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NIADA CERTIFIED PROGRAM GROWS ALSO The CARLAWYERS PLUS Nominate the 2011 IIADA Quality Dealer of the Year!

DALLAS, TEXAS Permit No. 2079

PAID

PRSRT Standard U.S. Postage

V isit us at w w w.iiada.com

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Applications are now being accepted for Indiana’s 2011 Quality Dealer of the Year.

N O M I N AT E A D E A L E R F O R I I A DA’ S 2 011

QUALITY DEALER OF THE YEAR The winner will represent Indiana at the NIADA 2012 Convention in Las Vegas 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. Our 2011 Indiana Quality Dealer of the Year will be named and recognized at our annual golf outing on September 11th.

TO R EQ U EST AN AP P LI CATI O N : E-MAI L: I IADA@COMCAST. N ET OR CALL 80 0.310.3112

Eligibility: D ealers must be nominated by an IIADA member or sponsor. Applications must be submitted by July 1.

>> A P P L I C A T I O N D E A D L I N E : J U L Y 1, 2 011 NEED EASY TRAINING OPPORTUNITIES FOR YOUR DEALERSHIP? Check out the new Education and Training Consortium (ETC) to watch our list grow. The programs listed on this site have met stringent criteria that ensures the program or product:

Responds to dealership needs of today; D emonstrates history of effectiveness; C omes with dealer recommendations; and O ffers professional presentation of goods and services.

Just go to NIADA.com’s Education page and follow the links to ETC or contact Georgia Brown at 800-6823837 for more information.

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INSIDE

MAGAZINECONTENTS

3 Nominate e 2011 IIADA Quality Dealer of the Year! 8 The CARLAWYERS 14 NIADA Certified Program Grows

New education sessions from the Conference of Automotive Remarketing are now running on NIADA.TV

Several educational sessions from the recent Conference of Automotive Remarketing (CAR) are now up and running free of charge on NIADA.TV.

Over 12 sessions from the recent conference will be posted to www.NIADA. TV throughout April and May, so check back often over the next few months. These sessions will be posted in NIADA.TV’s “Remarketing” Channel as well as in the “New Programs” Channel. Get caught up on the latest in “Remarketing” at your leisure 24/7 by visiting to niada.tv.

ADVERTISERSINDEX ADESA .............................................................5 AutoTrader.com.................................. Back Cover Cars.com ................................ Inside Back Cover Chase..............................................................14 Dyer Auto Auction............................................17 Indiana Auto Auction . .......................................3 Kesler-Schaefer Auto Auction..............................9 Manheim.com.......................... Inside Front Cover Manheim Indianapolis .................................... 15 SmartAuction......................................................7 United Acceptance ..........................................13 Western General / Protective........................... 11

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV

BOARD OF DIRECTORS IIADA EXECUTIVE DIRECTOR Debbie Andersen P.O. Box 1393 Crown Point, IN 46308 Phone: (800) 310-3112 Fax: (219) 663-5294 iiada@comcast.net BOARD OF DIRECTORS Dave Allen President Manheim Indianapolis 3110 S Post Road Indianapolis, IN 46239 Phone: (317) 862-8622 Fax: (317) 862-8623 david.allen@manheim.com Fritz Kreutzinger VICE PRESIDENT Fritz Associates P.O. Box 168 Fishers, IN 46038 Phone: (317) 842-2228 Fax: (317) 842-7903 fritzauto@aol.com Tricia Trent SECRETARY Trent Auto Sales 1327 N 6th Street Vincennes, IN 47591 Phone: (812) 882-3772 Fax: (812) 882-1986 ttrent01@yahoo.com Bruce Norton TREASURER Drive1USA 1512 W 96th Avenue, Suite C Crown Point, IN 46307 Phone: (219) 661-1000 Fax: (219) 661-2950 bnorton@drive1usa.com

Jennifer Cotton Dyer Auto Auction P.O. Box 115 Dyer, IN 46113-0115 Phone: (219) 865-2361 Fax: (219) 322-1761 jencotton@comcast.net

H.T.D., Inc. 200 E Main Street Thorntown, IN 46071 Phone: (317) 402-2312 Fax: (765) 436-7222 htdinc@msn.com Tony Del Real Del Real Auto Sales 3857 State Road 38 E Lafayette, IN 47905 Phone: (765) 446-9204 Fax: (765) 446-9143 tdelreal@delrealauto.com

Kim Graham Kim Graham, Inc. 1648 A US 31 S Greenwood, IN 46143 Phone: (317) 888-0100 Fax: (317) 888-8900 vehicles@kimgraham.com

John Stumpf Wolfe’s South Bend Auto Auction 25784 Western Ave. South Bend, IN 46619 Phone: (574) 289-7767 Fax: (574) 288-2731

Ed White White’s Auto Sales 1105 McKinley Avenue Rensselaer, IN 47978 Phone: (219) 866-7553 Fax: (219) 866-7256 edwhite123@att.net Dave Roesch Clay County AMC 123-104 Acadia Indian Head Park, IL 60525 Phone: (812) 446-0037 Fax: (708) 246-9783 davidroesch100@yahoo.com Tony Houk Kesler-Schaefer Auto Auction, Inc. 5333 W. 46h Street Indianapolis, IN 46253 Phone: (317) 297-2300 (800) 959-5722 skesler@ksaa1.com Tyler Trent Trent Auto Sales 1327 N 6th Street Vincennes, IN 47591 Phone: (812) 882-3772 Fax: (812) 882-1986 ttrent01@yahoo.com Ronald P. Povinelli Sr. Circle City Enterprises Inc. 5555 Southeastern Ave. Indianapolis, IN 46203 (317) 351-8970 ccerpp@yahoo.com Harold Drees

Doug Alvey First Class Auto Sales, Inc 695 W 900S Hebron, IN 46341 Phone: (219) 996-2600 Fax: (219) 531-4628 talvey65@yahoo.com Sharon Brennan Fritz in Fishers 8599 E 116th Street Fishers, IN 46038 Phone: (317) 842-2228 Fax: (317) 842-7903 sharonb@fritzinfishers.com Andrew J. Inabnitt Approval Auto Credit Inc. 9825 Huggin Hollow Rd. Martinsville, IN 46151 Phone: (317) 422-8001 Fax: (317) 422-8020 David D. Baldwin II Best Deal Auto Sales, Inc. 1875 SR 8 Auburn, IN 46706 Phone: 260.357.0099 dbthesecond@yahoo.com

NIADA HEADQUARTERS: 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; PHONE 817-6403838. PERIODICALS POSTAGE PAID AT DALLAS, TX AND AT ADDITIONAL OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO NIADA STATE PUBLICATIONS, 2521 BROWN BLVD., ARLINGTON, TX 6006-5203. THE STATEMENTS AND OPINIONS EXPRESSED HEREIN ARE THOSE OF THE INDIVIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF CAR LINES OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NIADA , DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT © 2011 BY NIADA SERVICES, INC.

STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITOR Mike Harbour • mharbour@niada.com PRODUCTION MGR. Jacob Kerns • jacob@niada.com ART/PRODUCTION MGR. Christy Haynes • christy@niada.com PRINTING Nieman Printing

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FACEBOOK 101

THE DEALERS SOCIAL MEDIA BY DUSTI N JANSSO N

How effective is your dealership’s following and interaction with Facebook and other social media? Most dealers create a fan

page, load a photo of their dealership and don’t invest any more time or effort in the page’s content or building the fan base. Although thousands of dollars are spent in a dealer’s monthly advertising budget, the Facebook and social media investment is often overlooked when it could be the best source of customer retention and referral business. Social media can be exceptionally beneficial when you’re dealing with hundreds of millions of people on multiple levels. First, you have the ability to connect with consumers on more of a personal level. Second, you create a one-off relationship where the thought of making a purchase from a dealer utilizing these tools is a much more comfortable engagement. Third, you can effectively continue a relationship with the consumer for years rather than days.

FACEBOOK FACTS

• More than 500 million active users • 5 0 percent of active users log on to Facebook in any given day

• Average user has 200 friends • P eople spend more than 700 billion minutes per month on Facebook

• 2 5 percent of all internet traffic in the U.S. is going through Facebook

• “Like” button found on two millionplus websites (Bing, etc.)

Start by tending to your own backyard… your customers! The horsepower of a fan page is built by your following that will give you the power to deliver your messages more efficiently and methodically. Advertising a sale every weekend by posting it on FB is not the answer.

Remember the customer calendars with the picture of them buying their car from your dealership and those cut-out coupons spread throughout months for service and parts? Social media is the same concept, but on steroids and at a fraction of the cost or effort! You want your customers to “like” your fan page because that shows their hundreds of FB friends they like you. You can take this one step further and take a picture of every customer in their new car and “tag” them in the photo. Once you’ve tagged that person, all their friends will see it, leading to limitless impressions! The immediate network everyone possesses on FB is your highway to customer retention and referral business. Try enticing your customers by offering a referral or bird-dog fee to give them incentive to engage their FB friends into your dealership. Again, social media is not necessarily lead generator, but a vessel to grow your business’s reputation on multiple levels. You may not get a Facebook message saying, “I would like to purchase a car from you,” but you will likely get recommendations from people in your network to buy from your dealership. Proper page setup and execution of your social media is important. Your dealership page should be set up as a fan page on FB, not a personal profile. Information and photo captions on fan pages are indexed for search engines, so make sure your information is complete and appropriately labeled. You also can have your inventory listed with videos, if applicable. Sending mass messages to your fans is only possible with fan pages. The list of fan page do’s and don’ts goes on and on so if you believe you need help with the setup of your social media pages contact DealerNet Solutions for some consulting. Execution of your social media really comes down to this: what reason do you give people to like your page and revisit

it? You need to run on all cylinders (sales, parts, service, customer appreciation, etc.). Make your content fun and attractive to the customer as well as informing and beneficial. Update your fans about the little league baseball team you sponsor, or about a little-known holiday that’s occurring today, then add something about the new offerings your service or detail department has. Prospecting with social media is possible, too. There is technology now available that allows you to enter keywords to search for in a specific geographic radius on the social networks. Every time those words show up in somebody’s shared post or tweet, you see them (e.g. shared post; I am looking at a Toyota Camry) and can often capture their contact info by just “friend-ing” or “following” them. Companies such as DealerNet Solutions have taken the lead in the social media realm by not only providing auto-targeting to capture the millions of consumers, but also by tying in traditional internet inventory posting on their social media thus creating a web around all aspects of internet marketing. Again, driving sales with Internet postings is not enough, but coupling it with social media creates a new generation of sales. All the potential is in the big picture. The way dealers advertise has changed immensely and the days of the instant leads are growing fewer. Your services and reputation are what set you apart from the rest of the competition. Being able to manage millions of potential customers will take you to the top. DUSTI N JANSSO N provides consulting on social media and social media management tools as well as complete dealer inventory marketing and management products. Contact him at 303-232-3435 or dj@ dealernetsolutions.com

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THE CARLAWYERS

BY TOM H U DSO N AN D N I KKI MU N RO

We’ve heard the FTC will soon announce the first stop of its listening tour. It’s supposedly to be Detroit on April 12. Other cities will be on the tour, but the FTC has not settled on the other dates and locations. This month’s CARLAWYER article features developments in Washington and a couple of interesting court decisions. First, the Washington stuff -

On February 17, the Federal Reserve Board announced that has sent letters to approximately 2,500 finance companies urging their participation in its Survey of Finance Companies. The assets and liabilities of finance companies have been surveyed by the Federal Reserve at roughly 5-year intervals since 1955. The data provide a benchmark for the Federal Reserve’s monthly report on the outstanding accounts receivable of finance companies and provide a comprehensive update on these companies’ sources of funds. Although it does not formally assume any regulatory authority until July 21, 2011, the Consumer Financial Protection Bureau has launched its website, www. consumerfinance.gov. The website explains the CFPB’s mission and invites consumers to share their stories and suggestions for the new agency. The website includes a video that explains the causes of the financial crisis and how the CFPB will be a “cop on the beat” to protect consumers going forward. The website includes a link to the CFPB’s blog, as well as its accounts on Facebook, Twitter, and YouTube. Notably, the website also includes Professor Elizabeth Warren’s daily calendar. If you haven’t seen this website yet, you ought to visit it, mark it as a “favorite,” and check it often. We have heard that the FTC will soon announce the first stop of their “listening tour.” We hear that it will be Detroit on April 12th. The tour will visit other cities, but the FTC has not settled on those dates and locations. We understand that they are still considering California and Texas and possibly the D.C. metro area (probably because it’s a fairly inexpensive option for them). You can bet that consumer advocates will show up in droves in an effort to get as much anecdotal evidence of dealer misconduct in front of the FTC as possible. The media will likely attend, too. Industry voices need to be heard, as well, so make plans to attend an “tour stop” near you.

On February 1, the Federal Reserve Board announced that it will not issue final regulations on three proposals to revise the Truth in Lending Act mortgage rules, including a proposal to revise credit protection product disclosures for all types of credit. These regulations would have required a rewrite of every retail installment sales contract and a reprogramming of every dealer computer. Instead, the Board will defer to the Consumer Financial Protection Bureau, which assumes TILA rulemaking authority on July 21, 2011 under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposal to revise credit protection products was issued in September 2010 as part of a proposal to amend the mortgage rules. The proposal would significantly revise disclosures for credit protection products (e.g., credit insurance and debt cancellation products) and would apply to all types of credit. The Dodd-Frank Act transfers TILA rulemaking authority for nearly all creditors from the Board to the CFPB. The Dodd-Frank Act also directs the CFPB to combine disclosure requirements under TILA and the Real Estate Settlement Procedures Act. The Board felt that it would not be in the public interest to proceed with the pending mortgage proposals when the CFPB will have to amend the TILA mortgage rules again. The Board acknowledged that numerous amendments to the mortgage rules with different implementation dates would create compliance difficulties. Three court opinions this month looked like they’d be particularly interesting to dealers. Here they are –

s Arbitration Denied Where Class Action Waiver Would Prevent Plaintiffs from Obtaining Competent Counsel: Payday borrowers filed a class action against their payday lender and its owners for violating Florida law. The defendants moved to compel arbitration, and the plaintiffs opposed the motion, claiming that the class action waiver in the arbitration agreement was unconscionable and/or violated public policy. After hearing evidence that competent counsel would not represent individual plaintiffs on

WE HAVE HEARD THE FTC WILL SOON ANNOUNCE THE FIRST STOP OF ITS LISTENING TOUR. WE’VE ALSO HEARD IT WILL BE IN DETROIT ON APRIL 12. THE TOUR WILL VISIT OTHER CITIES, BUT THE FTC HAS NOT SETTLED ON THOSE DATES AND LOCATIONS. small payday lending claims, the trial court denied the motion to compel arbitration. The Court of Appeals of Florida affirmed, finding that the class action waiver in this case prevented consumers from vindicating their statutory rights “[b]ecause … individual plaintiffs cannot obtain competent counsel without the procedural vehicle of a class action.” The appellate court also certified to the Florida Supreme Court the following question: “When asserted in a claim involving a violation of FDUTPA or another remedial statute, does a class action waiver in an arbitration agreement violate public policy when the trial court is persuaded by evidence that such a waiver prevents consumers from obtaining competent counsel?” See McKenzie v. Betts, 2011 Fla. App. LEXIS 1044 (Fla. App. February 2, 2011).

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s Court Allows Buyer’s Claims to Proceed Against Dealership’s Owner After Spot Delivery Unwound: After a car dealership unwound a spot delivery because the financing source was unable to verify certain representations in connection with the customer’s application and withdrew its preapproved financing, the dealership asked the customer to return the vehicle. When the customer refused, the dealership sued her for replevin and breach of contract. The customer counterclaimed against the owner of the dealership, who allegedly made threatening phone calls to the customer related to the return of the vehicle, asserting a claim for conversion. The trial court dismissed the counterclaim, but the Florida Court of Appeals reversed. The appellate court noted that Florida law allows a counterclaim for conversion where the defendant in a replevin action alleges that the replevin was wrongful, even after the trial court grants a prejudgment writ of replevin. The appellate court found that the customer alleged sufficient facts to support her ownership claim, through a copy of the signed RISC and testimony that the dealership assured her that financing had been approved. The appellate court also

found that the owner wrongfully exercised dominion over the vehicle – inconsistent with the customer’s ownership – by threatening to have the customer arrested if she did not return the vehicle. See Edwards v. Landsman, 2011 Fla. App. LEXIS 45 (Fla. App. January 12, 2011).

s Dealership and RISC Assignee Liable for Deceptive Trade Practices Where “Certified,” “Low-Mileage” Vehicle Contained Switch that Stopped Odometer: A dealership sold car buyers a used vehicle that they were told was a “GM certified,” “low-mileage” vehicle. The vehicle had 36,578 miles on it at the time of sale. After the buyers noticed that the vehicle contained a switch that caused the speedometer and odometer to stop functioning, they sued the dealership and the assignee of their retail installment contract. A jury found in favor of the buyers, and the trial court entered judgment against the defendants for $8,795 and cancelled the purchase agreement. The Court of Appeals of Texas affirmed, rejecting the defendants’ argument that there was insufficient evidence to support the jury’s findings of violations of the Texas

Deceptive Trade Practices and Consumer Protection Act. The appellate court found that there was sufficient evidence for the jury to conclude that the dealership had not inspected the vehicle as it said it had in connection with the GM certification process and, therefore, “engaged in false, misleading, or deceptive acts or practices by representing that the [vehicle] had characteristics that it did not have and that it was of a particular quality when it was not.” See Mac Haik Chevrolet Ltd. v. Diaz, 2011 Tex. App. LEXIS 668 (Tex. App. January 27, 2011). So there you are! Check back with us next month for the latest from your friendly legal beagles. Tom thudson@hudco.com and Nikkinmunro@hudco. com are partners in the law firm of Hudson Cook, LLC. Tom is the author of several books that are available at www.counselorlibrary.com. Tom is also the publisher of Spot Delivery®, a monthly legal newsletter for auto dealers, and the Editor in Chief of CARLAW®, a monthly report of legal developments in all states for the auto finance and leasing industry (not to be confused with the book). Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. Spot Delivery, CARLAW and the books are produced by CounselorLibrary.com LLC. For information, call 410865-5411 or visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2011, all rights reserved. Single publication rights only, to the Association. (2/11). HC# 4843-3933-9272.

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PRODUCT DISCOUNTS FOR NIADA MEMBERS NIADA members can save up to 29 percent on select FedEx® shipping services. For more information or to enroll in this program, visit www.1800members.com/niada or call 800-6362377 (8 a.m.–6 p.m. Eastern, Mon.-Fri.).

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enting a car just became easier and economical with R the new Thrifty Car Rental Discount Program for NIADA members. Visit www.thrifty.com/?iata=00227148&Promo tionCode=NIADA to receive a 5 percent discount off Thrifty’s already low rates anywhere or any size vehicle in the U.S. A 24-hour advance reservation is required and reservations can only be made through this URL or via the link on the NIADA website. Offer is valid for travel until Dec. 31, 2011. AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the United States with over 4,350 stores across 48 states, the District of Columbia and Puerto Rico. NIADA members have access to AutoZone’s “hotshot” delivery program including discounts on more than 750,000 product level SKUs in over 70 distinct product categories. NIADA members have our expert field management team and experienced Territory Sales Managers who every day do whatever it takes to help customers deliver the highest level of quality service, manage their shops efficiently, train their technicians and maximize their profits. For more information, contact AutoZone’s Sales Center at 1-866-727-5317 or sc53@autozone.com

NADA Guide Analyst: Used Auto Prices Continue to Surge from Crisis in Japan Prices of fuel-efficient, used autos – both at auction and at the retail level – continue to feel the ripple effect of the March 11 earthquake and tsunami in Japan.

“The dramatic increase in wholesale vehicle prices indicates that buyers are expecting the supply of small, fuel-efficient cars to dwindle even more because of the crisis in Japan and gas prices that continue to rise,” said Jonathan Banks, executive automotive analyst for the NADA Used Car Guide. “In response to this trend, NADA values for April 2011 reflect large increases in most car segments compared to March 2011,” Banks added. “We’re basing our adjustments on the current market conditions and the expectation that these price increases will continue during the next few months.” From March 11 through March 28, for example, auction prices for two- to five-year-old compact cars, such as the Honda Civic, Toyota Corolla and Ford Focus have increased by about 11 percent compared to February. Auction prices for intermediate-sized cars, such as the Nissan Altima, Honda Accord and Chevrolet Malibu have increased by about 8.5 percent from March 11 through March 28 compared to February. Looking at the entire used-vehicle market from March 11 through March 28 compared to February, Banks said overall auction prices across all vehicle segments have increased by about 5 percent, which is higher than the expected seasonal improvement of 3 percent. The crisis in Japan and the subsequent damage to the Fukushima nuclear plant have caused several auto assembly and parts plants to suspend operations, interrupting the supply of new vehicles and parts for export to the U.S. market. “The impact of the crisis in Japan will have its most significant effect on the global auto industry during the next three months, unless Japan is able to quickly restore consistent power,” Banks said. “The bottom line is that price increases—for used cars in demand—are here to stay for the short term.”

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Looking to increase revenue with your service department?

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TSP is sold exclusively in the service department. We provide your service department with a

“turn-key” solution. Call us today to schedule your appointment for a Protective

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We Listen • We Care • We Have Solutions Vehicle Service Contracts I GAP Coverage I Credit Insurance Lifetime Engine Warranty I Limited Warranty I Dealer Participation Programs F&I Training I Advanced F&I Technology To install TSP in your dealership, contact Protective’s Indiana representative, Rob Connor.

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CONTACT AT ONCE

Partner for Dealer Chat Availability AutoTrader.com and Contact At Once recently partnered to deliver chat functionality to dealers who list their vehicles for sale on the site. The dealer live chat feature is a part of AutoTrader.com’s Connections Bundle, which is intended to provide dealers with multiple avenues to build and foster relationships with shoppers online. The Connections Bundle also includes dealer ratings, social media connections and Sitelink Advanced. Officials believe the integration of chat capability through chat software provider www.autodealerchat.com can enable dealers to instantly connect with prospects via text-based conversations online and boost the bundle’s overall value. After an extensive search and testing process, AutoTrader.com explained it selected Contact At Once to power the dealer live chat solution because of Contact At Once’s position as a leader in the space and ability to deliver a bestin-class chat experience for both dealers and consumers. Officials highlighted the chat window can display the name and photo of actual dealership employees, a feature meant to improve the

consumer experience. They believe this function has been shown to increase the number of chat inquiries dealerships receive. AutoTrader.com pointed out the dealer live chat solution is also presence aware, so consumers will only be prompted to initiate a chat session if a representative is available, ensuring consumers are never left hanging. Additionally, the Contact At Once dealer live chat solution can enable dealers to conduct chats via their iPads, smartphones or other mobile devices. Dealers can be responsive to consumer inquiries even when they’re not at their desks, according to the companies. According to the recent Automotive Buyer Influence Study conducted by Polk and AutoTrader.com, consumers spend 18 to 19 hours shopping for vehicles before they make a purchase with about 60 percent of that time spent online. However, the study found consumers have shown a reluctance to pick up the phone to call dealers during their search and have long been dissatisfied with e-mail response times, leading 70 percent to just walk into a dealership without first making contact.

“Faster than e-mail and more convenient than a phone call, online chat enables consumers to get instant answers to their questions while enabling dealers to begin creating a relationship with shoppers before they show up on the lot,” said AutoTrader.com president and chief executive officer Chip Perry. “We are pleased with the performance of the Contact At Once dealer live chat platform and excited about the value it has already brought both dealers and consumers.” Early value tests conducted by AutoTrader. com showed dealers who added dealer live chat to their listings experienced an average lift in shopper interaction of about 20 percent. “AutoTrader.com’s embrace affirms the mainstream status of dealer live chat software and signals a new reality — that dealers not using chat are missing sales opportunities,” said John Hanger, president and CEO of Contact At Once. “We are honored to have been selected and look forward to working with AutoTrader. com to connect dealers and consumers.” Dealers who are interested in learning more about the Connections Bundle should talk to their AutoTrader.com advertising consultants.

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CNW

Dealers Are Finding Inventory Short on Cars

In what could be stemming from gas-price anxiety, dealers’ used-vehicle inventory on hand appears to be changing. And the shift that CNW Research spotted could possibly end up being “troubling” for dealers. What, exactly, did CNW see? Basically, CNW noticed instead of there being a shortage of trucks within dealership inventories, dealers are now finding that their lots are short on cars. Overall, used-vehicle days’ supply in March was estimated to be 48.27 days. CNW noted used vehicles are available, but suggested this possible shift in the mix of cars and trucks may be troubling for dealers. In recent years, CNW explained, truck demand has been stronger than car demand. “Beginning in February, though, the trend changed,” said Art Spinella, president of CNW. “Of inventory on hand, cars now represent about 92 percent of days’ supply while trucks have climbed to over 110 percent. “If this were a one-month snapshot, it could be written off as merely an anomaly,” he added. “And it still may not be reflective of a long-term trend. But it is worth noting.”

He went on to suggest a likely impetus for the change is concerns about gas prices may finally have hit home and sent people to the car side. “While this will have little impact on casual sales, it will definitely affect franchised and independent dealerships who now have to beware of overloading lots with trucks or being forced to lower truck prices to facilitate a sale,” he said. CNW Projects Robust March With March used-vehicle sales projected to show as high as a 6-percent year-over-year spike, the first quarter of 2011 is likely to signal some significant progress for the used side of the market. Pushed by looser credit, CNW is projecting used sales in March will show anywhere from a 5.5-percent to a 6-percent improvement from the 2.39 million used sales in March 2010. “That would make the opening quarter of 2011 the best since 2008 – 6.336 million versus 6.63 million three years ago,” Spinella noted.

CNW also looked at sales per outlet data for independent stores in February and discovered this average increased by double digits. Specifically, the company found independents moved an average of 17.6 vehicles per outlet during February, which marks a 15.7-percent hike from the 15.2 unitper-store average from a year ago. “In fact, because of the decline in the economy in 2008 and 2009, the independent dealer body shrunk dramatically,” Spinella said. “With an economic uptick and the availability of inventory, there are more independent outlets today. Outlook: a better profit picture for independents.” Web Trends Another area of the used market CNW examined was used-vehicle sales in the online arena. The company found the sales rate of Internet vehicles came in at 26.9 percent during February. A year ago, it was at 23.9 percent. “The 12.7-percent boost represents a near 90,000 unit increase,” Spinella said. “Total inventory offered on the Internet is four percentage points larger than last year.”

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N IADA/NAC CERTI FI ED PRO G R A M

GROWS WITH NEW PA R T N E R S H I P S, E N H A N C E M E N T S

BY C H RISTI NA SC H RAN K

To give independent dealers the ability to compete with franchise dealers offering manufacturer certified pre-owned vehicles, NIADA and NAC (formerly National Auto Care) last year created NIADA Certified. The program

includes comprehensive 12-month, 12,000-mile warranty coverage with no deductible, 24-hour roadside assistance, towing, rental and more. In November 2010, the program underwent significant changes to incorporate more value for dealers and even higher satisfaction for customers.

NIADA Certified added additional team members experienced in the used vehicle market to ensure processes were put in place that would support dealer certified success. Today, the program is supported by an active training calendar with contribution from strategic partners and best practice review. “Certified used autos has become its own listing category. Between new and used, the NIADA Certified program levels the playing field and allows independent dealers the opportunity to compete for those consumers looking for certified inventory,” said Greg Levi, NIADA Certified strategic relationship director.

“The program allows independent automobile dealers the opportunity to create their own competitive program.” Subject to a comprehensive inspection, NIADA Certified vehicles include a 12-month, 12,000-mile limited warranty with a zero dollar deductible. Dealers will now be supported through ongoing training and best practices review by the NIADA Certified team. Better yet, even with the increased warranty coverage, the same eligibility guidelines for NIADA Certified qualify, including most 10-yearold or newer vehicle models with less than 100,000 miles. “The independent market needed an answer to the manufacturers’ certification program and the NIADA certification program lives up to the promise,” Levi said. The positive consumer experience is assured by repairs that can be made at any licensed repair facility and with a program that’s supported by 25 years of administration experience. After a vehicle has passed an inspection that meets the program’s certification standards, it’s then registered with NIADA Certified through our unique online Express Lane™. Following registration, the dealer has access to a free copy of an AutoCheck® vehicle history report, the ability to print a compliant buyer’s guide, print a clean and professional inspection checklist which can be used in either the showroom or online, plus the capability to export certified inventory to third party portals including Auttr Motors, eBay® Motors, and EVERYCARLISTED. com®. These exports provide the ability to advertise the vehicle as NIADA Certified and offer it with a limited warranty that begins when the vehicle is retailed to the consumer. These many new partnerships with third party portals, especially its newly announced affiliation with eBay® Motors, allow the dealer’s NIADA Certified inventory to be discovered with a search for certified inventory alongside manufacturer results.

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NIADA Certified is the first independent certification program to be recognized with the manufacturer programs. And, because our system is Web-based, all of this – and much more – is accessible to dealers in just a few simple clicks. The program coverage enhancements have allowed us the opportunity to grow and add to our strategic partnerships, provide above-and-beyond support and service and give dealers a way to offer consistent value to consumers and solidify relationships with lenders. NIADA Certified most recently partnered with eBay® Motors as one of our program’s inventory exports. Each program dealership will have its NIADA Certified inventory exported to eBay® Motors classifieds, providing a free listing to be displayed to all within a 200-mile radius of each dealer. Also, NIADA Certified recently announced a partnership with OPENLANE, an online auction company which now offers program listings to dealers on Open Auction. This new listing acknowledgement gives the NIADA Certified brand additional creditability and provides an option to those dealers who want to wholesale inspected vehicles which meet the program’s certification standards. “These many new third party online portal partnerships are vital to the success of our NIADA Certified program,” said Michael Linn, CEO of NIADA. “The recognition and powerful marketing arm these online portals provide is invaluable to all of the dealers who participate in the program. It’s like free advertising, and research proves over and over again that online listings that promote certified vehicles sell faster and for a larger profit.” The NIADA Certified team also has focused efforts on building partnerships with lenders in order to create incentives and discounts on funding for NIADA Certified vehicles. Recently, NIADA Certified announced Columbus Finance, Inc., a lender serving the central Ohio market, agreed to give dealers an additional 10-percent advance (up to $1,000) and will offer customers one percentage point off program rates when purchasing a NIADA Certified vehicle. The team also is working with additional lenders to put together similar partnerships and lender opportunities to dealers across the country. “As our NIADA Certified program continues to grow, so will the lender partnerships associated with it, at the local, statewide and national levels,” said Linn. “Over the past four years, NIADA has been highly successful at bringing lenders and

dealers together, and the NIADA Certified program is another great opportunity to expand on great relationships like the one locally that was just announced in Ohio.” The NIADA Certified team is excited about the momentum that’s been building during the first quarter of 2011. Today, there are 120 dealers participating in the program in 30 states around the country and the number is growing weekly. Those dealers are enjoying the benefits of the NIADA Certified team’s support before, during and after initiation into the program. Now, after signing on to participate in the free program, dealers attend an online implementation webinar hosted by our NIADA Certified team. The webinar is interactive and allows our team to review the program, tools, best practices and, most importantly, how to get the program started within a dealership. The training is available for both the dealer and their personnel every week. Once implementation training has been completed, marketing materials are sent to the dealership and our training team follows up to ensure the dealer has all the information and tools needed to succeed. Our team then consistently communicates with each dealer on items such as program

enhancements and additional training opportunities and continues to review best practices. NAC is the administrator of the NIADA Certified program. The warranties are backed by an A-rated insurance carrier with more than $26 billion in assets, a figure that gives dealers with the peace of mind provided only by a fully insured program. There is zero dealer liability for repairs that fall under the warranty period. All dealers on the program receive a contractual liability insurance policy issued directly from the insurance company. For more information on NIADA Certified, call 800-840-2567 or visit www. niadacertified.com. Don’t forget to visit often, as the site is constantly updated with new and exciting information, announcements and program enhancements. NIADA Certified also can be followed on Facebook, Auttr and Twitter. CH RISTI NA SCH RAN K

is the vice president of marketing for NAC and a 15-year veteran of the auto industry. NAC has been developing innovative, value-based aftermarket products and competitive service agreement programs for automotive, power sports, and recreational vehicles for almost 30 years.

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NEW NIADA MOBILE SERVICE

FOR SMART PHONES PUTS KE Y APPR AISAL DATA , MEMBER NE WS AT YOUR FINGERTIPS BY SCOTT LI L JA , VI CE PRESI D ENT, N IADA M EM BER SERVI CES

This spring, NIADA members will have access to a new mobile application tool from NIADA that will enhance their productivity and profitability and stay up to date on the latest developments impacting their dealership. This new tool, NIADA Mobile Service, is accessible by Apple iPhones, Android-type phones and other select models. It puts at members’ fingertips a wealth of critical data to help them make better vehicle appraisal, purchase and retail sales decisions. Now, members can access their subscriptions to appraisal services from NADA Guidebook, Kelley Blue Book, Black Book, and Galves Auto Price List. They also will access run lists from participating auctions. Furthermore, NIADA Mobile Service links them by smart phone to select content on NIADA.com. Here’s how NIADA Mobile Service will streamline your operations: On the lot or on line: More quickly appraise a vehicle, for customers at your lot or those selling online through sites such as Craigslist. Access your guide book vehicle appraisal service or a market report – or your subscription vehicle history report service – on the specific unit. Have at your fingertips the right current facts to pencil your best deal. Buying from auction: You can access the auction’s pre-sale run list while at the auction or sitting in your office. You may view the inventory then, once you land on a unit you like, press on the appropriate smart phone icons to pop up auction-supplied information about the unit, its appraisal data, and a vehicle history report. Continual and timely updates ensure you have the freshest available data. During a moment of downtime: Activity suddenly slows its hectic pace for a few minutes, so you use the time to access the NIADA website. There you check some key association information or watch a NIADA.TV video you’d put off. The service also alerts you to urgent messages that might require immediate action. Designed for NIADA

NIADA Mobile Service was developed by leading automotive mobile applications developer and NIADA technology partner and advisor GigglePop.com Inc. The company is importing NIADA web content and coupling it with existing GigglePop software mobile applications. GigglePop’s technology is known

for speed, accuracy and, of course, mobility. Its fat-finger icon or button designs are a special value when searching for key information when working in distracting environments like auctions. These large icon designs help users easily find and stroke with their fingers the right icons or buttons they want, reducing keystroking errors. As NIADA’s technical partner, GigglePop will continue to support Mobile Service and be an industry liaison for NIADA Mobile. Accessible subscription guidebook data and features through Mobile Service include:

Customizable software settings All guidebook regions or states include s VIN look-up decoder s Stores booked vehicles, recall in an instant s Enter personal notes on booked vehicles s Lists and sorts appraised vehicles s Re-values saved vehicles with each new update s Automatically updates wirelessly s Barcode scanning capability s Seamless integration with all GigglePop valuation tools, including vehicle history report subscription services and auction run lists s SmartBid Market Report s Large easy-to-read fonts s s

NIADA Mobile Service also makes your day at the auction simple, easy and productive. Accessible auction run list data from participating auctions includes: s

s s

s s s

s s

Search by lane or run number to view auction vehicle data Barcode scanning capability Continual auction run list updates even while auction is in progress View those late arrivals Save target vehicle data for future reference Enter personal notes and bid pricing on specific vehicle records Lists and sorts saved target vehicles Seamless integration with all GigglePop valuation tools, including Guide Books, Vehicle History and participating Market Reports

In addition to providing mobile access to these key services, NIADA Mobile Service also connects members to select NIADA content on the NIADA site. Wherever you are, you can stay on top of moving legislative decisions, regulatory compliance issues, new NIADA member services and educational programs.

Especially in today’s market, still recovering from the recession, this mobile service will help members operate more profitably. It puts at hand the insight needed to buy and sell more profitably and keep abreast of industry news and events influencing the used vehicle retail market. The more competitive dealers today are clearly adapting to our changing industry by using mobile technologies and solutions to help them better manage their used vehicle operations, inventories, vehicle sourcing and retail sales processes.

DELIVERS TANGIBLE MEMBER BENEFITS Members’ use of the NIADA Mobile Service tool will help them:

I dentify quality, retail-ready inventory: Mobile accessibility to auction inventory as well as vehicle valuation guides can help dealers meet challenges presented by the economic fallout from the last three years’ depressed vehicle sales, drop in leasing activity and reduced stream of fleet rentals into the remarketing stream. s Source the right-priced vehicle for the customer: Reduced levels of wholesale units flowing into remarketing channels have made it more difficult to source and match the right vehicle to customers’ ability to pay. NIADA Mobile Service helps dealers locate those vehicles at an acquisition price the customer can afford and finance, while providing enhanced profit for the dealer. s

Often spread thin by needing to be in the office, on the lot and at the auction seemingly simultaneously, the independent used auto dealer must use time and resources wisely. By adding this new Mobile Service tool to the NIADA portfolio of member services, the association helps its members access critical association information and related vehicle valuation, history reports and auction run list services right from their smart phone. As market needs continue to change and dealers seek new ways to remain competitive, like purchasing inventory outside their local market areas and using web-based competitive vehicle analysis and pricing tools, GigglePop and NIADA will continue to enhance Mobile Service to help dealers make the most informed and profitable business decisions.

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F EDER AL ADVOCAT ES LOBBY ING REP OR T

NIADA’s Whann Participates in First FTC Roundtable I have just returned from the FTC roundtable entitled “The Road Ahead: Selling and Financing Motor Vehicles” held at the Wayne State University School of Law in Detroit, Mich. Choosing a law school as the venue for the event was perfect! So many of the discussions centered around complicated fact patterns, the application of overlapping federal and state laws and variations and inconsistencies from state to state, you felt as though you were sitting in a law school classroom. The program consisted of six panel roundtable discussions on the following: Understanding the Motor Vehicle Sale and Credit Transaction, From Both Prime and Subprime Perspectives; Interest Rates, Dealer Reserves and Markups; Payment and Locator Devices and Consumer Privacy; Spot Delivery; Contract Add-Ons and Vehicle Title Problems and Dealer Bankruptcies. The panels consisted of five members each (one had four) and had a mix of regulatory, industry and consumer representatives. They were moderated by six different FTC staff members, all of whom I have met on my trips to Capitol Hill (and have had the opportunity to discuss the issues being considered in the roundtables) and they did an excellent job facilitating discussion. While all other industry members were limited to participating on a single panel, I was asked to participate on two (I volunteered for all six). I took it as a compliment, but you decide for yourself. The goal for the day was to “explore consumer protection issues pertaining to motor vehicle sales and leasing” and to determine “what consumer protection issues, if any, exist that could be addressed through a possible rulemaking or other initiative.” All in all, I would say the day was quite productive. However, with the individual roundtables lasting only 30 to 90 minutes, it was difficult at times to get into depth on many of the subjects. Consider the challenge in even being able to explain something as basic as what is a motor vehicle dealer and how do they operate? Franchised or independent? Big or small? Metro or rural? Threeparty paper financing or two-party paper financing, with a little Buy Here-Pay Here thrown in for good measure? And we are only beginning to scratch the surface! As background, the Dodd–Frank Wall Street Reform and Consumer Protection Act is a federal statute in the U.S. that was signed into law by President Barack Obama on July 21, 2010. The act is categorized into sixteen titles and from the and, from the estimates I have seen, requires regulators create 243 rules, conduct 67 studies, and issue 22 periodic reports. The stated aim of the legislation is: “To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end ‘too big to fail,’ to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes.” So what exactly does the act do? This description from Wikipedia is one of the best I have seen: “The Act changes the existing regulatory structure, such as creating a host of new agencies (while merging and removing others) in an effort to streamline the regulatory process, increasing oversight of specific institutions regarded as a systemic risk,

amending the Federal Reserve Act, promoting transparency and additional changes. The Act establishes rigorous standards and supervision to protect the economy and American consumers, investors and businesses, ends taxpayer funded bailouts of financial institutions, provides for an advanced warning system on the stability of the economy, creates rules on executive compensation and corporate governance, and eliminates the loopholes that led to the economic recession. The new agencies are either granted explicit power over a particular aspect of financial regulation, or that power is transferred from an existing agency. All of the new agencies, and some existing ones that are not currently required to do so, are also compelled to report to Congress on an annual (or biannual) basis, to present the results of current plans and to explain future goals. Important new agencies created include Financial Stability Oversight Council, the Office of Financial Research, and the Bureau of Consumer Financial Protection.” It should be noted while section 1029(d) of DoddFrank confers on the FTC authority to prescribe rules under the Administrative Procedures Act with respect to unfair or deceptive acts or practices by motor vehicle dealers it does not, however, expand or otherwise address the authority the FTC already possesses under the Federal Trade Commission Act to initiate enforcement action against unlawful behavior. Given the fact there appears to exist a somewhat

unbalanced and hostile view amongst some in the regulatory community towards dealer-assisted financing, one of the most important tasks as an industry will be to assist the FTC and the consuming public in better understanding the mechanics of dealer-assisted financing. We must also collectively establish a facts-based record upon which the question of whether to engage in a UDAP rulemaking may be considered. Over the past 27 years (the last 16 as outside general counsel to NIADA) I have had the opportunity to work with federal regulatory agencies, including the FTC, to promote independent dealers’ compliance with federal statutes and regulations and to educate consumers about the car buying and financing processes. Never in this time period has there been an issue as important to independent dealers and the future of our industry as this. It will change the landscape of how cars are sold and financed for years to come. We will continue to be actively involved in the process as things progress and I look forward to having the opportunity to discuss the issues in greater detail at the NIADA Convention & Expo in June. Until then, you can stay current with the latest developments by following me at www.facebook. com/keithwhann and twitter.com/keithwhann. See you in Las Vegas! FEDERAL ADVOCATES is NIADA’s governmental advocacy partner. To read past lobbying reports, visit www.niada.com/ legislative_and_legal.php

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LEVERAGING LENDER REL ATIONSHIPS IN CHALLENGING TIMES Given market factors, dealers are wise to deepen their understanding of lender programs to help determine the right inventory to have on the lot. Here are suggestions for navigating challenges and keeping deals profitable. BY URI SZAPI RO Since the credit crisis began a couple of years ago, it’s no secret used vehicle inventory has been tight. The Cash for

Clunkers program only compounded the problem. Now, the tragic and devastating disaster in Japan has disrupted the automotive supply chain, causing a ripple effect not only from the suspension of new car production, but also from a lack of component output. With further strain in the market, our industry has to rethink the new timeframe to reach equilibrium. This following indications of a peak in the index: wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) declined 1 percent in February after rising in each of the previous five months, according to the Manheim Used Vehicle Value Index. The trend has been prices at the auction have strengthened because of the decrease in new deliveries. Many franchise dealers have built up used inventories in anticipation of a new vehicle shortage that will trickle down to a used vehicle shortage. As a result of these factors, used prices are likely to remain high, making strategic inventory selection even more important for dealers. Given market factors, dealers are wise to deepen their understanding of lender programs to help determine the right inventory to have on the lot. Here are suggestions for navigating challenges and keeping deals profitable.

Relationship, relationship, relationship

The dealer-lender relationship cannot be undervalued, especially when the market is tight. If you haven’t already developed a strong relationship with your lenders, now is the time. View it as a partnership. Build an honest and professional relationship with underwriting. Talk to your credit analyst. Leverage the knowledge of your

account manager or sales rep to gain more insight into the program. Ask for training when needed, so staff can be well educated on making the process as smooth as possible. A good dialogue with your lenders goes a long way to avoiding funding problems that can cost time and money, leaving you with unsold units.

Start at the source

Dealers going to the auction to source inventory will face higher prices, but can prepare by carefully reviewing available lending programs prior to making purchases. A strong understanding of program guidelines is critical to avoiding the costly mistake of buying the wrong inventory. Some examples of this preparation include: Know which pricing guides are used. NADA, Kelley Blue Book or Black Book? Pay attention to trends in value, too. For example, NADA recently announced its used auto values for April would reflect large increases in most vehicle segments compared to March, based on the impact of the crisis in Japan. At the time of the announcement, auction prices for two-tofive-year-old compact cars in March had increased by about 11 percent compared to February. There is little question price increases are to be expected in the shortterm. Understand the guidelines used to structure deals. Which adds are allowed and which are not? Some lenders will allow leather, sunroof or wheels. Others will not. Knowing which adds are permitted can mean the difference between making $1,000 or $2,000 on a deal. Don’t lose out on value. The last thing dealers want in a strained market is a short deal. Auction receipts. Lenders may be more open to a slightly bigger advance or other adjustments when you have proof of higher auction prices. Ask if an original auction

receipt could be worth a few hundred dollars more in advance. Mileage and term flexibility. Some lenders may be more flexible or generous with mile allowances and/or terms due to the tightness of the market. The assumption is vehicles are on the road longer now because of reduced inventory. However, these adjustments may not be advertised or published with the program guidelines. Here is where that strong working relationship comes into play. Ask about such adjustments. For example, whereas before the lender wanted a limit of 60,000 miles for a 60-month loan, now 65,000 might be acceptable. Or lenders might be willing to add six months to the term on premium imports as a way of helping the dealer. Staying in touch with your lender can give you the confidence of knowing you have some leeway going to auction. Having a close relationship with lenders is strategic advantage, especially during a tough period in the market. Dealers are wise to communicate with lenders more often, be receptive and pay attention to the program details and guidelines. Don’t shy away from asking for what you need to understand and master the program. Strengthening your lender relationships may even help you stay on profit targets and solve some of the main challenges you face in today’s market. What’s more, the effort you put in now will pay off beyond the bump in the road today, and into the future. URI SZAPIRO is vice president of originations at AFS Acceptance, LLC, an established, full-service auto finance company serving franchise and independent car dealers’ subprime financing needs since 1996. For more information, visit www. afsacceptance.com or call 877223-3254.

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IIADA ASSOCIATE MEMBERS The following businesses provide quality products and services to the automotive industry: Affordable Computer Systems Ivan Dale www.acsds.com acsi@digicove.com 800-488-9992

CN Design & Marketing Todd Rimer 2701 Enterprise Drive, Suite 113 Anderson, IN 46013 todd@cndesing-marketing.com 765-356-4650

Ashton Agency, Inc. Bond Dept. Cheri White 4100 Metric Drive, Suite 100 Winter Park, FL 32792 katiesaft@ashtonagency.com 800-545-4600 407-678-2468 (fax)

Diamond Warranty Corp. Jim Limongelli 9 N Main Street Pittston, PA 18640 800.384.5023

Assurant Solutions, Inc. Todd Calhoun todd.calhoun@assurant.com 317-250-1287 Auction Access Robinson Adams Insurance Dealer Bonds Tom Adams Debbie Thompson 800-239-1327 Automotive Capital Resources, LLC Aron Epstein automotivecapitalresources.com 877-228-8685 Automotive Credit Corp. Tony Stallworth 26261 Evergreen Road, Ste. 300 Southfield, MI 48076 tony@automotivecredit.com 888-268-1400 Auto Services Co., Inc. Susan Williams Clayton Morgan 800-442-7116 Bowden & Wood Certified Public Accountants Mark A. Schaeffer, CPA mschaeffer@bowdenandwood.com 502-583-0262 Briggs Insurance Agency Tim Briggs 4000 W. Lincoln Hwy. Merrillville, IN 46410 tbriggs@briggsagency.com 219-769-4840 Cars.com 175 W. Jackson Blvd., 8th Floor Chicago, IL 60604 dealers.cars.com 800-298-1460 CAR Financial Services, Inc. Thomas Lloyd www.carfinancial.com thomas.lloyd@carfinancial.com 859-630-2606 Central State of Omaha Gary White, Indiana Regional Manager gwhite@cso.com 800-826-6587, ext. 3523 317-289-1369 Chase Custom Finance Don Williams and Mike Smith 317-523-4273 Clear Choice Merchant Services – Reno, NV Laurie Gruen, Corporate Analyst, ext. 6881 laurene.g@myclearchoice.com Lorraine Onesian, VP Business Development, ext. 6880 lorraine.o@myclearchoice.com www.myclearchoice.com 866-779-4787

Donn Wray Attorney at Law Stewart & Irwin, P.C. 251 E. Ohio St., Suite 100 Indianapolis, IN 46204 dwray@silegal.com 317-639-5454 Drive1USA Bruce Norton 1512 W. 96th Ave., Suite C Crown Point, IN 46307 bnorton@drive1usa.com 219-661-1000 Envirotest Systems Jennifer Kharchaf 1171 Breuckman Drive, Suite B Crown Point, IN 46307 indiana@esph.com 888.240.1684 ETA Consulting, LLC Floor Plans, Sub-prime financing, VSC, GAP Bill Ecklor www.etaconsultingonline.com 260-415-9119 First Data/EMPS Credit Cards, Check Warranty, ATM Juergen Hinz www.firstdata.com juergen.hinz@firstdata.com 260-489-3496 Frazer Computing, Inc. Michael Frazer www.frazercomputing.com 888-963-5369 Guardian Warranty Co. Carmie Fruits, Indiana Representative cfruits@gu ardian-warranty.com 317-374-6271 Sales Support P. O. Box 68 Avoca, PA 18641-0068 800-482-7357, ext. 767 Hoosier Business & Family Insurance Mike Lee and Monte Schneider montestar@sbcglobal.net 877-826-0079 Keystone Insurers Group For All Your Insurance Needs Melanie Carr mcarr@keystoneinsgrp.com 888-892-5860 Lincolnway Insurance Services Dealer Bonds & Garage Keepers Gregg St. Germain 140 E. Lincoln Hwy. Schererville, IN 46375 st5some@aol.com 219-865-2225 Nationwide Acceptance Sub-Prime Financing www.nac-loans.com Bonnie Herden 773-777-7600, ext. 1295

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Penn Warranty Corp. Jude Tuma Michael Roe 1081 Hanover St. Wilkes Barre, PA 18706 www.pennwarranty.com michael.roe@pennwarrantycorp.com 800-356-9441 Plante & Moran, PLLC Certified Public Accountants Auto Dealership Industry Group Jim Egan jim.egan@plantemoran.com www.plantemoran.com 248-223-3257 Preferred Warranties, Inc. Gregg Reidenbach 260-341-6675 Guy Loeffler 313-283-0114 info@warrantys.com 800-548-1121 Scott Insurance Group Garage, Bonds, Health John Scott john@scottinsurancegroup.com 317-445-5555 Sentry Insurance Randy Dombrowski randy.dombrowski@sentry.com 715-346-7272 Mike Donovan mike.donovan@sentry.com 615-210-6344 Shirer Insurance Services Auto Owners-Dealer Bonds 400 N. Main St. Crown Point, IN 46307 Troy and Mari Shirer shirer@ameritech.net 219-663-7274 Smart Auction Jeff Kubicki www.smartauction.biz jeffrey.kubicki@smartauction.biz 812-455-7967 Tri Vin Inc. Mike Audette 115 Pohesanut Drive Suite 201 Groton, CT 06340 maudette@trivininc.com 860.448.3177 Vehicle Acceptance Corp. Ted Martin 317-844-2599

NEW & RENEWING MEMBERS The following members have joined* or renewed their membership since our last issue of Car Lines. Bell’s Auto Sales* Bloomington

Greg Morris Evansville

Silver Star Motors* Kyle Lyons Clarksville

Hill Auto Sales Scott Hill Hope

Stanfield Auto Sales* Greenfield

Indy Auto Source Craig Miller Carmel

Andrews Auto Sales Dan Francis Evansville Best Deal Auto Sales David Baldwin Fort Wayne

J.D. Byrider Systems James DeVoe Jr. Carmel Jim Butner Auto & RV Inc. Clarksville

Best Deal Auto Sales David Baldwin Auburn

Johnson Car Co. Clint Johnson Rensselaer

Big Daddy’s Auto Sales David Bohall Indianapolis

K & J Auto Sales Ken Brophey Indianapolis

CarMax Auto Superstores Michelle Halasz

Schultz Auto Sales Bob Schultz DeMotte

Chase Auto Finance Don Williams Indianapolis Diamond Warranty Corp. James Limongelli Pittston Drive 1 USA Bruce Norton Crown Point

Schumacher Motor Sales Jeff Schumacher Indianapolis Smart Auction Jeff Kubicki Indianapolis

Gebhardt Motor Sales Tim Gebhardt Osceola Greg’s Auto Sales

Thank you for your memberships in Indiana’s trade association for INDEPENDENT DEALERS

WORKS24 Mark Hersch 3508 French Park Drive, Suite 1 Edmond, OK 73034 mhersch@work24.com 440.832.0445 Zurich Insurance Co. 800-728-6049 IIADA Associate Membership is available to automotive related businesses. Please call 800-310-3112 for more information on Associate Memberships or see our Associate Membership Application in this issue.

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Do the math...It Pays to Belong MEMBERSHIP APPLICATION

For an annual membership investment of only $265, which includes an NIADA membership, you get a $2,600 Auto Auction Coupon Book and a whole lot more! Dealership Name ______________________________________ Payment by: Check Visa MasterCard Credit Card Number: ______________________________ Dealer Plate# __________________________________________ Expiration Date: __________________________________ Signature: ________________________________________ Mail Address __________________________________________ By completing this form, I am consenting to and giving IIADA/ Ship Address __________________________________________ NIADA Inc., its affiliates and subsidiaries, my permission to Ship Address contact me and provide information to me at the County ________________________________________________ mailing and email addresses, telephone and fax number(s) I have provided. City/State/Zip _________________________________________ Phone ____________________Fax _________________________ E-mail _________________________________________________ Owners (Please Print) _________________________________

Note: 25% of dues are non-deductible FOR IIADA USE ONLY  Dues Paid ________________________________________  Coupon Book_______________ District _______________ ______________________________________________________  Packet Sent _______________________________________

Recommended By _____________________________________

PLEASE MAIL OR FAX MEMBERSHIP APPLICATION TO: IIADA • PO Box 1393 • Crown Point, IN 46308 Phone: (800)310-3112 • Fax: (219)663-5294 iiada@comcast.net

IIADA MEMBERSHIP BENEFITS Joining IIADA entitles you to the following benefits. Don’t pass up the opportunity to receive the best treatment by joining our association.

• $2,600 Auto Auction Coupon Book

• Prescription Drug Card

• Low cost Liability and Lot Coverage Insurance

• National “Skip” Program

• Medical Insurance • Car Lines publication • Updates on changes in Law and Regulations • Annual Conventions • Dealer Bond as required by The Indiana Secretary of State

• National Independent Automobile Dealers Association Magazine • National Independent Automobile Dealers Association Scholarship Fund • Services of Registered Lobbyists on the National and State Levels • Used Car Dealer Magazine

• Assistance with internal business problems and customer relations

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2011

IIADA MEMBER auction coupons

SAVE $100 at each of the following auctions! – 4 Buy or Sell Fee Coupons @ $25 each –

abc Detroit/Toledo

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Manheim Arena Illinois

ADESA Indianapolis Auto Auction

Manheim Cincinnati

ADESA Lansing Auto Auction ADESA Northern Ohio ADESA Queen City CarMax Auctions Clark County Auto Auction Dyer Auto Auction

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For A Total Savings Of $2,600! IN_0511.indd 21

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CARFA X L AUNCHES ADVANTAGE PROGRAM FOR DEALERS NEW PROGRAM DESIGNED TO INFLUENCE SHOPPER’S DEALER CHOICE, ENHANCE CONFIDENCE

Carfax is giving dealers a powerful new way to attract customers using the Carfax brand. The Carfax Advantage™ Dealer Program distinguishes Carfax-subscribing dealers that are committed to transparency. Through the program, partici-

pating dealers can set themselves apart from their competition. Used car shoppers know they can buy with greater confidence when shopping at any Carfax Advantage dealership. “Being a Carfax Advantage dealer with unlimited access to Carfax Reports, Carfax has quickly become one of our most valued partners,” said Adam Warmka, general sales manager at Dick Brantmeier Ford Lincoln Kia in Wisconsin. “We use them when we’re buying cars to make sure everything checks out and our salespeople are constantly asking for printed copies so they can show our customers. Every car we list online has a Carfax Report. Carfax is in our advertising, out in front of our dealership and on every car in our inventory. We use them every day.” According to recent research, more than 80% of used car shoppers surveyed said they would prefer to shop at a Carfax Advantage dealership. Carfax Advantage dealers have another way of building confidence with used car buyers and help customers make faster buying decisions. “Our participation in the Carfax Advantage program has helped us build credibility with customers,” said Dan Moltz, general manager at Car Center of Waldorf, Md. “We show the Carfax up front on every car. Customers appreciate it and the result is additional sales and higher customer satisfaction. Also, by pulling Carfax Reports prior to buying inventory, we shorten our turn, which we all know increases retained earnings. The more you turn, the more you earn.” As part of the program, participating dealers have unlimited access to Carfax Vehicle History Reports and Carfax Auction Quick Check, plus a Consumer Information Pack for every car being retailed. Carfax also provides enhanced point-of-sale materials for free, including new items that highlight Carfax Advantage dealerships. “Transparency greatly influences consumers when making their dealer choice,” said Bill Eager, vice president of Carfax. “Thousands of consumers we tested said that the Carfax Advantage program means trust and confidence. They know immediately that a Carfax Advantage dealer will show them the Carfax. As a result, participating dealers enhance their reputation and sell more cars faster.”

PRE-GAME WARM-UP:

REVIEW FINANCING PRACTICES AHEAD OF CFPB AND FTC RULES It’s the beginning of the baseball season. Experts are poring over team rosters, game schedules and statistics to predict the season’s outcome. The fun and fear is the

element of the unknown. The same is true of the new Consumer Financial Protection Bureau. As it takes shape, we are checking its roster of leaders and their speeches and public announcements to predict first-year activities. The fear, not so much the fun, is the element of the unknown. One unknown is how the bureau and the Federal Trade Commission will define an unfair, deceptive, or abusive act or practice in motor vehicle financing. The Dodd-Frank Act authorizes them to make and enforce rules to prevent such acts and practices in consumer financial products and services. Many states already have similar statutes, but each state has its own unique definitions and case law. Some states have developed a large body of case law defining the standard, but the Dodd-Frank Act will add a unique layer of federal law, regulations and court decisions. State attorneys general also can sue to enforce federal law, so we may see case law develop based on unique state decisions to enforce. In addition, state laws that provide greater consumer protection will continue to be enforceable. The FTC recently announced it’s conducting public roundtables in three to five cities around the U.S. to discuss consumer protection issues in connection with motor vehicle sales and leasing. It published a list of discussion topics indicating the acts and practices under the most intense scrutiny. The list includes yo-yo financing, finance company incentives to dealers resulting in more expensive credit, interest rate mark-ups and upfront charges of which the consumer is unaware, negative equity financing, selling and financing add-on products and services and use of GPS location devices. Details may be found at ftc.gov. Information from the roundtable meetings will likely shape the FTC’s view on whether the practices discussed are in any way unfair, deceptive, or abusive acts or practices. The meetings will likely be a game changer. Whether or not you participate in the meetings, you should review your dealership’s practices in these areas. The legal standard for review will develop over time. For now, I suggest the common person standard: Would you be comfortable having your practices displayed on the Jumbotron at the ball game? BY CH I P ZYVOLOSKI Chip Zyvoloski is senior attorney for indirect lending at Wolters Kluwer Financial Services. For more information, visit www.wolterskluwerfs.com/indirect.

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