Oregon Dealer News by NIADA

THE OFFICIAL MAGAZINE OF OREGON IADA

DEALER REPRESENTING ALL AUTO, TRUCK, TRAILER, RV AND

2 0 18

SEPTEMBER 2018

NEWS POWER SPORT DEALERS OF OREGON

A N N U A L

O I A D A Convention MONARCH HOTEL OCTOBER 20, 2018

6 HOURS OF CONTINUING EDUCATION TRADE SHOW•QUALITY DEALER AWARD LIVE BENEFIT AUCTION•MEALS AND COCKTAILS

*See registration form inside this issue. Page 14

DALLAS, TEXAS Permit No. 2079

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REGULATORY MATTERS

VEHICLE DEALER CERTIFICATION

Requirements for Exemption

735-150-0020 Exemptions from Vehicle Dealer Certification Requirement (1) A person who rents or leases space to a vehicle dealer who holds a current valid certificate is not a dealer as defined in OAR 735-150-0010. (2) The following apply where there is a formal display of vehicles, such as an auto show, by a group of dealers for a period 10 days or less: (a) Except as otherwise provided in this section and ORS 822.015(3), a dealer participating in a display must either be a certified vehicle dealer or a manufacturer of vehicles not engaged in sales to the public. (b) A person who only rents or leases space to a participating dealer does not need a vehicle dealer certificate. (c) A certified vehicle dealer does not need a supplemental certificate. (d) This section does not apply to RV shows held in accordance with OAR 735-150-0045. (3) The exemption in ORS 822.015(1)(b) will be narrowly construed to exempt from dealer regulatory requirements only those persons who engage in buying, selling or exchanging vehicles as a mere incident to their personal

BHPH MATTERS | By Scott Bates, CPA

BHPH BUDGET AND EXPENSE OVERSIGHT

Plan to Increase Profitably

The tried and true formula to increase profitability is to either increase revenue or reduce expenses. Is your dealership as profitable as it could be? Is there room to improve your BHPH budget? How do you know? You could compare your dealership to other BHPH dealers and against industry benchmarks. If you discover you are receiving less gross profit per car than the industry benchmarks, you may be leaving money on the table. It could be time to reassess your plan, or your plans. BHPH dealers need several plans to oversee their budgets because it is a very cashintensive business. Your plans should include: • Six to 12 month revenue plan. • Expense plan. • Profit plan. • Cash flow plan. In your cash flow, for example, if you are

ownership and use of those vehicles. This includes a business or corporate entity that holds such vehicles primarily for its own transportation needs, but not primarily for sale or exchange. No person may apply for certificates of title for the purpose of avoiding dealer regulatory requirements while dealing in vehicles. (4) A person is not a rebuilder if that person: (a) Is an employee of a certified vehicle dealer; or (b) Is engaged solely in the repair of damaged vehicles at the request of the registered owner(s) of the vehicle(s). (5) An employee of a dealer as defined in 735-150-0010 is not required to have a separate dealer certificate to buy or sell vehicles on behalf of his or her employer. (6) A certified vehicle dealer does not need a supplemental certificate for the location of an estate auction conducted by the dealer. This exemption applies when all the following conditions exist: (a) Vehicles sold at the estate auction are consigned to the dealer. (b) Vehicles are sold on the basis of the highest bid or most favorable offer. If a reserve is set prior to the start of the estate auction, vehicles are not required to be sold if the reserve is not reached. (c) The estate auction does not exceed three consecutive days. (d) The dealer does not own the property where the estate auction is conducted. If the dealer rents or leases the property where the estate auction is conducted, the rent/lease

budgeting for a $1,500 average down payment but are really averaging $700, you will run out of money to buy more cars. If you are budgeting your expenses based on this cash flow, your budget will quickly be off. In your revenue plan, are you projecting net new account growth or is it going to shrink? The more mature a portfolio gets, the harder it is to attain new growth (e.g. 20 paid off, 20 charged off, 40 loans a month = zero growth). Some dealers choose to chase aggressive sales without considering if the deal is a good one to put on the books. Charge-offs will eat up profitability more than any other expense, and it is usually a self-inflicted expense due to poor deal structures and underwriting. Poor deal structures and underwriting sometimes stem from a lack of training for staff. Dealers should consider staffing and proper training as investments in gross profit rather than as expenses. Too few or untrained staff leads to shortcuts and mistakes. As you gain productivity from staff and consistency in deal documentation and communication, you can increase your gross profit per sale. Plan your expenses in advance as you do your revenue projections. You should know your expense per car sold, including closing and underwriting costs, staffing, service and follow-up care and collections. Scott Bates is an assurance and business services partner for Cornwell Jackson. He supports the firm’s auto dealership practice. Contact Scott at scott.bates@ cornwelljackson.com or 972-202-8000.

period must not exceed three consecutive days. If the estate auction starts online, all vehicles offered for bid must be located on the property where the physical estate auction will occur, and that property must be readily identified on the online site. (7) For the purpose of subsection (6)(c) and (d) of this rule, an estate auction starts: (a) When the auctioneer or bid caller initiates the sale of the first lot of the auction by describing the item and starting the bidding; (b) A timer is started indicating a lot is available for bidding; or (c) Any other indicator initiating the start of bidding on a lot offered for sale. (8) An absentee bid, pre-bid, or similar bid occurring before the start of the estate auction, as defined in section (7) of this rule, starts an estate auction if the bid price is made available for other potential bidders to view or hear. (9) For the purpose of subsection (6)(c) of this rule, an estate auction ends when: (a) The auctioneer’s hammer or gavel falls, the timer runs to zero, an auctioneer announces the item sold or alternative action indicating an end to the bidding of the last item to be auctioned; or (b) There are no lots offered for sale after the end of the estate auction, as described in subsection (9)(a) of this section, when the lot did not meet the reserve during the estate auction. Statutory/Other Authority: ORS 184.619, 802.010, 822.015 & 822.035 Statutes/Other Implemented: ORS 822.015 and 822.035

SAFETY WATCH |

GM RECALLS MALIBUS

Service Error Affects Air Bags

General Motors LLC is recalling 66 2016-18 Chevrolet Malibu vehicles. During servicing, a passenger presence system may have been installed that was not correctly calibrated to the vehicle’s seat type. As a result, the PPS may not properly identify an adult passenger from a child passenger in the front passenger seat, potentially causing the air bag to not deploy when it should, or causing the air bag to deploy when it shouldn’t. GM will notify owners, and dealers will replace the front passenger PPS seat service kit, free of charge. The manufacturer has not yet provided a notification schedule. GM’s number for this recall is 18208. www.oiada.com

September 2018

OIADA

INSIDE

THE OFFICIAL MAGAZINE OF OREGON IADA

DEALER

NEWS

03..................................................Vehicle Dealer Certification 03.................................BHPH Budget and Expense Oversight 06................................................... Dealer Handbook Updates 07..........................................The Facebook “Secret Formula” 08....................................................................Hardship Permit 12................................................Saved Time Is Made Money

WHAT’S NEW

National Policy Conference The 2018 National Policy Conference will be held September 24-26 at the Ritz-Carlton Pentagon City. Make plans now to join NIADA in Washington, D.C. as we meet legislators face-to-face to make your voice heard! Learn more and register today at niadapolicyconference.com.

ADVERTISERS INDEX

ADESA .....................................................................................5 DAA Northwest/Seattle.......................................................IFC Manheim ................................................................................ 11 Manheim Portland ...................................................Back Cover NextGear Capital......................................................................8 vAuto ................................................................................... IBC

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

OFFICE

Oregon Independent Auto Dealers Association 9150 SW Pioneer Ct Ste. H Wilsonville, OR 97070 800-447-0302

NIADA HEADQUARTERS

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. 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.

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 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

Credit Acceptance John Bragg 360-980-2214

OIADA BOARD OF DIRECTORS President Siamak Lotfi

Executive Vice President Jim Weaver

STATE MAGAZINE MGR./SALES

Troy Graff • troy@niada.com EDITORS

Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com

1st Vice President Gary Brooks

MAGAZINE LAYOUT

Christy Haynes • christy@niada.com PRINTING

Secretary/Treasurer Salvador Alvarez Herrera Zamora Auto Sales

Nieman Printing

Chairman of the Board Gary Sargent

OIADA September 2018

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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 NW Glenn Wheeler 678-735-0341 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

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

PRODUCTS & SERVICES

TRADEREV PARTNERS TO PROVIDE FREE VEHICLE TRANSPORT

Cross-Country Promotion Dealers buying on TradeRev from sellers in certain states can now make the most of free vehicle transportation. TradeRev and fellow KAR Auction Services business unit CarsArrive Network have teamed up to run a cross-country promotion that gives buyers from sellers in qualifying states free TradeRev vehicle transportation. In a part of the program that started July 1, dealers buying from sellers in New York, New Jersey and Pennsylvania can take advantage of the aforementioned promotion until Sept. 30. Meanwhile, dealers buying from sellers in qualifying western states can get free vehicle transportation up to Dec. 31. The new promotion’s qualifying western states include Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming. “TradeRev is committed to making the buying and selling of automotive inventory as fast, fair and easy as possible for dealers,” TradeRev president and KAR chief legal officer Becca Polak. “Dealers want seamless purchasing options at a value.” Polak said, “By tapping into KAR’s resources, this partnership with CarsArrive helps sellers reach a broader group of buyers and helps buyers expand their purchasing market area far beyond local at no additional cost.”

DMV NEWS | By Dave Adams

DEALER HANDBOOK UPDATES

Latest Revisions

The May 2018 revision of the Title and Registration Handbook is available to view, print or copy at DMV’s website, www.OregonDMV.com. This revision updates the February 2018 Handbook. The handbook is typically updated quarterly. The next revision is scheduled for August 2018. You may buy a printed copy from: Oregon Independent Auto Dealers Association (OIADA) 1-800- 447-0302 info@OIADA.com www.oiada.com Changes in the May 2018 Handbook revision are as follows: Cover Page: The cover page reflects the latest revision date of 05-18. Chapter B, Application for Title and Registration, Form 226: The Application for Title and Registration, Form 226, has been replaced with the latest revision dated 1-18. Chapter C, Application for Replacement Title, Form 735-515: The Application for Replacement Title, Form 515, has been replaced with the latest revision dated 1-18. Chapter D, Miscellaneous Title Application Information: The Third Party Authorization to Pick up a Dealer Expedite Title, Form 7287, has been replaced with the latest revision dated 2-18. Chapter G, Operation of Law & Trusts: DMV possessory lien foreclosure forms submitted with a transaction must be the version in effect at the time the lien was foreclosed or be the form in effect at the time of application. Chapter J, Damaged/Totaled Vehicles: The Stolen Vehicle Notification, Form 6927, has been replaced with the latest revision dated 1-18. Chapter K, Registration: •P acific Wonderland plates no longer have a limit of 80,000 plates as a result of 2018 legislation. •D EQ Newer Model Year information was updated showing the calendar year of 2018. • I f the registration is expired, collect the full registration fees to transfer the plate. If the registration may expire prior to DMV processing the transaction, consider suggesting to the customer they renew the registration. • The Custom Plate Application, Form 205, has been replaced with the latest revision dated 2-18. The Application for Amateur Radio Operator Registration Plates, Form 231, was replaced with the latest revision dated 1-18. •W ashington County registration

OIADA September 2018

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information has been added to the chapter. If collecting registration fees for a vehicle with a registration period that starts on or after July 1, 2018, the additional Washington County registration fee must be collected regardless of the transaction date. If collecting registration fees for a vehicle with a registration period that starts before July 1, 2018, only collect the current state registration fee. Chapter L, Vehicle Types: Volumetric mixers are not considered fixed loads. Chapter M, Fees: Washington County registration information has been added to the chapter. If collecting registration fees for a vehicle with a registration period that starts on or after July 1, 2018, the additional Washington County registration fee must be collected regardless of the transaction date. If collecting registration fees for a vehicle with a registration period that starts before July 1, 2018, only collect the current state registration fee. Chapter R, Dealers: Trailers are subject to the privilege tax. DMV will work with the Department of Revenue to clarify which trailers may be exempt and provide that in the next Handbook update. Updates in July Changes in the July 2018 Handbook are as follows. Cover Page: The cover page reflects the latest revision date of 07-18. Chapter K, Registration: House Bill 4062, 2018, 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. Chapter M, Fees: The following forms have been replaced with the latest revision, dated 7-18. These forms now include the Washington County registration fee information: • Heavy Motor Vehicles and Buses Fee Schedule, Form 6013. • Manufactured Structure Toters Fee Schedule, Form 153T. • Charitable/Non-Profit Fee Schedule, Form 153. • Tow/Recovery Vehicles Fee Schedule, Form 148. Chapter N, Model, Makes, & Body Styles: This chapter has been revised to include additional vehicle make abbreviations.

AUCTION NEWS |

MANHEIM AUCTIONS RAISE FUNDS FOR THE RED CROSS

Vehicles to Expand Emergency Response Fleet

As a result of the exceptional fundraising results by Manheim Statesville and Manheim Seattle in the “Race to Give” program last year, Remarketing by Element donated an emergency response vehicle on each location’s behalf to their local Red Cross chapters. On behalf of Manheim Statesville, Remarketing by Element is donating a 2015 Chevrolet Malibu to the Red Cross’ Greater Carolinas Region while donating a 2015 Ford Escape to the Northwest Region on behalf of Manheim Seattle. These vehicles will expand the organization’s emergency response fleet, which is used to deliver supplies and services to those impacted by disasters. Remarketing by Element teamed up with Manheim last year on the nationwide promotion to recognize wholesale auto auction operators for outstanding community relations activities. For the “Race to Give” program, Manheim locations across the country held several fundraising activities in a friendly competition, with the winners earning the honor of donating a vehicle, which was provided by Remarketing by Element. Manheim Statesville supported the Red Cross with a blood drive, a hurricane relief fundraiser and donations of winter survival kits, smoke and carbon monoxide alarms, and school supplies distributed to students at 40 Iredell-Statesville schools. Manheim Seattle held its sixth annual volunteer-driven charity auction with items provided by employees, vendors and clients. The event raised over $32,000 for the Northwest Regional Headquarters of the American Red Cross.

SOCIAL MEDIA | By Kathi Kruse

SAFETY WATCH |

THE FACEBOOK “SECRET FORMULA” TO GET MORE CUSTOMERS

GM RECALLS MALIBUS

Three Crucial Steps

It’s a lot easier to sell to people who know you. Over the years, Facebook has been a conduit for dealers and their customers to connect. However, as important as it is in the digital marketing process, connecting doesn’t always equate to more sales. Dealers must make their “connecting” count. There’s a solution that seems to elude a lot of vendors in the social media space. They sell you on the buzzwords but then deliver stingy results. Real results take a proven formula with the right key performance indicators to guide you along the path. The Facebook “secret formula” I use to get more customers has three separate and distinct steps: 1. Attract. 2. Engage. 3. Convert. Each of these three steps contains specific tactics that guide in-market buyers through your sales funnel and into your showroom. Before we get into the formula, it’s important to point out it’s easy to waste time on Facebook. So, no matter what your business goals may be, it’s crucial to start with a solid Facebook marketing strategy (i.e.: what do we want to achieve and how will we get there?). Facebook has become a sprawling urban jungle and it’s easy to get lost in the brush without a plan. THE FACEBOOK “SECRET FORMULA” Attract. Attracting buyers in this highly competitive online landscape requires a deep understanding of your target market. To attract your ideal customers, you must know who they are first! Identify who your target customers are, what they care about, and what influences their purchase decisions. You’ll start with your market area as a base point and then determine the attributes of your ideal customer – income range, credit worthiness, model of vehicles they purchase, etc. Once you determine the audience you want to reach, you can then begin to design content for Facebook posts and ads. It’s widely known consumers purchase from dealers they know, like and trust. Facebook marketing allows you to consistently add value to your target customers’ lives through relevant information, expert tips and insights, entertaining/creative content, and specials offers and discounts. Engage. Engagement drives everything on social media and here’s where many dealers fall flat. They struggle with knowing what to do with

Service Error Affects Air Bags their fans once they become connected. Fact: You really do need to be social on social media. To be social, you need a human. The first step is to choose someone who can easily speak for you online, manage your ads and your content, answer Facebook Messenger inquiries, etc. To engage successfully, create a “content strategy” that showcases your store and your personality. Post content and regularly review your results – then continue to post the types of content your target customers need and want. Don’t worry about being all things to all people. Focus on genuinely engaging customers and inspiring them to take action. Convert. The unique value of social media is its strength to attract and engage those customers who will most likely buy from you. Selling to people who actually want to hear from you is far more effective than interrupting strangers who don’t. Your targeted content informs, educates and entertains. The next step in the secret formula is to deliver just the right offer (and value) that helps your customers finalize their purchase decision. Once you’ve decided on the offers you want to extend, use Facebook ads to promote them. Facebook ads have become the single most important way to be seen on social media. Pro tip: Ad targeting is a highly-prized skill. If you advertise to people who don’t know you, there’s a wall that needs to be scaled, and without a large budget that’s a tall order. Use Facebook ad targeting to bring in-market buyers closer to you so their decision is easier. Bonus Secret: Retain Social media is your secret weapon in customer service. 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 a dealership and its customers. The growing preference for social media as a preferred communication channel requires a “re-thinking” of your customer service strategy. Stakes are high, and sloppy customer care is not a risk any modern dealer can afford to take. Wrapping it All Up Facebook is where your customers spend their time. Take advantage of my “secret formula” to explore the opportunities for your organization. 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.

INDUSTRY NEWS |

ROUTEONE WELCOMES C&F FINANCE

Growing List of Available eContracting Finance Sources

C&F Finance Company is now an available eContracting finance source for dealers utilizing the RouteOne platform. eContracting enables the digital exchange of critical contract documents and data between dealers and finance sources to increase efficiency and reduce contracts in transit. RouteOne is the industry leader in eContracting, booking more than 10 million eContracts to date. RouteOne has over 7,200 active eContracting dealers and 50-plus finance sources in its rapidly growing eContracting customer base. C&F Finance is a leader in indirect auto financing, headquartered in Richmond, Virginia, and providing automobile loans in multiple states throughout the U.S. C&F benefited from a streamlined technical implementation process due to the eContracting certification their loan origination system, defiSOLUTIONS, had previously undergone with RouteOne. “We strive to continually deliver our customers solutions that streamline and solve challenges in the auto finance industry,” said RouteOne chief operating officer Brad Rogers. “eContracting is a solution that benefits all parties involved: dealer, finance source, and consumer. C&F Finance is a welcome addition to our eContracting platform and we are pleased to offer their services to our dealer base.” Dealers interested in eContracting should contact their RouteOne business development manager at 866.768.8301 or www.routeone.com/salesteam. www.oiada.com

September 2018

OIADA

REGULATORY MATTERS

HARDSHIP PERMIT

Definitions and Requirements 735-064-0005 Definitions As used in Division 64 rules, unless the context requires otherwise: (1) “DMV” means the Driver and Motor Vehicle Services Division of the Oregon Department of Transportation. (2) “DUII” means driving under the influence of intoxicants. (3) “Fee” means an amount described in ORS 807.370. (4) “IID” means ignition interlock device. (5) “Intoxicants” means intoxicating liquor, cannabis, a controlled substance, an inhalant or any combination of the four. (6) “Immediate family” means the applicant’s spouse or partner in a domestic partnership, children, stepchildren, brother, sister, mother, father, mother-in-law, fatherin-law, grandmother or grandfather. (7) “Oregon resident” means a person who is domiciled in this state as defined by ORS 803.355 or is a resident of this state as defined by ORS 807.062(4) and (5). (8) “Private transportation” means family members, friends or fellow employees who are able to serve the applicant’s transportation needs. (9) “Public transportation” means bus, shuttle or commuter service that is able to serve the applicant’s transportation needs. Statutory/Other Authority: ORS 184.619, 802.010, 807.240 & 807.270 Statutes/Other Implemented: ORS 807.240, 807.270 & 813.520 735-064-0040 Application Requirements for a Hardship Permit (1) An Oregon resident whose driving privileges are suspended, or revoked under ORS 809.600 as a habitual offender, may apply for a hardship permit. DMV may not issue a hardship permit when: (a) DMV is prohibited by law from issuing a hardship permit. (b) The suspension of the person’s driving privileges is ordered under ORS 809.419 whereby the person is unable to demonstrate the person is not incompetent to drive because of a mental or physical condition or impairment that affects the person’s ability to safely operate a motor vehicle. (c) The suspension is an immediate suspension of the person’s driving privileges ordered under ORS 809.417(3)(c) for causing or contributing to an accident resulting in death while operating a motor vehicle. When DMV has

OIADA September 2018

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reason to believe the person may endanger people or property if the person’s driving privileges are not immediately suspended, a condition of the immediate suspension is that the person may not be issued a hardship permit. (2) Documents required to obtain a hardship permit depend on the reason(s) for the suspension or revocation. An applicant must comply with any sections of this rule that apply to the applicant’s suspension, revocation or combination of suspension(s) and revocation(s). All applicants must: (a) Complete a Hardship Application, (DMV Form 7356044). This form is available at any DMV office and online at www. oregondmv.com. (b) Pay the hardship permit fee and the reinstatement fee. (3) An applicant, whose driving privileges are suspended under ORS 809.310(3) or 809.411(8) for committing a fraudulent or unlawful act in applying for or in the use of a driver license, driver permit or identification card, must: (a) Provide proof of a verifiable Social Security number or proof of not being eligible for one. (b) Provide proof of legal presence. (c) Submit to the collection of biometric data and establish identity as provided in ORS 807.024. (d) Provide proof of identity and date of birth. (4) An applicant for a hardship permit must submit a SR22 insurance certificate or other proof of financial responsibility as described in ORS 806.240. The SR22 insurance certificate for an applicant whose driving privileges are suspended for a DUII conviction must show at least the minimum coverage amounts specified in ORS 806.075. (5) An applicant must provide information to DMV that justifies the specific request for driving privileges as follows: (a) To and from work: A letter from the applicant’s employer confirming employment, work hours and address where work is performed. If selfemployed, the applicant must provide evidence such as a business license, business tax statement, newspaper advertisement or business receipts DMV may review to verify the applicant is self-employed. (b) During the course and scope of the person’s employment: The letter from the applicant’s employer must state the applicant’s job duties include driving and must provide information regarding what times and what counties the applicant must drive to perform those duties. If selfemployed, the applicant must provide the times and counties in which the applicant must drive. (c) Seeking employment: The applicant must provide the days of the week and times of day and in which counties the applicant will seek employment. DMV will

only grant driving privileges within normal business hours (8 a.m.-5 p.m., Monday through Friday) and within the state of Oregon for an applicant to seek employment while on a hardship permit. (d) For a treatment or rehabilitation program: An applicant needing to drive to a program for treatment of an alcohol, drug or gambling addiction must provide the name and address of the program, along with the days and times the applicant is required to drive to and from the program. (e) For regular medical treatment: An applicant must provide the name and address of the medical treatment facility and the hours and days of the week treatment is provided. DMV will only grant driving privileges within normal business hours (8 a.m.-5 p.m., Monday through Friday) and within the state of Oregon for an applicant needing regular medical treatment while on a hardship permit, unless the person demonstrates the need for treatment outside of those restrictions. (6) DMV will deny an application for a hardship permit when DMV has reviewed the application and the applicant does not meet the qualifications for the permit or one or more of the requirements for the permit is missing. If within 60 days of the letter of denial from DMV, the applicant provides all necessary documents to meet any missing requirement or qualification for a hardship permit, DMV will apply the original hardship permit application fee when issuing the permit. Statutory/Other Authority: ORS, 184.619, 802.010 & 807.240 Statutes/Other Implemented: ORS 807.240 & 807.370 735-064-0060 Standards for Issuance of Hardship Permits (1) All hardship permits are restricted to minimally meet the applicant’s needs. Upon request, the permit holder must submit verification of those needs to DMV or law enforcement. The person must have the hardship permit in addition to a valid driver license in the person’s possession at all times when driving. (2) DMV may issue hardship permits only for the following purposes: (a) Occupational and employment purposes. (b) Occupational training or education that is required by the applicant’s employer. (c) Transportation to and from a gambling addiction, alcohol or drug treatment or rehabilitation program. (d) To seek employment. (e) To obtain medical treatment on a regular basis for the person or a member of the person’s immediate family. (3) A hardship permit will not be issued for more than 12 hours of driving on any one day, except for transportation to and from a gambling addiction, alcohol or drug treatment or rehabilitation program. (4) A hardship permit issued to look for work

will not be issued for a period of more than 120 days at a time. (5) DMV may deny a hardship permit to an applicant who has public or private transportation available sufficient to serve the applicant’s transportation needs as established in sections (2) and (3) of this rule. (6) DMV will determine whether public or private transportation is sufficient to serve the applicant’s need based upon the following criteria: (a) Convenience in terms of hours and distance. (b) Requirements of occupation or employment. (c) Physical limitations of applicant. (d) Personal safety of applicant. (7) Applicant with multiple suspensions, multiple revocations under ORS 809.600 or combination of suspension(s) and revocations(s), must satisfy the requirements for each type of suspension and revocation. (8) If the applicant is suspended under ORS 809.260 the applicant may apply either for privileges granted under a hardship permit as described in this rule or an emergency permit as described in OAR 735-064-0230, but not both. Statutory/Other Authority: ORS 184.619, 802.010 &807.240 Statutes/Other Implemented: ORS 807.240, 735-064-0070 Ignition Interlock Device (IID) Requirement for Issuance of Hardship Permits (1) When a person whose driving privileges are suspended or revoked under ORS 809.600 as a habitual offender applies for a hardship permit, DMV will require the applicant to install an IID in any vehicle operated by the applicant if the applicant’s driving record shows any of the following: (a) A current suspension based on a conviction for DUII in an Oregon court; (b) A current IID required: (A) As a condition of a DUII Diversion Agreement; (B) By ORS 813.602(1) or (2) following the end of a suspension or revocation of driving privileges based on a conviction for DUII or any crime that carries a statutory minimum one, two or five year IID requirement; or (C) As a result of DMV not receiving an IID Certification – No Negative Report (DMV form 735-7379) that would end the applicant’s IID requirement. (2) As a condition of a hardship permit, the IID must be installed, maintained and used in any vehicle the person operates for the duration of the person’s IID requirement. The IID requirement may exceed the period the person’s permit is valid. (3) When installation of an IID is required, DMV will not issue a hardship permit to the person until a provider submits an installation report form showing an approved device has been installed in each vehicle the person intends to operate during the permit period. (4) Notwithstanding section (1) of this rule, DMV may issue a hardship permit to a person who has not installed an IID if the person will only operate a vehicle(s) owned or leased

by his or her employer during the course and scope of the person’s employment. For purposes of ORS 813.606, DMV will place a notation on the hardship permit issued to the person that the person’s employer has been informed of the IID requirement. The applicant must submit: (a) A letter on business letterhead, signed by the employer, stating the employer has been informed of the IID requirement and that the person is required to operate the employer’s vehicle(s) in the course and scope of employment; or (b) An Employer IID Exception, (DMV form 735-6874) completed by the employer. (5) For purposes of ORS 813.606, a person who is self-employed is not an employee and DMV will not place an employer IID notification notation on the person’s driving record. (6) Notwithstanding section (1) of this rule, DMV may issue a hardship permit to a person who has not installed an IID if the person has been issued a medical exemption under OAR 735-070-0082. (7) The hardship permit will contain a restriction that the person may only operate vehicles equipped with an IID. If the person operates a vehicle owned or leased by the person’s employer in the course and scope of employment or has been issued a medical exemption, the hardship permit driving restrictions will state the person must have in his or her possession a copy of the employer’s IID exception letter, a completed DMV Employer IID Exception Form, an IID medical exemption letter issued by DMV, or an IID medical exemption approval issued by a court. (8) The IID restriction in a hardship permit will specify the length of time allowed for the person to travel to and from an IID provider’s facility to have the IID calibrated as defined in OAR 735-118-0000(5). Statutory/Other Authority: ORS 184.619, 802.010, 807.240 & 813.602 Statutes/Other Implemented: ORS 807.240, 813.602 & 813.606 735-064-0080 How the Hardship Permit Is Issued (1) DMV will mail a hardship permit to the address the applicant submitted on his or her Hardship Permit Application when all of the documents are received by the driver suspensions unit and a hardship permit is approved. The applicant then must take the hardship permit to any DMV field office to have a restricted driver license issued. (2) The hardship permit will contain restrictions and is part of the restricted driver license. The person will carry the hardship permit in addition to a valid restricted driver license at all times while driving. (3) A hardship permit is valid for the length of the suspension or revocation period unless it is suspended or revoked pursuant to OAR 735-064-0110. Statutory/Other Authority: ORS 184.619, 802.010 & 807.240 Statutes/Other Implemented: ORS 807.240 continued on page 10

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735-064-0090 How to Change the Hardship Permit Driving Restrictions (1) When the person needs to change the driving restrictions on a hardship permit, the person must submit a Hardship Application or a letter with new information to the Driver Suspensions Unit, DMV, 1905 Lana Avenue N.E., Salem, Oregon 97314. (2) The person must submit verification of employment as required by OAR 735064-0040(10)(b), if the change requested is employment related and the person is required to drive as part of the person’s job description. (3) The person who is eligible to drive to and from medical treatment as described in OAR 735-064-0040(7)(c) must submit a signed statement from the physician as required in OAR 735-064-0040(7)(c). (4) After the requirements of sections (1), (2) and (3) of this rule have been met, DMV will mail the applicant a hardship permit with new driving restrictions. The person must have the hardship permit in addition to a valid restricted driver license in the person’s possession at all times while driving. Statutory/Other Authority: ORS 184.619, 802.010 &, 807.240 Statutes/Other Implemented: ORS 807.240 735-064-0100 Hardship Permit Restrictions (1) A person issued a hardship permit is restricted to the following: (a) The person must not drive outside the hardship permit driving restrictions. (b) The person must not be convicted of or forfeit bail for more than one traffic offense listed in ORS 809.600(2) (b) (including city traffic offenses and similar offenses under federal or state law) within any 12-month period. See OAR 735-064-0220 for a list of offenses and statutory references; (c) The person must not be convicted of or forfeit bail for an offense as specified in ORS 809.600(1) (a) through (g). These offenses are: murder, manslaughter, criminally negligent homicide, assault, recklessly endangering another person, menacing, or criminal mischief resulting from the operation of a motor vehicle; reckless driving, driving while under the influence of intoxicants, failure to perform the duties of a driver involved in an accident or collision, criminal driving while suspended or revoked, fleeing or attempting to elude a police officer, aggravated vehicular homicide or aggravated driving while suspended or revoked. (d) The person must not use intoxicants and drive. (e) The person must not refuse to submit to a chemical breath test, blood test or urine test. (f) The person must not be convicted of or forfeit bail for an offense under ORS 811.170 or 811.481. (g) The person must not falsify any information appearing on the Hardship Application.

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(2) The person required to have an IID must not violate the following conditions: (a) Drive any vehicle which does not have an IID installed unless the person is exempted by statute and administrative rule or the use of the specific vehicle is excepted by statute and administrative rule. (b) Drive a vehicle owned or leased by the person’s employer without an IID unless the person is carrying a copy of an employer’s exception letter, Employer IID Exception form or medical exemption letter in his or her possession. (c) Tamper with the IID. (d) Solicit another person to blow into the IID. (3) Evidence that a restriction or condition has been violated includes, but is not limited to the following: (a) Police reports. (b) Accident reports. (c) Written reports from family members or the general public. (d) A written report which indicates the person has driven outside the hardship permit restrictions. (e) A written report which indicates the person has been driving after using intoxicants. (f) A written report from a police officer that indicates the person has refused the chemical breath test, blood test or urine test following an arrest for driving under the influence of intoxicants. (g) A report from a police officer. (h) A court conviction. (i) A written report from an IID provider that the person has tampered with the IID installed in his or her vehicle. Statutory/Other Authority: ORS 184.619, 802.010 &807.240 Statutes/Other Implemented: ORS 807.240, 813.100, 813.602, 813.606, 813.610 & 813.614 735-064-0110 Consequences of Violations of Restrictions, Conditions, Limitations or Requirements of a Hardship Permit (1) DMV will suspend a person’s hardship permit when a person fails to maintain any of the requirements listed in this section. The suspension will remain in effect until the person complies with the requirement or until the requirement is no longer a condition of the hardship permit, as follows: (a) Failure to maintain a future responsibility filing required by ORS 807.240(3)(e); (b) Failure to maintain installation of an ignition interlock device as required by ORS 813.602(1)(a); (2) DMV will revoke a person’s hardship permit when a person commits a violation of any of the restrictions or conditions of a hardship permit as listed in OAR 735-0640100. (3) DMV will revoke the hardship permit for 30 days, during which period the person is not eligible for another hardship permit.

(4) At the end of a permit revocation period, the person may apply for another hardship permit, if otherwise eligible. The person must submit a new application, pay all required fees and meet all other permit requirements. (5) A person whose hardship permit is revoked based on a notice from a court as specified in ORS 809.140, is entitled to an administrative review under 809.440(2). The revocation will remain in effect pending the outcome of the administrative review. (6) A person whose hardship permit is revoked based on information other than that described in ORS 809.140 is entitled to a contested case hearing under 183.310 to 183.550. The revocation will not go into effect pending the outcome of the hearing. (7) A person whose hardship permit is suspended due to failure to maintain a requirement of the permit is entitled to an administrative review under OAR 735-0010050. The suspension will remain in effect pending the outcome of the administrative review. Statutory/Other Authority: ORS 184.619, 802.010 & 807.240 Statutes/Other Implemented: ORS 807.240 735-064-0220 Traffic Offenses Used in Habitual Offender, Driver Improvement, CMV Serious Violations and Hardship Permit Programs (1) A conviction for an offense listed in this rule counts toward: (a) The Habitual Offender Program pursuant to ORS 809.600(2). (b) The Provisional and Adult Driver Improvement Programs outlined in Oregon Administrative Rule chapter 735, division 72. (c) Motor vehicle traffic control violations connected to a fatal accident as described in OAR 735-063-0360 that can lead to a suspension of commercial driving privileges. (d) Revocation of a hardship permit pursuant to OAR 735-0640100 and 735-064-0110. (2) Table 1 lists the offenses and the citation to Oregon statute, or administrative rule and federal regulation for Oregon offenses used in the programs identified in section (1) of this rule. (To find the tables please go to OAR 735-0640220.) (3) Offenses from other states are posted to driver records using an AAMVAnet Code Dictionary (ACD) code. Table 2 identifies the code that appears on the driver record, a description of the offense and the ORS reference covering an equivalent offense for Oregon. (To find the tables please go to OAR 735-0640220.) Statutory/Other Authority: ORS 184.619, 802.010, 809.480 & 809.605 Statutes/Other Implemented: ORS 807.240, 809.480, 809.600(2) & 809.605

INDUSTRY PERSPECTIVE | By Kenny Atcheson

SHOULD YOU SWING FOR HOME RUNS IN BUSINESS?

Big Plays May Not be Your Best Strategy

A record 10 home runs were hit in the Major League Baseball All-Star game in July. In my e-newsletter shortly thereafter, I told subscribers: “The 10 home runs hit in the Major League Baseball All-Star game may work well for entertainment, but it does not work well for growing your business in this decade. There was a time when business owners used ‘home run’ marketing. They could throw a wad of money at one type of advertising and count the sales. “Yet stringing together singles and doubles (marketing) is more secure, stable, and nets a more predictable ROI. “If you would like a steady flow of customers, there is one thing that can do that for you: Referrals and repeat business. “Yes, I know that’s two things, but the same behaviors lead to both. If you do what it takes to earn a lot of repeat business, then you probably already earn steady referrals. If not, you can make small but important tweaks to make that happen.” After sending that e-newsletter, I researched deeper and discovered the following:

• At the 2018 All-Star break, eight of the top 15 team home run total leaders would not make the playoffs if the playoffs had begun at the break (Angels, A’s, Blue Jays, Rockies, Cardinals, Nationals, Orioles, Rangers). • Since 1981, in 37 years, the major league individual home run leader has been on the World Series winning team once. • Since 1984, only the 2009 Yankees led the league in home runs and won the World Series the same year. It seems that home runs aren’t all they are cracked up to be. These statistics indicate the “all or nothing” approach doesn’t really work. Why do so many team owners, coaches and players focus on hitting home runs? Because home runs are sexy. I get it. As a baseball player who focused on great defense, showing off my arm, and hitting for average, I dreamt of hitting home runs. I dreamt of the “walk off” home run – the crowd cheering as I rounded the bases with a slow home run trot, relishing the moment. When gym work and a tweak to my swing led to hitting home runs, that’s all I wanted to do. After all, “chicks dig the long ball” as Greg Maddux and Tom Glavine said in the 1990s Nike commercial. I even wore a Nike T-shirt with that quote under my jersey to remind myself. Home runs are sexy. Just like a new mountain of website and/or lot traffic is sexy. The thought of a ACCELERATE

| By GWC Warranty

SAVED TIME IS MADE MONEY

Maximize Time in the F&I Office

F&I is the final step in a long car-buying process for your customers. The quicker you can provide value, get a signature and make the sale, the better your chances are for growing your profit potential on the back end of deals. Just like every second of your time equates to dollars and cents in your pocket, wasted time in the F&I office can cost you a valuable service contract sale. Maximizing the time you spend with customers in the F&I office helps them be more receptive to the value of a service contract and helps you make the most of every sale’s final moments. With a few small tweaks to your sales and F&I processes, you can save your customer’s time while simultaneously saving your bottom line. F&I Videos in Your Showroom You can start planting the seed about a service contract sale even before a customer steps in the F&I office. If you have a monitor in your showroom, put it to use. Turn off the news and run some videos that help explain the value of a service contract. Doing so gets the customer thinking about protection from out-of-pocket repair bills and understanding why it’s important to them.

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IT SEEMS THAT HOME RUNS AREN’T ALL THEY ARE CRACKED UP TO BE. THESE STATISTICS INDICATE THE “ALL OR NO THING” APPROACH DOESN’T R E A L LY W O R K . new massive advertising campaign that is an instant home run is sexy. However, a steady flow of repeat and referral customers is sustainable, repeatable, and much more profitable. Kenny Atcheson is the founder of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. For more information visit www.DealerProfitPros.com

Electronic Tools Modern online and electronic tools help speed along the process to get your customers out of the F&I office just as quickly as they got into it. When customers can sign electronically, view educational information on the fly and navigate the process without leafing through papers and signing or initialing multiple places, it makes the entire process simple and painless. Self-Service Post-Sale Tools Having a service contract provider that provides customers with on-demand resources that answer common questions can help you save time in the F&I office. You can save time explaining certain details if your customers have a place to get the answers they need once they leave your dealership. Information like how to file a claim, where to find a shop and looking up coverage details are just a few examples of information your customers should be able to find on their own whenever they need it. Quality Follow Up Reminding your customers of the coverage they have, where to find answers to questions and how to utilize their service contract coverage may be common practice, but there may be ways you can do it more effectively. Tools like Covideo can add a personal touch to the routine email or phone call commonly used in sales and F&I follow ups. Giving your message a better chance to be heard only increases the likelihood that it resonates with customers and results in the experience you desire for them.

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

MARK YOUR CALENDARS

Complete this test and certify below that you have read the articles for September 2018.

“VEHICLE DEALER CERTIFICATION” True/False: A person who rents or leases space to a vehicle dealer who holds a current valid certificate is not a dealer as defined in OAR 735-150-0010. “BHPH BUDGET AND EXPENSE OVERSIGHT” True/False: Poor deal structures and underwriting sometimes stem from a lack of training for staff. “DEALER HANDBOOK UPDATES” What part(s) of the handbook was/were changed in July? (a) Chapter K, Registration. (b) Chapter M, Fees. (c) Chapter N, Model, Makes, & Body Styles. (d) A & B. (e) All of the above. “THE FACEBOOK ‘SECRET FORMULA’ TO GET MORE CUSTOMERS” True/False: It’s not important to have a marketing strategy for Facebook.

Which of the following is a distinct step in Kathi’s “secret formula?” (a) Attract. (b) Engage. (c) Convert. (d) All of the above. “HARDSHIP PERMIT” True/False: As used in Division 64 rules, unless the context requires otherwise, “private transportation” means family members, friends or fellow employees who are able to serve the applicant’s transportation needs. “SAVED TIME IS MADE MONEY” True/False: You can start planting the seed about a service contract sale even before a customer steps in the F&I office. I certify to OIADA that I have personally read these articles in The Oregon Dealer News Magazine for September 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. My Name ____________________________________________________________ ____________________________________________________________________ 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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Ken Shilson, founder of the National Alliance of Buy Here-Pay Here Dealers

• Are you currently a Buy Here Pay-Here Dealer? • Thinking about becoming a Buy Here-Pay Here Dealership? • How can you take it to the next level to become more profitable? • Learn the ins and outs of a BHPH Dealership • National updates on challenges and opportunities

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