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

NORTHLANDDEALERS

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

V i s i t u s a t w w w . n o r t h l a n d d e a l e r s . c o m

ALSO NIADA Mobile Service for Smart Phones PLUS NIADA’s Whann Participates in First FTC Roundtable

QR CODES 101: POINT, SCAN, SELL

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FOR INFORMATION ON HOW TO BECOME A MEMBER PLEASE CONTACT ALLEN [email protected](800) 879-3433

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] NORTHLAND DEALERS IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIA-TION SERVICES CORPORATION, 2521 BROWN BLVD., ARLING-TON, 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 NORTHLAND DEAL-ERS OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NORTHLAND IADA OR NIADA, DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT © 2011 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED.

STATE MAGAZINE MGR./SALES Troy Graff • [email protected] COVER BY Mike MorganEDITOR Mike Harbour • [email protected] MGR. Jacob Kerns • [email protected]/PRODUCTION MGR. Christy Haynes • [email protected] Nieman Printing

MAGAZINECONTENTSINSIDE

ADVERTISERSINDEX

4 QR Codes 101: Point, Scan, Sell 8 NIADA Mobile Service for Smart Phones 12 NIADA’s Whann Participates in First FTC Roundtable

ADESA ....................................... Inside Back CoverAutoTrader.com .................................... Back CoverCars.com .......................................................... 11Chase ............................................................... 13Manheim.com ............................ Inside Front CoverManheim Minneapolis .......................................... 5SmartAuction ...................................................... 9Western General / Protective ............................... 7

Several educational sessions from the recent Conference of Automotive Remarketing (CAR) are now up and run-ning free of charge on NIADA.TV. Over 12 sessions from the recent conference will be posted to www.NIADA.TV throughout April and May, so check back often over the next few months. These sessions will be posted in NIADA.TV’s “Remarketing” Channel as well as in the “New Programs” Channel. Get caught up on the latest in “Remarketing” at your leisure 24/7 by visit-ing to niada.tv.

NEW EDUCATION SESSIONS FROM THE CONFERENCE OF AUTOMOTIVE REMARKETING ARE NOW RUNNING ON NIADA.TV

A box of blank Colorado title certificates failed to be delivered to the El Paso County Motor Vehicle Office on Friday, March 11. The control numbers are H8192001 through H8194000.

SECURITY FEATURES INCLUDE:• Printed on 8 ½ x 11 security paper.• Control number is on the lower right hand corner printed in red.• The background is composed of three vertical stripes. The outside stripes are light blue in color;

the center stripe is light salmon pink with the state seal printed in the center.Please note the missing title certificates with the control numbers listed above are now void and

may not be used as proof of ownership. If presented for any vehicle ownership purpose, they will be considered fraudulent and if any of them are turned in to your office, forward the information to Crystal Soderman, title services manager, at [email protected] or the Colorado State Title Section at 303-205-5608.

Missing Blank Colorado Certificates of Title

need additional information?Go to www.niada.com or call (800) 682-3837

save the

dates Registration rates start at only $395. Register online at www.niada.coms Caesars Palace is the host hotel and offers $144 per night room rates.s Education for all aspects of your business. s Solutions and Services for your dealership in the exhibit hall.s Evening events to network with peers in the industry.s And Much much more

JUNE 19-23, 2011

Protective’s Asset Protection Division is now an NIADA National Corporate Partner. The division brings more than 40 years of experience in the automotive sector providing F&I products and solutions focused on enhancing profitability and customer satisfaction to 8,000 dealerships throughout the U.S. and Canada.

“Protective and the Asset Protection Division look forward to bringing our years of experience and F&I leadership to further relationships with independent dealers across the country,” said Rick Kurtz, vice president of dealer sales. “By bringing our proven success strategies to this marketplace we will increase dealership F&I revenue with a variety of solutions tailored to their unique needs. Our proven training approaches, new F&I revenue strategies, menu solutions and advanced F&I technology nicely compliment what the independent dealerships tell us is important to them.”

Protective has created a unique and important vehicle service contract product exclusively designed for the independent dealer audience. Through a careful examination of marketplace needs, this product will bring attractive terms and eligibility guidelines and competitive pricing to the independent dealership and their end consumers.

Protective NCP


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PointScanSell

Has your dealership implemented a process for engaging customers and shoppers with QR codes? If the answer is no, don’t worry because you’re not alone. If you don’t know what a QR code is or have heard of it and don’t know how it can benefit your dealership, you’ll find some answers here. QR (Quick Response) codes are becoming increasingly popular for any business looking to provide information to current and potential customers quickly and effortlessly.

The codes are a byproduct of the smartphone movement sweeping America. Nielsen reports 31 percent of U.S. mobile phone owners had a smartphone as of December 2010 and expects smartphones to become the majority by the end of this year. eMarketer predicts smartphone ownership will reach 43 percent of the U.S. mobile population by 2015.

QR codes have optimized the way information is shared, making it easier to direct somebody to your information on-site, such as inventory, coupons, service, specials, blogs, events and more. Smartphone owners have access to a wide variety of apps and QR code readers are a standard app on most, if not all, smartphones. Because the technology is so new and progressive, not all QR code scanners can read all QR codes, but these instances are rare and will become fewer as the technology advances.

The basis for QR codes is quite simple and nearly the same as the standard barcode seen on merchandise tags or VIN stickers on vehicles. Barcodes were developed to carry information in a very small space that is scan-able; they’re limited in that they are horizontally shaped. QR codes work the same way, but more information can be carried since they are based on horizontal and vertical dimensions, so there is no limitation to what or how much information can be included.

Common types of QR-coded information include URLs, text, phone numbers and SMS. Remember, each QR code is unique, so there is no end to the possibilities here. Here is an example of how using QR codes can help you gather potential customer’s information. Say you have customers looking at vehicles after normal business hours (or on Sundays), but choose to call later to learn more about a certain one. This is the typical thought process of many people. By having a QR code on your vehicle, you can get someone engaged into requesting more information at that moment while lessening the risk of the customer losing interest by morning.

At the same time, your potential customers are excited because they get to use their smartphone technology by simply scanning the QR code. From there, they can get to your mobile website, maybe grab a mobile coupon or check out whatever dealership info you want to share. We recommend you have some type of quick form for people to complete for a coupon. Guess what? Now you have contact information; in other words, my friends, you’ve got leads!

As with email 15 years ago and texting 5 years ago, people are excited about how technology is giving them more ways to communicate today. During the sales process, a lot of customers will prefer this because of the non-invasive way of communicating with the dealership. You will see companies offering a free online book by scanning a QR code in an airport or a major advertisement in a publication with a code printed in the corner. These are all enticements that target engagement from potential customers at the peak of their initial excitement or curiosity.

Because it is effortless to scan a QR code, pairing them with a marketing strategy will help you capitalize on customers engaging when their emotional excitement is high. The more time that passes, the more distant the customer becomes. You can see how powerful QR codes can be with convenience and timing.

Be careful not to be overwhelming in requesting the customer’s information. Use QR codes in a variety of different ways to not only generate leads, but to deliver your message. For instance, in your next mailer, create a QR code that sends them to a web form that gives the customer a free car wash. All they have to do is complete and submit the form, then present the generated coupon to a sales manager. For a softer approach, implement a process to get more Facebook fans by creating a QR code that takes a person to your Facebook Fan page, keeping them totally in their comfort zone. Be sure to scan the codes in this column to better understand how QR codes can work for your dealership.

BY DUSTIN JANSSON Dustin Jansson provides consulting for e-commerce and social media strategies for dealers, as well as providing a full suite of inventory management, marketing, and photography solutions. Staying ahead of the technology curve in the autos business is his passion. Contact him at 303-232-3435 or [email protected].

QR CODES 101:QR codes have optimized the way information is shared, making it easier to direct somebody to your information on-site, such as inventory, coupons, service, specials, blogs, events and more.



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Since the credit crisis began a couple of years ago, it’s no secret used vehicle inventory has been tight. The Cash for Clunkers program only compounded the problem. Now, the tragic and devastating disaster in Japan has disrupted the automotive supply chain, causing a ripple effect not only from the suspension of new car production, but also from a lack of component output.

With further strain in the market, our industry has to rethink the new timeframe to reach equilibrium. This following indications of a peak in the index: wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) declined 1 percent in February after rising in each of the previous five months, according to the Manheim Used Vehicle Value Index.

The trend has been prices at the auction have strengthened because of the decrease in new deliveries. Many franchise dealers have built up used inventories in anticipation of a new vehicle shortage that will trickle down to a used vehicle shortage. As a result of these factors, used prices are likely to remain high, making strategic inventory selection even more important for dealers.

Given market factors, dealers are wise to deepen their understanding of lender programs to help determine the right inventory to have on the lot. Here are suggestions for navigating challenges and keeping deals profitable.

Relationship, relationship, relationshipThe dealer-lender relationship cannot be

undervalued, especially when the market is tight. If you haven’t already developed a strong relationship with your lenders, now is the time. View it as a partnership. Build an honest and professional relationship with underwriting. Talk to your credit analyst. Leverage the knowledge of your account manager or sales rep to gain more insight into the program. Ask for training when needed, so staff can be well educated on making the process as smooth as possible. A good

dialogue with your lenders goes a long way to avoiding funding problems that can cost time and money, leaving you with unsold units.

Start at the sourceDealers going to the auction to source

inventory will face higher prices, but can prepare by carefully reviewing available lending programs prior to making purchases. A strong understanding of program guidelines is critical to avoiding the costly mistake of buying the wrong inventory. Some examples of this preparation include:

Know which pricing guides are used. NADA, Kelley Blue Book or Black Book? Pay attention to trends in value, too. For example, NADA recently announced its used auto values for April would reflect large increases in most vehicle segments compared to March, based on the impact of the crisis in Japan. At the time of the announcement, auction prices for two-to-five-year-old compact cars in March had increased by about 11 percent compared to February. There is little question price increases are to be expected in the short-term.

Understand the guidelines used to structure deals. Which adds are allowed and which are not? Some lenders will allow leather, sunroof or wheels. Others will not. Knowing which adds are permitted can mean

F&I Perspectives BY URI SZAPIRO

the difference between making $1,000 or $2,000 on a deal. Don’t lose out on value. The last thing dealers want in a strained market is a short deal.

Auction receipts. Lenders may be more open to a slightly bigger advance or other adjustments when you have proof of higher auction prices. Ask if an original auction receipt could be worth a few hundred dollars more in advance.

Mileage and term flexibility. Some lenders may be more flexible or generous with mile allowances and/or terms due to the tightness of the market. The assumption is vehicles are on the road longer now because of reduced inventory. However, these adjustments may not be advertised or published with the program guidelines. Here is where that strong working relationship comes into play. Ask about such adjustments. For example, whereas before the lender wanted a limit of 60,000 miles for a 60-month loan, now 65,000 might be acceptable. Or lenders might be willing to add six months to the term on premium imports as a way of helping the dealer. Staying in touch with your lender can give you the confidence of knowing you have some leeway going to auction.

Having a close relationship with lenders is strategic advantage, especially during a tough period in the market. Dealers are wise to communicate with lenders more often, be receptive and pay attention to the program details and guidelines. Don’t shy away from asking for what you need to understand and master the program. Strengthening your lender relationships may even help you stay on profit targets and solve some of the main challenges you face in today’s market. What’s more, the effort you put in now will pay off beyond the bump in the road today, and into the future.

BY URI SZAPIRO Uri Szapiro is vice president of originations at AFS Acceptance, LLC, an established, full-service auto finance company serving franchise and independent car dealers’ subprime financing needs since 1996. For more information, visit www.afsacceptance.com or call 877-223-3254.

Don’t shy away from asking for what you need to understand and master the program. Strengthening your lender relationships may even help you stay on profit targets and solve some of the main challenges you face in today’s market.


BY URI SZAPIRO



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This spring, NIADA members will have access to a new mobile application tool from NIADA that will enhance their productivity and profitability and stay up to date on the latest developments impacting their dealership.

This new tool, NIADA Mobile Service, is accessible by Apple iPhones, Android-type phones and other select models. It puts at members’ fingertips a wealth of critical data to help them make better vehicle appraisal, purchase and retail sales decisions.

Now, members can access their subscriptions to appraisal services from NADA Guidebook, Kelley Blue Book, Black Book, and Galves Auto Price List. They also will access run lists from participating auctions. Furthermore, NIADA Mobile Service links them by smart phone to select content on NIADA.com.

Here’s how NIADA Mobile Service will streamline your operations:

On the lot or on line: More quickly appraise a vehicle, for customers at your lot or those selling online through sites such as Craigslist. Access your guide book vehicle appraisal service or a market report – or your subscription vehicle history report service – on the specific unit. Have at your fingertips the right current facts to pencil your best deal.

Buying from auction: You can access the auction’s pre-sale run list while at the auction or sitting in your office. You may view the inventory then, once you land on a unit you like, press on the appropriate smart phone icons to pop up auction-supplied information about the unit, its appraisal data, and a vehicle history report. Continual and timely updates ensure you have the freshest available data.

During a moment of downtime: Activity suddenly slows its hectic pace for a few minutes, so you use the time to access the NIADA website. There you check some key association information or watch a NIADA.TV video you’d put off. The service also alerts you to urgent messages that might require immediate action.

Designed for NIADANIADA Mobile Service was developed

by leading automotive mobile applications developer and NIADA technology partner and advisor GigglePop.com Inc. The company is importing NIADA web content and coupling it with existing GigglePop software mobile applications. GigglePop’s technology is known

for speed, accuracy and, of course, mobility. Its fat-finger icon or button designs are a special value when searching for key information when working in distracting environments like auctions. These large icon designs help users easily find and stroke with their fingers the right icons or buttons they want, reducing keystroking errors. As NIADA’s technical partner, GigglePop will continue to support Mobile Service and be an industry liaison for NIADA Mobile.

Accessible subscription guidebook data and features through Mobile Service include:s Customizable software settingss All guidebook regions or states include s VIN look-up decoders Stores booked vehicles, recall in an instants Enter personal notes on booked vehicless Lists and sorts appraised vehicless Re-values saved vehicles with each new

updates Automatically updates wirelesslys Barcode scanning capability s Seamless integration with all GigglePop

valuation tools, including vehicle history report subscription services and auction run lists

s SmartBid Market Report s Large easy-to-read fonts

NIADA Mobile Service also makes your day at the auction simple, easy and productive. Accessible auction run list data from participating auctions includes:s Search by lane or run number to view

auction vehicle datas Barcode scanning capability s Continual auction run list updates even

while auction is in progresss View those late arrivalss Save target vehicle data for future references Enter personal notes and bid pricing on

specific vehicle recordss Lists and sorts saved target vehicless Seamless integration with all GigglePop

valuation tools, including Guide Books, Vehicle History and participating Market Reports

In addition to providing mobile access to these key services, NIADA Mobile Service also connects members to select NIADA content on the NIADA site. Wherever you are, you can stay on top of moving legislative decisions, regulatory compliance issues, new NIADA member services and educational programs.

Especially in today’s market, still recovering from the recession, this mobile service will help members operate more profitably. It puts at hand the insight needed to buy and sell more profitably and keep abreast of industry news and events influencing the used vehicle retail market. The more competitive dealers today are clearly adapting to our changing industry by using mobile technologies and solutions to help them better manage their used vehicle operations, inventories, vehicle sourcing and retail sales processes.

D E L I V E R S T A N G I B L E M E M B E R B E N E F I T S

Members’ use of the NIADA Mobile Service tool will help them:s Identify quality, retail-ready inventory: Mobile

accessibility to auction inventory as well as vehicle valuation guides can help dealers meet challenges presented by the economic fallout from the last three years’ depressed vehicle sales, drop in leasing activity and reduced stream of fleet rentals into the remarketing stream.

s Source the right-priced vehicle for the customer: Reduced levels of wholesale units flowing into remarketing channels have made it more difficult to source and match the right vehicle to customers’ ability to pay. NIADA Mobile Service helps dealers locate those vehicles at an acquisition price the customer can afford and finance, while providing enhanced profit for the dealer.

Often spread thin by needing to be in the office, on the lot and at the auction seemingly simultaneously, the independent used auto dealer must use time and resources wisely. By adding this new Mobile Service tool to the NIADA portfolio of member services, the association helps its members access critical association information and related vehicle valuation, history reports and auction run list services right from their smart phone.

As market needs continue to change and dealers seek new ways to remain competitive, like purchasing inventory outside their local market areas and using web-based competitive vehicle analysis and pricing tools, GigglePop and NIADA will continue to enhance Mobile Service to help dealers make the most informed and profitable business decisions.

BY SCOTT LILJA, VICE PRESIDENT, NIADA MEMBER SERVICES

N E W N I A D A M O B I L E S E R V I C EF O R S M A R T P H O N E S P U T S K E Y A P P R A I S A L D A T A , M E M B E R N E W S A T Y O U R F I N G E R T I P S




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We know that used car buyers today must navigate a minefield of unscrupulous sellers and haphazardly repaired vehicles. Among the worst offenders are “curbstoners” – unlicensed individuals who buy and sell used cars to make a quick buck from unwary victims. That is why we put together a handy guide to help used car buyers detect collision repair. “ A Used Car Field Guide for Detecting Collision Repair ,” is an online booklet full of useful tips for spotting subpar repair work, ensuring there are no disparities between what a seller says and what the car shows. We’ll share some quick, simple things you can do to uncover any telltale signs of collision damage when buying a used car, including:

• How to identify whether body panels have been replaced • How and where to detect paint abnormalities • How to detect frame damage, and more!

STOP CURBSTONING RELEASES CONSUMER GUIDE: D E T E C T I N G C O L L I S I O N R E P A I R

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www.stopcurbstoning.com

A Used Car Field Guide for Detecting Collision Repair

It used to be fairly easy to spot the signs of a collision repair: overspray, bad color matching, and misaligned body panels. Now, with computers assisting with everything from frame straightening to color matching, it’s a lot harder to tell if a vehicle has been in a collision, especially if the repair was done well.

That’s great if you want your car �xed after an accident. But it makes things hard if you’re looking for a good used car.

NOTE: We’re not saying to avoid any car that’s had bodywork. A vehicle that’s been properly and professionally repaired after a minor fender-bender could be a terri�c bargain. We are saying to watch for disparities between what a seller says and what his or her vehicle shows.

Of course, no one can catch all the bad cars. That’s why an inspection by a trusted, experienced mechanic, along with a

vehicle history report form a service like AutoCheck, are absolutely vital steps to take before payingmoney for any used car from a private party.

However, here are some quick, simple things you can watch for when you’reout looking at cars. One element on your side is simple greed: curbstoners want to maximize their pro�ts. After all, they only need to fool a buyer long enough to collect the cash. So, curbstoned cars rarely get top-notch repair treatment.

At A GlanceA walk around the vehicle in good light will often disclose whether or not a body panel has been replaced or repainted. Look at thecar from several angles to make sure the color matches across all the body panels.

Look also at the re�ections in the paint – factory paintwork is mirror-smooth, even when dirty or dinged up. Signs of repair often reveal themselves in a slightly rippled re�ection, or a re�ection that doesn’t exactly line up across two body panels. Be sure to look at re�ections from several angles.

If the car is so dirty that you can’t see re�ections, you might need to ask for the car to be washed. While you’re sighting down the sides of the car, check to make sure the body panels all �t �ush, and that the gaps between the panels are even from top-to-bottom and side-to-side.

Good places to look for paint overspray or excess paint include:

Around electrical conduits in door jambs

Near door, hood, and trunk hinges

On window and door seals

Around seals and �ttings in the engine compartment �rewall

Along the trim pieces inside wheel wells

Sun damage typically affects large body surfaces like hoods and roofs. When you see small patches of peeling clear-coat, especially in corners and other hard-to-reach areas, they may indicate a poorly prepped paint job.

At the same time, beware of too-perfect paint. Even a garaged, well-cared-for used vehicle will have small paint chips and even minor dings. If the chin fascia beneath the front bumper is pristine, it may have been recently replaced or repainted.


STOP CURBSTONING RELEASES CONSUMER GUIDE: D E T E C T I N G C O L L I S I O N R E P A I R



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Among the many opportunities offered to attendees of NIADA’s 65th Annual Convention & Expo in Las Vegas is the General Session at 9 a.m. on Tuesday, June 21. Entitled “State of the Industry and Setting the Course,” the kick-off session will feature discussion and audience interactions that focus on federal legislation, regulations and compliance, future issues, plans of action and how these will affect your dealership operations.

There will be many topics covered during the session, so we’ll simply recap a few of the most important ones here: NIADA’s meeting with the White House, the Consumer Recall Protection Act of 2011, the FTC and CFPB.

The White HouseLast year, NIADA General Counsel Keith

Whann and Federal Advocates, the association’s governmental advocacy partner, sought to meet with the Obama administration during the

creation of the Consumer Financial Protection Bureau. The association sent a letter to President Obama requesting “the opportunity to work with the administration to reform our industry in common-sense ways that achieve real safeguards for consumers, that promote accountability and transparency, and that really work.”

The White House replied to our request and the meeting took place just a few months ago. Whann and Federal Advocates’ Sante Esposito were afforded the opportunity to meet with Obama’s special assistant for justice and regulatory policy.

As Whann reported in this column in April, the trio had a great conversation about legal, regulatory and policy issues related to the auto industry. A framework for an ongoing dialogue was established and the parties agreed to explore possible areas where there may be regulatory or policy gaps in the industry that should be examined.

The Consumer Recall Protection Act of 2011

Also known as SB 330, NIADA closely followed this legislation when it was first known as S.3302, the Senate Motor Vehicle Safety Act of 2010. Its stated purpose is “to prohibit the sale of any product to a consumer that is subject to a recall, and for other purposes.” The bill directs the Transportation Department secretary, through NHTSA, to issue a regulation to require persons who terminate a motor vehicle contract due to flood or water damage, collision, fire damage, theft and recovery, or any circumstance that adversely affects the fair market value of the vehicle to disclose information of such vehicle damage to the public.

The association has already scored a partial victory during the Senate draft. Working primarily with Sen. John Thune, R-S.D., his staff (Brenden Plack), and committee staff (Alex Hoehn-Saric and Chris Herndon), and as a result of concern raised by Whann and his proposed suggestion, section 310 was dropped. This provision would have seriously hurt used vehicle commerce by imposing tremendous compliance costs and liability exposure for dealers while increasing the safety risk for consumers by pushing unremedied vehicles into the unregulated, private-sale used market.

NIADA will continue to monitor SB 330 as it continues its way through the lawmaking process.

Assisting the FTCPerhaps no other agency has had more of

NIADA’s attention than the FTC, which held an April roundtable to “explore consumer protection issues pertaining to motor vehicle sales and leasing” and to determine “what consumer protection issues, if any, exist that could be addressed through a possible rulemaking or other initiative.”

Whann was a part of that landmark event, which consisted of six panel roundtable discussions on topics from understanding the motor vehicle sale to dealer bankruptcies, plus a lot in between. The discussions were moderated by FTC staffers and Whann was fortunate enough to be asked to participate on two panels. As he mentioned in the May issue of UCD, it was a productive day despite the time constraints.

According to Whann, given the fact there appears to exist a somewhat unbalanced and hostile view amongst some in the regulatory community towards dealer-assisted financing, one of the most important tasks as an industry will be to assist the FTC and the consuming public in better understanding the mechanics of dealer-assisted financing. We must also collectively establish a facts-based record upon which the question of whether to engage in unfair and deceptive practice rulemaking may be considered.

To learn the latest about these and other vital topics, be sure to attend the NIADA Convention and Expo at Caesar’s Palace in Las Vegas later this month.

NIADA’s Whann Participates in First FTC RoundtableFEDERAL ADVOCATES is NIADA’s governmental advocacy partner. To read past lobbying reports, visit www.niada.com/legislative_and_legal.php


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ManheimManheim has invested heavily in mobile technology during the past several years with a mobile website and, more recently, an iPhone app. The mobile site replicates much of the functionality of Manheim.com, while the iPhone app allows dealers to instantly scan VIN barcodes to pull up MMR results.

While at an auction, dealers are able to scan the VIN barcode located on the work order sticker. If the dealer isn’t at auction, he can scan the VIN barcode from the manufacturer label on the vehicle. Dealers also have the ability to input the VIN or year, make and model to obtain MMR. And they can save their MMR searches on the mobile app.

Upcoming functionality will include the ability to review CarFax and Autocheck reports, bid-and-buy-now functionality as well as an app for Android phones.

Cars.comDuring the past four years, Cars.com has been the trailblazer in the mobile sphere of online automotive shopping. The site was the first to launch an optimized mobile product for vehicle shoppers in June 2007, giving them on-the-go access to the most popular tools on the wired site, including listings and research. Since then, Cars.com has made several upgrades and added new functionality, making the mobile site faster and easier to use.

iPhone AppCars.com released a free iPhone app for car shoppers in February 2010. The app allows mobile shoppers to search dealer and private party listings efficiently and easily to locate the vehicle they want while away from their computer or on the lot. This smartphone app continues to be extremely important to the Cars.com business, as nearly one-third of all mobile visits to Cars.com are made from the iPhone.

The Cars.com app gives car shoppers access to the most popular functions on the Cars.com website, including the ability to search millions of new, used and certified vehicles.

Android AppCars.com further expanded their mobile product line with the release of a free Android app in March 2011. The app, similar to the site’s iPhone product, exposes dealer inventory and helps customers find the best vehicle for them while on the go. The app gives Android users access to the most popular features of the Cars.com site.

Black BookWith Black Book’s mobile apps for iPhone and Android, you can take the industry’s most timely, independent, and accurate market values with you on your phone or other mobile device. Add the power of daily updates, and you have a near real-time valuation resource. Because Black Book’s mobile apps are built specifically for iPhone and Android, they run faster and are more responsive.

VIN SCANNING: Simply scan the vehicle’s VIN barcode with your phone’s built-in camera and it will be automatically booked out for you. You also have the ability to further customize the evaluation by adding location, mileage, and optional equipment.VEHICLE HISTORY REPORTS: Sure the vehicle may look good, but how will you know if it has a checkered past? CARFAX vehicle history reports are integrated and are available at the touch of a button, and Experian’s AutoCheck will be available in June.

EXTENSIVE MARKET COVERAGE: Black Book’s mobile apps cover the last fifteen model years, and include more than 18,000 separate used vehicle values. Black Book provides wholesale, trade-in, and retail values for vehicles in a wide range of conditions (extra clean, clean, average and rough). Vehicles can be looked up by inputting the VIN, either manually or by scanning the VIN barcode or with our easy-to-use drilldown menus.

MobileApps

*According to Greystripe 2011

I N D U S T R Y



14

C A R F A X L A U N C H E S A D V A N T A G E P R O G R A M F O R D E A L E R S

It’s the beginning of the baseball season. Experts are poring over team rosters, game schedules and statistics to predict the season’s outcome. The fun and fear is the element of the unknown. The same is true of the new Con-sumer Financial Protection Bureau. As it takes shape, we are checking its roster of leaders and their speeches and public announcements to predict first-year activities. The fear, not so much the fun, is the element of the unknown.

One unknown is how the bureau and the Federal Trade Commission will define an unfair, deceptive, or abusive act or practice in motor vehicle financing. The Dodd-Frank Act authorizes them to make and enforce rules to prevent such acts and practices in consumer financial products and services. Many states already have similar statutes, but each state has its own unique definitions and case law. Some states have developed a large body of case law defining the standard, but the Dodd-Frank Act will add a unique layer of federal law, regulations and court decisions. State attorneys general also can sue to enforce federal law, so we may see case law develop based on unique state decisions to enforce. In addition, state laws that provide greater consumer pro-tection will continue to be enforceable.

The FTC recently announced it’s conducting public roundtables in three to five cities around the U.S. to dis-cuss consumer protection issues in connection with motor vehicle sales and leasing. It published a list of discussion topics indicating the acts and practices under the most in-tense scrutiny. The list includes yo-yo financing, finance company incentives to dealers resulting in more expensive credit, interest rate mark-ups and upfront charges of which the consumer is unaware, negative equity financing, selling and financing add-on products and services and use of GPS location devices. Details may be found at ftc.gov.

Information from the roundtable meetings will likely shape the FTC’s view on whether the practices discussed are in any way unfair, deceptive, or abusive acts or prac-tices. The meetings will likely be a game changer. Whether or not you participate in the meetings, you should review your dealership’s practices in these areas. The legal stan-dard for review will develop over time. For now, I suggest the common person standard: Would you be comfortable having your practices displayed on the Jumbotron at the ball game?

BY CHIP ZYVOLOSKI Chip Zyvoloski is senior attorney for indirect lending at Wolters Kluwer Financial Services. For more information, visit www.wolterskluwerfs.com/indirect.

P R E - G A M E W A R M - U P : R E V I E W F I N A N C I N G P R A C T I C E S A H E A D O F C F P B A N D F T C R U L E S

Carfax is giving dealers a powerful new way to attract customers using the Carfax brand. The Carfax Advantage™ Dealer Program distinguishes Carfax-subscribing dealers that are committed to transparency. Through the program, partici-pating dealers can set themselves apart from their competition. Used car shoppers know they can buy with greater confidence when shopping at any Carfax Advantage dealership.

“Being a Carfax Advantage dealer with unlimited access to Carfax Reports, Carfax has quickly become one of our most valued partners,” said Adam Warmka, general sales manager at Dick Brantmeier Ford Lincoln Kia in Wisconsin. “We use them when we’re buying cars to make sure everything checks out and our salespeople are constantly asking for printed copies so they can show our customers. Every car we list online has a Carfax

Report. Carfax is in our advertising, out in front of our dealership and on every car in our inventory. We use them every day.”

According to recent research, more than 80% of used car shop-pers surveyed said they would pre-fer to shop at a Carfax Advantage dealership. Carfax Advantage deal-ers have another way of building

confidence with used car buyers and help customers make faster buying decisions.

“Our participation in the Carfax Advantage program has helped us build credibility with customers,” said Dan Moltz, general manager at Car Center of Waldorf, Md. “We show the Carfax up front on every car. Customers appreciate it and the result is additional sales and higher customer satisfaction. Also, by pulling Carfax Reports prior to buying inventory, we shorten our turn, which we all know increases retained earnings. The more you turn, the more you earn.”

As part of the program, participating dealers have unlimited access to Carfax Vehicle History Reports and Carfax Auction Quick Check, plus a Consumer Information Pack for every car being retailed. Carfax also provides enhanced point-of-sale ma-terials for free, including new items that highlight Carfax Ad-vantage dealerships.

“Transparency greatly influences consumers when making their dealer choice,” said Bill Eager, vice president of Carfax. “Thousands of consumers we tested said that the Carfax Advan-tage program means trust and confidence. They know immedi-ately that a Carfax Advantage dealer will show them the Carfax. As a result, participating dealers enhance their reputation and sell more cars faster.”

N E W P R O G R A M D E S I G N E D T OI N F L U E N C E S H O P P E R ’ S D E A L E R C H O I C E , E N H A N C E C O N F I D E N C E




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