indiana car lines september 2012

O F F I C I A L V O I C E O F T H E I N D E P E N D E N T C A R D E A L E R I N I N D I A N A

C E L E B R A T I N G 2 5 Y E A R S O F S E R V I C E

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

inside

Sunday, September 9th • Ironwood Golf Club Fishers, IN

V i s i t u s a t w w w . i i a d a . c o m

25CELEBRATING

25

YE

ARS OF SERVICE

1987-2012

• DEALER PLATES IN NATIONAL DATABASE• THE CARLAWYER

page 18

25th Anniversary Golf TournamentT R A D E S H O W / A W A R D S D A Y

INDIANA CAR LINES

SEPTEMBER 2012

IN_0912.indd 1 8/13/12 2:45 PM

IN_0912.indd 2 8/13/12 2:46 PM

SEPTEMBER 2012 C A R L I N E S

3

w w w . i i a d a . c o m

The U.S. Supreme Court found in favor of the 2010 health care law, deeming the individual mandate to purchase health insurance unconstitutional under the commerce clause but upholding the mandate by now calling it a tax.

Because of the ruling, some of the key factors that will be taking place in the year and a half include:

Individual mandate: Starting in 2014, everyone in the United States must buy health insurance or be subject to a tax.

Those who cannot afford to buy health insurance – families at poverty level – will be subsidized by the government.

Families making more than $80,000 per year will not receive a subsidy. That provision was the heart of the lawsuit challenging the law. The individual mandate goes hand-in-hand with the next provision: guaranteed issue. Making everyone buy insurance stops people from buying it only when they become sick.

Guaranteed issue: Also starting in 2014, all health insurance companies must accept all applicants regardless of pre-existing conditions. NIADA members have access to guaranteed-issue, limited medical right now by visiting www.niadahealthplans.com.

Minimum essential coverage (MEC): The provision states the government will regulate what plans will cover and will not cover as a means to qualifying acceptable coverage. Having acceptable coverage means not facing fines or penalties.

It is expected the highest deductible will be $2,000 for an individual and $4,000 for a family. That, however, could jeopardize Health Saving Accounts (HSAs), which are linked to high-deductible health plans and are a popular option for the self-employed and for small businesses.

Health insurance exchanges: Each state will set up a health insurance exchange for consumers to shop for health plans. If they qualify, consumers will be able to receive subsidies through the exchange. NIADA members can Visit the NIADA Health Insurance Exchange right now to shop for rates from multiple carriers through www.niadahealthplans.com.

Additional questions on the law and how it will affect you? NIADA members can call the NIADA Member Health Plans hotline at 888-308-9340 or visit www.niadahealthplans.com.

BY TODD PAGE, JLBG HEALTHTODD PAGE IS VICE PRESIDENT OF JLBG HEALTH, THE ADMINISTRATOR OF NIADA MEMBER HEALTH PLANS.

What Health Care Ruling Means to You

V I S I T W W W. N I A DA H E A LT H P L A N S . C O M .

STARTING IN 2014, ALL HEALTH INSURANCE COMPANIES MUST ACCEPT ALL APPLICANTS REGARDLESS OF PRE-EXISTING CONDITIONS. NIADA MEMBERS HAVE ACCESS TO GUARANTEED-ISSUE, LIMITED MEDICAL RIGHT NOW BY VISITING WWW.NIADAHEALTHPLANS.COM.

Dealer Plates Linked to National Law Enforcement Database

Secretary of State Connie Lawson has announced Indiana auto dealer plates are now linked to the National Law Enforcement Telecommunications System, a national database for law enforcement officers.

Linking Indiana auto dealer plates to the national database provides law enforcement nationwide with access to real-time information, greatly reducing the appeal of Indiana plates for illegal purposes.

“This is a huge step forward for our long-term security,” Lawson said. “By ensuring dealer plates can be tracked by local and national law enforcement agencies, we can better protect Indiana’s legitimate auto dealers and deter the theft of these plates for criminal use around the country.”

Prior to this enhancement, law enforcement outside the state could look up an individual’s personal vehicle information but were unable to access Indiana dealer plate data. Law enforcement can now access information on metal dealer plates used for dealership business such as test drives, and paper temporary plates issued when a vehicle is sold. Law enforcement will use the enhancement to instantly access data in routine traffic stops and to solve crimes.

The Auto Dealers Services Division of the secretary of state’s office worked with the Bureau of Motor Vehicles and the Indiana state police to link to the national database.

Through the BMV and state police systems, dealer plate and registration information makes its way to the national database.

BY OFFICE OF THE INDIANA SECRETARY OF STATE

R E G I S T R AT I O N N E W S

Dr. ColorChip Introduces Systems for Dealers

Dr. ColorChip, a nationwide provider of automotive touch-up paint, has introduced a new line of commercial automotive paint chip repair systems catered to dealership owners looking to decrease the cost of cosmetic reconditioning of used car inventory.

Dr. ColorChip now offers an entry-level basic commercial system designed for dealers with fewer than 40 used car sales per month. It is a customizable 30-color system that enables small dealerships and dealers specializing in the resale of a particular make of vehicle to effectively touch up their inventory.

Dr. ColorChip’s standard commercial system is a more comprehensive 80-color system meant to accommodate a dealer serving from 40 to 100 cars per month. Large dealers, chain dealers and auction houses will benefit most from the 160-color deluxe system, which covers the full spectrum of car colors.

“The option of bringing this system in-house is extremely attractive and makes great financial sense” to dealerships, Dr. ColorChip co-owner/developer Dan McCool said. “Its impact is immediate – driving cash to the bottom line and generating higher profits.”

For more information, contact (561) 845-6122 or [email protected], or visit www.drcolorchip.com.

V I S I T W W W. D RC O LO RC H I P. C O M .

IN_0912.indd 3 8/13/12 2:46 PM

C A R L I N E S SEPTEMBER 2012

4


ADVERTISERS INDEX

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATIONWWW.NIADA.COM • WWW.NIADA.TVNIADA HEADQUARTERS: 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR [email protected] Lines is published 10 times per year by the National In-dependent Automobile Dealers Association Services Corpo-ration, 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 6006-5203. The statements and opinions expressed herein are those of the individual authors and do not nec-essarily represent the views of Car Lines or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as mem-bers of NIADA , does not constitute an endorsement of the products or services featured. Copyright © 2012 by NIADA Services, Inc.STATE MAGAZINE MGR./SALES Troy Graff • [email protected] Andy Friedlander • [email protected]/PRODUCTION MGR. Christy Haynes • [email protected] Nieman Printing

IIADA OFFICE

ADESA ....................................... Inside Front CoverAlly ......................................................................7AutoTrader.com .....................................Back CoverChase ................................................................17Dodah.com ..........................................................5Dyer Auto Auction ..............................................16Indiana Auto Auction ..........................................12Kesler-Schaefer Auto Auction ...............................9Manheim.com .............................Inside Back CoverManheim Indianapolis ........................................14Nowcom ............................................................11Protective ..........................................................13United Acceptance ............................................15Voisys ................................................................22

EXECUTIVE DIRECTOR • DEBBIE ANDERSENP.O. BOX 1393 • CROWN POINT, IN 46308PHONE: (800) 310-3112

Board of DirectorsDave Allen Chairman of the Board317.281.7628 Bruce NortonTreasurerDrive 1 USA1512 W 96th Ave, Suite CCrown Point, IN 46307219.661.1000Fax: [email protected] Jennifer CottonDyer Auto Auction219.865.2361Fax: [email protected] Kim GrahamKim Graham, Inc.1648 A US 31 SGreenwood, IN 46143317.888.0100Fax: [email protected] Ed WhiteWhite’s Auto Sales1105 McKinley Ave.Rensselaer, IN 47978219.866.7553Fax: [email protected] Fritz KreutzingerVice PresidentFritz AssociatesP.O. Box 168Fishers, IN 46038317.842.2228Fax:[email protected] John StumpfGreater Kalamazoo Auto AuctionP. O. Box 697Schoolcraft, MI [email protected]

Mark HockettIndianapolis Car Exchange5161 S. Indianapolis RoadWhitestown, IN [email protected] Tony HoukKesler-Schaefer Auto Auction, Inc.5333 W. 46th StreetIndianapolis, IN 46253317.297.2300Fax: [email protected] Tony Del RealDel Real Auto Sales3857 State Road 38 ELafayette, IN 47905765.446.9204Fax: [email protected] Tyler TrentTrent Auto Sales1327 N 6th St.Vincennes, IN 47591812.882.3772Fax: [email protected]

Tricia TrentSecretaryTrent Auto Sales1327 N 6th St.Vincennes, IN 47591812.882.3772Fax: [email protected] Travis HuberThe Auto Store5474 US Hwy. 6, Suite APortage, IN [email protected] Harold Drees H.T.D., Inc.200 E. Main StreetThorntown, IN 46071317.402.2312Fax: [email protected]

Doug AlveyFirst Class Auto Sales, Inc.695 W. 900SHebron, IN 46341219.996.2600Fax: [email protected] Sharon BrennanFritz in Fishers8599 E 116th StreetFishers, IN 46038317.842.2228Fax: [email protected] Andrew J. InabnittApproval Auto Credit Inc.9825 Huggin Hollow Rd.Martinsville, IN 46151317.422.8001Fax: [email protected] David D. Baldwin IIBest Deal Auto Sales, Inc.1875 SR 8Auburn, IN 46706260.357.0099Fax: [email protected] Andy ZayZay Leasing & Rentals, Inc.4957 N. BroadwayHuntington, IN 46750260.356.1588Fax: [email protected] Debbie AndersenExecutive Director128 S. East Street # 1393Crown Point, IN [email protected]

TOURNAMENT-AWARDS DAY-TRADE SHOW

IIADA GOLF25

CELEBRATING 2

5 Y

EA

RS OF SERVICE

1987-2012

and Sponsorship OpportunitiesSEE PAGES 18 & 19

DON’T MISS THIS EVENTS E P T. 9 , 2 01 2 AT I R O N W O O D G O L F C L U B I N F I S H E R S

WHAT’S NEW

MAGAZINE CONTENTS03 Dealer Plates in National Database06 The CarLawyer10 Advertising or Marketing?12 New & Renew14 Online Reputation Affects Sales18 IIADA Golf Tournament & Sponsorship22 Compliance Overdrive

inside

NIADA.TV Now available at www.niada.tv:• Building an Effective Dealership Website

with Michael D. Jackson

• Tracking Devices with Jay Rose

• Legislative/Regulatory Scene with Shaun Petersen and panel

• Avoiding The Potholes with Ken Shilson

• Feel Unstoppable in 60 Minutes with Ruben Gonzalez

NIADA Dealer 20 Groups NIADA’s new 20 Groups program is designed for NIADA’s independent dealers as they do business today in BHPH, retail or both. Take your profits to the next level. Visit www.niada20groups.com

IN_0912.indd 4 8/13/12 2:46 PM

IN_0912.indd 5 8/13/12 2:46 PM


6


L E G I S L AT I V E A N D R E G U L AT O RY H I G H L I G H T S

Here’s our monthly collection of selected legislative and regulatory highlights, and a recap of some of the many auto sale and financing lawsuits we follow each month.

Remember, what we report here is not even close to being every recent development. We select those we think are important or interesting to car dealers. Note that this column does not offer legal advice. You should consult your dealership lawyer with any legal questions.

We include items from other states. Why? We want you to be able to see new legal developments and trends. Also, another state’s laws might be a lot like your own state’s laws – if AGs or plaintiffs’ lawyers are pursuing particular types of claims, those laws and claims might soon appear in your state.

As always, though, there is no substitute for checking with your own lawyer before you rely on anything we report or if you have any questions.

FEDERAL LAWThe federal news this month comes from the

Federal Trade Commission and the Consumer Financial Protection Bureau.

On June 7, the FTC announced it had charged Franklin’s Budget Car Sales, Inc., a Georgia car dealership, with illegally exposing the sensitive personal information of consumers by allowing peer-to-peer (“P2P”) file sharing software to be installed on its computer systems.

Files shared to a P2P network are available for viewing or downloading by any computer user with access to the network. In general, a file that has been shared cannot be permanently removed from the P2P network. In addition, files can be shared among computers long after they have been deleted from the original source computer.

Franklin’s allegedly compromised consumers’ sensitive personal information by allowing P2P software to be installed on its computer network as well, in violation of the FTC Act, the Safeguards Rule – which implements Section 501(b) of the Gramm-Leach-Bliley Act – and the Privacy Rule, which implements Section 503 of the GLB Act.

The car dealership sells and leases new and used vehicles and also provides financing for its customers. Because of its alleged failure to implement reasonable security measures to protect its customers’ personal information, the FTC charged that, among other personal information, the names, addresses, social security numbers, birthdates and driver’s license numbers of approximately 95,000 consumers were made available to the P2P network.

Franklin’s also allegedly failed to provide annual privacy notices and failed to provide a mechanism by which consumers could opt out of information sharing with third parties, in violation of the GLB Privacy Rule.

The settlement with the car dealership bars misrepresentations about the privacy, security, confidentiality and integrity of any personal information and requires the dealership to establish and maintain comprehensive information security programs and undergo data security audits.

On June 6, the CFPB announced it had finalized rules related to the agency’s investigative and adjudicative processes and its interactions with state law enforcement authorities. Interim versions of the rules were published earlier.

The first final rule describes the CFPB’s authority to conduct investigations and procedures for investigating whether persons have engaged in conduct that violates federal consumer financial laws, and describes the rights of persons from whom the CFPB seeks to compel information in investigations. The second rule governs the CFPB’s authority to conduct administrative hearings to ensure or enforce compliance with federal laws and regulations.

Finally, the third rule describes the process through which state officials update the CFPB on certain legal actions they bring to enforce compliance with certain provisions of the Dodd-Frank Act and regulations the CFPB may issue.

On June 4, the CFPB, Federal Reserve Board, Federal Deposit Insurance Corporation, National Credit Union Administration and Office of the Comptroller of the Currency released a Memorandum of Understanding that clarifies how the agencies will coordinate their supervisory activities, consistent with the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Under the MOU, the agencies will coordinate examinations and other supervisory activities and share certain material supervisory information concerning compliance with federal consumer financial laws and certain other federal laws that regulate consumer financial products and services; consumer compliance risk management programs; activities such as underwriting, sales, marketing, servicing and collections if they are related to consumer financial products or services; and other related matters the agencies may mutually agree upon.

STATE ENFORCEMENT ACTIONSA New Jersey superior court judge recently

ordered a dealership to disclose damage to and prior use of the used vehicles it offers for sale. The New Jersey Attorney General and Division of Consumer Affairs sued the dealership and its owner, alleging the defendants violated the Consumer Fraud Act, Used Car Lemon Law and motor vehicle advertising regulations by advertising and selling vehicles without the proper damage and use disclosures to consumers.

The complaint alleged, among other things, the defendants’ online ads failed to include the required disclosures of prior use and prior damage; the defendants violated the Used Car Lemon Law by allegedly failing to disclose existing mechanical defects in used vehicles prior to sale; the defendants misrepresented that vehicles were covered by a warranty when in fact they were not; the defendants failed to respond to consumer requests for refunds or reimbursements for repairs consumers paid for; the defendants failed to include promised

equipment such as navigation systems and floor mats; and the defendants failed to disclose that the sales price did not include licensing and registration fees and taxes.

Reviewed your ads with your lawyer lately?LITIGATION

Separate arbitration agreement enforceable despite integration clause in RISC and single document requirement: A consumer bought a car and later learned the car’s mileage had been understated and the car was a prior rental vehicle that had been involved in a collision. The buyer sued the dealer from whom she bought the car and the holder of her retail installment sale contract, alleging violations of federal odometer law, fraud, violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law and breaches of express and implied warranties.

The defendants moved to compel arbitration. The defendants contended the RISC executed by the parties incorporated by reference an arbitration agreement signed by both parties.

The buyer objected. First, she asserted the Pennsylvania Motor Vehicle Sales Finance Act requires “every installment sale contract shall be in writing and shall contain all of the agreements between the buyer and the seller relating to the installment sale of the motor vehicle sold and shall be signed by both the buyer and the seller.” Because the arbitration agreement appeared in a separate document and was not within the four corners of the RISC, the buyer contended the MVSFA rendered it unenforceable. Alternatively, she argued an integration clause in the RISC precluded consideration of any outside documents.

The federal trial court granted the motion to compel arbitration, noting both of the buyer’s arguments disregarded the most basic principles of contract law because the RISC and the arbitration agreement referred to each other, were executed together and related to the same subject matter. See Dunn v. B&B Automotive, 2012 U.S. Dist. LEXIS 77526 (E.D. Pa. June 5, 2012).

Class certification denied in case alleging certified used car program misled buyers: A buyer of a Honda certified used car brought a class action suit against the car’s manufacturer, alleging its ads led him and members of the proposed class to believe that when they bought a Honda certified used car, they were buying a “like-new, manufacturer-quality vehicle with a comprehensive warranty backed by Honda, which increase[d] the value of the car.”

The buyer also alleged Honda’s promotion of its certified used car program caused him and other buyers to overpay for their cars because they believed the manufacturer inspected the vehicles and oversaw the program, when, in fact, individual dealers inspected the cars and ran the program. The buyer moved to certify a class consisting of all people residing in 13 states who bought a Honda certified used car or, alternatively, all people in Illinois who bought such a car.

A federal trial court denied the motion. The court held the case would require a determination

C O N T I N U E D O N PAG E 8

The CARLAWYER ©

IN_0912.indd 6 8/13/12 2:46 PM

IN_0912.indd 7 8/13/12 2:46 PM


8


C O N T I N U E D F RO M PAG E 6 | The CARLAWYER

of each buyer’s motive for buying a certified car and which buyers, if any, were deceived by the ads. As a result, the proposed classes failed the typicality requirement necessary for certifying a class action. See Korsmo v. American Honda Motor Co., Inc., 2012 U.S. Dist. LEXIS 65709 (N.D. Ill. May 10, 2012).

Lessor may be strictly liable for leasing defective vehicle: Dealers thinking about Lease Here-Pay Here programs should pay attention to this case. A renter allowed his sister-in-law to drive the van he rented, but she was not listed on the rental agreement as an authorized driver. When the brakes on the van failed, several passengers were injured.

The passengers sued the rental company for strict liability, breach of warranty and loss of consortium. The federal trial court entered summary judgment for the rental company, concluding that because the plaintiffs were not the lessees or authorized drivers of the van, they could not recover against the rental company under the Second Restatement of Torts.

The federal appellate court reversed. After certifying to the Supreme Court of the Virgin Islands the question of whether a plaintiff can pursue a strict liability claim against a lessor for injuries resulting from a defective product, which the high court answered in the affirmative, the appellate court found the trial court erred in not looking to the Third Restatement of Torts for Products Liability to determine that a lessor can be strictly liable for leasing a defective product. See Banks v. International Rental and Leasing Corporation, 2012 U.S. App. LEXIS 10358 (3d Cir. (D.V.I.) May 23, 2012).

Document administration and loan fees may be exempt from finance charge if charged to all applicants: A car buyer paid a $195 document administration fee and a $300 “loan fee” in connection with her car purchase. She later sued the dealership where she bought the car and the assignee of her retail installment sale contract, claiming, among other things, they violated the Truth in Lending Act because the loan fee and administration fee were not included in the finance charge.

The federal trial court found these fees were akin to application fees and whether the fees were finance charges under TILA depended on whether they were charged to all applicants for financing at the dealership, including applicants who were denied credit. Because the court found the record was unclear as to whether these fees were charged to all applicants, it denied the buyer’s motion for summary judgment.

Before you call anything a “loan fee” in your documents, talk to your lawyer!

See Delorme v. Autos, Inc., 2012 U.S. Dist. LEXIS 64767 (D.N.D. May 8, 2012).

Dealer states claim against preparer of vehicle history reports for unfair and deceptive trade practices and libel: A dealer sued a preparer of vehicle history reports, claiming it originally issued vehicle history reports showing no structural damage on two vehicles the dealer owned, then updated those reports to show structural damage, even though no structural damage existed. The dealer asserted claims under the Lanham Act and Florida’s Deceptive and Unfair Trade Practices Act and for libel.

The defendant moved to dismiss, and the

federal trial court granted the motion as to the Lanham Act false advertising claim, but denied the motion as to the other claims. The court found the dealer had not stated a claim under the Lanham Act because the allegedly false statements were not made in commercial advertising or promotion.

With regard to the DUTPA claim, the court found the reports could be unfair or deceptive, despite disclaimers in the reports, and the dealer sufficiently alleged the defendant’s alleged misrepresentations caused it damage. Last, the court rejected the defendant’s claim that an object, such as a car, cannot be the subject of a libel claim, concluding the dealer adequately stated a claim that the defendant “harmed it by knowingly or recklessly making false statements about its vehicle inventory.” See Off Lease Only, Inc. v. Carfax, Inc., 2012 U.S. Dist. LEXIS 75234 (S.D. Fla. May 31, 2012).

Used car sale includes implied warranty of merchantability unless effectively waived or disclaimed: Two weeks after a buyer bought a used car, he returned it because it was not running properly. It needed a new timing belt, water pump, pulley, fan belt and transmission. The dealership claimed it should not be responsible for the cost of that work because the vehicle’s mileage exceeded 100,000 at the time of sale, thereby excluding it from New York’s Used Car Lemon Law.

The buyer sued in a New York small claims court. While the court agreed the Lemon Law did not apply, the court found the buyer had a claim under Article 2 of the Uniform Commercial Code, which provides that contracts for the sale of goods by a merchant include an implied warranty of merchantability, and unless such warranty is waived or modified, the implied warranty of merchantability guarantees the goods are fit for the ordinary purposes for which such goods are used.

The court found while the bill of sale stated “over 100k, no warranty,” that notation failed to effectively disclaim the implied warranty of merchantability. The court found the vehicle as sold was not merchantable due to the defective transmission because a car cannot be operated safely and in a reasonable fashion on the roads with a defective transmission. Therefore, the court ordered the dealership to compensate the buyer for the cost of replacing the transmission. See Diaz v. Your Favorite Auto RPR and DI, 2012 N.Y. Misc. LEXIS 2574 (N.Y. Civil Court May 29, 2012).

So there’s this month’s roundup! Stay legal, and we’ll see you next month.

BY THOMAS B. HUDSON AND NICOLE FRUSH MUNROTOM ([email protected]) AND NIKKI ([email protected]) ARE PARTNERS IN THE LAW FIRM OF HUDSON COOK, LLC. TOM IS THE AUTHOR OF SEVERAL BOOKS, AVAILABLE AT WWW.COUNSELORLIBRARY.COM. TOM IS ALSO THE PUBLISHER OF SPOT DELIVERY®, A MONTHLY LEGAL NEWSLETTER FOR AUTO DEALERS, AND THE EDITOR IN CHIEF OF CARLAW®, A MONTHLY REPORT OF LEGAL DEVELOPMENTS IN ALL STATES FOR THE AUTO FINANCE AND LEASING INDUSTRY. NIKKI IS A CONTRIBUTING AUTHOR TO THE F&I LEGAL DESK BOOK AND FREQUENTLY WRITES FOR SPOT DELIVERY. SPOT DELIVERY, CARLAW AND THE BOOKS ARE PRODUCED BY COUNSELORLIBRARY.COM LLC. FOR INFORMATION, CALL 410-865-5411 OR VISIT WWW.COUNSELORLIBRARY.COM. COPYRIGHT COUNSELORLIBRARY.COM 2011, ALL RIGHTS RESERVED. SINGLE PUBLICATION RIGHTS ONLY, TO THE ASSOCIATION. (4/12) HC# 4815-1804-1615.

Rent-A-Wreck of America, a franchise company with more than 150 used car rental locations throughout the U.S., is now offering NIADA members a $1,000 discount off the purchase of a franchise.

Rent-A-Wreck, an endorsed NIADA National Member Benefit Partner, has extended its commitment to independent dealers by pledging to contribute $1,000 to the dealer’s state association or the national association for every franchise sold to an NIADA member.

Since 1973, Rent-A-Wreck of America has offered used car dealers a franchise they can operate at their existing retail sales lot to bring extra revenue and additional foot traffic with little additional overhead.

“Our franchise brings used car dealers everything they need to become a player in their local car rental marketplace,” Rent-A-Wreck of America vice president of operations Michael DeLorenzo said. “We have financing, insurance, a global reservation system and a comprehensive and sophisticated training system that makes car rental a near turnkey opportunity for a used car dealer.

“Rent-A-Wreck is a great brand with a long and successful history with used car dealers. Our franchisees who are used car dealers see the benefit of additional cash flow and profits from rentals, but also see that the increased foot traffic helps them sell more cars as well.”

Rent-A-Wreck franchise owners receive access to a fleet leasing and purchase program that includes access to closed factory sales, a reservation system connected to multiple global booking channels, online travel agencies, rentawreck.com and 1-800 telephone reservations, point of sale integration with the reservation system, a comprehensive training program in pre-open and post-open phases, a dedicated area representative for recurrent and ongoing needs, insurance and more.

For more information, visit www.rentawreck.com/NIADA or call (469) 939-6132 to speak to a company representative.

Rent-A-Wreck Offers $1,000 Off a Franchise

E X T E N D E D C O M M I T M E N T

IN_0912.indd 8 8/13/12 2:46 PM


9


M A R K E T N E W S

Report: Expect to See More HybridsExpect to see more hybrids cruising

around the world’s highways in the next few years.

According to market research report distributor ReportStack.com, the global hybrid car market is expected to grow at a rate of 18.92 percent over the next three years.

The cause for the potential double-digit growth: increasing global oil consumption, the report, titled “Global Hybrid Car Market 2011-2015,” explained.

Moreover, as governments around the world try to cut down on fuel emissions, the hybrid car market has “been witnessing an increase in initiatives by governments to create awareness and acceptance of hybrid cars,” the report said.

The report also cites labor arbitrage, such as the various advantages offered

by the hybrid car to the end user, such as energy efficiency, less pollution, better performance, reduced dependency on natural resources and more, as reasons for the hybrid market expansion.

That said, even with the push from politicians, the high cost of hybrid cars is acting as a barrier to the market growth, the report said.

‘’With the time and research on the development of the battery systems of hybrid cars, the overall cost of batteries and total cost of ownership will decrease,” an analyst from the publishing automotive team said. “By 2014, the total cost of ownership of plug-in hybrid electric vehicles with a battery of 10 kilowatt-hours will be below that of an internal combustion engine vehicle, and by 2017, the total cost of ownership of plug-in

hybrid electric vehicles with a battery of 15 KWh will be lower than an internal combustion engine vehicle.

“The total cost of ownership of battery electric vehicles will be less than an internal combustion engine vehicle by 2020 with the development of batteries. This reduction in cost will fuel the growth of the global hybrid car market.”

Who will benefit most from this potential growth?

The vendors currently dominating the hybrid market space include Toyota Motor Corp., Honda Motor Co., Ford Motor Co., and Nissan Motor Co. Ltd., the report noted.

General Motors Co., BMW AG and Volkswagen Group are also expected to play a role in the future fuel-efficient vehicle market.

E X T E N D E D C O M M I T M E N T

IN_0912.indd 9 8/13/12 2:46 PM


10


Webster’s defines advertising as the action of calling something to the attention of the public, especially by paid announcement.

Webster’s defines marketing as the process or technique of promoting, selling and distributing a product or service.

Similar, but different.Just like the lifelong struggle between

good and evil, whether to put resources into advertising to increase traffic (and thus sales) or apply efforts to marketing to increase traffic (and thus sales) is a constant battle for today’s Buy Here-Pay Here dealer. As with life, both have their place and, to some extent, are necessary.

Deciding which basket you should put the most eggs in depends on a few factors.

If the goal is to increase overall market share, advertising gets most of the eggs. If building through repeat and referrals is the goal, marketing gets the eggs. And for those wanting the best of both worlds, the eggs should be split equally between the two baskets.

When it comes to the advertising basket, as with the marketing basket, how the eggs are distributed within plays an integral part in the overall effectiveness.

There are four main types of advertising media that seem to be the most effective for the BHPH industry: television, radio, Internet and print.

Television seems to be the most popular among BHPH dealers. The keys to effective television advertising are not only being on the right stations, but also on the right programs at the right times.

That’s especially true when running commercials on local stations. Having a large number of cheap spots appearing between midnight and 6 a.m. will likely only be seen by a select few, who might not be your idea of the few you want to select.

In markets where satellite service is prominent, local stations are the best bet. Again, pick the station or stations that offer programming your customers are watching. A spot airing during Judge Judy will probably produce more business than the same spot airing during 60 Minutes.

In markets where cable service is more prominent, there is usually more bang for the buck. Most cable providers offer packages of channels in which any combination of channels

offered can be chosen.As with local stations, timing and program

selection are key. A spot airing during Ultimate UFC Fight Night is likely to produce more than the same spot during SportsCenter. As with all television advertising, choose programming and times that fit your customers’ viewing habits, not yours.

Radio is the next as far as popularity. As with television, pick the times and stations that fit your customers’ listening habits. A simple way to gauge that is by making note of what stations are programmed into the radio when a vehicle is traded in, or noting which station the customer turns on during a test drive. Doing that costs nothing and tends to be more reliable than expensive radio surveys.

Use of the Internet has picked up drastically in the past year. Gone are the days when only big BHPH dealers had websites – websites have become the rule, not the exception.

The Internet is proving to be the best way to reach the new credit-challenged customer – the customer who previously received bank financing but now, due to economic challenges, must seek alternate financing.

That customer has a tendency to be a web shopper, so not only having a website, but an effective one is paramount to capturing him. Just to put Internet usage in perspective, a recent study by AutoTrader and the National Alliance of BHPH Dealers revealed 80 percent of customers in the BHPH market surveyed had done significant research online prior to purchasing. Our customers are online. At least 80 percent of them, anyway.

Last on the advertising list is print. While print has been a staple for the new car industry, it hasn’t produced the same success for BHPH dealers. Beside the cost factor, overall circulation is substantially down, as witnessed by some very prominent newspaper closings recently – thanks in part to the emergence of the Internet.

For BHPH, what are known as “throwaways” – free publications found at the local grocery store, such as The Thrifty Nickel and Star Shopper – seem to be most effective. Billboards can also be classified in this category, but as with most things in business, location is the key.

When it comes to the marketing basket, a few methods have proven effective for BHPH

dealers, including repeat and referral programs, promotions, giveaways and the Internet. All BHPH dealers should have some eggs in this basket.

The most popular form of marketing is repeat and referral programs. Some examples of repeat programs are lower interest rates, lower down payments and a free vehicle after a certain number of vehicles have been purchased. Referral programs include cash for each customer referred, scratch-off cards with varying rewards for each customer referred and a free vehicle after a certain number of referrals.

With the current state of the auto industry, BHPH dealers are extending their referral programs to new car dealers to capitalize on the lack of funding available. Those tend to be a little more costly, but are worth it as the customers turned down are definitely in the market to buy.

Promotions and giveaways are becoming more and more prevalent and are proving to be effective. They include everything from drawings for cash or gift certificates to incentivizing on-time payments to promotions in which paying off a vehicle is the grand prize. Five years ago, only a handful of BHPH dealers were doing any of those. Now very few dealers aren’t involved in that type of marketing.

The Internet has become a good marketing source as usage has increased in the last few years. Where once it seemed very few BHPH customers had access to the worldwide web, it now seems just about all do.

Online payments and online application options are the two most prevalent web offerings. Dealers are also taking advantage of their websites to tell their story – a chance to explain some basic policies and procedures and set customers’ minds at ease that their credit history is understood.

Advertising and marketing play valuable roles in building and maintaining a successful BHPH operation, and both of those baskets need some eggs. Just remember, both should be geared to your customer base, not you.

BY BRENT CARMICHAELEXECUTIVE CONFERENCE MODERATORNCM ASSOCIATES [email protected]

T H E Y ’ R E N O T N E C E S SA R I LY O N E A N D T H E SA M E

Advertising or Marketing?

IN_0912.indd 10 8/13/12 2:46 PM

IN_0912.indd 11 8/13/12 2:46 PM


12


DealerRater Adds Chat SoftwareThe car dealer review website DealerRater has partnered with Contact At Once! to add a

live chat feature for its certified dealer partners, enabling real-time chat between automotive dealerships and online shoppers.

“Our third-party generated dealer reviews and ratings have helped car shoppers to determine and validate which dealerships they would like to do business with,” DealerRater president Chip Grueter said. “We believe the integration of Contact At Once! chat will enable our certified dealers to connect with in-market consumers in a way that is faster and more convenient than an email or a phone call.”

The Contact At Once! dealer chat network includes third-party listing sites such as AutoTrader.com, Cars.com and UsedCars.com, as well as standalone dealership and dealer group web pages.

Once enabled, dealers can respond to consumer chats originating from anywhere in the dealer chat network. Dealers that use dealer live chat typically experience a 25 percent increase in online shoppers contacting the dealership.

S O F T WA R E N E W S

Auction Update: ManheimThe Manheim 2012 Q2 update is a quick look at web traffic, online visits and transactions

at Manheim.com for the second quarter of 2012.Mobile: Mobile visits to Manheim.com are up an astounding 368 percent over last year –

4.76 million vs. 1.02 million for the second quarter of 2011. One in three customers accessed Manheim.com on a mobile device, an indication mobile is becoming increasingly popular in the auto remarketing industry as dealers use smartphones to conduct business at their convenience.

More customers are choosing to do business online – 25 percent of all transactions for the quarter were made by an online buyer.

Digital visits: Digital visits to Manheim are up 12 percent over last year.Simulcast turns 10: More than 4 million vehicles have been purchased via Simulcast

since its launch in 2002, representing almost $60 billion worth of inventory.Buying: More than 30,000 customers bought vehicles online in 2012.Selling: More than 20,000 customers sold a vehicle online in 2012.

AU C T I O N N E W S

The Auto Park*Ken NorrisPlymouth

Lee’s Auto Express*Brian WardenIndianapolis

Celebrity Auto*Johnathan R. BrownIndianapolis

Merchant Services*Scott NorrisIrvine

A-1 Auto & TruckFloyd GrossIndianapolis

Trent Auto SalesTyler & Tricia TrentVincennes

Kramer Motor Co.Christopher KramerShelbyville

Homestead MotorsJack NewenhouseHighland

Kesler Schaefer Auto AuctionSteve KeslerTony HoukIndianapolis

Grote AutomotiveFred GroteFt. Wayne

TNT Auto Sales & ServiceTrent & Troy DavisKokomo

Carver Body ShopBilly CarverJeffersonville

Mr. Care AutoBeecher GreerCambyBidzpin*Shawn FosterWest Lafayette

Express Motor Vehicle Administration*Kevin CalvertIndianapolis

Absolute Surety*Blair AshtonOrlando

Corkle Auto SalesRichard CorkleAngola

Basic Auto SalesMark SteppAttica

Dealer TrackDiane ZewalkGroton

Fritz AssociatesFritz KreutzingerFishers

Greer Auto SalesScott GreerDeMotte

H & H Auto Sales of CambyRex HattonCamby

Instant Auto FinanceGretchen CarpenterSouth Bend

Justice Auto CenterKen JusticeGreenwood

Kim Graham Inc.Kim GrahamGreenwood

Lewis Motor SalesDave LewisLafayette

Oak MotorsBob OkeleyAnderson

Snyder Auto SalesRichard HermaDeMotte

Spoors Auto SalesDan SpoorLaPorte

Bob’s 31 South Auto SalesBob HayesFranklin

Omni Auto SalesRobert WalczakWhiting

Best Buy MotorsJaspal GothraLafayette

Mint Auto SalesSam KamdarFt. Wayne

Manheim LouisvilleJamie SimsClarksville

AMS CarsAlex ShapiroIndianapolis

Whitewater MotorsGary RossWest HarrisonKey Auto SalesLarry KeySellersburg

Crews CarsRoger NeaweddeJeffersonville

Sun MotorsFrank Roselli Jr.Brownsburg

AF Sales and ServiceIndianapolis

Southwest Auto SalesRandy OlryFt.Wayne

Johnny’s Auto MotorJohnny YunIndianapolis

Small Town Auto SalesJ.J. ZeitzFortville

Indiana Wholesale DealersLance EzraHammond

Bells Auto SalesHammond

IIADA RECOGNIZES THE FOLLOWING MEMBERS

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

The following members have joined* or renewed their membership since our last issue of Car Lines.

IN_0912.indd 12 8/13/12 2:46 PM

IIADA RECOGNIZES THE FOLLOWING MEMBERSThe following members have joined* or renewed their

membership since our last issue of Car Lines.

IN_0912.indd 13 8/13/12 2:46 PM


14


We all know the saying, “Sticks and stones may break my bones, but words will never hurt me.”

Unfortunately, the reality is for any business, words can break you.

It is imperative to your dealership that you proactively manage and build your online reputation. You need to have strategies in place to monitor what is said about you and respond appropriately.

That starts with knowing the sites available for dealership reviews. Google+ Local or Google Places, Yelp, Cars.com, DealerRater and CarHelp are some of the most popular sites.

Monitoring what is posted online about you allows you to contact customers who were dissatisfied and address their complaints. Addressing their concerns effectively eliminates the complaint.

Once you have satisfied the angry customer, you can ask him to please revise his statement and to always communicate with you directly should he have a concern. That responsibility should be handled by someone who has the highest authority to make customer decisions,

such as giving away a free service or replacing a bare tire on a vehicle that was just purchased from your pre-owned selection.

Credibility is the most important part of any dealership’s sales.

It’s a good idea to have one person monitor review sites and report any issues to the general manager, who can then direct customers to the managers of the departments about which they had complaints. Every employee who has contact with customers should be trained on how to handle and manage customer complaints, only escalating the situation to the general manager when a decision is needed beyond the employee’s authority.

Next, you need to effectively encourage your clients to post positive reviews about you. That’s actually much simpler than you think. Just ask.

If there is a customer you know comes in regularly for service, or who is purchasing his third vehicle from you, just say, “Thank you for your continued business. Can I ask what makes you continue to come back?” His response is your review.

Ask if he would mind posting a positive review about you, or if he would mind being recorded with a testimonial. That is a great tool to place in the header of your website, so that every prospect who visits your site receives a positive review to encourage him to come in and become a customer.

There are several ways to encourage a review, but you must be careful not to encourage or blindly ask your customers to post negative reviews about you. It takes 18 positive reviews to outweigh one negative review. And once a negative review is posted, it is almost impossible to get it removed.

The only way to rectify a negative review is to contact the person who posted it, address his complaints and turn the complaint into a compliment. That’s why monitoring what is said about you is imperative.

There are proactive measures you should take before a negative review is posted about you. Not only do you need to constantly encourage your customers to post positive reviews, you need to have someone responsible

How Your Online Reputation Affects Sales C R E D I B I L I T Y I S T H E M O S T I M P O R TA N T PA R T O F A N Y D E A L E R S H I P ’ S SA L E S .

IN_0912.indd 14 8/13/12 2:46 PM


15


for following up with each and every customer after the purchase of a vehicle or a service visit to ensure every customer was completely satisfied with his experience.

Have a polite script of no longer than 30 seconds in place. It is important that the person responsible for contacting your customers has the authority and understanding of what goes on in the dealership to proactively address any complaints immediately. The customer should not be passed to two or three managers, with none of them really sure of the entire situation. Making the customer repeat himself raises his level of frustration.

The person contacting the customer initially should be able to make a decision.

“I understand, Mr. Smith.” Repeat the problem back to the customer so he knows you truly understand. “I apologize that your visit was not completely satisfactory. I am here to help you. We need to have you bring your vehicle back to our service department so we can make sure to correct this problem. I will have a loaner car available for you. What time would be best for you, morning or afternoon?”

No promise was given, no diagnosis, no one was thrown under the bus. We listened, we acknowledged and we acted. Now we will have a manager handle the customer from here, with a full understanding of the situation and without

passing the customer to two and three voicemails.Follow-up is one of the most important parts of

your online reputation. See the problem and fix it before it causes permanent damage.

Before contacting a customer for follow-up, you should know:

• When he came in.• What he came in for.• If service, was the service internal, warranty,

or customer pay. If a customer paid for the service, he is more likely to be upset or request some type of compensation if dissatisfied, and you should be prepared for that.

• Who was the service advisor or sales representative? The customer will expect you to know, and if you don’t, it immediately makes him feel impersonalized and like he is insignificant or unimportant.

• Who is the manager of the department? If there is a complaint, who will the customer be working with?

It is important to tell the customer who he should ask for and to let him know that a manager will be working with him personally to address his concerns. If he was unhappy with his service advisor or sales representative, he will not want to work with him/her to address the complaint he feels the advisor/sales rep might have caused.

Once the complaint has been addressed, the manager should build the integrity of the service

advisor or sales representative back up with the customer and bring the customer and service advisor or sales representative together for an apology and understanding. If a manager cannot support his employee, the employee should not be there. Furthermore, that customer might need to work with that employee again. You never want to get into the problem of having to be careful of who you place customers with.

If the follow-up process is not handled correctly, you will end up with more complaints than if a follow-up was not made. Be sure to have policies in place for how to handle a complaint and be sure every manager understands the importance of handling a complaint with the highest sense of priority and urgency.

The bottom line is, your dealership needs to have strategies in place to ensure its reputation is secure. If your online reputation is not being monitored and proactively maintained, it will decline.

With 80 percent of your prospects checking your reviews before making a purchasing decision, it should be one of your top priorities.

BY PETER MARTINPETER “WEB DOC” MARTIN IS PRESIDENT OF CACTUS SKY COMMUNICATIONS. HE CAN BE REACHED BY CALLING (941) 756-1932 OR E-MAILING [email protected]. FOR MORE INFORMATION, VISIT WWW.CACTUSSKY.COM AND CLICK ON “REPUTATION BUILDING”

IN_0912.indd 15 8/13/12 2:46 PM


16


16

PayNearMe, the cash transaction network, has launched PayNearMe Lending, a cash payment system for subprime lenders, and has teamed with Westlake Financial Services to integrate PayNearMe’s technology into existing systems, enabling customers to repay retail installment contracts in cash 24/7 at any of 6,600 participating 7-Eleven® stores nationwide.

Using PayNearMe, customers of Westlake’s network of more than 15,000 new and used car dealers will be able to make account payments in cash at their local 7-Eleven store, where a unique loan barcode or PayNearMe Card is scanned at the register. With PayNearMe, the transactions are completed instantly, and consumers’ accounts are credited instantly.

“PayNearMe offers a remarkably simple way to make our collections process more efficient,” Westlake director of operations John Mason said. “We anticipate reduced operational costs while adding payment locations for our customers.”

“Subprime lenders need to make cash payments as easy as possible for themselves and their consumers,” PayNearMe CEO Danny Shader said. “We’ve dramatically changed how cash payments are made by opening up thousands of additional payment locations, accessible any time they are needed.”

PayNearMe Lending, a secure hosted web application, provides a comprehensive turnkey service lenders can use to accept cash payments without integration. Lenders can set up PayNearMe Lending in less than 15 minutes and start collecting immediately, and can add additional sites almost instantly. Because PayNearMe Lending does not require any integration with existing systems, it can be used by lenders of any size.

“We appreciate that PayNearMe allows our customers to make payments at any time,” Tidalwave Finance Corp. president Ted Beresford said. “In fact, we’ve been pleasantly surprised by how many customers make their payments at 10 p.m.”

V I S I T W W W. PAY N E A R M E . C O M

Westlake Financial Adds PayNearMe’s Technology

Autobytel Launches Mobile WebsiteAutobytel Inc. has launched a dedicated mobile version of its website.Studies show shoppers prefer using a browser to a downloadable mobile app, so

Autobytel’s mobile website was developed from the ground up with today’s mobile consumer in mind. Autobytel mobile includes many of the popular features on the full website built specifically for the mobile environment.

The site features a customized dealer directory that allows consumers to find local dealers as well as new and used vehicle research and automotive industry news, and customized shopping tools such as a used car finder, car calculators and the ability to determine used car values and submit purchase requests directly to dealers.

For more information, visit www.autobytel.com.

M O B I L E N E W S

AFC Offers Expanded Financing for RV Dealers Floorplan provider Automotive Finance Corporation (AFC) has expanded its inventory finance product offerings to include more options for recreational vehicle dealers.

AFC said its RV inventory financing includes no restrictions on the type of RV unit a dealer can purchase – no make, model or year constraints.

“Many providers only finance a dealer’s new RV inventory,” AFC director of business development Neill Waters said, “and we consequently saw many RV dealers seeking financing that better met their used RV purchasing needs.”

AFC will advance 100 percent of an RV dealer’s auction purchases at more than 1,000 AFC-approved auctions, and the company’s financing gives dealers an extended time to pay off their units on floorplan for used inventory purchased from auction or taken in on trade. AFC’s RV financing applies to used motorhomes, travel trailers, fifth-wheel campers and other towable units.

I N D U S T RY N E W S

IN_0912.indd 16 8/13/12 2:46 PM


17


M A R K E T I N G N E W S

Help Your Dealership Go for the GoldThink your shot at living like an Olympian

ended after your high school or college athletic career?

Think again.Successful Olympic athletes employ a set

of traits and techniques you can still use to help market your car dealership. The elements that work together to create popular medalists, with thousands or millions of people rooting for them, can similarly elevate your dealership in the eyes of your customers.

On the website marketingprofs.com, Veronica Maria Jarski showed how winning Olympians’ behavior relates to marketing, and that applies perfectly to the way your car dealership can win by adopting the same focus.

Don’t believe it? Here’s how you can use what works for the gold medal winners:

Share your story: The personal story behind the winners often creates massive support for one athlete or another, or sometimes an entire team. You weren’t dropped onto this earth running a successful auto dealership, so go ahead and share what it took to get there.

Every dealership began with a lifelong love of cars, a careful plan or a less-than-direct route that included far-flung adventures. Whatever the story, knowing it helps people identify with you. Understanding the journey

builds support for current success. Deliver on your promises: Actions count

far more than words, so prove what matters to you with every engagement, every customer and every sale. The claims you make about what distinguishes your dealership carry a lot more weight when they’re backed up in the interactions that happen minute by minute.

Use the right tools: A diver can’t use a pommel horse and a gymnast doesn’t get any mileage out of a pool. Make sure your marketing messages go to the audiences that can use them best. Your brand and your message should be consistent, but it’s smart to craft and deliver the relevant points with laser targeting.

Details, details: Try to think about the dealership experience from a customer’s perspective. The little details of each phone call or visit are critically important in shaping the impression visitors take away from any contact.

It’s all connected: Authenticity matters everywhere your dealership has a presence. The customers who seem to disappear are still making waves and influencing your reputation long after they’ve left the premises. What happens on the showroom floor and in the finance department today will assuredly be reflected someday, somehow, in a conversation online or in person where you don’t hear it.

You can only run today’s race today: Letting go of the past, wins and losses alike, is the best way to free up energy to focus on today’s challenges. Learn from what worked and what didn’t, but greet each new customer with fresh and full intent to create a lasting asset.

Remember the team: Good sportsmanship is appealing. Acknowledging all the people who make your dealership successful is as relevant as the cars and deals themselves. From the manufacturers to the service personnel, your team merits respect and appreciation. They will appreciate the recognition, too. Happy employees will work harder and are more loyal.

While you might never stand on a podium and proudly listen to the national anthem while your fans cheer wildly, you can certainly enjoy strong popular support and the loyalty of customers who see you as a winner.

Follow these strategies and go for the gold!

BY JIM FITZPATRICKJIM FITZPATRICK IS PRESIDENT/CEO OF FITZPATRICK ADVERTISING, A FULL-SERVICE AUTOMOTIVE ADVERTISING AGENCY, AND FOUNDER OF FORCE MARKETING, A DIGITAL AND DIRECT MARKETING COMPANY. FOR MORE INFORMATION, CALL 1-800-917-8637, EMAIL [email protected] OR VISIT FITZPATRICKADVERTISING.COM.

IN_0912.indd 17 8/13/12 2:46 PM


18


Participants’ Names:

1._____________________________________________________________________Company_________________________________________________________

2._____________________________________________________________________Company_________________________________________________________

3._____________________________________________________________________Company_________________________________________________________

4._____________________________________________________________________Company_________________________________________________________

No. of golfers_____________________ @ $ 95 _______________________________Total Enclosed_____________________________________________________

_____Check or money order included

TOURNAMENT-AWARDS DAY-TRADE SHOW

I I A D A G O L F T O U R N A M E N T - A W A R D S D A Y - T R A D E S H O W

Registration Fee: $ 95 per person • Breakfast and registration 9 a.m.Dinner after golf included • Team Awards to 1st, 2nd and 3rd place, longest drive, closest to the pin,

longest putt • Golf chairmen: Fritz Kreutzinger and Dave Allen

SEND ENTRY FEE TO: IIADA • P.O. BOX 1393 • CROWN POINT, IN 46308 • FAX REGISTRATION – CREDIT CARD ONLY TO: 219.663.5294

IIADA GOLF

_____Visa _____ MasterCard Card No._________________________________________________Expiration Date_________________________________________

Name on Card (please print)_________________________________________________Address of Cardholder___________________________________________

Phone____________________________________________________________Card Holder’s Signature__________________________________________________

I R O N W O O D G O L F C L U B • 1 0 9 5 5 F A L L R O A D • F I S H E R S , I N

Participants’ Company:

FAX REGISTRATION – CREDIT CARD ONLY TO: 219.663.5294

25CELEBRATING

25

YE

ARS OF SERVICE

1987-2012

PLEASE CALL 800.310.3112 OR EMAIL I [email protected] FOR DETAILSPLEASE REGISTER EARLY TO RESERVE YOUR PLACE!! !

IN_0912.indd 18 8/13/12 2:46 PM


19


Platinum – $3,000 IncludesSponsorship of dinner and driving range Outing registration for foursome

Diamond – $2,000 IncludesSponsorship of breakfastOuting registration for foursome

Gold – $1,200 IncludesSponsorship of a beverage cartOuting registration for twosome

Silver- $ 600 IncludesSponsorship of closest to the pin, longest putt or longest drive

Bronze – $ 300 IncludesSponsorship of golf hole

______ Platinum $3,000 ______ Diamond $2,000 ______ Gold $1,200 ______ Silver $600 ______ Bronze $300 ______ Total

YES! WE WANT TO BE A SPONSOR FOR THE IIADA 25TH ANNIVERSARY GOLF TOURNAMENT-AWARDS DAY-TRADE SHOW. PLEASE INDICATE THE SPONSORSHIP OF CHOICE.

Excellent sponsorship opportunities are available for our 25th Anniversary Golf Tournament-Awards Day-Trade Show event, Sept. 9, 2012 at Ironwood Golf Club in Fishers.

Market your company and support the Indiana Independent Automobile Dealers AssociationAll sponsors will be recognized at the tournament, on our website (iiada.com) and in our Car Lines publication

Payment by ______ Check ______ Visa ______ MasterCard ______

Credit Card Number_________________________________________________________________________ Expiration Date __________________________________

Contact Name:______________________________________________________________________________ Organizational Name:______________________________

Address:_____________________________________________________________________________________________________________________________________ City_____________________________________________________________________State___________________ Zip Code___________________________________

Phone __________________________________________________________________Signature____________________________________________________________

PLEASE SEND OR FAX TO: IIADA • P.O. BOX 1393 • CROWN POINT, IN 46308 • PHONE: 800.310.3112 • FAX: 219.663.5294

2 5 T H A N N I V E R S A R Y S P O N S O R E X C L U S I V E O P P O R T U N I T Y

2 0 1 2 G O L F O U T I N G S P O N S O R S H I P O P P O R T U N I T I E S

GOLF TOURNAMENTSPONSORSHIP OPPORTUNITIES

25CELEBRATING

25

YE

ARS OF SERVICE

1987-2012

PLEASE CALL 800.310.3112 OR EMAIL I [email protected] FOR DETAILS

IN_0912.indd 19 8/13/12 4:49 PM


20


For an annual membership investment of only $275, which includes an NIADA membership, you get a $2,300 Auto Auction Coupon Book and a whole lot more!

Payment by: Check Visa MasterCard Credit Card Number: ______________________________Expiration Date: __________________________________ Signature: ______________________________________________________________________________________________

Dealership Name ____________________________________ Dealer Lic# _______________________________________

Mail Address ___________________________________________________________________________________________

County ____________________________________________City/State/Zip ______________________________________

Phone _____________________________________________Fax _________________________________________________

E-mail ___________________________________________________________________________________________________

Website _________________________________________________________________________________________________

Owners (Please Print) __________________________________________________________________________________

Recommended By ______________________________________________________________________________________

IIADA • PO Box 1393 • Crown Point, IN 46308Phone: (800)310-3112 • Fax: (219)663-5294 [email protected]

It is important to me to be recognized as a professional! Enclosed are my annual dues of $275 to make sure that my business has all the advantages IIADA/NIADA Inc., provides to put me at the forefront of my profes-sion. By completing this form, I agree to abide by the Code of Ethics. Also, I am consenting to and giving IIADA/NIADA Inc., its affiliates and subsidiaries, my permission to (until I give written notice to discontinue) contact me and provide information to me at the mailing and email addresses, telephone and fax number(s) I have provided.

This is our personal invitation to you to join the State and NationalIndependent Automobile Dealers Professional Associations

Note: 25% of dues are non-deductible

Please include your email address, phone and fax numbers so that we can easily communicate with you. Membership dues are $275.00 for 12 months from the date you join, and your NationallADA dues are included. Please send application and check or credit card information to: IIADA, PO Box 1393,Crown Point, IN 46308

Indiana Independent Automobile Dealers Associations

The IIADA Has the Independent Auto Dealer Covered!

The IIADA Has the Independent Auto Dealer Covered!

IN_0912.indd 20 8/13/12 2:46 PM


21


2012 IIADA MEMBER auction couponsFor A Total Savings Of $2,300!

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

Programs for Extra Profit• Dealer Bond at Member Rates• Dealer Insurance• Health Insurance• Forms• Financing• Software• IIADA Help Desk• National Dealer Network Skip Tracing Contacts• College Scholarships• Prescription Drug Card• National Dealer Network

Publications• Car Lines Publication• Used Car Dealer Magazine• Federally Required Safeguards Policy Document• Federally Required Red Flags Rules Policy Documents• IRS Audit Technique Guide For the Independent Used Car Dealer• Current Industry Information• Legislative Alerts• NIADA Annual Market Analysis

Professional Development• Certified Master Dealer Program• Free Access to NIADA.tv Training at Your Business• Access to IndependentDealer.com where dealers go for answers• NIADA Membership and Window Decal• IIADA “Symbol of Integrity” Logo and Window Decal • NIADA Annual Convention and Trade Show• Code of Ethics

Representation• State Lobby and Consultant Services• State Legislative and Regulatory Tracking and Reporting• Federal Lobby and Consulting Services• Federal Legal, Legislative and Regulatory Tracking and Reporting• Indiana Department of Revenue Liaison• Indiana Dealer Services Liaison• Indiana Bureau of Motor Vehicles Liaison

For $275 You Get Membership In Both IIADA and NIADA

Plus All Of The Following Benefits And Even More That Are Not Listed!

abc Detroit/ToledoADE of IndianapolisADESA Cincinnati/DaytonADESA IndianapolisADESA LansingADESA Northern OhioADESA Queen CityClark County Auto AuctionDyer Auto AuctionElkhart Public Auto AuctionGreater Kalamazoo Auto AuctionGreater Rockford Auto Auction

Indiana Auto Auction, Inc.Indianapolis Car ExchangeKesler-Schaefer Wholesale Auto AuctionManheim Arena IllinoisManheim ChicagoManheim CincinnatiManheim IndianapolisManheim LouisvilleManheim OhioOPENLANEWolfe’s Auto Auctions, Evansville/Terre Haute/South Bend

IN_0912.indd 21 8/13/12 2:46 PM


22


BY CHIP ZYVOLOSKICHIP ZYVOLOSKI IS A SENIOR ATTORNEY FOR INDIRECT LENDING AT WOLTERS KLUWER FINANCIAL SERVICES. FOR MORE INFORMATION, VISIT WWW.WOLTERSKLUWERFS.COM/INDIRECT.

There is no denying that dealers and lenders have grown accustomed to a regulatory environment that is constantly changing, with new laws and regulations.

But today’s regulatory landscape is different than it was years ago – and not just because the requirements continually change.

If you feel like it’s becoming increasingly complex, you’re not alone. Here are the likely culprits:

Shorter notice: Some states have started publishing regulatory changes on rather short notice. For example, in New Mexico the attorney general recently gave 30 days’ notice to add a new spot delivery disclosure to the sales transaction document or purchase order.

The short notice was made worse because a proposed regulation had not been published – at least not recently – so the final regulation came as a surprise to the industry. While one month might feel

Regulatory Landscape Feeling Tougher? You’re Not Alone

like a long time to add one disclosure, the required notice is quite large and requires substantial formatting changes to the documents affected.

The attorney general eventually delayed the effective date of the regulation by 60 days, apparently after significant industry feedback.

More frequent changes and updates: Across the country, there seem to be more frequent changes being made. That has clearly been the case with state motor vehicle title forms. Previously, those forms were rarely revised. But over the past few years, some states have changed their title forms as many as two or three times per year.

One potential driver for that might be that technology now allows states to redesign and reissue their forms and revise (increase) the related fees more easily. But often the changes come with little or no notice, which underscores how important it is for dealers and lenders to be confident in their ability to monitor the changes that are constantly taking place.

Volume of information: While it can be difficult to keep up with the pace of change and various deadlines and effective dates, it’s also quite a task to consume the volume of information and content surrounding new laws and regulations.

For example, the Consumer Financial Protection Bureau (CFPB) published a proposed rule July 9 regarding integrated mortgage disclosures under RESPA and the Truth in Lending Act. It was one of the first significant proposed rules from the CFPB, and the planning process involved extensive research and solicitation of industry and consumer feedback.

As a result, the proposed rule and explanatory materials total more than 1,000 pages. The good news is the proposed rule provides significant details and explanations of the changes. The bad news is that many pages of material can be overwhelming (aren’t you glad you’re not in the mortgage lending business?).

Operating in a highly regulated industry, one can’t help but wonder if that is an indication of the volume of change yet to come and how dealers and lenders will absorb all of the changes and their nuances.

Disparate technology systems: Though computer technology allows us to do many things faster than before, disparate file formats, field naming conventions, calculation engines, software and hardware, and reliance on multiple vendors can make it difficult to quickly change or revise transaction documentation and its completion tools. That often means all the component parts need to be updated in sequence rather than in parallel – adding more time to make the required changes.

Today’s environment is characterized not only by constant change, but by tougher enforcement as well. There is more visibility and greater scrutiny of compliance and risk management in all organizations. Dealerships and financial institutions should regularly question whether they feel confident that new laws and regulations are being embedded in their business operations.

The challenges underscore a need for greater operational efficiency. Disparate systems and procedures can make even relatively simple changes more time-consuming and complex.

As you prepare for additional changes, consider reviewing your process maps, technology, vendor coordination and steps necessary to respond to compliance changes. Creating greater operational efficiency now will make it that much easier for you to respond to the inevitable next compliance crunch-time event.

C O M P L I A N C E OV E R D R I V E

IN_0912.indd 22 8/13/12 2:47 PM

IN_0912.indd 23 8/13/12 2:47 PM

IN_0912.indd 24 8/13/12 2:47 PM