Indiana Car Lines

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

JUNE 2012

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Golf TournamentT R A D E S H O W / A W A R D S D A YSunday, September 9th •Ironwood Golf Club Fishers, IN

25th Anniversary

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

25CELEBRATING

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

CAR LINESINDIANA

• MOBILE ADVERTISING A MUST FOR DEALERS • THE CARLAWYER• THE NEW NIADA CPO PROGRAM

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Congratulations to the following independent dealerships for being nominated for this year’s NIADA/Manheim National Community Service Award.

Independent dealerships across the nation contribute to their communities every day but often go unrecognized for their community support. Many participate through special projects while others provide sponsorships or financial contributions, or lead innovative community improvement activities.

The winning dealership will be named June 13 at the Leadership Awards Banquet during the National Independent Automobile Dealers Association Convention and Expo in Las Vegas. Manheim representatives will present the award along with a $5,000 check payable to the dealership’s chosen charity.

Community Service Award Nominees

The 2012 nominees are:ERTLE BROTHERS DISCOUNT AUTO, STERLING, COLO.NOEGEL’S AUTO SALES, STARKE, FLA.SOUTHEAST CAR AGENCY, INC., GAINESVILLE, FLA.MATTHEWS MOTORS, CLAYTON, N.C.A-1 AUTO SALES OF DULLES, STERLING, VA.REEL’S AUTO SALES, ORWELL, OHIOBOURNE’S AUTO CENTER, SOUTH EASTON, MASS.FRAN MORELLI SALES & SERVICE, BROCKWAY, PA.ED HOLEWIAK’S AUTO SALES, SOMERSET, MASS.PREMIER MOTORS-LEASING, INC., HARDIN, KY.RON’S AUTO SALES, INC., LAWRENCEVILLE, GA.M&F AUTO SALES, ALBUQUERQUE, N.M.ALAMO VALLEY AUTO SALES, KALAMAZOO, MICH.SOUTH TACOMA AUTO SALES, INC., TACOMA, WASH.FAIRLY RELIABLE BOB’S, INC., BOISE, IDAHO

GAS PRICE SCENARIO $4.00 $4.50 $5.00

NADA Used Car Guide Chart I M PAC T O F T H E R I S I N G C O S T O F G A S O N U S E D V E H I C L E P R I C E S E X P E C T E D C H A N G E I N U S E D V E H I C L E P R I C E U N D E R C E R TA I N G A S P R I C E S C E N A R I O S

S O U RC E | NADA Used Car Guide

SEGMENT % $ % $ % $ INTERMEDIATE COMPACT 1.7% $179 6.0% $638 10.4% $1,102INTERMEDIATE MIDSIZE 0.8% $103 2.1% $262 1.8% $233NEAR LUXURY 0.3% $69 -0.2% -$38 -3.0% -$650LARGE CAR 0.3% $39 -0.3% -$34 -3.2% -$415COMPACT UTILITY -0.3% -$37 -2.8% -$408 -8.7% -$1,272LUXURY MIDSIZE -0.3% -$73 -2.9% -$751 -9.0% -$2,313MIDSIZE VAN -0.4% -$49 -3.2% -$453 -9.7% -$1,355MIDSIZE UTILITY -1.0% -$188 -6.4% -$1,144 -16.5% -$2,959LARGE PICKUP -1.5% -$275 -8.6% -$1,540 -21.3% -$3,817LARGE SUV -1.6% -$387 -8.9% -$2,148 -22.0% -$5,298

NOMINATE A DEALER FOR IIADA’S 2012 QUALITY DEALER OF THE YEAR TO REQUEST

AN APPLICATION, EMAIL IIADA COMCAST.NET

OR CALL 800.310.3112APPLICATION DEADLINE:

JULY 1, 2012

Applications are now being accepted for Indiana’s 2012 Quality Dealer of the Year.

The winner will represent Indiana at the 2013 NIADA Convention & Expo in Las Vegas and compete for the coveted NIADA Quality Dealer of the Year Award. The public recognition and prestige associated with the award can produce many benefits for your dealership.Our 2012 Indiana Quality Dealer of the Year will be named and recognized at our 25th Anniversary Golf Tournament and Awards Day on Sept. 9.Eligibility: Dealers must be nominated by an IIADA member or sponsor.

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WHAT’S NEW

MAGAZINE CONTENTS

ADVERTISERS INDEX

03 Nominate a Dealer06 The CarLawyer12 Mobile Ads a Must for Dealers 14 IIADA Golf Tournament & Sponsorship16 New NIADA CPO Program18 Associate Members / New & Renew 22 Rentals Can Drive Sales

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

IIADA OFFICE

ADESA ...................................... Inside Front CoverAlly ..................................................................... 7AutoTrader.com ....................................Back CoverDyer Auto Auction .............................................13Indiana Auto Auction ..........................................10Kesler-Schaefer Auto Auction .............................. 9Manheim.com ............................ Inside Back CoverManheim Indianapolis ......................................12NIADA Certified ..................................................17Nowcom .............................................................5United Acceptance ............................................ 11Voisys ...............................................................22

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Person to Contact:Dail Hughes, ID#02-37367Tax Law SpecialistTelephone Numbers:1(866)270-0733 option# 3 or(313)2346146Refer Reply to:SE: S:/FBSA:PO:DCC: CTRSG120487Date: April 5, 2012

Dear Sir or Madam,The Financial Crimes Enforcement

Network (FinCEN), via the Internal Revenue Service Enterprise Computing Center-Detroit (ECC-D), has received the Form(s) 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, dated February 27, 2012. We are unable to process the Form(s) 8300 because you did not submit the correct form version. FinCEN updates

Bank Secrecy Act forms approximately every three years and financial institutions must submit the most current version of a form. Please resubmit the form(s) as soon as possible and no later than 10 business days upon receipt of this letter. Failure to properly file a BSA form may result in fines or other penalties.

If you need to resubmit this form(s) on paper, please visit FinCEN’s website to obtain and download the most current version of the form: http://www.fincen.gov/forms/bsaforms/. Make sure that you mail the form(s) to the address identified in the “When and Where to File” section of the particular form. Do not mail the form(s) to the address at the top of this letter.

If you have any questions about this letter, please contact Dail Hughes @ 1 (866) 270-0733 option #3.

Thank you for your assistance.

DEPARTMENT OF THE TREASURYIRS ENTERPRISE COMPUTING CENTERP.O. BOX 33116DETROIT, MI 48232-0116

25CELEBRATING

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BOARD OF DIRECTORSIIADA EXECUTIVE DIRECTORDebbie AndersenP.O. Box 1393Crown Point, IN 46308Phone: (800) 310-3112Fax: (219) [email protected]

CHAIRMAN OF THE BOARDDave Allen (Crockett)

VICE PRESIDENT Fritz KreutzingerFritz AssociatesP.O. Box 168Fishers, IN 46038 Phone: (317) 842-2228Fax: (317) [email protected]

SECRETARYTricia TrentTrent Auto Sales1327 N 6th Street Vincennes, IN 47591 Phone: (812) 882-3772Fax: (812) [email protected]

TREASURERBruce NortonDrive1USA1512 W 96th Avenue, Suite C Crown Point, IN 46307Phone: (219) 661-1000Fax: (219) [email protected]

Jennifer CottonDyer Auto AuctionP.O. Box 115 Dyer, IN 46113-0115 Phone: (219) 865-2361Fax: (219) [email protected]

Kim GrahamKim Graham, Inc.1648 A US 31 SGreenwood, IN 46143Phone: (317) 888-0100Fax: (317) [email protected]

Ed WhiteWhite’s Auto Sales1105 McKinley Avenue Rensselaer, IN 47978Phone: (219) 866-7553Fax: (219) [email protected]

Tony HoukKesler-Schaefer Auto Auction, Inc. 5333 W. 46h StreetIndianapolis, IN 46253Phone: (317) 297-2300(800) [email protected]

Tyler TrentTrent Auto Sales1327 N 6th Street Vincennes, IN 47591Phone: (812) 882-3772Fax: (812) [email protected]

Harold DreesH.T.D., Inc.200 E Main StreetThorntown, IN 46071Phone: (317) 402-2312Fax: (765) [email protected]

Tony Del RealDel Real Auto Sales3857 State Road 38 ELafayette, IN 47905Phone: (765) 446-9204Fax: (765) [email protected]

John StumpfGreater Kalamazoo Auto AuctionP O Box 697Schoolcraft, MI 49087Phone: (574)876.6145

Doug AlveyFirst Class Auto Sales, Inc695 W 900SHebron, IN 46341Phone: (219) 996-2600Fax: (219) [email protected] Sharon BrennanFritz in Fishers8599 E 116th StreetFishers, IN 46038Phone: (317) 842-2228Fax: (317) [email protected]

Andrew J. InabnittApproval Auto Credit Inc.9825 Huggin Hollow Rd.Martinsville, IN 46151Phone: (317) 422-8001Fax: (317) 422-8020

David D. Baldwin IIBest Deal Auto Sales, Inc.1875 SR 8Auburn, IN 46706Phone: (260) [email protected]

Andy ZayZay Leasing & Rentals4957 N. BroadwayHuntington, IN 46750(260) [email protected]

Travis HuberThe Auto Store5474 US Hwy 6, Suite APortage, IN 46368Phone: [email protected]

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

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.

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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

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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.

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

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Looking for “green” cars? Go west.California boasts the most shoppers looking for

vehicles with fuel efficiency ratings of 40 miles per gallon or better, according to research by Cars.com. The data, taken from Cars.com searches, also showed Southern states were the “least green.”

“There’s a perception that Californians are more eco-conscious, and our car shopping data shows that’s true,” Cars.com editor-in-chief Patrick Olsen said. “With more charging stations than any other state and dedicated car-pool lanes, it’s easy to understand why manufacturers typically choose California as the place to launch their new green vehicles.

“The hard workers in the South need their pickup trucks. For these workers, a hybrid or fuel-efficient vehicle would likely be a second car, and that’s just not as feasible for many in this economy.”

The website also ranked the cities and towns with the most and least fuel-efficient vehicle shoppers. Not surprisingly, California dominated the most green list with six of the top 10 cities, led by the San Francisco Bay area, while five Southern markets were among the 10 with the fewest 40-mpg cars, with Midland-Odessa, Texas at the top.

Who Buys the “Greenest” Cars? Does the West Coast Boast More Eco-Friendly Drivers?

Eco

- Frie

ndly

The top 10 eco-friendly cities: 1. San Francisco-Oakland-San Jose, Calif. 2. Madison, Wis. 3. Monterey-Salinas, Calif. 4. Portland, Ore. 5. San Diego, Calif. 6. Green Bay-Appleton, Wis. 7. Santa Maria-Santa Barbara San Luis Obispo, Calif. 8. Sacramento-Stockton-Modesto, Calif. 9. Chico-Redding, Calif. 10. Zanesville, Ohio

The 10 with the fewest green car shoppers:1. Odessa-Midland, Texas 2. Laredo, Texas 3. Fairbanks, Alaska 4. Albany, Ga. 5. Bluefield-Beckley-Oakhill, Va./W. Va. 6. Glendive, Mont. 7. Helena, Mont. 8. Columbus-Tupelo-West Point, Ala./Miss. 9. Casper-Riverton, Wyo. 10. Baton Rouge, La.

T H E R E ’ S A P E RC E P T I O N T H AT CA L I FO R N I A N S A R E M O R E E C O - C O N S C I O U S , A N D O U R CA R S H O P P I N G DATA S H OW S T H AT ’ S T R U E .

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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

I N D U S T RY T I P S

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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Spurred by economic conditions, lengthening car ownership cycles and a year filled with extreme weather, protection and convenience products were the hottest sellers among automotive accessories in 2011, according to the annual AOA Auto Accessories Trend Report released by izmocars.

The reports found that paint protection products ranked No. 1 for dealer profits, replacing upholstery in the top spot.

The izmocars report analyzed accessories sales data from dealerships across the country, highlighting the accessories that were most popular with consumers in 2011, as well as the categories that had the most traction across different U.S. regions and the vehicle models that attracted the highest volume of accessories sales.

“In spite of economic pressures – and the residual impacts of the tsunami [in Japan] – dealerships continued to generate solid profits from accessories sales in 2011,” izmocars vice president

Sidney Haider said. “With improved new car sales on the horizon, dealerships that have cracked the code of selling accessories are in a unique sweet spot for 2012. And, as the economy has driven consumers to hold onto their vehicles for record lengths of time, dealers and OEMs should note a key trend that surfaces in this report: more and more car buyers are opting for protection products, reflecting an emerging new car buyer mindset focused on a longer vehicle life.”

The report is based on a diverse sampling of 150 dealerships that sold a total of $39 million in accessories in 2011. The average dealership generated more than $260,000 in annual sales of accessories to new car buyers, with an average of more than $475 in accessories sales per vehicle sold, an average gross profit margin of 45 percent and an after-commission net profit margin of 32.3 percent.

The full report is available at www.izmocars.com/trend-reports/aoa-2012.pdf.

Protection Products Lead Accessory SalesI N D U S T RY T I P S

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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

Mobile Advertising a Must for Car Dealers

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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].

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.

Experian Automotive announced the launch of AutoCheck® Elite, a program that gives car dealers information and insights into the market, the vehicles and the people who buy them.

In addition to the vehicle history data of the original AutoCheck, AutoCheck Elite allows dealers to access reports providing in-depth insights into dealer sales performance, vehicle registrations and consumer demographics in their market. Dealers can use that information to evaluate their sales performance against the competition, track sales trends of the most popular makes and models, and better understand the consumers in their market.

And AutoCheck Elite dealers receive other features, including access to AutoCheck best practices training, a sales event marketing guide and enhanced showroom materials.

For more information, visit www.experianautomotive.com.

Experian Enhances Its AutoCheck Reports

Fastenal, a national distributor of industrial and construction supplies, has introduced an expense reduction program for auto dealerships to save owners time and money related to their shop supplies and essential tools.

The centerpiece is Fastenal’s FAST Solutions℠ industrial vending system. To date, 8,000-plus machines have been installed to help organizations reduce supply consumption, move the cost of inventory to Fastenal, and increase worker productivity.

To access products, workers enter an ID code and a repair order number, then make a selection. If the request is authorized, the machine dispenses the product and automatically reports the details of the transaction, making workers accountable for what they use. Controls can also be established so that workers only have access to the products (and amounts) needed to do their jobs.

For more information, visit www.fastenal.com.

Fastenal Launches Expense Reduction Program

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Participants’ Names:

1._____________________________________________________________________Company_________________________________________________________

2._____________________________________________________________________Company_________________________________________________________

3._____________________________________________________________________Company_________________________________________________________

4._____________________________________________________________________Company_________________________________________________________

No. of golfers_____________________ @ $ 95 _______________________________Total Enclosed_____________________________________________________

_____Check or money order included

TOURNAMENT-AWARDS DAY-TRADE SHOW

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

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

longest putt • Golf chairmen: Fritz Kreutzinger and Dave Allen

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

IIADA GOLF

_____Visa _____ MasterCard Card No._________________________________________________Expiration Date_________________________________________

Name on Card (please print)_________________________________________________Address of Cardholder___________________________________________

Phone____________________________________________________________Card Holder’s Signature__________________________________________________

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

Participants’ Company:

FAX REGISTRATION – CREDIT CARD ONLY TO: 219.663.5294

25CELEBRATING

25

YE

ARS OF SERVICE

1987-2012

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

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

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

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

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

Bronze – $ 300 IncludesSponsorship of golf hole

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

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

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

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

Payment by ______ Check ______ Visa ______ MasterCard ______

Credit Card Number_________________________________________________________________________ Expiration Date __________________________________

Contact Name:______________________________________________________________________________ Organizational Name:______________________________

Address:_____________________________________________________________________________________________________________________________________ City_____________________________________________________________________State___________________ Zip Code___________________________________

Phone __________________________________________________________________Signature____________________________________________________________

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

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

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

GOLF TOURNAMENTSPONSORSHIP OPPORTUNITIES

25CELEBRATING

25

YE

ARS OF SERVICE

1987-2012

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

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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.

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

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Affordable Computer SystemsIvan [email protected]

AFCRyan [email protected]

Auction AccessRobinson Adams InsuranceDealer BondsTom AdamsDebbie Thompson800-239-1327

Automotive Credit Corp.Tony Stallworth26261 Evergreen Road, Ste. 300Southfield, MI [email protected]

Auto Services Co., Inc.Susan WilliamsClayton Morgan800-442-7116

AutoStarSolutionsEdward ViatorPhone: 817.439.6164Edward.viatro@autostarsolutions.comautostarsolutions.com

Auto ZoneKevin Kravig317.681.4273

Briggs Insurance AgencyTim Briggs4000 W. Lincoln Hwy.Merrillville, IN [email protected]

Cars.com175 W. Jackson Blvd., 8th FloorChicago, IL 60604dealers.cars.com800-298-1460

CAR Financial Services, Inc.Thomas Lloydwww.carfinancial.comthomas.lloyd@car financial.com859-630-2606

Carsforsale.comAaron OestreichPhone: 605.306.3302Email: aarono@carsfor sale.comWebsite: Carsforsale.com

Chase Custom FinanceDon Williams and Mike Smith317-523-4273

Clear Choice Merchant ServicesReno, NVLaurie Gruen, Corporate Analyst, ext. 6881laurene.g@myclear choice.com

Lorraine Onesian, VP Business Developmen ext. 6880lorraine.o@myclear choice.comwww.myclearchoice.com866-779-4787

Consolidated Automotive Services of IndianaChris Walsh59 East Main Street, Suite NNashville, IN 47448(812) 988-8300cwalsh@concolidatedauto services.com

Consumers InsuranceMike Hogan7830 Edge Manor Ct.Indianapolis, IN [email protected]

CVR Computerized Vehicle RegistrationJohn [email protected]

Diamond Warranty Corp.Jim Limongelli9 N Main StreetPittston, PA 18640800.384.5023

Diversified Marketing Strategies, Inc.Andrea Pearman1330 Arrowhead Ct.Crown Point, IN 46307(219) [email protected]

Donn Wray Attorney at LawStewart & Irwin, P.C.251 E. Ohio St., Suite 100Indianapolis, IN [email protected]

Drive1USABruce Norton1512 W. 96th Ave., Suite CCrown Point, IN [email protected]

Envirotest SystemsJennifer Kharchaf1171 Breuckman Drive, Suite BCrown Point, IN [email protected]

Frazer Computing, Inc.Michael Frazerwww.frazercomputing.com888-963-5369

GoldStar GPSMark Behne2035 Lakeside CentreKnoxville, [email protected]

GWC WarrantyCarmie Fruits, Indiana Representativecfruits@guardian -warranty.com317-374-6271

Sales SupportP. O. Box 68Avoca, PA 18641-0068800-482-7357, ext. 767

Heritage-Crystal CleanJim Skelton2250 Point Blvd. Ste. 250Elgin, IL 60123(847) 836-5670jim.skelton@crystal -clean.com

Heritage Financial Acceptance Corp.Curt Holmes121 S. Main StreetElkhart, IN [email protected]

Insurance ProfessionalsMike [email protected]

Keystone Insurers GroupFor All Your Insurance NeedsLori [email protected]

Kincaid InsuranceDan Kincaid321 Main StreetRockport, IN [email protected]

Lincolnway Insurance ServicesDealer Bonds & Garage KeepersGregg St. Germain336 E. Lincoln Hwy.Schererville, IN 46375gregg@lincolnway insurance.com219.865.2227

Nationwide AcceptanceSub-Prime Financingwww.nac-loans.comBonnie Herden773-777-7600, ext. 1295

Penn Warranty Corp.Jude TumaMichael Roe1081 Hanover St.Wilkes Barre, PA 18706www.pennwarranty.commichael.roe@pennwarrantycorp.com800-356-9441

Preferred Warranties, Inc.Gregg Reidenbach260-341-6675Guy [email protected]

Reliable Auto FinanceBrian Chisholm954 28th St. SWGrand Rapids, MI 49509brian@reliableauto finanace.comwww.reliableautofinance.com

Russel Kobel Insurance100 Tower Drive Suite 120Burr Ridge, IL 60527 [email protected]

SEAL FINANCEJudy Terrell3830 E. Southport Road # 200Indianapolis, IN [email protected]

Security Auto LoansJoe Ruhland4900 Hwy 169 N., Suite 205New Hope, MN(763) 559-5892Joe Ruhland

Sentry InsuranceRandy Dombrowskirandy.dombrowski@ sentry.com715-346-7272Mike [email protected]

Shirer Insurance ServicesAuto Owners-Dealer Bonds400 N. Main St.Crown Point, IN 46307Troy and Mari [email protected]

Smart AuctionJeff Kubickiwww.smartauction.bizjeffrey.kubicki@smart auction.biz812-455-7967

Surety Bonds.comMike Patzius1200 Rogers St., Suite CColumbia, MO [email protected]

Triumph ConsultingJack Haworth1606 N. Delaware St.Indianapolis, IN 46202800-875-3137www.triumphconsulting.net

Tri Vin Inc.Mike Audette115 Pohesanut Drive Suite 201Groton, CT [email protected]

Vehicle Acceptance Corp.Joyce Butler12800 N. Meridan St. Ste. 400Carmel, IN [email protected]

VideoTirekicker.comJohn Commorato2413 N. MeridanIndianapolis, IN 46208(317) [email protected]

Wingham & AssociatesGary WinghamP.O. Box 1723Richmond, IN 47375(765) [email protected]

WORKS24Mark Hersch3508 French Park Drive, Suite 1Edmond, OK [email protected]

Zurich Insurance Co.800-728-6049

ASSOCIATE MEMBERS IIADA Associate Membership is available to automotive related businesses. Please call 800-310-3112 for more information on Associate Memberships or see our Associate Membership Application in this issue.

All Star AutosJohn FerrellLaPorte

Auto Max Auto Sales*Bobby KowichCarmel

Custom Auto SalesRonald OndraCedar Lake

AutoStar Solutions*Edward ViatorFort Worth, Texas

Del Real Auto SalesTony Del RealLafayette

Gray Auto BrokersBrad GrayGreenfield

Hillside MotorsDushan GalicSchererville

McHugh MotorsTim McHughIndianapolis

Patriot SalesHoward CurryLibertyPorter Auto Sales

Charles PorterPittsboro

Stark LeasingTom StarkIndianapolis

Thompson Brothers Auto SalesJohn ThompsonLafayette

Westfield Motor SalesAl JohnsonNoblesville

Wolfe’s Evansville Auto AuctionJeff WolfeEvansville

Wolfe’s South Bend Auto AuctionBob RuthSouth Bend

Wolfe’s Terre Haute Auto AuctionDan WolfeTerre Haute

Zay Leasing and RentalsAndy ZayHuntington

IIADA RECOGNIZES THE FOLLOWING MEMBERS

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

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

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

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

Dealership Name ____________________________________ Dealer Lic# _______________________________________

Mail Address ___________________________________________________________________________________________

County ____________________________________________City/State/Zip ______________________________________

Phone _____________________________________________Fax _________________________________________________

E-mail ___________________________________________________________________________________________________

Website _________________________________________________________________________________________________

Owners (Please Print) __________________________________________________________________________________

Recommended By ______________________________________________________________________________________

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

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

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

Note: 25% of dues are non-deductible

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

Indiana Independent Automobile Dealers Associations

The IIADA Has the Independent Auto Dealer Covered!

The IIADA Has the Independent Auto Dealer Covered!

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

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

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

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

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

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

For $275 You Get Membership In Both IIADA and NIADA

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

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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].

• Industry Leader Offering CompetitiveRates

• Inventory and Garage Keepers Coverage• Towing Coverage

• Building/Contents Coverage• Truth-in-Lending, Federal Odometer

Disclosure and Title Coverage Available• Mechanic’s E&O Endorsement Available

Mike HoganIndiana Sales Manager

[email protected]

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