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DALLAS, TEXAS Permit No. 2079










05................................. Finding Good Cheap Cars 06..................Why Your Facebook Page is Failing 08................ Make Phone Tag a Thing of the Past 10................................NIADA Government Report 14...............Updates and Rule Changes from DMV 17..........................Warranty vs. Service Contract


DAA Northwest/Seattle...................................IFC Lobel Financial.................................................... 3 Manheim ............................................................. 11 NextGear Capital............................................. 8-9 vAuto................................................................ IBC


CONVENTION R E G I S T R AT I O N O N L I N E Registration for the 73rd annual NIADA | NABD Convention & Expo is now online! You don’t want to miss this industry-leading mega-conference! The event is June 17-20 at the Venetian in Las Vegas. Learn more and register today at www. niadaconvention.com.

Autotrader.com 866-836-1455 Used Cars.Com by Dealix 650-599-5616 Cars.com James Lynch 312-601-5052 Carsforsale.com Grant Lockner 605-306-3492 Interactive Financial Marketing Group Travis Weisieder 804-248-0892 ATTORNEY

Byrd Cabrera LLP Robert (Scott) Byrd 310-365-1954 AUTO PARTS

AutoZone, Inc. Daniel Narvaez 971-218-2300 BOND & INSURANCE

Hecht & Hecht Insurance Agency Larry Hecht 503-542-1130 Shepard & Shepard Business Solutions Todd Shepard 1-855-396-0488 #8 DEALER AUCTION

Manheim Seattle Auto Auction Ray Priest 206-762-1600



For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. OIADA Dealer News is published monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 6006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of OIADA Dealer News or NIADA Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2019 by NIADA Services, Inc.

STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT Christy Haynes • christy@niada.com PRINTING Nieman Printing

ADESA Portland Auto Auction Jerry Hinton 503-492-9200 Crosspoint NW Dealer Auction Brian Hardy 503-594-2800 DAA Northwest (Dealers Auto Auction) Mitzi VanVoorhis 509-244-4500 CarMax Sean McDonald 804-747-0422 DEALER SOFTWARE

Frazer Computing Inc Jake Morley 888-963-5369 Motor Vehicle Software John Brueggeman 546-270-6699 FINANCING

Credit Acceptance John Bragg 360-980-2214


Executive Vice President Jim Weaver

1st Vice President Gary Brooks

Secretary/Treasurer Salvador Alvarez Herrera Zamora Auto Sales

Chairman of the Board Gary Sargent


Oregon Auto Finance Gary Veum 541-868-0472 The Equitable Finance Co. Brandon Fox 503-808-7939 Pac West Credit LLC John Kiefer 541-868-2595 United Finance Todd May 503-238-6488 Oregon Community Credit Union Rich Black 541-681-6311 Nationwide NW Glenn Wheeler 678-735-0341 Credit Concepts Inc Jason Moon 541-342-8545 Veros Credit John Pierce 714-415-6125 x21131 Reliable Credit Associations David Marx 503-462-3022 Ted Investment LLC Tom Garza 503-213-1109 FLOORPLAN

Lobel Financial David Lobel 714-816-1301 NextGear Capital Robert Torbet 503-358-3911

Lobel Financial David Lobel 714-816-1301


Oregon Independent Auto Dealers Association 9150 SW Pioneer Ct Ste. H Wilsonville, OR 97070 800-447-0302

Manheim Portland Auto Auction Alex Fraser 503-286-3000 ADESA Seattle Auto Auction Mark Dumbler 253-735-1600 DAA Seattle Dave Blake 253-737-2200 United Vehicle Auctions Lori Jacoby 503-380-1927 ADESA Northwest Auto Auction Mark Melton 541-689-3901

Floorplan Xpress Josh Chandler 503-621-9260 Auto Cap Services (ACS) Michael Smith 800-800-6494 ONLINE REVIEW MANAGEMENT

Podium Kaylie Smart 801-376-0677


Woodburn Auto Auction Steve Morin 503-981-8185 Petersen Auction Group of Oregon Curt & Susan Davis 541-689-6824 SECURITY

Pro-Vigil Kris Brackin 210-858-1105 SERVICE CONTRACTS

AUL Corporation Jacqueline Swank 800-826-3207 Elite Warranty, Inc Al Ham 503-530-0912 Automotive Business Developers Shannon Meany 541-944-9186 Benchmark Dealer Services Jacob Bangert 360-834-3333 Protective Asset Dylan Doran 818-836-1455




Volkswagen Group of America Inc. is recalling 845 2015-16 Audi A6 Sedans and 2015 Audi A7 vehicles. The auxiliary heater electrical connector on these vehicles may have been incorrectly inserted into the auxiliary heater, possibly resulting in increased electrical resistance. Volkswagen will notify owners, and dealers will inspect the auxiliary heater connector, replacing the auxiliary heater and connector, as necessary, free of charge. Volkswagen’s number for this recall is 82C1.







In the first installment of this three-part series, we looked at how to take advantage of upstream online auctions. Upstream is just a fancy way of saying “before the vehicle is shipped to physical auction.” We focused on OLOCs (One-Owner, Low-Mileage, Off-lease Cars) and learned how to acquire affordable cars your customers want, without having to go to a physical auction. In the second installment, we looked at buying real-time in multiple lanes, at multiple auctions, right from your desktop, laptop or phone! Since these articles, I have received a lot of great feedback and even trained some folks on how to buy cars live online – including easily accessible options like ADESA’s simulcast platform that allows dealers to bid virtually, in real time, on cars in the lane. One dealer said, “I may never go to a physical auction again.” Another dealer I worked with loves going to the physical auction. After training, he was standing in the auction lane bidding on cars as they drove through while also on his phone – bidding on cars at the same auction, at the same time, but in different lanes, and even checking proxy bids on cars at other auctions. Technology is opening new doors of opportunity for dealers, giving them a competitive edge like no other. This month we will look at new technology that is changing the way we buy and sell wholesale vehicles. When I owned my pre-owned lot many, many years ago, besides attending two local auctions every week, I spent every Monday morning stopping at Starbucks buying coffee and pastries I would take to my favorite used car manager who ran a large new car franchise. I usually arrived at the store as soon as the service department opened the front gates so I could look at and book out all the weekend trades before the UCM arrived. I would list what I wanted to pay for each car and what it needed for reconditioning on my yellow pad, head to his office and wait. We would grind out prices and two or three hours later I would call some drivers and get my new inventory to reconditioning. Not only did I have to get up at the crack of dawn, pay too much for a couple of rundown cars to get the ones I wanted (the old “package deal”), but I also burnt half a day away from my lot. Needless to say, this wasn’t a very efficient use of my time or inventory dollars. Fast forward to last week. I’m sitting at lunch with a friend who owns a small preowned lot, talking about how hard it is to find good cheap cars. His phone gives off

a chirp. He quickly taps his phone, scrolls through a couple of screens, pounds out some numbers on his phone calculator, taps his phone one more time and gets back to our conversation. What was he doing? He was bidding on a car that was traded in at a new car franchise less than two hours ago. That’s right, sitting at lunch bidding on fresh trades and in the time it took to eat his burger, he owned the car! There are a few companies in this stillgrowing, dealerto-dealer digital auction space. I’m most familiar with ADESA’s sister company TradeRev, a mobile app that sends notifications to your phone as new car franchise dealers launch cars to a 45-minute on-demand, digital auction. You can view multiple photos, watch videos and even listen to the engine run. Settings allow you to customize your experience, enabling you to create alerts for only the types of cars you want – so you spend less time looking and more time buying. Think about the efficiencies this technology brings to the industry. With built-in artificial intelligence and machine learning, you can find the right car at the right price, in a transparent and fair process, all in about an hour. You can have funding, titling and transport pre-arranged in the app so when you win a car it quickly appears on your lot. And what about the seller? We know the longer you keep a car in stock the less gross you get – the dreaded “lot rot” is real. Even when you hit a home run on an aged unit, if you do the math on a profit-per-day basis, the ROI is weak at best. What would wholesaling a trade the same day it’s brought into inventory do for the average inventory turn time? It’s a win-win for both buyer and seller! The industry is changing, but so is the technology we use to run our operations. If you have not embraced buying cars upstream, live online from your PC, laptop or phone, or the newest app-driven one-hour, on-demand auction, you may want to rethink your business plan.

I’m not saying you can’t continue doing what you’re doing now and be profitable. I’m saying there is technology out there that can and will help you be more efficient – which leads to higher profits with less effort. Mastering these new, high-tech systems and apps is so easy there is no reason not to give them a try. I’ll even help you get started. Email me at Doug.Hadden@ADESA.com and I will set up some time for training you on one or all of the new technologies discussed in these articles. Once you get comfortable using the new tech, not only will you be more efficient and profitable, you may also have time left over to do other things you haven’t been able to do, like spending more time with family and friends! Until next time – have fun and sell cars! Doug Hadden is executive director of dealer consulting services for ADESA Auctions Inc. He can be reached at Doug. Hadden@adesa.com.


SOCIAL MEDIA | By Kathi Kruse






Not all Facebook pages are created equal. It’s hard to ignore the opportunities available with Facebook to attract, engage and convert car buyers, but building a high-converting Facebook page has been elusive for many. It’s important to know the elements of a successful Facebook page, and even more crucial to recognize the reasons your Facebook page may be failing. If you want your car buyers and their friends to notice, you have to continually reward them with great content and build an engaged community for them. This means employing a content strategy that works for your dealership both culturally and operationally. You also have to incorporate Facebook ads to promote your content and encourage clicks to your website from interested buyers. If consistent engagement and conversions on Facebook is a struggle for you, here’s a list of reasons your Facebook page may be failing, with tips to make it work for you rather than against you. YO U  D O N ’ T P U B L I S H   R E G UL AR LY  Consistency is a cornerstone of Facebook (or any other) marketing. Users need to see your posts in their newsfeeds for you to stay relevant. It’s a battle right now for attention. Inconsistent posting (such as a few times per month) is not going to capture anyone’s attention. YO U R PA GE L A C KS T H E H UM AN TO U CH Fact: Facebook pages fail because posts focus on products instead of people. There’s often a complete disconnect from the human side. Content that demonstrates why people choose the business seems to be nonexistent on many dealership Facebook pages. If you approach Facebook with the sole mindset of selling, you will waste your precious time. Facebook is first and foremost a social network, not a billboard. YO U ’R E N OT U SI N G   T H E 3- GEA R ED A P P ROAC H TO CO NTE N T Content marketing (messages that meet your customer where they are in their purchase journey) is a powerful tool for driving qualified leads. The challenge lies in producing highquality, original content on a consistent basis. Content must reach each of three stages of the buying cycle: • Entertain. Most people who engage with your page are not immediately “in-market.” The inability to engage this large segment of users is where many pages fail. • Educate. Fans who are thinking about a purchase, or who have friends who are, appreciate answers to their questions. • Excite. Facebook posts and ads need to provide offers worth the prospect’s time. Exciting content compels people to click in anticipation.






YOUR P OSTS LO O K A N D FE E L COUN T E R FE IT Every dealership has a “personality” – characteristics, features, traits, etc. – that makes it unique. People are more attracted to sellers who communicate exactly who they are and what impact they wish to have in their customers’ lives. Publishing benign content that can be found anywhere is the shortest distance to the bottom. This is often obvious when dealers hire outside providers to “do social media” for them. The provider’s “voice” can come through on Facebook and make it look like someone other than you is doing the work. This is not a good look for those who want to engage real people. YOU D O N ’ T FU L LY U N D E R STA N D YOUR TA R G E T AU D IE N C E  Creating a content strategy without a clear understanding of your audience is like setting sail without navigational tools. You’re out there, you’re taking action, but you’re not sailing toward a specific goal. Pretty soon, huge amounts of time and money have been spent without any clear return on investment. Facebook’s deep data allows dealerships to laser-target ideal users. Building target audience profiles improves your Facebook marketing tenfold.  •D  etermining the “buyer personas” of your core audience improves the way you solve problems for your customers. •E  stablishing customer pain points helps create content that’s useful to your prospects (and builds authority with search engines). •U  seful, high-quality content increases engagement and builds your social presence. •W  ebsite content (i.e. blog posts) published on Facebook and clicked-through to your site increases search ranking. YOU D O N ’ T R E G U L A R LY CON D UC T A FA C E B O O K PA G E AUD I T Whether your social media marketing is in-house or outsourced, it’s often difficult to know where the gaps are between your current successes and where you need to be. There are numerous ways you benefit from an audit or review of your social media. Given today’s accelerated rate of potential failure with Facebook marketing, a social media audit will help your page work harder and achieve goals faster. YOU’ R E I G N O R I N G CO M M E N TS AN D M E S SA G E S Facebook is a communication channel just like email and the phone. Customer service via social media is a game-changer but if you don’t have a process to monitor, listen and respond to messages, you’re dead in the water. Nobody likes the feeling of being ignored. If

you’re looking for a competitive advantage, consider designating a “community manager” to oversee your online channels. YO U H AV E N O D E FI N E D G OA L S High-converting Facebook pages have clear, well-defined marketing goals. At Kruse Control, we begin with an outline of three goals and then build out the specific strategies that help a client achieve them: • Attract. Likability and relevancy are huge in attracting new and existing customers to your Facebook page. Add value to their lives by delivering awesome content. • Engage. Many dealerships fall flat when determining what to do with their fans once they become connected. • Convert. Attracting the right audience and engaging them lays the groundwork. Drive conversions using ads that provide valuable information that helps them finalize their purchase decision. YO U ’ R E N OT L E V E R A G I N G   T H E P OW E R O F FA C E B O O K A DS Facebook has become one of the most powerful platforms to generate sales leads. Dealership Facebook pages fail because they either aren’t using Facebook ads correctly or they’re not using Facebook ads at all. No Facebook page will be truly successful without Facebook ads. Why? It’s simple: you must pay Facebook to reach car buyers. YO U ’ R E N OT M E AS U R I N G A N D A N A LY Z IN G YO U R R E S U LTS You can’t manage what you don’t measure. Dealers who don’t review their Facebook results are doomed to repeat their mistakes over and over again. Facebook Insights (your page analytics tool) gives you all the metrics you need to judge how your page is doing. You can see which content got the most organic and paid interaction, what you did right, and what didn’t work so well. Facebook Ads Manager gives you up-to-theminute stats on how your ads are performing. Analyzing results lets you: • Deliver a better experience for fans and the public. • Make better decisions on your content. • Tweak as you go to improve ROI. • Determine if you’ve reached your goals. If you’re not getting the results you want, compare your page’s components to these 10 reasons and see where you can improve. If your page doesn’t size up and you need help to improve, feel free to contact me. Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc., which coaches, trains and delivers webinars focused on integrating social media and online reputation management into dealership operations. She can be reached at kathi@ krusecontrolinc.com.


By GWC Warranty



Unfortunately in the used car business, your reputation after the sale can sometimes be out of your hands. Once that aspect of your business is out of your control, you need to be sure it’s protected in the hands of someone you trust. If you’ve been in the business long enough, you know that despite the best reconditioning and the best inventory selection, you’re bound to run into vehicles that encounter issues after the sale. When this happens, it’s your reputation on the line. How these fragile situations are handled can have long-lasting impacts on your reputation in your market. Partnering with a service contract provider that has the tools in place to take care of your customers the way you’d want them treated is perhaps the most important thing you could do to protect your reputation when your customer’s experience is out of your control. That’s why you need to know some specifics about what your service contract provider has to offer so you can be sure your customers are in good hands after they drive off your lot. Coverage Lookup A simple online coverage lookup tool is a great way for customers to learn details about their contract on a moment’s notice. Whether it’s start or end mileage, expiration dates, component coverage or a look at the contract itself, having this in place helps customers know exactly how they’re covered.

Find a Shop A customer’s nightmare is a mechanical breakdown far away from home. A nationwide network of service facilities is one thing but being able to easily find a shop in an unfamiliar area is another. This online application takes the worry out of an out-of-town breakdown. Quick Answers These days, consumers demand answers, and they demand them quickly and on their terms. Having a service contract provider that allows customers to submit questions via online forms, live chat or social media gives customers multiple options, so they can get answers in whatever way suits their busy schedules. Good Reviews Online reviews in today’s automotive industry are vital to success. The same goes for service contract providers. Stick to trusted sites like Google (sometimes hidden in the maps section), Facebook, or Consumer Affairs and look beyond just star ratings. While overall ratings are important on the surface, looking at how often a service contract responds and the frequency with which customers leave reviews will give you a sense of how that provider cares for your customers.



| By Christopher Leedom


How many of you are frustrated by the volume of voicemail – both left and received – during the average workday? Whether it is for sales, service or collections, your staff leaves dozens, if not hundreds, of voicemails every day. It has probably become one of the biggest drains of productivity and labor – though nevertheless necessary – until now. Do I have you scratching your head a bit? First, let me issue a challenge. Identify one employee in your dealership or finance company that interacts with your customer base on a daily basis – for instance, a salesperson, collector or service advisor. Next, identify 20 customers you need to communicate with that particular day. If you are a working with a collector, pick 20 accounts that just became delinquent. If you are in sales, pick 20 customers that need follow up. Take 10 of these customers and send them an SMS message initiating communication with them. Sales, service, or collections – it doesn’t matter. Call the other 10 customers, leaving a voicemail initiating communication if you don’t reach them. By the time you get done calling the 10 “phone call” customers, chances are 50 percent


of the SMS customers will have already texted you back! Why? Because 93 percent of SMS messages are read within 10 minutes and a return text is usually sent within 20 minutes. How does that compare to the voicemails? It’s no contest. You probably will connect with two or maybe three of the outbound phone calls and will likely leave seven or eight voicemails. I have observed this exercise with countless operations. Our organization has worked with thousands of dealers and finance companies over the past 20 years. When we started Textmaxx Pro four years ago, I could not have predicted the impact on productivity. We see it not just in the auto space, but across virtually every industry we serve. In today’s world everyone returns an SMS message well before returning a voicemail. There are countless studies that prove this. So how do you optimize your SMS messaging strategy? First, think of it the same as your phone system. You need a tool that is proprietary and resident to your business that will serve your SMS communication needs, and ensure compliance. I hear too many dealers say, “My employees are really good at texting – they use their

personal phones.” I cringe. Think about it, would you utilize your salesperson’s personal phone number when advertising on the web or in television commercials? Would you give each employee a copy of their entire CRM activity when they leave your dealership to work elsewhere? That is precisely what you are doing if you do not have a product that allows you to store, monitor and control all SMS activity. It doesn’t matter whether it is sales or collections. You need to retain and control those conversations for a host of reasons, not the least of which is compliance – but that is a topic for an entire article itself. If you want to eliminate – or at least greatly reduce – the wasted time and effort of phone tag, implement a well thought out customer contact strategy where SMS communication is your first form of communication. You will be amazed at the impact it will have on employee productivity. It is an incredibly effective way to communicate with your customers. In my opinion, it is even more effective in collections or service, where you already have a relationship with the customer. Studies show SMS messaging to be the preferred method of communication of most customers, across virtually every demographic. It is hands down the most efficient mode for just about every conversation. Chris Leedom is the CEO and founder of the Leedom Group. The Leedom Group includes Textmaxx Pro, a complete SMS messaging solution for small to medium businesses with a custom design for the automotive industry. You may reach Chris at chris@leedomgroup.com.



Before he experienced it, Bradley always thought homelessness was rock bottom for addicts. As his alcoholism spiraled into joblessness and then homelessness, he realized his bottom was farther down. For Bradley, a Marine veteran, daily life on the streets was like preparing for war. Although he never experienced combat, he utilized his military survival skills – struggling on the streets, unsure how to end his desperate isolation. By the time Bradley came to Portland Rescue Mission looking for food and warmth, he was exhausted and ready for a change. Bradley decided to enter Portland Rescue Mission’s New Life Program, a longterm recovery program. In the program, Bradley found support and community that moved him out of the addiction that had isolated him and into relationships, restoration and hope. Drive Away Hunger, a social enterprise run by Portland Rescue Mission, played an essential part in giving Bradley’s life direction into freedom. Started 15 years ago with the vision to help people like Bradley, Drive Away Hunger offers job training so

Drive Away Hunger graduate Bradley

struggling people can get back on their feet with skills that provide stability. It is part of Portland Rescue Mission’s goal to meet people where they are and walk with them at a pace they can sustain. OIADA Takes a Look at a Different Reason to Sell Used Cars This unique program takes unwanted vehicles from individuals, businesses and car dealers and puts them through a 70-point safety inspection. The vehicle inspection and repair provides job training while sales of the vehicles fund Portland Rescue Mission’s homeless ministry to men, women and children who need food, shelter and other vital services. The average car donation helps provide more than 580 meals or 100 nights of shelter

for men, women and children at Portland Rescue Mission’s three locations: Burnside Shelter, The Harbor and Shepherd’s Door. Bradley’s life has changed 180 degrees. He graduated from the New Life program and is now employed at Drive Away Hunger as a mechanic. Bradley got married and is a proud grandpa. Reflecting on his time in the New Life program, Bradley remembers that when he came to train at Drive Away Hunger, “I couldn’t change oil. Now I am a mechanic. This gave me what I needed to begin the journey out of where I was.” For more information about Drive Away Hunger visit www.DriveAwayHunger.org.



NIADA Region II vice president Michael Darrow (left) with Senate Majority Leader Mitch McConnell. t



t Texas IADA executive director

Jeff Martin (left) and NIADA’s Shaun Petersen (second from right) met with Speaker of the House Nancy Pelosi and Rep. Henry Cuellar.

t NIADA and used car industry leaders visited Capitol Hill for a series of meetings with legislators and key committee staff.

Latest Government Issues & Activity

NIADA is your voice in Washington D.C., advocating for independent dealers, the used vehicle industry and small business. Here’s a look at the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities. PAC NIADA met with the Speaker of the House of Representatives, Rep. Nancy Pelosi (D-Calif.), on Feb. 21 in San Antonio, Texas. The meeting was arranged by Rep. Henry Cuellar (D-Texas), a longtime friend of the independent used vehicle industry and a featured speaker at the NIADA National Policy Conference in 2016. Texas IADA executive director Jeff Martin and I attended the event, which also included Rep. Joaquin Castro (D-Texas). The group was small, allowing us an ample opportunity to speak to all three legislators about the used vehicle industry and explain NIADA’s positions on some of the issues affecting it. Five days later, members of NIADA’s executive committee, legislative committee and Buy Here-Pay Here commission traveled to Washington for a series of Congressional meetings, sponsored by PassTime. It began Feb. 26 with an event for Sen. John Cornyn (R-Texas) that drew more than a dozen senators, including Senate Majority Leader Mitch McConnell (R-Ky.), Sen. Ted Cruz (R-Texas), Sen. Jerry Moran (R-Kan.), Sen. Susan Collins (R-Maine), Sen. John Thune (R-S.D.), Sen. Lamar Alexander (R-Tenn.), Sen. Marsha Blackburn (R-Tenn.) and Sen. James Lankford (R-Okla.). We were able to speak with all of them about our industry and our issues. The next day we met with freshman legislators as well as new committee chairs and ranking members of the 116th Congress and discussed issues expected to be considered during the next two years, including recalls, CFPB reform, privacy issues and tariffs. The NIADA group met with the members of the House Financial Services, Energy and Commerce, and Transportation committees, and the Senate Banking and Commerce committees.


REGULATORY More than 7 million people were at least 90 days delinquent on their car payment at the end of 2018 – an all-time high and more than a million more than in 2010 – according to a report from the Federal Reserve Bank of New York’s Center for Microeconomic Data. The New York Fed called that number, based on data from Equifax, “surprising” considering the strong and growing economy and shrinking unemployment. But in a post on the Liberty Street Economics blog, Fed economists Andrew Haughwout, Donghoon Lee, Joelle Scally and Wilbert van der Klaauw pointed out there are more delinquencies than ever before in part because there are more total borrowers than ever before. More than 89 million people now have some form of auto financing, the most on record since the Fed and Equifax began compiling that data in 1999, with a total balance of $1.27 trillion, another record. “With growth in auto loan participation, there are now more subprime auto loan borrowers than ever, and thus a larger group of borrowers at high risk of delinquency,” they explained. And they noted the quality of borrowers is trending upward, saying, “2018’s strength in auto loans was primarily driven by those originated by the most creditworthy individuals, while originations to those with scores below 720 have leveled off, albeit at high volumes.” The large volume of loans, they said, caused a “quality shift,” as borrowers with credit scores better than 760 accounted for 30 percent of the outstanding debt. Only 22 percent was originated to subprime borrowers. “These percentages would suggest the overall auto loan stock is the highest quality we have observed since our data began,” they said.

LEGISLATIVE Executives from Equifax, Experian and TransUnion were called to testify before the House Financial Services Committee, which is considering changes to the credit reporting system. The committee noted it has been 15 years since the issue of credit reporting has undergone “comprehensive reform” at the federal level, and cited Equifax’s massive 2017 cybersecurity breach in asserting “there are numerous shortcomings with the current system that need to be addressed.” In his testimony, TransUnion president and CEO James Peck said the U.S. economy provides more “quick and straightforward access to credit” than any in the world, and he offered the committee six ways the credit reporting process could be improved, calling for more timely updates of critical credit events, establishing new standards for reporting student loan data, increasing the number of Americans able to access credit, helping improve scores and access to credit innovations, protecting Social Security numbers and enhancing financial education. GRASS ROOTS A report by New Jersey’s State Commission of Investigation alleging widespread wrongdoing by “predatory” used car dealers has spawned a pair of bills in the state legislature aimed at tightening regulations in the industry. The report focused primarily on “multi-dealer locations” – locations that provide an address for “dealers” who do not have a lot or who operate in other states. The report described them as fronts for shady operators to obtain a dealer license. Assemblyman Paul Moriarty, the bills’ primary sponsor, said the report showed “the New Jersey used car industry – specifically the multi-dealer locations – is rife with fraud and deceit and in some cases unlawful activity.” One of the bills would prohibit “as is” sales in the state, increase the limitations of the implied warranty on used cars and require dealers to offer contract cancellation options. The other would transfer licensing and enforcement power from the state’s Motor Vehicle Commission to the Department of Consumer Affairs in the attorney general’s office. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.





The DMV, business regulation and fraud prevention section, is proposing to amend administrative rules that may have an economic effect on state agencies, local government bodies and business, including small businesses.  DMV believes the definition of “normal business hours” is too broad because it includes “any activity,” including “displaying a new or used vehicle, trailer or semitrailer for sale.” DMV is proposing to amend OAR 735-150-0010 to clarify the definition of “normal business hours.” DMV is proposing to amend OAR 735-1500030 to require vehicle dealers to display their normal business hours to the public at their licensed location. The proposed amendment also includes a requirement that vehicle dealers normal business hours must include four hours, in intervals of no less than two consecutive hours, on at least one day of the week between 8 a.m. and 5 p.m., Monday through Friday. The proposed amendment to OAR 735-1500030 will help DMV enforce OAR 735-150-


0030(1)(b), which requires vehicle dealers to provide a means for the public to contact the dealer or an employee of the dealer at all times during the dealer’s normal business hours. Additionally, the proposed amendment will provide DMV with the dealer’s normal business hours so DMV can conduct unscheduled administrative inspections during the timeframe when the dealer has identified themselves to be open to the public. 735-150-0010 Definitions As used in this division and ORS Chapter 822: (1) “Additional (or supplemental) place of business” or “additional (or supplemental) location” means a location, other than one exempted under OAR 735-150-0020, that is more than 500 feet from any other business location of the dealer that is operated under the same name as the main business location.

(2) “Advertise” means to offer a vehicle for sale or to communicate to the public that a person is acting as a vehicle dealer by any oral, written, or graphic means including, but not limited to, handbills, the Internet, newspapers, signs, television, billboards, radio, and telephone directories. (3) “Agent” means any dealer possessing a current valid vehicle dealer certificate issued under ORS 822.020, who accepts applications and fees for the titling and registration of vehicles sold by the dealer and who performs such other duties related to the titling and registration of vehicles as DMV authorizes under the rules set forth in division 150. (4) “Applicant” means a person that applies for the issuance or renewal of a vehicle dealer certificate under ORS 822.020, 822.040 and these division 150 rules. (5) “Broker” has the same meaning as “motor vehicle broker” as defined in ORS 822.047(1). (6) “Brokerage services” has the same meaning as defined in ORS 822.047(1).

(7) “Business day” means Monday through Saturday and does not include Sundays or State of Oregon and federal legal holidays. (8) “Buyer,” “purchaser” and “lessee” have the same meaning as “owner” as defined in ORS 801.375. (9) “Cancellation” has the same meaning as “revocation” as defined in section (31) of this rule. (10) “Certified dealer” means a vehicle dealer who holds a vehicle dealer certificate issued or renewed under ORS 822.020 or 822.040. (11) “Circumstances beyond the dealer’s control,” as used in ORS 822.045(3)(b) and OAR 735-150-0050(5) means: (a) That the dealer could not get the title from any state and the prior security interest holder was paid in full by the dealer; and (b) The delay was a result of the security interest holder failing to release title; or (c) DMV may consider the follow mitigating circumstances if those circumstances result in the physical destruction of, or inaccessibility to, vehicle records necessary to prove compliance with ORS 822.045(1) and OAR 735-150-0050(5): (A) The direct result of clearly-established fraud or other criminal activity against the vehicle dealer, as determined in a criminal or civil action in a court of law or independently corroborated by a report of a law enforcement agency or insurer or the sworn testimony or affidavit of an accountant or the person who actually engaged in the criminal activity. This mitigating circumstance does not apply if the dealer is the perpetrator of the wrongdoing described in this paragraph; or (B) The direct result of fire, flood or other calamitous event, resulting in physical destruction of, or inaccessibility to vehicle records to prove compliance with ORS 822.045(1) and OAR 735-150-0050(5). (12) “Closure” means a vehicle dealership that no longer has legal authority to conduct dealer-related activity. For example, a dealer’s certificate issued under ORS 822.020 is expired, cancelled, suspended or revoked. (13) “Clearly marked” means the notice and dealer contact information required under ORS 822.040(4)(b) and OAR 735-150-0033 is conspicuously posted on the window of each display vehicle, is in plain view of the public and is legible at a distance of six feet or more. (14) “Date of sale,” or use of similar terms to indicate the day the sale occurred, means the date the purchaser takes possession of the vehicle. This does not apply to vehicles purchased by a dealer at wholesale auction. With respect to auto auctions and for purposes of consignor payment under ORS 822.060(1)(d), “date of sale” means the date upon which the consigning party delivers the necessary title documents to the purchasing dealer. (15) “Dealer” means a person who engages in any of the activities described in ORS 822.005, except those persons exempted by ORS 822.015. (16) “Dealership,” “place of business” or “business location” means a location within the State of Oregon where activities specified

in ORS 822.005 take place. (17) “Designated dealer” means a certified dealer who has been authorized to act as an agent of DMV under OAR 735-150-0040. (18) “DMV” means the Driver and Motor Vehicle Services Division of the Oregon Department of Transportation. (19) “DMV administrator” means the administrator of the Driver and Motor Vehicles Services Division of the Oregon Department of Transportation. (20) “Employee,” for purposes of ORS 822.015 and OAR division 150, means a person over whom a dealer exercises the type of control typically associated with an employer, including but not limited to: (a) Determining the frequency, method and amount of compensation; (b) Determining whether the person’s work is continuous or intermittent; (c) Determining the hours or frequency of a person’s work; or (d) Retaining the ability to terminate the relationship. (21) “Good faith effort” as used in ORS 822.045(3) means action satisfactory to DMV that a vehicle dealer complied with the requirements set forth in OAR 735-1500050(1) and (2). (a) DMV will determine that the dealer’s efforts are in good faith if written documentation is provided that verifies: (A) Action(s) was taken by the dealer within 10 days of sale to resolve problems with providing transfer of ownership; and (B) The dealer provided complete and timely information to the customer concerning any problems encountered and actions being taken to resolve them. (b) DMV will not accept a good faith effort by a dealer if, before the sale of the vehicle, the dealer knows or reasonably should know that title transfer could not be completed within 30 days. (22) “Licensed dealer” as used in ORS 822.015, 822.045 and division 150 means a person who is currently licensed as a vehicle dealer in another jurisdiction. (23) “Location,” “main business location” or “main dealership” means a location identified and listed as the dealer’s main business location on the most current application for vehicle dealer certificate. (24) “Normal business hours” or “dealer’s normal business hours” means the days and times listed at the dealer’s main, and if applicable, supplemental business location(s) in accordance with OAR 735-1500030(1)(c). (25) “Person” means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation or any other legal or commercial entity. (26) “Permanent revocation” means to permanently revoke a vehicle dealer certificate and the right to apply for a vehicle dealer certificate. (27) “Probation” means a period of time specified by DMV during which a vehicle dealer may continue to operate, but only under the terms or conditions established

by DMV. (28) “Principal” means any owner, partner of a partnership, corporate officer, proprietor of a sole proprietorship, LLC member, or other person who controls the business entity. (29) “Purchaser” has the same meaning as buyer or lessee. (30) “Rebuilder” means a person engaged in conducting a “vehicle rebuilding business” as specified in ORS 822.070. (31) “Revocation” means to void and terminate a vehicle dealer certificate. Unless permanently revoked, DMV will specify the period of time before the person subject to the revocation may apply for a new vehicle dealer certificate. (32) “Sanction” means an action taken against a vehicle dealer by DMV in cases of non-compliance, fraud, misuse or abuse of privileges granted by a vehicle dealer certificate pursuant to a violation of the Oregon Vehicle Code or any rule adopted by DMV relating to vehicle dealers or the operation of a vehicle dealership. (33) “Suspension” means a period of time specified by DMV during which a vehicle dealer is prohibited from: (a) Buying, selling, trading, exchanging any vehicle or providing brokerage services. This includes, but is not limited to, providing information about price, quality, availability, payment terms, or any other information specific to the sale of a vehicle; and (b) Acting as DMV’s agent. (34) “Violation” means any violation by a person or vehicle dealer of the Oregon Vehicle Code or any rules adopted by DMV in accordance with ORS 822.009(1) and (2). (35) “Warning” means a documented oral warning to the principal of a dealership or a written correction notice issued to the principal, or an employee of the dealership. Statutory/Other Authority: ORS 184.619, 802.010 & 822.035 Statutes/Other Implemented: ORS 822.005, 822.007, 822.009, 822.020, 822.022, 822.025, 822.027, 822.030, 822.033, 822.035, 822.040, 822.042, 822.043, 822.045, 822.046, 822.047, 822.050, 822.055, 822.060, 822.065, 822.070 and 822.080 735-150-0030 Dealer Location Regulations (1) Except as permitted under section (2) of this rule, each business location established by a dealer must: (a) Have sufficient space to display one or more vehicles of the type the dealer has been issued a certificate to sell; (b) Provide a means for the public to contact the dealer or an employee of the dealer at all times during the dealer’s normal business hours; (c) Display the normal business hours, including the days and hours the business location is scheduled to be open to the public, in a conspicuous location that is clearly visible to the public at all times. For example, on the exterior of the front door of the building. Normal business hours must CONTINUED ON PAGE 16



include four hours, in intervals of no less than two consecutive hours, on at least one day of the week between 8 a.m. and 5 p.m., Monday through Friday. (d) Display an exterior sign, permanently affixed to the land or a building, that identifies the dealership by the name printed on the vehicle dealer certificate, with letters clearly visible to the major avenue of traffic; and (e) Display, in a publicly accessible and conspicuous manner, the vehicle dealer certificate. (2) Where zoning or local ordinance prevent compliance, DMV may exempt a dealer from the requirements of subsections (1)(a), (b), (c), or (d) of this rule if the dealer: (a) Submits a written request for the exemption(s) to DMV documenting why an exemption should be granted; (b) Agrees to an on-site inspection if required by DMV to determine the validity of the request and to seek reasonable alternatives to the exemption(s) requested; and (c) Complies with any alternative proposed by DMV that substantially meets the requirements for the exemption requested. (3) The following apply to dealer locations, unless exempt under OAR 735-150-0020: (a) A dealer must have a certificate or supplemental certificate for each location where the dealer sells or displays vehicles for sale. A dealer who uses a supplemental place of business, must have a supplemental certificate from DMV before business can be conducted at the supplemental location; and (b) A dealer who moves a place of business or changes the business name must submit to DMV a completed and signed DMV Application to Correct Dealer/Rebuilder Vehicle Dealer Certificate and obtain a corrected dealer certificate before business can be conducted. The dealer must submit the application at least three days before the date of the move or name change. (4) All locations from which a rebuilder conducts a “vehicle rebuilding business” as described in ORS 822.070 must be listed on an application for a vehicle dealer certificate as either the main business location or a supplemental business location. Each location must comply with the requirements of section (1) of this rule unless DMV grants the rebuilder an exemption under section (2) of this rule. Statutory/Other Authority: ORS 184.619, 802.010, 822.025, 822.035, 822.040 & 822.045 Statutes/Other Implemented: ORS 822.020, 822.035 & 822.040 The DMV, vehicle programs section, is proposing the amendment of an administrative rule that may have an economic effect on state agencies, local government bodies and business, including small businesses.  OAR 735-032-0010 establishes the plate manufacturing fees as required by ORS 803.570. The department has determined that the cost to manufacture a pair of


plates has crossed the half-dollar threshold and now requires the department to round up to the next half-dollar. This only affects the cost of a pair of plates. The cost for a single plate is not changing with this rulemaking. 735-032-0010 Registration Plate Fees (1) ORS 803.570 requires DMV to establish the fee amounts for each registration plate issued and for each pair of plates issued. (2) The plate fee amounts are calculated by: (a) Determining the cost to manufacture a single registration plate and a pair of registration plates (cost), respectively, and rounding the cost amount(s) to the next higher half-dollar; and (b) Adding $10 for a single plate and $20 for a pair of plates, respectively. (3) Based on the calculation under section (2) of this rule, registration plate fees are: (a) $12 for a single plate issued ($2 cost + $10 = $12). (b) $24.50 for a pair of plates issued ($4.50 cost + $20 = $24.50). Statutory/Other Authority: ORS184.619, 802.010 & 803.570 Statutes/Other Implemented: ORS 803.570 DMV - Dealer Updates to Title and Registration Handbooks The February 2019 revision of the Title and Registration Handbook is available at OregonDMV.com. The handbook is normally updated quarterly. The next revision is set for May. You may buy a printed copy from Oregon Independent Auto Dealers Association. Contact OIADA at 503-362-6839, info@ OIADA.com or www.oiada.com. Changes in the February 2019 Handbook revision are as follows. Cover page – the cover page reflects the latest revision date of 02-19. Chapter T, Flags, has been deleted from the manual. In the new DMV system, flags have been replaced with “indicators.” These are notations on the vehicle record that denotes the status of the vehicle. Most indicators are self-explanatory. All references to flags in the manual have been replaced with the indicator title. If you have a question concerning an indicator on the record, call customer assistance at (503) 945-5000. Chapter B, Application for Title and Registration, Form 226 has been revised. Dealers can use the existing stock of previous versions of the Form 226. An example of the Application for Title and Registration, Form 226 dated 1-19, has been added to the chapter. There are some changes which are explained in another Dealer Details article. Chapter D, Miscellaneous Title Application Information – The Oregon Vehicle Dealer Expedite Title Service envelope, Form 333Y, has been replaced with the latest version. The Third Party Authorization to Pick up a Dealer Expedite Title, Form 7287, has been replaced with the

latest revision, dated 4-18. Chapter F, Ownership Documents – The Oregon Certificate of Title, revised 1-19, has been added to the chapter. This title is printed on 8½-by-11-inch paper, but the page is perforated. The actual title is 8½ by 8½ inches. Chapter H, Odometer Disclosure Requirements – The Power of Attorney, Form 500, has been replaced with the latest revision dated 4-18. Chapter I, Security Interest Perfection – The Transitional Ownership Document (TOD) date chart has been replaced for 2019. Chapter J, Damaged/Totaled Vehicles – The Oregon Salvage Title Certificate, Form 417, has been replaced with the latest revision dated 1-19. This title is printed on 8½-by-11inch paper, but the page is perforated. The actual title is 8½ by 8½ inches. Chapter K, Registration – The Application for Registration, Renewal, Replacement or Transfer of Plates and/or Stickers, Form 268, has been replaced with the latest revision dated 1-19. Newer Model Year information has been updated to show current dates as they relate to 2019 for DEQ determination. The Certification of Oregon Residency or Domicile, Form 7182, has been replaced with the latest revision dated 9-18. The 2018 Legislature approved the Special Registration Plate Program. The Gray Whale plate is part of this program. These plates may be issued to passenger vehicles only. Passenger vehicles may be issued custom plates with the Gray Whale plate background. The Custom Plate Application, Form 205, has been replaced with the latest revision dated 2-18. The Application for Amateur Radio Operator Registration Plates, Form 231, (Ham Plates) has been replaced with the latest revision dated 5-18. Chapter L, Vehicle Types – Ham radio passenger plates may be issued on Special Registration Plate Program (Gray Whale) backgrounds. Chapter M, Fees – Special Registration Plate Program fees have been added to the chapter. The Heavy Motor Vehicles and Buses Fee Schedule, Form 6013, has been replaced with the latest revision dated 11-18. Chapter P, Dismantlers – The indicator “In Dismantler Stock” has replaced the Flags 35 and 38 in the DMV system. This indicator is added to the vehicle record upon receipt of a Dismantler’s Notice, Form 270. The Dismantler’s Vehicle Notice to Driver and Motor Vehicle Services, Form 270, has been replaced with the latest revision dated 10-18. Chapter R, Dealers – The Notice of Sale or Transfer of a Vehicle, Form 6890, and the Dealer Notice of Vehicle Purchase, Form 165, can be submitted to DMV by accessing DMV2U. Information about DMV2U is in another Dealer Details article. The Dealer Notice of Vehicle Purchase, Form 165, has been replaced with the latest revision dated 12-18. Index – The index has been updated to remove Chapter T, Flags. References to the Special Registration Plate Program, including the Gray Whale Plate, and DMV2U have been added to the index.


By Allison L. Harrison



WHAT IS THE DIFFERENCE? A lot of my clients offer their own limited warranty or service contract to give buyers peace of mind about their new purchase. A warranty or service contract can be extremely beneficial to the consumer and the business, but it must be done correctly. If it is not, it opens the dealer up to endless liability. I frequently hear dealers use “service contract” and “warranty” interchangeably. This is dangerous as each term is defined differently and creates a different list of obligations for the dealer. A “warranty” is (A) any written affirmation or promise made in connection with the sale of a vehicle by a dealer to a consumer which relates to the nature of the material or workmanship and affirms or promises that such material or workmanship is defect free or will meet a specified level of performance over a specified period of time or (B) any undertaking in writing in connection with the sale by a dealer of a vehicle to refund, repair, replace, or take other remedial action with respect to such product in the event that such product failed to meet the specifications set forth in the undertaking, which written affirmation, promise, or undertaking becomes part of the basis of the margin between a supplier and buyer for purposes other than resale of the product. MARKET WATCH |

A “service contract” is a writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair (or both) of the vehicle. With a warranty, the dealer is essentially telling the customer the vehicle will not break, but if it does here is how we will fix it. Under a service contract, the dealer is not making any representation about the current or future condition of the car. The service contract states if X happens, you will not have to pay full price to have it fixed. The bigger difference between a service contract and warranty is who pays for the product. Warranties are included in the price of the vehicle and cannot be part of the bargain. A service contract is paid for by the consumer in addition to the price of the vehicle and can be negotiated as to how extensive the coverage is and how much it costs. Often dealers will sell a “warranty” when in fact the dealer is selling a service contract. If you include repair coverage for free with each vehicle, you are offering a warranty. If you offer repair coverage for a fee in the F&I office, it is a service contract. This is an important distinction, especially if the matter is ever litigated. A breach of warranty claim may allow for the recovery

of more damages, including attorney’s fees, where a breach of contract will be limited to the customer’s actual damages. If you are offering either a warranty or a service contract, you must have written agreement beyond the buyer’s guide. The buyer’s guide is meant to be a disclosure, not a warranty or service contract. Under federal law, a written warranty shall include the following information: (a) name and address of warrantor(s), (b) party/parties to whom the warranty is extended, (c) parts covered, (d) statement of what warrantor will do in the event of a defect and how long they have to do it, (e) a statement of what expense, if any, the consumer must bear, (f) exceptions and exclusions from coverage, (g) dispute settlement procedure and general description of remedies available, (h) period of time the warranty is valid, and (i) period of time in which warrantor will perform warranty obligations. Federal law does not provide requirements of a service contract, but the service contract should have similar terms disclosed as the warranty. If you are unclear whether you are offering a warranty or a service contract, call your attorney or Allison Harrison at (614) 440-1395.

By Danny Delich


A CUSTOMER FAVORITE The advantages of selling Certified PreOwned (CPO) vehicles are varied and many, but reduced to the common denominator: a properly utilized CPO program will help you sell more cars. Why? For the customer, a CPO program puts your dealership a cut above the rest because it promises a quality used vehicle without the risks normally associated with the used vehicle marketplace. For example, what if a customer purchases a used car that ends up needing expensive repairs? They can pay the expense themselves or sell the car. If they sell, they either lie about the condition or take a loss when disclosing the vehicle’s issues. A CPO vehicle eliminates this dilemma, thus eliminating the customer’s fear of getting stuck with a lemon. In all likelihood, a CPO car will be a highquality used vehicle that gives the customer a problem-free ownership experience. For one thing, the certification process puts each vehicle through dealership

reconditioning dictated by an extensive inspection checklist of more than 100 items, ranging from mechanical parts to the condition of the vehicle’s interior. So you and your customer already know the vehicle is sound, inside and out. This is a fact upon which you can build solid negotiations. Added benefits include a limited warranty (which further reassures your customer they won’t be hung out to dry in case of mechanical problems), roadside assistance and provisions for a loaner vehicle if their vehicle is held for covered repairs. These benefits raise the perceived (and actual) value of the program in the eyes of the customer and give peace of mind that makes it worthwhile for the customer to pay a little more – and they realize that. These features add value and should also be discussed during negotiations. Even though the cost of CPO vehicle is a bit higher, your customer saves money in other ways, such as depreciation. According to Carfax, a typical new vehicle

loses 20 percent of its value in the first year of ownership. That means a $30,000 new car will be worth only $24,000 just one year later. Naturally, any vehicle will continue to depreciate as it ages, but it can be at a much slower rate. Certification allows the customer to buy an “almost new” model for less, which will better hold its value until they’re ready to pass it on to the next owner. And they can enjoy this advantage without worry because although the vehicle is older, it is of certified quality. And who wouldn’t return to a dealership that was able put them into the car of their dreams without the usual worries of a used car purchase? With the knowledge that they’re covered by a limited warranty? Secure they’ll never be stranded at the side of the road? And with the reassurance they’ll have a ride to work even if the car is in the shop for a covered repair? I know I’d be a customer for life, and I’d send my family. Danny Delich is senior vice president at Peak Performance Team.



READ & RESPOND CERTIFY BELOW Complete this test and certify below that you have read the articles for April 2019.


True/False: With built-in artificial intelligence and machine learning, you can find the right car at the right price, in a transparent and fair process, all in about an hour.


Which of the following is a possible reason why your Facebook page is failing? (a) Y  our page lacks the human touch. (b) You don’t fully understand your target audience. (c) You have no defined goals. (d) All of the above. True/False: Facebook Insights (your page analytics tool) gives you all the metrics you need to judge how your page is doing.


True/False: Partnering with a service contract provider that has the tools in place to take care of your customers the way you’d want them treated is perhaps the most important thing you could do to protect your reputation when your customer’s experience is out of your control.


What percentage of SMS messages are read within 10 minutes? (a) 45% (b) 57% (c) 82% (d) 93%


True/False: As used in ORS Chapter 822, “applicant” means a person that applies for the issuance or renewal of a vehicle dealer certificate under ORS 822.020, 822.040 and these division 150 rules. In the latest updates to title and registration handbooks, what has been deleted from Chapter T of the manual? (a) Flags (b) Indicators (c) Forms (d) Fees


True/False: A “service contract” is a writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair (or both) of the vehicle. What is a warranty? (a) Any written affirmation or promise made in connection with the sale of a vehicle by a dealer to a consumer which relates to the nature of the material or workmanship and affirms or promises that such material or workmanship is defect free or will meet a specified level of performance over a specified period of time. (b) Any undertaking in writing in connection with the sale by a dealer of a vehicle to refund, repair, replace, or take other remedial action with respect to such product in the event that such product failed to meet the specifications set forth in the undertaking, which written affirmation, promise, or undertaking becomes part of the basis of the margin between a supplier and buyer for purposes other than resale of the product. (c) Both A & B. (d) None of the above.

True/False: Warranties are included in the price of the vehicle and cannot be part of the bargain. A service contract is paid for by the consumer in addition to the price of the vehicle and can be negotiated as to how extensive the coverage is and how much it costs. I certify to OIADA that I have personally read these articles in The Oregon Dealer News Magazine for April 2019. STOP!! Before you sign and send this form, make sure you have answered and completed all the quiz questions to receive Continued Education Credits.

My Name ___________________________________ Dealership Name _____________________________ ____________________________________________ Dealership # _________________________________ Dealer License Expiration Date: (Month) ____________________________________________ (Year)_______________________________________ Signed: _____________________________________ Date _______________________________________

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OR | Oregon Dealer News | April 2019  

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