JUNE/JULY 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
QR CODES 101: POINT, SCAN, SELL ALSO DMV Tips PLUS Legal Minute
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
MAGAZINECONTENTS 12 QR Codes 101: Point, Scan, Sell MAGAZINECONTENTS 16 DMV Tips
6 8 13 14
6 Named IADAC Dealer of 66 IADAC Named IADAC Quality Dealer of the Year Named Dealer the Year NamedQuality IADAC Quality Qualityof Dealer of the the Year Year 8 Legal Minute 88 18 Auction Standards Help Customers Auction Help Auction Standards Help Customers Auction Standards Standards Help Customers Customers 13 Credit Applications Do’s & Don’ts 13 Credit Do’s 13 Applications Credit Applications Applications Do’s & & Don’ts Don’ts Credit Do’s & Don’ts 14 Striking Gold: 42nd Annual 14 Striking Gold: IADAC’s 42nd Annual Convention 14 Gold: Striking Gold: IADAC’s IADAC’s 42nd Convention Annual Convention Convention Striking IADAC’s 42nd Annual
THE CURRENT THE CURRENT STATESTATE OF THE AUTO INDUSTRY OF THE AUTO INDUSTRY New education sessions from
John isis host of long-running John McElroy hostlong-running of the long-running “AutotheMcElroy Conference ofthe Automotive John McElroy is host of the “Auto- “Autoline Detroit” television program, covering Remarketing are now running line Detroit” television program, covering all as- all asof the automotive In this presentaonautomotive NIADA.TV pects ofpects the industry.industry. In this presentation, McElroy provides aa thorough and insightful tion, McElroy provides thorough andfrom insightful tion, McElroy provides a thorough sessions and insightful Several educational review of where we’ve been, where we now review of where we’ve been, where recent Conference of Automotive review ofthe where we’ve been, where we nowwe now are, and where our industry is headed. Taped and our where our industry headed. Taped Remarketing (CAR) are nowisup and runare, andare, where industry is headed. Taped at the Automotive Fleet & Leasing Association’s ning free Fleet of charge on NIADA.TV. Over at the Automotive & Leasing Association’s Conference. 12 sessions from the recent conference will Annual Annual Conference. be posted to www.NIADA.TV throughout
CLASSES CMD CLASSES April and May, so check back often over CMD CMD CLASSES
Rod Rod Davis RodDavis Davis Rod Davis Rod Davis President PresidentPresident President President Brasher's Auto Auction Auto Brasher'sBrasher's Auto Auction Brasher's Auto Auction Brasher’s AutoAuction 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 916 916 -991 991 - -5555 5555 rdavis@brashers.com rdavis@brashers.com rdavis@brashers.com rdavis@brashers.com rdavis@brashers.com
Terry Terry Degmetich TerryDegmetich Degmetich Terry Terry Degmetich Degmetich Secretary Secretary Secretary Secretary Secretary I Deal II --Cars Deal Cars I -I Deal Deal Cars Cars - DealCars Roseville, CA Roseville, CA 95678 Roseville, CA Roseville, CA 95678 95678 Roseville, CA95678 95678 916-8709254 916-8709254 916-8709254 916-870916-8709254 9254 idealmaster@surewest.net idealmaster@surewest.net idealmaster@surewest.net idealmaster@surewest.net idealmaster@surewest.net Vince Vince Cardinale Vince Cardinale Vince Cardinale Cardinale
David DavidAah1 Aah1 David Aah1 David Aah1 David Aah1 Chairman of Chairman theBoard Board Chairman of the Board Chairman ofofthe the Board Chairman of the Board North Bay Auto Auction North Bay Auto North Bay Auto Auction North Bay Auto Auction North Bay Auto Auction Auction Fairfield, CA 94534 CA Fairfield, CA94534 94534 Fairfield, CA 94534 Fairfield,Fairfield, CA 94534 707 864 - 1040 707 ----864 707 864 1040 707 864-- -1040 1040 707 - 864 1040 david@nbauto.com david@nbauto.com david@nbauto.com david@nbauto.com david@nbauto.com
Vice VicePresident President Vice President Vice President President Vice A to ZZ Motors Motors A to A to Z Motors A to Z Motors A to Z Motors Winters, CA 95694 Winters, CA Winters, CA95694 95694 Winters, CA 95694 95694 Winters, CA 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
MarkGlover Glover Mark Mark Glover Mark Glover Mark Glover Sr.Vice VicePresident President Sr. Vice Sr. Sr. Vice President President Sr. Vice President Azteca Auto Sales AztecaAuto AutoSales Sales Azteca Azteca Auto Sales Azteca Auto Sales Galt, CA 95632 Galt,CA CA95632 95632 Galt, CA 95632 Galt, CAGalt, 95632 209-712-1886 209-712-1886 209-712-1886 209-712-1886 209-712-1886 mark@countyfinancial.com mark@countyfinancial.com mark@countyfinancial.com mark@countyfinancial.com
Rick Gomez Rick Gomez Rick Rick Gomez Gomez Rick ViceGomez President Vice President Vice Vice President President Vice President RJ Auto Brokers RJ Auto Brokers RJ Auto RJ Auto Brokers Brokers RJ Auto Carmichael, Brokers CA 95608 Carmichael, CA 95608 Carmichael, CA Carmichael, CA 95608 95608 Carmichael, CA 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 The Auto Outlet Larry Laskowski Treasurer Treasurer Treasurer TreasurerThe Roseville, CA 95678 Auto Outlet Auto The Auto Outlet Outlet The AutoThe Outlet 916-601-4976 Roseville, CA 95678 Roseville, CA 95678 Roseville, CA Roseville,916-784-3408 CA 95678 95678 autoview@surewest.net 916-784-3408 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 Vice Casey President Mike Vice President Vice President Vice President Vice President Cal West Motors Cal West Motors Cal West Motors Cal West Motors Cal Motors SanWest Leandro, CA 94577 San Leandro, CA San Leandro, CA 94577 San 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
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Vince Cardinale
the next who few months. These sessions will demonstrate commitment DealersDealers who demonstrate commitment and and be posted in NIADA.TV’s “Remarketing” the principles and ethical business Mike Macaulay, IADAC Magazine/Website Chairman carsystems@comcast.net support support the principles ethical business Channel asofwellthe asand in the “New Programs” comstandards CMD® designation standards of the CMD® designation comstandards of a the CMD® designation com-in BusiChannel. Get caught up that on the latest plete seminar addresses a four-day four-day seminar that24/7 addresses Mike Magazine Committee Chair • Car “Remarketing” at your by visit- Busiplete a plete four-day seminar thatleisure addresses BusiMike Macaulay, Macaulay, Magazine Committee Chair Car Systems Systems Macaulay, Magazine Committee Chair • Car•Systems ness Management, Merchandising, Financial Mike PRESIDENT’S MESSAGE Roseville, CA • 916-784-7155 • carsystems@comcast.net ing to niada.tv. ness Management, Merchandising, Financial Roseville, CA • 916-784-7155 • carsystems@comcast.net Management, Human Resources, and Business Roseville, CA • 916-784-7155 • carsystems@comcast.net Management, Human Resources, and Business At the conclusion of our Fresno chapter meeting, one of the dealers commented Planning. Northwood University provides the inPlanning. Northwood University provides theEducation init had been the best, most informative IADAC meeting he had ever attended. I had structor and awards four Continuing ADVERTISERSINDEX structor and awards four Continuing Education structor units and for awards four Continuing Education to agree with him. I’m confident in saying every dealer who attends one of these this course. Actionfor Auto Recovery......................................... 16 units this course. meetings will leave much better prepared to operate his business. units for this course. ADESA ............................................................... 5
A
Carfax Is Here Help Carfax Is Here To To Help
The next will be March 10-12 at the SuperMedia The next class class will March The classServices. will be be....................................... March 10-12 10-12 at at the the SuperMedia SuperMedia Autonext Portfolio The next Hotel class will Conference be March 10-12 SuperMedia19 So far this year, we have had chapter meetings at Adesa Sacramento, Northbay Hotel and Conference Centeratat atthe DFW. and Center DFW. Hotel and Conference Center at DFW. AutoTrader.com ......................... Inside Front Cover Dear Carfax is here to espec Hotel and Black Conference Center at DFW. andEditor: Manheim’s Fresno auctions. We are looking toward Southern for a few Dear Carfax is always always here to help, help, espec Book ........................................................ 18 Dear Editor:Editor: Carfax is California always here to help, especially Brasher’s Sacramento Auto Auction ...... Back Cover on the rare occasions that data researc meetings this summer. We have had guest speakers at each meeting, butoccasions I think what that data researc on the rare Carco Group ..................................................... 17 on thetherare occasions data research is Carfax is constantly looking for ways to makes these so successful is the discussion dealers are able tothat have Inconsistent odometer readings Cars.com.............................................................. 9 Carfax is meetings constantly looking foropen ways to needed. needed. Inconsistent odometer readings Carfax is constantly looking for ways to needed. Inconsistent odometer readings, for Chase ............................................................... 14 with each other. the exceptional service we Action Auto further improve can aa red flag but may be Action Auto Recovery .............................................. 66 Action Auto Recovery Recovery.............................................. ..............................................6 Lobel Financial....................................................11 further improve the exceptional service we example, example, can raise raise redbut flagmay but be may be Action Auto Recovery .............................................. 6 further improve exceptional service we can a red flag the Manyour ofthe these discussions dealer stem fromcustomers. the quiz example, Larry passes outofraise atsimple each meeting, Allen L. Hawkins Insurance Services ....................... 9 Manheim.com ............................ Inside Back Cover Allen L. Hawkins Insurance Services ....................... 9 provide independent results human error. We’ve ma Allen L. Hawkins Insurance Services ....................... 9 provide our independent dealer customers. results of simple human error. We’ve ma NowcomInsurance ........................................................... Allen L. Hawkins Services ....................... 913 Cover which test the dealers’dealer knowledge of basic business practices. It amazes me Ricky AutoTrader.com ............................ our independent customers. results of simple human error. We’ve made it AutoTrader.com ............................ Inside Front We have aa dedicated team of professionals AutoTrader.com ............................ Inside Inside Front Front Cover provide easier for dealers to the Portfolio............................................................. 15 Cover WeGomez havecan dedicated team of meeting professionals easier for dealers to initiate initiate the process process AutoTrader.com ............................ Inside Front Cover take this quiz at each and still not get them all correct. This is the process Black Book ............................................................. 13 SmartAuction. . ..................................................... 7 We have ahandles dedicated team of professionals easierget fora dealers to initiate and Black Book ............................................................. 13 Black Book ............................................................. 13 that any customer requests quickly. faster resolution. We’re helping our The Miles Law Firm ............................................. 6 that handles any customer requests quickly. get a faster resolution. We’re helping our Black Book ............................................................. 13 just one of the many reasons why we enjoy having Ricky on the executive committee. Brasher’s Sacramento Auto Auction ........ Back Cover Brasher’s Sacramento Auto Auction any of customer requests quickly. get a faster helping our cusWestern General / Protective 3 Cover Brasher’s Sacramento Auto.............................. Auction........ ........Back Back Cover that handles As a result our tireless efforts, I am proud tomersresolution. manage a We’re more efficient business
ADVERTISERSINDEX ADVERTISERSINDEX
BREAKING NEWS! BREAKING NEWS! BREAKING NEWS! BREAKING NEWS!
Check out the newly As aFor result of our efforts, am proud tomers manage more the first time tireless since I have been Iinvolved with IADAC, I honestly feela we are efficient business Brasher’sCars.com Sacramento Auto Auction........ Back Cover Check out the newly Cars.com ......................................Inside Back Cover ......................................Inside Back Cars.com ......................................Inside Back Cover Cover As a result Check out the newly of our tireless efforts, I am proud tomers manage a more efficient business and N NATIONAL INDEPENDENT to say that we have streamlined our data rekeeping their operations offering a great service to our members. We welcome your suggestions for our running Cars.comDealerClick ......................................Inside Back Cover .............................................................. 5 to say that we have streamlined our data rekeeping their operations running smoothl smoothlA DealerClick .............................................................. 55 AUTOMOBILE DEALERS ASSOCIATION redesigned IADAC website DealerClick .............................................................. to say that we have streamlined our data rekeeping their operations running smoothly. continued improvement. We appreciate your support and are reminded daily of the search process. Any dealer in California that has • WWW.NIADA.TV DealerClick .............................................................. 5 J.J.WWW.NIADA.COM L. Von Arx & Associates ..................................... 12 redesigned IADAC website J. L. Von Arx & Associates ..................................... 12 search process. Any dealer in California that has qqW L. Von Arx & Associates ..................................... 12 search process. NIADA HEADQUARTERS: Any dealer in California that has quesimportance of having an association whose sole purpose is watching out for the used at www.iadac.org. J. L. Von Manheim Arx & Associates ..................................... 12 The research process is easily started with Manheim Advantage....................................... 10, 11 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 Advantage....................................... 10, The research process is easily started with tions about their Carfax account or the Manheim 10, 11 11 PHONE (817)Advantage....................................... 640-3838 at www.iadac.org. auto dealers in California. research process is easily started with tions research about their Carfaxcan account or the data ManheimSmartAuction Advantage....................................... 11 FOR ADVERTISING INFORMATION CONTACT: TROY10, GRAFF .......................................................... 7 SmartAuction .......................................................... 77 Thejust process callyou Carfax Busi SmartAuction .......................................................... just aa few few simple simple steps. steps. Any Any Carfax-subscribCarfax-subscribWe want to know what (800) 682-3837 OR TROY@NIADA.COM. SmartAuction .......................................................... 7 Western Funding ................................................... 16 just a few simple steps. Any Carfax-subscribresearch process can call Carfax Business Western Funding ................................................... 16 We want to know what you Western ................................................... 16 THE WEST Funding COAST DEALER IS PUBLISHED BI-MONTHLY BY THE ing dealer in California can access their CarServices at 888-695-1885. It is our plea B Y R O D D A V I S ,think I A D A CofP R ESID E N T site. Let us the new NATIONAL General INDPENDENT AUTOMOBILE .................................. DEALERS ASSOCIATION Western Western Funding ................................................... 16 Western General Protective .................................. 33 ing dealer in California can access theirNext, Car- click /// Protective 3 think ofserve the new site. Let Services at 888-695-1885. It is us our pleasure Western General Protective .................................. SERVICES CORPORATION, 2521 BROWN BLVD., ARLINGTON, fax account at carfaxonline.com. to you. think to ofserve the you. new site. Let us Western General / Protective .................................. 3 TX 76006-5203; PHONE (817) 640-3838. PERIODICALS POSTAGE fax account at carfaxonline.com. Next, click know the link which takes you directly to the online know by by e-mailing e-mailing us us at at know by e-mailing us at the link which takes you directly to the online Data Correction Form. After submitting the Sincerely, FOR INFORMATION ON HOW TO FOR INFORMATION ON HOW TO Correction Form. After vehicle submitting getanswers@iadac.org. the getanswers@iadac.org. Sincerely, BECOME PLEASE FOR INFORMATION ON HOW TO CONTACT BECOME A A MEMBER MEMBER PLEASE CONTACT Data N E Eform D E A with S Y T the R A I 17-digit N I N G O P P O R Tidentification U N I T I E S FO R YO U R D E A L E R S H I P ? BECOME A MEMBER PLEASE CONTACT LALBRACHT@IADAC.ORG form with the 17-digit vehicle identification number and requested research, a Carfax rep- Kari Sloan (888) Check out the new Education and Training Consortium (ETC) to watch our list grow. LALBRACHT@IADAC.ORG (888) 315-2869 315-2869 number and requested research, ayou Carfax repKari Sloan resentative willonwork withhave throughout Dealer Unit The programs listed this site met stringentthe criteriaManager, that ensures that Business the (888) 315-2869 resentative will work with you throughout the Manager, Dealer Business Unit data verification process and confirm the issue Carfax program or product: NATIONAL INDEPENDENT NATIONAL INDEPENDENT process and the issue Carfax s Responds to dealership needs today; AUTOMOBILE DEALERS ASSOCIATION data verification NATIONAL INDEPENDENT has been resolved. In confirm most of cases, the entire s Demonstrates ofcases, effectiveness; WWW.NIADA.COM • WWW.NIADA.TV has been AUTOMOBILE DEALERS ASSOCIATION resolved. Inhistory mostin process is completed just a the few entire hours. WWW.NIADA.COM • WWW.NIADA.TV Comes with dealer recommendations; processs is completed in just a few hours. and 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 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 THE WEST COAST DEALER, IADAC, OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NIADA, DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT 2011 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED. STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITOR Mike Harbour • mharbour@niada.com PRODUCTION MGR. Jacob Kerns • jacob@niada.com ART/PRODUCTION MGR. Christy Haynes • christy@niada.com NIADA HEADQUARTERS: NIADA HEADQUARTERS: NIADA HEADQUARTERS: PRINTING Nieman Printing
2521 BLVD. s Offers professional presentation of goods and services. 2521BROWN BROWN BLVD.• •ARLINGTON, ARLINGTON,TX TX76006-5203 76006-5203 NIADA HEADQUARTERS: PHONE (817) 640-3838 PHONE (817) 640-3838 PHONE (817) 640-3838 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 IADAC OFFICE FOR ADVERTISING INFORMATION CONTACT: TROY TROY GRAFF GRAFF FOR ADVERTISING INFORMATION CONTACT: FOR640-3838 ADVERTISING CONTACT: TROY GRAFF Just go to NIADA.com’s Education page and follow the links to ETC or contact PHONE (817) (800) 682-3837 OR OR INFORMATION TROY@NIADA.COM. (800) (800) 682-3837 ORTROY@NIADA.COM. TROY@NIADA.COM. FOR682-3837 INFORMATION ON HOW TO FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF Since When comes all Georgia Brown atit morebonds, information. Since 1993, Bond Source Insurance When itit800-682-3837 for comes to motor vehicle bonds, all Since 1993, 1993, Bond Bond Source Source Insurance Insurance When comes to to motor motor vehicle vehicle bonds, all BECOME A MEMBER PLEASEbi-monthly CONTACT (800) 682-3837 ORCoast TROY@NIADA.COM. The West Coast Dealer is is published published bi-monthly by the the National National IndIndThe West Dealer by Agency is committed to fast and friendly dealer principals are not alike. At Bond The West Coast Dealer is published bi-monthly by the National IndWestlake Financial Services has named their service. All five topped the rankings. Agency is committed to and friendly dealer principals are not alike. At Bond Since 1993, Bond Source Insurance When it comes to motor vehicle bonds, all fast andsale friendly dealer principals are not alike. At Bond Agency is committed to fast LARRY@IADAC.ORG (916) 601-4976 pendent Automobile Dealers Dealers•Association Association Services Corporation, Corporation, 2521 2521 pendent Automobile Services pendent Automobile Dealers Association Services Corporation, 2521 The West Coast Dealer is published bi-monthly by the National Indbond service. IADAC members may contact Source Insurance Agency, we offer a combond service. IADAC members may contact Source Insurance Agency, we offer a comFinancial 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 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. Westlake top five auctions for Q3-2010. They are: heim Nevada ranked first overall for Man the s Brown Brown Blvd., Arlington, TX Services 76006-5203; phone (817) pendent Automobile Dealers Association Corporation, 2521640-3838. Nancy R. Chapman for a bond quote at mon sense approach underwriting. A Nancy R. Chapman for a bond quote at mon sense approach to underwriting. A Periodicals postage postage paid paid at at Dallas, TX TX and and at at additional additional offices. offices. POSTPOSTservice. IADAC members may contact Insurance Agency, weto offer aare: com- bond Nancy R. Chapman for aoverall bond quote atsecond mon sense approach to underwriting. A heim 4 Periodicals five auctions for Q3-2010. They Nevada ranked first for the Periodicals postage paid atDallas, Dallas,phone TX and(817) at additional offices. POST- topSource straight quarter, ranking first for sale resul Brown Blvd., Arlington, TX 76006-5203; 640-3838. 888-855-0100 or nchapman@aec-mgmt.com. business’ net worth is the key along with the MASTER: Send address changes to NIADA State Publications, 2521 nchapman@aec-mgmt.com. business’ net the the MASTER: Send changes to State 2521 R. Chapmanor a bond quote at mon sense approach to is underwriting. A 888-855-0100 orfor 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 NIADA offices. State Publications, Publications, 2521 Periodicals postage at address Dallas, and at additional POSTstraight quarter, ranking first for sale results and Brown TX opinions 1. Manheim Nevada for personal character of the business owner. 1. Manheim Nevada Brown Blvd., Arlington, TX 76006-5203. The statements and opinions personal character of the business owner. TBlvd., H EArlington, W E to S T76006-5203. CO A Publications, SThe T statements DEA Land ER 2011 w wthird wor . i nchapman@aec-mgmt.com. a d service. ac.or g Brown Blvd., Arlington, TXNIADA 76006-5203. The statements and opinionsJUNE/JULY 888-855-0100 business’ net worth is the key along with the personal character of the business owner. MASTER: Send address changes State 2521 expressed herein are those of the individual herein are individual 1. Manheim Nevada third for service. expressed herein are those those of of the the individual 2 Rawls Auto Auction Brown Blvd.,expressed Arlington, TX 76006-5203. The statements and opinions personal character of the business owner. 2 Rawls Auto Auction authors and do not necessarily represent the views of The West Coast authors and do necessarily represent authors and do not not necessarily represent the the views views of of The The West West Coast Coast expressed herein are those of the individual 2 Rawls Auto Auction 3. Auto Bill Walters, VP of remarketing, says Dealer, IADAC, or the National Independent Automobile Dealers As3. Norwalk Norwalk Auto Auction Auction Dealer, IADAC, or the National Independent Automobile Dealers AsDealer, IADAC, or the National Independent Automobile Dealers Asauthors andsociation. do not necessarily represent the views of The WestorCoast Likewise, the appearance of advertisers, their identificaCA_0611.indd 4 5/17/11 PM impro sociation. Likewise, the appearance of advertisers, or their identifica3. Norwalk Auto Auction Bill Walters, VPperformance of remarketing, says over sociation. Likewise, the appearance of advertisers, or their identifica4. Brashers Salt Lake Auto Auction all auction has 4:23 been Dealer, IADAC, or the National Independent Automobile Dealers As4. Brashers Salt Lake Auto Auction impr
D E A L E R B O N D H E L P Remarketing D“Westlake E A L E R B O N DReleases H E L Q3 P Top Auctions Li
“Westlake Remarketing Releases Q3 Top Auctions List”
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Exec Director Message IADAC On Track is the message I bring to our members. These past few months have been, at times, frustrating, always very busy, but also very rewarding. Beginning this March and April, I have been able to get out to dealers with several meetings, and the interaction from those in attendance has been very positive. Recognizing the busy schedule dealers have and their inherent need for food, the format of having a meeting and luncheon at an auto auction after it ends has worked well. The Dealer Knowledge Trivia Quiz started as a fun
IADAC exists to improve the dealer community and this opportunity should not be wasted. Few governmental agencies will listen and respond to your comments, so please recognize this special relationship and make the best of it.
way to begin the meeting and has evolved into a great educational tool. During our meetings, we touch on many subjects, and almost everyone has a comment or question. Brisk discussion and interaction prove the material we provide is of great value. A prize for the winner is always available, and that creates competition among the dealers. Knowledge is the key to a healthy and compliant dealer. Over the years, IADAC has developed a great relationship with DMV, thanks in large part to the efforts of our lobbyist Bill Dohring. As such, the DMV allows us opportunities to point out deficiencies our dealers relay to us. Very soon, we will be having another roundtable discussion with DMV heads to discuss problems and solutions our dealers are experiencing. If you have specific, repetitive problems you are experiencing with DMV, please contact us so we can communicate those issues to the agency. You can email our lobbyist Bill Dohring with those comments at sgtmemo@yahoo.com.
BY L ARRY L ASKOWSKI
IADAC exists to improve the dealer community and this opportunity should not be wasted. Few governmental agencies will listen and respond to your comments, so please recognize this special relationship and make the best of it. If you are not a member and would like to be added to our email list for future events, send an email to larry@iadac.org with the email address you would like to add. Remember, just because you receive this magazine doesn’t mean you’re a member. Most recipients of this magazine are not members. Membership is quick and easy, and pays back in many ways. Ninety-nine percent of dealers will actually easily cover the cost of membership with the discounts from our VIP Card Program, plus put a few extra dollars in their pocket. Get started now and send us your application. IADAC is a non-profit association and we rely on membership to continue serving the California auto dealer.
Protective NCP Protective’s Asset Protection Division is now an NIADA National Corporate Partner. The division brings more than 40 years of experience in the automotive sector providing F&I products and solutions focused on enhancing profitability and customer satisfaction to 8,000 dealerships throughout the U.S. and Canada. “Protective and the Asset Protection Division look forward to bringing our years of experience and F&I leadership to further relationships with independent dealers across the country,” said Rick Kurtz, vice president of dealer sales. “By bringing our proven success strategies to this marketplace we will increase dealership F&I revenue with a variety of solutions tailored to their unique needs. Our proven training approaches, new F&I revenue strategies, menu solutions and advanced F&I technology nicely compliment what the independent dealerships tell us is important to them.” Protective has created a unique and important vehicle service contract product exclusively designed for the independent dealer audience. Through a careful examination of marketplace needs, this product will bring attractive terms and eligibility guidelines and competitive pricing to the independent dealership and their end consumers.
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Legislative update As I reported in my last article, the budget problems we are facing in California have moved legislators away from concentrating on making our lives miserable with bills such as AB 68 and SB 95. Instead, they’re instead focusing on ways to find money for the budget shortfall. That’s not to say we don’t read all the legislation introduced and the amendments to ensure no one pulls a fast one and amends an existing to have an adverse effect on the used car industry. DMV Relentlessly Pursues Illegal Dealer Activity (curbstoning) Throughout the state, DMV investigators are following up on leads from our members and going to the locations and citing and towing cars putting a real dent in illegal sales. In the last two months in the L.A. area, they have towed more than 60 cars and made five arrests during their investigations. After a lengthily conversation with an investigator, it was said the best part about the whole deal is when the illegal dealer has to go to the tow yard to redeem the vehicle and finds out he has to pay for towing and
storage, make the registration fees current (including late fees and penalties) before the car can be released. This really takes the profit out of selling off the street and unfairly competing with honest dealers. Our program is so successful I have had private parties call me saying how they have been ripped off and heard IADAC can help, which we’ve been able to do. DMV feels the people who get taken advantage of our victims and really want to stop these illegal sales. Thank you, DMV investigators. Illegal Activities Include Not Just Vehicle Sales Check out the following notice for dealer education: Make $6K per Month at Home in the Auto Wholesale Business from Home Make money buying and selling wholesale cars from home, or simply by selling cars for your friends, family or yourself and extend the lower price to them. You’ll be given a Step-by-Step Guide on How to get a Car dealer license and operate a profitable used car business from home! You will learn how and where to buy at wholesale price and sell
at retail for huge profits. In addition I will teach you how to make $ 3,000 to $ 6,000 per month part time. FREE list of all the Dealer Auctions in the USA. Class DMV approved (which it was not) If a dealer were to make this kind of presentation in an ad, he would be shut down and fined. The thing that’s wrong with this misleading notice is they allege you can be a used dealer from your house, which is illegal. I turned this over to DMV investigations and they immediately contacted the individual made him change the notice and get DMV approved. For all you dealers who need continuing education, don’t get caught up with a flyby-night course. Come get your continuing education at the IADAC meetings for a reduced cost; $25 for IADAC members and $50 for non-members (that’s at least $35 to $55 in savings!). See you all at our upcoming meetings! BY B I L L D O H R I N G, I A DAC L O B BY I S T
Brasher’s Sacramento Auto Auction Celebrates 33 Years
Brasher’s Sacramento Auto Auction celebrated its 33rd anniversary with a two-day celebration on March 29-30. The event kicked off with “Brasher’s Live!” on Monday night, when the auction entertained customers at 5 p.m. with a catered dinner followed by a performance by comedian Maz Jobrani. After the dinner and show on Monday evening, Brasher’s held a 500-unit sale, following up on Tuesday with more than
2,000 units, the biggest sale of the year. “We’re proud to mark 33 years in Sacramento,” said John Brasher. auction president. “We celebrated with a special event that has become part of an annual tradition here at Brasher’s Sacramento Auto Auction: two days of fun, food and celebration and one of the best times of the year to buy and sell vehicles in Northern California.” Brasher explained customers attending Brasher’s Live! On Monday evening saw the auction in a way they’d never seen it before. The auction arena was transformed into a formal banquet room, complete with flowers, candlelight and a catered menu. Following dinner, the auction’s guests moved into Brasher’s Live! Comedy Club for a performance by comedian Maz Jobrani. Hailed by L.A. Weekly as “devilishly
funny,” Maz has flexed his comedic muscle on The Tonight Show with Jay Leno and on his own comedy tour that has made headlines everywhere from CNN to Newsweek. “After the show we cleared the auction arena to make way for a 500-vehicle sale on three auction lanes,” explains Brasher. The auction featured vehicles from Ford, ARI, Golden One Wells Fargo Dealer Services, Wheels and a number of new car dealers. The next day, Tuesday, buyers and sellers returned to the auction for the biggest sale of the year, free lunch, and a sale-end drawing for an F-150 Harley Davidson Edition Crew Cab. Featured national consignors included Ford Credit, AmeriCredit, Repo Remarketing, Enterprise, Hertz, DTG, Donlen and more. “We saw dealers join us from all over the country for our Anniversary Sale,” said Brasher. “It was our opportunity to thank our customers for their loyalty over the years, and a great opportunity for our customers to buy and sell vehicles at the auction!”
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Has your dealership implemented a process for engaging customers and shoppers with QR codes? If the answer
Point Scan Sell QR CODES 101: QR codes have optimized the way information is shared, making it easier to direct somebody to your information on-site, such as inventory, coupons, service, specials, blogs, events and more.
is no, don’t worry because you’re not alone. If you don’t know what a QR code is or have heard of it and don’t know how it can benefit your dealership, you’ll find some answers here. QR (Quick Response) codes are becoming increasingly popular for any business looking to provide information to current and potential customers quickly and effortlessly. The codes are a byproduct of the smartphone movement sweeping America. Nielsen reports 31 percent of U.S. mobile phone owners had a smartphone as of December 2010 and expects smartphones to become the majority by the end of this year. eMarketer predicts smartphone ownership will reach 43 percent of the U.S. mobile population by 2015. QR codes have optimized the way information is shared, making it easier to direct somebody to your information on-site, such as inventory, coupons, service, specials, blogs, events and more. Smartphone owners have access to a wide variety of apps and QR code readers are a standard app on most, if not all, smartphones. Because the technology is so new and progressive, not all QR code scanners can read all QR codes, but these instances are rare and will become fewer as the technology advances. The basis for QR codes is quite simple and nearly the same as the standard barcode seen on merchandise tags or VIN stickers on vehicles. Barcodes were developed to carry information in a very small space that is scan-able; they’re limited in that they are horizontally shaped. QR codes work the same way, but more information can be carried since they are based on horizontal and vertical dimensions, so there is no limitation to what or how much information can be included. Common types of QR-coded information include URLs, text, phone numbers and SMS. Remember, each QR code is unique, so there is no end to the possibilities here. Here is an example of how using QR codes can help you gather potential customer’s information. Say you have customers looking at vehicles after normal business hours (or on Sundays), but choose to call later to learn more about a certain one. This is the typical thought process of many people. By having a QR code on your vehicle, you can get someone engaged into requesting more information at that moment while lessening the risk of the customer losing interest by morning.
At the same time, your potential customers are excited because they get to use their smartphone technology by simply scanning the QR code. From there, they can get to your mobile website, maybe grab a mobile coupon or check out whatever dealership info you want to share. We recommend you have some type of quick form for people to complete for a coupon. Guess what? Now you have contact information; in other words, my friends, you’ve got leads! As with email 15 years ago and texting 5 years ago, people are excited about how technology is giving them more ways to communicate today. During the sales process, a lot of customers will prefer this because of the non-invasive way of communicating with the dealership. You will see companies offering a free online book by scanning a QR code in an airport or a major advertisement in a publication with a code printed in the corner. These are all enticements that target engagement from potential customers at the peak of their initial excitement or curiosity. Because it is effortless to scan a QR code, pairing them with a marketing strategy will help you capitalize on customers engaging when their emotional excitement is high. The more time that passes, the more distant the customer becomes. You can see how powerful QR codes can be with convenience and timing. Be careful not to be overwhelming in requesting the customer’s information. Use QR codes in a variety of different ways to not only generate leads, but to deliver your message. For instance, in your next mailer, create a QR code that sends them to a web form that gives the customer a free car wash. All they have to do is complete and submit the form, then present the generated coupon to a sales manager. For a softer approach, implement a process to get more Facebook fans by creating a QR code that takes a person to your Facebook Fan page, keeping them totally in their comfort zone. Be sure to scan the codes in this column to better understand how QR codes can work for your dealership. BY DUSTIN JANSSON
Dustin Jansson provides consulting for e-commerce and social media strategies for dealers, as well as providing a full suite of inventory management, marketing, and photography solutions. Staying ahead of the technology curve in the autos business is his passion. Contact him at 303232-3435 or dj@dealernetsolutions.com.
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Odometer Replacement on Exempt Vehicles NAAA has been presented with the following scenario: A customer bought a vehicle that was exempt, but the odometer had been replaced with one that had significantly fewer miles (280,000 to 108,000). The seller did not Despite the age of this interpretation it remains relevant as the statute has not changed.
announce that, so the seller was told he had to buy it back. The seller balked saying that being exempt it didn’t matter. Although disagreeing with his argument, we checked with a few other auctions and were surprised that many auctions agreed with the seller. A review of the National Highway Traffic Safety Administration (NHTSA) website found information explaining that an odometer rollback was illegal on an exempt
vehicle but did not address odometer replacement. A call was made to the NHTSA for clarification. The NHTSA confirmed that all laws concerning odometers, except title documentation, apply to exempt vehicles. NAAA Arbitration Policy (http://www. naaa.com/pdfs/NAAAArbitrationPolicy_ Jan2011.pdf) states on page 7, item 10, that the seller must announce these discrepancies. Additionally, the NHTSA also states that auctions are required to record the mileage on exempt vehicles somewhere in the records even if it does not get recorded on the bill of sale. The federal statute concerning odometer service, repair, and replacement is 49 USC 32704 and the statute concerning auction records is 49 USC 32705(e). Additional guidance concerning auction companies may be found in the Code of Federal Regulations under 49 CFR 580.9. The following is an excerpt from a previously issued interpretation letter concerning odometer replacement procedures. It is from NHTSA General Counsel Frank Berndt written to Key Scales
Ford, Inc. on September 25, 1980. Despite the age of this interpretation it remains relevant as the statute has not changed. “This is in response to your letter of September 4, 1980, in which you requested information on the proper procedures to be followed with respect to the odometer setting when a new odometer/speedometer head is installed. When an odometer is repaired or replaced the mileage on the repaired or new odometer must be identical to that on the odometer before the repair or replacement. In those instances where the odometer is incapable of registering the same mileage, the odometer must be adjusted to read zero and a notice in writing must be attached to the left door frame of the vehicle specifying the mileage prior to the repair or replacement of the date of such service. There is no specified format for the notice, but it must include the above information.” For additional concerns, the point of contact in NHTSA’s Office of Chief Counsel is David Case at david.case@ dot.gov or 202.366.2239. In order to receive a written interpretation you will need to describe your particular concerns and questions in writing. NHTSA’s response will be posted on their website to serve as guidance for others.
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Ford F-150, Mercedes-Benz M-Class Recalls By ADR Staff FORD F-150, LINCOLN MARK LT Ford is expanding a recall of F-150 and Lincoln Mark LT light trucks. In January
2010, the National Highway Transportation Safety Administration (NHTSA) opened an investigation into inadvertent airbag deployments. As a result of that investigation, Ford recalled about 144,000 2005 and 2006 model year F-150s in March. The most recent announcement expands the recall to include certain model year 2004 through 2006 F-150s as well as certain model year 2006 Lincoln Mark LTs. A total of 1,325,000 units are affected. According to the NHTSA documents, if the airbag clockspring jumper wire comes in contact with the driver side frontal airbag lower horn plate, the wire insulation may become chafed, creating a potential for a short circuit. If this occurs, the airbag warning lamp may illuminate indicating service is required. As a result, the driver side frontal airbag could inadvertently deploy increasing the risk of injury or loss of vehicle control if occurring while in motion. Ford will notify owners and instruct them to take their vehicles to a Ford or Lincoln dealer to have a new clockspring jumper wire installed that incorporates a protective mesh cover. Repairs will be performed free of charge. The recall on the expanded population is expected to begin on or about May 9. Owners may contact the Ford customer relationship center at 866-436-7332. Ford’s recall campaign number is 11S18.
NADART Offers New Retirement, Financial Resources NADART (NADA Retirement Administrators, Inc.) is pleased to announce a number of new products and enhanced services, which includes the Sub20 Plan, online investment guidance and NADART’s Executive/Deferred Compensation Plan. NADART offers a number of retirement plan options, including the Sub20 Plan designed specifically for small businesses (a 401(k) plan for those with 20 or fewer employees). As an added benefit for starting a new plan, employers will benefit from a three-year tax credit. In addition, the Executive/ Deferred Compensation Plan allows owners and select employees to contribute up to 100 percent of their compensation on a tax-deferred basis to a retirement savings plan. The company has provided and administered retirement plans for dealerships and automotive trade associations since 1957. It offers retirement plans and financial services to companies in all industries, as well as to members of NIADA. NADART maintains about $3 billion in assets for close to 100,000 participants nationwide. For more information, visit www.nadart.org/retirement or contact the provider at 800-462-3278 or nadart401k@nada.org.
MERCEDES-BENZ M CLASS
Mercedes-Benz is recalling certain model year 2000 through 2002 M-Class and model year 2000 through 2004 M-Class AMG vehicles. The recall affects 136,751 units. The cruise control system in the affected vehicles allows the driver to disengage the system in a number of ways, including tapping the brake pedal, using the cruise control stalk, or braking the vehicle enough to reach a certain rate of deceleration. Mercedes-Benz has determined that, under certain circumstances, use of the brake pedal may not automatically disengage cruise control as expected by the driver, although the other means of deactivating cruise control remain fully operative. Specifically, where the driver pumps the brakes rather than applying consistent pedal force, the level of force required may be unusually high. The difficulty or delay in disengaging the cruise control can increase the risk of a crash. Dealers will repair the vehicles free of charge. The safety recall is expected to begin during September. Owners may contact MercedesBenz at 800-367-6372. Editor’s note: Owners may contact the NHTSA vehicle safety hotline at 888-327-4236 (TTY 1-800-424-9153). For more information about these and other recalls, visit http://www. safercar.gov. 15
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IADAC Quality Dealer of the Year Awarded!
DMV Tips In my experience, auto dealers create many of their DMV registration problems because they don’t pay attention to the details. Knowing how to do your paperwork when it comes to registration is half of the battle. Just a simple signature missing or an incomplete document can cause the DMV to return your paperwork. This can result in additional DMV fees or penalties. Make sure all areas of the each form are neatly printed and signed accordingly. There are a few things that can help you navigate your way to completing registration and getting your customers in a timely Each their year registration the Independent Automanner. mobile Dealers Association of CaliforInia ambestows surprised upon many one dealers know of don’t its members smog are required for dieselthe certificates Victor J. Snyder Memorial Quality powered unlessAward. manufactured Dealer vehicles of the Year This is the prior 1998award or with a GVWR of more highest given by IADAC andthan recog14,000 Even contribution thought thetosmog may nizes lbs. a dealer’s his/her combe munity, in DMV’s system electronically, his/her association and the the public he/she serves.
This year’s Quality Dealer is Mike Gough of MG Auto Wholesale in Vacaville, California. Mike was born in San Diego, yet began certificate be turned in with his work instill theneeds auto to industry in Indiana. thequickly paperwork. He showed his proficiency for the Sign up at business. He for tookDMV a briefmemos hiatus inonline Boston, www.dmv.ca.gov. has not sent then returned to the DMV auto industry working outAuto by mail years;Clasthey atmemos Fairfield Salesfor andmany California are before only sent by e-mail sics forming MG now. Auto Wholesale in Another wayCalifornia. to makeMike sure your 2000 in Vacaville, has been paperwork will be completed an IADAC member since 2005,when and isturned a well in on a wholesaler bundle is in to the have accurate fees respected community. calculated DMV Generous for to vehicle a fault, registration. Mike is quick to has a website withand an money online for registration donate items, time a worth calculator that’s veryand accurate. Using this cause. He volunteers organizes events, will as be crab a bigfeeds, help attothe youlocal if you such highquestion school, about much your customer Will C.how Wood. He’stoancharge avid golfer and softfor player. registration renewal. Alsoteam remember ball In fact, his softball won a you must complete the transfer tournament in Lake Tahoe this year.within 30 days of has expiration you willbuilt be forced to Mike enjoyedorsuccess on honpay the esty andrenewal. branded his business with fair DMV Mike is very serious practices. is truly the about type ofmaking dedisure dealer dealersIADAC are sending refunds back to cated members had in mind their they customers when thethe dealer collects when first conceived Victor Snymore than necessary. keep der memorial Quality Make Dealersure of you the Year Award in 1969.
NEW MEMBER BENEFIT!
a detailed record of all refunds you have sent out. Using a registration service can be a hugeIADAC’s asset to your company. You can save recently updated website, www. timeiadac.org, and moneyhas if you let a service take a new feature that is of overgreat the responsibilities of posting fees value to our members. It is a Question on time, completing all documents as and Answer (Q&A) blog for the use of our memrequired, and calculating any additional bers. Members can ask any industry related quesfees on top of the transfer fee. Something tion. We have a panel of industry experts that will else important to know is money can give their best opinion on the matter at hand. This be saved with regard to penalties on service is free to our members. repossessed vehicles if you post fees within 60 days of purchase. This feature is unique to California. We are leadElectronic DMV processing will be ing theatway, nationwide, to providing available North Bay Auto Auction real time information to our members. Just think; the next in June. Call 707-410-8517 for more time you wake up at 3a.m. with an issue bugging information. you……..click onto us and ask! B Y E R I Chow A M Oit R Rworks: O W, Here’s N O R T H B AY A U T O
1) Send an Ae-mail U C T I O Nto 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
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NMVTIS Created to Help Dealers In today’s economic environment, there is a great deal of fraud taking place and if you aren’t careful, it could be your wallet and reputation that suffers.
To prevent fraud and protect both dealers and the general public, many dealers are utilizing the National Motor Vehicle Title Information System, or NMVTIS. The system, run by the U.S. Justice Department, was created to prevent the introduction of branded or stolen motor vehicles into interstate commerce, thus protecting auto dealers and consumers from fraud, and hopefully reducing the use of stolen vehicles for many other illicit purposes. Through NMVTIS, businesses and consumers are empowered to check the VIN of any vehicle they are considering acquiring at an exceptionally low cost. Readily available to used auto dealers, providers of NMVTIS data also encourage wholesalers, among others, to check VINs before investing in vehicles, thus keeping them even one step further from unsuspecting buyers. The data available through NMVTIS is unique in that, unlike other commercially available services, it’s a government program with strict regulations regarding reporting. NMVTIS information includes timely data from state motor vehicle agencies and other entire sectors (such as insurance, auto recyclers, junkyards, and salvage businesses) that are addressed by the AntiCar Theft Act. Regulations require all states to participate in the NMVTIS program, and all entities are required to provide specific information to NMVTIS in a specific format. This uniformity is intended to serve as a reliable source of title and brand history for autos, and also elevates the likelihood that a vehicle stolen in Maine will be caught if resold in Florida. The accuracy, and timeliness, of the information, is what differs from other private vehicle history reporting services. Information is updated by most states in real time and, at a minimum, by all states within several days of any transaction occurring. The system contains more than 30 million salvage and total loss records, and imposes strict penalties on entities who fail to report required information. NMVTIS also includes information on buses, trucks, motorcycles, recreational vehicles, motor homes, and tractors. As a dealer, there are certain scenarios that should be investigated before investing in a used auto and NMVTIS is the most accurate, cost-effective source of this information. In addition to accurate, timely information on a vehicle’s title history, the system can flag any brands given to a used vehicle, as well as provide salvage and total information, and odometer readings. This means it’s likely that a vehicle that has been flooded, or totaled and rebuilt, or even had the odometer tampered with, will be identified. According to the DOJ, the existence of NMVTIS has led to a decline in motor vehicle thefts. By reducing the market for stolen vehicles, a natural decline in thefts was sure to follow. In Virginia alone, a 17-percent decrease in thefts was reported upon the state engaging with NMVTIS. Arizona, one of the first and most active NMVTIS participant states, has experienced a 99-percent recovery rate on stolen vehicles. And in Florida, a car theft ring responsible for cloning more than 250 cars, valued at $8 million, was disbanded. Does this mean dealers are now safe due to the mere existence of NMVTIS? Unfortunately, they are not. There are still land mines to be aware of. NMVTIS is designed to collect information from states, but not change or streamline laws and terminology from state to state. Each state has its own laws, and terminology, which may be different from their neighbors. That’s why it’s important to know the definitions in the states you are searching (if you find a used vehicle has a history there). The NMVTIS service provider has a glossary of most terms, on its website. It is also important to know a NMVTIS Vehicle History Report is intentionally concise, and is only intended to provide data on the five key indicators associated with preventing theft and fraud. If your needs go beyond these indicators, it may be best to supplement your NMVTIS search with additional reports from other providers who specialize in different types of information.
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LEGAL MINUTE Are You Backdating Your Contracts? Riddle me this: the customer comes back to rewrite a contract because the financing changed. The bank approved the deal for $1,500 less and another point on the interest rate. What date do you put on the second contract: the date of the original contract or the date you’re doing the rewrite? For years, many dealers dated the second contract the date of the original deal. There was no malice involved; it was simply thought the second contract should reflect the date of the original deal for a variety of reasons, including having the contract correspond with the DMV Report of Sale, for special financing incentives such as rebates that are date sensitive, etc. However, the California Court of Appeal recently made clear such backdating violates numerous state and federal laws. Arguably one of the most significant case impacting California auto dealers in recent years involved a common industry
practice relating to the re-signing of contracts. In Nelson v. Pearson Ford, 186 Cal. App. 4th 983 (4th Dist. 2010), the court essentially found the way many California dealers had been doing rewrites of contracts after a spot delivery to a consumer was a violation of California’s Automobile Sales Finance Act. In the July 2010 decision by California’s 4th District Court of Appeal, the court held a dealership violated several laws by back dating the retail installment sales contract and failing to properly itemize the purchase of insurance on the contract. The case also illuminated some class action issues, including discussion of a flawed Offer to Compromise.
Contract Back-Dating
The court also held a backdated contract re-written six days after the first contract violated California’s so-called “Single Document Rule,” the federal Truth in Lending Act and the Consumer
Legal Remedies Act. The court found the backdating violated the Single Document Rule because one could not look at the rewritten contract and determine that it was actually signed six days later than indicated. The court found a person would have to look at a separate document, the Acknowledgement of Rewritten Contract, to make that determination. Truth-In-Lending Violation The court also held the dealer violated TILA by calculating the interest from the date of the original contract, finding the interest should have commenced starting with the second contract.
Insurance and Other Issues
Finally, the court decided the dealer’s failure to properly itemize the insurance premium on the contract, as opposed to breaking it down on a Due Bill, violated both the Automobile Sales Finance Act and the CLRA. The court granted class action status to two classes: a class of customers who had their contracts backdated, and a second class of customers who failed to have their insurance premium properly itemized. The court gave the back dating class restitution of $50 each, which amounted to $222,785. It also gave the insurance consumers the right to rescind their purchase, less an amount attributable to their use of the vehicle. The court awarded plaintiff ’s attorneys fees and costs of $401,358. The dealer argued he should not have to pay plaintiffs’ attorneys fees because of a Code of Civil Procedure 998 Offer to Settle in the amount of $500,000 which the plaintiffs rejected. However, the court concluded the CCP 998 Offer to settle was flawed because it was a lump sum settlement, instead of divided between the two classes. Dealers should have changed their practices by now on re-writes in light of the Pearson Ford decision. If not, you’re at risk. BY L A R RY M I L E S Larry Miles of The Miles Law Firm in Sacramento has been representing auto dealers, auto auctions, auto lenders, and other auto industry businesses for almost 30 years. For more information, visit www.milesfirm.com.
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Fuel Economy
MISSING BLANK COLORADO CERTIFICATES OF TITLE
It shouldn’t be surprising one of the first considerations shoppers coming into your showroom will mention is fuel economy. The latest Kelley Blue Book Market Intelligence Survey concerning consumer sentiment and gas prices revealed the current economic situation, coupled with concern over the rise in fuel prices, has further caused an increasing number of new- and used-vehicle shoppers to change their vehicle consideration criteria. In April, KBB discovered the vast majority of shoppers — 84 percent, in fact — said gas prices have influenced vehicle considerations, revealing a steady increase in the role fuel prices have played in purchase decisions since January. In addition, analysts found 90 percent of the latest Kbb. com survey respondents expect gas prices to climb even more during the next 30 days. KBB pointed out that those planning to purchase their next vehicle to get better fuel economy has been on the rise since the beginning of 2011, increasing 12 percentage points from January to April. When asked about the effect of the economy on future vehicle purchases, analysts reported 58 percent of consumers said the economy has caused them to make a downgrade. The most popular downgrade was engine size (41 percent), followed by decreased vehicle size (40 percent), less or eliminated vehicle options (35 percent) and switching from new to used (32 percent). Kelley Blue Book Market Intelligence officials explained they employed the Van Westendorp pricing model as a research strategy to understand consumers’ price sensitivity, discovering that rising gas prices continue to outpace consumer acclimation to a higher price point for fuel. Analysts calculated the current optimum price point for gasoline has risen since the beginning of this year, from $3 per gallon (with an acceptable range of pricing from $2.75 to $3.25) in January and February, to the current optimum price point of $3.23 (with an acceptable range of pricing from $3.07 to $3.41) in April. Therefore, if prices remained around $3.23 per gallon, KBB contends shoppers likely would not make major changes in vehicle consideration criteria. However, at the $4 per gallon price point, the firm believes 70 percent of consumers will feel that gas is so expensive it will affect their vehicle consideration. And at $5 per gallon, KBB stressed that almost all shoppers (92 percent) say their vehicle consideration will be affected. Furthermore, Kelley Blue Book found its latest Kbb.com survey revealed that despite steadily climbing gas prices, many shoppers feel their personal economic situations are somewhat improving. Survey orchestrators determined the number of respondents indicating that their current economic situation is “poor” decreased by 5 percentage points from 27 percent in February to 22 percent in April. Also, KBB noted concerns about becoming unemployed decreased 9 percentage points from 34 percent in March to 25 percent in April. “As we head into summer driving season, gas prices are going to continue to be a hot topic both in the auto industry and among the car-driving American public,” explained Jack Nerad, executive editorial director and executive market analyst for Kelley Blue Book. “Auto manufacturers increasingly are offering more fuelefficient vehicles, not only due to the federally mandated Corporate Average Fuel Economy (CAFE) regulations, but also because of rising consumer demand, as indicated by the latest kbb.com survey findings,” Nerad continued. “It’s important for shoppers to know that there are more fuel-efficient options today than ever before, from subcompact cars to decked-out luxury rides and even highly efficient trucks and SUVs, many of them offering astounding fuel economy numbers, especially in light of the features and safety they offer,” he went on to say. The latest Kelley Blue Book Market Intelligence survey about consumer sentiment and gas prices was fielded to 480 in-market new- and used-vehicle shoppers on Kbb.com from April 12 to 18.
A box of blank Colorado title certificates failed to be delivered to the El Paso County Motor Vehicle Office on Friday, March 11. The control numbers are H8192001 through
H8194000.
SECURITY FEATURES INCLUDE:
• Printed on 8 ½ x 11 security paper. • Control number is on the lower right hand corner printed in red. • The background is composed of three vertical stripes. The outside stripes are light blue in color; the center stripe is light salmon pink with the state seal printed in the center. Please note the missing title certificates with the control numbers listed above are now void and may not be used as proof of ownership. If presented for any vehicle ownership purpose, they will be considered fraudulent and if any of them are turned in to your office, forward the information to Crystal Soderman, title services manager, at csoderman@dor.state.co.us or the Colorado State Title Section at 303-205-5608.
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WSM Auctions Joins VIP Card Program
Bart Malpass
New kids on the block? Hardly. Partners Jim
Pennington, Larry Champagne and Norm Haigh combined their experience and knowledge to create a new auto auction in Bakersfield and on April 13, IADAC welcomed them as the newest participants on the VIP Card Program.
With just 10 weeks of sales under their belts, the owners are pleased with the auction’s consistent growth. Representing IADAC at the sale were Terry Degmetich, two-time past president and current treasurer, Mark Glover, senior vice president, and his wife Mary, as well as IADAC Vice President Vince Cardinale and Executive Director Larry Laskowski. WSM is located at 1401 Skyway Drive next to Meadows Field Airport. You can fly into the airport, walk 100 yards to the lanes and be a part of the action. The consignment is a combination of bank and institutional vehicles, dealer trades and RVs. Online bidding is available and plans to join the Pipeline are in the works. DSC flooring also is available, and Chris Van Dorn was at this sale to assist WSM’s dealers. IADAC’s Vince Cardinale couldn’t resist WSM’s RV sale and drove away in a huge motorhome and travel trailer. IADAC thanks the owners of WSM for their participation and gratefully acknowledges the addition of our newest IADAC member benefit.
For a kid born in Baltimore, Md., to a second-generation auto dealer, it seemed only natural Bart would be a shoe-in for this market. As a way to earn money in high school, he started his own detail shop before he had a driver’s license.
He would hitchhike after school to get to his shop where he employed three other guys to clean cars for many of the dealers in Vallejo and Fairfield, Calif. It was during this time Bart gained his first knowledge about all the fine aspects of looking at a vehicle to see the good the bad and the ugly, or, as he says, “I learned how to call a car.” It was also during this time Bart met the person who would become his business, investment and life partner, his wife Joie. Together, they have taken the business from a successful detail shop where they had fun detailing hearses and ambulances to moving into the auto business where Bart sold vehicles for Todd’s Fine Cars and Fairfield Toyota, then became a manager for Avery Green Motors in Vallejo. Bart lived in Vacaville during this time as it was well suited as a central location for his profession. He has met and worked with the areas finest and enjoyed the association of many of the businesses best men and women that he’s had many a laugh with. Humor has always been part of Bart’s life and jousting with his fellow dealers, sales people and the public is one of the highlights of the business for him. He incorporated his business California Classic Inc. in 1983. From there, he moved into wholesale because it was faster paced and did not involve the wait you experience with the public. It was also during this time he had three children (Shawn, Paige and Meghan) who have been the special warm place of his heart as he adores each one of them. They are now 32, 30 and 25. The two grandsons, Gunner and Otto, must take mention here as all grandparents know this is where the kids really get fun. At the suggestion of his wife and business partner, Bart purchased a large commercial building on Highway 12 just off of Interstate 80 to house his vehicles and to rent to five other businesses. This was an excellent move for California Classics. In 1999, Bart moved his wife and youngest daughter, Meghan, to Sonoma as they were looking for a slower paced home lifestyle and “Slownoma” just the place. This is also where life is all about the “grape” and Bart discovered this immediately. Good friends who were growers for Kendall Jackson surprised Bart and came to Sonoma and planted the first portion of his vineyard. From here, it expanded to a manageable vineyard that produced 50 cases of wine each year. This has become a true lifestyle and journey of learning to make the nectar of the gods. The complexities of making wine, from growing the fruit to bottling a fine product, he finds similar to selecting the right vehicle and taking it to the point where it is also at its best. In winemaking, we have knowledgeable people and great books to help us do our best. IADAC has the knowledgeable people and resources to help all of us get our answers and do our best. I have now bought and sold more than 25,000 vehicles in my career and I say CHEERS! May I also have this same experience with my wine! It’s only 2,100 cases…anyone want to help?
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Dealer Spotlight: Mary Liz Auto Sales
When I was asked to do a story for the magazine about Mary Liz Perez, the song “It’s a Man’s Man’s Man’s World” popped into my head. It’s a perfect example of Mary
Liz’s life. She is often the lone woman bidding against all the good ole boys. Her road to success has been a rocky one. She has had to push hard for the buck, and the buck has pushed back a lot. Now with three kids, all in college or college bound, a new husband who helps her run her business, and all the usual money gobbling life problems to be faced, Mary Liz still attacks each day with the veracity of a shrew, and the smile of a loving friend. Born into a family of five children in Los Gatos (in the non-millionaire days, she emphasizes), Mary Liz started her auto career in cosmetics. She worked for Estee Lauder cosmetics, and quickly found herself rising throughout the company. She eventually managed the Estee Lauder transition into Macy’s. The knowledge of sales helped her when she took on a job as an ad agent for photographers and artists. Although she loved the work, she found the commute stressful, and the pressure created friction in her marriage. Mary Liz divorced her first husband, but retained custody of her three
young children. Knowing she needed to try to keep her work in the Petaluma area so she could be close to her children at all times, Mary Liz turned to family friend Mike Atkinson for a job. Mike had made a name for himself as a manager at Niles Buick. She started smack dab in the middle of tax season, and felt the pain of a slow season immediately. She didn’t let the lack of business detour her. As business warmed back up in June 1994, Mary Liz was raring to go, and found auto sales came to her easily. She had taken everything Mike had taught her and made herself one of the company’s stronger salespersons. Soon she moved over to Don Collins Buick, a very family-oriented business. She grew as a salesperson more than ever in the ten years she spent there. In 2002, Mary Liz applied for her own dealer license. She talked the used car manager at Don Collins Buick into selling her some junkers she could flip around and make a buck from. With money she had taken in an equity loan from her house, Mary Liz quickly grew her own business. She had an easy time finding a niche in the auto business that suited her and her family. Mary Liz married Mike Atkinson in 2009.
BY JO H N GREGO RIO
He had, at that point, been helping run the Hansel Group. While they were away on their honeymoon, Mary Liz asked Mike to leave his employer and help her run Mary Liz Auto Sales. He did. Together, Mary Liz and Mike have increased the size of their business and built strong relationships within their community and within the industry. They have found family is a great business to invest in (they have six kids between them). Today with all the hard economic pressure, Mary Liz still contributes to her community frequently, donating a car each year to the Petaluma High School Athletic Fund. She is a firm believer in the power of positivity, and she noted to me putting a positive energy out into the universe will only bring you prosperity. Mary Liz has no room for negativity and feels it consumes too much energy. She has found working with Mike to be the greatest pleasure in life (although he can be a real slave driver). When I asked her where she would be in 10 years, she told me she hopes her children become more involved, and that she can grow into a second location. Mary Liz is a perfect example of a woman in a man’s world, and she loves it! 21
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STOP CURBSTONING RELEASES CONSUMER GUIDE: D E T E C T I N G C O L L I S I O N R E PA I R We know that used car buyers today must navigate a minefield of unscrupulous sellers and haphazardly repaired vehicles. Among the worst offenders are “curbstoners”
– unlicensed individuals who buy and sell used cars to make a quick buck from unwary victims. That is why we put together a handy guide to help used car buyers detect collision repair. “ A Used Car Field Guide for Detecting Collision Repair ,” is an online booklet full of useful tips for spotting subpar repair work, ensuring there are no disparities between what a seller says and what the car shows. We’ll share some quick, simple things you can do to uncover any telltale signs of collision damage when buying a used car, including: • How to identify whether body panels have been replaced • How and where to detect paint abnormalities • How to detect frame damage, and more!
A Used Car Field Guide for Detecting Collision Repair www.stopcurbstoning.com It used to be fairly easy to spot the signs of a collision repair: overspray, bad color matching, and misaligned body panels. Now, with computers assisting with everything from frame straightening to color matching, it’s a lot harder to tell if a vehicle has been in a collision, especially if the repair was done well.
vehicle history report form a service like AutoCheck, are absolutely vital steps to take before paying money for any used car from a private party.
That’s great if you want your car fixed after an accident. But it makes things hard if you’re looking for a good used car.
However, here are some quick, simple things you can watch for when you’re out looking at cars. One element on your side is simple greed: curbstoners want to maximize their profits. After all, they only need to fool a buyer long enough to collect the cash. So, curbstoned cars rarely get top-notch repair treatment.
NOTE: We’re not saying to avoid any car that’s had bodywork. A vehicle that’s been properly and professionally repaired after a minor fender-bender could be a terrific bargain. We are saying to watch for disparities between what a seller says and what his or her vehicle shows. Of course, no one can catch all the bad cars. That’s why an inspection by a trusted, experienced mechanic, along with a
At A Glance A walk around the vehicle in good light will often disclose whether or not a body panel has been replaced or repainted. Look at the car from several angles to make sure the color matches across all the body panels. Look also at the reflections in the paint – factory paintwork is mirror-smooth, even when dirty or dinged up. Signs of repair often reveal themselves in a slightly rippled reflection, or a reflection that doesn’t exactly line up across two body panels. Be sure to look at reflections from several angles. If the car is so dirty that you can’t see reflections, you might need to ask for the car to be washed. While you’re sighting down the sides of the car, check to make sure the body panels all fit flush, and that the gaps between the panels are even from top-to-bottom and side-to-side.
Good places to look for paint overspray or excess paint include: Around electrical conduits in door jambs Near door, hood, and trunk hinges On window and door seals Around seals and fittings in the engine compartment firewall Along the trim pieces inside wheel wells
Sun damage typically affects large body surfaces like hoods and roofs. When you see small patches of peeling clear-coat, especially in corners and other hard-to-reach areas, they may indicate a poorly prepped paint job. At the same time, beware of too-perfect paint. Even a garaged, well-cared-for used vehicle will have small paint chips and even minor dings. If the chin fascia beneath the front bumper is pristine, it may have been recently replaced or repainted.
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S TA T E W I D E WEBSITE F E AT URE S A N N O U N C E D! IADAC’srecently recentlyupdated updatedwebsite, website,www.iadac.org www.iadac.org, ,has hasaanew new feature feature that that isis of of great great value to IADAC’s ourmembers. members.ItItisisa aQuestion Questionand andAnswer Answer(Q&A) (Q&A)blog blog for for the the use use of of our our members. members. Members Members our canask askany anyindustry industryrelated relatedquestion. question.We Wehave haveaapanel panelofof industry industry experts experts that that will will give give their can bestopinion opinionononthe thematter matteratathand. hand.This Thisservice serviceisisfree freetotoour our members. members. best Thisfeature featureisisunique uniquetotoCalifornia. California.We Weare areleading leadingthe theway, way,nationwide, nationwide, to to providing providing real real time This informationtotoour ourmembers. members.Just Justthink; think;the thenext next time time you you wake wake up up at at 3am 3am with with an an issue issue information buggingyou……..click you……..clickonontotoususand andask! ask! bugging Here’show howit itworks: works: Here’s Sendananemail emailtotoIADAC IADACthrough throughour ourwebsite website 1)1)Send requesting your your login login and and password password requesting membershave havethem themissued) issued) (all(allmembers 2) Log in to the “Members Only”section, section,using using 2) Log in to the “Members Only” yourlogin loginand andpassword password your Checkour ourlibrary libraryofofFAQ FAQ(frequently (frequentlyasked asked 3)3)Check questions)forforthe theanswer answertotoyour yourquestion question questions) 4) Ask your question, giving us as much 4) Ask your question, giving us as much information/background as possible - we want information/background as possible - we want to get it right the first time. to get it right the first time. 5) Your question will be answered within a 5) Your question will be answered within a couple days - you will be sent a link to the couple days - you will be sent a link to the answer posted on our site, and the Q&A will be answer posted on our site, and the Q&A will be added to our FAQ! added to our FAQ!
Please email email Mike Mike Macaulay Macaulay directly directly Please with any any concerns concerns or or advice advice to to help help with get the the ball ball rolling. rolling. Spread Spread the the word word get all your your friends! friends! toto all Mr. Rey Rey Guluarte, Guluarte, of of Autos Autos Guluarte Guluarte Mr. Centro, CA, CA, has has volunteered volunteered to to -- ElEl Centro, translate any questions posted in translate any questions posted in Spanish. Spanish. MikeMacaulay Macaulay Mike IADAC Magazine/Website Chairman IADAC Magazine/Website Chairman Email- carsystems@comcast.net Email- carsystems@comcast.net
P.O. Box 343 , Roseville, CA 95661 P.O. Box 343 , Roseville, CA 95661 916.893.3306 • www.iadac.org 916.893.3306 • www.iadac.org
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W hat is your liability selling vehicles at auction? Most of us assume once the auction has made a ruling on arbitration, the decision is binding and final. Well, apparently this is
not the case. Recently, an IADAC member sold a vehicle at auction and was sued by the purchasing dealer because the vehicle had engine problems. You may think it was the same day or a week later, but no, it was a month later. You may think it was a $25,000 vehicle; no, it was a $2,500 vehicle. In this case the purchasing dealer tried to arbitrate the vehicle a month after the purchase and claimed the selling dealer stated the vehicle had a new engine. In fact, the vehicle had a replacement or rebuilt engine. The auction sided with the selling dealer and stated any claims made on the sale were subject to day of sale only. The purchasing dealer had made a claim to his retail customer that the vehicle had a new engine. After the vehicle experienced engine trouble, the vehicle was found to have a rebuilt or used engine, not a new one. Thus, the retailing dealer arbitrated the vehicle and was denied the claim. You would think that’s the end of the story. The purchasing dealer sued the selling dealer in small claims court and won! It was appealed to superior court and the selling dealer lost again and was ordered to repurchase the vehicle for the entire purchase price.
You would think this statement would relive a dealer’s liability from a lawsuit from a sale at an auction. It states, “all parties agree and consent,” but the auction’s response was anybody could sue anybody for anything. And, apparently, that is the case. You would assume when you sign up to auction services you would agree to binding arbitration, but I have found that not to be the case. When making a statement on a vehicle, whether it is to another dealer or retail customer aren’t we supposed to be reasonable and state something to the best of our knowledge? In this case, the selling dealer was told the vehicle had a new engine. Most of us assume new means new to the vehicle, not new from the manufacture. This play on semantics ended up costing one dealer a lot of
money and two trips to court. Are we held to an auction ruling or should they be called into question? For most of us, we are in this business for the long haul. And although the auction system is not perfect, it is what we work in and we either abide by their rulings or don’t use them. In this case, the purchasing dealer was not reprimanded or penalized for stepping outside the auction arbitration to get his satisfaction. So it is not only buyer beware, but also seller beware. Is this an isolated incident or new way of negotiating? Check your local auction for details. BY TERRY D I GM ETI CH, IADAC PAST PRESI D ENT
For most of us, we are in this business for the long haul. And although the auction system is not perfect, it is what we work in and we either abide by their rulings or don’t use them. This raises some issues. What binding agreement do we have with arbitration at an auction when we purchase or sell a vehicle there? Apparently, it is neither binding nor final. We have all been told all arbitration is binding and final, but that is not the case. As stated in the auction’s policy, “The decision of the arbitration manager shall be final and all parties agree and consent to the auction’s right to interpret and modify these rules and policies without notice or limitation.”
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F&I Perspectives Since the credit crisis began a couple of years ago, it’s no secret used vehicle inventory has been tight. The Cash for Clunkers program only compounded the problem. Now, the tragic and devastating disaster in Japan has disrupted the automotive supply chain, causing a ripple effect not only from the suspension of new car production, but also from a lack of component output.
With further strain in the market, our industry has to rethink the new timeframe to reach equilibrium. This following indications of a peak in the index: wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) declined 1 percent in February after rising in each of the previous five months, according to the Manheim Used Vehicle Value Index. The trend has been prices at the auction have strengthened because of the decrease in new deliveries. Many franchise dealers have built up used inventories in anticipation of a new vehicle shortage that will trickle down to a used vehicle shortage. As a result of these factors, used prices are likely to remain high, making strategic inventory selection even more important for dealers. Given market factors, dealers are wise to deepen their understanding of lender programs to help determine the right inventory to have on the lot. Here are suggestions for navigating challenges and keeping deals profitable. Relationship, relationship, relationship The dealer-lender relationship cannot be undervalued, especially when the market is tight. If you haven’t already developed a strong relationship with your lenders, now is the time. View it as a partnership. Build an honest and professional relationship with underwriting. Talk to your credit analyst. Leverage the knowledge of your account manager or sales rep to gain more insight into the program. Ask for training when needed, so staff can be well educated on making the process as smooth as possible. A good
dialogue with your lenders goes a long way to avoiding funding problems that can cost time and money, leaving you with unsold units. Start at the source Dealers going to the auction to source inventory will face higher prices, but can prepare by carefully reviewing available lending programs prior to making purchases. A strong understanding of program guidelines is critical to avoiding the costly mistake of buying the wrong inventory. Some examples of this preparation include: Know which pricing guides are used. NADA, Kelley Blue Book or Black Book? Pay attention to trends in value, too. For example, NADA recently announced its used auto values for April would reflect large increases in most vehicle segments compared to March, based on the impact of the crisis in Japan. At the time of the announcement, auction prices for two-to-five-year-old compact cars in March had increased by about 11 percent compared to February. There is little question price increases are to be expected in the short-term.
Don’t shy away from asking for what you need to understand and master the program. Strengthening your lender relationships may even help you stay on profit targets and solve some of the main challenges you face in today’s market. Understand the guidelines used to structure deals. Which adds are allowed and which are not? Some lenders will allow leather, sunroof or wheels. Others will not. Knowing which adds are permitted can mean
BY U RI SZAPI RO
the difference between making $1,000 or $2,000 on a deal. Don’t lose out on value. The last thing dealers want in a strained market is a short deal. Auction receipts. Lenders may be more open to a slightly bigger advance or other adjustments when you have proof of higher auction prices. Ask if an original auction receipt could be worth a few hundred dollars more in advance. Mileage and term flexibility. Some lenders may be more flexible or generous with mile allowances and/or terms due to the tightness of the market. The assumption is vehicles are on the road longer now because of reduced inventory. However, these adjustments may not be advertised or published with the program guidelines. Here is where that strong working relationship comes into play. Ask about such adjustments. For example, whereas before the lender wanted a limit of 60,000 miles for a 60-month loan, now 65,000 might be acceptable. Or lenders might be willing to add six months to the term on premium imports as a way of helping the dealer. Staying in touch with your lender can give you the confidence of knowing you have some leeway going to auction. Having a close relationship with lenders is strategic advantage, especially during a tough period in the market. Dealers are wise to communicate with lenders more often, be receptive and pay attention to the program details and guidelines. Don’t shy away from asking for what you need to understand and master the program. Strengthening your lender relationships may even help you stay on profit targets and solve some of the main challenges you face in today’s market. What’s more, the effort you put in now will pay off beyond the bump in the road today, and into the future. BY URI SZAPIRO Uri Szapiro is vice president of originations at AFS Acceptance, LLC, an established, full-service auto finance company serving franchise and independent car dealers’ subprime financing needs since 1996. For more information, visit www.afsacceptance.com or call 877-223-3254.
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