IIADA Street Smart

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

JUNE/JULY 2012

• PROVISIONING: NEW SCIENCE OF USED CARS• MOBILE ADS A MUST FOR DEALERS• THE CARLAWYER

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I O W A I N D E P E N D E N T A U T O M O B I L E D E A L E R S A S S O C I A T I O N

STREET SMART

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For further info please visit www.safercar.gov.

WHAT’S NEW

MAGAZINE CONTENTS

ADVERTISERS INDEX

06 Provisioning: Used Car Science08 The CarLawyer12 New NIADA CPO Program22 Compliance Overdrive

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATIONWWW.NIADA.COM • WWW.NIADA.TVNIADA HEADQUARTERS: 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR [email protected] Smart is published 6 times per year by the National Independent Automobile Dealers Association Services Cor-poration, 2521 Brown Blvd., Arlington, TX 76006-5203; phone 817-640-3838. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Street Smart or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identifica-tion as members of NIADA, does not constitute an edorse-ment of the products or services featured. Copyright© 2012 by NIADA Services, Inc. All rights reserved.STATE MAGAZINE MGR./SALES Troy Graff • [email protected] Andy Friedlander • [email protected]/PRODUCTION MGR. Christy Haynes • [email protected] Nieman Printing

OFFICEFOR INFORMATION ON HOW TO BECOME A MEMBER PLEASE CONTACT JUDY WILSON IIADA • 409 EAST MARKET • PANORA, IA 50216(641) 755-4177 • [email protected]

ADESA ...................................... Inside Front CoverAlly ......................................................................9AutoTrader.com .....................................Back CoverManheim.com ......................................................5 Manheim Minneapolis ................Inside Back CoverManheim Northstar ................... Inside Back CoverNIADA Certified ..................................................13Nowcom ..............................................................7QRP Central ......................................................11Voisys ...............................................................22

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BOARD OF DIRECTORSPRESIDENTDouglas Livy, Jr.Quality Motors of Ames, Ltd.705 S. Duff AvenueAmes, Iowa 50010Ph: 515-232-1780

CHAIRMAN OF THE BOARDLouise Cordes Jim Cordes Motors, Inc.104 E. Main St., P.O. Box 68New London, Iowa 52645 1-319-367-2271

VICE PRESIDENTDavid A. FarmerDavid A. Farmer, Inc.1613 FranklinCenter Point, Iowa 522131-319-849-2432

TREASURERJudy Wilson409 E. Market StreetP.O.Box 337 Panora, Ia. 50216Ph: 641-755-4177

REGIONAL REPRESENTATIVESMerrill HitchcockMerrill’s Garage317 N. 8th StreetWinterset, Ia. 50273Ph: 515-462-1683

Roger PoulsenThe Car Guys1301 S.W. 7th StreetAtlantic, Ia. 50022Ph: 712-243-6915

Robert PippertPippert Cars & Trucks2047 Highway T-47P.O. Box BGladbrook, Iowa 50635641-473-3121

Clay WinterboerCarroll Car Credit Co.409 E. 6th St., Box 805Carroll, Ia. 51401Ph: 712-792-0140

Jim HarbachJ’s Auto945 E. MainManchester, Ia. 52057Ph: 563-927-2811

Doug WilsonLake Country Auto409 East Market St.P.O. Box 341Panora, Iowa 50216641-755-3048

Linda KilgoreKilgore’s Enterprises Inc.501 E. TownlineCreston, IA 50801641-782-5512

Jeff SchneiderPocahontas Sales & Service205 E. Elm Ave. P.O. Box 66Pocahontas, IA 50574712-335-4470

Kim NelsonNelson Automotive LLC300 Sandpiper Court P.O. Box 466Polk City, IA 50226515-984-9600

Administrative Offices409 East Market StreetP.O. Box 337Panora, Iowa 50216Ph: 641-755-4177Fax: 641-755-3247Email: [email protected] Free: 866-962-9202

THIS TELEPHONE LINE RECEIVES NUMEROUS CALLS DURING THE DAY, SO AN EMAIL ADDRESS HAS BEEN ESTABLISHED WHERE QUESTIONS CAN BE SENT. THE EMAIL ADDRESS IS: [email protected].

The Motor Vehicle investigations information Line provides a way for the public to request information, ask questions, or file a complaint related to investigative duties and responsibilities.

This line is the primary point of contact to reach an investigator who is responsible for investigations in a specific area of the state of Iowa. To ensure accurate information is provided, the Motor Vehicle Investigations information line is answered by a motor vehicle enforcement investigator.

The hours of operation are Monday through Friday 8:30 a.m. to 3:30 p.m. As this line receives numerous calls during the day, please leave a message if the line is busy and your call will be returned promptly.

KNOW WHERE TO LOOK FOR RECALL INFORMATION ON VEHICLESVehicle dealers needing information on factory recalls can visit www.recalls.gov or find

manufacturer toll-free numbers by going to www.autopedia.com/html/HotLinks.html and making contact with the respective automaker.

Know what recalls are pending on vehicles before you purchase them and give your customers peace of mind by checking out possible recalls before you retail the vehicle.

New Member Benefits• You don’t buy a newspaper, you buy the news• You don’t buy life insurance, you buy security

for others• You don’t buy glasses, you buy vision• You don’t buy awnings, you buy shade

• You don’t buy membership in IIADA, you buy cooperation of the ablest men and women in your profession with whom you can join hands to accomplish things you could not do alone.

YES, IT COSTS TO JOIN IIADA – BUT IT PAYS TO BELONG – THINK ABOUT IT

Investigations Information Line TOLL FREE: 1-866-908-4636

IIADA has two distributors who will provide the Wolters Kluwer Financial Services retail installment contracts for Iowa dealers.

These retail installment contracts have a compliance warranty. In some cases, you will need to have your software provider reprogram for you. You may order by phone or online and these will be shipped directly to the dealership. Thank you for working with these distributors.

RETAIL INSTALLMENT CONTRACTS

Sirius XM Satellite Radio is America’s satellite radio company. Independent dealerships can now offer a free SiriusXM three-month trial on all pre-owned vehicles with factory-equipped satellite radio. In addition to selling your customers a quality vehicle, you’ll be giving them the opportunity to enjoy satellite radio. And there’s no cost to your customer. Visit www.siriusxm.com/niadaprogram to enroll your dealership today!

NIADA Member Health Plans, administered by JLBG Health, bring you choice and flexibility when designing your personal health plan while providing potential savings of thousands of dollars annually. To review the plan details and receive an instant online rate, visit www.NIADAHealthPlans.com or call 1-888-308-9340.

PLEASE CONTACT: WILSON DISTRIBUTOR SERVICE • 1-800-634-0974 • WWW.WDS-USA.COM ADG - AUTOMOTIVE DEVELOPMENT GROUP • 952·937·9222 • WWW AUTOMOTIVEDEVELOPMENTGROUP.COM

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President’s LetterSummer is here, and the market is warming even more than it did

in February, March and April. It seems like there are more vehicles at the sales, but the quality of the vehicles is not what you and I want. The older units are super high on the miles and the average to low-mileage units are bringing closer to retail than wholesale.

What can a dealer do to combat that? Well, to start, you can put a sign up saying you buy cars. We did this and it’s amazing how many people stop in and want to sell their vehicle. You get to work on a one-to-one basis with the seller and you can look over the vehicle at your pace, not an auctioneer’s pace. Also, you might be able to buy his vehicle and sell him one off your lot, turning it into a win-win situation.

You could also put a small box ad in the local paper with your phone number advertising that you buy cars. Sometimes it can be a unit you might not want to put on your front row, but you could buy and wholesale it for a profit.

That’s just one way of buying inventory for your lot. Don’t forget about checking the classified ads in your paper and checking websites or Craigslist. There are lots of different places to go in this electronic age.

Good selling,Doug LivyPresident, IIADA

Organizers of the inaugural I-80 Iowa Grand Motorcycle Rally are planning four days of activities for motorcycle enthusiasts, including:

• Iowa Grand Ride-In Bike Show •BakerDrivetrainSmokeDown

Showdown •DragStyleBurnout

Competition •MotorcycleCowboysRodeo •MotorcycleRallySwapMeet •TheNationalMotorcycle

Museum •BikeBuildingsLot •“SquidWheelies” •ArideonthefamousIowa

Speedwaytrack •TheWallofDeath •MotorcycleDragRaces* •Displaysbynewandused motorcycledealers

*Certaineventsrequireallriderstohavehelmets,glovesandclothingcoveringallbodyparts(noexposedskin)

Entertainment will be provided by Eddie Money, Joe Diffie, Rev Theory and Blue Oyster Cult.

The full schedule of all events can be found at www.iowagrandrally.com or www.iowaspeedway.com. The websites provide information on lodging, camping, admission tickets, vendor/exhibitor information and updates on events to be held. Check out

Facebook and Twitter for information and updates also.

Temporary permits will be issued by the Iowa Department of Transportation for motor vehicle dealers who sell used and new motorcycles and might like to display motorcycles at the event (restrictions apply). Permit applications can be found at www.iowadot.gov/mvd/ovs/usedmotorcyclerally.html. Dealers will be limited to one permit per calendar year. Questions can be directed to the Iowa DOT at 515-237-3110. To obtain a permit from the DOT, please do so several weeks prior to an event to ensure your application can be processed.

The Iowa Speedway is a 7/8-mile paved oval motor racing track in Newton, Iowa, approximately 30 miles from Des Moines. Iowa Speedway opened in September 2006 and has permanent seating for 30,000. It was designed by Rusty Wallace and patterned after Richmond International Raceway.

The Iowa Speedway has helped revitalize Newton after the city lost the Maytag Corporation. The $70 million facility hosts IRL Indy Car Series, NASCAR Nationwide Series and ARCA events – and soon a motorcycle rally.

Newton is a community of around 15,000 in Jasper County, which has a population

of nearly 37,000. Another familiar annual motorcycle rally is held each year in Sturgis, S.D. (Aug. 6-12), and the Iowa Speedway event will be held several weeks prior to Sturgis. In 2011, nearly 417,000 attended the Sturgis event, where nearly 512 tons of garbage were hauled and the state of South Dakota collected nearly $412,000 in sales tax. According to the 2010 census, the city of Sturgis has a population of 6,600.

The Iowa Speedway could catch folks on their way to Sturgis, which could help to bring in much-needed tax dollars to the Newton community and the state of Iowa, and could be the beginning of something very big in the Newton area. Could Iowa be on the edge of having a Sturgis II or – keeping with race terminology – a Sturgis Jr.?

Many Iowans love cycles and ride often. While this event will be promoted on a nationwide basis, Iowans have the opportunity to be included in the inaugural event.

We wish the organizers much success with the I-80 Iowa Grand Motorcycle Rally in Newton. Sturgis celebrates its 72nd year in 2012, and few attendees can say they were there for No. 1. Iowans have that chance for I-80 – go for it and attend the Iowa Speedway event July 25-28, as a participant, a spectator or an exhibitor.

M O T O R C Y C L E R A L L Y J U L Y 2 5 - 2 8

Legislative ReportBills passed by the Iowa Legislature during the 2012 session that

may be of interest to motor vehicle dealers:H.F. 2399: An act relating to scrap metal transactions, prohibiting

certain sales and providing penalties. Effective July 1.H.F. 2467: An act relating to the regulation of snowmobiles,

all-terrain vehicles and watercraft by the Department of Natural Resources, establishing fees and making penalties applicable. Effective July 1.

S.F. 2249: An act relating to motor vehicle dealer activities at fair events, vehicle shows, vehicle exhibitions and motorcycle rallies, and to the definition of travel trailers for purposes of travel trailer dealer requirements. Effective April 4.

S.F. 2282: An act concerning the definitions of “all-terrain vehicle” and “off-road utility vehicle” for purposes of provisions administered by the Department of Natural Resources. Effective July 1.

If you have questions about any of these bills, please contact the IIADA office. To view the complete legislation, visit www.legis.iowa.gov, click on “Bills Quick Search” and insert the bill number to see the complete text of the new law.

The next issue of Street Smart will include additional legislative issues. Because our magazine content must be submitted several weeks in advance, the Iowa Legislature was still in session at press time.

Iowa Speedway to Hold I-80 Iowa Grand Motorcycle Rally

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These days, dealers are looking for every edge to find quality inventory for their lots. Americans are holding onto their cars longer than ever, causing higher prices at auction and a smaller crop of quality vehicles on which dealers can bid.

According to a new study by R.L. Polk, length of vehicle ownership recently hit an all-time high: 71 months for new vehicles and 50 months for used cars and trucks. The study also noted that people holding onto their cars longer has resulted in decreased used-vehicle supply.

In this crowded marketplace, you need to assess your strategy for long-term success if you want to outperform your goals and beat the competition. To help, consider this new method dealers are using to better evaluate and acquire in-demand units others might pass up. It’s called provisioning.

What Is Provisioning?Provisioning is defined as the efficient

allocation of resources to achieve a successful mission. To be clear, the mission for dealers is to operate a financially successful used car operation.

Put simply, for your business to thrive, you need to know what cars to buy, what to pay for them and where to find the right units for your inventory. Provisioning is a new way for dealers to set their used vehicle strategy (size of inventory investment, ROI/turn expectations) and efficiently pursue the vehicles necessary to execute their plan successfully.

Provisioning is like a science because it provides a methodical approach to buying used vehicles. It helps evaluate certain types of information vital to the success of your used car business.

What types of information?Demand: The number of people

in your area searching online for a specific vehicle.

Interest: The average conversion

rate from search results pages to vehicle details pages for a vehicle in your area.

Volume: The number of units recently sold in your area.

Market days supply: The current available supply of similarly configured vehicles and the rate at which such vehicles have been sold over the past 45 days.

Profitability: The spread between average asking price and wholesale price – the auction price vs. list price in your market.

Availability: The number of units currently available at auction.

Experience: The success of your recent sales for a specific make/model.

Analyzing that information on your own isn’t easy. But technology and tools can help you determine the types of vehicles that will deliver the best return on investment every month, giving you a huge advantage on your competition.

What to Pay and Where to Find ItOnce you determine the cars that sell

fast in your market, you’ll want to make sure you pay the right price for them. At auction, there aren’t too many obvious deals these days, but you can still find gems with a little guidance.

Many dealers rely on professional buyer solutions like those by vAuto, for example. Those services use in-market data to help determine which units are worth your investment. They can even help you identify the price point at which a vehicle will get the most attention, get you the profit you need and cover your reconditioning costs so you still hold gross.

If you’re a dealer in the Northeast in the winter, you might have difficulty finding enough SUVs to keep your inventory fully stocked. Similarly, a dealer in the South probably can’t find enough convertibles in the summer months. Wherever you are, there’s inevitably a shortage of certain cars in

demand. So it can pay to look outside your immediate area for quality inventory.

Use online auctions to help keep your lot full of vehicles you know will sell. Online auctions can be some of the best places to find cars at good prices without the hassle of waking up early, checking pages of run lists and elbowing past other dealers to find your spot in the lane. Instead, sit back with your coffee and bid from the comfort of your home or the office.

How to Reduce Acquisition RiskOf course, if you bid online, you won’t

be able to “kick the tires” and inspect the vehicles in person, so you’ll especially need to consider the condition and history of those vehicles. Otherwise you might end up paying too much for a car that seems perfect but has reported damage or another incident that could affect its retail value.

The key is knowing the cars with good service histories that merit your bids, since those vehicles often sell for better prices.

Many successful dealers run a vehicle history report on every car they consider buying as part of their standard procedure to assess a vehicle’s condition and spot any related acquisition risks. Whether through online auctions or in-person trades, this triage ensures the dealer and his buyers feel more confident that the inventory placed on the lot will turn fast and make top dollar.

With declining supply and increasing demand for quality vehicles, there is little room to make acquisition mistakes on vehicles you “had a feeling about” but didn’t take the time to carefully vet. Provisioning helps you avoid these mistakes and turns your ability to efficiently and effectively evaluate and acquire used vehicles into a competitive advantage.

BY DALE POLLAK AND CHAD GOODSON

The New Science of Used Vehicle Sourcing & SalesU S E O N L I N E AU C T I O N S T O H E L P K E E P YO U R LO T F U L L O F V E H I C L E S YO U K N OW W I L L S E L L .

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U S E O N L I N E AU C T I O N S T O H E L P K E E P YO U R LO T F U L L O F V E H I C L E S YO U K N OW W I L L S E L L .

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

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

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

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

FEDERAL LAWFTC targets negative equity ads: On

March 14, the Federal Trade Commission announced five car dealers agreed to proposed settlement orders requiring them to stop running ads promising to pay off a consumer’s trade-in vehicle no matter what the consumer owes on the vehicle. The FTC alleged that the ads, which ran on the dealers’ websites and on sites such as YouTube.com, deceived consumers into thinking they would no longer be responsible for paying off the balances on their trade-ins, even when the balance exceeded the trade-in’s value (the trade-in had “negative equity”).

Instead, the dealers rolled the negative equity into the consumer’s new vehicle financing or, in the case of one dealer, required consumers to pay it out of pocket.

The proposed orders bar the dealers from engaging in similar deceptive advertising practices in the future.

Specifically, each proposed order prohibits the dealer from misrepresenting that it will pay the remaining balance on a consumer’s trade-in vehicle and prohibits the dealer from misrepresenting any other facts related to the leasing or financing of a vehicle.

The proposed orders require some of the dealers to comply with the Truth in Lending Act and Regulation Z and to make clear and conspicuous disclosures when advertising certain terms related to issuing consumer credit. Other dealers are required by the proposed orders to clearly and conspicuously make all lease-related disclosures required by the Consumer Leasing Act and Regulation M, including the monthly lease payment.

Finally, the dealers are required to keep copies of relevant ads and materials substantiating claims made in their ads and to provide copies of the proposed orders to certain employees. The FTC also issued a new consumer education publication titled “Negative Equity Ads and Auto-Trade-ins” to help consumers understand these types of ads. See www.ftc.gov/opa/2012/03/autoloans.shtm.

FTC releases consumer complaint list: The FTC recently released its list of top consumer complaints received by the agency in 2011. For the 12th year in a row, identity theft complaints topped the list, with 15 percent of the total complaints filed.

The report breaks out complaint data on a state-by-state basis and also contains data about the 50 metropolitan areas reporting the highest per capita incidence of fraud and other complaints. The 50 metropolitan areas reporting the highest incidence of identity theft are also noted.

LITIGATIONArbitration provision in vehicle

purchase agreement did not apply to GAP policy purchased three days after vehicle: A consumer bought a car from

a dealership. The purchase agreement included an arbitration provision. Three days later, the consumer entered into a GAP insurance contract that was sold to her by the dealership.

When the consumer’s car was totaled in an accident, the GAP insurance company refused to pay the claim. The consumer sued the insurance company and the dealership, and the dealership moved to compel arbitration. The consumer argued that her purchases of the car and the GAP policy were separate transactions and, therefore, the arbitration clause in the purchase agreement did not apply to an underpayment of coverage under the GAP policy.

The trial court denied the motion to compel arbitration, the appellate court reversed and the Supreme Court of Oklahoma reversed the appellate court and upheld the trial court’s decision. The high court found that the contracts involved two separate subjects and were executed on different dates, and the arbitration provision in the purchase agreement did not mention or reference GAP insurance or any relationship between the two contracts. See Harris v. David Stanley Chevrolet, Inc., 2012 Okla. LEXIS 8 (Okla. February 7, 2012).

Security agreement must exist separate from certificate of title and application for certificate of title: A couple bought a car with funds they borrowed from a relative. Although the certificate of title and the application for certificate of title indicated that the relative held a lien on the car, there was no separate document creating or conveying a security interest in the car to the relative.

After the car buyers filed a Chapter 7 bankruptcy petition, the relative took possession of the car and titled it in his name. The Chapter 7 trustee sued the relative, arguing that because he did not have a valid lien on the car, he must turn

The CARLAWYER ©

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over the car, free of any encumbrance by him, or its value to the bankruptcy estate.

The trustee moved for summary judgment, and the U.S. Bankruptcy Court for the District of South Dakota granted the motion. The court found that in order for a security interest to attach to collateral, the debtor must have authenticated a security agreement that creates or provides for a security interest and provides a description of the collateral.

In this case, the court found that the certificate of title and the application for certificate of title did not create or provide for a security interest but merely acknowledged a security interest. Moreover, the court found that a security interest must exist before the lien is noted on the title and must be set forth in an instrument separate from an application for a certificate of title or the certificate of title itself. See In re Buttke (Allred v. Buttke), 2012 Bankr. LEXIS 552 (Bankr. D.S.D. February 17, 2012).

Vehicle lessor not liable for acts of licensed repossession agency under California law: After a licensed repossession agency repossessed a leased vehicle, the lessee sued the lessor, alleging that the vehicle was wrongly repossessed, with specific complaints of negligent operation of a motor vehicle, general negligence, intentional tort, fraud, trespass and breach of contract.

The trial court dismissed the complaint. The lessee appealed to the Court of Appeal of California, arguing that the lessor was liable for the acts of the licensed repossession agency and that the trial court erred in finding that there were no triable issues of material fact on his trespass and fraud claims.

The appellate court affirmed the trial court’s ruling. Specifically, the appellate court explained that California law provides that a motor vehicle lessor is not liable for any act or omission by a licensed repossession agency in carrying out an assignment and, therefore, the lessor could not be liable for an alleged trespass by a licensed repossession agency. The appellate court further explained that the fraud claims, which were based on his allegations that the lessor misrepresented and concealed the true price of the vehicle, were barred by California’s three-year statute of limitations. See K’Zorin v. Toyota Motor Sales U.S.A., Inc., 2011 Cal. App. Unpub. LEXIS 1136 (Cal. App.

February 14, 2012).Court refuses to dismiss claim that

creditors violated ECOA by failing to notify applicant of adverse action: An individual submitted an online credit application to a car dealership to buy a car. The dealership circulated applications on the individual’s behalf to various finance companies. One of the companies approved the application, and another company indicated that it would provide financing at an interest rate between 9.75 percent and 12.25 percent. The individual went to the dealership, made a down payment and was told that a 12.49 percent rate was the best the dealership could obtain for him.

The individual signed a buyer’s order and a retail installment sales contract. The RISC indicated the dealership had assigned its interest to Wells Fargo Dealer Services. A week later, the dealership informed the individual that his financing had not gone through and he needed to sign new documents. The individual refused and sued the dealership and the various finance companies for violating the Equal Credit Opportunity Act by failing to provide him notice of their approval or denial of his credit application.

Two of the companies moved to dismiss the complaint. The U.S. Bankruptcy Court for the Eastern District of Virginia denied the motion. The court noted that where a third party circulates an application to multiple creditors on an applicant’s behalf and the applicant expressly accepts or uses credit offered by one of the creditors, notification of action taken by any of the other creditors is not required. The creditors argued that the dealership or Wells extended an offer of credit to the individual and the individual accepted that offer, thereby excusing them from their duty to send him an adverse action notice. The court disagreed, finding that it was unclear whether the dealership agreed to finance the purchase or merely acted to arrange credit for the individual and that, although the RISC identified Wells as the assignee, the individual alleged that Wells denied having any record of vehicle financing in his name. See Martin v. Q&A Enterprises, Inc., 2012 U.S. Dist. LEXIS 14746 (Bankr. E.D. Va. February 6, 2012).

Spot delivery transaction may violate Florida’s unfair and deceptive trade practices act: An individual picked out a used car and signed a retail installment

sale contract, a purchase agreement and a spot delivery agreement. The individual left her old car with the dealer as a trade-in, gave the dealer a deposit and drove her newly purchased car home.

A few days later, the dealer called her and told her he could not arrange financing on the terms disclosed in the RISC. The dealer asked her to verify the income amount stated in her application, but she did not respond. The dealer sent her a new RISC with less favorable terms. When the individual refused the new credit terms, the dealer rescinded the sale, repossessed the car, kept her old car and refused to refund the deposit.

The individual sued the dealer in the U.S. District Court for the Middle District of Florida, claiming the dealer violated the Truth in Lending Act, the Equal Credit Opportunity Act, the Florida Motor Vehicle Retail Sales Finance Act and the Florida Unfair and Deceptive Trade Practices Act. The heart of the claim was that the dealer’s initial financing terms constituted the agreement between the parties and they were not subject to change.

The dealer and the individual both moved for summary judgment. The court granted the dealer’s motion with respect to all of the claims except one. The court found that summary judgment was premature on a claim under the FUDTPA because the dealer argued that it made clear the deal was contingent on arranging third-party financing and the individual argued that the dealer told her the financing was complete. See Vereen v. Lou Sobh Automotive of Jax, Inc., 2012 U.S. Dist. LEXIS 23113 (M.D. Fla. February 23, 2012).

So there you have it! Stay legal, and we’ll see you next month.

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

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CARFAX has launched its newest wave of television ads as part of the national “Show Me the CARFAX” campaign.

Starring again in all of the ads to deliver the message of smarter used car shopping is the knowledgeable Car Fox. The spots, which humorously depict people buying used cars from various types of sellers, illustrate how CARFAX vehicle history reports can build confidence in the cars people buy as well as the dealers from whom they’re buying. Car Fox issues a friendly reminder for consumers to make an educated buying decision from a trusted seller by saying, “Show Me the CARFAX.”

“Smart used car shoppers make good buying decisions by consulting the experts first,” CARFAX communications director Larry Gamache said. “An inspection by a qualified mechanic and a trusted CARFAX Report is the best one-two punch.

“We’ve watched Car Fox help boost traffic at dealerships and build confidence with consumers everywhere since he became part of the ‘Show Me the CARFAX’ campaign. We fully expect that success to increase with these latest ads.”

The new ads can be viewed on the CARFAX channel on YouTube or the company’s website, carfax.com.

“The ads featuring Car Fox have been wildly successful,” said Zevin Auerbach, a creative partner at Zimmerman Advertising. “The new series will give fans something to really look forward to. In essence, they’re mini-TV shows with a car dealer as a recurring character. The imaginative dealer is constantly trying to outfox Car Fox with a series of gimmicks like a ‘seal of approval,’ which is actually a live sea lion.

“Of course at the end, the customer says ‘Show me the CARFAX,’ as our dealer makes one last humorous attempt to provide an alternative.”

Carfax gives free marketing materials featuring Car Fox to dealers, including an inflatable Car Fox for Carfax Advantage Dealers.

CARFAX Introduces Its Latest TV Ads

T H E L AT E S T | visit carfax.com

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Why all this excitement about selling CPO vehicles?

As an independent used vehicle dealer, you are likely aware of the recent trend in the automobile industry toward selling certified pre-owned vehicles. The trend began with manufacturer-backed programs for new vehicle franchised dealers and has expanded into the independent used car segment.

A vehicle is normally designated as “certified” after undergoing a thorough inspection of key components for both functionality and safety, and completing the needed repairs and reconditioning. Most CPO programs require that the vehicle meets CARFAX standards, assuring the potential buyer he is purchasing a safe and dependable vehicle that is a step above a typical used car.

The programs generally include a mechanical breakdown warranty for a specific term and most provide extended coverage options.

You might have found it difficult to compete against dealers selling a certified program, even with a price advantage, because consumers seem willing to spend more for a vehicle that has been certified and comes with some term of mechanical protection coverage.

So what are the advantages to you, as an independent dealer, of selling CPO vehicles? There are several:

• An enhanced image in your marketplace.• Improved gross revenue and

increased profitability created by the sale of more vehicles.

• The ability to compete with franchise dealerships that offer CPO programs.

• An edge on the competition.• Increased customer satisfaction

and confidence.CPO is very much the cutting edge of the

used auto industry. Sales are growing rapidly. As reported in Auto Remarketing, CPO sales reached 174,471 vehicles in March, the most certified units ever sold in a month, according to the latest numbers from Autodata Corp. That closed the best quarter ever for CPO sales – a record 454,944 vehicles sold in the first three months of 2012, up 8.4 percent from the first quarter of 2011.

In its 2010 Used Vehicle Market Report, J.D. Power and Associates found 67 percent of all used car buyers began their purchase

process planning to buy a certified vehicle, and 21 percent of CPO buyers were not originally looking for a certified vehicle.

Given the obvious consumer interest in them, it’s no wonder CNW Market Research found certified vehicles turn almost 20 days faster than non-certified, with an average 24.8-day turn. CNW’s March statistics also showed CPO sales provide dealers with 12 percent to 17 percent additional profit – an average of $2,274 per unit – versus the sale of non-certified used vehicles. And that premium has been rising steadily since January 2011.

The market potential is huge. More than 35 million used vehicles were sold in 2011, but less than 2 million were certified by manufacturer programs. Independent dealers sold 22.4 million cars in 2010. An independent dealer who chooses to sell certified pre-owned vehicles can expect to earn a larger share of that enormous market and earn a higher percentage of repeat customer sales as a result of the higher level of customer satisfaction with a CPO vehicle.

Victor Salvato, president of Auto Sales Outlet in Rochester, N.Y., is an independent dealer who has experience offering a CPO program to his customers. Salvato said advertising certified vehicles made an immediate impact on his dealership in a variety of ways.

“The quality and volume of the responses to our advertising improved immediately,” he said. “It was obvious that we were reaching a higher quality prospect who was interested in a higher quality vehicle based on the customer’s perception of what a certified vehicle is. We can thank the manufacturers and franchise dealers for educating our customers through their promotion of certified vehicles.

“Not only have we sold more cars, but our profits have increased as well. Being a certified dealer has definitely improved our image and our credibility in the marketplace, and we are beginning to see an increase in repeat sales as well.”

The New NIADA CPO ProgramNIADA has partnered with Warrantech,

an AmTrust Financial company, in the design and administration of its new certified pre-owned program. NIADA

completed extensive research with its dealer members to assure that the program it is providing is exactly what the dealers want.

The combined efforts of NIADA and Warrantech, and the input of the dealers consulted, have resulted in a program that is innovative, marketable, flexible and financially sound.

The NIADA CPO program is much more than a 125-point inspection and a warranty. The program is truly a “selling system.”

All eligible vehicles must be certified, a requirement that insures the integrity and credibility of the program. The dealer selects one of three limited warranty terms that are complemented by flexible and affordable wrap-around and extended coverage options for the consumer.

With three unique plans under the NIADA CPO program, dealers will be able to select the option that is right for their market and their customer base. The options include:

• A three-month/3,000-mile limited warranty that includes 36 months/36,000 miles of engine and air conditioning component coverage.

• A six-month/6,000-mile limited warranty that includes 36 months/36,000 miles of engine and AC component coverage.

• A 12-month/12,000-mile limited warranty.

The NIADA CPO limited warranty options include coverage of engine, air conditioning, turbocharger or supercharger, automatic and manual transmission, transfer case, drive axle, steering components, select electrical components and seals and gaskets.

For more consumer choice and confidence, the NIADA CPO limited warranty options can be supplemented by adding the extended NIADA Total Care or the NIADA Total Care Plus coverage, which includes front and rear suspension, brakes, fuel system, cooling system and additional electrical components.

“In re-tooling the NIADA CPO program, we recognized independent dealer business models vary widely and that we had to offer additional CPO options to specifically meet the operational demands of our dealers,” NIADA chief operating officer Steve Jordan said. “Warrantech’s successful track record with independent auto dealers, varying product offerings, world-class claims

I N D U S T RY N E W S | for more information (877) 310-0288 or email [email protected]

NIADA Gets Independents into the Hottest Thing in the Auto Industry: Certified Pre-Owned

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operation, nationwide sales footprint and long-term commitment to support the success of our dealer members made the partnership decision easy to make.”

The program is easy to sell, provides coverage from day one and a solid benefits package, day one rental coverage (no minimum shop time), simplified pricing, low-cost surcharges and eligibility guidelines that are very generous – current plus 14 model years and 100,000 miles at time of sale.

The program is supported by a wealth of top-quality marketing and merchandising materials to promote the program throughout the dealership, all proudly displaying the familiar logo of NIADA.

An NIADA-backed CPO program adds even more credibility for dealers who choose to market it. NIADA brings the strength of more than 18,000 dealers nationwide, the stability of 66 years of experience and the dependability of being the dealers’ voice to regulators, suppliers and, most importantly, consumers.

“Warrantech is honored to have been selected by the 66-year old NIADA as its CPO program administrator,” Warrantech CEO Sean Stapleton said. “We applaud the time-honored tradition of excellence NIADA member dealers observe, including their adherence to a strict code of ethics.

We feel that commitment mirrors Warrantech’s dedication to excellence and drive to provide superior products and continued quality customer service.”

NIADA, with the support and participation of the state independent dealer associations around the country, is excited to make this program available to its member dealers.

Warrantech and AmTrustIn selecting Warrantech/AmTrust as

the administrator of the program, NIADA has partnered with a world-class provider of warranty products and administrative services. For more than three decades, Warrantech has been the solution for manufacturers, retailers, dealers, distributors and other sales organizations seeking increased profitability, enhanced market differentiation and long-term customer loyalty.

Those clients include Volvo, Mazda, General Motors, Ford, Chrysler, Sony, Samsung, Panasonic, PepBoys and many more familiar names.

AmTrust, rated “A” Excellent, FSC IX by A.M. Best, fully insures the NIADA CPO program, adding the financial strength and security necessary to protect the dealers who market the program and the consumers who are protected by the product.

Warrantech provides a state-of-the-art claims center that houses more than 300 experienced claims adjustors. All automotive adjustors are ASE-certified technicians with an average tenure of more than 10 years with the company.

Claims service highlights for the CPO program include:

• Instant credit card payment.• Repairs can be completed at the

selling dealership or sublet to any licensed shop or franchised dealer.

• Multiple, convenient methods of submitting claims.

The NIADA Certified Pre-Owned program is designed to give dealers more options to better serve their customers, allow them to compete with manufacturer CPO programs and provide them with a competitive edge against other used car dealers in their marketplace that do not offer a CPO advantage.

If you are interested in marketing the new program or just want more information, please call (877) 310-0288 or email [email protected].

BY PATRICK REED PATRICK REED IS BUSINESS DEVELOPMENT MANAGER FOR WARRANTECH/AMTRUST GROUP IN BEDFORD, TEXAS. HE HAS MORE THAN 35 YEARS OF AUTOMOTIVE INDUSTRY EXPERIENCE, FOCUSING ON VEHICLE SERVICE CONTRACTS. HE CAN BE REACHED AT [email protected] OR (817) 785-6248.

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I N D U S T RY T I P S

If you are a small employer with fewer than 25 full-time equivalent employees who earn an average wage of less than $50,000 per year, and you pay at least half of employee health insurance premiums, there is a tax credit that can put money in your pocket.

The Small Business Health Care Tax Credit is specifically targeted to help small businesses and tax-exempt organizations. The credit can enable small businesses and small tax-exempt organizations to offer health insurance coverage for the first time. It also helps those already offering health insurance coverage maintain the coverage they already have.

Here is what small employers need to know so they don’t miss out on the credit for tax year 2011:

• Qualifying businesses calculate the Small Business Health Care Credit on Form 8941, Credit for Small Employer Health Insurance Premiums, and claim it as part of the general business credit on Form 3800, General Business Credit, which they would include with their tax return.

• Tax-exempt organizations can use Form 8941 to calculate the credit and then claim the credit on Form 990-T, Exempt Organization Business Income Tax Return, Line 44f.

• Businesses that couldn’t use the credit in 2011 may be eligible to claim it in future years. Eligible small employers can claim the credit for 2010 through 2013 and for two additional years beginning in 2014.

For tax years 2010 to 2013, the maximum credit for eligible small business employers is 35 percent of premiums paid. For eligible tax-exempt employers the maximum credit is 25 percent of premiums paid. Beginning in 2014, the maximum credit will go up to 50 percent of qualifying premiums paid by eligible small business employers and 35 percent of qualifying premiums paid by eligible tax-exempt organizations.

Additional information about eligibility requirements and calculating the credit can be found on the Small Business Health Care Tax Credit for Small Employers page of IRS.gov.

IRS Tax Tip: Claiming the Small Business Health Care Tax Credit

M O N A RC H AU T O SA L E S OW N E R DAV I D L A N Z E R ( S E C O N D F RO M L E F T ) , W I T H S TA F F M E M B E R S ( F RO M L E F T ) A L E X B O D I FO R D , T E R RY L A N Z E R A N D R AYS H AW N J U M P E R .

Adding Rentals Can Help Drive SalesDavid Lanzer sells used cars. That’s the primary mission of Monarch Auto Sales, the

dealership he owns and operates in Greensboro, N.C.But Lanzer also rents used cars through a franchise with Rent-A-Wreck, which, he said, fits

neatly with mission No. 1.“For the retail used car dealer, there’s so much synergy it’s not even funny,” Lanzer said. “Our

rental customer is that same customer we end up selling a car to. They come to Rent-A-Wreck because their 14-year-old car with 250,000 miles on it just died and they’re stuck for a car.”

That makes the rental operation a magnet that attracts prime prospects for sales, and Lanzer said he takes full advantage of the opportunities it provides. Throughout the rental process, the dealer considers every rental customer to be a potential sales customer, too.

“We market car sales hard to every rental customer that walks in the door,” he said. “We make it clear that all of our cars are for sale, and we talk to our customers. We find out why they need to rent the car, and we sell about 100 cars a year just to our rental customers. That sales volume has been consistent for us for years.

“We do insurance replacement rentals where a customer will have just gotten into an accident, and before that customer is even in buying mode, we’re planting the seed that his rental is available for sale and finding out what he’s looking for in his next car. We’ll entice him with a rental ‘test drive,’ where we’ll put the cost of the rental toward the car if they wind up buying.”

Lanzer said the rental operation has also helped him with inventory for his retail dealership, a big advantage given the current short supply and high price of quality inventory.

“The cars we fleet as rentals end up as perfect retail units for our customers,” he explained. “We fleet a 1-2 year old car, run it profitably in our rental fleet for 18 months to two years, then we’re left with a 4-5 year old car and those are very desirable and in short supply at the auctions now.”

Lanzer said the rental business does require a dealer to make some adjustments from the typical dealership model. For example, he said the typical dealer floor plan is for 90 days, while a typical rental floor plan is much longer – more like 12-36 months.

In 2011, 11.8 percent of National IADA members offered rental cars at their dealerships, down from 12.4 percent in 2010. Of those, 78.1 percent ran an independent rental operation while 21.9 percent – including Lanzer – worked through a franchise.

Lanzer said he prefers the franchise route because of the support offered.“Rent-A-Wreck earns every dime of the royalties I pay them,” he said. “The systems they

have in place to deliver reservations and market you on the Internet and travel websites, the support they provide you as a franchise on everything from your insurance to your financing, the legal stuff, the operations and business management software, coaching and the company sponsored dealer 20 groups – those are all things an independent would have to do for themselves on their own. “

Rent-A-Wreck is currently offering a $1,000 discount for state IADA members through the end of the year, and the company said it will donate $1,000 to the dealer’s state association for every franchise sold to an IADA member.

BY ANDY IATRIDIS ANDY IATRIDIS IS FRANCHISE DEVELOPMENT MANAGER FOR RENT-A-WRECK. TO CONTACT HIM OR GET INFORMATION ABOUT ADDING A RENT-A-WRECK FRANCHISE, CALL (469) 939-6132 OR EMAIL [email protected].

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IOWA USED MOTOR VEHICLE DEALER EDUCATION CLASSES

FIVE-HOUR CONTINUING EDUCATION CLASS MUST BE TAKEN PRIOR TO DEC. 31, 2012

During 2012, the five-hour dealer continuing education classes will again be held at community colleges throughout Iowa.

The following is an overview of the specialty classes dealers may select from:

PAPERWORK, PAPERWORK, PAPERWORKThis class is an excellent refresher for the veteran dealer, and beginning dealers will become familiar with every facet of the paperwork required for operating a dealership in Iowa. Attendees will learn how to properly complete titles and related documents as well as developing compliant procedures for cash sales, financed sales and wholesale sales that everyone at your dealership can follow to help ensure adherence, consistency and correctness. You will discover how to set up your dealership to meet compliance requirements at the state and federal level. Updates from the Iowa Department of Transportation, the Consumer Protection Division of the Iowa Attorney General’s office and other state and federal agencies will be reviewed.

COMPLIANCE TOOLS FOR BUY HERE-PAY HERE DEALERSParticipants will learn how to avoid fines and penalties. This class will provide an in-depth discussion of policies and procedures that must be followed by BHPH dealers and those considering a Buy Here-Pay Here dealership in Iowa. Advertising rules for dealerships will also be shared. Updates from the Iowa Department of Transportation, the Consumer Protection Division of the Iowa Attorney General’s office, the new Federal Consumer Financial Protection Bureau and other state and federal agencies will be reviewed.

CARKNOWLOGY: FINANCING REGULATIONS AND RESPONSIBILITIESDealers who offer consumer financing and those considering making financing available should take this course to understand fully how to conduct business legally, ethically and in compliance with state and federal law. Discover what lenders expect from you and your customers regarding compliance with sales, consumer finance rules, regulations and law. The course will include a review of the legal requirements of selling service contracts, warranties and insurance products, plus the importance of working with reputable providers. You will take part in a hands-on review of all legal requirements and document preparation for the sales of motor vehicles when lenders are involved. Updates from the Iowa Department of Transportation , the Consumer Protection Division of the Iowa Attorney General’s office, the new Federal Consumer Financial Protection Bureau and other state and federal agencies will be reviewed.

ENVIRONMENTAL AND SAFETY COMPLIANCEDNR, EPA AND OSHA Requirements: If you think you are exempt, think again. This course will be beneficial to dealers who have service departments, body shops and those who have a used motor vehicle dealer license coupled with a recycler’s license. If you have employees, you will want to become better aware of these state and federal compliance issues. Updates from the Iowa Department of Transportation, the Consumer Protection Division of the Iowa Attorney General’s office and other state and federal agencies will be reviewed.

Class locations, times and course numbers will be posted on the IIADA website (www.iowaiada.com) and will be included in Street Smart magazine throughout 2012.

Weather could be a factor, so please listen to local radio stations to insure the class will be held.

If you arrive more than 15 minutes late, the community college may ask that you register for a future class.

If you have any special needs, please let the community college know when you register for a class. You may bring an interpreter to class, but please let the college know you will be doing so.

Registration: Dealers will be asked to provide the following information: the class name and section number, and the participant’s social security number, date of birth, name, address, phone number, email address and credit card information. Prepayment is required. Most colleges accept VISA, Mastercard, Discover and American Express.

Fees: The five-hour continuing education class cost is $159, which includes an updated manual.

CLASS LOCATIONS AND DATESFriday, June 15, 2012, 8 a.m.-1 p.m.: North Iowa Area Community College, Muse-Norris Conference Center, 500 College Drive, Mason City, Iowa. Please arrive at 7:45 a.m. To register, call 888-466-4222, ext. 4358, or 641-422-4358. Courses offered: Carknowlogy: Financing Regulations and Responsibilities (Course No. 80946), Room NC 180; Environmental and Safety Compliance (Course No. 80956), Room NC 180; Paperwork, Paperwork, Paperwork (Course No. 80953), Room NC 180.

Thursday, June 21, 2012, noon-5 p.m.: Des Moines Area Community College, FFA Building, 2006 S. Ankeny Blvd., Ankeny, Iowa. Please arrive at 11:45 a.m. To register, call 515-964-6800 or 800-342-0033. Course offered: Paperwork, Paperwork, Paperwork (Course No. 32651), Room 212, FFA Building.

Friday, June 22, 2012, 8 a.m.-1 p.m.: Des Moines Area Community College, FFA Building, 2006 S. Ankeny Blvd., Ankeny, Iowa. Please arrive at 7:45 a.m. To register, call 515-964-6800 or 800-342-0033. Courses offered: Environmental and Safety Compliance (Course No. 32650), Rooms 112 and 113, FFA Building; Carknowlogy: Financing Regulations and Responsibilities (Course No. 32649), Rooms 108 and 109, FFA Building; Compliance Tools for Buy Here-Pay Here Dealers (Course No. 32647), Rooms 114 and 115, FFA Building.

Friday, June 29, 2012, 8 a.m.-1 p.m.: Northeast Iowa Community College, Town Clock Center, Suite 1, 700 Main Street, Dubuque, Iowa. Please arrive at 7:45 a.m. To register, call 563-557-8271, ext. 380. Courses offered: Carknowlogy: Financing Regulations and Responsibilities (Course No. 13296), Room 106-A; Environmental and Safety Compliance (Course No. 13298), Room 106-C; Paperwork, Paperwork, Paperwork (Course No. 13300), Room 106-B

Friday, Aug. 3, 2012, 8 a.m.-1 p.m.: Iowa Western Community College, Looft Hall, 2700 College Road,

Council Bluffs, Iowa. Please arrive at 7:45 a.m. To register, call 712-325-3255. Courses offered: Environmental and Safety Compliance (Course No. Trade 99*03), Room 018, Looft Hall; Paperwork, Paperwork, Paperwork (Course No. Trade 99*02), Room 023, Looft Hall; Carknowlogy: Financing Regulations and Responsibilities (Course No. Trade 99*01), Room 016, Looft Hall

Thursday, Aug. 9, 2012, noon-5 p.m.: Kirkwood Community College, The Kirkwood Center, 7725 Kirkwood Blvd. SW, Cedar Rapids, Iowa. Please arrive at 11:45 a.m. To register, call 319-398-1022 or 800-332-8833. Course offered: Paperwork, Paperwork, Paperwork (Course No. CBBC-2050-25426), Room 123

Friday, Aug. 10, 2012, 8 a.m.-1 p.m.: Kirkwood Community College, The Kirkwood Center, 7725 Kirkwood Blvd. SW, Cedar Rapids, Iowa. Please arrive at 7:45 a.m. To register, call 319-398-1022 or 800-332-8833. Courses offered: Environmental and Safety Compliance (Course No. CBBC-2015-25432), Room 124; Carknowlogy: Financing Regulations and Responsibilities (Course No. CBBC-2060-25428), Room 123; Compliance Tools for Buy Here-Pay Here Dealers (Course No. CBBC-2040-25430) Room 129

Thursday, Aug. 16, 2012, noon-5 p.m.: Scott Community College, Urban Center, 306 West River Drive, Davenport, Iowa. Please arrive at 11:45 a.m. To register, call 563-441-4100 or 888-336-3907. Course offered: Paperwork, Paperwork, Paperwork (Course No. 106166), Room 204

Friday, Aug. 17, 2012, 8 a.m.-1 p.m.: Scott Community College, Urban Center, 306 West River Drive, Davenport, Iowa. Please arrive at 7:45 a.m. To register, call 563-441-4100 or 888-336-3907. Courses offered: Environmental and Safety Compliance (Course No. 106172), Room 212; Carknowlogy: Financing Regulations and Responsibilities (Course No. 106168), Room 206; Compliance Tools for Buy Here-Pay Here Dealers (Course No. 106170), Room 210

Friday, Aug. 24, 2012, 8 a.m.-1 p.m.: Western Iowa Tech Community College, 4647 Stone Avenue, Sioux City, Iowa. Please arrive at 7:45 a.m. To register, call 712-274-6404. Courses offered: Carknowlogy: Financing Regulations and Responsibilities (Course No. 13/FY CPCE 1117-01), Room L-416, Advanced Sciences Building; Environmental and Safety Compliance (Course No. 13/FY CPCE 1115-01), Room B-221, Corporate College Building; Paperwork, Paperwork, Paperwork (Course No. 13/FY CPCE 1116-01), Room L-417, Advanced Sciences Building

Thursday, Sept. 6, 2012, noon-5 p.m.: Iowa Valley Community College District, 3702 South Center Street, Marshalltown, Iowa. Please arrive at 11:45 a.m. To register, call 641-752-4645 or 800-284-4823. Course offered: Paperwork, Paperwork, Paperwork, (Course No. BUP 2278-013 Room 608

Friday, Sept. 7, 2012, 8 a.m.-1 p.m.: Iowa Valley Community College District, 3702 South Center Street, Marshalltown, Iowa. Please arrive at 7:45 a.m. To register, call 641-752-4645 or 800-284-4823. Courses offered: Carknowlogy (Course No. BUP 2278 014), Financing Regulations and Responsibilities, Room 608; Compliance Tools for

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Buy Here-Pay Here Dealers (Course No. BUP 2278-015), Room 610; Environmental and Safety Compliance (Course No. BUP 2278 – 016), Room No. 612

Thursday, Sept. 13, 2012, noon-5 p.m.: Indian Hills Community College, Bennett Student Services Center, 623 Indian Hills Drive, Ottumwa, Iowa. Please arrive at 11:45 a.m. To register, call 641-683-5249 or 800-346-4413. Course offered: Paperwork, Paperwork, Paperwork (Course No. 13/YR*REL*2906*501), Room 100

Friday, Sept. 14, 2012, 8 a.m.-1 p.m.: Indian Hills Community College, Advanced Technology Center, 626 Indian Hills Drive, Ottumwa, Iowa. Please arrive at 7:45 a.m. To register, call 641-683-5249 or 800-346-4413. Courses offered: Carknowlogy: Financing Regulations and Responsibilities (Course No. 13/YR*REL*2904*501), Room 132; Compliance Tools for Buy Here-Pay Here Dealers (Course No. 13/YR*REL*2902*501), Room 134; Environmental and Safety Compliance (Course No. 13/YR*REL*2903*501), Room 132

Thursday, Sept. 20, 2012, noon-5 p.m.: Iowa Central Community College, Career Education Building, One Triton Circle, Fort Dodge, Iowa. Please arrive at 11:45 a.m. To register, call 515-574-1293 or 800-362-2793, Ext. 1293. Courses offered: Paperwork, Paperwork, Paperwork (Course No. ZSR-101-FD04), Room 110; Compliance Tools for Buy Here-Pay Here Dealers (Course No. ZSR-101-FD02), Room 108

Friday, Sept. 21, 2012, 8 a.m.-1 p.m.: Iowa Central Community College, Career Education Building, One Triton Circle, Fort Dodge, Iowa. Please arrive at 7:45 a.m. To register, call 515-574-1293 or 800-362-2793, Ext. 1293. Courses offered: Carknowlogy: Financing Regulations and Responsibilities (Course No. ZSR-101-FD01), Room 108; Environmental and Safety Compliance (Course No. ZSR-101-FD03), Room 110

Friday, Sept. 28, 2012, 8 a.m.-1 p.m.: Northeast Iowa Community College, Dairy Center, 1527 Highway 150 South, Calmar, Iowa. Please arrive at 7:45 a.m. To register, call 800-728-2256, Ext. 399. Courses offered: Carknowlogy: Financing Regulations and Responsibilities (Course No. 13282), Room 115; Environmental and Safety Compliance (Course No. 13283), Room 113; Paperwork, Paperwork, Paperwork (Course No. 13284), Room 112

Thursday, Oct. 11, 2012, noon-5 p.m.: Hawkeye Community College, Center for Business and Industry, 5330 Nordic Drive, Cedar Falls, Iowa. Please arrive at 11:45 a.m. To register, call 319-277-2490. Course offered: Paperwork, Paperwork, Paperwork, Room C-104

Friday, Oct. 12, 2012, 8 a.m.-1 p.m.: Hawkeye Community College, Center for Business and Industry, 5330 Nordic Drive, Cedar Falls, Iowa. Please arrive at 7:45 a.m. To register, call 319-277-2490. Courses offered: Environmental and Safety Compliance, Room C-101; Carknowlogy: Financing Regulations and Responsibilities, Room L-108; Compliance Tools for Buy Here-Pay Here Dealers, Room C-104Thursday, Oct. 18, 2012, noon-5 p.m.: Southwestern Community College, 1501 W. Townline Street, Creston, Iowa. Please arrive at 11:45 a.m. To register, call 641-782-1441 or 641-782-1449. Courses offered: Paperwork, Paperwork, Paperwork; Carknowlogy: Financing Regulations and Responsibilities

Friday, Oct. 19, 2012, 8 a.m.-1 p.m.: Southwestern Community College, 1501 W. Townline Street, Creston, Iowa. Please arrive at 7:45 a.m. To register, call 641-782-1441 or 641-782-1449. Courses offered: Environmental and Safety Compliance; Compliance Tools for Buy Here-Pay Here Dealers

Friday, Oct. 26, 2012, 8 a.m.-1 p.m.: Northwest Community College, 603 W. Park Street, Sheldon, Iowa. Please arrive at 7:45 a.m. To register, call 800-352-4907, Ext. 193, ask for Continuing Education. Courses offered: Carknowlogy: Financing Regulations and Responsibilities (Course No. 28915), Room 305, Building C; Environmental and Safety Compliance (Course No. 28916), Room 341, Building C; Paperwork, Paperwork, Paperwork (Course No. 28914), Auditorium, Building C

Thursday Nov. 1, 2012, noon-5pm (arrive at 11:45 am): North Iowa Area Community College, Muse-Norris Conference Center, 500 College Drive, Mason City, Iowa. Please arrive at 7:45 a.m. To register, call 888-466-4222, ext. 4358, or 641-422-4358. Course offered: Paperwork, Paperwork, Paperwork (Course No. 89057), Room NC 180

Friday, Nov. 2, 2012, 8 a.m.-1 p.m.: North Iowa Area Community College, Muse-Norris Conference Center, 500 College Drive, Mason City, Iowa. Please arrive at 7:45 a.m. To register, call 888-466-4222, ext. 4358, or 641-422-4358. Courses offered: Carknowlogy: Financing Regulations and Responsibilities (Course No. 80959), Room NC 180; Compliance Tools for Buy Here-Pay Here Dealers (Course No. 80960), Room NC 180; Environmental and Safety Compliance (Course No. 80964), Room NC 180

Thursday, Nov. 8, 2012, noon-5 p.m.: Southeastern Community College, Center for Business-River Park Place, 610 North 4th Street, Burlington, Iowa. Please arrive at 11:45 a.m. To register, call 319-208-5375 or 866-722-4692, Ext. 5375. Courses offered: Paperwork, Paperwork, Paperwork (Course No. 32683), Room 103; Carknowlogy: Financing Regulations and Responsibilities (Course No. 32684), Room 111

Friday, Nov. 9, 2012, 8 a.m.-1 p.m.: Southeastern Community College, Center for Business-River Park Place, 610 North 4th Street, Burlington, Iowa. Please arrive at 7:45 a.m. To register, call 319-208-5375 or 866-722-4692, Ext. 5375. Courses offered: Compliance Tools for Buy Here-Pay Here Dealers (Course No. 32686), Room 111; Environmental and Safety Compliance (Course No. 32685), Room 103

Friday, Nov. 16, 2012, 8 a.m.-1 p.m.: Western Iowa Tech Community College, 4647 Stone Avenue, Sioux City, Iowa. Please arrive at 7:45 a.m. To register, call 712-274-6404. Courses offered: Carknowlogy: Financing Regulations and Responsibilities (Course No. 13/FY CPCE 1117-02), Room L-416, Advanced Sciences Building; Compliance Tools for Buy Here-Pay Here Dealers (Course No. 13/FY CPCE 1118-01), Room L-417, Advanced Sciences Building; Environmental and Safety Compliance (Course No. 13/FY CPCE 1115-02), Room B-221, Corporate College Building

Friday, Nov. 30, 2012, 8 a.m.-1 p.m.: Northeast Iowa Community College, Town Clock Center, Suite 1, 700 Main Street, Dubuque, Iowa. Please arrive at 7:45 a.m. To register, call 563-557-8271, ext. 380. Courses offered: Environmental and Safety Compliance (Course No. 13299), Room 106-C; Carknowlogy: Financing Regulations and Responsibilities (Course No. 13297), Room 106-A; Compliance Tools for Buy Here-Pay Here Dealers (Course No. 13304), Room 106-B

Monday, Dec. 3, 2012, noon-5 p.m.: Iowa Western Community College, Looft Hall, 2700 College Road, Council Bluffs, Iowa. Please arrive at 11:45 a.m. To register, call 712-325-3255. Courses offered: Carknowlogy: Financing Regulations and Responsibilities (Course No. Trade 99*06), Room 016, Looft Hall; Compliance Tools for Buy Here-Pay Here Dealers (Course No. Trade 99*04), Room 023, Looft Hall; Environmental and Safety Compliance (Course No. Trade 99*05), Room 018, Looft Hall

Tuesday, Dec. 4, 2012, noon-5 p.m.: Iowa Western Community College, Looft Hall, 2700 College Road, Council Bluffs, Iowa. Please arrive at 11:45 a.m. To register, call 712-325-3255. Course offered: Paperwork, Paperwork, Paperwork (Course No. Trade 99*07), Room 023, Looft Hall

Tuesday, Dec. 4, 2012, 8 a.m.-1 p.m.: Des Moines Area Community College, FFA Building, 2006 S. Ankeny Blvd., Ankeny, Iowa. Please arrive at 7:45 a.m. To register, call 515-964-6800 or 800-342-0033. Course offered: Environmental and Safety Compliance (Course No. 16170), Rooms 114 and 115, FFA Building

Thursday, Dec. 6, 2012, noon-5 p.m.: Scott Community College, Urban Center, 306 West River Drive, Davenport, Iowa. Please arrive at 11:45 a.m. To register, call 563-441-4100 or 888-336-3907. Course offered: Paperwork, Paperwork, Paperwork (Course No. 106167), Room 204

Friday, Dec. 7, 2012, 8 a.m.-1 p.m.: Scott Community College, Urban Center, 306 West River Drive, Davenport, Iowa. Please arrive at 7:45 a.m. To register, call 563-441-4100 or 888-336-3907. Courses offered: Environmental and Safety Compliance (Course No. 106173), Room 210; Carknowlogy: Financing Regulations and Responsibilities (Course No. 106169), Room 206; Compliance Tools for Buy Here-Pay Here Dealers (Course No. 106171), Room 212

Monday, Dec. 10, 2012, 8 a.m.-1 p.m.: Des Moines Area Community College, FFA Building, 2006 S. Ankeny Blvd., Ankeny, Iowa. Please arrive at 7:45 a.m. To register, call 515-964-6800 or 800-342-0033. Courses offered: Paperwork, Paperwork, Paperwork (Course No. 16168), Rooms 112 and 113, FFA Building; Compliance Tools for Buy Here-Pay Here Dealers (Course No. 16169), Rooms 112 and 113, FFA Building; Carknowlogy: Financing Regulations and Responsibilities (Course No. 16167), Rooms 114 and 115, FFA Building

Thursday, Dec. 13, 2012, noon-5 p.m.: Kirkwood Community College, The Kirkwood Center, 7725 Kirkwood Blvd. SW, Cedar Rapids, Iowa. Please arrive at 11:45 a.m. To register, call 319-398-1022 or 800-332-8833. Course offered: Paperwork, Paperwork, Paperwork (Course No. CBBC-2050-25427), Room 123

Friday, Dec. 14, 2012, 8 a.m.-1 p.m.: Kirkwood Community College, The Kirkwood Center, 7725 Kirkwood Blvd. SW, Cedar Rapids, Iowa. Please arrive at 7:45 a.m. To register, call 319-398-1022 or 800-332-8833. Courses offered: Carknowlogy: Financing Regulations and Responsibilities (Course No. CBBC-2060-25429), Room 122; Compliance Tools for Buy Here-Pay Here Dealers (Course No. CBBC-2040-25431), Room 123

Tuesday, Dec. 18, 2012, 8 a.m.-1 p.m.: Kirkwood Community College, The Kirkwood Center, 7725 Kirkwood Blvd. SW, Cedar Rapids, Iowa. Please arrive at 7:45 a.m. To register, call 319-398-1022 or 800-332-8833. Course offered: Environmental and Safety Compliance (Course No. CBBC-2015-25433), Room 124

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According to sales statistics for the first quarter of 2012, shipments of desktop and laptop PCs fell another 5 percent, and tablets and smartphones are cannibalizing PC sales by 50 percent.

Just another reason for car dealerships to optimize websites for mobile devices and include mobile advertising in their monthly budget.

Many mobile users are cruising classified sites and social media sites from their smart devices. Therefore, it is imperative for car dealers to get inventory on all of those sites, such as Craigslist and Backpage. Those classified sites are growing rapidly with inventory and shoppers, and since posting on them is free, the return on investment is phenomenal.

In its Internet and American Life Project, in a study called “Americans and Their Cellphones,” the Pew Research Center found mobile phones have become a nearly ubiquitous tool for information-seeking and communicating – 83 percent of American adults own some kind of cellphone – and they have an impact on many aspects of their owners’ daily lives.

Cellphones are useful for quick information retrieval, so much so that their absence can cause problems. More than half of all adult cell owners had used their phone at least once to get information they needed right away. More than one fourth said they experienced a situation in the previous month in which they had trouble doing something because they did not have their phone at hand.

Cellphones are important tools in emergency situations – 40 percent of cell owners said they found themselves in an emergency in which having their phone with them helped. Cell phones can help stave off boredom – 42 percent of cell owners used their phone for entertainment when they were bored.

Despite the advantages, some cellphone owners need an occasional break – 29 percent of cell owners turned their phone

off for a period of time just to get a break from using it. Even the advantages can cause frustration – 20 percent of cell owners experienced frustration because their phone was taking too long to download something, 16 percent had difficulty reading something on their phone because the screen was too small and 10 percent had difficulty entering a lot of text on their phone.

Cellphones can help prevent unwanted personal interactions – 13 percent of cell owners pretended to be using their phone in order to avoid interacting with people around them.

Text messaging and picture-taking continue to top the list of ways Americans use their mobile phones, with 75 percent of all cell owners using their phones for those purposes. Other relatively common activities include sending photos or videos to others (54 percent of cell owners do this) as well as accessing the Internet (44 percent)

Thirty-five percent of American adults own a smartphone of some kind, and they take advantage of a wide range of their phones’ capabilities. Nine of 10 smartphone owners use text messaging or take pictures with their phones, and eight in 10 use the phone to go online or send photos or videos to others. Many activities — downloading apps, watching videos, accessing social networking sites or posting multimedia content online — are almost entirely confined to the smartphone population.

The statistics make it easy to see that mobile advertising is becoming increasingly important, and focusing on rich media advertising is even more important. Rich media ads offer more in-app interactivity via video, sound, gaming and so on.

The aesthetic value is an obvious advantage that will attract advertisers and ad creators. Furthermore, with the growing adoption of smartphones as the device of choice, rich media is the natural

progression toward more engaging ads on free sites, which captures a captive audience. The engagement rates are as high as 33 percent on rich media ads.

If a car dealership depends on its web presence in any way, it’s important to start thinking about mobile now. Check how the website looks and works – or doesn’t – on mobile devices. Mobile Internet use is growing faster than anyone realizes.

Don’t wait until 75 percent of your website visitors are using handhelds. That’s like waiting until most of your backyard is on fire before grabbing a water hose.

Start thinking now about how to make your website work hard for you on mobile devices, as well as getting ads developed for your dealership to run mobile campaigns. Mobile campaigns are used widely by manufacturers but can be brought to a local level with some geo-specific targeting. That means ads can be targeted to certain zip codes to run in your local area in order to attract more local business for your sales and service department.

Running coupon ads, loss leaders and teaser ads on mobile devices seem to be the most effective ways to attract local customers. The use of QR codes in paper advertisements can drive customers to either a mobile landing page or a video about your sales or service specials.

With the explosion of Internet video consumption, it is confirmed mobile video has largely been adopted. While video isn’t a huge focus for advertisers right now – many cite broadband and technology inadequacies as barriers – many static stats tell the story of video’s increasing importance for car dealers and salesmen.

Mobile Advertising a Must for Car Dealers

D O N ’ T WA I T U N T I L 7 5 P E RC E N T O F YO U R W E B S I T E V I S I T O R S A R E U S I N G H A N D H E L D S .

BY DANI LUNSFORDDANI LUNSFORD IS A 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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MIDWEST AUTO AUCTION DIRECTORYADESA DES MOINES1800 Gateway DriveGrimes, IA 50111(515) 986-1200Fax: (515) 986-1201www.adesa.comGeneral Manager: Jeff LisleFleet/Lease Manager: Kevin ParmenterConsignment Sale every Tuesday at 9:30 a.m.Fleet/Lease Sale Tuesday 10:30 a.m.

ADESA KANSAS CITY101 S.W. Oldham RoadLee’s Summit, MO 64081(816) 525-1100(800) 950-2350Fax: (816) 525-4714General Manager: Harold ChapmanDealer Sales Manager: Tamara Kunkel Tuesday 9:30 a.m.

ADESA MINNEAPOLIS18270 Territorial RoadDayton, MN 55369763-428-8777763-428-8701Sale: Tuesday, 10 a.m.www.adesa.com

ADESA SIOUX FALLS46893 271st StreetP.O. Box 218Tea, SD 57064(605) 368-5364 Fax: (605) 368-2808 General Manager: Bob HolmWednesday Sale 10:00 a.m. IAAI SALVAGE SALE EVERY OTHER WEDNESDAY – 8:30 A.M.

ADESA ST.LOUIS7858 Highway 61-67Barnhart, Missouri 63012636-475-9311

ADESA WISCONSINW 10415 State Road 33Portage, WI 53901608-742-8245608-742-4415 (f)Tony Manwarren, general managerSale: Thursday, 9:30 a.m.www.adesa.com

AMERICAS AUTO AUCTION14001 S. KarlovCrestwood, Il 60445(708) 389-4488Fax: (708) 389-4558General Manage/Owner: Larry Hero Wednesday 10 a.m.

DEALERS CHOICE AUTO AUCTION, INC.503 South Wapello RoadMediapolis, IA 52637(319) 394-3510(888) 771-6810Fax: (319) 394-3511www.dcaa.comPresident: Monte DelzellNationwide Transportation:EZ Auto ShoppersSteve Miller – (866) 310-5936Fleet/Lease Manager: Kerri WilkersonConsignment Sale every Tuesday at 6 p.m. Fleet/Lease Sale Tuesday 6 p.m. Group SalesDealer Sales 6 p.m. as scheduled.

DES MOINES AUTO AUCTION1530 S.E. McKinley RoadDes Moines, Iowa 50320(515) 285-8911 Fax: (515)256-9161FRIDAY AT 9:30 A.M. Todd Givant, General Manager

GREATER QUAD CITY AUTO AUCTION4015 78th AvenueMilan, Il 61264(309) 787-6300Fax: (309) 787-4541Tuesday 10 a.m. – Thursday – 6 p.m.General Manager: Larry Anderson

GREATER ROCKFORD AUTO AUCTION5937 Sandy Hollow RoadRockford, Il 61109(815) 874-7800(800) 830-4722Fax: (815) 874-1325 General Manager: Mark Capriola Wednesday 10 a.m.

KCI AUTO AUCTION11101 N. CongressKansas City, MO816-502-3318816-801-8565 (f)Doug DollConsignment Sale: Thursday,9:30 a.m. www.kciaa.com

MANHEIM ARENA ILLINOIS200 West Old Chicago DriveBolingbrook, Il 60440(630) 759-3800(630) 759-9668General Manager: John OlejniczakDealer Sales Manager: Louis Palermo Tuesday 9 a.m.

MANHEIM CHICAGO20401 COX AVENUEMATTESON, ILLINOIS 60443815-806-4222Mike Cesta, General Manager

MANHEIM KANSAS CITY3901 North Skiles RoadKansas City, MO 64161(800) 247-7163Fax: (816) 452-2393 General Manager: Peggy SprengerDealer Sales Manager: Kevin Rhoads Wednesday 9:30 a.m.

MANHEIM MINNEAPOLIS 8001 Jefferson HighwayMaple Grove, MN 55369-4924(763) 425-7653(800) 622-7653Fax: (763) 493-0310www.manheim.comGeneral Manager: Jerry AmanAuction Manager: Carter TheissenAssistant General Manager: Jon EisenmannFleet Manager: Commercial Accounts MGR: Candice CrockettSale every Wednesday; 9am Ford Credit, 9:30am TD Auto Finance, Select Lane and Fleet/Lease/Rental Groups, 9:45am Dealer Consignment. Ford Factory Sale bi-weekly Wednesdays at 12 Noon. TRA Sale weekly, Tuesdays at 1:00pm. Specialty Sale (Heavy Trucks/Equipment/Powersports) bi-weekly, Wednesdays at 12:30pm.

MANHEIM MILWAUKEE561 South Highway 41 - 27th StreetCaledonia, WI 53108(262) 835-4436(800) 662-2947Fax: (262) 835-2684 General Manager: Dennis Worthy Dealer Sales Manager: Kimberly Schure Wednesay 9 a.m.

MANHEIM NORTHSTAR MINNESOTA4908 Valley Industrial Blvd. NorthShakopee, MN 55379(952) 445-5544(888) 445-2277Fax: (952) 445-6773General Manager: Jerry AmanThursday 9 a.m.

MANHEIM OMAHA9201 S. 144th StreetExit 440 off of I-80Omaha, NE 68138(402) 896-8000(800) 218-4192Fax: (402) 896-6758 General Manager: Todd Pfeifer Assist. Gen Manager: Korey Grell Thursday 9:30am.

MID-STATE AUTO AUCTION100 Bach Ave.New York Mills, MN218-385-3777218-385-3232 (f)Rob Thompson, presidentSale: Friday, 10 a.m.www.msaanym.com

MISSOURI AUTO DEALERS EXCHANGE5912 Mitchell Ave.St. Joseph, MO 64507816-232-7653816-232-3019 (f)Pam and Scott WallConsignment Sale: Wednesday, 5:45 p.m.www.moautoexchange.com

NEBRASKA AUTO AUCTION7500 N. 56TH St.Lincoln, NE 68514402-466-8477402-466-7932 (f)www.nebraskaautoauction.comDave LaFleurConsignment Sale: Tuesday, 10:30 a.m.

PLAZA AUTO AUCTION, INC.320 Highway 30 West P.O. Box 147Mt. Vernon, IA 52314(319) 895-6232Fax: (319) 895-6727www.plazaaa.comOwner: Mark GrebOffice Manager: Debbie WelshBecky Thuerauf: Fleet/Lease AdministrationConnie Van Ginkel: Consignment ManagerConsignment Sale every Wednesday at 6:30pm. Fleet/Lease/Repo Sale Wednesday at 7pm.

MANHEIM ST. LOUIS13813 St Charles Rock RoadBridgeton, MO 63044(314) 739-1300(800) 533-5414Fax: (314) 298-3347 General Manager: Victor Ferlaino

TRI-STATE AUTO AUCTIONJct. Highway 11 & 80P.O. Box 735Cuba City, WI 53807(608) 744-2020 (608) 744-3418(800) 356-0625Fax: (608) 744-7425 Owners/Managers: Gerald and Helen BrogleyThursday 6:30 p.m.

N E W 2 0 G RO U P P RO G R A M

After repeated requests from its members, the National Independent Automobile Dealers Association has announced it is entering the 20 Group business.

NIADA CEO Michael Linn announced the NIADA 20 Group program, which will organize and moderate groups of independent auto dealers from around the country to meet and share new ideas and best practices.

Linn said the move is being made after repeated requests from within the group’s membership of nearly 20,000. Dealers have voiced a strong desire to share best practices and operational data between the various member sets.

“NIADA members have historically been a tight-knit group of dealers. Developing a 20 Group platform for them to facilitate ideas and compare operational practices is a natural extension of their close relationships,” Linn said. “Additionally, we have mounting feedback from dealers participating in existing

20 Group models who feel their best interests are being underserved or even ignored. One dealer told me she felt the escalating cost to participate in her current 20 Group was not worth the combative discussions she endures or the pressure she gets to conform to their benchmarks.

“For 66 years as a nonprofit trade association, NIADA has represented the voice of independent auto dealers and has found ways to help them improve their businesses. I can assure you NIADA and our 20 Group program will always put the needs of our dealers first. We will never sacrifice the quality or service we provide our dealers.”The NIADA 20 Group program will be under the direction of Joe Lescota, who was recently introduced as NIADA’s new Director of Dealer Development, effective June 1.

“Even the most successful independent dealers are constantly seeking new ways to improve their businesses,” Lescota said. “They

know the slightest change in sales, financing, service or operational policy can have a major impact on their profitability. Our 20 Groups will be a great way for NIADA dealers to stay on track because colleagues will be there to prod, poke and encourage improved performance. The new platform will match dealers of like size, sales volume and revenue mix for maximized compatibility. They will share ideas and best practices and learn from one another regardless of size or geographical region.

“No independent dealer is too large or too small to contribute, learn and benefit from the collaborative dialogue of a 20 Group discussion. Every one of our members is encouraged to participate.”

The first phase of NIADA’s 20 Group format will focus on independent auto retail operations. More information will be available at the NIADA Convention & Expo in June at Caesars Palace in Las Vegas.

NIADA to Launch New 20 Group Program

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ADVANCED BUSINESS PRODUCTS, INC. Printing, Promotional Products, & WearablesContact: Scott Jayne PO Box 71547 Des Moines IA 50325Phone: 515-225-6343Toll Free: 888-464-2274Fax: 515-225-6510Toll Free Fax: 877-987-3514Website: www.go4abpi.com

ASHTON BONDING AGENCY7505 NE Ambassador Place, Suite APortland, OR 97220800-452-2663503-253-1353 (fax)[email protected]

ASSOCIATIONS MARKETING GROUP INCHealth Insurance Jesse Patton1112 Maple StreetWest Des Moines, Iowa 50265Toll Free: 800-798-6772Phone: 515-270-8178 Fax: 515-270-0398E-mail: [email protected]

AUTO OWNERS INSURANCE 10% DISCOUNT TO ALL IIADA MEMBERSCorcoran & Associates, Inc.Mick and Teresa Corcoran2525 E. Euclid, Suite 102Des Moines, Iowa 50317Phone: 515-262-3141Fax: 515-262-3086Toll Free: 877-518-4051E-mail: [email protected]

AUTO OWNERS INSURANCEEASTERN BORDER OF IOWAAmy GoodnightLOHMAN COMPANIES3901 15TH STREET DMOLINE, IL 61265800-747-8431309-764-5967 (fax)[email protected]

AUTOJINI.COMWebsites for Dealers Contact: Syed Azam310 Main Street Ste 201Ames IA 50010Phone: 515-232-2024E-mail: [email protected]

AUTOMOTIVE DEVELOPMENT GROUP, LLCDealer Compliance Education,F & I Compliance and Training, ServiceContracts, GAP and Protective CoatingsContact: Scott Erikson100 Prairie Center Drive, Suite 200Eden Prairie, Minnesota 55344Scott: (402) [email protected]

CITIZENS COMMUNITY CREDIT UNION2012-1ST AVENUE SOUTHFORT DODGE, IOWA 50501Phone: 515-955-5524, Ext. 202Fax: 515-955-8241

CORCORAN & ASSOCIATES INC.Various Types of InsuranceContact: Teresa Corcoran18-2nd St., N.E.Mason City, Iowa 50401Phone: 877-518-4051Phone: 515-262-3141Fax: 515-262-3086Email: [email protected]

CYCLONE AUTOMOTIVE TRAINING INC.F&I Training, Sales Training, Service Contracts, Rob Miller and Chris Hochstein515 N Jefferson Way Ste HIndianola IA 50125Phone: 515-962-0099 or 515-962-0100Fax: 515-961-8400Rob: 515-205-5900 cellChris: 515-205-5800 cellE-mail: [email protected]

FOLLOW-UP PLUS“Customers for Life”Repeat Sales, Referrals & Customer LoyaltyContact: Terry & Sue NewellP.O. Box 294Carthage IL 62321Ph: 888-353-2668Fax: 217-357-9076E-mail: [email protected]

FRAZER COMPUTING, INC.2564 W. Main St., P.O. Box 569Canton, New York 13617Phone: 888-963-5369Fax: 888-963-3366E-mail: [email protected] Rep: Mike Frazer -Dealer Management Software for Used Car Dealers

FRAZER COMPUTING, INC.Contact: Scott Erikson, Iowa Rep100 Prairie Center Drive, Suite 200Eden Prairie, Minnesota 55344Scott Erikson: [email protected]

GLOBE ACCEPTANCE INCSub-prime LenderContact: Sarah GrishamP.O. Box 65400West Des Moines, Iowa 50265Phone: [email protected] Website: www.GlobeAcceptance.com

GOLDSTAR GPS2093 20th Ave. S.E.DYERSVILLE, IOWA 52040PHONE: 866-655-8825 Ext. 120Fax: 866-655-8285Contact: Mark VanDykee-mail: [email protected]: www.goldstargps.com

GREATER IOWA CREDIT UNION1630 – 22nd StreetWest Des Moines, Iowa 50266-1407Gene Holtorf, Dealer Direct ManagerPh: 515-954-1666 F: [email protected]

INNOVATIVE DEALER SERVICES, INC.Dealer Software Management SystemsP.O. Box 23189Shawnee, Kansas 66283913-312-7344 – Ext. 11Fax: 810-821-1718Website: innovativedealer.comContact: Deems Peterson, Sales [email protected]

JR 5 TRANSPORTATIONTransport ServicesJohn Robinson, President1109 S.W. 63rd StreetDes Moines, Iowa 50312515-822-3447

NADA BOOKS Official Used Car Guides, Subscription Discounts, Annual Subscription through IIADA, Save $$ Contact IIADA at Phone: 641-755-4177E-mail: [email protected]

PROSOURCE FINANCE, LLC3126 1044th StreetUrbandale, Iowa 50322Jeff Rubino [email protected]

RELIABLE AUTO FINANCE INC. 954 28th St. SWP.O. Box 9700Grand Rapids, MI 49509800-814-9294Brian [email protected]

REYNOLDS & REYNOLDS INC.Dealer BondsLong Term Care InsuranceVarious types of insuranceContact: Dean M Clark300 Walnut Street Ste 200Des Moines IA 50309Phone: 515-243-1724Toll Free: 800-767-1724Fax: 515-243-6664E-mail: [email protected]

S & C AUTOMOTIVE, INC.Service Contracts, GAP, Aftermarket ProductsSales & F & I Training thru Star Training Group3828-70th StreetUrbandale, Iowa 50322515-276-9622800-776-9622515-276-8472 (fax)e-mail: [email protected]: www.scautoia.com Contact: Doug Eckhart

SECURITY AUTO LOANS (SAL)Sub-prime LenderContact: Scott Erikson/Joe Ruhland4900 Highway 169 N., Suite 205New Hope, Minnesota 55428P: 763-559-5892F: 763-559-7549website: www.securityal.com Scott: 402-639-0664e-mail:[email protected]: 612-804-0720e-mail: [email protected]

SMARTAUCTIONMatthew Mohler4300 SW Cambridge AvenueTopeka, Kansas [email protected] Iowa Rep: Seth Fair [email protected] 515-777-4592

WILSON DISTRIBUTOR SERVICE IIADA DEALER CAP FORMSCar Brite Products Forms, Detail Supplies, Equipment & More Jason & Lisa Goody 105 N McCoy Mt. Pleasant IA 52641Phone: 800-634-0974Fax: 319-385-2927 E-mail: [email protected]: www.wds-usa.com

ZURICH Garage Keepers, Property, Garage Liability Dealer Bonds7045 College Blvd.Overland Park, Kansas 66211Michael Novak – Western Iowa [email protected], Ext. 3909Scot Smith – Eastern Iowa [email protected] Free: 800-840-8842, Ext. 3944

APPROVED MEMBER BENEFIT PROVIDERS

CODE OF ETHICS We will have a general duty of integrity, honor and fair dealing toward the general public.

We will comply with all city, county, state and federal laws and shall endeavor to keep ourselves informed of those laws governing our business.

We will not intentionally injure the business reputation of another member or competitor. We will employ truth and accuracy in advertising and selling.

We will stand behind any guarantee given with the sale of a motor vehicle.

We will not perform any act which would bring disrepute to the motor vehicle industry.

We will expose or halt, where found, any scheme designed to deceive or defraud the automobile buying public and aid in prosecuting those guilty of such acts.

We will constantly strive to improve business methods to the end that the public will be better served.

We will encourage the American system of free enterprise.

MISSION STATEMENT The mission of the National Independent Automobile Dealers Association, the only national not-for-profit organization representing the independent motor vehicle industry, is to promote, educate and advance the independent motor vehicle dealer by: • Accumulating, processing and

disseminating information relative to the motor vehicle industry;

• Developing, compiling and providing to the consumer, information which will promote a better understanding of the independent motor vehicle dealers’ place in the economy;

• Providing relevant information to regulatory and lawmaking bodies so that they may have a better understanding of the possible effects of proposed laws, rules and regulations on the consumer and the motor vehicle industry;

• Assisting in the promotion and organization of local, state or regional independent motor vehicle dealer associations; and

• Anticipating, recognizing and responding to current and future issues and needs of the independent motor vehicle industry and the consumer.

HISTORY OF NIADANIADA was founded in 1946 to lobby for the repeal of rationing of tires and automotive parts after World War II. The efforts put forward by the organization under the leadership of founding President Charlie Hillard resulted in the successful repealing of those wartime restrictions by the end of 1947. To learn more about NIADA’s history, visit http://www.niada.com/about.php.

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The concept or image of the “complaint department” isn’t anything new, and has provided fodder for jokes and comic strips over the years. But the decision by the Consumer Financial Protection Bureau (CFPB) to expand its consumer complaint system to include complaints regarding vehicle and consumer loans is no laughing matter.

If you haven’t been to the site yet, consider taking a look. The site, www.consumerfinance.gov/complaint, makes it very easy for anyone to register a complaint. It asks for a description of what happened, the desired resolution and the parties and products involved.

The CFPB’s decision to start accepting and reviewing complaints related to vehicle loans should get your attention for a few reasons. First and foremost, it signals that the CFPB is gaining momentum and is ready to try to identify

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

Reducing the Impact of Consumer Complaintsand resolve current problems in the industry – and to prevent future ones.

Second, the complaint process opens a whole litany of questions about how the CFPB will respond to complaints and how dealers will be involved. We don’t know much about the process yet, but hope the CFPB will provide more detail soon.

For now, the question all dealers should be asking themselves is, “How do I avoid complaints in the first place?”

It seems consumer finance complaints can originate in at least three ways:

• You did something wrong and the customer complains about it.

• The customer didn’t understand the agreement and thinks you did something wrong as a result.

• You did everything right, but the customer has unreasonable expectations and complains.

You can take steps to avoid or reduce the impact of all three scenarios, particularly when it comes to finance and insurance (F&I) processes.

You did something wrongCustomers should complain if you

misrepresent, overstate or lie about the products and services you provide or the nature, reason and amount of charges. If you are running your business that way – or you have a renegade employee who is committing such acts – you should expect whatever consumer complaints, lawsuits and/or criminal charges come your way.

The complaints and the liability they bring can be avoided if you run an honest and high-integrity business. You also need internal oversight, management and audit processes to help discover and eliminate any employee misconduct.

Customer didn’t understand Some reported court cases I’ve

read seem to be based on a lack of consumer understanding that spun out of control. The dealer didn’t necessarily do anything wrong, but the consumer seemed surprised at having to pay for cover insurance, or the gap amount, or having a vehicle repossessed, or any of a number of other predictable outcomes. The financing documents generally cover the fees, responsibilities and consequences, but the consumer didn’t

read or understand them until long after the documents were signed.

In one recent case, the consumer asserted he hadn’t read the retail sales contract or been given time to read it. He said he simply signed and initialed where he was told to. He later complained and sued regarding a number of obligations he hadn’t understood, and the lawsuit didn’t turn out well for the dealer.

One strategy to avoid this would be to take the time at closing to educate the consumer. You could point out key provisions of the documents, such as late payment provisions, failure to insure, and conditions of and consequences of default. You could emphasize the importance of reading the documents and asking questions before signing, and back it up with a willingness to give consumers time to read and ask basic questions.

The idea is, if you tell the consumer what happens on default, he or she is not surprised – and is less likely to complain – if the car is repossessed.

Customer is unreasonableThere will always be unreasonable

customers whose expectations far exceed the terms of your sales agreements, warranties and commercial reasonableness. With those folks, you might not be able to avoid complaints. However, a regulator is more likely to conclude that a complaint is unreasonable if its investigation shows you run an honest, high-integrity business, have compliant processes and documentation in place, work hard to educate customers and set appropriate expectations.

While you can’t always please everyone, running a high-integrity business and educating your customers will undoubtedly help prevent customer complaints. The more positive view is that you won’t just be avoiding complaints and mitigating reputational risk, you will be building customer satisfaction and retention.

Either way, it’s an investment well worth making.

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

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Documents

IIADA Street Smart