F&I and Showroom, September 2018

BY MARV ELEAZER www fi magazine com 36 F I and Showroom MAD MARV September 2018 Comply Like Nobodys Watching I was recently asked by an attorney as we were enjoying some local cigars if I thought ethics could be taught We had been discussing an investigative sweep by the Federal Trade Commission FTC which ensnared Tates Auto a string of stores operating in Arizona and New Mexico near the Navajo Nation Reservation The resulting complaint alleges the group falsified credit applications and down payments on contracts submitted to various finance sources The FTC says Tates inflated the numbers provided by car buyers making it appear that applicants had higher monthly incomes than they actually did Were not talking about nickel and dime discrepancies wrote Lesley Fair senior attorney with the FTCs Bureau of Consumer Protection in an Aug 1 blog post According to just one of the examples in the complaint a consumer told Tates she had a fixed monthly income of about 1200 but a Tates staffer allegedly inflated it to 5200 in the paperwork What these people were allegedly doing can be described as both unethical and immoral In fact I often have a hard time separating the two though the latter is a harsh description of ones personal beliefs albeit dishonest and without character But for the sake of this article Ill just focus on the ethics or lack thereof After I pondered the attorneys question for a second or two I responded with a resounding No I dont think ethics can be taught Now like most columnists I think I have a pretty good command of sentence structure the ability to communicate with the written word and know the definition of most words especially those I choose This is why I was sure of my answer Turns out I was wrong After having discussed this with Mrs Marv she was quick to draw my attention to the difference between ethics and morality You see Ive always kind of associated the two and had never really drilled down into the differences until she challenged me We hear and read a lot about ethics in the car business especially in F I where there are many fences and barriers set up to keep us on track and out of jail When we talk about ethics in the car business were usually referring to the rules of conduct provided by knowledgeable experts whove studied and compiled these standards And part of our job is to adopt and observe accepted ethics Consider this for a moment Lawyers policemen and doctors all have to follow an ethical code laid down by their profession regardless of their own feelings or preferences In other words there are rules we accept when taking on a particular job Now Ive been in the F I chair for a long time I have seen my share of people stepping outside the ethical boundaries to chase a dishonest buck I even did it myself until I learned better which brings me back to the question I was asked Yes I do believe ethics can be taught and quickly learned But in order for these practices to be observed in any given business the tenor must be set by executive management namely the dealer principal This begins with the ethical treatment of employees which will cause them to buy into the culture of doing things the right way because its the right way even when no one is watching And believe me customers can sense character just like you and I can A number of attempts have been made to standardize F I ethics starting with the Association of Finance Insurance Professionals and Tom Hudsons Carlaw legal desk book and continuing with the certifications offered by Automotive Compliance Education These are just a few of the excellent resources devoted to dealership rules and regulations When I launched the Ethical F I Managers Facebook group in 2010 my goal was to help fledgling F I managers benefit from the collective wisdom of experienced pros We now have more than 11000 members and that is still our mission today If the people at Tates abandoned their ethics and stepped over the line to unfairly enrich themselves they will have to pay a price for it Such incidents remind us we can all play a significant role in helping the industry by doing the right thing every time As a dealer the most important thing you can do is staff your stores with honest and trustworthy folks As an employee make certain the customer gets not only a fair price but a great experience undergirded by a solid commitment to ethical treatment Good luck and keep closing ABOUT THE AUTHOR Marv Eleazer is the F I director at Langdale Ford in Valdosta Ga Email him at marv eleazer@ bobit com I His Madness wants F I pros to commit to ethical dealings with customers and finance sources because its the right thing to do not just for the very real threat of reprisal