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L E G I S L AT I V E ISSUE
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INDUSTRY NEWS
NATIONAL INVENTORS HALL OF FAME MUSEUM EXHIBIT HITS THE ROAD
CUSTOM SPLITMODEL FORD MUSTANG
A custom-built, split-model Ford Mustang journeyed through 13 states to reach its final destination – the Consumer Electronics Show. The National Inventors Hall of Fame (NIHF) and Ford Motor Co. unveiled the one-of-akind 1965 and 2015 Ford Mustang split-model car in 2016 as part of the Intellectual Property Power exhibition at the NIHF Museum. The split-model car hit the road this year with a stop at CES in Las Vegas in January. The vehicle was on loan to the United States Patent and Trademark Office. The interactive exhibit showcased the differences in features between the two models, how the design has evolved to fit changing consumer tastes and technologies, and how intellectual property affects the design of an automobile. “Our split-model Ford Mustang is taking a road trip to CES,” NIHF CEO Michael J. Oister said. “As one of our most popular exhibits in the NIHF Museum at the USPTO, we are excited to have it displayed at the largest and most influential marketplace of technological innovation.” The split-model car was the brainchild of NIHF, USPTO and Ford, demonstrating 50 years of automotive design and technology protected by patents and trademarks. The 2015 Mustang has 36 patents unique to its production year. The 1965 model used more than 100 of Ford’s existing patents in addition to production year-specific patents. The Ford Mustang has been in production continuously for more than 50 years and has become an icon of the American muscle car. The split-model car’s journey can be followed on the NIHF social media accounts using #FordMustang. For more information regarding NIHF Museum exhibits visit invent. org/museum. The National Inventors Hall of Fame is the premier nonprofit organization in America dedicated to recognizing inventors and invention, promoting creativity, and advancing the spirit of innovation and entrepreneurship. The National Inventors Hall of Fame Museum is a Smithsonian Affiliate. For more information, visit www.invent.org. WWW.IIADA.COM FEBRUARY 2019 CAR LINES 3
FEBRUARY
2019
INSIDE
05.......................................Question of the Month 06.................................................Doc Fee Danger 09..............................Quality Dealer Nominations 10..........................................................CarLawyer 12.........................................IIHS Top Safety Picks 14.................................................Legislative Fund
ADVERTISERS INDEX
Greater Mishawaka Auto Auction...................... 5 Kesler Schaefer AA............................................. 9 Manheim...................................................... 3 & 11 NextGear Capital ..........................................12-13 vAuto................................................... Back Cover
BOARD MEMBERS
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 of IIADA, please call 219.661.0287 128 S. East Street # 1393 Crown Point, IN 46308 iiada@comcast.net • www.iiada.com
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. Car Lines is published 10 times per year 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 Car Lines 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
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Executive Director Debbie Andersen 128 S. East Street # 1393 Crown Point, IN 46308 219.661.0287 iiada@comcast.net
President
Andy Zay Zay Leasing & Rentals, Inc. 4957 N. Broadway Huntington, IN 46750 Phone: 260.356.1588 azay@sbcglobal.net
Chairman of the Board Legislative Chairman Fritz Kreutzinger Fritz Associates P.O. Box 168 Fishers, IN 46038 317.842.2228 Fax: 317.842.7900 fritzauto@aol.com
Vice President
David D. Baldwin II Best Deal Auto Sales, Inc. 1875 SR 8 Auburn, IN 46706 260.357.0099 Fax: 260.357.0090 dbthesecond@yahoo.com
Treasurer
Bruce Norton Drive1 USA, Inc. 1512 W. 96th Avenue Suite C Crown Point, IN 46307 Phone: 219.670.0542 Bnorton@drive1usa.com
Secretary
Sharon Brennan Fritz in Fishers 8599 E. 116th Street Fishers, IN 46038 Phone: 317.842.2228 sharonb@fritzinfishers.com Tricia Trent Trent Auto Sales 1327 N 6th St. Vincennes, IN 47591 812.882.3772 Fax: 812.882.1986 ttrent01@yahoo.com David Lewis Lewis Motor Sales 1125 Sagamore Parkway S. Lafayette, IN 47905 765.448.4006 Jennifer Cotton Dyer Auto Auction 219.865.2361 Fax: 219.322.1761 bcotton@dyerauction.com Ed White White’s Auto Sales 1105 McKinley Ave. Rensselaer, IN 47978 219.866.7553 Fax: 219.866.7256 edwhite123@att.net John Stumpf Greater Kalamazoo Auto Auction P. O. Box 697 Schoolcraft, MI 49087 269.679.5021 jstumpf@kalamazooaa.com
Tony Houk Kesler-Schaefer Auto Auction, Inc. 5333 W. 46th Street Indianapolis, IN 46253 317.297.2300 Fax: 317.297.6236 skesler@ksaa1.com Tyler Trent Trent Auto Sales 1327 N 6th St. Vincennes, IN 47591 812.882.3772 Fax: 812.882.1986 ttrent01@yahoo.com Travis Baldwin Best Deal Auto Sales 2526 Scotswolde Drive Fort Wayne, IN 46808 Phone: 260.483.7999 travisbaldwin@ bestdealautosalesonline.com Taryn Sanchez White’s Auto Sales LLC 1105 N. McKinley Avenue Rensselaer, IN 47978 Phone: 219.866.7553 twhite1517@att.net Tony Del Real Del Real Automotive Group 1002 Walnut Avenue Frankfort, IN 46041 Phone: 765.446.9204 tdelreal@delrealauto.com
ASSOCIATION NEWS
QUESTION OF THE MONTH CHARGING SALES TAX TO BUSINESS SCRAPPING VEHICLE QUESTION OF THE MONTH
Does a used car dealer need to charge sales tax to a business that is going to scrap the vehicle when the business is not a dealer? The answer is no. Form St-108E, Certificate of Gross Retail or Use Tax Exemption for the Purchase of a Motor Vehicle or Watercraft, is completed with the purchaser’s Retail Merchant Certificate number, Indiana Taxpayer Identification Number, or Federal Identification Number. (Per Dana at IDR 11/15/18)
SAFETY WATCH
TOYOTA ISSUES FOLLOW-UP RECALL
65,000 Defective Takata Airbag Inflators
Toyota recently issued a follow-up recall to replace defective Takata airbag inflators –again – on 65,000 vehicles. This time, however, Toyota said it will replace the inflators with new units produced by another third-party supplier. The recall affects certain 2003-2005 model year Corolla compact sedans, 2002-2005 model year Sequoia SUVs, 2003-2005 model year Tundra pickup trucks, and 2002-2005 model year Lexus SC 430 convertibles. Toyota said the vehicles were previously involved in a separate recall where the automaker installed new Takata inflators as a remedy. However, the replacement inflators may still feature a safety defect due to propellant degradation after prolonged exposure to humidity and heat. Like other cases in the long-running Takata airbag recall fiasco, the inflator could rupture, and in the event of a crash, the airbag may shoot shrapnel, which increases the risk of serious injury or death. The new non-Takata inflator will be installed free of charge. WWW.IIADA.COM FEBRUARY 2019 CAR LINES 5
REGULATORY MATTERS |
By Donn H. Wray
A V O I D
T H E
P E R I L S
DOC FEE O
ver the past year I have spoken several times around the state on dangers lurking in the assessment of doc fees. This article presents a written narrative of my cautionary presentation. Any dealer who has not read, and does not understand, I. C. 9-32-13-7 – the documentary fee statute – is in peril. Here it is, with emphasis added: “It is an unfair practice for a dealer to require a purchaser of a motor vehicle as a condition of the sale and delivery of the motor vehicle to pay a document preparation fee, unless the fee: (1) reflects expenses actually incurred for the preparation of documents; (2) was affirmatively disclosed by the dealer; (3) was negotiated by the dealer and the purchaser; (4) is not for the preparation, handling, or service of documents that are incidental to the extension of credit; and (5) is set forth on a buyer’s order or similar agreement by a means other than preprinting.”
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“Preparation” of Documents This statute was passed in the 1980s, and thus pre-dates the era of information security and the requirement to securely destroy documents. In dealings I have had with the Attorney General Consumer Protection Division, although that office is sympathetic to the costs dealers must bear to securely store and destroy documents, the AG notes the statute does not allow credit for that – it only allows reimbursement of “expenses actually incurred for the preparation of documents.” So costs incidental to storage and destruction cannot be used to support the reasonableness of a documentary fee. “Disclosed” and “Negotiated” The fee must be disclosed on a vehicle order agreement as a separate item. It must be “negotiated,” which means it is perfectly acceptable, even desirable, to have some deals showing a lesser or zero amount for documentary fees. Such is evidence of negotiability. In some states the law is directly
opposite this, which has been a source of confusion. Do not be misled by people who think the same doc fee must be charged on every deal: That may be true in some other states, but not Indiana. I have been told many times that when confronted with a customer objecting to the documentary fee, some dealers reduce the price of the car. It is a far better practice to adjust the documentary fee to reflect the results of the negotiation pertaining to it. Caveat: One danger to such negotiability is that if a pattern emerges where doc fees are reduced or eliminated more frequently on cash deals than finance deals, a regulator or plaintiff’s lawyer can make the argument the documentary fee is a hidden cost of credit and thus a violation of the Truth in Lending Act. This being the case, it is extremely helpful to compromise the doc fee, through negotiation, on credit deals. Doing so will establish favorable statistics within your file showing that the doc fee is not a hidden cost of credit.
DANGER Not for Costs Related to “Extension of Credit” The doc fee statute itself prohibits attributing any portion of the fee to “the preparation, handling, or service of documents that are incidental to the extension of credit.” This prohibition simply makes clear the point I made above, which is that no part of the doc fee can be attributable to preparation of financing documents because that would be a TILA violation.
Not “Preprinted” A final provision that shows this statute’s age is the rule that the fee be “set forth on a buyer’s order or similar agreement by a means other than pre-printing.” When this statute was passed, precomputer, vehicle order agreements acquired from stationery providers would sometimes have the doc fee amount preprinted as part of the typesetting of the form. The attorney general took the position that was inconsistent with “negotiability.” The good news is the attorney general
does not prohibit the fee being printed on the form as part of a computer program.
What Can be Charged as a “Reasonable Fee?” How much of a fee can be charged? Today, the attorney general takes the position that a doc fee less than $200 is presumed reasonable, i.e., “reflects expenses actually incurred for the preparation of documents.” If more than $200 is charged, and a complaint is made, you will be required to justify from the first dollar all costs. If a dealership has any volume of retail sales at all, it is extremely difficult – perhaps even impossible – to justify more than $200. And whatever cannot be justified must be refunded to consumers going back two years. I have had cases with refunds in the six figure range in instances where dealers have become, shall we say, “adventuresome.” The advice I consistently give is that a stated documentary fee should never be more than $200. I further advise that the
sum total of the doc fee plus a convenience fee (if you charge one) should not exceed $200. The $15 title fee paid to the state should be separately itemized. If you are charging more than $200 for a doc fee, you are at risk not only of an enforcement action from the attorney general, but also to a class action by a private plaintiff’s lawyer. And in those cases, the attorney fees sought are usually much greater than what the attorney general seeks. Stay Safe! Thanks to the doc fee statute, which lays out ground rules, coupled with the attorney general’s stated position as to a presumptively reasonable charge ($200), the risk of charging documentary fees can be substantially reduced. Ignoring the rules and guidelines suggested here makes charging documentary fees a dangerous game indeed. Don’t court danger: Stay on the safe side. Donn H. Wray is part of law firm Stoll Keenon Ogden PLLC in Indianapolis. He can be reached at (317) 608-4369 or Donn.Wray@skofirm.com.
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SALES MATTERS |
By John Chapin
HAVE YOUR BEST SALE$ YEAR IN 2019
TWO
IMPORTANT
TIPS
Warning: if you’re looking for a shortcut or easy way to your best year, you probably won’t like this article. What I have to say is not what the majority of the population wants to hear. That said, it is what you need to hear if you want to have your best year in 2019. Here are two tips. Work Harder This is the tip most people won’t like. Here’s the thing about hard work: the harder you work by making more sales calls, the more your sales will increase. Want to increase sales by 20 percent? Simple – increase your sales calls by 20 percent. If everything stays the same – your contact rate, your closing ratio, the quality of prospects you’re calling on, your sales skills, etc. – and you simply call on more people, you will automatically increase sales by the percentage of increase in the number of calls you make. So whatever percentage increase it will take to have your best year, simply increase your calls by that number and you’re guaranteed the result. The most successful people on the planet, in any walk of life, are the hardest workers. No exceptions. The top athletes, top musicians, top actors and actresses and top ditch diggers all work harder than everyone else. Are there exceptions to the rule? Yes, and they are just that – the exceptions. Follow the rule, not the exception. The exception is the person who got rich winning the lottery. You don’t want to rely on those odds. Stop looking for the shortcut – the easy, carefree, painless way. In the long term, those are the longer ways. They are more expensive mentally, physically and financially, and ultimately the shortcuts are a waste of time. Follow the tried-and-true path and work hard. It is also a good idea to increase the effectiveness of your sales calls. If you get better at all aspects of selling – getting to
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SUCCESS
the decision maker, getting their attention, differentiating yourself, finding their pain, creating a solution, building rapport and long-term relationships, etc. – now an increase in sales calls will grow sales exponentially. Even if you only get better in one or two areas, your sales will increase at a higher rate than if you simply increase the number of calls. Be Disciplined The most important activities of a salesperson are prospecting, presenting and closing. The most important thing you do during the sales day is talk to people who can give you business. It takes lots of discipline to stick to these activities during prime calling hours. You’ve got to make hitting your numbers every day your number one priority. This means you’ve got to guard your time closely against your biggest enemy – distractions. Distractions come in many forms – phone calls from friends and family, text messages, email chimes, social media, chasing a fly around your office for five minutes, paperwork you should be doing off-hours, and other urgent/unimportant tasks that steal your attention during the day. While most of these distractions simply pop up, many of us are also guilty of intentionally placing distractions smack in the middle of our day. Don’t do that. Don’t schedule doctor appointments, dentist appointments, appointments with your financial planner or CPA, or anything else at these times. Obviously there are times when you can’t avoid that, but you want to stick to this rule as much as possible. Also, again, don’t do paperwork and other non-time sensitive activities during prime calling time. You also want to look for other time wasters. I had one insurance agent who was going to every Chamber of Commerce, BNI, and networking event for years, all while getting very little business. When we got her to go out and knock on 50 new prospect doors a week
and follow up with phone calls, her efforts over the next 12 months produced more than 40 times the results she got from attending all those events. It’s simple – she was no longer hoping the same people she saw every week for three years, who were at the networking events primarily to “get” as opposed to “give” business, would have a new lead for her. She was now proactive with in-person visits and phone calls to prospects. Was it harder to knock on the doors and ring the phones and face rejection from strangers? Yes. And as your parents told you growing up, the most difficult thing to do is usually the right thing to do. In-person visits and phone calls are also still the fastest ways I know to grow a business quickly. That said, if you still want to go to the networking events you can, but only after you’ve gotten all the prospects you need from phone calls and visits. In addition to the above, put up two signs – one in your office and one in your car – that say, “Am I working on my most important sales activities right now?” If it’s 5 a.m. and the answer is “no,” that’s fine. If it’s 11 a.m. on a Wednesday, and most of your prospects are on a standard work schedule, that’s an issue. Finally, part of being more disciplined is also delegating activities and finding faster, better, more effective ways to do current tasks. This will free up more time for more sales activities. Ultimately there is only one question you must answer to determine whether you’ll have your best year in 2019: Are you willing to put in the time, effort and energy, and endure the pain, to do the things that must be done, when they must be done, to make it happen? Yes? Great! Then get out of your own way and go make 2019 your best year ever! John Chapin is a sales and motivational speaker and trainer. He has over 31 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www. completeselling.com or email johnchapin@ completeselling.com.
| ASSOCIATION NEWS |
NOMINATE A DEALER FOR IIADA’S 2019 QUALITY DEALER OF THE YEAR Application Deadline: July 1, 2019
Applications are now being accepted for Indiana’s 2019 Quality Dealer of the Year. The winner will represent Indiana at the NIADA 2020 Convention & Expo and compete for the coveted NIADA Quality Dealer of the Year award. The public recognition and prestige associated with this award will produce many benefits for your dealership.
Eligibility: Dealers must be nominated by an IIADA member or sponsor. To request an application, email iiada@comcast.net or call 219.661.0287.
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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.
MARKET WATCH
2019
IIHS TOP SAFETY PICKS MORE MODELS FOR SAFETY
Nearly five dozen 2019 models meet stricter criteria to qualify for a 2019 Top Safety Pick award from the Insurance Institute for Highway Safety. The 30 first-tier “plus” award winners earn the highest rating for passenger-side protection in a small overlap front crash and have good-rated available headlights, while the 27 winners of the second-tier award qualify with an acceptable or higher rating in the newest IIHS crash test and the nighttime headlight evaluation. All 57 vehicles in this group earn good ratings in the institute’s five other crashworthiness evaluations and have an available automatic emergency braking system that rates advanced or superior for front crash prevention. IIHS now requires a good rating in the passenger-side small overlap front test to earn a Top Safety Pick versus the acceptable or good rating required for the 2018 award. This marks the sixth time IIHS has raised the bar to earn the Top Safety Pick+ award since introducing it in the 2013 model year to recognize vehicles that offer a superior level of safety. The Top Safety Pick award launched in the
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RANK
2006 model year to help consumers identify vehicles with the highest ratings. Over the years, IIHS has added to and strengthened criteria for both awards to encourage manufacturers to speed up safety advances. “We challenged manufacturers to provide the best possible protection in a range of crash scenarios and equip vehicles with an automatic emergency braking system to avoid crashes, as well as offer headlights that give drivers confidence when traveling at night,” IIHS president David Harkey said. “Fifteen brands hit all the marks to give consumers shopping for a new car a wide variety of 2019 models to consider.” Models that earn Top Safety Pick+ or Top Safety Pick are the best vehicle choices for safety within size categories. Size and weight influence occupant protection in serious crashes. Larger, heavier vehicles generally afford more protection than smaller, lighter ones. Thus, a small car that’s a Top Safety Pick+ or Top Safety Pick doesn’t necessarily afford more protection than a bigger car that doesn’t earn the award. For the complete listing of vehicles, visit www. iihs.org/iihs.
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.
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ASSOCIATION NEWS
L E G I S L A T I V E
W
e at IIADA want to express our sincere appreciation for our 2018 legislative donors. Donations to our Legislative Fund
have helped us pass legislation that extended the time for delivery of title to 31 days from 21 days and extended temporary tags to 45 days.
THANK YOU
D O N O R S
We work continuously to protect your business with a lobbyist at the Indiana statehouse and representation at the federal level.
SENATOR’S CIRCLE CURTIS MOTOR SALES MIKE HAMILTON OMNI AUTO SALES ROBERT WALCZAK
REPRESENTATIVE’S CIRCLE GAETA AUTO SALES EVA GAETA
OTHER BEST DEAL AUTO SALES DAVE BALDWIN
VALLEY MOTORS RICK JONES
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L E G I S L A T I O N A F F E C T S Y O U R B U S I N E S S ’ F U T U R E THE INDIANA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION MUST MAINTAIN A HIGH PROFILE WITH MEMBERS OF THE INDIANA GENERAL ASSEMBLY. YOU NEED THE IIADA LEGISLATIVE FUND AND WE NEED YOUR SUPPORT. YOUR CONTRIBUTION TO THE IIADA LEGISLATIVE FUND IS AN INVESTMENT IN OUR INDUSTRY’S FUTURE.
I I A D A L E G I S L A T I V E F U N D C O N T R I B U T I O N YOU NEED THE INDIANA LEGISLATIVE FUND.
LEVEL OF PARTICIPATION:
Name______________________________Company____________________________
____________$50
City_________________________________State________Zip___________________
____________$100
Credit Card (circle one):
___________$250 ___________Other
Address_______________________________________________________________
MasterCard VISA
Credit Card No.__________________________________________________________ Name on Card_______________________________________Expiration Date_________ Signature________________________________Amount_________________________
Fax credit card authorization to 219.663.5294.
Make Check Payable to IIADA and return to:
Indiana Independent Automobile Dealers Assoc. • P. O. Box 1393 • Crown Point, IN 46308 WWW.IIADA.COM FEBRUARY 2019 CAR LINES 15
MEMBER APPLICATION
The IIADA Has the Independent Auto Dealer Covered! Phone: (219) 661-0287 • Fax: (219)663-5294 iiada@comcast.net
JOIN TODAY
This is our personal invitation to you to join the State and National Independent Automobile Dealers Professional Associations It is important to me to be recognized as a professional! Enclosed are my annual dues of $295 to make sure that my business has all the advantages IIADA/NIADA Inc., provides to put me at the forefront of my profession. By completing this form, I agree to abide by the Code of Ethics. Also, I am consenting to and giving IIADA/NIADA Inc., its affiliates and subsidiaries, my permission to (until I give written notice to discontinue) contact me and provide information to me at the mailing and email addresses, telephone and fax number(s) I have provided.
For an annual membership investment of only $295, which includes an NIADA membership, you get 2019 member auction coupons for a total savings of over $3,000!
GENERAL INFORMATION
Dealership Name _______________________________________ Dealer Lic#_________________ Mail Address ______________________________________________________________________ County __________________________________________________________________________ City/State/Zip_____________________________________________________________________
Phone _____________________________________________ Fax__________________________ E-mail____________________________________________________________________________ Website___________________________________________________________________________ Owners (Please Print) ______________________________________________________________ Recommended By _________________________________________________________________ o Check o Visa o MasterCard
Credit Card Number: _____________________________________ Expiration Date: _________
Signature: ______________________________________________________________________ Please include your email address, phone and fax numbers so that we can easily communicate with you. Membership dues are $295 for 12 months from the date you join, and your National lADA dues are included. Please send application and check or credit card information to: IIADA, PO Box 1393, Crown Point, IN 46308
Note: 25% of dues are non-deductible
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MEMBER BENEFITS
IIADA • VIP MEMBERS ONLY • EXCLUSIVE
For $295 You Get Membership 2019 Member Auction in Both IIADA and NIADA Coupons for a Total Plus All of the Following Benefits and Even Savings of $3,000! MoreThat Are Not Listed!
Programs for Extra Profit
• Dealer Bond at Member Rates • Dealer Insurance • Health Insurance • Forms • Financing • Software • IIADA Help Desk • National Dealer Network Skip Tracing Contacts • College Scholarships • Prescription Drug Card • National Dealer Network
Publications
• Car Lines Publication • Used Car Dealer Magazine • Federally Required Safeguards Policy Document • Federally Required Red Flags Rules Policy Documents • IRS Audit Technique Guide For the Independent Used Car Dealer • Current Industry Information • Legislative Alerts • NIADA Annual Market Analysis
Professional Development
• Certified Master Dealer Program • Free Access to NIADA.tv Training at Your Business • Access to IndependentDealer.com where dealers go for answers • NIADA Membership and Window Decal • IIADA “Symbol of Integrity” Logo and Window Decal • NIADA Annual Convention and Expo • Code of Ethics
ADE of Indianapolis ADESA Cincinnati/Dayton ADESA Indianapolis ADESA Lansing America’s Auto Auction Toledo America’s Auto Auction West Michigan Clark County Auto Auction Dyer Auto Auction Fort Wayne Truck and Auto Auction Greater Kalamazoo Auto Auction Greater Mishawaka Auto Auction Greater Rockford Auto Auction Indiana Auto Auction, Inc. Indianapolis Car Exchange Kesler-Schaefer Wholesale Auto Auction Manheim Cincinnati Manheim Indianapolis Manheim Louisville Manheim Ohio Wolfe’s Auto Auctions-Evansville/ South Bend/Terre Haute
AUCT I O N COUPO N BOOK PRI N T I N G S PO N SORED BY: AFC . ASC WARRANTY
Representation
• State Lobby and Consultant Services • State Legislative and Regulatory Tracking and Reporting • Federal Lobby and Consulting Services • Federal Legal, Legislative and Regulatory Tracking and Reporting • Indiana Department of Revenue Liaison • Indiana Dealer Services Liaison • Indiana Bureau of Motor Vehicles Liaison
SUPPORT IIADA!
We are your voice in Indianapolis.
WWW.IIADA.COM FEBRUARY 2019 CAR LINES 17
ASSOCIATE MEMBERS
IIADA Associate Membership is available to automotive related businesses. Please call 219-661-0287 for more information on Associate Memberships.
700 Credit
Ann Carson 202.422.2351 acarson@700credit.com www.700credit.com
ACV Auctions
Dennis Carey 260.350.2617 dcarey@acvauctions.com
Advantage One Tire Network Brandon Schlarb 317.809.6781 bschlarb@a1tnindy.com
AFC
Stephanie Freeman 317.343.5020 Stephanie.freeman autofinance.com
Alpha Omega Group Brad LeBlanc 513.317.9861 brad@aogllc.com
ASC Warranty Co. Inc. Susan Williams/ Clayton Morgan 800-442-7116
Ashton Agency Inc.
Drive1 USA, Inc.
Bruce Norton 1512 W. 96th Ave., Ste. C Crown Point, IN 46307 Phone: 219.670.0542 Email: Bnorton@drive1usa.com
Driven Brands
Clark Ellis 312.515.5664 clark.ellis@drivenbrands.com
Encompass Dealer Services Terry Schwer 765.969.1692 terry@encompassdealers.com
Envirotest Titling & Registration Kevin Lewis 1445 Brookville Way Suite G Indianapolis, IN 46239 317.322.0020 www.etrindiana.com
Envirotest Titling & Registration Kevin Lewis 1111 S. Green River Rd. Suite 100 Evansville, IN 47715 812.909.0116 www.etrindiana.com
Envirotest Titling & Registration
Dealer Insurance, Bonds Kathy Alexander 407.678.5900 kalexander@ashtonagency.com
Jennifer Kharchaf 1171 Breuckman Dr., Ste. B Crown Point, IN 46307 219.661.8220 www.etrindiana.com
AutoZone
Frazer Computing Inc.
Gerry Sutter gerald.sutter@autozone.com 440.263.3389
Coastal Credit LLC
Austin McFarland 317.727.2778 amcfarland@coastalcreditllc.com
6196 US Hwy 11, P O Box 569 Canton, NY 13617 888.963.5369 www.frazer.com
Freedom Warranty
John Skelton 423.207.1333 www.freedomwarranty.com
Insurance ProfessionalsDealer Specialists Steffy Hatoway Jan Hatoway Office: 317.861.4411 Cell: 317.750.3032
Insurance Professionals of New Palestine
Pull A Part of Indianapolis LLC
Integrity Warranty, LLC
Lester Dean PO Box 9700 Wyoming, Michigan 49509 616.438.3591 Fax: 616-245-5978 lesterd@reliableautofinance.com
Paul Mulready 423.355.8353 pmulready@integritywarranty.com www.integritywarranty.com
Lincolnway Insurance Services Greg St. Germain 336 E. Lincoln Hwy. Schererville, IN 46375 219-865-2227 gregg@lincolnwayinsurance.com
Maxey & Associates Insurance
Frank Hackett 301.696.0400 naaa@naaa.com
Nationwide Cassel LLC
Mark Plunkett mplunkitt@nationwideloans.com 317.441.1637
NextGear Capital
Donn H. Wray
HBK CPAs & Consultant
Legal Counsel Stoll Keenon Ogden 201 N. Illinois Street, Ste. 1225 Indianapolis, IN 46204 317.608.4369
Rex Collins 330.758.8613 rcollins@hbkcpa.com
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Jane Saxon, CPA 3925 River Crossing Pkwy. Indianapolis, IN 46240 317.472.2183 jsaxon@somersetcpas.com
Strategic Consulting
NVP Warranty
P O Box 7900 Wilkes-Barre, PA 18773 317.374.6271 www.gwcwarranty.com
Somerset CPAs
National Auto Auction Association
GWC Warranty
Safeguard Printing Jennifer Blair 800.875.9908 jblair@safeguardprinting.com
Reliable Auto Finance
SPIREON
Deluxe Corporation
Guardian Finance Company
Mark Cohen 2505 Producers Lane Indianapolis, IN 46218 Phone: 678.327.5584
Health Insurance Specialists Pam Mix 219.763.2401 maxey.insurance@comcast.net
Tom Lloyd 513.515.5442 tlloyd@guardianfinancecompany.com
Chris Walsh 812.988.8300 www.consolidated autoservices.com
Matt Reece Phone: 864.237.6090 Matt.Reece@pfs-corp.net Nat Rieder Nat.Rieder@pfs-corp.net Phone: 614.935.9808
Network Benefits of Mid America 35 W. Main St. P.O. Box 467 New Palestine, IN 46163 Office: 317-861-4411 800-688-7988 Cell: 317-750-3032
Lori Kahre 1320 City Center Drive Suite 100 Carmel, IN 46033 Phone: 317.571.3845 www.nextgearcapital.com
Consolidated Automotive Services
Professional Financial Services
Art Mastyugin 888.270.5835 art@nvpwarranty.com
Preferred Warranties, Inc.
Gregg Reidenbach/Guy Loeffler 800-548-1121 info@warrantys.com www.warrantys.com
Dave Boekholder 800.557.1449 dboekholder@spireon.com Jeff Bond 317.363.6458 jeff@scspro.net
T & J Dealer Services
Justin Stuckey 260.403.2410 justin@dealerservices.com
Teipen, Selanders, Poynter & Ayres, P.C.
Certified Public Accountants Barnett Sapurstein, CPA 317.598.6700 bsapurstein@teipencpa.com
Turner Acceptance
Jonathon Turner Phone: 773.290.5007 turneracceptance.com