fluid storage tanks and trans-air piping are some of the many different types of automotive equipment that are used by automotive manufacturing and automotive repair businesses.

Common Types Of Automotive Equipment

* Hand Tools: Automotive repair shops use several different types of hand tools for their repair and maintenance projects. Some of the commonest items include ratchet sets and wrench sets, crowbars (also known as pry bars), socket sets, screwdrivers, star and clutch-head drivers, hammers, pliers and wire cutters, electric drills, hacksaws and torque wrenches.

* Pneumatic Tools: Most automotive workshops now use pneumatic tools as an alternative to electricity powered motors because the latter is more prone to fire hazards. Such tools are powered by compressed air and are high powered versions of the more traditional hand tools. Common examples of pneumatic automotive equipment include air compressors that can be used to power a variety of tools including hammers, drills, ratchets and spraying tools.

* Availability of pneumatic equipment makes it easier for mechanics and technicians to undertake repair and maintenance work because they are powerful and easy to use. For example, a set of pneumatic shears can cut through sheet metal at a faster rate and leave behind a smoother edge when compared to traditional tin snips. Similarly, air hammers outfitted with chisel or punch bits have multiple uses. They can they be used for straightening dents. The chisel feature can be used to break rusted parts loose and the punch bits can be used to remove old rivets and bolts that are too difficult to take out by hand.

* Lifts: several different kinds of lifting equipment are used to lift and secure cars so that mechanics and repair persons can easily work under the vehicle. These lifting tools include both low-tech tools such as basic floor jacks, car ramps and jack stands as well as hydraulic lifts and floor jacks for better efficiency and performance.

* Vehicle Exhaust Removal Systems: vehicle exhaust removal systems are used to capture and remove harmful exhaust fumes to insure optimal air quality in automotive maintenance and repair facilities. These are mandatory equipment as per OSHA Standards in order to limit exposure to harmful vehicular emissions. Common vehicle exhaust removal systems include hose drops as well as reels.

* Lubrication Systems: Automotive lubrication systems include several different types of oil meters, ATF meters, gear lube meters, dispense valves and grease dispenses valves.

The Automotive equipment business is a very large and competitive business. Automotive repair businesses must buy equipment from reputable dealers for the best deals and performance levels.

Sales Scripts Success Secret For Selling Automobiles

Sales scripts work. Plain and simple. And they are especially effective in automobile sales. Strange as it may be, salespeople in general have pretty bad press. Add automobile sales people into the mix, then you’ve probably got one of the worst preconceived notions of a salesperson that you ever could have. Why? That’s because the stereotype of an automobile salesman is a fast talking, high pressure person, out to make a fast buck, and probably selling something dodgy in the process.

In the car sales arena, sales scripts receive little training and are hardly ever used. Objective studies that have been carried out recently into a salesperson`s patter, regardless of the industry, reveals that a more easygoing, genuinely helpful approach wins more sales than the high pressure approach. So using sales scripts, no matter what niche of the market you are in, could well help increase your sales.

Consider this, naturally gifted automobile sales people are rare. The ones who do have the natural talent for sales tend to be fast talkers who rely on their confident delivery to rush people headlong into a decision. But making a sale doesn’t have to be done this way. As the study suggests, a consultative approach is proven to yield better results. Because this new consultation approach is unfamiliar to most sales hardened car sales people, sales scripts help guide the interaction and steady the pace.

Sales scripts work for automobile sales people in the same way that film scripts work for actors. They are used to maintain excitement, energy, and enthusiasm in the dialogue. More importantly, scripts guide the actors throughout the production. Similarly, sales scripts guide the sales professional maintaining the focus on the prospect and vehicle.

Sales scripting is not a new idea. It was first researched back in 1938 when Elmer Wheeler researched over 105,000 words and phrases over a 10 year period. He published his findings in the book “Tested Sentences That Sell“. He concluded that “There are no magic words that sell, but there is word magic.” Wheeler advocated that using tested “word magic” can significantly increase sales.

Sales scripts are becoming more widely used across a larger cross-section of sales markets, and some leading automobile dealerships are beginning to look at the benefits of employing this sales methodology. In the past, automobile salespeople have been accused of being over aggressive. For example, as soon as you arrive at the store you often get a sales person tagging onto you very quickly, asking you what it is you’re looking for. This can immediately put you on the defensive. You feel under pressure and usually respond with something like “Just browsing”, or you might even leave the store. Whereas it is nice to be recognized when you do arrive, you don’t want to feel that you are being pushed into anything, and this is exactly where sales scripts can really help to change how a sales person interacts with the prospect.

A good example of a scripted opening, and my favorite from Joe Verde, is “Who is the lucky one for the new vehicle, you or somebody else?” This sort of opening makes for an easy introduction, doesn’t exert any pressure, and allows the prospect to easily answer. This scripted phrase has statistically proved to be a winning opening for me.

In summary, the methodology of using sales scripts involves selecting statistically proven winners and involving the sales staff in implementing them. Sales scripting can dramatically increase sales, no matter what the industry. With automobile sales suffering, good sales scripting could really turn your business around. Simply put, sales scripting works.

The Emotion Code – How to Release Your Trapped Emotions

Energy healing is one of the oldest practices known in the world today. Since 4000 B.C., healers have understood that our health greatly depends on the quality of energy that flows through and makes up our bodies. In Chinese medicine, that energy is called “Qi” or “Chi.” In Ancient Indian or Ayurvedic medicine, this energy is called “Prana.” Imbalances of this part of our existence may deeply affect our physical and mental health.

We can compare this energy to electricity. We can’t see electricity, but we can feel it. Electricity is colorless and odorless. It’s invisible, yet it certainly is real. If you’ve ever stuck your finger in a light socket or been shocked getting the toast out of a toaster, then you’ll know what I mean. You may not be able to see it, but it’s definitely there!

As human beings, we are used to perceiving things in a way that conforms to our belief systems. We form our beliefs about the physical world at an early age. We learn that if we fall off the monkey bars at school, we will meet the ground with a painful thud, yet we could never imagine that both the ground and the monkey bars, as solid as they seem to us, are actually made of vibrating energies. We may like to think that the world around us is exactly as we are used to seeing it, but Einstein, Tesla and others have shown us that the universe is really much more complex and wonderful than we ever could possibly have imagined.

The Quantum World

You must remember that old saying, “I know it like the back of my hand…” But how well do you really know the back of your hand?

Take a look at it. Your eyes see the surface of your skin with its wrinkles, fingernails and little hairs. You know exactly how the back of your hand looks from that perspective. But if you magnify your hand under a microscope, you won’t see the same skin and creases you’ve become so familiar with. Instead, you might think you are looking at the surface of a strange planet, covered with hills and valleys. Turn up the power on your microscope, magnifying your skin 20,000 times, and you’ll see a field of swarming cells. Magnify it a lot more and you’ll see molecules. Magnify those molecules and you’ll see the atoms that make up those molecules.

Magnify those atoms and you’ll see the subatomic energy clouds that make up those atoms- the electrons, the protons, the neutrons and other subatomic particles. It’s still the back of your hand, but it looks nothing like the hand you know.

If you glance at it now, your hand looks solid. Slap it down on the table and it makes a nice, substantial thud. Your hand may seem solid, but there’s actually a lot of empty space there. At the subatomic level, there are vast distances between each spinning electron.

Atoms are 99.99999999% empty space. Your hand is 99.99999999% empty space! If you could remove all the empty space from the atoms in your hand, it would become so small you would need a microscope to see it! It would virtually disappear, although it would still weigh the same and contain the same number of atoms.

It might take a moment to comprehend this idea. Your hand seems solid, but it is made of dynamic energy, in constant vibration. In fact, physicists now understand that the so-called “subatomic particles” which make up the atom are not really particles at all. They measure the contents of the atom in “energy units” instead, because it’s so much more accurate.

Like everything else in the universe, the thoughts that you create are made of energy. Thought-energy has no boundary. Your thoughts are not confined to a certain volume and location like your physical body.

While we like to think that all of our unspoken thoughts are private and that they are confined to our own heads, it’s not true. Each of us is like a radio station, constantly broadcasting the energy of our thoughts, which emanate from us and fill the immensity of space, touching all those around us for good or ill.

This doesn’t mean that we can read other people’s minds, but the energy of other people’s thoughts are detected to some degree on a subconscious level. Try staring intently at the back of someone’s head in a crowd, and inevitably they will turn and look right at you before long. Lots of us have had this experience, and if you haven’t, try it. It works every time!

We are all Connected

The reality is, the entire human family is connected energetically. When people are suffering and dying on the other side of the earth, we feel their distant cries and anguish on a subconscious level and we are darkened by it. When something tragic happens in the world, the whole world feels it subconsciously, and is affected by it. On the other hand, when wonderful things happen in the world, we all are brightened together. The connectedness that we all have will often manifest as subtle thoughts that float up from the subconscious level to our conscious minds.

This energy connection seems strongest between a mother and her children. Mothers often seem to be able to sense when one of their children is in trouble. We call this mother’s intuition, and my own mother was an expert at it. Our connection to our own mothers is perhaps strongest because of the spiritual umbilical that binds us to them.

The most powerful example of this energetic connection occurred to one of my patients a number of years ago. She was sitting at home one night, watching television with her husband. Suddenly, she began experiencing severe, hammering pains throughout her body which inexplicably moved from one area to another. The violence of this sudden attack was terrifying, and when it was over she was greatly relieved, but exhausted and frightened. She had never experienced anything like this before, and had no idea what had suddenly gone wrong in her body. Her attempts to explain this bizarre and excruciating attack baffled everyone, including her doctors.

Three days later, she got a phone call from her son, who was working in the Philippines. He called her from his hospital bed and told her that he had been severely beaten by the local police a few days before. When they compared the time of his beating to the time of her experience, they were one and the same. Somehow, she was connected enough to her son to literally “feel his pain.” Talk about mother’s intuition!

Thought s are Powerful

Your thoughts are immensely powerful. Whenever you say what you’re thinking or write something down, you’re using the energy of your thoughts to affect the world around you. It is through thought, belief and intention that all things happen. Reputable laboratory experiments have repeatedly shown that thoughts can directly influence the rate of growth in plants, fungi, and bacteria. William Tiller, a physicist at Stanford University, has shown that thoughts can affect electronic instruments.

Studies have proven that when the energy of thought is directed intentionally, it can impact someone else, regardless of whether they are nearby or all the way around the world.

Depending on whether the person focusing the thought uses calming or activating imagery, for instance, they can create a greater sense of relaxation or anxiety in the targeted person. The effect is so distinctive that it can be measured in a laboratory by galvanic skin response, a highly sensitive method of measuring electrical changes in the skin.

Imagine how your own thoughts affect you. Everyone has some kind of internal conversation at times. What do you say to yourself? Many people criticize themselves far more often than they praise themselves. Negative self-talk may be hurting you more than you realize.

What about other people around you? Do you ever wonder if others can sense how you feel about them? ther people’s subconscious minds are continually detecting the vibrations of your thoughts. Have you ever had a moment with a friend, where he or she blurted out just what you were thinking? Have you ever instinctively known who was about to call you, before the phone even rang? These are not coincidences, they are evidences of the power of thought energy.

Finding trapped emotions using the Emotion Code is along the same lines as detecting the vibration of another person’s thoughts or feelings. The difference is that you can ask the body, and actually get definitive answers, instead of guessing. Then you can release the trapped emotions for good, and know with certainty that they are permanently gone.

Serendipity vs Precision

Any alternative health care practitioner can tell you that almost every one carries around old emotional energies from their past. Our physical bodies hold onto trapped emotions, and doctors and body workers are aware of this because often a simple touch can bring out a flood of emotions and memories in a patient. At one time or another, nearly every practitioner I know – from chiropractors to energy workers to massage therapists – has had the experience of provoking an unexpected emotional release in a patient, as the body let go of the energy it had been holding on to. Releasing those trapped emotions can result in profound and immediate healing. While any emotional release that occurs in this serendipitous way is welcome, this is usually not the intention of the therapist, and any emotional release that occurs is only accidental.

The Emotion Code approach, however, is much more deliberate. I sometimes think of it as “emotional surgery” because we are searching out the trapped emotions with a clear intention of removing them. Nothing is left to chance. Trapped emotions are potentially so destructive that you need to find them and get them out of your body, and then confirm that they have been released. The Emotion Code helps you do exactly that in a precise and simple way.

Government Auto Auctions – Cars Under 500 Dollars?

Until recently, used car prices had been going through the roof. They started getting cheaper when gas headed toward $4 a gallon, and then when the credit crisis hit, and there were a lot of repos on the market, they got even cheaper. Now that gas is back down under $2, they’ve gone back up somewhat, but they’re still cheaper than a while back. Of course, “cheap” is a relative term, and one man’s bargain is another man’s extravagance. What if you need a car fast, and you only have five hundred bucks? I’d head for government auto auctions. Cars under 500 dollars are available there.

Now, don’t get me wrong. At government auto auctions, cars under 500 dollars aren’t a dime a dozen. They really aren’t even plentiful. But you stand a very good chance of finding one or two such bargains at any given government auction you attend. And, yes, I’m talking about cars that actually run and are street legal. Now, it’s probably going to be quite a it older than most cars on the street, but that’s no problem. If you’re really looking for a cheap car, you can forget about a late model one, anyway. Those will be snapped up by the dealers, and they’ll go for a lot more than 500 dollars.

That’s because they’re looking for cars that can be resold fast, which is late model cars in great condition. That’s why dealers attend government auto auctions. Cars under 500 dollars don’t interest them, because they’re going to be too old to have much of a market. But that doesn’t mean there’s anything wrong with a 500 dollar car you pick up at one of these. It will just be older than average, and probably not in tip top shape. But you can certainly find yourself a 500 dollar car that runs if you attend a few auctions.

Characteristics of a Good Automotive Repair Mechanic

Knowledgeable on various auto parts.

This is perhaps the most basic characteristic that any auto mechanic should have. Lots of different auto parts are out in the market today. And because we, as car owners, do not necessarily possess the sufficient knowledge when it comes to vehicle parts, we will inevitably depend on the expertise of our mechanic. A simple trick to determine if your chosen car specialist really knows his business is to ask him to differentiate a few parts and gauge whether he is confidently answering your question or is just making his way around.

Diverse background on automotive repair experiences.

Years ago when the makes of our vehicles were much simpler, any mechanic would have been okay. But with today’s high-tech and complex vehicles including family sedans, sports and luxury cars, SUVs, and pick-up trucks, we need someone who has a diverse background in automotive repair services. Mistakes have no room when it comes to automotive repair as these will only make things even more costly. Choose a mechanic who has certifications of training programs and classes that he has attended. The mechanic’s time spent in studying as well as in the actual practice of automotive repair is very advantageous for us car owners.

ASE certified to be an automotive repair professional.

Speaking of certifications, perhaps the most famous and widely recognized one, when it comes to professionals in the automotive industry is the ASE certification. Annually, an estimated 100,000 automotive technicians take ASE certification exams each May and November at over 750 locations.

With an ASE certification, we are assured that our mechanic has good background in all automotive services because an ASE certification requires a minimum of two years work experience in addition to passing a series of examinations that include Engine Repair, Engine Performance, Electrical/Electronic Systems, Brakes, Heating and Air Conditioning, Suspension and Steering, Manual Drive Train and Axles, and Automatic Transmissions for auto technicians alone. There are separate tests for those who want to be collision repair technicians, engine machinists, parts specialists, and others.

Furthermore, all ASE certifications have expiration dates which requires technicians to re-test every five years to keep up with technology and to remain certified.

Works in a reputable auto center.

Unfortunately, ASE certifications apply only to individuals and not to auto centers. However, an auto center with at least one ASE certified mechanic is allowed to display the ASE sign. Furthermore, an auto center that has 75% ASE certified mechanics among its employees are given the Blue Seal of Excellence from the ASE.

Aside from the ASE recognition, other signs that we should look for an auto center include neat and well-organized facility complete with modern equipment, courteous staff, and good policies (regarding labor rates, diagnostic fees, guarantees, etc.)

Highly recommended by family and friends.

Nothing can attest to the quality service that any auto center and mechanic can give than testimonials of our family members, relatives, and friends. Ask for referrals and recommendations. Local community organizations and business listings are also good sources of information.

10 Amazing Facts About Magnets

1. If you cut a magnet in half, you get 2 smaller magnets as a result, each with their own north and south pole.

2. The north pole on a magnet points towards the north pole on the earth. This is because they are both giant magnets and are aligning themselves together. This is how a compass works.

3. To make a new magnet, take one you already have and then rub it on a new piece of metal. This process is called magnetisation and will turn any piece of metal into a magnet.

4. Electromagnets are not magnetic all the time. If you pass electricity through a nail wrapped in a copper wire, it turns into a magnet. Once you stop the flow of electricity – it is just a nail and wire again.

5. A magnetic field is an invisible area around every magnet that attracts metals and other magnets to it. That is why you can slowly push 2 magnets together and they will jump to each other, due to them entering their magnetic fields.

6. The magnetic field made by The Earth is so big and strong, that it stretches out into space. The Earth is made from metals and materials like iron, which makes it just like a smaller magnet you might have at home.

7. Fridge magnets are used all over the world in families homes and in America, are seen on an average of 20 times per day!

8. The power of a magnet is measured in Tesla (which was the name of a scientist who specialised in electricity). Even though The Earth is massive and is a giant magnet, it is around 1000 times weaker than a small magnet you might have at home.

9. Magnetism was discovered and used over 800 years ago in ancient Greece and China. They even had their own compasses.

10. Iron is the best metal to use as a magnet as it is naturally magnetic. Others are nickel and cobalt, but if you have a magnet at home, it is most likely made from iron or ferrites, which is a metal made from many different elements.

Easy to Install Car Foot Pedal Extensions

The fact is, people comes in all shapes and sizes. Much like the many choices you have when ordering coffee at your local Starbucks, you can be short, tall, skinny, round, pear-shaped, voluptuous, flat, or anywhere in between. However, the disparity in sizes means that manufacturers would have to design their products in such a way that fits all of these people. That’s where the concept of one-size-fits all comes in. Since it would cost too much to produce several different versions of the same product to account for all the different shapes and sizes people come in, a manufacturer can just create their product to fit the average person, allowing for certain adjustments to be made, of course. For example, in cars, you can adjust the seat and the steering wheel to the most comfortable position for you. Unfortunately, this presents a challenge to other people who don’t fall into that average. If you’re short, you may have to resort to using easy to install car foot pedal extensions just so you can comfortably reach the pedals of your car and still be able to look out of the windshield.

If your car has an automatic transmission, you will only have two pedals: gas and brake; while a car with a manual transmission has three: gas, brake, and clutch. Obviously, you need to be able to reach these pedals and still be able to look at where you’re headed; otherwise, people may think that your car is driving down the freeway by itself. There may come a time when your life depends on how well you can stamp on your brakes. If you can barely reach these foot pedals in your car, you may not be able to squeeze that last bit of braking power that can mean the difference between a traffic accident and a close escape. Don’t strain your neck and back trying to stretch yourself out. Do yourself a favor and head to your local car shop and look over some of these car pedal extensions.

There’s no need to feel ashamed that you have to resort to using a product like this. Think of it as a helpful tool or device that helps keep you safe on the road. After all, experts recommend that you keep a distance of about 10-12 inches back from the airbag that is a feature of all newer model cars. Wouldn’t you want that extra inch away if it means the difference between living and breaking your neck in a collision?

There are many easy to install car foot pedal extensions available in the market today, and these come with helpful instructions and diagrams. However, if you don’t trust your skills as a mechanic, you can always take your car down to the shop and get a professional to install it for you. They will be able to adjust the length of the foot pedal extenders to a level that is comfortable for you.

What Does an Automotive Service Manager Do?

The automotive service manager is the person that is responsible for the supervision of the service department for an auto dealer. They act as go-between for the customer, mechanic, and an auto dealer. The major part of their duties includes customer satisfaction and customer relations. They are ultimately the individual who is responsible for productivity and profitability of the service department. Part of this responsibility includes sales, and keeping all customer service records.

This individual is also in charge of supervising all elements of safety as they pertain to maintenance of customers’ autos. As part of their duty they supervise the complete mechanical process, assuring only the highest level quality service is provided. They are responsible for the inspection of every vehicle that has been repaired or worked on within the service department and are also responsible for selecting an individual who oversees this in their absence.

The automotive service manager must be an individual who is able to focus on several different things at the same time. This includes the supervision of all personnel, the service department, and hiring and supervising. They also must keep track of all service data files that documents any pertinent information retained to employees, including reviews and raises.

The service manager ensures the dealer at the service department obtains the goals of the dealership as they pertain to the budget. In many cases, they may be expected to create and monitor a marketing plan that involves the creation of current and recurring business. For many automotive dealers service, customers typically consist of individuals who have purchased cars in the dealer. You may also be required to generate this information from outside the current clientele.

New vehicles repairs are typically covered by warranties. It is the responsibility of the service department manager to understand the intricacies of all warranties and to inform the staff of this information. Service managers must also beware of any information obtained relative to recalls.

Typical service managers have a background in automotive repair and will most likely have worked for the dealer he is now employed by. Some dealerships hire from outside of their service staff if it does not create a conflict between employees. No matter where they have gotten their training, it is necessary that this individual has years of experience as a mechanic. Usually it is desired that this experience is on the brand of cars the dealer carries.

This position is typically a well-paid position and, in many cases, includes a respectable benefits package. In many instances this individual will receive a demo car and full medical and dental benefits. Being promoted for this position can be lucrative and rewarding for an experienced mechanic.

Automobile Dealerships – Out of Trust Situations – Tips For the Dealer

Almost every financial organization has a workout department. Their names are as varied as Problem Loan Administration; Central Loan Department; or Special Assets Department. A dealer may be assigned to one of these special departments, or a member of the department may start appearing at meeting with the dealer’s regular bank officer.

The courts have consistently upheld the rights of lenders to have workout teams and to have those teams, within broad parameters, take affirmative actions to protect the lenders’ interests.

Matching the average dealer’s experience with work-outs, to that of the lender’s experience, would be equivalent to matching a high school football team against a professional team. The professionals have played the game hundreds of times. They have seen and heard hundreds of presentations, arguments, excuses and reasons for a dealership’s problems, while the dealer, lacking experience, is encountering the trauma for the first time. Realizing the dealer will probably be a neophyte, with respect to workouts, the following rules are provided the dealer, as a plumb line, to be followed throughout the workout procedure:

1. Do Not Confuse Friendship with Business. Factories and lenders have seen and heard most of the workout plans any dealer could suggest. The have probably seen versions of each plan which have been refined over generations by some of the best minds in the business. Their experience, however, cannot help the dealer get the best benefits for the dealer.

Employees of the factory/lender have an obligation to their corporation and in turn to its shareholders, to get the best contract for their corporation. There is nothing wrong with that; they have a legal duty to their shareholders and creditors to protect them, not you.

They will, however, indicate whether or not you workout plan is “acceptable” or “unacceptable” to them. If the proposed plan is “unacceptable”, one of two things can happen. The dealer can keep proposing plans, until one is accepted, or the factory/lender might suggest an acceptable alternative.

If the factory/lender suggests a plan acceptable to them, it means just that: the workout plan is acceptable to the factory/lender. It does not mean, and should not mean, the factory/lender will not approve some other plan, which may be more beneficial to the dealer, if the dealer knows what to request and how to structure it.

2. Do Not Confuse Optimism with Confidence. Optimism means expecting a plan will work. Confidence means knowing what to do if it does not. Never act without confidence.

3. Do Not Value a Dealership by the “SOT + Assets” Formula. The odds against that plan working are about the same as the odds against winning the lottery, except the ante is higher.

4. Do Not Say “SOT”. Sometimes a dealer talks in terms of SOT (Sold Out of Trust) or OT (Out of Trust) with the factory or lender, when the dealer actually has SAU (Sold and Unpaid) units. Once the dealer refers to an out of trust situation, it puts the factory/lender in a precarious position. All sorts of rules then come into play, both legal rules and company rules, which would not have had to take effect if the dealer used the phrase SAU. The factory/lender can’t read minds to know the dealer really meant SAU, instead of SOT. From the moment the phrase SOT is used, the only thing the listener knows for certain is, if there is a law suit and the listener were asked if the dealer said he or she were SOT on such and such a date, the listener would have to answer “yes.” Don’t put them in that position.

5. Do Not Lie. Don’t lie to yourself; don’t lie to the factory; don’t lie to the lender.

Dealers, who lie to themselves about their problems, how they got there, or their ability to solve them, base their entire solution upon a lie and, without exception, compound and complicate the original problems.

A lie to the factory/lender will alienate the only entities which have both the ability to help and the most to gain, besides the dealer and the dealer’s family, in finding a workable solution. When in doubt, remember what Mark Twain said: “I never got hurt by anything I didn’t say.” He also said that when he was ninety, he recollected he had worried about a lot of things in life, most of which never happened.

6. Do Not Panic. There are many challenges in business, and being short of cash is but one of them. Numerous dealers have been there before and numerous dealers have survived.

Analyze the problem as if it were someone else’s problem, and compose a short letter as if you were giving advice to another dealer. The advice should be to get professional help. A storm at sea, calls for seasoned sailors. No one would want a crew with little experience in storms, unfamiliar with navigation, no charts, no radar and no one to call upon for advice. A dealer with a SOT problem is in a big storm, except it won’t go away with time. Without help, the dealer’s family, friends and employees will all be affected. The dealer has to make tough decisions, or time will make them-and the dealer will not like the decisions time makes.

At the time the lender has the second meeting, referred to above, wherein the lender wants the dealer to sign the work-out agreement, the dealer should be prepared to structuring of the work-out plan, the handling of a keeper, the method of repayment and such.

As soon as you know you are OT, your first call should be to us (or someone as experienced as us) and your second call (after visiting with us, your attorney and accountant) should be to the credit company. Telling the credit company you have sold and unpaid units before they tell you, is vital to establishing a foundation upon which to build a work-out plan. At the same time, Automotive Advisors’ experience is vital to the dealer and the dealer’s attorney and accountant, in providing constructive suggestions and in planning and recognizing realistic options.