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inside• FROM THE PRESIDENT’S DESK• SOUTHERN AUTO AUCTION GOES MOBILE• 20th ANNUAL MIADA GOLF TOURNAMENT

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MAY/JUNE 2012

used vehicleScience of

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079



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

OFFICIAL PUBLICATION OF THE MASSACHUSETTS/NEW ENGLAND INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION

DEALER NEWSM A S S A C H U S E T T S / N E W E N G L A N D



Sourcing & Sales

visit our new web sitewww.miada.com

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D E A L E R N E W S MAY/JUNE 2012

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

MAGAZINECONTENTS

ADVERTISERSINDEX

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] MA/NEW ENGLAND DEALER NEWS IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SER-VICES CORPORATION, 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 INDEPENDENT AUTO DEALER OR THE NATIONAL INDEPENDENT ATO-MOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTIS-ERS, OR THEIR IDENTIFICATION AS MEMBERS OF MIADA OR NIADA, DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT © 2011 BY NIADA SERVICES, INC. ALL RIGHTS RE-SERVED.

STATE MAGAZINE MGR./SALES Troy Graff • [email protected] Andy Friedlander • [email protected]/PRODUCTION MGR. Christy Haynes • [email protected] Nieman Printing


BOARD OF DIRECTORS

MIADAOFFICEFOR INFORMATION ON HOW TO BECOME A MEMBER OF MIADA, PLEASE CONTACT BARRY GAGNE AT 781-278-0077 1 UPLAND ROAD BLDG. 200 • STE. 226 • NORWOOD, MAWEB SITE: WWW.MIADA.COM • 781-278-0077

WHAT’SNEW

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10 Provisioning: Used Car Science12 Cash Is King in BHPH17 SAA Goes Mobile22 Compliance Overdrive

R A2Z EDUCATION SERIES - AutoZoneEducating the independent dealer to deliver the highest quality service levels to your customers, manage your shop efficiently, train your technicians and maximize profits.niada.tv

R NATIONAL TIRE SAFETY WEEK: June 3-9National Tire Safety Week is a nationwide event sponsored by the Rubber Manufacturers Association to raise consumer awareness about tire safety, help consumers keep their tires safe and demonstrate the industry’s commitment to motorist safety.Visit www.betiresmart.org and fill out the form to receive your free National Tire Safety Week kit that includes brochures and other materials.

ADESA ........................................................................9Ally ..........................................................................15Auto Auction of New England ......................................7AutoTrader.com ..........................................................3Auto Use ..................................................................19Chase .......................................................................16Lynnway Auto Auction ................................................5Manheim.com ..........................................................11Manheim New England .................... Inside Front CoverNIADA Certified .........................................................18Persian Acceptance Corp ....................................... 20Protective ................................................................13Southern Auto Auction .................................Back CoverStream Companies ....................... Inside Back CoverThrifty Car Sales ......................................................17Voisys ......................................................................22

The board of directors of Massachusetts Independent Auto Dealers Association unanimously endorsed the nomination of Juan Carlos Mendez, founder and owner of JC Auto Sales in Ashland, as the 2012 Quality Dealer for Massachusetts.

The board of directors of New England IADA, meanwhile, unanimously endorsed the nomination of R.J. Foley, founder and owner of Foley Motorsports Sales in Shrewsbury, Mass., as the 2012 Quality Dealer representing the New England states and New England IADA.

Mendez sold nearly 500 cars last year from his 4,000 square foot showroom in downtown Ashland. With seven employees and the experience of having “done all of the jobs I now have my employees doing,” Mendez not only appreciates the effort his employees give, he also is able to understand the needs of his staff and give his customers the best possible value and service.

Mendez said the key to his success is the monthly meetings he has with his staff.“We discuss the good and the bad and address problems before they are out of control,” he

explained.Mendez said he takes great pride in providing the “best work environment with updated

equipment, training and clean work spaces,” which he said, leads to a better customer experience.

“Our customers know that when they come into our facility they will be treated with the respect they deserve and get the customer service that is lacking in so many businesses these days,” he said. “We understand and appreciate that without customers, there is no business.”

Mendez is a regular attendee at industry training seminars through MIADA, NIADA and other organizations, and is planning to attend the NIADA Convention in Las Vegas in June.

Representing Massachusetts as its Quality Dealer “is not only a great honor but also a tremendous opportunity to learn from other dealers and the leaders in our industry,” he said.

The Quality Dealer for Massachusetts is recognized locally at the Quigley Scholarship event. Mendez also is a nominee for the NIADA’s National Quality Dealer of the Year, which will be chosen at the NIADA Convention.

Mendez, who has been in the auto industry for more than 15 years, credits his success to his dedicated and trained “honest, trustworthy and friendly” staff and his “hand-picked” quality inventory.

It has proven to be a winning combination.Foley opened his dealership in 1984, but he was bitten by the car bug before that.“I’ve always had a love of cars and car sales, from the first time I put a car on my parents’

lawn and sold it in one day for a $350 profit,” Foley said.From the inspiration of that first car sold, and with a degree in business from Assumption

College, Foley launched Foley Motorsports with a $20,000 loan from his brother. The dealership exceeded $30 million in sales for 2011.

Foley Motorsports offers a state-of-the-art auto repair and detailing facility that provides high-quality automotive repair and maintenance services. Its full-service repair shop features factory-trained ASE Certified and Master Technicians.

“I love high-end cars,” Foley said. His dealership reflects that passion. The vehicles on his lot include Audi, Lexus, BMW and more, but all have a common theme: quality vehicles sold with service and great value.”

Massachusetts, New England IADAs Announce Quality Dealers for 2012

President of MA John Elefetherakis John’s Auto Sales 617-628-5511 [email protected] VP of MA Bob Hayes Auto Towne Rentals Inc 781-878-9656 [email protected]

Treasurer of MA Eric Schneider The Garage 508-583-5955 [email protected] Clerk of MA Melissa Otis Oakland Auto Sales 508-822-8822 [email protected]

Inside

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Calendar of Events May 21: The Scholarship Dinner will take place this year at Lake Pearl Lucianos, 299 Creek Street, Wrentham, Mass. Since 1997, the Massachusetts Independent Automobile Dealers Association has honored graduating high school seniors with $1,000 scholarships. The scholarships are named in honor of Dr. Lawrence Quigley, who served as honorary chair of this highly acclaimed event. To date, 165 students have been awarded this scholarship. Our scholars include outstanding athletes, talented musicians, splendid scholars, gifted artists and compassionate and giving stewards of our communities. Massachusetts and New England Quality Dealers of the Year awards will also be presented.

August 13: The 20th annual golf tournament will take place at Indian Pond Country Club in Kingston, Mass. The tournament will benefit the Jimmy Fund and Dana Farber Hospital. Chairman is Ronnie Dial. Call MIADA for sponsorship information and golfer registration.

September 13: The MIADA Annual Meeting will take place at the Sheraton Framingham, 1376 Worcester Rd., Framingham, Mass.

For additional information, call the MIADA office at (781) 278-0077 or visit our new website at www.miada.com.

Your One Stop Shop to Save

The MIADA would like to have all independent dealers visit our new and improved website at www.miada.com. We have up-to-date information on legal and regulatory issues, curbstoning, auction information, an events calendar as well as membership information. Our member benefits and Auction coupons can save the MIADA independent dealer thousands of dollars by simply joining. Get all your local dealer information in one place. Visit miada.com and see how you can benefit by becoming a member OR how existing members can utilize all the benefits to save THOUSANDS.

THOUSANDS

visit www.miada.com

www.miada.com

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Dear Members, I am excited and encouraged to have

been elected your president for the 2011-2012 term. As a charter member of MIADA (has it really been nearly 30 years?) and having worked on many committees, including the board of directors, for most of that time, I must say I am prepared to take on this challenge!

We have come a long way since those early years. We have a full-time staff, office space in a professional building, regular representatives at auctions and many more members then the few who gathered at the State House and pleaded for nonprofit status in the early ’80s.

But our world has changed too – we have a website with leading businesses ready to serve your needs, remote access to legislative changes and directions, and professional affiliation with NIADA, not to mention a personal relationship with most other IADAs around the country.

We are not here to re-invent the wheel. We are here to pull together as a team and create the best business platform, the most informed consumer base and the strongest

legislative voice we can.Won’t you join me? As members, we

hold the key to the future of this industry. Together we provide an example of excellence in dealing – compliance with state, federal and national mandates; confidence in fair dealing and quality representation for consumers and dealers; and education to the consumer of the value of dealing with a bonded and insured MIADA member.

And together we can stamp out curbstoning. Massachusetts has some of the strictest consumer protection laws in the country. That is not a liability. Together we can use that legislation to eliminate dealers who won’t comply, to educate dealers who want to comply but don’t know how, and to increase consumer awareness of the benefits to the Commonwealth our industry provides, in services and in tax revenue.

Let this be a fun year, a year when we plan together the programs that will help our members. We can learn from each other and from the support members who serve our industry.

There is a spot for everyone in MIADA:

a place for small dealers, selling only a few cars a month, and megadealers with multiple locations.

There are so many goals we can accomplish together. My hope is that when you see me at auctions or drive by my shop in Somerville, you will stop. Let’s talk. Or call me – if I don’t answer right away, leave a message and I will get back to you.

This is a two-way communication. You tell me what you need in a professional car dealers’ association. I promise I will bring it up at the next board of directors meeting.

Tell me what you like – and what you don’t like. Give me your thoughts on the direction we’re headed, and how we – as a team – can accomplish those goals. We have a capable executive director in Barry Gagne and a dedicated board of directors ready to hear your call.

Let’s get this conversation started. As a single voice for united car dealers – as a team – we can do this!

Sincerely,John J. EleftherakisOwner, John’s Auto SalesSomerville, Mass.

From the President’s Desk

Latest NMB Partner Provides Emissions Diagnostics

PH2 Solutions has joined NIADA’s National Member Benefit program, offering the association’s members its award-winning PH2 Validator emissions diagnostic technology for a $259 savings with multiple payment plan options.

The diagnostic software of choice for dealers and their on-site staff rapidly identifies emission-related issues on virtually all 1996 and newer vehicles, helping save time and resources on “Check Engine Light” maintenance and repairs, emission inspection compliance, fuel consumption, vehicle

acquisition and remarketing, and reducing customer “comebacks.”

”NIADA is delighted to be working with PH2 Solutions in assisting our members to resolve ‘Check Engine Light’ and vehicle emissions issues,” NIADA vice president of member services Scott Lilja said. “NIADA is confident PH2 Solutions will be a tremendous hit with our members who have vehicle service operations as well as those that outsource.”

The PH2Validator earned first place in SEMA’s Best New Tools and Equipment Products category for 2012, and Motor magazine named it one of its Top 20 Tools for 2011.

PH2 Validator’s easy-to-use application was developed specifically to address independent repair shop challenges such as OBDII false code problems, no code faults, costly long drive cycles and other emissions-related repairs. The diagnostic software redefines conventional factory drive cycles to 10 miles or less by engaging the on-board computer (PCM) with its patented automated repetitive requests of all supported monitors

simultaneously, resulting in rapid monitor completion if conditions are met.

If readiness conditions are met, the monitors complete. If they are not met, driving beyond 10 miles will not change the outcome, and the PH2Validator’s automated data stream analysis provides technicians with a real-time record of clues as to why by simultaneously and continuously capturing out-of-range operating values and prioritizing them by seriousness.

Exclusive NIADA member-only pricing is also available to repair shops handling member repairs.

“We are honored to partner with NIADA and even more excited to offer members this game-changing technology that truly makes life easier for dealers, technicians and service centers, affording them the ability to move inventory faster and more efficiently,” PH2 Solutions president and CEO Mark L. Scotland said.

FOR MORE INFORMATION, CONTACT [email protected], AND TO ORDER, VISIT WWW.PH2SOLUTIONS.COM/NIADA0818 OR CALL (973) 902-5517.

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The New Science of Used Vehicle Sourcing & SalesThese days, dealers are looking for every

%-A%&5.&62-&P9'(75*&72$%25.1*&/.1&5,%71&(.5+@&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 alltime 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 usedvehicle supply.In this crowded marketplace, you need to

assess your strategy for longterm 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 indemand units others might pass up. It’s called provisioning.

What Is Provisioning?Q1.$7+7.272A&7+&-%62%-&'+&5,%&%/607%25&

allocation of resources to achieve a successful mission. To be clear, the mission /.1&-%'(%1+&7+&5.&.8%1'5%&'&62'207'((*&successful used car operation.Put simply, for your business to thrive,

you need to know what cars to buy, what 5.&8'*&/.1&5,%4&'2-&),%1%&5.&62-&5,%&17A,5&units for your inventory. Provisioning is a new way for dealers to set their used vehicle

strategy (size of inventory investment, ROI/5912&%R8%05'57.2+S&'2-&%/607%25(*&891+9%&5,%&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

'1%'&+%'10,72A&.2(72%&/.1&'&+8%0760&$%,70(%@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 '$'7('B(%&+988(*&./&+747('1(*&0.26A91%-&vehicles and the rate at which such vehicles have been sold over the past 45 days.!"#$%&'()(%*+ The spread between

average asking price and wholesale price – the auction price vs. list price in your market.,-&()&'()(%*+.The number of units

currently available at auction.Experience: The success of your recent

+'(%+&/.1&'&+8%0760&4'T%U4.-%(@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 -'*+3&B95&*.9&0'2&+57((&62-&A%4+&)75,&'&(755(%&guidance. Many dealers rely on professional buyer

solutions like those by vAuto, for example. Those services use inmarket 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 4.+5&'55%257.23&A%5&*.9&5,%&81.65&*.9&2%%-&and cover your reconditioning costs so you

still hold gross.If you’re a dealer in the Northeast in the

)725%13&*.9&47A,5&,'$%&-7/609(5*&62-72A&enough SUVs to keep your inventory fully stocked. Similarly, a dealer in the South 81.B'B(*&0'2#5&62-&%2.9A,&0.2$%157B(%+&72&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 62-&0'1+&'5&A..-&8170%+&)75,.95&5,%&,'++(%&./&waking up early, checking pages of run lists '2-&%(B.)72A&8'+5&.5,%1&-%'(%1+&5.&62-&*.91&spot in the lane. Instead, sit back with your coffee and bid from the comfort of your home .1&5,%&./60%@&

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 inperson trades, this triage ensures the dealer and his buyers feel more 0.26-%25&5,'5&5,%&72$%25.1*&8('0%-&.2&5,%&(.5&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 *.91&'B7(75*&5.&%/607%25(*&'2-&%//%057$%(*&evaluate and acquire used vehicles into a competitive advantage.

PROVISIONINGBY DALE POLLAK AND CHAD GOODSON

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Cash Is King in Buy Here-Pay HereThe two keys to Buy HerePay

Here are risk management and cash management. Both, as always, are hot topics. More so now with everything that is going on in the automotive industry and the economy in general.But cash – and the availability or

the management thereof – seems to be on everyone’s mind, and in some cases closing their doors.Cash is not as available as it was this time

last year. The good news is it is still available, which isn’t true in some other unfortunate 72-9+517%+@&"5#+&V9+5&2.5&'+&%'+*&5.&62-&.1&secure, not to mention afford, since the rates we enjoyed a year ago are no longer there.Local banks and credit unions appear to be

the best sources for lines of credit. The large regional and national banks still seem to be staying out of the car business. Local banks and credit unions have smaller organizational charts and usually less turnover, leading to a more stable decisionmaking future.The three necessities to securing a line

with those sources are patience, persistence and preparation. The days of simply walking into a bank and securing a line of credit on a handshake and a promise to pay are long gone. Local banks and credit unions have learned from the mistakes of the regional and national banks and have become smarter and more sophisticated in their approval process.Patience is needed because local

banks and credit unions need a complete education on our industry. Not everyone is

familiar with what we do and how we do it. In some cases, it can be hard to convince a bank to loan money to a business that will in turn extend credit to someone who has shown little ability to repay it. They need a Kthrough12 to make their decision and continuing education after the line is secured.Persistence is needed because the days of

(%2-72A&72+575957.2+&+%%T72A&.95&B%2%607'17%+&of their generosity have just about ended, especially to those dealing with subprime clientele. BHPH dealers have to be willing to go doortodoor and sell our business to lenders. In most cases, it will take knocking on more than one door. And once in the door, it will take more than one cast to reel them in.Preparation is the determining factor to

success, initially and in the future. Because banks and credit unions have become more sophisticated in their decisionmaking, BHPH dealers have to provide more sophisticated 72/.14'57.2&5.&5,%4@&Q%1/.14'+3&62'207'(&+5'5%4%25+&'2-&0'+,DK.)&'2'(*+7+&'1%&a few examples of data that needs to be provided up front to obtain a line and on an ongoing basis once a line is secured.The key to maintaining a good relationship

with a capital source is providing as much information in the beginning as possible and to keep doing so on a regular basis so they never have to ask for anything. Full and accurate disclosure is paramount. Put yourself on the other side of the desk. What would like to know if it was your money? In this instance, there really is no such thing as too much information.Having all the access in the world to capital

will be worthless unless you know how to manage it. In today’s tight credit market, BHPH dealers have to manage not only their credit lines, but cash in general. Not understanding how to manage available cash has closed more BHPH dealers’ doors than any other cause. It is that important.The best tool to effectively manage cash

is common sense. Don’t spend what you don’t have. Too many dealers feel the need

to live the lifestyle. Success can breed contentment and contentment can breed laziness, which usually leads to failure.C&0'+,DK.)&4.-%(&,%(8+&T%%8&0.44.2&

sense at the forefront. The model can be $%1*&-%5'7(%-&.1&+748(76%-&5.&0.$%1&5,%&B'+70&cashin, cashout categories. Either way, it should show a one, three and possibly 6$%D*%'1&'2'(*+7+3&'2-&+,.9(-&B%&98-'5%-&at least annually or when there has been a change to the overall business model.Adding a location, an increase or decrease

in ACV, or even a change in underwriting standards can impact cash needs. The model should be realistic. Pie in the sky and wishful thinking serve no purpose. J'$72A&5,%&4.-%(&7+&.2(*&5,%&61+5&+5%8@&

Having the discipline to manage to it is the challenge. Without it, a dealer might as well have the “sell some cars, collect some money” business plan and hold on for dear life – a plan that is not used by successful BHPH dealers.The model should be looked at on a

monthly basis and compared to actual performance. That way, adjustments can be made immediately to either the model or the personnel in charge of managing to it. Cash is king in our business. Not only

the availability of it, but the effective management of it as well. There are BHPH dealers who operate without the need of a credit line because they understand how to manage cash. There are BHPH dealers who operate within credit lines effectively because they understand how to manage cash. But there are too many dealers experiencing capital reductions and, in some cases, allout line calls because they don’t understand how to manage cash. Having the patience, persistence and

preparation to obtain and secure cash, then the discipline to manage it, will take a load off your mind and help keep your doors open.

BY BRENT CARMICHAELNCM ASSOCIATES INC.

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Here’s the latest from the National Independent Automobile Dealers Association’s team of lobbyists and advocates in Washington, D.C.

NIADA Annual Leadership ConferenceOn March 2223, Federal Advocates

W&O"CMC#+&(.BB*72A&614&W&'55%2-%-&5,%&NIADA Annual Leadership Conference and participated in a panel presentation on advocacy efforts and status regarding various meetings and legislation, including S.1449 and a proposed auction sale amendment. The formulation of an Association PAC was also discussed.

D.C. MeetingsOn March 7, NIADA met with staff

members of the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission.With respect to the CFPB, there are three

areas of immediate interest and direct interest to the association.I,%&61+5&7+&5,%&1%A9('5.1*&1.(%&5,%&G?QX&)7((&

8('*&)75,&1%+8%05&5.&4.5.1&$%,70(%&62'2072A@&While there has not yet been any activity with respect to this issue, NIADA, through Shaun Petersen, the association’s legislative/regulatory/compliance counsel, will continue to monitor the process.The second issue relates to education

of servicemembers. Pursuant to the law, the CFPB is required to ensure “servicemembers and their families are educated and empowered to make better informed decisions regarding consumer 62'207'(&81.-905+&'2-&+%1$70%+&.//%1%-&by motor vehicle dealers, with a focus on motor vehicle dealers in the proximity of military installations,” and “complaints by servicemembers and their families concerning such motor vehicle dealers are effectively monitored and responded to, and where appropriate, enforcement action is pursued by the authorized agencies.” NIADA will be pursuing options/opportunities for assisting the CFPB in that effort.The third area of interest pertains to the

Consumer Advisory Board that the CFPB is

directed to establish. The board is charged with advising and consulting with the bureau “in the exercise of its functions under the /%-%1'(&0.2+94%1&62'207'(&(')+3&'2-&5.&provide information on emerging practices in 5,%&0.2+94%1&62'207'(&81.-905+&.1&+%1$70%+&industry.”NIADA is monitoring the membership

appointment process to the board with interest. Legislative committee chairman Chris Martin has submitted an application for appointment.

Executive Agencies Regulatory Review Shaun Petersen will be leading the

regulatory review effort on behalf of NIADA. He will be reporting on the FTC meeting noted above and developments in the regulatory process.Federal entities of interest include the

FTC, EPA, NHTSA, IRS and SBA. Early last year the President issued executive orders 13563 and 13579, which directed all federal agencies, including independent agencies such as the FTC, to prepare plans for the periodic review of existing regulations in order to determine whether those regulations +,.9(-&B%&4.-76%-3&+51%'4(72%-3&%R8'2-%-&.1&repealed.In September, as an example, the FTC

issued a 10year review schedule and accelerated its review of a number of rules and guides in response to recent changes in technology and the marketplace. NIADA, where appropriate, will coordinate its review efforts with the National Automobile Dealers Association.

Auction SalesDiscussions are ongoing regarding

consumer and law enforcement issues related to auction sales. Pending those discussions, an April 9 meeting with the Senate was cancelled at the request of Senate staff.That stakeholder meeting was to include,

but was not limited to, the NHTSA, FBI, Department of Homeland Security, staff of members Pryor, Lieberman, Blumenthal,

N'R4'2&'2-&X955%16%(-3&5,%&O'57.2'(&Auto Auction Association, NADA, NIADA and representatives of various auction companies.An attempt was made by Sen. Pryor

YMDC1T@S&5.&6(%&'2-&891+9%&'2&'4%2-4%25&5.&the Senate Highway Bill that would require auction companies to make available certain information to bidders at the time of sale and certain information that would have to be maintained and possibly made available to the public after sales. Following NAAA negotiations with the senator, he agreed to 2.5&6(%&.1&891+9%&5,%&'4%2-4%25&8%2-72A&'&dialogue with the affected stakeholders.While the amendment/issue does not on its

face necessarily directly impact NIADA, we will continue to monitor the situation to ensure the association’s interest are protected.

S.1449, the Motor Vehicle and Highway Safety Improvement ActS.1449 is the bill that had an onerous

recall provision/process included in an earlier version of the bill considered last Congress. We lobbied for its exclusion and the language was not part of the July 2011 introduced version of the bill. Working in conjunction with NADA, committee members were contacted on Dec. 13 to guard against any attempts to reinstate the language. No effort materialized. As currently constructed, nothing in the bill directly impacts the automobile industry.S. 1449 was included in S.1813, the

omnibus Highway Bill that passed the Senate last month. In the House, jurisdiction over the S.1449 issue is shared between the Transportation and Infrastructure Committee and the Energy and Commerce Committee and is expected to also be addressed within the context of the House Highway Bill.To date, there is no comparable provision

72&5,%&B7((&B%72A&-1'/5%-@&I7472A&'2-&62'(&resolution regarding it are also uncertain although midApril may be the target date /.1&J.9+%&K..1&'057.2@&I,%&0911%25&81.A1'43&which expired March 31, was extended until June 30 by Congress to allow more time for 62'(&1%+.(957.2&./&'&,7A,)'*&B7((@&

NIADA Legislative Team Update

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NIADA Legislative Team Update

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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 ),7(%&.5,%1+&81.$7-%&+8.2+.1+,78+&.1&62'207'(&0.2517B957.2+3&.1&(%'-&722.$'57$%&0.449275*&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:D#(*0$E#"(/0#?$4'?."@)($3@("-$F(0#*')G-$H"*"CI"0G0*J?$3@("$F%*0?-$F(%#K0-$!*%CF"@(/0%?($H%#$3G0).L-$2).C-$M%')0?>'**0-$!*%C1%((/0A?$1"("#?-$H*%L(")-$ICHC3<9$3@("$F%*0?$"+$4@**0?-$F(0#*')G-$N%CO00*J?$3@("$F%*0?-$P#A0**-$P/'"E"@#)0J?$3@("$H0)(0#-$F"@(/$D%?(")-$1%??C

!#%)$1"#0**'$F%*0?$Q$F0#>'.0-$E#".KA%L-$R%CD&$S"*0A'%KJ?$3@("$F%*0?-$F",0#?0(-$1%??CR#0,'0#$1"("#?<T0%?')G-$2).C-$S%#&')-$ULCO")J?$3@("$F%*0?-$2).C-$T%A#0).0>'**0-$M%C1Q!$3@("$F%*0?-$3*B@V@0#V@0-$IC1C3*%,"$N%**0L$3@("$F%*0?-$U%*%,%W""-$1'./CF"@(/$X%.",%$3@("$F%*0?-$2).C-$X%.",%-$Y%?/C!%'#*L$O0*'%B*0$E"BJ?-$2).C-$E"'?0-$2&%/"$$

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enables dealers to better understand lost

,++,%*C(1*>&%"B"(C"&.(7&17"(*10>&P(*"%("*&=".7&4,#+"*1*,%3/&2"=+1(-&*2"#&.=1-(&*2"1%&0,==,68C+&3*%.*"-1"3&61*2&4C3*,#"%3D],%&#,%"&1(0,%#.*1,(/&B131*&666D+,=JD4,#&,%&666D.C*,$>*"=D4,#D&

Polk Provides Internet Reporting to Autobytel

MASS_NE_0512.indd 16 4/17/12 11:05 AM

MAY/JUNE 2012 D E A L E R N E W S

17


Southern Auto Auction, in conjunction with its 65th anniversary, announces the launch of SAA Mobile Web (www.saa.com/m), a cuttingedge resource that sets Southern Auto Auction as the benchmark for dealer technology tools.The SAA mobile web includes vehicle

searches based on year, make, model, lanes and events, condition reports and vehicle history reports.It also includes the SAA Alert System.

A dealer can set an alert for each vehicle to watch and multiple automatic, systemgenerated text messages are sent to each registered phone at certain points prior to the vehicle crossing the auction block.“Southern Auto Auction has created a tool

that is far superior in the marketplace,” said Dave Chahwan of Boch Motors. “With an auction of the size of Southern, there are more than 4,500 opportunities for me each week to purchase vehicles in 20 lanes. The auction alert function allows me to set my buy plan each week and not miss any opportunities. Southern’s ability to react and to deliver what dealers want is very clear in this mobile web product.”Scott Theriault, a professional buyer for

dealerships and part of SAA’s dealer advisory board during the development of the mobile web, said that makes a difference.“One of the great things about this tool and

Southern remains their commitment to listening to their customers,” Theriault said. “SAA hits the mark with their dealer tools 99.9 percent of the time, but they are always asking me, ‘How can we improve?’ Each time I offer ideas, they make those ideas happen immediately.”SAA information technology director Mike

Penda said future enhancements to the tool will include additional vehicle history reports, buyer ).1TK.)&'(%15+3&+%((%1&'22.920%4%25+&'2-&vehicle registration capabilities. “Our goal was to consult with dealers,

ask which features are useful and to develop a tool that was clean, functional and gave dealers exactly what they need to make buying decisions at SAA,” Penda said. “We feel we hit the mark. The overall look and feel of our mobile web platform is similar to our full website [www.saa.com].“When we were in our development stage,

we were often asked, ‘When are you going to get an app?’ After much research and development, we made the conscious decision

to not develop an app, but rather to create a mobile web page that incorporates realtime updates without any need to continually download changes. Each time we enhance our web page, dealers will see it the next time they log on. And best of all, our mobile web page is free to all registered dealers at SAA.”

SAA AnnouncesNew Mobile Web

“Our goal was to consult with dealers, ask which features are useful and to develop a tool that was clean, functional and gave dealers exactly what they need to make buying decisions at SAA,” Penda said. “We feel we hit the mark. The overall look and feel of our mobile web platform is similar to our full website [www.saa.com].

MASS_NE_0512.indd 17 4/17/12 11:05 AM


18


NIADA has selected Warrantech, an AmTrust Financial Services company, to administer its '((D2%)&O"CMC&G%1576%-&Q1%DZ)2%-&[%,70(%&Program.The NIADA CPO Program is the premier

0%15760'57.2&.857.2&/.1&72-%8%2-%25&'95.4.B7(%&dealerships seeking to effectively compete in the 0%1576%-&81%D.)2%-&$%,70(%&4'1T%5@&Warrantech, a leading provider of extended

service contracts for the automotive industry, will administer the plan, address all postsale customer needs, and customize dealer and consumer marketing materials. The company )7((&).1T&0(.+%(*&)75,&O"CMC#+&+5'5%&'/6(7'5%+&5.&launch the program nationwide in May 2012. “Our research is telling us that 65 percent of

consumers begin their vehicle search looking for '&0%1576%-&81%D.)2%-&$%,70(%3&'2-&5,'5&294B%1&is growing,” NIADA CEO Mike Linn said. “NIADA is committed to helping our members give customers what they are looking for and offer a topnotch buying experience for car buyers in their communities. We see the NIADA CPO Vehicle Program as a primary way for NIADA members to further separate themselves from their competitors and give customers a better vehicle with additional peace of mind after the sale.”

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. These options include:\&&&C&5,1%%D4.25,U;3===D47(%&(7475%-&)'11'25*&5,'5&includes 36 months/36,000 miles of engine and air conditioning component coverage.

\&&&C&+7RD4.25,U]3===D47(%&(7475%-&)'11'25*&5,'5&includes 36 months/36,000 miles of engine and AC component coverage.

\&&&C&^_D4.25,U^_3===D47(%&(7475%-&)'11'25*@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. ?.1&4.1%&0.2+94%1&0,.70%&'2-&0.26-%20%3&

the NIADA CPO limited warranty options above 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 retooling the NIADA CPO Program, we

recognized independent dealer business models vary widely and that we had to offer additional GQZ&.857.2+&5.&+8%0760'((*&4%%5&5,%&.8%1'57.2'(&

demands of our dealers,” NIADA Chief Operating Z/60%1&E5%$%&L.1-'2&+'7-@&!N'11'25%0,#+&successful track record with independent auto dealers, varying product offerings, worldclass claims operation, nationwide sales footprint and long term commitment to support the success of our dealer members made the partnership decision easy to make.” In addition to the coverage, NIADA

and Warrantech will provide dealers with comprehensive sales training on how to use the CPO program to sell more vehicles and extended service contracts, as well as marketing support that includes instore signage and promotional materials. “Warrantech is honored to have been

selected by the 66year old NIADA as its CPO program administrator,” Warrantech CEO Sean Stapleton said. “We applaud the timehonored 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.”For additional information regarding the

NIADA CPO program please call (877) 3100288 or email [email protected]

Warrantech to Administer New NIADA CPO Program

MASS_NE_0512.indd 18 4/17/12 11:05 AM


19


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

worth the combative discussions she endures

,%&*2"&+%"33C%"&32"&-"*3&*,&4,(0,%#&*,&*2"1%&$"(42#.%J3DH],%&GG&>".%3&.3&.&(,(+%,)*&*%.7"&.33,41.*1,(/&OPQRQ&2.3&%"+%"3"(*"7&*2"&B,14"&,0&1(7"+"(7"(*&.C*,&7".="%3&.(7&2.3&0,C(7&6.>3&*,&2"=+&*2"#&1#+%,B"&*2"1%&$C31("33"3D&P&4.(&.33C%"&>,C&OPQRQ&.(7&,C%&;V&^%,C+&+%,-%.#&61==&.=6.>3&+C*&*2"&(""73&,0&,C%&7".="%3&)%3*D&\"&61==&("B"%&3.4%1)4"&*2"&NC.=1*>&,%&3"%B14"&6"&+%,B17"&,C%&7".="%3DM

E2"&OPQRQ&;V&^%,C+&+%,-%.#&61==&$"&C(7"%&*2"&71%"4*1,(&,0&_,"&L"34,*./&62,&6.3&%"4"(*=>&

1(*%,7C4"7&.3&OPQRQ53&("6&R1%"4*,%&,0&R".="%&R"B"=,+#"(*/&"00"4*1B"&_C("&FDHKB"(&*2"&#,3*&3C44"330C=&1(7"+"(7"(*&7".="%3&.%"&4,(3*.(*=>&3""J1(-&("6&6.>3&*,&1#+%,B"&*2"1%&$C31("33"3/M&L"34,*.&3.17D&HE2">&J(,6&*2"&3=1-2*"3*&42.(-"&1(&3.="3/&)(.(41(-/&3"%B14"&,%&,+"%.*1,(.=&+,=14>&4.(&2.B"&.&#.U,%&1#+.4*&,(&*2"1%&+%,)*.$1=1*>D&XC%&;V&^%,C+3&61==&$"&.&-%".*&6.>&0,%&OPQRQ&7".="%3&*,&3*.>&,(&*%.4J&$"4.C3"&4,==".-C"3&61==&$"&*2"%"&*,&+%,7/&+,J"&.(7&"(4,C%.-"&1#+%,B"7&+"%0,%#.(4"D&E2"&("6&+=.*0,%#&61==&#.*42&7".="%3&,0&=1J"&31W"/&3.="3&B,=C#"&.(7&%"B"(C"&#1[&0,%&#.[1#1W"7&4,#+.*1$1=1*>D&E2">&61==&32.%"&17".3&.(7&$"3*&+%.4*14"3&.(7&=".%(&0%,#&,("&.(,*2"%&%"-.%7="33&,0&31W"&,%&-",-%.+214.=&%"-1,(DHO,&1(7"+"(7"(*&7".="%&13&*,,&=.%-"&,%&*,,&3#.==&*,&4,(*%1$C*"/&=".%(&.(7&$"(")*&0%,#&*2"&4,==.$,%.*1B"&71.=,-C"&,0&.&;V&^%,C+&7134C331,(D&KB"%>&,("&,0&,C%&#"#$"%3&13&"(4,C%.-"7&*,&+.%*141+.*"DME2"&)%3*&+2.3"&,0&OPQRQ53&;V&^%,C+&0,%#.*&61==&0,4C3&,(&1(7"+"(7"(*&.C*,&%"*.1=&,+"%.*1,(3D&!,%"&1(0,%#.*1,(&61==&$"&.B.1=.$="&.*&*2"&OPQRQ&I,(B"(*1,(&`&K[+,&1(&_C("&.*&I."3.%3&9.=.4"&1(&L.3&<"-.3D&

JOE LESCOTA

NIADA to Launch New 20 Group Program

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.

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

MASS_NE_0512.indd 19 4/17/12 11:06 AM


20


M%?$R#'.0$F.0)%#'"$ $$$$$$$$$Z[C==$$$$$ Z[C\=$ Z\C== F0G,0)($ ]$ Z$ ]$ Z$ ]$ Z 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

NADA Used Car Guide Chart 2,^%.($"+$(/0$O'?')G$H"?($"+$M%?$")$_?0&$N0/'.*0$R#'.0?D`^0.(0&$./%)G0$')$@?0&$>0/'.*0$^#'.0$@)&0#$.0#(%')$G%?$^#'.0$?.0)%#'"?

Source: NADA Used Car Guide

The NIADA announced its 66th Annual

I,(B"(*1,(&`&K[+,&61==&$"&2"=7&_C("&FF8Fa/&;VF;&b&.&6""J&".%=1"%&*2.(&+%"B1,C3=>&342"7C="7&b&.*&I."3.%3&9.=.4"&:,*"=&.(7&I.31(,&1(&L.3&<"-.3DOPQRQ53&32,64.3"&"B"(*&61==&,00"%&.(&"[+.(7"7&7".="%&"7C4.*1,(&+%,-%.#&0,%&;VF;/&1(4=C71(-&#,%"&3"331,(3&4,B"%1(-&#,%"&*,+143&*2.(&"B"%&$"0,%"/&.3&6"==&.3&.(&"(2.(4"7&K[+,&0".*C%1(-&#,%"&4,#+.(1"3&%"+%"3"(*1(-&.==&0.4"*3&,0&*2"&.C*,#,*1B"&1(7C3*%>D&K[+,&"[21$1*&7.*"3&.%"&_C("&F;/&Fc&.(7&FaD&E2"&I,(B"(*1,(/&*,&$"&2"=7&0,%&*2"&*21%7&4,(3"4C*1B"&>".%&.*&3+"4*.4C=.%&I."3.%3&9.=.4"/&61==&J14J&,00&61*2&.4*1B1*1"3&$"-1((1(-&,(&!,(7.>&.0*"%(,,(/&_C("&FFDX(=1("&%"-13*%.*1,(&13&(,6&,+"(&.*&666D(1.7.D4,#D&d,,#3&.*&I."3.%3&9.=.4"&61==&$"&.B.1=.$="&.*&*2"&7134,C(*"7&%.*"&,0&?F@a&+"%&(1-2*DOPQRQ53&Q((C.=&I,(B"(*1,(&`&K[+,&+%,B17"3&1*3&#"#$"%3&61*2&.(&,++,%*C(1*>&*,&("*6,%J&61*2&*2"1%&+""%3/&+.%*141+.*"&1(&NC.=1*>&"7C4.*1,(&3"331,(3&.(7&-.*2"%&B.=C.$="&1(0,%#.*1,(&*2">&4.(&*.J"&$.4J&.(7&.++=>&*,6.%7&*2"1%&7".="%321+35&3C44"33D&K7C4.*1,(.=&,00"%1(-3&61==&4,B"%&*,+143&0,%&$,*2&%"*.1=&.(7&'C>&:"%"89.>&:"%"&7".="%3D&&E2"&"B"(*&13&.=3,&.&-.*"6.>&0,%&B"(7,%3&*,&$C1=7&.(7&0,3*"%&%"=.*1,(321+3&61*2&7".="%3&*2%,C-2&*2"&K[+,/&.(&1(7C3*%>&#.%J"*+=.4"&,0&*,+8(,*42&B"(7,%3&32,64.31(-&*2"1%&+%,7C4*3&.(7&3"%B14"3&.(7&*2"&$"(")*3&*2">&4.(&+%,B17"&*,&7".="%3D NIADA has held its Annual Convention

`&K[+,&31(4"&FAae&.(7&2.3&4,(*1(C"7&*,&f,C%132&.3&*2"&#,3*&3,C-2*8.0*"%&.(7&%"+C*.$="&C3"7&#,*,%&B"214="&1(7C3*%>&"B"(*&0,%&.C*,#,$1="&7".="%3D&&

NIADA ANNUAL CONVENTION & EXPO SET FOR JUNE 1114, 2012

MASS_NE_0512.indd 20 4/17/12 11:06 AM


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MASS_NE_0512.indd 21 4/17/12 11:06 AM


22


E2"&4,(4"+*&,%&1#.-"&,0&*2"&H4,#+=.1(*&7"+.%*#"(*M&13(5*&.(>*21(-&("6/&.(7&2.3&+%,B17"7&0,77"%&0,%&U,J"3&.(7&4,#14&3*%1+3&,B"%&*2"&>".%3D&'C*&*2"&7"4131,(&$>&*2"&I,(3C#"%&]1(.(41.=&9%,*"4*1,(&'C%".C&YI]9'Z&*,&"[+.(7&1*3&4,(3C#"%&4,#+=.1(*&3>3*"#&*,&1(4=C7"&4,#+=.1(*3&%"-.%71(-&B"214="&.(7&4,(3C#"%&=,.(3&13&(,&=.C-21(-&#.**"%DP0&>,C&2.B"(5*&$""(&*,&*2"&31*"&>"*/&4,(317"%&*.J1(-&.&=,,JD&E2"&31*"/&666D4,(3C#"%)(.(4"D-,Bg4,#+=.1(*/&#.J"3&1*&B"%>&".3>&0,%&.(>,("&*,&%"-13*"%&.&4,#+=.1(*D&P*&.3J3&0,%&.&7"34%1+*1,(&,0&62.*&2.++"("7/&*2"&7"31%"7&%"3,=C*1,(&.(7&*2"&+.%*1"3&.(7&+%,7C4*3&1(B,=B"7DE2"&I]9'53&7"4131,(&*,&3*.%*&.44"+*1(-&.(7&%"B1"61(-&4,#+=.1(*3&%"=.*"7&*,&B"214="&=,.(3&32,C=7&-"*&>,C%&.**"(*1,(&0,%&.&0"6&%".3,(3D&]1%3*&.(7&0,%"#,3*/&1*&31-(.=3&*2.*&*2"&I]9'&13&-.1(1(-&#,#"(*C#&.(7&13&%".7>&*,&*%>&*,&17"(*10>&.(7&%"3,=B"&4C%%"(*&+%,$="#3&1(&*2"&1(7C3*%>&b&.(7&*,&+%"B"(*&0C*C%"&,("3DS"4,(7/&*2"&4,#+=.1(*&+%,4"33&,+"(3&.&62,="&=1*.(>&,0&NC"3*1,(3&.$,C*&2,6&*2"&I]9'&61==&%"3+,(7&*,&4,#+=.1(*3&.(7&2,6&7".="%3&61==&$"&1(B,=B"7D&\"&7,(5*&J(,6&#C42&.$,C*&*2"&+%,4"33&>"*/&$C*&2,+"&*2"&I]9'&61==&+%,B17"&#,%"&7"*.1=&3,,(D&&&&],%&(,6/&*2"&NC"3*1,(&.==&7".="%3&32,C=7&$"&.3J1(-&*2"#3"=B"3&13/&H:,6&7,&P&.B,17&4,#+=.1(*3&1(&*2"&)%3*&+=.4"hMP*&3""#3&4,(3C#"%&)(.(4"&4,#+=.1(*3&4.(&,%1-1(.*"&1(&.*&=".3*&*2%""&6.>3i&j&k,C&717&3,#"*21(-&6%,(-&.(7&*2"&4C3*,#"%&4,#+=.1(3&.$,C*&1*Dj&&E2"&4C3*,#"%&717(5*&C(7"%3*.(7&*2"&.-%""#"(*&.(7&*21(J3&>,C&717&3,#"*21(-&6%,(-&.3&.&%"3C=*D&j&&&&k,C&717&"B"%>*21(-&%1-2*/&$C*&*2"&4C3*,#"%&2.3&C(%".3,(.$="&"[+"4*.*1,(3&.(7&4,#+=.1(3D&k,C&4.(&*.J"&3*"+3&*,&.B,17&,%&%"7C4"&*2"&1#+.4*&,0&.==&*2%""&34"(.%1,3/&+.%*14C=.%=>&62"(&1*&4,#"3&*,&)(.(4"&.(7&1(3C%.(4"&Y]`PZ&+%,4"33"3D

You did something wrongIC3*,#"%3&32,C=7&4,#+=.1(&10&>,C&#13%"+%"3"(*/&,B"%3*.*"&,%&=1"&.$,C*&*2"&+%,7C4*3&.(7&3"%B14"3&>,C&+%,B17"&,%&*2"&(.*C%"/&%".3,(&.(7&.#,C(*&,0&42.%-"3D&P0&>,C&.%"&%C((1(-&>,C%&$C31("33&*2.*&6.>&b&,%&>,C&2.B"&.&%"("-.7"&"#+=,>""&62,&13&4,##1**1(-&3C42&.4*3&b&>,C&32,C=7&"[+"4*&62.*"B"%&4,(3C#"%&4,#+=.1(*3/&=.63C1*3&.(7g,%&4%1#1(.=&42.%-"3&4,#"&>,C%&6.>DE2"&4,#+=.1(*3&.(7&*2"&=1.$1=1*>&*2">&$%1(-&4.(&$"&.B,17"7&10&>,C&%C(&.(&2,("3*&.(7&21-281(*"-%1*>&$C31("33D&k,C&.=3,&(""7&1(*"%(.=&,B"%31-2*/&#.(.-"#"(*&.(7&.C71*&+%,4"33"3&*,&2"=+&7134,B"%&.(7&"=1#1(.*"&.(>&"#+=,>""&#134,(7C4*D

Customer didn’t understand S,#"&%"+,%*"7&4,C%*&4.3"3&P5B"&%".7&3""#&*,&$"&$.3"7&,(&.&=.4J&,0&4,(3C#"%&C(7"%3*.(71(-&*2.*&3+C(&,C*&,0&4,(*%,=D&E2"&7".="%&717(5*&("4"33.%1=>&7,&.(>*21(-&6%,(-/&$C*&*2"&4,(3C#"%&3""#"7&3C%+%13"7&.*&2.B1(-&*,&+.>&0,%&4,B"%&1(3C%.(4"/&,%&*2"&-.+&.#,C(*/&,%&2.B1(-&.&B"214="&%"+,33"33"7/&,%&.(>&,0&.&(C#$"%&,0&,*2"%&+%"714*.$="&,C*4,#"3D&E2"&)(.(41(-&7,4C#"(*3&-"("%.==>&4,B"%&*2"&0""3/&%"3+,(31$1=1*1"3&.(7&4,(3"NC"(4"3/&$C*&*2"&4,(3C#"%&717(5*&%".7&,%&C(7"%3*.(7&*2"#&C(*1=&=,(-&.0*"%&*2"&7,4C#"(*3&6"%"&31-("7DP(&,("&%"4"(*&4.3"/&*2"&4,(3C#"%&.33"%*"7&2"&2.7(5*&%".7&*2"&%"*.1=&3.="3&4,(*%.4*&,%&$""(&-1B"(&*1#"&*,&%".7&1*D&:"&3.17&2"&31#+=>&31-("7&.(7&1(1*1.="7&62"%"&2"&6.3&*,=7&*,D&:"&=.*"%&4,#+=.1("7&.(7&3C"7&%"-.%71(-&.&(C#$"%&,0&,$=1-.*1,(3&2"&2.7(5*&C(7"%3*,,7/&.(7&*2"&=.63C1*&717(5*&*C%(&,C*&6"==&0,%&*2"&7".="%DX("&3*%.*"->&*,&.B,17&*213&6,C=7&$"&*,&*.J"&*2"&*1#"&.*&4=,31(-&*,&"7C4.*"&*2"&4,(3C#"%D&k,C&4,C=7&+,1(*&,C*&J">&+%,B131,(3&,0&*2"&7,4C#"(*3/&3C42&.3&=.*"&+.>#"(*&+%,B131,(3/&0.1=C%"&*,&1(3C%"/&.(7&4,(71*1,(3&,0&.(7&4,(3"NC"(4"3&,0&7"0.C=*D&k,C&4,C=7&"#+2.31W"&*2"&1#+,%*.(4"&,0&%".71(-&*2"&7,4C#"(*3&.(7&.3J1(-&NC"3*1,(3&$"0,%"&31-(1(-/&.(7&$.4J&1*&C+&61*2&.&61==1(-("33&*,&-1B"&4,(3C#"%3&*1#"&*,&%".7&.(7&.3J&$.314&NC"3*1,(3DE2"&17".&13/&10&>,C&*"==&*2"&4,(3C#"%&62.*&2.++"(3&,(&7"0.C=*/&2"&,%&32"&13&(,*&3C%+%13"7&b&.(7&13&="33&=1J"=>&*,&4,#+=.1(&b&10&*2"&4.%&13&%"+,33"33"7D&&&

Customer is unreasonable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

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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