ALABAMA
I N D E P E N D E N T
Page 12
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
JUNE/JULY 2013
F E AT U R E D D E A L E R
WAYNE WHITE MOTORS BOAZ, ALABAMA
DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage
V isit us at w w w.alabamaiada.com
AL_0613.indd 1
5/20/13 9:53 AM
AL_0613.indd 2
5/20/13 9:53 AM
INSIDE u 04 President’s Message 06 Once Upon a Time 10 The Risks of Document Fees 12 Dealer Spotlight 19 New & Renewing Members 20 Mary Jo’s Million 26 Washington Update
WHAT’S NEW
Thursday, June 27, starting at 6 p.m. PDT
LIVE BROADCAST FROM CAESARS PALACE
National Quality Dealer of the Year Award
TUNE IN TO WWW.NIADA.TV OR WWW.NIADA.COM
Watch from any device and cheer for your state’s top dealer.
ADVERTISERS INDEX
ADESA........................... Inside Front Cover Ally....................................................... 13 CarMax Auctions....................................16 Chase....................................................14 Manheim.com....................................... 11 Manheim Nashville......... Inside Back Cover Manheim Pennsylvania.............................5. NextGear Capital......................................7 Protective................................................9 STARS GPS............................................17. United Acceptance.................................15. VAuto........................................Back Cover
OFFICE 120 VULCAN ROAD • BIRMINGHAM, AL 35209 PHONE: (205) 942-1000 FAX: (205) 942-3565 WEBSITE: WWW.ALABAMAIADA.COM TO BECOME A MEMBER OF AIADA, PLEASE CALL (800) 239-2423
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 760065203; 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 © 2013 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
EDITORS
J ennifer Carman • jenniferc@niada.com Andy Friedlander • andy@niada.com
ART DIRECTOR
Christy Haynes • christy@niada.com
PRINTING Nieman Printing
FTC Releases Dot-Com Disclosure Guidelines
AUCTIONS PARTICIPATING IN THE 2013 AIADA BENEFIT AUCTIONS PARTICIPATING IN THE 2012COUPON BOOK 2013 AIADA BENEFIT COUPON BOOK BUY FEE OR SELL 1. ABC Birmingham 2. ADESA Birmingham 3. AMERICA’S AUTO AUCTION –Pensacola 4. ANAHEIM AUTO AUCTION –Birmingham 5. AUTO AUCTION OF MONTGOMERY 6. BAMA AUTO AUCTION – Fort Payne 7. BIRMINGHAM AUTO AUCTION 8. CITY AUTO FINANCE – 9. DEALERS AUTO AUCTION OF HUNTSVILLE LLC 10. DEALERS AUTO AUCTION OF MURFREESBORO 11. DEALER’S AUTOMOBILE AUCTION OF MOBILE 12. DEALER’S AUTOMOBILE AUCTION MISSISSIPPI 13. DEANCO AUTO AUCTION - Dothan 14. DRIVER’S WAY AUTO AUCTION - Birmingham 15. FORT PAYNE AUTO AUCTION 16. HIGHWAY 101 DEALERS AUTO AUCTION 17. INSURANCE AUTO AUCTION(Huntsville, Birmingham & Dothan Locations) 18. KELLEY AUTO AUCTION - Attalla 19. LONG BEACH AUTO AUCTION - Mississippi 20. LOUISIANA’S 1st CHOICE AUTO AUCTION 21. MANHEIM ATLANTA 22. MANHEIM GEORGIA 23. MANHEIM NASHVILLE 24. MANHEIM PENSACOLA 25. MIDFIELD CAR AUCTION 26. MID SOUTH AUTO AUCTION Pearl, Mississippi 27. SHOAL’S NORTH ALABAMA AUTO AUCTION 28. TALLAHASSEE AUTO AUCTION
TOTAL VALUE IS
$250.00 $1800.00 $500.00 $600.00 $600.00 $600.00 $100.00 Floor Plan $600.00 $600.00 $600.00 $600.00 $600.00 $200.00 $600.00 $50.00 each $600.00 $100.00 $200.00 $750.00 $750.00 $600.00 $250.00 $900.00 $600.00 $300.00
$250.00 $1800.00 $500.00 $600.00 $600.00 $600.00 $100.00 Floor Plan Fee $600.00 $600.00 $600.00 $600.00 $600.00 $225.00 $200.00 $600.00 $150.00 $600.00 $100.00 $200.00 $750.00 $750.00 $600.00 $250.00 $300.00 $900.00 $600.00 $300.00
$ 13,825.00 $13,450.00
(COUPON BOOK IS AVAILABLE WHEN YOU RENEW YOUR MEMBERSHIP)
The FTC released revised dot-com disclosure guidelines to assist companies in making clear and conspicuous disclosures in online or mobile advertising. The disclosures make it clear that consumer protection regulations apply across all media used by marketers to reach consumers. According to the guidelines, if a proper disclosure cannot be made using a particular medium, that medium should not be used. The FTC also said that in order for disclosures to be clear and conspicuous to the consumer, they must be as close as possible to the relevant claim. And advertisers are told hyperlinks should not be used for disclosures that involve product costs or certain safety issues. A copy of the guidelines can be found at: http://www.ftc. gov/os/2013/03/130312dotc omdisclosures.pdf.
EXECUTIVE COMMITTEE PRESIDENT Charles Moring Midland City charlesmoring@sw.rr.com PRESIDENT ELECT Ken McFarland Birmingham kmcfarland@compuhelp.net VICE PRESIDENT O’Neal Cleveland Springville onealcleveland@gmail.com SECRETARY/TREASURER Rex Canterbury Fayette rexcanterbury@yahoo.com CHAIRMAN OF BOARD Randy Burns Gadsden rburns222@bellsouth.net DIRECTORS Barry Searcy Muscle Shoals barrysearcy@bellsouth.net John Dunn Sylacauga johndunnauto@ charterinternet.com
Lance Turner Anniston lance@peeweeturnermotors.com
Randy Crump Jasper fas_jasper@yahoo.com
Willie Colvin Tuscaloosa colvinautosales@aol.com
Larry Morris Birmingham larry@morrisautos.com
Tommy Greene Birmingham swautos@bellsouth.net
Darrin Henderson Montgomery darrinsperfection@hotmail.com
John Pigg Prattville piggenterprises@knology.net
Cary Sears Montgomery cjsears@networktel.net
Paul Claborn Albertville paul@wholesalecars.com
Heath Hendricks Greenville heath@camelliacom.com
Robert Case Hartselle robertsautosales1@live.com
Kelly Steely Hoover wksteely@gmail.com
Tim Duke Birmingham timdukeauto@gmail.com
Pokey Brimer Oxford pbrimer6@gmail.com
Chad Tillery Jemison jemisonauto@gmail.com
Darrel Pettie Pleasant Grove Pettie7@msn.com
Jay Saul Jasper jay@e-zautocredit.com
Association Attorneys John Martin Galese and Jeff Ingram Galese & Ingram PC 3
w w w. a l a b a m a i a d a . c o m
AL_0613.indd 3
JUNE/JULY 2013
AIADA
5/20/13 9:53 AM
INDUSTRY NEWS
ASSOCIATION NEWS
Some Parting Thoughts
FROM THE DESK OF CHARLES MORING
Wow, what a great year this has been, and how quickly it has passed. I want to thank you for allowing me to serve as the president of your association. It has been both a privilege and honor to serve. I have been very fortunate to have the help of many people. Judy Benton, our office manager, is excellent. She is both quick and efficient with all she does; I cannot say enough good things about her. Randy Jones, our new executive director, is already doing a super job. We’re already seeing an increase in membership and member involvement in just the short time Randy has been on board. There are many others – too many to name. Whenever something was needed all I had to do was ask. Much of what we do is done through committees, since several minds are always better than one. For example, this magazine is the work of a committee of dedicated board members who work tirelessly and without pay in order to return to their fellow dealers a little of what they have been given. We would like to say thanks to the many fine dealers who have come before us and have freely offered their advice, time and help to not only make us all better dealers, but to fight for and protect the industry as a whole. Knowing this is what has motivated me to want to give something back to all my fellow dealers and the dealers that have served before me. Our primary focus is and will continue to be providing services for our dealer members. As my tenure winds down I am very optimistic about the future of this association. As you can see in this issue, we are growing by leaps and bounds; benefit providers are knocking on our door and we have excellent people on board. In short, we are primed for growth. This is good news for the AIADA, and for our members, because a strong association is good for dealers and the industry; like our motto says, “Individually we struggle to be heard; collectively we cannot be ignored.” I will always maintain the desire to make this association better, so that it can provide more benefits, strengthen the market, and fight against unnecessary regulations for our
fellow dealers. Changing the subject, I have a question for you: Are you having a record year? Are you meeting or exceeding all your goals? If not, why not? I remember one day early in my career, when I was whining about business being bad. A successful dealer friend of mine said, “Go to the bathroom. Look in the mirror and you may find your problem.” The words were harsh but true – I was the problem. If you need to improve, the AIADA offers a ton of educational opportunities. To start, it’s not too late to register for our annual convention in Gatlinburg, Tenn. Joe Lescota, a dealer development expert, is hosting a session that can help you with sales, cost management, and training. There will be also be a dealer panel – with plenty of time for questions and answers – with John Galese and Jeff Ingram, attorneys who always offer informative content. The panel will also include Donald Clemons, title section supervisor; Lisa Blankenship, assistant supervisor; and Mike Gamble, director of tax policy and research for the State of Alabama. Not only will this be very informative convention designed to help you improve your business, you can also share time and ideas with your fellow dealers. Some of my best innovations were inspired by talking to other dealers who had proven success. I can honestly say I have never left an AIADA convention without bringing back ideas for changes or new procedures that ended up making me money. Finally, I want to take a moment to talk about how we’re reestablishing local chapters, which is something I’m really proud of and excited about. If given the opportunity to contribute to or even serve in the office, by all means take the opportunity. I have always received much more in knowledge and friendship from my fellow dealers than I have ever been able to give. In closing, I again want to thank you from the bottom of my heart for allowing me to serve as AIADA president and give back to an industry that has been very good to me and my family. Good luck, Charles Moring
Five Win Twice in Dealers Choice Awards Manheim auctions, AutoTrader. com, CNA National, Dealer.com and eBizAutos each earned top honors in two categories as Auto Dealer Monthly announced its annual Dealer Choice Awards. The winners are selected from a nationwide survey of dealers judging industry providers in 27 categories, six of which were new in 2013. Dealers rated providers on their products or services, customer support and service, value and whether they would recommend the provider to others. Manheim was named the top traditional auction and online auction, AutoTrader took first among new and used vehicle Internet lead providers, CNA National was voted best in the service contract provider and service contract reinsurance categories, Dealer. com led the way in website design and digital marketing, and eBizAutos won for online inventory management and mobile media. Other winners included vAuto, which won for the third consecutive year for inventory management; Reynolds and Reynolds, which edged out Dealertrack Technologies in the DMS category; and Digital Air Strike in the new reputation management category.
Honda Accord Most Stolen Car of 2012 The Honda Accord ranked as the most stolen – and most recovered – vehicle in 2012, according to an annual report compiled by theft recovery system provider LoJack. The Accord edged out the Honda Civic and the Toyota Camry for the “honor” of being stolen the most, according to the report, which tracks vehicles equipped with LoJack systems. The report also cited FBI statistics showing a car is stolen every 44 seconds on average, and said the national recovery rate hit a 30-year low of 52 percent – LoJack boasts a 94 percent recovery rate. The report said the most commonly stolen car color was black and the least common was blue. California, Texas, Florida, New York and New Jersey were the states with the most thefts. The report is available at www. autotheftblog.com.
4
AIADA
AL_0613.indd 4
JUNE/JULY 2013
w w w. a l a b a m a i a d a . c o m
5/20/13 9:53 AM
AL_0613.indd 5
5/20/13 2:21 PM
INDUSTRY NEWS
Study: 4 of 5 Mobile Calls Lead to Sales
EXECUTIVE PERSPECTIVES
Once Upon a Time…
F R O M T H E D E S K O F R A N DY J O N E S
A customer drives up to your office, gets out of his car and walks up to one of your salespeople, Five Car Freddie. You can tell this guy has been around; he looks like someone who has maybe been here before. The customer, John Doe Profit (aka Profit), looks around and asks the price of the second car from the end in the third row. (I know this never happens – but stick with me.) The following conversation ensues: Freddie: Oh, that unit’s only $9995 Profit: How many miles are on it? Freddie, to some of the other sales people on the lot: Hey, how many miles are on that red Camaro on the third row, the second one from the end? Random Salesperson: About 80-90 thousand. It’s in really good shape. Freddie, to Profit: We don’t get many like that anymore. You want to look at it? Let me get you the keys. Now, what’s going through Freddie’s head as the customer goes to look at the vehicle, by himself? Is he wondering why Profit is back again and wasting his time? Does he assume Profit is back because: u H e cannot get financed anywhere else. u H e is buried in his trade. u H e has low income and can’t afford the car. u H e doesn’t have a big down payment. u H e is a leg wetter, not ready to buy yet, still just looking. Now, I know there are a couple of things in the above scenario that we both know aren’t common occurrences. First, chances are you’ll never have a Camaro with less than 100,000 miles on it that you can sell for less than $10,000. Second, most customers who’ve been out shopping don’t come back to your lot to get more information about a vehicle. But the scenario does beg the question: what are your salespeople doing when they greet your customer? Most dealers would answer something like this: 1. G et control of the customer: show him where to park his car, ask if he’s trading his car in, etc. 2. Find out more about the customer: what he does for a living and how long he’s worked there, where he lives, who the car will be for, etc. 3. S ell the customer a vehicle, rather just showing it to him. Walk around
the vehicle, raise the hood, open the trunk, explain the car’s features and benefits, etc. Dealers in Alabama do not like excuses, we always find the right ways to become more successful, get the most out of each vehicle and each sale, and build repeat business. “I don’t have the time to train.” I’ve heard this from many dealers, but never from those who are considered to be the most successful. Successful dealers are constantly training their salespeople and investing in outside training so they can become better dealers and business people. Certified Master Dealer training, participation in 20 Groups, Joe Verde training …the most successful dealers know education and knowledge provide a competitive edge. Time is money. That means that wasted time means wasted money, so the Five Car Freddies of the world can break you. If you haven’t been staying educated on the best ways to ensure each customer that comes on your lot is handled with all the care and professionalism it takes to become lifelong customers, you’re wasting time and money. The AIADA is here to help you. Starting this summer, we’ll offer a new class called “Staying Professional,” every first Thursday of the month from 10 a.m. - 2 p.m. The class is only $35 for members or $125 for non-members (workbooks and lunch not included). We will cover different topics each month, including vehicle walkarounds, phone interviews, the correct way to completely fill out a credit application, why you must know your inventory, and much more. My total commitment is helping member dealers improve their quality and integrity, just as our motto states. If we can help dealers avoid legal traps and bad deals, we can help them improve closing percentages and improve their bottom line. And if we make our member dealers more profitable, we’re building an organization they can’t do without. This is my goal as your executive director. It is my hope that you will take advantage of this opportunity. Randy Jones AIADA Executive Director
“THE AUTO INDUSTRY SHOULD T H I N K O F T H E S E C O N V E R S AT I O N S A S M O N E Y O N T H E TA B L E .
According to data analysis by mobile advertising firm Marchex, Inc., consumers now place millions of calls to the auto industry directly through mobile ads – and once consumers connect to a representative over the phone, 79 percent of them want to buy. Analysts aggregated anonymous data points from more than 65,000 calls placed to auto dealers, repair shops and national call centers. The calls, driven through Marchex’s mobile advertising network, came from consumers engaging with mobile ads via mobile directories, apps, mobile banners and voice search. “Our findings underscore how very important it is to be available, in person, to answer the phone when calls come in,” said John Busby, vice president of the Marchex Institute, the Marchex’s research arm. “The auto industry should think of these conversations as money on the table. Every voicemail can cost you.”
OTHER FINDINGS: u
C onsumers calling auto dealers are highly motivated, asking about inventory and booking test drives.
u
C onsumers who call from mobile ads tend to be younger than the general population.
u
M en call more often than women.
u
S martphone callers tend to have higher income.
6
AIADA
AL_0613.indd 6
JUNE/JULY 2013
w w w. a l a b a m a i a d a . c o m
5/20/13 9:53 AM
AL_0613.indd 7
5/20/13 9:53 AM
LEGAL UPDATE
CPO Sales Are Up
CONSUMERS RESPOND TO RELIABILIT Y AND E XTENDED WARRANTIES
EX A SE SC OUC TI IAVT EI OP N E RN S PE EW C ST I V E S
New Online Dealer License Feature Available
FROM THE DESK OF BRENDA COONE
In an effort to process requests in a timelier manner, beginning June 1, 2013, the Alabama Department of Revenue, Motor Vehicle Division, will provide new and used automotive dealers with the ability to electronically apply and pay for, and receive, an offsite sales event license. The application process begins by following the steps listed below: u V isit https://dealerlicense.mvtrip. alabama.gov to access the Motor Vehicle Dealer Regulatory License Portal. u L og in using the username and password that was created to obtain the Dealer Regulatory License. If you have forgotten your username or password, use the ‘forgot password’ or ‘forgot username’ link to have the information sent to the registered email address. u C lick ‘Off Site License’ and select the appropriate dealer name. u E nter begin and end dates using the calendar icons. Note: Begin and end dates must be at least 14 days from the application date and the duration of the sale cannot exceed 10 days in length. u E nter the complete address of the off-site sales location, including the city and county. u E nter the credit card information, including the credit card billing address if it is different than the dealer license address. u O nce the payment is confirmed, you can print the off-site license. Note: If the user is unable to print the off-site license do not attempt to resubmit payment, contact the Motor Vehicle Division at dealerlicense@ revenue.alabama.gov. Key facts to remember: u T he fee for an off-site license is $25.
E ach dealer is limited to three off-site sales event licenses per license year and the duration of each sale cannot exceed 10 consecutive calendar days. u T he license must not be obtained less than fourteen days prior to the commencing of the off-site sale. u O ff-site sales of new motor vehicles by new motor vehicle dealers shall be conducted only at a location within the new motor vehicle dealer’s area of responsibility as defined in the contract or franchise agreement between the new motor vehicle dealer and its manufacturer or distributor. u O ff-site sales of used motor vehicles shall be conducted only at a location in the county or city where the used motor vehicle dealer maintains a permanent location. u T he motor vehicle dealer must display a temporary sign at the location of the sale identifying the dealer by name as it appears on their current regulatory license for the permanent location in the same city or county. u A ll advertising and other notices of the sale must also bear the same name. In the near future, all motor vehicle dealers may electronically update their dealer’s regulatory license information using the Motor Vehicle Dealers Regulatory License Portal. For additional instructions, please see the dealer license system manual located on the Motor Vehicle Dealer Regulatory License Portal at: https://dealerlicense. mvtrip.alabama.gov. This informative article was submitted by our friend Mrs. Brenda R. Coone, director, Alabama Department of Revenue, Motor Vehicle Division. We would like to thank her for her continued a legacy of cooperation. Alabama is blessed to have such a dedicated public official. u
Certified pre-owned (CPO) vehicles are more popular than ever, according to a new report from Edmunds.com. The report, which evaluates the landscape of America’s used car market through the first quarter of 2013, found that CPO sales were up 6.2 percent over the first three months of 2012, and that the segment’s 21 percent share of all used car sales by franchise dealers in the first quarter of 2013 was the highest it has ever been. “Car manufacturers love certified pre-owned programs because they attract new customers, strengthen loyalty and help to move off-lease inventory,” commented Edmunds.com Director of Used Car Analysis Joe Spina. “We can expect even higher levels of CPO sales later this year as dealers absorb a growing influx of lease returns.” While certified pre-owned cars are generally priced higher than other used cars, they appeal to shoppers because they’re often deemed as more reliable and they come with an extended warranty, which alleviates the buyer’s fear of inheriting someone else’s problems. Other highlights in the report include: • There were 9.7 million used vehicle sales in the U.S. in the first quarter, down 6.2 percent from the first quarter of 2012. • Used car retail prices at franchise dealerships ($15,793, on average) remained relatively flat, up 0.5% year over year. • Subaru vehicles sold faster at franchise dealerships than any other used car brand in the first quarter; Volvo’s used sales were the slowest. Edmunds.com expects a typical seasonal price pattern for used cars this year: an increase in the spring, stability through early summer months, and then a decrease thereafter. To view Edmunds.com’s 2013 1Q Used Car Market report, visit http://www.edmunds.com/ industry-center/data/used-carmarket-quarterly-report.html. For information about NIADA’s certified pre-owned program, visit www.niadacertified.com.
8
AIADA
AL_0613.indd 8
JUNE/JULY 2013
w w w. a l a b a m a i a d a . c o m
5/20/13 9:54 AM
AL_0613.indd 9
5/20/13 9:54 AM
LEGAL UPDATE
The Risks of Charging Doc Fees F R O M T H E D E S K O F : J E F F I N G R A M O F G A L E S E & I N G R A M , P. C .
Many car dealers charge fees to their customers as part of any sale. These fees go by many labels such as “doc fees,” “customer service fees,” or “dealer service fees.” What do they all have in common? They all represent the possibility of additional profit for dealerships. Do you charge such a fee? Should you? If so, how do you determine the amount? Before charging a doc fee you need to determine whether such a fee is necessary or appropriate for your business. New car dealerships favor such fees because they can advertise a competitive price for a vehicle while protecting their ability to recover internal costs. This is important in new car dealerships because every new car dealer is competing against other dealerships that sell identical vehicles. After all, if two dealers are selling identical cars, where is the customer going to go? Probably to the dealership with the lower advertised price. Add in the doc fee and the lower price at one dealership may actually turn out to be a higher total cost to the customer than the dealership with the higher advertised price. With the amount of information available to customers on the Internet, not only are customers comparing prices between dealerships, they have information as to how much the dealership actually paid for the vehicles in inventory. This also limits a dealership’s ability to advertise a higher price for a new vehicle. The advertising advantage from using a doc fee is diminished somewhat when selling used vehicles, because it’s rare for customers to find identical vehicles at multiple dealerships. In the used market, even vehicles of the same make and model year usually have different mileage and are in different conditions. This makes a customer’s actual review and testing of a vehicle more important. Doc fees can still help when advertising used vehicles, however. Potential customers shopping for used vehicles do not necessarily expect to get exactly what they want. Instead, they are more willing to look at a range of vehicles with some of the characteristics that they desire. Because of this, a low price in an ad can still entice customers to your lot instead of a competitor’s lot. Customers can also find prices on
similar vehicles through Kelly Blue Book or other information sources, so you risk losing customers if your price is not aligned with those sources. Buy Here-Pay Here dealerships generally operate on a different principal. Customers at these lots tend to be more focused on the down payment and amount of their monthly payment than they are on the actual purchase price. In these cases, customers are less likely to shop for better car prices at other dealerships. Instead, the questions from these customers tend to be: “do I qualify to purchase a vehicle;” “which vehicles can I purchase;” and “how much will my payment be.”
There has been much litigation through the years regarding doc fees, including a recent rash of suits in Alabama claiming that it is illegal to charge sales tax on such fees and that doing so violates the Truth-in-Lending Act. There are potential pitfalls when charging doc fees. For example, some customers will be upset about having bargained to reach an agreeable price only to have a doc fee added on. You also potentially lose some advertising advantage by being able to advertise that you have no “hidden” costs. In some cases, you could even open yourself up to legal claims that could be avoided by not charging doc fees. There has been much litigation through the years regarding doc fees, including a recent rash of suits in Alabama claiming that it is illegal to charge sales tax on such fees and that doing so violates the Truth-in-Lending Act. While these claims appear to have little merit, there is cost
and risk associated with defending them. There is also the issue of how to determine the doc fee amount. Simply basing it on what other dealers charge makes the fee a lot less like an attempt to recover your costs than an attempt to increase your profit. If you are going to charge a doc fee, you should go through a process of determining the costs that you are attempting to recover. For example, if your fee is going to be based on the cost of preparing the vehicle for sale, you should determine how much, in total, you spend preparing vehicles for sale in any year. For example, if you spend $50,000 in preparing vehicles for sale and expect to sell 200 vehicles per year, your doc fee to recover those costs should be $250. You can decide what costs to include. If the fee that results from this calculation is not aligned with the market, you might adjust the types of costs covered. If you decide to charge a doc fee, be sure to charge it to every retail customer; waiving it for some customers can create various discrimination issues. In addition, charging it to credit but not cash customers could be considered a violation of the Truth-in-Lending Act. The question of whether or not to charge a doc fee has come under recent scrutiny with the creation of the Consumer Financial Protection Bureau, which works to ensure customers are protected from “deceptive” practices. While there’s no precedent of such yet, one can picture a scenario in which the CFPB concludes doc fees can be considered deceptive if they’re not disclosed before the customer commits to purchase a vehicle and starts signing the paperwork. As an owner, you have to understand that virtually every action you take in your business is subject to some risk/benefit analysis. If the potential benefit does not outweigh the risk, you have to ask yourself why you’re taking that risk. So, if charging a doc fee doesn’t produce real benefits, why take the risk?
BY JEFF INGRAM, GALESE & INGRAM, P.C. JOHN GALESE & JEFF INGRAM ARE AIADA’S ASSOCIATION ATTORNEYS AND ARE ON RETAINER FOR THE ASSOCIATION. AIADA APPRECIATES THE INVESTMENT THEY’VE MADE, BOTH IN TIME AND MONEY, TO THE SUCCESS OF THE ASSOCIATION AND WE ENCOURAGE OUR MEMBERS TO CONTACT THEM FOR AUTOMOBILERELATED LEGAL NEEDS.
10
AIADA
AL_0613.indd 10
JUNE/JULY 2013
w w w. a l a b a m a i a d a . c o m
5/20/13 9:54 AM
AL_0613.indd 11
5/20/13 9:54 AM
FEATURED
DEALER
Wayne White Motors – Boaz, Ala. EXEMPLIFYING THE DEFINITION OF ENTREPRENEURISM
Wayne began his working career at the ripe old age of twelve years old. He says he’s always had a love for hard work. His father – a farmer in Boaz, Ala. – taught Wayne about work by plowing, planting, picking cotton and raising their food. Due to rising cost of seed, feed and fertilizer, along with stiff competition from big corporations, Wayne’s father had to take a job in the steel mill in Gadsden to better provide for his family. When Wayne was eleven years old, his father had a massive heart attack and passed away. Wayne, his mother, his sister and his handicapped brother were left without any income. Wayne’s mother was blind in one eye and unable to work, but found a way to provide for the family’s basic needs until the children all graduated from high school. At the age of 12, to help provide for his family, Wayne took a job with his uncle who owned a grocery store. He’s been gainfully employed ever since. After finishing school in 1965, Wayne went to work for Amberson’s Clothing Store in Boaz, Ala. He loved working with people and he enjoyed providing service to his clothing customers. After the first year Mr. Amberson turned many of the day-to-day operations over to Wayne, allowing him to order inventory, price clothing, manage personnel and handle customer problems. Over the next seven years, Wayne built a large customer clientele and leveraged his contacts in 12
AIADA
AL_0613.indd 12
JUNE/JULY 2013
the wholesale market to buy merchandise at prices that helped increase profitability and made the company more competitive within the market. Wayne married his wife, Carolyn, in 1966. In high school, Wayne played on the basketball team and Carolyn was a cheerleader. He thought she was way out of his league – smart, talented, athletic and beautiful – and figured she’d turn him
down flat if he asked her for a date. He finally got up enough courage to ask her out and to his surprise and amazement she accepted. Their first date was at the prom. It was also their only date, until four years later. The second time around, Wayne knew that he wanted Carolyn for his partner in life. Like everything Wayne did, he pursued her with determination, and as soon as she graduated high
C O N T I N U E D O N PA G E 1 4
w w w. a l a b a m a i a d a . c o m
5/20/13 9:54 AM
AL_0613.indd 13
5/20/13 9:54 AM
C O N T I N U E D F R O M PA G E 1 2
school they married; after 47 years of marriage Wayne still says he is still one of the luckiest men on Earth. They have two sons: Stephen, who is married to Kathryn, and has two daughters Bailey and Gracie; and Patrick, who is married to Kim and serves as minister
of education and church administrator at Meadowbrook Baptist Church in Rainbow City, Ala. In 1972, Wayne and his older brother Lavaughn opened Wayne’s Men’s Store in Boaz. Before opening the store, Wayne told Mr. Amberson of his plan, and that
his intentions were to never hurt Mr. Amberson. They remained lifelong friends. To finance their endeavor, Wayne and Lavaughn got a loan from a local bank. According to Wayne, it was “just enough money to kill ourselves with hard work.” And work hard they did; in their first year, they turned their inventory 13 times. It was a very profitable time for the White brothers, who felt blessed beyond their wildest dreams and enjoyed the fruits of their labor. Wayne also found a way to give back. Being in business with someone as trustworthy as his brother allowed Wayne time to pursue a much higher calling, in the church. Wayne had served as a leader and Sunday school teacher at his church, but at the age of 25 Wayne accepted the call to preach the Gospel of Jesus Christ and the Lord provided him a flock to lead. About 10 years after opening the clothing store, another opportunity came Wayne’s way when his older brother Lowell decided to sell his Plymouth Valiant. Wayne didn’t know the value of cars, but thought it was a good deal and with a little work he could make some money on the car. He detailed and repaired the car in the evenings at home, then offered it for sale in the front of the clothing store. Within two days, he’d sold it to a car dealer for a nice profit. It was then that Wayne made a discovery: he enjoyed selling cars. Knowing that if he sold cars he could not
14
AIADA
AL_0613.indd 14
JUNE/JULY 2013
w w w. a l a b a m a i a d a . c o m
5/20/13 9:54 AM
only maybe make a living, but work outside – which he loved – Wayne made a decision to pursue it further. Wayne went to Kilpatrick ChryslerPlymouth and bought two Plymouths that had been trade-ins. He detailed them and offered them for sale. They didn’t retail as fast as the Valiant, however, so he took them to Ft. Payne Auto Auction, where he sold one for a $50 profit. A customer who had seen the other car at the auction came the next day to purchase it, with another $75 profit. A career path had opened for Wayne, and he decided it was what he wanted to do in life. He sold his portion of the clothing store to his brother, who remained in business and operated it successfully until his retirement in 2006. Wayne began a wholesale operation in 1983 and soon became totally dependent upon the automobile business for his livelihood. For the next 12 years, he operated the wholesale operation, with his wife beside him every step of the way. They successfully bought, detailed and sold automobiles; it was satisfying for Wayne to know they were dependent only upon themselves for success or failure. It was liberating and a freeing of the spirit. They enjoyed it so much their sons eventually came to work with them. Stephen was especially gifted at buying and selling. In 1996,
Wayne and Stephen opened the retail location where Wayne remains today in Boaz. Then, as today, about 70 percent of the business was wholesale and 30 percent was retail. Stephen remained with Wayne for a few years. The experience he gained reconditioning cars for resale was his inspiration for opening a paintless dent repair business; he started chasing hail storm damage repair all over the country. Aside from losing a valuable and talented employee, Wayne said the hardest part was that he was finding it hard to pray for hail storms so Stephen’s business could be successful. When Stephen left, Shannon Pullen, a fellow pastor who is very talented both on the lot and in the pulpit, joined Wayne’s team. Together, with many of their family members helping, they still run the operation today. Carolyn has worked with Wayne for over 30 years, although she’s not as active in the last few years as she used to be. Wayne once stated that all pulpits are not made out of wood – some are metal and chrome and have engines and transmissions. He believes that business should be secular, but if asked by a customer or fellow dealer about his convictions he’ll deliver a heartfelt testimony. Although he loves cars, given a choice between cars and souls, the soul wins every time. When he stands in
the pulpit on Sundays and looks out at the congregation he thanks God for giving him the opportunity to heal and save a soul. For the last 23 years, Wayne has preached the gospel in a church that is just three miles from where where he was born and grew up. Everyone in the church knows him, and like his business, the church has prospered and grown. Wayne White exemplifies the definition of entrepreneurism. He came from meager means, but through hard work, honesty, dedication and conviction he’s prospered far more than he could have ever imagined. Along the way, he’s never sacrificed his family or spiritual needs. AIADA is proud to have him as a member.
15
w w w. a l a b a m a i a d a . c o m
AL_0613.indd 15
JUNE/JULY 2013
AIADA
5/20/13 9:54 AM
PERSPECTIVES
A Word from Microbilt Corporation A PA R T N E R ’ S P E R S P E C T I V E O N T H E A N N U A L C O N V E N T I O N
MicroBilt has been attending AIADA conventions for more than 10 years now. I will never forget the first convention I had the pleasure of attending: it was held at Callaway Gardens and had a country/western theme. Attendees got cowboy hats and bandanas to wear to the gala evening event. I still have my hat, and look at it with fond memories. Another convention we really enjoyed was the year of with the Newlywed Game theme. We probably had even more fun than the “contestants” (I won’t mention any names); I laughed so hard, I had tears streaming down my face. It was amazing to see AIADA couples, all at various stages in their married lives, get up and answer silly questions about each other. To see the smiles and laughter, and the love they had for each other, was very rewarding. AIADA had a great parade of hoe-down attire that year, and the live auction was a blast. I have learned over the years that the auctions move fast, so I sit on my hands. The members of AIADA must have taught their children all about
auctions, as I’ve seen many outbid the adults. I look forward to attending each year, and can’t wait to see what the next theme is so I can start getting ready. The AIADA conventions bring lots of education, laughter and hugs, and we always have the best time there with all the members and their families. Each of you have truly become family to me. I also look forward to seeing the kids each year; it’s been amazing to watch them grow up. MicroBilt has not only gained some amazing customers, but also learned great insights about auto dealers and what their needs, issues and wants are. Being part of AIADA has allowed us to listen and provide better service. It’s been rewarding to work with smaller dealerships and show them how they can get the same services very large dealerships receive. Missy Rogers and I have been blessed to be vendor members of the AIADA, and we thank the association and its members such service and dedication to the industry. It’s our pleasure to support you all!
MicroBilt has been the leading data provider for dealerships for over thirty years, and a valued partner of the AIADA for many years. Their suite of products and services provides timely and accurate information for better business decisions. With end-to-end tools, they can help with everything from pulling credit reports to collections and reporting. AIADA appreciates their loyalty and commitment to improving our member’s businesses, and we hope to enjoy a relationship with MicroBilt for many years to come. Thanks to MicroBilt for all they do for our dealers.
BY RANDY MOSTELLER
16
AIADA
AL_0613.indd 16
JUNE/JULY 2013
w w w. a l a b a m a i a d a . c o m
5/20/13 9:54 AM
AUCTION SPOTLIGHT
Chattanooga Auto Auction Growth Spurt AU C T I O N F O C U S E S O N C R E AT I N G T H E R I G H T AT M O S P H E R E F O R B U Y E R S A N D S E L L E R S T O T R A D E W I T H C O N F I D E N C E
Chattanooga Auto Auction has been quietly rebuilding its dealer network over the last three years. Under the management of David Bynum and with the support of a great team, the auction has re-established itself as a major player in area dealers’ minds and hearts. Dealers are the real focus at Chattanooga and creating the right atmosphere for buyers and sellers to trade with confidence, in a friendly and relaxed way, is the main goal of everyone on staff. Tony Moorby, another principle at the auction, originally hails from England but has been in the South since 1982. He thoroughly enjoys the hospitable ways in which business is conducted. “You’ll notice the welcome from the moment you set foot in door till you leave after a successful visit,” bragged Moorby. “Even the food in our cafeteria is good, rib-sticking southern fare.” Between the two, Bynum and Moorby have more than eighty years’ experience in the car business and have put
together a core group of managers and staff dedicated to expanding the business and its influence in the area. Of particular interest to Alabama dealers is the fact that Ponda Sparks has recently joined the team. She’s well known in the northern Alabama car business and is admired by all. “You’ll love it here,” Sparks said, “And I think my broad experience in the retail and wholesale sides of the business is bringing something to the party. I know lots of dealers and the patterns of their businesses and it’s my job to help them prosper. I think I might learn a thing or two from all the talent at Chattanooga too, so it’s a win-win.” The variety of cars and trucks at the auction is vastly different from just three years ago, according to Mike Schmucker, the auction’s sales manager. His sales staff is heavily focused on growing the dealer consignment network and getting more cars into the sale. “It’s a must to monitor growth carefully. Dealers tend to follow cars but consignors like to know
there’s going to be enough money in the marketplace to keep prices healthy.” The quality of the people is matched by the facility. The 55-acre site houses the S-lane auction, beautiful offices and a state-of-the-art recon center. Mechanical bays and a test track are also on hand. Online simulcast sales are held as part of normal sales activity. The auction hosts some fleet/lease accounts, especially banks and finance companies, as well as TVA sales, municipal and institutional business and while there’s a push to grow that side, the big accent is on dealer business. A survey of existing and potential customers persuaded the auction to move the dealer consignment sale to Thursday mornings and to host a sale every Tuesday evening for both dealers and the public. This change has really stepped up the pace of business and everyone seems to be pleased. If you haven’t been over to Chattanooga Auto Auction recently, it might be time to see what’s going on for yourself.
17
w w w. a l a b a m a i a d a . c o m
AL_0613.indd 17
JUNE/JULY 2013
AIADA
5/20/13 9:54 AM
PRODUCTS & SOLUTIONS
ADESA Launches OPENLANE Site E M B R AC I N G T E C H N O LO GY CA N A D D L I F E T O YO U R D E A L E R S H I P A S T H E M I L L E N N I A L G E N E R AT I O N B E C O M E S A F O R C E I N T H E M A R K E T
ADESA recently launched a new website built on the industryleading OPENLANE platform, designed to make it easier than ever for dealers to find, buy and sell cars. The technical experts at OPENLANE, which ADESA acquired in late 2011, worked closely with ADESA’s experienced auctions operations team to create a comprehensive end-to-end vehicle remarketing solution for car dealers. With the new ADESA.com, dealers now have run lists, ADESA LiveBlock and ADESA DealerBlock all in one place. With the new site, dealers can take advantage of: u Modern and user-friendly site navigation and functionality u E nhanced vehicle details page with integrated condition report u N ew ADESA Market Guide that combines in-lane and online vehicle pricing history u B lack Book® integration for evaluating fair market price Find Cars ADESA offers a wide range of online and mobile tools to help dealers expand their vehicle marketplace. With the new site, dealers can: u A ccess vehicles 24 hours a day, seven days a week u F ind a wide variety of off-lease, commercial and dealer cars u S earch all auction channels at once or separately u S earch by make, model, year, price, location, seller and more u C reate a watch list of desired vehicles u S ave frequent searches for quick reference u R eceive email alerts when desired vehicles are available Dealers can search on a local, regional or national level, which allows them to locate specific inventory that may not be available, or may be priced too high, in their local market Buy Cars ADESA.com showcases a wide variety of off-lease, commercial and dealer cars, as
well as inventory from key national consignors. Multi-franchise dealers are even able to use a single login for multiple stores. There are multiple ways to buy cars, including: u D ealerBlock: 24/7 online access to vehicles via bid-now events and buy-now pricing u L iveBlock: simulcast sales from all ADESA auction locations u R un Lists: find inventory offered in the lanes u A utoBid: bids up to a pre-set maximum; sends notifications if vehicle information changes Options also include post-sale inspections, buy-back guarantees and consignor-specific certification programs. Dealers will also find integrated floorplan financing options and transportation solutions. Sell Cars With ADESA’s DealerBlock, dealers can showcase inventory online—whether the car is at auction or still on the lot. DealerBlock allows dealers to sell alongside national consignors and dealer groups and gain national exposure online. And ADESA Dealer Connect is a unique opportunity for dealers to wholesale right from their lot while the vehicle is still available for retail customers. This reduces not only wholesale and transportation costs, but also the overall sales cycle. The online seller performance panel also lets dealers: u M onitor sale-day activity as it is happening u A djust strategy as needed to maximize sales u C heck the status of pending transactions Find Support In addition to online help and experienced customer service representatives, ADESA’s dealer services team provides conciergelevel service and personalized support. In addition, the analytical services group is able to identify economic trends and understand individual marketplaces to help dealers better optimize their inventory.
18
AIADA
AL_0613.indd 18
JUNE/JULY 2013
w w w. a l a b a m a i a d a . c o m
5/20/13 9:54 AM
WELCOME NEW MEMBERS AND RENEWALS COME JOIN US - WE ARE GROWING Membership in AIADA is an investment in the growth of and the protection of the Independent Automobile Business in Alabama Since January 1st until April 15th of this year these 54 dealers have decided to invest in their future. From the rest of us who are already members we welcome you aboard and THANK YOU for your caring
NEW MEMBERS
HASSAN FARHAT ACCEPTANCE AUTO FINANCIAL MOBILE
LIZETH VILLARREAL & JUAN VALLARREAL ORTEGA AUTO SALES RUSSELLVILLE
ADAM RUE ADAM RUE AUTO SALES INC MUSCLE SHOALS
ROBERT DENNIS ROBERT DENNIS AUTO SALES HAYDEN
JERRY JORDAN ATTALLA AUTO SALES ATTALLA
BILL ISRAEL ADAMSON FORD LLC BIRMINGHAM
JOHNNY SMITH JOHNNY’S AUTO SALES TUSCALOOSA
STEVE GRAY UNI TOWING & WHOLESALE CARS ATTALLA
NICK PAWLAK ADESA ATLANTA AUTO AUCTION FAIRBURN
DON CROFT KC’S USED CARS SCOTTSBORO
PETE WOLFF WOLFF MOTOR CO. LLC EVERGREEN
JONAH ALEXANDER TEAM MOTOR CO. BOAZ
MARK BORING AUTO CREDIT PURCHASING CENTER LLC JACKSONVILLE
KEN HARRIS KEN HARRIS AUTOS ALES MORRIS
JASON R THOMAS & PHYLLIS THOMAS WORLD CLASS MOTORS GARDENDALE
BOBBY ELLIS TOWN CREEK AUTO SALES LLC TOWN CREEK
MICHAEL R. JONES AUTO EXPO DOTHAN
TONY J. & DORETTA M. KING KING’S QUALITY CARS LLC CHELSEA
APRIL RENEWALS
DONALD E. BENTLEY BENTLEY AUTOMOBILE CITY MERIDIANVILLE KHALED KHILIDE BEST BUY AUTO SALES BIRMINGHAM
EARL GRIGSBY TRIPLE E AUTO SALES ROGERSVILLE
JON B. & COREY NELSON B & H MOTORS HOOVER
BOBBY & SUSAN SIMMONS AUTO CREDIT LLC MUSCLE SHOALS
TIM VOLLENWEIDER UNITED ACCEPTANCE INC. SPANISH FORT
KEN CROWDER & CATHY WILKERSON BLUE HOUSE AUTO SALES PINSON
TONY RICHARDS WE FINANCE AUTO SALES MONTGOMERY
BOBBY PARK BOBBY PARK TRUCK & EQUIPMENT INC. TUSCALOOSA
LINDA HILYER C & J AUTO SALES INC. FORT PAYNE
CHAD POSTLE WHOLESALE SOLUTIONS INC. LOXLEY
STEVE SHAYLADA CAPITOL CITY PRE OWNED LLC MONTGOMERY
FEBRUARY RENEWALS
RICHARD PRESTWOOD CARCO CARS LLC MOBILE LES HEAD, TONEECE PRICE, STANLEY PRICE, BOBBIE PIKE CENTRAL ALABAMA AUTO SALES LLC MILLBROOK MAJID NASSER ETHAN HUNT AUTOMOTIVE LLC MOBILE SOLOMON J. GARRETT GARRETT AUTO SALES BIRMINGHAM TRENT & ALLISON HALL HALL’S MOTORSPORTS MOBILE WAYNE DANIEL HAMILTON STATE BANK CARTERSVILLE, GA JIMMY W. BROWN JIMMY’S USED CARS ATTALLA, AL 35954 TERRY LEE MCLEAN L.A. MOTORS LINCOLN DON MARR L & M MOTORS LLC ALBERTVILLE BILL RODGERS LEE-RODGERS TIRE CO. BIRMINGHAM ROBERT M. SULLIVAN MID-SOUTH AUCTION PEARL, MS MITCH MORGAN MITCH MORGAN MOTORS INC. ALBERTVILLE TOMMY MITCHELL MITCHELL MOTORS BIRMINGHAM
(not included in the last issue) JASON & MELISSA WILLIFORD AUTOMOTIVE.COM LLC FORT PAYNE LESTER AVERY BAMA AUTO AUCTION FORT PAYNE
MAURICE NUBY CARS-4-YOU IND/DBA PREFERRED IMPORTS BIRMIMGHAM LAMAR CHASTEEN CHEROKEE MOTOR CO LLC PIEDMONT DAVID ANDREWS CITY AUTO FINANCE LLC MEMPHIS DONNIE W. DEAN DEANCO AUTO AUCTION DOTHAN DARRELL PETTIE FIRST CALSS AUTO SALES PLEASANT GROVE RICHARD GILBERT & RANDY L BAUGH GILBERT & BAUGH FORD BOAZ DAVE LAWSON MIDFIELD CAR AUCTION/TITLES LLC MIDFIELD BILL CRAMER/ALLYN CRAMER OUTLET RENTAL CAR SALES DOTHAN BOBBY L. SANDERSON SANDERSON TRUCK SALES DECATUR GARY SHERRILL SHERRILL MOTOR CO. TUSCALOOSA NELSON R. WRIGHT WRIGHT AUTO SALES RAINBOW CITY
MARCH RENEWALS
MOHAMED ELLEISSY MO RYDERS AUTO SALES GADSDEN
AMIN-EL-HUSARI A & M AUTO SALES INC. BIRMINGHAM
GARRY BARNES & WAYNE WILKINSON NATIONAL ADVANCE CORP. MUSCLE SHOALS W. L. WELCH JR. NITRO MOTORS LLC ALABASTER
S FRANCIS MOUAWAD A1 AUTO SALES MOBILE
MICHAEL BRATTON BRATTON AUTOMOTIVE INC PHENIX CITY W.O. HOGELAND & JEFF HOGELAND BREMEN MOTORS CULLMAN BRIAN MCCARLEY BRIAN’S AUTO SALES RUSSELLVILLE DAN BLOOR CARMAX AUTO SUPERSTORES INC. RICHMOND, VA AARON OESTREICH CARSFORSALE.COM SIOUX FALLS, SD KEITH PARKER CASINO AUTOMOTIVE LLC MOBILE GARY BREWER JR. CERTIFIED CARS OF MOBILE MOBILE S. G. (SKIP) NESBITT CHRISTIAN BROTHERS INC. BIRMINGHAM THOMAS (SONNY) GLOVER CIRCLE AUTO WHOLESALERS DOTHAN JON FRIZZER COASTAL AUTO GROUP FOLEY CHRISTOPHER T. HOWLE CRIS HOWLE AUTO SALES LILLIAN JOEL OWENS DRIVE AND SAVE BIRMINGHAM JON EHLINGER DRIVE TIME CAR SALES COMPANY LLC PHOENIX, AZ JAY SAUL E-Z AUTO CREDIT JASPER HAROLD & LINDA BEANE H & R MOTORS INC SPRINGVILLE RUSS HARSHMAN HARCO AUTOMOTIVE TUSCALOOSA KATIE WALDROP HERITAGE SOUTH FEDERAL CREDIT UNION SYLACAUGA JOHN FITZPATRICK J.F. AUTOMOTIVE, INC. MOBILE
J.G. ADAMS MAJOR MOTORS OF ARAB, INC. ARAB MACK MCCORMACK MCCORMACK AUTO SALES ATHENS
CLINT SCARBOROUGH GUARANTEED AUTO SALES INC. DOTHAN
MIKE THOMAS MIKE THOMAS AUTO SALES HUNTSVILLE
WAYNE WADE & GLORIA HODGES FAIRWAY AUTO SALES INC. LEEDS
LEANDER D. WEARY MR LEE’S AUTO CONNECTION BIRMINGHAM
MICHAEL FRAZER FRAZER COMPOUTING INC. CANTON, NY
SCOTT DORIETY O & R MOTORS INC. BIRMINGHAM JAMES PARKER & ROBERT PARKER PARKER WHOLESALE CARS TALLASSEE
CHRISTOPHER HARRIS R.C. MOTORS INC. BIRMINGHAM SHANE DUKE RITE WAY AUTO SALES INC. MUNFORD ROBERT CASE ROBERTS AUTO SALES HARTSELLE LINNIE HELMS S & D GARAGE INC. ANDALUSIA BOBBY SANDERS SANDERS MOTOR CO. WETUMPKA BILL HUDGENS SOUTHEASTERN CAR & TRUCK RENTALS INC. MONTGOMERY
DENNIS HULSEY ALABAMA PAINT & BODY INC. MONTGOMERY DAVE MCCAIN BROOKWOOD MOTORS PELHAM
GIP MCKEE MCKEE AUTO SALES ALBERTVILLE
WARREN B. PERLMAN PEARL MOTORS MOBILE
DONALD GANT A & D MOTORS INC. ARAB
GARY RYALS GARY’S AUTO SALES CAMDEN JIMMY PUGH J & G AUTO SALES CAMDEN JAMIE CRAWFORD JAMIE CRAWFORD AUTO SALES INC. MOBILE JERRY SMITH JERRY’S USED CARS HANCEVILLE ROBERT JINRIGHT JR. JINCO MOTORS INC. PELHAM KENNETH FORTNER K.F. MOTORS ALBERTVILLE PAUL ABOU JAOUDE MONTEVALLO IMPORTS LLC MONTEVALLO TROY PAINTER P & P MOTORS ALBERTVILLE CLAUDE A. TAYLOR JR. RIVER ROAD AUTO SALES INC. CORDOVA
STAN GILLARD STANS CAR SALES LLC IRONDALE
DICK WRIGHT ROBO MOTORS SYLACAUGA
JERALD BROOKS STAR TRUCK PARTS BIRMINGHAM
KENNETH W STELPHENS SR. PANOLA AUTO SALES LLC HIGHLAND HOME
GUY PADGETT STERLING CREDIT CORP. AIKEN, SC
CHARLES BUTLER/MIKE BUTLER VALLEY MOTORS OF ATHENS ATHENS
ANDERSON COLLINS STOP N SHOP AUTO SALES SYLACAUGA
WAYNE WHITE WAYNE WHITE MOTORS BOAZ
FRANK BOOKE THE CAR EXCHANGE INC. OXFORD JAMES D. BOYD TINKER BOYD USED CARS FLORENCE TONY PERRY TONY’S AUTO SALES HIGDON
19
w w w. a l a b a m a i a d a . c o m
AL_0613.indd 19
JUNE/JULY 2013
AIADA
5/20/13 3:06 PM
CAR COMMUNITY
Mary Jo’s Million
ADESA BIRMINGHAM RAISES MORE THAN $25,000 TO BENEFIT S T. JUDE CHILDREN’S RESEARCH HOSPITAL
A classic car show hosted by ADESA Birmingham on April 17 raised more than $25,000 for Mary Jo’s Million, a project benefiting St. Jude Children’s Research Hospital. ADESA Birmingham’s fundraiser consisted of a classic car show with observers voting with dollars. The car that raised the most money won. There was also an auction of sports memorabilia and race tickets. One of the most touching auction items was a Mary Jo T-shirt that sold for $1,400 to the auctioneers of ADESA – who then donated the shirt back. Being part of something much bigger than buying and selling vehicles became contagious, and the donations climbed. Everyone was in the giving spirit and the fundraiser was a huge success for a more-than-worthy cause. Of course, Mary Jo’s last name is not million. Rather, it is Dietsch, and her father is Dan Dietsch, the general manager of ADESA Memphis. Dan is continuing a goal, begun by Mary Jo, to raise one day’s worth of expenses for St. Jude – approximately $1 million. In the fall of 2001, Mary Jo, then 5 years old, was diagnosed with a pediatric brain tumor called a crainyopharyngioma. She underwent major surgery to have it removed, only to have a reoccurrence of the tumor three months later. She was taken to numerous doctors and hospitals for consultations, which ended with her being accepted into St. Jude Children’s Research Hospital in Memphis. At St. Jude she underwent radiation treatments that stabilized her disease until July 2008, when she developed uncontrollable headaches and testing revealed her tumor had returned in a very rare and aggressive form. In October 2008, Mary Jo had two more brain operations, followed by chemotherapy and an extensive course of radiation therapy, which she completed in January 2009. The trauma of those treatments was tremendously difficult on her small body, yet she continued to fight like a fierce warrior. She battled intense and debilitating pain, seizures and blindness with steadfast resolve and without complaint. In February 2009, she was admitted into hospice care but still fought her way back to school on a part-time basis. Finally, on January 8, 2010, at the tender age of 14, Mary Jo Dietsch passed away at her home in Olive Branch, Miss. The ninthgrader at Southern Baptist Educational Center in Southhaven, Miss., was relocated to her heavenly home.
Dan spoke of his daughter’s trials and accomplishments at ADESA Birmingham’s fundraiser for his beloved Mary Jo and her goal to raise $1 million for St. Jude. He told of Mary Jo’s strength and her caring personality and how she always put everyone else first ahead of her own needs. Dan said one of the hardest times Mary Jo faced was when doctors told her the only treatment available to fight the growing tumor would most likely leave her permanently blinded for life. On the way home she was quiet, and Dan said he could see tears running down her cheek. When he asked what was bothering her, she told him, “I really don’t want to be blind.” Dan said he tried as best he could to reassure her that it would be okay. He said a few minutes later, she asked him if he thought the place that cut hair would be open that day. Dan told her he could drive by to see and asked why she wanted to know. Mary Jo said that after she began chemotherapy she would lose her hair and she wanted to have all of her hair cut off so they could use it to make a wig for someone else going through chemotherapy. Dan said that was the way she was. Even though she was hurting, helping someone else was never far from her thoughts. St. Jude Children’s Hospital had given Mary Jo hope and time to share life with those she loved, and she wanted to give back. So she started Mary Jo’s Million. Before the Birmingham fundraiser, Mary Jo’s Million had raised more than $850,000. There are thousands of stories like Mary Jo’s, unfortunately. St. Jude has a hard time trying to handle all the requests for admission from children like Mary Jo. It hits hard when a child is seriously ill with a life-threatening disease. ADESA Birmingham’s own Norma “Spooks” Marler, who has long worked dealer registration, has a grandson going through cancer treatment at St. Jude. Please keep 14-year-old Kirby Vidrine in your prayers. When Kirby was diagnosed with a tumor on his brain stem Feb. 14, 2012, three doctors told him he was terminal with no hope for a cure. He went to St. Jude and was accepted into a research program, and when an MRI was performed on Feb. 14, 2013, it showed the tumor was gone. He is still in treatment and receiving an MRI every two months. Thank God for St. Jude, and special thanks to all the caring dealers who gave the money to make this a very successful fundraiser for a worthy cause.
Mary Jo Dietsch
Dan Dietsch
20
AIADA
AL_0613.indd 20
JUNE/JULY 2013
w w w. a l a b a m a i a d a . c o m
5/20/13 9:54 AM
AUCTION DIRECTORY
MARY JO’S MILLION
ADESA Birmingham St. Jude Angels
ABC – ATLANTA 444 Joe Frank Harris Parkway Cartersville, GA 30120 Sale every Tuesday 6 p.m. & Friday 11 a.m. Phone: (770) 382-1010
GEORGIA DEALERS’ AUTO AUCTION 7205 Campbellton Rd. Atlanta, GA 30331 Sale every Tuesday 10 a.m. Phone: (404) 349-5555
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
GREATER NEW ORLEANS AUTO AUCTION 61077 St. Tammany Ave. Slidell, LA 70460 Sale every Wednesday 9:30 a.m. Phone: (504) 643-2061
ADESA ATLANTA AUTO AUCTION 5055 Oakley Industrial Blvd. Fairbum, GA 30213 Sale every Wednesday 8:30 a.m. Phone: (770) 357-2277
HIGHWAY 101 DEALERS AUTO AUCTION 2100 Hwy. 101 Rogersville, Al (256) 247-3600 Sale Day – Thursday 10:30 a.m.
ADESA OF BIRMINGHAM 804 Sollie Dr. Moody, AL 35004 Sale every Monday 6:30 p.m. & Wednesday 9 a.m. Phone: (205) 640-1010
KELLEY AUTO AUCTION 3485 US Hwy. 431 Attalla, AL 35954 Sale every Tuesday night Phone: (256) 538-9095
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
LONG BEACH AUTO AUCTION, INC. 8494 County Farm Rd. Long Beach, MS 39560 Sale every Wednesday 3 p.m. Phone: (228) 452-2030
ADESA OF MEMPHIS 5400 Getwell Rd. Memphis, TN 38118 Sale every Tuesday 9 a.m. Phone: (901) 365-6300
LOUISIANA’S 1ST CHOICE AUTO AUCTION 18310 Woodscale Rd. Hammond, LA 70401 Sale every Tuesday 8:30 a.m. Phone: (985) 345-3302
ALBANY AUTO AUCTION 1421 Liberty Expressway SE Albany, GA 31702 Sale every Thursday 6:30 p.m. Phone: (229) 435-7709
MANHEIM CENTRAL FLORIDA 9800 Bachman Rd. Orlando, FL 32824 Sale every Wednesday 9 a.m. Phone: (407) 438-1000
AMERICA’S AUTO AUCTION 6615 Mobile Hwy. Pensacola, FL 32526 Sale every Tuesday 9:30 a.m. Phone: (850) 944-1945
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
ATLANTA AUTO AUCTION 4900 Buffington Rd. Red Oak, GA 30272 Sale every Thursday 9 a.m. Phone: (404) 762-9211 AUTO AUCTION OF MONTGOMERY 6142 Troy Highway Pike Road, AL 36064 Sale: every Thursday 10:00 a.m. Phone: (334) 288-3399
Car Show Winner & Trophy
BAMA AUTO AUCTION 4103 Gault Avenue South Ft. Payne, AL 35967 Sale: every Thursday 6:00 p.m. Phone: (256) 304-0947
MANHEIM METRO ATLANTA 2244 Metropolitan Pkwy SW Atlanta, GA 30315 Sale every Tuesday noon Phone: (404) 767-3652 MIDFIELD CAR AUCTION 1468 Hartman Industrial Blvd. Midfield, AL 35228 Sale every Wednesday and Saturday-6:30 p.m. Phone: 205-923-6535
BIRMINGHAM AUTO AUCTION 125 Meadland Circle Birmingham, AL 35023 Sale every Thursday 6 p.m. Phone: (205) 744-4030
PENSACOLA AUTO AUCTION 401 West Burgess Rd. Pensacola, FL 32503 Sale every Thursday 9:30 a.m. Phone: (850) 477-3063
CENTER POINT AUTO AUCTION 100 13th Ct. NE Birmingham, AL 35215 Sale every Monday 6 p.m. Phone: (205) 856-6527 CHATTANOOGA AUTO AUCTION Chattanooga Auto Auction, Public Sale every Tuesday @ 6:30 PM, Dealer Sale Thursday @ 10:00 AM and IN-OP sale begins 9:00 on Thursdays
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.
DEALERS AUTO AUCTION OF HUNTSVILLE 26125 Hwy 72 Athens, AL 35613 Sale every Tuesday 9:30 a.m. Phone: (256) 232-0201 DEANCO AUTO AUCTION 3664 South Oates St. Dothan, AL 36301 Sale every Wednesday 10 a.m. Phone: (334) 792-1116
ADESA’s Classic Car Show
MANHEIM MISSISSIPPI 7510 US Hwy. 49 N Hattiesburg, MS 39402 Sale every Monday 5 p.m. & Thursday 9 a.m. Phone: (601) 268-7550
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
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
21
w w w. a l a b a m a i a d a . c o m
AL_0613.indd 21
JUNE/JULY 2013
AIADA
5/20/13 9:54 AM
ALABAMA INDEPENDENT AUTO DEALERS ASSOCIATION ANNUAL CONVENTION ALABAMA INDEPENDENT AUTO DEALERS ASSOCIATION ANNUAL CONVENTION THE PARK VISTA, GATLINBURG, TN – JULY 18TH - 21ST 2013
EXHIBITOR'S BOOTH REGISTRATION
BOOTH’S ARE LIMITED AND ARE ON A FIRST-COME BASIS _____YES, we are interested in exhibiting at the AIADA 2013 Convention. Enclosed is our check in the amount of $700.00 for Exhibit space for one 8' x 10' Table with cloth. This will include one registration. (We will be having more activities in the exhibit area in order to give our vendors more exposure.) _____NO, we are not interested this year. PERSON TO CONTACT_______________________________________________________________________ FIRM NAME_________________________________________________________________________________ ADDRESS____________________________________________________________________________________ CITY:__________________________________________________STATE______ZIP______________________ PHONE:(
)_________________________TYPE OF PRODUCT OR SERVICE________________________
SIGNED BY:______________________________________DATE:______________________________________ “The exhibitor assumes the entire responsibility and liability for losses, damages, and claims arising out of exhibitors activities on the Hotel premises and will indemnify, defend and hold harmless the Hotel, its agents, servants and employees from any and all such losses, damages and claims.” SET-UP TIME is Thursday, July 18th after 2:00 p.m. EXHIBIT TIME- Friday 8:00a.m-Saturday 2:00 pm. (dismantle at 2:00 pm). BOOTHS ARE TABLE TOP ONLY-NO BIG DISPLAYS. THERE WILL BE ASSIGNED BOOTHS BASED ON FIRST COME BASIS AND BOOTHS ARE LIMITED. ******IF YOU NEED TO SHIP TO HOTEL: CALL THE PARK VISTA The phone number is 1-800-227-5622. Reservation # is 1-800-421-7275 Visa_____Mastercard_____Discover_____AMEX________ Card #_______ ________ _________ __________ Exp.___ /___ CVV#________ Signature________________________________________Please mail form with check to AIADA, P.O. Box 19627, Birmingham, Al 35219 22
AIADA
AL_0613.indd 22
JUNE/JULY 2013
w w w. a l a b a m a i a d a . c o m
5/20/13 9:54 AM
D
Participant Information: Member Name (as it will appear on badge)____________________________________________________ Name of Spouse/Guest (as it will appear on badge______________________________________________ Names of Children attending1.____________________Age____ 2._______________________Age______ ***(Please fill in age) 3.____________________Age____ 4._______________________Age______ Dealership or Business Name__________________________________________________________________________ Address:_____________________________________________ E-Mail Address_____________________ City:____________________State:_____Zip:___________Telephone:______________Fax:____________ ϖ EARLY BIRD REGISTRATION: DEALER’S REGISTRATION IN BY May 31st WILL BE REGISTERED FOR THE EARLY BIRD DRAWING !!!!!
Registration Fees:
Member Member’s Spouse or Guest Children 13 yrs and up Children 6 yrs to 12 yrs Children 0 to 5 yrs. FREE
______$189.00 ______$189.00 ______$189.00 ______ $ 94.50 ______(How many)
=$__________ =$__________ =$__________ =$__________
th *GOLF THURSDAY MORNING JULY 18 . (You may want to arrive on Wed. July 17TH if you plan to Play) GOLF WILL BE THURSDAY MORNING THE 18TH , TEE OFF TIME IS 8:00 am-Shotgun Start-Gatlinburg Golf Course, Pigeon Forge.
Number of Golfers___________ @ $70.00 each =$___________ ** PLEASE FILL OUT GOLF REGISTRATION FORM ENCLOSED
******* TOTAL REGISTRATION PAYMENT = $____________ (Please make check payable to: A.I.A.D.A. Payment must accompany Registration form) (We accept Visa, Mastercard, Discover. Amex. ) (please check )
CREDIT CARD TYPE: Visa______, Mastercard_______, Discover______Amex_____
Card #___________________________Expiration_________CVV#________(3 numbers on back of card) or (4 numbers on front of AMEX)
BILLING ADDRESS FOR CARD (if different from above)_________________________________________________________ NAME ON CARD_______________________________SIGNATURE CARD HOLDER__________________________________
>>>Please return registration form to:
A.I.A.D.A., P.O. BOX 19627, BIRMINGHAM, AL 35219 OR FAX to 205-942-3565 or EMAIL TO judy@alabamaiada.com if putting on credit card.
****OVER ON BACK FOR ROOM RESERVATION INFORMATION… *****INFORMATION ON ROOM RESERVATIONS
ROOM RESERVATIONS CAN BE MADE BY CALLING TOLL FREE 1-800-421-7275 ONLINE BOOKING CODE IS AIA. FIRST NIGHT’S DEPOSIT OR CREDIT CARD IS REQUIRED. WHEN MAKING YOUR RESERVATION, PLEASE IDENTIFY THE GROUP NAME – ALABAMA INDEPENDENT AUTO DEALERS ASSOCIATION. CHECK IN TIME IS 4:00 PM AND CHECK OUT IS 11:00 AM. CANCELLATIONS MUST BE RECEIVED 72 HOURS PRIOR TO ARRIVAL OR 1 NIGHT ROOM AND TAX WILL BE ASSESSED. ALSO, IF YOU ARE PLANNING ON PLAYING IN THE GOLF TOURNAMENT, YOU MAY WANT TO CHECK IN ON WEDNESDAY, JULY 17th AS GOLF IS THURSDAY JULY 18TH - TEE OFF TIME 8:00 AM – SHOTGUN START AT GATLINBURG GOLF COURSE, PIGEON FORGE 520 DOLLYWOOD LANE 865-453-3912. 23
w w w. a l a b a m a i a d a . c o m
AL_0613.indd 23
JUNE/JULY 2013
AIADA
5/20/13 9:54 AM
A.I.A.D.A. FORMS
Designated agent#________________Dealer License#___________________ Residential _____Commercial Address_______ Dealership____________________________________________Contact______________________________Date_________ Address______________________________________________________City__________________St_____Zip__________ Phone_________________________Fax___________________Email_____________________________Member Yes No QTY DESCRIPTION MEMBER PRICE TOTAL NON MEMBER PRICE TOTAL _____ FTC Window Stickers Buyers Guide/2Part NCR paper $10.00 per 100 _______ $18.00 per 100 _______ _____ Spanish FTC Window Stickers Buyers Guide/2 Part/NCR $20.00 per 100
_______
$25.00 per 100
_______
_____ Title Supplemental Reassignment Forms (MVT 8-3)
$11.00 per 100
_______
$18.00 per 100
_______
_____FTC Buyers Guide Holders (Clear Plastic)
$
.75 each
_______
$ 1.00 per 100
_______
_____Odometer Forms/3 part/NCR paper
$12.00 per 100
_______
$20.00 per 100
_______
_____Odometer Disclosure Statement (Sales Transaction-NewCar) $12.00 per 100 ________ $20.00 per 100
_______
_____Secure Power of Attorney (MVT 8-4)
$18.00 per 100
_______
$20.00 per 100
_______
_____Secure Affidavit of Correction (MVT 5-7)
$18.00 per 100
_______
$26.00 per 100
_______
_____Authorization for Payoff/Demand for Title
$ 7.75 per 100
_______
$11.25 per 100
_______
_____Agreement & Acknowledgement of Good Will Service
$10.00 per 100
_______
$16.25 per 100
_______
_____Blank Bill of Sale with Disclaimer (2 Parts)
$18.50 per 100
_______
$24.00 per 100
_______
_____Vehicle Invoice Bill of Sale (3 Part)
$25.00 per 100
_______
$32.00 per 100
_______
_____Arbitration Agreements (2 Part NCR)
$25.00 per 100
_______
$32.00 per 100
_______
_____Credit Applications
$ 9.00 per 100
_______
$16.00 per 100
_______
_____Damaged Vehicle Disclosure Prior Body Repair
$ 9.00 per 100
_______
$15.00 per 100
_______
_____Warranty Disclaimers-AS IS (not for window display
$10.00 per 100
_______ $18.00 per 100
_______
_____Affidavit for Out of State Vehicles
$10.00 per 100
_______ $15.00 per 100
_______
_____Disclosure of Prior Use of Vehicle
$22.00 per 100
_______ $25.00 per 100
_______
_____No. 14 Inventory File Jackets (9 ½ X12)
$30.00 per 100
_______ $40.00 per 100
_______
_____General Power of Attorney (MVT 5-13)
$12.00 per 100
_______ $18.00 per 100
_______
_____UCC “Notice of Our Plan to Sell Property”(repossession)
$ 6.25 per 50
_____UCC “Explanation of Surplus or Deficiency (repossession) $ 6.25 per 50
_______ _______
$10.00 per 50
_______
$10.00 per 50
_______
_____Agreement to Provide Insurance /2 Part NCR
$20.00 per 100
_______
$28.00 per 100
_______
_____Test Drive Agreement-2 Part NCR
$16.00 per 100
_______
$23.00 per 100
_______
________
$350.00
________
_____Buy Here Pay Here Guide-170 pg book-Laws $250.00 & Regulations, Sample Letters prepared by John Galese/Association Attorney SHIPPING RATE CHART ON BACK VISA, MC, DISC, AMEX FORM ON BACK RESIDENTIAL CHARGES ON BACK
Sub Total _________ Sub Total __________ Shippimg & handling __________ Shipping & Handling ___________ SUB TOTAL __________ SUB TOTAL __________ 4% State Sales Tax __________ 4% State Sales Tax ___________ (only if business is in Jeff. Co) 6% Jeff. Co. Tax __________ 6% Jeff. Co. Tax ___________ (see chart on back for Residential Shipping Charge __________ Residential Shipping Chg __________ TOTAL __________ TOTAL __________
24
AIADA
AL_0613.indd 24
JUNE/JULY 2013
w w w. a l a b a m a i a d a . c o m
5/20/13 9:54 AM
WE ALSO HAVE A NABCO CATALOG YOU CAN ORDER PENDANTS, FLAGS, BANNER, KEY TAGS, DECAL, ETC. IF YOU WISH A CATALOG, CHECK THE YES BELOW. AS A MEMBER YOU WILL RECEIVE UP TO 25% DISCOUNT ON THESE ITEMS. Yes, I want a catalog ______ PLEASE US THE CHART BELOW TO DETERMINE THE AMOUNT FOR SHIPPING YOUR ORDER MEMBER SHIPPING & HANDLING CHART HANDLING CHART
NON MEMBER SHIPPING &
AMOUNT UP TO $25.00 $26.00 TO $50.00 $51.00 TO $100.00 $101.00 AND UP
AMOUNT UP TO $25.00 $26.00 TO $50.00 $51.00 TO $100.00 $101.00 AND UP
UPS $11.00 12.60 16.50 19.40
UPS $11.15 13.15 19.15 22.60
****CASES OF FORMS WILL BE WEIGHED AND CHARGED ACCORDINGLY. RESIDENTIAL SHIPPING CHARGES: →ADD $2.00 FOR RESIDENTIAL SHIPPING ADDRESS →ADD $2.50 FOR RURAL RESIDENTIAL SHIPPING ADDRESS →ADD $2.00 FOR RURAL COMMERCIAL SHIPPING ADDRESS
MAKE CHECKS PAYABLE TO A.I.A.D.A. , P O BOX 19627, BIRMINGHAM, AL 35219 * MEMBERS MAY FAX ORDER TO 205-942-3565 AND BE BILLED IF YOUR ACCOUNT IS IN GOOD STANDING. * NON MEMBERS CAN FAX ORDER IF CHARGED TO VISA, MASTERCARD, DISCOVER OR AMERICAN EXPRESS. NOTE: Orders received without proper sales tax and shipping charges cannot be processed. email address is judy@alabamaiada.com website is www.alabamaiada.com PLEASE FILL IN IF YOU WANT TO CHARGE ON YOUR VISA, MASTERCARD, DISCOVER OR AMEX: CREDIT CARD TYPE: MASTERCARD_____VISA_____DISCOVER_____AMEX_____ EXPIRATION DATE_______________________CVV#_______________(3 or 4 Digit Code on front or back of credit card) CARD # ___________________________________________________________________ CARD NAME:________________________________________________________________ ADDRESS FOR CARD_________________________________________________________ SIGNATURE:_________________________________________________________________ revised 12/14/2012 25
w w w. a l a b a m a i a d a . c o m
AL_0613.indd 25
JUNE/JULY 2013
AIADA
5/20/13 9:54 AM
WASHINGTON UPDATE
NIADA Government Report KEEPING YOU INFORMED WITH THE LATES T GOVERNMENTAL ISSUES AND ACTIVIT Y IN THE USED CAR INDUS TRY
Here’s a rundown of some of the latest governmental issues and activity affecting the used car industry from NIADA lobbyist Sante Esposito and NIADA regulatory counsel Shaun Petersen. LEGISLATIVE REPORT H.R. 749, Eliminate Privacy Notice Confusion Act This bill, known as H.R. 5817 when it was introduced by Rep. Blaine Luetkemeyer (R-Mo.) during the last Congress, was passed by the House without amendment on March 12 and has been referred to the Senate Committee on Banking, Housing and Urban Affairs to begin its journey through the Senate. The bill amends the Gramm-LeachBliley Act to exempt from its annual privacy policy notice requirement any financial institution that provides nonpublic personal information only in accordance with specified requirements, and has not changed its policies and practices with regard to disclosing nonpublic personal information from those noted in the most recent disclosure sent to consumers. On March 21, Sen. Sherrod Brown (D-Ohio) introduced companion bill S.635, the Privacy Notice Modernization Act of 2013, with 11 cosponsors, that bill was also referred to the Committee on Banking, Housing, and Urban Affairs. REGULATORY REPORT Consumer Financial Protection Bureau Rule on Administration of Civil Penalty Fund (CPF): The CFPB issued a final rule and proposed revisions to the rule governing the bureau’s CPF. The DoddFrank Act established the fund for the CFPB to deposit civil penalties collected in enforcement actions. The penalties collected are to be used for payments
to the victims of activities for which the penalty was imposed. In certain circumstances, the CFPB can use the funds for education and financial literacy programs. The fund cannot be used for general operating expenses. The CFPB said because the rule is “interpretative and procedural and relates to benefits,” it becomes effective when it is filed in the Federal Register. But the bureau also said it “believes public input on the final rule would be valuable,” so it is accepting comments, which are due within 60 days of publishing the rule in the Federal Register. Office of Financial Institutions and Business Liaison: The CFPB announced the creation of a new office to enhance communication and collaboration between bank and nonbank trade associations, businesses and financial institutions. Dan Smith, the former director for industry and state relations for Freddie Mac, has been named the assistant director in charge of the new office. Supreme Court Review: Though the CFPB is not a party to the case, the government has sought review by the Supreme Court of the decision in Noel Canning v. NLRB, in which the D.C. Circuit Court of Appeals declared the President’s appointments of members to the National Labor Relations Board to be unconstitutional because the Senate was in session. That is significant because Richard Cordray was appointed director of the CFPB at the same time the NLRB members were appointed. If the Supreme Court affirms the Canning decision, it could have impact on Cordray’s appointment.
In addition, taxpayers in the South and Midwest affected by a severe storm near the April 15 filing deadline can qualify for late payment penalty relief if they can show reasonable cause why they were unable to file their taxes by the deadline.
Internal Revenue Service Emergency extensions: The tax filing deadline for residents of Suffolk County, Mass., was extended by three months after the Boston Marathon bombing. Residents automatically receive the extension, and taxpayers outside Suffolk County whose tax preparer lives in Suffolk can also qualify for an extension by calling 1-866-562-5277. In addition, taxpayers in the South and Midwest affected by a severe storm near the April 15 filing deadline can qualify for late payment penalty relief if they can show reasonable cause why they were unable to file their taxes by the deadline. Taxpayers in the affected areas who receive penalty notices should contact the IRS. Department of Justice The Department of Justice brought charges against an individual in North Carolina for odometer tampering. The DOJ claims the defendant bought vehicles though online advertisements and replaced the odometers with odometers reading a lower mileage. One of the vehicles subject to the investigation is claimed to have been “rolled back” more than 100,000 miles. Pending State Legislation Ohio: HB 128 would amend portions of the salvage motor vehicle laws, specifically allowing the sale of salvage vehicles to persons other than motor vehicle salvage dealers. California: SB 686 would prohibit dealers from selling, renting, loaning or leasing for a term of less than four months any vehicle subject to an open safety recall. AB 964 would prohibit dealers from advertising a vehicle as certified if there is an open safety recall. The bill would also require dealers to provide a written disclosure document informing the consumer if any of nine specific facts exist, and would require dealers to conduct a vehicle inspection and provide an inspection report of the components inspected. AB 501 would change the definition of a tire broker to exclude a vehicle dealer or other retailer primarily engaged in the retail sale, service and installation of tires. Case Law Updates A California appeals court upheld a preprinted arbitration provision in a sales contract. The consumer claimed he had not read nor was he aware of the arbitration provision, thus making the provision unconscionable. The court rejected the claim, highlighting the fact that there was a provision, in all caps, above his signature that alerted him to the arbitration provision along with the fact that preprinted arbitration provisions are standard in the industry.
26
AIADA
AL_0613.indd 26
JUNE/JULY 2013
w w w. a l a b a m a i a d a . c o m
5/20/13 9:54 AM
AL_0613.indd 27
5/20/13 9:54 AM
AL_0613.indd 28
5/20/13 9:54 AM