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Oklahoma Independent Automobile Dealers Association

DEALERS’ RESOURCE Celebrate July 2011

FREEDOM!

In This Issue • Alert: Dealer Fined For Violations • Retail Purchase Agreement Update • Odometer Disclosure Requirements • The Red Flags Rule

Change Service Requested DALLAS, TEXAS Permit No. 2079

PAID

PRSRT Standard U.S. Postage

OIADA, P.O. Box 6905, Moore, OK 73153

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INSIDE

MAGAZINECONTENTS

3 Alert: Dealer Fined For Violations 8 Odometer Disclosure Requirements 1 4 The Red Flags Rule 26 Retail Purchase Agreement Update

ADVERTISERSINDEX 71B Auto Auction .............................................13 ADESA .............................................................15 Albright Insurance ............................................. 7 AST ...................................................................22 AutoTrader.com ................................................. 5 Cars.com ................................. Inside Back Cover Dealer’s Auto Auction of OKC........... Back Cover Jordan Insurance................................................. 9 Leedom Group................................................. 11 Loftis Wetzel Insurance ....................................25 Manheim North Texas . ........... Inside Front Cover Manheim.com . ................................................21 Protective...........................................................17 SmartAuction ....................................................19 United Acceptance........................................... 23

OIADAOFFICE 813 NORTHWEST 34TH MOORE, OK 73160

EMAIL: odell.morgan@sbcglobal.net ROSE & ODELL MORGAN, Executive Directors

AMBER SNOOK, Administrative Assistant

JACKIE GARNER, Office Manager

JARED MORGAN, Electronics/ Software Technician

LYNNA KAY, Programmer STEVE MORGAN, Consultant MIKE MORGAN, Technical Aide

FOR INFORMATION ON HOW TO BECOME A MEMBER OF OIADA PLEASE CONTACT ROSE OR ODELL MORGAN AT 405-232-2947.

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

DEALERS’ RESOURCE IS A PUBLICATION OF AUTOMOTIVE DEALERS RESOURCE OF OKLAHOMA (ADR) PRODUCED ON BEHALF OF THE OKLAHOMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION (OIADA), P.O. BOX 6905, MOORE, OK 73153. THE DEALERS’ RESOURCE IS PUBLISHED MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES CORPORATION. PERIODICAL POSTAGE PAID AT ARLINGTON, TX, AND AT ADDITIONAL OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO OIADA, P.O. BOX 6905, MOORE, OK 73153. THE STATEMENTS AND OPINIONS EXPRESSED HEREIN ARE THOSE OF THE INDIVIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF ADR OF OKLAHOMA, THE OKLAHOMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF OIADA OR NIADA DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT © 2011 BY O&R MORGAN, INC. DBA OIADA. ALL RIGHTS RESERVED. DEALERS’ RESOURCE IS A PUBLICATION OF AUTOMOTIVE DEALERS RESOURCE OF OKLAHOMA ON BEHALF OF THE OKLAHOMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION (OIADA), BUT IS MAILED TO ALL DEALERS IN THE STATE IN AN EFFORT TO EDUCATE AND ENCOURAGE NON-MEMBERS TO JOIN THE ASSOCIATION AND SUPPORT OUR EFFORTS TO IMPROVE THE IMAGE AND PROFIT POTENTIAL OF THE INDUSTRY. FOR 55 YEARS, WE HAVE WORKED TO REPRESENT THE INDEPENDENT MOTOR VEHICLE DEALER IN OKLAHOMA. WE NEED YOUR SUPPORT. FRONT COVER BY Mike Morgan STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITOR Mike Harbour • mharbour@niada.com PRODUCTION MGR. Jacob Kerns • jacob@niada.com ART/PRODUCTION MGR. Christy Haynes • christy@niada.com PRINTING Nieman Printing

OIADA BOARD OF DIRECTORS

OIADA CONTACT INFO

PRESIDENT

Primary Number (OKC): 405-232-2947

Chris Goad Regal Motors 3515 N. May Oklahoma City, OK 73112 405-917-5800 managerokc@regalcars.com

Toll Free: 800-346-4232

CHAIRMAN OF THE BOARD John Easttom Auto Mart of Elk City P.O. Box 981 Elk City, OK 73648 580-225-1100 automart@cableone.net

BUSY SIGNAL? The 405-232-2947 number is designed to roll over to any of four other lines in our office, but has recently not been working correctly. If you encounter a busy signal at the 232 number, please call the 800 number or any of the following: 405-799-7116 405-799-1113 405-799-8115 405-799-3759 For your convenience, we have recently added a toll free fax number: 877-804-3449.

SECRETARY/ TREASURER Bruce Beam Dealers Auto Auction of OKC 1028 S. Portland Oklahoma City, OK 73147 405-947-2886 www.daaokc.com

VICE PRESIDENTS John T. Longacre, IV Taft Motors, Inc. 722 S. Linden St. Sapulpa, OK 918-224-7700 taftmotorsinc@msn.com Julian Codding Reliable Motors, Inc. 9201 S. Shields Oklahoma City, OK 405-912-5000 juliancodding@msn.com Monte Shockley Shockley Auto Sales 2605 N. Broadway Poteau, OK 74953 918-647-3999 sas@clnk.net Glenn McDaniel I-35 Credit Auto 1113 SE 51st St. Oklahoma City, OK 73129 405-670-4100 gtamcd@aol.com David McQuerry McQuerry Motors, Inc. 1302 N. Harrison St. Shawnee, OK 74801 405-273-8171 mcquerrymotors@yahoo.com

ALERT:

Dealer Fined For Violations Special Release to Dealers’ Resource Magazine

May 10, 2011 From: John W. Maile, Director, Oklahoma Used Motor Vehicle & Parts Commission To: Dealers’ Resource Magazine The Used Motor Vehicle Commission approved a Consent Agreement today between the Commission and C & A Auto Sales, Muldrow, Oklahoma wherein C & A Auto Sales admitted it had violated the state licensing laws and Commission rules in failing to properly assign certificates of title to vehicles sold, and allowing an unlicensed individual to buy and sell vehicles under its license. The Commission approved a fine of $1,000 for the violations. 3

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scam

BY ADR STAFF

BOGUS CASHIER’S CHECK SCAM AVERTED

Davidson did, indeed, receive the bogus cashier’s check, no. 1891045, in an envelope postmarked “CORREOS CTA MADRI”, drawn on KeyPoint Credit Union, 2805 Bowers Avenue, Santa Clara, CA 95051, in the amount of $17,400. Of course, Davidson never followed through with the refund that was requested.

Marion Davidson of Route 66 Thunderbirds in Weatherford, and a longtime member of OIADA, recently averted being caught up in a bogus cashier’s check scam when he called the association office about a recent email proposal. The proposal Davidson received

from a John Milton (jmilton7000@gmail. com) was: “This to inform you that my client has instructed me to proceed with the purchase of your vehicle for his son. He said that I should inform you that the payment for your 1977 Mercury Cougar will get to you in a cashier check of ($17,400 US) which is a refund payment of a canceled order earlier made by him. He informed me that he intends using the refund payment to pay for your vehicle. He further explained that this check has to be made out in this amount ($17,400 US) to you because company policy only allows a refund payment on one cashier check. So you are required to deduct cost of your 1977 Mercury Cougar ($10,500 US) when the payment gets to you and refund the balance of ($6,900 US) to my client’s agent via western union or moneygram international money transfer so that the agent will use some part of this balance to offset shipping/pickup charges, contract fees for the pickup agent, taxes, commission and other handling bills. After payment has reached you and the balance is sent back to his agent, the agent will contact the pickup agent who will come for the pick up of the vehicle for shipping to my client’s son. My client is making the necessary arrangement with some shippers and will provide me with the pickup/test driver agent as soon as he decides the agent to contract for the pickup of the vehicle from it’s present location. NOTE: He also instructed that you are to deduct the transfer charges from the remaining balance of ($6,900 us) which you will be sending down to his agent via western union or moneygram international wire transfer. Confirm this whole arrangement and provide the details requested below for check payment to be delivered to you. PAYMENT INFORAMTION REQUIRED: 1.PAYEE’S LEGAL NAME IN FULL……….. 2.POSTAL ADDRESS IN FULL…………………….. 3.PHONE NUMBER(S)………….. John Milton, 12 Lea Valley Road, London,E4 7PX”

Following his inquiry to the OIADA office, Davidson’s reply to Milton was: “John Milton: Thanks, your communication that your client plans to proceed with the 1977 Cougar has been received. The details you requested are: payment: Marion Davidson, dba, Route 66 Thunderbirds, 1324 Grandview Dr., Weatherford, OK 73096; Phone Cell (580)772-6666. To further confirm the arrangements you outlined; For me to transfer title, I will need the full name of the customer, address and phone number, plus a current copy of the purchaser’s driver license for my state’s sales record. I will also need a statement from the buyer the vehicle is being purchased with “No Warranties, as is where is” (if he were taking delivery in Weatherford, OK , I have these documents to sign with the Bill of Sale). Further, after the cashier’s check has been received and deposited in my bank and has cleared all processing channels of payment, I will refund the difference over $10,500.00 per your instructions. I will need carrier’s name (pickup agent) and authorized pickup statement from the purchaser. At that time, I will provide an Invoice/Bill of Sale and our transfer of Oklahoma Title notorized (from Route 66 Thunderbirds) assigned to new owner. These ownership documents will be sent certified mail to your buyer or to you as agent for the buyer to the address which you specify. Please also provide a phone number. Marion Davidson, dba, Route 66 Thunderbirds 1324 Grandview Dr. Weatherford OK 73096” Davidson received the following email reply from John Milton: “Hello, The check has been enrouted and will get to you in less than 7 working days from today, you should kindly exercise patience in this transaction and we are giving you every bit of our attention and sincerity to make sure that this transaction goes on swiftly and smoothly so that we will all smile at the end of the day., get back to me for further instruction as soon as the check is received. Thanks for everything.” Davidson did, indeed, receive the bogus cashier’s check, no. 1891045, in an envelope postmarked “CORREOS CTA MADRI”, drawn on KeyPoint Credit Union, 2805 Bowers Avenue, Santa Clara, CA 95051, in the amount of $17,400. Of course, Davidson never followed through with the refund that was requested.

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NHTSA Recalls & Investigations • NHTSA Recalls & Investigations • NHTSA Recalls & Investigations • NHTSA Recalls & Investigations • NHTSA Recalls & Investigations • NHTSA Recalls & Investigations • NHTSA Recalls & Investigatio

NHTSA RECALLS

Nissan Pathfinder, MY 1996-2004 Infiniti QX4, MY 1997-2003 Upper Strut Housing/Steering Column Failure Units affected: 196,000 Nissan is recalling certain model year

1996-2004 Pathfinder and model year 19972003 Infiniti QX4 vehicles originally sold, or currently registered in the District of Columbia, Connecticut, Delaware, Iowa, Illinois, Indiana, Massachusetts, Maine, Maryland, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Washington D.C., West Virginia and Wisconsin. In areas of the country in which heavy concentrations of road salt are used, a mixture of snow or water and salt may enter an assembly location hole in the upper strut housing, causing water to collect at the mating surface of the strut housing panel and the inner hood ledge assembly. Over time, this snow or water and salt intrusion may result in corrosion of the strut tower housing in some subject vehicles. The strut housing may crack and pull away from the inner hood ledge assembly. This may lead to grinding noises, increased steering effort, and possibly the steering column to break, resulting in the loss of steering control, which could result in a crash. Nissan will inspect the strut housing and repair the vehicles as necessary free of charge. An interim notification letter to owners will be mailed on or before May 16. Owners may contact Nissan at 1-800647-7261. Toyota Highlander and Highlander Hybrid, MY 2008 Toyota RAV 4, MY 2007-2008 Curtain Shield Airbag (CSA) System Units affected: 308,000

Toyota is recalling certain model year 2008 Highlander, Highlander Hybrid, and model year 2007-2008 RAV4 vehicles. In the curtain shield airbag (CSA) system, there are two sensors in the airbag sensor assembly which are designed to detect vehicle roll angle. If one of these sensors malfunctions, the airbag warning light (malfunction indicator light: mil) will illuminate and the roll detection system will be suspended; however, the airbag CSA remains available in the event of a side crash. If both sensors fail nearly simultaneously after initial airbag system check, the CSA and the seat belt pretensioner could be inadvertently activated. Inadvertent activation of the CSA and/or the seat belt pretensioner can cause injury to a vehicle occupant. Toyota will replace the airbag sensor assembly with a new one containing improved roll rate sensors, free of charge. Toyota intends to

send an interim owner notification to owners early to mid-May when sufficient parts and remedy becomes available. Owners may contact Toyota at 800-331-4331.

NHTSA INVESTIGATIONS

Ford F-150, MY 1997 – 2001 Gasoline Storage Tank Assembly Mounting Units affected: 2,731,909

One or both of the steel straps holding up the fuel tank and attaching it to the truck frame can corrode and break, possibly dropping the tank and causing a fuel leak. Among the incidents reported to NHTSA or Ford, 243 involved the fuel tank dropping below the vehicle and/or dragging on the ground, 95 involved fuel leakage, and nine included reports of sparks from the tank being dragged on the road. The Office of Defects Investigation (ODI) received one report of strap failure in which the leaking fuel ignited but self-extinguished. Ford reported another incident in which the leaking fuel ignited and the resultant fire destroyed the vehicle. There have been no injuries associated with these incidents. ODI has received reports of corrosion induced tank strap failures with other model year F-150 vehicles and is upgrading the investigation to determine the frequency, severity, and scope of this problem. Buick Rainier, Chevrolet Trailblazer 360, Chevrolet Trailblazer Ext 370, GMC Envoy 360, GMC Envoy XL 370, SAAB 9-7X, MY 2005-2007 Fuel Gauge System Units affected: 865,000 estimated

Consumers have reported incidents of inaccurate and random fuel level reading while driving, resulting in the vehicle running out of fuel and causing vehicle to stall with no restart. The Office of Defects Investigation has received 668 complaints alleging inaccurate

fuel gauge reading while driving in model year 2005-07 Chevrolet Trailblazer, GMC Envoy, Buick Rainier, and Saab 9-7x vehicles. Of the 668 complaints, 58 incidents were alleged to result in a vehicle stall. Of the 58 stalling incidents, 43 complaints reported stalling because the fuel level reading indicated more fuel availability than what is actually in the fuel tank. One complaint alleged a vehicle crash after the vehicle stalled while exiting the interstate, became disabled, and was struck from behind. Summarily, the complaints show an apparent increasing trend, with most complaints received within the past year. A preliminary evaluation has been opened to assess the scope, frequency and potential safety consequences associated with the alleged defect. Jeep Liberty, MY 2002-2005 Rear Suspension Units affected: 370,000 estimated

The left or right rear lower control arm may fail due to excessive corrosion. A rear lower control arm failure may result in a loss of vehicle control. ODI has received nine complaints alleging failure of either the left or right rear lower control arm due to excessive corrosion. Two of the complainants alleged the failure occurred at speeds of 50 mph or greater. Additionally, three complainants alleged that the failure resulted in a loss of vehicle control. A preliminary evaluation has been opened to assess the scope, frequency and potential safety consequences of the alleged defect. Ford Freestyle, my 2005-2007 Vehicle Speed Control Units affected: 170,000

ODI has received 238 complaints alleging incidents of unexpected vehicle movement when the driver’s foot is not on the accelerator in model year 2005 through 2007 Ford Freestyle vehicles. Complainants allege that the vehicle brakes are effective in either

For more information, visit www.NHTSA.gov.

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alls & Investigations • NHTSA Recalls & Investigations • NHTSA Recalls & Investigations

preventing or stopping the movement, but in some cases the vehicle has moved as much as 10 feet if the brake was not applied, lightly applied or applied late. The movement resulting from the unexpected idle speed increase, often described as a “lunge,” is alleged to have resulted in 18 minor crashes. Reports allege that the lunging occurs when the driver’s foot is not on the accelerator and either firmly on the brake pedal, lightly on the brake pedal, or hovering above the pedals (such as may occur when coasting under idle speed). Incidents occurring during firm brake application note increased engine rpm, but no vehicle movement. In incidents occurring when the brake is not applied or lightly applied, vehicle movement may result. Incidents have been reported in both forward and reverse gears. Complaints allege that the lunge is sudden and unexpected, and generally of brief duration. There is some indication the condition may be made worse during air-conditioning operation or when the steering wheel is turned a significant amount, as may occur during low-speed parking lot type maneuvers - conditions which are part of normal idle control strategy to compensate for increased engine load from cycling of the air-conditioning compressor or power steering pump. ODI has identified 18 minor crashes that may be related to the subject condition, none of which resulted in an airbag deployment. One crash involved a minor impact with a pedestrian in a residential driveway, resulting in a minor injury (bruised knee not requiring medical attention). A list of the specific ODI complaint identification numbers related to the failure report will be submitted as a separate memo to the investigation file. A preliminary evaluation has been opened to assess the scope, frequency, and safety-related consequences of the alleged defect.

* FOR ACCOUNTS THAT QUALIFY / ACCEPTABLE WITH UNDERWRITING

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BY ADR STAFF

Odometer Disclosure Requirements in Oklahoma

Since buyers rely on the validity of the odometer when evaluating the condition and value of vehicles, Congress enacted the Federal Odometer Act. The purpose of the act is to prohibit tampering with vehicle odometers and to provide safeguards to protect purchasers in the sale of autos with altered or reset odometers. It prescribes rules requiring transferors and lessees of motor vehicles to make written disclosure to transferees and lessors respectively, concerning the odometer mileage and its accuracy. It further prescribes the requirements for retention of odometer disclosure documents by transferors and lessees.

The FOA implementing regulation requires (in part) the following: • Each title, at the time it is issued to the transferee, must contain the mileage disclosed by the transferor when ownership of the vehicle was transferred. • The odometer reading disclosure shall include specific statements relating to the transferor’s knowledge regarding the validity of the reading versus the actual mileage of the vehicle. • The transferor shall retain copies of the completed title as well as all odometer disclosure documents for five years. In Oklahoma, the Used Motor Vehicle & Parts Commission recognizes that the vehicle title is not always available at the time of the sale. The UMV&PC therefore requires the vehicle odometer reading to be recorded at the time of sale. In accordance with the FOA, the reading disclosed at the time of sale shall be the odometer reading when ownership of the vehicle was transferred.

Motor vehicle sales forms available from OIADA/ADR of Oklahoma have been specifically designed to help Oklahoma dealers meet their state and federal regulatory obligations.

Odometer disclosure statements are required for all motor vehicles other than the following specifically exempted vehicles: • A vehicle having a gross vehicle weight of more than 16,000 pounds. • A vehicle that is not self-propelled. • A vehicle that was manufactured in a model year beginning at least ten years before January 1 of the calendar year in which the transfer occurs. • A vehicle sold directly by the manufacturer to any agency of the U.S. in conformity with contractual specifications. • A transferor of a new vehicle prior to its first transfer for purposes other than resale. • A lessor of any of the vehicles listed above.

• A  n all-terrain vehicle (Oklahoma exception). • A motorcycle used exclusively off-road (Oklahoma exception). • A utility vehicle (Oklahoma exception). Motor vehicle sales forms available from OIADA/ADR of Oklahoma have been specifically designed to help Oklahoma dealers meet their state and federal regulatory obligations. Compliance with odometer disclosure rules and regulations for retail sales will generally include the following procedures: • Record the vehicle odometer reading at the time of the sale on the Bill of Sale. [ADR Form 06 Retail Purchase Agreement/Bill of Sale or ADR Form 06.2 Retail Purchase Agreement (Multiform)]. • Complete an Odometer Disclosure Form. [ADR Form 02 Odometer Disclosure or ADR Form 06.2 Retail Purchase Agreement (Multiform)]. • Record the vehicle odometer reading at the time of the sale on the vehicle title. This reading should be the same as the reading documented on the Bill of Sale or previously executed Odometer Disclosure Statement. • Complete the required information on the vehicle title. • Sign and notarize the title. • Affix the Oklahoma State Tax Stamp on the title. • Make a copy of the front and the back of the completed, signed, notarized, stamped title. • Retain all odometer disclosure documents in the deal jacket for five years. Note: The new ADR Form 06.2 Retail Purchase Agreement (Multiform) incorporates the Odometer Disclosure Statement as well as the requisite We Owe, Trade-in Record, Deposit/Down Payment Receipt, Dealer Warranty Statement, and Other Material Understandings and Integrated Documents. Use of this single form eliminates the need for separate forms. If you are using the ADR Form 06 Retail Purchase Agreement/Bill of Sale, you will also need to use the separate ADR Form 02 Odometer Disclosure Statement. DISCLAIMER: This article was prepared for informational purposes only. It has been made available with the understanding ADR of Oklahoma is not engaged in rendering legal advice. You are urged to contact legal counsel for its application to your operation.

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ALERTS

National Motor Vehicle Title Information System (NMVTIS)

FDIC SPECIAL ALERTS WEBPAGE

The U.S. Department of Justice has implemented a national database of vehicles titled in the various states. Every state except Illinois and the District of Columbia is either currently providing information or in the process of setting up to provide the information to NMVTIS. Additionally, insurance companies, salvage pools, salvage dealers and automotive crushers are to be involved in this system. The purpose of the system is to provide a national database which can be used by consumers to obtain vehicle histories and used by law enforcement agencies investigating stolen vehicles, odometer, and title fraud. The system is required to be self funded, so reporting and obtaining information is fee based. Any business buying or selling more than five total loss or salvage vehicles per year is required to provide information. This can be done by sending your information to a data collecting service. There are several companies that do this for a fee. The American Association of Motor Vehicle Administrators (AAMVA) is listed as a nocost direct reporting service. The penalty for failing to report as required is $1,000 per occurrence. In addition, anyone can obtain information about a particular vehicle by going to one of the providers and paying a fee for the information. For more information about NMVTIS, visit www.NMVTIS.gov.

The Federal Deposit Insurance Corp. maintains a special alerts page regarding questionable activity involving banks or banking products. The alerts include reports of counterfeit official checks and cashier’s checks. To access the list, visit http://www.fdic.

NOTE: The Oklahoma Used Motor Vehicle & Parts Commission does not require any of its licensees to participate in this system as part of its licensing requirements nor does it assess any fines for failure to report. NMVTIS is solely a federal program.

gov/news/news/SpecialAlert/2011/index.html. Each listed alert links to a page with details about the reported activity. In the case of counterfeit documents, the detail page includes descriptions of both the counterfeit item and the bank’s valid documents.

THROUGH APRIL, THE FOLLOWING ALERTS FOR 2011 WERE LISTED: Counterfeit official checks bearing the name “The Guernsey Bank, Worthington, Ohio.” Counterfeit cashier’s checks bearing the name “The Paducah Bank and Trust Company, Paducah, Kentucky.” Counterfeit cashier’s checks bearing the name “National Bank of Kansas City, Overland Park, Kansas.” Counterfeit official checks bearing the name “Americantrust Federal Savings Bank, Peru, Indiana.” Counterfeit cashier’s checks bearing the name “Lincoln Savings Bank, Reinbeck, Iowa.” Counterfeit cashier’s checks bearing the name “First Savings Bank, El Paso, Texas.” Counterfeit cashier’s checks bearing the name “First California Bank, Beverly Hills, California.” Counterfeit cashier’s checks bearing the name “Community America Credit Union, Lenexa, Kansas.” Counterfeit cashier’s checks bearing the name “American Security Bank.” Counterfeit cashier’s checks bearing the name “Frontier Bank, Madison, Nebraska.” Counterfeit cashier’s checks bearing the name “Metropolitan Bank and Trust Co., Chicago, Illinois.” Counterfeit official checks bearing the name “Stock Yards Bank & Trust, Louisville, Kentucky.” Counterfeit official checks bearing the name “The Community Bank, Brockton, Massachusetts.” Counterfeit cashier’s checks bearing the name “Hedrick Savings Bank, Ottumwa, Iowa.” Counterfeit cashier’s checks bearing the name “Central Jersey Bank, N.A.” Counterfeit cashier’s checks bearing the name “South Georgia Banking Company.” Counterfeit cashier’s checks bearing the name “Delta Trust and Delta Bank & Trust, Little Rock, Arkansas.”

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OIADA LEGISLATIVE TRACKING REPORT BY ADR STAFF

The week ending Saturday, May 21, marked the end of the legislative session for 2011. The following are the final bills OIADA has been tracking thanks to Jami Longacre, OIADA’s legislative liaison. She filed this report on their disposition as of May 20, the last day of the session: HB 1446 Faught: Failed. We are pleased to report House Bill 1446 by Rep. George Faught, R-Muskogee, failed to get enough votes in the House to pass this year. The bill included parts of Arizona’s anti-illegal immigrant law passed last year and was designed to target human smugglers and others who prey on illegal immigrants. Among other dealer concerns, the bill had the potential to put a dealer out of business for selling a vehicle to the wrong person. Depending on the outcome of a Supreme Court ruling, we must watch for another effort to pass some sort of immigration legislation in the next session.

The week ending Saturday, May 21, marked the end of the legislative session for 2011. SB 201 Aldridge: Re-referred to conference. Senate Bill 201 by Sen. Cliff Aldridge, R-Midwest City, and Rep. Jason Nelson, R-Oklahoma City, is a bill that would have required the Oklahoma Tax Commission to suspend renewal of a vehicle’s registration for failing to pay court-ordered fines and costs for traffic or parking violations. Several entities had problems with the bill, including a number of motor license agents. As a result, the Senate has rejected the latest Conference Committee Report and has sent the bill back to conference. That means the bill is dormant for this year, but will be one of the first bills to be considered when the legislature convenes next year. SB 772 Jolly: Senate Bill 772 by Jolly of the Senate and Murphey of the House ended the 2011 legislative session as a bill creating a task force to study the existing governmental models of Florida, Ohio and other states that have established a central contact point or agency for the facilitation of the majority of business and professional licenses and applications. The task force shall additionally evaluate the feasibility of establishing a similar governmental model in this state. The task force is to make its report to the Senate and House leadership by Dec. 1.

Senior Leadership Hires for the Consumer Financial Protection Bureau The Treasury Department recently announced the hiring of senior leadership for the Consumer Financial Protection Bureau. As reported in previous editions of this publication, the CFPB was established by the financial reform act known as Dodd-Frank. Effective July 21, the

bureau officially gains regulatory oversight of various financial institutions, including some members of the motor vehicle sales industry. As evidenced by the name, the CFPB is tasked to serve as a proponent for the consumer. Elizabeth Warren, assistant to the president and special advisor to the Treasury secretary on the CFPB, highlighted the selection of Sendhil Mullainathan to serve as assistant director for research and Patrice Ficklin to serve as assistant director for fair lending. “Under Sendhil Mullainathan, the Office of Research will promote evidence-based policy-making at the CFPB. The office will provide analytical support to the bureau and strengthen its understanding of possible benefits and costs of potential CFPB policies,” Warren said. “With Patrice Ficklin at its head, the Office of Fair Lending will provide oversight and enforcement of Federal laws intended to ensure fair, equitable, and nondiscriminatory access to credit for both individuals and communities.” Mullainathan is professor of economics at Harvard University, and a research associate at the National Bureau of Economic Research. Prior to joining the CFPB, Mullainathan was a co-founder of the Abdul Latif Jameel Poverty Action Lab and a board member of the Bureau for Research and Economic Analysis of Development. He has received a MacArthur Foundation genius award, as well as numerous other grants and fellowships, including from the National Science Foundation, the Olin Foundation, the Sloan Foundation and the Russell Sage Foundation. Mullainathan has published extensively in top economics journals including the American Economic Review, the Quarterly Journal of Economics, and the Journal of Political Economy. He received his undergraduate degree from Cornell University. Ficklin most recently practiced at the civil rights law firm of Relman, Dane & Colfax, advising on civil rights issues arising in lending, employment, and housing. Prior to that, Ficklin worked at Fannie Mae, where she provided fair lending, fair housing, and other consumer law advice regarding mortgage products, pricing, and servicing. During her tenure at Fannie Mae, she also directed the company’s employee grievance department, conducted internal investigations, designed and implemented a mandatory non-binding arbitration program for employees, directed the corporate ethics program, and revamped officer and employee performance review standards. She specialized in financial institutions regulation, civil litigation, complex corporate transactions, and employment law at the Washington, D.C., law firm of Wilmer, Cutler & Pickering, now WilmerHale. She was appointed to the Maryland Higher Education Commission. She is a graduate of Georgetown University and Harvard Law School.

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Social Security Number Randomization exhausted more quickly than in others. As a result, given present rates of assignment and existing geographic allocations, there are fewer than 10 years’ worth of SSNs currently available for assignment in several States. Changing the assignment methodology will extend the longevity of the nine-digit SSN in all states. As the SSN has increasingly become an identifier used by both public and private entities, instances of SSN fraud, misuse and identity theft also have increased. The SSA believes another benefit of ending the geographic significance associated with the SSN area number is opportunities for SSN fraud, misuse and identity theft will be reduced. By eliminating the geographical significance of the first three digits of the SSN, they can help prevent someone from learning an individual’s SSN by acquiring the area number of a potential victim’s SSN through knowledge of the date and location of the SSN application, and combining it with the correct group and serial number (i.e. the last four digits of the SSN), and being able to use that SSN for illegal purposes.

Effective June 25, the Social Security Administration (SSA) is changing the way Social Security Numbers (SSNs) are issued. This change is referred to as randomization. The administration is developing this new method to help protect the integrity of the SSN. SSN randomization will also extend the longevity of the nine-digit SSN nationwide. The SSA began assigning the nine-digit SSN in 1936 for the purpose of tracking workers’ earnings over the course of their lifetimes to pay benefits. Since its inception, the SSN has always been comprised of the three-digit area number, followed by the two-digit group number, and ending with the four-digit serial number. Since 1972, the SSA has issued Social Security cards centrally and the area number reflects the state, as determined by the ZIP code in the mailing address of the application. There are now 435 million numbers available for assignment. However, because area numbers in the past were allocated for assignment in states based on then-current demographic trends, the allocations of SSNs in some states will be

For more information about the new SSN randomization process, visit www.socialsecurity.gov/ employer/randomization.html or send questions to ssn.randomization@ssa.gov.

SSN RANDOMIZATION WILL AFFECT THE SSN ASSIGNMENT PROCESS IN THE FOLLOWING WAYS: • I t will eliminate the geographical significance of the first three digits of the SSN, now referred to as the area number, by no longer allocating the area numbers for assignment to individuals in specific states. • I t will eliminate the significance of the highest group number and, as a result, the High Group List will be frozen in time and can be used for validation of SSNs issued prior to the randomization implementation date. • P  reviously unassigned area numbers will be introduced for assignment excluding area numbers 000, 666 and 900-999. If you use SSNs in the course of your customer identification process, be aware the following validation rules still apply to SSNs issued prior to June 25: • W  ill not have an area number (first 3 digits) between 734 and 749. • Will not have an area number above 772. • Will not have an area number of 666. • Will not have all zeros in any digit group (000-xx-####; ###-00-####, ###-xx-0000). • Numbers from 987-65-4320 to 987-65-4329 are reserved for use in advertisements.

BY ADR STAFF

J.D. Power and Associates 2011 U.S. Green Automotive Study Based primarily on a study of prospective vehicle purchasers fielded last February, J.D. Powers and Associates is predicting the outlook for green vehicles remains limited for the foreseeable future. The research firm expects the share of hybrid and electric vehicles to remain below 10 percent of the U.S. market through 2016. Titled the “2011 U.S. Green Automotive Study”, the study considers the attitudes of 4,000 consumers toward hybrid electric vehicles, clean diesel engines, plug-in hybrid electric vehicles and battery electric vehicles. The study asserts, despite interest in the vehicles, consumers’ concerns about both vehicle cost and vehicle functionality will constrain sales. The study indicates substantial consumer interest in green alternative powertrain vehicles, but more as a means of reducing

fuel costs, not out of interest for the environment. Of those consumers actually considering an alternative powertrain vehicle for their next purchase, 75 percent cite lower fuel costs as the primary reason. Only 50 percent cite environmental concerns. Consumers not considering purchase of an alternative powertrain vehicle also recognize the potential fuel cost savings. However, in addition to purchase price, they cite concerns about functionality – such as driving range and performance – as a major impediment to ownership. According to Mike VanNieuwkuyk, executive director of global vehicle research at J.D. Power, “It is the financial issues that most often resonate with consumers, whether it is the higher price of the vehicle itself, the cost to fuel or charge the vehicle, or the fear of higher maintenance costs. The bottom line

is that most consumers want to be green, but not if there is a significant personal cost to them.” The study concludes consumers have interest in alternative powertrain vehicles and the perception of green vehicles is largely positive. However, converting this interest into actual sales will require concerted efforts to improve the technology and infrastructure and reduce the cost to consumers. For more information, visit www.JDPower. com. J.D. Power and Associates is a business unit of McGraw-Hill. BY ADR STAFF

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The Red Flags Rule: Compliance Reminder

To inquire about the Red Flags Program for Low-Risk Dealers compliance solution available from OIADA/ADR of Oklahoma, contact us at 800-346-4232, 405-232-2947 or lynna.kay@buyadr.com.

The regulation known as the Red Flags Rule derives from the Fair and Accurate Credit Transactions Act (FACTA). The

rule is intended to cause businesses and organizations to make conscious effort to be aware of the warning signs of identity theft. By focusing on these warning signs – or red flags – businesses should be better able to spot an imposter using someone else’s identity to obtain products or services. As implemented by the Federal Trade Commission, the Red Flags Rule became effective Jan. 1. As a practical matter, the rule applies to your business if you provide products or services and allow customers to pay after-the-fact.

Scope of the Red Flags Rule

The rule applies to financial institutions and creditors who have covered accounts, terms that have specific meaning under the rule. Whether your business or organization is a financial institution or creditor isn’t based on the line of work you’re in, but rather on whether your activities fall within the definitions in the law. As defined by the rule, financial institutions are typically banks, savings and loans, credit unions, and other institutions holding transaction accounts. Auto dealers do not commonly meet this definition. Many dealers do, however, meet the definition of creditor. Under the rule, the definition of creditor is broad, and includes businesses or organizations that regularly provide goods or services first and allow customers to pay later, such as utilities and telecommunications companies. The definition also covers businesses or organizations that regularly grant loans, arrange for loans or the extension of credit, or make credit decisions. Examples include dealers that offer financing or collect or process credit applications for third-party lenders.

For businesses determined to be financial institutions or creditors, only covered accounts are subject to the Red Flags Rule. The rule defines covered accounts to be 1) consumer accounts designed to permit multiple payments or transactions, or 2) any other account that presents a reasonably foreseeable risk from identity theft. Dealers are required by law to identify the vehicle purchaser in all sales. Consequently, every account holds sensitive identifying information, and, because of clause 2, should be considered a covered account, whether it is a cash or finance transaction. In summary, dealers who grant loans, arrange for loans or the extension of credit, or make credit decisions in the course of vehicle sales are considered creditors and must comply with the FTC’s implementation of the Red Flags Rule. All their vehicle sale accounts are covered accounts.

Effect on Third-Party Lenders

Third-party lenders are also subject to the Red Flags Rule. They face the same legal obligation to prepare and implement effective identity theft prevention programs. Reports across the industry are third-party lenders are now successfully shifting the risk of identity theft to the originating party. In cases of loan default attributed to identity theft, third party lenders are increasingly demanding contract repurchase on the basis of the originating party’s obligations under the Red Flags Rule.

Importance of Compliance

The rule effectively places the burden of preventing identity theft on you, the dealer. By law, you are now required to have a written identity theft prevention program in place. And, for your own benefit, it should be a viable program that is integrated into your everyday procedures. If you do not have a plan in place, or if it is not a viable plan, you

The rule effectively places the burden of preventing identity theft on you, the dealer. By law, you are now required to have a written identity theft prevention program in place. can be hit squarely in the pocketbook – by loan default if you are carrying the note or by third-party lenders demanding repurchase. You may also be subject to civil liability arising from the identity theft victim arguing that failure to implement a viable Red Flags Program is negligence on your part.

Complying with the Red Flags Rule

To comply, you must develop, implement, and maintain a written identity theft prevention program. The written program should both adhere to the rule’s guidelines and should be oriented to your particular day-to-day operation. Your program should have been in place by Jan. 1. To inquire about the Red Flags Program for Low-Risk Dealers compliance solution available from OIADA/ ADR of Oklahoma, contact us at 800-3464232, 405-232-2947 or lynna.kay@buyadr. com. DISCLAIMER: This article was prepared for informational purposes only. It has been made available with the understanding that ADR of Oklahoma is not engaged in rendering legal advice. You are urged to contact legal counsel for its application to your operation.

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service

BY J IM STICKFO RD

Catering to the Customer Changes in technology during the last few years have had a profound change in how the average consumer shops for a car or truck. This, in turn,

has meant dealers wishing to stand out from the competition had to change the way they interact with customers, such as delivering vehicles to buyers instead of requiring them to come to the store. The days of the dealer holding all the cards and controlling the transaction – what information to tell the customer, including price – are gone, said Joe Lescota, veteran dealer and automotive marketing department chair at Northwood University in Midland, Mich. In the old days, the first question a salesman often would ask a potential customer was what kind of payment the customer could afford, Lescota said. Sometimes customers wouldn’t even be told the price of a vehicle. But, thanks to the Internet, that kind of salesmanship just doesn’t work like it used to, Lescota said. “When people shop for a car these days, most often they start with the Internet,” Lescota said. “Today’s savvy consumer wouldn’t think of going to a dealership without first checking online to see the inventory.”

This has changed the balance of power between buyer and seller. In the space of an hour, a potential buyer can now check the inventory of auto dealers within easy driving range. Even the inventory of dealerships in other states is accessible on the Web. By the time today’s customers go to a lot, Lescota said, they have a pretty good idea of what they want to purchase. This new way of shopping for a vehicle requires dealers offer new kinds of services. “Dealers are learning that they can’t differentiate on price alone,” Lescota said. “If a dealer attempts to stand out on price alone, he will lose. A dealer who wants to stick out these days has to do it by service.” The reason is simple, Lescota said. Just as the Internet has changed the way consumers buy autos, it’s changed the way dealers purchase inventory. It’s now possible to check auction prices across the country just using a smartphone. The result is prices are more even than they’ve ever been. “Dealers and OEMs have made some assumptions about how to attract customers,” Lescota said, “by spending a lot of money on buildings – making the dealership look really nice. They do this on the assumption that people will come to them and they want to see a nice building and facilities. That never hurts, but a smart dealer makes part of his investment in facilities in a virtual showroom.” That means having a nice, easy-touse website that displays inventory. But dealers also need to understand that consumers, now more than ever, make buying decisions based on trust and relationships. “It’s not just about product anymore,” Lescota said. “For example, everyone I know has stopped going to one restaurant or another because they didn’t like the service. Bad service can really turn off a customer for life.” On the other hand, good service, including offering home deliveries, can make someone a customer for life. Many dealers make the assumption customers can come to their dealerships to make a purchase, Lescota said. But in this economy it’s not uncommon for people to work two or even three jobs. They don’t have Saturdays off or the time to go to the dealership. But the dealer who can adjust his selling style to meet the needs of the overworked customer can profit.

“Dealers have to go to people’s homes,” Lescota said. “Dominoes made a billion-dollar business by mastering home delivery. This just doesn’t apply to cars. For example, I needed shutters, but I didn’t go to the store. A store guy came to my home, looked at what was needed and we went from there. It was a little more expensive, but if you take the formula of time equals money, and I didn’t have the time to shop, it made sense. Dealers have to ask themselves ‘how do my customers shop?’” Lescota emphasized dealers don’t have to provide home service for free. He recently hosted a focus group on behalf of dealers. Group members were asked if they would pay extra if someone came and picked up and later returned their vehicles to have their oil changed. The answer was yes, and the figures given ranged from $5 to $10 extra. “People are willing to pay more for extra service,” Lescota said. “They understand pampering. Customers like to brag that the salesman came out to his house. This is not a theory. About 30 percent of my personal sales come from home sales.” Now it’s possible for an auto salesman to have his entire inventory on his smartphone. When Lescota was asked what should happen if a customer doesn’t like a vehicle after it’s been delivered to his home. Lescota has an eloquent response. “Big deal,” he said. “Go back and get another car. What are you going to be doing anyway? Waiting for ups to walk into the store? If you’re smart, you’ll use this incident as an opportunity to better understand what the customer wants. Ask him why he didn’t like the particular car. He might say it’s the color. Get the customer sold on the fact that you’re willing to break your back to get them the car they want.” But dealers might say that’s inefficient compared to making an appointment for the customer to visit the dealership. Lescota points out customers skip appointments all the time. “They’re busy,” he said. “Something comes up or they forget, but have someone come to their home to show and drop off cars? That is an appointment they’ll keep.” All cars are alike these days, Lescota said, thanks to much better engineering and manufacturing. Add in reconditioning and the quality difference between vehicles at different dealerships just isn’t that great anymore. continued on page 18

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“ service

continued from page 16

“There will always be challenges in any industry and if you can navigate them, you’ll be successful as a business,” Daniell said. “If you’re not a flash in the pan and you service your customers with excellence, you’ll last. Often we’ll throw in a tank of gas when we make a sale.”

Madalene Daniell, vice president of the familyowned Daniell Motors in Hattiesburg, Miss

“It comes down to service,” he said. “If a customer has a problem with a car, it’s better to ask him where the dealer will pick it up as opposed to telling him to drop it off at the dealership. We need to remind ourselves that people often make sacrifices to buy a car, even a used one. Car buying is an emotional experience and the dealer who remembers that will do better.” But, Lescota warned, the laws governing auto sales are different in every state. It’s possible in some states for dealers to sell a vehicle without a customer ever having to step into a dealership. In other states, the customer will have to make at least one trip to the lot to fill out the paperwork. Dealers need to know the laws in their states and set up plans accordingly. Jody Midgette, owner of Midgette Auto in Harbinger, N.C., said he’s located in a state that requires the deal to be completed at the dealership. With that in mind, he said it’s still vitally important for his dealership to provide excellent service. “We’re located in the Outer Banks region of North Carolina,” Midgette said. “This is a relatively remote area and we’re not near a large metro area, so that means we don’t get a lot customers who came in because they were driving by and saw something they liked on the lot, so we have to go the extra mile to keep our customer happy. If we don’t there aren’t a lot of people out there who can replace them.” Being located in hurricane country has meant catering to customers in difficult circumstances, Midgette said. There have been times he’s picked up customers left stranded by weather and even had to set up a remote site to sell vehicles because of a hurricane. It’s all a part of doing business. “Now consumers have so much information,” Midgette said. “If we don’t provide the best service, they’ll go to someone else. By the time a customer calls us, they know what they want. They know what mileage the car they’re interested in gets. Businesses here are busy and they don’t have the staff they use to. They don’t have the time to take off a day to buy a car for their businesses. So we’ll bring a vehicle to them.” But this is only a part of their service package, Midgette said. Ultimately, it’s his goal to get the customer into the store to show off their full range of services. “We want them to see who we are and what we do,” Midgette said. “We want to build a relationship. If that means picking someone up or dropping off a car they bought, then that’s what we do because keeping the customers you have is a lot

easier than replacing customers you lost.” Bringing the cars to where the people are is just part of being a full-service dealership, Midgette said. Quality service is just part of an overall strategy. Midgette Auto maintains an inventory of about 75 vehicles, ranging in price from $3,000 to $30,000. The dealership sells cars and trucks to both citizens and businesses. They even do some Buy Here-Pay Here sales. “In this competitive economy, you have to be all things to all people,” Midgette said. Madalene Daniell, vice president of the family-owned Daniell Motors in Hattiesburg, Miss., said their service begins with a 30-point inspection. It’s a service that allows them to give each vehicle they sell a gold star warranty that’s good for one month or 1,000 miles. She emphasized they give a warranty and not a service contract. “We believe a happy customer out in the community is our best marketing tool,” Daniell said. “We’re located about 60 to 90 minutes between three airports in New Orleans, Jackson, Miss., and Gulfport, Miss. We have a lot of people who buy from us regionally. We’ll pick people up from any one of those three airports.” In addition to offering customers a complimentary airport shuttle, she believes they also deserve a no-pressure atmosphere. Daniell agrees with Lescota’s belief about today’s cars selling themselves. As a small family business, Daniell Motors doesn’t have the staff to be open 24/7. Part of offering excellent service means the dealership stays open late for the customer who comes from out of town. “There will always be challenges in any industry and if you can navigate them, you’ll be successful as a business,” Daniell said. “If you’re not a flash in the pan and you service your customers with excellence, you’ll last. Often we’ll throw in a tank of gas when we make a sale.” Service goes even further, Daniell said. They’ll help customers with their credit problems. She said they’re not a BHPH store, but that doesn’t mean they can’t help. Daniell’s staff will walk customers through their financial issues and what steps they’ll need to improve their credit ratings. Once the process is complete, the customers will come back and buy a vehicle. “We’ll even tell a customer to continue to drive the car they so that they can save up for a down payment,” Daniell said. “That way they won’t get slammed by the payments. This is all about serving the customer. They don’t have to buy their cars from you.”

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Q&A

BY STEPHAN I E PATRICK

DON FINCHER Q&A

New President to Continue NIADA’s Positive Efforts It’s very likely Don Fincher can’t remember a time when he wasn’t working at an automobile dealership.

While still a young boy, NIADA’s new president for 2011-12 began his career as a porter at his father’s well-established Fred Fincher Motor Co. in Houston. He was even a salesman before he was a high school graduate. Between 1979 and 1986, he was general manager of the family business and responsible for six locations in the Houston area, reaching more than $12 million in annual sales. He established Fincher Motor Co. and Fincher Finance Corp., a Buy HerePay Here operation, in 1986. Since then, he’s taken on a host of leadership roles with his local and state association, as well as NIADA positions. Fincher was named Texas Quality Dealer of the Year in 1992. Anthony Underwood, NIADA’s current chairman, said Fincher will do well in helping to raise NIADA’s public profile while working closely with the auctions and industry vendors in providing dealers valued services. “We are trying to find more avenues to make the NIADA brand more of a necessary entity in the lives and businesses of dealers today,” Underwood said. “Fincher and NIADA are blessed with a great legacy of wonderful people who have dedicated their lives to building such a strong association.” Used Car Dealer recently interviewed Fincher about his upcoming term, his take on the industry and his plans for the association.

What does this year’s NIADA presidency mean to you?

It’s a real privilege and honor to represent so many dealers across the country. Certainly, it’s a humbling experience to take on an elected position like this. It’s very important because

of the industry that we represent; it’s important to protect it from undue and unnecessary legislation and regulation on a local, state and national level. What does it mean to me? It’s very, very important to protect the industry for our dealers. Again, it’s an honor to represent so many quality and awesome dealers across the country.

So many people who join NIADA don’t take leadership roles with the association. Why did you choose to take a leadership role?

It was kind of a natural inclination for me because I’ve been president of the Houston Independent Auto Dealers Association and I’ve been president of the Texas Independent Auto Dealers, and going to NIADA was just a natural transition. Being involved in making a difference is important to me. It’s easy to sit back and complain, criticize and accuse the industry, but it’s quite another thing to get involved in the struggle and make a difference…I don’t want to complain about the situation we have, I want to get in there and change it.

What are you going to do to encourage others to take on leadership roles?

When you go out and you talk to people about what’s going on in the industry, especially right now with the FTC and the new CFPB starting up, it’s really not that hard to get people involved. You just have to motivate them by making them more aware of certain situations we are faced with as an industry. If you are a concerned dealer and you are concerned about your business, you can see the handwriting on the wall about what needs to be done. And it’s really not that hard to get good, quality people involved. All they need to do is to participate with us.

How has the association helped your business specifically?

NIADA has watched out for us, offered services that we couldn’t have gotten on our own and at lower rates, and they have worked with the auctions and vendors in ways that give us discounts and help us along the way. The association has been proactive in working with those vendors to help dealers get better services and better products. These things and more have certainly helped my business. NIADA also looks out for our industry in Washington, and tells us when there are issues relevant to us and has helped us stay in compliance when rules change;

the Red Flags Rule, for instance, was just one area where NIADA was proactive. The association really helps us, as dealers, get the information we need. That’s the same at the state and local levels.

What’s your best advice for dealers just starting out in the business?

Definitely join the associations because of the information you get from them and the services that they can provide for you, especially if you are a new dealer and you’re not involved. You may not find the expertise available or the services you need like other dealers who have been in this business their entire lives. I’m a second-generation dealer and my son, who graduated from college in 2003, is a third-generation dealer working for me. If you are just starting in the business, you get the benefit of people who have been around for a long, long time. It’s almost like having your own 20 Group… with NIADA, you get the best of the best; you get all that information from people who have been in business forever, and you get a different perspective on how things work and the way you can do things. I think it’s a must for any new business starting up.

What’s the greatest lesson learned from running your own business?

I’ve learned a lot of lessons by running my own business, but certainly controlling overhead is a very key thing. Marketing is also a key. There are a lot of things mixed together that when you run your own business, you get firsthand. When you are paying the bills and you’re signing the checks, you learn pretty quick that the money doesn’t just come in naturally; you have to do things and make adjustments to make things work to where it does comes in. And with this industry changing the way it has since I first started, you have to make adjustments almost on a monthly basis. I could list a ton of things I’ve learned from running my own business.

How has both the industry and NIADA changed since you entered the industry?

I think the association has become more focused, while the industry has certainly changed. There’s more government regulation from the local, state and national levels; the government involvement in the automotive industry continued on page 22

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t

Used Vehicle Values Used vehicle values have been increasing across nearly all segment most of this year; Rising gas prices have led to strength in fuel-efficient segments, yet safe to say all usedvehicle values strong through April.

•3-YEAR-OLD VEHICLES RISE SUBSTANTIALLY SINCE 2007:

Lack of used vehicle supply, from reduced new-car sales in same period.

•PRODUCTION DROP HAPPENING DOMESTICALLY AND IN JAPAN:

Tornadoes in Southeast US have caused temporary engine plant shutdowns.

•AS INVENTORIES BEGIN TO SHRINK, EXPECT A FEW THINGS TO HAPPEN:

New-vehicle transaction prices will rise, and incentives will be scaled back.

•AS SUPPLY OF NEW VEHICLES BEGINS TO GET SCALED BACK:

Demand spill over to used, putting further upward pressure on used-car values.

•F UEL-EFFICIENT SEGMENTS VALUES SO FAR THIS YEAR:

Up 20% since January, far cry from steady depreciation of 2009 and 2010.

•T RUCKS AND SUVS HAVEN’T EXPERIENCED BIG GAINS:

Strong w/ only slight declines in last month for most fuel-thirsty segments.

•T WO TRUCK SEGMENTS SEE DROP IN APRIL:

Full-size trucks down 2.4%, while full-size SUVs dropped 1.1%. BY JUAN FLO RES Kelley Blue Book , Director of Vehicle Valuation

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Q&A continued from page 20

I think the economy is going to improve, so banks will come back and capital sources will come back to the subprime industry. - DO N FI N CH ER

has gotten worse and worse, and there is more paperwork to fill out and we are accountable to more agencies than ever before. In Texas, for example, we are accountable to the OCCC, which is the Office of Consumer Credit Commission, and we are accountable to the DMV and the state comptroller and the state attorney general. There are so many people and so many agencies that we are accountable to now, it’s going to continue to be a challenge for all dealers in the future. It’s changed a lot from the way it was when I started in the 1970s when there was very little government involvement in our industry.

QR CODES 101:

What’s your vision for the association?

We need to continue protecting and educating our dealers. We need to keep our dealers in the loop about legislative and compliance issues. We need to continue our legislative efforts in D.C. NIADA, over the years, has been building positive trust in our organization by Washington, enough that they see NIADA as a quality organization with relevant things to say. We, as an organization, need to continue that effort. Educating government about our industry is a top focus for us. I think the services that NIADA has been developing are also very positive; the Certified Pre-Owned program that we launched and the new NIADA iPhone app are just two of the many programs that are helping our dealers to compete in the marketplace. NIADA is definitely proactive and doing a lot of positive things for dealers, probably more than ever before. My vision is to continue that process. NIADA is making a difference and being positive about it!

When your term is finished, how do you want members to remember your leadership period?

Certainly that I worked hard for our dealers, and that I was unwavering in the aspect of being diligent about what NIADA is all about and that I was proactive in legislation and in education. I want them to say we have benefited from the services of NIADA through the leadership of the Association. You know, it’s not just me; it’s the entire board. The executive board we have this next year is awesome, and I can’t imagine a better group. The members are really going to make me look good because they are so good and really quality dealers.

The economy has impacted the industry. In what ways do you see the independent dealer changing as the economy continues to recover?

In the last few years, there’s been a lot of capital that’s exited our business. I see more capital coming back into the business. I think the economy is going to improve, so banks will come back and capital sources will come back to the subprime industry. It’s certainly been hard for us Buy Here-Pay Here dealers in the last few years, but I think it will improve. This economy has certainly taken a lot from us, and it’s been very difficult as a small business owner to make it in this economy; again, that goes back to making changes quickly to adjust to things that are happening quickly. But, as the economy improves and capital comes back in, I think we’ll be able to make money again and it will be a good business again. What can members and the national and state associations do to strengthen the used motor vehicle industry? Be a part of the solution, and get involved. Be proactive with us, and join with us on the state, local and national level. When you join the state association, you automatically become a member of the national association…one set of dues pays for both memberships. There’s strength in numbers and we represent over 20,000 members; the more we have, the better it’s going be for us in Washington. The trust that the members have in us as leaders is a very responsible and awesome role that we have to take very seriously, and I do.

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Green Earth Technologies Making Green Motor Oil and Cleaning Products It’s easy to get burned out on green REPRI NTED - AUTOMOTIVE products being advertised to the DIGEST auto industry and consumers, and it is important to do a little bit of homework to make sure the company isn’t merely “greenwashing.” Green Earth Technologies which domestically produces G-OIL, 5W-30 Motor Oil – an API certified bio-degradable, bio-based, full synthetic green motor oil – the product has been clean and legitimate enough to end up on shelves at Walmart and The Home Depot. Its G-Clean Concentrated formulas now carry the Eco Options label, The Home Depot’s certification for products that meet certain environmental performance criteria for cleaning. Every product with the Eco Options label has less of an impact on the environment than competing products, the company says. Other green auto products offered by the company include G-Clean Glass Cleaner with a plant-based formula, the product has been clean and legitimate Bio-Synthetic 2-Cycle Engine Oil, and enough to end up on G-Clean Mold & Mildew Stain Remover, a shelves at Walmart concentrated dissolvable detergent.

“Westlake Closes $250 Million Securitization with Wells Fargo Securities” Westlake Financial Services, a full-spectrum indirect auto finance company, announces a new $250 million dollar revolving securitization facility with Wells Fargo Securities. The deal closed May 26.

“This latest securitization is another step towards realizing our goal of becoming a programmatic issuer in the market,” says Westlake CFO Paul Kerwin. “Our plan is to issue securitizations this size or larger two to three times per year. Along with our securitizations from last year, we are well on our way to achieving that goal.” President Ian Anderson says the additional capital will help Westlake achieve its aggressive growth strategy for 2011. “Not only are we increasing our dealer base, we also want to help each of our dealers finance more customers. We do this by offering the most flexible programs with competitive rates that cover the entire credit spectrum,” Anderson says. “We are also putting more feet on the ground and nearly doubling our rep force. This type of growth is possible with the support of financial partners like Wells Fargo Securities.” Kerwin adds that he is pleased with the recent securitization’s broadbased investor support as well as the efficiency and professionalism of the Wells Fargo Securities team. “I want to commend the Wells Fargo team for a very smooth transaction and flawless execution,” Kerwin concludes. In related news, Westlake also announced an increase to its revolving securitization facility with Wells Fargo Preferred Capital on April 6. The line was increased from $100 million to $200 million dollars. This is in addition to the existing $365 million facility with Wells Fargo Preferred Capital and three other banks.

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May 10, 2011

Used Motor Vehicle and Parts Commission Report Following convening of the meeting and approval of the minutes of the previous meeting, Chairman John Longacre called on Director John Maile for the Director’s report. Maile

advised the Commissioners that Curt Roggow, legislative liaison for the Commission, was present and would provide an update on pending legislation. He then reported a new administrative assistant had been hired and the Expense Report was included in the agenda packet for their consideration. The Report was approved. Whitehead’s Deputy Director’s Report indicated Commission staff had completed 34 inspections for the period. Staff handled 33 written complaints, seven of which were title issues, 14 had to do with contract violations, six were related to mechanical issues and there were five complaints of a miscellaneous nature. The Commission education program had 28 in attendance. Applicants for a new license and dealers involved in significant rule violations are required to attend the Commission’s education program as a part of acquiring or maintaining a state license. Until further notice, these education sessions are being held at the Commission conference room at 2401 NW 23, Oklahoma City. Classes are held on Monday prior to the Commission meeting on the second Tuesday of each month. The sessions run from 9 a.m. to about noon or 1 p.m. You are asked to make reservations so staff can be prepared to accommodate you. Call the Commission at 405-521-3600 to make your reservations.

REPORT OF CEASE & DESIST LETTERS ISSUED

(These letters direct the individual or business to cease violations of laws or rules) ENTITY

TYPE VIOLATION

CITY

DATE ISSUED

Santiago Alaniz Mohamad Aldada Tom Buckley Frankie Dophied Jose Fuentes Oscar Galvin Victor Golson Sherman Hickerson Sherman Hickerson George Stephens Stout Trucking Pablo Yebra Trejo Pablo Yebra Trejo

Salvage Pool Salvage Pool Used Dealer Used Dealer Used Dealer Used Dealer Salvage Pool Used Dealer Auto Dismantler Salvage Pool Insurance Pool Rebuilder Used Dealer

Tulsa Glenpool Lawton Durant Oklahoma City Oklahoma City Oklahoma City Broken Bow Broken Bow Oklahoma City Anderson Oklahoma City Oklahoma City

04/25/2011 04/25/2011 04/26/2011 04/20/2011 04/01/2011 04/04/2011 04/25/2011 04/27/2011 04/27/2011 04/25/2011 04/27/2011 04/18/2011 04/18/2011

CLOSED COMPLAINT REPORT

These are complaints that have been resolved one way or another. They do not necessarily reflect any wrongdoing on the part of dealers. ENTITY

CITY

A-1 Motor Co. Tulsa Bob Moore Dodge Chrysler-Jeep LLC Oklahoma City Bob Moore Ford LLC Oklahoma City Bob Moore Kia Oklahoma City Brown & Sons Auto Sales Shawnee Bryan County Auto Center Durant Calvary Motors Inc. Catoosa Champ Hinton Used Cars Pocola Checotah Home Center Checotah Credit Connection Auto Sales Inc. Midwest City Credit Connection Auto Sales Inc. Midwest City David Stanley Chevrolet Inc. Oklahoma City David Stanley Chevrolet Inc. Oklahoma City David Stanley Chevrolet Inc. Oklahoma City David Stanley Ford Oklahoma City David Stanley Ford Oklahoma City Fenton Motors Inc. McAlester Fenton Nissan West Oklahoma City Glen Rabe Motors Inc. Ardmore Guaranteed Auto Credit Inc. Oklahoma City Hot Wheels of Oklahoma Motors Norman I-35 Credit Auto Oklahoma City Jackie Cooper Imports LLC Oklahoma City Jim McKnight Motor Co. Tulsa Mike Mowdy Autoplex Midwest City Primeaux Kia Tulsa Regal Car Sales & Credit #5 Lawton Regency Auto Sales Inc. Nicoma Park Roberts Dodge Chrysler Jeep Pryor Rt. 66 Auto Auction of El Reno LLC El Reno Tucker Motor Company Inc. Oklahoma City USA Motor Cars Inc. Tulsa

COMPLAINT

Title Contract Miscellaneous Contract Title Contract Mechanical Contract Title Mechanical Miscellaneous Contract Title Contract Mechanical Contract Contract Title Mechanical Contract Contract Mechanical Contract Miscellaneous Contract Miscellaneous Miscellaneous Title Contract Mechanical Title Contract

RESOLVED

04/04/2011 04/27/2011 04/04/2011 04/04/2011 04/04/2011 04/05/2011 04/04/2011 04/06/2011 04/18/2011 04/13/2011 04/19/2011 04/19/2011 04/19/2011 04/08/2011 04/05/2011 04/19/2011 04/19/2011 04/25/2011 04/07/2011 04/27/2011 04/29/2011 04/25/2011 04/27/2011 04/15/2011 04/21/2011 04/12/2011 04/08/2011 04/04/2011 04/18/2011 04/27/2011 04/27/2011 04/04/2011

LICENSES SUSPENDED OR ABANDONED

In other action, the following licenses were suspended or abandoned: AW Auto Sales, Oklahoma City: Out of business; per owner, Alan West Bocho’s Auto Sales, Tulsa: Out of business; change of ownership Golden Auto Sales & Lease, Tulsa: Out of business; phone disconnected TJ Motors, Oklahoma City: Out of business; phone disconnected Tulsa Truck Depot, Tulsa: Out of business; change of ownership, sold to Boyd Truck Center Inc.

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FTC Closes Investigation, Finds Broad Compliance Among Auto Dealers As we reported in an earlier edition of this newsletter, the Federal Trade Commission had launched an investigation of dealer compliance with the Holder in Due Course Rule as one of its ongoing efforts to ensure auto dealers’ financing practices comply with federal consumer protection laws. We are happy to report the FTC

has now completed investigations of nearly 50 dealers across the country and has found broad compliance with the rule among both franchised and independent auto dealers. The Holder in Due Course Rule protects auto buyers when dealers sell the buyers’ credit contracts to other lenders. Specifically, the rule preserves consumers’ rights to raise claims and defenses against purchasers of consumer credit contracts; with auto sales, it protects consumers who buy vehicles from dealers on credit. When dealers sell credit contracts to lenders, consumers are obligated to pay the lenders instead of the dealers. Under the rule, if a dealer en-

gaged in fraud or made misrepresentations in selling an auto on credit, a consumer could raise the dealer’s conduct as a defense to the lender’s demand for payments. Without the rule, consumers would not have this protection in states that preclude them from asserting against lenders the claims and defenses they have against dealers if the lenders bought the credit contracts in good faith and without knowledge of these claims and defenses. The rule requires dealers to include in their credit contracts a notice that lenders who buy the contracts are subject to the claims and defenses consumers may assert against dealers. It effectively makes lenders liable for dealers’ conduct, and gives them an incentive to work with reputable dealers. In November 2010, the FTC staff asked nearly 50 franchised and independent dealers in 45 states, and two large online dealers, for copies of consumer credit contacts executed after Oct. 1, 2009. FTC

staff ’s review of these contracts found broad compliance with the rule. Because all of the responding dealers disclosed the required Holder Notice in their finance contracts, the FTC staff is closing its investigations of them. The commission also reminds auto dealers their obligations under the Holder in Due Course Rule will expand in the near future. The rule does not require dealers to include the notice in credit contracts exceeding $25,000 in the amount financed. However, as a result of the Dodd-Frank Act of 2010 and corresponding changes to the Truth in Lending Act, the rule will require the notice in these contracts up to $50,000 as of July 21. The commission encourages dealers to review their contracts to ensure they’re in compliance with the expanded scope of the Holder in Due Course Rule. (For more information regarding the referenced change to the Truth in Lending Act, see the June 2011 edition of this newsletter).

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Retail Purchase Agreement Update BY ADR STAFF

To accommodate suggestions by the Used Motor Vehicle and Parts Commission (UMV&PC) staff, OIADA/ADR has created a new Retail Purchase Agreement/Bill of Sale (RPA), entitled Retail Purchase Agreement (Multiform). It carries form number AF 06.2. While this updated form is different from the current RPA, the current form is still in compliance with federal and state laws and rules. The UMV&PC staff suggested the Type of Title space be larger and be made more prominent and there be a space for the buyer to initial the listed Type of Title. The staff also suggested Odometer Disclosure Statements be a part of the RPA and each place where the buyer is required to sign or initial be printed in a different color. To incorporate those suggestions, a longer form was used and a second color was added on page 1. These changes raised the cost of the RPA, so to keep dealers from being saddled with more expense for required forms, the ADR staff included some currently required additional forms within the RPA. Hence, the term Multiform added to the title Retail Purchase Agreement. In addition to the Odometer Disclosure Statements, we have

included the Delivery Confirmation (We Owe) form, and Trade-in Record, all of which are required by the UMV&PC. We also included the Deposit/Down Payment Receipt, Dealer Warranty Statement, and Other Material Understandings and Integrated Documents, all of which are required by federal law. This allows the new RPA to be priced at virtually the same cost as the current three-part RPA plus these other required forms. That provides dealers with seven required forms on one page and lowers the chances of missing a form. Page 2 of the form includes required Additional Terms and Conditions. We have also added directions on the use of the form for the benefit of the consumer and any dealers who are not familiar with it. The new three-part AF 06.2 Retail Purchase Agreement (Multiform) is available from OIADA at 405-232-2947 or 800-346-4232. NOTE: The 405-232-2947 number is designed to roll over to any of four other lines in our office, but has recently not been working correctly. If you encounter a busy signal at the 232 number, please call either the 800 number or any one of the following numbers: 405-799-7116, 405-799-1113, 405799-8115 or 405-799-3759.

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APRIL 2011

OIADA NE W AND RENE WAL MEMBERS

The following list includes members who joined or renewed their OIADA/NIADA membership during April. We express our sincere appreciation for all the members of OIADA and we extend our invitation to dealers who are not members. A membership application can be found elsewhere in this newsletter. We urge you to be an active part of maintaining a strong and effective used car industry voice in the legislative and regulatory environment. With the current Congress, we need that voice more than ever! John Easttom, President

COMPANY

NAME

JOINED CITY

R R R R R R R R R R R R R R R R R R R

Paul Ausbrooks, Jr. Samuel C. Coffin William Eddie James, Jr. Lee Goldey David Stanley Dan Newmon Robert Mulkey Steven Watson Robert M. Hensley Dustin Enlow BMK Motors, LLC Bryan S. Ramsey Auto Tracker Greg Jeter D.C. Enterprises of Tulsa Glen Nimmo Roger Chasteen ADESA Oklahoma Inc. Kevin Harris

1991 1991 1991 1996 1991 1993 1991 1991 1991 2005 2010 1991 2009 2007 2005 1998 2010 2001 2005

Ausbrooks Used Cars Oklahoma Foreign Auto Sales Inc. Green Country Auto Sales Inc. Thrifty Car Sales Inc. David Stanley Chevrolet Harley Davidson World Regal Car Sales and Credit Watson Auto Rental & Sales Hensley’s Auto Sales Enlow Motor Co. BMK Motors LLC Wheels of OKC Car Xpress Walking Man Motors American Auto Mart Nimmo’s Used Cars & Trucks Advantage Motors of Oklahoma ADESA Tulsa Auto Auction Harris Auto Sales LLC

Okmulgee Moore Collinsville Tulsa Oklahoma City Oklahoma City Tulsa Poteau Tahlequah Sapulpa Bristow Oklahoma City Del City Tulsa Tulsa Purcell Tulsa Tulsa McAlester

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License Applicants Approved The following applicants, as listed in the Agenda for the Used Motor Vehicle and Parts Commission Regular Meeting of May 10 were considered for issuance of used motor vehicle dealer licenses and wholesale vehicle dealer licenses. The applications were approved pending compliance with the state licensing laws and rules, and subject to final approval by Commission staff.

Used Dealer Licenses COMPANY

NAME CITY

Ajouly Auto Sales Auto Sales Jalisco Inc.

Hilmi F. Mahmoud Tahani Al-Hakim Javier Herrera

Auto Sales Jalisco Inc. #2

Hector Resendiz Hector Redendiz Javier Herrera

Tulsa

Auto Sales Jalisco Inc. #3

Javier Herrera

Tulsa

Autos By Tim

Hector Resendiz Timofey Kalmykov Andrea Kalmykov

Oklahoma City

Bargain Motors #2

Ronald Renzelman

Ardmore

Boondocks Auto Car Mart of Bartlesville Danny’s Complete Coll. & Auto Sales David Stanley Ford #2

Noah B. Moore, Jr. Jacob Moore Jeffrey Williams Hank Henderson Eddie Hight Danny Ray Beede Emmett Rice, Jr.

Bokchito

Grand Motors Inc. Guaranteed Auto Credit Inc. #2 Heartland Auto JJS Motors Kar Spa M & W Auto Sales Masters Easy Auto Sales lLC Public Auto Auction of Oklahoma

David Stanley Lana Nakvinda Danny Nakvinda David P. Frayer V. Kurt Lewis Verna M. Lewis Linda M. Lewis John Anderson Curtis Sherfield Melvin Wilkinson Muriel J. Gramlich Sherry Masters Alan West

QS Autos Sanagus Motors Smalygo Auto Wholesale Inc. # Specialty Vehicles of Tulsa Spring Creek Auto Sales Street Mods Auto Sales

Jeff Hays Ashraf U. Ahmed Luis Raul Sandoval Kelly William Smalygo Mike Allen Jeffrey Stafford Brandy Hahn

T & L Used Cars Vintage Motors LLC Woody’s Used Truck

Thomas Garbutt Lee Garbutt Nathan York Elwood McMahan

Oklahoma City Tulsa

Bartlesville

Sand Springs Oklahoma City Enid Oklahoma City Tulsa

Claremore Oklahoma City Tulsa Tecumseh Oklahoma City Tulsa Guymon Inola Tulsa Locust Grove Edmond Lawton Oklahoma City Chickasha

Wholesale Used Dealer Licenses King of the Lot Auto Sales Semi Used Inc.

Doni Barnett Debi Saied

John Saied

Oklahoma City Eucha

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Join OIADA And See

More Profit In Your Pocket! Join OIADA and Receive Your 2011 VIP Discount Cards!

Your Dealer Discount VIP Cards are just one of the many benefits of OIADA membership. Their value alone is over four times greater than the $295 annual membership fee. Join OIADA today to get started saving with your own Member-Exclusive Dealer Discount VIP Cards. I-40 Auto Auction, Muldrow Thursday @ 7:00pm: One Buy Fee.

I-35 Auto Auction, Pauls Valley Tuesday @ 7:00 pm: One Buy or Sell Fee up to $75.

165 Auto Auction, Muskogee Wednesday @ 7:00pm: One Buy Fee.

I-40 Auto Auction, Inc., Del City Tuesday @ 6:30pm: One Buy Fee up to $50. One Sell Fee up to $50.

Dealers Auto Auction of OKC Thursday @ 8:30am: One Sell Fee up to $50. One Buy Fee up to $50.

Central Auto Auction - Hwy 37, Tuttle Saturd of each month 10 am: One Free Sell Fee 1st Saturday

ADESA Tulsa Friday @ 9:00 am: One Sell Fee up to $50. One Buy Fee up to $50.

Manheim Missouri - Springfield Thursday @ 9:00am One Sell Fee up to $100. One Buy Fee up to $70.

CarMax Auctions, Oklahoma City location. One Buy Fee up to $50.

Manheim Dallas/Ft. Worth Thursday @ 9:30 am: (Trinity Blvd location) Free Buy Fee. Only available at Thursday sale.

America America’s Auto Auction, Inc. of Tulsa Wednesday @ 2:00pm: Dealers only or Saturday @ 11:00 am: Dealers & Public. One Buy Fee up to $50.

Manheim Metro Dallas Tuesday @ 9:00 pm: Free Buy Fee. Manheim Dallas Wednesday @ 9:00 am or Friday @ 10:00 am Free Buy Fee

Join OIADA and trade with these vendors, and they will more than cover the cost of your membership. That leaves

More Profit In Your Pocket!

When you join or renew your membership in OIADA, you receive a full set of Dealer Discount VIP Cards. These cards are available ONLY to OIADA MEMBERS and are DEALER EXCLUSIVE.

Call (405) 232-2947 or visit http://www.e-oiada.com/join to Join OIADA Today! 29

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Rev 04/26/11

OIADA/ADR ORDER FORM

Order on line at www.buyadr.com Phone 800-346-4232 Fax 405-799-3367

Prices subject to change without notice Date of Order:___________________ Residential Delivery? yes_____ no_____ Requested By: ____________________________________________________ Visa Master Card Discover Amex 3 or 4 digit code # ________________

Credit Card Billing Address:_______________________________________________________________ Expiration Date:________/_________ Signature:______________________________________________ Ship To: ___________________________________________________________________________________ _____Ph.__________________________ Name ________________________________________________________________________ _______________ Fax:_________________________ Physical Address (no P.O. Boxes) _____________________________________________________________________________________________________________________ City, State, Zip Code

Item #

Item Description

Price $

No.

Total $

F01 F02 F03 F04 F04 A F 04 B F04.1 F05 A 127 F05.0 F05.1

All Items in packs of 100 unless otherwise noted Dealer Warranty Disclaimer Odometer Disclosure Statements (3 part) 30 Day Notice (Title Receipt – (1 part perforated)) Buyers Guides – FTC AS IS (2part) Buyers Guides – FTC AS IS 4 seal (2 part) Buyers Guides – FTC AS IS Spanish (2 part) Vehicle Inventory Record (bound book per each) Retail Purchase Agreement (3 part) Wholesale Buyers Order (50) Vehicle Inspection Form (2 part) Privacy Notice – Special Order Required – email mike.morgan@buyadr.com

F05.3 F05.4 F06 F06.1 F06.2 F07.1 F08 F08.3 F09 F09.0 F10.3 F11 F11.1 F13 F13.2 F13.1 F14.6 F14.4 F14.5

Repo Notice of Sale (2 part) Repo Calculation of Return (2 part) Multiform (Retail Buyers Order – Bill of Sale – 3 part) (short form) Multiform (Retail Buyers Order – Bill of Sale – 2 part) (short form) Retail Purchase Agreement – Multiform – 3 part (long form) Poly Stock Window Stickers (per 250) Retail Installment Contract (4 part) Simple Interest Contract – Legal size (5 part) Lien Entry Form MVD-21-A (pad of 100) Agreement to Provide Insurance We Owe Forms (2 part) Used Car Sales Envelope – Deal Jacket (9”X12” Tan – Printed on both sides) Used Car Sales Envelope – Deal Jacket (9”X12” Green) Credit Application Personal Loan Applications Spot Delivery Form Consignment Forms Certificate of Ownership Dismantler’s Forms

17.00 17.00 25.00 18.00 60.00 30.00 50.00 65.00 10.00 40.00 17.00 25.00 25.00 23.00 23.00 18.00 15.00 25.00 25.00

F07 B F10 F10.0 F10.1 F10.2 F10.3B

Stock Window Stickers – Blue___; Blue Blank___; Green___; Red___; Red Blank___ Rigidene Key Tags – (Bag 125) White or Yellow Rigidene Key Tags – (Box 500) White or Yellow Top Stripe Key Tags – (Box 250) Black, Green, Orange, Red Blue, or Pink Protek Key Tags (Box 250) Blue, Red, White, or Yellow EIT (Service Department) Key Tags (Pack of 1,000)

11.00 11.00 40.00 20.00 23.00 23.00

F14 F14.1

Plastic Folders for FTC AS IS (Pack of 25) Plastic Folder Kits for FTC AS IS (Box of 100)

21.00 58.00

S15 S15.1 S15.2

Dealer Tag Magnets (per each) Pan Head Tag Screws (Box of 100) Hex Head Tag Screws ( Box of 100)

7.00 10.00 10.00

10.00 11.00 7.00 15.00 50.00 18.00 14.00 25.00 13.00 17.00

(Continued next page)

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Item # S15.3 S15.4 S15.5 S15.7 S16

Item Description Hex Head Tag Screws (Metric – Box of 100) Nylon Tag Screw Inserts (Box of 100) Tag Thumb Screws (Box of 50) Rubber Tag Holder with Magnet (per each) Rubber Dealer Tag Holder (per each)

S17 S17.1 S17.2 S17.6 S17.3 S17.4 S18 S18.1 S18.2 S18.3 S18.4

Uni Posca Marker (Small – each) White__, Pink__, Yellow__, Red__, Blue__, or Green__ Uni Posca Marker (Medium – each) Green__, Orange__, Red__, Pink__, or Yellow___ Uni Posca Marker (Jumbo - each) Pink___, Red___, White___, or Yellow___ Uni Posca Marker ( Wide – each) Wht.___; Yel.___; Red___; Or.___; Gr.___; Pink___ Lettering Paint Pot w/brush (each) Green__,Blue__, White__, Yel__, Pink__, Red__, Or__ Solid Marker Paint Stick – Solidified Paint (each) Red___, Yellow___, White___, Blue___ Key Board – 32 peg (per each) Key Board – 55 peg (per each) Key Board – 105 peg (per each) Key Board – 38 peg (per each) Key Board – 75 peg (per each)

S20 S21 S21.1 S21.2 S21.4 S21.5 S21.6 S21.7

Floor Mats – Plastic/paper (Box of 500) Rear View Mirror Signs – Various imprints (Packs of 50) Windshield Signs – Various model years (Packs of 12) Windshield Message Signs – Various 3 ½ X14” (Packs of 12) Windshield Number Signs – 7 ½” (Packs of 12) Windshield Number Signs – 9 ½” (Packs of 12) Windshield “Bubble” Number Signs – 3”X4” (Packs of 12) Arched Slogan Signs (Mates with year signs) (Packs of 12) (list desired imprints here) TM

A 100 A 101 A 102 A 116 A 119 A 120 A 121 A 123 A 123 S A 123 F A 124 A 125 A 126 A 130 A 140 A 141 A 144 A 145 A 214 B 50.1 B 50.2 B 52 B 54 B 55 B 53

$ Price 10.00 7.00 10.00 16.00 12.00

No.

$Total

4.00 5.00 7.00 9.50 9.95 4.00 45.00 65.00 105.00 50.00 88.00 69.00 14.00 6.95 3.50 3.50 3.50 2.00 4.50

TM

FEX (formely DOX – DealerCap ) Forms (Dealership protection): Customer Proposal Trade-in Vehicle Appraisal Test Drive Agreement Used Vehicle Limited Warranty Authorization to Release Payoff Information Notice to Co-Signer Insurance Coverage Acknowledgement Delivery Confirmation and Acknowledgement (also covers “We Owe” Items) Delivery Confirmation (Spanish) Delivery Confirmation (for sales in language other than English or Spanish) Customer Delivery Checklist Acknowledgement of AS IS Sale Good Will Repair Acknowledgement Retail Purchase Agreement Interpreter’s Acknowledgement of Confirmation Service Loaner Agreement Agreement to Arbitrate Retail Lease Agreement Carbonless Receipt Books (meets federal requirements) (200 numbered receipts)

23.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00 32.00 23.00 23.00 23.00 32.00 24.00

NADA Used Car Guide (Annual Subscription $90.00) (per each) NADA Older Car Guide (Annual Subscription $72.00) (per each) Black Book Weekly Guide (Annual Sub. $121.00) (per each) Black Book Truck & Van (Annual Sub. $101.00) (per each) Black Book Old Car Monthly Guide (Annual Sub. $86.00) (per each) Black Book CPI Collectible Vehicle Value Guide (per each) Weatherproof Temporary Tags – To help you to comply with the new law on Temporary Tags, OIADA now supplies weatherproof tags that comply with the UMV&PC Rules. See temporary tag order form elsewhere in this document

8.00 27.00 8.00 10.00 10.00 10.00

OTHER Notes: Member Discount is 10% Order on line at www.buyadr.com Shipping is by UPS Ground - Place your order by 2:00 pm and it will be shipped that day to arrive at your door the next business day. Make checks payable to OIADA. Payment due upon receipt - Net 10 days - 2% per month late payment OIADA managed by ADR of Oklahoma CASH

CHARGE

Check #_________

Visit our Web Page: www.buyadr.com

Shipping & Handling Chart Order Value Amount $ 1.00 $ 30.00 $ 9.50 $ 30.01 $ 50.00 $ 10.50 $ 50.01 $100.00 $ 12.50 $100.01 $130.00 $14.50 $130.01 $150.00 $15.50 $150.01 $200.00 $16.50

ORDER TOTAL MBR DISCOUNT 10%

SUB-TOTAL SALES TAX SHIPPING C.O.D. CHARGE Add $6.00 for residential addr. TOTAL DUE OIADA

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Dealers: Drivers are Noticing Headlights These Days Automakers going bug-eyed over LEDs.

Those twinkling lights on the fronts of luxury cars are starting to find their way into the mainstream. High-end brands, led by Audi a few years ago, were first to distinguish the look of their cars with strings of small light-emitting-diodes, or LEDs, next to the headlights. As costs for the lights come down, they are showing up on moderately priced and even entry-level models. Check these out: • Kia added LEDs for daytime running lights for its redone 2012 Soul small crossover and Rio entry-level subcompacts. The Soul will offer a double deck of the lights below each headlight and two rows in the taillights. • Volkswagen rims the round headlights of new 2012 Beetle with a necklace of LED daytime running lights. • Chrysler now has a “light pipe” of LEDs in the headlights of its midsize 200 and plush 300 sedans. • Ford chose LEDs for the parking lights/turn signals of its redone 2013 Taurus full-size sedan, coming early next year. It sports LED taillights too. LEDs are proving to be cost-effective and an added safety feature, but they’re more than that, as fun LEDs can add character, personality with a custom touch, depending upon which pattern you choose.

As costs for the lights come down, they are showing up on moderately priced and even entry-level models.

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OK_0711_T  

Oklahoma Independent Automobile Dealers Association • Alert: Dealer Fined For Violations • Retail Purchase Agreement Update • Odometer Discl...

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