Auto Remarketing Article Summary: NADA cautions dealerships about Consumer Review Fairness Act

In the last few months several dealerships have been engaging in questionable conduct by putting clauses in their installment contracts that discourage customers from leaving negative online reviews. This was a clear violation the Consumer Review Fairness Act (CRFA), which is a consumer protection statute banning the use of gag clauses in non-negotiable consumer for contracts.

The National Automobile Dealers Association (NADA) announced that the Federal Trade Commission (FTC) recently came down on five separate businesses that violated CRFA. These businesses were sued on the basis that their contracts barred customers from leaving negative reviews and demanded financial compensation from those whom did. This is the first time that the Federal Trade Commission has enforced the CRFA ever since it was signed into law in late 2016.

The CRFA protects a broad variety of consumer assessments, including your right to share your opinion about a business without negative repercussions. This includes comments, thoughts, reviews, or dislikes on any forum.

In a later blog post the FTC shared more information about the CRFA and how dealerships, and other businesses, can avoid violating it. This post urged businesses to thoroughly review their form contracts. It is best that these form contracts are very clear regarding the CRFA, as any suspicious conduct can be challenged if it blurs the lines. On the same note, the FTC reminded dealerships that the FTC act, which outlaws unfair acts or practices that affect commerce, still applies. Lastly, all dealerships should know that any clause baring reviews is in violation of the CRFA, even if the dealership does not enforce it.

Auto Remarketing Podcast Summary: Dealertrack on Handling Consumer Demand for Financing

Auto Remarketing podcast host Nick Zulovich is joined by the Senior Vice President of Dealertrack, Cheryl Miller, to discuss some of the issues that car dealerships face while trying to meet customer demand and increase satisfaction when financing. They touch base on how Dealertrack is working towards fixing these issues. Lastly, they discuss the near future for Dealertrack.

What challenges do dealerships face in meeting customer demand when it comes to financing a vehicle purchase?

Dealerships use 6 different financing systems to make a car deal. This process often takes too long, approximately three hours. In addition, these systems are complicated and error prone. This process is often frustrating for dealers and buyers, and it tends to lead to a less satisfying experience.

How has Dealertrack’s new uniFI platform solved these problems?

The feedback from dealerships is that the platform is easy to use and decreased time spent by around 30%. The uniFI platform combines these 6 systems into one “deal jacket” to streamline the process. So far uniFI has improved the workflow in its young life.

What changes are we seeing about Auto Financing in 2019?

Electronic contracts are more popular than ever before. Dealerships are looking to digital contracting in order to go paperless and expedite the experience for buyers and lenders. In addition, Dealerships are looking to expand outside of their local markets as a result of lower projected car sales figures and rising interest rates. The process of registering vehicles in other states is time consuming for some dealers. Dealertrack is applying their technology solutions to help these aspects of the buying process and improve the experience for all parties involved.

The full episode of the Auto Remarketing Podcast can be found HERE. Download and subscribe to the Podcast on on iTunes or on Google Play.

Auto Remarketing Podcast Summary: How Successful Dealers Smooth Friction Points for Buyers

Nick Zulovich sits down with Rudi Thun, chief operating officer of Roadster, to discuss some of the biggest friction points when buying a car and how Roadster is making strives to smooth them out by working with consumers and dealerships. The two also discuss the stages of Roadster’s implementation, its impact on employees, and upcoming developments.

What are some of the biggest friction points in buying a car today?

The car-buying process is too slow, expensive, and remote. Customers spend 2-5 hours in a dealership, and often pay extra for the 5-7 people involved in the deal. Roadster wants to streamline the process, making a win-win for both customers and dealerships.

What are some of the stages that Roadster has evolved through dealing with dealerships?

From the start, Roadster was a direct-to-consumer service focused on the consumer experience. Over time they decided that it would be easier and more efficient to provide this software to dealerships at a monthly fee. Customers want a digital market where they can research, but also need brick and mortar stores with knowledgeable employees to help along the process.

How important is it for dealerships to have these knowledgeable personal at dealerships?

This software will help make car buying easier for customers and dealers, but you will always need to have these personnel there to help move the process along, perhaps with less dealership flair.

What developments are in store for Roadster?

Roadster is trying to make implementation of its software easier and quicker for dealerships. They also want to make the financial aspect easier and more automated. They want to ensure that a shopper could make a decision at any time or place.

The full episode of the Auto Remarketing Podcast can be found HERE. Download and subscribe to the Podcast on iTunes or on Google Play to stay on top of the auto finance industry.