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Alabama J U N E / J U LY

A L A B A M A

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

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A S S O C I A T I O N S T A T E

A F F I L I A T E

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AIADA’S 47TH ANNUAL CONVENTION JULY 22-23 THE CHATTANOOGAN IN CHATTANOOGA, TN

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Inside J U N E / J U L Y

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SERVICEMEMBERS CIVIL RELIEF ACT Understanding the SCRA Law | PAGE 06

DMV NEWS

Frequently Asked Questions | PAGE 10

NEW HAZARDS IN SERVICE CONTRACTS Amendment Effective July 1 | PAGE 12

2016 WAAC

Alabama Auctioneers Win Team Championship | PAGE 14

MESSAGE FROM THE EXECUTIVE DIRECTOR You Can’t Afford to Miss This! | PAGE 20

PERSONAL INVITATION TO AIADA CONVENTION July 22-23 at the Chattanoogan | PAGE 22

What’s New

BHPH DEALER MAGAZINE

NIADA now has a magazine devoted to Buy Here-Pay Here! The BHPH DEALER Magazine is published bimonthly on the even months of the year and is included as a supplement to NIADA’s Used Car Dealer magazine. Visit www.niada.com/bhph_dealer_magazine.php to check out the inaugural issue.

Advertiser’s Index

Ace Motor Acceptance.......................................................................9 ADESA.........................................................................................................IFC ARA GPS .......................................................................................................3 Autotrader ...............................................................................................17 AutoZone ..................................................................................................21 Black Book.............................................................................................. IBC DAA Dealers Auto Auction Group, LLC ..................................7 Dealers Connect Now ........................................................................5 Manheim .........................................................................................10, 11 Manheim Pennsylvania.................................................................13 NextGear Capital.................................................................................12 PassTime...................................................................................................19 Paymaxx Pro ..........................................................................................20 Peritus Portfolio Services ............................................................18 Protective .................................................................................................15 STARS GPS ...............................................................................................14 VAuto.......................................................................................Back Cover

Office

120 Vulcan Road Birmingham, AL 35209 Phone: (205) 942-1000 Fax: (205) 942-3565 Website: www.alabamaiada.com To become a member of AIADA, please call (800) 239-2423.

NIADA Headquarters

National Independent Automobile Dealers Association www.niada.com www.niada.tv 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 © 2016 by NIADA Services, Inc. All rights reserved. Visit the NIADA Web site at www.niada.com.

Welcome New Members

Executive Committee & Directors

John Anderson Wayne Boyle 4A Used Auto Sales LLC Heritage Motor Sales LLC Toney Huntsville Curt Sidden/Meredith Brown American Credit Acceptance/Spartan Financial Partners Spartanburg, SC Clifford Williams Jr A’s Used Cars Bessemer Suzanne Madison, Acc. Mgr. Auto Resource Center (ARRC) Ridgeland, MS

Jon McCormick Jon McCormick LLC Boaz Kevin Rose Kevin’s Wholesale Used Cars Huntsville Jim King King Corporation Huntsville Dwight Lamb Lamb Motors Inc. Hamilton

Angelye Martin AUTOSALES.COM Tuscaloosa

Charles Gilliland Lakeside Auto Sales Albertville

Markeith & Lasonya Conley B.I.G. Financial Montgomery

Virgil Parker Parkers Auto Mart LLC Phoenix City

Bruce Cheatham Bruce’s Autoplex Decatur Gaston Waites Car Store Pell City Aref Jabr Chromez Automotive Sterrett

President Paul Claborn Albertville President Elect Pokey Brimer Oxford Vice President Todd Oden Birmingham Secretary/Treasurer Chad Tillery Jemison Chairman of Board Rex Canterbury Fayette Directors Barry Searcy Muscle Shoals John Dunn Sylacauga Lance Turner Anniston Willie Colvin Tuscaloosa Bryan Cooper Huntsville Ethan Hunt Mobile Robert Case Hartselle Tim Duke Birmingham Jay Saul Jasper

Husam Alaskari Sam’s Auto Sales Huntsville Randy E. Green RJ’s Auto Sales Huntsville Duane Yessick RV Collision Theodore

Corkey McFarland City Auto Sales Bessemer Bessemer

Tunga Mixon/Rodney Senior Senior Auto Sales & More LLC Birmingham

Terrence Stewart Crown Motor Cars Montgomery

Ates Jaber Southern Auto Credit Sterrett

Jack Allison ECWS Engineered Car Wash System Birmingham

Mark J Bruna Southern Automotive Group Pulaski, TN

Mike Richards Economy Auto Mart Gadsden

Randy Touchstone Touchstone Auto Sales Mobile

Trent Hall Hall’s Motorsports Pelham

Charles Baker Vista Motors LLC Daleville

Randy Crump Jasper Larry Morris Birmingham Reed Ingram Montgomery Kelly Steely Hoover Darrell Pettie Pleasant Grove Jerry Giles Tuscaloosa Wayne Wilkinson Florence Roderick Underwood Bessemer Randy Little Satsuma Erek Yarbrough Pleasant Grove Lester Avery Oxford Joe Smith Montgomery Chris Mundy Chelsea Randy Sheffield Thomasville Chris Hadder Jasper Chris Mullinax Hoover Ricky Young Boaz

Robert Greer Zippy Autos LLC Huntsville

STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT & GRAPHIC ARTIST Chantae Arrington • chantae@niada.com ART DIRECTOR Christy Haynes • christy@niada.com PRINTING Nieman Printing AIADA

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DE A L ER P ERSP EC T I V E

SECURI T Y WAT CH

Helping Those Who Need Our Help

CARE ENOUGH TO GET INVOLVED BY JAY SAUL

A couple of years ago while in Washington, D.C., I went through the different museums. The one I spent the most time in was the Holocaust museum. There are literally thousands upon thousands of pictures and exhibits. The thing that stood out to me was how many people were standing around watching while these innocent people were being taken away. One day they are neighbors, kids playing together, women talking and such, and then one day some are being hauled off to concentration camps while others stood around and watched, not lifting a finger to stop this injustice being carried out. That day in the museum I made a conscious decision to not let wrongs go. If I let it go then it would be like saying what you are doing is either okay or I don’t care enough about the situation to get involved. There was a plaque I saw that has stuck with me to this day: “The greatest crime in history is not violence, it is silence.” Silence is not golden. I have told you that so you may understand my actions in the following story. Please understand I am not comparing the Holocaust to the following story, I just used it to explain my actions. One day while I was walking back in the office from the lot a late model car pulled in and a man and woman got out. I walked over to them, introduced myself and asked how I could help them. They asked if we took trade ins and I said yes. They started telling this story that sounded too unreal to be true. They had purchased this car five months earlier from a new car dealer in town. Now let me set the stage... The couple is married and if I said they are slow it would be an understatement – not slow like they walk and talk slow, but slow like they were not of average intelligence. They went on to explain how they purchased this car with no

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money down and payments over $400 a month, and they just couldn’t afford it. I asked how much they make a month. The answer made me mad. The man gets disability of $770 a month and the woman does not have a job. I know that sometimes people on disability work for cash on the side, but not in this case. I asked if I could look at the paperwork. They pulled out an envelope that had been mailed to them with the contract and bill of sale among other papers (that’s a red flag). It is a used 2014 lower end sedan, with 72 payments at $471 per month. I asked the wife if she was working at the time and she said no. I asked how much down they paid. They said nothing, but the contract shows $500. So I said, “Let me see if I understand this – you guys purchased a car for 72 months at $471 per month and your total income was $770 per month?” They said yes. I asked how many payments they had made. The answer was three but one of those bounced, so really it was two. Looking at the contract there is a $1,900 charge that I can only guess is a warranty and maybe GAP. So I said to myself, “How does this happen? How does a dealer new or used take a customer and abuse them like this?” Oh I hear you, “But Jay, they signed the contract.” Hold it, my friends. It’s not the contract signing that made it wrong, it’s when the consumer does not have the ability to understand what they are doing that makes it wrong. Think about it – who in their right mind would sign up for $471 a month with a total income of $770 a month? It would have been easy to say, “Look, I am sorry for the situation you are in but there is nothing I can do to help.” But when you want to see this industry raised up to a higher level, when you want to see the retail automobile industry become a respectable part of this great country, then not getting involved is not an option. I brought the customers in, picked up the phone and called a local new car dealer friend and asked if he knew of this going on at this particular dealership. His answer was yes, he knew of five cases exactly like I had described that his store had seen associated

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Hackers Targeting Dealerships FIRM WARNS DEALERS

with this same dealer. He gave me a phone number of someone who will help this particular customer and the others we are aware of. I am not against someone making a profit, but when you lie and take advantage of someone who is unable to understand what they are doing – that is a completely different note. Here is the kicker – to get this deal approved the application had to be doctored up. There is no way a national auto finance company would buy this deal if the application was sent in with the correct information. Which means not only did the salesperson know this was wrong but so did at least one or two of the managers, including the F&I manager. If one person in a store had done this I might understand how it happened, but it couldn’t have been just one person. How much do you have to not value people to do something like this to someone? If what I looked at was the way I believed it to be then this could easily be a criminal case as well as civil. A wise man once said that every human being needs to have two pieces of paper. On one piece of paper he should write, “I am nothing but the dust of the earth” and place it in one pocket. On the other piece of paper he should write, “The whole world was created just for me” and that should be put in the other pocket. Those two pieces of paper are a reminder to each one of us to have balance in our lives. Any time we get to thinking too highly of ourselves we need to look at those two pieces of paper. When you value yourself higher than your fellow human beings, something is wrong. Sorry for the rant, but I wanted to tell this story. I will leave you with this quote by Paul Blart in Mall Cop 2: “If your only purpose in life is to serve yourself then you have no purpose. Help someone today!” Thanks for reading, Jay Saul jay@e-zautocredit.com

According to Helion Automotive Technologies, hackers are targeting dealerships and their accounting and F&I departments. Helion claims international crime organizations are using targeted email scams designed to trick employees into performing actions that make their dealerships vulnerable to an attack.

HACKERS WHO BREAK THROUGH DEALERSHIP NETWORKS HAVE THE ABILITY TO GAIN ACCESS TO DEALERSHIP LOGIN CREDENTIALS, DEALERSHIP AND CUSTOMER BANK ACCOUNT AND ROUTING NUMBERS. “The increase in the number of organized attacks in the last year is astounding, and auto dealers need to be on alert,” said Helion president Erik Nachbahr. “In addition to the volume of attacks, the level of sophistication and research involved is frightening.” Hackers who break through dealership networks have the ability to gain access to dealership login credentials, dealership and customer bank account and routing numbers, and other private customer information. According to Helion, security software and firewalls can’t stop an attack like this because the attack originates from an employee email. These email attacks are targeted and designed to look as if it were sent from within the organization. To prevent these spear phishing attacks, Nachbahr recommends dealerships verbally verify all requests for wire transfers. He also recommends dealerships have a cyber-liability insurance policy in place. Employees should be trained on cyber warfare tactics, he said, and all software patches should be regularly updated.

L EG ISL AT I V E NE W S

Servicemembers Civil Relief Act UNDERSTANDING THE SCRA LAW

We had a request to update the information on the Servicemembers Civil Relief Act. We hope this information helps you better understand the SCRA law. You need to make sure your customer is not active military before you repo his/her vehicle, and if they go into active military status during their finance contract, you will need to make sure the interest rate is 6 percent or lower (rules do apply here, check with us for details). If one of your customers went through conventional or secondary financing and goes into active military status after buying their vehicle, they may request your help. This information will also help them. Also, they may contact us and we will connect them with the right people. We are very proud of our military men and women. We will do everything possible to help them. This information is from military.com. Though the website is for the military members, it may help you understand the SCRA law. To find out if your customer is in active duty status, use this web address to request a certificate (there may be a small charge): https://www.dmdc.osd.mil/appj/ scra/single_record.xhtml. GETTING TO KNOW THE SERVICEMEMBERS CIVIL RELIEF ACT (SCRA) SCRA in Brief The primary purpose of the SCRA is to ease legal and financial burdens on military personnel and their families brought on by the demands of active duty. In the words of the act, the provisions were designed to allow servicemembers to “devote their entire energy to the defense needs

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of the nation.” SCRA extends relief to all Army, Air Force, Coast Guard, Marine Corps, and Navy service members on active duty, including reservists, members of the National Guard and Air National Guard who have been activated for duty, and activeservice commissioned officers of the Public Health Service and National Oceanic and Atmospheric Administration. A number of SCRA provisions also extend to spouses and other dependents, such as protection against eviction and relief related to the termination of residential and motor vehicle leases. Primary SCRA Provisions SCRA offers a variety of provisions to help active duty personnel meet their legal and financial obligations. But relief under the SCRA is not always automatic. Some of the more commonly invoked provisions include: • Six percent cap on interest rates. You can reduce or cap interest rates on any credit card, mortgage or other loan you or your spouse obtained before you entered active duty to 6 percent per year for the period you remain on active duty. To take advantage of this reduced interest rate, you must establish your active duty assignment materially affects your ability to pay the loan (for instance, if going on active duty requires you take a substantial pay cut). As of 2008, these provisions also apply to federally guaranteed student loans. These reduced rates do not apply to loans you obtained or new credit charges you made while on active duty. • Credit rating protection. Lenders cannot deny or revoke

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BY RANDY JONES

credit, change the terms of an existing loan, or refuse to grant credit because you sought SCRA protections. Any claim of rights under SCRA cannot be used as the basis for a lender to conclude you are unable to pay a debt or to generate an adverse credit report. Furthermore, an insurer may not refuse to insure you based on any SCRA protections you may invoke. • Judicial relief. If you are on active duty and it prevents you from attending a scheduled court appearance, SCRA allows you to request the postponement of civil court and civil administrative proceedings – including actions involving bankruptcy, divorce, or foreclosure – for at least 90 days. Note this protection does not apply to criminal proceedings. In addition, if a court enters a default judgment against you because you failed to appear in court to defend a lawsuit or other action, you can request the matter be re-opened and the default judgment set aside. The provisions that relate to judicial relief can be especially complicated, so be sure to consult with legal counsel at your nearest Armed Forces Legal Assistance Office regarding any civil court actions against you or you and your dependents. • Protection against evictions. If you rent your home or apartment and the rent does not exceed a certain amount (which in 2014 was $3,217.81 per month), then your landlord cannot evict you or your dependents while you are serving on active duty without first obtaining a court order. In addition, you can request the court delay the execution of an order to evict you or your dependents for 90 days – but, unlike the stay of other judicial proceedings, the court will

have the ability to decide whether to postpone eviction and, if so, for how long. The rent threshold typically changes each year to reflect inflation and any rise in housing costs. • Ability to terminate property leases. You generally can get out of or terminate without penalty any residential and business property leases that began before your active-duty assignment. You also can terminate a lease you signed during active duty in the event of a change in your permanent duty station or if a new deployment will last more than 90 days. You must provide written notification of cancellation to your landlord – verbal notice is not enough. • Cancellation of automobile leases. You can terminate a car or truck lease if you are called to active duty for 180 days or more after signing the lease. You also can terminate the lease if you receive orders for a permanent change of duty station outside the U.S. or are being deployed with a military unit for 180 days or more. • Relief from foreclosures and forced sales. If you are on active-duty and it results in your inability to pay your mortgage or meet the terms of a purchase or installment contract, the SCRA may be able to help you. Real estate may not be foreclosed nor vehicles repossessed without a court order if you breach the terms of a purchase contract because of active military service. The servicemember may request a stay of such a proceeding under certain circumstances. • Termination and reinstatement of insurance. If your health insurance was canceled when on active duty, it can be reinstated without loss of benefits, waiting periods, or penalties in most instances. Life insurance also is protected against lapse, termination and forfeiture for nonpayment of premiums or indebtedness for the period of military service plus two years. You also can cancel professional liability insurance and have that insurance reinstated. Deadlines for applying for reinstatement differ depending on the type of insurance. For instance, you have only 30 days after release from active duty to request reinstatement of professional liability insurance and receive SCRA protections, but 120 days to request reinstatement of health insurance benefits. • State tax relief. If you receive CONTINUED ON PAGE 08

Servicemembers CONTINUED FROM PAGE 06 military orders that require you to move from your home state to another state, your “domicile” or state of legal residence for tax purposes does not change. SCRA prevents you from having to pay state taxes on your military income – or personal property, such as a car – to any state other than your home state of legal residency. For example, if your state of legal residence is Texas and the military sends you to Virginia, you won’t have to pay Virginia’s state income tax on your military earnings, nor will you have to pay personal property taxes to the state of Virginia. If you or your spouse earns non-military income, you may have to pay income taxes to the state where you’re stationed, if that state has an income tax. But the state cannot use your military earnings to increase either your tax liability or your spouse’s. WAIVER WARNING Although you can waive or cancel your rights under the SCRA, such a waiver must be in writing and signed by you during or after your active military service to be valid. If you sign a waiver of your SCRA rights before you enter military service, the waiver will not be valid. Carefully review all documents (for example, insurance policies) to be sure there are no embedded waivers. If you are considering signing a waiver at any time – before, during, or after military service – do not do so without consulting an Armed Forces Legal Assistance Attorney. HOW TO INVOKE PROTECTIONS UNDER SCRA Although the SCRA is designed to protect you and your family, most of its provisions require you to take action to request relief – and to do so in a timely manner. Some protections require written notification, such as the cancellation of a housing rental agreement. Other provisions, such as requesting an SCRAmandated 6 percent loan rate, require you show you have been “materially affected” by reason of military service. In most cases, you will need to provide a copy of your active duty orders to gain relief under the Act. The timeframe for requesting relief also varies: Some protections require you to take action before or during your activation, while others allow

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you to act within 30 to 180 days of your release from active duty. TALK TO YOUR ARMED FORCES LEGAL ASSISTANCE ATTORNEY SCRA is a complicated piece of public law. Before you seek relief, waive your rights to SCRA protections, or if you have questions about the type of relief you may be entitled to, it’s a good idea to talk to an Armed Forces Legal Assistance Attorney. Use the Armed Forces Legal Services Locator to find legal assistance near you. Consult your legal assistance office regarding correspondence requesting relief, especially in matters involving lawsuits and court appearances, insurance, and taxes. Typically, in requesting any kind of relief, you will have to include a copy of your orders and deliver your written notification by hand, private business carrier, or return-receipt mail (preferably certified) to the appropriate party. WHEN SCRA PROTECTIONS APPLY SCRA provisions generally take effect on the first day of active duty and remain in effect during the period of active duty – and in some instances beyond. For example, the Act allows a court to postpone a proceeding to enforce collection of a tax or sale of a property for up to 180 days after you are released from active duty. TIPS FOR FINANCIAL PREPAREDNESS Any mobilization, deployment, or permanent change of station move involves considerable planning and preparation. The best way to ensure a smooth transition that minimizes stress on you and your family is to have your finances and paperwork in order. See Money & Mobility for some checklists that will assist you in being ready, such as: • Family Financial Checklist • Legal Documents List • Important Paperwork Checklist • Tips For Talking About Money With Your Spouse Once you have worked through these lists and discussed your orders with your family, you will be better prepared to take advantage of the protections afforded you by the SCRA. Again, it is essential you speak with legal counsel anytime you are contemplating invoking the protections provided by the law.

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M A N AG E MEN T M AT T ERS

A Triple Dog Dare STOP STALLING AND SOLVE THAT DEALERSHIP PROBLEM BY STEVE HALL

Nothing could get me moving outside my comfort zone faster as a kid than a friend’s dare! Granted, many times those dares weren’t the wisest actions to take, but peer pressure will make you do some amazing things.

The power of a dare: action. There is no better case for how far a dare can take you than the 1983 movie classic A Christmas Story when young Flick has the gauntlet thrown down: the triple dog dare. This kind of dare, we’re told, challenges your manhood along with your entire social status. And it can really make people do things they normally wouldn’t. In the scene, Flick falls for the bait and ends up in the brutal cold with his tongue stuck to a frozen metal flagpole while everyone else runs away. Not exactly the result he wanted. I triple dog dare you to address a dealership issue. I don’t want to get you to take unwise actions, but take positive steps. I dare you to take action. Forget that, I’m going to go all in and triple dog dare you to take action! I challenge you to address one of the issues listed below. Or, if you’re tough enough, do all three! 1) Have the tough conversation with “that” employee. Most departments have one employee who just doesn’t get it. Maybe production is too low. Maybe the attitude is all wrong. It might be that attendance or punctuality is deficient. Whatever the reason, you and I both know they are a cancer in the department. Yet, you have put off the tough talk with them.

Sure, conflict is tough, and you may not want to lose the person. You also know in your heart the conversation must happen. Whatever the reason you haven’t addressed the person, I triple dog dare you to face reality and do it today! 2) Meet with your boss and admit something you don’t understand. People never want to admit they don’t know something. Yet, if our leadership isn’t aware of a deficiency they can’t help us improve. If you’re not sure of how to improve profitability, margins or growth – or even the best way to lead your team – be direct and honest with your supervisor. Show them your vulnerability and your true desire to learn. Not only will they appreciate the honesty, but it will improve the respect for you as a manager. Requesting training shows you want to learn, not just be a smoke blowing know-it-all who really doesn’t know it all. I triple dog dare you to have an honest relationship with your boss. 3) Take charge of your career. Take time from your schedule to attend a training class or workshop. Buy a book on business or leadership. (Yes, an actual hardcover – without pictures!) And then, I challenge you to actually read it. If you don’t take charge of improving your knowledge base, who will? Learn how to become a better leader of your people. Read the book within the next 30 days, highlighting items that jump out to you. Not sure what would be the best book for you? Just email me and I’ll give you a few suggestions. Do whatever it takes to improve yourself. I triple dog dare you to get started on the path of selfimprovement within the next seven days. So, there they are: my “childish” dares. While I certainly don’t want to hear about your tongue stuck to a frozen pole, I do want to know if you accept my triple dog dares! Send me an email at info@ncmassociates.com and let me know how it goes. Steve Hall is a full-time instructor for the NCM Institute Center for Automotive Retail Excellence. Over the past 25-plus years, Steve’s experiences have encompassed almost every aspect of the retail automotive service, parts and body shop business. This article originally appeared on NCM’s Up to Speed blog (http://blog.ncminstitute. com) and is reprinted with permission.

DM V NE W S

Frequently Asked Questions DEALER LICENSE PLATES

The Motor Vehicle Division frequently receives questions concerning permissible uses of dealer (D) and dealer transit (DT) license plates. This article briefly addresses the proper use of these license plates and penalties for improper use. The following persons may legally

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operate vehicles displaying dealer (D) license plates: • Prospective purchasers, limited to 72 hours of use. • Owners of the dealership. • Partners of the dealership. • Corporate officers of the dealership. • Employees of the dealership. Limitations on the types of vehicles on which dealer (D) license plates may be used: • Vehicles on temporary loan from a dealer to a customer whose vehicle is being serviced or repaired by the dealer (without fee). • Vehicles on temporary loan to a high

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school for the purpose of student driver education. • Vehicles in the dealer’s inventory. • One payload trip only on trucks or truck tractors in a dealer’s inventory with more than two axles on the power unit or a GVW exceeding 26,000 pounds. Limited to 72 hours of usage. If the dealer charges a fee for the use of a vehicle in the dealer’s inventory, dealer license plates cannot be displayed on the vehicle. New, used and wholesale dealers may display standard plates on vehicles in a dealer’s inventory. The vehicle is required to be inspected by the county license plate issuing official prior to issuance of a registration. Note: ad valorem tax is not assessed on vehicles in the dealer’s inventory. The following may legally operate vehicles displaying dealer transit (DT) license plates: • Wholesaler dealers. • Rebuilder dealers. • New and used dealers. Permissible uses of dealer transit (DT) license plates: • New, used or wholesaler dealers transporting vehicles within their inventory. • Motor vehicle rebuilders transporting vehicles to and from repair points as necessary to complete the restoration of the vehicle or as permitted by ADOR for inspection. Prohibited uses of dealer (D) and dealer transit (DT) license plates: • Rental or lease vehicles. • Tow trucks. • Service trucks or vans. • Other service vehicles. Penalties for improper use: • $100 for first violation. • $500 for each subsequent violation. • Willful misstatements/documents filed with erroneous information to obtain a dealer license. → Class A misdemeanor (criminal violation). → $1,000 civil penalty. • $5,000 civil penalty for failure to maintain a blanket motor vehicle liability insurance policy. • If the dealer, rebuilder, or wholesaler license is revoked or forfeited, all dealer and dealer transit license plates must be returned to the license plate issuing official within 10 calendar days. Failure to pay assessed penalties will result in the department filing a claim against the dealer’s surety bond. For more information, please download the dealer license brochure from our website: http://revenue.alabama.gov/motorvehicle/pdf/ Dealer_License_Brochure.pdf Reminder: The department regularly conducts periodic designated agent training classes. There is no charge to attend these classes and any designated agent desiring additional training may attend. The class location and dates can be found at the department’s website: http:// revenue.alabama.gov/motorvehicle.

SO CI A L MEDI A

P RODUC T S & SER V ICES

Dealer.com How to Increase Your Social Presence Partners with Contact at Once!

QUICK TIPS FOR ANY SOCIAL PLATFORM BY CHELSEA MAGEE

Did you know social advertising outperforms all traditional media? It also exceeds nearly every digital ad format in both Cost-Per-Click (CPC) and Cost-Per-Thousand Impressions (CPM) of the ad… when targeted, optimized and tracked! You’re probably thinking, “Great! So how do I get started?” To get your actual customers or prospective customers to follow you, you need to give them a good reason. Below are some quick tips you can utilize on any social platform. Accept the importance of social media. You need to realize that social media is here, and it’s not going anywhere. If you resist the change, you are sure to fall behind. So what’s the good news? A little bit of effort goes a long way! Be visual! Pictures drive engagement, regardless of the platform! Content with relevant images gets 94 percent more views than content without related images. Utilize images that will immediately intrigue, delight and connect with your audience (And no, I don’t mean just pictures of your inventory!). You might want to think about it this way: Images are bold, beautiful and simple to scan. Visuals are especially important in our quickpaced society. People love to see themselves online, and pictures draw them in, so consider posting photos of happy customers (with their permission). Do you have an animal mascot at the dealership? Involve them! Pets and animals seem to get a lot of “likes.” Engagement is essential. Keep your customers engaged with games and giveaways. Think about your target audience. What do they want? What are their hobbies and lifestyles? In Lexington, I might offer tickets to a University of Kentucky basketball game. What would appeal to your clientele? You also need to think about how much effort from your consumer you are asking – match the giveaway with your ask. If you give too little, you won’t get a lot of motivation, and you won’t gain followers or increase engagement. You might get a ton of followers when you offer a grand giveaway, but you also run the risk of consumers not trusting you. Our industry already has an issue with distrust, so don’t prove consumers’ worst fears right! A quick note about giveaways in social media: Most channels have pretty strict rules about contests and giveaways, so be sure to check terms and conditions. These rules change frequently, so review them before any contest, just to be safe.

PARTNERSHIP OFFERS CHAT AND TEXT SOLUTIONS

Dealer.com, a Cox Automotive brand, recently announced the company has partnered with Contact at Once! to offer the provider’s chat and text solutions, including a number of Contact At Once! packages that are integrated with Dealer.com websites. “Contact at Once! has a history of delivering leading chat and text products and services,”

said Dealer.com senior vice president Wayne Pastore. “The Contact at Once! tools allow us to give dealers a powerful, convenient and mobile solution to better connect one-onone and service car buyers wherever they are, whenever they need help.” In 2013, the companies worked together to incorporate chat in Dealer.com’s Control Center, making it simple for customers to use instant messaging to connect with car shoppers and view the impact of chat performance. Dealer.com clients will now be able to select from options that include fully managed and co-managed chat and text. For more information about Dealer.com please visit www.coxautoinc.com. To learn more about Contact At Once! visit www. contactatonce.com.

Chelsea Magee has been involved in digital throughout her career. She is the Client Success Director at NCM and oversees their online training website, digital marketing and social media. This article originally appeared on NCM’s Up to Speed blog (http://blog.ncminstitute.com) and is reprinted with permission.

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L EG A L UP DAT E

New Hazards in Service Contracts

AMENDMENT EFFECTIVE JULY 1 BY JEFF INGRAM

The Alabama legislature recently amended the law on service contracts. This amendment, effective July 1, has expanded the types of products regulated as “service contracts” under the law. The amendment also defines a term that has becomes quite popular with additional F&I products sold to customers in recent years – “road hazard.” Customers purchasing plans that protect against damage from road hazards tend to think they are protected against anything that happens to their vehicle from debris in the road. However, these products vary widely in what types of “hazards” are covered, and what protection is actually offered to the customer. The Alabama legislature has now defined a “road hazard.” According to Alabama Code § 8-32-2(13), a “road hazard” includes any “hazard that is encountered while driving a motor vehicle, including, but not limited to, potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps.” Products that protect against these everyday dangers may not have been regulated as a service contract previously. Beginning July 1, though, any product that offers any of the following protections is now considered a service contract under Alabama law: • Repairing or replacing tires or wheels damaged as a result of a “road hazard.” • Removing dents, dings or creases using paintless dent removal, without affecting the existing paint finish, and without replacing vehicle body panels, sanding, bonding or painting. • Repairing chips or cracks, or replacing the windshield, as a result of damage from a “road hazard” (if the

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protection is primary over the customer’s automobile insurance policy). • Replacing a key or key-fob if the key or key-fob is inoperable, lost or stolen. The amendment is not limited to just these new types of service contracts. The amendment also includes any other service approved by the Commissioner of Insurance in Alabama, as long as the service is consistent with the rest of the service contract law. As service contracts, products sold to customers that provide these services must comply with Alabama’s service contract law. Dealers in Alabama should be sure any vendors of these products the dealers use comply with the change in the law. The service contract law requires vendors register with the Alabama Department of Insurance and provide certain financial assurances. Vendors selling products that fit into the above descriptions will need to meet these requirements by July 1 if a dealer intends to continue selling that vendor’s product. Dealers should also remember service contracts are not the only products or accessories regulated by the Alabama Department of Insurance. Alabama insurance law also regulates “vehicle protection products.” A vehicle protection product is any “protection device, system, or service” that is “installed or applied to a vehicle,” “is designed to prevent loss or damage to a vehicle from a specific cause,” and “includes a written warranty.” The law specifically applies to alarm systems, body part marking products, steering locks, window etch products, pedal and ignition locks, fuel and ignition kill switches, and electronic, radio and satellite tracking devices, or any other product that meets the above three criteria. The law prohibits a vehicle protection product from being sold unless the vendor meets certain registration requirements. Alabama insurance law also regulates automobile clubs. The law defines an automobile club as any “legal entity which, in consideration of dues, assessments, or periodic

A “ROAD HAZARD” INCLUDES ANY “HAZARD THAT IS ENCOUNTERED WHILE DRIVING A MOTOR VEHICLE.” payments of money, promises its members or subscribers to assist them in matters relating to the ownership, operation, use, or maintenance of a motor vehicle.” Automobile clubs have strict licensing requirements. The law even regulates any person “representing any automobile club or association in soliciting automobile club or association memberships.” What does all this mean for an Alabama dealer? You should always make sure the F&I products or other accessories you sell come from reputable vendors that comply with Alabama insurance law. If you sell products that provide road hazard protection, make sure the vendors are ready to comply with the service contract law on July 1. If you sell products targeted toward vehicle protection or automobile club memberships, make sure the vendors are properly registered or licensed with the Alabama Insurance Commission. Consumer protection laws across the country are strengthening all the time, and dealers need to protect their businesses by only selling products from third-party vendors that comply with the law.

AUC T ION NE W S

2016 World Automobile Auctioneers Championship ALABAMA AUCTIONEERS WIN TEAM CHAMPIONSHIP

The 2016 World Automobile Auctioneers Championship was held Friday April 15, 2016, at Missouri Auto Auction in Columbia, Mo. It was a fierce and close competition with 86 total contestants vying for four world titles. The winners are as follows: • 2016 World Champion Automobile Auctioneer is Michael Riggins from Somers, Conn. • 2016 World Champion Automobile Ringman is Aaron Brown from Lakeland, Fla.

• 2016 World Champion Automobile Team is auctioneer Blake McDaniel – from Tallassee, Ala. – and ringman Dustin Taylor from Albertville, Ala. (Dustin is a 5-time WAAC Champion.) The World Automobile Auctioneers Championship brings auctioneers and ringpeople together each year in friendly competition to promote the dedicated auctioneers and ringmen turning metal into money and cars into cash, and to thank the auto auctions around the

country, and the world, who serve new and used car dealer in the most professional manner.

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ADESA Announces COO COINCIDES WITH NEW STRUCTURE BY AUTO REMARKETING STAFF

ADESA has named Paul Lips as its chief operating officer for the U.S. He is being promoted from his current role as executive vice president of operations and finance. This move coincides with a new structure for ADESA’s auction groups. In the new post, Lips will head up the entire U.S. auction operations group for ADESA, which will now consist of four regional groups instead of two. Previously, it was just East and West. Now, ADESA has added Midwest and Mideast groups. ADESA said in its news release the aim of the new structure is “to implement best practices and standardize processes to provide more dedicated service and support to customers nationwide.” President and chief executive officer Stéphane St-Hilaire said, “At ADESA, we are continually developing new strategies to ensure our customers have the best auction experience possible. The launch of four regions in place of two will enable us to further satisfy our customers’ needs and better leverage our resources and multiple assets at KAR Auction Services. “Paul is a proven innovator and leader who has consistently strengthened our operations since joining the company nearly two decades ago. His unique blend of financial and operational expertise will be essential to driving this exciting change.” With the realignment comes two additional promotions: • Jay Hinchman, who had been general manager of ADESA Las Vegas, is now vice president of U.S. auction operations in the new Midwest region. • Geoff Parker, formerly the GM of ADESA Cincinnati-Dayton is regional vice president of U.S. auction operations in the new Mideast region. Pat Stevens will continue as executive vice president of U.S. auction operations in the West, and Mike Caggiano will remain in that same role in the East.

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President’s letter

VOCATION TRAINING BY PAUL CLABORN I just returned from my first 20 group meeting since the acquisition of Leedom by NIADA. As promised on the front end, there was really no difference in our meeting with the exception of the change of logos. A recurring topic at our meeting is the shortage of mechanical and body shop technicians. We share best practices on how to get them, how to pay them, and how to retain them. This shortage is due to many factors, but the main one in my mind is a cultural lack of respect for people who have to get dirt under their fingernails. This shift started in the mid-90s, as college enrollment has doubled since then. To add insult to injury you have Bernie Sanders and his ilk today touting that everyone is entitled to a free college education.

News flash: not all kids are cut out for college, because some people learn better with hands on. I was one of those kids. I literally hated school and anything associated with it. The idea that our society has floated for the last 20 years is that to earn a good living one must have a college degree. This idea is a myth for many. I have many friends who have children who have just graduated from college with massive student loans and dim job prospects. Our trade school infrastructure was dismantled in the mid90s when college enrollment started going up. The existing trade schools have a hard time finding instructors due to valid teaching credentials. I believe this criterion is in the process of being reduced, at least in our state. As a nation we must come to the realization that Mother Nature is not fair – all seeds don’t sprout! We need to stop trying to level the playing field and figure out there will always be winners and losers. We must shift our thinking away from

college for everyone and focus on vocational education for those who don’t warm up to academics. It’s not just our industry that’s impacted. The construction industry is suffering the shortfall of skilled labor just like we are. Talk to some of them. They’re paying premium wages for the people that have the skills. The translation there is you’re paying a premium to the construction company. Our leadership in Washington would have you believe we have an income inequality problem when we really have a vocational and intellectual inequality problem. There is a sense of satisfaction gained from the work of our hands. To repair something or to build something with our hands is very gratifying. I fear we have raised a generation that may miss out on that feeling. WWII is a testament to what I’ve pointed out here. This country beat back two superpowers on opposite sides of the globe at the same time, and we did that with the work ethic

below the fold (death to traffic). This change lessens the impact of search engine optimization because some websites are pushed below the fold. Surprise! Google wants more people to click on their ads so they can make more money. If your ads were appearing outside of the top four previously, then your ads may not appear at all. You could go from thousands of visitors to zero overnight! Let’s not be too hard on Google. Facebook made sweeping changes awhile back forcing you to pay money if you want anyone to see your posts. Back to Google… If your ads generally appeared in the top three you still may have to make some adjustments. Your competition will probably think the only thing that gets them into the top four is by placing higher bids. This drives the price up on you but you can be smart about it,

and it may not cost you any more than it does now. There are two ways to crack the top four ads or maintain your top status: 1. Pay more money per click (bidding). 2. Improve your CTR (click through rate). The second is trickier but here is the short answer: •Better targeting. •Better copywriting on your ads.

of the blue-collar worker. I hope and pray we have time to rebuild our workforce if that need should arise again.

ONL INE M A RK E T ING

Dealers Upset About Google Adwords PPC Change

CHANGE PUSHING ORGANIC RANKINGS DOWN BY KENNY ATCHESON Recently Google decreased the amount of Google Pay-Per-Click ads showing after a given search such as “used car dealer.” The ads down the right-hand side of the search results have vanished. There used to be three at the top and seven down the right side. Now there are four at the top and that’s it! What does this mean for you? If you are not utilizing Google Adwords PPC ads and you are reliant on search engine rankings, be prepared for your website visitor traffic to drop. Now that there are four ads instead of three at the top, that pushes organic rankings further down. If you are ranking outside of the top three you may drop

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•Ads specific to the specific target. Hot Tip: Although I’ve been getting paid to write copy for a long time, I still split-test the ads to make sure our clients get the most out of every dollar spent on Google Adwords PPC. I will continue to do so. Whoever is managing your ads should be splittesting too. Kenny Atcheson is the founder of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. His website is www.DealerProfitPros.com.

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Cox Names Tech Execs

Ladies Auxiliary Update

MARK O’NEIL NOW COO

Cox Automotive Inc. has appointed Mark O’Neil to the newly created position of chief operating officer. O’Neil will be responsible for the company’s dayto-day operations of Cox Automotive’s software, media, inventory and financial services groups, reporting to Sandy Schwartz, president of Cox Automotive. O’Neil was previously president of Dealertrack, which was acquired by Cox Automotive last fall, and subsequently president of the Cox Automotive Software Group. He began his career in the automotive industry in the late 1980s. O’Neil began serving Dealertrack in 2001 as a member of the board of directors, and in 2005 became chief executive officer. He holds a bachelor of science in industrial engineering from Worcester Polytechnic Institute and an

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CONVENTION T-SHIRTS TO SUPPORT AUCTION

MBA from Harvard Business School. Keith Jezek will succeed O’Neil as president of the Cox Automotive Software Group. Jezek, currently serving as president of software solutions for Cox Automotive, has been responsible for the strategic direction and overall success of the company’s software division, which includes vAuto, HomeNet Automotive, Haystak,

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VinSolutions and XTime. Rick Gibbs was named Cox Automotive chief product officer, a new position, with the responsibility for creating product strateqgy and the technology development road map that will enable Cox Automotive to go to market as a unified product company. Both Jezek and Gibbs will report to O’Neil.

“Happy Spring” to everyone from your ladies auxiliary. Our annual convention is right around the corner. Each year the ladies auxiliary sells T-shirts promoting our theme for the convention. T-shirts are worn on Friday night during the festivities and auctions. The cost of the T-shirts this year will be $20. The sizes available are XS-2XL. There is an order form in this month’s magazine, and Judy Benton is also working on mail-outs, emails and the website. If you have never attended or been a part of this Friday night festivity, you are missing out! The ladies auxiliary charity auctions are legendary and loads of fun. By purchasing a T-shirt, you can help make the ladies auxiliary auction night a success story. If you would like to donate an item to the ladies auxiliary to be auctioned, it would be very much appreciated. You can contact the association office at 205-942-1000 and speak to Judy Benton. Just a reminder: Our state convention will be held in beautiful Chattanooga, Tenn., at The Chattanoogan Hotel July 22-23. We hope to see you there. Thank you, Gina Oden President of the Ladies Auxiliary

LADIES AUXILIARY T-SHIRTS

THE DEADLINE TO ORDER IS JUNE 1.

We will be selling T-shirts for this year’s convention commemorating our 2016 event at the Chattanoogan. Proceeds will go to our scholarship program and the charities we support along with other situations that “need a helping hand.” For example, we have been working with several auctions for the Make a Wish foundation, and what a blessing to see these children’s wishes come true. The faces of these children when their wish is granted will bring tears to your eyes and joy to your heart. We sold them at last year’s convention, and it was a great success. We hope you will help us out and order T-shirts even if you are not attending our convention, though we hope you will attend. Since Friday night is the ladies auxiliary night, we can all wear our T-shirts then.

PLEASE FILL IN THE FORM BELOW ALONG WITH YOUR FUNDS AND SEND BACK TO THE ASSOCIATION OFFICE AS SOON AS POSSIBLE. LADIES: Size

Quantity

MEN: Size

Quantity

CHILDREN: Size

Quantity

PRICE IS $20.00 EACH. TOTAL AMOUNT ENCLOSED: $ TYPE OF CARD: Visa

MasterCard

AMEX

Discover

CC# Expiration NAME ON CREDIT CARD

Code (3 digit on or 4 digit AMEX)

B ILLING ADDRESS (INCLUDE ZIP): SIGNATURE: You can pay by check, credit card or cash. Please make check payable to AIADA Ladies Auxiliary. Mail form and payment to: AIADA, P 0 BOX 19627, Birmingham, AL 35219.

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Message from the Executive Director

YOU CAN’T AFFORD TO MISS THIS! BY RANDY JONES It’s time for AIADA’s 47th Annual Convention, which will be held July 22-23 at The Chattanoogan in Chattanooga, Tenn. You can’t afford to miss it! Outside Magazine has once again named Chattanooga the No. 1 city in America for outdoor adventures. Chattanooga has topnotch attractions for all ages, world class outdoor experiences in a beautiful scenic city and hidden gems for dining that even Rachael Ray can’t ignore. Come and join your fellow Alabama dealers to start your very own family adventure. AIADA provides the best-in-class dealer training and education money can buy. Our convention committee has gone outside the box and gotten the very best our industry has to offer! Once you read the lineup of instructors and real time classes covering today’s issues, you will see why “you can’t afford to miss this!” We start off AIADA’s 47th Annual Convention Friday morning with an array of

the top independent automotive trainers in the nation.

F RIDAY M ORNING 8-9 a.m.: Buffet Breakfast with Our Exhibitors 9-10 a.m.: Friday morning keynote speaker – Chuck Bonanno, NIADA National Director of 20 Group Operations. Chuck speaks all over the country, and is considered one of the top trainers in the automotive industry. He will also be in Las Vegas in June training dealers at NIADA’s national convention. Chuck just finished training dealers at the BHPH World Convention. He is also Editor-In-Chief of BHPH Dealer Magazine. Chuck Bonanno is always booked! But we’ve got him just for you! You can’t afford to miss him! 10-10:20 a.m.: Coffee Break with Our Exhibitors. We will give away door prizes to the attendees of Chuck Bonanno’s meeting. 10:20-11:00 a.m.: Gideon Sinasohn, Senior Attorney for Federal Trade Commission.

You want to know what’s considered deceptive advertising? Want to know what’s the basic FTC Truth-In-Advertising Principles? Learn this and much more. You can’t afford to miss this! 11-11:20 a.m.: Coffee Break with Our Exhibitors. We will give away door prizes to the attendees of the FTC meeting. 11:20 a.m.-12:15 p.m.: Best Auction Practices – ADESA Birmingham – ABC Birmingham – DAA Huntsville – AFC Floor Plan 12:15-1:30 p.m.: Lunch With Exhibitors. We will give away door prizes to the attendees of Best Auction Practices Meeting.

F RIDAY A F T ERNOON Compliance Workshops by GALESE & INGRAM P.C. – One of the top law firms in the nation, they have handled cases for some of the top dealers in the southeast. Jeff Ingram also holds workshops for NIADA at their convention. You can’t afford to miss these classes! 1:30-2:20 p.m.: First Compliance Workshop – Day to day dealer business, comprehensive compliance safe guards to protect you and your business. You can’t afford to miss this! 2:20-2:40 p.m.: Coffee Break with Our Exhibitors. We will give away door prizes to the attendees of the FTC’s first Compliance Workshop meeting. 2:40-3:40 p.m.: Second Compliance Workshop – BHPH Compliance, pricing vehicles, interest rate/terms, collecting payments, repo vehicles, documentation needed on all the above and more. BHPH dealers, you can’t afford to miss this! 3:40-4 p.m.: Coffee Break with Our Exhibitors. We will give away door prizes to the attendees of the FTC’s second Compliance Workshop meeting. 4-5:30 p.m.: Dealer Panel Discussion will be held at the end of the BHPH Compliance workshop. All dealers are encouraged to attend. This is a very informative session. You will learn more about problems facing our dealers today, along with solutions. You can’t afford to miss this! 5:30-5:50 p.m.: Coffee Break with Our Exhibitors. We will give away door prizes to the attendees of the Dealer Panel Discussion Workshop meeting.

F RIDAY E V ENING Get ready for play time after a productive day! 6-7 p.m.: Ladies Auxiliary will host an evening made for the stars – a great dinner and lots of entertainment. 7 p.m.: Our charity auction will be held right after dinner. You will not want to miss the Ladies Auxiliary’s auction with lots of

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auction items, all for a great cause. We always need more items and donations to the auction. This all goes toward the scholarship program as well as other charities like our very own Make-A-Wish program.

S AT URDAY M ORNING 8-9 a.m.: Big Breakfast with Our Guest Speaker 9:15-10:15 a.m.: Ken Shilson, president of National Alliance of Buy Here Pay Here Dealers. Ken will be speaking on “Subprime Auto Finance is Booming: Getting Your Share!” Ken Shilson’s presentation on subprime analytics is the top in the industry. If you want to learn the important BHPH underwriting fundamentals, you can’t afford to miss him! 10:15-10:30 a.m.: Coffee Break with Our Exhibitors. We will give away door prizes to the attendees of Ken Shilson’s meeting. 10:30-11:30 a.m.: Dealer Panel Discussion Part Two. Meet with, ask questions and listen to State of Alabama Department of Revenue, Alabama Department of Motor

Vehicle Division, Director of Tax Policy & Research Division and ETAPS, Lisa Blankenship, and Mike Gamble. 11:30-11:50 a.m.: Coffee Break with Our Exhibitors. We will give away door prizes to the attendees of the Dealer Panel Discussion Part Two meeting. 11:50 a.m-1:30 p.m.: For the first half Larry Carter will speak on payment collection for the BHPH dealer. The second half will be Wayne Reeves Dealer Management Software & Frazer Dealer Management Software. 1:30-6:30 p.m.: Free Time – See some of the sites!!

S AT URDAY E V ENING 6:30-9 p.m.: Grand Banquet • We will have our drawing for $500 cash, so make sure to go by each exhibitor and get your card signed! • A proud moment – Quality Dealer Award (begins after everyone is served). • Installation of Officers for 2016-2017. • What everyone has been waiting on – the $10,000 drawing.

AIADA

In Closing… We are extremely proud of the convention this year. We will celebrate the achievements of AIADA President Paul Claborn and welcome our incoming president Pokey Brimer. Alabama and her residents have gone through a lot this year, as well as our country. The upcoming presidential election will be one for the record books. The world as we know it has been changing around us. This convention will give you some of the best tools in our industry to help you build and grow your dealership in today’s marketplace. We will continue to bring our dealers the best education money can buy. We are still setting up workshops and will add more and more to this venue. Be sure to thank the vendors/exhibitors at this convention – they paid for all the meeting rooms, speakers’ expenses, compliance classes and more. They want you to have the best convention possible. Your success is very important and they are willing to go the extra mile for you!

You can’t afford to miss this! Sign up today!

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A S SO CI AT ION NE W S

Personal Invitation to AIADA Convention

JULY 22-23 AT THE CHATTANOOGAN

Dear fellow dealers: The Alabama IADA 2016 State Convention is a month away, and plans are being finalized for an exciting time at The Chattanoogan in Chattanooga, Tenn., July 22-23. We would like to extend a personal invitation to you and your family to attend the 47th Annual Convention. The convention begins Friday at 8:00 a.m. and ends on Saturday after the Grand Banquet, where we have the $10,000 drawing. Be sure to call the association office to purchase a ticket. We have a great program planned with information for you that will be very beneficial to your business, the fellowship of other dealers, education and great food in a wonderful, fun atmosphere. The Chattanoogan is located in the heart of downtown Chattanooga with spectacular views of Lookout Mountain.

Chattanooga has top-notch attractions for all ages in the family: Tennessee Aquarium, IMAX Theater, Rock City, Ruby Falls, Incline Railway, Southern Belle Riverboat, Chattanooga Ducks and Civil War history. They also have rock climbing, day hiking, caving, hang gliding, whitewater rafting and flatwater paddling. The ladies auxiliary will be in charge of the Friday night event, and it will be a night of fun and entertainment. There will be prizes to give away and other excitement. We are really excited about our program and hope to see you there. To register, complete and return the enclosed registration form to the association office. We will have an early bird drawing for dealers who get their registrations in by May 31. Hotel reservation: Please reserve your room directly with the hotel using Group ID #554313. For reservations call 1-800619-0018 and ask for “group reservations.” The cut-off date is June 21. You can also go to www. chattanooganhotel.com, put in your dates of stay then click on groups and enter the group ID above. Make your reservation now! You can always cancel if you

decide you can’t make it. Your registration fee includes five meals, entertainment on Friday night, eligibility for door prizes, all classes, vendors and speaker sessions. We have a $10,000 drawing on Saturday night. Tickets are $100, which you can purchase by calling Judy at the association office or one of the Board Members. We will also have a $500 cash drawing, and to be eligible for this you have to visit the vendors. The more vendors you visit the better your chances. We hope you will come and join us for this educational and exciting event!

We look forward to seeing you and your family in Chattanooga. We can guarantee you will see a return on your investment when you attend. If you have any questions, please call the association office at 205-942-1000 or 800-2392423. Note: If you are interested in playing golf contact Charlie Baker at: bakerc1911@gmail.com or call the association office. Sincerely, Paul Claborn State President Randy Jones Executive Director Judy Benton Office Manager

2016 AIADA STATE CONVENTION GOLF TOURNAMENT Thursday, July 21 GET YOUR TEAM REGISTERED BY JULY 15 TO BE PART OF THE FUN! A scramble start golf tournament will be held Thursday, July 21. Tee time will be 8:00 a.m. at Brown Acres Golf Course (short drive from hotel): Brown Acres Golf Club is a golf only facility with 30 tees, driving range, and 18 regulation holes. Municipal golf course: 72 par- 6.742 yards- 122 slopes 72.5 rating with Bermuda grass. ASC Warranty will provide awards for low gross and low net scores.

406 BROWN ROAD, CHATTANOOGA, TN 37421-3914 • PHONE: 423-855-2680 FAX: 423-855-9436.

Company Name Player

Player

COST: Approximately $50 for green fees, cart and warm up. (Fees will be collected at pro shop. All costs are ala carte.) FAX OR MAIL COMPLETED FORM TO OUR OFFICE: FAX: (205) 942-3565 MAIL: AIADA • P. 0. BOX 19627 • BIRMINGHAM, AL 35219

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A .I. A .D. A . F ORMS

A.I.A.D.A. FORMS

Designated agent#________________ Dealer License#___________________ Residential _____Commercial Address_______ Dealership____________________________________________Contact______________________________Date_________ Address______________________________________________________City__________________St_____Zip__________ Phone_________________________Fax___________________Email_____________________________Member ⁭Yes ⁮No QTY DESCRIPTION MEMBER PRICE TOTAL NON MEMBER PRICE TOTAL _____ FTC Window Stickers Buyers Guide/2Part NCR paper

$16.00 per 100

_______

$20.00 per 100

_______

_____ Title Supplemental Reassignment Forms (MVT 8-3)

$18.00 per 100

_______

$22.00 per 100

_______

_____Odometer Forms/3 part/NCR paper

$16.00 per 100

_______

$20.00 per 100

_______

_____Odometer Disclosure Statement (Sales Trans –New Car)

$16.00 per 100

_______

$20.00 per 100

_______

_____Secure Power of Attorney (MVT 8-4)

$20.00 per 100

_______

$22.00 per 100

_______

_____Secure Affidavit of Correction (MVT 5-7)

$20.00 per 100

_______

$26.00 per 100

_______

_____Authorization for Payoff/Demand for Title

$ 7.75 per 100

_______

$11.25 per 100

_______

_____Agreement & Acknowledgement of Good Will Service

$10.00 per 100

_______

$16.25 per 100

_______

_____Blank Bill of Sale with Disclaimer (2 Parts)

$22.00 per 100

_______

$26.00 per 100

_______

_____Vehicle Invoice Bill of Sale (3 Part)

$28.00 per 100

_______

$34.00 per 100

_______

_____Arbitration Agreements (2 Part NCR)

$25.00 per 100

_______

$34.00 per 100

_______

_____Credit Applications

$14.00 per 100

_______

$16.00 per 100

_______

_____Damaged Vehicle Disclosure Prior Body Repair

$ 9.00 per 100

_______

$15.00 per 100

_______

_____Warranty Disclaimers-AS IS (not for window display)

$16.00 per 100

_______

$18.00 per 100

_______

_____Affidavit for Out of State Vehicles

$15.00 per 100

_______

$16.00 per 100

_______

_____Disclosure of Prior Use of Vehicle

$22.00 per 100

_______ $26.00 per 100

_______

_____No. 14 Inventory File Jackets (9 ½ X12)

$30.00 per 100

_______

$40.00 per 100

_______

_____General Power of Attorney (MVT 5-13)

$15.00 per 100

_______

$18.00 per 100

_______

_____UCC “Notice of Our Plan to Sell Property” (repossession)

$ 6.25 per 50

_______

$10.00 per 50

_______

_____UCC “Explanation of Surplus or Deficiency” (repossession) $ 6.25 per 50

_______

$10.00 per 50

_______

_____Agreement to Provide Insurance /2 Part NCR

$20.00 per 100

_______

$28.00 per 100

_______

_____Test Drive Agreement-2 Part NCR

$20.00 per 100

_______

$23.00 per 100

_______

_____TAG APPLIED FOR TAGS

$ 2.00 EACH

_______

$ 2.50 EACH

_______

_____Buy Here Pay Here Guide-170 pg book-Laws $250.00 & Regulations, Sample Letters prepared by John Galese/Association Attorn

SHIPPING RATE CHART ON BACK VISA, MC, DISC, AMEX FORM ON BACK RESIDENTIAL CHARGES ON BACK

________

$350.00

________

Sub Total _________ Sub Total __________ Shipping & handling __________ Shipping & Handling ___________ SUB TOTAL __________ SUB TOTAL __________ 4% State Sales Tax __________ 4% State Sales Tax ___________ (only if business is in Jeff. Co) 6% Jeff. Co. Tax __________ 6% Jeff. Co. Tax ___________ (see chart on back for Residential Shipping Charge __________ Residential Shipping Chg __________ TOTAL __________ TOTAL __________

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SHIPPING CHARGES

We also have a NABCO catalog you can order pendants, flags, banner, key tags, decal, etc. If you wish a catalog, check the yes below. As a member you will receive up to 25% discount on these items. Yes, I want a catalog ______

PLEASE US THE CHART BELOW TO DETERMINE THE AMOUNT FOR

We also have a NABCO catalog you can order pendants, flags, banner, key tags, SHIPPING YOUR ORDER decal, etc. If you wish a catalog, check the yes below. As a member you will receive up to 25% discount on these items. MEMBER SHIPPING & HANDLING CHART Yes, I want a catalog ______

NON MEMBER SHIPPING & HANDLING CHART

AMOUNT UPS AMOUNT UPS PLEASE US THE CHART BELOW TO DETERMINE THE AMOUNT FOR UP TO $25.00 $11.50 UP TO $25.00 $11.75 SHIPPING YOUR ORDER $26.00 TO $50.00 13.00 $26.00 TO $50.00 13.75 $51.00 TO $100.00 17.00 $51.00 TO $100.00 20.00 MEMBER SHIPPING NON MEMBER HANDLING CHART $101.00 AND UP & HANDLING 20.00 CHART $101.00 AND UP SHIPPING &22.75 AMOUNT UPS AMOUNT UPS ****CASES BE WEIGHED AND CHARGED ACCORDINGLY.$11.75 UP TO $25.00 OF FORMS WILL $11.50 UP TO $25.00 $26.00 TO $50.00 13.00 $26.00 TO $50.00 13.75 $51.00 TO $100.00 17.00 $51.00 TO $100.00 20.00 RESIDENTIAL CHARGES: $101.00 AND UP SHIPPING 20.00 $101.00 AND UP 22.75

→ADD $2.00 FOR RESIDENTIAL SHIPPING ADDRESS

****CASES FORMS WILL BE WEIGHED AND CHARGED →ADD $2.50OFFOR RURAL RESIDENTIAL SHIPPING ADDRESS ACCORDINGLY.

→ADD $2.00 FOR RURAL COMMERCIAL SHIPPING ADDRESS

RESIDENTIAL SHIPPING CHARGES: →ADD $2.00 FOR RESIDENTIAL SHIPPING ADDRESS →ADD FOR RURAL RESIDENTIAL SHIPPING MAKE$2.50 CHECKS PAYABLE TO A.I.A.D.A., P OADDRESS BOX 19627, BIRMINGHAM, AL 35219 →ADD $2.00 FOR RURAL COMMERCIAL SHIPPING ADDRESS

MAKE CHECKS PAYABLE TO A.I.A.D.A., P O BOX 19627, BIRMINGHAM, 35219 IS IN * MEMBERS MAY FAX ORDER TO 205-942-3565 AND BE BILLED IF YOURALACCOUNT

GOOD STANDING.

* MEMBERS MAY FAX ORDER TO 205-942-3565 AND BE BILLED IF YOUR ACCOUNT IS IN * NONSTANDING. MEMBERS CAN FAX ORDER IF CHARGED TO VISA, MASTERCARD, DISCOVER OR GOOD * AMERICAN NON MEMBERS CAN FAX ORDER IF CHARGED TO VISA, MASTERCARD, DISCOVER OR EXPRESS. AMERICAN EXPRESS.

NOTE:Orders Ordersreceived receivedwithout withoutproper propersales salestax tax and and shipping shipping charges charges cannot cannot be NOTE: be processed. processed. Email: Email:judypbenton@gmail.com judypbenton@gmail.com Website: www.alabamaiada.com

Website: www.alabamaiada.com

PLEASE FILL IN IF YOU WANT TO CHARGE ON YOUR VISA, MASTERCARD, DISCOVER OR AMEX:

PLEASE FILL IN IF YOU WANT TO CHARGE ON YOUR VISA, MASTERCARD, DISCOVER OR AMEX: CREDIT CARD TYPE: MASTERCARD_____VISA_____DISCOVER_____AMEX_____

EXPIRATION DATE_______________________CVV#_______________(3 or 4 Digit Code CREDIT CARD TYPE: MASTERCARD_____VISA_____DISCOVER_____AMEX_____ on front or back of credit card) CARD # ___________________________________________________________________ EXPIRATION DATE_______________________CVV#_______________(3 or 4 Digit Code

on front or back of credit card)

CARD NAME:________________________________________________________________ ADDRESS FOR CARD_________________________________________________________ SIGNATURE:_________________________________________________________________ CARD # ___________________________________________________________________ revised 09/13

revised 09/13

AUCTION DIRECTORY ABC – ATLANTA 444 Joe Frank Harris Parkway Cartersville, GA 30120 Sale every Tuesday 6 p.m. & Friday 11 a.m. Phone: (770) 382-1010

GREATER NEW ORLEANS AUTO AUCTION 61077 St. Tammany Ave. Slidell, LA 70460 Sale every Wednesday 9:30 a.m. Phone: (504) 643-2061

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

HIGHWAY 101 DEALERS AUTO AUCTION 2100 Hwy. 101 Rogersville, Al (256) 247-3600 Sale Day – Thursday 10:30 a.m.

ADESA ATLANTA AUTO AUCTION 5055 Oakley Industrial Blvd. Fairbum, GA 30213 Sale every Wednesday 8:30 a.m. Phone: (770) 357-2277

KELLEY AUTO AUCTION 3485 US Hwy. 431 Attalla, AL 35954 Sale every Tuesday night Phone: (256) 538-9095

ADESA OF BIRMINGHAM 804 Sollie Dr. Moody, AL 35004 Sale every Monday 6:30 p.m. & Wednesday 9 a.m. Phone: (205) 640-1010

LONG BEACH AUTO AUCTION, INC. 8494 County Farm Rd. Long Beach, MS 39560 Sale every Wednesday 3 p.m. Phone: (228) 452-2030

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

LOUISIANA’S 1ST CHOICE AUTO AUCTION 18310 Woodscale Rd. Hammond, LA 70401 Sale every Tuesday 8:30 a.m. Phone: (985) 345-3302

ADESA OF MEMPHIS 5400 Getwell Rd. Memphis, TN 38118 Sale every Tuesday 9 a.m. Phone: (901) 365-6300

MANHEIM CENTRAL FLORIDA 9800 Bachman Rd. Orlando, FL 32824 Sale every Wednesday 9 a.m. Phone: (407) 438-1000

ALBANY AUTO AUCTION 1421 Liberty Expressway SE Albany, GA 31702 Sale every Thursday 6:30 p.m. Phone: (229) 435-7709

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

ATLANTA AUTO AUCTION 4900 Buffington Rd. Red Oak, GA 30272 Sale every Thursday 9 a.m. Phone: (404) 762-9211 AUTO AUCTION OF MONTGOMERY 6142 Troy Highway Pike Road, AL 36064 Sale: every Thursday 10:00 a.m. Phone: (334) 288-3399 BAMA AUTO AUCTION 4103 Gault Avenue South Ft. Payne, AL 35967 Sale: every Thursday 6:00 p.m. Phone: (256) 304-0947 BIRMINGHAM AUTO AUCTION 125 Meadland Circle Birmingham, AL 35023 Sale every Thursday 6 p.m. Phone: (205) 744-4030 CENTER POINT AUTO AUCTION 100 13th Ct. NE Birmingham, AL 35215 Sale every Monday 6 p.m. Phone: (205) 856-6527 CHATTANOOGA AUTO AUCTION Chattanooga Auto Auction, Public Sale every Tuesday @ 6:30 PM, Dealer Sale Thursday @ 10:00 AM and IN-OP sale begins 9:00 on Thursdays DEALERS AUTO AUCTION OF HUNTSVILLE 26125 Hwy 72 Athens, AL 35613 Sale every Tuesday 9:30 a.m. Phone: (256) 232-0201 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

MANHEIM MISSISSIPPI 7510 US Hwy. 49 N Hattiesburg, MS 39402 Sale every Monday 5 p.m. & Thursday 9 a.m. Phone: (601) 268-7550 MANHEIM METRO ATLANTA 2244 Metropolitan Pkwy SW Atlanta, GA 30315 Sale every Tuesday noon Phone: (404) 767-3652 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 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

GEORGIA DEALERS’ AUTO AUCTION 7205 Campbellton Rd. Atlanta, GA 30331 Sale every Tuesday 10 a.m. Phone: (404) 349-5555

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DE A L ER B ES T P R AC T ICES

Regulatory Compliance Starts with Data Accuracy DON’T OMIT THIS CRITICAL DETAIL BY CHET HEUGHAN

How many times have you heard the phrase “The devil is in the details”? That statement has never been more applicable to automotive dealers than it is today. When considering financial risks to their businesses, most dealership owners and managers tend to spend more time focused on issues such as hidden damage on vehicles purchased at auction, aging inventory, contracts in transit and the possibility of another downturn in the economy while often omitting an issue of critical importance to their business. One of the largest risks to a dealer’s financial future is accuracy – or better stated, the lack of accuracy – in loan documentation. Inaccurate sales documentation in financed transactions can create a lingering risk to your business. Your risk starts from the time you submit a credit application to the lender. Something as simple as an incorrect bookout submitted along with the credit application to a lender can create an ongoing financial liability. For example, if you submit a credit application that incorrectly states a Nissan Altima has an SL trim package when really it was an S trim package, your dealership could be responsible for the difference between the stated value and the actual collateral value. Many lenders will audit the loan documentation when a loan results in a repossession and subsequent charge-off. If the lender finds the dealer overstated equipment, which inflated the stated value of the collateral, the dealer will likely be requested to compensate the lender for the difference. In the past this could cost dealers several hundred dollars to a few thousand dollars, in addition to creating tension

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M A RK E T WAT CH between the dealer and its retail lender. Today, however, with advancements in technology the stakes are higher for dealers as lenders now see this behavior as a red flag. Lenders can easily audit a dealer’s entire portfolio by using technologies that use vehicles’ VIN numbers to access the actual manufacturer’s build sheet for a vehicle in question, leaving no doubt as to exactly which loans contained “power booking.” This could result in the lender terminating their relationship with the dealer and requesting a larger demand letter. Compliance and accuracy go hand in hand. Repeatedly making simple mistakes when completing forms, or using the wrong forms to document a transaction, can appear to be predatory or deceptive. Inadvertent noncompliance with state and federal guidelines when preparing loan documents can be another area where risk can accumulate over time. A typical retail installment contract can contain more than 150 fillable fields. Making sure the correct information goes into each field may seem like a no-brainer, but what if you’re selling four aftermarket products and your retail installment contract only provides three lines to disclose the information? Some dealers simply combine two of the products or include the product in the selling price. These aren’t good ideas! This approach may pass a lender’s due diligence process, so it must be compliant, but don’t rely on the lender to be your failsafe. Lenders are not perfect and they don’t catch everything. This issue could be caught months or years later during an audit of the lender’s indirect loan files or it could be questioned by your customers. What was a simple solution to a problem caused by not having enough lines on the contract could easily be viewed as nondisclosure or as deceptive and predatory practices, which can carry large financial penalties or be the basis of a consumer lawsuit. Choosing the right loan documents that are up to date with current legislation along with the enhanced market features needed to support the sale of the many insurance and

W W W. A L A B A M A I A D A . C O M

Gen Z Prefers Face-to-Face Interactions AUTOTRADER AND KELLEY BLUE BOOK STUDY

ONE OF THE LARGEST RISKS TO A DEALER’S FINANCIAL FUTURE IS ACCURACY — OR BETTER STATED, THE LACK OF ACCURACY — IN LOAN DOCUMENTATION. aftermarket products available in the market today is a sure way to reduce noncompliance and ultimately financial risk. Using the same old loan documents you’ve always used or the free documents made available from your lender may not be the best practice. Choosing a loan documentation supplier that warrants their product, has a comprehensive program for monitoring pending and enacted regulations, and completes timely revisions of their products can go a long way to reducing your compliance risks. Of course, there are many more risks to your business – market conditions, competition and availability of inventory, just to name a few. Many of these risks are outside your control, but you can control a large portion of your risk by demanding data accuracy from your staff and the vendors who provide you with products and services. Chet Heughan is director of AppOne® Risk Mitigation Services and Indirect Lending for Wolters Kluwer. For more information, please visit www.wolterskluwerfs.com.

Generation Z – individuals up to 17 years of age – may have grown up with more access to technology than Millennials, but buying online isn’t in the cards for this emerging demographic, according to a joint study conducted by Autotrader and Kelley Blue Book. “Gen Z accounts for nearly a quarter (23 percent) of the population right now, and by 2020 this group will translate to $3.2 trillion in purchasing power, which is larger than the GDP of some small countries,” said Isabelle Helms, vice president of research and market intelligence for Cox Automotive. “While they will have access to some serious cash, they will be cautious about how they spend their money, a trait that makes Gen Z markedly different than their Millennial counterparts.” While Gen Z is full of technology natives, only 26 percent of them said they wanted to buy a car online in the future. Sixty-eight percent of them said face-to-face interactions during their vehicle transaction was important and 54 percent claimed they would need to test drive a vehicle before making a purchase. The study further found that while the environmental impact of a vehicle is important to Gen Z the majority of respondents said cost was the most important aspect of a vehicle purchase. When asked on their opinion, more respondents said it was the gas savings rather than impact on global warming that would sway them toward environmentally friendly vehicles. “What worked for marketing to Millennials will not work for Generation Z because some of the defining traits of Millennials do not hold true for the next generation of car shoppers,” Helms said. “The best news from this research is that auto sales are not going to take a hit because of this generation. In fact, it may prove to be quite the opposite. Their love for cars and driving is very much alive.”