IA 0217 by NIADA

STREET SMART

MAGAZINE

O F F I C I A L P U B L I C AT I O N O F I I A D A F E B R U A R Y / M A R C H 2 0 17

R E G U L AT O RY

N E W S

FTC MAKES FINAL CHANGES TO THE USED CAR RULE Changes to the Buyers Guide

DALLAS, TEXAS Permit No. 2079

PAID

PRSRT Standard U.S. Postage

W W W.IO WA I A DA .C O M

P A G E 14

S TAT E A F F I L I AT E

INSIDE

05............................................. When Good Recon Goes Bad 06............................................................Creditor Notification 09............................................................................CarLawyer 10..............................................................Building Your Bench 12................................................................. President’s Letter 14.....................................Final Changes to the Used Car Rule

WHAT’S NEW

CMD Dates Announced

Class dates for NIADA’s industry leading Certified Master Dealer program have been announced for the upcoming year! Look for a class coming to your area! Dates include Feb. 9-11 in Portland, Ore.; May 15-17 in Atlanta; Sept. 12-14 in Dallas; and Dec. 11-13 in Tampa, Fla. Visit www. niada.com or contact Diann Flanders at 888-906-8283 or diann@niada.com for more information.

ADVERTISER’S INDEX

AutoZone .............................................................................8 Black Book........................................................................... 3 BMW Group Direct.............................................................. 7 CarMax Auctions................................................................. 5 Manheim ............................................................................11 Manheim Pennsylvania......................................................13 NextGear Capital ............................................................ IBC ProSource Financial ..........................................................IFC Spireon .................................................................................9 vAuto .................................................................. Back Cover

OFFICE

For information on how to become a member please contact Judy Wilson. iiada@netins.net • 641-755-4177

NIADA HEADQUARTERS

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 Street Smart is published bimonthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of Street Smart or NIADA. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright© 2017 by NIADA Services, Inc.

RETAIL INSTALLMENT CONTRACTS

IIADA has two distributors who will provide the Wolters Kluwer Financial Services retail installment contracts for Iowa dealers. These retail installment contracts have a compliance warranty. In some cases, you will need to have your software provider reprogram for you. You may order by phone or online and these will be shipped directly to the dealership. Thank you for working with these distributors. PLEASE CONTACT: WILSON DISTRIBUTOR SERVICE • 1-800-634-0974 • www.wds-usa.com or Erikson Solutions Services, llc • 402-639-0664

KNOW WHERE TO LOOK FOR RECALL INFORMATION ON VEHICLES

Vehicle dealers needing information on factory recalls can visit www.recalls.gov or find manufacturer toll-free numbers by going to www.autopedia.com/html/HotLinks.html and making contact with the respective automaker. Know what recalls are pending on vehicles before you purchase them and give your customers peace of mind by checking out possible recalls before you retail the vehicle. For further info please visit www.safercar.gov or www.safercar.gov/vinlookup FIND ADDITIONAL RECALL INFORMATION AT THE FOLLOWING WEBSITES: www.recalls.gov and www.autosafety.org

INVESTIGATIONS INFORMATION LINE

NEW NUMBER! 515-237-3050

The hours of operation are Monday through Friday, 8:30 A.M. TO 3:30 P.M. This phone line receives numerous calls so the IDOT encourages the use of our email (invbureau@iowadot.us) if the phone line is busy. The bureau investigations information line provides a way for the public to request information, ask questions or file a complaint related to investigative duties and responsibilities. This line is the primary point of contact to reach an investigator who is responsible for investigations in a specific area of the state of Iowa. To ensure accurate information is provided, the bureau investigations information line is answered by a bureau of investigation and identity protection investigator.

BOARD MEMBERS

STATE MAGAZINE MGR./SALES

PRESIDENT

EDITORS

Pocahontas Sales & Service PO Box 66 Pocahontas, Ia 50574 712-335-4470

Troy Graff • troy@niada.com

Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT

Christy Haynes • christy@niada.com PRINTING

Nieman Printing

Jeff Schneider

CHAIRMAN OF THE BOARD

Douglas Livy, Jr.

Quality Motors of Ames PO Box 7 Ames, Ia 50010 515-290-2673

VICE PRESIDENT

Clay Winterboer

Carroll Car Credit Co. 409 E. 6th St., Box 805 Carroll, Ia 51401 712-792-0140

TREASURER

Judy Wilson, IIADA

409 E. Market Street P.O. Box 337 Panora, Ia 50216 641-755-4177

STREET SMART / February/March 2017

REGIONAL REPRESENTATIVES

Roger Poulsen

The Car Guys 1301 S.W. 7th Street Atlantic, Ia 50022 712-243-6915

Tab Miller

Preowned Solutions 11010 Douglas Ave. Urbandale, Ia 50322 515-528-8180

Kim Nelson

Nelson Automotive, LLC 300 Sandpiper Court P.O. Box 466 Polk City, Ia 50226 515-984-9600

Craig Dam

Dam Auto Sales, Inc. 1021 Lewis Blvd. Sioux City, Ia 51105 712-522-2831

Rick Theilen

Marcus Hebert

Jay Muller

Merrill Hitchcock

Theilen Auto Sales 10536 265th Street Clear Lake, Ia 50428 641-424-3352 Best Auto, Inc. 900 S. Grand Avenue Spencer, Ia 51301 712-262-4581

David A. Farmer

David A. Farmer, Inc. 1613 Franklin Center Point, Ia 52213 319-849-2432

Doug Wilson

Lake Country Auto 409 East Market St. P.O. Box 341 Panora, Ia 50216 641-755-3048

CarsNow, LLC 2124 W. Broadway Council Bluffs, Ia 51501 712-256-6757 Merrill’s Motors 317 N. 8th Street Winterset, Iowa 50273 515-462-1683

ADMINISTRATIVE OFFICES

409 East Market Street P.O. Box 337 Panora, Ia 50216 Ph: 641-755-4177 Fax: 641-755-3247 Email: iiada@netins.net Toll Free: 866-962-9202

Diane Conroy

Jeb’s Affordable Trans. 1501 N. Elm Jefferson, Ia 50129 515-386-4731

www.iowaiada.com

ACCELERATE

BY GWC WARRANTY

WHEN GOOD RECON GOES BAD Solve Your Recon Woes

Few things can be more of a headache for used car dealers than the reconditioning process. Far too often, it can lead to delays, forfeited front-end gross, poor relationships within your dealership and other consequences that ultimately hurt the overall bottom line. It sounds simple enough: Acquire vehicle. Prepare vehicle. Sell vehicle. So how can something so simple cause so many problems? It’s when good recon goes bad. You can solve your recon woes, however, by making small tweaks to your dealership that will have a tangible payout at the end. It’s all about culture. Too many times you hear stories of the back and forth between those acquiring the inventory and those getting it ready to go on the lot. Good recon starts when everyone stops pointing fingers. Cultivate a culture of collaboration. If you’re acquiring inventory, ask your service team what you should look for in a vehicle at

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auction. If you’re getting a vehicle frontline ready, ask about deadlines and find out why a specific turn time is so important. Don’t get overconfident. If you’re estimating how long it will take to recondition a vehicle, be honest with yourself. Time is money, and you can’t accurately appraise and price your vehicle if you’re building in five days of holding costs when it will really take 10. Having a trusting and cooperative culture will help everyone feel comfortable enough to be transparent with these types of details. Know the dollars and cents. It’s estimated that holding costs can range from $30 to $50 dollars per day. Take the average figure from that range ($40 per day) and do the math for what you spend regularly on reconditioning costs. At an average of six recon days for 40 vehicles a month, you’re looking at $9,600 per month in holding costs alone. At that rate, that’s over $115,000 per year. You can even think of this on a per vehicle basis. At that same holding cost, a vehicle that takes five extra days to recondition cuts a $3,000 gross profit into a $2,800 gross profit – all this without even factoring in the actual parts and labor costs of the reconditioning itself. Knowing these numbers will help everyone in the dealership be accountable for their role in reconditioning.

Communicate. It sounds simple, but so many reconditioning processes go bad when management, sales and service simply aren’t on the same page. Things like repair approval delays and misplaced vehicles can add days to the reconditioning process (see above for how much that costs you). Getting all your departments on the same page can help in this process. It can be as simple as creating a spreadsheet that tracks each vehicle’s progress. This way, you’ll be able to see where delays happen and quickly get your reconditioning back on the rails.

February/March 2017 / STREET SMART

REGULATORY NEWS

CREDITOR/ ASSIGNEE NOTIFICATION AND DEBT COLLECTOR NOTIFICATION From the Office of the Attorney General of Iowa

Creditor/Assignee Notification – Creditor/Assignee Overview All creditors who engage in consumer credit transactions are subject to the Iowa Consumer Credit Code, and all assignees who purchase those transactions must file notification with the ICCC administrator and pay all required fees. The attorney general serves as the ICCC administrator. The ICCC requires all creditors and assignees to pay an annual notification fee. Creditors/assignees who own the paper for consumer credit transactions must also pay a volume fee based on the average unpaid balance of all consumer credit transactions. The purpose of assessing these fees is to ensure all creditors and assignees contribute to the cost of enforcing the ICCC, and the law stipulates all fee money collected be put to that use. Creditors and assignees who fail to file notification with the attorney general and pay the appropriate fees may be subject to late fees of $25, as well as a possible civil action in which the administrator may sue to recover interest on the unpaid fees, the costs of the action and a penalty as high as $1,000 or three times the fees owed, whichever is greater. How to File Creditors and assignees required to file notification with the Iowa attorney general must do so within 30 days of commencing collection activities in Iowa, and then by January 31 of every subsequent year. Online: You can file online and pay the $10 annual registration fee and any applicable volume fees through the attorney general’s website. Note: This system does not allow payment via credit card. The online payment option requires filers to enter bank account information to establish an automatic debit. Filers paying by auto-debit will be charged a $1 convenience fee. By mail: If you prefer, you can fill out the printable form along with a check. Checks should be made payable to Iowa Consumer Credit Administration Fund and sent, along with the completed Creditor/Assignee Notification printable form to: Office of the Attorney General of Iowa Consumer Protection Division Attn: Notification & Fees Administrator 1305 E. Walnut Street

STREET SMART / February/March 2017

TABLE 1: Examples of Volume Fee Rates AVERAGE MONTHLY UNPAID BALANCE $1 - $109,999 $110,000 - $209,999 $210,000 - $309,999 $310,000 - $409,999 $410,000+ Des Moines, Iowa 50319-1016 Email: registration@iowa.gov To review the forms talked about in this article go to www.iowaattorneygeneral.gov and look under the “For Businesses” tab. Who Needs to File? The ICCC’s notification and fee requirements apply to all consumer credit transactions with Iowa residents. 1. Companies that enter into consumer credit transactions, including: consumer loans, retail installment sales contracts, leases, and rent-to-own. Other credit programs with Iowa consumers are subject to these requirements, as are retail stores that run their own credit card programs (i.e., offer a credit card in the store’s name). Layaway plans are generally not considered consumer credit transactions and are not subject to the notification and fees requirements. 2. Assignees that purchase/take assignment of the following: consumer loans, consumer credit sales contracts and consumer leases. If an assignee does not pay its portion of the fees, the original creditors remain responsible for them. 3. New and used car dealerships engaged in consumer credit sales. New and used car dealers must file notification and pay the annual notification fee even if they assign all of their retail installment contracts. Dealers who keep any consumer credit sales on their books must also pay a volume fee. Dealers who offer Buy Here-Pay Here must pay the volume fee in addition to filing notification and paying the annual fee. Who Is Exempt? Iowa code exempts banks, savings and loan associations, credit unions and regulated loan companies (finance companies) from these requirements. These entities are exempt because they already contribute to enforcing the ICCC by paying examination fees to the Iowa Department of Commerce. Creditors are encouraged to consult with private counsel as necessary to determine their obligations under these laws. Calculating Fees All creditors and assignees required to file notification with the Office of the Attorney General must pay an annual fee of $10. Creditors/assignees who own the paper for consumer credit transactions also must pay a volume fee based on the average unpaid balance of all consumer credit transactions. To determine the fee owed, a creditor should first calculate the average unpaid balance arising from all consumer credit

VOLUME FEE OWED $ $ $ $ $

10 20 30 40 10 Per $100,000 Owed

transactions held on the last day of each calendar month over the preceding calendar year. The rate of the volume fee is $10 for each $100,000 of the average monthly amount, and $10 for every additional portion of the average monthly amount that is greater than $10,000 but less than $100,000. For example, a creditor whose average monthly unpaid balance over the preceding year was $105,000 would owe a volume fee of $10 while a creditor whose average monthly unpaid balance was $130,000 would owe $20. The administrative rule provides additional information on how to calculate these fees. After You File Creditor/assignees who have filed notification with the Iowa Attorney General will not receive a confirmation notice or hard copy license. Filers with rejected notifications will be notified by the AG’s staff. Approved notifications will be processed and can be viewed online by going to www.iowaattorneygeneral. gov. Look under “For Businesses,” click on ICCC Registered Debt Collectors and Creditors/Assignees approximately 20 business days after their receipt. (Note: Some users may need to refresh their browser for the most updated version of the document.) It is important the creditors/assignees notify the attorney general in writing of any changes in their company’s contact information to ensure all communications from the attorney general, including notification filing reminders, are received in a timely manner. Changes should be submitted in writing and include the name of the company, the previous, incorrect information and the updated, current information. Reminders will be sent in December. Failure to receive reminders will not exempt a late filing from the $25 late fee. Debt Collector Notification Iowa does not license debt collectors. However, debt collectors who collect over $25,000 a year (all accounts, not just Iowa accounts) are required to file notification with the attorney general of Iowa and pay a $10 annual fee. The attorney general’s office vigorously enforces the Iowa Debt Collection Practices Act. They strongly urge all debt collectors to become familiar with the law and to consult with private legal counsel, as necessary, before beginning collection activities in Iowa. CONTINUED ON PAGE 8 www.iowaiada.com

CREDITOR/ASSIGNEE NOTIFICATION CONTINUED FROM PAGE 6

Who is a Debt Collector?

• C reditors collecting their own debts: while

most creditors collecting their own debts are not required to file notification as a debt collector, they must comply with the substantive requirements of the Iowa Debt Collection Practices Act. • A ttorneys who act as debt collectors: Law firms whose attorneys act as debt collectors and collect over $25,000 a year must file notification with the Office of Attorney General. Companies that solely collect commercial debt are exempt from filing notification with the office of the attorney general. The definition of consumer debt under Iowa law is quite broad and includes a variety of debts other than consumer credit transactions. Debts that often fall under this definition include, but are not limited to: • Dishonored checks. • Medical bills. • Accounts based on “90 days same as cash” typical accounts receivable billings (for consumer purposes). • Debts incurred for personal, family or household purposes, where credit was extended, that did not exceed $25,000 and where the debtor was an individual, would be considered a consumer loan and is covered under Iowa law. This information has been taken from the AG’s website. Additional information may be obtained on the attorney general’s website.

STREET SMART / February/March 2017

ASSOCIATION NEWS

TIDBITS FROM IIADA Industry News Briefs

Iowa Legislature Underway On January 9, the Iowa legislature commenced its legislative session for 2017-2018. Many new legislators are involved and will be working on various issues throughout the first session. There is sure to be legislation on banning traffic cameras and cell phone usage while driving. Information on proposed legislation may be found at www. legis.iowa.gov. Federal Trade Commission – Vehicle Inspections The FTC advises consumers doing business with car dealers that advertise 100-plus point inspections for their used cars to make sure they check up on recalls. Used car dealers aren’t required to – and sometimes can’t or don’t – fix manufacturer recalls on the cars they sell. However, the FTC said if dealers make claims touting their inspections, they need to clearly let buyers know about the possibility of recalls. The FTC filed complaints against several dealers in December requiring the dealers to stop making misleading claims about their recall-repair practices and to notify recent customers who may have purchased a used car subject to a recall. Bonded Titles If you have a vehicle that cannot be titled or registered by your county treasurer because you do not have the proper title documents, you may be able to file a bond as a condition of obtaining a title and registration plates. A vehicle issued a junking certificate cannot be reinstated through the bonding procedure unless the vehicle is 25 years or older. Go to http://www.iowadot.gov/mvd/vehicleregistration/bonded.htm for other information provided by the Iowa DOT in determining how to proceed with obtaining a bonded title. National Motor Vehicle Title Information System Persons having a recycler’s license currently or who apply for a recycler’s license through the Iowa DOT must now obtain an NMVTIS reporting number. The easiest way to obtain an NMVTIS number is to go to https://www.vehiclehistory.gov. You can also call Auto Data Direct at 1-866-923-3123 or review their website: www.add123.com.

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LEGAL UPDATE

THE CARLAWYER Keeping You Informed with the Latest Governmental Issues and Activity in the Used Car Industry

We hope you and your families had a very happy holiday and New Year. Here’s our latest report of legal developments in the auto sales, finance and lease world. This month, we feature developments from the Consumer Financial Protection Bureau and the Federal Trade Commission, as well as our case of the month. Remember – we aren’t reporting every recent legal development, only those we think might be particularly important or interesting. Why do we include items from other states? We want to show you new legal developments and trends. Also, another state’s laws might be a lot like your state’s laws. If attorneys general or plaintiffs’ lawyers are pursuing particular types of claims in other states, those claims might soon appear in your state. Note that this column does not offer legal advice. Always check with your own lawyer to learn how what we report might apply to you, or if you have questions. THIS MONTH’S CARLAWYER© COMPLIANCE TIP We saw yet another case this month involving a dealership whose computers were misaligned, causing the disclosures required by the Truth in Lending Act to appear where

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they didn’t belong. If you are having these alignment problems, it would be a lot less expensive to have some reprograming done than to fight off a consumer’s complaint that your disclosures were faulty. FEDERAL DEVELOPMENTS FTC finally issues final Used Car Rule: On November 10, the FTC announced final amendments to its Used Car Rule. The FTC is revising the Buyers Guide by: •C hanging the description of an “as is” sale. •P lacing boxes in the Buyers Guide that dealers can check to show whether a vehicle is covered by a third-party warranty and whether a service contract may be available. •P roviding a box dealers can check to show that an unexpired manufacturer’s warranty applies. •A dding air bags and catalytic converters to the Buyers Guide’s list of major defects. •A dding statements that direct consumers to obtain a vehicle history report, check for open recalls, visit ftc.gov/usedcars for information on how to obtain a vehicle history report, and visit safercar.gov to check for open safety recalls. •A dding a statement in Spanish to the English-language Buyers Guide advising Spanish-speaking consumers to ask for the Buyers Guide in Spanish if the dealer

conducts the sale in Spanish.

•P roviding a Spanish translation of

the statement that dealers may use to obtain a consumer’s acknowledgement of receipt of the Buyers Guide. The amended rule permits dealers to use their remaining stock of Buyers Guides until January 27, 2018, a year after the effective date of the amended rule. Time to amend your pay plan? On November 28, the CFPB issued Compliance Bulletin 2016-03 warning supervised financial companies that sales and production incentive programs for employees and service providers may pose risks to consumers and lead to violations of federal consumer financial laws when such programs are not properly implemented and monitored. The bulletin outlines existing CFPB guidance given in other contexts and highlights examples from the CFPB’s supervisory and enforcement experience in which incentives contributed to substantial consumer harm. The bulletin also describes compliance management steps supervised entities should take to mitigate risks posed by incentive programs. Where is the CFPB going next? On November 28, the CFPB announced its fall 2016 statement of regulatory priorities.

CONTINUED ON PAGE 10

February/March 2017 / STREET SMART

CONTINUED FROM PAGE 9 Short-term priorities of particular interest to those in the auto sales and financing area: •T he CFPB is considering a final arbitration rule for spring 2017. •T here is no timetable for the small-dollar rule or the larger participant rule for installment lenders, both of which might have some unintended spill-over effects on auto finance. •T he CFPB expects to convene a Small Business Regulatory Enforcement Fairness Act proceeding focusing on companies that collect their own debts. •T he CFPB is analyzing the results of a survey of consumer experiences with debt collection and testing to determine what information would be useful for consumers to have about debt collection and their debts and how that information should be given to them. •T he CFPB continues its research on section 1071, which requires financial institutions to report information about credit applications by women-owned, minority-owned, and small businesses (the CFPB states that it is in its early stages of implementing section 1071 and is currently focused on outreach and research to develop its understanding of the players, products, and practices in the business lending markets and of the potential ways to implement section 1071). •L ong-term, the CFPB is looking at possible rulemaking for credit reporting and student loans. Of course, with the new administration, these priorities could change. Which credit and lease transactions are

covered? On November 28, the CFPB and the FRB issued final rules on adjusting the thresholds for exempting certain consumer credit and lease transactions from the Truth in Lending Act and Consumer Leasing Act. The Dodd-Frank Act provides that the TILA and CLA dollar amount thresholds must be adjusted annually by any annual percentage increase in the consumer price index. The final rules say that if there is no annual percentage increase in the CPI, the CFPB and Board will not adjust the prior year’s thresholds. The final rules also provide the agencies’ calculation method for adjustment in years after a year in which there is no annual percentage increase in the CPI. Based on the CPI as of June 1, 2016, the exemption threshold remains at $54,600 through 2017. Therefore, TILA and the CLA generally will apply to consumer credit transactions and consumer leases of $54,600 or less in 2017 - the same as the 2016 thresholds. CASE OF THE MONTH Buyer stated TILA claim against dealership and finance company for failing to disclose additional finance charges included in inflated sales price: An individual went to a dealership and for $14,995 bought a used car with 103,724 miles on it and a history of frontend damage. The vehicle’s MSRP when it was new in 2007 was $14,295, and the NADA and Kelley Blue Book retail prices for the vehicle ranged from $5,000 to $6,000. The buyer agreed to an interest rate of approximately 24 percent in the retail installment sale contract. After the buyer experienced problems with the car that the

dealership was unable to fix, she sued the dealership and the finance company to which her finance contract was assigned for violating the Truth in Lending Act, among other laws, by failing to disclose all financing charges. Specifically, she alleged the sales price of the car was inflated to hide additional financing fees within the sales price. The defendants moved to dismiss. The Virginia federal trial court concluded the buyer adequately alleged a claim that the defendants inflated the sales price of the car because it was financed, not purchased with cash. The court noted the “excessive sales price in relation to the NADA and Kelley Blue Book value creates an inference that the dealership would not truly charge the same price to a cash customer, and thus failed to disclose the true extent of the financing charges.” Therefore, the court refused to dismiss the TILA claim against both defendants. See Harold v. TMC Enterprises, LLC, 2016 U.S. Dist. LEXIS 142928 (W.D. Va. October 17, 2016). So there’s this month’s roundup! Stay legal, and we’ll see you next month. Tom (thudson@hudco.com) and Nikki (nmunro@hudco. com) are partners in the law firm of Hudson Cook, LLP. Tom has written several books and is the publisher of Spot Delivery, a monthly legal newsletter for auto dealers. He is editor in chief of CARLAW, a monthly report of legal developments for the auto finance and leasing industry. Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. For information, visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2016, all rights reserved. Single publication rights only, to the Association. (12/16). HC# 4811-0676-9469 v.1.

MANAGEMENT MATTERS BY CHRIS KAHRS

BUILDING YOUR BENCH STRENGTH Create Future Leaders Ready to Step In

Addressing personnel changes and challenges can occasion lengthy conversations. I’d say that the most often asked question is, “Where do I find my next manager?” As dealerships continue to experience rapid turnover and acquisitions – and promote good employees into management – many organizations struggle to find replacements for vacancies. Prepare for the unavoidable. It’s generally when they’ve lost an employee that dealers realize they have no one in their organization to assume that particular role. Dealers are forced to search outside their organizations for a candidate who shares their business’ values, culture, work ethic and vision.

STREET SMART / February/March 2017

This hunt can be exhaustive, and the process is disruptive to the daily operations of the organization. Why your team is critical. To use a sports analogy, each team has its starters suited up and ready to go for each game. When one of those starters gets hurt, a “bench player” is the next man up to assume that role. That bench player has been preparing for a scenario like this and is ready to perform. Yet in a lot of automotive organizations, there isn’t a bench player who has been coached to assume the role of the starter should there be the need. How to create a strong bench. Weak bench strength is a problem for a number of reasons. First, it means you must spend time and money to find an outside replacement. And, more important, that unnoticed bench player is likely to leave. I honestly believe one the greatest threats to your dealership is for an overlooked bench player – one who is not being groomed for advancement – to leave. And they will. Sensing the lack of opportunity, individuals like this will typically depart for greener pastures should they have the opportunity,

thus leaving your organization searching for yet another replacement. Here are my suggestions to improve your bench strength: • Train and educate from the top down to develop future organizational leaders. • Cross train for diversity. • Create peer-leader relationships. • Create a career path with clear and defined advancement opportunities. • Train, coach, motivate and encourage personal development. Filing managerial vacancies can be challenging for many organizations. However, you may already have an individual eager and ready to perform if given the opportunity. By building your bench, you can create future leaders from within your organization. Work on developing one to strengthen your overall talent pool. Chris Kahrs brings more than 17 years of experience to NCM, with extensive expertise in multi-facility management and dealer operations. This article originally appeared on NCM’s Up to Speed blog (blog.ncminstitute.com) and is reprinted with permission.

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ASSOCIATION NEWS

PRESIDENT’S LETTER It Starts with a Dream

CHART

YOUR COURSE

STREET SMART / February/March 2017

Fellow car warriors, My favorite movie of all time is Braveheart. I remember the first time I watched it. My wife rented it from Blockbuster and it was on two VHS tapes. The movie is three hours and two minutes long. Back then, they had penalties for late returns but I told my wife to keep the tapes and just go pay them for the movie. In a nutshell, the story is of a man who came home from his studies abroad to settle down, get married, raise a family and run a farm. His plan was to become a quiet part of society, and slowly and comfortably fade away without anyone remembering his name. But then something outside of his control changed his plans and he had a dream. His life took on a whole new meaning. He believed he was on this earth for one purpose. All his friends saw the passion and determination in his actions and took up the same cause and that is how history was made. I’m not going to spoil it for those who haven’t seen the movie, but if we look at some of the greatest success stories, they all have the same recipe. They all started with a dream. A tiny spark deep inside that just needed a little fuel to turn into an inferno. Everyone’s dream is different. People dream of helping others or having a comfortable lifestyle or creating financial security for their grandkids. The second part of the recipe is the struggle. Those who overcome the most have the most to overcome. Nothing worthwhile ever comes easy. Without the struggle, there can be no victory. This leads us to the third ingredient – victory. The victory is what we strive for. This is the result of relentless pursuit of the dream. But everything starts with a dream. So now you should ask yourself, “What is my dream?” What is the one thing that gets you out of bed in the morning ready to take on everything that comes at you? Why do we do what we do?

What is your why? I believe most people have been beaten down so many times they are afraid to have a dream. Most will not dream because of the fear of disappointment. That leaves the few dreamers who will take chances and believe in themselves and strive to accomplish more than others think is possible. Another great example is the movie Rudy. This too is based on a true story and is one of my top five favorite movies. So now I’m going to challenge everyone that hung in here through the boring stuff. I challenge each one of you to sit down and write out 10 things that would be difficult but not impossible to achieve. Don’t worry about which order they are in, just 10 things that drive you. Then I want you to put that list on your bathroom mirror where you are forced to look at it every day. Experts tell us that we naturally gravitate toward what we think about most, so if you see it every day, you will naturally gravitate toward your dreams. Wow, now I want to go home and watch both of those movies! Well, I better write something funny before I lose all of you. A couple was going on vacation. The wife was finishing up a business trip so the husband arrived first and his wife would meet him there the next day. When he reached his hotel, he decided to send his wife a quick email. Unfortunately, when typing her address he mistyped a letter and his note was directed instead to an elderly preacher’s wife whose husband had passed away only the day before. When the grieving widow checked her email, she took one look at the monitor, let out a piercing scream, and fell to the floor in a dead faint. At the sound, her family rushed into the room and saw this note on the screen: “Dearest wife, I just got checked in. Everything prepared for your arrival tomorrow. P.S. Sure is hot down here.” Well that’s it for now. I hope everybody has a great 2017. Thank you and best regards, Jeff Schneider, President of IIADA

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REGULATORY NEWS

FTC MAKES FINAL CHANGES TO THE

USED CAR RULE Changes to the Buyers Guide

BUYERS GUIDE IMPORTANT: Spoken promises are difﬁcult to enforce. Ask the dealer to put all promises in writing. Keep this form.

VEHICLE MAKE

MODEL

YEAR

VEHICLE IDENTIFICATION NUMBER (VIN)

WARRANTIES FOR THIS VEHICLE:

AS IS - NO DEALER WARRANTY THE DEALER DOES NOT PROVIDE A WARRANTY FOR ANY REPAIRS AFTER SALE.

DEALER WARRANTY FULL WARRANTY. LIMITED WARRANTY. The dealer will pay ____% of the labor and ____% of the parts for the covered systems that fail during the warranty period. Ask the dealer for a copy of the warranty, and for any documents that explain warranty coverage, exclusions, and the dealer’s repair obligations. Implied warranties under your state’s laws may give you additional rights.

SYSTEMS COVERED:

DURATION:

NON-DEALER WARRANTIES FOR THIS VEHICLE: MANUFACTURER’S WARRANTY STILL APPLIES. The manufacturer’s original warranty has not expired on some components of the vehicle. MANUFACTURER’S USED VEHICLE WARRANTY APPLIES. OTHER USED VEHICLE WARRANTY APPLIES. Ask the dealer for a copy of the warranty document and an explanation of warranty coverage, exclusions, and repair obligations. SERVICE CONTRACT. A service contract on this vehicle is available for an extra charge. Ask for details about coverage, deductible, price, and exclusions. If you buy a service contract within 90 days of your purchase of this vehicle, implied warranties under your state’s laws may give you additional rights.

ASK THE DEALER IF YOUR MECHANIC CAN INSPECT THE VEHICLE ON OR OFF THE LOT. OBTAIN A VEHICLE HISTORY REPORT AND CHECK FOR OPEN SAFETY RECALLS. For information on how to obtain a vehicle history report, visit ftc.gov/usedcars. To check for open safety recalls, visit safercar.gov. You will need the vehicle identification number (VIN) shown above to make the best use of the resources on these sites. SEE OTHER SIDE for important additional information, including a list of major defects that may occur in used motor vehicles. Si el concesionario gestiona la venta en español, pídale una copia de la Guía del Comprador en español.

STREET SMART / February/March 2017

www.iowaiada.com

On November 10, 2016, the FTC announced final amendments to the Used Car Rule and the FTC has revised the Buyers Guide by: • Changing the description of an “as is” sale.

•A dding a statement , in Spanish, to the English-language buyers guide advising Spanish speaking consumers to ask for the buyers guide in Spanish if the dealer is conducting the sale in Spanish.

•P lacing boxes in the buyers guide that dealers can check to show whether a vehicle is covered by a third party warranty and whether a service contract may be available.

•P roviding a Spanish translation of the statement that dealers may use to obtain a consumer’s acknowledgement of receipt of the buyers guide.

•P roviding a box dealers can check to show whether an unexpired manufacturer’s warranty applies.

The amendments are effective January 27, 2017, but dealers are allowed one year to use up buyers guides they have in stock. The maximum penalty for violation of the used car rule will go from $16,000 to $40,000. Dealers may find fillable buyers guide forms on the FTC website – go to www.ftc.gov and search “buyer’s guide.”

•A dding air bags and catalytic converters to the buyers guide’s list of major defects. • Adding statements that direct consumers to http://ftc.gov/usedcars for information on how to obtain a vehicle history report and to visit www.Safercar.gov to check for open safety recalls.

Here is a list of some major defects that may occur in used vehicles. Frame & Body Frame-cracks, corrective welds, or rusted through Dog tracks—bent or twisted frame Engine Oil leakage, excluding normal seepage Cracked block or head Belts missing or inoperable Knocks or misses related to camshaft lifters and push rods Abnormal exhaust discharge Transmission & Drive Shaft Improper fluid level or leakage, excluding normal seepage Cracked or damaged case which is visible Abnormal noise or vibration caused by faulty transmission or drive shaft Improper shifting or functioning in any gear Manual clutch slips or chatters Differential Improper fluid level or leakeage, excluding normal seepage Cracked of damaged housing which is visible Abnormal noise or vibration caused by faulty differential

Cooling System Leakage including radiator Improperly functioning water pump Electrical System Battery leakage Improperly functioning alternator, generator, battery, or starter Fuel System Visible leakage Inoperable Accessories Gauges or warning devices Air conditioner Heater & Defroster Brake System Failure warning light broken Pedal not firm under pressure (DOT spec.) Not enough pedal reserve (DOT spec.) Does not stop vehicle in straight line (DOT spec.) Hoses damaged Drum or rotor too thin (Mfgr. Specs) Lining or pad thickness less than 1/32 inch Power unit not operating or leaking Structural or mechanical parts damaged Air Bags

Steering System Too much free play at steering wheel (DOT specs.) Free play in linkage more than 1/4 inch Steering gear binds or jams Front wheels aligned improperly (DOT specs.) Power unit belts cracked or slipping Power unit fluid level improper Suspension System Ball joint seals damaged Structural parts bent or damaged Stabilizer bar disconnected Spring broken Shock absorber mounting loose Rubber bushings damaged or missing Radius rod damaged or missing Shock absorber leaking or functioning improperly Tires Tread depth less than 2/32 inch Sizes mismatched Visible damage Wheels Visible cracks, damage or repairs Mounting bolts loose or missing Exhaust System Leakage Catalytic Converter

DEALER NAME ADDRESS TELEPHONE

FOR COMPLAINTS AFTER SALE, CONTACT:

IMPORTANT: The information on this form is part of any contract to buy this vehicle. Removing this label before consumer purchase (except for purpose of test-driving) violates federal law (16 C.F.R. 455).

www.iowaiada.com

February/March 2017 / STREET SMART

APPROVED MEMBER BENEFIT PROVIDERS ADVANCED BUSINESS PRODUCTS, INC.

Printing, Promotional Products, & Wearables Contact: Scott Jayne PO Box 71547 Des Moines, IA 50325 Phone: 515-225-6343 Toll Free: 888-464-2274 Fax: 515-225-6510 Toll Free Fax: 877-987-3514 Website: www.go4abpi.com

ALLY SMART AUCTION

4300 SW Cambridge Avenue Topeka, Kansas 66610 785-249-4166 Iowa Rep: Seth Fair seth.fair@ally.com 515-777-4592

ASSOCIATIONS MARKETING GROUP INC Health Insurance Jesse and Lee Patton 1112 Maple Street West Des Moines, Iowa 50265 Toll Free: 800-798-6772 Phone: 515-270-8178 Fax: 515-270-0398 E-mail: leepatton@amgi-dsm.com

AUTO OWNERS INSURANCE

DIAMOND OIL COMPANY

Lubricants, Diesel Fuel, Propane & DEF Contact: Jason Heiden 702 S.E. Raccoon Street Des Moines, Iowa 50309 Email: jheiden@diamondoilco.com www.diamondoilco.com

ERIKSON SOLUTIONS SERVICES, LLC

F & I Compliance & Sales Training Alpha Warranty Services Classic Essential GAP – Norman & Co. Frazer Computing Rep Motorsport Dealer Solutions www.motorsport-dealer-solutions.com Contact: Scott Erikson 15210 Castelar Circle Omaha, Nebraska 68144 P: 402-639-0664 F: 402-697-4937 eriksons@aol.com

FOLLOW-UP PLUS

“Customers for Life” Repeat Sales, Referrals & Customer Loyalty Contact: Terry & Sue Newell P.O. Box 294 Carthage IL 62321 Ph: 217-357-9032 Fax: 217-357-9076 E-mail: tlnewell@frontienet.net

10% DISCOUNT TO ALL IIADA MEMBERS Corcoran & Associates, Inc. Mick and Teresa Corcoran 2525 E. Euclid, Suite 102 Des Moines, Iowa 50317 Phone: 515-262-3141 Fax: 515-262-3086 Toll Free: 877-518-4051 E-mail: teresa@corcoranandassoc.com

FRAZER-DEALER MANAGEMENT SOFTWARE

AUTOJINI.COM

a tcf bank company Kim Freeborn 563-275-0057 387 Shuman Blvd., Suite 150E Naperville, Illinois 60593 www.gatewayonelending.com

Websites for Dealers Contact: Syed Azam 310 Main Street Ste 201 Ames, IA 50010 Phone: 515-232-2024 E-mail: syed@octadyne.com

CITIZENS COMMUNITY CREDIT UNION

2012-1ST AVENUE SOUTH FORT DODGE, IOWA 50501 Phone: 515-955-5524, Ext. 202 Fax: 515-955-8241

CORCORAN & ASSOCIATES INC.

Various Types of Insurance Contact: Teresa Corcoran 18-2nd St., N.E. Mason City, Iowa 50401 Phone: 877-518-4051 Phone: 515-262-3141 Fax: 515-262-3086 Email: teresa@corcoranandassoc.com

CU DIRECT (CUDL)

6196 US Highway 11, PO Box 569 Canton, NY 13617 Phone: 888-963-5369 Fax: 888-963-3366 Website: www.Frazer.com Email: info@Frazer.com

GATEWAY ONE LENDING & FINANCE

GLOBE ACCEPTANCE INC

Sub-prime Lender Contact: Beth Dieter P.O. Box 65400 West Des Moines, Iowa 50265 Phone: 515-225-9067 globeaccepts@globeacceptance.com Website: www.GlobeAcceptance.com

GREATER IOWA CREDIT UNION 1630 22nd Street West Des Moines, Iowa 50266-1407 Jason Kolar, Dealer Direct Manager Ph: 515-954-1666 F: 515-956-6966 jkolar@greateriowacu.org

INNOVATIVE DEALER SERVICES, INC.

Contact: Paul Bejarno, Area Account Representative Phone: 515-988-0521 Email: paul.bejarno@cudirect.com Website: www.cudirect.com 2855 E. Guasti Road, Suite 500 Ontario, CA 91761

Dealer Software Management Systems P.O. Box 23189 Shawnee, Kansas 66283 913-312-7344 – Ext. 11 Fax: 810-821-1718 Website: innovativedealer.com Terry Webb twebb@innovativedealer.com

CYCLONE AUTOMOTIVE TRAINING INC.

PEOPLES INSURANCE AGENCY

F&I Training, Sales Training, Service Contracts Rob Miller and Chris Hochstein 515 N Jefferson Way Ste H Indianola, IA 50125 Phone: 515-962-0099 or 515-962-0100 Fax: 515-961-8400 Rob: 515-205-5900 cell Chris: 515-205-5800 cell E-mail: cycloneautomotive@ cycloneautomotive.com

REYNOLDS & REYNOLDS INC.

Dealer Bonds Long Term Care Insurance Various types of insurance Contact: Dean M Clark 300 Walnut Street Ste 200 Des Moines IA 50309 Phone: 515-243-1724 Toll Free: 800-767-1724 Fax: 515-243-6664 E-mail: d.m.clark@reynolds-reynolds.com

S & C AUTOMOTIVE, INC.

NIADA CPO Program & Training, F&I Products, Reinsurance Formation, Appearance Protection, Spray-on Bedliners, Accessory Installation 3828 70th Street Urbandale, Iowa 50322 P -515-276-9622 Fax: 515-276-8472 Contact: Doug Eckhart doug.eckhart@scautomotive.net Website: www.scautoia.com

U DRIVE ACCEPTANCE CORPORATION

An Iowa Sub-Prime Finance Company P.O. BOX 3107 Sioux City, Iowa 51102 620 S. Lewis Blvd., Sioux City, Iowa 51106 Neil Evans, Director of Originations Office: 712-258-0269 Cell: 402-517-6076 Fax: 712-293-2141 Email: neil@udriveac.com Website: www.udriveac.com

UNIVERSITY OF IOWA COMMUNITY CREDIT UNION

Doug White, Indirect Lending Manager 319-248-5855 dwhite@uiccu.org P.O. Box 800 North Liberty, IA 52317

VERIDIAN CREDIT UNION 1827 Ansborough Avenue P.O. Box 6000 Waterloo, Iowa 50704-6000 800-235-3228 Kara Van Wert –Tony McKillip

WILSON DISTRIBUTOR SERVICE IIADA DEALER CAP FORMS Car Brite Products Forms, Detail Supplies, Equipment & More Jason & Lisa Goody 105 N McCoy Mt. Pleasant IA 52641 Phone: 800-634-0974 Fax: 319-385-2927 E-mail: jasonwds@lisco.com Website: www.wds-usa.com

ZURICH

Garage Keepers, Property, Garage Liability Dealer Bonds 7045 College Blvd. Overland Park, Kansas 66211 Scot Smith – Eastern Iowa Rep. scot.smith@zurichna.com Cell: 319-330-7159 Austin Beber, Western Iowa Rep Austin.beber@zuricchna.com Phone: 402-616-6995

Auto Dealer Insurance Programs 1700 8th St., SW, PO Box 119 Waverly, Iowa 50677 Website: www.peoples-insurance.com Contact: Jason Whitinger/Kathy Mitchell Email: Jason@peopes-insurance.com Kathy@peoples-insurance.com Phone: 319-352-6327, Ext. 137

PROSOURCE FINANCE

We Do F & I for You 2540 106TH Street, Suite 202 Urbandale, Iowa 50322 800-795-1765 jeff@prosourcefinance.com website: www.ProSourceFinance.net

STREET SMART / February/March 2017

www.iowaiada.com

February/March 2017 / STREET SMART

MIDWEST AUTO AUCTION DIRECTORY

135 AUTO AUCTION

4716 S. Santa Fe Street Wichita, Kansas 67216 316-351-5001 Dealer Consignment Sale Thursdays at 9:00 a.m. Free Breakfast, Free Car Wash

ADESA DES MOINES

1800 Gateway Drive Grimes, IA 50111 (515) 986-1200 Fax: (515) 986-1201 www.adesa.com General Manager: Jeff Lisle Fleet/Lease Manager: Lesa DeRoy Consignment Sale every Tuesday at 9:30 a.m. Fleet/Lease Sale Tuesday 10:30 a.m.

ADESA KANSAS CITY

15511 Adesa Drive Belton, Missouri 64012 (816) 525-1100 (800) 950-2350 Fax: (816) 525-4714 General Manager: Harold Chapman Tuesday 9:30 a.m.

ADESA MINNEAPOLIS 18270 Territorial Road Dayton, MN 55369 763-428-8777 763-428-8701 Sale: Tuesday, 10 a.m. www.adesa.com

ADESA SIOUX FALLS

46893 271st Street P.O. Box 218 Tea, SD 57064 (605) 368-5364 Fax: (605) 368-2808 General Manager: Bob Holm Wednesday Sale 10:00 a.m. IAAI SALVAGE SALE EVERY OTHER WEDNESDAY – 8:30 A.M.

ADESA ST. LOUIS

7858 Highway 61-67 Barnhart, Missouri 63012 636-475-9311

ADESA WISCONSIN

W 10415 State Road 33 Portage, WI 53901 608-742-8245 608-742-4415 (f) Tony Manwarren, general manager Sale: Thursday, 9:30 a.m. www.adesa.com

CARMAX AUCTION – DES MOINES

10315 Hickman Road Urbandale, Iowa To Register: 888-804-6604 In House Auction – Every other Monday 9:30 A.M.

DEALERS CHOICE AUTO AUCTION, INC.

503 South Wapello Road Mediapolis, Iowa 52637 319-394-3510 (888) 771-6810 319-394-3511 (fax) www.dcaa.com President: Monte Delzell Nationwide Transportation: EZ Auto Shippers Steve Miller: 866-310-5936 Sale Every Tuesday – 6:00 p.m.

DES MOINES AUTO AUCTION 1530 S.E. McKinley Road Des Moines, Iowa 50320 (515) 285-8911 Fax: (515)256-9161 FRIDAY AT 9:30 A.M. Todd Givant, General Manager

GREATER QUAD CITY AUTO AUCTION

4015 78th Avenue Milan, Il 61264 (309) 787-6300 Fax: (309) 787-4541 Tuesday 10 a.m. – Thursday – 6 p.m. General Manager: Larry Anderson

GREATER ROCKFORD AUTO AUCTION 5937 Sandy Hollow Road Rockford, Il 61109 (815) 874-7800 (800) 830-4722 Fax: (815) 874-1325 General Manager: Mark Capriola Wednesday 10 a.m.

KCI AUTO AUCTION

11101 N. Congress Kansas City, MO 816-502-3318 816-801-8565 (f) Doug Doll Consignment Sale: Thursday, 9:30 a.m. www.kciaa.com

LINCOLN AUTO AUCTION, LTD 11909 US HWY 6 Waverly, Nebraska 68462 402-475-5500 www.lincolnautoauction.com Ryan Durst, Vice President Weds. 10:00 a.m.

MANHEIM ARENA ILLINOIS

MANHEIM CHICAGO

20401 COX AVENUE MATTESON, ILLINOIS 60443 815-806-4222 Mike Cesta, General Manager

MANHEIM KANSAS CITY

3901 North Skiles Road Kansas City, MO 64161 (800) 247-7163 Fax: (816) 452-2393 General Manager: Peggy Sprenger Wednesday 9:30 a.m.

MANHEIM MILWAUKEE

561 South Highway 41 - 27th Street Caledonia, WI 53108 (262) 835-4436 (800) 662-2947 Fax: (262) 835-2684 General Manager: Dennis Worthy Dealer Sales Manager: Kimberly Schure Wednesay 9 a.m.

MANHEIM MINNEAPOLIS

8001 Jefferson Highway Maple Grove, MN 55369-4924 (763) 425-7653 (800) 622-7653 Fax: (763) 493-0310 www.manheim.com General Manager: Carter Theissen Assistant General Manager: Felix Hernandez Commercial Accounts Manager: Jennifer Etnier Open Sale Sale every Wednesday; 9am Ford Credit, 9:30 TD Auto Finance, Select Lane and Fleet/Lease/Rental Groups, 9:45am Dealer Consignment. Ford Factory Sale bi-weekly Wednesdays at 12 Noon; Fiat Chrysler Factory Sale bi-weekly Wednesdays at 12 Noon Total Resource Auction/Insurance Sale weekly, Tuesdays at 1:00pm.

MANHEIM NORTHSTAR MINNESOTA

4908 Valley Industrial Blvd. North Shakopee, MN 55379 (952) 445-5544 (888) 445-2277 Fax: (952) 445-6773 General Manager: Carter Theissen Assistant General Manager: Jon Eisenmann Commercial Accounts Manager: Rod Dubbe Open Sale Thursdays at 9am Total Resource Auction/Insurance Sale Thursdays at 1pm Specialty Sale (Heavy Truck/Equipment/ Powersports) every 2nd and 4th Thursday at 12:30pm $4k and Under Sale: Last Wednesday of the Month at 3pm

MANHEIM OMAHA

9201 S. 144th Street Exit 440 off of I-80 Omaha, NE 68138 (402) 896-8000 (800) 218-4192 Fax: (402) 896-6758 General Manager: Todd Pfeifer Assist. Gen Manager: Korey Grell Thursday 9:30am.

MANHEIM ST. LOUIS

13813 St Charles Rock Road Bridgeton, MO 63044 (314) 739-1300 (800) 533-5414 Fax: (314) 298-3347 General Manager: Victor Ferlaino

MID-STATE AUTO AUCTION 100 Bach Ave. New York Mills, MN 218-385-3777 218-385-3232 (f) Rob Thompson, president Sale: Friday, 10 a.m. www.msaanym.com

NEBRASKA AUTO AUCTION, INC. 7500 N. 56th Lincoln, Nebraska 68514 402-466-8477 Contact: Mark Cooley Tuesday at 10:00 a.m. www.nebraskaautoauction.com

PLAZA AUTO AUCTION, INC. 320 Highway 30 West P.O. Box 147 Mt. Vernon, IA 52314 (319) 895-6232 Fax: (319) 895-6727 www.plazaaa.com Owner: Mark Greb Office Manager: Debbie Welsh Sales Manager: Becky McGinty Consignment Sale every Wednesday at 6:30pm. Fleet/Lease/Repo Sale Wednesday at 7pm.

TRI-STATE AUTO AUCTION Jct. Highway 11 & 80 P.O. Box 735 Cuba City, WI 53807 (608) 744-2020 (608) 744-3418 (800) 356-0625 Fax: (608) 744-7425 Owners/Managers: Gerald and Helen Brogley Thursday 6:30 p.m.

200 West Old Chicago Drive Bolingbrook, Il 60440 (630) 759-3800 (630) 759-9668 General Manager: John Olejniczak Dealer Sales Manager: Louis Palermo Tuesday 9 a.m.

STREET SMART / February/March 2017

ASSOCIATION NEWS

DEALER EDUCATION CLASSESS Classes to Run Throughout 2017

During 2017 the 8-hour dealer pre-licensing education classes will be running monthly, as has been done for nearly 10 years. We will also be holding 5-hour continuing education classes once per month. All classes will be held at Des Moines Area Community College –Southridge, which is located at 1111 East Army Post Road in Des Moines. Schedules can be found on the IIADA website (www.iowaiada.com) and the DMACC website: www. dmacc.edu. If you need further information please contact IIADA at iiada@netins.net or 641-755-4177. 8 Hour Pre-licensing Classes: February 13, 2017 March 13, 2017 April 10, 2017 5 Hour Continuing Education Classes: February 16, 2017 March 16, 2017 April 20, 2017 All classes will be held at DMACC – Southridge.

SAFETY WATCH

NHTSA SPEEDS UP AIRBAG RECALLS New Requirements for Automakers

The National Highway Traffic Safety Administration issued an amended order to continue the acceleration of recall repairs for millions of U.S. vehicle owners affected by the Takata air bag inflator recalls. The Amended Coordinated Remedy Order sets requirements for when automakers must have replacement parts available for customers and sets progress and completion deadlines for replacements of the defective parts, which have been responsible for 11 deaths and approximately 180 injuries in the U.S. The Amended Coordinated Remedy Order issued to Takata and the 19 affected automakers requires replacement parts to be obtained on an accelerated basis and made

available first to the riskiest vehicles. The order sets new requirements for automakers to certify to NHTSA when they have obtained a sufficient supply of replacement parts to begin repairs, and requires automakers to coordinate consumer messaging using best practices identified by NHTSA, the industry and the independent monitor of Takata and the Coordinated Remedy Program. This action builds on the Coordinated Remedy Program initiated in November 2015, incorporating the additional tens of millions of inflators recalled or scheduled for future recall since that date, most of which were included in the May 2016 recall expansion. There are currently 46 million recalled Takata air bag inflators in 29 million vehicles in the United States. Under the Amended Consent Order issued to Takata in May 2016, automakers will be required to recall additional inflators over the next three years, affecting approximately 64 to 69 million inflators in 42 million total recalled vehicles. Ultimately all frontal Takata inflators using non-desiccated phasestabilized ammonium nitrate will be recalled.