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Oklahoma Independent Automobile Dealers Association

DEALERS’ RESOURCE October 2011

Dealing With The Fox. In This Issue

• Does Your Dealership Rely on Carfax? • CAFE Standards for HD Trucks • KBB Used Value Forecast • Document and Computer Disposal

Change Service Requested DALLAS, TEXAS Permit No. 2079

PAID

PRSRT Standard U.S. Postage

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

Visit Us Online At www.e-oiada.com OK_1011.indd 1

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INSIDE

MAGAZINECONTENTS

6 Does Your Dealership Rely on Carfax? 8 CAFE Standards for HD Trucks 9 KBB Used Value Forecast 10 Document and Computer Disposal

ADVERTISERSINDEX 71B Auto Auction .............................................13 ADESA......................................Inside Back Cover Albright Insurance............................................... 7 AutoTrader.com................................................... 5 Dealer’s Auto Auction of OKC............ Back Cover GM Cluster Repair............................................11 Jordan Insurance................................................. 9 Loftis & Wetzel Insurance..................................21 Manheim.com....................................................18 Manheim North Texas.............. Inside Front Cover Protective...........................................................15 SmartAuction.....................................................17 United Acceptance............................................19

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 ART/PRODUCTION MGR. Christy Haynes • christy@niada.com PRINTING Nieman Printing

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

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

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

OIADA CONTACT INFO Primary Number (OKC): 405-232-2947 Toll Free: 800-346-4232 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.

Commission Fines Dealer

At its Aug. 9 meeting, in accordance with staff recommendations, the Used Motor Vehicle and Parts Commission approved the levying of fines against two dealers for violations of UMV&PC law and rules. Following investigation by commission staff, Larry Case of Wholesale Auto Brokers agreed to pay the sum of $2,000 as payment of $500 for each of the four years he failed to notify the Commission of his correct business address. As result of another investigation, the Commission approved the levying of a $1,000 fine against Sean Childress of Main Street Autos LLC for failure to license two salespersons that had been employed since March 2011. BY ADR STAFF

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AutoTrader.com’s Dealer Learning Center Gives Dealers Free Online Access To Educational Resources

We were very thoughtful with the development of this site, taking into consideration how different visitors may prefer to learn as well as browse the content.

In an effort to help dealers leverage the Internet to effectively advertise online, AutoTrader.com has launched its Dealer Learning Center (DLC). This online educational

portal brings on-demand video tutorials, topical articles, proprietary and independent research, best practices and marketing handbooks to the dealer community at no charge. Dealers and their staffs can anonymously access these resources at www.dealerlearningcenter.com. As the go-to place for educational content on a variety of online marketing and research topics, the DLC includes information on online merchandising best practices, industry insights, video, social, mobile, chat and more. Dealers can also find important research studies such as the 2011 Polk Automotive Buyer Influence Study and the Northwood Dealer Walk-In Study. “This is yet another way that AutoTrader. com is fulfilling our promise to the dealer community: We Work for You,” said Chip Perry, president and CEO at AutoTrader.com. “We only win if our customers win, so we have been continually focused on ensuring that they have all the tools and resources necessary to be successful. From transforming our sales team into true advertising consultants a few years ago to creating more robust educational programs and resources, AutoTrader.com is bringing the latest information on effective online marketing and merchandising to the dealer community.” The Dealer Learning Center is an extension of the already robust programs AutoTrader. com offers through its Dealer Learning team, which supports the educational needs of dealers through hands-on learning. Comprised of automotive experts with extensive dealership experience, the Dealer Learning Team aims to help dealers use the Internet as a tool to drive shoppers to their showrooms as well as integrate online best practices with in-store processes that maximize operational efficiency. In addition to directly serving the dealer body with an array of educational materials, the Dealer Learning Center will also enable AutoTrader.com advertising consultants to enhance their interactions with their customers by providing facilitated learning that aligns with their customers’ objectives. Visitors can also see a schedule of upcoming events with information about the local market educational workshops being conducted throughout the country. These workshops are open to AutoTrader.com dealer customers, and in many cases, non-customers. Visitors can also learn about the AutoTrader.com Dealer Learning team and read workshops descriptions. The Dealer Learning Center was designed

for ease of use and to provide visitors learning flexibility on the topics important to them. For example, they can watch a 10-15-minute video tutorial on a topic of their choice or read an article on the same topic. It also lets dealers rate the educational resources on a five-star rating scale to help other users determine which assets contain the most valuable content to serve their educational needs. Furthermore, the DLC features full-site search capabilities to help users immediately locate the information they seek. Finally, the DLC offers a variety of ways for dealers to keep up to date with the most recent resources and events added to the site. Dealers can opt in to a monthly email update, which gives a rundown of all new content that has been uploaded to the site during the previous month, they can subscribe to an RSS feed, or they can visit the site’s overview page to stay informed. “We were very thoughtful with the development of this site, taking into consideration how different visitors may prefer to learn as well as browse the content. Our priority is to accommodate and facilitate dealer learning, not only in person but also online,” said Eddie Cawley, director of dealer learning. “Our educators have retail automotive backgrounds, and they are interacting with dealers and their staffs every day. They understand the pain points of dealerships and have insight into what educational information they are hungry for. The content on the DLC speaks directly to the feedback we’re hearing from the field, and it will continue to evolve and grow.” Allyson Estes, Director of Industry Relation & Dealer Learning, explained further. “As an industry, we face new challenges all the time. AutoTrader.com has tremendous access to resources, research, and best practices about effective online marketing. It is our responsibility to share that information with the dealer community so that the industry as a whole is successful.” “We rely on dealers for learning just as much as they rely on us. It’s two-way sharing. This learning center is a new way to foster that communication,” she said. Two of the most popular workshops the team is asked to conduct are OnLot2Online and Customer Connections. According to the workshop description for OnLot2Online, three out of four consumers are shopping online for cars, and they expect the same level of customer service online and offline – from reception to selling and financing. As a result, today’s dealerships require an integrated approach in order to convert prospects into customers and create ongoing customer loyalty. OnLot2Online was designed around this

concept and focuses on how to take in-store best practices and move them into the online space. This program covers creating an “Internet Culture” at the dealership among all employees, aligning the online and offline retail shopping experience for shoppers, effective online merchandising tactics, new platforms to engage and influence car shoppers, and methods for tracking and sourcing dealership traffic. Customer Connections offers insight into how dealerships can engage and respond to online shoppers when they call, email, or walk in to the dealership. Additionally, it covers the dealership’s role and the dos and don’ts of new consumer engagement platforms such as live chat and social media-dealer rating sites. It also identifies various channels in which today’s shoppers contact the dealership and explains what shoppers are looking for from the dealership experience. Workshop participants also have an opportunity to practice effective methods for addressing and engaging shoppers. “Our workshops are very interactive. It creates an environment where dealers can also learn from each other. It’s an excellent way to reinforce learning and discover new ways that dealers make the Internet work for them. We are able to share many of the best practices that are working for dealers in other markets as well as the findings from performance metrics on AutoTrader.com,” said Eddie Cawley. The Dealer Learning team also conducts workshops on other topics like business transparency and inventory acquisition. The workshops are customized so that the information is relevant to the audience. “Different dealerships have different needs based on a variety of factors, so we take that into consideration when coming to a market or dealership to conduct a workshop. We want the content to be meaningful to the dealers in the room,” Cawley said. The Dealer Learning Center offers a new, effective format for extending the lessons from interactive workshops the Dealer Learning team conducts around the country. This online platform offers an immediate way for dealers to access these helpful insights about effective online marketing. Dealers can learn more at www.DealerLearningCenter.com.

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HotTopics

Does Your Dealership Rely On Carfax History Reports? Among the many laws and rules dealers must follow or suffer the consequences if caught are federal and state laws known as Unfair and Deceptive Acts and Practices (UDAP). Penalties for conviction of such practices are severe and dealers need to take every precaution to avoid such penalties. Nevertheless, Carfax, a

Carfax is dependent upon the accuracy of the data supplied to them by such entities. Although the data is not verified by Carfax, it is offered with the implication that it is accurate and factual (and much of the data is accurate and factual). BY ADR STAFF

tool that consumers are cajoled through various means of advertising to use when it comes to purchasing a vehicle, is currently promoted in a way that may force dealers to unintentionally violate the UDAP laws. To reap extra revenues, Carfax has devised a scheme to force dealers into buying Carfax history reports or risk losing reputations and customers. In a nationwide television campaign targeted at car buyers, consumers are being conditioned to say “Just show me the Carfax” when they walk into your dealership. In the same commercials, consumers are also being led to believe a dealer may not be reputable if he doesn’t offer the consumer a free Carfax vehicle history report when asked to do so. Of course, Carfax expects the dealer to pay for that free report to satisfy the consumer’s request. Carfax receives its data from many different sources, including motor vehicle agencies in the U.S. and Canada, auto auctions, service facilities, dismantlers, insurance companies, etc. Carfax is dependent upon the accuracy of the data supplied to them by such entities. Although the data is not verified by Carfax, it is offered with the implication that it is accurate and factual (and much of the data is accurate and factual). But Carfax puts disclaimers on its reports disclaiming any liability for the data, thus relieving Carfax of the liability for any inaccurate data a dealer may receive. However, that fact is not highlighted in its ads. Consequently, Carfax has a history of producing inaccurate reports that are very difficult or often impossible to get corrected. This poses problems for dealers because they are ultimately responsible to their customers and subject to prosecution for violation of the UDAP laws, while Carfax, the entity that cajoled the dealer into using its report, comes out without penalties. The consumer needs to be made aware of the potential for these reports to contain some inaccuracies. Carfax is not

going to tell the consumers, so it’s up to the dealer to make the consumer aware the information they receive in their so-called free Carfax report may contain errors or inaccuracies (or, for that matter, errors may exist in any vehicle history report where data cannot be verified as accurate) and that the dealer is not responsible to the consumer for those errors. That information may be posted on signs in the dealer’s office or showroom, but to be effective, that disclaimer must be noted in the retail purchase agreement signed by the consumer. To add insult to injury, Carfax has also taken on the responsibility of pricing a dealer’s vehicles for their customers, using data from various entities and an algorithm which produces numbers that Carfax represents as adjusted retail book value for vehicles that its personnel has never seen. So, with this additional service which is provided to the consumer as opposed to the dealer, how is it that Carfax can make material representations about the condition of a vehicle, suggest an adjusted retail book value without ever having inspected the vehicle and not be subject to the same unfair and deceptive acts and practices law applied to dealers? How can you deal with this intrusion on your business? At the 2011 NIADA Convention, where Carfax was called up on the mat for these practices, Scott Fredrick, vice president, provided what he said was his cell phone number (703-2172666) so dealers could call him directly if you need to resolve issues with Carfax reports. You can also call Carfax President Dick Raines at 703-934-2664 or VP of Data Gerry Bayer at the same number with the extension of 4452. You deserve answers because it’s your business that they are impacting. After all, dealers breathed life into Carfax in its early days and with an estimated 50 percent of the Carfax business still coming from dealers, it may be time to let Carfax feel the effects of its policies and practices by declining to use its vehicle history reports. “NOTE: After this publication went to press, NIADA reported that CARFAX had removed the references to “Free” CARFAX Reports from its advertising.”

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Auto Warranties, Routine Maintenance and Repairs: Is Using the Dealer a Must?

BY ADR STAFF

The Federal Trade Commission (FTC) recently restated its position dealers cannot void warranties simply because routine maintenance or repairs were performed by someone else, such as an independent mechanic, a retail chain shop, or the vehicle owner. The Magnuson-Moss Warranty Act, which is enforced by the FTC, makes it illegal for manufacturers or dealers to claim a warranty is void or to deny coverage under the warranty simply because someone other than the dealer did the work. That said, there may be certain situations where a repair may not be covered. For example, if a non-dealer replaced a belt improperly and the vehicle engine is damaged as a result, the manufacturer or dealer may deny responsibility for fixing the engine under the warranty. However, according to the FTC, the manufacturer or dealer must be able to demonstrate it was the improper belt replacement – rather than some other defect – that caused the damage to the engine. The warranty would still be in effect for other parts of the car. In addition, the FTC stated using aftermarket or recycled parts are not a sufficient basis for a dealer or manufacturer to void the warranty. An aftermarket part is a part made by a company other than the vehicle manufacturer or the original equipment manufacturer. A recycled part is a part that was made for and installed in a new vehicle by the manufacturer or the original equipment manufacturer, and later removed from the vehicle and made available for resale or reuse. The Magnuson-Moss Warranty Act makes it illegal for companies to void your warranty or deny coverage under the warranty simply because an aftermarket or recycled part was used. Still, if it turns out the aftermarket or recycled part was itself defective or wasn’t installed correctly, and it causes damage to another part that is covered under the warranty, the manufacturer or dealer has the right to deny coverage for that part and charge for any repairs. The FTC says the manufacturer or dealer must show that the aftermarket or recycled part caused the need for repair before denying warranty coverage.

* FOR ACCOUNTS THAT QUALIFY / ACCEPTABLE WITH UNDERWRITING

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USA Budget

BY DAV I D T H O M A S, C H I E F E X E C U T I V E O F F I C E R , E Q U I TA S C A P I TA L A DV I S O R S L L C

It cannot get any simpler than this. Congress sets a federal budget every year in the trillions of dollars. Few people know how much money that is so we created a breakdown of federal spending in simple terms. Let’s put the 2011 federal budget into perspective: • U.S. income: $2,170,000,000,000 • Federal budget: $3,820,000,000,000 • New debt: $1,650,000,000,000 • National debt: $14,271,000,000,000 • Recent cut: $ 38,500,000,000 (about 1 percent of the budget) It helps to think about these numbers in terms we can relate to, so let’s remove eight zeros from these numbers and pretend this is the household budget for the fictitious Jones family. • Total annual income for the Jones family: $21,700 • Amount of money the Jones family spent: $38,200 • Amount of new debt added to the credit card: $16,500 • Outstanding balance on the credit card: $142,710 • Amount cut from the budget: $385 So, in effect, last month, Congress or, in this example, the Jones family sat down at the kitchen table and agreed to cut $385 from its annual budget. What family would cut $385 of spending to solve $16,500 in deficit spending? It is a start, although hardly a solution. Now after years of this, the Jones family has $142,710 of debt on its credit card (which is the equivalent of the national debt). You would think the Jones family would recognize and address this situation, but it does not. Neither does Congress. The root of the debt problem is that the voters typically do not send people to Congress to save money. They are sent there to bring home the bacon to their own home state. To effect budget change, we need to change the job description and give Congress new marching orders. It is awfully hard (but not impossible) to reverse course and tell the government to stop borrowing money from our children and spending it now. In effect, what we have is a reverse mortgage on the country. The problem is that the voters have become addicted to the money. Moreover, the American voters are still in the denial stage, and do not want to face the possibility of going into rehab.

HotTopics

CAFE Standards For Heavy Duty Trucks Under new rules announced by the Obama administration in August, the nation’s fleet of medium- and heavyduty trucks will be required to meet fuel efficiency and greenhouse gas emission standards for the first time ever beginning in 2014. The standards were developed jointly

BY ADR STAFF

by the U.S. Department of Transportation (DOT) and the Environmental Protection Agency (EPA), with input from the trucking industry, the State of California, and leaders from the environmental community. The new program sets fuel efficiency and greenhouse gas emission standards for three categories of medium-and heavy-duty trucks beginning in model year 2014: 1. Certain combination tractors – commonly known as big rigs or semi trucks – will be required to achieve up to about 20 percent reduction in fuel consumption and greenhouse gas emissions by model year 2018, saving up to 4 gallons of fuel for every 100 miles traveled. 2. For heavy-duty pickup trucks and vans, separate standards are required for gasolinepowered and diesel trucks. These vehicles will be required to achieve up to about 15 percent reduction in fuel consumption and greenhouse gas emissions by model year 2018. Under the finalized standards a typical

gasoline or diesel powered heavy-duty pickup truck or van could save one gallon of fuel for every 100 miles traveled. 3. Vocational vehicles – including delivery trucks, buses, and garbage trucks – will be required to reduce fuel consumption and greenhouse gas emissions by about 10 percent by model year 2018. These trucks could save an average of one gallon of fuel for every 100 miles traveled. According to the EPA’s regulatory announcement, the new standards will save a projected 530 million barrels of oil over the lifetime of vehicles built for model years 2014 through 2018. They further estimate the increased fuel efficiencies will result in a $50-billion savings for owners and operators and a $49-billion benefit to society. These announced standards affect model years 2014 through 2018. The agencies are considering a next phase of rules for this sector, as they believe there are more opportunities to reduce greenhouse gas emissions and fuel use from the heavy-duty fleet for model years beyond 2018. The agencies’ stated goals include spurring innovation as well as updating the assessment of actual emissions and fuel use from this sector. Such future regulation would also be designed to align with similar programs developed outside the U.S.

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New Vehicle Sales, Leasing Slumps to Impact Used Values for Years to Come Kelley Blue Book, the leading provider of new and used vehicle information, in August predicted the new vehicle sales and leasing slumps of recent years will impact used values for years to come. Current supply reductions, caused by the decline in

new vehicle sales since 2008 and the drop in leasing throughout 2008, will play a very prominent role in the wholesale used market for years into the future, as covered in the company’s recently released Blue Book Market Report for August 2011. In response to supply reductions, the average value of a 1-3-year-old used vehicle has increased from $15,000 in 2008 to more than $23,000 in 2011, an average increase of nearly 16 percent each year. It will take several years of strong new sales to replenish the shortage of used vehicles driving values up today. “While the pace of used-car appreciation is likely to subside as supply, and ultimately sales, improve, we expect used-vehicle values to remain strong for the next two to three years,” said Alec Gutierrez, manager of vehicle valuation for Kelley Blue Book. “While depreciation typically affects a vehicle’s value most in the first two years of ownership, it will not be as pronounced as it would have been a few years ago when the used-car supply was still very high. Consumers who plan to sell or trade-in a used car soon will likely see their vehicle hold its value well. Alternatively, shoppers in the market for a used car will continue to pay more, making it difficult to buy at a discount.” Kelley Blue Book updates its vehicle values weekly to reflect the latest in changing market conditions. Consumers can visit www.kbb.com

to get up-to-date new and used vehicle values information and much more, always free of charge. The monthly Blue Book Market Report explores the state of the automotive industry by analyzing Kelley Blue Book® Wholesale Lending Values. The report also discusses developments in residual values and trends in monthly used-car shopper activity on kbb.com. To subscribe to the monthly Blue Book Market Report, please e-mail pr@kbb.com For more information and news from Kelley Blue Book’s kbb.com, visit www.kbb.com/media/, follow us on Twitter at www.twitter.com/ kelleybluebook (or @kelleybluebook), or like our page on Facebook at www.facebook.com/kbb. Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the only vehicle valuation and information source trusted and relied upon by both consumers and the industry. Each week the company provides the most market-reflective values in the industry on its top-rated website www.kbb.com, including its famous Blue Book Trade-In and Retail Values, and Fair Purchase Price, which reports what others are paying for new vehicles this week. The company also provides vehicle pricing and values through various products and services available to dealers, auto manufacturers, finance and insurance companies, as well as governmental agencies. Kbb.com is a leading provider of new vehicle prices, used vehicle values, reviews, new and used vehicles for sale and dealer locations. Kelley Blue Book Co., Inc., is a wholly owned subsidiary of AutoTrader.Com.

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Disposing of Consumer Information January 2012 will be here in a very few short months. It will soon be time

to close out books for this year and make preparations for the next. For many of you, that will include disposing of customer and employee records that have exceeded their retention dates. It may also mean replacing older computer equipment with new. As with most things in the used auto business, however, the federal government has rules. Two rules, in fact, governing disposition of personal records, whether stored on paper or in a digital format. The rules say you can’t just throw certain records in the trash. All institutions under the jurisdiction of the Federal Trade Commission that hold consumer report information are subject to the Disposal Rule. In addition, all financial institutions under FTC’s jurisdiction are subject to the Safeguards Rule with regards to nonpublic personal information. If your dealership is involved in the consumer credit process, then you are considered a financial institution. Accepting credit applications and referring applicants to specific thirdparty lenders are activities considered to be involvement in the credit process. For purposes of these two rules, sensitive

consumer information is much more than just an individual’s Social Security number. The Disposal Rule (derived from the Fair and Accurate Credit Transactions Act of 2003) dictates any information, or compiled listing of information, based upon or drawn from consumer reports must be disposed of in a specified manner. The information may be relevant to employees or to customers. The Safeguards Rule (derived from the Gramm-Leach-Bliley Privacy Act) is concerned with personally identifiable financial information, whether presented individually or in a compiled list. Personally identifiable financial information includes any information a consumer provided to you in order to obtain credit, as well as any information regarding or referencing that credit. Examples of sensitive consumer information covered by the two rules include: a.  Consumer report information for employees or customers. b.Information a consumer provides to you on an application to obtain credit. c. Customer account balance information. d. Customer payment history.

BY ADR STAFF

e. A  ny information about your customer if it is disclosed in a manner that indicates that the individual is or has been your customer in a credit transaction. For example, a monthly sales report for your dealership showing names and addresses of customers and indicating that particular customers were credit customers would be considered nonpublic personal information. In accordance with the Disposal Rule, paper (or other hardcopy) records containing sensitive consumer information should be burned, pulverized, or shredded so that the information cannot practicably be read or reconstructed. Digital records should be erased or the media physically destroyed. Be aware that deleting a computer file is not the same as erasing it. Deleting the file is not adequate destruction. A separate article in this publication, titled “Computer Disposal,” includes guidance for proper disposal of computers and digital records. So, this year when you are ready to clean out files, remember – you can’t just throw certain records in the trash. The federal government has rules.

IRS News for Business, September 2011 H 312: The Federal Unemployment Tax Act (FUTA) surcharge has expired and the tax percentage is reduced.

IR 11-77: Truckers and other owners of heavy highway vehicles have until Nov. 30 to file their next federal highway use tax return, which is usually due Aug. 31. Disaster areas in North Dakota, Montana, Oklahoma, Illinois and several other states have been declared for individual assistance. To find specific counties in affected states, visit www.fema.gov, scroll down to the map, and click on the state in question. When you click on a listed disaster, you will see a tab for designated counties. Recordings of the following webinars are now available on the IRS Video Portal at www.irsvideos.gov: • Reporting Foreign Financial Accounts on the FBAR • The Examination Process for Employment Tax Returns IRS customers can place orders for the 2012 IRS Tax Calendar for Small Business and Self Employed, Publication 1518. The

calendars will ship in late-November. To order, visit the IRS Small Business Products Ordering page at www.irs.gov/businesses/ small. Interim guidance SBSE-05-0711-044 states the trust fund recovery penalty may be assessed against third-party payroll service providers, as well as the employer. While the employer is ultimately responsible for the payment of the entire tax, a trust fund recovery penalty, depending on the circumstances, can be assessed against any responsible party including the third-party payroll service provider. IR 11-73: Taxpayers are encouraged to be on their guard against those who would encourage them to file tax returns with false claims to get refunds to which they are not entitled.

expenses incurred in traveling away from home. Beginning this year, the IRS plans to publish a revenue procedure providing the general rules and procedures for substantiating these expenses (omitting the high-low substantiation method) and a notice providing the special transportation rate. The IRS plans to discontinue publishing the per diem revenue procedure annually but will publish modifications as required. Form 14157 can be used to make a complaint about a tax preparer.

TRAVEL REIMBURSEMENTS Announcement 11-42 advises taxpayers the IRS intends to discontinue authorizing the high-low per diem method for substantiating lodging, meal, and incidental

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ComputerDisposal IF YOU USE YOUR HOME OR PERSONAL COMPUTER FOR BUSINESS PURPOSES, CHECK WITH YOUR EMPLOYER ABOUT HOW TO MANAGE INFORMATION ON YOUR COMPUTER THAT’S BUSINESS-RELATED. If you want to get rid of your old computer, options include recycling, reselling and donating. But before you log

off for the last time, there are important things to do to prepare it for disposal. Computers often hold personal and financial information, including passwords, account numbers, license keys or registration numbers for software programs, addresses and phone numbers, medical and prescription information, tax returns and other personal documents. Before getting rid of your old computer, it’s a good idea to use software to wipe the hard drive clean. If you don’t, consider your old hard drive a 21st century treasure chest for identity thieves and information pirates. The Federal Trade Commission (FTC), the nation’s consumer protection agency, says you can deter identity theft and information privacy by taking a few preventive steps. Understanding Hard Drives: A computer’s hard drive stores data, and maintains an index of files. When you save a file, especially a large one, it is scattered around the hard drive in bits and pieces. Files also are automatically created by Internet browsers and operating systems. When you open a file, the hard drive checks the index, then gathers the bits and pieces and reconstructs them. When you delete a file, the links between the index and the file disappear, signaling to your system that the file isn’t needed any longer and that hard drive space can be overwritten. But the bits and pieces of the deleted file stay on your computer until they’re overwritten, and they can be retrieved with a data recovery program. To remove data from your hard drive permanently, it needs to be wiped clean. Cleaning Hard Drives: Before you clean your hard drive, save the files that are important to you on an external storage device – for example, a USB drive, a CD, or an external hard drive – or transfer them to a new computer. Check your owner’s manual, the manufacturer’s website or its customer support line for information on how to save data and transfer it to a new computer. Utility programs to wipe your hard drive are available both online and in stores where computers are sold. They’re generally inexpensive; some are available on the Internet for free. Wipe utility programs vary in their capabilities; some erase the entire disk, while others allow you to select files or folders to erase. They also vary in their effectiveness; programs that overwrite or wipe the hard drive many times are very effective; those that overwrite or wipe the drive only once may

not prevent information being wiped from being recovered later. If your old computer contains sensitive information that would be valuable to an identity thief, consider using a program that overwrites or wipe the hard drive many times. Or, remove the hard drive and physically destroy it. One more thing to keep in mind: If you use your home or personal computer for business purposes, check with your employer about how to manage information on your computer that’s business-related. The law requires businesses to follow data security and disposal requirements for certain information that’s related to customers. Disposal Options: Once you have a clean computer, here’s how to dispose of it: • Recycle it. Many computer manufacturers have programs to recycle computers and components. Check their websites or call their toll-free numbers for more information. The Environmental Protection Agency (EPA) has information on electronic product recycling programs at www.epa.

www.OnGuardOnline.gov gov/epaoswer/hazwaste/recycle/ecycling/ donate.htm. Your local community may have a recycling program. Check with your county or local government, including the local landfill office for regulations. • Donate it. Many organizations collect old computers and donate them to charities. • Resell it. Some people and organizations buy old computers. Check online. Keep the environment in mind when disposing of your computer. Most computer equipment contains hazardous materials that don’t belong in a landfill. For example, many computers have heavy metals that can contaminate the earth. The EPA recommends you check with your local health and sanitation agencies for ways to dispose of electronics safely. Note: OnGuardOnline (www. OnGuardOnline.gov) provides practical tips from the federal government and the technology industry to help you be on guard against internet fraud, secure your computer, and protect your personal information.

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IndustryNews

Inventory Acquisition 101 No need to overthink and thus overcomplicate things. The hottest topic right now in the Buy Here-Pay Here world has to be inventory.

When shopping for a new or additional auction sources, do not limit it to just the large national auctions. Independent auctions are becoming very aggressive in going after dealer business as well. I may be a little old fashioned, but have always preferred the independent auction as they seem to provide better service and an overall buying and selling experience. BY B R E N T C A R M I C H A E L

Not only where, but what and how to find and purchase it. Like most other areas of the BHPH business, the most successful dealers are focusing on the basics in this area, too. They are firm believers in the KISS (keep it simple, stupid) philosophy. No need to overthink and, thus, overcomplicate things. The first basic they are focusing on regarding inventory acquisition is repeat business. For the more successful dealers, between 30 and 40 percent of their monthly sales are from repeat customers. These will be either lowbalance customers traded into a new vehicle or previously paid-out customers that have returned to purchase again. So 30 to 40 percent of their monthly inventory need is satisfied with vehicles they have a history of and with; that’s pretty valuable information to have when it comes to the vehicles we deal with. Recycling of repossessions is the next basic to focus on. With these, you have the ability and time to completely check the vehicle out to determine its reconditioning need. You also have some historical information for the vehicle. The dealers I have the privilege of working with are recycling on average 60 percent of their repossessions each month to put back out on the lot for sale. The only negative seems to be that the recycled vehicles tend to have a higher reconditioning cost. They seem to need a little more love to get them lot ready but overall are more cost effective than purchasing at auction. Speaking of auctions, they are a basic that should not be overlooked. It is true that there are not as many vehicles going across the block these days, but it is still an effective source. The positive to vehicle volumes at auction being down is that they are becoming very competitive with one another for dealer business. Some auctions are even waiving buy or post sale inspection fees. There is no better time to expand your horizons and check out as many auctions as travel and expense will allow. When shopping for a new or additional auction sources, do not limit yourself to just the large national auctions. Independent auctions are becoming very aggressive in going after dealer business as well. I may be a little old fashioned, but have always preferred the independent auction as they seem to provide better service and an overall buying and selling experience.

I also recommend utilizing the World Wide Web in aiding in the search for an auction honey hole. Most auctions, national and independent, are posting most, if not all, of their upcoming sale vehicles, but post-sale information as well. Most are utilizing Smart Auction, Open Lane, and or OVE for the posting. These are also great resources for the dealer to not only purchase vehicles from the comfort of their office but also to research what auctions have available to know where your next auction visit needs to be. You might just stumble on an auction you weren’t even aware existed. A final basic in the kissing of inventory acquisition would be dealer trades. New car sales are down so this is not the source it once was, but still should not be overlooked. It won’t fill the overall need, but still could fill a partial need. I think the key here is personal contact with the dealer. I’m seeing too many buyers just calling the dealer asking what they have instead of taking the time to actually visit the dealers. Not necessarily a basic, but a stone that should not go unturned would be the private seller. Craigslist, eBay, newspapers and auto magazines are all sources to find vehicles. I, too, used to turn my nose up at this stone feeling it wasn’t worth the time and effort, but with today’s economic challenges, there are sellers out there who simply need the money to get by and are far more reasonable in their expectations. Will it fill the lot? No, but it could fill part of it and that is what counts. As for how to KISS the what and how to acquire inventory, I think it comes down to two very simple questions. How much do you have in the bank account? And how much of that are you willing to spend? There still is enough inventory available as long as you are willing to pay for it. Values are a little out of control right now but have seemed to have leveled off a little in the last month. Finding the right inventory for the right price is still possible. The key will be not to overthink and, thus, overcomplicate it. If you focus on the basics and keep it simple, you will be working smarter and not harder. Brent Carmichael Executive Conference Moderator NCM Associates Inc. bcarmichael@ncm20.com

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LocalLending

Taking the Local: Riding Your Credit Union to Profits

What I like is that they work with us. We can call in a potential deal. If they turn down the deal, we can work with them, and maybe change some of the conditions of the deal – bigger down payment or a shorter term. BY J I M S T I C K FO R D

Independent dealers are always looking to improve the services they offer their customers and that often means looking for and getting new sources of indirect lending, yet getting new sources of credit isn’t always easy. Fortunately for dealers

and their customers, local credit unions can serve as a nearby source that wants to work with responsible businesses. Dealers who use credit unions as indirect lending sources have found lots of advantages to having them in their corner. One advantage is credit unions are often well-known in the community the dealer operates in and have their own customer base. Chris Maynard, vice president of lending for Michigan First Credit Union of Lathrup Village, Mich., said his organization has about 85,000 members who bank at nine branches spread out through the state’s three most populous counties. Headquarters isn’t 2,000 miles away in another state. “We’ve been doing indirect lending through car dealers associated with us for about five years,” Maynard said. “Our program gives us a chance to grow our membership, increase our loan volume and forge relationships with dealers. Our loan program is very important in creating valued relationships with successful businesses.” Credit unions benefit from being associated with dealers through making loans, he said. If customers don’t belong to the credit union, they join as part of getting the loan. Now those people might not do anything else with the credit union except pay off the loan, but that gives the credit union an opportunity to offer them other services, such as checking, credit cards and home loans. Dealers benefit from being associated with a credit union because they get to work with a local lender who has a consistent underwriting approach, Maynard said. Another benefit: the credit union will steer customers to dealers who use their lending services. It’s the perfect time for members inquiring about taking out an auto loan to learn more about dealers who partner with the institution. Credit unions also are about customer service, and now dealers are their customers. “The credit unions work with us,” said Bill Perkins, president of the Bill Perkins Automotive Group in Eastpointe, Mich. “I’ve been working with Michigan First for about three-and-a-half years. What I like is that they work with us. We can call in a potential deal. If they turn down the deal, we can work with them, and maybe change some of the conditions of the deal – bigger down payment or a shorter term. We can work with them to a deal work to the advantage of everyone involved.” Craig Underwood, president of New Haven Auto Sales in Shelby, Ohio, has been working with the Ohio-based Directions Credit Union

for about 14 years. He has a great appreciation of how their relationship has been nurtured over the years. “We work with banks and other lending institutions, but I’ve got to say that Directions is the best in terms of ease of use,” Underwood said. “We really value the relationship we have with them and they make it very easy to work together to serve our customers’ needs.” Jan Davis, sales manager for the Nice Car Co. dealership in Ottawa Lake, Mich., near the Ohio border and 30 minutes south of Ann Arbor, Mich., has also been working with Directions for the past several years. “We have a face-to-face relationship with Directions,” Davis said. “That’s important.” Having someone to call and speak with really helps maintain a strong relationship between dealer and credit union. Personal interaction is preferable to many dealers than dealing with a company via the Internet and lending computer programs. While credit unions will work with dealers, they are still careful about lending practices. Trina Larson, director of sales and marketing for CRIF Select (a division of Denver-based CRIF Lending Solutions), said her company specializes in facilitating indirect loan programs for credit unions and her specific business is the auto and motorcycle department. CRIF helps set up loan programs for credit unions that are aimed at vehicle buyers. “We have been around for about 20 years,” Larson said. “We used to be known as Aimbridge. We’ve seen an increase over the past three years in credit unions seeking to get into the car loan business. They have money to lend and want to diversity their portfolios. “ Larson said credit unions are member owned, and therefore fairly conservative by nature. One thing they don’t want to do is lend money, sell the portfolio and leave delinquent customers hanging if they’re unable to repay the loan. That strategy, in part, led to the economic meltdown whose effects are still being felt. “Credit unions don’t like defaults,” Larson said. “But they do like working with customers to make loans that benefit everyone. After the bank problems of 2008, many credit unions saw that there was a niche to fill, in terms of auto loans, and many wanted to fill that niche. If a credit union doesn’t have the resources for marketing, that’s where we come in.” Larson said a smart credit union doesn’t do business with just anyone. They want to do business with dealerships that are stable, have been in business a while and maintain a certain volume of business. Credit unions are in it for the long run and want to work with dealerships that feel the same way. Customers come back to dealerships that take care of them, so an accommodating lender is an important part of the process. CO NTIN U E D O N PAGE 16

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LocalLending CO NTIN U E D FROM PAGE 14

“Let’s face it, the paperwork involved in buying a car is intimidating,” said Underwood. “We all know that there is a lot of federal and state paperwork that a customer is supposed to read before a deal can be completed. Any help a dealer can get in guiding the customer through the paperwork maze is greatly appreciated. And credit unions help with that. There’s no sense of funny business from credit unions when it comes to paperwork and that lends credibility to us.” That credibility, he said, pays off in terms of repeat business. Buyers feel well treated by the credit union and by the dealership. The sense of fair treatment makes it much easier to get that customer back when it’s time for customers to buy another vehicle. It also helps promote word of mouth, which always is valued by the smart dealer. Credit unions understand the retail auto business, too. Obviously, there is a difference between franchise dealerships that sell both new and used vehicles and independents. Dealers who are afraid a credit union doesn’t understand that difference may worry they’ll be judged by the same criteria as franchise dealers don’t need to do so. Tim Crosby, vice president of loan development for Directions, said the lender has 18 branches spread across central Ohio and the Toledo area. Directions, which caters to franchise and independent dealers, likes working with dealers who meet its criteria. “We have a program aimed at large franchise dealer operations,” Crosby said. “This program is technology based. Dealers submit information using a special app via the Internet. This app provides what I like to call instant decisioning. It’s all run by computers.” Franchise operations tend to be more heavily invested in technology, have several other resources to call upon and often deal with larger volumes of money and vehicle sales. Independent dealerships, on the other hand, can vary greatly in terms of size, sales, money and technology. Some independent dealerships are every bit as sophisticated as a franchise operation, but for others, a fax machine is the height of sophisticated technology, Crosby said. Thankfully for those dealers, the program aimed at independents recognizes this fact, and Crosby understands there are mom-andpop dealerships that still prefer to do things via fax. Directions’ special car loan department accepts apps via fax, and approval or denial is returned to the dealer the same way. Speed counts when completing a sale, and credit unions can make a decision quickly. Buying a vehicle is a very emotional business, said Underwood. Even if customers have done all their research on the Internet, compared

prices, compared options and evaluated dealer reputations, that decision is an expensive one they’ll have to live with for some time. So when it comes time for customers to sign a contract, they can be very nervous. Every dealer has a story about a buyer who talked himself out of buying a sound vehicle that was sold at a reasonable price. Credit unions often are able to quickly answer whether or not a loan will be made, giving the customer less time to get nervous about the deal. Underwood said he can get an answer in 30 minutes; if a customer has to come back in three days to work out the terms of the deal, that’s three days of worry and doubt that have to be overcome. Credit unions also offer another benefit: competitive loan rates. Perkins said he likes working with credit unions because they offer good rates. The best service in the world is nice, but if that service pushes the loan out of most customers’ price range, it really doesn’t help the dealer. He noted the lending landscape has changed over the past decade. There are still a lot of banks out there, but the number of local banks that know the community and are willing to work with local businesses one-on-one has declined as local banks have been merged with large national outfits. It’s possible for a bank customer who belonged to an institution with one or two branches to now be part of a bank with 3,000 branches thanks to mergers. Another reason to consider credit unions is marketing: they’ll literally drive customers into dealers’ arms. Most credit unions hold some sort of vehicle sale promotion during the year. Many do it several times a year. These promotions allow dealers to bring good vehicles to the credit union locations. The credit unions and the dealers typically split the cost of the promotion. It’s a real benefit to all: the credit unions get to expand their loan portfolios and dealers get to make additional sales. Oftentimes, good credit union customers are told they have been pre-approved for a loan and are invited to visit the credit union on a particular day when there will be vehicles for sale provided by participating dealerships. Perkins said when he’s been involved in a promotion such as these, he’s never sold less than 20 vehicles. Do that four times a year and that’s 80 extra sales a year. Even if you sell 500 vehicles a year, that’s still an extra 15 percent a year, and what dealer doesn’t want to see a 15-percent sales boost with minimal marketing effort on his part? “We’re happy to be on board with Directions Credit Union,” Underwood said. “We know that our customers are being taken care by the indirect lender, and the customers know that they’re getting a good loan at competitive rates. That’s a win-win in my book.”

Industryfacts

ProconGPS Acquires Repo Patents

P

roconGPS, Inc., a global leader in mobile resource management solutions, has announced the acquisition of the patents governing the repossession of automobiles in the vehicle finance industry from CalAmp Corp. of Oxnard, Calif. The intellectual property relates to methods and systems that apply GPS technology, cellular networks and information systems to monitor loan status for a default condition on a vehicle and enable tracking to aid the confiscation and repossession process for dealers and finance companies. “ProconGPS, Inc. is continuing to invest in its portfolio of intellectual properties and solutions for vehicle finance, fleet management, new auto dealers and overall asset tracking,” said Brian Boling, CEO of ProconGPS Inc. “As the world’s largest subprime vehicle finance asset tracking company, we recognized the need to add these patents to our existing intellectual property specific to financial services and the repossession process our customers use on a daily basis. The method patents involved are all about our core deliverable; risk mitigation. As we continue to witness the significant costs and efficiency advantages our customers gain using our services, ProconGPS, Inc. is committed to continuing the growth of this exciting Vehicle Finance GPS Tracking industry.”

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SEMA Dealer Day Offers Value, Benefits for Dealerships BY S T E V E C A M P B E L L , S P E C I A LT Y E Q U I PM E N T M A R K E T A SS O C I AT I O N

A recent study on vehicle accessorization by the automotive marketing research and consultancy firm AutoPacific confirmed accessories influence more than one million vehicle sales each year. And while many new and used vehicle dealers understand the power of accessorization, others have questions about how to incorporate accessory sales effectively, providing not only an added impetus for vehicle shoppers to make purchases, but also adding to the dealership’s bottom line through a supporting profit channel. Dealer Day at this year’s SEMA Show will answer those questions. Sponsored by NIADA and SEMA’s Professional

Restylers Organization (PRO), the 2011 SEMA Show Dealer Day will take place in the Las Vegas Convention Center, Nov. 2, from 8 a.m. to 1 p.m. The program is an exclusive event for dealership principals and top managers. Its sole purpose is to teach dealerships how to tap into the $28.6 billion automotive accessories market. It will provide attendees with proven strategies showing how to identify pitfalls and maximize opportunities, utilizing clearly defined approaches that integrate the dealership’s fixed operations with vehicle sales. The program provides the latest trends, tools and resources to sell more cars and increase the dealership’s bottom line. Dealer principals who have attended previous Dealer Day programs were pleased and enthused about the information they received. “Dealer Day was a great value and benefit for our dealership,” said representatives of the Martin Automotive Group, located in Los Angeles, Calif. “The discussions provided us great insight into the different approaches and strategies for accessory integration. The ability to interact with so many other dealers was invaluable, and the range of knowledge was impressive, to say the least.” Phil Tucker, who attended on behalf of Cerritos Infiniti in Cerritos, Calif., was equally pleased. “Personally, I feel the foundation of SEMA is the exchange of ideas,” he said. “Dealer Day

was able to take most of the benefits SEMA has to offer dealers and concentrate it for a more effective use of time away from the store.” The Dealer Day program for 2011 will kick off with an introductory address at 7:30 a.m., followed by a session at 8:10 a.m. on “How to Partner with the Right Accessories Installer.” Bill North of Classic Design Concepts will moderate the session, which will focus on concepts that go beyond sales alone, including fashion, trends and technology. The session will also discuss how to find qualified professionals who have the skills, training and resources to create fastmoving, high-value accessory packages, with panelists Joey Johnston of Tops & Trends and Ron Leslie of Katzkin. A consumer focus-group session will take place at 9:20 a.m., centered on the concept of “Understanding Buying Decisions: Auto Enthusiasts Speak.” Enthusiasts are frequently looked upon as expert consultants by their peers and can become evangelists for a dealership. A diverse group of auto enthusiasts will discuss the factors that go into their car-buying decisions and what keeps them loyal. The next session, scheduled for 10:45 a.m., will detail the “Seven Simple Steps to Running a Successful Accessory Business.” Dealer and industry professionals will offer tried-and-true practices that can boost any dealership’s bottom line, from picking the right partners to creating a

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HotTopics

multi-level buy-in. The panel for this discussion will be moderated by SEMA Council Director Zane Clark and feature David Boutwell of CODA Automotive, Chris Ferren of Bewley Allen Cadillac and Jon Titman of Automotive Essentials. Following lunch, which is provided as part of the program, Diana Braschler of Dealer Source Ltd. and Josh Elliott of Auto Trim of Denver Inc. will conduct a vehicle walk-and-talk session. The presentation will showcase the features and benefits of accessorization and strategies of industry-leading restylers as well as effective strategies to consider when showcasing accessory-equipped vehicles. Dealer Day will conclude with a networking mixer, where attendees will have the opportunity to confer with fellow dealers as well as with SEMA-member restyling experts and the event organizers. Make plans to attend today, and let your dealership colleagues know that this is a can’t-miss event for SEMA Show attendees. The 2011 SEMA Dealer Day program is available to both SEMA members and nonmembers for the same low prices. Through Oct. 17, tickets are $99. After that date, tickets are $149. Onsite pricing starting Oct. 27 in Las Vegas is $149.

Learn

More

OnStar Now Available for Non-GM Autos OnStar FMV (For My Vehicle), the first out-of-the-box application of OnStar’s “blue button” automotive safety and security services that can work on 90 million older vehicles, went on sale July 24 and can be preordered at Best Buy stores nationwide.

Packing OnStar’s industry leading technology into a rearview mirror, OnStar FMV sells for $299.99, plus $75 for installation. Service plans for OnStar FMV start at $18.95 a month, or $199 a year. “Since we announced OnStar FMV at the Consumer Electronics Show in January, thousands of people have signed up to be notified when this innovative product is ready to buy,” said OnStar President Linda Marshall. “Now, through Best Buy, they can enhance their Fords, Toyotas, Chryslers and other brands with the power of OnStar.” As OnStar’s strategic retail partner for OnStar FMV, Best Buy offers on-site installation through its network of more than 1,000 auto bays nationwide staffed by more than 1,400 Mobile Electronics Certified Professionals at Best Buy, including nearly half of the 194 MECP Master installers in the world. More than 90 percent of surveyed Best Buy customers said their auto installation was “done right the first time.” OnStar FMV provides the same core features as the OnStar service built into new Chevrolet, Buick, GMC and Cadillac vehicles from General Motors: Automatic Crash Response, Turn-by-Turn Navigation, Hands-Free Calling, Stolen Vehicle Location Assistance, Emergency Services, and Roadside Assistance. Other retailers now offering or soon to offer OnStar FMV include Car Toys, Crutchfield, Fry’s Electronics, Al & Ed’s Autosound and P.C. Richard & Son. Customers can find out if OnStar FMV is compatible with their vehicle through an online Vehicle Selector. More information is available through Best Buy or OnStar.com.

www.semashow.com

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REPORT OF CEASE & DESIST LETTERS ISSUED

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

Aug. 9, 2011

USED MOTOR VEHICLE AND PARTS COMMISSION REPORT Following convening of the August 2011 meeting and approval of the minutes of the previous meeting, Chairman John Longacre called on Director John Maile for the Director’s report. Maile began his report by stating a copy of the expenditures for June was attached and the May and June finance reports had been emailed to the Commissioners. Last month, Maile told the Commissioners that staff would like to create a fund for the purchase of parts they could use when doing a salvage investigation or audit. They do not have any funds for that now. Maile reported Commissioners Jim Davis and Norman Latham had interceded on behalf of the Commission by getting the Automotive Dismantlers and Recyclers Association (ADRA) to agree to fund the parts purchases for the Commission audits. When the Commission is finished with the parts, they will be returned to ADRA. Director Maile advised the Commissioners he is working on the Rules review and looking at modifications that are needed. Once his review is completed, he will have John Crittenden, Attorney General liaison, review the changes. The changes will be emailed to the Commissioners and can be discussed in a subsequent meeting. Maile hoped to have the review completed by the next meeting. Following Maile’s presentation, the Commission voted to accept the June Expenditure Report and to acknowledge the May and June Finance Reports. Whitehead’s Deputy Director’s report indicated Commission staff had not held any informal hearings during the month and therefore, no fines had been issued in that category of activity. However staff had completed 18 inspections for the period, handled 28 written complaints, seven of which were title issues, seven had to do with contract violations, ten were related to mechanical issues and there were four complaints of a miscellaneous nature. The Commission education program had 16 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. These education sessions are being held 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. Maile advised the Commissioners Sherry Killian, who had once worked for the Commission, came back to fill the vacancy created by Jennifer Bate’s departure. Killian is currently attending nursing school. When she completes school, her plans are to stay with the Commission for the next year and then decide whether she will go back to the nursing profession. Killian is a welcome addition to the Commission staff.

ENTITY

TYPE VIOLATION CITY

DATE ISSUED

Benjamin Bortey Javier Flores Keith Mairero Randy Taylor Robert Treat

Insurance Pool Insurance Pool Used Dealer Used Dealer Used Dealer

07/08/2011 07/08/2011 07/08/2011 07/07/2011 07/21/2011

Oklahoma City Yukon Oklahoma City Ardmore Seminole

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 & H Auto Sales Oklahoma City Ada Nissan, Inc. Ada Advantage Auto Sales Inc. Enid A-N-B Used Cars Anadarko Bee Line Used Cars & Salvage Okmulgee Bill Hodge Chrysler, Jeep, dodge Vinita Birdsell’s Used Cars Miami Brad Fenton Mtr of Poteau Inc. Poteau Car Search Auto Sales Inc. Norman Car Source Oklahoma City Chisholm Homes Ada Credit Max Auto Sales Inc. Tulsa David Stanley Chevrolet Inc. Oklahoma City Dick Ryan Motors LLC Tulsa Fox Auto Sales Wagoner Green Country Ford,Inc. Vinita Homes To Go! Oklahoma City Hot Wheels of Oklahoma Motors Norman I-35 Credit Auto Oklahoma City Joe Cooper Explorer Motors Midwest City Leake Auction Company Inc. Tulsa Lexus of Oklahoma City Inc. Oklahoma City Marc Heitz Chevrolet Inc. Norman Nick & Paul’s Quality Car Corner Tulsa Norman Chrysler-Jeep Dodge Norman Pruitt’s Auto Center Inc. Tulsa United Auto Finance Co. Norman United Trucks & Autos Muskogee

COMPLAINT

RESOLVED

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

07/18/2011 07/25/2011 07/29/2011 07/19/2011 07/25/2011 07/05/2011 07/25/2011 07/01/2011 07/21/2011 07/29/2011 07/20/2011 07/18/2011 07/06/2011 07/06/2011 07/25/2011 07/25/2011 07/22/2011 07/15/2011 07/14/2011 07/29/2011 07/18/2011 07/27/2011 07/11/2011 07/05/2011 07/29/2011 07/18/2011 07/22/2011 07/05/2011

LICENSES SUSPENDED OR ABANDONED

In other action, the following licenses were suspended or abandoned:

Cars Xtra, Oklahoma City: Out of business; per owner Esmaieel Chamhidray. Crestview Estates MH Community, Stillwater: Out of business; per Jodi Andrus. Eastern Villa Mfg. Home Community, Stillwater: Out of business; per Jodi Andrus. Eldorado Motors LLC #6, Oklahoma City: Out of business; per Shannon Hutton. I-35 Sports & Imports, Oklahoma City: Out of business; per Investigator’s report. Primo Auto Sales, Oklahoma City: Out of business; per Investigator’s report. Solitaire Homes of Stillwater, Stillwater: Out of business; change of ownership. Value Motors, Oklahoma City: Out of business; per Investigator’s report.

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NIADA Mobile Adds ShipCarsNow Auto Transport Quotes to App NIADA Mobile now provides instant auto transport quotes as part of its innovative mobile app. With the addition of ShipCarsNow to the NIADA

mobile app, NIADA members will have shipping costs at their fingertips, giving dealers the ability make quick, informed purchase decisions whenever and wherever they buy wholesale inventory. NIADA Mobile currently provides vehicle values from Black Book, Kelley Blue Book and NADA; CARFAX and AutoCheck reports; as well as pre-auction run lists, continuously updated vehicle data, and VIN bar code scanners. “ShipCarsNow is one of our NIADA National Member Benefit Partners and we are excited to include nationwide auto transport as another service within of our mobile app platform,” said Scott Lilja, NIADA vice president of member services. ShipCarsNow recently introduced ShipCarsNow Mobile, a mobile app that gives auto dealers and remarketers a fast and easy way to get multimodal auto transport quotes from any smartphone. One of the few auto transport companies to offer flexible options of truck and rail service, ShipCarsNow’s mobile app complements their online auto transport service and offers auto dealers mobile access to instant auto shipping quotes while they’re bidding on cars at auction. In addition to instant price quotes, the ShipCarsNow mobile app provides users a link to register with ShipCarsNow.com for lower, preferred customer prices. NIADA members can use the app to login to ShipCarsNow.com to get quotes, track shipments, and quickly access ShipCarsNow sales representatives. To learn more about the NIADA Mobile app with ShipCarsNow auto transport quotes, visit http://niada. gigglepop.com

OfficeMax Offers New Partnership At NIADA, we’re always looking for ways to help you get more out of your membership. That’s why we’ve teamed up with OfficeMax to introduce the OfficeMax Partner Advantage program. OfficeMax is a leader in both business-to-business office product solutions and retail office products. OfficeMax provides office supplies and paper, in-store print and document services through OfficeMax ImPress technology products and solutions, and furniture to consumers and to large, medium and small businesses. OfficeMax customers are served by 35,000 associates through direct sales, catalogs, e-commerce and retail stores. OfficeMax has more than 40 years of experience in the business-tobusiness marketplace and is recognized as one of the most experienced national business products supplier. Corporate United, the nation’s largest group purchasing organization, selected OfficeMax as the 2010 recipient of the Corporate United Supplier of the Year Award.

Partners

s)

Through the OfficeMax Partner Advantage Program, NIADA members receive:

- Exclusive member-only pricing - Superior personalized service - Innovative programs that deliver value to companies and individuals - Highly skilled technology team - More than 25,000 office essential products - Award-winning house brands - Large recycled product offering - Multiple ordering channels

Online ordering is easy; just visit www.officemaxsolutions.com and type in the following: User name: 0722739w Password: omaxadvantage1 To order via phone, call 877-969-6629. Members with 20 or more employees may call 800-248-6343 to request more information on setting up your business account.

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NHTSA Recalls Honda Accord, MY 2005-2010 Honda CR-V, MY 2007-2010 Honda Element, MY 2005-2008 NHTSA ID Number: 11V395000 Powertrain: Automatic Transmission Units Affected: 1,512,107 Honda is recalling certain model year 2005-2010 Accord, 2007-2010 CR-V, and 2005-2008 Element passenger vehicles manufactured from July 1, 2004, through Sept. 3, 2010. The outer race of the secondary shaft bearing may be broken during certain driving styles. A broken outer race may cause abnormal noise, the malfunction indicator light to turn on, and allow contact between the transmission idle gear and an electronic sensor housing within the transmission. This could result in a short circuit causing the engine to stall. Additionally, broken pieces of the outer race or ball bearing from the secondary shaft may become lodged in the parking pawl resulting in the vehicle rolling after the driver has placed the gear selector in the park position. Engine stall and unexpected vehicle movement increases the risk of a crash or personal injury to persons within the path of a rolling vehicle. Honda will notify owners and

For more information, visit www.NHTSA.gov. dealers will update the automatic transmission control module software free of charge. The safety recall is expected to begin on or about Aug. 31. Owners may contact Honda Automobile Customer Service at 800-999-1009.

airbag and/or a vehicle crash. Dealers will replace the affected air bag module free of charge. The safety recall is expected to begin during August 2011. Owners may contact Chrysler at 800-8531403. Chrysler’s safety recall number is L01.

Chrysler Town and Country, MY 2008 Chrysler Voyager, MY 2008 Dodge Grand Caravan, MY 2008

Ford F-150, MY 1997-2004 Ford F-250, MY 1997-1999 Lincoln Blackwood, MY 2002-2003

NHTSA ID Number: 11V394000 Air Bags, Frontal: Sensor/Control Module Units Affected: 299,718

NHTSA ID Number: 11V385000 Fuel System, Gasoline Storage: Tank Assembly: Mounting Units Affected: 1,100,000

Chrysler is recalling certain model year 2008 Chrysler Grand Voyager, Town and Country and Dodge Grand Caravan vehicles manufactured from June 24, 2007, through July 30, 2008. These vehicles may experience a heating and air conditioner (HVAC) condensate leak from the HVAC drain grommet onto the occupant restraint control (ORC) module, which can lead to the illumination of the airbag warning light and a potential inadvertent airbag deployment without warning. An inadvertent airbag deployment could result in injury to the seat occupant in front of the deploying

Ford is recalling certain 1997 through 2003 model year Ford F-150, 2004 model year Ford F-150 Heritage, 1997 through 1999 model year F-250 (less than 8,500 lbs. GVWR), and 2002 and 2003 Lincoln Blackwood vehicles manufactured from June 20, 1995, through Aug. 4, 2004, originally sold or presently registered in Connecticut, Delaware, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin and the District of Columbia.

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Prolonged exposure to road deicing chemicals may cause severe corrosion of the fuel tank straps which secure the tank to the vehicle. As a result of the corrosion, one or both straps may fail allowing the fuel lines to separate from the tank, or in some cases, causing the tank to contact the ground. Either scenario may result in a fuel leak presenting a fire hazard. Ford will notify owners and instruct them to take their vehicles to a Ford or Lincoln dealer to have the fuel tank straps replaced with straps that have increased corrosion protection. Early in this campaign, if replacement straps are not available, dealers may install a cable support under the strap as an interim repair or a steel reinforcement over the existing strap as a permanent repair. Any repairs will be performed free of charge. The safety recall is expected to begin on or about Sept. 12. Owners may contact the Ford Customer Relationship Center at 866-436-7332. Ford’s recall campaign number is 11S21. For more information, visit www.NHTSA.gov.

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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 August 9, 2011 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 A-Affordable Pre-Owned Cars Bob Moore Dodge, Chry, Jeep Tulsa Byford’s Auto Sales Elite Auto Wholesale EZ Buy Auto E-Z Finance Auto Sales Integrity Custom Automotive LLC J & S Motorsports Jakes Tire & Auto Sales Inc. J’s Used Cars Lobos Auto Sales McGee’s Used Cars & Trucks One Percent Motorsports Sale Premier Car Center Riverside Autoplex/Holdenville Sickwhips Auto Texoma Motor Sales LLC

WHOLESALE DEALER LICENSES

COMPANY Motorwerx LLC Premium Wholesale Auto

NAME CITY

Kevin Wright Bob Moore Auto Group,LLC P. Mark Moore Curtis Hayes Shannon Hutton Karen Copp Mike Byford Konstantin Khandros Michelle Jacobs Lohrasb Karimi Fatemeh Salari Manoojan Shahrzad Azarnoush Abdul Majid Pakzad Kevin McAnally William Hair Jennifer Higgs Jeret Higgs Jacob Mitchell Jerry Littlepage Abed Elkour Alvin McGee Andy Nelson Wasim Hussein Majed Majd Habib Phyllis Anderson Randy Anderson Tracy Witt Mike Hoover Michelle Breeden George Breeden III

Oilton Tulsa

Ardmore Edmond Tulsa Oklahoma City Tulsa Ardmore Norman Eufaula Tulsa Checotah Edmond Tulsa Holdenville Tulsa Durant

NAME CITY

Eric Paysnoe Erik Gowland

Oklahoma City Oklahoma City

OIADA NEW AND RENEWAL MEMBERS The following list includes members who joined or renewed their OIADA/NIADA membership during July. 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, Chairman of the Board. J U LY 2 011

COMPANY

NAME

JOINED CITY

R Danny’s Car Sales Inc. R Bud’s Salvage N Patriot Ford R Edwards Auto Sales R Cars & Tires Inc. R Clearcut Auto LLC R Town & Country Auto Inc. R Fishers Auto Mall Inc. R All Star Vehicle Sales LLC R L & A Wrecker Service R Power Auto Sales LLC R Cars Etc. R A-Z Auto Parts & Auto Sales R Auto Mart of Elk City Inc. R OK Auto Remarketing R Sooner Credit Corp. R Roy Burch Auto Sales Inc.

Danny C. Nakvinda Rocky Anthony Sam Wampler E.D. Edwards, Sr. Stuart Harlin Chad Pratt Roy G. Sisco Floyd Fisher, II Jimmy Sweat Professional Towers Inc. Richard L. Power David W. Blalock, Jr. Danny West John Easttom Bruce Atteberry Steve Harlin Roy Neil Burch

1995 1991 2011 2010 1992 2007 1991 1995 2007 1991 2007 2007 1997 1998 1999 2003 1991

Enid Aline Purcell Roland Durant Broken Bow Wewoka Oklahoma City Tishomingo Norman Broken Arrow Anadarko Oklahoma City Elk City Norman Durant Duncan

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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! 25

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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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Bond and License Renewal Schedule

FREE DEALER EDUCATION

24/7

ONLY ON NIADA.TV

Watch where you want... ...when you want

I

BY ADR STAFF

n Oklahoma, all used dealer bonds and licenses expire Dec. 31 of each year. This includes used dealer licenses, salesman licenses, dealership bonds and salesman bonds. Your dealer plates (issued by the Oklahoma Tax Commission) also expire on Dec. 31. And, unlike public vehicle license plates, there is no grace period for dealer plates. You cannot do business without proper bonding and licensing, so it’s to your benefit to submit your completed renewal applications in a timely manner and then follow-up on the status of each until you receive approval. The following is a schedule of steps that will help guide you through the bond and license renewal process. September

•Y  ou may contact Rose Morgan at 405-232-2947 or 800-346-4232 to start the bond renewal process. This is a critical first step to getting your license(s) renewed, as dealer bonds and insurance MUST accompany your license renewal applications. •E  nsure you don’t have any outstanding tax liabilities with the Oklahoma Tax Commission. Outstanding tax liabilities may prevent renewal of your license.

October

•F  irst week: If you have not already contacted Rose Morgan at 405232-2947 or 800-346-4232 or some other supplier to start the bond renewal process, please do so now. The bond renewal process takes time and you cannot submit your license renewal application(s) without bonding and insurance documents. •D  ealer and Salesman License Renewal Applications will be sent out by the Used Motor Vehicle & Parts Commission during October. Watch for them. As soon as you receive them, inspect them and be sure the information is correct. •Y  ou should have received your license renewal application(s) before the end of October. If not, contact the commission at 405-521-3600 immediately. •M  ail your license renewal application(s) to the commission by the end of October. Before mailing, review the application(s); be sure all information requested has been provided and is complete and accurate. Incomplete and inaccurate applications will delay renewal. We suggest you include a letter asking them to contact you in the event your application is not complete. Include an email address and/or fax number where you can be reached.

November

Sales • Operations • F&I • Remarketing • Compliance • Legal/Regulatory • Special Features • Industry Events

PLUS: Automotive Industry News & Special Monthly Programs

•A  ll applications for license renewal should be submitted by Nov. 1 of each year, and licenses shall be issued by Jan. 10. If application has not been made for renewal of license, such license shall expire on Dec. 31, and it shall be illegal for any person to represent himself and act as a dealer thereafter.

December

•R  enewal licenses for the coming year will be issued during the month of December. •U  pon receipt of your 2012 dealer license, promptly submit application to the Oklahoma Tax Commission for your dealer plates and decals for the coming year. Applications are available online at the commission website. Applications (with payment) must be received by the commission not later than Dec. 31. Be aware that the Tax Commission will not issue plates and decals until after the Used Motor Vehicle & Parts Commission has issued your renewal license. •Y  our current year licenses, bonding, insurance, and dealer plates all expire at midnight on Dec. 31.

For more information on bonds, contact Rose Morgan at 405-232-2947 or 800-346-4232. For license renewals, contact the Used Motor Vehicle & Parts Commission at 405-521-3600. For dealer plates and decals, contact the Oklahoma Tax Commission at 800-522-8165 or www.tax.ok.gov.

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