OK_0511_O by NIADA

Oklahoma Independent Automobile Dealers Association

DEALERSâ&#x20AC;&#x2122; RESOURCE May 2011

Are FTC Roundtable Meetings

Going To Change Your Business? In This Issue Consumer Transportation Costs Page 4 FTC Motor Vehicle Roundtables Page 6 Summer Sale Solutions Page 10

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OIADA, P.O. Box 6905, Moore, OK 73153

Visit Us Online At www.e-oiada.com OK_0511.indd 1

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2717 E Main St  Grand Prairie, TX 5333 W Kiest Blvd  Dallas, TX Remarketing Services of America 5/3, 5/17 & 5/31 Chrysler Finanical, Nissan/Infiniti, Wholesale Inc., DT Credit Corp. & Sonic Automotive Group Every Tuesday Manheim Select Lane every Wednesday

972-339-4100

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12101 Trinity Blvd  Fort Worth, TX Ford Motor Credit, AutoNation, Texas Auto Brokers Every Thursday

817-399-4000

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INSIDE

MAGAZINECONTENTS 4 Consumer Transportation Costs 6 FTC Motor Vehicle Roundtables 10 Summer Sale Solutions

ADVERTISERSINDEX 71B Auto Auction..........................................13 ADESA.........................................................17 Albright Insurance.......................................... 7 AutoTrader.com.............................................. 5 Cars.com.......................................................11 Chase ........................................................... 8 Dealer’s Auto Auction of OKC ....... Back Cover Jordan Insurance ........................................... 9 Loftis Wetzel Insurance..................................21 Manheim North Texas........... Inside Front Cover Manheim.com........................Inside Back Cover SmartAuction ...............................................15 United Acceptance ...................................... 23 Western General / Protective.........................19

OIADAOFFICE 813 NORTHWEST 34TH MOORE, OK 73160

EMAIL: odell.morgan@sbcglobal.net ROSE & ODELL MORGAN, Executive Directors

AMBER SNOOK, Administrative Assistant

JACKIE GARNER, Office Manager

JARED MORGAN, Electronics/ Software Technician

OIADA BOARD OF DIRECTORS PRESIDENT Chris Goad Regal Motors 3515 N. May Oklahoma City, OK 73112 405-917-5800 managerokc@regalcars.com

CHAIRMAN OF THE BOARD John Easttom Auto Mart of Elk City P.O. Box 981 Elk City, OK 73648 580-225-1100 automart@cableone.net

SECRETARY/ TREASURER Bruce Beam Dealers Auto Auction of OKC 1028 S. Portland Oklahoma City, OK 73147 405-947-2886 www.daaokc.com

LYNNA KAY, Programmer

VICE PRESIDENTS

STEVE MORGAN, Consultant

John T. Longacre, IV Taft Motors, Inc. 722 S. Linden St. Sapulpa, OK 918-224-7700 taftmotorsinc@msn.com

MIKE MORGAN, Technical Aide

FOR INFORMATION ON HOW TO BECOME A MEMBER OF OIADA PLEASE CONTACT ROSE OR ODELL MORGAN AT 405-232-2947.

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

DEALERS’ RESOURCE IS A PUBLICATION OF AUTOMOTIVE DEALERS RESOURCE OF OKLAHOMA (ADR) PRODUCED ON BEHALF OF THE OKLAHOMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION (OIADA), P.O. BOX 6905, MOORE, OK 73153. THE DEALERS’ RESOURCE IS PUBLISHED MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES CORPORATION. PERIODICAL POSTAGE PAID AT ARLINGTON, TX, AND AT ADDITIONAL OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO OIADA, P.O. BOX 6905, MOORE, OK 73153. THE STATEMENTS AND OPINIONS EXPRESSED HEREIN ARE THOSE OF THE INDIVIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF ADR OF OKLAHOMA, THE OKLAHOMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF OIADA OR NIADA DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT © 2011 BY O&R MORGAN, INC. DBA OIADA. ALL RIGHTS RESERVED. DEALERS’ RESOURCE IS A PUBLICATION OF AUTOMOTIVE DEALERS RESOURCE OF OKLAHOMA ON BEHALF OF THE OKLAHOMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION (OIADA), BUT IS MAILED TO ALL DEALERS IN THE STATE IN AN EFFORT TO EDUCATE AND ENCOURAGE NON-MEMBERS TO JOIN THE ASSOCIATION AND SUPPORT OUR EFFORTS TO IMPROVE THE IMAGE AND PROFIT POTENTIAL OF THE INDUSTRY. FOR 55 YEARS, WE HAVE WORKED TO REPRESENT THE INDEPENDENT MOTOR VEHICLE DEALER IN OKLAHOMA. WE NEED YOUR SUPPORT. FRONT COVER BY Mike Morgan 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

IR S OF F E R S HE L PF UL AU T O DE A L E R TA X T IP S Confused about what the Internal Revenue Service requires from dealers at tax time?

Don’t worry, as the IRS has an entire section of its website dedicated to automotive businesses. We’ve included a few tips here. As most dealers already know, the IRS requires each person engaged in a trade or business who, in the course of conducting that trade or business, receives more than $10,000 in cash in one transaction or in two or more related transactions must file a Form 8300. The agency recommends filers should keep a copy of each Form 8300 for five years from the filing date. Form 8300s should be filed by the 15th day after the date the cash was received. The form should be filed on the next business day if that date falls on a Saturday, Sunday or legal holiday. The filer must give a written statement to each person named on a required Form 8300 on or before January 31 of the year following the calendar year in which the cash is received and a copy of this statement kept for your records. Changing your accounting method? That generally requires IRS approval. To get approval, you must file Form 3115, Application for Change in Accounting Method. A change in your accounting method includes a change not only in your overall system of accounting but also in the treatment of any material item. If you finance the purchase of your property, instead of having the buyer get a loan or mortgage from a third party, you probably have an installment sale. It is not an installment sale if the buyer borrows the money from a third party and then pays you the total selling price. FOR MORE INFORMATION, VISIT WWW.IRS.GOV

Julian Codding Reliable Motors, Inc. 9201 S. Shields Oklahoma City, OK 405-912-5000 juliancodding@msn.com Monte Shockley Shockley Auto Sales 2605 N. Broadway Poteau, OK 74953 918-647-3999 sas@clnk.net Glenn McDaniel I-35 Credit Auto 1113 SE 51st St. Oklahoma City, OK 73129 405-670-4100 gtamcd@aol.com David McQuerry McQuerry Motors, Inc. 1302 N. Harrison St. Shawnee, OK 74801 405-273-8171 mcquerrymotors@yahoo.com

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C O NSUME R T R A NSP O R TAT IO N C O S T S

IS THE LONG-TERM TREND POISED TO CHANGE? The recent spike in gasoline prices has brought transportation costs, particularly fuel, to the front of consumers’ minds again. Throughout

the industry, interest among prospective vehicle buyers is shifting toward more fuel efficient compact and hybrid models and away from SUVs and crossovers. But even as fuel prices increase, long-term transportation costs as a percentage of income have actually been declining. As recently as 1999, transportation costs (consisting of the vehicle purchase, fuel, and miscellaneous expenses) accounted for some 20 percent of the average consumer’s income. By 2009, the most recent data available from the Bureau of Labor Statistics, that percentage had dropped to below 15 percent. The major reason for the decline in overall transportation costs can be attributed to the annualized cost of the vehicle itself. On an annualized basis,

the percentage of income expended for the vehicle has fallen from around 10 percent in 1999 to only 5 percent in 2009. Miscellaneous transportation expenses, which include finance costs, insurance, and taxes, fell slightly from 7 percent of income in 1999 to 5 percent in 2009. Gasoline expenditures, on the other hand, rose from 3 percent of income in 1999 to a peak of 6 percent in 2008, then dropped back to 4 percent in 2009. In years past, the vehicle itself was the primary component of the consumer’s transportation costs, with miscellaneous expenses and fuel costs being less significant. That is no longer the case. As shown in the chart, by the end of 2009, in middle-income households, the three major components of transportation costs had converged, equalizing at about 5 percent each. Supply disruptions resulting from the tragedy in Japan are already having an

BY AD R STAFF

impact on the purchase prices of some vehicle models, particularly several of the most fuel efficient. Whether those vehicle price spikes coupled with the on-going upward trend in fuel costs will cause total transportation costs as a percentage of income to turn upward any time soon remains to be seen. But it’s a safe bet your customers are going to be feeling a double pinch in their pocket books.

(Bureau of Labor Statistics, Consumer Expenditure Survey, 2009, middle 20% income quartile.)

DOCUMENT YOUR MOTOR VEHICLE SALES

WOULD YOUR VEHICLE SALES RECORDS STAND UP TO AN FBI TERRORIST INVESTIGATION? In a press release dated Feb. 24, the FBI’s Dallas office reported a Lubbock resident had been arrested on suspicion of involvement in terrorist related activities. The associated complaint

and affidavit filed in federal district court mentioned the suspect’s ownership of a 2006 Hyundai Sonata. The affidavit indicates Internet blog entries by the suspect stated he purchased the vehicle in Oklahoma City. On Feb. 26, The Oklahoman reported the blog entry indicated the suspect paid an unidentified car dealer $1,500 cash at the time of the sale, left his passport with the dealer as security and promised to pay the remaining $5,500 when he got back to Lubbock. The Oklahoman further reported Clay Simmonds, spokesman for the Oklahoma City FBI office, confirmed local agents had followed up on leads concerning the automobile purchase. Fortunately, most car dealers will never have FBI agents walk through the door and ask to see vehicle sales records, but it can and

does happen. In the event that it happens to you, you would be well-served to have implemented procedures for identifying your customers and maintaining complete vehicle sales records that comply with all state and federal regulations. At a minimum, a fully documented sales folder will contain the following: • Customer identification and verification documents •Copy of government-issued photo ID, such as driver’s license, passport, etc. •Documentation of steps taken to confirm customer identity •Specially Designated Nationals (SDN) list printout (The Office of Foreign Assets Control maintains a list of persons, typically terrorists and narcotics smugglers, whose assets are blocked. US persons are generally prohibited from transacting business with them. For each sale, you should search the alphabetical list for your customer’s name and print the appropriate page, thereby documenting the absence of your customer’s name. The list is accessible through our association website, www.e-oiada.com.) •Completed forms

BY AD R STAFF

•FTC AS IS Buyer’s Guide •30-Day Notice Title Receipt •Retail Purchase Agreement/Bill of Sale (includes Buyer’s Order, Dealer Warranty Statement, Trade-In Record, optionally Odometer Disclosure) •We Owe/Delivery Confirmation •Privacy Notice •Retail Installment Sales Contract (if financed) •Oklahoma Lien Entry Form (if financed) A copy of the front and back of the completely executed title

As a matter of procedure, you should always fully document your motor vehicle sales. It isn’t difficult, it doesn’t take long and it certainly isn’t expensive. The requisite forms listed above are all available from OIADA/ADR of Oklahoma at reasonable cost, ranging from just more than $1 per cash sale and less than $2 per finance deal. Document, because you just never know who’s going to walk through the door and ask to see your records.

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s F T C

M O T O R

V E H I C L E

R O U N D T A B L E S

ARE F TC ROUNDTABLE MEETINGS GOING TO CHANGE YOUR BUSINE S S? As reported to you last month, the Federal Trade Commission is conducting outreach activities and reviewing a wide range of vehicle dealer practices in connection with their new rulemaking authority under the Dodd-Frank Act.

Accordingly, the FTC is hosting a series of roundtable meetings delving into the sales, financing and leasing practices of car dealers. The stated objective is to gather information on consumers’ experiences when buying or leasing motor vehicles, particularly cars, SUVs and light trucks. The roundtables are intended to inform the commission of what consumer protection issues, if any, exist that could be addressed through possible rulemaking or other initiatives. Central to its information-gathering efforts are the financing and leasing practices found throughout the industry. With the intention of identifying unfair and deceptive practices, forum topics range from the categories of dealers involved in financing and the types of financing offered to the possibility of yoyo financing, misrepresentation of credit terms, trade-in negative equity accounting and individual discrimination. The FTC also is inquiring into practices involving sales to military personnel, the use of global positioning systems on financed and leased vehicles and consumer-relevant procedures common at vehicle auction facilities.

s The following are the definitive

topics the FTC is reviewing:

What categories of dealers (i.e., franchise, independent, and Buy Here-Pay Here) offer credit or leases to consumers? Do these different categories of dealers offer different types, or terms, of credit or leasing to consumers? If so, in what manner and under what terms? What types of financing and leasing are offered to consumers today? Who are the typical consumers for each type of product? What practices involving dealers raise consumer protection issues? How prevalent are these practices in the industry as a whole or in any subset of the industry? Do dealers engage in yo-yo financing? If so, please describe in detail how such

a transaction occurs. Do these practices occur in leasing? How prevalent are these practices in the industry as a whole or in any subset of the industry? What types of entities are involved, and what role does each play? What types of consumers are impacted by these practices, and how? What are the costs and/or benefits to consumers of these practices? What are the incentives or benefits to dealers for engaging in these practices? Do consumers understand when they purchase and finance a vehicle that there may be circumstances in which the financing terms, and monthly payments, could change? Is yo-yo financing sometimes combined with a practice whereby the dealer has sold the consumer’s trade-in before the consumer learns of the higher interest and/or payments from the dealer? [FTC note: In many states, a dealer may deliver a vehicle to a consumer pending approval of the consumer’s financing (a practice known as spot delivery). In general terms, yo-yo financing refers to a spot delivery in which the dealer apprises a consumer the dealer has secured or expects to secure a particular interest rate and other terms for financing the sale. Days after the consumer has signed the purchase or credit documents and driven home in the newly purchased vehicle, the dealer contacts the consumer with information that the financing fell through and the consumer must return to the dealership. Upon the consumer’s return, the consumer learns he or she now must pay a higher interest rate and higher monthly payments to finance the purchase.] Do finance companies provide incentives or payments to dealers in exchange for consumers receiving more expensive credit? Does this practice occur in leasing? How prevalent is this practice in the industry as a whole or in any subset of the industry? How does this practice work? What types of entities are involved, and what role does each play? What types of consumers are impacted by this practice and how? What are the costs and/or benefits of this practice? Do consumers understand this practice, and to what extent does it affect consumers’ decisions to purchase and finance a vehicle? Is this an issue unique to the sale and financing of vehicles, or are there other

BY AD R STAFF

industries where sellers may have incentives of which buyers are unaware and that may be contrary to buyers’ interests? If not, should the sale and financing of vehicles be treated differently from other industries, and why? Do dealers misrepresent credit or lease terms to consumers? How prevalent is this practice in the industry as a whole or in any subset of the industry? What types of terms do dealers misrepresent and in what circumstances? Are other entities involved in these practices, and if so, which entities? Do dealers charge interest rate markups or up-front charges to consumers for credit or leases about which consumers are unaware? How prevalent is this practice in the industry as a whole or in any subset of the industry? How does this occur? Do consumers understand that dealer financing may include dealer mark-ups in addition to the cost of the credit or lease, and to what extent does this practice affect consumers’ decisions to purchase and finance a motor vehicle? Is this an issue unique to the sale and financing of vehicles or are there other industries where sellers charge mark-ups of which buyers are unaware and that maybe contrary to buyers’ interests? If not, should the sale and financing of motor vehicles be treated differently from other industries, and why? Is substantial negative equity from a prior purchase, or money owed on a prior lease, frequently rolled into consumers’ next vehicle purchases or leases? What are the costs and/or benefits of this practice? How prevalent is this practice in the industry as a whole or in any subset of the industry? How does this occur? Do consumers understand when negative equity is rolled into the credit package of a newly purchased and financed vehicle? [FTC note: In this situation, a consumer may seek to trade in a vehicle for which the consumer owes more than the vehicle is worth. The dealer may accept the tradein, but will include the negative equity (the amount owed) for the trade-in in the credit package for the newly-purchased vehicle, with or without further explanation to the consumer. This process can result in the consumer being in another upside-down credit situation and owing higher monthly payments.] CO NTI N U E D O N PAG E 8

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Fuel Economy Website

Fuel economy is the topic of this driving season and both you and your customers may be searching for information regarding the most fuel efficient vehicles. The U.S Department of Energy and the Environment Protection Agency jointly host the U.S government’s official online source for fuel economy information. Accessible at www.FuelEconomy.gov, the site includes a variety of links ranging from general interest topics such as gas mileage tips and the importance of fuel economy to specific information on alternative fuel vehicles. Through the “Info for Auto Dealers” link, dealers can sign up to automatically receive the annual Fuel Economy Guide published jointly by the EPA and the DOE. The guide is intended to help car buyers choose the most fuel-efficient vehicle that meets their needs. For each vehicle listed, the guide shows both the city mpg rating and the highway mpg rating along with annual fuel cost estimates. At the currently time, guides for model years 2002 through 2011 are available for review online. Visitors to the site can also access various tools, including one to calculate fuel costs and compare savings between vehicles based on varying fuel prices and miles per gallon ratings. Visitors can also perform sideby-side comparisons of the official fuel efficiency ratings of different vehicles. The site also includes information about the miles per gallon ratings used by the federal government, about the new fuel efficiency window stickers currently being developed, and about fuel economy tests. The Tax Incentive Center link provides access to current federal tax credits for alternative fuel vehicles, including diesels, hybrids, plug-in hybrids, electrics, and others such as compressed natural gas and propane. There is also a link to find information on state tax incentives. The next time you are online, take a few minutes to visit www.FuelEconomy. gov – it’s an excellent resource both for car dealers and for consumers.

BY ADR STAFF

* FOR ACCOUNTS THAT QUALIFY / ACCEPTABLE WITH UNDERWRITING

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F T C

M O T O R

V E H I C L E

R O U N D T A B L E S

CO NTI N U E D FRO M PAG E 6

Do dealers engage in credit or lease packing, such as by including amounts for credit insurance, guaranteed automobile protection (GAP), or other add-ons into payment amounts or other terms quoted to consumers? How prevalent is this practice in the industry as a whole or in any subset of the industry? How does this occur? Do consumers understand this practice? [FTC note: Packing refers to a situation in which a dealer includes add-ons in the credit package for the sale or lease of a vehicle, which might be without the consumer’s understanding or at significantly inflated prices. The practice might include quoting monthly payments with the add-on amounts automatically rolled into the dollar figure stated to the consumer. Such add-ons might include charges for products and services such as: rust proofing, undercoating, service agreements, extended warranty packages, credit life insurance, guaranteed auto protection (known as GAP, which refers to coverage for the difference between the amount the consumer owes on the loan and the current market value of the

vehicle), and other products and services.] Do dealers include warranties, service contracts, and other add-ons in credit or lease contracts? How prevalent is this practice in the industry as a whole or in any subset of the industry? At what point in the sales process are these items included in the contracts? How does this practice occur? Do consumers understand this practice? Do consumers experience discrimination on a prohibited basis as set forth in Section 701 of the Equal Credit Opportunity Act, 15 U.S.C. 1691, in vehicle financing or leasing? How prevalent is this practice in the industry as a whole or in any subset of the industry? Do interest rate markups by motor vehicle dealers disparately impact any groups of consumers in violation of the ECOA? What other practices by dealers violate the ECOA? What data exists to measure compliance with the ECOA by dealers? What other information can dealers collect to assess ECOA compliance? Do military personnel or their families face unique consumer protection concerns

THE ROUNDTABLES ARE INTENDED TO INFORM THE COMMISSION OF WHAT CONSUMER PROTECTION ISSUES, IF ANY, EXIST THAT COULD BE ADDRESSED THROUGH POSSIBLE RULEMAKING OR OTHER INITIATIVES. when purchasing vehicles? What practices cause those concerns? How prevalent are those concerns in the industry as a whole or in any subset of the industry? Do or can these concerns impact military readiness? What practices are involved? What steps have motor vehicle dealers, states, and consumer groups taken to address these practices? How successful have they been? Do dealers fail to pay off liens or tradeins or otherwise fail to transfer title at a sale? How prevalent is this practice in the industry as a whole or in any subset of the industry? What are the reasons for failing to pay off a lien? What problems does this practice raise for consumers? What state laws exist to address this practice?

Based in your community, focused on your business. Custom Finance offers full-spectrum financing to meet the needs of a diverse customer base. Coupled with fast decisions and efficient funding, your local Custom Finance team helps you meet the needs of deserving borrowers with less-than-perfect credit. Your dedicated sales and credit team is waiting for your call. Ask about the advantages of signing with Chase today.

Tulsa Business Center Hours of Service: M-Th 8 a.m. to 7 p.m., F 8 a.m. to 6 p.m., Sat 8 a.m. to 4 p.m. Center Manager, Brian Crawford T: 918-586-5501

Relationship Manager, Max Ellis T: 405-850-3252

DEALERS’

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CO NTI N U E D FRO M PAG E 8

Do dealers use global positioning systems or similar devices to locate and track financed and leased vehicles? How prevalent is this practice in the industry as a whole or in any subset of the industry? What problems does this practice raise for consumers? Do consumers understand this practice? Does this practice affect accounts in default? For those consumers who have these devices installed on their vehicles, what is done with their route information? Do service providers retain this data? How do they use it? Does this practice raise privacy concerns? Do consumers understand their vehicles could be tracked, and the extent to which they are being, or could be, tracked? How do auction houses operate? Do consumer protection issues exist in connection with such auction houses? If so, which issues? ADR N OTE:

(The FTC’s first motor vehicle roundtable was being held as this publication was going to press. While the FTC’s focus is consumer protection and the discussions are consumer-oriented, our industry is fortunate to be represented at this and future meetings by various auto dealer organizations. We will keep you apprised of developments as information becomes available.)

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.). 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

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SUMMER SALE

SOLUTIONS How many of you remember the best tax season we’ve ever had? It was just a

few months ago. Wait. It wasn’t. Between the snowstorms of late January and the U.S. government not being able to get refund checks out quickly, it felt like this year’s tax season lasted about a week. To add insult to injury, prices at the auctions were too high. Dealers have inventory they can’t seem to move, and when they do, they can’t make a profit off of the expensive cars they’re buying at the auctions. Earlier this year, I wrote about ways to get people into your dealerships by giving back. Through the next three months, I’m going to expand on that. May is the start of summer: school gets out, people head to the lakes and America celebrates Memorial Day. As a dealer, you have two options: sit and watch or get involved. I assume you chose to get involved because you’re still reading this article. So let me give you three ideas of how to get people in your front door.

s Wall of Heroes

The basic idea behind Memorial Day is to remember those who have served our country. Often, Memorial Day sales are centered on the fact people are headed to the lake and I’m going to get to that, but there can be more to it. Make your sale interactive. The idea is simple: encourage customers and future customers to bring in a photo of a friend or family member who is serving or has served in the military. Put those photos on the wall and give these customers a discount or a free oil change for sharing the stories of their loved ones.

To do this right, you can’t just tape up the pictures on the wall; you need to decorate the entire store to enhance the theme and to make sure you are genuinely honoring those who have served for us. You can be as creative as you like. Talk about this promotion in your print ads and your TV commercials. Decorate the cars with American flags and streamers. If you need them, we have them available at the OIADA office. Make this a Memorial Day sale that makes your customers feel good.

s A Cost-Saving Summer Kick Off

Electric cars are not far away, and trouble in the Middle East is sending gas prices to an all-time high. In another article in this newsletter titled “Consumer Transportation Costs,” we share how consumers are spending a smaller percentage of their income on vehicles and more on fuel. So start off the summer with a promotion, encouraging people to spend more money up front on a more fuel-efficient car. Offer free comparisons of gas mileage of a customer’s trade in and a potential new car. The federal government has provided a tool to make this easy. Simply go online to www.fueleconomy.gov, select the “Compare Side-By-Side” option, enter the vehicles’ information, and see the average fuel economy. With this, you can show your customers how spending more money initially can save them money down the road. OIADA also provides stickers that can be applied to windshields to advertise your fuel-efficient cars.

BY MIKE MORGAN

s Cinco de Mayo at the Car Lot

By the time you read this magazine, Cinco de Mayo may already be a distant memory in most people’s minds, but cut this article out and put it in your 2011 tax folder so as you’re doing your taxes next year, you’ll remember this idea. Tex-Mex restaurants across America make loads of extra money on the fifth of May. Why shouldn’t you? The Hispanic population is the most rapidly growing population in America. And, just like anybody else, they want to buy cars. If your clientele is primarily Hispanic, use green, white, and red colors to dress your lot and put up piñatas around the office. Have your sales staff wear sombreros to help spread the theme. Offer a Cinco de Mayo prize package to one lucky person who purchases a vehicle on that day. The end result is an influx in customers entering your lot and a bigger paycheck at the end of the day for you. I hope you try these ideas and you let me know how they go. Throughout the next three months, I’m going to provide you more themed sales ideas to help get customers back in your stores. And if you need help, I would be more than happy to brainstorm with you. We also have most of the supplies you would need to do these events for sale at the OIADA office, and we can special order things we don’t normally carry. Don’t forget you also need to communicate with your customers online. And if you want to learn more about that, feel free to give me a call at the OIADA office.

DECORATE THE CARS WITH AMERICAN FLAGS AND STREAMERS. IF YOU NEED THEM, WE HAVE THEM AVAILABLE AT THE OIADA OFFICE. MAKE THIS A MEMORIAL DAY SALE THAT MAKES YOUR CUSTOMERS FEEL GOOD. 10

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USED MOTOR VEHICLE AND PARTS COMMISSION REPORT

DATE ISSUED 02/23/2011 02/16/2011 02/22/2011 02/23/2011 02/10/2011 02/14/2011 02/14/2011 02/24/2011 02/16/2011 02/16/2011 02/16/2011 02/14/2011 02/14/2011 02/10/2011 02/14/2011 02/15/2011 02/22/2011 02/10/2011 02/10/2011 02/10/2011 02/24/2011

CLOSED COMPLAINT REPORT

These are complaints that have been resolved one way or another. They do not necessarily reflect any wrongdoing on the part of dealers. ENTITY CITY Affordable Cars, LLC Oklahoma City Arnie’s Auto Sales, Inc. Tulsa Big Red Sports/Imports Norman Bob Moore Subaru, LLC Oklahoma City Brad Fenton Mtr of Poteau, Inc. Poteau C & J’s Ardmore Autoplex Ardmore Cars Xtra Oklahoma City Crossroads Auto Mall, Inc. Oklahoma City Crossroads Auto Mall, Inc. Oklahoma City David Stanley Chevrolet, Inc. Oklahoma City David Stanley Chevrolet, Inc. Oklahoma City El Reno Home Center, Inc. El Reno Express Credit Auto #2 Oklahoma City Kar Spa Oklahoma City Kruisin’66 Motorcycle & Auto Sales, LLC Tulsa Norman Chrysler-Jeep Dodge Norman Roberts Auto Center, LLC Pryor Stanart Motors Oklahoma City Twister Trucks Oklahoma City Wheatland Motor Company Oklahoma City

COMPLAINT Title Contract Contract Contract Contract Title Miscellaneous Title Contract Title Title Contract Mechanical Title Miscellaneous Title Mechanical Contract Miscellaneous Miscellaneous

LICENSES SUSPENDED OR ABANDONED

Following convening of the meeting and approval of the minutes of the previous meeting, Acting Chairman Steve Ross called on Director John Maile for the Director’s report. Maile began his report by stating that a copy of the financial statements for December 2010 and January 2011 had been emailed to the Commissioners. Maile went on to report the Oklahoma Legislature is in session and consolidation is a legislative issue. One of the issues the Legislature is working on is centralization of all financial services for all of the state agencies. Maile said the agency is in a situation where it doesn’t have a former employee who once did its finances. It looked at going with the Office of State Finance. State Finance indicated it could do all Commission bill paying and endof-month reconcilement so the staff went out and talked to the agency, which would charge about $1,200 per month for those services. The Commission already pays it $350 per month to do payroll. From the staff ’s standpoint, Maile did not think that was cheaper. He advised the Commissioners they could hire an employee and use the finance person for things other than finances. After staff looked at it and the Office of State Finance was stuck on a fee of $1,200 per month for us, the cheapest it does for any one agency is $750. So from our standpoint, the agency priced us out of the market. We felt we needed to add another administrative staff person and split finance duties among the personnel. Maile advised he already does the end-of-month reconciliation. Kenneth Whitehead pays some of the bills and Jennifer Bates pays some. We end up doing more things because we are a state agency and it’s frustrating. The more we do on administration, the less we do on core functions. For the time being, he preferred the agency do it on its own. Maile discussed pending legislation with the Commissioners. SB 772 consolidates all licensing agencies under the Department of Commerce. SB 38 is the rebodied vehicle bill. It stemmed from dealers that build Shelby vehicles (1967 Ford Mustang fastbacks). They buy their bodies from a licensed Ford franchise. They are licensed by Ford and Shelby and they are trying to get a bill that would create a title for the vehicle. They use minimal 1967 Mustang products but want to title the vehicles as 1967. We went there and looked at their operation last week. It is first class. They make really nice cars. They don’t want kit car on the title. After looking at the bill and their operation, it seems like a good deal. There is no precedent for that in other states. They are hoping they would bring more of that industry into the state. Maile advised the Commissioners Autoaffordables Auto Sales is listed under the Deputy Director’s Report. They are located in Miami. The owner had the license for the purpose of driving personal vehicles on dealer plates. We offered him the opportunity to surrender the dealer plates and his license. He turned in the plates. He had 10 dealer plates and hadn’t sold a car in some time. Whitehead’s Deputy Director’s Report indicated Commission staff had held one informal hearing during the month. Investigators completed 32 inspections for the period. Staff handled 20 written complaints, seven of which were title issues, seven had to do with contract violations, two were related to mechanical issues and there were four complaints of a miscellaneous nature. The Commission education program had 21 in attendance. Applicants for a new license and dealers involved in significant rule violations are required to attend the Commission’s education program as a part of acquiring or maintaining a state license. Until further notice, these education sessions are being held at the Commission conference room at 2401 NW 23, Oklahoma City. Classes are held on Monday prior to the Commission meeting on the second Tuesday of each month. The sessions run from 9 a.m. to about noon or 1 p.m. You are asked to make reservations so staff can be prepared to accommodate you. Call the Commission at 405-521-3600 to make your reservations.

REPORT OF CEASE & DESIST LETTERS ISSUED

(These letters direct the individual or business to cease violations of laws or rules) ENTITY TYPE VIOLATION CITY Troy Aumann Used Dealer Oklahoma City Laurie Cooper Used Dealer Noble Janet Espino Insurance Pool Tulsa Richard Grille Used Dealer Luther Refugio Hidrogo Insurance Pool Oklahoma City Refugio Hidrogo Rebuilder Oklahoma City Refugio Hidrogo Used Dealer Oklahoma City Cory Holmes Used Dealer Blanchard Joe Dean Hunter Used Dealer Harrah Joe Dean Hunter Rebuilder Harrah Joe Dean Hunter Manufactured Home Harrah Jose Izaguirre Rebuilder Oklahoma City Jose Izaguirre Used Dealer Oklahoma City Jose Luis Izaguirre Insurance Pool Oklahoma City Luis Izaguirre Used Dealer Oklahoma City Lost Treasure Auction Used Dealer Enid Elmer L. Masters Insurance Pool Midwest City Sterline Matthews Insurance Pool Tulsa Patrick Neal Insurance Pool Oklahoma City Opie Pitts Insurance Pool Tulsa Adam Stout Used Dealer Noble

CONSENT AGREEMENTS APPROVED

RESOLVED 02/18/2011 02/14/2011 02/03/2011 02/07/2011 02/07/2011 02/08/2011 02/07/2011 02/11/2011 02/14/2011 02/10/2011 02/10/2011 02/07/2011 02/18/2011 02/07/2011 02/10/2011 02/24/2011 02/07/2011 02/10/2011 02/04/2011 02/10/2011

In other action, the following licenses were suspended or abandoned: Harmon’s Classic Cars, Wagoner: Suspended; failure to complete requirements for change of location. Motor City, Ponca City: Out of business; per Investigator’s report. In other action, the Commission approved the following Consent Agreement: A Consent Agreement between UMV&PC and Shannon Hacker, on behalf of Best Motor Company Leasing, Inc., an entity having four licensed used motor vehicle dealership locations in Oklahoma, hereinafter referred to as “Respondent.” The following is a summary of the facts concerning the investigation by Commission personnel, the violations of the used motor vehicle licensing laws and/or Rules of the Commission, the possible sanctions which may be imposed, and the sanctions that the Respondent has agreed to in order to resolve this investigation. • Respondent has employed individuals as used motor vehicle salespersons without licensing them with the Commission. • Respondent has provided records of salespersons employed at the four locations in Oklahoma from Jan. 1, 2010. • Respondent’s records indicate that Respondent employed twenty two persons in excess of one month, five persons for less than a month and fourteen persons for less than two weeks, without licensing them as used motor vehicle salespersons. • Respondent acknowledges that in the event of a hearing before the Commission, the sanction for employing unlicensed salespersons is a fine of up to $1,000 per violation and/or suspension or revocation of Respondent’s used motor vehicle dealer’s licenses. • Respondent agrees to pay to the Used Motor Vehicle and Parts Commission for said violations as follows as full and complete disposition of this matter: Respondent agrees that it will pay to the Used Motor Vehicle and Parts Commission the sum of $250 for each salesperson employed for more than one month, $100 for each salesperson employed for less than one month but more than two weeks and $25 for each salesperson employed less than two weeks, for a total of $7,450, payable on the last day of the month in which the Commission approves this Consent Agreement. Said payment will constitute full and final action on all violations pending or which may be charged against Respondent at the time of this agreement. If said sum is not paid as agreed, Respondent acknowledges that further action may be taken, which may include a formal hearing for the revocation of Respondent’s used motor vehicle dealer’s license.

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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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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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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. 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. CO NTI N U E D O N PAG E 2 0

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CO NTI N U E D FRO M PAG E 18

“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

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.

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, valuebased aftermarket products and competitive service agreement programs for automotive, power sports, and recreational vehicles for almost 30 years.

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CNW

Dealers Are Finding Inventory Short on Cars

In what could be stemming from gasprice 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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M A R C H 2 0 11

OIADA NEW AND RENE WAL MEMBERS

The following list includes members who joined or renewed their OIADA/NIADA membership during March. We express our sincere appreciation for all the members of OIADA and we extend our invitation to dealers who are not members. A membership application can be found elsewhere in this newsletter. We urge you to be an active part of maintaining a strong and effective used car industry voice in the legislative and regulatory environment. With the current Congress, we need that voice more than ever! John Easttom, President

COMPANY

NAME

JOINED CITY

R Taylor Auto Sales Inc. R T & T Auto Sales Inc. R Sports & Imports Inc. R Riverside Chevrolt R Big Red Sports/Imports Inc. R Beymer Motor Company R Champ Hinton Used Cars R Johnson’s Miscellaneous Used Cars N Twin Peaks Auto Sales R Dunford Auto Sales R Moore Auto Sales R All About Car Sales LLC R S & J Motors Inc. R Poskey’s Auto & Repair LLC R Preferred Auto Sales Inc. R The Car Man LLC R Eagle International Autos Inc.

Carl Taylor Michael Terrel, Jr. R. D. Bingham, Jr. Sonic-Riverside Inc. Chris Mays James W. Beymer Lisa Hinton Gayle Johnson Lawrence Urman Richard Ralph Dunfoprd Deal Makers LLC Scott Westfall Steve Martini Mark Poskey Larry Dawson Jake Haller Weam Kalidy

1993 1998 1991 2010 1991 1995 1993 2007 2011 1994 2010 2009 2000 2010 2007 2002 2003

Oklahoma City Oklahoma City Tulsa Tulsa Norman Henryetta Fort Smith, AR Altus Oklahoma City Perry Moore Lawton Elgin Stroud Norman El Reno Edmond

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CONTACT AT ONCE

PARTNER FOR DEALER CHAT AVAIL ABILIT Y 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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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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LICENSE APPLICANTS APPROVED USED DEALER LICENSES

COMPANY NAME CITY 4 Corners Tradin Post Affordable Cars LLC All Star Auto Sales Auto Resources LLC Autoplus of Woodward LLC

Leon Womack Mahmoud Alzubi Ahmad Bakri William Bruner Jeff Russell Carmen Grunke John Grunke, Sr.

Carney Oklahoma City Tulsa Oklahoma City

C & A Auto Sales Car Bonz Salvage & Sales Dave’s Motors LLC Edmond Equipment Inc. End of the Trail Autos LLC Eslin Motors Gilliam Auto Sales #2 Hampton’s Auto & RV’s LLC Inspire Motors Raceway Motorsports Redline Motorsports Inc. Reyes Motors Inc. S & A Autos Safe Auto Sales South Side Bikes & Baggers Steveo’s Wheels Auto Sales T & J Auto Auctions T.R.U. Auto Sales & Service Thomas Autos LLC

Chance Asher Kevin Harris David Torrans Michael D. Kelly Brian Hart Landon Eslin Willie James Gilliam Terry M. (Mickey) Hampton Shahid Iqbal Jennifer Griffin Anthony Griffin Mark F. Hayes Gabriel Reyes Castanon Mohammed Rahman Said Attaouil Johnathan Musgrove Robert L. Johnson Clarence (Gene) Henderson Todd Mikel Crystal D. Mikel Tabitha Beranek Shakiba Nasser Ahmad Bahreini Aaron Weber Thomas Sheila Marie Thomas

Muldrow McAlester Lexington Edmond Geronimo Elk City Guthrie Spencer Oklahoma City Porum

Woodward

Tulsa Tulsa Oklahoma City Enid Tulsa Enid Duncan

Oklahoma City Stillwater

WHOLESALE USED DEALER LICENSES COMPANY

NAME CITY

Ami Auto Sales Master Auto Sales Mercury Auto Remarketing Proformance Auto Sales

Douglas S.Z. Miller Nasser Abushehada Abdol Aliabadi Harlan Buettner

Oklahoma City Oklahoma City Edmond Choctaw

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Join OIADA And See

More Profit In Your Pocket! Join OIADA and Receive Your 2011 VIP Discount Cards!

Your Dealer Discount VIP Cards are just one of the many benefits of OIADA membership. Their value alone is over four times greater than the $295 annual membership fee. Join OIADA today to get started saving with your own Member-Exclusive Dealer Discount VIP Cards. I-40 Auto Auction, Muldrow Thursday @ 7:00pm: One Buy Fee.

I-35 Auto Auction, Pauls Valley Tuesday @ 7:00 pm: One Buy or Sell Fee up to $75.

165 Auto Auction, Muskogee Wednesday @ 7:00pm: One Buy Fee.

I-40 Auto Auction, Inc., Del City Tuesday @ 6:30pm: One Buy Fee up to $50. One Sell Fee up to $50.

Dealers Auto Auction of OKC Thursday @ 8:30am: One Sell Fee up to $50. One Buy Fee up to $50.

Central Auto Auction - Hwy 37, Tuttle Saturd of each month 10 am: One Free Sell Fee 1st Saturday

ADESA Tulsa Friday @ 9:00 am: One Sell Fee up to $50. One Buy Fee up to $50.

Manheim Missouri - Springfield Thursday @ 9:00am One Sell Fee up to $100. One Buy Fee up to $70.

CarMax Auctions, Oklahoma City location. One Buy Fee up to $50.

Manheim Dallas/Ft. Worth Thursday @ 9:30 am: (Trinity Blvd location) Free Buy Fee. Only available at Thursday sale.

America America’s Auto Auction, Inc. of Tulsa Wednesday @ 2:00pm: Dealers only or Saturday @ 11:00 am: Dealers & Public. One Buy Fee up to $50.

Manheim Metro Dallas Tuesday @ 9:00 pm: Free Buy Fee. Manheim Dallas Wednesday @ 9:00 am or Friday @ 10:00 am Free Buy Fee

Join OIADA and trade with these vendors, and they will more than cover the cost of your membership. That leaves

More Profit In Your Pocket!

When you join or renew your membership in OIADA, you receive a full set of Dealer Discount VIP Cards. These cards are available ONLY to OIADA MEMBERS and are DEALER EXCLUSIVE.

Call (405) 232-2947 or visit http://www.e-oiada.com/join to Join OIADA Today! 29

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OIADA LEGISL ATIVE TRACKING REPORT The week ending Saturday, March 19, marked the completion of the sixth week of the legislative session. Work continued on both the House and Senate floors as the deadline for Final Passage of a Measure in House of Origin for both houses was Thursday, March 17. House and Senate bills not heard on their respective floors before that date are dead for 2011.

As of March 19, there were a number of bills still alive: House bills filed, 1,168; still alive, 481. Senate bills filed, 970; still alive, 389. Of the total bills 2,224 filed, 886 were still alive as of March 19. The following are bills OIADA has been tracking and Jami Longacre, OIADA’s legislative liaison, has been reporting on and their status as of March 19: HB 1207 MURPHEY – SYKES: Creates

the Oklahoma Innovation, Efficiency and Accountability Act of 2011; requires each state agency to utilize the Portal System that allows for a link to a web based application for any license or permit issued. Bill status: 03-09-11 H 3 Floor amendment(s) adopted - 03-09-11 H Passed/Adopted (Vote: Y: 91/N: 3) - 0310-11 S Received in the Senate - 03-1511 S Referred to Senate Committee on Appropriations. HB 1222 MCCULLOUGH: Amends the

term ‘motor vehicle’ to include all-terrain vehicles, utility vehicles, and motorcycles used exclusively for off-road use. Bill status: 02-08-11 H Referred to House Committee on House Transportation - 0222-11 H Voted from committee - Do Pass as substituted House Transportation - 0315-11 Passed House on a vote of Yea: 97No: 0 – 03-16-11 Received in Senate. HB 1230 OWNBEY – MAZZEI: Changes

the information on the application for certificate of title required by the tax commission; requires a declaration on all vehicles within the last ten model years as part of the application process for a certificate of title. Bill status: 03-01-11 H Set on the House Floor Agenda - 03-01-11 H Passed/ Adopted (Vote: Y: 94/N: 3) - 03-02-11 S Received in the Senate

HB 1476 ARMES – ANDERSON: Includes

recreational off-highway vehicles with the requirements for all-terrain vehicles. Bill status: 02-09-11 BILL IS DEAD FOR THIS SESSION. HB 1743 JOHNSON – SYKES: Empowers

the Corporation Commission to supervise, govern and control wrecker fees, tariffs, and rates for transporting and storing vehicles removed in a non-consent tow; empowers the Commission to set fees and charges; EMERGENCY. Bill status: House Public Safety 02-23-11 H Voted from committee - Do Pass House Public Safety 03-14-11 H Passed Yes: 95 – No: 0 HB

1908

JACKSON

–

ALDRIDGE:

Eliminates the reduction of fees for online registration renewals for motor vehicle registration. Bill status: 03-15-11 BILL IS DEAD FOR THIS SESSION.

SB 729 MAZZEI – DANK: Removes the

listing of motor number, date first sold, distinguishing marks, and statement of source of title from the application for a motor vehicle title. Bill status: 02-28-11 S Passed Senate on a vote of: Y: 47/N: 0 - 03-01-11 H Received in the House – 03-17-11 Referred to House Appropriations & Budget. SB 772 JOLLEY – SHANNON: Transfers

ordinances to address issues related to smoking; removes legislative intent from the Smoking in Public Places & Indoor Workplaces Act. General Remarks: Repeal of Preemption on Smoking & Tobacco Prevention. Bill status: 03-15-11 BILL IS DEAD FOR THIS SESSION.

all authority of power of labor professional oversight to the Office of Business and Professional Oversight in the Department of Commerce; effective July 1, 2011; EMERGENCY. General Remarks: Licensure Consolidation Bill, (including both Motor Vehicle Commissions). Bill status: 03-02-11 S Voted from committee - Do Pass as substituted Senate Appropriations – Title Stricken 03-14-11 S Set on the Senate Floor Agenda – 3-1511: Amended in Senate, passed on a vote of Aye:42/No:0 – 3-16-11: Sent to House and 3-17-11: Assigned to House Committee on Appropriations & Budget.

SB 201 ALDRIDGE – NELSON: Allows

SB 785 ALDRIDGE - MARTIN, STEVE:

HB 2135 STEELE – MYERS: Allows local

local municipalities, counties, or the Department of Public Safety to place holds on the registration renewal for motor vehicles associated with violations; Allows fees to be collected by motor license agents. Bill history: 02-22-11 S Title stricken in committee Senate Finance – 03-15-11 Passed Senate on a vote of Yes: 34 – No: 11 – 03-18-11 Sent to House and referred to House Judiciary Committee. SB 272 STANISLAWSKI – ARMES:

Disallows manufacturer from charging back a dealer upon audit or for failure of the dealer to ensure the purchaser completed title and registration if the dealer has written proof of the sale. Bill status: 02-17-11 S Title stricken in committee Senate Business & Commerce – 03-15-11 Passed Senate on a vote of Yes: 44 – No: 0 – 03-18-11 Sent to House and referred to House Judiciary Committee

Eliminates the requirement of additional release from the - registered vehicle owner when an insurer has determined the vehicle to be a total loss. Bill status: 03-08-11 S Passed Senate on a vote of: Y: 42/N: 1 - 03-09-11 H Received in the House – 03-17-11 Referred to House Committee on Transportation. SB

902

MARLATT

–

SANDERS:

Mandates that the state will regulate and license recreational vehicle manufacturers, distributors, dealers, and salespersons. Bill history: 02-24-11 S Voted from committee - Do Pass as substituted Senate Business & Commerce - 03-15-11 S Passed Senate on a vote of Yes: 43 – No: 0 – 0318-11 Sent to House & referred to House Committee on Appropriations & Budget. ED ITO R’S N OTE:

The Legislature must adjourn no later than Friday, May 27, by 5 p.m.

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