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INDIANA

JUNE 2013

CAR LINES OFFICIAL VOICE OF THE INDEPENDENT CAR DEALER IN INDIANA

IIADA’S LEGISLATIVE CHAIRMAN, FRITZ KREUTZINGER, WAS INVITED TO THE SIGNING OF SENATE BILL 537

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AUCTION NEWS

Patty Stanley Honored as an Industry Leader INDIANA AUTO AUCTION CO-OWNER AND SERVNET PRESIDENT-ELECT NAMED TO AUTO REMARKETING’S LIST OF NOTABLE WOMEN IN REMARKETING

Patty Stanley, ServNet auction owner and ServNet’s president-elect, has been honored as one of the 2013 Women in Remarketing by Auto Remarketing, sponsored by Ally Auto Remarketing. The Women in Remarketing program honors women in a wide array of leadership positions in the industry and the community. Thirteen were honored this year. Stanley, co-owner of Indiana Auto Auction and Carolina Auto Auction, has been an outstanding contributor to the remarketing community and the auction industry for more than four decades. After working in the banking industry for 18 years, she and her husband, Henry Stanley, purchased Capital Auto Auction in Columbus, Ohio in 1969, and sold it to GE Credit in 1987. They purchased the Fort Knox Auto Auction in 1990, renaming it the Carolina Auto Auction. In 2007, the Stanleys purchased the Indiana Auto Auction in Fort Wayne. Patty manages the auctions’ office operations, focusing on streamlining processes and implementing best practices. A recent innovation is the

online department, which she created to build rapport and extend customer service to buyers and sellers who might never attend an auction in person. The department works to increase sales with online consignment as well as providing customers with online training, pre-sale information, transportation services and administrative support. Patty’s focus on customer service, consistency and operational excellence has shaped the success of both auctions, and both have been frequently cited for superior performance by the national remarketing community. Since 2005, Carolina Auto Auction has been named the nation’s top auction five times by BB&T and four times by FISERV/ RSA. In its first year of eligibility, Indiana Auto Auction placed second in RSA’s rankings in 2011 and was No. 1 last year. Carolina Auto Auction was named 2012 Auction of the Year by Donlen, as well as best auction in the region by ARI and top performer in customer service and operational excellence by FISERV. Patty has served as the NAAA’s Southern Zone president and as a member

of the association’s board of directors, and has chaired the convention committee multiple times. She is currently ServNet’s vice president and will begin a two-year term as president this year. Patty has displayed a commitment to building a strong future. She not only worked hard to establish the NAAA’s Warren G. Young Scholarship Foundation, but, with her husband Henry, founded two of its annual scholarships. She and Henry took the lead as executive sponsors of the newly-formed Auction Academy, which is designed to train the next generation of auction leaders. “Ours is an amazing industry, one that is built on strong relationships and a true feeling of family,” Patty Stanley said. “We have second and third generations coming through our industry now, and both Henry and I feel it is vital to donate both time and money as a way to give back to the industry.” Though Patty said the auctions are a 24/7 endeavor, she does enjoy her life outside of the business, especially golf, boating, traveling and spending time with her grandchildren.

COMPLIANCE CORNER

FTC Releases DotCom Disclosure Guidelines The FTC released revised dotcom 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/2013/03/130 312dotcomdisclosures.pdf.

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Nominate a Dealer for IIADA’s 2013 Quality Dealer of the Year

INSIDEu 06 08 10 12 16 22 Page 18

Washington Update CarLawyer® Data Speaks for Itself The Fountain of Youth Quality Processes for Quality Leads Associate Members

WHAT’S NEW

IIADA ANNIVERSARY GOLF TOURNAMENT

Sunday, September 9th Ironwood Golf Club Fishers, IN

ADVERTISERS INDEX ADESA........................... Inside Front Cover Ally........................................................13. Dyer Auto Auction...................................15 Indiana Auto Auction................................3 Kesler-Schaefer Auto Auction...................9 Manheim.com................ Inside Back Cover Manheim Indianapolis............................16. Manheim Pennsylvania.............................5 NextGear Capital......................................7 Protective..............................................11. United Acceptance.................................17. VAuto........................................Back Cover

IIADA OFFICE EXECUTIVE DIRECTOR • DEBBIE ANDERSEN P.O. BOX 1393 • CROWN POINT, IN 46308 PHONE: (800) 310-3112 NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION 2521 BROWN BLVD. ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 WWW.NIADA.COM • WWW.NIADA.TV FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR TROY@NIADA.COM. Car Lines is published 10 times per year by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone 817-6403838. 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 Car Lines 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. 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

Applications are now being accepted for Indiana’s 2013 Quality Dealer of the Year. The winner will represent Indiana at the NIADA 2014 Convention in Las Vegas and compete for the coveted NIADA Quality Dealer of the Year Award. The public recognition and prestige associated with the award will produce many benefits for your dealership. Our 2013 Indiana Quality Dealer of the Year will be named and recognized at our 26th Anniversary Golf Tournament and Awards Day on Sept. 8.

Eligibility: Dealers must be nominated by an IIADA member or sponsor.

APPLICATION DE ADLINE: JULY 1, 2013 To request an application, e-mail iiada@comcast.net or call 800.310.3112.

BOARD OF DIRECTORS ANDY ZAY President Zay Leasing & Rentals, Inc. 4957 N. Broadway Huntington, IN 46750 Phone: 260.356.1588 azay@sbcglobal.net FRITZ KREUTZINGER Chairman of the Board Legislative Chairman Fritz Associates P.O. Box 168 Fishers, IN 46038 317.842.2228 Fax:317.842.7900 fritzauto@aol.com TONY DEL REAL Vice President Del Real Automotive Group 1002 Walnut Avenue Frankfort, IN 46041 Phone: 765.446.9204 tdelreal@delrealauto.com BRUCE NORTON Treasurer Spireon GPS 1512 W. 96th Avenue Suite C Crown Point, IN 46307 Phone: 219.661.1000 bnorton@drive1usa.com SHARON BRENNAN Secretary Fritz in Fishers 8599 E. 116th Street Fishers, IN 46038 Phone: 317.842.2228 sharonb@fritzinfisher.com TRICIA TRENT Trent Auto Sales 1327 N 6th St. Vincennes, IN 47591 812.882.3772 Fax: 812.882.1986 ttrent01@yahoo.com

JENNIFER COTTON Dyer Auto Auction 219.865.2361 Fax: 219.322.1761 bcotton@dyerauction.com KIM GRAHAM Kim Graham, Inc. 1648 A US 31 S Greenwood, IN 46143 317.888.0100 Fax: 317.888.8900 k.motors@sbcglobal.net ED WHITE White’s Auto Sales 1105 McKinley Ave. Rensselaer, IN 47978 219.866.7553 Fax: 219.866.7256 edwhite123@att.net JOHN STUMPF Greater Kalamazoo Auto Auction P. O. Box 697 Schoolcraft, MI 49087 269.679.5021 jstumpf@kalamazooaa.com TONY HOUK Kesler-Schaefer Auto Auction, Inc. 5333 W. 46th Street Indianapolis, IN 46253 317.297.2300 Fax: 317.297.6236 skesler@ksaa1.com TYLER TRENT Trent Auto Sales 1327 N 6th St. Vincennes, IN 47591 812.882.3772 Fax: 812.882.1986 ttrent01@yahoo.com

TRAVIS HUBER The Auto Store 5474 US Hwy. 6, Suite A Portage, IN 46368 219-712.2944 travis@travishuber.com HAROLD DREES H.T.D., Inc. 200 E. Main Street Thorntown, IN 46071 317.402.2312 Fax: 765.436.7222 htdinc@msn.com DOUG ALVEY First Class Auto Sales, Inc. 695 W. 900S Hebron, IN 46341 219.996.2600 Fax: 219.531.4628 talvey65@yahoo.com ANDREW J. INABNITT Approval Auto Credit Inc. 9825 Huggin Hollow Rd. Martinsville, IN 46151 317.422.8001 Fax: 317.422.8020 joe@approvalautocredit.com DAVID D. BALDWIN II Best Deal Auto Sales, Inc. 1875 SR 8 Auburn, IN 46706 260.357.0099 Fax: 260.357.0090 dbthesecond@yahoo.com DEBBIE ANDERSEN Executive Director 128 S. East Street # 1393 Crown Point, IN 46308 800.310.3112 iiada@comcast.net

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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.

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LEGAL ISSUES

The CARLAWYER

©

C R A S H DATA R E T R I E VA L P R OV I D E S A C R U C I A L T O O L F O R T H E V E H I C L E R E M A R K E T I N G C O M M U N I T Y.

Here’s our monthly collection of selected legislative and regulatory highlights, and a recap of some of the many auto sale and financing lawsuits we follow each month. Remember, what we report here does not capture every recent development. We select those we think are important or interesting to car dealers. Note that this column does not offer legal advice. You should consult your dealership lawyer with any legal questions. We include items from other states. Why? We want you to be able to see new legal developments and trends. Also, another state’s laws might be a lot like your own state’s laws – if attorneys general or plaintiffs’ lawyers are pursuing particular types of claims, those laws and claims might soon appear in your state. As always, though, there is no substitute for checking with your own lawyer to learn how what we report might apply to you, or if you have any questions. FEDERAL LAW F&I income in peril? On March 21, the Consumer Financial Protection Bureau issued its long-awaited guidance about compliance with the fair lending requirements of the Equal Credit Opportunity Act and Regulation B for “indirect auto lenders” – that’s the CFPB’s inaccurate term to describe companies that buy retail installment contracts from dealers. The guidance, for the most part, applies to companies that permit dealers to increase consumer interest rates above the companies’ “buy rates” and that compensate dealers with a share of the increased interest revenues. The guidance, CFPB Bulletin 2013-02, applies to all “indirect auto lenders” within the jurisdiction of the CFPB, including both depository and nonbank institutions. The CFPB notes that a lender’s dealer markup and compensation policies can increase the risk of pricing disparities among consumers based on race, national origin and other prohibited bases. In order to ensure indirect auto lenders are operating in compliance with fair lending laws, the CFPB recommends those “lenders,” among other things, impose controls on dealer markups or

otherwise revise dealer markup policies, monitor and address the effects of markup policies as part of a robust fair lending compliance program, or eliminate dealer discretion to mark up buy rates and instead fairly compensate dealers using a different mechanism that does not result in discrimination, such as a flat fee per transaction. If you are involved in a rate participation program, you can expect to hear from your finance sources on this topic soon. Advertising on mobile devices? On March 12, the Federal Trade Commission released new guidance for mobile and other online advertisers that explains how to make advertising disclosures clear and conspicuous to avoid deception. The new FTC staff guidance, “.com Disclosures: How to Make Effective Disclosures in Digital Advertising,” updates prior guidance known as “Dot Com Disclosures,” released in 2000, in order to address the expanding use of smartphones with small screens and the rise of social media marketing. The new guidance provides information on how to make clear and conspicuous online advertising disclosures in order to prevent an online advertising claim from being deceptive or unfair. If your dealership or your salespeople are conducting business in a manner affected by this guidance, make sure you know what it requires. Perhaps it’s time to see your lawyer (again)? LITIGATION Publicly advertised auction that requires $1,000 refundable fee to enter and observe auction is a private sale under Maryland law: Under Maryland law, a creditor’s obligations after repossessing a vehicle depend on whether the vehicle is sold at a private sale or a public auction. Two individuals bought cars under retail installment contracts governed by the Maryland Credit Grantor Closed End Credit Act (CECA). When they defaulted on their contracts, the creditors repossessed the cars and sent them notices that their cars would be sold at public auction. Neither of the notices mentioned that any member of the public attending the sale was required to bring $1,000 to enter. The entrance fee would be refunded later or credited toward the price of any car bought at the auction. One of

the individuals tried to attend the auction but was turned away because she did not have the entrance fee. After the sale of the cars, the creditors sent the individuals notices of their deficiency balances. In response, the individuals sued, alleging violation of the Maryland CECA for attempting to collect a deficiency after a private sale. The trial court granted summary judgment for the creditors. The appellate court determined that the deciding issue in the case was whether an auction that is publicly advertised, but requires a $1,000 refundable fee for a person to enter and observe the auction, regardless of whether the person intends to bid, is a private sale or a public auction under the Maryland CECA and certified the question of law to the Maryland Court of Appeals. That court held that the sale was a private sale because anyone wishing to attend the auction would have to accumulate and part with, at least temporarily, $1,000. As a result, the $1,000 admission fee “shielded” the sale from the public view. See Gardner v. Ally Financial Incorporated, 2013 Md. LEXIS 138 (Md. March 1, 2013). Odometer law exemption for cars more than 10 years old at the time of sale is not applicable to tampering provisions: An individual bought a car from a dealer based on an ad on the dealer’s website stating the car’s mileage was 56,537. After leaving the dealership, the individual discovered the odometer was stuck at that mileage and tried to return the car for a refund. When the dealership refused, the individual sued, alleging the dealership violated the federal odometer law. First, the individual claimed the dealership’s false disclosure of the mileage of the car violated the odometer law. In its defense, the dealership argued that since the car was more than 10 years old at the time of sale, it was exempt from the disclosure provisions of the odometer law. The court agreed and dismissed the claim, citing an express exemption in the federal regulations. Second, the individual claimed the dealership had tampered with the odometer of the car with the intent to defraud him, in violation of the odometer law. The court held that the exemption for cars more than 10 years old at the time of sale applied only to the disclosure provisions of the odometer law and not to C O N T I N U E D O N N E X T PA G E

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LEGAL ISSUES the tampering provisions, and denied the motion to dismiss the tampering claims. See Beam v. Domani Motor Cars, Inc., 2013 U.S. Dist. LEXIS 18085 (S.D. Fla. February 11, 2013). Revocation of acceptance claim failed where contract limited buyer’s remedy: After individuals discovered defects with their new motor coach, they complained to the seller and the coach’s manufacturer. After many repair attempts, the defects still existed. The individuals sued for, among other things, revocation of acceptance. The seller moved to dismiss, arguing that a limitation of damages clause in the sale agreement barred the revocation of acceptance claim. That clause provided that once the buyer accepted the coach, the buyer could not return it for a refund, even if the manufacturer’s warranty does not accomplish its purpose. The clause also limited the buyer’s damages to the lesser of either the cost of needed repairs or a reduction in the market value of the coach caused by the lack of repairs. The court dismissed the revocation of acceptance claim against the seller.

The individuals argued that, under the Uniform Commercial Code, revocation of acceptance may be an available remedy even if the seller has attempted to limit the buyer’s remedies, if the “exclusion or limitation of remedy fails of its essential purpose.” Because the individuals did not allege that the remedy offered by the seller failed of its essential purpose, the court found that the individuals were limited to the contractual remedy against the seller. See Watkins v. Camping World, Inc., 2013 U.S. Dist. LEXIS 15974 (N.D. Ga. February 5, 2013). So there’s this month’s roundup! Stay legal, and we’ll see you next month.

BY THOMAS B. HUDSON AND NICOLE FRUSH MUNRO TOM (THUDSON@HUDCO.COM) AND NIKKI (NMUNRO@HUDCO. COM) ARE PARTNERS IN THE LAW FIRM OF HUDSON COOK, LLC. TOM IS THE AUTHOR OF SEVERAL BOOKS, AVAILABLE AT WWW. COUNSELORLIBRARY.COM. TOM IS ALSO THE PUBLISHER OF SPOT DELIVERY®, A MONTHLY LEGAL NEWSLETTER FOR AUTO DEALERS, AND THE EDITOR IN CHIEF OF CARLAW®, A MONTHLY REPORT OF LEGAL DEVELOPMENTS IN ALL STATES FOR THE AUTO FINANCE AND LEASING INDUSTRY. NIKKI IS A CONTRIBUTING AUTHOR TO THE F&I LEGAL DESK BOOK AND FREQUENTLY WRITES FOR SPOT DELIVERY. SPOT DELIVERY, CARLAW AND THE BOOKS ARE PRODUCED BY COUNSELORLIBRARY.COM LLC. FOR INFORMATION, CALL 410-865-5411 OR VISIT WWW. COUNSELORLIBRARY.COM. COPYRIGHT COUNSELORLIBRARY. COM 2013, ALL RIGHTS RESERVED. SINGLE PUBLICATION RIGHTS ONLY, TO THE ASSOCIATION. (4/13) HC# 4816-3739-9315.

NIADA Committee Recommends Bylaw Change The NIADA executive committee has recommended an addition to the bylaws in Article VI, Section 6: Meetings. The section would read (addition in bold): The NIADA Board of Directors Annual Meeting and Convention Meeting shall be held at the location of NIADA’s Annual National Convention, if one is held. The Midterm Meeting and any special meetings, and annual meeting not held in conjunction of with NIADA’s Annual National Convention (due to no such convention being held) may be held at any location chosen by the NIADA Board of Directors or Executive Committee. In its sole discretion, the Board of Directors or Executive Committee may determine that such meetings except for the Annual Meeting may be held solely by means of remote communication in accordance with 8 Del. C. § 211, as amended. This addition to the NIADA bylaws will allow for more dealer participation in the business of the NIADA board of directors. The proposed amendment will be placed on the agenda and voted on at the board of directors meeting at the NIADA Annual Convention on June 25.

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COVER STORY

Data Speaks for Itself

C R A S H DATA R E T R I E VA L P R OV I D E S A C R U C I A L T O O L F O R T H E V E H I C L E R E M A R K E T I N G C O M M U N I T Y.

Crash data retrieval (CDR) is a proven tool that allows users the ability to image a vehicle’s airbag control module (ACM) and evaluate any “events” that might have been recorded. Those “events” include a list of data parameters that allow the user to determine if the vehicle has been in a crash or incurred some type of force to record data. The data can be used to make informed decisions on the quality and structural integrity of a vehicle being purchased or sold. All that is interesting. But what exactly is CDR? Most vehicles that have an airbag also have event data recorder (EDR) functionality. There is already an EDR in most production vehicles today. It is not something you need to install and is not an aftermarket product.

ARC-CSI Crash Conference: Visit www.arccsi.com to watch a video by Insurance Claims TV, filmed at the annual ARC-CSI Crash Conference in Las Vegas, showing real-world crash testing and data collection using the Crash Data Retrieval tool.

More than 115 million registered vehicles on the road today can be accessed and imaged using the Bosch CDR tool. Simply connect the CDR tool to the universal data port (diagnostic link connector or DLC) of the vehicle and run the CDR software program. The CDR tool then images any data stored and creates a PDF report of the findings. It’s the same tool used by auto manufacturers – the CDR tool currently supports select General Motors, Ford, Chrysler, Toyota/Lexus, Honda, Mazda, Suzuki, Fiat, Volvo and BMW vehicles. And thanks to a ruling by the National Highway Transportation Safety Administration, many more manufacturers are expected to be supported before long. In August 2006, the NHTSA published a final rule specifying uniform requirements for the accuracy, collection, storage, survivability and retrievability of onboard crash event data in passenger cars and other light vehicles equipped with EDRs.

The final rule was intended to standardize the data collected through EDRs so it could be put to the most effective future use. Vehicles manufactured on or after Sept. 1, 2012, that are equipped with an EDR and manufacturers of those vehicles must comply with the rule. Vehicles that are manufactured in two or more stages or are altered are not required to comply with the rule until Sept. 1, 2013. The airbag control module is where most EDR data is stored. However, EDR data or crash data can also be stored in the powertrain control module (PCM) or the rollover sensor module (ROS). The primary job of the ACM, PCM and ROS is to detect sudden changes in direction and/or rotation and, when appropriate, deploy restraint devices like airbags. The ACM and other modules use certain bits of information, including those from crash-sensing systems, seat beltrelated sensors and occupant detection systems, to decide whether and when to deploy airbags and other restraint system devices. When certain conditions are met, those modules can record the data associated with the sudden changes in direction and/ or rotation in a crash, which can later be imaged by the CDR tool. Data available to be collected depends on the year, make and model of the involved vehicle. The CDR tool is used by law enforcement, insurance companies, collision reconstructionists, fleet managers, auto manufacturers and government researchers. The next logical question is: How does the auto remarketer benefit from using the technology? Auto remarketers need to gather all the pertinent information available in their evaluation of the vehicles they are considering for purchase or resale. The CDR tool provides an easy way to determine if there are any existing events stored in the vehicle, providing greater confidence for the buyer and seller. It can also help determine if some repairs were performed correctly. “In today’s digital age, it is best to let the data speak for itself and not rely solely on seller statements, assumed to be true,” Crash Data Group president Scott Baker said. “This tool will help make quick, accurate, decisions on the vehicle in question.” For example, a vehicle owner presents a vehicle for sale and says it was in a crash and the airbags deployed, but the vehicle

has been repaired and the airbags replaced. Using the CDR tool, the vehicle can be imaged. If the report shows a “deployment event,” it means while the airbags were reported to be replaced, the airbag control module was not and is locked. And that means the airbags will not deploy again. If that is the case, you have to question whether the airbags were actually replaced or if there is just an empty reservoir. We have all heard stories of airbags that really weren’t replaced. In addition, since the data is still there the report will also show information such as how fast the vehicle was going prior to impact and the severity of the crash. You might even be able to assess potential frame damage. Of course, if you image the vehicle and there are no events and everything checks out fine, you’ll have greater confidence that a lawsuit won’t come back to haunt you. Diagnostic Link Connector

Auto remarketers depend heavily on sellers to verify damage-free vehicles at end of lease or for sale. To properly investigate and assess potential damage to a vehicle, the buyer needs to have the peace of mind that the vehicle was not involved in an accident. It also provides a great service to the remarketer and ultimate end buyer, who depend on a fair assessment of the vehicle’s history to avoid significant loss. “Industry adoption of the technology will be critical as we move further into the digital future of vehicle due diligence,” Baker said. “CDR technology is here to stay, and vehicle remarketers should be aware that the technology will help them achieve their goals while maintaining a higher level of integrity.” For more information about CDR, call Crash Data Group at 1-800-280-7940 or visit www.cdr-system.com.

BY CLIFFORD J. SMITH

CLIFFORD J. SMITH IS CDR NATIONAL SALES AND EDUCATION DIRECTOR FOR CRASH DATA GROUP, THE EXCLUSIVE DISTRIBUTOR OF THE BOSCH CRASH DATA RETRIEVAL PRODUCT LINE IN THE UNITED STATES. HE CAN BE REACHED AT CSMITH@ CRASHDATAGROUP.COM OR 1-800-280-7940, EXT.105.

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MARKETING MATTERS

The Fountain of Youth 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

Over the past few years, there’s been a profound change in the way people communicate. With the advent of easy-to-use personal computers, smartphones, tablets and laptops, people now get their news differently. The “millennial” generation, which came of age during this time of communication change, has been most affected. They keep in touch with their friends differently. And they shop for cars differently. So the question for dealers is how to reach out to that new generation and sell them cars. A Growing Market Millennial buyers represent 15 percent of the market, and rising. Ignore them at your peril. Jon Osborn, research director for J.D. Power and Associates, said millennial buyers – those between the ages of 18 and 35 – are entering the prime carbuying age range. And in one way they’re not that different from buyers in the same age range 20 years ago. “They’re similar in that buying a car is a big purchase for them in terms of money,” Osborn said. “It might be the biggest purchase they’ve made in their lives up to that time. “What’s different is that the millennials grew up in the digital age. Now everyone uses computers or tablets or smartphones.” Sure it’s basic, but dealers sometimes forget that to get the attention of millennial buyers, dealers must have an Internet presence. That means having a website and an app for smartphones, as well as being on third-party sites like AutoTrader.com or Cars.com. In fact, just having a website is no longer enough. An increasing number of people – especially young people – are accessing the web with a mobile device rather than a computer. Looking up information on a web page using a tablet or a smartphone is different than using a computer. The computer screen is bigger and web pages tend to be designed to take advantage of that size. To reach smartphone or tablet users, dealers might think of creating an app or a mobile site designed to fit on smartphones and tablets. “If you create a mobile site, remember people will expect the same

kind of information you have on your website,” Osborn said. “So how people use the Internet has to be taken into consideration when designing pages. Dealers should be using the same technology as consumers. Having a tablet helps dealers, too.” Tablets are portable and can be used to look up information while a salesperson is with a customer at a car. Now the salesperson doesn’t have to keep walking back to the showroom to look up information. The younger generation is used to shopping and buying with the click of a button, Osborn said. They don’t believe buying a car should be different than any other kind of shopping. And they want the experience to be fun. Osborn noted it’s important to provide buyers with as much information as possible up front, so customers won’t have to spend five hours in a dealership learning about F&I options. What They’re Looking For Despite numerous reports to the contrary, yes, young people are buying cars, said Scott Painter, CEO and founder of TrueCar. But if you want to sell them one, you’ll have to do it on their terms. “They are buying cars,” Painter said, “but they are doing it differently. There’s been a definite shift with millennial buyers. And it’s different from 20 years ago. Millennials are rewriting the rules. What used to work even as recently as five years ago, doesn’t work now.” Dealers looking to sell to millennials have to recognize certain truths, Painter said. First, shoppers are used to getting a lot of information and want to be in control of the sales process. That’s very different from the way dealers used to operate. In the old days, some dealers hesitated even to give the price of a vehicle. Instead, they would talk about payments and schedules. That tactic doesn’t work anymore. “Today’s millennial buyers have access to information and expect the cars they buy to work,” Painter said. “A ‘lemon’ of a car is something they see in old movies.” That means dealers have to buy vehicles that will “intrigue” the millennial buyer, Painter said. Reliability is just assumed, so it’s not much of selling point anymore. Dealers looking to sell to younger buyers have to pay attention to

things like design. And that isn’t all that’s changed. Conventional wisdom used to be that buyers entered the car market 30 to 60 days before entering a dealership’s showroom. Because buyers now are more social over the Internet, they might start asking advice or reading blogs up to a year before they hit a dealership. “When we launched Cars Direct in 1998,” Painter said, “only five percent of consumers were using the Internet to help buy a car. That meant when someone did go on the Internet, they were definitely in the market. Now everyone looks at cars online, and a lot of people just do it for fun. Visiting a site doesn’t mean someone is in the market for a car at that particular moment.” Still, there are ways dealers can tell if someone visiting their website is serious about buying a car now, Painter said. The first is if that person asks about financing. The second is if that person has totaled his car in an accident – usually that person has an insurance check and needs to buy right away. A third is if the person checking the site starts asking questions about price instead of features and product information. “Millennial buyers want to know prices before they will show up at your lot,” Painter said. “But when they visit your store, they are much more likely to buy. They’ve done their homework and like what they saw on their smartphone or tablet or computer.” The fear of millennial buyers is that they will get ripped off by a slick dealer. So dealers must be up front about their prices without giving away the store, Painter said. “You have to have a competitive price for your vehicles, but dealers also have to be able to make money,” Painter said. “That means dealers must believe in data. Data is what differentiates one used vehicle from another. If a dealer can show, through data, why one Chevy Tahoe costs $500 more than another, that assures the customer. The motto of the millennial buyer is, ‘In data we trust.’ ” Painter said his company quantifies how many of a particular model are for sale. TrueCar goes online, finds all the data on Tahoes for sale and finds out what the mileage ranges and prices are. Now the dealer can demonstrate with data collected by a neutral party what the price range of a particular vehicle is. The C O N T I N U E D O N PA G E 1 4

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C O N T I N U E D F R O M PA G E 1 2

customer sees he is being treated fairly and feels better about the sale. Painter warned dealers, though, that having national pricing information shouldn’t be a race to the bottom. Dealers have to make money, and constantly undercutting each other’s prices means no one can make money. “We used to have an ‘easy’ button on our pages,” Painter said. “Dealers used it to get the lowest prices so they could price lower. No one was making money so we disabled it. But through that process we learned buyers aren’t looking for the absolute lowest prices. They just want a fair deal. By showing data transparently, you don’t have to give away the store.” The trick, Painter said, is to engage the millennial buyer with transparent data to earn trust. Once a dealer earns trust, making a sale becomes much easier. Socializing Social media can be a tool for marketing and not just a place to write about what you had for dinner. “Today’s buyer visits all the pages,” Osborn explained. “They are very big on things like ratings and reviews. They are big on referrals. “Millennials are often first-time buyers and are nervous about buying a car, so word of mouth is very important, and that’s outside a dealer’s advertising plan. So dealers should try to subtly encourage people who enjoyed buying a car from their lot to share their experiences on their Facebook page or to write a review on a site like Yelp.” Rand Stone, sales manager of Next Gen Motors in Clear Lake, Wis., said his dealership just started its own Facebook page. “We finally decided it was a tool that could be used for marketing,” Stone said. “I don’t know if I can say someone bought a car here as a direct result of something they saw on Facebook, but it’s exposure and telling people who you are.” Stone believes Facebook is part of a conversation that gives young people the sense they have their own dealership. He is not afraid of social media and what people will say about the business. “There are always people who want to tear you down,” Stone said. “On the Internet they are known as trolls. But I am confident that our customers are smart enough sift through the nonsense and see what are genuine reviews and what are not.” Robert Stewart, co-owner of Stewart Auto Group in Pataskala, Ohio, has some advice for dealers: Don’t be afraid of social media. Embrace it. Use it and encourage employees to use it.

Stewart and his brother and father, both named Don, operate two usedcar lots. In addition, Stewart is owner of Social Media Chapter.com, which specializes in helping car dealerships and other small businesses use social media. “Social media is not just Facebook,” Stewart said. “If you’re going to use social media you have to have people on hand to respond to comments. That’s where we come in.” What’s important to remember, Stewart said, is that social media is active and interactive. It’s a conversation using new technology. So if someone comments about your dealership on Facebook or another site, you have to be ready to engage in a conversation. And if you’re using social media to reach out to people, make sure your staff knows what you’re saying. It does no one any good to promise a $15.99 oil change on Facebook and not tell the sales staff. If they don’t know about something, they can’t answer questions about the promotion, such as whether it applies to synthetic oil. “The biggest problem I see with dealers is that they don’t use social media themselves and actually see it as a distraction,” Stewart said. “They don’t see it as a tool. So they won’t let salespeople visit their Facebook page or make tweets during business hours.” That’s a mistake, Stewart said. As long as salespeople are following some simple rules, being on a social media site during the day can pay off. “I say let them go on their social media page,” Stewart said. “As long as they list where they work and what they do, they should be allowed to communicate with people. If someone is looking for a car and is ‘friends’ with a salesperson, that salesperson’s social media page can be very helpful.” Of course, salespeople must realize their pages are a business tool as well as a personal page, so they shouldn’t post anything that would reflect badly on the dealership. “Dealers tell me they worry about that,” Stewart said. “I say if they don’t trust the judgment of their staff, then maybe those people shouldn’t be working for them. I also point out that when someone walks into a showroom, usually they find half the sales staff just sitting around.” Those people could, instead, be online looking for leads. Stewart said dealers have to realize that while many social media sites are available to users at little to no cost, using social media isn’t free. Someone has to update the pages, read the comments and generally stay on top of things. That person should have some expertise in social media, and dealers should expect to pay for that expertise.

“The biggest mistake I see is that dealers aren’t everywhere that matters,” Stewart said. “Everywhere includes the Internet, but it also includes print and radio and billboards and fliers. Dealers need to create an omnipresence. “The biggest mistake I see is that dealers aren’t everywhere that matters,” Stewart said. “Everywhere includes the Internet, but it also includes print and radio and billboards and fliers. Dealers need to create an omnipresence. “Social media isn’t just Facebook, either. There’s Google listings, Yahoo listings, Bing. These are the new yellow pages and dealers need to understand how they work.” For example, Stewart said, it’s possible to give a verbal command to a smartphone asking to find a local car dealership. If the dealer is listed right on the search engine and the consumer has the right map app, directions to the dealership will pop right up. “You must register your business with search engines,” Stewart said. “And don’t be afraid of technology. It’s now possible for people with webcams to converse via the Internet. Looking at someone while you’re talking to them is very effective and builds trust. So check out Skype or Google Live Chat.” Ultimately, a dealer must lead from the front. If the dealership’s owner doesn’t use or understand social media, it can discourage his employees from using it. And that can ultimately cost him when it comes to attracting young buyers. Millennials Have Arrived The millennial generation is here, and technology is its language. Young buyers expect information, and they have more ways to get it than ever before. To turn those young consumers into buyers, dealers have to make that work for them. Provide the information they want on all platforms, become a part of the conversation – give those potential buyers a reason to trust you. The millennials are just beginning to get into the market, and they’re bringing their smartphones and Facebook pages with them. Dealerships that fail to embrace technology risk missing out on tools that will help them reach out to that growing category of consumers who came of age in the digital era.

BY JIM STICKFORD

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LEGAL UPDATE

CPO Sales Are Up

CONSUMERS RESPOND TO RELIABILIT Y AND E XTENDED WARRANTIES

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. 15

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MARKETING MATTERS

A Case Study for Success

THE KEY The first key to effectively winning online customers is to tempt them into your online showroom.

WHEN LOOKING AT QUALIT Y OF LEADS, DEALERS NEED TO FIRS T LOOK AT THE QUALIT Y OF THEIR PROCESSES TO HANDLE THEM

One look around today’s automotive retail marketplace reveals some fascinating changes that have taken place over the last five to seven years. There are fewer franchise dealerships, and some former franchises have transitioned to become independent dealers. Consumers are more educated than ever, conducting hours of research online before ever stepping into a dealership. More consumers are keeping the vehicles longer, which is contributing to greater competition for pre-owned vehicles in many markets. So how do you compete? For independent dealers, the Internet is the ultimate equalizer to compete with larger franchise dealers. So having a strategic plan for how you showcase vehicles, connect with consumers and uncover more sales opportunities needs to be top priority. Where you showcase your vehicles is just as important as how. That can be a confusing decision as you look at various third-party sites and advertisers. Most dealers have embraced the concept of generating exposure and interest on the Internet via solo third-party car-shopping sites and larger third-party network sites, or even driving traffic to their own websites via SEO and SEM programs.

All of those achieve the goal of generating leads. But when it comes to really “working” the leads, they fall short. A 2013 Pied Piper Management study discovered dealers are doing a better, more effective job of handling Internet leads, but there is still more to be done. According to the study, mishandling a lead happens when dealerships send generic responses to customers via email that do not answer their specific questions. Another issue is dealers being understaffed, making it difficult to get back to online customers quickly. Not responding is a major snub to your customer. As more car shoppers become online shoppers, the study shows dealerships with effective strategies to respond quickly and send personalized responses that answer customers’ specific inquiries ultimately sell more cars – well, duh! While it’s easy to say, “Respond better and answer questions faster,” the reality is it’s not that simple to attract online shoppers and entice them to complete the contact forms on various websites, including your own. Winning more online customers actually begins much earlier in the sales and marketing process. When done effectively, using the Internet not only helps you compete,

it can actually become the core of your business. Case Study: How Internet Leads Help a Pennsylvania Dealership Succeed in Today’s Market Devy Auto Park is a fixture in its Freeport, Pa., community. Since opening in 1923 – it moved to its present location in 1953 – Devy Auto Park has seen its share of evolution and revolution in the automotive retail industry. To compete in 2013, Devy Auto Park transformed from a longtime Chevy franchise dealership to a premier independent dealership. Most of Devy’s customers are Internet-based, and many travel from several hours away to do business with the dealership. A few key strategies have helped Devy attract and retain so many online customers, particularly those who see the value in traveling to buy a car from Devy. Best practice 1: Effective online merchandising. Imagine your physical showroom. Attractive, well-placed vehicles tempt shoppers to stop in, have a look and “kick the tires.” Now imagine your online showroom. The first key to effectively winning online customers is to tempt them into your online showroom. Plenty of photographs, sizzling descriptions and virtual tours all mimic a physical showroom and go a long way toward attracting customers. But your physical showroom doesn’t stand on its own. You advertise in a variety of media to let potential customers know not only what vehicles you have, but where they can find you and how they can contact you. The same approach applies to your online showroom. Effective online merchandising is definitely about having a great website to showcase your vehicles, but it’s equally important to draw customers from a strategic online marketing mix that includes a variety of third-party websites. Today’s online shoppers spend a significant amount of time researching to find the perfect vehicle across many websites. Shoppers’ searches are rather organic, looking at dozens of vehicles, arriving at dealers’ websites and then sorting through the vehicles there. Great merchandising on both your website and your third-party sites is absolutely critical. Best practice 2: Great vehicles backed up with a warranty and vehicle history report. Whereas traditional car shoppers can literally kick the tires in your physical showroom, online customers don’t have that same luxury. But the advice is the same for both groups of shoppers. Dealerships should work hard to recondition vehicles really well, warranty them and provide vehicle history reports. The vehicle history report actually benefits both the customer and the dealership. Online shoppers are savvy enough to demand the C O N T I N U E D O N N E X T PA G E

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reports. They want the opportunity to know whether the vehicle is right for them or not. And by providing the reports up front, the dealership saves a lot of time on the back end. That is, the dealership’s Internet manager would devote a lot of time to answering inquiries that can be resolved with a history report. Additionally, the reports can boost the confidence in and the credibility of the vehicle and your dealership. Best practice 3: Establish a process for responding to and following up with customers. Anyone who’s coaching you on handling Internet leads will tell you to respond to customer inquiries quickly. What’s more important than a quick response, however, is the quality of the response. The Pied Piper researchers used mystery shoppers to measure how quickly and how well Internet managers responded to customer inquiries. The mystery shoppers provided a phone number and asked a question about a vehicle, then waited. For the purposes of the study, it wasn’t enough to receive a generic auto-response. Researchers would “only stop the clock if [the dealerships] answer our question or send a second response,” Pied Piper president Fran O’Hagen explained. Devy Auto Park takes that level of response one step further. All Internet leads go into the dealership’s customer relationship management (CRM) tool, which generates automatic but customizable email responses

for customer inquiries. Devy can customize the email responder with the customer’s name, and the CRM will populate vehicle information, such as which vehicle the customer asked about and whether it’s still available. If a customer asks a specific question, Devy employees answer it in the first paragraph of the email. After that, the email tells the Devy story and asks for an appointment. Devy’s CRM lets managers track email responses, ensuring effective follow up as well as open rates. It’s an interesting twist that helps the dealership be more effective at responding to and following up with customers. The CRM also reminds Devy salespeople to continue to follow up with the customer. For Devy, that means daily attempts for the first four days after receiving the lead, then again on day seven, 14, and 30. The automatic reminders are integrated into the dealership’s process, and lead to 100 percent response rates from Devy employees to Internet leads. Do you respond by phone or email? There’s really no right answer. Devy’s online form asks customers to indicate a preference for contact method, but if there’s no response through one channel, they’ll try the other option. An additional benefit to relying on a CRM is the ability to track where leads come from. That is, if you’re merchandising your vehicles through a variety of third-party websites, you want to know if those investments are paying off. Which site delivers the most leads? Which sites offer the most exposure? What’s the

cost per lead? Cost per sale? Third-party websites have a range of pricing structures and CRM analysis lets dealers like Devy Auto Park determine which sites offer the most exposure for the lowest cost per lead/sale so they can devote their marketing expenses profitably. Effective Merchandising, High-Quality Vehicles and Tried-and-True Customer Responses Get Results According to Pied Piper’s O’Hagen, “Dealers who handle Internet leads effectively sell a lot more vehicles than dealers who do not.” Getting good, quality Internet leads is important, but how the dealership’s staff responds to and engages customers is more important. Effective merchandising, highquality vehicles and tried-and true customer response processes are critical to handling leads effectively and ultimately winning more customers. Finding the right partner to showcase your vehicles is really a matter of ROI. Look for partners who understand your local market and can provide you with the most exposure for the best price. But also look for the right partner who knows what it means to be a “partner” – someone who will work to help you with your follow-up strategy and help you sell more cars.

BY KIM JENNETT AND STEVE DEVEREAUX

KIM JENNETT IS AN AWARD WINNING CREATIVE DIRECTOR AND DIRECTOR OF MARKETING AND BRAND STRATEGY FOR DEALIX, A DIVISION OF ADP DEALER SERVICES. SHE CAN BE REACHED AT KIM.JENNETT@ADP.COM OR 408-375-4758. STEVE DEVEREAUX, VICE PRESIDENT OF SALES FOR DEVY AUTO PARK, CAN BE REACHED AT (724) 295-2171.

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Join Us

for our 2013 IIADA G

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

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don’t miss out! Please register early to reserve your place!

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SEND ENTRY FEE TO: IIADA • P.O. BOX 1393 • CROWN POINT, IN 46308 • FAX REGISTRATION – CREDIT CARD ONLY TO: 219.663.5294 18

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IRONWOOD GOLF CLUB • 10955 FALL ROAD • FISHERS, IN

A Golf Tournament-Awards Day-Trade Show

Excellent sponsorship opportunities are available for our 25th Anniversary Golf Tournament-Awards Day-Trade Show event, Sept. 9, 2013 at Ironwood Golf Club in Fishers. Market your company and support the Indiana Independent Automobile Dealers Association All sponsors will be recognized at the tournament, on our website (iiada.com) and in our Car Lines publication CALL 800.310.3112 OR EMAIL IIADA@COMCAST.NET FOR DETAILS

Sponsor Exclusive Opportunity Platinum –

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$3,000 Includes

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

_____Platinum $3,000 _____Diamond $2,000 _____Gold $1,500 _____Silver $600 _____Bronze $300 _____Total Payment by ______ Check ______ Visa ______ MasterCard ______ Credit Card Number_________________________________________________________________________ Expiration Date __________________________________ Contact Name:______________________________________________________________________________ Organizational Name:______________________________ Address:_____________________________________________________________________________________________________________________________________ City_____________________________________________________________________State___________________

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Phone __________________________________________________________________Signature____________________________________________________________ PLEASE SEND OR FAX TO: IIADA • P.O. BOX 1393 • CROWN POINT, IN 46308 • PHONE: 800.310.3112 • FAX: 219.663.5294 19

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The The IIADA IIADA Has Has the the Independent Independent Auto Auto Dealer Dealer Covered! Covered!

Indiana Independent Automobile Dealers Association

For an annual membership investment of only $275,

which includes an NIADA membership, you get a $2,500 Auto Auction Coupon Book and a whole lot more!

IIADA • PO Box 1393 • Crown Point, IN 46308 Phone: (800)310-3112 • Fax: (219)663-5294 iiada@comcast.net

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

It is important to me to be recognized as a professional! Enclosed are my annual dues of $275 to make sure that my business has all the advantages IIADA/NIADA Inc., provides to put me at the forefront of my profession. By completing this form, I agree to abide by the Code of Ethics. Also, I am consenting to and giving IIADA/NIADA Inc., its affiliates and subsidiaries, my permission to (until I give written notice to discontinue) contact me and provide information to me at the mailing and email addresses, telephone and fax number(s) I have provided. Dealership Name ____________________________________ Dealer Lic#________________________________________ Mail Address ____________________________________________________________________________________________ County ____________________________________________City/State/Zip_______________________________________ Phone _____________________________________________Fax __________________________________________________ E-mail____________________________________________________________________________________________________ Website__________________________________________________________________________________________________ Owners (Please Print) ___________________________________________________________________________________ Recommended By _______________________________________________________________________________________ Payment by: Check Visa MasterCard Credit Card Number: ______________________________Expiration Date: __________________________________ Signature: _______________________________________________________________________________________________ Please include your email address, phone and fax numbers so that we can easily communicate with you. Membership dues are $275.00 for 12 months from the date you join, and your National lADA dues are included. Please send application and check or credit card information to: IIADA, PO Box 1393,Crown Point, IN 46308 Note: 25% of dues are non-deductible 20

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STOP SENATE BILL 194!

Senate Bill 194 would permit consumers who purchase a used motor vehicle from a dealer to rescind the purchase within 72 hours.

SUPPORT IIADA! We are your voice in Indianapolis.

For $275 You Get Membership In Both IIADA and NIADA

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

Programs for Extra Profit

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

Publications

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

Professional Development

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

Representation

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

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ASSOCIATE MEMBERS

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

Absolute Surety, LLC Blair Ashton PO Box 547898 Orlando, FL 32854 855-689-5106 Fax: 407-674-7978 bashton@absolutesurety.com absolutesurety.com Affordable Computer Systems Ivan Dale 800-488-9992 acsi@digicove.com www.acsds.com AFC Ryan Lewis 2950 E. Main St. Plainfield, IN 46168 317-453-1172 ryan.lewis@autofinance.com

Carsforsale.com Aaron Oestreich PO Box 91537 Sioux Falls, SD 57109 605-306-3302 aaron@carsforsale.com carsforsale.com Chase Auto Finance Mike Smith/Don Williams 1 E. Ohio, Ste. INI-0126 Indianapolis, IN 46277 317-523-4273 Clear Gate Merchant Services Lorraine Onesian 776-336-6880 lorraine.o@cleargate.com www.cleargate.com

Ally-Smart Auction Jeff Kubicki 812-455-7967 jeffrey.kubicki@ally.com www.smartauction.biz

Consumers Insurance Mike Hogan 7830 Edge Manor Ct. Indianapolis, IN 46239 317-450-9946 Fax: 615-896-0766 mhogan@ciusa.com

Auction Insurance/ Robinson Adams Insurance Tom Adams/Debbie Thompson 800-239-1327 www.robinsonadams.com

CVR-Computerized Vehicle Registration Jordan Vaughn 636-447-8351 Fax: 800-464-9342 jvaughn@cvrreg.com

Auto Services Co. Inc. Susan Williams/Clayton Morgan 800-442-7116

Dealer Track Diane Zewalk 115 Pohesanut Dr., Ste. 201 Groton, CT 06340 860-448-3177 Fax: 860-448-3187

Automotive Credit Corporation Dan Boes 26261 Evergreen Rd. Ste. 300 Southfield, Michigan 48076 888-268-1400 dan@automotivecredit.com AutoStar Solutions Edward Viator 1300 Summit Ave., Ste. 800 Fort Worth, TX 76102 817-439-6164 edward.viator@ autostarsolutions.com AutoZone Kevin Kravig 317-681-4273 BIDZPIN Shawn Foster 1281 Winhenstschel Blvd. West Lafayette, IN 47906 765-479-0191 Fax: 765-471-2050 foster@bidzpin.com bidzpin.com Blackhawk Finance Bill Caan Matt Gleason 847-824-6912 Briggs Insurance Agency Tim Briggs 4000 W. Lincoln Hwy. Merrillville, IN 46410 219-769-4840 tbriggs@briggsagency.com Cars.com 175 W. Jackson Blvd., 8th Fl. Chicago, IL 60604 800-298-1460 dealers.cars.com

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Diamond Warranty Corporation James Limongelli 9 N. Main St. Pittston, PA 18640 800-384-5023 Diversified Vehicle Services Ray Ramsey/Mike Hockett 1919 S. Post Rd. Indianapolis, IN 46239 317-862-9100 rramsey@godvs.com Spireon GPS Bruce Norton 1512 W. 96th Ave., Ste. C Crown Point, IN 46307 219-661-1000 Fax: 219-661-2950 bnorton@drive1usa.com drive1usa.com Envirotest Systems Jennifer Kharchaf 1171 Breuckman Dr., Ste. B Crown Point, IN 46307 888-240-1684 Fax: 219-661-8409 indiana@esph.com Express Motor Vehicle Administration Corporation Kevin Clavert 3960 Southeastern Ave. Indianapolis, IN 46259 317-322-0020 Fax: 317-322-0025 dpillow@expressmva.com Frazer Computing Inc. Michael Frazer 888-963-5369 www.frazer.com GoldStar GPS Mark Behne 2035 Lakeside Centre Knoxville, TN 37920 866-655-8825 Fax: 866-655-8285 mark@procongps.com www.procongps.com JUNE 2013

GWC Warranty Carmie Fruits - Indiana Dealer Consultant PO Box 7900 Wilkes-Barre, PA 18773 317-374-6271 cfruits@gwcwarranty.com www.gwcwarranty.com

Russell Kobel Insurance Russell Kobel 100 Tower Dr., Ste. 120 Burr Ridge, IL 60527 708-935-6509 Fax: 630-468-1704 rkobel@ais-ins.com www.russelkobelinsurance.com

Heritage-Crystal Clean Jim Skelton 2175 Point Blvd., Ste. 375 Elgin, IL 60123 847-836-5670 Fax: 847-836-6169 jim.skelton@crystal-clean.com www.crystal-clean.com

Sage Payment Solutions Liz Chmielewski 773.633.6668 Liz.chmielewski@sage.com www.sage.com

Insurance ProfessionalsDealer Specialists Mike Lee 8509 Zephyr Dr. Indianapolis, IN 46217 317-432-1092 Fax: 317-300-0501 teamallenc21@comcast.net Keystone Insurers Group Lori Simpson 888-892-5860 lsimpson@keystoneinsgrp.com Kincaid Insurance Group Dan Kincaid 321 Main St. Rockport, IN 47635 812-649-5739 Fax: 812-649-5740 rwood@kincaidins.com Lincolnway Insurance Services Greg St. Germain 336 E. Lincoln Hwy. Schererville, IN 46375 219-865-2227 gregg@lincolnwayinsurance.com Merchant Services Scott Norris 602-568-1471 scott.norris@merchantsvcs.com Nationwide Acceptance Bonnie Herden 773-777-7600 www.nac-loans.com NextGear Capital Lori Kahre 1320 City Center Drive Suite 100 Carmel, IN 46033 Phone: 317.571.3845 www.nextgearcapital.com Penn Warranty Corporation Jude Tuma/Michael Roe 1081 Hanover St. Wilkes Barre, PA 18706 800-356-9441 michael.roe@ pennwarrantycorp.com www.pennwarrantycorp.com

Security Auto Loans Joe Ruhland 4900 Hwy. 169 N, Ste. 205 New Hope, MN 55428 763-559-5892 Fax: 763-559-7549 jruhland@securityal.com www.securityal.com Sentry Insurance Mike Donovan 800-373-6879 mike.donovan@sentry.com www.sentry.com Somerset CPAs Rex Collins, CPA 3925 River Crossing Pkwy. Indianapolis, IN 46240 317-472-2241 rcollins@somersetcpas.com Stewart & Irwin, P.C. Don Wray, Attorney at Law 251 E. Ohio St., Ste. 100 Indianapolis, IN 46204 317-639-5454 dwray@silegal.com www.silegal.com SuretyBonds.com Mike Patzius 1200 Roger Street, Ste. C Columbia, MO 65202 800-308-4358 mike@suretybonds.com www.suretybond.com Triumph Consulting Services Jack Haworth 800-875-3137 jackhaworth@ triumphconsulting.net Universal Publications PO Box 628 Plainfield, IN 46168 317-203-5718 publicationsinc.universal@ yahoo.com UsedCars.com by Dealix 720 Bay Rd., Ste. 200 Redwood City, CA 94063 877-852-7576 www.dealix.com/usedcars

Preferred Warranties, Inc. Gregg Reidenbach/Guy Loeffler 800-548-1121 info@warrantys.com www.warrantys.com

VideoTirekicker.com John Commorato 2413 N. Meridan St. Indianapolis, IN 46208 317-466-0321 Fax: 317-826-1964 john@cmcmediagroup.com

Reliable Auto Finance Brian Chisholm PO Box 9700 Wyoming, Michigan 49509 616-245-5983 Fax: 616-245-5978 brianc@reliableautofinance.com

Wingham & Associates Gary Wingham PO Box 1723 Richmond, IN 47375 765-977-3902 Fax: 765-966-4157 gwingham@gmail.com

RouteOne George Hartman

Zurich Insurance Company 800-728-6049

31500 Northwestern Hwy.

Farmington Hills, MI 48334 ghartman@routeone.com

Surprise! Gas Cost Less in First Quarter 2013 U.S. gasoline prices hit a record high average in February, but thanks to a rapid decline in March, the average first quarter 2013 gas prices were less than the 2012 numbers, according to GasBuddy, which tracks gasoline prices at more than140,000 stations in the U.S. and Canada. Contrary to widespread perception, Americans paid about 30 cents less for a gallon of gasoline during Easter weekend than they paid over the same period in 2012. Gas averaged about $3.64 per gallon on Good Friday, compared to $3.93 last year. The average price in the first quarter of 2013 was $3.548 per gallon, compared to $3.584 for the first quarter of 2012. In ranking the prices for 363 metropolitan statistical areas, GasBuddy found two U.S. markets that averaged less than $3 for the quarter – both in Wyoming. Casper averaged $2.87 and Cheyenne was at $2.955. The most expensive market in the country was the Honolulu area at $4.157 per gallon, three cents more than in 2012. Overall, the Rocky Mountain region had the lowest prices thanks in part to relatively cheap North American crude availability for refiners. The highest prices were found in New England, Florida and California, which had eight of the 10 most expensive markets in the country.

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Indiana Car Lines June/July 2013  

Indiana Car Lines June and July 2013

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