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How to Run a Dealership: Four Automotive Investment Principles
1. Circle of Competence It’s important to know what you know and, more importantly, what you don’t know. Invest in the things you know and ignore the rest. I get asked, quite often, "______, what kind of cars should I buy?" My basic response for beginners is to buy what you know. If you have driven Hondas your whole life, that’s probably a good place to start. You know how they ride, what noises to listen for, what the common problems are, ... much better than a guy who has only driven Subarus. Right? My second suggestion is to always try to expand your circle of competence. 2. Margin of Safety Always buy with a margin of safety. Never pay too much. Your rate of return on your investment will be determined by the price you pay. Never pay too much, because there are always things you don’t know about the car. So use that margin of safety to work in your favor. If the car is worth $5,000, don’t pay $5,500 just to own it. You see it is totally possible you don’t everything about the car. In fact, I bet you don’t know everything about the car. There is an associated risk with buying any car or truck. There might be unknown repairs that need to be made once you get it to your mechanic. If you bought the car with a margin of safety, say $4,500, you have $500 you can use for the unexpected repairs. Or, maybe, it will take longer to sell the car than you imagined and you will need that margin of safety for more advertising. Remember: buy with a margin of safety. 3. Mr. Market Mr. Market is your paranoid schizophrenic partner in the car business—or more directly he might be your wholesaler, your local auction, or just the marketplace in general. Every day Mr. Market, with no thought or reason, makes available cars that can be bought at various prices. You can either take Mr. Market up on his offering price for the car or you can say no and wait for a better deal. Be mindful that you can always ignore Mr. Market and wait for the next car for a better deal! 4. Resource Allocation Your ultimate power and most critical decision is where to allocate your resources. Your main resource is your time and money. If you buy a car for too much money or one that requires too much work, it drains your resources. Be wise where you allocate your resources. Advantages and Disadvantages of Retailing with a Dealer’s License Advantages: 1. High profit margin on inventory. Great return on investment based on a reasonable turnover in inventory. If you buy a $1,200 car and make a $500 profit in two weeks, that’s a 41 percent return on your money in two weeks! (In a self-directed IRA that beats the stock market easily! Think about it.) 2. With a retail car dealer’s license, you can still wholesale for profit as well. 3. Ability to make extra money on warranties, financing, repairs, trade-ins, and extended service plans. 4. Use of dealer’s license and dealer’s plates. 5. Attend dealer-only auctions. Purchase inventory for wholesale prices at other dealerships. 6. No limit on the number of cars you can sell per year. 7. Purchase cars tax-free—no sales tax! 8. Ability to use the draft system and drive cars interest-free! Disadvantages: 1. Low public perception of "used car salesman." 2. Long hours on weekends, nights, and holidays. 3. Cost to get started and maintain an adequate inventory. 4. Dealing with the public. 5. Advertising, marketing, and personnel costs. Steps to Successful Auto Brokering What is an auto broker? An auto broker is a person who finds and negotiates a new or used car deal on the behalf of a client for a profit. Basically, a car broker acts as a one-person car dealership. With the right personality, you can make six figures with no problem. 1. The customer contacts you via your offline or online marketing or through a referral (whom you call and thank immediately). 2. Walk the customer through the buying process explaining the obvious benefits of dealing with you. Share information and listen. (Let the client talk!) 3. Invite the customer to come in and further discuss his or her options and to inspect the trade-in. 4. Write up the order and take a small refundable deposit. You also mention the benefits of a long-term extended service contract. 5. Hunt for the car via retail or wholesale channels. 6. Negotiate the deal and buy the car. 7. Get a buy bid on the trade-in. 8. Call the customer with the trade-in value and prices on the extended service contracts. 9. Call the client and update on your progress. 10. Get the car cleaned and/or inspected. 11. Facilitate financing through the customer’s bank or credit union or through your sources. 12. Have the paperwork printed up. 13. Deliver the car to the customer at his or her home or office or at your office. Sign the paperwork on the trunk or on the kitchen table. Drive the trade-in back to the office. 14. Send a thank-you letter the next day. 15. Call one week, one month, one year, and each year thereafter. List of Dealership Licensing Requirements by State Alabama Dealers must obtain a Regulatory Permit from the Sales, Use & Business Tax Division. The permit must be presented to the county license-issuing official for issuance of a Privilege License and to the Taxpayer Service Center for tag issuance. Categories of Regulatory Licenses: New Car Dealer, Used Car Dealer, Dismantler, Wholesaler, Rebuilder, Reconditioner Dealers must fulfill the following requirements: Provide evidence that motor vehicle held for resale are covered by a blanket liability insurance policy Display a sign designating the place of business Describe and insure permanency of the place of business Provide display area for one or more vehicles and a place for maintaining books and records Motorcycle and trailer dealers are exempt from regulatory permit. Licenses are renewed annually in person or by mail. Dealer License Fees: $10.00 per category, plus $45.00, or up to $210.00 for the Privilege License, depending upon the city or county of dealership $225.00 for automotive dismantlers. Alaska Anyone in the business of buying and selling vehicles (acting as a dealer) must be licensed. License must be renewed every two years. Application and proof of bonding required. Dealer License Fee: $50.00 for original application/renewal Arizona The state assigns a permanent four-digit code for new and used vehicle dealers. Renewal is annual. Dealer License Fees: Original license and annual fee, $100.00 Branch license, $50.00 per location within county Filing fee per application, $15.00 Provisional license, $10.00 Background investigation (per individual), $24.00 Arkansas License issued by the Arkansas Motor Vehicle Commission is required for franchised motor vehicle dealers (buying/selling three or more vehicles in a year). Dealer License Fee: $100.00 per year for each dealership $10.00 per year for each salesperson Used car dealers must be certified by State Police, display proof of liability insurance, and file a $25,000 surety bond with the State Police. Boat dealers have no license requirements; however, trailer dealers must be certified by local law enforcement officers. If a trailer dealer accepts a motor vehicle as a trade-in, the vehicle must be licensed and titled in the name of the dealership. Trailer dealers are not granted reassignment privileges for motorized vehicles. California All dealers must be licensed with the state. A dealer number and corresponding dealer plates are issued. Dealer License Fee: $150.00 application $100.00 renewal New auto, commercial, and motorcycle dealers must also pay the New Motor Vehicle Board a $100.00 fee. Colorado All car, truck, motorcycle, and trailer dealers must be licensed to conduct business in the state. A license is not required for boat, special mobile equipment, and off-road vehicle dealers. Applications must complete an application, submit a financial statement, post bond, pass a written exam, have an approved business location, and submit to criminal background investigation. Licenses must be renewed annually. Dealer License Fees: Fees are adjusted annually. Connecticut New and used vehicle dealers, manufacturers, repairers, wrecker services, and junkyards must be licensed. New vehicle dealers must be franchised by a licensed manufacturer. License issuance is subject to initial approval of local authorities. Upon approval, an application is submitted to the Dealers and Repairers Division of the Department of Motor Vehicles. Applications must be renewed biennially. Delaware Private individual may sell four vehicles per year before being required to become a licensed dealer. All dealers must be licensed by the state by Division of Revenue through the Division of Motor Vehicles. Application must include the franchise agreement. Prior to the issuance of a license, all dealer facilities must be inspected by a division representative (no inspection fee). Dealer License Fee: $100.00 upon application and renewal. Must be paid to the State Division of Revenue. District of Columbia Dealers must be licensed to sell vehicles in the District. License is required for new and used vehicle dealers, and a license is required for salespeople. Licenses are issued by the Department of Consumer Regulatory Affairs. An investigation is performed prior to the issuance of dealer and salesmen licenses. Contact: (202) 442-4400 Florida Motor vehicle dealers must be licensed. Individual or business selling three or more vehicles in one year must have a dealer’s license. Licenses are renewed annually. Dealer types: Franchise, Independent (Used), Wholesale, Auction, Mobile Home, and Recreational Vehicles. Applicants for a Franchised Dealer License must present a sales/service agreement and appointment letter or letters of intent from the manufacturer or distributor. All dealers must submit fingerprint cards upon initial application for a dealer’s license. Dealer License Fees: $300.00 application fee for all dealers $39.00 for each fingerprint card $40.00 for each mobile home or recreational vehicle dealer license application $75.00 renewal fee for Franchise, Wholesale, Independent, and Auction Dealers $140.00 renewal fee for all MH/RV dealers Georgia A Dealer License may be required for new vehicle dealers. Issuance is handled by each municipality. Leasing Companies and Independent Dealers who deal in used vehicles must be registered with the Used Car Dealers and Sales Tax Division. Mobile Home Dealers must be registered with the Fire Marshal’s Office. Motorcycle Dealers and Trailer Dealers are not required to be registered. Hawaii New and used vehicle dealers must be registered. Registrations are issued by the State of Hawaii, the Department of Commerce and Consumer Affairs, and the Motor Vehicle Industry Licensing Board. Dealers must be franchised to sell new vehicles. Idaho New dealers must submit an application and present the contract from the manufacturer. (See Dealer/Salesman’s license, Exhibit "D.") New Dealer Code—permanent three-digit number. Dealer plates and numbers are transferred upon sale of the dealership. Used Dealer Code— permanent four-digit number is issued. Motorcycle, ATV, and snowmobile dealer requirements (new and used) are the same as for other dealers. Dealer’s license must be displayed. All applications are investigated. Dealer License Fees: $115.00 and $10.00 paid with picture I.D. $100.00 renewal fee Illinois All dealers must be licensed. Dealer establishment must be inspected prior to licens-ing. New dealers must present a franchise letter and all dealers must obtain a tax number issued by the Department of Revenue. Used Vehicle Dealer License Fees: $50.00 for Certificate of Authority $25.00 for each additional establishment Annual renewal. Indiana Vehicle Dealer: Must be licensed. Dealer must have a lot, a building not attached to or part of a residence, a display area for at least ten vehicles, a permanent sign with name and hours displayed, garage liability insurance in prescribed limits, and retail merchant certificate number. All classifications of dealers, except wholesalers, must sell at least 12 vehicles per year. Upon application. the dealer must present proof of insurance, a photograph of the place of business, and the franchise agreement (required only for new vehicle dealers upon initial application). Salvage License: Issued for recyclers, crushers, rebuilders, and used parts dealers. Dealer must have three or more inoperable vehicles on the lot. A Salvage License does not grant reassignment privileges. Salvage operators cannot be issued dealer plates unless they meet the required dealer qualifications. Fee: $10.00 annually Transfer Dealer: Sale of vehicles is incidental to the business. Transfer dealers have restricted dealer plate use. Fee: $20.00 annually Wholesaler: Issued for a dealer that sells at least 120 wholesale vehicles per year with no retail sales. Iowa Distributors, manufacturers, motor vehicle dealers, mobile home dealers, and travel trailer dealers must obtain a dealer license to conduct business. Licenses are issued by the Office of Vehicle Services, Customer Services Section, on a staggered system; issued for two-, four-, or six-year periods. All applicants for a dealer license must have a place of business with a telephone installed and listed in the dealer’s name, repair and display facilities and an onsite inspection. Dealer License Fees: Dealers, manufacturers, distributors of travel trailers and mobile homes $70.00 for 2 years $140.00 for 4 years $210.00 for 6 years Phone: (515) 237-3110, (515) 273-3219 Kansas New and used vehicle dealers must be licensed and issued a dealer number. (Individuals or businesses selling over five vehicles in one calendar year must be licensed as a dealer.) Manufacturers of vehicles must also be licensed. Dealer License fees: $200.00 for manufacturers $50.00 for dealers License expires annually on December 31. New vehicle dealers require franchise agreement and an inspection of location (s), which must be zoned commercial, before license is issued. Inspection Fee: None for the primary location, $10.00 per secondary location(s) Application must be made in person. Dealers and salespersons are also investigated prior to license issue. Salespersons, distributors, and factory representatives must fulfill state examination requirements. Exam Fee: $15.00 for salespersons $25.00 for distributors and factory representatives Report of monthly sales activity must be filed. Kentucky Automobile, truck, and motorcycle dealers must be licensed with the state. Trail dealers are not licensed. Dealers must have an established place of business and a business name that identifies them as motor vehicle dealers. Annual fee: $100.00 All dealers must have at least one licensed salesperson for each location for which a license was issued. Use tax must be paid for all new vehicles sold. Louisiana Dealers must be licensed by the state. Upon application, new vehicle dealers must submit the franchise agreement. Used vehicle dealers cannot sell new vehicles. Any person who sells five or more used vehicles in any 12-month period must be licensed as a used motor vehicle dealer. Dealer License Fee: $10.00 for new vehicle dealers $200.00 for used vehicle dealers $100.00 for each additional place of business (new and used) Maine A license is required for new and used vehicle dealers. An individual or business selling more than five vehicles in a 12-month period, displaying three or more vehicles within a 30-day period, or buying vehicles for purpose of resale qualifies as a dealer in Maine. Application is submitted to the Bureau of Motor Vehicles. The application must provide the following information: size and location of the lot and size of the building, display, office and repair area. Applications must be signed by all parties and witnessed. The building lease must be valid for at least one year. Dealer License Fees: $150.00 filing fee and $150.00 licensing fee (both fees required upon application and renewal) $150.00 annual renewal Maryland Motor vehicle dealers must be licensed if they have sold more than five vehicles during a year. Dealers must have a location approved by an authorized representative of the MVA and must complete an application to be approved by the Business License & Consumer Services Division of the MVA, and must submit a bond in the name of the dealership. Laminated dealer photo license issued; annual renewal by mail is required. Dealer License Fees: $500.00 New and Used Dealer $300.00 for boat trailer dealers and trailers 15 feet or less Massachusetts Required for persons principally engaged as dealers. (See class listing for specific requirements.) Dealers must have a separate business office on the premises, maintain a Used Car Record Book approved by the Registry of Motor Vehicles, and post a sign displaying the type of business. Watercraft dealers must have a franchise letter from the manufacturer, a sign indicating the type of business and a separate place of business. Dealer Licenses are issued from the local City Hall; the Boston Police Department issues licenses for dealers based in the city of Boston. Licenses are issued for the following dealer classes: Class I—New and/or used vehicle dealer (business license required) Class II—Used vehicle dealer (business license required) Class III—Salvage parts/junk (business license required) Owner/Contractor—Must have ten vehicles (one of which is special mobile equipment and SME) and garage to work in (business license required). Owner/contractor plates may be issued to government agencies for public safety uses, persons engaged in leasing storage or mobile office trailers, and persons engaged renting or leasing vehicles or trailers to the public (fleets of 20 or more) Michigan An individual acquiring one or more vehicles with the intent of resale is considered a dealer and must be licensed. All dealers must include classification(s) on the application for annual license. Dealer Classifications: Class A—New Vehicle Dealer Class B—Used Vehicle Dealer Class C—Used Vehicle Parts Dealer Class W—Broker Class E—Distressed Vehicle Transporter Class F—Vehicle Scrap Metal Processor Class G—Vehicle Salvage Pool Operator Class H—Foreign Vehicle Salvage Dealer Class R—Automotive Recycler Minnesota All dealers must be licensed. New and used vehicle dealer licenses must have a permanently enclosed commercial building on a permanent foundation, office space for records. Personal franchise agreement and means for repairing vehicles are required for new dealers only. Used vehicle dealers must have a person to answer the telephone or an answering machine. Lessors and wholesale dealers must have an office, records, and a person to answer the telephone or an answering service. Auctioneer requirements are the same as for new or used dealers, but may be based outside the state. A site inspection is required for all dealers prior to the approval of a dealer license. Dealer classes include new, used and broker, lessor, parts, scrap metal, wholesale, leasing, and auctioning. Boat, snowmobile, and motorized bicycle dealers are required to be licensed. Dealer License Fees: $153.50 application and annual renewal fee $103.50 if application is made after July 1 $13.50 for boat, snowmobile, and motorized bicycle dealers Mississippi Applicants must have a place of business and an office, must display a sign, and must file a bond with the application. An 11-digit designated agent number is assigned to each dealer. The number is carried on any issued title and in the dealer record. Dealer License Fees (initial and renewal): $100.00 new and used vehicle dealers $75.00 trailer dealers $50.00 motorcycle dealers Missouri New, used, boat, wholesale, manufacturers, motorcycle, and trailer dealers are required to be licensed if they sell six or more vehicles or boats per year. Application, proof of a place of business, criminal record check, and registration fee must be submitted. Statement of insurance certification required. License expires December 31 annually. Dealer License Fees: $150.00 motor vehicle dealers $80.00 marine dealers Fees are prorated on date of application. Body shop/rebuilder, used parts dealer, salvage/dismantler, or mobile scrap processor must register and have a bona fide place of business. Only salvage dealers and dismantlers can purchase vehicles from a salvage pool. Fee: $65.00 per designation Expiration is June 30 annually. Out-of-state salvage dealers must register with the state. Fee: $25.00 Montana To apply for dealer license, franchised dealers must submit a copy of the franchise agreement from the manufacturer. All other dealers must submit only license application. Applications are investigated prior to license issuance. Dealer License Fees: New or used vehicle dealer $30.00 with $30.00 annual renewal. For applications after July 1, fees are reduced by half. Call Motor Vehicles Division, (406) 444-4536 Nebraska All dealer branches, dealers, and salespersons must be licensed. If an owner sells more than eight registered vehicles, motorcycles, or trailers within one 12-month period, a license is required. New car dealers must be franchised. Place of business, repair facility, ten-car parking lot, and a surety bond are required for application. An inspection is made to verify fulfillment of requirements. Dealer License Fee: $160.00 annually Nevada Nevada Department of Motor Vehicles Occupational & Business Licensing www.dmvnv.com/olbl.htm New Hampshire Dealers must be licensed with the state. Prior to license issuance, applicants are investigated by an agency inspector and must also be approved by local authorities. License renewal is March 31, annually. Dealer License Fee: $125.00 Dealer classifications include New, Used, Junk, Repair, Transporter, Utility, Motorcycle, and Wholesaler. New Jersey All new and used car dealers, leasing companies, and auto body repair facilities must be licensed. Applications for license are submitted to the Dealer’s Unit, Business License Compliance Bureau. Dealer plates and registrations are available only from Trenton. New car dealers must be franchised to sell new cars. A special license is required for used car dealers. Application packages include the application form, affidavit, signature card, security check authorization waiver form, and supplemental application form. Dealer License Fees: $100.00 for automobile dealers $350.00 for two-year auto body repair license fee New Mexico A dealer license is required for wholesalers, manufacturers, wreckers, distributors, new vehicle dealers, used vehicle dealers, house trailer, and motorcycle dealers. An established place of business must be maintained and zoning and fencing requirements must be met. All dealers must have a display area except wholesaler. On-site inspection is conducted prior to license issuance. Dealer License Fee: $50.00 upon application and renewal Dealer licenses are renewed December 31 each year. Call Motor Vehicle Division, (888) 683-4636 (toll-free) New York Dealers must be registered to do business in the State. Application and fees are submitted to Vehicle Safety Services Division in Central Office of DMV. Facility inspections are conducted prior to registration issuance. Dealer License Fees: original registration $325.00 for two years (includes $25.00 application fee) $300.00 for renewal Registrations are for a two-year period only. Dealers purchase MV-50 Certificates of Sale from the Department. North Carolina New dealers must be licensed. Application requires inspection approving established place of business. Dealer License Fees: Dealer Certificate $50.00 Salesman License $10.00 Dealers selling trailers or semi-trailers less than 700 lbs. and not carrying more than 1500 lbs. are exempt from dealer requirements. North Dakota All dealers of new and used cars, mobile homes, motorcycles, snowmobiles, trailers, and all-terrain vehicles must maintain a dealer license. Dealer licenses expire on December 31 each year. Renewal notices are sent to licensed dealers each October. Dealers are required to have an office and repair facilities. Watercraft trailer dealers are not licensed. Dealer License Fees: $50.00 for new and used car dealers $35.00 for mobile home $25.00 for motorcycle dealers $10.00 for ATV dealers $20.00 for snowmobile dealers $20.00 for trailer dealers Ohio New dealer must submit license application, statement(s) of contract from the manufacturer(s), personal credit report, police report, photographs of the establishment, and financial statement. All dealer locations are physically inspected. Card-size salesman’s license issued. Oklahoma New: Must be franchised, licensed with the Motor Vehicle Commission, have a shop for working on vehicles, and a used car outlet. Salesmen must be licensed. Dealer License Fees: $200.00 initial application $60.00 annual renewal Used, Wholesale, Salvage, and New/Used Manufactured Home Dealers: Must be licensed with the Used Motor Vehicle and Parts Commission. Dealer License Fees: $200.00 initial application $100.00 annual renewal Used dealers and New/Used Manufactured home dealers must have a building, lot, sign, and lavatory facilities. Salvage dealers must have a telephone, a lot, and a sign. Vehicles must be out and on site (fenced). Wholesale dealers must have an office. Watercraft Dealers: Must be licensed with the Oklahoma Tax Commission. Fee: $200.00 plus $10.00 per dealer franchise agreement Renewal: $100.00 plus $10.00 per each dealer franchise agreement. New/Used Trailer Dealers: Must be licensed with the Oklahoma Tax Commission. Fee: $15.00 (includes one dealer license plate) for each type of dealer Oregon Dealers must be licensed by the state. Dealer License Fees: $329.00 for three-year registration $327.00 for three-year renewal (includes plate). Dealer plates are issued to be used for demonstration and delivery purposes. Personal use is also permitted. Pennsylvania Application for license must indicate type of license for which the application is being made. License must be renewed annually. Each approved dealer is assigned an eight-digit dealer identification number (DIN). The first two numbers correspond to the category of vehicle the dealer is licensed to sell. Rhode Island All dealers must be licensed through the Motor Vehicle Dealers License Commission. Applications are investigated prior to license issuance. Licenses are renewed annually on December 31. Contact: Motor Vehicles, (401) 588-3020 South Carolina State license is required for all new and used car dealers and camper/motorcycle dealers. Dealer License Fee: $50.00 Issued for demonstration and delivery use only. New car dealers are not required to be franchised; used car dealers may sell new cars. South Dakota An individual in the business of selling or advertising sale of vehicles is considered a dealer and must be licensed. Dealer application requirements and renewal applications are filed through the County Treasurer. Investigation of the applicant and the described place of business are conducted by the state dealer inspector. The place of business must be: a) a commercial structure within the state of South Dakota, with a display area for five or more vehicles b) in accordance with building codes and zoning laws c) location where required books and records are kept d) the principal business at the location (cannot be the residence of the applicant). Dealer License Fees: new/used vehicle dealer $250.00 ($100.00 renewal) mobile home dealer $250.00 ($75.00 renewal) motorcycle dealer $200.00 ($75.00 renewal) snowmobile dealer $100.00 ($50.00 renewal) trailer dealer $75.00 ($50.00 renewal) Tennessee When an individual sells more than five vehicles during a calendar year, he or she is considered in business and must be licensed by the state as a dealer. When applying for license, new vehicle dealers must submit a franchise agreement. New Vehicle Dealer License Fee: $100.00 for each branch upon application/renewal. Used vehicle dealers may not sell new vehicles. Used Vehicle Dealer License Fee: $100.00 upon application/renewal A facility inspection is conducted for all dealers prior to li-cense issuance. Texas Any person who is engaged in the business of buying, selling, or exchanging motor vehicles, motorcycles, travel trailers, or trailers/semi trailers is required to obtain a dealer license. The Motor Vehicle Division assigns a current valid, general distinguishing number for locations in each city municipality. The main exception is for a person who sells fewer than five vehicles in a calendar year, provided the vehicles are titled and registered in such person’s name. New Franchise Dealer License Fees: $175.00 franchise fee plus $500.00 for each required general distinguishing number; annual renewal fee determined by number of cars sold in a calendar year. Used Car Dealer License Fees: $500.00 for the first year; $200.00 renewal fee per year Texas Motor Vehicle Board, (512) 416-4800 Utah License is required for all dealers. A dealer is an individual selling or exchanging three or more new or used motor vehicles within a 12-month period. All applicants are investigated by the Motor Vehicle Enforcement Division. Application Form TC-301 must be completed. Dealer License Fees: New Vehicle $125.00 Used Vehicle $125.00 Vermont Dealers selling 12 or more cars in a year must be licensed. Dealers must have real estate value of not less than $10,000. License renewals are on a staggered basis. A Dealer Audit is conducted by State Inspectors for approval of license renewal. Dealer License Fee: $275.00 for new and used automobile dealers (five plates) Virginia Certification of Qualification required: each new dealer-operator and salesperson must pass written examination ($25.00 fee). If applicant is a dealer in new vehicles with factory warranties, a copy of service agreement with manufacturer or distributor is required. The dealer sales office must be inspected by a DMV investi-gator prior to issuance. Each dealer is assigned a permanent dealer code with up to five digits. Licenses are staggered, fees are prorated, each plate must be insured, and all licenses expire on the last day of the designated month. Preprinted re-newal forms are mailed to licensed dealers for renewal purposes. Dealer License Fee: $100.00 upon application and renewal of dealer li-cense $10.00 for each salesman license Additional fee for Recovery Fund New dealership must pay $250.00 for three consecutive years without a bond or fund claim being filed. Annual fee: $100.00 $10.00 renewal for each salesperson. Multi-year licensing is optional Fee: $200.00 for dealership $20.00 each sales person Washington All dealers must be licensed. Washington has three dealer classifications: Motor Vehicle, Mobile Home/Travel Trailer, and Miscellaneous dealers. Dealer License Fee: $500.00 original dealer licenses $250.00 renewal (staggered annual renewal) West Virginia All dealers must be licensed. If an individual sells five or more vehicles in a calendar year, a license is required. Dealer licenses are renewed annually on June 30. New Car Dealers must provide at time of application, proof of established place of business, display area, franchise agreement, and room for repairs. An on-site inspection of dealer facilities is conducted prior to the issuance of a dealer license. Periodic inspections of dealer facilities are also conducted. New Car Dealer License Fee: $100.00 upon application and renewal. Used Car Dealer requirements are the same as for new car dealers, with the exception of a franchise agreement where posted hours of operation and outside display area are required. Used Car Dealer Fee: $100.00 upon application and renewal. Wisconsin Manufacturers, distributors, dealers, and mobile home dealers are required to obtain business license (not required for trailer dealers). Individuals buying and selling more than five vehicles are required to obtain a dealer’s license. Issued for two-year period based on date of issuance. Dealer License Fee: $40.00-$100.00 depending on type of vehicle sold. Dealers are required to file $25,000 bond. Trailer plates issued to trailer dealers for the transportation of trailers exceeding 3,000 lbs. Wyoming An Application for a Wyoming Dealer License must be submitted each year. All applications are investigated prior to license issuance. Dealer License Fee: $25.00 or $100.00 upon application and annual renewal (fee depends on number of retail sales) Watercraft dealers require only a Sales/Use Tax license, which is issued by the Wyoming Department of Revenue. Ten Commandments for Success in the Car Business 1. Always inspect a car thoroughly. Do not buy project cars. Do not buy TMU ("True Mileage Unknown"), frame damaged, salvaged, cars that smoke, cars with branded titles, police cars, and such. 2. Know your local market. The Golden Rule of the car business is "You lock in your profit when you buy the car, not when you sell it." A second Gold Rule might be “You secure your financial future by creating serviceable notes on cheap used cars.” The only way to know the value of a car is to know your local market! Read the newspaper, attend local auctions, visit web sites, visit dealers, call other wholesalers or used car managers. Get out on the street and start learning. 3. Remember that a car is worth what you can get. A pricing guide is only a guide—not the bible. A car is worth only what someone locally will pay for it. Some cars are routinely worth more than book and some less than book. You will only know by learning your local market. 4. Stand behind your word. Your word is everything in the car business. Many deals are closed over the phone or with a handshake. 5. Build a network of buyers and sellers. If you are retailing, you need customers to come and buy from you again and to tell their friends. If you are wholesaling, you need as many avenues as possible to redistribute cars. Build your number of contacts every opportunity you get. 6. Follow strict inventory turnover rules. As inventory ages, your profits will drop. In retailing, do not hold inventory over 60 days for any reason (unless you own a note lot selling cars for under $5995). Some dealers will work on a 90 turnover; I think that’s too long. In wholesaling, do not hold a car for over seven days. You can develop your own rules; this is just a generalization. 7. Do not buy a car if you do not know its value. If you break this rule, quit the business. Make decisions based on logic and knowledge of your local market. 8. Trust but verify. People will try to take advantage of you. 9. Know the key to your business. When retailing, location is the key. When wholesaling, visiting dealers daily is key to your success. When auto brokering, marketing is the key. 10. Specialize, specialize, specialize at first. Start with just one car. Do everything yourself. Keep it a one-person operation as long as possible. Ten Reasons Why Car Dealerships Need Newsletters Check out the top 10 reasons car dealerships include a newsletter as part of their overall automotive promotions, according to The Newsletter Company: 1. Newsletters reinforce loyalty. Dealerships have a unique opportunity to build customer relationships that last a lifetime. Satisfied customers service their cars with dealers they know and trust and they are loyal to that dealer when they purchase their next car. 2. Newsletters sell cars. A newsletter offers you a unique opportunity to let your customers know about the newest makes and models your dealership offers, all in the comfort of their home. Newsletters are seen as informative and have a higher "trust" rating than advertising. 3. Newsletters generate high ROI (return on investment). Dealerships that send custom newsletters generate astronomical ROI figures that range from ten to 50 times their investment from service coupons alone. 4. Newsletters are prospecting tools. We’ll compile a mailing list to directly target your prospects. We can also access names and addresses of owners driving competing makes and models. Many of the auto dealers who’ve sent our custom newsletters have prospected successfully for many years. 5. Newsletters separate you from the competition. When your customers receive your newsletter, they’ll instantly recognize your dealership as a cut above the rest. That’s because most dealers don’t include a customer newsletter in their marketing budget, believing there simply aren’t the resources to produce a high-quality customer newsletter. With the help of The Newsletter Company, your customers will receive a newsletter the competition can only dream of. 6. Newsletters establish regular communication. You and your customers both benefit from regular communication. Your newsletter tells your customers what’s new with the brands you sell and your latest dealership news. Use the newsletter to offer new products and services, note changes in hours or staff, or invite customers to a clinic or special event. 7. A well-produced newsletter establishes a bond with customers. What other auto advertising medium gives your dealership the opportunity to promote your products and services and provide a forum to communicate one-to-one with customers? A newsletter is seen as informative communication—not an advertisement that gets tuned out. 8. Newsletters are flexible. Your newsletter offers you the opportunity to spotlight key employees and even highlight new services to keep your customers coming back. Use it to generate immediate revenue by offering attention-getting coupons. You choose what to feature. And don’t hesitate to ask for guidance. After 22 years of creating successful automotive newsletters, we can give you plenty of creative ideas. 9. Newsletters are the best value for your marketing and advertising dollars. Newsletters focus on customer retention, and every dealer knows it’s easier and less expensive to keep a customer than to acquire a customer. 10. Newsletters provide maximum benefits for minimal costs. Newsletters are referred to as a dealership’s "workhorse." Review the list, because you can’t get benefits like these from any other form of auto advertising, including your service reminder program. Get your dealership’s newsletter going and leave your competition in the dust! Detailing Six Things It Takes to Start a Detail Business 1. Money Money is the most important ingredient for starting your detail business. Money is needed to make your initial investment and pay rent or for a trailer (if mobile), salaries, advertising, and other associated start-up costs, such as licenses and permits. Some experts say you should have enough money on hand to cover three to six months of operating expenses. This means you should have enough money to pay yourself and expenses for six months after you launch your business, should business start out slow—and they usually do. What do you do if after launching your business you have no customers? How will you weather the dry spells of the new launch? The answer is simple: money. And do not forget about an advertising budget. What if the ads fall on deaf ears or you’ve chosen the wrong type of or placement for advertising? You need enough money to see yourself through the first three to six months of operation. Not enough capital is the reason for almost all business failures. 2. Aggressive Approach Be aggressive in your approach to marketing your new detail business. You’ll need to use guerrilla tactics in the first few months. Get the word out any way you can. But you need to know your best target market—why they would use your service, where they are, how to reach them and what to say. Never miss an opportunity to leave your business card anywhere. When dining out, leave one on your table at the restaurant and a few more at the other tables. Send a press release to every newspaper and automotive specialty magazine covering your business area. Pass out cards at body shops and auto repair shops, especially those that cater to luxury cars like Mercedes-Benz and BMW and Porsche. You need sufficient capital to cover three to six months of operating expenses, especially marketing and advertising. The aggressive approach should also extend to your employees. They must be as enthusiastic as you are. After all, they will benefit should your business be a success. When it comes to marketing your new business, there is almost no wrong way to get the word out. Just be aggressive, but pointed at your target market. For example, detail service buyers are not coupon clippers, so stay out of value packs. 3. Knowledge It is important to know the detail business, inside and out, not just how to detail. For example, there are laws that can affect your business—EPA laws, OSHA, etc. What are the current market trends in the detail business? Are there any problems with supply or demand for the detail service in your area? If so, you need to consider this in your business plan. Basically, you need to know the detail business better than your competition. You’ll also need to know your competitors and keep abreast of everything they do. Are they raising or lowering prices? Know your customers. What services do they buy? (Or, just as important, what don’t they buy?) Where do they come from? How did they find out about you? 4. Education Before you start your business, do your homework. What supplies, equipment, chemicals, and employees do you need to begin or successfully operate your detail business? It’s equally important to know what you don’t need. Don’t waste money on something that is unnecessary. Do you really need two extractors when one is sufficient? Are four employees necessary or will just three suffice? Are you better off buying small or buying in bulk? Here you may have to speak with other detailers or seek out advice from an expert. In the short term and in the long run, educating yourself on the business you are starting will save you money and may mean the difference between success and failure. Work to know what you don’t know. 5. Integrity You should constantly demonstrate integrity with your customers, suppliers, and advertisers. Your customers should be able to count on you to always do the right thing and deal with them fairly. Honor your guarantees or your return policy. It will pay off for you in the long run to have truly satisfied customers. This is also true for your suppliers also. Pay your bills on time and make a good name for yourself. Your suppliers will become valuable assets to your detail business. You may need them as a reference on a future loan or for dealing with another supplier. Your advertisers should be able to count on you to give them your ads on time and with the correct payment. Again, you may need them someday to help announce a new product line or help in suggesting an ad campaign. Most importantly, never let yourself down. Follow the rules. Get the required permits or licenses you need. Don’t think you’re saving money by not having them; the penalties are always higher than the original fee. And, of course, never let the idea of earning a quick buck cloud your judgment. You’ll know what is right and what is wrong because you’ll feel it. 6. Toughness Be tough. Take the mental approach that you will succeed no matter what obstacle is blocking your path and no matter how difficult it seems. You’ll be spending long hard hours in your detail business—and if you aren’t, something may be wrong. You need to stay tough and fight through the hard times. There will be hurdles to jump over and gaps to build bridges across. Only the tough survive. Sometimes you’ll feel like taking the day off. Don’t. There may be others who can’t wait to see you fail. Don’t give them the satisfaction. Hang in there. Others may also be ready to throw in the towel and you’ll need to be tough for them. Starting a detail business is a huge task. There is so much to learn and so much to do, and much of what happens to you won’t be known until it happens. But with careful preparation and the right mindset, you can increase your chances of succeeding in the long run. Finding Customers for Your Detail Business White-collar professionals with high profiles—including physicians, lawyers, and corporate executives Sports car owners, to whom appearance is everything—including under the hood People who lease cars (since a professional detailing can reduce the chance of incurring ghastly end-of-lease wear-and-tear charges) Show car owners, classic car owners, and car buffs who show off their vehicles for love ... and money New and used vehicle dealers (the pace can be grueling and the work doesn’t always pay top dollar, but there’s usually a lot of work for a new detailer) People who are selling their own cars in the local classifieds (currently a huge untapped market) RV dealerships and their customers (still another gold mine of possibilities) Automotive centers like auto malls Car washes (usually as an express detailing operation) Auto repair shops, including collision shops) Limousine companies Hotels with concierge service that might want to offer detailing as a premium service to guests Gas stations and garages that offer complete automotive services Basic Detailing Services hand wash (with particular attention to tree sap, bug remains, bird droppings, and rail dust—iron particles that settle on the paint during transport by train, from contact between the wheels and the tracks) hand dry, usually with chamois or an other soft, lint-free cloth claying to remove all surface contaminants from the paint after the vehicle is washed hand application of wax or sealant application of wax using an orbital buffer window and exterior mirror cleaning trim and tire dressing application and polishing wheel/rim waxing floor and seat vacuuming (including vacuuming with a crevice tool for deep penetration) floor and seat shampooing cleaning and dressing of dashboard, door panels, and center console vent, kick panel, pedal, doorjamb, and ashtray cleaning floor mat vacuuming and steam cleaning headliner cleaning leather seat and trim cleaning and conditioning vinyl seat cleaning and dressing window and mirror cleaning and polishing Add-on Detailing Services These services can really beef up your bottom line. The services not only will maximize the amount you can earn on every vehicle you detail, but also can be very lucrative profit centers in themselves. However, some of these services require hands-on training before you go to town on someone’s vehicle so you don’t inadvertently cause damage. Among these popular add-ons are: custom paint touch-up, chip and scratch repair black trim restoration carpet and upholstery dyeing vinyl and leather repair windshield repair and tinting paintless dent repair overspray or cement removal Tips for Hiring and Managing a Pit Crew 1. It’s usually better not to hire family or friends. If they don’t work out, you’ll have to fire them, and that could create a very uncomfortable situation around the dinner table. The sole exception might be your spouse, who’s supposed to love you no matter what. Just don’t let your marriage suffer as a result of your business. 2. There are two types of employees you’re most likely to need as a new detailer. A detailing technician. This person will do everything from emptying ashtrays to putting away new shipments of wax and tire dressing. An assistant manager. You need to hire one only if your operation is so successful right away and you need to hire someone more experience to help with the flotilla of vehicles you detail. 3. When prospecting for employees at high school career events, bring informational brochures about your business, a business card with your web site address, and some advertising specialty items, like pencils imprinted with your business name. Even if the student doesn’t come to you for a job, that pencil may get around and spark someone else’s interest in your business. How to Start an Automotive Detailing Business Power Tools and Accessories Needed to Run a Detail Shop detailing trailer air compressor random orbital polisher variable-speed rotary buffer/polisher pressure washer 125-gallon water tank five-gallon stainless-steel tank sprayer ozone odor remover odor fogger system carpet extractor wet-dry vacuum vapor steam cleaner interior dryer creeper temperature gauge digital electronic paint-thickness gauge magnifier loupe towels towel wringer generator portable fluorescent lighting portable space heater portable pop-up tent wastewater reclamation system miscellaneous detailing tools miscellaneous detailing products magnetic signage washer, dryer Best Locations for Setting up an Automotive Detail Shop Your shop should be located in a commercial area that’s easily accessible by highway or byway, preferable one that has plenty of traffic because that gives you added visibility. Another desirable location is an auto mall, both because the new- and used-car dealers that anchor such malls are often frequent consumers of detailing work themselves and because there will be a steady stream of car shoppers in the area who could be prospective detailing customers. Likewise, a location in a mini-mall that has noncompeting automotive businesses, like tire stores, brake shops, vehicle alarm installers, and so on, can bring you great visibility and increased sales. Top Six Considerations When Obtaining Warehouse Space If you’re interested in a start-up with the lowest possible costs, then mobile is the way to go because no facility is necessary Your first decision concerning your detailing facility should be whether you’re up to the challenge of renovating an existing building or whether you’d prefer to move into a garage or gas station that’s either defunct or for sale. Leasing can be a good way to go if you don’t want the hassles of qualifying for a mortgage. But remember that a lease is a virtually unbreakable contract, no matter what happens to your business. When negotiating a lease for a lot of money, don’t go it alone. Hire an attorney to look over the terms so you don’t get burned. Among the things you’ll want to negotiate are which additions or renovations are needed before the property is acceptable and the timetable for getting them done. A bare concrete floor is acceptable for your waiting area if it’s unstained, but a durable floor covering like indoor-outdoor carpeting or tile is a good alternative. Be sure to select flooring in a neutral tone that will conceal dirt and blend with the wall color. You’ll need a large, professional-looking sign that announces to the world that you’re in business. It should give the name of your detailing shop in letters that are large enough to be seen from the road. Car Washes Types of Car Washes and Their Niches full-service—high start-up costs, intensive time needed, high profit potential, mechanical and general business knowledge a must. exterior-conveyor—high start-up costs (somewhat lower labor cost than full-service, intensive time needed (slightly lower than full-service), high profit potential, mechanical and general business knowledge required in-bay automatic—medium start-up costs, medium time needed (significantly less than a full-service or exterior-conveyor car wash), medium profit potential, mechanical knowledge and some basic knowledge of business practices required self-service—low to medium start-up costs, low to medium time needed, low to medium profit potential, mechanical knowledge and some basic knowledge of business practices required. Start Your Own Car Wash Business (Entrepreneur Recommended Car Wash Equipment Checklist Wash-Related Equipment power-wash units vacuums automatic dryers (conveyor systems only) water heater water reclamation/recycling water softener Retail/Lot Equipment shaded vacuum area floor heater vending machines changing machines signage security system landscaping trash receptacles bathroom fixtures cash register lighting (exterior) inventory Market Research Checklist for a Car Wash Population within two miles of car wash site? Population within three miles of car wash site? Population within five miles of car wash site? Traffic flow: How many cars pass by your proposed site on an average day? Traffic patterns: What is the speed limit on the adjacent road? Housing: Composed mainly of single-family homes or apartment buildings? Street location: Corner or midblock? Competition: Number of car washes within three miles of your site? Amenities: Number of convenience stores or other businesses in the immediate area? Labor pool: Adequate source of labor in your neighborhood? Average household income within three miles of your site? Car Wash Associations Car Wash Operators of New Jersey (CWONJ) P.O. Box 48 Maywood, NJ 07607 Phone: N/A www.cwonj.com Chicagoland Carwash Association P.O. Box 298 Lockport, IL 60411 Phone: (708) 301-3568 administrator@chicagocarwash.org www.chicagocarwash.org Connecticut Carwash Association P.O. Box 230 Rexford, NY 12148 Phone: (800) 287-6604 (toll-free) www.wewashctcars.com Greater St. Louis Professional Car Wash Association 1700 Ford Lane St. Charles, MO 63303 Phone: (314) 949-5000 Fax: (314) 949-5008 Heartland Carwash Association P.O. Box 932 Des Moines, IA 50304 Phone: (515) 965-3190, (888) 873-9735 (toll-free) Fax: (515) 965-3191 www.heartlandcarwash.org info@heartlandcarwash.org International Carwash Association 401 N. Michigan Avenue Chicago, IL 60611-4267 Phone: (312) 321-5199 Fax: (312) 245-1085 ica@sba.com www.carwash.org Mid-Atlantic Carwash Association 780 Ritchie Highway, Suite 28-S Severna Park, MD 21146 Phone: (410) 647-5780, (888) 378-9209 (toll-free) Fax: (410) 544-4640 info@mcacarwash.org www.mcacarwash.org Midwest Carwash Association 3225 W. St. Joseph Street Lansing, MI 48917 Phone: (517) 327-9207, (800) 546-9222 (toll-free) Fax: (517) 321-0495 www.midwestcarwash.com New England Carwash Association The Association Advantage 591 North Avenue, Suite 3-2 Wakefield, MA 01880 Phone: (781) 245-7400 Fax: (781) 245-6487 www.newenglandcarwash.org New York State Car Wash Association P.O. Box 230 Rexford, NY 12148 Phone/fax: (518) 877-6779 www.nyscwa.com Ohio Car Wash Association P.O. Box 9113 Canton, OH 44711 Phone: (330) 492-8761 www.ohiocarwash.com Southeastern Carwash Association 184 Business Park Drive, Suite 200-S Virginia Beach, VA 23462 Phone: (800) 834-9706 (toll-free) Fax: (757) 473-9897 secwa@secwa.org www.secwa.org Southwest Car Wash Association 4600 Spicewood Springs Road, Suite 103 Austin, TX 78731 Phone: (512) 349-9023, (800) 440-0644 (toll-free) Fax: (512) 343-1530 info@swcarwash.org www.swcarwash.org Western Carwash Association 10535 Paramount Boulevard, Suite 100 Downey, CA 90241 Phone: (562) 928-6928 Fax: (562) 928-9557 wcarwa@aol.com www.wcwa.org Repair Shops Required Components of a Repair Estimate 1. The shop’s name, address, and telephone number 2. The customer’s name, address, and telephone number 3. Date and time of estimate 4. Year, make, model, odometer reading, and license tag number of vehicle 5. Proposed work completion date 6. Description of customer’s problem or request 7. Labor charges based on a flat rate, hourly rate, or both 8. Estimated cost and charges for repair 9. Charges for shop supplies or for hazardous or other waste removal 10. Charges for making an estimate and the basis for the charge 11. The customer’s intended method of payment 12. Name and telephone number of any alternate person the customer would allow to authorize repairs 13. Terms of the parts and service guarantee 14. Notation if customer wants replaced parts returned 15. Charge for daily storage (Shops notify customers after repair work is completed and customers then have three working days to pick up the vehicle before storage fees may be charged.) Six Requirements of a Repair Invoice The invoice must include: 1. Date and odometer reading 2. Description of work 3. Labor, parts, and other merchandise costs 4. Nature of parts (new, used, rebuilt, etc.) 5. Guarantee, if any 6. Registration number from the certificate issued by the Department identifying your shop Three Legal Requirements for Repair Shops 1. Post in a conspicuous location in the customer service area the registration certificate and a sign advising consumers of their rights under the Motor Vehicle Repair Act and giving the Department’s toll-free telephone number for assistance or information. 2. Include in the sign a statement advising consumers they are entitled to the return or inspection of replaced parts, if they request it at the time the work order is placed. 3. Include the registration number in any advertisements, announcements, or listing relating to motor vehicle repair in any newspaper, magazine, or directory. Automotive Resources Automobile Producers in U.S. Acura www.acura.com Alpha Armouring Germany www.alpha-armouring.com Alpine Armoring www.alpineco.com Alfa Romeo www.alfaromeo.com Aston Martin www.astonmartin.com Audi www.audiusa.com Autech www.autech.co.jp Avto-Lada www.lada.ru AvtoVAZ www.vaz.ru BMW www.bmwusa.com Bristol Cars www.bristolcars.co.uk Brooke Cars www.brookecars.co.uk Bufori www.bufori.com Bugatti www.bugatti-cars.de Buick www.buick.com Cadillac www.cadillac.com Callaway www.callawaycars.com Caterham www.caterham.co.uk Chevrolet www.chevrolet.com Chrysler www.chrysler.com Citroën www.citroen.com Daewoo Motors www.daewoous.com Daihatsu www.daihatsu.com Dodge www.dodge.com FBS Cars Online www.fbs-eng.co.uk Ferrari www.ferrariworld.com Fiat www.fiat.com Ford www.fordvehicles.com General Motors www.gm.com Ginetta Cars www.ginettacars.com GMC www.gmc.com Grinnall Cars www.grinnallcars.com Invicta Car Company www.invictacar.com Holden www.holden.com.au Honda www.honda.com Hummer www.hummer.com Hyundai www.hyundaiusa.com Infiniti www.infiniti.com Isuzu www.isuzu.com Jaguar www.jaguarusa.com Jeep www.jeep.com Kia Motors www.kia.com Lamborghini www.lamborghini.com Lancia www.lancia.com Land Rover www.landroverusa.com LDV www.ldv.co.uk Lexus www.lexus.com Lincoln www.lincolnvehicles.com Lola Cars International www.lola-group.com Lotus www.lotuscars.com Mahindra www.mahindraworld.com Maserati www.maserati.com Mazda www.mazdausa.com McLaren www.mclarencars.com Mercedes-Benz www.mbusa.com Mercury www.mercuryvehicles.com Merlin Motors www.merlinmotorsusa.com MG www3.mg-rover.com Mini www.miniusa.com Mitsubish i www.mitsubishicars.com Morgan www.morgan-motor.co.uk Noble www.noblecars.com Nissan www.nissanusa.com Oldsmobile www.oldsmobile.com Opel www.opel.com Packard www.packardmotorcar.com Panoz www.panozauto.com Peugeot www.peugeot.com Pontiac www.pontiac.com Porsche www.porsche.com/usa Proton www.proton.com Renault www.renault.com Rolls-Royce & Bentley www.rollsroycemotorcars.com www.bentleymotors.com Rover www3.mg-rover.com Saab www.saabusa.com Saturn www.saturn.com Scion www.scion.com Seat www.seat.com Shelby www.shelbyamerican.com SICAR-M www.sicar-m.com Skoda www.skoda-auto.com Smart www.usa.smart.com Subaru www.subaru.com Suzuki www.suzukiauto.com Tiger Racing www.tigerracing.com Toyota www.toyota.com Trasco www.trasco-cars.com TVR www.tvr-eng.co.uk Unique Motor Company www.uniquemotorcompany.co.uk Vauxhall vauxhall.co.uk Volkswagen www.vw.com Volvo www.volvocars.us Westfield www.westfield-sportscars.co.uk Automotive Car, Truck, and Motorcycle Technical Trade Training Schools Apex Technical School 635 Avenue of the Americas New York, NY (212) 645-3300 www.apexschool.com ASE test prep.com Automotion Inc. 145 Golfwood Drive West Carrollton, OH 45449 (800) 437-7483 (toll-free) www.asetestprep.com Aspire 925 Lincoln Highway Morrisville, PA (800) 247-1099 (toll-free) www.aspireinc.com Atri 1322 Rankin Street Troy, MI (866) 287-4797 (toll-free) www.atritech.com Automotive Technology Skyline College 3300 College Drive San Bruno, CA (650) 738-4440 www.skylinecollege.com Automotive Video Inc. 6280 Arc Way Ft. Myers, FL 33912 (800) 718-7246 (toll-free) www.auto-video.com Baran Institute of Technology 611 Day Hill Road Windsor, CT 06095-1719 (800) 243-4242 (toll-free) www.baraninstitute.com automotive, auto body, and diesel technical training Council of Advanced Automotive Trainers (CAAT) 632 Gamble Drive Lisle, IL 60532 (800) 922-2834 (toll-free) www.caat.org Denver Automotive & Diesel College (DADC) 460 South Lipan Street Denver, CO 80223 (800) 347-3232 (toll-free), (866) 647-DADC (3232) (toll-free) www.dadc.com Diesel Institute of America 4710 East 7th Avenue Tampa, FL 33605-4702 (800) 572-4327 (toll-free) www.dieselschool.com Engine City Technical Institute 2365 Route 22 West P.O. Box 3116 Union, NJ 07083-1916 (800) 305-2487 (toll-free) www.enginecitytech.com automotive Diesel technical training I-CAR Inter-Industry Conference on Auto Collision Repair 3701 Algonquin Road, Suite 400 Rolling Meadows, IL 60008 (800) 422-7872 (toll-free) www.i-car.com Lincoln Tech School Institute 200 Executive Drive West Orange, NJ 07052 (800) 806-1921 (toll-free) www.lincolntech.com Louisiana Technical College 900 Youngs Road Morgan City, LA 70381 (985) 380-2436 www.youngmemorial.com automotive technology M&M Training and Development 1130 Route 22 West Mountainside, NJ 07092 (888) 780-8724 (toll-free) www.mmtraining.com paintless dent removal training and tools Masters School of Autobody Management 124 East Carrillo Street Santa Barbara, CA 93101 (805) 564-3436 www.masters-school.com Mechanics College 3801 Campus Drive Waco, TX. 76705 (800) 792-8784 (toll-free) www.mechanicscollege.com Melior Inc. One Perimeter Park South, Suite 450 N P.O. Box 381282 Birmingham, AL 35243-0435 (877) 224-0435 (toll-free) www.meliortraining.com MotorCycle Mechanics Institute 2844 W. Deer Valley Road Phoenix, AZ 85027 (623) 869-9644 motorcycle career training program Motorsports Employment 2011 West Chapman Avenue Orange, CA 92868 (714) 991-9500 www.motorsportsemployment.com employment site and education NASCAR Technical Institute 220 Byers Creek Road Mooresville, NC 28115 (800) 859-1202 (toll-free) www.ntieducation.com Nashville Auto-Diesel College 1524 Gallatin Road Nashville, TN 37206 (800) 228-NADC (toll-free) www.nadcedu.com Northwest Kansas Technical College 1209 Harrison Goodland, KS 67735 (785) 890-3641, (800) 316-4127 (toll-free) www.nwktc.org Ohio Technical College 1374 East 51st Street Cleveland, OH 44103 (800) 322-7000 (toll-free) www.ohiotechnicalcollege.com Pittsburgh Diesel Institute Trust West Hills Shopping Center 910 Beaver Grade Road Moon Township, PA 15108 (800) 833-3454 (toll-free) www.pittsburghdiesel.com Tools For Education, Inc. 140 N. Ridge Avenue Ambler, PA 19002 (888) 404-8320 (toll-free) www.toolsforeducation.com Universal Technical Institute (UTI) 10851 N. Black Canyon Highway, Suite 600 Phoenix, AZ 85209 (800) 859-7249 (toll-free) www.uticorp.com Veejer Enterprises 3701 Lariat Lane Garland, TX 75042-5419 (972) 276-9642 www.veejer.com Vincennes University 1002 N. 1st Street Vincennes, IN 47591 (812) 888-4313 www.vinu.edu training, collision repair, auto repair, diesel truck/heavy equipment repair, John Deere Ag Tech Program WyoTech 4373 North 3rd Street Laramie, WY 82072 (800) 521-7158 (toll-free) www.wyotech.com York Technical Institute 1405 Williams Road York, PA 17402 (800) 227-9675 (toll-free) www.yti.edu Motorcycle Mechanic Technology program USAutoJobs.com 24 Ridge Street Middletown, NY 10940 (845) 344-1917, (845) 551-7613 www.usautojobs.com Automotive Franchise Opportunities AAMCO Transmissions, Inc. One Presidential Boulevard Bala Cynwyd, PA 19004 (800) 223-8887 (toll-free) www.aamco.com Aero Colours 6971 Washington Avenue South, Suite 102 Minneapolis, MN 55437 (800) 696-2376 (toll-free) www.aerocolours.com All Night Auto 3872 Rochester Road Troy, MI 48083 (248) 619-9020 www.allnightauto.net Alta Mere Complete Auto Imaging 4444 West 147th Street Midlothian, IL 60445 (800) 377-9247 (toll-free) www.altamere.com ATL International, Inc. 8334 Veterans Highway Millersville, MD 21108 (800) 935-8863 (toll-free) www.alltuneandlube.com Big O Tires 12650 E. Briarwood Avenue, Suite 2D Englewood, CO 80112 (800) 321-2446 (toll-free) www.bigotires.com Car-X Auto Service 8750 W. Bryn Mawr, Suite 410 Chicago, IL 60631 (800) 359-2359 (toll-free) www.carx.com Colors On Parade 642 Century Circle Conway, SC 29526 (800) 929-3363 (toll-free) www.colorsfranchise.com Cornwell Quality Tools 667 Seville Road Wadsworth, OH 44281 (800) 321-8356 (toll-free) www.cornwelltools.com Creative Colors International® P.O. Box 552 Oak Forest, IL 60452 (800) 933-2656 (toll-free) www.creativecolorsintl.com Fas-Break, Inc. 1635 W. University Drive, Suite #127 Tempe, AZ 85281 (800) 777-5169 (toll-free) www.fasbreak.com Fibrenew International P.O. Box 33, Site 16, RR8 Calgary, AB T2J 2T9 Canada (800) 345-2951 (toll-free) www.fibrenew.com Glass Doctor Corp. 1020 N. University Parks Drive Waco, TX 76707 (800) 280-9959 (toll-free) www.glassdr.com Glass Mechanix 4555 N.W. 103rd Avenue Fort Lauderdale, FL 33351 (800) 826-8523 (toll-free) www.glassmechanix.com Jiffy Lube International P.O. Box 2967 Houston, TX 77252 (713) 546-4100 www.jiffylube.com Lee Myles Associates Corp. 140 Route 17, Suite 200 Paramus, NJ 07652 (800) 533-6953 (toll-free) www.leemyles.com LINE-X 2525 "A" Birch Street Santa Ana, CA 92707 (800) 831-3232 (toll-free) www.linexcorp.com MAACO Enterprises, Inc. 381 Brooks Road King of Prussia, PA 19406 (800) 296-2226 (toll-free) www.franchise.maaco.com Mac Tools 4635 Hilton Corporate Drive Columbus, OH 43232 (800) MAC-TOOLS (622-8665) (toll-free) www.mactools.com Matco Tools 4403 Allen Road Stow, OH 44224 (800) 433-7098 (toll-free) www.matcotools.com Meineke Discount Muffler Shops 128 S. Tryon Street, Suite 900 Charlotte, NC 28202 (800) MEINEKE (634-6353) (toll-free) www.meineke.com Mighty Distributing 650 Engineering Drive Norcross, GA 30092 (800) 829-3900 (toll-free) www.mightyautoparts.com Milex Tune-Up Brakes & Air Conditioning 4444 West 147th Street Midlothian, IL 60445 (800) 377-9247 (toll-free) www.milextuneupbrake.com Mr. Transmission 4444 West 147th Stree t Midlothian, IL 60445 (800) 377-9247 (toll-free) www.mrtransmission.com National Tools 2003 Bison Court Grand Junction, CO (800) 944-7005 (toll-free) www.nationaltools.com Novus Glass 10425 Hampshire Avenue Minneapolis, MN 55438 (800) 328-1117 (toll-free) www.novusglass.com Power Window Repair Express 1801 W. Atlantic Avenue, Suite B3 Delray Beach, FL 33444 (877) PWR-Express (797-3977) (toll-free) www.pwrexpress.com Rent-A-Wreck 10324 South Dolfield Road Owings Mills, MD 21117 (410) 581-5755 www.rent-a-wreck.com Snap-on Tools Co. 2801 80th Street Kenosha, WI 53141-1410 (877) 4-SNAPON (476-2766) (toll-free) www.snapon.com Supply Master USA® 6c White Deer Plaza Sparta, NJ 07871 (800) 582-1947 (toll-free) www.supplymasterusa.com U-Save Auto Rental 4780 I-55 N, Suite 300 Jackson, MS 39211 (800) 438-2000 (toll-free) www.usave.net Valvoline Instant Oil Change Franchising, Inc. 3499 Blazer Parkway Lexington, KY 40509 (800) 622-6846 (toll-free) www.viocfranchise.com Ziebart International Corp. 1290 East Maple Road Troy, MI 48007 (800) 877-1312 (toll-free) www.ziebart.com Automotive Industry Publications Automotive Journal P.O. Box 455 Palmyra, NJ 08065 (215) 338-8492 coverage: Eastern Pennsylvania, New Jersey, and Northern Delaware Automotive News 1400 Woodbridge Avenue Detroit, MI 48207 (313) 446-6000 www.autonews.com Automotive Week Publishing Co., Inc. P.O. Box 3495 Wayne, NJ 07474-3495 (201) 694-7792 www.auto-week.com Automotive Undercar Trade Organization 1006 Glenbriar Court St. Charles, IL 60174 (800) 582-1359 (toll-free) www.undercar.org Brake & Front End Babcock 3550 Embassy Parkway Akron, OH 44333 (330) 670-1234 www.brakeandfrontend.com Modern Tire Dealer 341 White Pond Drive Akron, OH 44320 (330) 867-4401 www.moderntiredealer.com Motor 645 Stewart Avenue Garden City, NY 11530 www.motor.com Motor Age 2000 Clearwater Drive Oak Brook, IL 60523 www.motorage.com Professional Tool & Equipment News 1233 Janesville Avenue Ft. Atkinson, WI 53538 (800) 547-7377 (toll-free) www.pten.com Transmission Digest MD Publications P.O. Box 2210 Springfield, MO 65801-2210 (800) 274-7890 (toll-free) www.transmissiondigest.com Undercar Digest MD Publications P.O. Box 2210 Springfield, MO 65801-2210 (800) 274-7890 (toll-free) www.mdpublications.com/ud Underhood Service Babcock 3550 Embassy Parkway Akron, OH 44333 (330) 670-1234 www.underhoodservice.com Source: AutoTechs.info, “Automotive Technician’s Resource Directory,” www.autotechs.info/publications.htm Top 75 Motor Vehicle and Car Body Manufacturers 1. General Motors Corp. 3044 W. Grand Boulevard Detroit, MI 48202 (313) 556-5000 2. Ford Motor Company P.O. Box 1899 Dearborn, MI 48121 (313) 322-3000 3. Chrysler Corp. 1000 Chrysler Drive Highland Park, MI 48326 (810) 576-5741 4. United Technologies Corp. United Tech Building Hartford, CT 06101 (203) 728-7000 5. Ford Body and Assembly Operation 17000 Oakwood Dearborn, MI 48121 (313) 322-7715 6. Dana Corp. P.O. Box 1000 Toledo, OH 43697 (419) 535-4500 7. Navistar Intern Transportation 455 N. Cityfront Plaza Drive Chicago, IL 60611 (312) 836-2000 8. Freightliner Corp. 4747 N. Channel Portland, OR 97217 (503) 735-8000 9. PACCAR Inc. P.O. Box 1518 Bellevue, WA 98004 (206) 455-7400 10. Delco Chassis Division P.O. Box 1042 Dayton, OH 45401 (513) 455-9204 11. Nissan North America Inc. 990 West 190 Street Torrance, CA 90502 (310) 719-8000 12. Saturn Corp. P.O. Box 7025 Troy, MI 48007 (313) 524-5000 13. Honda 24000 Honda Parkway Marysville, OH 43040 (937) 642-5000 14. New United Motor Manufacturing Inc. 45500 Fremont Fremont, CA 94538 (510) 498-5500 15. Nissan Motor Manufacturing Corp. 983 Nissan Drive Smyrna, TN 37167 (615) 459-1400 16. Mitsubishi Motor Manufacturing 100 N. Mitsubishi Normal, IL 61761 (309) 888-8000 17. Armco Inc. 1 Oxford Centre Pittsburgh, PA 15219 (412) 255-9800 18. Hyundai Motor America P.O. Box 20850 Fountain Valley, CA 92728 (714) 965-3000 19. MascoTech Inc. 21001 Van Born Road Taylor, MI 48180 (313) 274-7405 20. Renco Corp. 30 Rockefeller Plaza New York, NY 10112 (212) 541-6000 21. Volvo GM Heavy Truck Corp. P.O. Box 26115 Greensboro, NC 27402 (910) 279-2000 22. Toyota Motor Manufacturing 1001 Cherry Blossom Way Georgetown, KY 40324 (502) 868-2000 23. Federal Signal Corp. 1415 W. 22nd Street Oak Brook, IL 60521 (708) 954-2000 24. AutoAlliance International Inc. 1 International Drive Flat Rock, MI 48134 (313) 782-7800 25. Blue Bird Corp. P.O. Box 7839 Macon, GA 31210 (912) 757-7100 26. Coachmen Industries Inc. P.O. Box 3300 Elkhart, IN 46515 (219) 262-0123 27. Thor Industries Inc. 419 W. Pike Street Jackson Center, OH 45334 (937) 596-6849 28. Motor Coach Industries International 1850 N. Central Avenue Phoenix, AZ 85004 (602) 207-5000 29. Peterbilt Motors Co. 1700 Woodstock Street Denton, TX 76205 (817) 591-4000 30. Subaru-Isuzu Automotive Inc. P.O. Box 5689 Lafayette, IN 47903 (317) 449-1111 31. AM General Corp. 105 N. Niles Avenue South Bend, IN 46617 (219) 237-6222 32. Blue Bird Body Corp. P.O. Box 937 Fort Valley, GA 31030 (912) 825-2021 33. Thomas Built Buses Inc. P.O. Box 2450 High Point, NC 27261 (910) 889-4871 34. Budd Co. 12141 Charlevoix Detroit, MI 48215 (313) 823-9100 35. Pierce Manufacturing Inc. P.O. Box 2017 Appleton, WI 54913 (414) 832-3000 36. Holiday Rambler LLC P.O. Box 465 Wakarusa, IN 46573 (219) 862-7211 37. Spartan Motors Inc. P.O. Box 440 Charlotte, MI 48813 (517) 543-6400 38. Emergency One Inc. P.O. Box 2710 Ocala, FL 32678 (904) 237-1122 39. Collins Industries Inc . 421 E. 30th Avenue Hutchinson, KS 67502 (316) 663-5551 40. AmTran Corp. P.O. Box 6000 Conway, AR 72033 (501) 327-7761 41. Louis Berkman Co. P.O. Box 820 Steubenville, OH 43952 (614) 283-3722 42. Andover Industries Inc. P.O. Box 459 Andover, OH 44003 (216) 293-5900 43. FWD Corp. 105 E. 12th Street Clintonville, WI 54929 (715) 823-2141 44. Eastar Company 3130 W. Monroe Street Sandusky, OH 44870 (419) 627-3200 45. Elgin Sweeper Company 1300 W. Bartlett Road Elgin, IL 60120 (708) 741-5370 46. Superior of Ohio Inc. P.O. Box 1981 Lima, OH 45802 (419) 222-1501 47. Wheeled Coach Industries Inc. P.O. Box 677339 Orlando, FL 32867 (407) 677-7777 48. Collins Bus Corp. P.O. Box 2946 Hutchinson, KS 67504 (316) 662-9000 49. Vactor Manufacturing Inc. 1621 S. Illinois Street Streator, IL 61364 (815) 672-3171 50. Athey Products Corp. P.O. Box 669 Raleigh, NC 27602 (919) 556-5171 51. Marmon Motor Co. P.O. Box 462009 Garland, TX 75046 (214) 276-5121 52. Simon Ladder Towers Inc. 64 Cocalico Creek Ephrata, PA 17522 (717) 859-1176 53. De Tomaso Industries Inc. P.O. Box 856 Red Bank, NJ 07701 (908) 842-7200 54. Eagle Coach Corp. 2045 Les Mauldin Brownsville, TX 78521 (210) 541-3111 55. Johnston Sweeper Co. 4651b Shaefer Avenue Chino, CA 91710 (909) 613-5600 56. Chubb National Foam Inc. P.O. Box 270 Exton, PA 19341 (215) 363-1400 57. Shoals Supply Inc. P.O. Box 150 Bear Creek, AL 35543 (205) 486-9459 58. TNT Auto Warehousing 3715 E. West Road Tacoma, WA 98421 (206) 922-0540 59. TPI Inc. 136 Market Street Warren, RI 02885 (401) 245-1200 60. WS Darley and Co. 2000 Anson Drive Melrose Park, IL 60160 (708) 345-8050 61. Wright-K Technology Inc. 2025 E. Genesee Street Saginaw, MI 48601 (517) 752-3103 62. Schwartz Industries Inc. 1055 Jordan Road Huntsville, AL 35811 (205) 851-1200 63. Alfa Leisure Inc. 13501 5th Street Chino, CA 91710 (909) 628-5574 64. Blitz Corp. 4525 W. 26th Street Chicago, IL 60623 (312) 762-7600 65. Classic Auto Replicars Inc. 16650 NW 27th Avenue Opa Locka, FL 33054 (305) 625-9700 66. O’Gara Hess 9113 Le Saint Drive Fairfield, OH 45014 (513) 874-2112 67. B and B Homes Corp. P.O. Box 2349 Mills, WY 82644 (307) 235-1525 68. Fontaine Modification Co. 9827 Mount Holly Charlotte, NC 28214 (704) 391-1355 69. Luverne Fire Apparatus Ltd. 1209 E. Birch Street Brandon, SD 57005 (605) 582-2300 70. Trans-Aire International P.O. Box 2178 Elkhart, IN 46515 (219) 262-3411 71. All American Racers Inc. 2334 S. Broadway Santa Ana, CA 92707 (714) 540-1771 72. Road Rescue Inc. 1133 Rankin Street St. Paul, MN 55116 (612) 699-5588 73. Tee Jay Industries Inc. 34272 Doreka Avenue Fraser, MI 48026 (810) 296-5160 74. Lodal Inc. P.O. Box 2315 Kingsford, MI 49801 (906) 779-1700 75. HME Inc. 1950 Byron Center Avenue Wyoming, MI 49509 (616) 534-1463 Research and Development Six Points of Good Product Design Although good design is almost impossible to define, common themes hold true across industry sectors and product types. A well-designed product tends to combine the following qualities: Useful It works well and functions as promised. It does what it is expected to and satisfies a minimum or appropriate level of performance. Usable It has appropriate ergonomics and user interface, considering who will be using it, how, where, and how often. Desirable It looks good! What looks good will depend upon the nature of the market, the lifestyle, culture, age, gender, education, occupation, and place of use. What looks good also depends upon other competitive and complementary products. In general, it is important for the product aesthetics to be appropriate for the market, users, and usage environment. A good test is if customers are prepared to pay a premium because they desire it. Producible It must be capable of economical volume manufacture using appropriate production methods, considering the impact on the organization of new components, assemblies, and processes. Producible products combine optimization of assembly and manufacture with modularity and platform strategies. Profitable It must result in sufficient business rewards, measured in terms of market share, gross margin, break even, turnover, or sales volume. Financial rewards may also be supplemented by other business benefits. Differentiated The benefits of good design are seen in products that are clearly differentiated. Differentiation can be gained through satisfying core user benefits in new ways, by delivering excellence in one of the product's physical attributes, or by providing leading support services around the physical goods. “What Is Good Design?,” Next |