FEBRUARY/MARCH 2011
WEST COAST DEALER
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
O F
C A L I F O R N I A
A BONDING EXPERIENCE LSO ADESA Sacramento Celebrates 13 Years A PLUS Tax Season is Growing Again
DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage
V isit us at w w w.iadac.org
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INSIDE INSIDE INSIDE
EXECUTIVE COMMITTEE EXECUTIVE COMMITTEE EXECUTIVE COMMITTEE
MAGAZINECONTENTS
6 President’s Message MAGAZINECONTENTS MAGAZINECONTENTS 10 Tax Season is Growing Again
6 8 13 14
66 12IADAC Named IADAC Quality Dealer of the Year ADESA Sacramento 13 Year Years 6 Named IADAC Quality Dealer of Named Quality Dealer of the Year Named IADAC QualityCelebrates Dealer of the the Year 88 16Standards Auction Standards Help Customers A Bonding Experience 8 Auction Standards Help Auction Help Customers Auction Standards Help Customers Customers 13 Credit Do’s 13 Credit Applications Do’s & Don’ts 13 Applications Credit Applications Applications Do’s & & Don’ts Don’ts Credit Do’s & Don’ts 14 Striking Gold: IADAC’s 42nd Annual Convention 14 Striking Gold: IADAC’s 42nd Annual 14 Gold: Striking Gold: IADAC’s 42nd Convention Annual Convention Convention Striking IADAC’s 42nd Annual
NIADA/Manheim
THE CURRENT STATE Award THE CURRENT STATE Community Service OF THE AUTO INDUSTRY OF THE AUTO INDUSTRY OF THE AUTO INDUSTRY Manheim, the world’s largest provider of
John McElroy is host of the long-running “AutoJohn McElroy is host of the long-running “Autovehicle remarketing services, cares aboutall asline Detroit” television program, covering line Detroit” television program, covering line Detroit” covering and all asits television employees,program, the environment the all asof the automotive industry. In this presentapects of the automotive industry. In this presentapects ofpects the automotive industry. In this presentacommunities it serves. From fund raising tion, McElroy provides a thorough and insightful drives to tutoring kids after school to tion, McElroy provides a thorough and insightful review of where we’ve been, where long-term review ofsupporting where we’ve been,conservation where we efforts, nowwe now and our where industry headed. Manheim andindustry itsour employees areisdedicated are, andare, where is headed. TapedtoTaped at the Automotive Fleet & Leasing Association’s giving back to their communities and knows at the Automotive Fleet & Leasing Association’s at the Automotive Fleet & Leasing Association’s Annual Conference. independent vehicle dealerships across the Annual Conference. Annual Conference. country share in this commitment.
CLASSES For the first time this year, Manheim is CMD CMD CLASSES
Rod Davis Rod Rod Davis Rod Davis RodDavis Davis President PresidentPresident President President Brasher's Auto Auction Brasher's Auto Auction Brasher'sBrasher's Auto Auction Auto Auction Brasher’s Auto Auction Rio Linda, CA 95673 Rio Linda, CA 95673 Rio Linda, CA 95673 Rio Linda, CA 95673 Rio --Linda, CA 95673 916 991 5555 916 991 5555 916 - 991 - 5555 916 - 991 - 5555 916 - 991 - 5555 rdavis@brashers.com rdavis@brashers.com rdavis@brashers.com rdavis@brashers.com rdavis@brashers.com
Terry Degmetich Terry Terry TerryDegmetich Degmetich Terry Degmetich Degmetich Secretary Secretary Secretary Secretary Secretary I Deal Cars I Deal I -I Deal Cars I - Cars Deal Cars Cars - Deal Roseville, CA 95678 Roseville, CA Roseville, CACA 95678 Roseville, CA 95678 95678 Roseville, 95678 916-8709254 916-8709254 916-8709254 916-8709254 916-8709254 idealmaster@surewest.net idealmaster@surewest.net idealmaster@surewest.net idealmaster@surewest.net idealmaster@surewest.net Vince Cardinale Vince Vince Cardinale Vince Cardinale Cardinale
David Aah1 David DavidAah1 Aah1 David Aah1 David Aah1 Chairman of the Board Chairman of the Board Chairman Board Chairman ofof thethe Board Chairman of the Board North Bay Auto Auction North Bay Auto Auction North Auto Auction North Bay Auto Auction North Bay AutoBay Auction Fairfield, CA 94534 CA 94534 Fairfield, CA 94534 Fairfield,Fairfield, CA 94534 Fairfield, 94534 707 --- 864 ---CA 1040 707 864 1040 707 864 1040 707 - 864 - 1040 707 - 864 - 1040 david@nbauto.com david@nbauto.com david@nbauto.com david@nbauto.com david@nbauto.com
Vice President Vice VicePresident President Vice President President Vice AAMotors to ZZ Motors Motors to ZA to Z Motors AAtotoZ Motors Winters, CA Winters, CA 95694 Winters, CA 95694 95694 Winters, CA 95694 Winters, CA 95694 925-914-9199 925-914-9199 925-914-9199 925-914-9199 925-914-9199 atozmotors1@aol.com atozmotors1@aol.com atozmotors1@aol.com atozmotors1@aol.com atozmotors1@aol.com
Mark MarkGlover Glover Mark Glover Mark Glover Mark Glover Sr. President Sr.Vice Vice President Sr. Vice President Sr. Vice President Sr. Vice President Azteca Auto Sales Azteca Auto Sales Azteca Auto Sales Azteca Auto Sales Azteca Auto Sales Galt, CA 95632 Galt, CA 95632 Galt, CA 95632 Galt, CA 95632 Galt, CA209-712-1886 95632 209-712-1886 209-712-1886 209-712-1886 209-712-1886 mark@countyfinancial.com mark@countyfinancial.com mark@countyfinancial.com mark@countyfinancial.com mark@countyfinancial.com
Rick Gomez Rick Rick Gomez Rick Gomez Gomez Rick Gomez Vice Vice President Vice President Vice President President Vice President RJ Auto Auto Brokers RJ Auto Brokers RJ Auto Brokers Brokers RJRJAuto Brokers Carmichael, CA Carmichael, CA 95608 Carmichael, 95608 Carmichael, CA 95608 95608 Carmichael, CACA 95608 916-425-3349 916-425-3349 916-425-3349 916-425-3349 916-425-3349 rgomez739@yahoo.com rgomez739@yahoo.com rgomez739@yahoo.com rgomez739@yahoo.com rgomez739@yahoo.com
LarryLaskowski Laskowski Larry Larry Laskowski Larry Laskowski Larry Laskowski The Auto Outlet Treasurer Treasurer Treasurer TreasurerThe Roseville, CA 95678 Auto Outlet The Auto Outlet The Auto Outlet The AutoRoseville, Outlet CA Roseville, CA 95678 916-784-3408 Roseville, CA 95678 95678 Roseville,916-784-3408 CA 95678 916-784-3408 autoview@surewest.net 916-784-3408 916-784-3408 autoview@surewest.net autoview@surewest.net autoview@surewest.net autoview@surewest.net
Mike Casey Mike Mike Casey Mike Casey Casey Mike ViceCasey President Vice President Vice President ViceMotors President Vice CalPresident West Cal West Motors Cal West Cal West Motors Motors Cal West Motors San Leandro, CA 94577 San Leandro, CA 94577 San CA San Leandro, Leandro, CA 94577 94577 San Leandro, CA 94577 510-352-9230 510-352-9230 510-352-9230 510-352-9230 510-352-9230 clwest1977@aol.com clwest1977@aol.com clwest1977@aol.com clwest1977@aol.com clwest1977@aol.com
I
M
Vince Cardinale
recognizing anddemonstrate honoring thosecommitment dealerships and Dealers who Dealers who the demonstrate commitment and Dealerssupport who demonstrate commitment andbusiness by awarding 2011 National Manheim the principles and ethical Mike Macaulay, IADAC Magazine/Website Chairman support the principles and ethical business Service the 65th support Community the principles and Award ethicalat business carsystems@comcast.net standards of the CMD® designation comNIADA Annual Convention and Expo. standards of the CMD® designation complete a four-day seminar that addresses BusiFor information on that how to nominate Busiand to plete a ness four-day seminar addresses Mike Magazine Committee Chair • Car Mike Macaulay, Macaulay, Magazine Committee Car Systems Systems Management, Financial Magazine Committee Chair Chair • Car•Systems ness Management, Merchandising, Financial Mike Macaulay, obtain more Merchandising, in-depthMerchandising, information, please Roseville, CA • 916-784-7155 • carsystems@comcast.net ness Management, Financial Roseville, CA • 916-784-7155 • carsystems@comcast.net Management, Human Resources, and Business Roseville, CA • 916-784-7155 • carsystems@comcast.net contactHuman GeorgiaHuman Brown,Resources, NIADA director of Management, and Business Management, Resources, and Business Planning. University education,Northwood at 817-640-3838 or see provides page 20. the inPlanning. Northwood University provides the instructor and awards four Continuing Education structor and awards four Continuing Education units for this course. ADVERTISERSINDEX THE NEXT CLASS WILL BE MARCH 10-12 units for this course.
A
CMD Classes
Carfax Is Here Help Carfax Is Here To To Help
The next next class will will be March March 10-12 at at the SuperMedia SuperMedia The The next class class will be be March 10-12 10-12 at the the SuperMedia Action Auto ..................................16 The next Hotel class will be Recovery March 10-12 atat the SuperMedia and Conference Center DFW. Hotel and Conference Center at DFW. Hotel and Conference Center at DFW. Dealers whoEditor: demonstrate commitment and support the principles and ethical is business stan-here to help, espec ADESA ..................................................... 13 Hotel and Conference Center at DFW. Dear Carfax always Dear is always here Allen L. Hawkins Insurance Services.............. 9 dardsEditor: of the CMD® designation complete a four-day seminarCarfax that addresses Business Man-to help, especially on the rare occasions that data researc AutoTrader.com ................. Inside Front Cover agement, Merchandising, Financial Management, Human Resources, and Business Planning. on the rare occasions that data research is Black Book..................................................17 Carfax is constantly lookingand forawards ways four to Continuing needed.Education Inconsistent Northwood University provides the instructor units for odometer readings Brasher’s Sacramento Auto Auction... Back Cover Carfax isTheconstantly looking ways needed. Inconsistent odometer readings, for Action Auto Recovery .............................................. 66 this course. next class will Marchfor 10-12 atservice theto SuperMedia and Conference Action Auto Recovery further improve thebeexceptional we Hotel example, can raiseCena red flag but may be Action Auto Recovery.............................................. ..............................................6 Cars.com ....................................................11 Action Auto Recovery .............................................. 6 further improve the exceptional service we example, can raise a red flag but may be the ter at DFW. Visit niada.com for more information. Allen L. Hawkins Insurance Services ....................... 9 Allen Hawkins Insurance 99 LobelL. 7 Allen L.Financial Hawkins............................................. Insurance Services Services ....................... ....................... provide our independent dealer customers. results of simple human error. We’ve ma Allen L. Hawkins Insurance Services ....................... 9 Cover Manheim.com. ..................... InsideInside Back Cover AutoTrader.com ............................ Inside Front Cover provide our independent dealer customers. results of simple human error. We’ve it AutoTrader.com ............................ Front AutoTrader.com ............................ Inside Front Cover We have a dedicated team of professionals easier for dealers to initiate the made process Nowcom...................................................... AutoTrader.com ............................ Inside Front Cover 5 13 Black Book ............................................................. 13 We have a dedicated team of professionals easier for dealers to initiate the process and Black Book ............................................................. Black Book ............................................................. 13 SmartAuction ............................................ 15 that handles any customer requests quickly. get a faster resolution. We’re helping our Black Book ............................................................. 13 3 Cover Brasher’s Sacramento Auto Brasher’s Sacramento Auto Auction ........ Back Cover Western General / Protective....................... get a faster resolution. We’re helping our cusBrasher’s Sacramento Auto Auction Auction........ ........Back Back Cover that handles any customer requests quickly.
ADVERTISERSINDEX ADVERTISERSINDEX
BREAKING NEWS! BREAKING NEWS! BREAKING NEWS! BREAKING NEWS!
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Back Cover Cars.com ......................................Inside Back Cover Cars.com ......................................Inside ......................................Inside Back Back Cover Cover As a result of our tireless efforts, I am proud Check outkeeping the newly tomers manage a more efficient business and N NATIONAL INDEPENDENT Cars.comDealerClick ......................................Inside Back Cover to say that we have streamlined our data retheir operations running smoothl DealerClick .............................................................. 55 redesigned IADAC website .............................................................. 5 A DealerClick .............................................................. redesigned IADAC website AUTOMOBILE DEALERS ASSOCIATION to say that we have streamlined our data rekeeping their operations running smoothly. DealerClick .............................................................. 5 J. L. ..................................... process. redesigned Any IADAC website dealer in California that has qW • WWW.NIADA.TV J.J.WWW.NIADA.COM L. Von Arx & Associates ..................................... 12 L. Von Von Arx Arx & & Associates Associates .....................................12 12 searchsearch at www.iadac.org. process. Any dealer in California that has quesNIADA HEADQUARTERS: It saddened me to with learn that IADAC was changing J. L. Von Manheim Arx & Associates ..................................... 12 10, ItThe hasresearch been process Advantage....................................... at www.iadac.org. is easily started tions about their Carfax its account or the Manheim Advantage....................................... 10, 11 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 Manheim Advantage....................................... 10, 11 11 at PHONE (817) 640-3838 business model with andwww.iadac.org. would no longer need the services The research process is easily started tions about their Carfax account or the data ManheimSmartAuction Advantage....................................... 10, 11 wonderful SmartAuction .......................................................... 7 .......................................................... 7 FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF just a few simple steps. Any Carfax-subscribWe want to know what you research process can call Carfax Busi SmartAuction .......................................................... 7 We want to know what you (800).......................................................... 682-3837 OR TROY@NIADA.COM. of AdvoCal. working with SmartAuction 7 Western Funding ................................................... 16 just a few simple steps. Any Carfax-subscribresearch process can callyou Carfax Business Western Funding ................................................... 16 We want to know what Services at 888-695-1885. It is our Western Funding ................................................... 16 ing dealer in California can access their CarServices at 888-695-1885. It is our plea plea THE WEST COAST DEALER IS PUBLISHED BI-MONTHLY BY THE has been wonderful working withthe members of IADAC members ofat carfaxonline.com. Western Western Funding ................................................... 16 /// Protective 3 think of new site. Let dealer in California canItaccess their Car- click Western General Protective .................................. 33 ingthe Services atthe 888-695-1885. It is us our pleasure NATIONAL General INDPENDENT AUTOMOBILE DEALERS ASSOCIATION Western General Protective.................................. .................................. fax account Next, to serve you. fax account at carfaxonline.com. Next, click to serve you. SERVICES CORPORATION, 2521 BROWN BLVD., ARLINGTON, for the past three years. I have thoroughly enjoyed my short think of the new site. Let us IADAC for the Western General / Protective.................................. 3 fax account atwhich carfaxonline.com. Next, click tobringing serveby you. TX 76006-5203; PHONE (817) 640-3838. PERIODICALS POSTAGE the link you directly the know at the to association, ine-mailing new benefits,us helping past three the linkyears. which takes takestime youwith directly to the online online PAID AT DALLAS, TX AND AT ADDITIONAL OFFICES. POSTMASTER: know by e-mailing us at the linkData which takes you directly to the online SEND ADDRESS CHANGES TO NIADA STATE PUBLICATIONS, 2521 Correction Form. After submitting the Sincerely, dealers stay in compliance, touring the state helping to grow the Data Correction Form. After submittinggetanswers@iadac.org. the Sincerely, FOR ON HOW TO BROWNINFORMATION BLVD., ARLINGTON, TX 76006-5203. THE STATEMENTS getanswers@iadac.org. Data Correction Form. After submitting the Sincerely, AND OPINIONSA EXPRESSED HEREIN ARE THOSE OF THE INDImembership and learning about the automotive industry. I’ve form with the 17-digit vehicle identification FOR INFORMATION ON HOW TO BECOME MEMBER PLEASE CONTACT getanswers@iadac.org. form with the 17-digit vehicle identification VIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE LALBRACHT@IADAC.ORG metresearch, some wonderful people along theSloan way and cherish those BECOME A OF MEMBER PLEASE CONTACT form with the and 17-digit vehicle identification VIEWS THE WEST COAST DEALER, IADAC, OR THE NATIONAL number requested aa Carfax repLALBRACHT@IADAC.ORG number and requested research, Carfax rep- Kari Kari Sloan INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, LALBRACHT@IADAC.ORG (888) 315-2869 relationships. number and requested research, a Carfax repKari Sloan THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION resentative will work with you throughout the Manager, Dealer Business Unit resentative will work The withentire you throughout the wishes Manager, Dealer (888) 315-2869 AS MEMBERS OF NIADA, DOES NOT CONSTITUTE AN ENDORSEstaff atthe AdvoCal each and every Business one of youUnit resentative will work with you throughout Manager, Dealer Business Unit data verification process and confirm the issue MENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT Carfax data verification process and confirm the issue Carfax NATIONAL INDEPENDENT the best of luck during these turbulent times. You’ve had a rocky 2011 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED. data verification process and confirm the issue Carfax AUTOMOBILE DEALERS ASSOCIATION has been resolved. In most cases, the entire NATIONAL INDEPENDENT STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com AUTOMOBILE DEALERS ASSOCIATION but I’m optimistic you can survive the bumps to enjoy a has been resolved. road, In most cases, the entire EDITOR Mike Harbour • mharbour@niada.com WWW.NIADA.COM • WWW.NIADA.TV AUTOMOBILE DEALERS ASSOCIATION resolved. In most cases, entire process is completed in just aa the few hours. WWW.NIADA.COM WWW.NIADA.TV has been prosperous future. PRODUCTION MGR. Jacob Kerns • • jacob@niada.com process is completed in just few hours. NIADA HEADQUARTERS: WWW.NIADA.COM • Christy WWW.NIADA.TV ART/PRODUCTION MGR. Haynes • christy@niada.com NIADA HEADQUARTERS: process is completed in just Iawish few my hours. best to Larry Laskowski as he embarks upon this NIADA HEADQUARTERS: PRINTING Nieman Printing 2521 BROWN BLVD. • ARLINGTON, ARLINGTON, TX TX 76006-5203 76006-5203 2521 BROWN BLVD. • 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 NIADA HEADQUARTERS: PHONE (817) (817) 640-3838 640-3838 new adventure. Larry is passionate about the association and PHONE PHONE (817) 640-3838 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 D EE A LL Ealways R B O N D EE LL P FOR ADVERTISING INFORMATION CONTACT: TROY TROY GRAFF FOR ADVERTISING INFORMATION CONTACT: D A E R B O best N interests D atH Hheart. P has IADAC’s FOR640-3838 ADVERTISING INFORMATION CONTACT: TROYGRAFF GRAFF PHONE (817) (800) 682-3837 OR TROY@NIADA.COM. (800) 682-3837 OR TROY@NIADA.COM. (800) 682-3837 OR TROY@NIADA.COM. D E A L E R B O N D H E L P FOR ADVERTISING INFORMATION Since 1993, Bond Source Insurance When it comes to motor vehicle bonds, all IADAC OFFICE CONTACT: TROY GRAFF Since 1993, Bond When it comes to motor vehicle bonds, all Since 1993, Bond Source Source Insurance Insurance When it comes to motor vehicle bonds, all (800) 682-3837 ORCoast TROY@NIADA.COM. The West Dealer is published bi-monthly by the National IndThe West Coast bi-monthly Westlake Financial Services has named their service. All five topped the sale rankings. Agency is committed to fast and friendly dealer principals are not alike. At Bond The West Coast Dealer Dealer isis published published bi-monthly by the the National National IndIndSincerely, Agency is committed to fast and friendly dealer principals are not alike. At Bond FOR INFORMATION ON HOW TO by Since 1993, Bond Source Insurance When it comes to motor vehicle bonds, all Westlake Financial Services has named their service. All five topped the sale rankings. Agency is committed to fast and friendly dealer principals are not alike. At Bond pendent Automobile Dealers Association Services Corporation, 2521 pendent Automobile Dealers Association Services Corporation, 2521 pendent Automobile Dealers Association Services Corporation, 2521 The West Coast Dealer isApublished bi-monthly by the National Indbond service. IADAC members may contact Source Insurance Agency, we offer a comBECOME MEMBER PLEASE CONTACT bond service. IADAC members may contact Source Insurance Agency, we offer a comtop five auctions for Q3-2010. They are: heim Nevada ranked first overall for the Kacy Wallis Westlake Financial Services has named their service. All five topped the sale rankings. Man Agency is committed to fast and friendly dealer principals are not alike. At Bond bond service. IADAC members may contact Source Insurance Agency, we offer a comBrown Blvd., Blvd., Arlington, Arlington, TX TX 76006-5203; 76006-5203; phone phone (817) (817) 640-3838. 640-3838. Brown top five auctions for Q3-2010. They are: heim Nevada ranked first overall for the ss Brown Blvd., Arlington, TX 76006-5203; phone (817) 640-3838. pendent Automobile Dealers Association Corporation, 2521 LARRY@IADAC.ORG • Services (916) 893-3306 Nancy R. Chapman for a bond quote at mon sense approach to underwriting. A Nancy R. Chapman for a bond quote at mon sense approach to underwriting. A Periodicals postage paid paid at at Dallas, Dallas, TX and and at additional additional offices. offices. POSTPOST- topSource bond service. IADAC members may contact Insurance Agency, we offer a comNancy R. Chapman for a bond quote at mon sense approach to underwriting. A Periodicals postage TX at straight quarter, ranking first for sale resul five auctions for Q3-2010. They are: heim Nevada ranked first overall for the second Periodicals postage paid at Dallas, TX and at additional offices. POSTBrown Blvd., Arlington, TXaddress 76006-5203; phone (817) 640-3838. straight or quarter, ranking first for sale resul nchapman@aec-mgmt.com. business’ net the the MASTER: Send Send address changes to to NIADA NIADA State State Publications, Publications, 2521 2521 888-855-0100 or nchapman@aec-mgmt.com. business’ net worth is the key along with the MASTER: changes R. Chapman for a bond quote at mon sense approach to is underwriting. A 888-855-0100 or nchapman@aec-mgmt.com. business’ net worth worth is the key key along along with withNancy the 888-855-0100 MASTER:paid Send addressTX changes to NIADA offices. State Publications, 2521 Periodicals at Dallas, and at additional POST1. Manheim Nevada third for service. straight quarter, ranking first for sale results and 4 postage Brown Blvd., Blvd., Arlington, Arlington, TX 76006-5203. 76006-5203. The statements statements and opinions opinions personal character of the business owner. 1. Manheim Nevada third for service. Brown TX The and personal character of the business owner. Brown Blvd., Arlington, 76006-5203. The statements and opinions 888-855-0100 or nchapman@aec-mgmt.com. business’ net worth is the key along with the personal character of the business owner. MASTER: Send address changes toTXNIADA State Publications, 2521 expressed herein are those those of the the individual individual expressed herein are of 2 Rawls Auto Auction 1. Manheim Nevada third for service. expressed herein are those of the individual Brown Blvd.,authors Arlington, TX The statements and opinions personal of the Auction business owner. 2 character Rawls and do76006-5203. not necessarily represent the views ofAThe The West CoastFEBRUARY/MARCH H Edo Wnecessarily E S T Crepresent O A Sthe T views D Eof L West EWest R Coast 2011Auto w w w. i a d a c . o r g authors authorsTand and do not not necessarily represent the views of The Coast expressed herein those of the 3. Norwalk Auto Auction Bill 2 Rawls Auto Auction Dealer,are IADAC, or the individual National Independent Independent Automobile Automobile Dealers Dealers AsAs3. Norwalk Auto Auction Bill Walters, Walters, VP VP of of remarketing, remarketing, says says Dealer, IADAC, or the National Dealer, or the National Independent Automobile Dealers Asauthors andsociation. do not IADAC, necessarily represent the views of The West Coast Likewise, the the appearance appearance of of advertisers, advertisers, or or their their identificaidentificasociation. Likewise, 4. Brashers Salt Lake Auto Auction all auction performance has been impro 3. Norwalk Auto Salt Auction Bill Walters, VP of remarketing, says over sociation. Likewise, the appearance of advertisers, or their identificaDealer, IADAC, or the National Independent Automobile Dealers As4. Brashers Lake Auto Auction all auction performance has been impr tion as as members of of NIADA, NIADA, does does not not constitute constitute an an endorsement endorsement of of the tion tion4as members members of NIADA, not constitute endorsement of the the sociation. Likewise, the of does advertisers, theiran identifica5. ADESA Golden Gate “Development of these grading measure CA_0211.indd 1/19/11 4:53 PM Salt Lake Auto Auction all auction performance has been improving products or appearance services featured. featured. Copyrightor2010 2010 by NIADA Services, Services, 4 4. Brashers 5. ADESA Golden Gate “Development of these grading measur products or services Copyright by NIADA products or services featured. Copyright 2010 by NIADA Services,
Time to Say Goodbye
“Westlake Remarketing Releases Q3 Top Auctions Li “Westlake Remarketing Releases Q3 Top Auctions List”
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President’s Message I’m honored by the trust that you have placed in me as the new president of IADAC. I appreciate the many capable men who have preceded me in this position and have mentored me through the ranks. The service and leadership they have rendered is commendable, and they have set a great example for me as I begin my tenure as president. Over the past decade, IADAC has experienced setback after setback. Membership has dropped, bank accounts have been depleted, executive directors have changed and the stability of the association has been questioned. Through all of these challenges, a small group of dedicated men and women have continued to work and fight for the good of the both the association and the automotive industry in general. Through their efforts, IADAC has weathered the challenges of the past and is headed toward a brighter future. I am confident in saying our association is stable. We have a committed executive committee whose members are willing to roll up their sleeves and get the work done. We have 20 delegates who are determined to help steer us in the right direction, targeting specific goals. Our past presidents continue to give support and advice as voting members of the board and Bill Dohring has graciously agreed to continue as our lobbyist. For the past three years, AdvoCal has served as our management company and has played an important role in the stability IADAC now enjoys. We are grateful for the work they have done for IADAC. However, IADAC’s contract with AdvoCal expires at the end of 2010, and, rather than renew the contract, the executive committee has hired Larry Laskowski as IADAC’s new executive director. Larry has been a car dealer for many years and is a strong and enthusiastic supporter of IADAC. I know we’ll benefit having someone of Larry’s experience and determination working full time for the association, focusing on the growth and betterment of IADAC. I ask for your continued support of your association. Without you, the used car dealers of California would have no voice in the Capital City. I look forward to working with you to make 2011 an exciting and profitable year in the car business.
BY
A NOTE FROM IADAC SENIOR VICE PRESIDENT M A R K
G LOV E R
I would like to thank you for allowing me to serve another term on the IADAC board, this past year has been a great experience for me and looking forward to the year to come.
The year 2011, according to predictions, will be a little bit better to the auto industry than 2010. We are looking forward to getting started to work in January with the new board in place and some great ideas for IADAC growth. These elected officers are not being paid; they are taking time away from their businesses and families to help make their industry better for all. We are planning to have board meetings to be held around the state where members can participate and learn more about our industry’s everyday changes that could keep them from potential law suits. This year, I have been chosen to be the chairman of the DMV committee, and as many of you know, it’s an agency experiencing major problems. Your IADAC board will be arranging to have meetings hopefully as soon as February to discuss things we could all do to work together and help make things operate a little smoother for all. There are many benefits offered to our members. We encourage each and everyone one of you receiving this magazine to please contact us if you’re not sure about your membership status. We would like to have you on our team! The more members we have, the louder our voice is in the Capitol when fighting the ever-changing laws that could affect you as a dealer. We are looking forward to seeing you at the upcoming board meetings throughout the year. Don’t forget to watch for your Fast Track updates.
IADAC PRESIDENT ROD DAVIS
IADAC INTRODUCES NEW EXECUTIVE VICE PRESIDENT LARRY LASKOWSKI A
M E SSAG E
F RO M
L A R RY. . .
IADAC recently elected officers for the 2010-2011 term and I’m pleased to say we have a very enthusiastic group that’s excited to serve the IADAC membership. Rod Davis, your new president, has plans that will provide increased benefits for all members.
The most significant change is that IADAC will no longer utilize AdvoCal, a privatelyowned, professional management and lobbying firm that has been our management service provider for the past three years. On behalf of IADAC, I want to thank AdvoCal for the support they have provided the association during a very critical period of time. As last year’s senior vice president, I will now assume the full-time position as IADAC’s executive vice president. What this means to the membership is we’ll be better able to serve you with an executive
vice president who is an active member of the auto industry. To increase IADAC awareness, I will be holding luncheon meetings at many of the major auto auctions to keep you abreast of the latest regulations and laws that will keep you compliant. This strategy will bring consistent support to the chapters and their members in this increasingly difficult business environment. IADAC exists for the dealers and as a dealer, you will want to look to IADAC for the support that will benefit you and your business. There are numerous reasons to be a member and now it’s more important and beneficial than ever. I hope to see you at your hometown auction where I’ll be sharing information that will keep your business healthy and prosperous. If you have any questions or comments, please contact me at larry@iadac.org.
About Me
I grew up with a love for cars and everything mechanical. Naturally, my career took a path in the same direction. Early on, I was a service technician at a franchised Ford dealer in Southern California. I met my wife, Kathy, and relocated to Sacramento where I found employment at a Ford dealership in Roseville. The closing of that store was the opportunity to open my own service shop, which I operated for 10 years. Toward the end of that period, I acquired a wholesale dealer’s license which I eventually turned into a retail license. Today, I operate a retail dealership in Roseville and have for over 16 years. My dealership, The Auto Outlet, will remain open and my wife, along with my son Kevin, will continue daily operations.
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A MESSAGE FROM THE VICE PRESIDENT We begin our 30th year in business in San Leandro, located in the San Francisco Bay Area, in 2011 as Cal West Motors.
We’re a family business started by my father and me in 1981 and today, my wife and sons are involved. We started as a Buy HerePay Here dealership, moved toward bank financing and offer a mix of both today. Cal West Motors stocks 50-60 vehicles and we consider ourselves as average independent dealers. We’re proud of our business, our vehicles, our customers and the services we perform. Our staff regularly attends our annual conventions, both state and national. They’re tax deductible travel opportunities for our staff to learn and get away together. We’ve signed up with new banks, attended sales training, advertising, legal and best practices seminars and we’ve seen the latest technologies. Plus, we’ve met with representatives from DMV, insurance and warranty companies, tax services, auctions, advertising companies, tool companies, business system providers and more. We always come away with new knowledge and benefits. The most important reason for our involvement in IADAC is our lobbying efforts in Sacramento. We have found those involved in the association to be some of the finest quality people in our industry. We are so very fortunate to have these people working for and with us. Elected state legislators write bills continuously to regulate and restrict businesses. Bills have been written to increase our bonds, give cancellation options and put caps on our automobile financing rates. We’ve seen bills defeated and compromised to our benefit for years through our lobbying efforts. A smog inspection is good for vehicles in our inventories for two years instead of 60 days, thanks to IADAC. There will be more regulatory bills written in the future. Our pet peeve involves KBB, Edmund’s and others who value our vehicles. They create conflict for us daily as we explain our pricing. We often spend hundreds or thousands of dollars above these values to obtain good inventory. This is a new year with a new board and new agendas. As an association, we have a voice for change. You may have an issue we can remedy together today. Here is how Wikipedia.com defines an association: an industry trade group or trade association is an organization founded and funded by businesses that operate in a specific industry. An industry trade association participates in public relations activities such as advertising, education, political donations, lobbying and publishing, but its main focus is collaboration between companies, or standardization. Associations may services,
such as producing conferences, networking, charitable events, offering classes or educational materials. Many associations are non-profit organizations governed by bylaws and directed by officers who are also members. One of the primary purposes of trade groups is to attempt to influence public policy in a direction favorable to the group’s members. This can take the form of contributions to the campaigns of political candidates and parties through political action committees; contributions to issue campaigns not tied to a candidate or party; and lobbying legislators to support or oppose particular legislation. In addition, trade groups attempt to influence the activities of regulatory bodies. Industry trade groups sometimes produce advertisements, just as normal corporations do. However, whereas typical advertisements are for a specific corporate product, such as a specific brand of cheese or toilet paper, Industry trade group advertisements
M I K E C A S E Y, V I C E P R E S I D E N T
generally are targeted to promote the views of an entire industry. These ads mention only the industries products as a whole, painting them in a positive light in order to have the public form positive associations with that industry and its products. For example, in the U.S., the advertising campaign “Beef, it’s what’s for dinner” is used by the National Cattlemen’s Beef Association to promote a positive image of beef in the public consciousness. If you’re an independent auto dealer in California, you owe it to yourself and your business to become a member of IADAC. We must be a united force to overcome the obstacles we will face. When we all join together for the benefit of us all, we will be empowered financially to work as an association as defined. Get involved, attend our quarterly meetings, our conventions, take advantage of the scholarship fund for your kids and grandkids and stay informed. You, your staff, your families and your businesses will benefit tremendously.
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Mark Your Calendars for the 2011 National Tire Safety Week!
TAX SEASON IS GROWING AGAIN For years, auto dealers have looked to the first quarter and tax refund season for a boost in cash flow. Some dealers account for 50 percent or more of their annual business in the first two months of the year. However, retailers who are not prepared
to capitalize are missing the boat on this oncea-year cash grab that arrives every January. Nationwide, proactive dealers are actually moving inventory in November and December in anticipation of the coming refund season. Others are printing their customers’ tax refund checks to ensure they get paid. But why should a dealer do this? Why not send the customer off-site to get their taxes prepared? Why trust the customer to keep their promise to return the next day or next week with the money? Why not assume the customer will not spend all of their money before coming back? If you have been in the car business for more than a week, you know better. Let’s think about human nature for a second. A customer has been looking forward to a $5,000 payday for months. They have mentally prepared themselves for a state-of-the-art television, a smart phone and something special for the girlfriend. Some or all of these wants are going to get fulfilled, no matter what. Then come the obligations like collections and bills put off to pay for the holidays. Mom wants back that $1,000 she loaned out. Then they go get the new TV they’ve been dreaming of and the salesperson easily upsells them from a $600 model to a larger $1,300 one. And the customer says why not? They just cashed a $5,000 check; they have plenty of cash, right? Last in line, and last to get paid, comes the car. Why? Because everyone knows that a good salesman will make a deal happen and arrange financing. Back to the tax refunds…owners of dealerships need to understand the process to hold the customer’s hand takes about 10 minutes. Most of the information needed to submit a tax deal is already available from the original loan application process. Unfortunately, all too many dealers and managers have no idea how much free money is out there for their customers that normally live paycheck to paycheck.
Anyone can sell a car with the promise of financing, but can you collect? Better yet, can you collect when the customer is always tight on cash? What better time to collect past due accounts, larger down payments, second down payments for chronically late customers, special payments, or pick-up payments than when the customer is handed more than $4,000 or as much as $10,000? A general rule of thumb is a family with two children making $25,000 to $30,000 a year will get a minimum of $5,000 back as a refund. Reported incomes as low as $16,000 can yield refunds of $10,000 or more. That is not a typo. The government routinely hands out refund checks equal to 60 percent of a family’s annual wages. Most of the refund comes from the Earned Income Tax Credit, which does not phase out until a family earns nearly $50,000 a year. This information is especially important since the customer already knows this money is coming. The planning process of how to use the upcoming refund has already started. Customers are indeed making obligations and running up debt in anticipation of their pending payday. Over the past couple of years, November and December have become prime selling seasons for cars. Dealers who possess more flexibility in their financing options are moving cars in the fourth quarter in anticipation of the upcoming tax refunds. They simply estimate the customer’s tax refund to-be and move the vehicle on that figure. Using a pick-up payment is just one way to make this program work. It just depends on your individual state. Partial down payments, GPS and payment protection units, and other more creative solutions make this program even more successful. The more helpful tax companies, who specialize in dealer-customers, will assist you in setting up such a program. A properly coordinated tax deal in November and December helps place the automobile back at the top of the tax refund food chain. Remember, the customer is already making plans on how to use that big tax refund check coming every January. Any dealer who wants to succeed must work their way into that existing mind-frame and think outside of the box.
RMA’s tenth annual National Tire Safety Week will be held June 5-11. The annual event is an initiative of the RMA’s “Be Tire Smart – Play Your PART” program, a yearround 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.
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ADESASACRAMENTO
Celebrates 13 Years
At first look, it seemed to be a regular fall morning in late October, but once the lights came on all you saw was a sea of orange and black balloons across ADESA Sacramento’s lot. Celebrating its 13-year
anniversary on Oct. 28, 2010, the auction staff pulled all the strings to make sure it was an event to remember. There was an amazing turnout running all their lanes that day with BMW Financial Services as well as all their supportive dealers, making it a sale of great success. With all the ADESA Sacramento employees dressed in costume celebrating the Halloween spirit, there wasn’t a soul without a smile on their face. Tom Mavritsakis from the Von Housen Auto Group was the happiest man in the building after winning the $2,500 golf putt. In the lanes, all you saw were shirts flying as the auctioneers were selling cars faster than they were entering the lanes. M & S Discount Motors from Stockton was the top buyer of the day, buying 22 cars from the sale. “We couldn’t have asked for a better day, a lot of cars were sold and over $15,000 in cash was given out thanks in part to a joint promotion with ADESA Golden Gate,” said ADESA Sacramento General Manager Chris McGinness. “We are very appreciative of all our customers who helped make the day a success. I am also very proud of my team for pulling off the big day without a hitch!” Mike Pars of Pars Auto Wholesale Inc. in Sacramento was one of the $1,000 winners of the ADESA Sacramento and ADESA Golden Gate promotional event. Pars, who started in the car business 27 years ago, has had the same lot on Fulton Avenue since he opened. He had a retail lot for 10 years before deciding to change over to wholesale, saying, “it’s less of a headache being a wholesaler.” Pars has been a loyal IADAC member for six years and ADESA Sacramento customer since we opened 13 years ago. “All the employees at ADESA Sacramento are what has kept me coming back as a customer for all these years,” he said, and he’s always been a smiling face around our auction. The secret, he said, to his success is “being honest and forming good relationships with the people around you.” ADESA Sacramento General Manager Chris McGinness said, “Mike has been a loyal customer as long as I have been with ADESA. He is part of the family and sorely missed when he is not able to attend the auction.”
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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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Quality Dealer of the Year Awarded! AIADACBONDING EXPERIENCE This Quality Dealer Mike rateyear’s of $1,500 per year. Thereis are between All California auto dealers Gough of MG Auto Wholesale in Vacaville, 20 and 30 surety companies writing bonds are required to have a $50,000 California. in California today. These include two bond are subject to historic was born in in bonds San Diego, yet began specializing for dealers with subincreases in price. Dealers with good Mike his work in the auto industry in Indiana. standard qualifications. These bonds can financial statements and credit scores are showed proficiency for the be priced at up his to $7,500! experiencing pricing of triple the amountHe quickly business. He took a brief in Boston, Sandy Black ofhiatus Lesron Insurance and more. I have seen quotes, for viable then returned to the auto industry working Co., a surety specialist broker, notes the dealers, of up to $7,500 per year! The and California Clas- is dealerAuto bondSales industry in California surety industry, which writes bonds, hasat Fairfield forming MGhigh Auto risk. Wholesale now considered Backinwhen had several bad years of losses. It claimssics before in Vacaville, California. Mike has beenbond, was only a $5,000 dealer these losses justify rate increases of 3002000 there member since 2005, and a well with the California market wasis brisk percent and more. It’s the same old story an - IADAC respected wholesaler in the community. competition. We know what that means: the good pay for the bad. to and a fault, is quickWith to the low prices easyMike qualification. I spoke with Carol Seperas, branch Generous items, time and money a worth high-risk designation, wefor now have little manager of Ashton Insurance, and shedonate He volunteers and organizes events, mentioned that surety companies writingcause.competition. crab feeds, school, offersatathe fewlocal hintshigh on how to shop dealer bonds in California have had threesuch as Black forWood. the best bond He’s an deal: avid golfer and softstraight years of multi-million dollarWill C. HaveIn fact, yourhispersonal andwon business softball team a losses. Carol notes every suretyAutocompanyball player. Each year the Independent financials in order and in Lake Tahoe thisready year.to submit. has Dealers different Association rating systems determinetournament mobile of to Califoraround, many exposure. has enjoyed success builtsureties on hon- have nia loss bestows uponAll onethese of itscompanies membershave MikeShop qualifiers – you may same conclusion: massive rateesty different and branded his business with get fair very the come VictortoJ.the Snyder Memorial Quality different increases. Seperas notes,practices. Mikequotes. is truly the type of dediDealer of theMost Yearcompanies, Award. This is the CleanIADAC up your personal – there willaward not given even by write multi-year bonds!cated dealer members hadcredit in mind highest IADAC and recogfew minorthe issues or Snyincorrect are afraid to commit to more they be firsta conceived Victor nizesThey a dealer’s contribution to his/her com-thanwhenmay postings that can Dealer affect of pricing or cause one his/her year inassociation this uncertain market. Manyder memorial Quality the Year munity, and the public you to be turned down. surety companies have a minimum bond Award in 1969. he/she serves.
Have your years of industry experience documented – the more, the better Barry Larsen, Brashers Sacramento Auto Auction’s finance manager, states bonding claims have gone up more than 100 percent in the last two years. Flooring repayment and dishonored checks have become much more of a problem. Barry www. IADAC’s recently updated website, says surety companies previously iadac.org, has a new feature paid that is of claims without Itmuch greatimmediately value to ourand members. is a Question question. It now sometimes requires and Answer (Q&A) blog for the uselegal of our memintervention to get bond resolved. bers. Members can ask matters any industry related quesThe (bonding) arethat will tion.surety We have a panel of companies industry experts fighting tooth nail to claims. give their bestand opinion onnot the pay matter at hand. This Barry attributes higher losses and service is free tothis our to members. the economy in general. Former IADAC President David Aahl, This feature is unique to California. We are leadgeneral and vicetopresident ing themanager way, nationwide, providingofreal time North Bay Auto manythe next information to ourAuction, members. says Just think; dealers are asking for guidance inbugging time you wake up at 3a.m. with an issue renewing bonds.onto They believe rates you……..click uscan’t and ask! have gone up so much. Many bonding claims are flatly refused by the surety Here’s how it works: companies, causing the need for legal 1) Send an e-mail IADAC through our help that usually coststomore than the original claim. The auction website requesting yourwould login then and passjust take the David attributes theissued) high word (allloss. members have them bonding cost to less competition in surety companies. There are less than half the 2) Log inwriting to the bonds “Members Only” section, companies for California using than threeyour yearslogin ago. and password I have spoken with several dealers having a difficult time qualifying and 3) Check our library of FAQ (frequently affording their new for bondtheinanswer the lastto your asked questions) few months. The principals of Watt question Automotive, a Santa Rosa auto dealer, have decided to not renew their dealer’s 4) Askbecause your question, givingannual us as much license of a $7,500 bonding fee. They have been good dealers - we information/background as possible forwant over to 15get years and active in time. IADAC, it right the first local and state. We are losing good dealers every day because of what some take as 5) Your question will bepricing answered within a aggressive and predatory in the couple days -The youfuture will be a link to the surety industry. ofsent the small, mom-and-pop car dealers is in danger. answer posted on our site, and the Q&A Therebeare alternatives to paying for will added to our FAQ! a bond. Many dealers are considering self-bonding. is a path should or adPlease email This me directly withthat any concerns bevice carefully to help explored get the ballbefore rolling.embarking. Spread the word to The forms for self-bonding are available all your friends! on the California Dept. of Motor Vehicles website at www.dmv.ca.org. Mr. Rey Guluarte, of Autos Guluarte - El Centro, The forms are: CA, has volunteered to translate any questions OL 25 – Bond application with posted in Spanish. explanation of requirements OL 65 – Notice of Acknowledgment – Best Regards, naming financial institution holding an insured account Mike - IADAC Magazine/Website OL 94Macaulay – Cash Bond – assigning the Chairman cash bond to the DMV Director EmailOL 64 –carsystems@comcast.net Assignment of insured account to DMV A cash bond, given to DMV, pays no interest. The department just keeps your
NEW MEMBER BENEFIT!
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BY MIKE MACAULAY, IADAC MAGAZINE CHAIRMAN
money until three years after the date you go out of business. Assignment of an insured account to DMV will pay you interest, but also will not be released until three years after your going out of business date. Please be careful with these options, as many people don’t understand what they are getting in to. DMV has changed its policy concerning posting a cash bond and will hold your money for three years after you go out of business; not for posting a bond to cover your cash bond. You once could post a bond to cover the cash bond. There is no choice now; you have to go out of business to get your money back! “They make it easy to post a cash bond, but very hard to get it back,” said Black. I also spoke to Mary Garcia, chief of the DMV Occupational Licensing Branch; she noted an increasing number of bond related auto dealer failures. DMV does not track this statistic directly, but Garcia does have her finger on the pulse and sees a trend. Many dealers post cash and get no return, she said, but she recommends a dealer should assign an interest-bearing account to DMV. You can save the bond fee and make a little interest. This is an option many cannot afford, but worth looking into. Garcia said there are three options to obtain the return of a cash bond: Wait three years after your going out of business date. Get a Superior Court ruling stating there is no possibility for bond exposure – you didn’t sell a vehicle since going out of business or something similar. Obtain a surety bond covering the period you had the cash bond in force (after going out of business). With the cash bond option or assigned saving account, DMV will make the disbursement decisions. With a surety company, it will require proof you actually owe the claim before payment is made. DMV may not be as careful to pay out your money on a claim. Consider all of your options and make an educated bonding choice. IADAC is on the cutting edge of bond related issues. Our legislative defense team is second to none. We have to maintain a constant vigilance to keep overregulation in check. Please share any bonding information/ questions that you have experienced not presented in this article. Send an e-mail about all issues to carsystems@ comcast.net or contact your local IADAC representative. We recently fought off a bond increase to $100,000; what do you think your bond rate would be then?
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 Associated Press, sales so far have been microscopic, and they’re
The base sticker price is $40,280 for the Volt and $32,780 for the Leaf
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.
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Nov. 23, 2010
IADAC MEETING
DMV guest speakers Sylvia Thomas and Dennis Colomb provided important information to dealers in attendance at the Sacramento Chapter IADAC meeting on Nov. 23. They spoke about compliance
in advertising and the most frequent dealer violations. Dealers were treated to lunch courtesy of Brasher’s Sacramento Auto Auction and Automotive Finance Corp. After her presentation, Thomas took questions from dealers who were most interested in the topic regarding proper execution of a sale that involved Hispanic purchasers. Since a violation
could put a dealer’s license in jeopardy, the audience was very intent on understanding the proper procedures. IADAC has developed a great relationship with DMV as both share many of the same goals, one of which is to provide information to California auto dealers that allow them to do business without risk of losing their licenses. After the DMV presentation, dealers were challenged to a trivia quiz, with the winner receiving free advertising in the Drive Time Magazine, a $450 value. Ron Ward from Ward’s Auto Center was the recipient of that prize with the most correct answers.
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PROFILE
IADAC PROFILESEXECUTIVE COMMITTEE
INSIDE
Rod Davis President Brasher's Auto Auction Rio Linda, CA 95673 916 991 P R -O F I -L5555 E: rdavis@brashers.com
MAGAZINECONTENTS PRO FI LE:
Terry Degmetich Secretary I - Deal Cars Roseville, CA 95678 916-870P R O F9254 I L E: idealmaster@surewest.net VINCE CARDINALE Vince Cardinale
ROD DAVIS Named IADAC Quality Dealer of the RICK Year GOMEZ Auction Standards Help Customers My name is Rick Gomez Rod Davis, general It was only four short years David Aah1 sales manager of Credit Applications Do’s & Don’ts Chairman of the Board Vice President took the and I’m a IADAC executive Brasher’s Sacramento Auto Auction, has ago when I actually Striking Gold: IADAC’s 42nd Annual Convention North Baymember Auto Auction to Z Motors board member. My career been a continuous of IADAC’s time to A attend an IADAC Fairfield, CA 94534 Winters, CA 95694 in the car business started executive board since 2000. Rod is the newly meeting after a membership 707 - 864 - 1040 925-914-9199 THE CURRENT STATE 40 years ago; both retail and elected president for the 2010-2011 term. drive. I quickly realized the david@nbauto.com atozmotors1@aol.com OF THE AUTO INDUSTRY wholesale. Rod started in the automotive business importance of the association The value of being in 1994, became an auctioneer in 1995, and began assisting in helping John McElroy is host of the long-running “Auto-an Mark Glover Rick Gomez IADACcovering memberall wasas-apparent and went into management fellow dealers recognize that Sr. Vice President for Brasher’s Vice President line Detroit” television program, immediately. The Greater soon after. He immediately saw the value becoming a member was an Azteca Auto Sales RJ Auto Brokers pects of the automotive industry. In this presentaCA association 95632 95608 Sacramento Chapter has of a strongGalt, dealer and became easy andCarmichael, beneficialCA decision. tion, McElroy provides a thorough and insightful 916-425-3349 seen me serve as a multiple involved in209-712-1886 the Sacramento Local Chapter Now I am part of the mark@countyfinancial.com rgomez739@yahoo.com review of where we’ve been, where we now president and in every other (GSIADA). Rod quickly rose to leadership in executive committee and are, and where our industry is headed. Taped position. The educational the local and served as president from 1999 surrounded by a great group at the Automotive Fleet & seminars Leasing Association’s Mike and informative to 2002. Larry Laskowski of people. It’sCasey a group of Treasurer Vice President Annual Conference. meetings have been of great Rod married hisOutlet lovely wife Ruth in 1992 people full of information The Auto Cal West Motors value to my business. Another and they now have CA six95678 children ages five and resources that benefit Roseville, San Leandro, CA 94577 CMD CLASSES value has been the Vic and to sixteen. 916-784-3408 There’s lots of car business in not only510-352-9230 my business but autoview@surewest.net clwest1977@aol.com Ethylcommitment Snyder Scholarship their future! Family life comes first for Rod the businesses of all its Dealers who demonstrate and Foundation. My children and and he’s a proud father and husband. Rod members. I intend to assist support the principles and ethical business grandchildren have received thinks IADAC should be fun again. There wherever needed during our standards of the CMD® designation comhave been many cherished memories of the transition time and see to it plete a four-day seminarover that$30,000! addresses BusiMacaulay, Magazine • we Carreach Systems I have made many lifetime Mike functions both state and local.Committee The down Chairthat and maintain a ness Management, Merchandising, Financial Roseville, • 916-784-7155 carsystems@comcast.net friendships from my IADAC economyCA should not hold back the • friendship membership of 750 strong in Management, Human Resources, and For Business membership. those nonand great times that IADAC used to stand 2011. Planning. Northwood University provides in-I say members readingthe this, for. IADAC is back! structor and awards four Continuing join IADACEducation and improve your Rod Davis is an outstanding asset to units for this course. business; it’s a win-win! IADAC and we appreciate him!
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The next class will be March 10-12 at the SuperMedia Hotel and Conference Center at DFW.
Carfax Is Here To Help
BREAKING NEWS! ADVERTISERSINDEX BREAKING NEWS! PROFILE: SUN CITY AUTO SALES Dear Editor:
Carfax is always here to help, esp on the rare occasions that data rese Carfax is constantly looking for ways to needed. Inconsistent odometer readin Action Auto Recovery.............................................. 6 further improve the exceptional service we example, can raise a red flag but may Allen L. Hawkins 9 in Northern provide our independent dealer customers. results of simple human error. We’ve Mike Tayebi mayInsurance be oneServices of the....................... newer faces AutoTrader.com Cover California’s dealer ............................ community, butInside he isFront no stranger to buying We have a dedicated team of professionals easier for dealers to initiate the proce Black Book ............................................................. 13 and selling cars. Owner of Sun City Auto Sales, Tayebi opened his that handles any customer requests quickly. get a faster resolution. We’re helping o wholesale business on Sacramento’s Fulton........ Avenue 2008, but began his Brasher’s Sacramento Auto Auction BackinCover Checktomers out the newly Asseen a result of our tireless efforts, I am proud manage a more efficient busin careerCars.com in 1996 in......................................Inside Southern California. Over the Back past 14 years, he has Cover to say that we have streamlined our dataredesigned re- keeping their operations running smoo his share of peaks and valleys in the market, but is convinced5the true measure DealerClick .............................................................. IADAC website of his success in & theAssociates strength of..................................... his relationships with long-time customers. search process. Any dealer in California that has J. L. Vonlies Arx 12 “I‘ve enjoyed this business from the start,” said Tayebi, who credited friends at www.iadac.org. The research process is easily started with tions about their Carfax account or t Manheim Advantage....................................... 10, 11 for introducing him to the auto wholesale business in Los Angeles in 1996. SmartAuction .......................................................... 7 justand a few simple steps. Any Carfax-subscribresearch process what can callyou Carfax B We want to know He soon discovered his niche, handling Lexus and other luxury vehicles, Funding ................................................... ing dealer in California can access their Car- Services at 888-695-1885. It is our p quicklyWestern developed a customer base he continues to buy for16 today. think to ofserve the you. new site. Let us Western General / Protective 3 Tayebi decided After visiting San Antonio during a .................................. car-buying trip in 2003, fax account at carfaxonline.com. Next, click to move to Texas, and spent five years there before family and the irresistible know by e-mailing us at the link which takes you directly to the online pull of the Golden State brought him back to California. Data“I Correction Form. After submitting getanswers@iadac.org. the Sincerely, FOR INFORMATION “I decided that Sacramento wasON the HOW place forTO me,” Tayebi remembers. BECOME A MEMBER PLEASE CONTACT love this area and the friendliness of the community. It’s a great place to work with the 17-digit vehicle identification form and to LALBRACHT@IADAC.ORG do business!” number and requested research, a Carfax rep- Kari Sloan (888) Shortly after315-2869 moving to Sacramento, Tayebi met Larry Laskowski, who resentative will work with you throughout the Manager, Dealer Business Unit urged him to get involved with IADAC. He joined the association in 2009 data Carfax and attended the annual convention in October. “I’ve learned a great dealverification process and confirm the issue NATIONAL INDEPENDENT at the AUTOMOBILE meetings, which has been veryASSOCIATION helpful to my business,” Tayebi said. DEALERS has been resolved. In most cases, the entire • WWW.NIADA.TV “BeingWWW.NIADA.COM a member of IADAC is a great way to get involved in the industry!” process is completed in just a few hours. In addition to expanding his customer base in Northern California, Tayebi NIADA HEADQUARTERS: Mike Tayebi of Sun City Auto Sales (right), and Farris Fouladi (left)make a Tuesday visit to Brasher’s 2521 BLVD. • ARLINGTON, continues toBROWN work with customers in theTX Los76006-5203 Angeles area. “I have customers Sacramento Auto Auction part of their weekly schedule. They visit in the lane with Rod Davis, assistant GM PHONE (817) 640-3838 who have been with me from the beginning,” he said. “I appreciate those at the auction and this year’s IADAC president. With the addition of Farris to the business, Sun City Auto FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF relationships. It’s a challenging, competitive business, but being able to work Sales has been buying and selling at auction as well as dealing with outside customers. (800) 682-3837 OR TROY@NIADA.COM. Since 1993, Bond Source Insurance When it comes to motor vehicle bonds, all with good people it published enjoyable.” The West Coastmakes Dealer is bi-monthly by the National Ind-
D E A L E R B O N D H E L P “Westlake Remarketing Releases Q3 Top Auctions
pendent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone (817) 640-3838. Periodicals w wpostage w . ipaid a dataDallas, c . oTXrand g 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 The West Coast CA_0211.indd 19
Westlake Financial are Services has named service. All five to topped the sale ranking Agency is committed fast and friendly dealer principals not alike. At Bondtheir 19 service. IADACranked members contact Insurance we They offer aare: com- bondheim topSource five auctions forAgency, Q3-2010. Nevada firstmay overall for th mon sense approach to underwriting. A Nancy R. Chapman for a bond quote at quarter, first for sale re FEBRUARY/MARCH 2011 T H E W E S T C Ostraight AST D E A L E ranking R business’ net worth is the key along with the 888-855-0100 or nchapman@aec-mgmt.com. 1. Manheim Nevada third for service. personal character of the business owner. 2 Rawls Auto Auction 3. Norwalk Auto Auction
1/19/11 4:54 PM
Bill Walters, VP of remarketing, sa
LEGISLATIVE UPDATE By Bill Dohring
The Legislature has been in recess for the last three months, so we have had no bad legislation affecting the industry, but they reconvene Jan. 3, so we will be at the ready. There are a
few items you need to think about to ensure you’re following the laws so you won’t get any consumer complaints.
SMOGGING DIESEL VEHICLES
Just as you have been smogging all of your inventory for gasoline vehicles, you will now have to smog any diesel vehicle you offer for sale. Diesels that must be smogged are 1998 models and newer and under 14,000 GVW. The test consists of mainly a visual check to ensure all components for emission controls are on the vehicles and a smoke test.
Prior to buying any diesel vehicles or take one in on trade, check for the component parts and make sure you take it to a smog shop to ensure compliance. The ARB has been conducting inspections on dealer lots to check for missing emission or illegal parts. Violation fines are a minimum of $500.
DIESEL VEHICLES OVER 14,000 GVW
Vehicles over 14,000 GVW don’t require a smog test, but should you sell one, you will have to provide the customer the written disclosure as follows: “An on-road heavy duty diesel or alternative diesel operated in California may be subject to the California Air Resources Board regulations to reduce particulate
matter and criteria pollutant emissions from in-use heavy duty diesel vehicles and therefore could be subject to an exhaust retrofit or accelerated turnover requirement to reduce emissions of air pollutants.” This disclosure must be signed by the buyer and kept in the jacket; it does not need to go to DMV with the paperwork.
TIRE REGULATIONS
Any time a tire shop does anything with the tires on cars you’re offering for sale, it must ensure all tires are inflated to their proper pressure and must be so noted on your receipt.
FALSE AND MISLEADING ADVERTISEMENT
According to the California Business & Professions Code Section 17500, an advertisement that is “false or misleading” is illegal. An ad that fails to disclose information or is unclear may be found unlawful if the public is likely to be deceived by it. Honesty is the best policy as fines under this code section could put you out of business.
FTC STICKERS – BUYER GUIDES
Make sure every car you offer for sale has an FTC sticker attached to the window. Failure to do so is a violation of both state and federal law and carries a fine of $10,000 for each failure of not having it displayed.
“NO COOLING OFF PERIOD”
Make sure in every office or cubicle where you are conducting business you have prominently and conspicuously displayed to the buyer there is no “cooling off” period unless they buy contract cancellation.
CURBSTONING
Since I started lobbying for IADAC, perhaps the biggest problem confronting our membership is curbstoning or illegal sales by unlicensed people. After years of trying to get our arms around the issue, we finally passed AB 2042 by Assemblyman Felipe Fuentes, D-Sylmar. What this bill did was to allow the DMV to cite the vehicles being offered for sale but the most important provision was DMV investigators could have the vehicles towed away. This is a very costly event for curbstoners as they have to redeem the car – paying for the tow, storage and any fees and penalties for the vehicle. This takes away any profit for the curbers. The DMV has been exceptionally active in enforcing this section. In 2009 alone, 423 vehicles were towed and impounded, finding forged documents, stolen cars and also arrested four bad guys. If you are an IADAC member and have any questions about DMV or the laws affecting your business, don’t hesitate to call me at 916806-4326. Have a great New Year! 20
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REY SAYS: SAVE MONEY ON YOUR BOND Dealers Helping IADAC Members As claims increase against the dealer’s bond, the exposure of the bonding companies increases. That results in increased premiums to our members.
Premium increases are, in many cases, so drastic the dealer cannot afford the increase and is out of business without a bond. The reason for this is the companies issue bonds based on a dealer’s liquid assets; generally, it’s 10 times the face of the bond. If the bond is $5,000, a dealer would need $ 500,000 in liquid assets. Unlike insurance, when a bonding company pays a claim, it goes back to the dealer to cover the amount of the claim it paid. In addition to liquid assets, a dealer also must have close to perfect credit. This is exactly what happened to me! My
old premium was $385 a year; when I went to renew the bond, I was quoted a new price of $1,000. The company then said that quote was a mistake and the new premium would be $7,500 for the year. This would put me out of business! I then called the IADAC office to see if there were any bonding companies that gave IADAC members a better deal. I called the companies suggested, but the results were the same; they were just too expensive. Wanting to stay in the business I love, I spent the rest of the day phoning bonding companies with pretty much the same results. Finally, my efforts paid off! I made contact with First Pacific Bonding Co. and spoke with Alicia Arellano, an agent there. What a pleasant experience! After explaining my situation, she asked me for
some documentation on my business. After reviewing my information, she called my back with great news: my new premium would only be $875 for the year. That was a substantial $6,625 savings! I would like to encourage my fellow IADAC members to contact First Pacific Bonding and get a quote for you bond when it’s due for renewal. I’m writing this article for IADAC not because I have anything to gain, but to help my fellow IADAC members save money on their bond and stay in business. I hope you can get the same results I did. Again, this is not an endorsement but merely another opportunity to explore. You can contact Alicia at 415-694-5483. It is my sincere hope you’ll have the same good experience I did and save money, too! By Rey Gularte
vAuto Rolls Out Mobile App for Android 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 real-time 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. 21
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No dealer should be without the NADA Official Used Car Guide. These must-have guides feature pocket-size portability for
NEW MEMBER BENEFIT!
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IADAC’s recently updated website, www. iadac.org, has a new feature that is of great value to our members. It is a Question
and Answer (Q&A) blog for the use of our members. Members can ask any industry related question. We have a panel of industry experts that will give their best opinion on the matter at hand. This service is free to our members. This feature is unique to California. We are leading the way, nationwide, to providing real time information to our members. Just think; the next time you wake up at 3a.m. with an issue bugging you……..click onto us and ask!
Here’s how it works: 1) Send an e-mail to IADAC through our website requesting your login and password (all members have them issued) 2) Log in to the “Members Only” section, using your login and password 3) Check our library of FAQ (frequently asked questions) for the answer to your question 4) Ask your question, giving us as much information/background as possible - we want to get it right the first time. 5) Your question will be answered within a couple days - you will be sent a link to the answer posted on our site, and the Q&A will be added to our FAQ!
Please email me directly with any concerns or advice to help get the ball rolling. Spread the word to all your friends! Mr. Rey Guluarte, of Autos Guluarte - El Centro, CA, has volunteered to translate any questions posted in Spanish. Best Regards, Mike Macaulay - IADAC Magazine/Website Chairman Email- carsystems@comcast.net
quick and easy car-side appraisals. Additionally, NADA Online gives you 24/7 online access to used vehicle values, at your desk and out at the auction on your smart phone, while NADA e-Valuator for Dealers software combines more than 19 years of NADA values on your PC and offers an inventory feature. NIADA offers member subscription discounts for the NADA Official Used Car Guide, as well as NADA Online and NADA e-Valuator for Dealers. Contact your state association or NIADA at 800-682-3837 for your discounted subscriptions or complete the online ordering form at www.nada.com/niada. The promotional code for ordering discounted NADA products is NIADA199. This code will need to be entered during checkout to receive the discount.
NIADA199
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ed!
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 quarter-million 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. 22
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