What is a Surety Bond ? It’s a generic name for all bonds. Surety Bonds are usually required by the state or Federal Government; these bonds are called License and Permit Bonds.
most states require a Surety Bond
There are three parts of a Surety Bond, the first is the Obligee. They are the entity requiring the Bond (the State Government via your Local DMV agency). Second is the principal. The Principal is the person whom will perform the contractual obligations set forth in the Bond Form (this is you and your automotive business). The third part is the Surety Company. They are the entity who will be insuring the Bond (this is the insurance company or bond issuing company).
According to state DMV requirements, spplicants for a new vehicle dealer, used vehicle dealer, or broker’s license must obtain a surety bond. A surety bond is like an insurance policy and can be obtained from insurance companies or bonding companies. Different states have different minimum bond requirement amounts …$20,000 and higher. Auto dealer bonds are required from car dealerships in every state.
You shouldn’t confuse them with insurance. While your insurance protects the cars you sell, auto dealer (surety) bonds serve as protection for your customers. By posting an auto dealer bond, you promise to run your business ethically. That means knowing the state’s rules and regulations and acting in accordance with them. It also means treating your customers fairly and not using fraudulent business methods (ie. selling crappy cars, etc.)
An auto dealer bond is underwritten by a surety bonds company, which guarantees that you are capable of keeping the agreement. This makes the surety legally responsible to cover all losses, caused by any negligent behavior on your part. Of course, it makes you legally responsible too. Auto dealer bonds go by other names too, such as MVD bonds, DMV bonds or used-car dealer bonds
The exact price you’ll pay for a surety bond will vary for a few reasons, such as: 1. The required surety bond amount 2. Your application and financial credentials 3. If you choose to finance your bond premium 4. Your credit score
Generally, if your financial credentials qualify you for the standard market, your premium could be calculated as just 1% – 2% of the bond amount, which would only be $350- $700 (annually) for a standard $35,000 bond. Of course dealers with bad credit could pay a premium that’s a higher percentage of the bond amount.
However, If you want an alternative to the traditional method of going to your Local DMV to get your Auto Dealer License, contact me right away.. I can get you legal access to a metal Dealer Plate and access to the wholesale Dealer Only auto auctions around the country. All this without buying a Surety Bond ! –> Message me right away.
Learn how to do Instagram Marketing for Auto Dealers so that you can have a daily stream of local residents asking about your vehicles for sale. Instagram is a large and still growing social network based on pictures and videos. Its huge value for you is that most people interact with Instagram from their mobile device. So you are always with your customer. Most of your customers have an Instagram account.
Most of your customers are on IG…
You can target specific regions on IG by using the proper geo city location hash tags. You want to establish your credibility as an auto dealer in a particular region or city. IG is a great way to connect with local residents and initiate conversation with real people in your community. Don’t think of IG as just a selling tool.. Don’t spam everyone with pictures of your inventory. Nobody really loves to follow boring Brands and Sellers online. People do love to follow Personalities, Celebrities, Excitement, Adventure etc. So become your local celebrity auto dealer..Declare it and become it…and make it exciting! As we have said, IG is about establishing your self as a local Brand with integrity…who just happens to also sell automobiles. Have fun on IG, keep it light and clean… postfamily friendly content and you will quickly gain momentum with just a 20-30 mins “work” on IG per day.
Content:
The most important aspect of Instagram Marketing for Auto Dealers is the type of content put forth. Always use high quality images and media. Keep your Page public and open. Keep in mind that there is no distinction between business and personal accounts on Instagram. Make sure the photos you post are following etiquette of good taste and within IG guidelines. Stay away from religion and politics and of course stay away from adult material. Assume that you will have 13yrs old children (and younger) who can access your Page.
Its always a safe bet to post a few images (selfies) of yourself and maybe a few of your family; if you are comfortable with that. Everyone loves motivational and inspirational quotes (non-religious). Everyone loves cute pics of dogs and cats (don’t over do it!), Everyone loves money tips…. Everyone loves to laugh. This is the kind of content you post to keep your page “sticky”. You want people to want to scroll thru and like some of your pics and leave a comment. They will also see your inventory pics and yourtelephone number. Don’t push a sale…allow the sale.
Frequency: Ideally you would be able to post everyday…1-4 times per day is the best. At the bare minimum , you should be able to post fresh new content once every 2-3 days. Take at least 10 mins per day to like pics and videos coming in thru your feed. It is a community…stay engaged at some level. At some point once you hit a certain number of followers, you will see that leads are starting to trickle in from all of your efforts. The all you have to do is just scale up at that point. Get some software to help automate the process (massplanner.com).
HashTags Always think of hashtags as an extension of your community. Hashtags are a cleverly simple way to categorize and file data (images, media) together. You absolutely have to create/incorporate hashtags that reflect the main city and region that you operate from. You want to establish your local “celebritiness” Im in Atlanta, so naturally if I were selling cars, I would create and use something like: #AtlAutoDealer #AtlantaAuto
Some of these kinds of hashtags may already be in use… you should definetly use them. If they don’t exist, then create them.
Being that I sell the Auto Dealer License Program, I use #dealerlicense#autodealerlicense in addition to my regular hashtags: #Atlanta #Atl #Family #Cars
GeoCity: It’s a great idea to use hashtags that reflect local hangout spots for the local residents. Not tourists..you want local residents. Do a little research. Put your city name in the search bar in Instagram and look up and use the relevant top hashtags. #GeorgiaAquarium #Lenoxmall #Buckhead #Decatur
Special interests groups: This is something that you throw in that you resonate with. The idea is to be where your local customers are. I’m in Atlanta, and maybe I post with these hashtags as well (substitute for yours) #AtkhookahBar #AtlBarber #sneakerhead #luxurycars #AtlNights
Software: If you are a little computers savy, I can recommend some software to help you automate the process of IG marketing for auto dealers. The software is called massplanner. Use it gently to get yourself likes and followers (automatic un-follows) for your IG account. You can automate comments too (use that sparingly). The software is $10 per month and will help you immensely.
Massplanner.com
Instagram is a “social” network. Emphasize what’s unique about you and your Brand. Be friendly, join in the conversation. Take pictures with your customers and the vehicle their purchased from you…and with their permission post them on IG. People want to know that you are real, are trustworthy and that they can relax and connect with you. And a few will buy from you also.
How to do Social Media Marketing for Auto Dealers without making your potential customers angry? Its really quite easy. Dont try to sell to them.The most challenging aspect of the Car business is generating leads and selling your cars. If you don’t have a large advertising budget or have a physical location (building) in a high traffic area, it can be an upward struggle to find customers. So what do you do? Besides using the online classifieds (Craigslist.org, Autotrader.com, Cars.com, etc), many of you will turn to social media because it’s fun and it’s free (mostly). Social Media Marketing for Auto Dealers is really very simple. Don’t try to sell cars.
That’s it….I know it sounds counter-intuitive, but social media is not for selling. It’s for socializing. In the midst of socializing …you can casually mention what you do for a living (if and when the question comes up). Social Media is about establishing relationships for future selling. It’s about presence and branding..and being where your customers are congregating.
Think about in the “real world”…you wouldn’t go to a party, bar or a dance club if you wanted to sell cars and trucks (would you ?). You and everyone else there… is there to have a good time…sip on something, share some good food , laughter etc. The biggest mistake many auto dealers commit is to try to sell a car (or anything for that matter) to a customer at a social event; who is not really interested in what you have to offer. But yes….you can sell a tremendous amount of vehicles on Social Media. How ? By not selling. What do I mean by not selling? I mean not going for the transaction. Selling is about transactions. According to Wikipedia “A sale is the exchange of a commodity or money as the price of a good or a service. Sales (plural only) is activity related to selling or the amount of sold goods or services in a given time period”.
What is marketing ? Marketing is more subtle…much less transactional. Marketing is about creating desire for your products. Its when you are more concerned with your customers’ needs and satisfaction regarding your product (customer service). Creating demand for your products…bolstering and creating Brand loyalty for you and your products. Remember, this is called social media marketing for a reason ! lol.. Most business owners don’t recognize the difference between selling and marketing at all. Yes, there is some overlap… Now Im not saying you cant post inventory or run ads on Facebook to sell your cars, but what I am saying is posts about your inventory on Instagram or Facebook account should only account for 1/4 or less of your overall content.
At least 80% of your customers are already on Social Media…
So now that we understand the difference between sales and marketing…lets understand how to market your cars. The two main things you need to be concerned are Content and Frequency. The content breaks down into: • Local news and Entertainment • Personal news and information • Motivation / Inspiration • Inventory
As I have stated before you should really keep your inventory posting to ¼ or less of your total content. Focus on what makes your local city or town great. Brand yourself as a local businessman that can be trusted. On your Instagram or Facebook talk about what affects the community. Give small bits about your personal life with the occasional picture of yourself and /or of your family depending on how much you want to share. This will help people to trust you and like you. People like to buy faces and people not Brands. That is why big company’s like Nike and Target like to use celebrities to sell their products.
Then the next component of content you can post should be uplifting, positive or inspirational in some kind of way. Stay away from religion…keep it very general. And then last but not least…you can post your inventory. This is the kind of content to post on Instagram, Facebook, Twitter, Pinterest, Youtube etc.
Frequency is easier to understand and has one basic “rule” to follow. Post 1-4 times a day for Facebook and Instagram, and Pinterest. Post double that amount for Twitter (it’s a faster moving stream). Youtube is indeed a social media community…feel free to post a video 1-4 times per month. A youtube video can be more educational….. how to maintain cars,……how to buy a car, how to inspect a car before you buy it….how to save money on car maintenance…etc etc. Always use your city to be tagged and used in your video headline titles. Why ? Because the idea is you want to position yourself as a local businessman or woman. This is the general blueprint for marketing your auto dealer ship on social media…..dont sell…
Text message marketing for auto dealers is definitely picking up in popularity. There are many third party text messaging vendors that will help you install and implement a plan to fit your budget. The whole idea is what content to promote, when to do it (frequency)…and how to deliver it …all without being invasive.
use Texting to increase sales
As an Auto Dealer, you are in the business of selling cars. The business of selling cars is a science and relays heavily on the art of marketing to instill perceived value in your Brand…and to keep your customer coming back again and again (and recommending you to their friends and family too). Marketing is the idea of staying emotionally connected to your customer…. This obviously can take an unlimited numbers of paths. In this day and age, you want to use technology as much as possible to leverage your time and money to keep this emotional connection. What better way than messaging apps and text messages ? Everyone of your customers carries their smartphone around with them everywhere they go. This is a great opportunity to stay in touch with your customers at all times.
high quality always appeals to people…
SMS Text Messaging is the most widely used data application in the world, with 3.6 billion active users, or 78% of all mobile phone subscribers. The term “SMS” is used as a synonym for all types of short text messaging, as well as the user activity itself, in many parts of the world. SMS is also being used as a form of direct marketing known as SMS marketing. ~wikipedia
Millions of people all over the country have the ability to receive text messages and that is why text messaging will become one of the largest and most effective ways to market and advertise. I love the internet…it is a great tool….but because of it, we are faced with the most challenging economic times of our generation and it is crucial that every marketing platform is utilized in order to effectively help grow your business. Because of the fast paced development of technology, businesses need to know how to keep up with the most innovative marketing strategies now more than ever and need to stay a step ahead of their competition.
I want you to realize text message marketing for auto dealers is not just for you to sell your vehicles and that’s it. It’s a smart and strategic way you can get existing customers and new potential ones a way to find out more about your business.
Now here is the secret sauce…
I know you must be asking yourself, what would I be texting to my customers ? Ok..watch this ..
marketing is all about staying emotionally connected to your customers.
Being a auto dealer is usually a local business entity. So, what you want to do in your text campaigns is give out pertinent and relevant information to your local demographic. Do your research. If I’m setting up an auto dealership in a City like Atlanta, Georgia..what would I text about ? Family events (like upcoming event specials at the Georgia Aquarium, etc), I would text about popular team sport events downtown, I would text about local celebrities, I would text about local breaking news affecting the area, I would text about local legislature and proposed laws that affect Atlanta. Every 3rd or 4th text , I would text about my “Luxury Vehicles for Sale” – ……. If I was sending out texts to my opt-in – list… I know that these people and potential customers signed up on my website..and have specifically given me their permission to text them. They saw something like …”Sign up here to get new inventory texts and local Atlanta news and events” (I promise to only send you 1-3 texts monthly).
Can you see how people would love this? Getting a text from me once every 8 or 9 days…… a little text with a nugget of local exciting news, or education /entertaining something. A coupon for free coffee at a local spot,….A coupon for $25 off for some car related service or product…… A little text with news of who has the cheapest gas in town..and who has the best coffee. A little text with news that the Oscars are filming downtown Atlanta this weekend…so don’t drive downtown. A little text that says…Hey I just got in this 2010 Black on Black BMW 350i going for $5,500…..sacrifice..is worth $7,000
This is the future of marketing…. Text Message or App message marketing Assuming that you have a mobile optimized website….(A mobile optimized webpage or landing page is simply a website that is configured for smaller device screens like cellphones, tablets and larger screens like laptops and desk tops)….expect more than 60% of your traffic will come from mobile devices – ie cellphones. Because people use cellphones and tablets to passively view content and search (research) the Internet for things that they plan to do or buy in the future.
When it comes to text marketing for your auto dealership business, you are way beyond using your personal cellphone or mobile device. You have to have a dedicated server (with necessary software), a reputable mobile hosting site to manage and facilitate the delivery of the texts…to fall within strict MMA guidelines This is all necessary to protect the privacy of your customers and the integrity of the list itself. Be very leery of people who want to sell you their text blasting services or lists of mobile cellphone numbers. You can get into legal trouble if these customers have not opted in to your text campaign.
A sms text message marketing campaign for a typical auto dealer usually starts with creating a mobile website or landing page. This mobile website can contain the pages of your coupons, services, referrals, pictures, videos and even a retail component. These mobile websites can further be turned into apps that a person can download and “anchor” to their cellphone or mobile device. This gives you even greater access to your customer at all times.
You can control all the data (texts, pictures, video) uploads via a desk top interface (or dashboard) . Thru various campaigns you are able to get people to “opt in” with their cellphone number. Get people to sign up from their cellphone and immediately be exposed to your compelling offer. This technique is super powerful because it will bring in a lot of new business to you in a very short period of time, and you will have all of those customers and prospects’ mobile phone numbers for future marketing.
Auto Dealer Loyalty Programs – how to retain customers and generate additional referrals from your principal customer base. One of the most powerful things you can do as a business person is build a business on loyal customers.
A loyal customer will buy from you multiple times…
What are loyal customers ? These are the customers that buy from you multiple times and refer their friends and family (their network) to you. These are your brand ambassadors and will promote you and your business even without you asking. These are the people who will post a picture on Facebook or Instagram with a caption.. “Just got my car from @AtlCarGuy ..check him out!” These are the customers who tell everyone about you, because of how you make them feel about your service. Good customer service builds loyalty.
You cannot discount the power of good customer service. Getting the car to your customer clean, on time for the agreed upon price, with eagerness and good charismatic manner. You have to have this just to remain competitive. But if you want to stand head and shoulders above your competitors you have to do something else. Make your customer feel good. Make them feel good about you ( be genuine, smile, act like you don’t care if they buy your car or not). Make them feel smart about selecting you to do business with and buy a car from. Make them feel good about the purchase. These are the basic elements of building rapport with your customer and making them fall in love with you. It’s never really about the car they are buying…its how they feel about the process. There are many ways to make a customer fall in love with you and your service. Great Customer service is first and foremost…and then there are the reward programs.
The second tier of a good auto dealer loyalty program is reward based. The typical industry standard auto dealer loyalty program is based on some kind of “valuable” coupon or auto related gift/service that is earned or given to a customer in hopes of retaining them. You have already seen these–> “Get a free set of tires when you”…. or “Free Oil change !” But those kinds of rewards are very boring and basic..not very exciting at all. There is nothing personal about it at all.
they have to feel good about the purchase
The best rewards program you can implement …has some kind of pleasant personal “emotional” anchor at its base. Sending your customer a birthday card and a personally relevant small gift ($5-10 item) is an example of a pleasant emotional anchor. It will make the person feel good thoughts and feelings toward you for remembering them. That good feeling that you just generated in them (with the birthday card) …will now be anchored to you and your business. They will think of you first when they need a new vehicle…and anytime someone they know needs a car. Now that’s loyalty!
If you are not an auto dealer with access to ‘Dealer Only ‘ Auto auctions…then you will ask yourself how to find cars to re-sell. You do have some choices….you can get your cars from government/public auctions or Craigslist/Ebay.
Craigslist is a good source for cars…
When I first started out, I didn’t have access to any auctions. I simply used Craigslist and you can do. Craigslist auto category is divided into two sections. One section for “Dealers” and one for section for “Private” sellers. Ignore the Dealer section and look only in Private sellers category. It is here where you will find the best financial deals. The idea is to look for undervalued cars, cars that people want or need to sell fast. I call these distressed sellers. They need to sell their car ..because their moving, need some quick cash, brought a new one, estate sale, ..etc etc.
You will have cars that are listed as “needs a little work”. These cars you should only look at if you can bring a mechanic with you (or you may be a mechanic yourself). Yes, you will find some gems… but my advice is to keep away from them if you don’t have the skill to sift the junk and find the gems. I’m not mechanically inclined, so I only search for distressed sells without the mechanical problems You can even do a search on Craigslist. Go to the auto section and do a search for these terms :
“Must sell”
“Sacrifice”
“ Or best offer”
“Priced for quick sale”
“Needs a little work”
Note: if you look at cars that need “a little work”..its only because you are a mechanic or have one that will go with you to see the cars…to make sure that you are not buying junk.
So anyway, you want to do this every day…scan thru the listings and set your targets on 5 or 6 cars that look promising in local area.
Make arrangements to see the car…and be sure that you bring cash. You will always have extra leverage with cash. Also note that the price listed in the ad has to be your starting point for negotiations. Let’s look at an example.
You have $3,000 to buy a vehicle to re-sell. You like Hondas and Toyotas…so that is what you look for. You see a Honda Civic listed for $2,800 needs a little work. The Craigslist ad says car needs a new bumper and radio replaced. Looks promising. First thing you have to do is discern (research) how much is this car worth in “Good Condition”. Then you need to calculate the “Street Value”. I define the street value as the midpoint between the highest and lowest sale prices for that car…. I usually check 2 or 3 sources to come up with the value of a car. The street value is the price you have to target if you want to sell your car quick (less than 30 days). Ok, so let’s go back to our Honda Civic. You calculate the street value to be $4,200 – $4,500. So far the car is looking like a good candidate.
honda civic has great re-sell value
Next you have to ascertain how much it will cost you to fix the car and get it to “Good Condition” for sale. Your mechanic says no problem, he can replace the bumper and radio for $350. Now you are getting excited. You can make a profit on this car. SO you go back to your seller and offer $2,500 cash for the Honda. The price listed is always your started point for haggling. I don’t care how pretty the car is looking..never pay the full asking price. Walk away. Have that vibration on you like you don’t care about the car…you can take it or leave it. Once you approach every purchase like this, you will always get the better (lower) prices. You have to learn how to feel your way with this. Buying good cars from distressed sellers is one way to source your vehicles. This is a little tricky at first but you will get the hang of it. Never buy something that doesn’t feel right. If you are savy enough you can draw up an agreement that says gives you 3 days (72 hours) in which to return the car if it is deemed to have some large unforeseeable mechanical problem. Most people will be agreeable to this. I have done it myself on many occasions. If the seller balks…then take that as a sign that there is some hidden problem that they are hiding. Walk away. There are tons of cars online for sale. There is no lack…only abundance.
Ok…so we got our first car …a honda civic which we brought for $2,500 and needs approximately $350-$400 in work to get to “Good Condition”. This brings us to $3,000 in costs for inventory. Factor in another $100 for sales ads …and you can expect to make about $1,000 on this vehicle.
Now a lesson to learn is never cut yourself short. The research has to be accurate. When you are checking on the price of a car, equipment trim levels, engine size and type, etc . all play a part in the valuation of a car. When in doubt, always value it lower. When you are looking at whether to buy a car or not, look at the gap between your total cost to acquire the car (including mechanic costs, sales costs, prep detail, etc)… and the lowest price point of the Street Value. If you don’t have at least $1,200 gap there…then don’t bother. Look for another car to invest in.
If you want a more reliable source for your vehicles,contact meto get your auto dealer license based on Adesa or Manheim auto auction. Adesa and Manheim run the largest Dealer Only Private Auctions in the country. Most of these vehicles are from “off lease”, corporate fleets, and rentals.
