FEBRUARY/MARCH 2011
ALABAMA
I N D E P E N D E N T
A U T O M O B I L E
D E A L E R S
A S S O C I A T I O N
PREPARING FOR THE FUTURE LSO Three Keys to Building Trust A PLUS IRS Recordkeeping Guidelines
Dr. Robert Bentley, Alabama’s newly elected governor (left), and Tony Wilkerson, Alabama IADA executive director, at the state capital in Montgomery.
DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage
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INSIDE
MAGAZINECONTENTS
Product Discounts
8 Preparing for the Future 12 Three Keys to Building Trust 14 IRS Recordkeeping Guidelines 14 ABC Auction’s Jim Phillips Gets His Deer
AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the United States with over 4,350 stores across 48 states, the District of Columbia and Puerto Rico. NIADA members have access to AutoZone’s “hot-shot” delivery program including discounts on more than 750,000 product level SKUs in over 70 distinct product categories.
NIADA/Manheim Community Service Award
Manheim, the world’s largest provider of vehicle remarketing services, cares about its employees, the environment and the communities it serves. From fund raising drives to tutoring kids after school to supporting long-term conservation efforts, Manheim and its employees are dedicated to giving back to their communities and knows independent vehicle dealerships across the country share in this commitment. For the first time this year, Manheim is recognizing and honoring those dealerships by awarding the 2011 National Manheim Community Service Award at the 65th NIADA Annual Convention and Expo. For information on how to nominate and to obtain more in-depth information, please contact Georgia Brown, NIADA director of education, at 817-640-3838 or see page 16.
ADVERTISERSINDEX ADESA....................................................... 15 Anaheim Auto Auction ............................... 13 AutoTrader.com .......................................... 5 Cars.com....................................... Back Cover Center Point Auto Auction............................. 7 Manheim.com..............................................17 Manheim Mississippi....................................11 Manheim Nashville...............Inside Back Cover Manheim Tennessee..............Inside Back Cover SmartAuction ............................................... 9 Sterling Credit .................... Inside Front Cover United Acceptance...................................... 10 Western General / Protective........................ 3
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV NIADA HEADQUARTERS: 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR TROY@NIADA.COM.
THE ALABAMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES CORPORATION, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203; PHONE (817) 640-3838. PERIODICALS POSTAGE PAID AT DALLAS, TX AND AT ADDITIONAL OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO NIADA STATE PUBLICATIONS, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203. THE STATEMENTS AND OPINIONS EXPRESSED HEREIN ARE THOSE OF THE INDIVIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF AIADA OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NIADA, DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT © 2011 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED. VISIT THE NIADA WEB SITE AT WWW.NIADA.COM. STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITOR Mike Harbour • mharbour@niada.com PRODUCTION MGR. Jacob Kerns • jacob@niada.com ART/PRODUCTION MGR. Christy Haynes • christy@niada.com PRINTING Nieman Printing
AIADAOFFICE 120 VULCAN ROAD BIRMINGHAM, AL 35209 PHONE: (205) 942-1000 FAX: (205) 942-3565 WEB SITE: WWW.ALABAMAIADA.COM TO BECOME A MEMBER OF AIADA, PLEASE CONTACT TONY WILKERSON AT (800) 239-2423 OR TONY@ALABAMAIADA.COM
For more information, viewwww.niada.com/dealers_edge.php
REMINDER
LADIES AUXILIARY SCHOLARSHIP
This is just a reminder about the Ladies Auxiliary scholarship; applications are due by Feb. 29. To download an application, visit www.alabamaiada.com.
Mark Your Calendars for the 2011 National Tire Safety Week! RMA’s tenth annual National Tire Safety Week will be held June 5-11, 2011.
The annual event is an initiative of the RMA’s “Be Tire Smart – Play Your PART” program, a year-round effort designed to help drivers learn the simple steps they can take to ensure that their tires are in good working condition. RMA is the national trade association for tire manufacturers. Tire manufacturers and retailers nationwide will work to educate motorists about proper tire care and maintenance. RMA provides tire retailers, auto dealers and automotive repair shops with free “Be Tire Smart” brochures and other materials. Many participating retail outlets use the opportunity to promote tire care
through advertising, promotions, free tire pressure checks and conducting media outreach. More than 22,000 tire and auto service outlets participated in the 2010 National Tire Safety Week. RMA released a survey of more than 5,400 vehicles that showed half with at least one under inflated tire. Nearly 20 percent of vehicles had at least one tire under inflated by 8 pounds per square inch (psi). Under inflated tires waste fuel, risk safety and cause tires to wear out faster. Tire and auto retailers who are interested in obtaining free RMA materials for National Tire Safety Week can order them online at www.betiresmart.org. Those who have participated in the event before can expect to receive materials again this year.
EXECUTIVE COMMITTEE EXECUTIVE DIRECTOR TONY WILKERSON
JOHN DUNN SYLACUGA
CHARLES BUTLER ATHENS
FRANK MILES JACKSONVILLE
PRESIDENT KEN MCFARLAND HUEYTOWN
TOMMY GREENE BIRMINGHAM
ERNEST CRUMP JASPER
KERRY MITCHELL ALBERTVILLE
BILLY LEVINS MONTGOMERY
MARK CRUMP JASPER
DINK TUCKER BIRMINGHAM
CONNIE OSWALT NORTHPORT
J.W. CUNNINGHAM NORTHPORT
LANCE TURNER ANNISTON
JAMES DENNIS PRATTVILLE
ANTHONY UNDERWOOD BESSEMER
WILLIE COLVIN TUSCALOOSA
JERRY GILES TUSCALOOSA
JOHN PIGG PRATTVILLE
TRACY HONEA ALBERTVILLE
BARRY SEARCY MUSCLE SHOALS
MIKE JONES DOTHAN
ACTIVE PAST PRESIDENTS TODD SMITH DOTHAN
CHARLES LITTLE SATUSMA VERTA BARR MEHERG TUSCALOOSA
PRESIDENT-ELECT RANDY BURNS GADSDEN VICE PRESIDENT CHARLES MORING MIDLAND CITY SECRETARY/ TREASURER TODD ODEN BIRMINGHAM CHAIRMAN OF THE BOARD RONNIE ELLISON CALERA DIRECTORS PAUL CLABORN ALBERTVILLE REX CANTERBURY FAYETTE
O’ NEAL CLEVELAND PLEASANT GROVE
DICK WRIGHT SYLACAUGA HENRY MULLIAX ANNISTON ASSOCIATION ATTORNEYS GALESE & INGRAM PC JOHN GALESE & JEFF INGRAM BIRMINGHAM
DEL MILES JACKSONVILLE
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IT’S NIADA SCHOLARSHIP APPLICATION TIME AGAIN! The NIADA Foundation invites graduating seniors of the 2010-2011 school year to complete a scholarship application in pursuit of funds to be paid to the colleges of their choice in the Fall of 2011. Four regional scholarships are
awarded annually in June at the NIADA Convention and Expo. Last year, each scholarship was in the amount of $3.500.
THIS YEAR’S APPLICATIONS MUST BE POSTMARKED NO LATER THAN FEBRUARY 1 AND RECEIVED AT THE NIADA OFFICE BY FEBRUARY 10.
ELIGIBILITY REQUIREMENTS TO BE ELIGIBLE APPLICANTS MUST:
Be classified as a high school senior during the current 2010-2011 school year and legally reside in one of the four NIADA regions; Have maintained an outstanding academic achievement record as reflected by an official high school transcript; and Demonstrate an aptitude for college work as measured by SAT or ACT scores.
APPLICATION PROCESS
The 2011 Scholarship information and application have been posted on the NIADA Foundation website at www.niadafoundation.org. Applications must be postmarked by February 1, 2011. It must be submitted in a 10-by-13-inch envelope with adequate postage to:
SCHOLARSHIP SELECTION COMMITTEE NIADA FOUNDATION 2521 BROWN BLVD ARLINGTON, TX 76006 All information must be included with the original application. No additional information will be accepted at a later date. NIADA staff will review the applications for completeness and will forward them to the NIADA Scholarship Selection Committee and at Northwood University in Midland, Mich. They will be reviewed by regions. One applicant will be selected from each of the four NIADA regions based on the merit of his or her scholarship application and will be notified by the foundation office no later than mid-May 2011. Information regarding the NIADA/AutoTrader.com National Scholarship to Northwood University may be obtained by contacting the Northwood University Financial Aid office.
CPAA Offers $49 Sale Fee! At Center Point Auto Auction, we have more than 100 new car trades every Monday night with a selling ratio of 75 percent, but we still need more cars for our buyers. So, CPAA is offering a great new
program for our independent dealer friends. As you know, fleets, banks and manufacturers always get the deal and that’s OK since that’s how we get the cars. At CPAA, we know it’s the independent dealer who keeps the auction strong, so we’re announcing an unheard of $49 sale fee.
PRIVACY NOTICE CHANGES
Dealers are, or should be, in the midst of revising the privacy notices they give to consumers. The Federal Trade Commission has
a website at www.federalreserve.gov/bankinforeg/privacy_notice_ instructions.pdf designed to assist businesses in creating appropriate notices. Whether dealers use that tool or some other method to create an update privacy notice, they must decide how to disclose their information sharing policies. For example, does your dealership share information for joint marketing with other financial companies or for nonaffiliates to market to the dealership’s customers? You also must decide if you’re going to allow customer’s the right to limit your dealership’s ability to share information. You may be thinking the answers to these questions are easy because you do not share customer information with anyone. Even if this is true, how to complete the form may not be so obvious. If you, through your form, inform customers you don’t share their information, you have possible exposure if any personal data is later disclosed intentionally or by accident. Even if you don’t share information today, you might decide at some point in the future to begin doing so. For these reasons, you should strongly consider disclosing to your customers you share their information and they don’t have the right to limit this sharing. Disclosing to customers a policy broadly allowing you to share information may likely limit your future exposure to customer claims for sharing their information. It also allows you extra flexibility in dealing with customer information. Think about this before completing your new privacy disclosure form. INFORMATION FROM AL ASSOCIATION ATTORNEY, JEFF INGRAM
Cars.com Partners with AULtec to Ramp Up Daily Data Feeds on Inventory Listings AULtec announced Tuesday that dealerships using its Dealer Profit Center to list, publish and market their online vehicle inventories can now benefit from online inventory feeds and price updates to Cars.com.
AULtec — a sister company of AutoUpLinkUSA that is involved in inventory data and vehicle image acquisition, management and online publishing — will conduct these feeds and updates to Cars.com several times each day, officials said. “This multiple daily data feed from AULtec to Cars.com is a game-changing advancement in online inventory management,” officials noted. Dealers who utilize AULtec’s DPC product suite and Cars.com can tap into the service for free. It is available immediately. Those looking to obtain more information are encouraged to e-mail Skip Murphy at smurphy@ AULtec.om or call (866) 949-9754. “Now dealers having this advantage will have the most dynamic, freshest and most competitively priced inventory on the Internet,” they added.
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NIADA CERTIFIED ANNOUNCES TWO PARTNERSHIPS eBay Motors and OPENLANE will join forces with NIADA’s Certified PreOwned Program beginning Feb. 1 in a pair of new partnerships formed to better serve the association’s members.
Consistently ranked the No. 1 automotive site on the Web, eBay Motors will display all NIADA Certified vehicles in its classified ads portal, its certified search results, as well as detail the program on its certified vehicle landing pages. “Our new relationship with eBay is key to the continued success of the NIADA Certified program,” Linn said. “Our dealers’ certified inventory will be afforded tremendous visibility on the eBay platform. Consumers are searching for certified vehicles and the NIADA Certified brand awareness will be greatly enhanced by this relationship.”
Administered by
Kevin Considine, vice president, eBay Motors, agreed: “The NIADA certification program is a natural progression for eBay to continue to enhance the value offering for independent dealers. We are proud to be an early adopter of the NIADA Certified program and look forward to continuing to enhance our relationship with NIADA.” Also starting this month, OPENLANE – a leader in online wholesale vehicle transactions – will display a new vehicle listing category: NIADA Certified. The category will provide online buyers and sellers with the knowledge the vehicle listed has passed the certification requirements to be listed as NIADA Certified. “This acknowledgement builds value for NIADA’s Certified Pre-Owned Program, but as importantly, assures online buyers that they are buying a vehicle of quality,” Linn said. “We continue to look
for ways to gain visibility for the NIADA Certified program. Our relationship with OPENLANE reinforces that certified vehicles are worth more money in both the wholesale and retail marketplaces.” The NIADA Certified Program is available to all NIADA members and represents the industry standard for coverage and protection. It provides 12 months and 12,000 miles of comprehensive limited warranty coverage on most vehicles 2001-2011 up to 100,000 miles. The program is administrated by National Auto Care (NAC) and insured by an A-rated company. NIADA Certified is further supported by detailed implementation and sales training, best practice reviews and includes many pointof-sale tools, including; access to print an online Buyers Guide, marketing collateral, online media kits, and a free AutoCheck vehicle history report.
FOR MORE INFORMATION, VISIT NIADA.COM AND CLICK ON THE NIADA CERTIFIED LINK UNDER THE SERVICES MENU.
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Future P R E PA R I N G F O R T H E
By Jan Kelly, president of Kelly Enterprises
A
new year brings new goals, and new hopes for improved sales, more lenders, and more profits for everyone. As with any change in the
Education is not a one-time event. Plan a continuous relationship with your education resource. Every process should be monitored, measured, and modified as required. After the modifications have been made, the new process needs to be re-implemented, monitored and the producers need to be held accountable.
SALES: From all I’ve read, the customers are back. People are once again going to the dealerships to replace their old vehicles with smaller, more fuel-efficient models, and some are adding to their family fleet so they can meet the weather challenges. The great news is the customers are back from their long hiatus. What are they finding at the dealerships? The customers are finding store personnel stretched, and the once-many choices of inventory they enjoyed in the past now cut. The product selection step in the selling cycle will need to stress selling what you see in front of you. During the past few years, those dealerships that survived have learned how to manage inventory more effectively, as well as turning it more quickly. They’ve also learned how to operate in a lean environment.
LENDERS: The industry needs more of them, and we need them to approve loans. Dealerships will need to continue to seek local credit unions and other local lenders to approve consumer financing. Credit unions may not be use to the independent dealerships, but this is an opportunity to put your best face forward and sell yourself and your business acumen to the lenders. I was asked how important relationships with lenders are; they’re critical to your success. Lenders again wish to become a close business advisor to your operation. They’re going to want a piece of every banking transaction you have; wholesale, retail, merchant services, checkings and savings, personal and business. When you think of lenders, what was old is now new again. Keep your ears to the wind; contact every source prospect for lenders at every opportunity.
marketplace, dealerships must prepare their team to meet the current demands of the marketplace.
PERSONNEL: Plan on hiring sales personnel and educating them. Personnel are stretched to the point of having job descriptions blurred. I think the time is coming to redefine the roles and create a work environment where they can focus upon the job at hand and cease worrying about what additional items will be asked of them. Multitasking can become dysfunctional after awhile. Sales processes while basic never change, I find each dealership has a specific culture and the process often must be modified to reflect the culture so management will support the process after the educator leaves.
COMPLIANCE ISSUES: Spend the time it takes to create a binder with your policies and procedures regarding the plethora of federal regulations we must meet. The following is a beginning checklist for those policies and procedures: ______ ______ ______ ______ ______ ______ ______
DISPOSAL RULE P SAFE GUARD RULE P OFAC SDN LIST P RED FLAG RULE P ADDRESS DISCREPANCY RULE RISK-BASED PRICING RULE P ADVERSE ACTION LETTERS P
P
ONCE A POLICY AND PROCEDURE IS PLACED IN WRITING, THE COMPANY IS BOUND BY THE WORDS IT WRITES. With the creation of the new credit protection agency, I think we’ll begin to see enforcement of the rules and regulations and perhaps some additional items will be added to the list of required written documentation. Review your existing policies and verify what’s written is what’s actually happening. If not, then change either the policies or your practices. Once a policy and procedure is placed in writing, the company is bound by the words it writes. Conduct self-audits as written in the policies and procedures. Document the education content and the timing of the education of new hires. Document any breaches of security, or failure to adhere to the company policies. As you know, I am not an attorney and this is not to be used as legal advice. These words are meant to be educational only. Please consult your legal counsel for all legal issues. The future is once again bright. Prepare for success. Jan Kelly is an educator and consultant, international convention speaker and writes frequently for industry publications. For information about educational venues or joining our F&I 20 Group, call 800-336-4275 or visit www. JLKelly.com.
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HARBOR STRUCTURED FINANCE ANNOUNCES ACQUISITION OF WESTERN FUNDING On Oct. 15, 2010, Harbor Structured Finance LLC acquired one-hundred percent of the stock of Western Funding Inc., a leader in the field of personal automotive finance since its founding in 1962. The
completion of the transaction, which has been nearly two decades in the making and signals an important new phase in the history of the venerable Nevada-based lender, was announced by Frederick A. Cooper, managing partner of the formerly Columbus, Ohio-based Harbor Structured Finance and now the president and CEO of Western Funding. Cooper emphasized he plans to modernize the company utilizing contemporary best practices and technology, as well as honoring its past achievements and culture. Western Funding will continue to operate under its present name and will remain at its headquarters in Las Vegas.
EV SALES NOT CHARGING AHEAD This was the year General Motors and Nissan made good on their promise to bring mass-produced electric cars to the market, but don’t count on seeing one in traffic soon. According to the As-
sociated Press, sales so far have been microscopic, and they’re likely to stay that way for some time because of limited supplies. GM sold between 250 and 350 Chevy Volts in December, and Nissan’s sales of Leaf sedans totaled fewer than 10 in the past two weeks, the AP reported on Jan. 1. Production for both is ramping up slowly. It will be well into 2012 before both the Volt and Leaf are available nationwide. It’s still unclear just how large the market for electric cars will be once those early adopters are supplied. The base sticker price is $40,280 for the Volt and $32,780 for the Leaf; much higher than most similar-sized, gas-powered cars. If those prices rise, it could make them even more of a niche product than predicted.
The base sticker price is $40,280 for the Volt and $32,780 for the Leaf
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Management Perspectives THREE KEYS TO BUILDING TRUST BETWEEN MANAGERS AND EMPLOYEES Any positive working relationship is based on trust. An environment of trust assumes both parties will be safe, and it carries with it an implicit message you have each other’s best interests in mind. That’s why employees
can accept criticism and even anger from a boss they trust. The employees know deep down the boss really means to help. Trust is an interesting quality because, once it is lost, it is hard to recapture. The question is how do you develop trust between people in the workplace? After all, when you have people from various backgrounds coming to work together, they usually don’t have a history with each other and there’s no base of trust to begin with and grow upon. That’s the reason managers need to be proactive and create an environment of trust apparent to all.
Limit Lecturing
To ensure employees will make good decisions, managers often begin to lecture. Lecturing and telling your employees what to do implies you don’t have faith in their decision-making abilities. This can result in their becoming defensive. If people do not have faith in themselves, then the manager’s faith in them decreases even more and the lecturing begins again. Even well-intentioned lectures convey the subtle and negative message that what the employee has done is wrong or not good enough. All people are sensitive about being told what to do and they often want to prove themselves in the workplace. Rather than lecture employees, consider using reflective questions such as, “What do you think about . . . ?” “Have you thought of . . . ?” and “Would you consider . . . ?”
Listen to Learn
Epictetus is credited with saying, “Man has one tongue but two ears that we may hear from others twice as much as we speak.” Listening to learn and valuing people’s feelings and ideas is what promotes the ability of managers to effectively communicate with and influence their staff. For most managers, their first reaction is to evaluate the employee from their own point of view, then approve or disapprove of what the person says. This is listening autobiographically. It shuts down the employee’s self-confidence, initiative, and open communication. An easy strategy for replacing this tendency of listening autobiographically is to cultivate the habit of listening to learn. Listening is a
skill that can be improved. It starts by taking the position of a good listener. It’s getting ready to hear what’s about to be said. It is refraining from the all-too-common practice of hearing a few words and then jumping in with a response. You may have experienced the feeling that arose when someone finished your sentence before you had finished it yourself. When a manager interrupts an employee who is attempting to communicate, it prompts a negative emotion and no one enjoys being interrupted. Listening in anticipation of what an employee will say is another habit to break. Listening in anticipation encourages interruptions. All people want to be acknowledged and don’t wish to feel you know what is about to be said. Interrupting is an indication you don’t care about hearing the other person’s viewpoint as much as your own.
SELF-EMPOWERMENT. REMEMBER, THERE ISN’T ANY EMPOWERMENT MORE EFFECTIVE THAN SELF-EMPOWERMENT. REMEMBER, THERE ISN’T ANY EMPOWERMENT MORE EFFECTIVE THAN SELF-EMPOWERMENT. REMEMBER, THERE ISN’T ANY EMPOWERMENT MORE EFFECTIVE THAN SELF-EMPOWERMENT.
A manager who listens well acknowledges their employees’ feelings and opinions. Remember, no great insight ever enters the mind through an open mouth. It is important to let people know you’re willing to listen, even though it may not result in agreement. Just use the most effective sales principle: inquiry precedes advocacy. In other words, listen before you talk.
Work Smarter
Many people often say, “If I want something done right, I have to do it myself.” Yet effective managers know delegation of tasks is essential for building trust in the workplace. When you hold onto tasks and don’t delegate, you deprive your employees of an opportunity to advance their skills. Focus on treating your staff as if they are who, how, and what you would like them to be. Once the employee completes a task, the objective should be to focus on progress rather than perfection. If the person’s result does not meet your expectations, you can still find something positive to comment on while helping the employee understand what the initial expectations are. This is far more effective than comments that foster guilt or a sense of failure. A positive approach prompts an incentive for the task. Remember, there isn’t any empowerment more effective than self-empowerment. Because being positive is so enabling, it is best to displace thoughts and communications that are destructive. For example, saying “you are bad tempered,” has the same meaning as “you need to work on controlling your temper.” However, the first labels the person, whereas the second enables the person. People change more by building on their strengths and aptitudes than by working on their weaknesses.
Create a Trusting Environment
Without trust in the workplace, communication and teamwork will erode. Additionally, morale will decrease while turnover will rise. However, by using these three strategies you can build your employees’ trust in management, thereby making their workplace an environment filled with innovation, creativity, and ultimately higher profits for all. Dr. Marvin Marshall – an American educator, writer, and lecturer – is widely known for his programs on discipline and learning. His approach stemmed from his acquiring knowledge about youth as a parent; a recreation director and camp counselor; a classroom teacher; a school counselor; an elementary and high school principal; district director of education; and as a certificate holder from the William Glasser Institute. For more information, visit www. marvinmarshall.com.
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THE ADDRESS FOR DEALERS When you’ve got cars to sell, we’ve got the marketplace to deliver results. With dedicated, experienced staff and a full menu of services, we’re proud to be your trusted business partner. Contact the dealer consignment manager at your local ADESA auction, or visit us online at ADESA.com/sell.
Contact your nearest ADESA location:
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ADESA Atlanta
770-357-2277 Sale day: Wednesday
ADESA Birmingham 205-640-1010 Sale day: Wednesday
ADESA Memphis 901-365-6300 Sale day: Tuesday
ADESA Nashville 615-847-7400 Sale day: Thursday
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FEDERAL ADVOCATES DECEMBER 2010 LOBBYING REPORT FEDERAL ADVOCATES IS NIADA’S GOVERNMENTAL ADVOCACY PARTNER. To read past lobbying reports, visit www niada.com/legislative_and_legal.php
Dodd-Frank Wall Street Reform and Consumer Protection Act
Congress ended with the Federal Trade Commission beginning in earnest to review the auto industry in the light of the above consumer enacted law. Last Nov. 17, NIADA General Counsel Keith Whann and Federal Advocates met with senior staff of the FTC as a follow-up to the Sept. 21 meeting. A series of questions had been provided to NIADA for discussion in November. At the meeting, Keith walked them through the process of buying a car and provided samples of purchasing documents. The FTC is in the process of formulating questions for public comment regarding various aspects of the auto industry as it relates to consumers. FTC staff was not forthcoming as to the timing of that effort, its scope and its intended purpose. The results of the latest meeting were reported to NIADA’s Legislative Committee by conference call on Nov. 23. Also, on Sept. 21, Whann and Federal Advocates met with FTC staff regarding implementation of the above Bill and its impact on the auto industry. Following discussion of various issues, with Whann leading the discussion and answering various questions as to how the auto industry works, includ-
ing the auction practice itself, it was decided to schedule a half day session to allow for a more detailed discussion of issues (i.e., the Nov. 17 session). All of this is a result of the so-called Wall Street Reform Bill. As reported previously, the new law exempts some auto dealers from increased oversight with respect to dealer-assisted financing. The law does grant increased powers to the FTC regarding dealer oversight. Also, it requires coordination with the Department of Defense to ensure service members and their families are treated fairly by automobile dealers. Senate Motor Vehicle Safety Act of 2010
Congress ended with no formal action on this bill. To review, on June 9, the Senate Committee on Commerce, Science and Transportation marked up and order reported S.3302, the so-called Toyota Bill. In earlier drafts of the bill and just prior to markup, language was included (section 310) which would have specified a dealer may not sell or lease a used passenger motor vehicle (both wholesale and retail sales) until the dealer first notifies the purchaser or lessee in writing of any recall notices. Working primarily with Sen. John Thune,
R-S.D., his staff (Brenden Plack), and committee staff (Alex Hoehn-Saric and Chris Herndon), and as a result of concern raised by Whann and his proposed suggestion, section 310 has been dropped from the bill. This provision would have seriously hurt used car commerce by imposing tremendous compliance costs and liability exposure for dealers while increasing the safety risk for consumers by pushing unremedied vehicles into the unregulated private sale used car market. While an initial victory, we will continue to advocate on behalf of NIADA’s interest pending further action on the Senate bill as well as a possible House companion bill. Small Business Jobs and Credit Act of 2010
The Obama administration has delayed implementation of the above bill until March. On Sept. 23, the House passed the Senate-passed bill, which includes an increase in the amount the Small Business Administration’s Dealer Floor Plan Financing program can guarantee. This permits the SBA to guarantee bank and finance company loans up to $5 million, which should help, the committee believes, expand dealer access to floorplan lines of credit. We worked with Louisiana Democrat Sen. Mary Landrieu’s committee and personal staff, in conjunction with others, on this. The bill may be the subject of subsequent meetings with the Hill and the SBA on how the program really works. White House Reform Request
On Sept. 23 and Sept. 29, Federal Advocates was contacted by the White House, which is still trying to organize and schedule a meeting to include “people who are working to setup the CFPB.” This meeting is in response to a letter sent by NIADA to President Obama requesting “the opportunity to work with you to reform our industry in common-sense ways that achieve real safeguards for consumers, that promote accountability and transparency, and that work.” Department of Defense
Regarding the issue of “how to ensure that service members and their families are treated fairly by automobile dealers,” Whann and Federal Advocates also met on Sept. 21 with the Defense Department’s Frank Emery in the Office of Personal Finance, Family Policy Outreach Directorate. Whann relayed a specific example of how he helped a service member at Fort Bragg with an automobile situation, working with the JAG and others. He also talked about his plan for a special program to teach dealers on how to deal fairly with service members and their families. DOD continues to remain interested in looking for opportunities where Whann could lend his expertise.
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vAuto revealed recently that dealers can now tap into the company’s used-vehicle management system through their Android mobile devices, giving them another avenue to access the company’s services while on the go.
“We are excited to offer our dealers the vAuto mobile app for the Android platform,” says Keith Jezek, vAuto’s president. “This innovation allows dealers to have vAuto in the palm of their hands for accessing realtime market information,” he continued. “vAuto’s live market appraisal and stocking modules are available on the app for making strategic decisions from any location.” Sharing some of the vAuto’s mobile application’s features, it offers third-party guidebooks, auction values and vAuto’s exclusive rBook. Explaining how the latter function works, officials noted that the rBook allows dealers to determine how identically equipped models are priced in their respective markets. Moreover, other features of the mobile app are vAuto’s heat sheet and buy list, which can help dealers figure out and find which models are selling strong in their areas. Officials said that for vAuto customers, there is no extra monthly fee to tap into the mobile app. The application can be utilized on Android 2.1 or higher operating systems. Included in the app is the new advanced barcode vehicle identification number capture. Users with Android devices that have auto focus cameras can utilize this function to automatically decode a barcode VIN and upload it to vAuto. It can be downloaded from the Android market. vAuto’s mobile app is already available via the Apple iPhone and iPod Touch devices. 18
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AUCTION DIRECTORY
vAuto Rolls Out Mobile App for Android
GULF STATES AUTO AUCTION LLC 6615 Mobile Hwy. Pensacola, FL 32526 Sale every Tuesday 9:30 a.m. Phone: (850) 944-1945
ABC – ATLANTA 444 Joe Frank Harris Parkway Cartersville, GA 30120 Sale every Tuesday 6 p.m. & Friday 11 a.m. Phone: (770) 382-1010
HIGHWAY 101 DEALERS AUTO AUCTION 2100 Hwy. 101 Rogersville, Al (256) 247-3600 Sale Day – Thursday 10:30 a.m.
ABC BIRMINGHAM 1046 A.E. Moore Drive Moody, AL 35004 Sale every Wednesday 12:30 p.m. Inops at 12 pm Phone: (205) 640-4040 ADESA ATLANTA AUTO AUCTION 5055 Oakley Industrial Blvd. Fairbum, GA 30213 Sale every Wednesday 10 a.m. & Friday 6:30 p.m. Phone: (770) 357-2277 ADESA OF BIRMINGHAM 804 Sollie Dr. Moody, AL 35004 Sale every Monday 6:30 p.m. & Wednesday 9 a.m. Phone: (205) 640-1010
KELLEY AUTO AUCTION 3485 US Hwy. 431 Attalla, AL 35954 Sale every Tuesday night Phone: (256) 538-9095 LONG BEACH AUTO AUCTION, INC. 8494 County Farm Rd. Long Beach, MS 39560 Sale every Wednesday 3 p.m. Phone: (228) 452-2030 LOUISIANA’S 1ST CHOICE Auto Auction 18310 Woodscale Rd. Hammond, LA 70401 Sale every Tuesday 9 a.m. Phone: (985) 345-3302
ADESA KNOXVILLE 1011 Adesa Pkwy Lenoir City, TN 37771 Sale every Tuesday 6:30 p.m. & Friday 9:30 a.m. Phone: (865) 988-8000
MANHEIM CENTRAL FLORIDA 9800 Bachman Rd. Orlando, FL 32824 Sale every Wednesday 9 a.m. Phone: (407) 438-1000
ADESA OF MEMPHIS 5400 Getwell Rd. Memphis, TN 38118 Sale every Tuesday 9 a.m. Phone: (901) 365-6300
MANHEIM NASHVILLE 8400 Eastgate Blvd. Mt. Juliet, TN 37122 Ford Factory Sale every other Monday 11 a.m. Open Sale every Wednesday 9 a.m. GM Factory Sale every other Thursday 10 a.m. Nissan Factory Sale once per month Friday 9 a.m. Phone: (615) 773-3800
ALBANY AUTO AUCTION 1421 Liberty Expressway SE Albany, GA 31702 Sale every Thursday 6:30 p.m. Phone: (229) 435-7709 ATLANTA AUTO AUCTION 4900 Buffington Rd. Red Oak, GA 30272 Sale every Thursday 9 a.m. Phone: (404) 762-9211 BIRMINGHAM AUTO AUCTION 125 Meadland Circle Birmingham, AL 35023 Sale every Thursday 6 p.m. Phone: (205) 744-4030
MANHEIM TENNESSEE 1450 Lebanon Road Nashville,TN 37210 Fleet Lease and Dealer Consignment sales every Monday at 4 p.m. and every Tuesday at 10:30 a.m. Total Resource Auction every Monday at 1 p.m. Phone: (615) 244-2140 www.manheimtennessee.com
CENTER POINT AUTO AUCTION 100 13th Ct. NE Birmingham, AL 35215 Sale every Tuesday 6 p.m. Phone: (205) 856-6527
MANHEIM MISSISSIPPI 7510 US Hwy. 49 N Hattiesburg, MS 39402 Sale every Monday 5 p.m. & Thursday 9 a.m. Phone: (601) 268-7550
CHATTANOOGA AUTO AUCTION 2120 Stein Dr. Chattanooga, TN 37421 Sale every Tuesday 10 a.m. Phone: (423) 499-0015
MANHEIM METRO ATLANTA 2244 Metropolitan Pkwy SW Atlanta, GA 30315 Sale every Tuesday noon Phone: (404) 767-3652
DEALERS AUTO AUCTION OF HUNTSVILLE 26125 Hwy 72 Athens, AL 35613 Sale every Tuesday 9:30 a.m. Phone: (256) 232-0201
MIDFIELD CAR AUCTION 1468 Hartman Industrial Blvd. Midfield, AL 35228 Sale every Wednesday and Saturday-6:30 p.m. Phone: 205-923-6535 PENSACOLA AUTO AUCTION 401 West Burgess Rd. Pensacola, FL 32503 Sale every Thursday 9:30 a.m. Phone: (850) 477-3063
DEANCO AUTO AUCTION 3664 South Oates St. Dothan, AL 36301 Sale every Wednesday 10 a.m. Phone: (334) 792-1116 GEORGIA-CAROLINA AUTO AUCTION 884 E. Ridgeway Rd. Commerce, GA 30529 Sale every Wednesday 3 p.m. & Friday 6 p.m. Phone: (706) 335-5300 GEORGIA DEALERS’ AUTO AUCTION 7205 Campbellton Rd. Atlanta, GA 30331 Sale every Tuesday 10 a.m. Phone: (404) 349-5555 GREATER NEW ORLEANS AUTO AUCTION 61077 St. Tammany Ave. Slidell, LA 70460 Sale every Wednesday 9:30 a.m. Phone: (504) 643-2061
SHOALS NORTH ALABAMA AUTO AUCTION 651 Fairground Road Muscle Shoals, AL (256) 381-2745 Sale every Tuesday night @ 6:30 p.m. SOUTH ALABAMA AUTO AUCTION LLC 27472 Wilcox Road Robertsdale, Al 251-964-7012 Sale Days – Tuesday & Thursday 6:30 p.m. Sat. Auction @ 11 a.m. YOUR AUCTION 3010 Scherer Dr. N St. Petersburg, FL 33716 Sale every other Tuesday 11 a.m. – Birmingham The Jim Burke Automotive Group Phone: (800) 675-4444
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A S S O C I A T I O N
N E W S
Learn to Earn with NIADA’s Education and Training Consortium One of the crucial things I learned during my 30-plus years of interacting with sales-related people is quality salespeople are made, not born. Those
salespeople who experience great sales success are rarely great from the start. They make themselves great because they realized they could be no better than the level of their preparation. I firmly believe the salesperson’s life should be a life of continual learning. There is no place in a sales career where a salesperson can say there is nothing more to learn, no more skills to develop, no more techniques to improve or no more methods to try. Regardless of how long someone has been selling, it is my conviction there is always something to learn. Believe me, nothing fails like a bit of success if it keeps someone from looking for new and better ways to improve performance. As you look at your dealership, what can you say of the results you are getting from your salespeople? Do you need to change or improve your sales culture? Is it time you became more involved in the improvement of your salespeople’s skills? If the answer is “yes,” then think about what your goals might be. Consider a twofold approach. First, provide an educational experience that will help your salespeople achieve mental, emotional and psychological improvement to create instant action and second, to offer your salespeople specific statements (or, as we call it “What to say when…”) for almost any situation, question or objection that they may encounter in their
LEARN toEARN
BY
sales time with customers. One approach might be to define five or six key topics you want to emphasize. May I suggest: How to Locate Customers; Getting to Know the Prospect; A Sales Presentation that Works; Close: Getting to “Yes;” Getting the Deal Done: Finance and the Delivery; and After the “Yes.” These seem to be the prominent skill areas salespersons need most in defining, and experienced – I did not say old – sales staffs often need to sharpen. You want to make sure your sales staff are following your dealership’s philosophy and are singing from the same songbook. I don’t have to tell you there are various ways you can approach training. You probably have already done them all. You probably thought some were effective while others were real bombs. Finding the most effective way of keeping your dealership’s learning curve at its very best is a challenge for every dealer, general manager or sales manager. Squeezing in time for effective new salesperson orientation sessions or training (perhaps retraining) the experienced just doesn’t happen as often as it should. It takes leadership to make it happen. As you evaluate the sales practices at your dealership, consider what is really working, what needs improvement and what you need to eradicate. I challenge you to get involved in making the sales culture the best it has ever been. Be a part of the learning. Be a working leader, actively engaging the sales staff. As a trainer, I preached that message to every group I stood before, and after
L O U
years in the automotive industry; I have collected volumes of presentations. I admit some sessions were better than others, but I have always enjoyed watching a salesperson grow or hearing from a dealer with whom I have worked that his staff is really making strides in sales. Once you get hooked on promoting learning to earn, you miss it when you aren’t as actively involved. That is why when a couple of old independent automobile industry friends of mine suggested I put my knowledge and expertise into an online training program and approach NIADA about using it with it’s members, I decided to create the PreOwned Online Sales Training Course. The timing was perfect because NIADA has recently initiated an Education and Training Consortium to encourage quality educational opportunity providers to join together to offer programs and products to the independent automobile industry. Consortium selection criteria focus on the needs of the dealer. I am happy to say that Lou Vickery’s Pre-Owned Online Sales Training Course met that standard and is one of the first educational opportunities to be offered. It is simple, straightforward and offers flexibility that both the dealer and the salespersons can appreciate. Whether you use this course or select another approach, I challenge you to stay focused on growing your people. Help them become the most effective salespersons in the industry. Encourage their enthusiasm. Cultivate their energy. The profits will be yours!
V I C K E RY
Lou Vickery, an Alabama native, is a former professional baseball player and coach who worked with Merrill Lynch before going into the training and development field. He has presented his customer-focus programs to more than 30,000 people at more than 2,800 companies and dealerships in 44 states and two foreign countries. Vickery, the author of ten books, is in his sixth year of broadcasting and hosts “Lou in the Morning” in the Pensacola, Fla., market.
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NEW AND RENEWING MEMBERS WELCOME NEW MEMBERS PAUL MAYE 84 AUTO SALES DBA PAUL MAYE THEODORE
RANDY ROGERS RANDY ROGERS AUTO SALES INC. TUSCALOOSA KIM KING RIVER TREE INSURANCE SERVICES INC. HUNTSVILLE JIMMY BLACK THE AUTO SUPER CENTER LLC CENTRE WILLIAM T WALDING WALDING USED CARS DADEVILLE
RENEWALS
JARED IRBY COASTAL AUTO SALES LLC MOBILE JOHN T, EVANS EVANS MOTOR CO. GADSDEN HENRY D. MULLINAX MULLINAX AUTO SALES INC. ANNISTON
CARSON THOMPSON DEEZZ MOTORS LLC BIRMINGHAM
VERTA BARR MEHERG QUALITY MAZDA/VOLKWAGEN TUSCALOOSA
CLINT COMPTON CLINT COMPTON MOTORS ALBERTVILLE
JERRY SKIPPER DOTHAN TRUCK & AUTO INC. DOTHAN
FRANK & JANET JOHNSTON QUALITY REBUILT AUTOS LLC BOAZ
TIM JACKSON DISCOUNT AUTO SALES PELL CITY
CHRIS RICHARDS ECONOMY AUTO MART INC. GADSDEN
DWAYNE & DARLENE PIERCE R & D TRUCK SALES MERIDIANVILLE
DON ALSTON DON’S AUTO SALES BIRMINGHAM
ALY ELAASER ELAASER & COMPANY SALES & LEASE LLC HOOVER
REED INGRAM REED INGRAM MOTORS MONTGOMERY
GENE CAPPS/GLORIA CAPPS G & M MOTORS SEMMES
ROBERT CLEMENTS SCOTTSBORO AUTO SALES SCOTTSBORO
MICHAEL SCHEFANO HOLLYWOOD IMPORTS INC. BIRMINGHAM
JOHN FIKES/STEVE LOGAN SHOALS NORTH ALABAMA AUTO AUCTION MUSCLE SHOALS
CHRIS HADDER HOMETOWN AUTO SALES LLC JASPER
ERNEST CRUMP ERNEST CRUMP MOTOR CO. JASPER MICHAEL DRESDNER HANDICAPPED DRIVER SERVICESALABAMA BESSEMER TIM HILL HIGHWAY 280 NISSAN INC. SYLACAUGA VIRGIL ALLEN HOME FINANCIAL SVCS OF HUNTSVILLE HUNTSVILLE
NORMAN ANTONIO ANTONIO AUTO SALES INC. BIRMINGHAM
JOHNNY PEARSON /JOEL GOFF JOHNNY PEARSON AUTO SALES LLC MONTGOMERY
CHARLES FLANDERS AUTO EXPO MERIDIANVILLE
TONY MANN KAT USED AUTO SALES FT DEPOSIT
RAYMOND CRISWELL BARGAIN MOTORS JACKSON
KEN & LISA BATES KEN BATES AUTO SALES ATHENS
BILLY/JEFF/KEVIN PAINTER BILLY PAINTER & SONS MOTORS BOAZ
JOHN POTEET LOUISIANA’S 1ST CHOICE AUTO AUCTION HAMMOND, LA
IRENE JOYNER CALCO INC. GLENCOE REX CANTERBURY CANTERBURY AUTO SALES FAYETTE TAWANDA FALCONER CARS.COM CHICAGO CHARLES JOHNSON CHARLES JOHNSON AUTOMOTIVE INC. HEADLAND JIM COLVIN/TERRY HALE COLVIN & HALE AUTO SALES INC. ALBERTVILLE BILLY JOE & BILL J. COMPTON COMPTON AUTO SALES HAMILTON JIMMY DANIEL DANIEL MOTOR CO. MONTGOMERY ISSA TASHMAN DAVID’S AUTO SALES HOOVER
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FRENCH FLOYD SYLACAUGA HANDICAP INC. SYLACAUGA
AL & JENNIFER LIVINGSTON TOP FLIGHT AUTO SALES LLC WETUMPKA
BOBBY MCCORMACK MCCORMACK CARS INC. PELHAM
JOEL HOOMES/DENNY BRITT TRUCKLOT.NET AUTO SALES SPRINGVILLE
KARL L. WHITE, PRESIDENT MOTORMAX OF AUBURN OPELIKA
WINSTON SMITH WINSTON SMITH USED CARS CENTRE
KARL L. WHITE, PRESIDENT MOTORMAX OF BIRMINGHAM SOUTH INC. MIDFIELD
JON D BARKER ACTION BUYS CARS INC. MONTGOMERY
THOMAS O. STINSON MID-SOUTH FLEET LIQUIDATORS INC. TRUSSVILLE
TOM ADAMS JR. AUCTION INSURANCE AGENCY BIRMINGHAM
ALLEN BUCKNER MOODY MOTORS MOODY
KEN JACKSON/JACKIE AUSTIN AUSTIN AUTO PARTS BESSEMER CHRIS BALL AUTO MAX USA INC. TUSCALOOSA
JAMES MYERS MYERS TRUCK & AUTO SALES NAUVOO
JAMES A RIDDLE CAMERON’S AUTO & TRUCK SALES HOMEWOOD
CRAIG DENNEY NISSAN OF GADSDEN INC. GADSDEN
JOHN KIRKES CAPTAIN KIRK AUTO SALES FULTONDALE
TONY PRICE PRICE AUTO SALES JASPER
ALVIN CARLISLE CARLISLE CLASSY CARS BIRMINGHAM
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JOE LITTLE LITTLE MOTORS INC. HUNTSVILLE ROBIN TREADWAY, GM MANHEIM’S TENNESSEE AUTO AUCTION NASHVILLE, TN
JAMES DUPREE JR. ALL AMERICAN AUTO CULLMAN
HARRY CREW MIDWAY AUTO INC. JACKSON GAP
MICHAEL & CAROLYN LIPSCOMB LIPSCOMB AUTO SALES ANNISTON
THOMAS GREGERSON THOMAS SEAN AUTO MART ATTALLA
MICHAEL W. REEVES M & D AUTO SALES INC. FOLEY
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DANE SMITH SMITH-DAVIS MOTORS INC. ALBERTVILLE
KEN MCFARLAND CITY AUTO SALES HUEYTOWN
KARL L. WHITE, PRESIDENT MOTORMAX OF MOBILE MOBILE JAMES RAY/REBA RAY RAYS AUTO SALES CEDAR BLUFF KEN LOEWEN RIVERSIDE AUTO SALES GAINESVILLE ROBERT LEE COBB JR. ROBERT COBB MOTORS BOAZ REINALDO ESCOBAR RPN MOTORS INC. ALABASTER MARK HAAS SIMMONS NAMEPLATE & DESIGN CO. HUEYTOWN WALID YOUSIF SPEED AUTO SALES STERRETT KELLY STEELY STEELY LEASE SALES HOOVER
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Complying with the Risk-based Pricing Rule
BY LEE DOMINGUE, CEO OF INDIRECT LENDING, WOLTERS KLUWER FINANCIAL SERVICES
As the new Risk-Based Pricing Rule takes effect this month, auto dealers need to make sure they have information, resources and tools in place so they are ready to comply.
Applying to Buy Here-Pay Here (BHPH) dealers and those who do business with third-party creditors, the rule requires dealers to notify consumers when they receive materially less favorable credit terms than others based on consumer report information. According to the new rule, a risk-based pricing notice must be provided to the consumer before signing the credit agreement (direct lending note or indirect retail installment sales contract). The notice must: Include information about the elements of a credit report. State the annual percentage rate and other terms were set based on the consumer’s credit report. State the terms offered may be less favorable compared with the terms offered to consumers with better credit histories. Encourage the consumer to verify credit report accuracy. Identify all consumer reporting agencies that supplied a consumer report used in the credit decision. Inform the consumer of the right to a complimentary copy of a consumer report from those agencies for 60 days after receipt of the notice. Provide guidance on obtaining a consumer report. Direct the consumer to the Federal Reserve Board and Federal Trade Commission’s websites. Dealers can use a case-by-case method, a credit score proxy method or a tiered pricing method to identify which customers must receive a notice. For more info, a Adobe PDF is available at www.ftc.gov/ os/2009/12/R411009riskbasedpricingfrn.pdf. An exception to the Risk-Based Pricing Rule allows dealers to provide a credit score disclosure notice to all customers who apply for credit. This option is only available to dealers who use credit scores in the decision to extend credit. This exception notice must include the consumer’s credit score, the date it was created, its source, and information about the range of scores and how lenders use them. In addition, the notice must provide a description or graphical representation of how the applicant’s credit score ranks in comparison with other consumers. For this, dealers will need data from their consumer credit report suppliers. The exception notice may be the easiest path to compliance for many dealers, as it avoids the analysis of who is required to receive a risk based-pricing notice. However, each dealer should look at its own unique business to determine which compliance option will work best. While dealers may be concerned that the new rule will create more paperwork and administration, risk management platforms can help automate indirect lending, credit approval and compliance processes. By unifying lending transactions and simplifying documentation, a technology platform can enable quicker decision making and help prevent financial and legal penalties resulting from non-compliance. Whatever notice option your dealership pursues under the new rule, automating credit approval and compliance processes can help you ease the regulatory burden on staff resources, reduce your risks of non-compliance, and safeguard your dealership’s reputation. Lee Domingue is CEO of indirect lending at Wolters Kluwer Financial Services. For more information, visit www. wolterskluwerfs.com/ilsolutions.
HOW MUCH CAN JUST ONE CURBSTONER COST YOUR CITY? Curbstoned cars are often cheap, but state and local governments pay a high price. A new case study from Stop Curbstoning reveals the true cost associated with a single curbstoner. A recent California Department of Motor Vehicles (DMV) curbstoning investigation ended with a felony arrest on 12 counts of perjury and filing false documentation, but for Stop Curbstoning, that was just the beginning. The organization examined the financial impact of curbstoning using this single real-life case as an example. It found cities in which the curbstoner operated lost more than $56,000 in sales tax revenues alone, and the state of California lost $168,000. Other financial costs included lost license revenue, lost local business and potentially increased emergency response burdens due to unsafe vehicles – all from just one curbstoner. “Because there are so many curbstoners out there, even small things add up to a lot,” says Charles Redden, president of AutoTec, one of the companies behind the effort to stop curbstoning. “Take the annual state license fee for used car dealers. In California, it’s $176 for the first year and $126 to renew. But for every thousand curbstoners, that’s over a quartermillion dollars every two years.” “With local governments increasingly strapped for cash, enacting and enforcing anti-curbstoning laws can be a quick way to boost revenues and enhance their communities at the same time.” The community enhancement and public safety aspects of enforcing anti-curbstoning laws are harder to quantify, but should not be underestimated, Redden says. “Getting curbstoned vehicles off the streets frees up parking for local businesses, reduces obstacles to traffic, and eliminates eyesores,” Redden says. “It also eliminates a major source of unsafe vehicles – cars that look OK, but have major structural damage or missing safety equipment. How do you place a dollar value on all that? It’s priceless.”
For more information about the case study, curbstoning and efforts to put a stop to this illegal practice, visit StopCurbstoning.com.
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