REPRESENTING ALL AUTO, TRUCK, TRAILER, RV AND POWER SPORT DEALERS OF OREGON
DEALER NEWS
THE OFFICIAL MAGA ZINE OF OREGON IADA
J U N E 2 0 18
SANCTIONS AND CIVIL PENALTIES Everything Oregon Dealers Need to Know PAGE 6
DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage S TAT E A F F I L I AT E
VISIT US AT W W W.OIADA.COM
INSIDE 06............................................... Sanctions and Civil Penalties 08............................................................... BHPH Benchmarks 09........................................... Oregon Plate Transfer Changes 10............................................................Don’t Step on a Rake 12....................................................................... Title Transfers 13..............................Oregon Vehicle Privilege and Use Taxes
WHAT’S NEW
Big and Rich Concert NIADA is pleased to announce the popular Cigars and Martinis welcome reception on the opening night of the first-ever NIADA/NABD Mega-Conference will be followed by a special concert on the terrace featuring none other than country duo Big and Rich. The concert is presented by TradeRev. Learn more about the concert, and the largest and most comprehensive education agenda in the used car industry, at www. NIADAconvention.com.
ADVERTISERS INDEX
ADESA.....................................................................................5 DAA Northwest/Seattle......................................................IFC Lobel Financial.........................................................................3 Manheim................................................................................11 Manheim Portland...............................................................IBC NextGear Capital...................................................................12 vAuto.......................................................................Back Cover
OFFICE
Oregon Independent Auto Dealers Association 9150 SW Pioneer Ct Ste. H Wilsonville, OR 97070 800-447-0302
ASSOCIATE MEMBERS ADVERTISING /MARKETING
Autotrader.com 866-836-1455 Used Cars.Com by Dealix 650-599-5616 Cars.com James Lynch 312-601-5052 Carsforsale.com Grant Lockner 605-306-3492 Interactive financial Marketing Group Travis Weisieder 804-248-0892 ATTORNEY
Byrd Cabrera LLP Robert (Scott) Byrd 310-365-1954 AUTO PARTS
AutoZone, Inc. Daniel Narvaez 971-218-2300 AutoZone Inc Ray Curry 503-964-9420 BOND & INSURANCE
Hecht & Hecht Insurance Agency Larry Hecht 503-542-1130 Shepard & Shepard Business Solutions Todd Shepard 1-855-396-0488 #8
NIADA HEADQUARTERS
ADESA Portland Auto Auction Jerry Hinton 503-492-9200 Crosspoint NW Dealer Auction Brian Hardy 503-594-2800 DAA Northwest (Dealers Auto Auction) Mitzi VanVoorhis 509-244-4500 CarMax Sean McDonald 804-747-0422 DEALER SOFTWARE
Frazer Computing Inc Jake Morley 888-963-5369 Motor Vehicle Software John Brueggeman 546-270-6699 FINANCING
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. OIADA Dealer News is published monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 6006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of OIADA Dealer News or NIADA Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2018 by NIADA Services, Inc.
OIADA BOARD OF DIRECTORS
STATE MAGAZINE MGR./SALES
President Siamak Lotfi
Troy Graff • troy@niada.com EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT
Christopher Hanley • chris@niada.com PRINTING
Nieman Printing
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DEALER AUCTION
Manheim Seattle Auto Auction Ray Priest 206-762-1600 Manheim Portland Auto Auction Alex Fraser 503-286-3000 ADESA Seattle Auto Auction Mark Dumbler 253-735-1600 DAA Seattle Dave Blake 253-737-2200 United Vehicle Auctions Lori Jacoby 503-380-1927 ADESA Northwest Auto Auction Mark Melton 541-689-3901
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June 2018
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Credit Acceptance John Bragg 360-980-2214
Executive Vice President Jim Weaver
1st Vice President Gary Brooks
Lobel Financial David Lobel 714-816-1301 Oregon Auto Finance Gary Veum 541-868-0472 The Equitable Finance Co. Brandon Fox 503-808-7939 Pac West Credit LLC John Kiefer 541-868-2595 United Finance Todd May 503-238-6488 Oregon Community Credit Union Rich Black 541-681-6311 Nationwide Insurance Mark Tischer 503-339-4165 Credit Concepts Inc Jason Moon 541-342-8545 Veros Credit John Pierce 714-415-6125 x21131 Reliable Credit Associations David Marx 503-462-3022 Ted Investment LLC Tom Garza 503-213-1109 FLOORPLAN
Lobel Financial David Lobel 714-816-1301 NextGear Capital Robert Torbet 503-358-3911
Secretary/ Treasurer Salvador Alvarez Herrera
Chairman of the Board Gary Sargent
Floorplan Xpress Josh Chandler 503-621-9260 Auto Cap Services (ACS) Michael Smith 800-800-6494 ONLINE REVIEW MANAGEMENT
Podium Kaylie Smart 801-376-0677
PUBLIC AUCTION
Woodburn Auto Auction Steve Morin 503-981-8185 Petersen Auction Group of Oregon Curt & Susan Davis 541-689-6824 SECURITY
Pro-Vigil Kris Brackin 210-858-1105 SERVICE CONTRACTS
AUL Corporation Jacqueline Swank 800-826-3207 Elite Warranty, Inc Al Ham 503-530-0912 Automotive Business Developers Shannon Meany 541-944-9186 Benchmark Dealer Services Jacob Bangert 360-834-3333 Protective Asset Dylan Doran 818-836-1455
REGULATORY MATTERS |
SANCTIONS AND CIVIL PENALTIES Everything Oregon Dealers Need to Know 735-150-0110 – Dealer Offenses Subject to Civil Penalty or Sanction This contains some corrections to the rulings as well as additional information for clarity. In addition to any other penalties provided by law, a dealer will be subject to the civil penalties or sanctions in OAR 735-150-0120 to 0140 if the dealer: (1) Allows or assists a person who is not an employee of the dealer to imply or represent an affiliation with the vehicle dealership in order to engage in any activity pursuant to ORS 822.005. (2) Fails to submit all taxes or fees due this state or another jurisdiction in connection with the sale or transfer of a vehicle. (3) Signs a name or allows any other person to sign a name of the owner, security interest holder, or lessor on a certificate of title, salvage title or any motor vehicle document used by DMV in the transfer of title without first obtaining a properly signed power of attorney. This section does not apply to a dealer who as an owner, security interest holder or lessor signs their own name on a certificate of title, salvage title or any motor vehicle document used by DMV in the transfer of title. (4) Purchases, sells, disposes of or has in the dealer’s possession any vehicle the dealer knows or with reasonable diligence should have known has been stolen or appropriated without the consent of the owner. (5) Fails to comply with state or federal laws, rules or regulations pertaining to the construction or safety of motor
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homes, trailers or campers. (6) Buys, sells, receives, disposes of, conceals or has in the dealer’s possession any vehicle or component from which an identification number has been removed, defaced, covered, altered or destroyed for the purpose of concealing or misrepresenting the identity of the vehicle. (7) Violates any provision of state or federal law, rule or regulation concerning odometer tampering, repair, readings or notices. (8) Prints or produces or causes to be printed or produced any certificate of title or certificate of registration without authority, or holds or uses any such certificate or assignment knowing it has been printed or purchased without authority. (9) Commits any offense specified in ORS 822.045. (10) Acts as a vehicle dealer anytime between the day DMV receives notice of cancellation of bond or insurance and the day the vehicle dealer presents proof to DMV of another bond or certificate of insurance. (11) Issues a temporary registration permit to a person not domiciled in Oregon or who is otherwise not subject to or eligible for Oregon registration. (12) Fails to notify DMV on a form or in a format approved by DMV within seven calendar days of receipt of a vehicle in inventory that a vehicle has been transferred to the dealer. (13) Fails to immediately remove registration plates from vehicles registered in other jurisdictions that are in the dealer’s inventory. The dealer may retain the plates until the vehicle is sold. (14) Fails to destroy registration plates removed from vehicles registered in other jurisdictions at the time of sale if the vehicle is to be titled in Oregon or in a jurisdiction other than that
in which the vehicle was previously registered. If the vehicle will be re-registered in the former jurisdiction, the plates may be placed back on the vehicle following the sale. (15) Completes or allows an employee to complete a DMV Vehicle Identification Number Inspection form without physically inspecting the vehicle for its vehicle identification number. (16) Sells a vehicle of a type not authorized by the dealer’s certificate. (17) Fails to comply with any provision of ORS 822.060 through 822.065 concerning consignment sales. (18) Fails to comply with any provision of ORS 822.040(4) or OAR 735-150-0033 concerning the display of a vehicle at a location other than the dealer’s place of business for the purpose of advertising. (19) Provides brokerage services and fails: (A) To provide the written disclosure described in ORS 822.047(2): At the time of entering into an agreement to provide brokerage services, a motor vehicle broker shall provide the buyer or lessee with a written disclosure that includes: (a) A description of the specific brokerage services to be provided by the motor vehicle broker. (b) A description of the fees the motor vehicle broker will charge for the brokerage services and a description of any deposits that are required to be paid before the motor vehicle is delivered to the buyer or lessee. (c) A description of how the motor vehicle broker will charge and collect the fees and deposits described in paragraph (b) of this subsection; and (d) A statement of whether or not the motor vehicle broker is responsible for warranty service
work on the motor vehicle lessee to believe that the motor vehicle broker will be compensated by the seller or lessor for the transaction. (B) To provide the written statement described in ORS 822.047(3); or (3) In addition to the written disclosure required under subsection (2) of this section, a motor vehicle broker shall provide a statement to the buyer or lessee if the motor vehicle broker adds a fee for brokerage services to the purchase price or capitalized cost of the motor vehicle and the fee was negotiated with the seller or lessor on behalf of the buyer or lessee. The statement required under this subsection must: (a) Inform the buyer or lessee that fees for brokerage services have been added to the purchase price or capitalized cost. (b) State that the fees for brokerage services will be paid to the motor vehicle broker by the seller or lessor. (c) Be clear and conspicuous in not less than 14-point bold type. (C) To comply with the requirements for broker fees described in ORS 822.047(4). (4) A motor vehicle broker may not: (a) Calculate any fee charged to the buyer or lessee as a percentage of the savings achieved by the motor vehicle broker for the buyer or lessee on the purchase or lease of the motor vehicle. (b) Collect from both the buyer and seller or both the lessee and lessor a fee for brokerage services that are for the same transaction. (c) Represent that the motor vehicle broker is providing a free service to the buyer or lessee, unless the motor vehicle broker has not received and will not receive anycompensation
from the transaction. (d) If the fee for the brokerage services will be paid out of the proceeds of the purchase or lease, make any representation that could cause a buyer or lessee to believe that the motor vehicle broker will be compensated by the seller or lessor for the transaction. (20) Knowingly makes a false statement of material fact in: (a) An application for a dealer certificate, a dealer certificate renewal or attachments thereof. (b) An application to Correct Dealer/Rebuilder Vehicle Dealer Certificate (DMV Form 735-371). (c) Any investigation by DMV or law enforcement. (d) Any DMV document. (21) Commits a felony by violating ORS 822.605. (22) Fails to maintain records described in OAR 735150 0050(5) or fails to make those records available to DMV, law enforcement personnel or investigators of the Oregon Department of Justice upon their request. (23) Fails to comply with the requirements of the Oregon Vehicle Code with reference to notices or reports of the transfer of vehicles or campers. (24) Allows or permits the unlawful use of any certificate or registration plate. (25) Falsely certifies under ORS 822.033 that the dealer is exempt from filing a certificate of insurance as required by ORS 822.020 or 822.040. (26) Fails to maintain the insurance coverage described in OAR 735-150 0031(1). (27) Fails to pay a civil penalty assessed by DMV. Statutory/Other Authority: ORS 184.619, 802.010, 802.370, 803.600, 803.625, 821.060, 821.080 & 822.035 Statutes/Other Implemented: ORS 822.005- 822.080 735-150-0120 Sanctions (1) DMV may impose sanctions when it determines
a dealer has violated any provision of the Oregon Vehicle Code or rules adopted by DMV relating to: (a) The operation of a vehicle dealership. (b) Providing brokerage services. (c) Vehicle title and registration. (2) Sanctions imposed may be against any or all of the following: (a) A vehicle dealer’s certificate. (b) A dealer’s status as DMV’s agent. (c) An owner, partner, corporate officer or other principal of the dealership. (3) Factors DMV may consider in determining the sanctions to impose include: (a) The severity of a violation or its impact on the public. (b) The number of similar or related violations. (c) Whether a violation was willful or intentional. (d) The history of all sanctions, civil penalties and oral or written warnings issued or imposed by DMV against the dealer or principals of the dealership. (4) If DMV determines a sanction is warranted, the type of sanction imposed may include one or more of the following: (a) Probation under conditions set by DMV pertaining to the dealer’s authority to act as an agent of DMV for up to one year. (b) Suspension of the dealer’s authority to act as an agent of DMV for up to one year. (c) Permanent revocation of the dealer’s authority to act as an agent of DMV. (d) Probation under conditions set by DMV, for up to three years. (e) Probation of the dealer’s authority to use Electronic Vehicle Registration (EVR) under conditions set by DMV,
for up to one year. (f) Suspension of the dealer’s authority to use Electronic Vehicle Registration (EVR) and right to apply as an EVR dealer for up to three years. (g) Permanent revocation of the dealer’s authority to use Electronic Vehicle Registration (EVR). (h) Suspension of the dealer’s vehicle dealer certificate and the right to apply for a certificate for up to three years including the right to renew the certificate until the period of suspension has been served. (i) Permanent revocation of the dealer’s vehicle dealer certificate. (j) Cancellation of the dealer’s vehicle dealer certificate. (k) Suspension of the right of a principal of a dealership to apply for a vehicle dealer certificate for a different vehicle related business or in a different business name for up to three years. (l) Permanent revocation of the right of a principal of a dealership to apply for a vehicle dealer certificate for a different vehicle-related business or in a different business name. (m) Immediate suspension as provided in ORS 183.430(2). (n) For failure to comply with OAR 735-150-0110(27) concerning failure to pay a penalty assessed by DMV: • Suspension of the dealer’s vehicle dealer certificate and the right to apply for a certificate for a maximum of three years, including the right to renew the certificate or until the civil penalty is paid in full. • Suspension of the right of a principal of a vehicle dealership to apply for a
vehicle dealer certificate for a different vehicle related business or in a different business name for a maximum of three years or until the civil penalty is paid in full. (5) A dealer or principal whose vehicle dealer certificate or privileges have been placed on probation, suspended, canceled or revoked is entitled to a contested case hearing as provided in the Oregon Administrative Procedures Act under ORS 183.413 to 183.500. (6) Except as provided for in sections (7) and (8) of this rule, a dealer’s request for a hearing must be submitted in writing to, and received by DMV within 20 days of the date of the notice of penalty. A hearing request received in a timely manner will result in a withdrawal of the penalty, pending the outcome of the hearing. (7) In the instance of an immediate suspension as provided by ORS 183.430(2), a dealer’s request for a hearing must be submitted in writing to, and received by DMV, within 90 days of the date of notice of suspension. A hearing request received in a timely manner will not result in a withdrawal of the suspension, pending the outcome of the hearing. (8) In the instance of cancellation as provided by ORS 822.050(2) or (3) for failure to satisfy the bond or insurance requirements established by 822.030 and 822.033, a dealer’s request for a hearing must be submitted in writing to, and received by DMV within 90 days of the date of the notice of cancellation. A hearing request received in a timely manner will not result in a withdrawal of cancellation, pending the outcome of the hearing. (9) When a timely request for a hearing is not received, the dealer will have defaulted, waived the right to a hearing and DMV’s file will then constitute the record of the case. Statutory/Other Authority: ORS 183.430, 184.619, 802.010, 802.370, 803.600, 803.625, 821.060, 821.080 & 822.005 - 822.080 Statutes/Other Implemented: ORS 822.050. www.oiada.com
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MARKET WATCH | BY KENNETH SHILSON
WITH 2017 IN THE REARVIEW MIRROR, WHAT’S AHEAD? Insights from 2017 BHPH Benchmarks I recently completed the BHPH benchmarks for the 20th consecutive year. My sincere thanks to NIADA and its 20 Groups, SGC CPAs, NCM 20 Groups and Subprime Analytics for the portfolio performance information they contributed. Collectively their data and the narrative make this a very informative report. In the aggregate, these statistics provide a comprehensive look at the 2017 financial and operating performance of the BHPH industry, together with important trend information. It is a reference tool for operators, capital providers and others who are interested in the subprime auto finance marketplace. Here is an overview of the 2017 results and metrics: • The deep subprime market remained highly competitive in 2017 but some of that competition declined during the second half of the year and the first quarter of 2018. • Independent operators who did not match the auto bond securitization model involving newer, more costly vehicles, longer loan terms, and higher financing amounts fared better. • Increasing sales prices and amounts financed over longer repayment terms did not appear to work successfully for those who tried it.
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• Overall profitability improved in 2017 for operators who were proactive using social media and advance tax refunds, and who implemented technology to reduce their overhead costs and increase their efficiencies. • Rising interest rates and tighter capital availability forced operators to be more cash-efficient. That trend will continue in 2018 and beyond. Subprime customers are facing higher interest rates and gas prices. • The best performing business models were both profitable and cashefficient. • Bad debt losses and default rates increased as competition has diluted the overall quality of subprime customers during the past 36 months. • A new credit loss measurement standard will require operators to
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increase their allowance for credit losses and reduce their equity in their future financial statements. Prudent operators should prepare now for this change before they are required to report it in their financial statements. • Although vehicle acquisition prices stabilized during 2017, good subprime inventory remains in short supply, challenging to find and expensive. • Salvage values for repossessed vehicles that could not be retailed stabilized in 2017, but remain more than 50 percent lower than their values a few years ago. • Texting has replaced emails as the best way to connect with and collect from subprime customers. They all depend on their smartphones. At the NIADA/NABD Convention and Expo in Orlando, Fla., June 18- 21, I will take a deeper dive into these
benchmarks and discuss more about what worked and what didn’t, what’s ahead and what we have learned during the past 36 months. I will also discuss which business models are the most successful today. Copies of the benchmark report will be available at the conference and in the June issue of BHPH Dealer, a supplement of Used Car Dealer magazine. The retail side of the subprime used vehicle business is declining while BHPH offers some great new profit opportunities for those with the capital and right infrastructure. If you want to make 2018 better, come to Orlando and learn how to Rewrite your Playbook and become more successful in the subprime auto finance business. Good luck and see you in Orlando! Kenneth Shilson, CPA, (ken@kenshilson.com) is president of Subprime Analytics. Subprime Analytics uses data mining to perform computerized portfolio analysis for operators and capital providers. For further information call 832-767-4759.
DMV NEWS |
OREGON PLATE TRANSFER CHANGES
House Bill 4062 Amends Statute
The 2018 Legislature changed the requirements to transfer plates from one vehicle to another, effective July 1, 2018. House Bill 4062 amends statute to allow registration to transfer with a plate when registration plates transferred from one vehicle to another are owned by the same person. When registration plates are transferred from one vehicle to another not owned by the same person, the remaining registration on the plates ceases for both vehicles. New registration fees and all registration requirements must be submitted with the plate transfer. Both the vehicle the plates are transferred to and the vehicle the plates are transferred from will get a new expiration date valid from the date the new stickers are issued or the date a temporary registration is issued. A person or business is considered an “owner” of both vehicles involved in a plate transfer transaction when they are: • Listed as a current registered owner (or most recent previous registered owner) in DMV records for the vehicle the plates were removed from and they are applying for Oregon title for the
vehicle receiving the plates at the same time as the plate transfer. • Listed as a current registered owner (or most recent previous owner) in DMV records for both vehicles at the time of the plate transfer. If either of the vehicles involved in the plate transfer are owned by more than one person and/or business, at least one owner must be listed as a registered owner for both vehicles to transfer the registration with the plates. When a business is shown as the registered owner of a vehicle, the individual owner of the business is not eligible to transfer the registration with the plate unless they also appear as a registered owner of the vehicle. The following plate types are eligible for a plate transfer. For same owner plate transfers, the registration will transfer with the plates. • Amateur Radio Operator (HAM) • Antique • Bus • Camper • Charitable/Non-Profit • Congressional Medal of Honor • Disabled Veteran • Elected Official • Ex-POW • Farm • Fixed Load – Heavy/Light • Government/State/County • Heavy Trailer • Honorary Consul • Light Trailer
• Low-Speed Electric • Medium-Speed Electric • Moped • Motor Home • Motorcycle • National Guard • Passenger • School Bus/School Activity • Special Interest (SP plates only) • Special Use Trailer • Travel Trailer • Truck Currently, DMV does not require a valid DEQ certificate with any plate transfer unless the plate is being renewed at the time of transfer. Starting July 1, a DEQ emissions test certificate will be required with a new registration because the person transferring the plate is not the owner of the vehicle the plates were removed from or the plate being transferred is also being renewed. Currently, if a vehicle is in dealer inventory, a dealer can transfer the plates with the remaining registration from one vehicle to another vehicle in their inventory. Starting July 1, dealers can no longer transfer registration with the plates unless they are considered an “owner” of both vehicles for purposes of a plate transfer. For additional information on plate transfers, see Chapter K – Registration – of the Title and Registration Handbook. The title and registration handbook is online at www.oregon.gov/ODOT/ DMV/pages/dealers/titlereghndbk.aspx. DMV related questions may be directed to (503) 945-5000 or (503) 299-9999 (Portland Metro Area), or you can visit the DMV website at www.oregondmv.com.
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SOCIAL MEDIA | BY KATHI KRUSE
DON’T STEP ON A RAKE Avoid Social Media Pitfalls
For many dealers, social media seems like a minefield. Add the fact it's quickly matured into a very viable place to engage customers and promote sales and you've got a terrifying place many dealers would rather ignore.
Ignoring social media in today’s world is the equivalent of opening a store without telling anyone. But all the warnings in the world are not going to motivate a dealer to take action if they still have a lot of fear. I'd like to alleviate some of that fear today. Avoiding social media pitfalls has become a big business. It's difficult to know where to turn for the best advice. For nearly 10 years now, I've been singing the “social media song” and, alas, the needle hasn't moved much, especially for auto retail. You know what? That's okay. It's perfectly fine to venture out into social media at your own pace. What I don't want you to do is venture out and step on a rake.
5 FOUNDATION ESSENTIALS FOR SOCIAL MEDIA SUCCESS
Whether you're new to social media or you've been using it for some time, these five components will help you leverage all you can from each platform.
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Secure Your Reputation with a Social Media Policy
At Kruse Control, we advocate implementing an upto-date policy for employee use of social media. The line between dealers and their employees on social media is steadily blurring. Organizations today need a social media policy that helps keep the store’s reputation intact while also encouraging employee participation online. A social media policy outlines how an organization and its employees should conduct themselves online. This document helps safeguard your brand’s reputation. Ideally, you'll want to consult with the following stakeholders when creating a social media policy for your store: • C-level (owners and managers). • Human Resources. • Corporate counsel. • Social media strategist. Because social media moves fast, this policy should be considered a living document – ongoing updates will be necessary.
Written Social Media Strategy
Social media strategy defines how a dealership will use social media to achieve its business goals, including the supporting platforms and tools it will use to do so. At a basic level, it’s a statement of intent, outlining the goals and measurable objectives for using social media, and the target outcomes you want to achieve.
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When defining what it takes to achieve social media success, we need to talk about strategy first. I was inspired to include this component because I receive questions like these from good people, many of whom are struggling to find answers: • “Do I have to be on every social network?” • “What type of things do I say on social media?” • “How often should I post?” • “How do I get more followers?” • “My boss asked me to take over the Facebook page, but where do I start?” • “Should I pay for social advertising?” • “I'm in a boring industry. Do I still need social media?” • “Do I need social media management tools?” • “Should I outsource my social media?” I've had a run of these emails lately and, frankly, my heart aches for these good people because they're lost. It's easy to get lost these days because the social media landscape is no longer a field of flowers sparsely populated. Today, social media is a dense, crowded, noisy, smoggy urban jungle.
Do a Social Media Audit
Whether your social media marketing is in-house or outsourced, it’s often difficult to see where the gaps are between your current successes and where you need to be. Your inbox is full of tips, tools and hacks to “improve” results and it’s exhausting. The best way to remove the guesswork is with a social media audit. A social media audit is a smart step because time and resources are often wasted trying to improve things that don’t need improving, while neglecting the things that really need attention.
Build an Online Review Funnel
Word of mouth referrals have always been a go-to resource for finding trusted sellers, and online ratings sites are where most people turn today.
Online reviews are insanely influential: • 90 percent of consumers read online reviews. • 88 percent trust online reviews as much as personal recommendations. • 86 percent will hesitate to purchase from a business that has negative reviews. • Customers are likely to spend 31 percent more with a business that has positive reviews. • 92 percent will use a local business if it has at least a 4-star rating. Benefits of building an online review funnel: 1. Systematically drive customers to one conversion funnel that routes them to the review sites you care about. 2. Automatically ask, remind and guide happy customers through the funnel. 3. Recover unhappy customers before they vent online. 4. Analyze results daily for actionable insights to improve upon.
Engage with Social Customer Service
People increasingly turn to social media to engage with businesses. Social has matured as a communication channel and people have blended it into their lives. They expect dealers to do the same. While many companies now use social media regularly, very few take social customer service seriously. Currently, 92.5 percent of brands fail to meet customer expectations on social media and these failures can have big implications. Quality customer service – regardless of channel – relies on a meaningful, efficient, solution-focused exchange between dealers and their customers. The growing preference for social media as a communication channel requires your organization to re-think its customer service strategy. Good social customer service strategy keeps your store in the conversation and doesn't allow malcontents and competitors to speak for you.
Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc., which coaches, trains and delivers webinars focused on integrating social media and online reputation management into dealership operations. She can be reached at kathi@krusecontrolinc.com.
DEALER PERSPECTIVE | BY JIM WEAVER, CREDIT UNION AUTO BROKERS
SMALL DEALERS BEWARE Planning For
in and payoff forms. We then sold the new vehicle and sent the buyer down the road back to Seattle. The next day we sent the payoff check to the credit union. Within a few days, I received a call from the credit union telling me it would be about eight weeks before we see a title because A Title Transfer it was a Washington paperless title. I recently had an Having encountered this experience I wanted to share with you dealers. It’s probably once before, I went to the credit union, got a release more of an issue for small from them, and headed to the dealers. Washington DMV office with We took a Washington vehicle in on trade that had a all my paperwork, thinking I would have to pay $80 loan through a credit union in Washington. We called and but be able to get an instant title. This was not the case! got the official payoff. The vehicle was something out of Without a notarized release of ownership from the seller, our normal purchase range Washington DMV will not so we wholesaled it off to give a quick title. My only another dealer. options were to track down In taking the vehicle in the owners who traded the trade, we had the seller sign car in, who live near Seattle, all the normal Oregon trade-
and get them both to sign a notarized release or wait the eight weeks. Now I probably could have driven up and found the owners, but so many things could go wrong in that scenario. We decided to let the credit union coordinate getting the title and have it forwarded to us. Moral of the story: If you’re a small dealer like us, you might not have a notary on site so you might plan ahead because if you want to get title quicker you need to get the notarized release. Washington actually has a specific form. Or you can simply plan to wait. Since we use our own money, we were out a sizable amount of our working capital for almost two months, which is not a good thing.
ASSOCIATION NEWS |
OIADA PAST PRESIDENT TO SERVE ON ODAC Congratulations to Jose Pinomesa Congratulations to new ODAC appointee Jose Pinomesa of Jose Mesa Auto Wholesale LLC. Jose will be filling a vacancy and serving
as a dealer representative for the used car industry. The Oregon Dealer Advisory Council was formed by DMV to represent the new,
used, power sport, RV, towing, wrecking and rental vehicles in Oregon. Meetings are held once a quarter in at the admin offices in Salem.
SAFETY WATCH | BY JIM WEAVER, CREDIT UNION AUTO BROKERS
HYUNDAI RECALLS SONATAS FOR SEAT BELTS, AIRBAGS Expanded Recall Hyundai Motor America is recalling 580,058 2011-13 Sonata and 2011-12 Sonata Hybrid vehicles. On Feb. 27, Hyundai notified NHTSA they were recalling 154,753 model year 2011 Sonata vehicles. On April 18, Hyundai expanded
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the recall to include an additional 425,305 model year 2012-13 Sonata and 2011-12 Sonata Hybrid vehicles. In the event of a crash, the air bag control unit (ACU) may short circuit,
preventing the frontal air bags, seat belt pretensioners, and side air bags from deploying. The remedy for this recall is still under development. The recall began on April 20. Hyundai’s number for this recall is 174.
REGULATORY NEWS | BY OREGON DEPARTMENT OF REVENUE
OREGON VEHICLE PRIVILEGE AND USE TAXES
QUARTERLY FILING DUE DATES QUARTER
QUARTER ENDING DATE
DUE DATE
1ST — JAN-FEB-MAR 2ND — APR-MAY-JUN 3RD — JUL-AUG-SEP 4TH — OCT-NOV-DEC
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31
APRIL 30 JULY 31 OCTOBER 31 JANUARY 31
If due date is a weekend or holiday, the return is due the next business day. There is a 5 percent penalty if you don’t pay by the due date. A 20 percent penalty is charged if you don’t file a return within 30 days of the due date. Interest is added to any unpaid tax and calculated from the time the tax becomes due.
Important Information
The 2017 Oregon Legislature passed House Bill 2017, which included two new vehicle taxes. The vehicle privilege tax is a tax for the privilege of selling new vehicles in Oregon. The vehicle use tax applies to Oregon residents and businesses that purchase vehicles outside of Oregon. Effective January 1, 2018, 0.5 of 1 percent will be due on the retail price of any new taxable vehicles.
IMPORTANT INFORMATION
Supreme Court Appeal and Taxes Due An appeal was filed with the Oregon Supreme Court challenging the distribution of the vehicle privilege tax, but the tax is still in effect pending that decision. The filing of this appeal doesn’t change your obligation to report and remit the privilege or use tax quarterly. Leased Vehicles The privilege and use taxes apply to sale of vehicles to lessors. The tax is calculated based on the retail sales price paid by the lessor to the dealer. Trailers and Recreational Vehicles The privilege and use taxes apply to sales of new trailers to Oregon residents or businesses, regardless of whether the trailer is required to be registered with the Oregon Driver and Motor Vehicle Services Division. These taxes also apply to sales of new recreational vehicles, including travel trailers
and fifth-wheels. The full list of vehicles whose sales are subject to the privilege and use taxes is available below. Vehicles Without Odometers A vehicle that doesn’t have an odometer, but does have a manufacturer’s certificate of origin (MCO) is a “new motor vehicle.” Temporary Administrative Rules Temporary rules for the vehicle privilege and vehicle use tax were adopted and effective as of January 1, 2018.
ABOUT THE NEW TAXES
What’s subject to the vehicle privilege or use tax? Taxable sales are those of vehicles with 7,500 miles or less and a gross vehicle weight rating of 26,000 lbs. or less, and haven’t been titled in Oregon. This includes: • Vehicles other than allterrain vehicles (ORS 744.850) • Bus trailers (ORS 801.165) • Campers (ORS 801.180) • Commercial buses (ORS 801.200). • Commercial motor vehicles (ORS 801.208) • Commercial vehicles (ORS 801.210) • Electric-assisted bicycles (ORS 801.258) • Fixed-load vehicles (ORS 801.285) • Mopeds (ORS 801.345) • Motor-assisted scooters (ORS 801.348) • Motor homes (ORS 801.350) • Motor trucks (ORS 801.355) • Tank vehicles (ORS 801.522)
• Truck tractors and trailers (ORS 801.575 and 801.580) • Worker transport buses (ORS 801.610) Vehicle Privilege Tax Vehicle dealers in Oregon are responsible for paying the vehicle privilege tax on the sale price of each new vehicle sold. Dealers may collect the amount of the tax from the purchaser in the same manner and at the same time as the collection of document processing fees. What isn’t subject to the vehicle privilege or use tax? • Vehicle sales to purchasers who aren’t residents of Oregon. • Sales of vehicles to a business where the primary storage, use, or other consumption of the vehicle will be outside of Oregon. • Sales of vehicles at an event of fewer than seven consecutive days for which the public is charged admission and where vehicles are sold at auction. • Vehicle sales for which the seller takes a resale certificate from a purchaser who is ordinarily engaged in the business of selling vehicles. Registration Instructions Make sure you register with us before your first return and payment are due. You can’t file or pay without being registered for a vehicle privilege tax account. Once you’re registered and you have a Revenue Online account, you’ll be able to view and
manage your vehicle privilege account electronically. To register, go to revenueonline.dor.oregon.gov/ tap/_/ and click on “Register for transportation taxes” in the Quick Links. You’ll need the following information to complete the registration process. • For the tax entity you’re registering: o Name. o Federal identifier [federal employer identification number (FEIN), Social Security number (SSN), or individual taxpayer identification number (ITIN)]. o Mailing address. • For all company owners and officers: o Name. o Federal identifier (FEIN, SSN, or ITIN). o Mailing address. • The date you started making taxable sales, if it was after January 1, 2018 (the date the tax went into effect). • A valid email address or your Revenue Online account login, if you already have one. If you need help with the registration process or have any questions, please contact us at spa.help@oregon.gov or (503) 945-8120. Returns and Payments Returns and payments are due on or before the last day of the month following the end of each quarter. Revenue Online provides convenient tools for managing your account, including electronic return filing and payment options.
www.oiada.com
June 2018
OIADA
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OIADA CONTINUING EDUCATION PROGRAM |
OIADA CONTINUING E D U C AT I O N P R O G R A M
READ & RESPOND CERTIFY BELOW
Complete this test and certify below that you have read the articles for June 2018. “SANCTIONS AND CIVIL PENALTIES” True/False: In addition to any other penalties provided by law, a dealer will be subject to the civil penalties or sanctions in OAR 735-150-0120 to 0140 if the dealer sells a vehicle of a type not authorized by the dealer’s certificate. True/False: DMV may impose sanctions when it determines a dealer has violated any provision of the Oregon Vehicle Code or rules adopted by DMV relating to providing brokerage services. “OREGON PLATE TRANSFER CHANGES” Which of the following plate types are eligible for a plate transfer? a) Bus. b) Elected official. c) Disabled veteran. d) All of the above.
True/False: Starting July 1, dealers can no longer transfer registration with the plates unless they are considered an “owner” of both vehicles for purposes of a plate transfer. “DON’T STEP ON A RAKE” Which component can help you leverage all you can from each social media platform? a) Written social media strategy. b) Social media policy. c) Online review funnel. d) All the above. “OREGON VEHICLE PRIVILEGE AND USE TAXES” True/False: A vehicle that doesn’t have an odometer, but does have a manufacturer’s certificate of origin (MCO) is a “new motor vehicle.”
True/False: Sales of vehicles to a business where the primary storage, use, or other consumption of the vehicle will be outside of Oregon are not subject to the vehicle privilege or use tax. I certify to OIADA that I have personally read these articles in the Oregon Dealer News magazine for June 2018. STOP!! Before you sign and send this form, make sure you have answered and completed all the quiz questions to receive Continued Education Credits.
MARK YOUR CALENDARS
2018 OIADA Convention October 20, 2017 Monarch Hotel, Clackamas REGISTRATION MEMBERS $100 NON-MEMBERS $150 ONCE AGAIN WE WILL PACK A FULL DAY WITH: 6 HOURS OF CE CREDITS GREAT GUEST SPEAKERS GENERAL MEMBERSHIP MEETING TRADESHOW OIADA’S QUALITY DEALER OF THE YEAR AWARD MEALS
My Name ____________________________________________________________
LIVE AUCTION
____________________________________________________________________
SCHOLARSHIP AWARD
Dealership Name ______________________________________________________ Dealership # __________________________________________________________ Dealer License Expiration Date: (Month)_____________________________________ (Year)________________ Signed: _________________________________________ Date _________________________________________________________________
FAX TO: 503-364-7331 MAIL TO OIADA at 9150 SW Pioneer Ct Ste H, Wilsonville, OR 97070
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OIADA
June 2018
www.oiada.com
SPONSORSHIPS AVAILABLE FOR MANY AREAS AND AT DIFFERENT LEVELS. TRADESHOW BOOTH RESERVATIONS TAKEN NOW. SPACE WILL BE LIMITED AND IS AVAILABLE ON A FIRST COME BASIS.
CONTACT OIADA FOR MORE INFORMATION 503-362-6839 . DSPARKS@OIADA.COM