STREET SMART IOWA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION | FEBRUARY/MARCH 2019
DEALER SPOTLIGHT KRUEGER AUTO, INC.
DALLAS, TEXAS Permit No. 2079
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STREET SMART FEBRUARY/MARCH 2019 WWW.IOWAIADA.COM
SAFETY WATCH |
By IIADA Staff
SAFETY RECALLS
DO YOU HAVE YOUR PLAN IN PLACE?
Make your customer completely aware of the situation. A court of law might conclude that nondisclosure of a motor vehicle recall a dealer knew about or reasonably should have known about is consumer fraud. If the dealer made any favorable comments about a vehicle’s condition or safety, that would constitute deception. Auto dealers should make every effort possible to be aware of all current recalls on a vehicle and try to ensure the vehicle had any necessary recall work done prior to its sale. Remember that vehicle recalls can relate to any vehicle, not just late model vehicles. When you check a website for vehicle
recalls, print off a copy of your findings and keep this information in your vehicle file. This is another area where “disclosing what you know” can save you from a headache. Some states have enacted legislation that restrict a dealer from selling a vehicle with a known safety recall, and some manufacturers have also put a hold on selling specific makes and models because parts are not yet available to repair safety issues. Dealers should take every opportunity to determine if a safety recall exists on any vehicle they plan to retail and disclose this information to the consumer before they purchase the vehicle.
With over 57 million open safety recalls on vehicles in the United States, what is your dealership doing to make sure every car has a safety inspection completed? Do you have a detailed policy in place? It is imperative every vehicle being offered for sale at our dealerships be checked for safety recalls. We have to be fully transparent with our customers so they can make an educated decision. Check for Recalls It is a best business practice for used motor vehicle dealers to check if vehicles in their inventory have open recalls. Information may be found at several websites: • www.recalls.gov • www.safercar.gov • www.autosafety.org • www.freeautorecallsearch.org (This is a Carfax site and allows you to insert multiple VINs to check recall status.) • www.rascorepro.com (Select “Recalls” at the top of screen. It will do multiple VINs.) • Manufacturers’ toll free numbers may be found at www.autopedia.com/ html/HotLinks.html. Just search for “manufacturer phone numbers.” What is your responsibility to check for vehicle recalls? With the availability of online information regarding recalls on motor vehicles, a dealer can easily find information important for the dealership and its customers. Sometimes for a recall, parts to fix the problem are on back order. If this is the case and your customer wants to purchase such a vehicle, take time to orally disclose this information as well as put it in writing. WWW.IOWAIADA.COM FEBRUARY/MARCH 2019 STREET SMART
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FEBRUARY/MARCH
2019
INSIDE
03................................................... Safety Recalls 06................................... Iowa County Treasurers 08........................................IIADA Annual Meeting 10..........................................................CarLawyer 12................................................. Dealer Spotlight 16........................... Dealer Management Systems
ADVERTISERS INDEX
AutoZone........................................................... 13 Manheim...................................................... 3 & 11 NextGear Capital.......................................... 8 & 9 vAuto................................................... Back Cover
WHAT’S NEW
NIADA HR SUPPORT CENTER NIADA is proud to announce the creation of our new HR Support Center. NIADAHR.com is designed to help dealers navigate today’s hazardous and litigious business environment. Need a form? Need a document? Need an employee handbook? Need advice? It is all at your fingertips! Welcome to NIADAHR.com, your complete HR Resource Center. And it is currently offered at a 25-33 percent discount! For more information or a tour of the services, contact our developmental partner at Robin@MyPayrollSite.com or 888-878-2101 Option 2.
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
For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. 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 760065203. 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© 2019 by NIADA Services, Inc.
STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT Christy Haynes • christy@niada.com PRINTING Nieman Printing
DEALER FORMS, PRINTING AND PROMOTIONS
The following businesses can provide Iowa auto dealers with dealer forms, printing and promotional items: WILSON DISTRIBUTOR SERVICE 1-800-634-0974 • www.wds-usa.com 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
BOARD MEMBERS PRESIDENT
Rick Theilen
Theilen Auto Sales 10536 265th Street Clear Lake, IA 50428 641-424-3352
CHAIRMAN OF THE BOARD
Jeff Schneider
Pocahontas Sales & Service P.O. Box 66 Pocahontas, IA 50574 712-335-4470
VICE PRESIDENT
Clay Winterboer
Carroll Car Credit Co. 409 E. 6th St., Box 805 Carroll, IA 51401 712-792-0140
TREASURER
Judy Wilson, IIADA P.O. Box 337 Panora, IA 50216 641-755-4177
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STREET SMART FEBRUARY/MARCH 2019 WWW.IOWAIADA.COM
INVESTIGATIONS INFORMATION LINE
515-237-3050
BUREAU OF INVESTIGATION AND IDENTITY PROTECTION
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.
EXECUTIVE DIRECTOR Todd Thein
David A. Farmer
REGIONAL REPRESENTATIVES
Doug Wilson
David A. Farmer, Inc. P.O. Box 356 1613 Franklin West Branch, Iowa 52358 Center Point, IA 52213 Phone: 319-521-7333 319-849-2432
Douglas Livy, Jr
Quality Motors of Ames P.O. Box 7 Ames, Iowa 50010 515-290-2673
Kim Nelson
Nelson Automotive, LLC 300 Sandpiper Court P.O. Box 466 Polk City, IA 50226 515-984-9600
Jay Muller
Best Auto, Inc. 900 S. Grand Avenue Spencer, IA 51301 712-262-4581
Lake Country Automotive P.O. Box 341 Panora, IA 50216 641-755-3048
Marcus Hebert
CarsNow, LLC 2124 W. Broadway Council Bluffs, IA 51501 712-256-6757
Merrill Hitchcock
ADMINISTRATIVE OFFICES
P.O. Box 337 Panora, IA 50216 Ph: 641-755-4177 Fax: 641-755-3247 Email: iiada@netins.net Toll Free: 866-962-9202
AUCTION REPRESENTATIVES
Dave LaFleur
ADESA Des Moines
Monte Delzell
Dealer’s Choice Auto Auction
Merrill’s Motors 317 N. 8th Street Winterset, IA 50273 515-462-1683
Jami Schnoebelen
Tab Miller
Plaza Auto Auction
Preowned Solutions 11010 Douglas Avenue Urbandale, Iowa 50322 Phone: 515-528-8180
Des Moines Auto Auction
Mark Greb
ASSOCIATION NEWS
PRESIDENT’S LETTER
DO
AUTO
DEALERS
NEED
With the new age of online auctions, one wonders if the brick and mortar auctions will survive. I am sure the online auctions are sometimes more convenient for many dealers. There is an auto auction somewhere every day of the week. Most dealers have a favorite auction within driving distance of their dealership. Most of us dealers look forward to getting up early on auction day to drive to our favorite auction. We look forward to being out of our office part of the day. After we get our bid badge, and visit with the auction staff a few minutes, we grab a cup of coffee and breakfast. After telling fibs to each other of how good business has been this week, we head out to the lanes. Looking down the lanes and lanes of cars, on acres and acres of land, is like being in a giant outdoor candy store. This is especially true when the auctions have popcorn, candy and donuts – oh yeah! I try not to smile as I convince my wife I worked all day! The fact is us old school dealers are much more of a “touch and feel the actual vehicle” breed. This is how a lot of dealers check over an auction unit. First, we look down the dozens of rows of vehicles lined up for acres upon acres. Then there is that one vehicle that just stands out from all the other units for some odd reason – some call it the “gut feeling.” We run our fingers over the vehicle like we are looking for a flaw in a piece of art. We feel under the fender well to check for repaired dents or rust. We also run our fingers over any flaws we see on the unit, like scratches and especially dents. We have been trained to use a penny to check tire tread. Well, as a dealer, we might just think a little differently than other people. When we walk up to a unit, we cannot help but stick our finger just as deep as we can into the tread. Who can trust a penny anyway? The Auctioneers How great is it to be in a brick and mortar auction setting, gathering in the ring next to hundreds of other dealers trying to outbid each other on a unit? You have professional auctioneers picking out buy bids from dozens of dealers trying to buy a unit to add to their inventory. The most exposure to an auction most people get to experience is attending an estate or farm auction. The general public has no
BRICK
&
MORTAR
idea what a wholesale auto auction is really like. At farm sales, an auctioneer may spend 4-6 minutes selling a pitch fork! At the dealer auctions, these guys sell a unit every 40 seconds or so per lane. Auctioneers rattle off the next bid amount. Ringmen work the crowd of dealers to get a solid bid, raising their arm and yelling “yup!” so the auctioneer can see and hear the bidder. The excitement is high. This isn’t your granddad’s farm auction. Kudos to all auctioneers and the ringmen! Does anyone realize dealers are superhuman? Yes sir, they sure are. Here’s why: there are several hundred units at an auction you may want to bid on. A dealer can only test-drive a few before the auction starts. This leaves maybe 90 percent of the units they have not had time to drive. Remember there are several lanes running at one time, and only 40 seconds per unit. In a 10-lane auction that’s 10-plus units selling per minute! If you were standing at a stoplight in Minneapolis, with maybe 30-40 cars at the stoplight, and you had one minute to pick out the car you want to analyze and try to find the one unit you want to buy for yourself, could you decide on that in one minute? Of course, larger auctions – with more lanes – could be selling 30-50 units per minute. This is where the dealer becomes superhuman. Let’s say there are six lanes running. You have not looked at any of the six units in the ring. You have 40 seconds. Go. You need to pick one, two or three units you would like to purchase. You find two you like. You walk over to the first one and remember the finger in the tire tread trick. Your eyes and ears are at work too. Your eyes look over the body and interior. Is the air and radio working? Is the unit a stick or automatic? Is there a sunroof or a trailer hitch? Can you see any paint work or any physical flaws on the vehicle? Your ears are listening for any noise that should not be there – engine ticks, belts squealing, brakes dragging, exhaust manifold leaks, missing catalytic converters, etc. As soon as you remove your finger from this unit, you walk over to another lane to stick your finger in familiar places all over again. While your mind and fingers are processing this intel, your ears are listening
AUTO
AUCTIONS?
to the bids the auctioneer is ringing out over his microphone. Is the bid on the unit higher than you want to pay? Are you able to sell this unit for a little more than you expected? Oh, heck – just buy it. Then comes the famous last words of most dealers after they win the highest bid: “Oh, shucks. I just paid too much!” This all happens in 40 seconds – 44 seconds if you include the “oh shucks” mind lapse time. More in the Ring The unit is driven into the ring and stops in front of the auctioneer. The ringmen swoop up and surround the next unit to be sold. The ringmen are just as professional and important as the auctioneer. They complement each other. The auctioneer starts the bidding with an opening price. About a dozen dealers start to bid, often at $100 at a time. Bidders start to fall off. After just a few bids only two or three dealers are left, then only two and the battle of wits and cash is on the line. A hundred other dealers are on the sidelines watching the last two dealers raise their bids until one of them falls out of the bidding. It’s much like watching the “Rumble in the Jungle” with Ali and Foreman – you have the fans, the ringmen and the auctioneer as the referee, all waiting to see who wins the battle. How Can You Not Have a Great Time at the Auto Auction? Most of you by now have figured out I personally believe in brick and mortar auto auctions. It is definitely part of a dealer’s lifestyle and weekly habits. The new generation of dealers will most likely acquire most of their inventory online, just as easily as we have acquired our inventory over the decades from brick and mortar auctions. Many of the younger dealers may never have the exciting experience many of us older dealers have been able to experience for years. Most dealers take their business very seriously and want to ensure they are buying a good product and that is why we have become “hands on” buyers. Thank you for the many memories you have given me in being part of the brick and mortar auctions. I hope you can be my weekly partner for many years to come. Rick Theilen is president of IIADA.
WWW.IOWAIADA.COM FEBRUARY/MARCH 2019 STREET SMART
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INDUSTRY SPOTLIGHT | By IIADA Staff
IOWA COUNTY TREASURERS PROVIDE IMPORTANT ROLE FOR IOWA AUTO DEALERS SANDY
DELANEY
The 99 Iowa county treasurers have played an important role in the daily business activities undertaken by Iowa auto dealers. In fact, dealers in Iowa have been spoiled by the system established many years ago to process titles and registrations. Our county treasurers are elected officials who run for office every four years and must declare their party affiliation. Many dealers have had a great relationship with their county treasurer’s office over the years. An electronic title and registration program has been in the testing phase for quite a while with franchised auto dealers. In the near future this program will be available to all Iowa auto dealers. This will simplify the entire process, allowing dealers to process titles and registrations at the dealership, which will cost dealers less time. We wanted to visit with a treasurer from a large county and a smaller county to take a look at their day-to-day activities on behalf of auto dealers. In writing this article we visited with the Scott County and Cedar County treasurers to learn how they have worked with dealers over the years, and will continue to do so. In Iowa, consumers and dealers have ready access to the county treasurer’s offices, many of which are in close proximity to their homes or businesses. Iowa has not gone to centralized locations for title transfers, such as Illinois where title processing is somewhat of a headache. Iowa DOT statistics tell us our 99 county treasurers processed 4,462,565 titles and registrations during 2017. Scott County performed 223,447 of those while Cedar County transacted 32,719. This includes
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autos, multi-purpose vehicles, motor homes, business trade trucks, regular trucks, farm trucks, tractor trailer trucks, regular trailers and travel trailers as well as many other types of vehicles. Cedar County Treasurer Sandy Delaney Sandy Delaney started working at the Cedar County treasurer’s office in 2001. She learned all the different aspects of the department and continued to take on additional responsibilities. She was rewarded for her time, hard work, and dedication. In May 2017 Sandy was appointed as the new Cedar County Treasurer, and in November 2018 was elected to continue her service. Sandy has six staff members who run the day-to-day operations in the treasurer’s office. Everyone is cross-trained to handle property taxes and vehicle registration and titles. However, only three are able to issue driver licenses at this time. The motor vehicle and property tax departments are open Monday through Friday from 8:00 a.m. until 4:00 p.m. The driver’s license department is open Monday through Thursday from 8:30 a.m. until 3:30 p.m. “Our department will average 40 to 50 transfers a day,” Sandy said. “The dealer titles vary – some days we will do two or three, then we might do 15 one day the next day we won’t have any. Mondays in general are very busy for our department, but not necessarily because of dealer titles. “Since we do not have an actual dealer counter, we don’t limit the number of transfers. However, if we are busy we just ask the dealerships to leave their titles and have them pick them up later. No one gets too excited because our dealers don’t wait until the last minute to do their transfers for the most part. “Like all county treasurers’ offices we see a lot of different errors with dealer titles. Most of the time, for my department, we see incorrect fees or missing odometer and damage disclosure statements. They are all easy corrections – they just delay the process for the title clerk and the dealership.
STREET SMART FEBRUARY/MARCH 2019 WWW.IOWAIADA.COM
“We do not provide any specific training. However, we are always available to answer questions and assist with the paperwork. This is true for the dealers but more often than not for the general public. They just are not familiar with how to complete the documents or even what documents are required. So a lot of the time we have to direct them on how to fill out the needed forms. “We have not been directly involved with the electronic registration and title project. However, my staff will be fully trained and ready to assist our dealers when the system goes live in 2019. “We are always available to answer any questions about fees or using the correct documents. Anything we can do to assist the dealers or consumers on their end only helps us do our job more efficiently. “We don’t really see a lot of red flags concerning our dealers. With the general public we often are concerned with accurate purchase prices, forged signatures, and alterations to paperwork.” I inquired about any encounters with the terrorist watch list. Sandy said, “No! Thank goodness. We have been very fortunate here in Cedar County. Our dealers handle everything that they send in and we know most everyone in our county.” I want to thank Cedar County treasurer Sandy Delaney for her time and giving us an overview of her office. IIADA would like to thank Bill Fennelly and Sandy Delaney for taking the time to visit with us about how their office functions. We would also like to thank them both for their service to consumers and dealers. We are aware not all dealers take the time to do their title paperwork correctly and we would like to remind dealers your county treasurer is always available to provide guidance on the proper procedures for your dealership title work. The biggest complaint IIADA gets from dealers is a county that limits the title transactions a dealer can perform daily, and that will all change in the very near future when the electronic title and registration program goes live.
INDUSTRY SPOTLIGHT
ADVICE FROM THE SCOTT COUNTY TREASURER
MEET
BILL
FENNELLY
We took some time to visit with Scott County treasurer Bill Fennelly and operations manager Barb Vance, just to see what it’s like to oversee one of the largest treasurer offices in Iowa. Bill Fennelly has held the office of treasurer since 1994. Bill had always been involved in politics in Davenport and felt he would be a good candidate for the position of Scott County treasurer. After 24 years, everyone agrees Bill is the right person for this job. Barb Vance has been with the Scott County treasurer’s office for 40 years. When you’re running a treasurer’s office the size of Scott County’s, you need personnel with knowledge and a strong work ethic. Barb has worked her way through the treasurer’s department. She has the knowledge and personality to work with everyone, from the dealers and citizens to other government agencies. The Scott County treasurer has 28 staff members who provide services from two locations. The main location is open from 8:00 a.m. until 4:30 p.m., Monday through Friday. The satellite location is open Monday through Friday from 8:30 a.m. until 5:00 p.m. and Saturday from 8:00 a.m. until 12:00 p.m. Every staff member is cross-trained to handle property tax and title registration. The satellite location handles property tax, title registrations and the driver license department. The Scott County treasurer processes about 5,000 titles a month, with around 250 being out-of-state titles. While Fridays are the busiest day of the week for processing titles, the end of the month always brings a lot of title work too. Tax time sees a large increase in title applications along with any of the abandoned vehicle sales the city holds. Dealers are able to process up to three title applications at a time and are able to go through as many times as they would need. However, most of the dealers use their dealership’s drop box. The most common types of errors seen by the title clerks are simple mistakes such as odometer signatures and not using the proper power of attorney forms as well as not getting a dealer title on out-of-state vehicles and later finding a mistake that prevents the title from being transferred. If the finance mangers or title clerks would take the time to verify mileage, ensure signatures are on the correct lines, and get the out-of-state titles in the dealer’s name in a timely manner, it would
eliminate the majority of titling problems at the treasurer’s office. The Scott County treasurer’s office is always available to assist your title clerks, whether it be training new employees or giving refresher courses to keep everyone current on any changes taking place. With the electronic registration and title program going active in 2019, we expect a lot of additional training to take place in the next year. The Scott County treasurer has been very active in working with the Department of Transportation on the title and registration project. They have one of their staff members on the committee as part of the user acceptance team. They feel the better they are trained before the program goes live, the easier it will be to have their dealers up and running with the new system. However, they do remind us we do not have to use the new electronic registration and title system. It’s basic information but still holds true today: The easiest thing dealers can and should do is get their paperwork done in a timely manner. Do not wait until the last minute. Customers would like to get their paperwork and plates as soon as possible. This makes the treasurer’s job easier because they do not have to take phone calls from the
customer inquiring about plates or contact the dealership to have them finalize the paperwork. If you as a dealer run into a problem, ask for assistance. The county clerks are trained in every aspect of Iowa title work and can resolve your issues quickly. What are the biggest red flag issues the treasurer’s office looks for on title work? Signatures, dates, and correct mileage on customer to customer sales, because the average person has no idea how to process all the different forms needed to complete the title transfer. That’s when county clerks have to explain the correct process to complete the paperwork. In the event a citizen is required to carry SR22 insurance, this will be a red flag and has to be verified before a vehicle can be registered. It is the dealership’s responsibility to make sure the customer is not on the OFAC watch lists. For a citizen to renew their registration they have to have a current license or proper identification. It was a pleasure to sit down with Bill Fennelly and Barb Vance and get their input on several issues that affect all dealers in Iowa. They truly are working to better the process for registering vehicles, not only in Scott County but throughout the state. WWW.IOWAIADA.COM FEBRUARY/MARCH 2019 STREET SMART
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ASSOCIATION NEWS
AUCTION NEWS
IIADA ANNUAL MEETING
MANHEIM LAUNCHES MANHEIM IOWA
April 27 at Price Creek Event Center
Please join us for the 2019 IIADA Annual Meeting! It will be held Saturday, April 27, at Price Creek Event Center in Amana, Iowa. The preliminary schedule will start around 10:00 a.m. with guest speakers from the Iowa Department of Transportation, the consumer protection division of the Iowa attorney general’s office and others. We will host the IIADA scholarship recipients and their guests, hold the IIADA scholarship auction to raise funds for scholarships and visit with old and new friends. Additional information will be provided in the next issue of Street Smart or on the IIADA website. There are numerous lodging facilities in and around Amana, including many bed and breakfast facilities. All information will be posted on the IIADA website at www.iowaiada. com. If you have questions, contact us at 641-755-4177, 319-643-5403 or iiada@ netins.net.
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LEGISLATIVE UPDATE By IIADA Staff
IOWA LEGISLATURE
Back in Session
The 88th General Assembly of the state of Iowa got underway January 14 and will be in session for around 100 days. We will keep you updated on various laws enacted that will impact auto dealers. If you have any questions about various legislative proposals, let us know and we will help. We monitor daily all bills that are filed, action of the various committees and floor debate. The IIADA lobbyist works with our staff so we are fully informed of legislative activity on proposed legislation that might impact our industry. Information may be found at the following website: www. legis.iowa.gov.
STREET SMART FEBRUARY/MARCH 2019 WWW.IOWAIADA.COM
First Mobile Auction in Iowa
Manheim recently established Manheim Iowa, its first mobile auction site in the state, and held its first sale on December 2. Despite the cold weather, 124 dealers participated in the sale, including 57 in-lane and 67 via digital channels. Of the 118 vehicles offered, more than half were sold. “When Manheim approached me about hosting an auction, I felt it was a great opportunity,” said Karl Chevrolet owner and dealer principal Carl Moyer. “The Manheim brand is synonymous with quality – something I’ve spent 40 years building at Karl Chevrolet, so the partnership was a natural fit.” Manheim’s expansion of its mobile auction network into Iowa is part of a planned commitment to meeting local dealer needs and establishing operations in underserved markets. With the addition of the Des Moines sale, Manheim now operates mobile auctions in 25 states. “The ideal mobile auction candidate will have at least 100 vehicles per sale,” said Manheim director of mobile auctions and offsite solutions Greg Smith. “Consignors such as Karl Chevrolet provide the vehicles and location, and our mobile auctions deliver a targeted buyer base while reducing the consigner’s transportation and travel costs. Manheim makes it easy and convenient for the dealer by bringing the auction to them.” Manheim Iowa hosts their regular sale every other Monday at 3:00 p.m. CT. Manheim Iowa is located at 723 SW 8th Street in Stuart, Iowa. For more information, visit www.manheim.com.
ACCELERATE
| By GWC Warranty
4 VSC FEATURES THAT COOL POST-SALE HEAT
YOU
DON’T
HAVE
TO
Customer buys a car. Customer leaves your lot. Customer has a breakdown. Now your reputation is on the line. If you informed your customers of the VSC features that can help following a breakdown, this potential for post-sale heat won’t even make you break a sweat. The moments following a breakdown are undoubtedly a stressful time for your customers. They’re worried about getting a tow, how much it will cost, whether their service contract covers the repairs and what they will do in the interim while their vehicle is being repaired. These questions, coupled with emotions running high, can be a recipe for postsale heat you and your reputation can live without. Thankfully, if you’ve informed your customers about key features of their service contracts, you can avoid any potential blowback from angry customers navigating a vehicle breakdown. Find a Service Facility If you don’t have your own service bay, highlighting where your customers can find repair facilities that have an existing relationship with your VSC provider will help them quickly find a place to take their vehicle. Perhaps even more importantly, showing your customers where they can find repair
BREAK
A
SWEAT
facility information can bail them out of a difficult situation when traveling. Coverage Lookup These days it’s all about self-service. Most customers today would prefer to find answers to simple questions on their own. Following a breakdown, a customer may want to know if their service contract is still active and what components are covered. In these instances, if they know where to look up their coverage online, they can quickly find this information on their own, even outside of business hours. Instructional Content When customers need repairs quickly, there’s no time to go back and forth over claims procedures. With content readily available online that outlines proper claims procedures, customers can navigate the claims process with as few roadblocks as possible, ensuring a quick and painless claims experience. Multiple Contact Options Customers have different communication preferences. Some might want to make a phone call while others prefer email or live chat online. A VSC provider with all of these options at your customer’s disposal helps them get the answers they need quickly so they can get their car back on the road as soon as possible.
WWW.IOWAIADA.COM FEBRUARY/MARCH 2019 STREET SMART
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LEGAL UPDATE
By Thomas B. Hudson and Nicole Frush Munro
THE CARLAWYER Here’s our monthly article on legal developments in the auto sales, finance and leasing world. This month, the action involves the Consumer Financial Protection Bureau and the Federal Trade Commission. As usual, this month’s article features our “Case of the Month.” Note this column does not offer legal advice. Always check with your lawyer to learn how what we report might apply to you, or if you have questions. This Month’s CARLAWYER Compliance Tip Do you sell “ancillary products” like GAP, vehicle service contracts, tire protection and the like? If so, do you mark those products up the same amount for all buyers? Do you have a written markup policy for these sales? If you don’t, you might be skating on thin legal ice without understanding the risk. There’s yet another item to put on your “talk to my lawyer” checklist. FEDERAL DEVELOPMENTS Have you been “overbiffed?” Buy Here-Pay Here dealers should pay attention to this development. On November 1, the FTC and the New York AG’s office announced they have sued six corporations and one individual, Robert Heidenreich, who controlled a New York-based debt collection operation, for tricking people into agreeing to pay more than they allegedly owed, according to defendants’ own business records. A federal court temporarily halted the operation’s illegal activity and froze its assets. The complaint alleged the defendants’ employees often completed forms showing they demanded more money than consumers allegedly owed (known as “overbiffing” in the debt collection industry). In many cases, according to the complaint, consumers agreed to pay more than they allegedly owed. The complaint also alleged employees pretended to work for law enforcement agencies and threatened consumers with arrest. Other collectors falsely claimed to work for attorneys and told consumers they would face lawsuits if they did not pay alleged debts. The FTC and NY AG allege these practices violated the FTC Act, the Fair Debt Collection Practices Act, and similar New York state laws. Report card time: On November 9, the Consumer Financial Protection Bureau released its semi-annual report to Congress for the period of October 1, 2017 through March 31, 2018. The report addresses, among other things, the proposed rules the bureau intends to issue during the upcoming period, as reflected in the bureau’s Spring 2018 Unified Agenda, such as the proposed debt collection rule and the proposed rule to reconsider the Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule.
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KEEPING YOU INFORMED WITH THE LATEST GOVERNMENTAL ISSUES AND ACTIVITY IN THE USED CAR INDUSTRY
The report also notes the final rules the bureau intends to issue during the upcoming period, as also reflected in the bureau’s Spring 2018 Unified Agenda, including finalizing an amendment to Regulation P concerning annual notice requirements under the Gramm-Leach-Bliley Act. On November 16, the bureau published its semi-annual regulatory agenda as part of its Fall 2018 Unified Agenda. Bridging the GAP: On November 20, the bureau announced a settlement with a major finance company, resolving allegations the company engaged in deceptive acts and practices in connection with the marketing of its guaranteed asset protection product, in violation of the Consumer Financial Protection Act of 2010. The bureau also alleged the company misrepresented to consumers who had missed at least one payment on their vehicle financing contracts the impact of receiving extensions of the maturity dates of their contracts, including by not clearly and prominently disclosing that the additional interest accrued during the extension period would be paid before any payments to principal when the consumers resumed making payments. Under the terms of the consent order, the company must, among other provisions, provide approximately $9.29 million in restitution to certain consumers who purchased the add-on product, clearly and prominently disclose the terms of its contract extensions and the add-on product, and pay a $2.5 million civil penalty. Listen up, high-end dealers: On November 21, the bureau and the Federal Reserve Board announced they are increasing the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) for exempt consumer credit and lease transactions. The Dodd-Frank Act provides the dollar amount thresholds for TILA and the CLA must be adjusted annually by any annual percentage increase in the consumer price index. Because there was an annual percentage increase in the consumer price index as of June 1, 2018, TILA and the CLA generally will apply to consumer auto credit transactions and consumer auto leases of $57,200 or less beginning January 1, 2019.
A salesman told a potential buyer a used car was $16,900 and was “clean and had never been in an accident.” The retail installment contract listed the car’s purchase price as $18,000, and the buyer was told the $1,100 discrepancy was a “bank fee.” The buyer alleged he was not given a copy of the purchase order or the RIC. About nine months later, the buyer learned the car had sustained significant structural damage before he bought it and was unsafe to drive. He returned the car to the dealership, revoked acceptance, and sued the dealership, alleging violations of the Truth in Lending Act, Electronic Fund Transfer Act, and the Connecticut Unfair Trade Practices Act as well as breach of implied and express warranties. The buyer moved for a default judgment. First, the federal trial court found the dealership violated TILA by not giving the buyer a copy of the contract containing the required disclosures before consummation of the agreement and by including the $1,100 “bank fee” in the purchase price on the RIC. The court noted inclusion of the “bank fee,” which was an additional charge beyond the price at which the dealership would have sold the car for cash, allowed the dealership to understate the finance charge. Second, the court found the dealership violated the EFTA by requiring the buyer to set up preauthorized electronic transfers of the contract payments as a condition of financing. Third, the court found the dealership breached the implied warranty of merchantability by selling a car that was unsafe to drive while it knew or should have known about the car’s condition at the time of sale. Then the court found the dealership also breached an express warranty because it told the buyer the car was “clean and had never been in an accident,” and the buyer relied on that statement when he decided to buy the car. Finally, the court found that the dealership’s negligent misrepresentation of the condition of the car elevated its breach of warranties to the level of a CUTPA violation. The buyer also established the dealership violated the CUTPA by violating TILA and potentially violating Connecticut’s Retail Installment Sales Financing Act when it misrepresented the car’s purchase price. See Alexis v. PMM Enterprises, LLC, 2018 U.S. Dist. LEXIS 184367 (D. Conn. October 29, 2018). So, there’s this month’s roundup! Stay legal, and we’ll see you next month.
CASE OF THE MONTH Dealership violated TILA, EFTA, and Connecticut Unfair Trade Practices Act and breached warranties in connection with car sale: How many different ways can a dealer get into compliance trouble in connection with the credit sale of a vehicle? Read on!
Tom (thudson@hudco.com) is of counsel and Nikki (nmunro@hudco.com) is a partner 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 the CEO of CounselorLibrary. com, LLC and the 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. © CounselorLibrary.com 2018, all rights reserved. Single publication rights only, to the Association. (12/18). HC 48448478-4770.
STREET SMART FEBRUARY/MARCH 2019 WWW.IOWAIADA.COM
DEALER SPOTLIGHT |
By IIADA Staff
GETTING TO KNOW YOU KRUEGER
AUTO,
INC.
If you have ever been to Lone Tree, Iowa, you can’t miss the giant “Lone Tree” sign that points toward the city. That landmark sits in front of Krueger Auto, Inc., another landmark that has been selling vehicles in eastern Iowa since 1998. Dick Krueger started Krueger Auto, Inc. in January 1998. With over 30 years in the new car industry, Dick wanted to create a dealership that made it easy to buy a quality vehicle without the stress created by the larger dealerships. This laidback, straightforward attitude helped establish Krueger Auto, Inc. as one of the most reputable dealerships in eastern Iowa in a community of almost 1,400 people. I recently drove to Lone Tree to visit with Todd Krueger, Dick’s son and current owner of Krueger Auto, Inc. Their dealership is located on the northern end of Lone Tree, just off Highway 22, an easy 20-mile drive from Iowa City. As I pulled up to the dealership I couldn’t help being overwhelmed by the large selection of inventory Todd keeps on hand. Todd met me at the door and I commented how impressed I was with his inventory and the selection on the lot. “We try to maintain at least 45 to 50 high end vehicles at all times, which is a constant battle because we will sell between 20 and 25 vehicles a month,” Todd said. I asked how many salespeople work for the dealership. He said, “You’re looking at him. This has always been a family dealership from when Dad and Mom and my sister Melissa started it. I came home 16 years ago to work at the dealership. Then Michelle, my other sister, started working with us seven years ago. Each one of us has our own job to do but we really work great together.” “We do have two part time mechanics,” Todd said, “But only to inspect and work on our vehicles. Every used car goes through my shop and is made road ready. We want to make sure that everyone, no matter what they are buying, has a positive ownership experience.” How is Todd able to maintain his inventory? “I take the time and handpick the inventory from the lease and fleet sales from Manheim auctions,” said Todd. “I will pay more to have that lower mileage unit my customers have come to expect. The vehicles I stock are always nicer and have more equipment. This is one the hardest
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STREET SMART FEBRUARY/MARCH 2019 WWW.IOWAIADA.COM
challenges we face on a daily basis. We are trying to meet the needs of our customers while watching the used vehicle market spiral out of control. “The used car sales have given way to crossover and SUVs. These buying trends seem to change without notice and there are times when we get caught with the wrong inventory mix. “Our truck sales have always been very strong, but when you’re located in a rural market that is to be expected. However, it is the same problem trying to have the right inventory. We try to carry a variety of 1500 and 2500 models, but with all the body combinations I just look for clean lower mileage trucks.” Todd told me his dad designed and oversaw the building of his new dealership. He opened it in January 1998. They had six cars on the gravel lot and did not see their first buyer for almost two weeks. Things slowly started to pick up and by June they had scheduled their open house for the community. It was at this time they were caught in a straight-line windstorm that took part of their building down and destroyed their inventory. Todd said the one thing that came out of the storm was they were insured, so they were able to rebuild and replace the vehicles. After that storm, it seemed people knew about their dealership and the growth began. I was curious about the advertising Krueger Auto uses. They stay very loyal to the small town newspapers. A lot of their
customers still like to shop using the paper. They also have a very simple but active website. Todd has thought about changing it but his customers like how easy it is to navigate and find vehicles. They also use Cars.com, Autotrader and Facebook Marketplace. Yet referrals and repeat customers are hands down his best form of advertising. “We go that extra step with every customer to ensure they are satisfied,” Todd said. “It always amazes me when I see a customer bringing in a friend, saying ‘Krueger Auto has always taken care of me, and they will take care of you too.’ The repeat and referral customers show the highest form of respect for us doing our job right.” Growth is always an unknown. I asked Todd where he sees his business in the next five to 10 years. He said, “Right now if we are able to maintain our current yearly sales and retain our customer base the future looks strong. We will continue to look for trends in our market and target those specific areas while providing quality late model cars, trucks and crossover vehicles to our customers. This is how we started and will continue to grow our business. “What we are doing here is no secret. It is just putting in the time, taking care of the customers and finding the vehicles.” Up until the last five years Lone Tree had not really seen any new growth, but while driving through the town I noticed a new community center next to the high school.
THIS IS ONE OF MANY SMALL HOMETOWN DEALERSHIPS THAT ARE A NECESSITY TO RURAL IOWA. IT IS A DEALERSHIP THAT DOES BUSINESS THE RIGHT WAY. Todd told me his family and dealership assisted by making donations any time they were asked. Being part of a community means doing what you can to help the town grow. As much as Todd is at the dealership, I asked if he has any hobbies. “Besides work?” he laughed. Todd enjoys riding motocross when he can, spending time with his family, and watching all the activities his two teenage kids are involved in. This is one of many small hometown dealerships that are a necessity to rural Iowa. It is a dealership that does business the right way. Krueger Auto is involved in the community and willing to help their neighbors and stand the test of time. They do not want to be the biggest dealership but they truly want to be the best at what they do. We want to thank Todd for his time and for being a member of the Iowa Independent Automobile Dealers Association since 2001. It was great getting to know Krueger Auto, Inc.
WWW.IOWAIADA.COM FEBRUARY/MARCH 2019 STREET SMART
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AUCTIONEER SPOTLIGHT | By IIADA Staff
GOING ONCE, GOING TWICE, SOLD! JESSE
VAIS
For most of us the thought of getting up every day between 3 and 4 a.m. would seem like a nightmare. Not for Jesse Vais – it’s just starting the day in the profession he loves. Jesse grew up in the auction business. His father, Bernard, is an auctioneer and the owner of Anita Livestock Auction in Anita, Iowa, along with his mother Becky. Bernard and Becky taught their son the family business. Jesse has been working in some capacity of the auction since he was old enough to run clerk sheets and help set up furniture for household sales. As he got a little older he was given the responsibility of sorting cattle for the auction. Jesse is a graduate of Anita High School, located in Cass County. The town’s welcome sign proudly proclaims “A Whale of a Town.” Jesse lives on a 100-acre farm in Audubon County, not far from Anita. He has room in his home for his exercise equipment, which he uses faithfully each day. In 2000, Jesse went to Missouri Auction School in Sunset Hills, Missouri. This is where Jesse perfected his profession. It is not as easy as he makes it look to get up in front of hundreds of buyers and make sure everyone’s unique signal is recognized for their bid. Several auctioneers have been mentors to Jesse over the years. First and foremost is his father. Jesse said, “He got me started as an auctioneer, and in the auction business.” He also mentioned Mike Hagerman, Paul Wegner, Bobby McGlothlen, Matt Moravec and Mark Delzell as good friends and mentors. “The one thing about being an auctioneer,” Jesse said, “is you never stop honing your skills.” On average, Jesse travels over 1,500 miles a week. On Mondays he is on the road heading north to Minneapolis, Minnesota, or Des Moines, where he works for Carmax Auctions. Biweekly on Monday afternoon he auctions at a Manheim mobile auction in Stuart, Iowa. Each Wednesday morning he heads west
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to Lincoln and “cries” at the Lincoln Auto Auction only to get back in the car and head east to be in Mount Vernon, Iowa, by 4:30 p.m. for the evening sale at Plaza Auto Auction. Thursday morning he is back in the car heading to Omaha, Nebraska, working with the Manheim Omaha Auction. Friday morning Jesse heads to Des Moines to work with the Givant family at the Des Moines Auto Auction on the south side of Des Moines. After the sale in Des Moines, Jesse returns to work at his family’s livestock auction in Anita. If this work schedule isn’t busy enough, the Vais family business also handles all kinds of other auctions, real estate, farm, antique, and household sales, most of which are held on Saturdays and Sundays. Depending on the sale, Jesse will offer between 150 to 250 cars in a lane. “The simulcast feature has added a lot more buyers to the auctions and has given the auction a greater area to service,” Jesse said. “It’s not uncommon to have Internet buyers from all across the Midwest. The simulcast has changed the way cars are being presented but it has not changed how they are being sold. You still have to have two parties that both want to buy one item to make the auction work.” Jesse’s family includes his brother Curtis, who lives in Charles City and teaches crosscountry and track at the North Iowa Area Community College in Mason City. Jesse also has two nephews. Someone once said, “You can take the man out of the country but you can’t take the country out of the man.” This certainly applies to Jesse. He comes from the rolling hills of central/western Iowa. Though he leaves nearly every morning, he returns each night to the peace and quiet of his homestead. Jesse knows his hometown has one of Iowa’s famous restaurants – The Redwood Steak House – but his favorite food is pizza.
STREET SMART FEBRUARY/MARCH 2019 WWW.IOWAIADA.COM
His hobbies include giving his many dealer friends a good old hard time. They have given Jesse a nickname but this is not the place to share that – just ask Doug Wilson or Chris Kloppenborg and they will readily share it with you. Jesse has a great sense of humor and he takes the hard times many dealers dish out on him in good fun as well. He always jokingly tells us his hobby is collecting pop cans – we know he is joking because he could only do this at night. Now this good looking gentleman from rural Iowa could be considered an eligible bachelor – and certainly could be a candidate for the television program “The Bachelor” – but he has been occupied by the presence of a steady girlfriend for several years. Jesse and his friend Chantz Davidson have volunteered several times at the IIADA Scholarship Fund auctions at the IIADA annual meetings and have helped the association raise a lot of money for the IIADA scholarship fund. Jesse has learned the auctioneer business from the ground up. He is also an excellent ringman as most auctioneers start out “ringing” as they learn the trade – “the bid catcher” also serves as a very important person in every car auction. Yes, Jesse, now and then, will reach up to the chandelier for a bid – just part of the process as merchandise “comes on to the block.” Next time you’re at the auction and see Jesse chanting away, give him the tip of your hat and thank him for all he brings to the area. He is professional, friendly and makes it enjoyable to buy cars from a dedicated auctioneer. IIADA appreciates all of the auctioneers and ringmen from Iowa who work hard to sell vehicles to Iowa auto dealers. The job you perform is an asset to the auction process and we know it is hard work, long hours and a lot of time “busting bugs.” It’s a job you each enjoy very much and we enjoy working with each of you as well.
HAZMAT COMPLIANCE MATTERS
W H A T
Y O U
N E E D
Do we understand what HAZMAT – or hazardous material – is and what we as automobile dealers need to do to be compliant? Hazardous materials are defined and regulated in the United States primarily by laws and regulations administered by the U.S. Environmental Protection Agency (EPA), the U.S. Occupational Safety and Health Administration (OSHA), the U.S. Department of Transportation (DOT), and the U.S. Nuclear Regulatory Commission (NRC). Each has its own definition of a “hazardous material.” A hazardous material is any item or agent (biological, chemical, radiological, and/or physical) that has the potential to cause harm to humans, animals or the environment, either by itself or through interaction with other factors. Hazardous materials professionals are responsible for and properly qualified to manage such materials. This includes managing and/or advising other managers on hazardous materials at any point in their lifecycle, from process planning and development of new products through manufacture, distribution and use to disposal, cleanup and remediation. OSHA’s definition includes any substance or chemical that is a “health hazard” or “physical hazard,” including chemicals that are carcinogens, toxic agents, irritants, corrosives, sensitizers; agents which act on the hematopoietic system; agents which damage the lungs, skin, eyes, or mucous membranes; chemicals which are combustible, explosive, flammable, oxidizers, pyrophoric, unstable-reactive or waterreactive; and chemicals which in the course of normal handling, use, or storage may produce or release dusts, gases, fumes, vapors, mists or smoke which may have any of the previously mentioned characteristics. (Full definitions can be found at 29 Code of Federal Regulations (CFR) 1910.1200.) EPA incorporates the OSHA definition and adds any item or chemical which can cause harm to people, plants, or animals when released by spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping or disposing into the environment. (40 CFR 355 contains a list of over 350 hazardous and extremely hazardous substances.)
T O
K N O W
IF YOUR DEALERSHIP HAS A HAZARDOUS MATERIALS HANDBOOK, MAKE SURE EVERYONE KNOWS WHERE IT IS LOCATED AND HOW TO REFERENCE IT. DOT defines a hazardous material as any item or chemical which, when being transported or moved in commerce, is a risk to public safety or the environment, and is regulated as such under its Pipeline and Hazardous Materials Safety Administration regulations (49 CFR 100-199), which includes the Hazardous Materials Regulations (49 CFR 171-180). In addition, hazardous materials in transport are regulated by the International Maritime Dangerous Goods Code, Dangerous Goods Regulations of the International Air Transport Association, Technical Instructions of the International Civil Aviation Organization, and U.S. Air Force Joint Manual, Preparing Hazardous Materials for Military Air Shipments. Now that we are aware which departments of government oversee HAZMAT, we can look at real world examples of how to handle anything within our dealerships that needs specific handling. The website https://ehs.research. uiowa.edu/list-hazardous-materialsand-disposal-contacts is maintained by the Environmental Health & Safety Department at the University of Iowa in Iowa City, Iowa. The website includes a list of hazardous materials, or items that may contain hazardous materials. Many of these are considered hazardous waste, and in most cases may not be disposed of
in the dumpster, landfill or sewer. When spilled or leaked, most of these materials need to be disposed of as hazardous waste. Be sure to fully evaluate waste materials and contact the appropriate university department for disposal. For questions or assistance, contact EHS at (319) 335-8501. We need to have a specific plan in place when dealing with HAZMAT materials. Have we held a meeting with the entire dealership to address what is a hazardous material and how we are going to handle these materials? How about why it is important to follow our process in handling these materials every time? If your dealership has a hazardous materials handbook, make sure everyone knows where it is located and how to reference it. We have everyday items that we need to handle: Acids, adhesives, aerosol cans, air fresheners, antifreeze, automotive waxes, batteries, alkaline batteries, lead acid batteries, lithium ion batteries, NiCad batteries, nickel metal hydride batteries, nickel-cadmium batteries, rechargeable batteries, small sealed lead acid, biohazardous waste, brush cleaners, bug spray, car batteries, compact fluorescent lamps, cutting oil, disinfectants, dyes, fertilizers, filters, floor dry, fluorescent lamps, Freon, gasoline, glue, grease, herbicides, high intensity discharge lamps, inks, insecticides, lead weights, mercury vapor lamps, motor oil, paint, paint rags, paint solvents, parts cleaning solvent, propane cylinders, pump oil, refrigerants, resins, roofing tar, sodium lamps, solvents, spot removers, strippers, thinner, toner cartridges, transmission fluid, turpentine, used oil, water treatment chemicals and weed killer. These are just a few of the items we come into contact with on a daily basis. Proper training and disposal will ensure we are staying compliant and handling hazardous materials properly. Please review a HAZMAT manual for a complete itemized list and how to properly handle each item. Manuals are available on the various governmental websites. Being prepared for an emergency with all dealership employees fully informed of what to do when a problem arises will enable us to follow requirements under the law. WWW.IOWAIADA.COM FEBRUARY/MARCH 2019 STREET SMART
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MANAGEMENT MATTERS | By IIADA Staff
DEALER MANAGEMENT SYSTEMS
New Year Provides Opportunity to Get Up to Speed
It is somewhat alarming to us that many Iowa dealers do not have a DMS (dealer management system). We know some in the car business don’t think they can justify the cost of a dealer management system, but we suggest you visit with one of the many DMS companies available. Take a look to see what a DMS can do for your dealership. Inventory Management A DMS allows you to quickly add vehicle costs, search your vehicle screen and pull inventory reports.It also allows you to enter and track vendors, repairs and reconditioning costs. Features also include automatic VIN decoding, checking for recalls, and pulling vehicle history and value reports – NADA, KBB, Carfax, Autocheck, and NMVTIS – at the click of a button as well as adding unlimited photos to your website. Sale Processing You can enter cash, wholesale, Buy Here-Pay Here and outside financed sales as well as check OFAC’s SDN (terrorist) list against each customer name you enter and keep a record of all names checked. In a DMS, you can save your customer’s credit application information, insurance information, co-buyer information, residence and mailing addresses, sales commissions, and more. You can also print a profit/loss recap sheet for each sale. Forms Printing A dealer management system is supported by a team of dedicated programmers who will program all the forms your dealership needs to complete deals with your customers. White paper contracts, with no more carbon copies! You can use a built-in contract or continue to use your current forms. A DMS allows you to print a federal buyer’s guide for every vehicle and offers free custom forms programming. Custom form packs make paperwork simple. You can also print state forms, including title applications and online registration and titling, as well as send personalized letters to your customers in batches for birthdays, late payment notifications, annual privacy notices and other custom letters. Buy Here-Pay Here Many DMS programs provide powerful BHPH customer management tools to help you keep your business profitable. Customer maintenance is efficient and organized with your customer’s data at your fingertips. You can track BHPH customers’ due dates, payment schedules, late fees, and contact activity as well as enter payments for bank funding, fees, repairs, and notes balances. It also allows you to set up recurring payments, so you don’t have to wait on your customers to send in a check! You can also process repossessions and track write-off losses, automatically print IRS Form 8300 when needed, print letters and envelopes, and send emails. Full Accounting Suite We understand how important it is to keep accurate business accounting records. The DMS tracks all the costs and payments associated with your vehicles, saving them in a detailed general ledger chart of accounts. You can enter bills and expenses, record deposits, print checks, reconcile your bank statement and post to the general ledger as well as generate an income statement, balance sheet and custom G/L reports. Hundreds of Integrations Most DMS companies have partnered with providers of many valuable tools for the used car industry, giving you the most choice for your needs in areas such as vehicle marketing websites, vehicle history reports and value guides, funding portals and finance companies, GPS/ starter-interrupt devices,service contracts and insurance, Quickbooks and accounting services, credit reporting, electronic payment processing, electronic title and registration. Take some time to consider what a DMS can do for your dealership. Decrease your workload and increase your productivity. It can help you stay in touch with your customers and stay in compliance. IIADA has two approved DMS providers shown in the approved benefit provider section of this magazine: Frazer (www.frazer.biz) and Innovative Dealer Services (www.innovativedealer.com). Check them out – these systems can be your best friend.
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STREET SMART FEBRUARY/MARCH 2019 WWW.IOWAIADA.COM
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
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
8% DISCOUNT TO ALL IIADA MEMBERS
AUTOJINI.COM
Websites for Dealers Contact: Syed Azam 310 Main Street Ste 201 Ames, IA 50010 Phone: 515-232-2024 E-mail: syed@octadyne.com Website: www.autojini.com
CITIZENS COMMUNITY CREDIT UNION
2012-1ST AVENUE SOUTH FORT DODGE, IOWA 50501 Phone: 515-955-5524, Ext. 202 Fax: 515-955-8241
GLOBE ACCEPTANCE INC
U DRIVE ACCEPTANCE CORPORATION
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
An Iowa Sub-Prime Finance Company P.O. BOX 3107 Sioux City, Iowa 51102 Jeremy Bennett Office: 712-258-0269 jeremy@udriveac.com
GREATER IOWA CREDIT UNION
UNIVERSITY OF IOWA COMMUNITY 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.
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
PREFERRED WARRANTIES, INC.
200 Pinebrook Place P.O. Box 278 Orwigsburg, PA 17961 Website: www.warrantys.com Iowa contact: Larry Bohlen Cell: 515-322-6397 Fax: 1-877-233-0298 Email: lbohlen@warrantys.com
PROSOURCE FINANCE
We Do F & I for You 2540 106TH Street, Suite 202 Urbandale, Iowa 50322 800-795-1765 CU DIRECT (CUDL) jeff@prosourcefinance.com Contact: Paul Bejarno, Area Account website: www.ProSourceFinance.net Representative REYNOLDS & REYNOLDS INC. Phone: 515-988-0521 Email: paul.bejarno@cudirect.com Dealer Bonds Long Term Care Insurance Website: www.cudirect.com Various types of insurance 2855 E. Guasti Road, Suite 500 Contact: Dean M Clark Ontario, CA 91761 300 Walnut Street Ste 200 ERIKSON SOLUTIONS Des Moines IA 50309 SERVICES, LLC Phone: 515-243-1724 F & I Compliance & Sales Training Toll Free: 800-767-1724 Alpha Warranty Services Fax: 515-243-6664 Classic Essential GAP – Norman & Co. E-mail: d.m.clark@reynoldsFrazer Computing Rep reynolds.com Motorsport Dealer Solutions www.motorsport-dealer-solutions.com S & C AUTOMOTIVE, INC. Contact: Scott Erikson NIADA CPO Program & Training, F&I 15210 Castelar Circle Products, Reinsurance Formation, Omaha, Nebraska 68144 Appearance Protection, Spray-on P: 402-639-0664 F: 402-697-4937 Bed-liners, Accessory Installation eriksons@aol.com 3828 70th Street Urbandale, Iowa 50322 FOLLOW-UP PLUS P -515-276-9622 “Customers for Life” Fax: 515-276-8472 Repeat Sales, Referrals Contact: Doug Eckhart & Customer Loyalty doug.eckhart@scautomotive.net Contact: Terry & Sue Newell Website: www.scautoia.com P.O. Box 294 THE CYCLONE AGENCY Carthage IL 62321 F&I Training, Sales Training, Ph: 217-357-9032 Service Contracts Fax: 217-357-9076 Rob Miller and Chris Hochstein E-mail: tlnewell@frontienet.net 515 N Jefferson Way Ste H FRAZER Indianola, IA 50125 Dealer Management Software Phone: 515-962-0099 or 6196 US Highway 11, PO Box 569 515-962-0100 Canton, NY 13617 Fax: 515-961-8400 Phone: 888-963-5369 Rob: 515-205-5900 cell Fax: 888-963-3366 Chris: 515-205-5800 cell E-mail: cyclone@thecycloneagency.com Website: www.Frazer.com Website: www.thecycloneagency.com Email: info@Frazer.com
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
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: jason@wilsondistributor.com Website: www.wds-usa.com
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: Kevin Rhoads Tuesday 9:30 a.m.
ADESA MINNEAPOLIS
GREATER QUAD CITY AUTO AUCTION
GREATER ROCKFORD AUTO AUCTION
5937 Sandy Hollow Road Rockford, Il 61109 (815) 874-7800 (800) 830-4722 Fax: (815) 874-1325 General Manager: Chad Anderson Wednesday 10 a.m.
KCI AUTO AUCTION
MANHEIM OMAHA
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
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: Steve Robinson Assist. Gen Manager: Korey Grell Thursday 9:30am.
MANHEIM ARENA ILLINOIS
13813 St Charles Rock Road Bridgeton, MO 63044 (314) 739-1300 (800) 533-5414 Fax: (314) 298-3347 General Manager: Jason Blake
18270 Territorial Road Dayton, MN 55369 763-428-8777 763-428-8701 General Manager: Jay Fahrendorff Sale: Tuesday, 10 a.m. www.adesa.com
11909 US HWY 6 Waverly, Nebraska 68462 402-475-5500 www.lincolnautoauction.com Ryan Durst, Vice President Weds. 10:00 a.m.
ADESA SIOUX FALLS
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.
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
MANHEIM NORTHSTAR MINNESOTA
4908 Valley Industrial Blvd. North Shakopee, MN 55379 (952) 445-5544 (888) 445-2277 Fax: (952) 445-6773 General Manager: Scott Maybee 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
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
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: Victor Ferlaino 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: Tom Saldutte 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 ST. LOUIS
CODE OF ETHICS
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We will have a general duty of integrity, honor and fair dealing toward the general public.
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We will comply with all city, county, state and federal laws and shall endeavor to keep ourselves informed of those laws governing our business.
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We will not intentionally injure the business reputation of another member or competitor.
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We will employ truth and accuracy in advertising and selling.
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We will stand behind any guarantee given with the sale of a motor vehicle.
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We will not perform any act, which would bring disrepute to the motor vehicle industry.
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We will expose or halt, where found, any scheme designed to deceive or defraud the automobile buying public and aid in prosecuting those guilty of such acts.
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We will constantly strive to improve business methods to the end that the public will be better served.
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We will encourage the American system of free enterprise.
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
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.
MISSION STATEMENT
The mission of the National Independent Automobile Dealers Association, the only national not-for-profit organization representing the independent motor vehicle industry, is to promote, educate and advance the independent motor vehicle dealer by: •
Accumulating, processing and disseminating information relative to the motor vehicle industry;
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Developing, compiling and providing to the consumer, information which will promote a better understanding of the independent motor vehicle dealers’ place in the economy;
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Providing relevant information to regulatory and lawmaking bodies so that they may have a better understanding of the possible effects of proposed laws, rules and regulations on the consumer and the motor vehicle industry;
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Assisting in the promotion and organization of local, state or regional independent motor vehicle dealer associations; and
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Anticipating, recognizing and responding to current and future issues and needs of the independent motor vehicle industry and the consumer.
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.
HISTORY OF NIADA
NIADA was founded in 1946 to lobby for the repeal of rationing of tires and automotive parts after World War II. The efforts put forward by the organization under the leadership of founding President Charlie Hillard resulted in the successful repealing of those wartime restrictions by the end of 1947.
WWW.IOWAIADA.COM FEBRUARY/MARCH 2019 STREET SMART
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IIADA and NIADA Membership Protect your business through IIADA and NIADA’s legislative monitoring efforts at the state and federal level FREE publications – Street Smart and Used Car Dealer magazine Certified Master Dealer Program through NIADA/ Northwood University Garage insurance; health and other types of insurance Retirement program; prescription drug savings Conventions, trade shows and dealer training meetings and seminars Discounts on credit card processing
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STREET SMART FEBRUARY/MARCH 2019 WWW.IOWAIADA.COM
8% Discount on Auto Owners Insurance for IIADA members Dealer Awards Scholarships for your children/grandchildren and your employee children $2000 in auction fee discounts from Midwest auto auctions – IIADA Auto Auction Coupon Card Lodging, car rental and restaurant discounts NIADA-TV – 24/7 Telephone assistance to IIADA members and updates on rules, law and regulation IIADA Newsletter