WANADA Bulletin # 19-10 May 14, 2010

Senate Holds Off on Brownback Until Next Week NADA sees Delay as “11th hour Momentum” to Keep Dealer F&I out of Finance Reform

The vote on the Brownback amendment in the U.S. Senate that was expected this week

has been put off until next week, which NADA’s Legislative Office sees as a positive

development and an indicator that dealers nationwide are reaching senators in the “eleventh

hour” with the message that the Finance Reform bill in the Senate needs to exclude dealers as

Brownback prescribes. NADA members are making headway on Brownback, despite formidable

opposition such as that put forth by President Obama and the chairman of the Senate Banking

Committee, Christopher Dodd (D-Conn.). An important part of the dealer momentum on passing

Brownback and the effort to exclude dealers from Finance Reform is the bipartisan support from

Republicans and moderate Democrats that is surfacing in the Senate, as it did successfully in the

House version of the legislation that excluded dealers.

Senate Democrats met Thursday to discuss the status of the Finance Reform legislation and

strategize an endgame for the bill. To no one’s surprise, Senate Majority Leader Harry Reid (D-

Nev.) wants to move quickly to final action on the bill. And for his part, Sen. Dodd has said he

will call for a cloture vote on the Finance Reform to prevent any further amendments, such as

Brownback.

Both Republicans and Democrats have been reticent to cut off the amendment process, however,

because many are eager to add their own ideas to the politically popular overhaul of the financial

system.

NADA and dealer associations across the country, including WANADA, have been in continual

contact the Senate offices making this same point as well as countering Obama’s assertions that

dealers should not be excluded. (Please click here for the WANADA Special Bulletin sent to all

members on Wednesday May 12)

Headlines… Senate Holds Off on Brownback Until Next Week A Fun Day on the Links at the 2010 WANADA Open FTC’s Red Flag Rule Begins June 1 – And this Time They Mean it! Fuel Economy Guide Display Requirement 2010 NHTSA Insurance Cost Booklet Display Requirement Grand Prix Auto Racing Coming to Baltimore in 2011 An historical perspective on persons who immigrate to the U.S.

WANADA Member Briefing, Chrysler, GM & the

Industry Turmoil

06/08/2009

WANADA Bulletin # 19-10 May 14, 2010 Page 2

The NADA Chairman’s Perspective

In an open letter this week to all senators, NADA chairman Ed Tonkin had this to say:

“The White House is continuing to issue misleading statements in its efforts to get auto

dealers wrongly included in Wall Street Reform legislation.

“The enormous set of consumer protection laws that currently governs dealers will be preserved

under the Brownback amendment. Despite what the Administration suggests, unfair and

deceptive practices are currently illegal and would remain so if the Brownback amendment is

passed. Moreover, all of the laws that dealers are currently subject to (e.g., Equal Credit

Opportunity Act, Truth In Lending Act, Federal Consumer Leasing Act, Fair Credit Reporting

Act, Gramm Leach Bliley Act, and Federal Trade Commission Act) would still exist and apply to

dealers if the Brownback Amendment is approved.

“At the core of the Administration’s attack on dealer-assisted financing is the assertion that

dealers routinely place consumers in ‘loans with higher interest rates than the borrower

qualifies for.’ This statement is patently false. What’s worse, it manifests either an inability or a

refusal on the part of the Administration to recognize how the market, which they claim needs

more regulations, actually works.

“Dealer-assisted financing regularly affords consumers more favorable terms than those

available through other sources. Yet, the Administration seeks to subject dealers to an agency

which is being directed to create an uneven playing field by declaring off-limits for dealers

practices that will be preserved for community banks, credit unions and other direct lenders.

“For the president, to malign an entire industry made up of Main Street businesses run by

dedicated men and women and their employees is shocking. We urge senators to resist this latest

round of scare tactics and vote in favor of the Brownback amendment to preserve affordable

auto finance options for consumers."

Sincerely yours,

Ed Tonkin

Chairman of NADA

11th Hour Talking Points for Dealers on Brownback

WANADA members are urged to join fellow dealers nationwide in keeping the pressure on

senators! What follows are talking points in the 11th

hour for dealers to press in continuing to

urge senators to support the Brownback Amendment:

1. Dealers don’t extend credit to car buyers and don’t belong in Finance Reform

Legislation designed to regulate those that do!

2. Dealers aren’t banks and dealers aren’t finance companies. Dealers sell and service

vehicles, providing an important value-added benefit to car buyers by arranging

auto loans where the consumer routinely gets the best credit terms.

3. The overwhelming majority of car buyers reap real benefits when the dealer they

buy their vehicle from also arranges the loan.

WANADA Bulletin # 19-10 May 14, 2010 Page 3

4. There are very few instances of customer dissatisfaction with dealers in the loan

arrangement process from car buyers at large, let alone service men and women as

some have alleged. When consumer complaints arise there are already a wide array

of federal and state consumer protection agencies that are readily available to

intervene on the consumer’s behalf.

To contact Maryland or Virginia senators electronically with follow-up or first time

communication on the Brownback amendment, refer to the Finance Reform legislation (S.3217)

and use the links below.

In Maryland, contact,

Sen. Ben Cardin (D-MD) http://cardin.senate.gov/contact/email.cfm

Sen. Barbara Mikulski (D-MD) http://mikulski.senate.gov/Contact/contact.cfm

In Virginia, contact,

Sen. Mark Warner (D-VA) http://warner.senate.gov/public/index.cfm?p=Contact

Sen. Jim Webb (D-VA) http://webb.senate.gov/contact.cfm

To register support for the Brownback amendment by phone, call your senator’s office via the

U.S. Capitol switchboard at (202) 225-3121.

Along with the dealer principal, key staff and employees should contact their senators as well.

Keeping the pressure on members of the Senate is important if we are to keep dealership F&I

operations out of the regulatory scheme envisioned in the Finance Reform Legislation.

Keep it Up!

A Fun Day on the Links at the 2010 WANADA Open VA Takes the Honors in the First MD/VA WANADA Cup Match

As has been the case for as long as anyone can remember, the day

dawned sunny and bright for The WANADA Open on Monday, May 10

and association members and guests enjoyed a spectacular day at

Lakewood Country Club in Rockville, Md. Over 112 golfers turned out

for the WANADA Open and were joined by additional members and

guests for the evening reception and dinner. Mixed into the day of

competition and camaraderie was the first ever WANADA Cup Match,

pitting dealer foursomes from Maryland and Virginia against one another

in what was billed as the “Match Between the States.”

“It’s pretty hard to complain about weather like this, a course like this,

competition like this and a fun day like this has been,” said Tony Santy of

Chesapeake Petroleum chairman of the WANADA Special Events Committee which organized

the Open. “We are very grateful to all our sponsors for making it possible,” he said.

WANADA Bulletin # 19-10 May 14, 2010 Page 4

“The Match Between the States” From the left, the Virginia team of Andy Heye, Chip Lindsay, Don

Bavely and Burke O’Malley and the Maryland team of Chip Doetsch, Rick Kelley, Bill Andrakakas and Vince Sheehy

The WANADA Cup

In the premier event of the

day, the WANADA Cup

team from Virginia,

composed of Chip Lindsay

of Lindsay Automotive

(Captain), Andy Heye of

Ourisman Chrysler, Dodge

Jeep, Burke O’Malley of

Sterling Chevrolet and Don

Bavely of Rosenthal

Automotive turned in a

sparkling 63, playing from

the championship tees, to

defeat the team from

Maryland composed of

Chip Doetsch of Apple

Ford, LM (Captain), Rick

Kelley of King Auto

Group, Bill Andrakakas of

Hersons Honda and Vince Sheehy of Sheehy Auto Stores, which shot 69. The winners will have

their names inscribed on the WANADA Cup plaque that will hang at association headquarters

and each player got an individual trophy to recognize their achievement.

General Tournament Winners!

Winning Team Shot 58

The winning foursome (pictured left,

from the left) is Rex Close from

Springfield Toyota, and Dick West and

Jeff Duce of Weaver Brothers Insurance.

(Not pictured is Mike Bennett from

Ourisman of Virginia)

Second Place Team Shot 60

The Runner-up Foursome (pictured right, from the

left) is Bob Reeser and his teammates Mike Bastain,

Chase Automotive Finance, Fred Cheyssari,

International Motors and David Kelly, Koons

Nissan.

WANADA Bulletin # 19-10 May 14, 2010 Page 5

Specialty Golf Event Winners

The Longest Drive

Dennis Stough, SunTrust and David Kelly, Koons Nissan

Closest to the pin

Jay Cunningham, Sheehy Auto Stores and Jack Blush of Lindsay Lexus of Alexandria

Ticket Contest Winners

Callaway Diablo Driver

Chip Doetsch, Apple Ford, LM

Ping Golf Bag

Mike Sundergill, B&R Associates

Golf Massage

Burke O’Malley, Sterling Chevrolet

Taylor Made R9 Driver

Jeff Duce, Weaver Brothers Insurance

Assoc.

Wine Basket

Edward Lawrence, M&T Bank

Scotty Cameron Putter

Jay Cunningham, Sheehy Auto Stores

Taylor Made Rescue Club

Jim Stolhman, Mercedes Benz of Alexandria

Titliest Vokey Golf Wedge

Gary Little, American Service Center

Opti Logic

Rex Close, Springfield Toyota

Maxfli Golf Bag

Dave White, DARCARS

50/50 Drawing ($735)

Earl Seboda, Congressional Motors

Grand Prizes

Flip Video

John Pesavento, PNC Bank

Apple iTouch

Pete Kolocunis, Leesburg Toyota

Panasonic 42” Plasma Digital HDTV

Nadar Darvish, DARCARS Waldorf

Samsung 50” Plasma Digital HDTV

Jay Cunningham, Sheehy Auto Stores

The “Awesome foursome” (from the left) Jim Tortorella, C-B-M, Corky Crovato, BG Products, Sam Weaver, Chevy Chase Cars, and John Bowes, Chevy Chase Cars

WANADA Bulletin # 19-10 May 14, 2010 Page 6

WANADA chairman George Doetsch with son Chip Doetsch of Apple Ford/LM on the putting green

First Annual WANADA Cup Winners

The Virginia Foursome

Open chairman Tony Santy (L) with Virginia winners Andy Heye, Ourisman C/D/J, Don Bavely, Rosenthal Companies, Chip Lindsay, Lindsay Automotive and Burke O’Malley,

Sterling Chevrolet

WANADA Bulletin # 19-10 May 14, 2010 Page 7

“Thank You” to our WANADA Open Partners & Sponsors

Things like the WANADA Open come together and go off as successfully as they do because of

a carefully formulated and executed plan organized each year by the Special Events Committee.

In addition to Chairman Tony Santy of Chesapeake Petroleum, committee members include Bob

Hydorn of Fitzgerald Auto Malls, Tom Parsons of DARCARS, Bob Reeser of Chase Automotive

Finance and Sam Weaver of Chevy Chase Automotive. The Open goes from good to great with

the generous support of sponsor organizations, many of which are part of WANADA’s Kindred

Line, all of which successfully service the Washington area new automobile dealer community.

In all, there were 32 this year whose sponsorships enhanced events and provided fabulous prizes.

Activities and Evening Sponsors

Dinner – Washington Post Media

Cocktail Reception – Comcast Spotlight, Crumback

& Associates, LLC

Lunch – Chesapeake Petroleum, DentaQuest,

SunTrust Bank, Unicare Life & Health

Golf Carts –CARFAX

Golf Balls & Tees – AutoTrader.com

Hole-in-One Sponsorship – $10,000 Prize – Kaiser

Permanente

Hole-in-one Sponsorship – 50” Plasma TV prize –

Morgan Stanley Smith Barney

Hole-in-one Sponsorship – Ping Woods and Bag

Prize – Injured Workers Insurance Fund

Hole-in-one Sponsorship – iPod Touch Prize – Helion Technologies

Driving Range – Councilor, Buchanan & Mitchell, PC

Putting Green – ABC 7/WJLA-TV

Bag Drop – M&T Bank

Beverage Stations – BG Products, Charapp &

Weiss, LLP

Sign Sponsor – Hargrove Decorators.

Hole Sponsors

ADESA Auctions

AutoTrader.com

Automotive Essentials

CARFAX

Comcast Spotlight

Crumback & Associates, LLC

Group Benefit Services

Hamilton & Hamilton, LLP

Hargrove, Inc.

JM&A Group

PNC Bank

Pomerance & Associates

Washington Post Media

Yoffe Exposition Services

Zurich Insurance

Grand Prizes

Platinum – The Washington Auto Show

Gold – WANADA Automobile Dealer Education Institute (ADEI)

Silver – WANADA Insurance Brokerage & Trust

WANADA Bulletin # 19-10 May 14, 2010 Page 8

The behind the scenes component of any successful WANADA Open are the imaginative and

talented association staff leaders “who keep the train running on time,” according to WANADA

president Gerard Murphy. This year, WANADA’s Open Staff included Ralph Frisbee (golf

consultant), Kristina Henry, Trish Frisbee, Isabel Garcia and John O’Donnell.

***

WANADA greatly appreciates the assistance of everyone noted above for their significant

contributions to the 2010 WANADA Open!

See more of the 2010 WANADA Open, at www.photoresponse.com/wanadaopen

FTC’s Red Flag Rule Begins June 1 – And this Time They Mean it!

The Federal Trade Commission (FTC) Red Flag Rule, which

requires dealerships to implement comprehensive and dealership-specific

Identity Theft Prevention Plans (ITPP), is going into effect June 1.

Originally proposed to go into effect in November of 2008, the rule

requires that dealership identity theft programs are updated regularly to

thwart advances in electronic identity theft by criminal elements. Dealers

should ensure that if they are using a checklist form as part of their ITPP that they update the

checklist when reviewing and updating the ITPP as required by the FTC regulations.

Fuel Economy Guide Display Requirement

WANADA dealer members are reminded that federal law requires that at every

showroom location where brochures are displayed that describe the vehicles sold there, copies of

the EPA’s Federal Fuel Economy Guide, or a notice stating where the customer may access an

electronic version of the Guide, must also be in plain view and, if appropriate, accessible.

If you display a notice instead of the physical guide, the notice must contain the link:

http://fueleconomy.gov, and must allow the consumer to view and print the guide at no cost.

Hard copies of the guide can be ordered online at:

http://www.afdc.energy.gov/afdc/vehicles/fuel_economy_order_form.html.

2010 NHTSA Insurance Cost Booklet Display Requirement

In addition to the display of the EPA Fuel Economy Guide, dealers must also display

NHTSA’s “2010 Relative Collision Insurance Cost Information Booklet.” These booklets

compare differences in insurance costs for vehicles within a similar class on the basis of damage

susceptibility, and are updated each year. There is no online equivalent of the booklet, so dealers

should be sure to order a sufficient number to meet consumer demand. The booklets can be

ordered by calling (202) 366-0846, or downloaded and printed at:

http://www.nhtsa.gov/staticfiles/administration/program_development/2010_Comparison_Indusr

ance_Costs.pdf.

WANADA Bulletin # 19-10 May 14, 2010 Page 9

An historical perspective on persons who immigrate to the U.S.

In the first place, we should insist that if the immigrant who comes here in good faith becomes an

American and assimilates himself to us, he shall be treated on an exact equality with everyone else, for it

is an outrage to discriminate against any such man because of creed, or birthplace, or origin. But this is

predicated upon the person's becoming in every facet an American, and nothing but an American.

There can be no divided allegiance here. Any man who says he is an American, but something else also,

isn’t an American at all. We have room for but one flag, the American flag. We have room for but one

language here, and that is the English language. And we have room for but one sole loyalty and that is a

loyalty to the American people.

--Theodore Roosevelt, 1907

Grand Prix Auto Racing Coming to Baltimore in 2011

Maryland based WANADA dealer members may have a new marketing opportunity on

hand now that the Baltimore city government has approved a five-year agreement to bring Indy

Car Racing to the streets of that city beginning in 2011.

The Baltimore Grand Prix would be run on a 2.4 mile course around the Inner Harbor and

Camden Yards beginning in August 2011. It will be a three-day event that should draw more

than 100,000 people and generate $11 million in tax revenue for the city.

Baltimore would become one of 17 stops on the Indy Racing League circuit, which includes

cities in Brazil, Japan, Australia and Long Beach, Calif.

Baltimore Racing Development LLC, is organizing the event and the city is proving $7.75

million for road upgrades along the course and the pit stop area at Camden Yards.

Washington Area New Automobile Dealers Association