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REPORT CURBSTONERS
AUTO AUCTION DIRECTORY
MEMBERSHIP APPLICATION
July/August 2007
Tennessee
DEALER NEWS
OFFICIAL PUBLICATION OF THE TENNESSEE INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION
SHOP YOUR OWN Dealership Web Site
STAY CURRENT On TNIADA Updates With The Executive Director’s Notes
GET TO KNOW THE TMVC Introducing A New Series Of Articles
PAID
PRSRT Standard U.S. Postage
FORT WORTH, TX Permit No. 1122
TNIADA BOARD OF DIRECTORS David Andrews – President City Auto Sales 4932 Elmore Road Memphis, TN 38128 Phone: (901) 377-9502 Phone: (901) 333-0103 dsa@cityauto.com
John Taylor Taylor Auto Sales & Rental 3832 Clarksville Pike Nashville, TN 37218 Phone: (615) 259-3797 Fax: (615) 259-8969
Danny England – Vice President Danny England Motors P.O. Box 1620 New Tazwell, TN 37825 Phone: (423) 626-9500 Fax: (423) 626-9543 Cell: (423) 526-7190 dannyenglandmotors88@hotmail.com John Niven, Jr. – Secretary/Treasurer Auto Agency, Inc P.O. Box 382664 Germantown, TN 38183 Phone: (800) 325-5440 Phone: (901) 756-8557 niven@bellsouth.net Tony Moorby 141 Woodward Hills Place Brentwood, TN 37027 Cell: (615) 714-7991 Fax: (615) 866-5511 tonymoorby@aol.com
Don Flanders Guardian Warranty 1800 Colonial Shores Drive Hixson, TN 37343 Phone: (423) 596-7601 Fax: (423) 842-3906 donflan@bellsouth.net Darryl Noble – Executive Director P.O. Box 2219 Lebanon, TN 37088 Cell: (615) 506-4968 Office: (866) 5-TNIADA Fax: (615) 443-7486 dnoble@tniada.com lnoble@tniada.com
IN THIS ISSUE 6 Out And About With TNIADA We’ve had a great couple of months as an association and have lots to report. If there is anything we can do for you or if you have any suggestions for the association, please contact us at 1-866-5TNIADA or dnoble@tniada.com. By Darryl Noble, TNIADA Executive Director
8 Kain Automotive Offers Advice For Web Site Design, Upkeep Just as each dealer recognizes the fact that they need a Web site to be competitive in today’s online dominated Internet marketplace, it is equally important that your Web site be easy to find on search engines. By Jonathan Edwards and David Kain, Kain Automotive
16 Get To Know The TMVC This is the first in a series of articles to better acquaint the industry with the role, staff, mission and function of the Tennessee Motor Vehicle Commission (TMVC). By Bob McKee, Executive Director, TMVC
22 Legal, Legislative And Regulatory Summary Keith Whann updates the Association on recent legal cases and actions. By Keith Whann, NIADA General Counsel
INDEX TO ADVERTISERS PLEASE VISIT OUR WEB SITE tniada.com
ADESA Knoxville ........................................................................................17 Aircept / Cal Amp ......................................................................................18 Auto Trader Publishing ..................................................Inside Front Cover AUTOSAVE ....................................................................................................4 AutoTrader.com ............................................................................Back Cover CAR Financial Services, Inc. ......................................................................11 Credit Acceptance Corporation ......................................Inside Back Cover Dealer Funding, Inc. ......................................................................................5 Frazer Computing ......................................................................................12 Guardian Warranty Corporation ................................................................3 Integra Systems ............................................................................................19 Manheim’s Nashville Auto Auction ............................................................13 Manheim’s Tennessee Auto Auction ............................................................9 McNutt Auto Transport Service ................................................................16 Preferred Warranties, Inc. ............................................................................7 United Acceptance Corporation ................................................................15
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION www.niada.com • www.niada.tv
NIADA Headquarters 2521 Brown Blvd. • Arlington, TX 76006-5203 • phone (817) 640-3838 TN Dealer News is published bi-monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone (817) 640-3838. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of the Tennessee Independent Automobile Dealers Association or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of TNIADA or NIADA, does not constitute an endorsement of the products or services featured. Copyright 2007 by NIADA Services, Inc. All rights reserved. Visit the NIADA Web site at www.niada.com. For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. For information on how to become a member of TNIADA, please contact Darryl Noble at (615) 506-4968 or e-mail dnoble@tniada.com. State Publications Manager/Sales: Troy Graff • troy@niada.com State Publications Editor: Laura Patterson • laura@niada.com State Publications Art and Production Manager: Rebekah Petty • rebekah@niada.com State Publications Graphic Artist: Christy Haynes • christy@niada.com Printing: Southwestern ColorGraphics Printing & Mailing Specialists
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TENNESSEE DEALER NEWS
JULY/AUGUST 2007
EXECUTIVE DIRECTOR’S NOTES
Out And About With TNIADA On behalf of TNIADA, we would like to
We’ve had a great couple of months
thank our local auctioneers who continuously support our association and help us spread the word to the dealers of how important it is to be a member. Without the support of our auctions, it would be impossible for us to get the word out to so many dealers at one time. THANKS GUYS!
and have lots to report. First and foremost, we now have permanent office space! Thanks to ABC Nashville who has graciously provided us with two beautiful offices at their facility. We officially moved into the space on May 29 and invite everyone to stop by and visit us when you get the chance. (We will be keeping our existing mailing address and phone numbers.)
On May 16 we held our first Vendor Fair at Nashville Auto Auction, and it was a HUGE success. There were 24 vendors on hand to assist dealers with every aspect of their business - floor planning, print media, finance companies, warranty companies, just to name a few. We had approximately 325 dealers in attendance. Our lucky winner of the day was Mitch Garrett from Memphis. He and his wife won a TNIADA membership, which was sponsored by Nashville Auto Auction. He also won a couple of other door prizes from our vendors. Our next vendor event will be held at ADESA Memphis on August 21. We encourage everyone to try to attend this event.
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TENNESSEE DEALER NEWS
JULY/AUGUST 2007
Pictured L to R: Joseph Samuel, GM, Lisa and Darryl Noble, Steve Gori, Asst GM.
To report on the association – we are definitely GROWING! We are now up to 290 members. We encourage every member to talk to other dealers who aren’t currently members and tell them how valuable the association is to them. The coupon book is not the only benefit we have – but $10,000 in auction coupons should be enough incentive for anyone to join. It is so important that over the next year we grow our association to a much larger number, because there are several pieces of legislation that will be coming to Tennessee and it is going to be very important for us to be a strong, united group. If there is anything we can do for you or if you have any suggestions for the association, please contact us at (866) 5TNIADA or dnoble@tniada.com.
ONLINE TRAFFIC
Kain Automotive Offers Advice For Web Site Design, Just as each dealer recognizes the
result, dealers must employ a strategy to ensure that their Web site shows up when
petitive in today’s online dominated
shoppers search for vehicles they carry.
Internet marketplace, it is equally imporsearch engines.
Not only do search engine strategies assist you with the click traffic to your
Steps A Dealer Should Take To Succeed With Searching You need to understand how it works by trying a search for your dealership. In order to understand the benefit, it
site, there are recent indications that just
is essential to experience it yourself. I
appearing on search engines enhances a
recommend using a variety of terms to
an essential part of each of our daily
business’ chance of capturing phone traf-
find your dealership or inventory. It is
lives to sift through the mountains of
fic and foot traffic.
important that you can find your dealer-
Search engines have become such
data that we seek on an hourly basis, that it is hard to think back to how much
It appears that some consumers are
ship, but what is equally or perhaps more
starting to determine that companies that
important is where the search links you
effort we used to go to in order to find
rank high in their returned searches are
on the Web site.
statistics, locations, people, images, etc.
the players in the market and should be
For example, if you were searching for
Nowadays, we simply type a search
the ones given consideration. This has
a Ford dealership in Versailles, Ky., as a
request into Google, Yahoo, MSN or any
not been proven statistically, but if you
consumer, your expectations would be that
of the various search engines to find in
compare the Internet to a highway and
relevant links would be returned. However,
an instant the information we seek. It
the search engines as the billboards,
that is not always the case. If the link that
was only natural that consumers would
then it makes sense.
shows up with the return takes them to a
end up using the same tool they use each day to start shopping for a vehicle. According to J.D. Power’s
When you appear at the top of organ-
location that is not what they were search-
ic search – the left and middle of a
ing for, they back out and you lose the
search return – and also appear in the
opportunity to capture a lead.
AutoShopper.com study, 69 percent of
sponsored links – the very top and right
As you coordinate your search
vehicle buyers research online and 89
hand side of a search return – then you
engine strategy, make sure you have the
percent of vehicle shoppers use a search
make an impression on the prospect
links set up for the customer to end up
engine. Furthermore, Yahoo Compete
much like a billboard on a roadside.
where you have the best chance to gener-
2005 Auto Study identified that 70 per-
The key component of marketing is
cent of online auto shoppers start at a
to drive traffic and sales, and another
search engine.
benefit of search is the ability to motivate
The statistics are convincing, yet,
8
Upkeep
fact that they need a Web site to be com-
tant that your Web site be easy to find on
By Jonathan Edwards and David Kain, Kain Automotive
prospects at a lower cost than traditional
ate a lead. Next, you can try searching for your inventory. Consumers are searching with greater
based on my own use of search engines
advertising. Clever search advertisers
specificity than they used to, and the rea-
on a daily basis, I suspect you already
spend the time to make sure their mes-
son is that search engines are becoming
knew that search plays a critical role in
sage hits home with the prospects so
more sophisticated at crawling millions of
your own online shopping habits. We can
they are compelled to click on the provid-
Web sites and returning detailed informa-
build the very best of Web sites with all
ed link, so bear in mind it is not just
tion. Because of this, it is becoming more
the bells and whistles and usable fea-
about search placement, but it goes a
common for a consumer to search for a
tures, but if the customer cannot find the
step further and requires promotional
specific vehicle and expand their search if
site, it was not money well spent. As a
expertise.
TENNESSEE DEALER NEWS
JULY/AUGUST 2007
continued on page 10
ONLINE TRAFFIC there are no relevant links returned. For example, if you were searching for a 2003 Chevrolet Silverado, four-
Reasons Every Dealer Should Shop Their Own Web Site There are several reasons why exec-
wheel drive in dark blue in Atlanta, you
utives should shop online at their own
would be provided any inventory that the
dealership.
search engines can find that meets that
You know how your showroom floor
responding personally and effectively in both e-mail and on the phone? • Was there any long-term follow up? • Are my e-mails being caught in spam filters? • Are there any broken links in the
search criteria. The link that is provided
sales process works and what the cus-
process or confusing dead ends that a
would typically take the consumer to that
tomer experience is; in fact, you see the
consumer may experience?
specific vehicle instead of to a dealership
transaction happening in “real-time,”
home page. This would increase the likeli-
which allows you to get involved or make
The last point is usually an eye-opener,
hood that the consumer would either call,
quick adjustments when needed. Best of
so don’t assume that just because you
e-mail or even walk in to the dealership.
all, the customer is in the dealership.
hire an outside company to run your Web
Moreover, you must work with your Web site builder on search engine opti-
What about the Internet sales
site that everything is working. While most
process and customer experience? On
do a good job, it is your responsibility to
mization and search engine marketing.
the Internet, the customer is not on your
ensure everything is working.
In order to show up on search in an
showroom floor yet. The dealer needs to
organic fashion, your Web site has to be
understand that the dealership Web site
there to help you anonymously mystery
designed for search engines to be able to
is their virtual “real-time” showroom and
shop your site. You can set up a pseudo
find you. Without going into details, it is up
sales consultant.
customer e-mail account in Yahoo for free.
to your Web site builder to design your site
With more than 80 percent of con-
There are many free resources out
If you search for free local voicemail phone
in such a way that it is easy to find and
sumers using the Internet before making
numbers, you can find various sources of
further for your individual inventory pages
an automotive purchase, dealers and
voicemail to track the phone call.
to show up in search engines as well. If the
managers cannot afford not to know the
site is built around this from the beginning,
customer experience on their Web site.
it saves time and money for the dealer.
This is where the customer decides to do
links and dead ends when I shop dealers.
business with you or go elsewhere.
This is usually because no one is paying
Search engine marketing is considerably different from search engine opti-
By shopping your site, you can
mization and requires different strategies
answer some very important questions:
to work well for your dealership.
• Am I providing an experience that
The goal with search engine marketing is to manage efficiently your placement in such a way that your dealership shows up in all relevant organic searches, so the consumer sees your dealership in
enough attention to the details.
would compel me to purchase a vehicle from this Web site? • Do we make the experience easier than a showroom visit? • Do I get quick access to new and
the organic return and in the sponsored
pre-owned inventory and Web site
links. This gives them the impression that
specials?
your dealership is active in online sales
It’s an ultra-competitive new world out there, but I consistently find broken
• Are my Internet sales consultants
David Kain, of Kain Automotive, can be reached at david@kainautomotive.com or (866) 546-3428. Jonathan Edwards, of Kain Automotive, can be reached at jonathan@kainautomotive.com or (248) 797-8084.
and is perhaps a good place to start the buying process. Given the complexities of search engine marketing, I recommend using an outside source to manage this vital element of your marketing. In some cases, your Web site builder can provide this service, but in many cases a dealer would benefit more from using an outside source. Search engines are perhaps the most vital component of your Internet marketing besides your Web site, so the quicker you learn how they can assist you, the better your online results will be. 10
TENNESSEE DEALER NEWS
JULY/AUGUST 2007
It’s an
ultra-competitive new world out
there.
REPORT ON SUSPECTED UNLICENSED DEALER ACTIVITY Location __________________________________________________ Street _________________City______________State____ Zip_________ Number of Cars Displayed___ Any expired Registrations?___ If yes, note below Any duplicate phone numbers?___ If yes, note below
_______________________________________________________ _______________________________________________________ LIST CARS ON DISPLAY: Make And Model
License NO.
Registration
Phone #
1._______________________________________________________ 2._______________________________________________________ 3._______________________________________________________ 4._______________________________________________________ Please attach an additional sheet(s) if more than five cars are displayed. Please enclose photographs of displayed cars if possible. Mail completed information to: TNIADA • P.O. Box 2219 • Lebanon, TN 37088
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TENNESSEE DEALER NEWS
JULY/AUGUST 2007
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TENNESSEE DEALER NEWS
JULY/AUGUST 2007
MOTOR VEHICLE COMMISSION
Get To Know
The TMVC This is the first in a series of articles to better acquaint the industry with the role, staff, mission and function of the Tennessee
By Bob McKee, Executive Director, TMVC
Motor Vehicle Commission (TMVC). TMVC is charged with the regulation of Tennessee’s approximately 4,700 vehicle dealers employing some 15,000 salespeople. The
processes dealer applications, renewals and closures. Vicky Cofer
Commission also licenses auctions, vehicle and RV manufacturers, their
processes RV dealers, manufacturers, and their representatives and
representatives and dealers, as well as dismantler, recyclers and
generates various reports. Jay Lane processes salesperson
motorcycle dealers and manufacturers. Our mission commits TMVC to the impartial application of the
applications and renewals. Marilyn Mattox works with salespeople, bonds and generates various reports. Bill Capps answers the phone,
Tennessee Dealer-Manufacturer licensing laws and rules. These regu-
processes mail and assists with licensee closures. Our staff attorney is
lations are intended to empower consumers while allowing dealers to
Patrick Merkel.
compete for business on a level playing field. We have an amazingly committed and experienced group of pro-
While these articles will inform the industry of rule and regulation changes, the most immediate way to provide this information is through
fessionals at TMVC. Our staff is knowledgeable and available to assist
our Web site. Updated frequently, the Web site provides the latest news,
you. Leslie Hogue our office supervisor handles a variety of issues.
licensing resources, consumer information and downloads. Visit the Web
Jason Gilliam resolves and responds to complaints. Barry Whitson
site at http://state.tn.us/commerce/boards/mvc/index.html . In recent news, effective July 1, 2007, motor vehicle dealers will pay one license fee to sell all motor vehicles, including motorcycles and recreational vehicles, which have been previously titled. Franchised dealers will continue to pay separately for each franchise. Future articles will address legislative changes concerning dealers and salespeople. Though not a change, an inquiry we often receive is, “Can you ‘mix’ another business with a motor vehicle dealership?” Statute does not allow for the co-mingling of businesses; T.C.A. 55-17-102 (9) states that, “‘Established place of business’ means a permanent structure or structures owned, leased or rented by a motor vehicle dealer providing signs, facilities and office space used ‘exclusively’ for buying, selling, displaying, advertising, demonstrating, servicing or repairing motor vehicles or functional or nonfunctional parts of motor vehicles and where replacement parts, repair tools and equipment as well as the books and records needed to conduct the business are kept. Such structure or structures must be physically apart from any other business and shall not include a private residence of any sort, tent or temporary stand.” The commission has determined that a floor to ceiling solid wall with a separate outside entrance qualifies, when there is an adjacent business. Feel free to contact us with any questions or concerns regarding our policies or regulations. The main phone number is (615) 741-2711, fax number is (615) 741 0651.
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TENNESSEE DEALER NEWS
JULY/AUGUST 2007
AUCTION CALENDAR
MONDAY
TUESDAY
Manheim’s
ADESA Memphis 9:00
Nashville Auto Auction
Chattanooga Auto Auction 9:30 Manheim’s
Tennessee Auto Auction
4:00
Manheim’s
Tennessee Auto Auction
10:30
1-866-5TNIADA (586-4232)
WEDNESDAY THURSDAY
9:00
ABC Nashville 10:00
ADESA Knoxville 9:30
Memphis Auto Auction 9:30
East TN Auto Auction 10:00
Jackson Area Auto Auction 10:00
ABC Murfreesboro 3:00
Airport Auto Auction 5:30
Bristol Auto Auction 10:30
Cookeville Auto Auction 6:00
Clarksville Auto Auction 12:00
Fax 615-443-7486 P.O. Box 2219 Lebanon, TN 37088
FRIDAY
Jackson Area Auto Auction 4:00 ADESA Knoxville 5.30
Out of State Sales (Members of TNIADA) Tallahassee Auto Auction Tallahassee, FL 6:00
VISIT OUR WEB SITE FOR updates, Association highlights and information, legislative news, and much more!
Dealer's Auto Auction Huntsville, AL 9:30
ADESA Atlanta 9:30
Dealer’s Auto Auction Horn Lake, MS 9:30
Manheim’s Bishop Brothers Alabama Auto Auction Manheim’s Moody, AL Atlanta, GA Atlanta Auto Auction 10:00 1:00 9:30 Kelly Auto Auction Gadsden, AL 6:30
HADA Auto Auction Huntsville, AL 10:00 3rd Friday Only
ADESA Lexington 10:00
Join us at ADESA Knoxville! Weekly Consignment Sales Every Tuesday Night - 5:30 PM • Every Friday - 9:30 AM
Call now to reserve your numbers 865/988-8000
1011 Adesa Parkway Lenoir City, TN 3771 865/988-8000 - 865/988-5674 Fax TENNESSEE DEALER NEWS
JULY/AUGUST 2007
17
AUTO AUCTION NEWS
DEALERBLOCK
TM
adesa.com’s Online Tool Allows Customers To Buy And Sell Via The Internet The auction industry has definitely come a long way to evolve into the major business that it is today. One of the most noticeable changes of late that has impacted independent dealers is the ability to use the Internet to manage their inventory needs. ADESA Memphis offers its customers the option to buy and sell vehicles 24/7 with ADESA DealerBlock as well as participate in a live auction via the Internet from the comfort of their office with ADESA LiveBlock. ADESA’s interactive Web site, adesa.com, also offers users a host of other functions, including: ◗ ADESA Auction Checklist: a quick and easy summary to help plan your business with our auction. ◗ ADESA Run Lists: locate the vehicles you
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TENNESSEE DEALER NEWS
JULY/AUGUST 2007
need to build your inventory before the auction even begins. ◗ ADESA Market Guide: find auction sale results conveniently arranged to help you make the best wholesale pricing decisions. ◗ ADESA LiveBlock: live, interactive bidding in the lanes from the comfort of your office chair. In fact, up to 25 percent of sales are sold on LiveBlock weekly. ◗ ADESA DealerBlock: convenient, 24/7 bidding or “Buy Now” pricing on the cars your customers need today. ◗ ADESA Notify Me: tell us the types of vehicles you need, and ADESA will e-mail you when these cars are ready for auction. ◗ ADESA Dealer2Dealer: get first access to the best inventory directly off the dealership’s lots.
To learn more about ADESA Memphis and adesa.com, don’t miss the upcoming Vendor Expo. ADESA Memphis and the Tennessee Independent Automobile Dealers Association (TNIADA) will be presenting at the Expo on Aug. 21. Attendees can expect an impressive gathering of vendors who service independent dealers as well as an educational seminar on increasing dealer knowledge and profitability through the use of adesa.com. In September, ADESA Memphis and ADESA Knoxville will purchase TNIADA memberships for dealers who sell 10 or more units at our auctions during the month of September.
A
U
T
O
small cars
R
E
P
O
R
T
S
small cars
small MAKE A small cars cars small cars
small cars
small cars
COME BACK
small cars
Small cars are making a significant come back in the US as gas prices rise above the $3 mark. Sales of small cars and small SUVs are up 38.6 percent compared with the first four months of 2006. While the profits from small cars are lower than bigger trucks and SUVs, the desire for them continues to be on the rise.
models two-year-old two-year-old two-year-old models two-year-old models two-year-old models
MODELS two-year-old models HOLD VALUE two-year-old models
two-year-old models
A recent review of price history of 75 various 2005 model vehicles showed depreciation levels holding their value. Ricky Beggs, vice president and managing editor of Black Book, noted 38 percent actually showed an increase in value since February 1. Displaying the most strength were imports, domestic trucks, vans and SUVs, with 59 percent increasing in value. Models indicated as depreciating were sports cars, midsize SUVs, passenger versions of minivans and full-size wagons.
TENNESSEE DEALER NEWS
JULY/AUGUST 2007
19
“
$
$10,375
Business Development & Recognition: Consumer Awareness Campaign TNIADA wall certificate and window decal Annual Convention & Networking Expo NIADA TV with educational programming specifically for the pre-owned dealer and their sales staff Quality Dealer of the Year Award Regional Boards - keeping you informed in your specific area
Publications: Subscription to Used Car Dealer (national magazine) Subscription to Tennessee Dealer News
Legal, Legislative & Regulatory Benefits: Legislative Updates & Alerts Online access to the latest forms & updates Legal, insurance and bond referrals Full time lobbyist
Gasoline prices have steadily increased to over the $3 a gallon mark as tourists prepare for the summer vacation season and
Congress continues to address a number of leg-
islative initiatives that may impact our industry.
Federal Legislative Developments President Bush is asking Congress for
changes to the tax code that will raise revenue
and provide adequate federal funding to implement the law’s mandates.
Case of the Month Our case of the month involves a fact
Legislators have also been trying to
pattern that is probably familiar to most of you
arouse support for a Bill to crack down on
in the industry. It involves the advertisement
price gouging at the gasoline pump. Oil
of a car on the Internet, the use of out-of-date
companies are going on the offense to
paperwork in the deal, confusing practices in
oppose any such measure claiming that it
the F&I department along with various issues
would worsen the impact of oil and gasoline
such as not knowing the difference between a
shortages in emergency conditions.
service contract and a limited warranty or
Current negotiations regarding Corporate
what menu-selling F&I products really means
without raising taxes, commonly being
Average Fuel Economy standards are being
referred to as closing the "tax gap." The
delayed due to a dispute over certain vehicle
Administration wants to go after the 'hidden
classifications. The present dispute centers
violation of various federal and state laws
income' of persons conducting or engaging in
around the viewpoint of several Senators who
including state UDAP statutes. If this were the
to your dealership. Each of these activities could lead to a
business who do not report or pay taxes on
want light trucks included with passenger
case then the consumer would be entitled to,
the income. To those of us in the motor
vehicles to meet the Mileage Per Gallon
at a minimum, rescission of the transaction
vehicle industry who have dealt with
standards, while others wish to classify them
and be awarded attorney fees or perhaps
Curbstoners for years, this sounds all too
separately for CAFE purposes.
recover multiple damages. In this type of
familiar, as it appears Curbstoning has now gone global. The focus is mainly on credit card transactions at this time, and it is
situation a class action lawsuit may not be far Federal Regulatory Developments The FTC has approved the filing of
behind. Perhaps even more disturbing to you is the fact that a discussion about these
estimated the change could generate
comments by the Bureau of Competition and
activities should not focus on the negative, but
approximately 10.7 billion dollars in tax rev-
others regarding Connecticut Senate Bill 1136
the positive. A dealership that has an
enue over the next decade.
which regulates wholesale and retail gasoline
understanding of each of these areas can
prices within the State and would mandate
expect reduced legal exposure, improved cus-
is currently addressing legislation pertaining to
that retailers sell “gasoline based on the
tomer satisfaction and increased profitability.
Industrial Loan Companies. House Financial
actual prices it paid” while explicitly forbid-
While on the topic of finances, the House
Who does the case involve and what is
Services Chairman Barney Frank said at a
ding retailers from raising the retail price
the outcome? The case involves every motor
Committee hearing he expects the House to
“in anticipation of market based price
vehicle dealership today and the outcome
pass H.R. 698, a Bill that would prevent
increases” and prohibit zone pricing,
depends upon you. Problems or profitability, it
commercial businesses from owning industrial
amongst other things.
is up to you. To help make sure profitability is
loan companies, which are regulated on the state level.
David Quam, the Director of Federal
in store for your dealership, be sure to check Other Activity Of Interest
out the sessions from the 2007 NIADA Annual
The EPA is looking into California's
Convention held June 13-16 in Nashville,
Relations for the National Governors
request to set its own fuel economy standards
Tennessee. Among the many sessions worth
Association, appeared before a Subcommittee
for cars and trucks, as Congress pressures
viewing on NIADA.TV, a number are related to
of the Committee on Homeland Security and
the Agency to write new rules for vehicles.
this issue including: “F&I: Profit Center Or
Government Affairs, to address the
California and 10 other states have passed
Problem Area – The Choice Is Yours,” “Selling
administrative realities of the Real ID Act.
their own global warming regulations for cars
Over The Internet: Is It Somewhere Over The
Quam recommended that, in addition to
and trucks, the state still needs a waiver from
Rainbow?” and “Who Says Compliance is
allowing adequate time for the Act’s
the EPA to put its laws into effect.
Easy? Me!”
electronic verification, recognition of state
innovations that meet the objectives of the Act
ENNESSEE DEALER 22 TJULY/AUGUST 2007
NEWS
“
“
implementation, they allow for transition to
Problems or profitability, it is up to you.
To view the NIADA Legal, Legislative & Regulatory Report in its entirety, visit www.niada.tv.
By Keith Whann, NIADA General Counsel
Gasoline
LEGAL, LEGISLATIVE & REGULATORY SUMMARY