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D E A L E R S

A S S O C I A T I O N

DALLAS, TEXAS Permit No. 2079

PAID

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INSIDE

MAGAZINECONTENTS

MESSAGE FROM TONY WILKERSON, EXECUTIVE DIRECTOR

One Day at a Time

7 AIADA Convention 2011 8 QR Codes 101: Point, Scan, Sell 23 Special Convention Speaker: Siran Stacy

New education sessions from the Conference of Automotive Remarketing are now running on NIADA.TV Several educational sessions from the recent Conference of Automotive Remarketing (CAR) are now up and running 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 visiting to niada.tv.

ADVERTISERSINDEX ADESA ...........................................................15 Auto Finance....................................................17 AutoTrader.com ................................ Back Cover Cars.com............................................................9 Center Point Auto Auction ................................19 Chase ............................................................ 18 Manheim.com ..................................................5 Manheim Mississippi ....................................... 11 Manheim Nashville ...................Inside Back Cover SmartAuction ...................................................13 Sterling Credit ......................... Inside Front Cover United Acceptance ......................................... 16 Western General / Protective .............................3

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV NIADA HEADQUARTERS: 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR TROY@NIADA.COM.

THE ALABAMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES 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 AIADA OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NIADA, DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT © 2011 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED. VISIT THE NIADA WEB SITE AT WWW.NIADA.COM. STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITOR Mike Harbour • mharbour@niada.com PRODUCTION MGR. Jacob Kerns • jacob@niada.com ART/PRODUCTION MGR. Christy Haynes • christy@niada.com PRINTING Nieman Printing

AIADAOFFICE 120 VULCAN ROAD BIRMINGHAM, AL 35209 PHONE: (205) 942-1000 FAX: (205) 942-3565 WEB SITE: WWW.ALABAMAIADA.COM TO BECOME A MEMBER OF AIADA, PLEASE CONTACT TONY WILKERSON AT (800) 239-2423 OR TONY@ALABAMAIADA.COM

EXECUTIVE COMMITTEE EXECUTIVE DIRECTOR TONY WILKERSON

JOHN DUNN SYLACUGA

CHARLES BUTLER ATHENS

FRANK MILES JACKSONVILLE

PRESIDENT KEN MCFARLAND HUEYTOWN

TOMMY GREENE BIRMINGHAM

ERNEST CRUMP JASPER

KERRY MITCHELL ALBERTVILLE

BILLY LEVINS MONTGOMERY

MARK CRUMP JASPER

DINK TUCKER BIRMINGHAM

CONNIE OSWALT NORTHPORT

J.W. CUNNINGHAM NORTHPORT

LANCE TURNER ANNISTON

JAMES DENNIS PRATTVILLE

ANTHONY UNDERWOOD BESSEMER

WILLIE COLVIN TUSCALOOSA

JERRY GILES TUSCALOOSA

JOHN PIGG PRATTVILLE

TRACY HONEA ALBERTVILLE

CHAIRMAN OF THE BOARD RONNIE ELLISON CALERA

BARRY SEARCY MUSCLE SHOALS

MIKE JONES DOTHAN

ROBERT CASE HARTSELLE

DIRECTORS PAUL CLABORN ALBERTVILLE

ACTIVE PAST PRESIDENTS TODD SMITH DOTHAN

CHARLES LITTLE SATUSMA VERTA BARR MEHERG TUSCALOOSA

PRESIDENT-ELECT RANDY BURNS GADSDEN VICE PRESIDENT CHARLES MORING MIDLAND CITY SECRETARY/ TREASURER TODD ODEN BIRMINGHAM

REX CANTERBURY FAYETTE

O’ NEAL CLEVELAND PLEASANT GROVE

DICK WRIGHT SYLACAUGA HENRY MULLIAX ANNISTON ASSOCIATION ATTORNEYS GALESE & INGRAM PC JOHN GALESE & JEFF INGRAM BIRMINGHAM

DEL MILES JACKSONVILLE

N E E D E A S Y T R A I N I N G O P P O R T U N I T I E S FO R YO U R D E A L E R S H I P ?

Check out the new Education and Training Consortium (ETC) to watch our list grow. The programs listed on this site have met stringent criteria that ensures that the program or product: s s s s

Responds to dealership needs of today; Demonstrates history of effectiveness; Comes with dealer recommendations; and Offers professional presentation of goods and services.

Just go to NIADA.com’s Education page and follow the links to ETC or contact Georgia Brown at 800-682-3837 for more information.

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AIADA AT ITS BEST

s TONY WILKERSON (RIGHT) PRESENTED BILLY LEVINS WITH A PLAQUE

HONORING HIM AS A LIFETIME MEMBER OF AIADA AT THE RECENT MONTGOMERY CHAPTER MEETING. BILLY HAS BEEN A MEMBER SINCE 1978, WHILE SERVING AS A STATE DIRECTOR FOR SEVERAL YEARS. HE IS KNOWN FOR SELLING SPECIAL MEMBERSHIP TICKETS FOR THE $10,000 PRIZE. HE AND BILL BRILL FROM BIRMINGHAM ALWAYS COMPETE ON WHO SELLS THE MOST TICKETS. FOR THE LAST SEVERAL YEARS, BILLY AND BILL TOGETHER SOLD HALF OF THE SPECIAL MEMBERSHIP TICKETS. AIADA CONGRATULATES BILLY LEVINS, WHO DESERVED THIS AWARD. JEFF INGRAM, ASSOCIATION ATTORNEY, WAS GUEST SPEAKER AT THIS MEETING, WHICH WAS ATTENDED BY MORE THAN 50 PEOPLE.

s TONY WILKERSON (LEFT) PRESENTED JOHN PIGG OF PIGG ENTERPRISES IN PRATTVILLE, AL, WITH A PLAQUE FOR SERVING AS AIADA’S MONTGOMERY CHAPTER PRESIDENT FOR THREE YEARS.

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A

O N C V E E N T TION 201 A T S A . D . A 1 .I.

Dear Fellow Dealers: The Alabama I.A.D.A. 2011 State Convention is a few months away, and plans are being finalized for an exciting time at lake Guntersville Resort State Park, July 21st - 24th. (If you plan to play in the golf tournament, you will need to arrive July 20th as golf is Thursday morning, July 21st.) We would like to extend a personal invitation to you and your family to attend the 42nd Annual Convention. Words can’t describe what the eyes behold from the Lake Guntersville State Park Lodge high atop Taylor Mountain. The view, the majestic 69,000 acre Guntersville Reservoir and surrounding mountains, has to be actually experienced in order to be truly appreciated. The park has an 18-hole championship golf course, a beach complex, fishing center, hiking trails, nature programs, modern campground, lake-view cottages on the lake, chalets on the ridge tops and beautiful resort lodge. Shopping is available in the quaint town of Guntersville and the outlet stores in adjacent Boaz, AL. We have a great program planned, and information for you that will be very beneficial to your business, the fellowship of other dealers, education and great food in a wonderful atmosphere. To register, complete and return the enclosed registration form to the association office. Hotel Reservation - please reserve your room directly with the hotel call for reservation at 1-800-ALAPARK or 256-571-5440, and tell them you are with the Alabama Independent Auto Dealers Association group. We will have an Early Bird drawing for those who get their registrations in by May 31, 2011. We look forward to seeing you and your family in Guntersville, AL. We can guarantee that you will see a return on your investment when you attend. If you have any questions, please call the association office. Sincerely,

Sincerely,

Tony Wilkerson

Ken McFarland

Tony Wilkerson Executive Director

Ken McFarland State President

P.S. Remember to go ahead and make your Room Reservations for the convention as the cut-off date is JUNE 20th. You can always cancel 7 DAYS prior to arriving. Get your early registration in for the Early Bird drawing. If you make a reservation and then decide to cancel, please call the association office before cancelling as we may need your room. 7

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Has your dealership implemented a process for engaging customers and shoppers with QR codes? If the answer

Point Scan Sell 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.

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 303232-3435 or dj@dealernetsolutions.com.

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Don’t Miss Convention’s State of the Industry Session

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 kickoff 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.

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 FTC:

The White House:

Last 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

Perhaps 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.

FEDERAL ADVOCATES is NIADA’s governmental advocacy partner. To read past lobbying reports, visit www.niada.com/legislative_and_legal.php

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F&I Perspectives 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, relationship The 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 source Dealers 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.

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. 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

BY U RI SZAPI RO

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.

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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 PA I R 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! 

A Used Car Field Guide for Detecting Collision Repair www.stopcurbstoning.com 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.

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

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

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

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 terrific 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

At A Glance

Good places to look for paint overspray or excess paint include: Around electrical conduits in door jambs

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

Near door, hood, and trunk hinges On window and door seals Around seals and fittings in the engine compartment firewall

Look also at the reflections in the paint – factory paintwork is mirror-smooth, even when dirty or dinged up. Signs of repair often reveal themselves in a slightly rippled reflection, or a reflection that doesn’t exactly line up across two body panels. Be sure to look at reflections from several angles. If the car is so dirty that you can’t see reflections, 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 fit flush, and that the gaps between the panels are even from top-to-bottom and side-to-side.

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.

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INDUSTRY

MobileApps Manheim Manheim 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.

Cars.com During 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.

Black Book With 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.

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.

iPhone App Cars.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 App Cars.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.

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.

*According to Greystripe 2011

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FuelEconomy It shouldn’t be surprising one of the first considerations shoppers coming into your showroom will mention is fuel economy. The latest Kelley Blue Book Market Intelligence Survey concerning consumer sentiment and gas prices revealed the current economic situation, coupled with concern over the rise in fuel prices, has further caused an increasing number of new- and used-vehicle shoppers to change their vehicle consideration criteria. In April, KBB discovered the vast majority of shoppers — 84 percent, in fact — said gas prices have influenced vehicle considerations, revealing a steady increase in the role fuel prices have played in purchase decisions since January. In addition, analysts found 90 percent of the latest Kbb.com survey respondents expect gas prices to climb even more during the next 30 days. KBB pointed out that those planning to purchase their next vehicle to get better fuel economy has been on the rise since the beginning of 2011, increasing 12 percentage points from January to April. When asked about the effect of the economy on future vehicle purchases, analysts reported 58 percent of consumers said the economy has caused them to make a downgrade. The most popular downgrade was engine size (41 percent), followed by decreased vehicle size (40 percent), less or eliminated vehicle options (35 percent)

and switching from new to used (32 percent). Kelley Blue Book Market Intelligence officials explained they employed the Van Westendorp pricing model as a research strategy to understand consumers’ price sensitivity, discovering that rising gas prices continue to outpace consumer acclimation to a higher price point for fuel. Analysts calculated the current optimum price point for gasoline has risen since the beginning of this year, from $3 per gallon (with an acceptable range of pricing from $2.75 to $3.25) in January and February, to the current optimum price point of $3.23 (with an acceptable range of pricing from $3.07 to $3.41) in April. Therefore, if prices remained around $3.23 per gallon, KBB contends shoppers likely would not make major changes in vehicle consideration criteria. However, at the $4 per gallon price point, the firm believes 70 percent of consumers will feel that gas is so expensive it will affect their vehicle consideration. And at $5 per gallon, KBB stressed that almost all shoppers (92 percent) say their vehicle consideration will be affected. Furthermore, Kelley Blue Book found its latest Kbb.com survey revealed that despite steadily climbing gas prices, many shoppers feel their personal economic situations are somewhat improving. Survey orchestrators determined the number

of respondents indicating that their current economic situation is “poor” decreased by 5 percentage points from 27 percent in February to 22 percent in April. Also, KBB noted concerns about becoming unemployed decreased 9 percentage points from 34 percent in March to 25 percent in April. “As we head into summer driving season, gas prices are going to continue to be a hot topic both in the auto industry and among the cardriving American public,” explained Jack Nerad, executive editorial director and executive market analyst for Kelley Blue Book. “Auto manufacturers increasingly are offering more fuel-efficient vehicles, not only due to the federally mandated Corporate Average Fuel Economy (CAFE) regulations, but also because of rising consumer demand, as indicated by the latest kbb.com survey findings,” Nerad continued. “It’s important for shoppers to know that there are more fuel-efficient options today than ever before, from sub-compact cars to deckedout luxury rides and even highly efficient trucks and SUVs, many of them offering astounding fuel economy numbers, especially in light of the features and safety they offer,” he went on to say. The latest Kelley Blue Book Market Intelligence survey about consumer sentiment and gas prices was fielded to 480 in-market new- and used-vehicle shoppers on Kbb.com from April 12 to 18.

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Odometer Replacement on Exempt Vehicles NAAA has been presented with the following scenario: A customer bought a vehicle that was exempt, but the odometer had been replaced with one that had significantly fewer miles (280,000 to 108,000). The seller did not Despite the age of this interpretation it remains relevant as the statute has not changed.

announce that, so the seller was told he had to buy it back. The seller balked saying that being exempt it didn’t matter. Although disagreeing with his argument, we checked with a few other auctions and were surprised that many auctions agreed with the seller. A review of the National Highway Traffic Safety Administration (NHTSA) website found information explaining that an odometer rollback was illegal on an exempt

vehicle but did not address odometer replacement. A call was made to the NHTSA for clarification. The NHTSA confirmed that all laws concerning odometers, except title documentation, apply to exempt vehicles. NAAA Arbitration Policy (http://www. naaa.com/pdfs/NAAAArbitrationPolicy_ Jan2011.pdf) states on page 7, item 10, that the seller must announce these discrepancies. Additionally, the NHTSA also states that auctions are required to record the mileage on exempt vehicles somewhere in the records even if it does not get recorded on the bill of sale. The federal statute concerning odometer service, repair, and replacement is 49 USC 32704 and the statute concerning auction records is 49 USC 32705(e). Additional guidance concerning auction companies may be found in the Code of Federal Regulations under 49 CFR 580.9. The following is an excerpt from a previously issued interpretation letter concerning odometer replacement procedures. It is from NHTSA General Counsel Frank Berndt written to Key Scales

Ford, Inc. on September 25, 1980. Despite the age of this interpretation it remains relevant as the statute has not changed. “This is in response to your letter of September 4, 1980, in which you requested information on the proper procedures to be followed with respect to the odometer setting when a new odometer/speedometer head is installed. When an odometer is repaired or replaced the mileage on the repaired or new odometer must be identical to that on the odometer before the repair or replacement. In those instances where the odometer is incapable of registering the same mileage, the odometer must be adjusted to read zero and a notice in writing must be attached to the left door frame of the vehicle specifying the mileage prior to the repair or replacement of the date of such service. There is no specified format for the notice, but it must include the above information.” For additional concerns, the point of contact in NHTSA’s Office of Chief Counsel is David Case at david.case@ dot.gov or 202.366.2239. In order to receive a written interpretation you will need to describe your particular concerns and questions in writing. NHTSA’s response will be posted on their website to serve as guidance for others.

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Ford F-150, Mercedes-Benz M-Class Recalls

By ADR Staff

FORD F-150, LINCOLN MARK LT Ford is expanding a recall of F-150 and Lincoln Mark LT light trucks. In January 2010, the National Highway

The recall on the expanded population is expected to begin on or about May 9. Owners may contact the Ford customer relationship center at 866436-7332. Ford’s recall campaign number is 11S18.

Transportation Safety Administration (NHTSA) opened an investigation into inadvertent airbag deployments. As a result of that investigation, Ford recalled about 144,000 2005 and 2006 model year F-150s in March. The most recent announcement expands the recall to include certain model year 2004 through 2006 F-150s as well as certain model year 2006 Lincoln Mark LTs. A total of 1,325,000 units are affected. According to the NHTSA documents, if the airbag clockspring jumper wire comes in contact with the driver side frontal airbag lower horn plate, the wire insulation may become chafed, creating a potential for a short circuit. If this occurs, the airbag warning lamp may illuminate indicating service is required. As a result, the driver side frontal airbag could inadvertently deploy increasing the risk of injury or loss of vehicle control if occurring while in motion. Ford will notify owners and instruct them to take their vehicles to a Ford or Lincoln dealer to have a new clockspring jumper wire installed that incorporates a protective mesh cover. Repairs will be performed free of charge. The recall on the expanded population is expected to begin on or about May 9. Owners may contact the Ford customer relationship center at 866436-7332. Ford’s recall campaign number is 11S18.

MERCEDES-BENZ M CLASS

Mercedes-Benz is recalling certain model year 2000 through 2002 M-Class and model year 2000 through 2004 M-Class AMG vehicles. The recall affects 136,751 units. The cruise control system in the affected vehicles allows the driver to disengage the system in a number of ways, including tapping the brake pedal, using the cruise control stalk, or braking the vehicle enough to reach a certain rate of deceleration. Mercedes-Benz has determined that, under certain circumstances, use of the brake pedal may not automatically disengage cruise control as expected by the driver, although the other means of deactivating cruise control remain fully operative. Specifically, where the driver pumps the brakes rather than applying consistent pedal force, the level of force required may be unusually high. The difficulty or delay in disengaging the cruise control can increase the risk of a crash. Dealers will repair the vehicles free of charge. The safety recall is expected to begin during September. Owners may contact Mercedes-Benz at 800-367-6372. Editor’s note: Owners may contact the NHTSA vehicle safety hotline at 888-327-4236 (TTY 1-800-424-9153). For more information about these and other recalls, visit http://www.safercar.gov.

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42nd ANNUAL

Saturday,

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Special Guest Saturday Evening July 23, 2011 Siran Stacy was born in the small town of Geneva, AL on August 6, 1968. His parents, Ellis and Marie Stacy, raised him and from a young age his dream was to play football at the University of Alabama under legendary coach Paul “Bear” Bryant. After graduating Geneva High School, Stacy enrolled at Coffeyville Junior College in Coffeyville, Kansas, where he prospered as a student athlete playing football. Stacy blossomed under the guidance of head coach Dick Foster, and achieved numerous honors on his way to becoming one of the top running back prospects in the country. This lead to a scholarship offer to play football at the University of Alabama, which allowed him to move back to his home state and at the same time achieve a childhood dream. In his first game playing division I football against Memphis State, he set a record with four touchdowns, while gaining 165 rushing yards in only 14 carries, with his first two carries being touchdowns. Stacy ended the 1989 season with 18 touchdowns and over 1,000 yards; setting numerous Alabama records. Stacy started the 1990 season under the direction of Alabama great Gene Stallings. The season started with many pre-season honors and he was said to be a Heisman front runner. Tragically, Stacy suffered a season ending knee injury during the season opener. He received a medical red-shirt for the 1990 season and returned to his former glory in 1991 to achieve all SEC honors as well as being named a 2nd team All-American. He participated in post season bowls such as The Japan Bowl in Tokyo, as well as the Senior Bowl in Mobile, AL. Stacy was drafted in the second round of the NFL draft by the Philadelphia Eagles. He played in Philadelphia for one season, and in 1995, he returned to football to play for the Scottish Claymores in the World Football League, renamed NFL Europe. Stacy lived in Scotland during that time and became close to the Scottish people. He ended up playing in different cities all over Europe such as Barcelona, London, Frankfurt, Amsterdam and numerous other cities in the UK. Stacy earned league MVP honors in 1997, while leading the Scottish Claymores to a World Bowl Championship. In 2000 he retired from football to join corporate America. He was offered a job by Billy Taylor and Heath Quick of Home Town Lenders, and ended up at Countrywide Home Loans, Wells Fargo Home Mortgage, and eventually Coastal Community Bank located in Panama City, FL. In addition to his corporate banking jobs, Stacy also worked with Bill Glass Prison Ministry, Fellowship of Christian Athletes (FCA), and spoke to many small churches and congregations. In November of 2007, Stacy’s life changed forever when his family’s van was struck by a drunk driver one mile from their home. Stacy, his wife Ellen (36), his son Bronson (10), his daughters Lequisa (18), Sydney (9), Shelly (4), and Ellie Ann-Marie (2), were all in the vehicle that night. Tragically, only Stacy and Shelly survived that night. In 2008, Stacy was asked to give his testimony to a small church in Gulf Shores, AL, and from there Stacy started his own ministry. He speaks to a variety of groups including churches, high schools, corporate groups, military branches, prisons, and many more. Stacy’s message is centered upon the resurrection power and redeeming blood of Jesus Christ, and aimed towards making an impact on the broken hearted, the suffering teenager, and he has a passion for men and their role as leaders and mentors in the family. 23

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AUCTION DIRECTORY

ABC – ATLANTA 444 Joe Frank Harris Parkway Cartersville, GA 30120 Sale every Tuesday 6 p.m. & Friday 11 a.m. Phone: (770) 382-1010 ABC BIRMINGHAM 1046 A.E. Moore Drive Moody, AL 35004 Sale every Wednesday 12:30 p.m. Inops at 12 pm Phone: (205) 640-4040 ADESA ATLANTA AUTO AUCTION 5055 Oakley Industrial Blvd. Fairbum, GA 30213 Sale every Wednesday 10 a.m. & Friday 6:30 p.m. Phone: (770) 357-2277 ADESA OF BIRMINGHAM 804 Sollie Dr. Moody, AL 35004 Sale every Monday 6:30 p.m. & Wednesday 9 a.m. Phone: (205) 640-1010 ADESA KNOXVILLE 1011 Adesa Pkwy Lenoir City, TN 37771 Sale every Tuesday 6:30 p.m. & Friday 9:30 a.m. Phone: (865) 988-8000 ADESA OF MEMPHIS 5400 Getwell Rd. Memphis, TN 38118 Sale every Tuesday 9 a.m. Phone: (901) 365-6300 ALBANY AUTO AUCTION 1421 Liberty Expressway SE Albany, GA 31702 Sale every Thursday 6:30 p.m. Phone: (229) 435-7709 ATLANTA AUTO AUCTION 4900 Buffington Rd. Red Oak, GA 30272 Sale every Thursday 9 a.m. Phone: (404) 762-9211

GULF STATES AUTO AUCTION LLC 6615 Mobile Hwy. Pensacola, FL 32526 Sale every Tuesday 9:30 a.m. Phone: (850) 944-1945 HIGHWAY 101 DEALERS AUTO AUCTION 2100 Hwy. 101 Rogersville, Al (256) 247-3600 Sale Day – Thursday 10:30 a.m. KELLEY AUTO AUCTION 3485 US Hwy. 431 Attalla, AL 35954 Sale every Tuesday night Phone: (256) 538-9095 LONG BEACH AUTO AUCTION, INC. 8494 County Farm Rd. Long Beach, MS 39560 Sale every Wednesday 3 p.m. Phone: (228) 452-2030 LOUISIANA’S 1ST CHOICE Auto Auction 18310 Woodscale Rd. Hammond, LA 70401 Sale every Tuesday 9 a.m. Phone: (985) 345-3302 MANHEIM CENTRAL FLORIDA 9800 Bachman Rd. Orlando, FL 32824 Sale every Wednesday 9 a.m. Phone: (407) 438-1000 MANHEIM NASHVILLE 8400 Eastgate Blvd. Mt. Juliet, TN 37122 Ford Factory Sale every other Monday 11 a.m. Open Sale every Wednesday 9 a.m. GM Factory Sale every other Thursday 10 a.m. Nissan Factory Sale once per month Friday 9 a.m. Phone: (615) 773-3800

BIRMINGHAM AUTO AUCTION 125 Meadland Circle Birmingham, AL 35023 Sale every Thursday 6 p.m. Phone: (205) 744-4030

MANHEIM TENNESSEE 1450 Lebanon Road Nashville,TN 37210 Fleet Lease and Dealer Consignment sales every Monday at 4 p.m. and every Tuesday at 10:30 a.m. Total Resource Auction every Monday at 1 p.m. Phone: (615) 244-2140 www.manheimtennessee.com

CENTER POINT AUTO AUCTION 100 13th Ct. NE Birmingham, AL 35215 Sale every Tuesday 6 p.m. Phone: (205) 856-6527

MANHEIM MISSISSIPPI 7510 US Hwy. 49 N Hattiesburg, MS 39402 Sale every Monday 5 p.m. & Thursday 9 a.m. Phone: (601) 268-7550

CHATTANOOGA AUTO AUCTION 2120 Stein Dr. Chattanooga, TN 37421 Sale every Tuesday 10 a.m. Phone: (423) 499-0015

MANHEIM METRO ATLANTA 2244 Metropolitan Pkwy SW Atlanta, GA 30315 Sale every Tuesday noon Phone: (404) 767-3652

DEALERS AUTO AUCTION OF HUNTSVILLE 26125 Hwy 72 Athens, AL 35613 Sale every Tuesday 9:30 a.m. Phone: (256) 232-0201

MIDFIELD CAR AUCTION 1468 Hartman Industrial Blvd. Midfield, AL 35228 Sale every Wednesday and Saturday-6:30 p.m. Phone: 205-923-6535

DEANCO AUTO AUCTION 3664 South Oates St. Dothan, AL 36301 Sale every Wednesday 10 a.m. Phone: (334) 792-1116 GEORGIA-CAROLINA AUTO AUCTION 884 E. Ridgeway Rd. Commerce, GA 30529 Sale every Wednesday 3 p.m. & Friday 6 p.m. Phone: (706) 335-5300 GEORGIA DEALERS’ AUTO AUCTION 7205 Campbellton Rd. Atlanta, GA 30331 Sale every Tuesday 10 a.m. Phone: (404) 349-5555 GREATER NEW ORLEANS AUTO AUCTION 61077 St. Tammany Ave. Slidell, LA 70460 Sale every Wednesday 9:30 a.m. Phone: (504) 643-2061

PENSACOLA AUTO AUCTION 401 West Burgess Rd. Pensacola, FL 32503 Sale every Thursday 9:30 a.m. Phone: (850) 477-3063 SHOALS NORTH ALABAMA AUTO AUCTION 651 Fairground Road Muscle Shoals, AL (256) 381-2745 Sale every Tuesday night @ 6:30 p.m. SOUTH ALABAMA AUTO AUCTION LLC 27472 Wilcox Road Robertsdale, Al 251-964-7012 Sale Days – Tuesday & Thursday 6:30 p.m. Sat. Auction @ 11 a.m. YOUR AUCTION 3010 Scherer Dr. N St. Petersburg, FL 33716 Sale every other Tuesday 11 a.m. – Birmingham The Jim Burke Automotive Group Phone: (800) 675-4444

Westlake Remarketing Releases Q1 2011 Top Auctions List Westlake Financial Services has named its top auctions for Q1-2011. They are: • T  op Overall Auctions: Manheim Nevada, Norwalk Auto Auction, Brasher’s Salt Lake City Auto Auction • Top Service Auction: ABC Birmingham • T  op Loyalty Program Auction: Dealers Auto Auction of Idaho

“Westlake is proud to recognize the accomplishments of these auctions for Q1” said Bill Walters, vice president of remarketing. “Our ranking is based on a variety of sale- and service-related metrics, with considerable input from our Westlake auction representatives.” Manheim Nevada continues as Westlake’s top-ranked auction following its 2010 Auction of the Year designation. ABC Birmingham also held the top service ranking for 2010 and Dealers Auto Auction of Idaho remained the top auction for Loyalty Program sales. “Overall, we are seeing a strengthening of resale values in the Western states, as evidenced by the top three overall auctions,” Walters said. Michael Pavlin, senior vice president of operations at Westlake, adds, “We are proud to recognize the efforts of all our auction partners, with a special acknowledgement to the top auctions listed here. We ended Q1 on a great note and are starting the year off with a bang!” Westlake Financial Services is an Internet-based, privatelyheld finance company that specializes in the acquisition and servicing of sub-prime to near-prime automotive retail installment contracts. Headquartered in Southern California, Westlake originates indirect retail installment contracts through a network of over 10,000 new and used car dealers throughout the United States. All collections and servicing are performed in-house from its central facility located in the Mid-Wilshire area of Los Angeles.

Protective NCP 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.

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CARFA X L AUNCHES ADVANTAGE PROGRAM FOR DEALERS NEW PROGRAM DESIGNED TO INFLUENCE SHOPPER’S DEALER CHOICE, ENHANCE CONFIDENCE

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 shoppers surveyed said they would prefer to shop at a Carfax Advantage dealership. Carfax Advantage dealers 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 materials for free, including new items that highlight Carfax Advantage 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 Advantage program means trust and confidence. They know immediately that a Carfax Advantage dealer will show them the Carfax. As a result, participating dealers enhance their reputation and sell more cars faster.”

PRE-GAME WARM-UP:

REVIEW FINANCING PRACTICES AHEAD OF CFPB AND FTC RULES 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 Consumer 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 protection will continue to be enforceable. The FTC recently announced it’s conducting public roundtables in three to five cities around the U.S. to discuss 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 intense 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 practices. 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 standard 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 CH I P ZYVOLOSKI Chip Zyvoloski is senior attorney for indirect lending at Wolters Kluwer Financial Services. For more information, visit www.wolterskluwerfs.com/indirect.

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AL_0611_O  

PAID Visit us at www.alabamaiada.com 2011 JUNE/JULY PRSRT Standard U.S. Postage DALLAS, TEXAS Permit No. 2079

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