oiada dealers resource dec 2012

DEALERS’ RESOURCE

Oklahoma Independent Automobile Dealers Association

In This Issue

Visit Us Online At www.e-oiada.com

From Our Office to Yours

Celebrate...

The warmth of the Season,

the beauty of the Season,

the memories of the Season,

and the joy of the Season

At this special holidAt this special holiday time of year, we’re thankful to be a

part of your life.

And thank you for being a part of ours.

We wish you peace, prosperity, good health and joy

throughout this holiday season and all the seasons to come.

The Board and staff of the Oklahoma Independent Automobile Dealers Association.

December 2012

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

PRSRT Standard

U.S. Postage

PAIDDALLAS, TEXAS

Permit No. 2079

Change Service Requested

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

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DECEMBER 2012 D E A L E R S ’ R E S O U R C E

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

OIADA OFFICE813 NORTHWEST 34TH MOORE, OK 73160EMAIL: [email protected]

ROSE & ODELL MORGAN, Executive DirectorsJACKIE GARNER, Of!ce Manager

AMBER SNOOK, Administrative AssistantJARED MORGAN, Electronics/Software Technician

LYNNA KAY, ProgrammerSTEVE MORGAN, ConsultantMIKE MORGAN,Technical Aide

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION

NIADA HEADQUARTERS:

PHONE (817) 640-3838FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR [email protected]’ Resource is a publication of Automotive Dealers Resource of Oklahoma (ADR) produced on behalf of the Oklahoma Independent Automobile Dealers Association (OIADA), P.O. Box 6905, Moore, OK 73153. The Dealers’ Resource is published monthly by the National Independent Automobile Dealers Association Services Corporation. Periodical postage paid at Arlington, TX, and at additional of!ces. POSTMASTER: Send address changes to OIADA, P.O. Box 6905, Moore, OK 73153. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of ADR of Oklahoma, the Oklahoma Independent Automobile Dealers Association or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identi!cation as members of OIADA or NIADA does not constitute an endorsement of the products or services featured. Copyright © 2011 by O&R Morgan, Inc. dba OIADA. All rights reserved. Dealers’ Resource is a publication of Automotive Dealers Resource of Oklahoma on behalf of the Oklahoma Independent Automobile Dealers Association (OIADA), but is mailed to all dealers in the state in an effort to educate and encourage non-members to join the Association and support our efforts to improve the image and pro!t potential of the industry. For 55 years, we have worked to represent the independent motor vehicle dealer in Oklahoma. We need your support.FRONT COVER BY Mike MorganSTATE MAGAZINE MGR./SALES��Mkhr�@kZ__��mkhr9gbZ]Z'\hfEDITOR :g]r�?kb^]eZg]^k��Zg]r9gbZ]Z'\hfART DIRECTOR �<akblmr�AZrg^l��\akblmr9gbZ]Z'\hfPRINTING��Gb^fZg�Ikbgmbg`

MAGAZINE CONTENTS

ADVERTISERS INDEX71B Auto Auction ..................................................... 11ADESA ..............................................Inside Back Cover Albright Insurance .................................................... 7Ally ......................................................................... 19Auto Search Technology .......................................... 27AutoTrader.com ......................................................... 5 Chase ...................................................................... 20Chickasha Auto Auction ........................................... 21Dealer Center .......................................................... 15Dealer’s Auto Auction of OKC .....................Back CoverDodah.com ..............................................................17Jordan Insurance Group ............................................ 9Loftis Wetzel Insurance .......................................... 23Manheim.com ........................................................ 13Manheim North Texas ..................... Inside Front CoverNIADA Certi!ed ....................................................... 22Oklahoma Auto Exchange ........................................ 24United Acceptance ................................................. 25Voisys ...................................................................... 34

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

PRESIDENTChris GoadRegal Motors3515 N. MayOklahoma City, OK [email protected]

CHAIRMAN OF THE BOARDJohn EasttomAuto Mart of Elk CityP.O. Box 981Elk City, OK [email protected]

VICE PRESIDENTSJohn T. Longacre, IVTaft Motors, Inc.722 S. Linden St.Sapulpa, [email protected] Julian CoddingReliable Motors, Inc.9201 S. ShieldsOklahoma City, [email protected]

Monte ShockleyShockley Auto Sales2605 N. BroadwayPoteau, OK [email protected]

Glenn McDanielI-35 Credit Auto1113 SE 51st St.Oklahoma City, OK [email protected]

David McQuerryMcQuerry Motors, Inc.1302 N. Harrison St.Shawnee, OK [email protected]

OIADA BOARD OF DIRECTORS

OIADA CONTACT INFO

WHAT’S NEW

04 Safeguards Plan08 Computer Disposal 09 Disposing of Consumer Information10 Counterfeit Airbag Warning12 FenCEN E-Filing14 IRS Reviews Tool Plans16 NHTSA Recalls

H E L P F U L H I N T S

Annual Reminders1. Dealers must provide Privacy Form Notices to all active account

customers not less than annually during the continuation of a customer relationship, such as for the duration of a consumer loan or consumer lease.

2. Dealers must furnish a written notice to any individual named on an IRS Form 8300 by January 31. Form 8300 is “Report of Cash Payments Over $10,000 Received in a Trade or Business.”

3. Dealers who make consumer credit sales, consumer lease RU�FRQVXPHU�ORDQV�PXVW�UHQHZ�WKHLU�1RWL¿FDWLRQ�)LOLQJ�ZLWK�WKH�Oklahoma Department of Consumer Credit annually.

BY ADR STAFF

2013 Tax Bene!t In"ation AdjustmentsFor the tax year 2013, the Internal Revenue Service has announced

DQQXDO�LQÀDWLRQ�DGMXVWPHQWV�IRU�PRUH�WKDQ�WZR�GR]HQ�WD[�SURYLVLRQV�The annual exclusion for gifts rises to $14,000 for 2013, up from

$13,000 for 2012.The amount used to reduce the net unearned income reported on

D�FKLOG¶V�WD[�UHWXUQ�VXEMHFW�WR�WKH�³NLGGLH�WD[´�LV��XS�IURP�� for 2012.

The foreign earned income exclusion rises to $97,600, up from $95,100 in 2012.'HWDLOV�RQ�WKHVH�LQÀDWLRQ�DGMXVWPHQWV�DQG�RWKHUV��VXFK�DV�WKH�ORZ�

LQFRPH�KRXVLQJ�FUHGLW��GROODU�OLPLWV�IRU�KLJK�GHGXFWLEOH�KHDOWK�SODQV�DQG�RWKHU�DPRXQWV��FDQ�EH�IRXQG�LQ�5HYHQXH�3URFHGXUH��ZKLFK�ZDV�SXEOLVKHG�LQ�,QWHUQDO�5HYHQXH�%XOOHWLQ��RQ�1RY��

BY ADR STAFF

I R S B U L L E T I N I R - 2 01 2 - 7 8 , O C T. 1 8 , 2 01 2

WEAR WHAT YOU WANT. WE CAN�L�SEE YOU.

www.niada.tv

SALES OPERATIONS F&I REMARKETING COMPLIANCE LEGAL/REGULATORY

SPECIAL FEATURES INDUSTRY EVENTS

AUTOMOTIVE INDUSTRY NEWS & SPECIAL MONTHLY PROGRAMS

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D E A L E R S ’ R E S O U R C E DECEMBER 2012

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CLOSE OUT THE YEAR WITH A DATA SAFEGUARDS PLAN,W¶V�'HFHPEHU�±�WLPH�WR�FORVH�RXW�¿OHV�

and records for the current year and prepare for the next. While you are doing that it would be an excellent time to review and update your existing Safeguards Plan, or to develop one if necessary.

The Safeguards Rule is one of several federal regulations concerned with the protection and safekeeping of consumers’ personal private information. Like the Privacy Rule, the Safeguards Rule derives from the Gramm-Leach-Bliley Act, often referred to as the Privacy Act.

As implemented by the Federal Trade Commission (FTC), the Safeguards Rule UHTXLUHV�¿QDQFLDO�LQVWLWXWLRQV�WR�GHYHORS��implement and maintain a comprehensive information security program. For SXUSRVHV�RI�*/%��D�³¿QDQFLDO�LQVWLWXWLRQ´�includes businesses – such as car dealers – that are involved in the extension of credit or in activities related to the extension of credit.

The objective of your Safeguards Plan is WR�GH¿QH�DQG�GRFXPHQW�\RXU�GHDOHUVKLS¶V�procedures for safeguarding, or physically securing and protecting, consumers’ personal private information. The program must be in written format and must contain administrative, technical and physical safeguards appropriate to your business.

At a minimum, your Safeguards Plan will document:��7KH�SHUVRQDO�LGHQWLI\LQJ�LQIRUPDWLRQ�

you collect.��+RZ�LW�LV�FROOHFWHG��:KHUH�LW�LV�VWRUHG�DQG�KRZ�LW�LV�

VDIHJXDUGHG�ZKLOH�LW�LV�³DFWLYH´�±�ZKLOH�WKH�sale is in process.��:KHUH�LW�LV�VWRUHG�DQG�KRZ�LW�LV�

safeguarded on a permanent basis.��+RZ�ORQJ�WKH�GDWD�LV�UHWDLQHG��+RZ�WKH�GDWD�LV�KDQGOHG�IRU�GLVSRVDO��(PSOR\HH�VHFXULW\�WUDLQLQJ�DQG�

FHUWL¿FDWLRQV��6HFXULW\�WKUHDW�DQG�LQFLGHQW�

response plan.

Step 1: Get Organized(IIHFWLYH�GDWD�VHFXULW\�VWDUWV�ZLWK�

assessing what information you have and identifying who has access to it. Understanding how personal information moves into, through and out of your business, and who has – or could have – access to it is essential to assessing security vulnerabilities. You can determine the best ways to secure the information only after

\RX�KDYH�LGHQWL¿HG�LW�DQG�WUDFHG�KRZ�LW�ÀRZV�WKURXJK�\RXU�EXVLQHVV�

Determine what personal information \RX�KDYH�LQ�\RXU�¿OHV�DQG�RQ�\RXU�computers.

Inventory hard copy records, such as:��)LOH�FDELQHWV��)LOH�GUDZHUV��$UFKLYHG�VWRUDJH��2II�VLWH�VWRUDJH�Inventory digital records, including:��'HVNWRS�FRPSXWHUV��/DSWRS�FRPSXWHUV��7DEOHWV��L3DGV��HWF��&HOOSKRQHV��([WHUQDO�GULYHV��)ODVK�GULYHV��'9'V�&'V��2QOLQH�GDWD�VWRUDJH��2II�VLWH�DUFKLYHG�GLJLWDO�UHFRUGV��(PSOR\HH�RZQHG�FRPSXWHUV�DQG�

equipment.Determine who has access to each of the

various data repositories.7UDFN�WKH�ÀRZ�RI�GDWD�WKURXJK�WKH�

EXVLQHVV��2QO\�E\�XQGHUVWDQGLQJ�WKH�ÀRZ�of data can you identify points where the information is vulnerable. Take note of:��:KR�JLYHV�SHUVRQDO�LQIRUPDWLRQ�WR�\RXU�

business.��+RZ�WKH�LQIRUPDWLRQ�LV�UHFHLYHG��:KDW�NLQG�RI�LQIRUPDWLRQ�LV�FROOHFWHG�DW�

each point.��:KHUH�\RX�NHHS�WKH�LQIRUPDWLRQ�DV�LW�

moves through the business.��:KR�KDV�DFFHVV�WR�WKH�LQIRUPDWLRQ�DV�LW�

moves through the business.

Step 2: MinimizeAfter you inventory what information

you already have and where and how it is stored, determine what part of it is necessary for your business, considering both your business needs as well as state and federal regulatory requirements. Then, plan to collect only what you need, and plan to keep it only as long as you must. Information can include:&XVWRPHU�LGHQWL¿FDWLRQ��Dealers

are required by federal law to identify their customers prior to completing a sale. Therefore, you are obliged to collect and retain some amount of personal identifying information, such as name, residential address and date of birth. You may collect the individual’s social security number, but it is not required at this time.

Sale information: 7KH�2NODKRPD�

8VHG�0RWRU�9HKLFOH��3DUWV�&RPPLVVLRQ��8093&��UHTXLUHV�GHDOHUV�WR�IXOO\�document the purchase and sale of all vehicles, recording the name of the seller or buyer and a complete description of the vehicle purchased or sold. Dealers shall also retain a copy of the front and back of WKH�FRPSOHWHO\�DVVLJQHG�FHUWL¿FDWH�RI�WLWOH�WR�HDFK�YHKLFOH�VROG��2WKHU�UHFRUGV�WKDW�PD\�EH�UHTXHVWHG�E\�8093&�DJHQWV�RU�2NODKRPD�ODZ�HQIRUFHPHQW�LQFOXGH�odometer statements, invoices of repair or expense, and accounting records for the operation of the business. While portions RI�WKH�8093&�UHTXLVLWH�GDWD�LV�SHUVRQDO�information and some is not, it will likely all be held in a common deal jacket. Keep in mind that the portion that is personal is subject to the Safeguards Rule.

At a minimum, a fully documented sales IROGHU�LQ�2NODKRPD�ZLOO�FRQWDLQ�FXVWRPHU�LGHQWL¿FDWLRQ�DQG�YHUL¿FDWLRQ�GRFXPHQWV��including:��&RS\�RI�JRYHUQPHQW�LVVXHG�SKRWR�,'��

such as driver’s license, passport, etc.��'RFXPHQWDWLRQ�RI�VWHSV�WDNHQ�WR�

FRQ¿UP�FXVWRPHU�LGHQWLW\��6SHFLDOO\�'HVLJQDWHG�1DWLRQDOV��6'1��

/LVW�SULQWRXW��7KH�2I¿FH�RI�)RUHLJQ�$VVHWV�Control maintains a list of persons, typically terrorists and narcotics smugglers, whose assets are blocked. U.S. persons are generally prohibited from transacting business with them. For each sale, you should search the alphabetical list for your customer’s name and print the appropriate page, thereby documenting the absence of your customer’s name. The list is accessible through our association website, www.e-oiada.com.

It will also include completed forms for the vehicle sold, including:��)7&�$V�,V�%X\HU¶V�*XLGH��GD\�QRWLFH�WLWOH�UHFHLSW��5HWDLO�3XUFKDVH�$JUHHPHQW�%LOO�RI�

Sale, which includes buyer’s order, dealer warranty statement, trade-in record and, optionally, odometer disclosure��:H�2ZH�GHOLYHU\�FRQ¿UPDWLRQ��3ULYDF\�1RWLFH��5HWDLO�,QVWDOOPHQW�VDOHV�FRQWUDFW��LI�

¿QDQFHG��2NODKRPD�/LHQ�(QWU\�IRUP��LI�¿QDQFHG�&RQVXPHU�FUHGLW�UHSRUWV� You may

have a legitimate business need to obtain consumer credit reports from consumer reporting agencies, either for your

D E C E M B E R I S A N E XC E L L E N T T I M E T O R E V I E W, U P DAT E O R C R E AT E A P L A N T O P RO T E C T C O N S U M E R S ’ P E R S O N A L I N FO R M AT I O N

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6


employees or for your customers. Credit reports obviously contain highly personal information about the subject individuals. If you obtain credit reports, it is imperative that you adequately safeguard them. Restrict access to the reports, retain them no longer than necessary, then dispose of them appropriately, such as by shredding.

Credit and debit cards: The FTC recommends businesses not retain the account number and expiration date of consumer credit and debit cards unless absolutely necessary.

Financial account information: You will have occasion to collect financial account information, such as checking account numbers, when you receive payment from your customers. Retain this information only if you have an ongoing business need for it.

Step 3: DisposeYour Safeguards Plan will include

procedures for proper disposal of records you no longer need. Keep in mind that consumer credit reports and other personal information may be subject to the Disposal Rule (derived from the Fair and Accurate Credit Transactions Act of 2003), which means you cannot simply throw the information in the dumpster.

For all information collected, determine a retention period and document it in your Safeguards Plan. Keep in mind the minimum retention periods prescribed by various governing agencies and rules. The Oklahoma UMV&PC Rules and Regulations prescribe a three-year data retention period. Proof of compliance with Truth In Lending Act disclosures, such as on installment sales contracts, must be held two years from date of disclosure. Check with your accountant or tax attorney for guidelines regarding data retention for taxation purposes. Additional guidance on developing a records retention policy is included elsewhere in this magazine.

For that same information, document an appropriate disposal plan.

The Disposal Rule dictates disposal of paper records containing personal information by shredding, burning or pulverizing. See the article entitled “Disposing of Consumer Information” included elsewhere in this magazine.

Digital records should be erased or the media physically destroyed. Be aware that deleting a computer file is not the same as erasing it. Deleting the file is not adequate destruction. See the article entitled “Computer Disposal” included elsewhere in this magazine.

Step 4: ProtectIn your written plan, document

your procedures for safeguarding the information you do keep. Consider the following guidance provided by the FTC:

• Store paper documents and files as well as CDs, external computer hard drives, flash drives and other backups containing personally identifiable information in locked rooms or locked file cabinets. Limit and control who has keys and the number of keys.

• Remind employees not to leave sensitive papers out on their desks when they are away from their workstations.

• Require employees to put files away, log off their computers and lock their file cabinets and office doors at the end of the day.

• Implement a building security plan. At a minimum, ensure doors and windows are locked at the end of the day. Ensure emergency responders have appropriate contact numbers. Consider installing a security alarm system.

• Assess the vulnerability of your office network. Depending on your circumstances, it may be appropriate for you to engage an independent professional to conduct a full-scale security audit.

• At a minimum, don’t store sensitive consumer data on any computer with an Internet connection unless it’s essential for conducting your business.

• At a minimum, regularly run up-to-date antivirus and anti-spyware programs on individual computers and on servers on your network.

• At a minimum, use firewalls to protect your network and computers.

• Control access to sensitive information by requiring employees to use passwords. The passwords should be “strong,” including a mix of letters, numbers and special characters. Do not allow simple passwords that can be easily guessed. In addition, the passwords should be changed regularly.

• Forbid transmission of personally identifying data through unencrypted email.

• Restrict use of laptops for storing sensitive information. If laptops are used, consider implementing a policy of using cords and locks to secure laptops to employees’ desks.

• Limit wireless and remote access to your network.

Step 5: TrainIn your Safeguards Plan, define the

steps you will take to engage your office staff in the security effort.

Check references or do background

checks before hiring employees who will have access to sensitive data.

Consider asking new employees to sign an agreement to follow your company’s confidentiality and security standards.

Remind employees of your company’s policy and any legal requirements to keep customer information secure and confidential.

Know which employees have access to consumers’ sensitive personal information. Limit that access to employees with a “need to know.”

Implement a regular schedule of employee security training.

Require employees to notify you immediately if there is a potential security breach, such as loss of a laptop.

Consider implementing disciplinary measures for security policy violations.

Step 6: RespondFinally, decide how you will respond in

the event of a security incident or threat and document appropriate procedures in your written plan.

Designate a senior employee to coordinate and implement the response plan.

If a computer is compromised, disconnect it immediately from the network and the Internet.

Investigate security incidents immediately and take steps to close off existing vulnerabilities or threats to personal information.

Consider who to notify in the event of an incident. You may need to notify consumers, law enforcement, customers, credit bureaus and other businesses.

Don’t overlook the security threat associated with natural disasters. Any event that disrupts your normal business environment can result in a compromise of data in your possession. Consider how you would protect the data in the event of a fire, flood or tornado, any of which could leave your normally secure office vulnerable.

The stated objective of the Safeguards Rule is to protect consumers’ private information by requiring certain businesses to develop Safeguards Plans. Therefore, your goal when preparing your Safeguards Plan is to develop a viable, workable set of written procedures that, when implemented, adequately secure the personal information you are privileged to access and ultimately afford your customers the privacy they are guaranteed under federal law.

Note: We are not attorneys. This article was prepared for informational purposes only. It has been made available with the understanding that neither ADR of Oklahoma nor OIADA is engaged in rendering legal advice. You are urged to contact legal counsel for its application to your operation.

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Dealership Group to Pay $510,000

New York Attorney General Eric T. Schneiderman announced the outcome of a lawsuit against a Bay Ridge dealership group for persistent fraudulent, deceptive and illegal business practices in the sale DQG�¿QDQFLQJ�RI�DXWRPRELOHV��7KH�LOOHJDO�practices left some consumers with ruined credit reports.

Judge Bernard J. Graham of Kings County Supreme Court ordered the businesses to pay a total of $510,000, including restitution in the amount of $294,500 to 46 victims and $215,500 in civil penalties and costs.

“The deceptive conduct led consumers WR�VLJQ�FRQWUDFWV�WKDW�GLG�QRW�UHÀHFW�the negotiated sale terms, frequently LQFOXGLQJ�XQZDQWHG�DIWHUPDUNHW�DGG�ons,” Schneiderman said. “Some of these transactions led to repossessions and ruined credit, as the consumers found themselves owing more than they ever would have knowingly agreed to pay.”

The action was brought against the dealerships and the owner after the attorney JHQHUDO¶V�RI¿FH�UHFHLYHG�FRPSODLQWV�IURP�numerous consumers and conducted an investigation into the dealerships’ practices. The attorney general alleged the dealerships engaged in a pattern of fraudulent and deceptive practices, including: ��3XEOLFDWLRQ�RI�PLVOHDGLQJ�DGYHUWLVHPHQWV�

in the form of deceptive contest promotions.��0LVUHSUHVHQWLQJ�WKH�WHUPV�RI�WKH�VDOH�

DQG�¿QDQFLQJ�GXULQJ�VDOHV�QHJRWLDWLRQV��$GGLQJ�WKH�FRVWV�RI�XQZDQWHG�

aftermarket items into contracts and ¿QDQFLQJ�DJUHHPHQWV��8VLQJ�KLJK�SUHVVXUH�VDOHV�WDFWLFV�

to induce consumers into signing blank contracts.

In his decision, Judge Graham found the evidence presented showed “a common SUDFWLFH�RI�VWURQJ�DUP�VDOHV�PHWKRGV�DQG�unethical conduct” by the dealerships, which he found to be “extensive and unsettling.” 7KH�MXGJH�DOVR�QRWHG�WKH�³EUD]HQ�QDWXUH�RI�the salespersons employed by” the owner of the dealerships, and said many of the victims were “older persons, unsophisticated or unfamiliar with English, and each person wound up owning a car they never intended to buy or a price that was dishonestly represented to them.”7KH�GHDOHUVKLSV�DUH�HQMRLQHG�IURP�DQ\�

further violation of relevant New York laws as well as the Federal Truth in Lending Act. The owner also has to take steps to have credit reporting agencies, banking institutions, creditors and lenders remove negative credit information entered against customers attributable to the fraudulent, deceptive or illegal business practices.

BY ADR STAFF

I N D U S T RY N E W S

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F RO M W W W. O N G UA R D O N L I N E . G OV

COMPUTER DISPOSALIf you want to get rid of your old

computer, options include recycling, selling and donating. But before you log off for the last time, there are important things to do to prepare it for disposal.

Computers often hold personal DQG�¿QDQFLDO�LQIRUPDWLRQ��LQFOXGLQJ�passwords, account numbers, license keys or registration numbers for software programs, addresses and phone numbers, medical and prescription information, tax returns, and other personal documents. So before getting rid of your old computer, it’s a good idea to use software WR�³ZLSH´�WKH�KDUG�GULYH�FOHDQ��,I�\RX�GRQ¶W��FRQVLGHU�\RXU�ROG�KDUG�GULYH�D��VW�century treasure chest for identity thieves and information pirates.

The Federal Trade Commission (FTC), the nation’s consumer protection agency, says you can deter identity theft and information privacy by taking a few preventive steps.

Understanding hard drives: A computer’s hard drive stores data and PDLQWDLQV�DQ�LQGH[�RI�¿OHV��:KHQ�\RX�VDYH�D�¿OH��HVSHFLDOO\�D�ODUJH�RQH��LW�LV�VFDWWHUHG�around the hard drive in bits and pieces. Files also are automatically created by Internet browsers and operating systems. :KHQ�\RX�RSHQ�D�¿OH��WKH�KDUG�GULYH�checks the index, then gathers the bits and pieces and reconstructs them.:KHQ�\RX�GHOHWH�D�¿OH��WKH�OLQNV�EHWZHHQ�

WKH�LQGH[�DQG�WKH�¿OH�GLVDSSHDU��VLJQDOLQJ�WR�\RXU�V\VWHP�WKDW�WKH�¿OH�LVQ¶W�QHHGHG�any longer and that hard drive space can be overwritten. But the bits and pieces RI�WKH�GHOHWHG�¿OH�VWD\�RQ�\RXU�FRPSXWHU�until they’re overwritten, and they can be retrieved with a data recovery program. To remove data from your hard drive permanently, it needs to be wiped clean.

Cleaning hard drives: Before you FOHDQ�\RXU�KDUG�GULYH��VDYH�WKH�¿OHV�WKDW�are important to you on an external storage device – for example, a USB drive, D�&'�520�RU�DQ�H[WHUQDO�KDUG�GULYH�±�RU�transfer them to a new computer. Check your owner’s manual, the manufacturer’s website or its customer support line for information on how to save data and transfer it to a new computer.

Utility programs to wipe your hard drive are available both online and in stores where computers are sold. They’re generally inexpensive. Some are available on the Internet for free.

Wipe utility programs vary in their

capabilities. Some erase the entire disk, ZKLOH�RWKHUV�DOORZ�\RX�WR�VHOHFW�¿OHV�RU�folders to erase. They also vary in their effectiveness. Programs that overwrite or wipe the hard drive many times are very effective, while those that overwrite or wipe the drive only once may not prevent the information being wiped from being recovered later.

If your old computer contains sensitive information that would be valuable to an identity thief, consider using a program that overwrites or wipes the hard drive PDQ\�WLPHV��2U�UHPRYH�WKH�KDUG�GULYH�DQG�physically destroy it.2QH�PRUH�WKLQJ�WR�NHHS�LQ�PLQG��,I�

you use your home or personal computer for business purposes, check with your employer about how to manage information on your computer that’s business-related. The law requires businesses to follow data security and disposal requirements for certain information that’s related to customers.

Disposal Options:�2QFH�\RX�KDYH�D�³FOHDQ´�FRPSXWHU��KHUH¶V�KRZ�WR�GLVSRVH�of it:��5HF\FOH�LW��0DQ\�FRPSXWHU�

manufacturers have programs to recycle computers and components. Check their websites or call their toll-free numbers IRU�PRUH�LQIRUPDWLRQ��7KH�(QYLURQPHQWDO�3URWHFWLRQ�$JHQF\��(3$��KDV�LQIRUPDWLRQ�on electronic product recycling programs DW�ZZZ�HSD�JRY�HSDRVZHU�KD]ZDVWH�UHF\FOH�HF\FOLQJ�GRQDWH�KWP��<RXU�local community might have a recycling program. Check with your county or local JRYHUQPHQW��LQFOXGLQJ�WKH�ORFDO�ODQG¿OO�RI¿FH��IRU�UHJXODWLRQV��'RQDWH�LW��0DQ\�RUJDQL]DWLRQV�FROOHFW�

old computers and donate them to charities.��6HOO�LW��6RPH�SHRSOH�DQG�RUJDQL]DWLRQV�

buy old computers. Check online.Keep the environment in mind when

disposing of your computer. Most computer equipment contains hazardous PDWHULDOV�WKDW�GRQ¶W�EHORQJ�LQ�D�ODQG¿OO��For example, many computers have heavy metals that can contaminate the earth. The (3$�UHFRPPHQGV�\RX�FKHFN�ZLWK�\RXU�local health and sanitation agencies for ways to dispose of electronics safely.

Note: OnGuardOnline (www.onguardonline.gov)

provides practical tips from the federal government

and the technology industry to help you be on guard

against Internet fraud, secure your computer and

protect your personal information.

Preferred Warranties Inc. has introduced iTapMenu, an application that allows dealers to use iPads to customize and compare protection SODQV��¿QDQFLQJ�RSWLRQV�DQG�LQVXUDQFH�products for customers anywhere on the lot, at any time during the sales process.

The program presents coverage GHWDLOV��D�EHQH¿W�VXPPDU\�DQG�D�VKRUW�video about each Preferred Warranties protection plan.

“iTapMenu is a much more user-friendly way to walk customers through the options than doing it YHUEDOO\�RU�ZLWK�D�SLHFH�RI�SDSHU�´�said Luke Kreider, manager of Pennsylvania’s Manheim Imports, RQH�RI�WKH�¿UVW�GHDOHUVKLSV�WR�WU\�the subscription-based program. “Customers are more engaged, intrigued by seeing it with their numbers and information. As they add and deduct options, they can see instantly and exactly how it would FKDQJH�WKHLU�PRQWKO\�SD\PHQW�´

PWI said iTapMenu is designed to replace paper charts with engaging graphics and icons that can be moved from column to column as the buyer short-lists options. The program also includes real-time reporting capabilities that enable managers to track sales and access a range of sales reports. Similar apps are being used at new car dealerships, but PWI’s is the ¿UVW�IRU�GHDOHUVKLSV�VSHFLDOL]LQJ�LQ�SUH� owned vehicles.

FOR MORE INFORMATION, VISIT WWW.WARRANT YS.COM/DEALERS.HTML.

Preferred Warranties App Puts F&I on iPads

T E C H N O LO GY

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9


T E C H N O LO GY

January 2013 will be here in a few short weeks. It will soon be time to close out the books for the current year and make preparations for the next.

For many of you, that will include disposing of customer and employee records that have exceeded their retention dates. It might also mean replacing old computer equipment with new.

As with most things in the used car business, the federal government has rules about that – two rules, in fact, governing disposition of personal records, whether stored on paper or in D�GLJLWDO�IRUPDW��$QG�WKH�UXOHV�VD\�\RX�FDQ¶W�MXVW�throw certain records in the trash.

All institutions under the Federal Trade &RPPLVVLRQ¶V�MXULVGLFWLRQ�WKDW�KROG�FRQVXPHU�UHSRUW�LQIRUPDWLRQ�DUH�VXEMHFW�WR�WKH�'LVSRVDO�5XOH��,Q�DGGLWLRQ��DOO�¿QDQFLDO�LQVWLWXWLRQV�XQGHU�)7&¶V�MXULVGLFWLRQ�DUH�VXEMHFW�WR�WKH�6DIHJXDUGV�Rule with regard to nonpublic personal information.

If your dealership is involved in the consumer FUHGLW�SURFHVV��\RX�DUH�FRQVLGHUHG�D�¿QDQFLDO�institution. Accepting credit applications DQG�RU�UHIHUULQJ�DSSOLFDQWV�WR�VSHFL¿F�WKLUG�party lenders are activities considered to be

involvement in the credit process.For purposes of the two rules, sensitive

consumer information is much more than MXVW�DQ�LQGLYLGXDO¶V�VRFLDO�VHFXULW\�QXPEHU��The Disposal Rule, derived from the Fair and Accurate Credit Transactions Act of 2003, dictates that any information or compiled listing of information based on or drawn from consumer reports must be disposed of in a VSHFL¿HG�PDQQHU��7KH�LQIRUPDWLRQ�FDQ�EH�relevant to employees or to customers.

The Safeguards Rule, derived from WKH�*UDPP�/HDFK�%OLOH\�3ULYDF\�$FW��LV�FRQFHUQHG�ZLWK�SHUVRQDOO\�LGHQWL¿DEOH�¿QDQFLDO�information, whether presented individually RU�LQ�D�FRPSLOHG�OLVW��3HUVRQDOO\�LGHQWL¿DEOH�¿QDQFLDO�LQIRUPDWLRQ�LQFOXGHV�DQ\�LQIRUPDWLRQ�a consumer provided to you in order to obtain credit, as well as any information regarding or referencing that credit.

Examples of sensitive consumer information covered by the two rules include:��&RQVXPHU�5HSRUW�LQIRUPDWLRQ�IRU�

employees or customers.��,QIRUPDWLRQ�D�FRQVXPHU�SURYLGHV�WR�\RX�

on an application to obtain credit.��&XVWRPHU�DFFRXQW�EDODQFH�LQIRUPDWLRQ�

��&XVWRPHU�SD\PHQW�KLVWRU\��$Q\�LQIRUPDWLRQ�DERXW�\RXU�FXVWRPHU�LI�

it is disclosed in a manner that indicates the individual is or has been your customer in a credit transaction. For example, a monthly sales report for your dealership showing names and addresses of customers and indicating that particular customers were credit customers would be considered nonpublic personal information.

In accordance with the Disposal Rule, paper or other hard copy records containing sensitive consumer information should EH�EXUQHG��SXOYHUL]HG�RU�VKUHGGHG�VR�WKH�information cannot practicably be read or reconstructed. Digital records should be erased or the media physically destroyed.%H�DZDUH�WKDW�GHOHWLQJ�D�FRPSXWHU�¿OH�LV�

QRW�WKH�VDPH�DV�HUDVLQJ�LW��'HOHWLQJ�WKH�¿OH�LV�not adequate destruction. A separate article in this publication, titled “Computer Disposal,” includes guidance for proper disposal of computers and digital records.

So this year when you are ready to clean RXW�¿OHV��UHPHPEHU�±�\RX�FDQ¶W�MXVW�WKURZ�certain records in the trash. The federal government has rules.

BY ADR STAFF

T H E R U L E S SAY YO U CA N ’ T J U S T T H ROW C E R TA I N R E C O R D S I N T H E T R A S H

Disposing of Consumer Information

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10


T R A F F I C SA F E T Y AG E N C Y U RG E S V E H I C L E OW N E R S A N D R E PA I R P RO F E S S I O N A L S T O U S E O N LY C E R T I F I E D O R I G I N A L E Q U I P M E N T R E P L AC E M E N T PA R T S

The U.S. Department of Transportation’s 1DWLRQDO�+LJKZD\�7UDI¿F�6DIHW\�$GPLQLVWUDWLRQ��1+76$��KDV�LVVXHG�D�consumer safety advisory to alert vehicle owners and repair professionals to the dangers of counterfeit air bags.1+76$�LV�QRW�DZDUH�RI�DQ\�GHDWKV�RU�

injuries connected to counterfeit air bags. While the full scope of the problem is

uncertain from currently available data, 1+76$�KDV�LGHQWL¿HG�FHUWDLQ�YHKLFOH�makes and models for which counterfeit air bags might be available and believes WKH�LVVXH�DIIHFWV�OHVV�WKDQ��SHUFHQW�RI�WKH�8�6��YHKLFOH�ÀHHW��2QO\�YHKLFOHV�WKDW�KDYH�had an air bag replaced within the past three years by a repair shop that is not part of a new car dealership could be at risk.

Consumers whose vehicles have been in a crash and had their air bags replaced by a repair shop that is not part of a new car dealership within the past three years, or who have purchased a replacement air bag online, should contact the call center established by their auto manufacturer to have their vehicle inspected at their own expense and the air bag replaced if necessary.

The full list of call centers and additional information are available at www.safercar.gov.

“Anytime equipment that is critical to protecting drivers and passengers fails to operate properly, it is a serious safety FRQFHUQ�´�7UDQVSRUWDWLRQ�6HFUHWDU\�5D\�/D+RRG�VDLG��³:H�ZDQW�FRQVXPHUV�WR�EH�immediately aware of this problem and to review our safety information to see if their YHKLFOH�FRXOG�EH�LQ�QHHG�RI�LQVSHFWLRQ�´1+76$�KDV�EHHQ�ZRUNLQJ�ZLWK�D�

number of government agencies, including ,PPLJUDWLRQ�DQG�&XVWRPV�(QIRUFHPHQW��,&(��&XVWRPV�DQG�%RUGHU�3URWHFWLRQ�and the Department of Justice, to better understand the issue of counterfeit air bags and how to prevent them from being purchased and installed in vehicles.³2UJDQL]HG�FULPLQDOV�DUH�VHOOLQJ�

dangerous counterfeit and substandard airbags to consumers and suppliers with little to no regard to hazardous health DQG�VDIHW\�FRQVHTXHQFHV�´�,&(�GLUHFWRU�John Morton said. “We will continue to aggressively investigate criminal supply

chains with our law enforcement and private industry partners and bring these FULPLQDOV�WR�MXVWLFH�´1+76$�LV�FXUUHQWO\�JDWKHULQJ�

information from automakers about their systems for verifying the authenticity of replacement parts, and is working with the industry to make the driving public aware of the safety risk posed by counterfeit air bags. The agency will continue to monitor consumer complaints, police accident reports and other sources for additional information.

Among those who should not be at risk:��&RQVXPHUV�ZKR�SXUFKDVHG�WKHLU�

vehicle new and have not had their air bags replaced.��&RQVXPHUV�ZKR�KDYH�IXOO�NQRZOHGJH�

of the entire history of their used vehicle, including knowing whether the vehicle has been in a crash in the last three years and being certain the air bag was replaced at a new car dealership.+HUH�DUH�VRPH�FRQVXPHUV�ZKR�FRXOG�EH�

at risk and should contact the call center established by their auto manufacturer:��&RQVXPHUV�ZKR�KDYH�KDG�DLU�EDJV�

replaced within the past three years at a repair shop that is not part of a new car dealership.��&RQVXPHUV�ZKR�KDYH�SXUFKDVHG�D�XVHG�

car that might have sustained an air bag deployment before the purchase.��&RQVXPHUV�ZKR�RZQ�D�FDU�ZLWK�D�WLWOH�

branded salvage, rebuilt or reconstructed.��&RQVXPHUV�ZKR�KDYH�SXUFKDVHG�

replacement air bags from eBay or other QRQ�FHUWL¿HG�VRXUFHV��HVSHFLDOO\�LI�WKH\�were purchased at unusually low prices VXFK�DV�OHVV�WKDQ��

“We expect all motor vehicle equipment to meet federal safety standards — and air bags in particular play a central role in keeping drivers and SDVVHQJHUV�VDIH�LQ�WKH�HYHQW�RI�D�FUDVK�´�1+76$�DGPLQLVWUDWRU�'DYLG�6WULFNODQG�said. “That’s why it’s critical that vehicle owners work with their automotive dealers and repair professionals to ensure they use the appropriate, original equipment parts in the event they need WR�UHSODFH�WKHLU�DLU�EDJ�´�

BY WWW.NHTSA.GOV

MAKE MODEL YEARS MODELSAcura 2009-2011 TSXAudi 2006-2009 A3, A4, A6, A8, Q5, Q7BMW 2007-2011 X5, E70, E60, E61 2008-2010 5-series, 528i, 535i 2004-2007 5-Series, 525i, 530, 535, E60, E61 2007-2011 E90, E91 Not listed E92, E93 2007-2011 X5, E70 2004-2007 525i, 530, 535 2011-2012 X3Buick 2010-2011 LacrosseChevrolet 2011-2012 Cruze 2006-2010 Aveo 2011-2012 Volt 2012 CamaroFord 2012 Focus 2005-2009 MustangHonda 2003-2012 Accord 2006-2011 Civic 2002-2011 CRV 2007-2011 Fit 2009-2011 Pilot 2009-2011 Insight 2009-2011 Crosstour 2011 OdysseyHyundai 2007-2011 Elantra Not listed Genesis Not listed SonataIn!niti 2007-2011 G35, EX35Kia 2010-2011 Soul/Forte 2004-2009 SpectraLand Rover 2012 Range Rover EvoqueLexus 2006-2011 IS250, IS350, IS-F 2003-2008 GX470 2007-2009 RX350 Not listed ES350Mazda 2004 Mazda 3 2010-2012 Mazda 3Mercedes 2009-2011 C, GLK 2010-2011 E350, E550 2007-2008 S550 2006-2009 ML 2009-2010 GL, MLMitsubishi Not listed OutlanderNissan 1992-2002 Quest 2010-2011 Quest 2009-2011 Cube 2007-2011 Versa 2009-2010 Murano Not listed AltimaSubaru 2008-2009 Forester 2008-2009 Imprezza 2008-2009 Outback 2010-2011 LegacySuzuki 2007-2010 SX4Toyota 2002-2006 Camry 2012 Camry 2009-2011 Corolla, Matrix 2007-2011 Yaris 2004-2011 Highlander 2004-2011 Sienna 2004-2011 Tacoma 2010-2012 Prius 2003-2006 Tundra 2007-2011 Tundra 2003-2006 Sequoia 2003-2010 Land Cruiser 2004-2007 Highlander 2008-2010 Highlander 2004-2009 4Runner 2007-2009 Solara 2005-2011 RAV4Volkswagen 2006-2010 JettaVolvo Not listed XC60, XC70 Not listed V70, S60, S80

At press time, NHTSA was aware of counterfeit air bags available for the following vehicle makes and models:Counterfeit

Airbag Warning

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12


Sandy Not as Hard on Vehicles as Expected

B U S I N E S S E S A R E E N C O U R AG E D T O B E G I N E - F I L I N G N OW

FinCEN Announces Electronic Filing for Form 83007KH�)LQDQFLDO�&ULPHV�(QIRUFHPHQW�1HWZRUN��)LQ&(1��UHFHQWO\�DQQRXQFHG�

WKDW�D�ZLGH�YDULHW\�RI�EXVLQHVVHV�DUH�QRZ�DEOH�WR�HOHFWURQLFDOO\�¿OH�)RUP��³5HSRUWV�RI�&DVK�3D\PHQWV�2YHU��5HFHLYHG�LQ�D�7UDGH�RU�%XVLQHVV´�XVLQJ�WKH�%DQN�6HFUHF\�$FW��%6$��HOHFWURQLF�¿OLQJ�V\VWHP�

Many businesses, such as car dealers, boat dealers and art and collectible PHUFKDQWV��VRPHWLPHV�GHDO�LQ�ODUJH�DPRXQWV�RI�FDVK��(DFK�SHUVRQ�ZKR�LV�engaged in a trade or business that, in the course of that trade or business, UHFHLYHV�PRUH�WKDQ��LQ�FDVK�LQ�RQH�WUDQVDFWLRQ�RU�LQ�WZR�RU�PRUH�UHODWHG�WUDQVDFWLRQV��PXVW�¿OH�)RUP��7KH�IRUP�FDQ�DOVR�EH�¿OHG�voluntarily for any suspicious transaction, even if the total amount does not H[FHHG��7KH�LQIRUPDWLRQ�FRQWDLQHG�LQ�WKRVH�UHSRUWV��ZKHQ�DGGHG�WR�WKH�)LQ&(1�

GDWDEDVH��FDQ�EH�FURVV�UHIHUHQFHG�ZLWK�RWKHU�)LQ&(1�UHSRUWV�VXFK�DV�Suspicious Activity Reports and Currency Transaction Reports to establish money trails and expose hidden criminal trends and patterns. Last year, )LQ&(1�UHFHLYHG�DOPRVW��SDSHU�¿OLQJV�RI�)RUP��(�¿OLQJ�LV�D�IUHH��ZHE�EDVHG�HOHFWURQLF�¿OLQJ�V\VWHP�WKDW�DOORZV�EXVLQHVVHV�

WR�VXEPLW�WKHLU�)LQ&(1�UHSRUWV�WKURXJK�D�VHFXUH�QHWZRUN��&RPSDUHG�ZLWK�WKH�WUDGLWLRQDO�SDSHU�¿OLQJ�SURFHVV��EXVLQHVVHV�¿QG�H�¿OLQJ�D�IDVWHU�DQG�more convenient, secure and cost-effective method of submitting their UHSRUWV�DQG�UHFHLYLQJ�FRQ¿UPDWLRQ�RI�WKHLU�UHSRUW¶V�DFFHSWDQFH�*UHDWHU�XVH�RI�WKH�H�¿OLQJ�V\VWHP�DVVLVWV�)LQ&(1�LQ�SURYLGLQJ�LPSRUWDQW�

LQIRUPDWLRQ�UHODWLQJ�WR�PRQH\�ODXQGHULQJ�DQG�WHUURULVW�¿QDQFLQJ�WR�ODZ�HQIRUFHPHQW�LQ�WKH�TXLFNHVW�PDQQHU�SRVVLEOH��$OPRVW�DOO�)LQ&(1�UHSRUWV�PXVW�QRZ�EH�H�¿OHG��3DSHU�)RUP��¿OLQJV�ZLOO�FRQWLQXH�WR�EH�DFFHSWHG�IRU�WKH�QHDU�IXWXUH��WKRXJK�EXVLQHVVHV�DUH�HQFRXUDJHG�WR�EHJLQ�H�¿OLQJ�QRZ�*HQHUDOO\��D�EXVLQHVV�PXVW�VXEPLW�)RUP��WR�,56�)LQ&HQ�ZLWKLQ��

GD\V�DIWHU�WKH�FDVK�LV�UHFHLYHG��,I�WKH��WK�GD\�IDOOV�RQ�D�6DWXUGD\��6XQGD\�RU�KROLGD\��WKH�EXVLQHVV�PXVW�¿OH�WKH�UHSRUW�RQ�WKH�QH[W�EXVLQHVV�GD\�:KHQ�D�EXVLQHVV�¿OHV�D�)RUP��WKH�ODZ�UHTXLUHV�WKH�EXVLQHVV�WR�

SURYLGH�D�ZULWWHQ�VWDWHPHQW�WR�HDFK�SHUVRQ�QDPHG�RQ�WKH�)RUP��WR�QRWLI\�WKHP�WKDW�WKH�EXVLQHVV�KDV�¿OHG�WKH�IRUP��7KH�EXVLQHVV�PXVW�SURYLGH�WKH�ZULWWHQ�VWDWHPHQW�WR�LWV�LGHQWL¿HG�FXVWRPHUV�RQ�RU�EHIRUH�-DQ��RI�the year after the year in which the customer made the cash payment that FDXVHG�WKH�EXVLQHVV�WR�¿OH�)RUP��

A business that chooses to mail the statement must mail the statement in D�WLPHO\�PDQQHU�WR�HQVXUH�WKH�FXVWRPHU�UHFHLYHV�WKH�VWDWHPHQW�E\�-DQ��The statement must include the following information:��7KH�QDPH�DQG�DGGUHVV�RI�WKH�FDVK�UHFLSLHQW¶V�EXVLQHVV��7KH�QDPH�DQG�WHOHSKRQH�QXPEHU�RI�D�FRQWDFW�SHUVRQ�IRU�WKH�EXVLQHVV��7KH�WRWDO�DPRXQW�RI�UHSRUWDEOH�FDVK�UHFHLYHG�LQ�D��PRQWK�SHULRG��$�VWDWHPHQW�WKDW�WKH�FDVK�UHFLSLHQW�LV�UHSRUWLQJ�WKH�LQIRUPDWLRQ�WR�WKH�,56�The only exception to the customer’s notice requirement is when the

)RUP��ZDV�¿OHG�IRU�VXVSLFLRXV�DFWLYLW\��,Q�WKDW�HYHQW��LW�LV�DFWXDOO\�LOOHJDO�IRU�WKH�EXVLQHVV�WR�QRWLI\�WKH�FXVWRPHU�WKDW�WKH�)RUP��ZDV�¿OHG�)RU�WHFKQLFDO�TXHVWLRQV�RU�DVVLVWDQFH�ZLWK�HOHFWURQLF�¿OLQJ�RI�)RUP��

FRQWDFW�WKH�%6$�H�¿OLQJ�KHOS�GHVN�DW��RSWLRQ��RU�YLD�HPDLO�DW�%6$()LOLQJ+HOS#¿QFHQ�JRY��7KH�KHOS�GHVN�LV�DYDLODEOH�0RQGD\�WKURXJK�)ULGD\�IURP��D�P��WR��S�P��(7��7KH�KHOS�GHVN�LV�FORVHG�RQ�IHGHUDO�KROLGD\V�3ULQW�YHUVLRQV�RI�,56�)RUP��DQG�DGGLWLRQDO�LQVWUXFWLRQV�FDQ�EH�IRXQG�

at www.irs.gov. $Q�RYHUYLHZ�RI�)RUP��UHTXLUHPHQWV��LQFOXGLQJ�GH¿QLWLRQV�DQG�

VLWXDWLRQV�UHTXLULQJ�¿OLQJ��FDQ�EH�IRXQG�LQ�WKH�6HSWHPEHU��LVVXH�RI�Dealers’ Resource.

BY ADR STAFF

:KLOH�WKH�1DWLRQDO�,QVXUDQFH�&ULPH�%XUHDX��1,&%��ZDUQHG�RI�WKH�SRWHQWLDO�for fraud regarding vehicles affected by +XUULFDQH�6DQG\��7KH�$VVRFLDWHG�3UHVV�reported the dire predictions of hundreds RI�WKRXVDQGV�RI�ÀRRG�GDPDJHG�YHKLFOHV�was way off the mark.

According to insurance claim data UHYLHZHG�E\�$3��DERXW��FODLPV�KDYH�EHHQ�UHFHLYHG�E\�¿YH�PDMRU�LQVXUDQFH�carriers in the area, far fewer than expected.(DUO\�HVWLPDWHV�SUHGLFWHG�WKH�VWRUP�

WKDW�KLW�WKH�GHQVHO\�SRSXODWHG�1RUWKHDVW�to result in more damaged cars than the ��DIIHFWHG�E\�+XUULFDQH�.DWULQD��ZKLFK�KLW�WKH�*XOI�&RDVW�LQ��1$'$�senior analyst Larry Dixon said as many as ��YHKLFOHV�FRXOG�HQG�XS�VFUDSSHG�because of the storm.

But that apparently is not the case, VDLG�)UDQN�6FD¿GL��D�VSRNHVPDQ�IRU�WKH�1DWLRQDO�,QVXUDQFH�&ULPH�%XUHDX��DQ�insurance company group that monitors IUDXG�DQG�RWKHU�WUHQGV��+H�VDLG�LQVXUHUV�watched by his group are logging far fewer claims than they did with Katrina.

“It doesn’t translate to there’s going to EH��FDUV�RXW�RI�WKLV�WKLQJ�MXVW�because this is such a huge geographic VWRUP�´�KH�WROG�$3�(YHQ�LI�WKHUH�DUH�IHZHU�WKDQ�H[SHFWHG��

WKHUH�DUH�OLNHO\�WR�EH�PRUH�ÀRRG�GDPDJHG�vehicles on the market than normal, and many won’t be labeled as such when they are sold in the wholesale or retail markets.

“Unscrupulous salvage operators and dealers often try to conceal from potential buyers the fact that vehicles have been GDPDJHG�E\�D�QDWXUDO�GLVDVWHU�´�1,&%�SUHVLGHQW�DQG�&(2�-RH�:HKUOH�VDLG�$IWHU�.DWULQD��1,&%�HVWDEOLVKHG�

9,1&KHFN��D�IUHH�VHUYLFH�WKDW�DOORZV�individuals to check if a vehicle has ever EHHQ�GHFODUHG�DV�VDOYDJH�E\�RQH�RI�1,&%¶V�PHPEHU�LQVXUDQFH�FRPSDQLHV��9,1&KHFN�is available at www.nicb.org.


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14


“

“S O U RC E : W W W. I R S . G OV / B U S I N E S S E S / E M P LOY E E -T O O L - & - E Q U I P M E N T- P L A N S

IRS Reviewing Employee Tool PlansThe Internal Revenue Service (IRS) is

reviewing tax treatment of employee tool and equipment plans, sometimes called service technician’s tool reimbursement plans (tool plans).

Tool plans are programs that are marketed in various industries, including auto dealerships, repair facilities and other trades, that require employees to provide their own tools. The plans typically purport to receive tax-favored treatment as “accountable SODQV´�XQGHU�,QWHUQDO�5HYHQXH�&RGH��F��DQG�WKH�DFFRPSDQ\LQJ�UHJXODWLRQV�

An expense reimbursement arrangement is a tax-favored DFFRXQWDEOH�SODQ�LI�LW�VDWLV¿HV�WKH�WKUHH�requirements of business connection, substantiation and returning amounts in excess of substantiated expenses, and if it does not evidence a pattern of abuse of the rules applicable to such plans. Amounts treated as paid under an accountable plan are excluded from the employee’s gross income, are not reported as wages on the employee’s Form W-2, and are exempt from withholding and payment of employment taxes.

Conversely, if the arrangement fails any of the requirements or otherwise evidences a pattern of abuse of the rules, the amounts paid under the arrangement are treated as paid under a ³QRQDFFRXQWDEOH�SODQ´�DQG�DUH�LQFOXGHG�in the employee’s gross income, must be reported as wages or other compensation on the employee’s Form W-2, and are subject to withholding and payment of employment taxes.

Many of the tool plans currently being marketed do not meet the requirements to be tax-favored accountable plans despite their claims to the contrary. In addition to its concerns with the lack of substantiation provided by technicians to ensure that only expenses incurred

for that employer are included in the plan, the IRS is focusing on the fact that the majority of the plans being marketed are designed and operated around a structure that recharacterizes a portion of the employee’s existing pay DV�D�³UHLPEXUVHPHQW´�IRU�WKH�HPSOR\HH¶V�tools merely to generate tax savings for both the employer and the employee.

In other words, the employee continues to receive the same gross pay, but what was previously paid as taxable compensation is recharacterized as nontaxable reimbursement until the employee’s alleged tool costs have been recovered. Then the employee returns to his original amount of taxable compensation. The accountable plan rules make clear that amounts paid whether or not there are expenses incurred are not reimbursements and are not eligible for tax-favored treatment.

The IRS’s attention to tool plans is not QHZ��,Q��LW�LVVXHG�D�FRRUGLQDWHG�issue paper on service technicians’ tool reimbursement plans. The paper concluded that “generally, amounts paid to motor vehicle service technicians as tool reimbursements will not meet the DFFRXQWDEOH�SODQ�UHTXLUHPHQWV�´

$OWKRXJK�GLUHFWHG�VSHFL¿FDOO\�DW�motor vehicle service technicians, the conclusion of the coordinated issue paper was consistent with fact patterns

DOVR�IRXQG�LQ�RWKHU�LQGXVWULHV��,Q��5HYHQXH�5XOLQJ��DGGUHVVHG�the tax consequences of a tool plan, as typically operated at that time. The ruling concluded that the arrangement failed to meet both the substantiation and return of excess requirements and therefore was not a tax-favored accountable plan.

While tool plan promoters responded to the revenue ruling by changing elements of their plans to address some of the shortcomings regarding the substantiation of expenses, the IRS continues to be concerned about FXUUHQWO\�PDUNHWHG�WRRO�SODQV��2I�particular concern is the apparent design and operation of tool plans to recharacterize a portion of the compensation otherwise payable to the employee rather than reimburse substantiated expenses incurred for the employer.

The IRS’s cross-divisional team includes members of all examination GLYLVLRQV��DSSHDOV��DQG�WKH�RI¿FH�RI�chief counsel. The IRS has also initiated promoter investigations and employer H[DPLQDWLRQV�LGHQWL¿HG�IURP�SURPRWHU�client lists. To the extent that plans do not meet the accountable plan rules, there will be employment tax and potentially penalty assessments.7KH�,56�LV�DOVR�UHYLVLQJ�WKH��

coordinated issue paper on service technicians’ tool reimbursement SURJUDPV�WR�UHÀHFW�IDFWV�FRQVLVWHQW�ZLWK�plans currently being marketed.

The plans are widely marketed to various industries, including automotive, heavy equipment, construction, aircraft maintenance, agriculture and other industries. Taxpayers considering implementing such a plan are advised by the IRS to take a cautious approach.

BY ADR STAFF

Although directed VSHFL¿FDOO\�DW�PRWRU�vehicle service technicians, the conclusion of the coordinated issue paper was consistent with fact patterns also found in other industries.

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16


NHTSA RecallsBMW 745I, 745LI, MY 2005BMW 750I, 750LI, MY 2006-2007BMW 760I, MY 2005-2006BMW 760LI, MY 2005-2007NHTSA ID number: 12V504000Latches locks linkages: Doors: LatchUnits affected: 7,485%0:�LV�UHFDOOLQJ�FHUWDLQ�PRGHO�\HDU��6HULHV�YHKLFOHV�HTXLSSHG�ZLWK�ERWK�&RPIRUW�Access and Soft Close Automatic options and manufactured Aug. 23, 2004 through Sept. 3, 2007. Due to a software problem, the doors can appear to be closed and latched but in fact could inadvertently open. The door can unexpectedly open due to road or driving conditions or occupant contact with the door. The sudden opening can result in occupant HMHFWLRQ�RU�LQFUHDVH�WKH�ULVN�RI�LQMXU\�LQ�WKH�HYHQW�of a crash. BMW will notify owners and dealers will update software. The recall is expected to begin in November 2012. Owners can contact %0:�DW��RU�HPDLO�%0:�DW�[email protected]

Honda CR-V, MY 2012NHTSA ID number: 12V501000Equipment: Other: LabelsUnits affected: 264Honda is recalling certain model year ��&5�9V�HTXLSSHG�ZLWK�WKH�/;�WULP�level and manufactured from Aug. 30 to Aug. 31, 2012. The vehicles fail to comply with the requirements of 49 CFR Part 567, ³&HUWL¿FDWLRQ�´�7KH�LQFRUUHFW�YDOXHV�IRU�JURVV�vehicle weight rating, gross axle weight rating IURQW�DQG�UHDU��WLUH�VL]H��DQG�ULP�VL]H�ZHUH�VSHFL¿HG�RQ�WKH�VDIHW\�FHUWL¿FDWLRQ�ODEHO��$�misprinted label could lead to improper vehicle loading. Improper loading could result in a tire failure, increasing the risk of a crash. Honda will notify owners, and dealers will apply the corrective label free of charge. This recall is expected to begin on or about Nov. 6, 2012. 2ZQHUV�FDQ�FRQWDFW�+RQGD�DW��Honda’s recall campaign number is S62.

Nissan Altima, MY 2012-2013NHTSA ID number: 12V494000SteeringUnits affected: 13,9191LVVDQ�LV�UHFDOOLQJ�FHUWDLQ�PRGHO�\HDU��2013 Altima vehicles manufactured from May 1, 2012 through July 26, 2012. The vehicles might have been equipped with transverse link bolts and power steering rack bolts that were QRW�WRUTXHG�WR�SURSHU�VSHFL¿FDWLRQ��7KH�DIIHFWHG�bolts could become loose and fall out, which could lead to a loss of vehicle control, increasing the risk of a vehicle crash. Nissan will notify owners, and dealers will tighten the bolts to the SURSHU�WRUTXH�VSHFL¿FDWLRQV��7KH�VDIHW\�UHFDOO�is expected to begin on or about Oct. 29, 2012. Owners can contact Nissan Customer Service DW��

Mercedes Benz E350, E550, MY 2012NHTSA ID number: 12V492000Airbags: Side windowUnits affected: 4990HUFHGHV�%HQ]�LV�UHFDOOLQJ�FHUWDLQ�PRGHO�year 2012 E350 and E550 Coupe vehicles

manufactured April 2, 2012 through June 29, 2012. Improper stitching of the right side window curtain air bag can cause it to not deploy as intended in the affected vehicles. In the event of an accident necessitating the deployment of the right window curtain air bag, the improper VWLWFKLQJ�FRXOG�FDXVH�LW�WR�GHÀDWH�PRUH�TXLFNO\�than intended, reducing the protection it may SURYLGH��UHVXOWLQJ�LQ�DQ�LQFUHDVHG�ULVN�RI�LQMXU\�WR�YHKLFOH�RFFXSDQWV��0HUFHGHV�%HQ]�ZLOO�QRWLI\�owners, and dealers will replace the right side window curtain air bag. The safety recall is expected to begin in November 2012. Owners FDQ�FRQWDFW�0HUFHGHV�%HQ]�DW��

BMW K1200 R, R Sport, K1200 S, MY 2007-2008NHTSA ID number: 12V487000Service brakes, hydraulicUnits affected: 2,062%0:�LV�UHFDOOLQJ�FHUWDLQ�PRGHO�\HDU��2008 K1200 S, K1200 R, and K1200 R Sport motorcycles. In certain riding conditions, the EUDNH�ÀXLG�LQ�WKH�IURQW�EUDNH�ÀXLG�UHVHUYRLU�FDQ�IRDP��%UDNH�ÀXLG�WKDW�IRDPV�FDQ�OHDG�WR�reduced braking capability of the front brake system, possibly resulting in a crash. The IURQW�EUDNH�ÀXLG�UHVHUYRLU�ZLOO�EH�UHWUR¿WWHG�with a screen insert, free of charge. The recall is expected to begin during November 2012. 2ZQHUV�FDQ�FRQWDFW�%0:�DW��7417 or email BMW at [email protected].

Ford Fiesta, MY 2011-2013NHTSA ID number: 12V488000AirbagsUnits affected: 154,604)RUG�LV�UHFDOOLQJ�FHUWDLQ�PRGHO�\HDU��Fiesta vehicles manufactured from Nov. 3, 2009 through Sept. 21, 2012. The vehicles fail WR�FRPSO\�ZLWK�)HGHUDO�0RWRU�9HKLFOH�6DIHW\�6WDQGDUG��)0966��1R��³2FFXSDQW�&UDVK�Protection.” The passenger side curtain air bag will not deploy in the event of a side impact collision when the front passenger seat is empty. Although the side curtain air bag system was designed to suppress the side curtain air bag under this scenario, that information is not explained in the owner’s guide for these YHKLFOHV�DV�UHTXLUHG�E\�)0966�1R��$Q�occupant in the right rear seating position will not have coverage from the side curtain air bag in a side impact collision when the front passenger seat is empty, increasing the risk of LQMXU\�WR�WKH�ULJKW�UHDU�RFFXSDQW��)RUG�ZLOO�QRWLI\�owners and dealers will reprogram the vehicle’s software free of charge so that it no longer suppresses the passenger side curtain air bag when the front passenger seat is empty, and consistent with the description in the owner’s guide. The safety recall is expected to begin VKRUWO\��2ZQHUV�FDQ�FRQWDFW�)RUG�DW��7332. Ford’s recall campaign number is 12C26.

Pontiac Vibe, MY 2009Toyota Camry, Camry HV, MY 2007-2009Toyota Corolla, Corolla Matrix, MY 2009Toyota Highlander, Highlander Hybrid, MY 2008Toyota RAV4, MY 2007-2009Toyota Scion XB, Scion XD, MY 2008-2009

Toyota Sequoia, MY 2008-2009Toyota Tundra, MY 2007-2008Toyota Yaris, MY 2007-2008NHTSA ID number: 12V491000Visibility: Power window devices and controlsUnits affected: 2,519,4247R\RWD�LV�UHFDOOLQJ�FHUWDLQ�PRGHO�\HDU��&DPU\��&DPU\�+\EULG��5$9��&RUROOD��&RUROOD�Matrix, Tundra, Sequoia, Highlander, Highlander Hybrid, Yaris, Scion XB, Scion XD and Pontiac 9LEH�YHKLFOHV��7KH�SRZHU�ZLQGRZ�PDVWHU�VZLWFK�assemblies in some of the vehicles were built using a less precise process for lubricating the internal components of the switch assemblies. Irregularities in the lubrication process can cause the power window master switch assemblies to malfunction and overheat. If the switch overheats, it could melt, possibly resulting in a ¿UH��7R\RWD�ZLOO�QRWLI\�LWV�RZQHUV��DQG�GHDOHUV�will inspect the switch and apply a special grease that inhibits heat buildup or replace any switch damaged by the defect, free of charge. Toyota owners who experience a problem with a switch should not attempt to make repairs, but should contact their Toyota dealer or the Toyota &XVWRPHU�([SHULHQFH�&HQWHU�DW��*HQHUDO�0RWRUV�ZLOO�FRQWDFW�3RQWLDF�9LEH�RZQHUV�affected by the recall and GM dealers will inspect and repair switches as necessary. Those owners FDQ�FRQWDFW�3RQWLDF�&XVWRPHU�&DUH�DW��

Honda CR-V, MY 2002-2006NHTSA ID number: 12V486000Visibility: Power window devices and controlsUnits affected: 268,655+RQGD�LV�UHFDOOLQJ�FHUWDLQ�PRGHO�\HDU��&5�9�SDVVHQJHU�YHKLFOHV��PDQXIDFWXUHG�IURP�)HE��WKURXJK�-XO\��7KH�GULYHU�side power window switch could fail or melt. If the switch fails, it could overheat, smoke and cause a ¿UH��$�VZLWFK�IDLOXUH��DQG�D�¿UH��FRXOG�RFFXU�HYHQ�LI�the vehicle is not in use. As a precaution, owners are advised to park outside until the recall repair has been performed. Honda will notify owners, and dealers will inspect and repair the switches, as necessary, free of charge. The safety recall is expected to begin on or about Nov. 2, 2012. 2ZQHUV�FDQ�FRQWDFW�+RQGD�DW��Honda’s campaign recall number is S61.

Dodge Dakota, MY 2009-2010Dodge Ram 1500, MY 2009-2010NHTSA ID number: 12V474000Power train: Driveline: Differential unitUnits affected: 44,300&KU\VOHU�LV�UHFDOOLQJ�FHUWDLQ�PRGHO�\HDU��2010 Ram 1500 and Dodge Dakota trucks manufactured from July 1, 2009 through Nov. 30, 2009 because a rear axle pinion nut could loosen due to a lack of adhesive. If the rear axle pinion nut loosens, the axle can lock up and cause a loss of vehicle control and/or a vehicle crash with little warning. Chrysler will notify owners, and dealers will install a pinion nut retainer, free of charge. The recall is expected to begin during November 2012. 2ZQHUV�FDQ�FRQWDFW�&KU\VOHU�DW��Chrysler’s recall campaign number is M34.

BY ADR STAFF

S O U RC E : W W W. N H T SA . G OV

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S O U RC E : W W W. N H T SA . G OV

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18

L AT E S T G OV E R N M E N TA L I S S U E S

NIADA Legislative Team Update+HUH¶V�D�UXQGRZQ�RI�VRPH�RI�WKH�

latest governmental issues and activity affecting the used car industry from 6DQWH�(VSRVLWR�RI�)HGHUDO�$GYRFDWHV�DQG�1,$'$�OHJLVODWLYH�UHJXODWRU\�compliance counsel Shaun Petersen.

$XFWLRQ�6DOHV:KLOH�&RQJUHVV�KDV�QRW�RI¿FLDOO\�VDLG�

anything on the issue in months, there is, as previously reported, still interest IURP�6HQ��3U\RU�DQG�WKH�+RXVH�(QHUJ\�and Commerce Committee in exploring the impact of the current auction sale process on consumers and law enforcement.

To that end, Steve Lehrman, legislative DVVLVWDQW�WR�6HQ��3U\RU��YLVLWHG�$'(6$¶V�Washington-area auction facility on Aug. ��WR�YLHZ�WKH�DXFWLRQ�SURFHVV�¿UVWKDQG��At the end of the visit, Lehrman said the senator and other interested legislators “don’t have a problem with ZKDW�JRHV�RQ�DW�WKH�DXFWLRQ´�EXW�FRXOG�have issues with “what happens with the DXFWLRQHG�FDUV�´/HKUPDQ�DVNHG�LI�1,$'$�FRXOG�

provide some thoughts regarding how to address that situation, especially as it relates to law enforcement, but we prefer not to respond until we receive more FODUL¿FDWLRQ�DV�WR�H[DFWO\�ZKDW�LVVXH�problem legislators are trying to solve.

Regardless, legislation is not likely to be introduced this year.

Rental Cars (S.1445, S.3502 and H.R. 6094)

There have been reports that consumer advocates are nearing a deal with rental car companies on the issue of banning rentals of motor vehicles under safety recall until the defect or noncompliance is remedied. So far, there LV�QRWKLQJ�GH¿QLWLYH��DQG�LW¶V�QRW�FOHDU�whether the rumored deal would require legislation.$�ELOO�FRYHULQJ�WKH�UHQWDO�UHFDOO�

LVVXH��6��ZDV�LQWURGXFHG�LQ��E\�6HQ��&KXFN�6FKXPHU��'�1<��DQG�cosponsored by Sens. Dianne Feinstein and Barbara Boxer, both California 'HPRFUDWV��,W�ZDV�PRGL¿HG�WKLV�VXPPHU�E\�+�5��LQWURGXFHG�E\�5HS��/RLV�Capps (D-Calif.), and an updated Senate ELOO��6��LQWURGXFHG�E\�%R[HU�DQG�co-sponsored by Feinstein.

Boxer has sparred with rental

car companies this year, calling for (QWHUSULVH��$YLV��+HUW]�DQG�'ROODU�Thrifty to sign a pledge promising not to rent or sell cars under safety recall until WKH�FDUV�DUH�¿[HG��2QO\�+HUW]�VLJQHG� the pledge. The others said while they support legislation to ensure rental car safety, companies address safety recalls in a timely manner and insist any legislation should also cover other businesses that transport passengers, like limousine and taxi companies.

S.1449, MAP-21In September, Sen. Boxer announced

she is already working on legislation to succeed the Moving Ahead for Progress LQ�WKH��VW�&HQWXU\�$FW��0$3��WKH��ELOOLRQ�IHGHUDO�WUDQVSRUWDWLRQ�ELOO�WKDW�ZDV�VLJQHG�LQWR�ODZ�-XO\��0$3��H[SLUHV�LQ�DERXW��GD\V��

Congress is likely to be in legislative session for less than half that time and is likely to be preoccupied with a number of higher priority issues.%R[HU�VDLG�KHU�JRDO�LV�³WR�¿QG�D�

dependable funding source and to work LQ�D�ELSDUWLVDQ�ZD\�WR�¿QG�WKDW�IXQGLQJ�VRXUFH��,�UHDOO\�EHOLHYH�WKDW�WKH�+LJKZD\�Trust Fund should be funded through XVHU�IHHV�´

Those fees might include indexing the JDV�WD[�WR�LQÀDWLRQ��EXW�SUREDEO\�ZRXOG�not include a vehicle miles-traveled fee, which Boxer said raises privacy FRQFHUQV��(YHQ�D�JDV�WD[�LQFUHDVH�ZRQ¶W�be enough, she said, if vehicles keep JHWWLQJ�PRUH�IXHO�HI¿FLHQW�³:H¶YH�JRW�WR�¿JXUH�RXW�RWKHU�ZD\V�´�

Boxer said. “For example, I drive a K\EULG�FDU�DQG�,�JHW�DERXW��PLOHV�WR�the gallon, I’m not paying my fair share at all. If I get an electric car, I won’t pay DQ\WKLQJ�´

H.R.860 and S.110, Promoting &KDULWDEOH�'RQDWLRQV�RI�4XDOL¿HG�9HKLFOHV�$FW�RI��

While the Senate bill, introduced E\�6HQ��-RKQ�(QVLJQ��5�1HY��KDV�QR�FRVSRQVRUV��WKH�LGHQWLFDO�+RXVH�bill, introduced by Rep. John Larson �'�&RQQ��QRZ�KDV��FRVSRQVRUV�±�DOPRVW��SHUFHQW�RI�WKH�+RXVH�membership.

The bill amends the Internal Revenue Code to make it easier to take a charitable tax deduction for

FRQWULEXWLRQV�RI�TXDOL¿HG�YHKLFOHV�(motor vehicles, boats or airplanes). According to the IRS, as a result of Congress tightening the deductibility UXOHV�LQ��WKH�YROXPH�RI�XVHG�FDU�GRQDWLRQV�IHOO�E\�DERXW��SHUFHQW�

With such a large number of bill sponsors and obvious bipartisan support, one would expect the bill to move quickly and without controversy through the legislative process. That has not happened for several reasons – the somewhat problematic tax deduction history of motor vehicle donations, the fact that no revenue bills are moving LQ�WKH�+RXVH��WKH�XQFHUWDLQW\�RI�WKH�bill’s revenue impact, the lack of Senate interest and support, the fact that WKH�LVVXH�LV�QRW�D�SULRULW\�IRU�+RXVH�leadership, and the limited amount of time remaining in the Congress to consider legislation.

6��WKH�,QGHSHQGHQW�$JHQF\�5HJXODWRU\�$QDO\VLV�$FW�RI��2Q�$XJ��6HQ��3RUWPDQ��5�2KLR��

LQWURGXFHG�6��WKH�,QGHSHQGHQW�Agency Regulatory Analysis Act of ��7KH�ELOO�ZDV�UHIHUUHG�WR�WKH�6HQDWH�+RPHODQG�6HFXULW\�&RPPLWWHH��8QGHU�WKH�ELOO��WKH�:KLWH�+RXVH�ZRXOG�UHFHLYH�H[SOLFLW�DXWKRULW\�WR�LQÀXHQFH�the rulemaking process of regulatory agencies, including the Federal Trade Commission the Consumer Financial Protection Bureau.

The President, through an executive order, would be allowed to mandate DW�WKH�PLQLPXP�D��SRLQW�WHVW�IRU�UXOHPDNLQJ��LQFOXGLQJ�¿QGLQJ�³DYDLODEOH�DOWHUQDWLYHV�WR�GLUHFW�UHJXODWLRQ�´�HYDOXDWLQJ�WKH�³FRVWV�DQG�WKH�EHQH¿WV�´�and periodically reviewing existing rules to make agencies “more effective or less EXUGHQVRPH�´

For rules with an annual effect of ��PLOOLRQ�RU�PRUH�RQ�WKH�HFRQRP\��agencies would submit their proposals to WKH�:KLWH�+RXVH¶V�2I¿FH�RI�,QIRUPDWLRQ�and Regulatory Affairs. A negative UHYLHZ�IURP�WKH�RI¿FH�ZRXOG�GHOD\�D�UXOH�for up to three months and force the agency to explain its approach.

If enacted, the bill would clearly impact various aspects of the regulatory process, the most obvious being timing.

C O N T I N U E D O N PAG E 2 0

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20


In November and December, more than 4 million American businesses, including 740,000 retailers, will receive 2012 Economic Census forms. Responses to the questionnaire are required by law to be returned by Feb. 12.(YHU\�¿YH�\HDUV��WKH�JRYHUQPHQW�

conducts the Economic Census to develop a comprehensive portrait of American business, from the national to the local level, relying on timely and accurate data.

The U.S. Census Bureau has created a web page __ business.census.gov __ to provide information about the Economic Census as well as statistics businesses can use to assess and grow their business operations.

The site includes webinars and videos to educate businesses about the census and what it means to them, as well as a section geared toward small businesses. FOR MORE INFORMATION, VISIT BUSINESS.CENSUS.GOV.

Economic Census Coming Soon

E C O N O M I C N E W SDepartment of Labor

Last year, the Department of Labor ¿QDOL]HG�D�UXOH�WR�HOLPLQDWH�WKH�RYHUWLPH�exempt status for service writers and service advisors. But as part of the GHSDUWPHQW¶V��DSSURSULDWLRQ�legislation, Congress prohibited the department from using any funds to enforce that rule.

That appropriation legislation expires in March, and the prohibition will also expire unless it is extended by new legislation.

,QWHUQDO�5HYHQXH�6HUYLFH7KH�)LQDQFLDO�&ULPHV�(QIRUFHPHQW�

1HWZRUN��)LQ&(1��DQQRXQFHG�WKDW�D�variety of businesses, including auto GHDOHUV��DUH�QRZ�DEOH�WR�HOHFWURQLFDOO\�¿OH�)RUP��5HSRUWV�RI�&DVK�3D\PHQWV�2YHU��5HFHLYHG�LQ�D�7UDGH�or Business, using the Bank Secrecy $FW�HOHFWURQLF�¿OLQJ�V\VWHP�DW�KWWS��EVDH¿OLQJ�¿QFHQ�WUHDV�JRY�PDLQ�KWPO�(�)LOLQJ�LV�D�IUHH�V\VWHP�WKDW�DOORZV�

EXVLQHVVHV�WR�VXEPLW�WKHLU�)LQ&(1�reports through a secure network. Paper ¿OLQJV�RI�)RUP��ZLOO�FRQWLQXH�WR�be accepted for now, but businesses are HQFRXUDJHG�WR�EHJLQ�(�)LOLQJ�

Federal Trade CommissionThe FTC has published a guide called

Marketing Your Mobile App: Get it Right from the Start, to help mobile app developers and users comply with truth-in-lending and privacy laws.

The guide highlights that all required disclosures must be made clearly and conspicuously and suggests apps only collect necessary information and providers be transparent about data collection and sharing practices. This information is important for dealers who advertise on mobile sites or who have their own smart phone app.

The FTC released a statement on 6HSW��UHDI¿UPLQJ�LWV�IRFXV�RQ�enforcing the Fair Credit Reporting Act. That suggests more enforcement action on illegal sharing of personal information and illegal use of credit scores. Dealers should have their counsel review all contracts that allow vendors access to their DMS, and any vendor that provides list of customers based RQ�WKHLU�FUHGLW�SUR¿OH��

C O N T I N U E D F RO M PAG E 1 8

NIADA LEGISLATIVE TEAM UPDATE

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21


AU T O S H OW

Northwood University’s 2012 Auto Show Drives the Dream1RUWKZRRG�8QLYHUVLW\�KHOG�LWV��,QWHUQDWLRQDO�$XWR�6KRZ�RQ�2FWREHU��GUDZLQJ�PRUH�

WKDQ��SHRSOH�WR�WKH�1RUWKZRRG�FDPSXV�LQ�0LGODQG��0LFK�7KH�WKUHH�GD\�HYHQW��LQ�LWV��WK�\HDU��SURYLGHG�D�OHDUQLQJ�H[SHULHQFH�IRU�VWXGHQWV�DV�ZHOO�DV�

WKH�RSSRUWXQLW\�IRU�YLVLWRUV�WR�LQWHUDFW��YLHZ�DQG�EHFRPH�HGXFDWHG�DERXW�WKH�PRUH�WKDQ��SURGXFW�RIIHULQJV�SUHVHQWHG�E\��VWXGHQWV�RI�DOO�PDMRUV�DW�1RUWKZRRG�8QLYHUVLW\��$V�DOZD\V��students planned, organized, executed and worked the show.

“Despite the on-and-off rainy weather throughout the weekend, attendance to the auto VKRZ�ZDV�VWHDG\�DV�SHRSOH�EXQGOHG�XS�DQG�HQMR\HG�WKH�VKRZ�UHJDUGOHVV�´�DXWR�VKRZ�JHQHUDO�chair Patrick Faber said.'U��7LPRWK\�1DVK��1RUWKZRRG¶V�YLFH�SUHVLGHQW�IRU�VWUDWHJLF�DQG�FRUSRUDWH�DOOLDQFHV��

HVWLPDWHG�WKH�VKRZ¶V�HFRQRPLF�LPSDFW�WR�WKH�0LGODQG�DUHD�DW��PLOOLRQ��PLOOLRQ��

FOR MORE INFORMATION, CALL (989) 837-4823 OR EMAIL [email protected].

Dealer registration forms, additional sale information and directions

are available on our web site: chickashaautoauction.com

AUCTION SALE EVERY THURSDAY NIGHT!“ C H I C K A S H A A U T O A U C T I O N . . . W H E R E S E R V I C E S E L L S ! ”

3� 2 � � % 2 ; � � � � � � � � � � � � � ( � � + : < � � � � & + , & . $ 6 + $ � � 2 . � � � � � � � � � � � 3 � � � � � � � � � � � � � � � � � ) � � � � � � � � � � � � � � �

Dinner is served from 5:30 till 6:30pm.

��:H�KDYH�D�KRVW�RI�1HZ�&DU�6WRUHV��/RDQ��FRPSDQLHV��%DQNV��DQG�FUHGLW�XQLRQV��

��:H�VWULYH�WR�SURYLGH�DQ�H[WUHPHO\�IULHQGO\��DWPRVSKHUH�DQG�IXOO�VHUYLFH�WR�RXU�GHDOHU�IDPLO\��

��&RPH�([SHULHQFH�ZKHUH�'HDOHUV�ZLOO�EH��WUHDWHG�ZLWK�PRUH�UHVSHFW�DQG�VHUYLFH��

��:H�DUH�D�IDPLO\�RZQHG�DQG�RSHUDWHG��H[SHULHQFHG�EXVLQHVV�ZLWK�D�UHVSHFWHG�UHSXWDWLRQ��WKUX�RXW�WKH�DXWRPRELOH�LQGXVWU\��:H�WDNH�JUHDW�SULGHLQ�EHLQJ�WKH�EHVW�ZH�FDQ�SRVVLEO\�EH�

W E A R E A D E A L E R S A L E O N LY2:1(56��'$9,'�%/$/2&.��-,0�%/$/2&.

Auction starts at 6:30pm

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22


Negative SEO?

:KHQ�\RX�¿UVW�KHDU�WKH�ZRUGV�³1HJDWLYH�6(2´�\RX�SUREDEO\�WKLQN�LW�VRXQGV�OLNH�an oxymoron. You know, like living dead, original copy, dark light or accidentally on purpose.

But two items that don’t seem to mesh DUH�¿QDOO\�GRLQJ�VR�

During this election year, we have all seen the dirty tricks politicians have played on each other – negative smear campaigns and truth spinning. But don’t think those tactics are isolated to politics.

In the automotive industry, there are growing numbers of companies that like to play dirty as well, and if you are not aware of it yet, you need to continue reading.

With the constant uphill battle of \RXU�FRPSHWLWLRQ�³ÀDJJLQJ´�\RXU�DGV�RQ�Craigslist or leaving negative reviews on listing services such as Dealerrater.com, Google Places or even Merchant Circle, the war has just become a bit more complicated.³1HJDWLYH�6(2´�FDQ�PHDQ�DQ\�W\SH�RI�

malicious harm intentionally caused to hurt the placement of a website’s search engine rankings. The thought process is, if \RX�FDQ¶W�EHFRPH�1R��WKHQ�VDERWDJH�DOO�of those ahead of you until you are 1R��

Forcing one website to appear lower in WKH�6(53��VHDUFK�HQJLQH�UDQN�SODFHPHQW��means other websites will climb higher in WKH�6(53��7KDW¶V�ZK\�QHJDWLYH�6(2� is considered a viable model by unethical website providers and online marketing companies.7KH�PRVW�FRPPRQ�IRUP�RI�QHJDWLYH�6(2�

is accomplished by linking a website to low-quality, unrelated businesses. Those DUH�FDOOHG�³EODFN�KDW´�OLQNV�±�WKH\¶UH�WKH�bad guys.

Links are among the most important LWHPV�ZKHQ�LW�FRPHV�WR�6(2��VHDUFK�engine optimization), but you want to make sure related industry businesses are linking into your website. Links can pass value to your website when done the right way. Links can harm your website when done the wrong way.

There are two types of linking that can be done with any website: internal linking and external linking. Internal linking is linking WR�UHVRXUFHV�LQVLGH�\RXU�ZHEVLWH�GRPDLQ��while external linking links to web pages RU�RWKHU�UHVRXUFHV�RXWVLGH�\RXU�ZHEVLWH�domain.

A link on another website that points to your site can either have value to it and

W E B C H AT

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help your site or it can have a negative effect on your website and hurt you. External links that point to your site are a common way negative SEO is applied, and it is very hard to see because it all happens away from your site and is nearly invisible.

Related incoming business links: You might have heard the term “link swapping.” That’s when a business asks you to place a link to it on your website in exchange for a link from its website.

That can be beneficial if the business is in the same industry as you are. For example, if a used car dealership swaps links with an auto repair/service facility, a towing company or a tire sales business.

There is a reason for you to swap links because you are helping your customers navigate to a product or service that you might not offer that could be considered helpful. Value can be associated to both websites in that process.

Each of the links from the other website that points to your website counts as an “incoming/inbound link” to your site. Other related links that can qualify are from third-party paid listing services, social media outlets, online video channels and business directory listings.

If you are link swapping with other businesses, you always want to make sure the links you are pointing to are valid websites that are still in business. If you are linking to an off-line website, or “dead link,” as it is called, it can easily wipe out the value of hundreds of positive links.

Disassociated business links and unnatural links: Disassociated links are considered an attempt to try to boost the ranking of your site for the sole purpose of increasing your position.

Some businesses think all links are good links. Right? Wrong! Make sure links pointing to your website are within your general industry – stay away from disassociated links, such as linking a used car dealership with, say, a flower shop, a hardware store or a movie theater.

In addition to disassociated links, there are companies referred to as “link farms” that advertise they’ll sell you hundreds or thousands of incoming/inbound links, which are referred to as “backlinks.” The companies will point those links to your website for a monthly fee.

Most of the time, the companies will claim the links they provide will be within the same industry as your business, but

there is no real way to guarantee that. Google recently released an update called the Penguin that in part identifies websites in the link farm business that offer unnatural links. If you are found on the receiving end of those links, you could have some serious issues with your online placement.

Because there is nothing to keep a competitor from signing up your website’s URL with those kinds of companies, and the links do not appear on your website, that style of attack can easily go unnoticed.

Be aware of who is linking to you. Periodically looking into what links are being directed to your website can help detect negative SEO campaigns that have been launched against your business, as well as identify any links that are unrelated to your industry.

There are many free websites you can use to check for backlinks. A good free site to check is www.ranksignals.com, which allows you to identify the total number of backlinks as well as get a page rank of the links that are pointing to your website.

BY MICHAEL D. JACKSON CEO OF AUTO SEARCH TECHNOLOGIES, INC. HE CAN BE REACHED AT (949) 608-0809 OR [email protected].

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COMPANY NAME CITY$ULD�$XWR�6DOHV� 5DKLP�$]DUSRXU� 2NODKRPD�&LW\Auto Mart Richard McConville Oklahoma CityBill’s Auto Sales of Tahlequah Jason Helm TahlequahBob Howard Hyundai Ronald W. Barnhill Oklahoma City Beth Sibley Darryl M. Burman John C. Ricket Frank GreseCCC Auto Sales Tammy Caughern Heavener Ray CaughernDereck’s Used Cars Dereck Thomsen CordellFifth Gear Cycle Chad Smith Broken Arrow Paul SumrallG’s Cowboy Cars Gary Underwood SpiroInspire Motors, Inc. Shahid Iqbal Oklahoma CityK & K Auto Sales Kerry Martin MadillLightning Auto Sales, LLC James Anthony Tulsa Allan Green Brandy Mutters

Stars GPSWe are pleased to include Stars GPS as an OIADA Branded Provider of vehicle tracking and recovery solutions for RXU�LQGXVWU\��6WDUV�*36�VSHFLDOL]HV�LQ�SURYLGLQJ�WKH�EHVW�technology with personal service, training and support for the independent and franchise dealership. For more information, JR�WR�ZZZ�VWDUV�JSV�FRP��HPDLO�LQIR#VWDW�JSV�FRP�RU�FDOO��

David L. Nunn, Esq.David L. Nunn heads the Edmond, Okla., law office of David L. Nunn, P.C., which serves the greater metro Oklahoma City area. We are pleased to include Mr. Nunn as an OIADA Select Provider of legal services to the industry. David L. Nunn, P.C. is located at 17 East First Street, Edmond, OK ��+H�FDQ�EH�UHDFKHG�DW��RU�E\�ID[�DW��0U��1XQQ�LV�LQFOXGHG�DV�D�6HOHFW�3URYLGHU�QRW�because he asked to be, but because we know the quality of service that he provides to dealers.

B & C Auto Transport, Inc.B & C Auto Transport takes pride in providing fast, dependable transport service to auto dealers nationwide. We are pleased to include B & C Auto Transport, Inc. as an OIADA Select Provider of transport services for auto dealers nationwide because of its record of providing outstanding VHUYLFH�DW�UHDVRQDEOH�UDWHV��&DOO��RU� ��FHOO��RU�HPDLO�%&$XWR7UDQVSRUW,QF#JPDLO�FRP�

The following applicants, as listed in the agenda for the Used Motor Vehicle and Parts Commission regular meeting of Oct. 9, 2012, were considered for issuance of used motor vehicle dealer licenses and wholesale vehicle dealer licenses. The applications were approved pending compliance with the state licensing laws and rules and subject to final approval by commission staff.

License Applicants Approved

USED DEALER LICENSES COMPANY NAME CITYMcKee Motorsports, LLC Judy L. McKee TulsaOscar Used Cars Ben M. Richerson Ardmore Speedy Ann DeerinwaterOutlaw Auto & Part Brokers Farrah Whitaker Marlow5HG�5RFN�$XWR�6DOHV� -XVWLQ�'UHZ�(QW]� +LQWRQ6XSHULRU�$XWR�*URXS�3OD]D� *HUDUGR�5RPHUR� 0XVNRJHH� � -RVH�*XWLHUUH]7�7RZQ�4XDOLW\�&DUV��//&� &DUORV�(UQHVWR�0DWXWH� 7XOVD Brittney Jones*Tulsa Motorworks, LLC Jeremy Guest Tulsa�7ZR�RQ�D�ORW�ZLWK�5R[\�$XWR�6DOH��/HDVLQJ�

*Special circumstances

WHOLESALE DEALER LICENSESCOMPANY NAME CITYBill’s Auto Shop, LLC Jason Helm StilwellNoon Motors Bari A. Noon EdmondRo’s Auto Rolando Arroyo Tulsa

“IF WE DON’T SERVE YOU WE DON’TDESERVE

YOU”

OKLAHOMA’S NEWEST AND ONLY COMPLETELY ENCLOSED AUTO AUCTION.

· Stay protected from the elements in our 125,000 square feet of indoor auction space

· Offering an 18 acre facility with a six bay detail and reconditioning shop

· Enjoy free catered breakfast and lunch in our 2500 square foot Dealers’ lounge

· Friendly and knowledgeable staff committed to serving you!

WITH A WARM MEAL AND COMFORTABLE ENVIRONMENT, YOU’LL ENJOY A BUYING EXPERIENCE THAT WILL BRING YOU BACK WEEK AFTER WEEK!

WEDNESDAYS AT 9:00 AMWWW.OKAEX.COM

,

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COMPANY NAME JOINED CITYR Carl’s Auto Sales Carl Curtis Whitlock 1991 PoteauR Mangum Auto Sales Jacky D. Mangum, Jr. 2000 DuncanR Glen Rabe Motors Glen Rabe 1993 ArdmoreR England Ford, Inc. Ricky C. England 2007 HintonR Barry Sanders Supercenter Barry Sanders Supercenter 2009 NormanR Bowers Auto Sales Rex Bowers 1999 MoundsR Liberty Auto Finance Ben Denton 2011 SapulpaR Good Deal Used Cars & Parts, Inc. Johnny Fuller 1991 TurpinR Enlow 66 Auction, Inc. Rodney D. Enlow 2007 TulsaR Town & Country Auto, Inc. Roy G. Sisco 1991 WewokaR L & A Wrecker Service Professional Towers, Inc. 1991 NormanR Norris Auto Sales Randy Dunn 2010 EdmondR Shockley’s Auto Sales, Inc. Monte Shockley 1995 PoteauR Enterprise Car Sales ENA Holding, LLC 1993 Midwest CityN Weird Al’s Auto Sales, LLC Allen Clark 2012 Inola5� 7RPSNLQV�0RWRU�&R��,QF�� -RH�'DOH�7RPSNLQV� �� 3DXOV�9DOOH\R #9 Auto Sales John Fletcher 2000 Tecumseh5� ,��&UHGLW�$XWR� 7\VRQ�+HOW]HQ� �� 2NODKRPD�&LW\R W.G. Auto Collection William Edward Glover 2005 EdmondR Car Nation Massoud Goli 2006 Oklahoma CityR Ben’s Auto Sales Abi Golsorkhi 2009 Warr AcresR CSTK Motors Mike Nelson 2011 Oklahoma CityR Smart Auction Gordon Smith 2008 Tulsa5� &DU0D[�7KH�$XWR�6XSHUVWRUH� 7\OHU�.LGG� �� 5LFKPRQG��9$R Chase Auto Finance Max M. Ellis 2011 Oklahoma City

OIADA New and Renewal MembersThe following list includes members who joined or renewed their OIADA/NIADA membership during September. We express our sincere appreciation for all the members of OIADA and extend our invitation to dealers who are not members. A membership application can be found elsewhere in this newsletter. We urge you to be an active part of maintaining a strong and effective used car industry voice in the legislative and regulatory environment. With the current administration’s attitude toward the motor vehicle sales industry, we need that voice more than ever!

OK_1212.indd 25 11/19/12 11:00 AM


26


&KDLUPDQ�-RKQ�/RQJDFUH�FRQYHQHG�WKH�2FW��VHVVLRQ�RI�WKH�8VHG�0RWRU�9HKLFOH�DQG�3DUWV�&RPPLVVLRQ��)ROORZLQJ�UROO�FDOO�DQG�DSSURYDO�RI�WKH�6HSW��PHHWLQJ�PLQXWHV��/RQJDFUH�called on director John Maile for the director’s report.

Maile called the commissioners’ attention to the expenditure UHSRUW�LQFOXGHG�LQ�WKH�DJHQGD�SDFNHW��+H�WKHQ�LQWURGXFHG�-RKQ�&REE��WKH�QHZ�¿HOG�DJHQW��&REE¶V�DVVLJQHG�DUHD�ZLOO�EH�SDUW�RI�2NODKRPD�&LW\�DQG�WKH�QRUWKZHVWHUQ�SDUW�RI�WKH�VWDWH�0DLOH�QRWHG�DOO�RI�WKH�UHQHZDO�DSSOLFDWLRQV�IRU��KDG�EHHQ�

mailed to dealers and said staff was starting to get them back. +H�DOVR�QRWHG�WKH�FRPPLVVLRQHUV�KDG�UHFHLYHG�D�FRXSOH�RI�¿QDQFH�VWDWHPHQWV�YLD�HPDLO�0DLOH�LV�ZRUNLQJ�RQ�JHWWLQJ�FXUUHQW�RQ�WKH�¿QDQFLDO�

statements. Commissioners should receive the September ¿QDQFLDO�VWDWHPHQW�LQ�WKH�QH[W�ZHHN�RU�VR��7KH�FDVK�EDODQFH�as of the end of September is usually the lowest point in the FRPPLVVLRQ¶V�¿VFDO�\HDU��7KDW�ZLOO�WHOO�WKH�FRPPLVVLRQHUV�ZKDW�the carryover is.

Maile advised that he and deputy director Kenneth Whitehead went to Washington the previous month for a PHHWLQJ�RI�WKH�0RWRU�9HKLFOH�%RDUGV�DQG�&RPPLVVLRQV��D�group made up of counterparts from other states.2QH�RI�WKH�SUHVHQWDWLRQV�ZDV�DERXW�WKH�9LUJLQLD�'HDOHU�

5HFHUWL¿FDWLRQ�3URJUDP��9LUJLQLD�KDV�D�FRQWLQXLQJ�HGXFDWLRQ�program for dealers in which they recertify every three \HDUV��DQG�WKH�VWDWH�KDV�D�UHFRYHU\�IXQG��%XW�ZKDW�9LUJLQLD¶V�representatives were talking about this year was their effort to keep dealers current on laws and education. It is something that has merit.

Pennsylvania representatives discussed their multi-year licensing – the state licenses dealers for three years. ,I�2NODKRPD�DGRSWHG�VXFK�D�SURJUDP��VWDII�ZRXOG�QRW�EH�doing renewals every year, which would cut down on the ZRUNORDG��&RPPLVVLRQHU�6KUHYH�QRWHG�WKDW�9LUJLQLD�LVVXHV�D�two-year license.$�UHSUHVHQWDWLYH�IURP�1+76$�DGGUHVVHG�WKH�JURXS�

regarding electronic odometer statements. They are under D�PDQGDWH�WR�KDYH�WKDW�V\VWHP�LQ�SODFH�ZLWKLQ�WKH�QH[W��PRQWKV��2QFH�LW�LV�LQ�SODFH��VWDWHV�ZRXOG�KDYH�DQ�RSSRUWXQLW\�WR�JR�WR�HOHFWURQLF�FHUWL¿FDWHV�RI�WLWOH��ZKLFK�ZRXOG�EH�PRUH�GLI¿FXOW�WR�DOWHU��7KH�WXUQDURXQG�WLPH�XVLQJ�HOHFWURQLF�FHUWL¿FDWHV�RI�WLWOH�ZRXOG�EH�IDVWHU�:KLWHKHDG¶V�UHSRUW�UHÀHFWHG�WKDW��KDG�DWWHQGHG�WKH�

education program and 24 inspections had been completed. 7KHUH�ZHUH�QR�LQIRUPDO�KHDULQJV��WKXV�QR�¿QHV��&RPSODLQWV�handled were seven dealing with titles, seven with contracts, two with mechanical issues and two miscellaneous. There were no spot delivery complaints.

Applicants for a new license and dealers involved LQ�VLJQL¿FDQW�UXOH�YLRODWLRQV�DUH�UHTXLUHG�WR�DWWHQG�WKH�commission’s education program as a part of acquiring or maintaining a state license. The education sessions are being KHOG�DW�WKH�FRPPLVVLRQ�FRQIHUHQFH�URRP�DW��1:��LQ�2NODKRPD�&LW\�

Classes are held on Monday prior to the commission meeting on the second Tuesday of each month. The sessions UXQ�IURP��D�P��WR�DERXW�QRRQ�RU��S�P��<RX�DUH�DVNHG�WR�PDNH�reservations so staff can be prepared to accommodate you. Call WKH�FRPPLVVLRQ�DW��WR�PDNH�\RXU�UHVHUYDWLRQV��

BY ADR STAFF

REPORT OF CEASE AND DESIST LETTERS ISSUEDThese letters direct the individual or business to cease violations of laws or rules

ENTITY TYPE OF VIOLATION CITY DATE ISSUED James E. Gaile Used Dealer Oklahoma City 09/17/2012Marv Jackson Used Dealer Midwest City 09/06/2012Frank Luster Used Dealer Oklahoma City 09/06/2012Joe Lyons Dismantler Rush Springs 09/13/2012Charlie Moss Rebuilder Wilson 09/13/2012Charlie Moss Used Dealer Wilson 09/13/2012Joseph D. Ring Used Dealer Stillwater 09/27/2012Eldon Stail Rebuilder Asher 09/06/2012Eldon Stail Used Dealer Asher 09/06/2012

CLOSED COMPLAINT REPORTThese are complaints that have been resolved one way or another. They do not necessarily reflect any wrongdoing on the part of dealers.

ENTITY CITY COMPLAINT RESOLVEDBinger Auto Sales Binger Contract 09/06/2012%RE�0RRUH�'RGJH�&KU\�-HHS�� 2NODKRPD�&LW\� 7LWOH� ��Brad Fenton Motors of Ardmore, Inc. Ardmore Title 09/11/2012Car Mart of Owasso Owasso Title 09/27/2012Cash Car Depot Oklahoma City Title 09/24/2012Edmund Hyundai Edmond Contract 09/21/2012Eldorado Motors, LLC #2 Tulsa Contract 09/17/2012Green Country Auto Plex , LLC Tulsa Contract 09/17/2012Import Motors Bethany Mechanical 09/28/2012Joe Cooper Ford of Tulsa, LLC Tulsa Contract 09/16/2012Lindsey Street Motors Norman Contract 09/10/2012Marie’s Route 66 Motor Company Tulsa Contract 09/17/2012Midwest Muscle & Elite Motorsports, LLC Moore Title 09/25/2012Motor Fair, LLC Oklahoma City Miscellaneous 09/04/2012Nexxus Remarketing Stillwater Title 09/11/2012Triple T Motors, LLC Oklahoma City Title 09/28/2012Turk Auto Sales, LLC Oklahoma City Mechanical 09/12/20129DQ]DQW�0RWRU�&RPSDQ\��,QF�� %HWKDQ\� 0LVFHOODQHRXV� ��

LICENSES SUSPENDED OR ABANDONEDIn other action, the following licenses were suspended or abandoned:

BUSINESS NAME LOT CITY REASONCDT Auto Auctions Muskogee Out of business; phone disconnectedDon Young Wholesale Trucks Washington Out of business per investigator’s report(OLWH�9HKLFOH�6DOHV� 6NLDWRRN� 2XW�RI�EXVLQHVV��SKRQH�QRW�LQ�VHUYLFHEmpire Motorsports Yukon Out of business; applied for retail licenseG & H Auto Parts Del City Out of business; phone not in serviceG & H Used Cars Del City Out of business; phone not in serviceInternational Car Corporation Stillwater Out of business per investigator’s reportJ & J Auto Sales, Inc. #2 Sulpher Out of business per owner Shawn BurtonMeister Truck Sales Ponca City Out of business; closing0LQL�NDU� 2NODKRPD�&LW\� 2XW�RI�EXVLQHVV�SHU�RZQHU�-RKQ�)��3D\QHMomentum Chev. of Broken Arrow Broken Arrow Out of business; change of ownershipMomentum Honda Northwest Oklahoma City Out of business; change of ownershipMomentum Chevrolet of Tulsa Tulsa Out of business; change of ownershipMotorwerx, LLC Oklahoma City Out of business; applied for retail license5DSLG�$XWRV� 3DXOV�9DOOH\� 2XW�RI�EXVLQHVV��SKRQH�QRW�LQ�VHUYLFH6FKXO]H�8VHG�&DUV� &ODUHPRUH� 2XW�RI�EXVLQHVV��SKRQH�GLVFRQQHFWHGToluca Auto Sales Oklahoma City Out of business per investigator’s report

O I A DA R E P O R T

Used Motor Vehicle and Parts Commission Report

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Records Retention GuidelinesThe beginning of the tax year usually

triggers a mad scramble to locate all of the necessary documents to prepare tax returns.

If you retain absolutely all of your records, you might be faced with the monumental task of sorting through the mountains of paper to locate the documents you actually need. One occasionally needs to clear away unused items, but tossing the wrong paper or deleting a necessary data file can have dire consequences, especially for a business.

When disposing of documents, you might want to consider shredding.

When you establish a records retention policy, some things to consider are:• Is there a legal requirement for keeping the document?

• Could the item serve any other purpose after it is used for its intended purpose? Would the documents be needed to support or oppose a position in an investigation or litigation? Could the document support a tax deduction?

•What is the consequence of not being able to locate the document?•Can the item be reliably reproduced if needed?•How long should documents be retained?•Keep any document related to pending or threatened litigation until the matter is settled and all appeals are exhausted.

Here are some general rules for how long to keep other records:

One year: Duplicate deposit slips, I-9s (after termination), receiving sheets.

Twenty-five months: Customers’ credit applications that were denied.

Three years: General correspondence, employment applications, expired insurance policies, petty cash vouchers.

Four years: Freight bills; inventory lists; invoices; bank deposit slips, reconciliations, statements, canceled checks; contracts – purchase and sales; depreciation records (retention begins after expiration); employee expense reports.

Five years: OSHA logs; photostat, carbon or other facsimile copies of each odometer mileage statement issued or received. Auction companies are required to keep records of the “most recent owner,” presumably the seller, as well as the name of the buyer, the vehicle identification number and the

odometer reading on the date the auction company took possession of the motor vehicle.

Six years: Employee payroll records (W-2, W-4, annual earnings records – retention begins after termination).

Seven years: Accident reports; general ledger; accounts payable and receivable ledgers; bank statements; checks (most); contracts and leases (expired); electronic funds transfer documents; employee personnel records (after termination); expense analyses; product, materials and supplies inventories; notes receivable ledgers; purchase orders and time books and cards.

Eleven years: Worker’s compensation documents.

Twenty years: Real estate records.Indefinitely: Accountants’ audit

reports; cash books; account charts; construction documents; important correspondence; deeds, mortgages, bills of sale and titles; depreciation schedules; financial statements;

general ledgers; journals; licenses; loan documents; minute books of directors and stockholders, including by-laws and charter; property appraisals; articles of incorporation; by-laws; tax returns and worksheets and trademark registrations.

Employee records should be retained for the length of the employee’s tenure with the company, plus at least the statute of limitations period. Employment records may contain sensitive information and should be stored in a secure area. Immigration and Naturalization Services’ I-9 forms should be kept separate from active employee files to avoid discrimination claims.

A copy of each version of employment and training manuals should be kept with the dates that version was in use.

Additional information regarding business records retention can be found at www.irs.gov/pub/irs-pdf/p583.pdf. Personal records retention information can be located at www.irs.gov/pub/irs-pdf/p552.pdf.

M O R E I N FO R M AT I O N AVA I L A B L E AT W W W. I R S . G OV / P U B / I R S - P D F / P 5 8 3 . P D F A N D W W W. I R S . G OV / P U B / I R S - P D F / P 5 5 2 . P D F

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O I A DA R E S O U RC E S

JANUARYCAFE Standards UpdateDealer Insurance ChecklistOTC Used Vehicle Registration and Licensing

FEBRUARYCredit Sale vs. LoanTulsa Dealership Tied to Terrorist GroupIRS Fraud AlertIRS News For Small BusinessUsed Vehicle Limited WarrantyNLRB Employee Rights Notice PostingAre You Supporting Your Trade Association?Precomputed vs. Simple Interest AccountsVehicle Rollover SafetyReport of Vehicles Parked or Stored Over 30 Days (Towing/Storage Companies)

MARCHEmissions System Disclosure ReminderIncompatible or Incomplete Forms Can Be a ProblemAir Bags Stolen or Deployed? Disclosure Required.Holder In Due Course RuleNeed Help? Join OIADANew Dollar Threshold For TILA/Reg Z CFPB In ActionThe Test Drive Agreement FormReminders from the Motor Vehicle DivisionLegislative Issue – Title HoldingBest and Worst Sellers in 2011Oklahoma MVC Requests TrueCar/Zag Suspend Business

APRILAre Your Cash Reporting Policies in Compliance?DAA/OKC Secures US Govt ContractFTC Investigating Background Screening MarketersSome Insurance PointersFour Ways to Get IRS FormsEmployee Veteran Tax Credits OIADA Legislation Tracking ReportNew Spot Delivery Forms AvailableNHTSA Expanding Airbag InvestigationUMVPC Complaint FormThe Used Car Rule FAQsThe Buyers Guide – An OverviewThe Buyers Guide Warranty SectionDaniel Derr, OIADA Quality Dealer of the Year 2012

MAYCFPB Consumer Complaint ProcessCFPB Director Stresses Pledge to Reform Debt CollectionCFPB Malicious Email AlertFBI Investigating Online Vehicle Purchase ScamFTC Stops Deceptive Car Dealership AdsAre Vehicle Service Warranties Insurance? OIADA Legislation Tracking ReportOTC MVD Lien Release LetterHelp Fight Curbstoning

JUNECFPB and Lending DiscriminationDealership Files BankruptcyOklahoma Used Dealer Forms RequirementsContinued Rise in Used Vehicle ExportsAuto Loan Payoff Schemes Stopped by FTCOTC Notice – Reassignments Completed in Non-Notary States

JULYUMV&PC Assesses FinesNMVTIS Reports Now Required in CaliforniaCFPB Investigating BHPH DealerCNG Vehicle Initiative in OklahomaDealers Dodge a BulletConsumers’ Rights Under the Holder RuleStates’ Attorneys General Pursue DealershipsVehicles and Safety Defects – a WarningOIADA Legislation Tracking Report

AUGUSTFBI Indicts Oklahoma Car Dealer for Bank FraudFTC Charges Auto Dealer for Privacy Data ViolationsPeer-To-Peer Software Allows Dealership’s Data BreachDealership’s Alleged Privacy Notice ViolationsOverview of the Safeguards RuleFTC Auto Related Complaints StatisticsOTC MVD Reassignment of Out of State TitlesWatch Your Advertising – The Commission IsOIADA Legislation Tracking Report – Final ReportAlert – BHPH Dealers Defrauded – Title 42 Issue

SEPTEMBERCFPB Expands Supervisory ActivitiesCredit Reports: What Information Providers Need to KnowIRS Form 8300 ReportingRisk Based Pricing Notices in Third-Party Financing TransactionsVolvo to Pay $1.5 Million Fine

OCTOBERDealer Regulatory Compliance ReviewInventory – What Are We To Do (by Jim Holman, The Car Store)New Hire Reporting RequirementsOK DOCC Dollar UpdatesOIADA Scholarship RecipientsOklahoma Dealership Prevails in Title 42 Case

NOVEMBERAlert – Missing Arizona TitlesFinal CAFE Standards for MY 2025Ending Deceptive Marketing Practices – CFPB EffortDept of Consumer Credit Investigating BHPH DealerOklahoma Company Challenges Health Care MandateMVD ‘Vehicle Information Request’ Form Revised

DECEMBERAnnual RemindersCNG Vehicles Get a BoostComputer DisposalDisposing of Consumer InformationFinCEN Announces Electronic Filing for Form 83002013 Tax Bene!t In"ation AdjustmentsIRS Reviewing Employee Tool PlansNHTSA Counterfeit Airbag WarningDealership Group to Pay $510,000Oklahoma Employment Labor Law PostersMiscellaneous Records RetentionClose Out the Year With a Data Safeguards Plan

INDEX OF 2012 DEALERS RESOURCE ARTICLES FROM OIADA/ADR STAFF

Buyers, sellers and consigners across the independent auto auction industry FDQ�QRZ�VHDPOHVVO\�XVH�6KLS&DUV1RZ�IURP�$XFWLRQ�(GJH�,QF�¶V�DXFWLRQ�management platform, allowing customers to ship multiple vehicles to multiple destinations and take advantage of built-in volume pricing.6KLS&DUV1RZ�LV�SDUW�RI�8QLRQ�3DFL¿F��

which transports approximately one out of three new cars sold in the U.S. :LWK�PRUH�WKDQ��TXDOLW\�WUXFNLQJ�companies under contract and strategic WLHV�ZLWK�PDMRU�UDLOURDGV��6KLS&DUV1RZ�offers nationwide, door-to-door rail and direct truck service at competitive SULFLQJ��6KLS&DUV1RZ�SURYLGHV�$XFWLRQ�(GJH�PHPEHUV�ZLWK�WKH�FDSDELOLW\�to transport cars safely and securely, VXSSRUWHG�E\��FXVWRPHU�VHUYLFH�

“We want to make it as easy and DV�FRVW�HI¿FLHQW�DV�SRVVLEOH�IRU�RXU�$XFWLRQ�(GJH�FXVWRPHUV�WR�PDQDJH�shipping and delivery of their sales and SXUFKDVHV�´�$XFWLRQ�(GJH�VHQLRU�YLFH�president Scott Finkle said. “Dealers DQG�FRQVLJQHUV�ZLWK�$XFWLRQ$&&(66�IDs will be able to set up a 6KLS&DUV1RZ�DFFRXQW�ZLWK�D�FRXSOH�of clicks and start shipping vehicles LPPHGLDWHO\�´

For more information, visit www.VKLSFDUVQRZ�FRP�RU�FDOO��$XFWLRQ�(GJH��D�QDWLRQDO�UHPDUNHWLQJ�

platform that powers more than ��LQGHSHQGHQW�DXWR�DXFWLRQV�LQ�1RUWK�$PHULFD��DOVR�LQWURGXFHG�D�new function that allows key auction employees to view credit lines and available credit for dealers with Automotive Finance Corporation (AFC) ÀRRUSODQV��HQDEOLQJ�DXFWLRQ�SHUVRQQHO�to help the dealer complete purchases DQG�TXLFNO\�ÀRRUSODQ�WKHLU�YHKLFOHV�through AFC.

FOR MORE INFORMATION, VISIT WWW.AUCTIONEDGE.COM.


Auction Edge Integrates with ShipCarsNow, AFC

OK_1212.indd 28 11/19/12 11:00 AM


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D O N ’ T B E T H E O N E O N T H E S I D E L I N E WAT C H I N G E V E RYO N E PA S S YO U BY

SUBPRIME IS ON THE RISE$FFRUGLQJ�WR�([SHULDQ��FDU�ORDQ�GHOLQTXHQFLHV�IHOO�LQ�WKH�¿UVW�TXDUWHU�RI��IRU�WKH�¿UVW�WLPH�LQ�WKUHH�\HDUV��'HIDXOW�UDWHV�GURSSHG�E\�

��SHUFHQW�IURP�WKH�SUHYLRXV�\HDU��PHDQLQJ�EDQNV�DUH�IHHOLQJ�PRUH�FRQ¿GHQW�LQ�OHQGLQJ�WR�PRUH�VXESULPH�FXVWRPHUV�The banks also have more money to lend, so they are more willing to take risks and lend to people with less than perfect credit. That’s good news for independent dealers because they have been working with people with bad credit and subprime car loans for

many years.Since the credit crisis, millions of people who used to have good credit now fall into the subprime category. While that’s a discouraging

look at the economic situation, it is encouraging for the subprime market.Some reasons your car dealership might not be getting more subprime car loans:��0RWLYDWHG�EX\HUV�DUH�JRLQJ�ZLWK�WKH�¿UVW�SHUVRQ�ZKR�FDOOV��6DOHV�SHRSOH�DUH�QRW�ZRUNLQJ�WKH�VSHFLDO�¿QDQFH�OHDGV�TXLFNO\�DQG�GLOLJHQWO\�HQRXJK�� Customers are discouraged about having to provide more information than they are used to.��6SHFLDO�¿QDQFH�PDQDJHUV�DUH�XQZLOOLQJ�WR�FKDQJH�ZLWK�WKH�WLPHV�DQG�DUH�FRPSODFHQW�ZLWK�WKH�VWDWXV�TXR�� Dealerships have never worked with subprime customers before.��1RW�NQRZLQJ�WKDW�WKH�VXESULPH�PDUNHW�DFFRXQWV�IRU�PRUH�WKDQ�D�WKLUG�RI�DOO�DXWR�ORDQV�DQG�LV�LQFUHDVLQJ�HYHU\�PRQWK��0DQDJHUV�IHHO�ROG�VFKRRO�DGYHUWLVLQJ�LV�HQRXJK�DQG�GRQ¶W�UHDOL]H�WKH\�FRXOG�LPSURYH�WKHLU�VDOHV�E\�¿YH�WR��GHDOV�SHU�PRQWK�Some reasons to jump into subprime:��,QFUHDVH�WUDI¿F�±�DQ�H[WUD��XSV��,QFUHDVH�VDOHV�±�DQ�H[WUD��GHDOV��,QFUHDVH�JURVV�±�DQ�H[WUD��WR��SHU�PRQWK�6XESULPH�LV�RQ�WKH�ULVH��ZKLFK�FUHDWHV�QHZ�SUR¿W�DYHQXHV�IRU�VPDUW�FDU�GHDOHUV��0RWLYDWHG�VXESULPH�FDU�EX\HUV�DUH�LQ�QHHG�RI�

automobiles and only need to be educated on their current situation and what they can do to improve.An auto loan for bad credit is the right path to take to improve their credit situation. Be the one who helps improve our national

economic crisis. Don’t be the one on the sideline watching everyone pass you by.

BY DANI LUNSFORD NATIONAL SALES AND MARKETING EXECUTIVE WITH SHOWCASE PUBLICATIONS, INC. SHE HAS BEEN IN THE RETAIL AUTOMOTIVE INDUSTRY FOR 14 YEARS, WORKING IN SALES, SERVICE, E-COMMERCE MANAGEMENT AND AS A CONSULTANT TO IT COMPANIES AND DEALER GROUPS. SHE CAN BE REACHED AT [email protected].

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Join OIADA online at http://www.e-oiada.com/join

OIADA Can Help MakeYour Path

Certain.Oklahoma Independent Automobile

Dealers Association

For $295 You Get Membership In Both OIADA and NIADAPlus All Of The Following Benefits And Even More That Are Not Listed!

Programs for Extra Profit� Access to Insured Warranty & Service Agreements� How to Structure a Related Finance Company� Networking Opportunities With Other Dealers

Programs to Help Keep Profit� NADA Guide Books – single copy or subscription�� Black Book Guide Books – single copy or subscription� Dealer Bonds - Salesmen’s Bonds� Discount on complete line of State approved Business Forms� Discount on Dealer supplies National Dealer Network Skip Tracing Contacts

PublicPublications� OIADA Magazine/Newsletter� 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 Monthly Magazine� NIADA Annual Buyer’s Guide

Professional Development� Dealer Educational Seminars� Certified Master Dealer Program� Regional Professional Development Compliance Seminars� Free Access to NIADA.tv Training at Your Business � Access to IndependentDealer.com where dealers go for answers answers� NIADA Membership and Window Decal� OIADA “Symbol of Integrity” Logo, Window Decal and Membership Plaque� NIADA Annual Convention and Trade Show� Individual Assistance by phone� Code of Ethics

RRepresentation� 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� Used Motor Vehicle and Parts Commission Liaison�� Oklahoma Tax Commission Liaison� Oklahoma Department of Consumer Credit Liaison� Full Time Professional Staff to assist you when problems arise

Members Can Also Sign Up For

Automotive Dealers Rewards From

Automotive Dealers Resource Of Oklahoma

and Earn Money Saving Coupons For

Their Future Purchases.

Visit http://rewards.buyadr.com/Automotive Dealers Rewards is open to Members and Non-Members Who Purchase Automotive Dealers Rewards is open to Members and Non-Members Who Purchase

From ADR of Oklahoma

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*RYHUQRUV�0DU\�)DOOLQ�RI�2NODKRPD�DQG�-RKQ�+LFNHQORRSHU�RI�&RORUDGR�recently announced the preliminary results of a multi-state solicitation designed to encourage auto manufacturers in the U.S. to develop more functional and affordable FRPSUHVVHG�QDWXUDO�JDV��&1*��YHKLFOHV�)DOOLQ�DQG�+LFNHQORRSHU�DUH�OHDGLQJ�D�

bipartisan group of 22 states seeking to XVH�&1*�YHKLFOHV�LQ�WKHLU�VWDWH�ÀHHWV��7KH�governors began the project one year ago DW�WKH�*RYHUQRU¶V�(QHUJ\�&RQIHUHQFH�LQ�2NODKRPD�&LW\�6LQFH�WKHQ��)DOOLQ�DQG�+LFNHQORRSHU�KDYH�

petitioned other states and governors, met with automobile manufacturers in Detroit and issued a request for proposal soliciting ELGV�IRU�PRUH�DIIRUGDEOH�&1*�YHKLFOHV�IRU�XVH�LQ�VWDWH�ÀHHWV��$IWHU�UHFHLYLQJ�WKH�VXSSRUW�RI��RWKHU�VWDWHV��WKH\�DQQRXQFHG�the preliminary results of the initiative at D�FRQIHUHQFH�2FW��ZKHQ�)DOOLQ�FDOOHG�LW�

³HQRUPRXVO\�VXFFHVVIXO�´“We asked auto manufacturers

to develop products that were more DIIRUGDEOH�DQG�IXQFWLRQDO�´�)DOOLQ�VDLG��“With the combined purchasing power of our 22 states, we successfully provided the incentive to do so. States will now have the incentive and ability to begin converting WKHLU�ÀHHWV�WR�&1*�ZKLOH�VDYLQJ�PLOOLRQV�RI�GROODUV�LQ�WD[SD\HU�PRQH\�´0RUH�WKDQ��ELGV�ZHUH�VXEPLWWHG�

by dealerships in 28 states throughout the nation, representing Ford, Chrysler, *HQHUDO�0RWRUV�DQG�+RQGD�,Q�2NODKRPD��DZDUGV�JLYHQ�WKURXJK�WKH�

multi-state RFP will result in approximate VDYLQJV�RI��SHUFHQW�LQ�FRVW��DERXW��RQ�WKUHH�TXDUWHU�WRQ�&1*�SLFNXSV�WUXFNV��SHUFHQW��RQ�&1*�FRPSDFW�VHGDQV��SHUFHQW��RQ�&1*�WUDQVLW�FDUJR�YDQV��SHUFHQW��RQ�WKUHH�TXDUWHU�WRQ�&1*�YDQV�DQG��SHUFHQW��RQ�RQH�WRQ�&1*�vans.

States will now also have the opportunity to purchase at least one model truck with improvements in functionality. A three-quarter-ton pickup with a fuel tank underneath the vehicle, as opposed to in the rear, will be available for state purchase. Moving the tank from the back of the truck to underneath adds VLJQL¿FDQW�VWRUDJH�VSDFH�%HFDXVH�&1*�YHKLFOHV�UXQ�RQ�FKHDSHU�

fuel than gasoline-powered vehicles,


BASE PRICES OF SELECT VEHICLES AVAILABLE UNDER THE MULTI-STATE RFP IN OKLAHOMA.HONDA CIVIC NG (BASE MODEL) $24,904DODGE RAM 2500 CREW CAB 4X4 (BI-FUEL) $29,993FORD F250 4WD CREW CAB (BI-FUEL) $35,888FORD F250 CREW CAB (DEDICATED FUEL) $38,198CHEVROLET #-TON EXTENDED CAB 4WD $34,562FORD F350 4WD REGULAR CAB (BI-FUEL) $34,047FORD F350 4WD EXT. CAB (DEDICATED FUEL) $36,348

CNG VEHICLES GET A BOOST

S

WKH\�DUH�H[SHFWHG�WR�SURGXFH�VLJQL¿FDQW�WD[SD\HU�VDYLQJV��$IWHU�UHFRXSLQJ�&1*�V\VWHP�FRVWV��D�WKUHH�TXDUWHU�WRQ�&1*�pickup truck, for example, still costs about ��OHVV�WR�RSHUDWH�RYHU�LWV�OLIH�F\FOH�compared to its gasoline counterpart.

Both governors said they hope to add awards for four-door sedans and half-ton pickup trucks, the two most popular models in the private sector.+LFNHQORRSHU�VDLG�WKH�DZDUG�ZLOO�KHOS�

PRYH�&1*�LQWR�WKH�PDUNHWSODFH��ERWK�LQ�and outside of government.

“This announcement represents D�PDMRU�VXFFHVV�IRU�&1*�DQG��HYHQ�PRUH�LPSRUWDQWO\��IRU�RXU�HFRQRP\�´�+LFNHQORRSHU�VDLG��³:H�EHOLHYH�WKLV�LV�the start of a national movement to add much-needed fuel diversity to our nation’s transportation sector while at the same time creating jobs and helping to grow ORFDO�HFRQRPLHV�´)DOOLQ�VDLG�WKH�PRYHPHQW�WR�&1*�

vehicles will help the environment and boost the economy.³&1*�YHKLFOHV�UHSUHVHQW�D�NH\�

component of the movement toward $PHULFDQ�HQHUJ\�LQGHSHQGHQFH�´�VKH�VDLG��³&RQYHUWLQJ�VWDWH�ÀHHWV�WR�&1*�SURPRWHV�the use of a cleaner-burning, more affordable fuel that is made right here in the United States and supports the creation RI�$PHULFDQ�MREV�´

BY ADR STAFF

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oiada dealers resource dec 2012

Documents

e o i

e r s r e s o u r c

kzgr9gbzzhfart director

c o mclose

holiday season

consultantmike morgan

programmersteve morgan

odell morgan