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									December 2001
  “Listening is more than
                                                                                                    8 Are You Listening
                                                                                                                                                                                         THIS ISSUE
  a courtesy; it is good                                                                                   Making sales without listening is like
                                                                                                           going sailing without the wind. You
  business. Just think of the                                                                              can do it… but why? Are you listening
                                                                                                           enough to your customers? To your
  people you deeply trust.                                                                                 prospects?
                                                                                                           by Jay Steven Levin
  Now think of the people
  you don’t. Who listens?”                                                                       10 Listen With Sincerity
                                                                                                           Years ago, I learned a good lesson when
                                                                          (PAGE 8)                         a man came into my showroom to buy
                                                                                                           a car. I spent half an hour with him
                                                                                                           and was convinced he was going to
                                                                                                           buy. All that had to be done was for
 Charles S. Miller ................................................................. Chairman
 Paul A. Larson, Jr. ...................................................... Vice Chairman                  me to take him into my office and write
 Edward J. Barlow, Jr. ........................................................... Secretary               up the order.
 James V. Tino, Jr. ................................................................ Treasurer
                                                                                                           by Joe Girard
 Richard A. DeSilva ....... Regional Vice President (Northern Region I)
 Stuart Lasser ............... Regional Vice President (Northern Region II)
 Robert J. Greces .............. Regional Vice President (Central Region)
 Michael DeSimone ........ Regional Vice President (Southern Region)                             14 New Vehicle Market
 James A. Curley ......................................................... Past Chairman
 John Zanger, Jr., NJ CAR Insurance Co. Ltd. ..................... Chairman
                                                                                                    Outlook for 2002
 A. Theodore Eckenhoff, NJ CAR Group Insurance Trust ...... Chairman                                       At the end of last year, Auto Outlook,
 Anthony J. Tolerico, NJ CAR Services, Inc. ........................ President                             Inc. predicted that the New Jersey new
 Brian O’Shea ........................................... Truck Committee Chairman                         vehicle market was headed for a mild
 Raymond M. Burke, III, CAR-PAC ........................................ President
 Robert J. Maguire, NADA ...................................................... Director
                                                                                                           slowdown in 2001. And indeed, that is
 James B. Appleton .............................................................. President                exactly what transpired.
                                COUNTY TRUSTEES                                                            by Auto Outlook, Inc.
        ATLANTIC                                        MIDDLESEX
        Jon Agresta
        Gabe Staino (Alt.)
                                                        Dennis Adams
                                                        Raymond Laffin                           18 Is The Used Car In-
        Joseph Agresta
                                                        Donald R. Buhler                            dustry Alive And Well?
        Joseph Dockery                                  Robert L. DeFelice                                 How big exactly is the used car indus-
        William Kundert, Jr.                            William R. Keith
        Michael Salerno                                                                                    try in the U. S.? How does the average
        BURLINGTON                                      Eric Nielsen
                                                                                                           used car turn rate affect sales oppor-
        Charles Falkenstein                             Vladimir Scerbo                                    tunities? Are we headed for good times
        Hank Herrington                                 Adam Barish                                        or bad?
        CAMDEN                                          OCEAN
        Larry Gorin                                     Kirk Larson                                        by Duane Sprague
        Joseph H. McErlean (Alt.)                       Edward DeFelice, Jr.
        CAPE MAY                                        PASSAIC
        Dennis Egan
        William Kindle (Alt.)
                                                        Robert X. Robertazzi
                                                        Eugene C. Meyers
                                                                                                 24 How to Prosper in
        CUMBERLAND                                      SALEM                                       Businesss Regardless
        Robert Novick
        Richard J. Kull (Alt.)
                                                        Gary Groff
                                                        William Eakins (Alt.)                       of The Economy
        ESSEX                                           SOMERSET                                           In purchasing equipment for my busi-                       For advertising information, contact Don F. Brown:
        Andy Hoffman                                    John Kemper                                        ness, I patronized the same dealer
        Justus B. Von Lengerke                          Clifford Nagle, III                                                                                                                 1.813.914.0383
        West Caldwell                                                                                      for nearly 30 years. I like their wide
        GLOUCESTER                                      Frank R. Allocca                                   product selection and attractive prices.                                           Official publication of
        Allen C. Eastlack                               Michael McGuire (Alt.)                             One day I defected, and this is why.
        Mark Pellegrino (Alt.)
                                                        UNION                                              by Emmet Robinson
        HUDSON                                          Mitchell Friedman
        Peter Sucato, Sr.                               Nelson L. Taylor, Jr.
        Joe Bellavia (Alt.)                                                                      The New Jersey Auto Retailer is a publication of Newsletters Inkcorporated and is the official publication of NJCAR (New Jersey Coalition
        HUNTERDON                                       Eric Nielsen                             of Automotive Retailers). The New Jersey Auto Retailer is published 4 times per year by Newsletters Inkcorporated.
        William Muller                                  William Muller (Alt.)                    The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of New
        James T. Botsacos (Alt.)
                                                                                                 Jersey Auto Retailer, or its publisher Newsletters Inkcorporated. Any legal advice should be regarded as general information. It is strongly
        MERCER                                                                                   recommended that one contact an attorney for counsel regarding specific circumstances. Likewise, the appearance of advertisers does not
        H. Richard Coleman                                                                       constitute an endorsement of the products or services featured by Newsletters Inkcorporated.
        Paul J. Muller, Jr.

December 2001                                                                                                                                                                                                                                   3
    NJ CAR Very Much “Alive and Well”
                   James B. Appleton, NJ CAR President

                           With the start of the Coalition’s new
                       budget year on November 1, we begin
                       our 84th year of serving the interests of
                       New Jersey’s franchised new car and
                       truck dealers. Let me assure you that,
                       as the chief staff officer, I know every
                       member of the NJ CAR staff is commit-
                       ted—perhaps more than ever—to provid-
                       ing the highest level of service possible
                       to the 99.9% of New Jersey’s new car
                       and truck dealers who choose to be Coa-
                       lition members.

       For many small- and medium-sized dealerships, their
    primary contact with the association was through the
    Group Insurance Trust. Since the announcement last sum-
    mer of the decision to discontinue the operations of the
    Group Insurance Trust, a handful of dealerships have ques-
    tioned the need to retain their membership with the Coali-
    tion. Regardless of the potential financial or member rela-
    tions fallout from the termination of the Trust’s health
    benefits plan, it is clear that NJ CAR still has a crucial
    role to play protecting and advancing the interests of New
    Jersey’s 650 franchised new car and truck retailers.

        The events that led to the decision of the Group Insur-
    ance Trustees to terminate the Trust and wind down the
    Trust’s operations forced the Group Insurance Trustees to
    act quickly and make certain that any decision they made
    would ensure that NJ CAR Group Insurance Trust par-
    ticipating dealerships and their employees could find cov-
    erage by August 1. As the Trustees weighed the options
    available to them, it became clear that the health insur-
    ance marketplace was ready to absorb dealer business. Al-
    though the Trustees looked at several options to keep the
    plan going, it was clear that the best way to protect Trust
    participants (i.e., dealership employees) was to give them
    immediate notice that benefits would cease at midnight on
    July 31. That way, employees and dealers could take full
    advantage of a competitive marketplace so they could ob-
    tain replacement coverage.

        While the Group Insurance Trust is terminating opera-
    tions, the Coalition is very much alive and well and still
    has a vital role to play as an advocate for auto retailers
    and by providing members with other valuable services.
    Government, public and industry affairs, education and le-
    gal/regulatory compliance issues remain central to the
    NJ CAR mission. Member services like the Motor Vehicle
    Agency, online title and registration processing through
    triVin and CVR, annual conventions and trade shows, edu-
    cational seminars, the long distance phone program, hole-
    in-one insurance, Section 125 “Cafeteria Plan” and long-
    term disability programs offered through American Fidel-
    ity Assurance Company, group life and other services are
    still available through NJ CAR. In addition, NJ CAR Ser-
    vices, Inc. will continue to offer a full range of automotive
    business forms, promotional items, as well as property and
    casualty consulting services.

                                               continued on page 26

4                                                    December 2001
           The Role of the Coalition
                  Charles S. Miller, NJ CAR Chairman

                          I’m pleased to be able to communicate
                      with you through this premier issue of
                      New Jersey Auto Retailer. This new pub-
                      lication will be sent to all NJ CAR members
                      on a quarterly basis. I look forward to seeing
                      this publication continue to grow in the years

                         This year’s NJ CAR Annual Meeting
                     & Business Expo was on track to exceed
                     the success of last year’s event. Changes made
                     in the programming and a change in venue
                     to a more centralized location was made to
make the event more accessible—especially for day-trippers. The
Coalition had lined up a full complement of exhibitors for Busi-
ness Expo 2001, in addition to an extensive listing of keynoters,
speakers and seminar presenters. The tragic events that unfolded
at the World Trade Center, the Pentagon and in Pennsylvania on
September 11 changed all that. The fallout from those events,
including an immediate decline in business and a dramatic plunge
in consumer confidence, made it clear that it wasn’t going to be
business as usual for any time soon thereafter. When little had
changed by the end of September, a decision was made by the
Executive Committee to cancel Business Expo 2001 and to scale
back the remainder of the programming planned for the event.

    As required by the Coalition’s Constitution and By-laws,
NJ CAR held its 83rd Annual Meeting. In addition, the CAR-PAC
events, including the legislative luncheon, golf outing and recep-
tion, went on as scheduled at Forsgate Country Club. Those events
were well received in terms of both the number of dealer princi-
pals and number of legislators who were in attendance.

    Obviously, this year has been a tough one for the Coalition, and
the Executive Committee has had to wrestle with some tough deci-
sions in light of the many difficulties that arose as a result of the
decision to liquidate the Group Insurance Trust, and the resulting
impact the liquidation of the Trust will have on the Coalition’s
budget moving forward. However, the Coalition remains commit-
ted in its mission of representing the interests of New Jersey’s
new car and truck retailers.

    NJ CAR’s commitment to the New Jersey dealer body was
demonstrated in its push for amendments to New Jersey fran-
chise law, to clarify the “formula” used to calculate “retail” for
parts used by retailers in warranty repairs. After the legislation
became law in 1999, Ford dealers, many of whom quickly acted to
request an increase in their warranty parts reimbursement, re-
ported a substantial increase in their service department bottom
line, with increased payments being received from the manufac-
turer. GM dealers also benefited with an agreement reached with
that manufacturer to increase parts reimbursement for New
Jersey’s GM dealers to “cost plus 60%.” When DaimlerChrysler
threatened any dealer who filed for an increase with an across-
the-board surcharge on the new vehicle invoice, it was the Coali-
tion that went to court to protect the rights of dealers, and suc-
ceeded in obtaining an injunction prohibiting the manufacturer
from continuing to pressure dealers not to file for an increase in
warranty parts reimbursement.

   We know that the manufacturers have already begun attacking

                                              continued on page 26

December 2001                                                           5
Making sales without
listening is like going
sailing without the
wind. You can do it…
but why? Are you listen-
ing enough to your cus-
tomers? To your pros-
pects? Your lead turn-
ing rate should reflect
that you are. Does it?
    Are you trusted by your customers
and potential customers? Do you lose
control during customer objections or
rejections? Do you justify yourself and
your position when you meet resis-
tance in what you are selling? Are your
appointments going smoothly? Are the
people in front of you helping or re-
sisting you?                                    “Listening is more than a courtesy;
    Who’s talking more – you or your            it is good business. Just think of the people you
client? Do you have that nagging edi-
torial need to cut, paste and insert
                                                deeply trust. Now think of the people you don’t.
your sales pitch into every point your
customer makes? Do you feel that
                                                Who listens?”                           – STEVE DOYLE, DELOITTE & TOUCHE

what others need to say is more or
less important than what you thought         field. They know its value. They prac-       solutions to sales objectives faster and
you had to say to win the sale? Are          tice it. Sharpen it. And rely on it. Any     more efficiently. Their win rates stay
you learning how your clients think          good sales person knows that without         high and their customers remain cus-
and what their needs are?                    their ears they would be out of a job.       tomers. But most importantly, they win
                                                                                          their customers to themselves and into
   Listening well is a skill. Just ask the      Listeners in any field win. They win      better relationships than the competi-
top sales performance leaders in any         people to their points of view. They win     tion has with them.

8                                                                                                                December 2001
12   December 2001
                          New Vehicle Market
                             Outlook for 2002

                  Sales Predicted to Decline, but Remain Strong
                                                                      Despite the economic slowdown (and excluding the
At the end of last year, Auto Outlook                             events of September 11), the outlook for the State’s new
                                                                  vehicle market would otherwise be bright. Granted, the
(an independent automotive market                                 State’s unemployment rate is headed higher; but personal
analysis firm) predicted that the                                 income growth remains adequate, interest rates are at near
                                                                  record–low levels, and vehicle transaction prices are
New Jersey new vehicle market was                                 stable—all contributing to improving consumer
                                                                  affordability. After seven straight years of strong sales and
headed for a mild slowdown in                                     a slowing economy, the market was due for a slowdown,
                                                                  but there were enough sound fundamentals in place to
2001. And indeed, that is exactly                                 give the market a boost and avoid a major falloff. Then came
                                                                  September 11, and with it concern about the psyche of the
what transpired.                                                  consumer and what the war on terrorism could mean for
                                                                  the economy.
    Sales declined by 4.6% through September of this year
vs. a record-setting year in 2000, with the State’s retail mar-       At this point, these questions have not been concretely
ket on track to exceed the 525,000 unit level for the second      answered, but early signs are very encouraging. October
consecutive year. And then came the tragic events of Sep-         new vehicle sales were strong and consumer sentiment
tember 11, which made previous assumptions and conven-            appears to be rebounding. It is practically guaranteed that
tional market predictors obsolete. Or did they?                   sales in the fourth quarter of this year will significantly
                                                                  exceed last year’s total, greatly assisted by generous incen-
    In a nutshell, there is a predicament that forecasters find   tives. And Auto Outlook is fairly confident that 2002 will be
themselves in during these uncertain times. In general, there     another good year for the State’s new vehicle market. A
are two sets of factors that will shape the direction of the      decline in sales next year is almost certain, but by histori-
State’s new vehicle market for the rest of this year and 2002.    cal standards, the market should remain in relatively good
The first key factor is typical and identifiable economic and     shape.
automotive market characteristics that have proven to be
accurate predictors of new vehicle sales. The second key             Forecast conclusion: New Jersey new retail light vehicle
factor that will affect the market over the next year is con-     registrations are predicted to decline by less than 2% this
sumer attitudes and reactions to the ongoing war against          year (vs. 2000), and decline by 7.0% in 2002. (See graph page
terrorism. Following is our synopsis on how these two broad       17 for historical and forecast registrations in the State.)
factors might impact the New Jersey vehicle market over
the next year.                                                    Source for historical data: The Polk Company

14                                                                                                               December 2001
     Is the Used Car Industry
                     Alive and Well?                                                          By Duane Sprague

                                                            is 38% of all used vehicles are sold by franchise dealers,
How big exactly is the used car indus-                      34% by independents, and 27% C2C.
try in the U. S.? Is it an area of grow-
                                                               Based on the past 11 year average, franchised dealers
ing opportunity? How does the aver-                         sold 15,375,178 used vehicles every year, which represents
                                                            39% of the used market. Over the same period, the inde-
age used car turn rate affect sales                         pendent dealers sold an average of 13,084,181 units per
                                                            year (32.6% of the used market) and the C2C market has
opportunities? How much of the used                         averaged 11,151,000 per year (28.2% of the used market).

car market do independent dealers                              The average for the past 3 of 11 years shows a slight
                                                            increase in the total volume of used cars sold by the
own? Are we headed for good times                           independents (1.4% increase). While the franchised deal-
                                                            ers lost 1% and the C2C market lost .2%.
or bad?
                                                               Of the 213.3 million registered vehicles in 2000, 42
                                                            million were re-sold, re-leased, or turned in within the
   Based on an 11 year average, 57 million vehicles are     calendar year, which represents a 19.7% annual turn rate.
sold each year in the U.S., with an average of 18 million   And this percentage remains quite constant year to year.
(31%) being new vehicles sales (including private, gov-     So we can bank on the fact that one-out-of-five registered
ernment, commercial and fleet), and 39 million (68%)        vehicles will change ownership every year. This means
used. Of the record 59.1 million vehicles sold in the       that based on a 20% annual turn rate alone, over 41 mil-
year 2000, 30% were new, and 70% (41.6 million) were        lion adults will be in the market for a vehicle every year.
used. The used market alone represents $363 billion
dollars in gross sales, with an average selling price of        According to the Global Vehicle Remarketing report pub-
$8,716 per copy.                                            lished by the ADESA Corporation, and written by Tom Kontos,
                                                            “…used vehicle sales are expected to grow from the 41.6
   Of the 41.6 million used vehicles purchased in 2000,     million in 2000 to 46.5 million in 2005 – an increase of nearly
28% or 11.9 million were bought and sold between con-       5 million units.” I would say the used car industry is headed
sumers, known as the C2C market. This means 72% (29.7       for good times.
million used units) were sold by franchised and inde-
pendent dealerships. Nationally, the three-year average                                      continued on following page

18                                                                                                        December 2001
        “How to
       Prosper in
     Regardless of
     the Economy”
         Show Your
        By: Emmet Robinson

In purchasing equip-
ment for my business, I                           We all say “thank you” when the sale is made, but talk is
                                                  cheap. If you’re really grateful for someone’s business, send a
patronized the same                               thank-you note. Be brief, but sincere. Say what you feel, as
dealer for nearly 30                              long as it’s positive.
years. I liked their wide                        may be the most competitive times in           ways of making your note more special:
product selection and                            the history of our nation. In a surging        • Thank-you notes are always hand writ-
                                                 sea of change, your customers have a              ten, never computer printed.
attractive prices. One                           rapidly expanding selection of provid-         • Blue ink is more reader-friendly than
                                                 ers to choose from. To have them con-             plain black and less likely to be mis-
day I defected, and this                         tinue to choose you, how you acknowl-             taken for a pre-printed form.
                                                 edge their contributions to your eco-          • Be specific. Refer to the order placed
is why.                                          nomic welfare can make the difference             or transaction completed.
                                                 between winning and losing in the tricky       • Use a real stamp instead of a postage
    I suddenly realized that, in all the years   years to come.                                    meter.
of giving those folks my money, they never                                                      • Mail it today-before day’s end if at all
truly expressed their appreciation for my            We all say “thank you” when the sale          possible.
loyalty as a long-time customer. After 30        is made, but talk is cheap. If you’re really
years and thousands of dollars, I never          grateful for someone’s business, send a            This inexpensive activity is based on
received so much as a simple thank-you           thank-you note. Be brief, but sincere. Say     the simple principle of positive reinforce-
note. Each time I left the store with a new      what you feel, as long as it’s positive.       ment: “What gets rewarded gets repeated.”
purchase, I ceased to exist.
                                                    Okay, so you’re not a great writer.             Always remember: They didn’t have
    Since then I’ve found other provid-          What can you say in a thank-you note?          to buy from you; they could have given
ers who have the same products at the            How about, “Dear Bill: Thank you for           their money to someone else. n
same prices. The difference is that they         your order.”
show their appreciation for my business.                                                        Emmet Robinson is an entertaining professional speaker
                                                                                                serving the financial services profession. For a Free
What does this mean to you?                         That’s short, simple and easy to spell.
                                                                                                Catalog, call 610-647-4341.
                                                 You could scribble that in 60-seconds flat.
     For American business people, these         Can you spare a minute? Here are a few

24                                                                                                                             December 2001

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