DEALER NEWS
The need for strong human relationship s remains crucial
PEOPLE, PEOPLE, PEOPLE WHAT DON'T YOU WANT?
Explaining the FTC’s meaning of "Express Informed Consent-(EIC)"
THURSDAYS
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1000 Units Weekly
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Thank you for your partnership in 2024 We look forward to growing together and achieving even greater success in the new year
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Truck and Specialty sale on the last Thursday of every month
DEALERS ASSOCIATION
• MARYLAND • DELAWARE 1501 North Front St., Harrisburg, PA 17102 (717) 238-9002 | midatlanticiada.org (717) 238-9002 | midatlanticiada.org
EXECUTIVE BOARD
Bert Straub, President 1st Choice Auto LLC, Fairview, PA bertcstraub@gmail.com
Dan Limongelli, President-Elect
Jo Dan Motors, Plains, PA jodanmotors@gmail.com
Danielle Royer, Treasurer Royer’s 322 Motors, DuBois, PA royers322motors@gmail.com
Michael Mansour, Secretary Car Connection, New Castle, PA mike@carconnection1.com
Noah Melamed, Chairman Ticket to Ride Auto, Lancaster, PA nmelamed@yourttr.com
BOARD MEMBERS
Clint Weaver
America's Auto Auction, Harrisburg, PA clint.weaver@americasautoauction.com
Lisa Cohowicz
North East Pennsylvania Auto Auction, Scranton, PA lisac@nepautoauction.com
Tom Hodges
Tom Hodges Auto Sales, Hollywood, MD tom@tomhodgesauto.com
Beth Melamed
Ticket to Ride Auto, Lancaster, PA bmelamed@yourttr.com
Gregg Pachik
Manheim Philadelphia, Hatfield, PA gregg.pachik@manheim.com
Kerri Rotunda
America’s Auto Auction Erie, Corry, PA kerrir@corryade.com
Tom Campbell
Reliable Car Connection, Allentown, PA tcampbell@reliablecarconnection.com
Gunnar Horst
Advantage Auto Sales & Credit, Quakertown, PA gunnarh@wefinanceyou123.com
Jashan Singh-Singh Automotive Sales LLC, Millersville, PA jashanf1@gmail.com
Melissa Rowan
Red White and Blue Autos, Inc., Ashland, PA melissa@rwbautos.com
Tom Brandis, Executive Director tom@midatlanticiada.org | (215) 805-2034
Kathy Sabaski, Deputy Executive Director kathy@midatlanticiada.org | (267) 733-5402
Copyright 2025
2 0 2 5
HAPPY NEW YEAR
People, People, People
The Buy Here Pay Here (BHPH) industry has evolved since the 1960s, addressing challenges for customers financing vehicle purchases. It has shifted from personal interactions to a technology-driven model with online sales and automation. However, the need for strong human relationships remains crucial, as automation can impact customer engagement and sales.
What Don't You Want? Explaining the FTC’s meaning of “Express Informed Consent-(EIC)”
The FTC's CARS rule highlights essential questions about express informed consent (EIC) for car dealers. It emphasizes that EIC requires clear consumer agreement beyond signatures. Understand the implications of a negative definition" in compliance while reducing risk.
Pennsylvania’s Legislative Session Closes
The Pennsylvania General Assembly's 209th Session begins January 7, 2025, with all unpassed legislation needing reintroduction. Despite a divided government, fresh faces will emerge due to 19 retirements, including a Senate defeat. Republican Dave Sunday will be sworn in as the new Attorney General, setting the stage for collaboration on key issues, particularly in the automotive industry, in the upcoming year.
New Year, Same Challenges
As we close the chapter on 2024, the challenges facing the auto finance industry remain ever-present. With increasing regulatory scrutiny and empowered consumers wielding social media as a tool, it's crucial to prioritize compliance and proactive measures. This article delves into the pressing issues at hand and offers a timeless mantra for industry leaders: commit to a thorough annual review and enhance your practices to safeguard your business.
The Importance of Tax Season for Your Sales Team
Tax season is a prime opportunity for dealerships to increase sales and strengthen customer ties. Learn how leveraging tax refunds can enhance down payments and approvals. Discover how Tax Max can elevate your approach with same-day refund advances and tailored strategies for every dealership model.
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MIDATLANTIC STAFF
TOMMY BRANDIS
Executive Director (215) 805-2034 tom@midatlanticiada.org
KATHY SABASKI
Deputy Executive Director (717) 238-9002 kathy@midatlanticiada.org
STEVE SMITH
Operations Manager (717) 238-9002 steve@midatlanticiada.org
CYNTHIA SLEMONS
Membership Specialist (717) 238-9002 cynthia@midatlanticiada.org
NICOLE AUTRY
Dealer Set-Up Unit (717) 317-1966 nicole@midatlanticiada.org
INDIA THOMAS
Lead Title Clerk (717) 238-9002 india@midatlanticiada.org
ALLY LANIOUS
Business Assistant (717) 238-9002 ally@midatlanticiada.org
How may we help you?
Learn more about your Association staff members serving you! Our friendly and knowledgeable staff is always here to help members. Call or email us today!
PRESIDENT'S MESSAGE
Digging Out Together in Erie
Robert “Bert” Straub President, MidAtlantic IADA
Happy New Year, fellow dealers!
I hope this letter finds you warm, dry, and still smiling after what I’m calling the Great Erie Snowpocalypse of 2024. If you haven’t heard, Erie, Pennsylvania just set a record for snowfall on December 1. That’s right— when the calendar flipped to December, Mother Nature flipped a switch and dumped what felt like a dealership-sized mountain of snow on us.
Now, I don’t know about you, but there’s something oddly humbling about watching a foot of snow swallow your inventory overnight. It’s
like the cars decided they were auditioning for roles in Frozen. And as much as I love being a small independent dealer, I’ll admit it—digging out my lot with a snow shovel felt more like an Olympic sport than a business operation.
But here’s the thing: as small dealers, we know how to roll with the punches (or snowballs, in this case). We don’t have fleets of plow trucks or endless crews of workers. What we do have is grit, humor, and maybe a neighbor with a snowblower who owes us a favor.There’s a certain charm to the controlled chaos, isn’t there? For every minute I spent clearing snow, I also spent two minutes laughing at the absurdity of the situation. I mean, where else can you hear a customer ask, “Do you have anything with heated seats?” while standing knee-deep in a snowbank? And let’s be honest—when it’s your own business, you don’t mind getting your hands (or gloves) dirty.
Despite the challenges, I’m grateful for this community. The holidays reminded me of how lucky we are to share this space with hardworking, resilient people who genuinely care about what they do. Whether you’re digging out your lot, managing your sales, or simply trying to keep your coffee from freezing on the desk, know that you’re not alone in the trenches.
As we kick off 2025, I want to wish all of you a Happy New Year. I hope your holidays were filled with joy, laughter, and maybe a little less snw than mine. Here’s to another year of growth, opportunity, and plenty of four-wheel drive sales to keep us all moving forward.Let’s embrace the challenges ahead with the same resilience and humor that make independent dealers like us stand out. Remember, it’s not just about selling cars—it’s about the drive, both figuratively and literally. Stay warm, stay positive, and maybe invest in a bigger snow shovel.
Here’s to a great year ahead!
Sincerely,
ADVERVTISE WITHIN
DEALER
To advertise in the MidAtlantic Dealer News magazine, please send a request via email to ally@midatlanticiada.org
A brief message from the Executive Director
Hello Dealers,
Happy New Year!!! I hope everyone enjoyed a wonderful holiday season. I think I speak for most of us when I say that even though we enjoy the holiday time with family and friends, we are looking forward to hitting the ground running in 2025. I am sure our auction friends are happy to put those crazy holiday weeks in the rearview mirror.
The TEAM at MidAtlantic HQ has been working hard on new member benefits for 2025. If you haven’t noticed, I want to welcome you to the First Edition of our “new look” magazine. We have decided to bring the creative and decisionmaking process in house in hopes of bringing more consistent and informative content with personal feel focused on you, our member. One new feature is our interactive vendor page. Just click on the QR Code and you will be sent directly to our website where you will be able to learn about each vendor and can link directly to their website. Pretty cool technology if you ask me.
We are also simplifying our membership renewal process. We will be offering a payment option using a QR Code or a Pay Now link on invoices and emails that will be available in early 2025. After the bugs are worked out, we hope to extend this technology to other areas as well, like when ordering forms, paying for title work or registering for our convention.
Speaking of convention… We've officially signed the contract for the 2025 MidAtlantic Convention & Vendor Tailgate!!! Save the Date!!! October 1921, 2025, at Caesars Palace in Atlantic City. If you thought 2024 was awesome, just wait to see what we have in store for 2025.
If you have any questions, concerns or ideas, I can be reached tom@midatlanticiada.org or my direct number, which is always on, 215-805-2034.
Until next month,
TOM BRANDIS Executive Director
JOIN OUR DYNAMIC TEAM: UNLOCK YOUR POTENTIAL IN TITLE PROCESSING!
An exciting job opportunity is available in the Harrisburg area for a reliable and detail-oriented individual to join a casual and team-focused organization. The role involves processing vehicle titles and registration paperwork for Maryland and Pennsylvania, ensuring accuracy and compliance with DMV regulations while maintaining detailed records. The position offers a
generous benefits package, including health offerings and paid time off. Candidates should possess strong communication skills, a high level of accuracy, and a willingness to learn, with prior knowledge of automotive title procedures being a plus. The organization seeks individuals who align with their values of integrity and service to members.
People, People, People
I’m getting old I guess, when I typed that title I could hear Drago from the John Wayne movie McClintock. John Wayne says “Drago, drag out that hog leg and get me some attention!” As that scene continues a crowd of new settlers to the Mesa Verde gathers. McClintock (John Wayne) tells this crowd about the last group of settlers, all gone now, because the government has “given” them land to farm in the high desert, with fees of course. The bureaucrat in charge steps up and begins to point out that McClintock owns everything around them, all the supplies they have came from his businesses and generally makes being successful a bad thing and that McClintock is just looking down and holding back the poor people. Sounds familiar even today. That movie was made in 1962.
I bring that up because it is relevant to BHPH today. BHPH, or the Note Business, has been around for a long time. Used to be a dealer could buy cars for $300 to $900 and spend a little “making them right”, if they did anything besides clean them. The customer would bring something close to what the dealer had in the car as down payment and then make $35 weekly payments, in cash every week at the dealership. Everything was tracked on paper, very little paperwork was needed and the customers all lived around the dealership.
Our customers, very basically, have the same issues as always. They cannot pay cash for a car and a bank or other lending company will not do business with them. The customers need a vehicle for the freedom of going where they need and want to, when they want to. Bus and subway schedules are only in the major metro areas and are not the safest, most convenient way to get groceries. The majority of people do not have those services.
Many things have changed since those days but the business is, at its core, still the same. It is our people working with the customers to help solve the issues of car ownership.
When I started in the business, we had a DMS and a credit card processor. We could run a credit bureau on a TWIX. No internet or cell phones. We did lots of field calls, knocking on doors and rolling around in apartment and Walmart parking lots.
The people that taught me the business used a budgeting checklist and sat down to interview each customer, talk about their expenses and how the customer got into the situation that brought them to us. Once the underwriter had “approved” them, sales could finish the deal and send the customer off in their car. The collectors made Welcome Calls to these folks to review the account and start the relationship. All the customers came to the dealership to pay the weekly payments. With 2500 accounts at one operation, there was a huge amount of activity on Friday and Saturday. Everyone in the dealership had their favorite customers and customers came in to see their favorite employees. No GPS, no cell phones, no internet just relationships. Like today, we had bad customers, car problems and most of the issues we see today, with 75% of sales repeat and referral business.
So many things have changed since the 90’s. Websites, email, texting and social media. Add to that, consumer advocates and bureaucrats thinking they can protect the consumers from the evil profit making business people. Lawyers finding any way they can make more money by getting into court, setting a precedent (you’re not in court but still) which causes the “need” for a new document, disclosure, insurance coverage, a warning sign to put on the wall, and who could be contacted when.
COVID came along and really shook things up. So many of the things we would never consider before have become primary procedures. Sales are done via a website, CRM and BDC. In some cases, the vehicles are taken to the customer and someone from the company has a tablet so the customer can have all the documents disclosed and electronically sign everything in their living room. Many collectors working remotely which has grown into offshore collections. No more cash payments except via a kiosk or barcode at the drug store and most payments are electronic so customers can pay from anywhere, anytime, even automatic payments taken direct from the consumer’s bank account.
I had a conversation with someone discussing Artificial Intelligence and how collection calls can be made through an automated system utilizing AI and no people. “Sounds and responds just like a person” they said. I have spoken with some collectors in person and via social media that say, “we call after 14 days delinquent”. Everything before that is handled automatically through scheduled text messaging or emails. Today many cars are sold using 2 GPS units, one wired with a starter interrupt and the other wireless so when the customer googles how to disable the first GPS there is a backup to find the vehicle. Now the customers call us is what I
hear from dealers using the interrupts. I have seen aggressive interrupt usage cost sales and erode the portfolio.
I am not against progress, so many of the things I listed are advanced and cool. I am merely saying that for decades BHPH has been about flexibility and the relationship, and we have all but removed the relationship aspect of it. I read about customers having no loyalty, duh…..they do not know you or your people. Salespeople aren’t selling or establishing repor, referrals are not requested or worked so there is no personal relationship to help repeat business, just order takers guiding folks to the website. Customers seem more hostile and harder to contact. Part of that is the bureaucrats and consumer advocates making consumers feel protected, lawyers giving the sense that money can be made if there are any slip ups, and the customers have no relationship with any of your people so no personal reason to be nice.
There is a trend away from relationships or repor, direct contact with customers. I know
that life has gotten so much more complicated, and technology has taken over so much of the interaction. I feel sure people are still looking to be sold and interaction or relationships are important to many. I do talk with dealers that do almost no advertising because they have so much repeat business and a great reputation in their market. Obviously, the business works both ways so I suggest having both digital sales and relationship sales. Encourage interaction, have the salespeople call good paying customers on a regular schedule, have customer appreciation days, have drawings for prizes occasionally and make the winners be present to win. We had hot rod shows on the lot, Halloween costume contests for kids at the dealership and we did live remotes with food trucks on site. Big city stores have less success with this, unless they are in a specific neighborhood. Smaller market stores can really become known as friendly, and everyone can meet. It is still a people business.
Providing Pennsylvania dealers with on-the-spot processing for Dealer & Salvage Certificates, Messenger, and Retail Services. Immediate window services are limited to 10 items per dealer daily, with a turnaround time of 1 to 2 business days for most tasks.
Visit: 1501 North Front Street, Harrisburg, Pennsylvania 17102 or call (717) 238-9002
WHAT DON’T YOU WANT?
EXPLAININGTHEFTC’SMEANINGOF “EXPRESSINFORMEDCONSENT-(EIC)”
There continue to be several online conversations on whether the FTC’s CARS rule will go into effect or be overturned for not following its own codified rules. In the meantime, several enforcement actions by the FTC already include parts of the new rule – specifically, requiring dealers to obtain consumers’ express informed consent before finalizing the sale. But what is express informed consent? This question exists because most experts say the rule only gives an ambiguous definition of what constitutes express informed consent.
This idea of consent is at the heart of the FTC CARS rule, specifically express informed consent or EIC. You will see a lot of hand-wringing when you ask any compliance professional “What is express informed consent?” The reason is that the FTC has not defined what express informed consent is in full, only what it is not. They have clarified and outlined some of the content and actions such as:
“An affirmative act communicating unambiguous assent to be charged, made after receiving and in close proximity to a Clear and Conspicuous disclosure, in writing, and also orally for in-person transactions, of the following:
1. What the charge is for?
2. The amount of the charge, including, if the charge is for a product or service, all fees and costs to be charged to the consumer over the period of repayment, with and without the product or service.”
Doesn’t the above exist in current documents and closing forms, for every dealer all over the country right now? Where it gets a little confusing is the second part of the definition which explains what express informed consent is not:
1. A signed or initialed document, by itself;
2. Prechecked boxes; or
3. An agreement obtained through any practice designed or manipulated with the substantial effect of subverting or impairing user autonomy, decision-making, or choice.
This way of defining something by stating what it is not is known as a “negative definition.” A “negative definition” is not a method that directly states the attributes or characteristics of a concept. Instead, it clarifies what the subject is by listing what it does not encompass. For example, to use a car analogy, if I a consumer tells you, “I do not want to buy a foreign vehicle, I don’t want an SUV or Van and I don’t want anything over 100k miles” would you be able to sell them the right car knowing only what they don’t want?
At SecureClose we understand that the FTC is using a “negative definition” so as not to be boxed in. Pushing the industry to come up with its own definition of what express informed consent is. By combining simple, consistent programmable explanations of the product’s terms and costs, along with comprehensive audio and video capture of the consumer reviewing and signing the document, SecureClose is the solution to Express Informed Consent.
If you want more information on how SecureClose can help keep you compliant, and lower risk and costs, request a demo at sales@secureclose.net or call (855) 496-9335 and schedule today.
ELECTED LEADERSHIP TEAMS FOR THE NEW SESSION
2025-2026 SENATE REPUBLICAN LEADERSHIP:
President Pro Tempore: Kim Ward (R-Westmoreland)
Leader: Joe Pittman (R-Indiana)
Whip: Ryan Aument (R-Lancaster)
Appropriations Chair: Scott Martin (R-Lancaster)
Caucus Chair: Kristin Phillips-Hill (R-York)
Caucus Secretary: Camera Bartolotta (R- Washington)
Policy Chair: TBD through appointment.
Caucus Administrator: TBD through appointment.
2025-2026 SENATE DEMOCRATIC LEADERSHIP:
Leader: Jay Costa (D-Allegheny)
Whip: Tina Tartaglione (D-Philadelphia)
Appropriations Chair: Vincent Hughes (D-Philadelphia)
Caucus Chair: Maria Collett (D-Montgomery)
Caucus Secretary: Steve Santarsiero (D-Bucks)
Policy Chair: Nick Mille (D-Lehigh/Northampton)
Caucus Administrator: Judy Schwank (D-Berks)
2025-2026 HOUSE REPUBLICAN LEADERSHIP:
Leader: Jesse Topper (R-Bedford/Fulton)
Whip: Tim O’Neal (R-Washington)
Appropriations Chair: Jim Struzzi (R-Indiana)
Caucus Chair: Martina White (R-Philadelphia)
Caucus Secretary: Clint Owlett (R-Bradford/Tioga)
Policy Chair: David Rowe (R-Juniata/Mifflin/Snyder/Union)
Caucus Administrator: Sheryl Delozier (R-Cumberland)
2025-2026 HOUSE DEMOCRATIC LEADERSHIP:
Speaker: Joanna McClinton (D-Philadelphia)
Leader: Matt Bradford (D-Montgomery)
Whip: Mike Schlossberg (D-Lehigh)
Appropriations Chair: : Jordan Harris (D-Philadelphia)
Caucus Chair: Rob Matzie (D-Beaver)
Caucus Secretary: Tina Davis (D-Bucks)
Policy Chair: Ryan Bizzarro (D-Erie)
Caucus Administrator: Leanne Krueger (D-Delaware)
Pennsylvania’s Legislative Session Closes
On November 30, 2024, the 208th Session of the Pennsylvania General Assembly ended. All legislation not sent to the Governor dies and must be reintroduced, with the process starting all over, in the 209th Session which begins on Tuesday, January 7, 2025.
The makeup of the General Assembly will look the same with divided government, as the House controls will continue to be controlled by the
What does the attorney general do?
Pennsylvania Attorney General
• Top law enforcement official
• Extensive responsibilities to protect and serve citizens and agencies.
Divisions and Functions
• Criminal Law Division
• Public Protection Division
• Civil Division
• Operations Division
Support Structure
• Staff of several hundred
• Includes prosecutors, attorneys, investigators, agents.
• Supported by regional offices across the state.
Specifically of interest, the Office of Attorney General’s Public Protection Division enforces and administers the Unfair Trade Practices and Consumer Protection Law.
Democrats 102 to 101 and the Senate controlled by the Republicans 28 to 22. However, we will have some fresh faces because of 19 retirements, three in the Senate and sixteen in the House. In addition, a Senate incumbent was defeated for re-election. These retirements will create openings in the coveted committee chairmanships that are based on seniority and could have a cascading effect as senior members look to bump up to chair a different committee to match their interests or expertise.
Pennsylvania will also see the swearing in of a new Attorney General in January, as the York County district attorney, Republican Dave Sunday, won the open seat. The job came open because Attorney General Michelle Henry did not seek election after being appointed to fill the last two years of now-Gov. Josh Shapiro's unexpired term. Dave received his undergraduate degree in Finance from Penn State University in 2002 and graduated from Widener Law School in 2007, according to his campaign website.
He served in the Navy and worked as a legal intern at the United Nations, where he was assigned to the Department of Peacekeeping Operations.
He went on to clerk for the President Judge of the York County Court of Common Pleas.
Dave has been a prosecutor with the York County District Attorney’s Office for over 15 years.
Specifically of interest, the Office of Attorney General’s Public Protection Division enforces and administers the Unfair Trade Practices and Consumer Protection Law.
We look forward to collaborating with the new Attorney General and the General Assembly on issues impacting the automotive industry in the new year. Please be assured that we will keep you apprised of the legislation and regulations of interest.
Erik A. Ross Senior Associate Milliron Goodman
NEW YEAR, SAME CHALLENGES
I’m writing this article in early December, with holiday preparations underway, to then be followed by the annual ritual of reflecting upon the year soon coming to an end. This article won’t be published, though, until after the New Year, when everyone will have closed their books on 2024 and will feverishly be focused on how to successfully fill in the blank canvas of the coming year. I’ll confess that I find both "year end summaries" and "how to win in the New Year" articles difficult to write, to me they are predictable and merely seek to fulfill our need to close one chapter and optimistically open the next.
BY STEVE LEVINE
IGNITE
CONSULTING PARTNERS
The only thing that really changes is the name of the month on the calendar. Does it really matter whether it's December or January? The challenges remain the same. Challenges? That word seems to be a bit of an understatement. Between the difficulty in finding reasonably priced inventory and hiring a motivated workforce to rising fuel, grocery and just about all other prices, to consumer discontent over higher energy and other bills, the struggles we all face are very real.
From an auto finance compliance perspective, the landscape is still threatening. For starters, we’re dealing with two powerful federal regulators, the CFPB and FTC, each of which has aggressively pursued our industry in the last year. Although we expect a Trump Administration to be focused on deregulation, at this point we don’t know who will be put in charge of either of these regulators, and it’s difficult to anticipate whether car sales and finance will be among their first priorities. Many people are asking whether I think the FTC Vehicle Shopping Rule will go into effect, and at this point I have no idea. Between waiting for the 5th Circuit to decide on the NADA’s legal challenge and waiting for the announcement of new leadership, there’s lots of uncertainty.
Then there’s the wave of consumer protection advocates that have seemingly multiplied and achieved influence throughout state Attorneys General and other regulatory agencies. It’s important to remember that during President
Trump’s first administration, many state regulators got more aggressive and stepped into the vacuum created when the CFPB and FTC backed off a bit, and I anticipate this will happen again. My expectation is that the Pennsylvania Department of Banking will continue to be aggressive in its examination of dealers and other licensees. In the past year we’ve heard that they’ve investigated compliance content such as safeguards and information security policies, GAP/debt cancellation penetration, OFAC and Red Flags policies, and repossession practices and use of post repossession and deficiency balance letters, just to name a few issues to put on your radar.
Let’s not forget about the army of plaintiff lawyers that stand ready to use this favorable climate and the bevy of consumer protection laws at their disposal to run roughshod over the industry. Last but not least, today’s consumers have never been more empowered to take the fight to car dealers and creditors through the troves of available tools (much of them being used as weapons) found on social media and the internet.
Putting aside the name of the month on the calendar, does the year on the calendar matter to a significant degree? I’ve been writing these articles for a long time, and my "year end - new year" mantra hasn’t changed all that much. "Do an annual review of your deal paperwork, update policies and procedures, audit high risk areas, develop robust complaint management skills, and train your staff". Stop me if you’ve heard this before. The recipe hasn’t changed folks.
What has changed are the penalties for non-compliance. The regulatory fines have never been greater. The costs of defending lawsuits have only increased. The power of one consumer to negatively impact your business through social media terror tactics has led to a whole new degree of accountability.
In my travels, I have the opportunity to meet a lot of dealers and other industry participants, and the overwhelming sentiment I hear is "I know I need to get better at compliance, I just need to find the time". I’ve run into lots of the same folks year after year, and when I ask them what changes they’ve made from one year to the next to protect their business, I’m usually met with the same sheepish looks.
Do something different. Take a good hard look at yourself through the eyes of a regulator or consumer advocate and commit to a plan of proactive steps to protect your business.
I can’t do it for you! Are you content with the status quo and having a target on your back, or are you willing to up your game? I’ll say it again..."do an annual review of your deal paperwork, update policies and procedures, audit high risk areas, develop robust complaint management skills, and train your staff". The solution isn’t a secret. In my experience, the difference between success and failure is whether ownership and management are willing to give these tasks some level of priority, or will they be the first things to be moved down the list when things get busy?
The choice is yours. That blank 2025 canvas is staring at you. How will you choose to complete it?
Steve Levine is an auto finance lawyer with 30 years of experience helping and protecting car dealers and finance companies. In 2022 he authored Winning the Fight: A Guide to Protect Car Dealers, which is available on Amazon. He is an Owner and Chief Legal and Compliance Officer of Ignite Consulting Partners, which offers compliance, operational and best practices guidance and training. Please contact info@IgniteCP.com to learn more. Please follow Steve on Twitter @LawyerLevine for compliance and industry related content.
The Importance of Tax Season for Your Sales Team
BY CHRIS NEYLAN , TAX MAX
DEALER FINANCE
Tax season isn’t just about financial filings—it’s a golden opportunity for dealerships of all types to boost sales and strengthen customer relationships. Whether you’re a retail dealer, a franchise, or a Buy Here Pay Here (BHPH) operation, leveraging tax refunds can lead to significant results. With the average tax refund expected to increase this year due to inflation adjustments to tax brackets and expanded credits, there’s never been a better time to take advantage of this season.
Why Tax Refunds Are Ideal for Down Payments
For many customers, their tax refund represents a significant financial windfall—perfect for a down payment on a vehicle. This helps customers secure approvals more easily while reducing financing risks for dealerships. By encouraging customers to use their tax refund as a down payment, you not only increase your sales volume but also build trust and loyalty.
How Tax Max Helps Any Dealership
Your customers are going to file a tax return and receive a refund. Why not make sure your dealership benefits first? When your customers file their tax return with a partner like Tax Max, the refund is sent directly to your dealership FIRST. This puts you in the best position to help your customer secure a vehicle while maximizing your sales opportunities.
Services like Tax Max can be seamlessly integrated into your dealership’s operations, no matter your business model—retail, franchise, or BHPH. Here’s why Tax Max is a game-changer:
• Same-Day Refund Advances: Tax Max allows customers to file their tax returns at your dealership and apply for a sameday refund advance. This eliminates the weeks-long wait for IRS refunds, enabling customers to use their refund advance immediately toward a vehicle purchase.
• Tailored for All Dealerships: Whether you’re a retail dealer looking to move inventory, a franchise aiming to hit sales quotas, or a BHPH dealer working to keep customers engaged, Tax Max is designed to meet your needs.
Extend Tax Season and Boost Sales
Tax Max not only helps you start the tax season as early as January 2 but also provides tools to keep the momentum going through February and beyond. Here’s how it can help your sales team:
• Increase Down Payments: Larger down payments from tax refunds make it easier to secure approvals and close deals.
• Attract More Customers: Promote the availability of same-day refund advances to draw in customers who might otherwise wait to purchase.
Unique Opportunities for BHPH Dealers
For Buy Here Pay Here dealers, tax season offers additional advantages. Along with driving new sales, it can be a powerful tool for collections and customer retention:
1. Support Collections: Encourage customers to use their tax refund to catch up on overdue payments. This reduces delinquencies and strengthens your cash flow.
2. Upgrade Loyal Customers: Reach out to customers nearing the end of their contracts and offer them an affordable tax season upgrade to a newer vehicle. This keeps them loyal to your dealership while providing added value.
Hi Everyone,
I'm Cyndi and I want to share a story with you. Eight years ago, I started with an association called PIADA. I was making cold calls at that time—the worst, right? Over the years, I earned the trust to take on more responsibilities. I've witnessed many changes, from management shifts to employee turnover, and our new name is MidAtlantic IADA.
I truly love the people I work with and enjoy my job; otherwise, I wouldn't have stayed for eight years. My role involves handling memberships from start to finish, including forms, issuing agent contracts, and many other tasks. Some of you may have spoken with me before. Whether you've been a member for years or, for some reason, you're not a member at all, I want to hear from you. There is strength in numbers; you and the association need each other. I challenge all of you who aren't members to email me at cyndi@ midatlanticiada.org or call me at 717-238-9002 and share your story with me. When you call, I'm option number 1 on the menu. This is important because membership is your first line of defense.
Let us help you, and remember, I'm eager to hear your story. Your experiences matter to us, and we want to listen.
That's all for now. I can't wait to connect with you next month! We'll explore all the ways to take full advantage of your membership and unlock all the great services we have to offer to you. Stay tuned.
Best,
Cyndi
Cynthia Slemons Membership Specialist MidAtlantic IADA
TAX SEASON IS YOUR TIME TO SHINE
No matter your dealership type, tax season is a pivotal time to maximize sales and deepen customer relationships. With Tax Max, you can streamline the process, offer added convenience, and ensure that your dealership benefits first when your customers receive their refunds.
Start planning now to make this tax season your most successful yet!
TUNEUPYOURSERVICE DRIVETHROUGHDATA
Even with a lack of inventory, profits are up with less cars being sold, and the market remains high. However, with less automotive purchases, it will translate to less service business over time. Additional challenges for dealers include customer retention. People are straying away from preferred brands because of premiums or lack of inventory. How will you reach those customers who purchased their leases to come back and buy from you again or service their vehicle?
You can use real-time data to attract high-value customers with the right message, at the right time, across all their digital devices.
Retain customers for future car purchases and your service drive
Data and marketing can effectively be used to stay in touch with your customers, give you the ability to sway those who might otherwise stray, build loyalty, and stay top of mind. We have digital tools that can track your customers’ journeys and allow you to pay attention to where they are going, when they are ready to purchase a new vehicle, when their vehicle needs service, and use automation to reach out to them, bringing them back to your store. Additionally, you can benefit from attracting orphan owners and prospects who are looking to buy or service their vehicles, who live in your market but never purchased from you before.
When customers service with you, they are more likely to buy from you. Developing a roster of regular clients who return to your service drive is just as important as automotive sales. Why let them turn their service requirements over to mechanics down the street when your service department is highly qualified, ready, and waiting?
Tune up your existing book of business
How are you currently measuring success? Could you be busier? If you are not limited by capacity restrictions, you can rev up your business now in preparation for the future. You can use data to direct market to your existing customers to hold on to customers who are likely to stray, to consumers who have bought out their leases, and new prospects.
With lack of inventory, customers are buying out leases, what are you doing to keep them engaged with your dealership? We have the methodology
and automated platform to engage those customers in an easy and effective way. You can capture their attention and drive them back to your service department. Fill your service drive appointments, boost customer lifetime value, and increase your revenue.
Get the Support You Need
What kind of support are you getting in for your marketing efforts? If someone tells you it’s a ‘set it and forget it’ program, then everyone forgets it and it’s just there. Your CRM, lead generation, marketing techniques can all be seamlessly integrated.
You don’t need help selling cars right now, it’s a strong market. But from the service side of it, less cars being sold, more leases being bought out, you will need to sell more service in the future. Today’s market demands a data driven process. If you are ready to activate your dealership, by implementing real-time data with real prospects in your area, reach out and let me show you how.
Would you like to find out more about getting more out of your service drive?
Contact Steve Memolo today at smemolo@ezvds.com or on LinkedIn.
actionable strategies, and practical tools to elevate every aspect of your dealership, including:
GPS TRACKING AND ITS IMPACT ON CUSTOMER ACCOUNTABILITY AND PAYMENT EFFICIENCY
By Efrat Bogoslavsky, Ituran USA
For Buy Here Pay Here (BHPH) dealers, maintaining control over financed vehicles is essential for financial security. GPS tracking systems have become a vital tool in this space, not just for tracking vehicles, but also for fostering customer accountability
Reinforcing Payment Responsibility
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and improving cash flow. Here’s why BHPH dealers should pay close attention to how GPS tracking can shape their operations and boost their bottom line.
One of the significant challenges for BHPH dealerships is to ensure consistent, on-time payments. GPS tracking can create a sense of accountability for customers by reminding them of their vehicle payment. This subtle awareness often motivates customers to prioritize their payments, knowing the dealership has proactive measures in place.
Reducing Delinquencies and Defaults
When customers are aware that their vehicle is being tracked, the likelihood of missing payments often decreases. GPS tracking systems can also be integrated with automated reminders or payment notices, enhancing communication and giving customers gentle nudges to keep their accounts up to date. This reduces delinquency rates and protects the dealership’s assets while maintaining positive customer relations.
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Simplifying Vehicle Recovery Processes
In unfortunate situations where payment issues escalate to repossession, having a GPS system in place ensures that dealers can locate and recover vehicles efficiently. This reduces the time and resources spent on recovery, minimizing potential losses and disruptions to the dealership’s operations. Quick and successful recoveries can mean the difference between a financial hit and a manageable business adjustment.
Building Trust with Transparency
While GPS tracking is an invaluable tool for dealerships, it’s important to use it in a way that maintains trust. BHPH dealers are disclosing the GPS installed in the vehicle, have found success in being transparent with customers about the use of GPS systems. This openness can reassure customers that the dealership’s primary goal is asset protection, stolen vehicle recovery and not surveillance, which promotes trust and encourages responsible behavior.
5 Integrating GPS System with other Software Platforms
Modern GPS systems are integrated with many other software platforms such as Dealership Management System (DMS) and Payment Processing companies to enhance compliance, efficiency, cash flow, customer service experience etc.
Those integrations allow the dealership to automate many processes and support their customers 24/7/365.
Conclusion
The integration of GPS tracking into BHPH dealership operations is more than just a safeguard—it’s a strategy for enhancing customer accountability and boosting payment compliance. By fostering responsible payment behavior, simplifying the recovery process, and improving communication, GPS systems prove their value beyond simple asset tracking. For dealers looking to optimize their financing model, investing in quality GPS solutions can be a gamechanger in ensuring sustained success and profitability.
Lebanon Auto Auction
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MITIGATE RISKS AND PREVENT REPOS
By Michelle Jackson , Advantage
How Advantage’s smart data and compliant recovery tools help car dealers and finance companies reduce risks, streamline collateral management, and prevent costly repossessions.
A Deeper Look at Rising Repossession Rates
The spike in repossessions isn’t just a statistic; it’s a signal of broader economic shifts. Rising interest rates, stagnant wages, and increased cost of living have created a perfect storm for loan delinquencies. Even as the Federal Reserve makes moves to lower rates, the average APR remains high—11.5% for new vehicles and 7.3% for used vehicles—making monthly payments challenging for many customers. For dealers, each repossession represents more than just a financial loss; it’s a disruption that can impact customer trust, community standing, and relationships with finance partners.
How Advantage GPS Helps Car Dealers Mitigate Risks and Prevent Repossessions
indicate a repair issue or financial hardship. Rather than focusing solely on missed payments, dealers can engage customers in a supportive dialogue, offering solutions like payment flexibility or repair assistance. This approach turns a potential conflict into an opportunity to build trust, reducing delinquencies while deepening customer loyalty.
Ethical Recovery: Protecting Your Brand While Minimizing Disruption
Contact our team to learn how Advantage can help you mitigate risks and prevent repos.
1-800-553-7031
Advantage GPS doesn’t just provide tracking; it redefines asset security through intelligent analytics and predictive insights. Instead of relying solely on location data, our solution empowers dealers with a comprehensive understanding of asset behavior, highlighting at-risk vehicles before issues arise. It’s about gaining a sixth sense for spotting unusual patterns and potential red flags, enabling finance teams to make informed, strategic decisions that go beyond reactive alerts. This capability helps dealers protect their business while enhancing client relationships, shifting the focus from repossession to prevention.
Human-Centered, Proactive Communication
Effective asset management isn’t just about technology; it’s about human connection and timely intervention. With Advantage GPS, dealers can identify early warning signs and proactively reach out to customers, offering support before the situation becomes critical. For example, when a vehicle is idle for an extended period, it could
Repossession is always a last resort, but when it becomes necessary, Advantage GPS helps dealers handle it with care, efficiency, and respect. Our approach to asset recovery isn’t just about quick retrieval; it’s about minimizing disruption, avoiding unnecessary escalation, and safeguarding your dealership’s reputation. By streamlining the process, dealers can act swiftly and discreetly, reducing the risk of vehicle damage and mitigating the emotional impact on customers. This method isn’t only financially sound—it reinforces your commitment to ethical, customer-focused asset management, preserving both your bottom line and your brand image.
Navigating Market Volatility with Confidence
In today’s unpredictable market, Advantage GPS serves as a critical partner, helping dealers adapt to shifting economic conditions while maintaining strong customer relationships. By leveraging realtime data, predictive analytics, and a focus on ethical intervention, our solution empowers dealers to proactively address challenges, protect their assets, and support customers in staying on the road. It’s a comprehensive strategy that ensures your dealership is equipped to thrive—even in a volatile environment.
Bel Air Auto Auction Opens Two New Lanes at Harvest Sale
BSCAmerica's Bel Air Auto Auction hosted one of the longestrunning promotions in the industry on October 10th, 2024: its Annual Harvest Sale. As the leaves changed from green to gold and the air turned crisp along the Chesapeake Bay, Bel Air Auto Auction welcomed the arrival of autumn, opening its doors to dealers from the Eastern Seaboard and beyond who gathered to buy cars, trucks and SUVs, take part in multiple prize drawings, share in good food and comradery and admire a special consignment of classic cars.
The auction held a gala Preview Party on the evening before the sale, where guests enjoyed a buffet dinner and music, along with the chance to preview some of the classic cars scheduled for auction the following day. They also tested their driving skills in a race car simulator from Hendrick’s racing, which put them in a NASCAR driver’s seat at Darlington Raceway.
Kicking off the festivities on sale day was a Ribbon- Cutting Ceremony to mark the debut of two new lanes at Bel Air Auto Auction. With the added lanes, the auction now offers vehicles on twelve lanes, adding one more lane for dealer consignments and an additional lane for fleet/lease vehicles. Chosen for the honor of cutting the ribbon to start the sale was Angie Bishop, who recently celebrated 40 years as an employee of Bel Air Auto Auction. Also on hand for the ribbon-cutting ceremony were Harford County Councilman Tony Giangiordano and Harford County Council President Patrick Vincenti who presented the auction with Proclamations the mark the event.
A busy day of buying and selling concluded with a time-honored tradition at Bel Air’s Harvest Sale: its Classic Car Sale. This year’s event was marked by the sale of the most expensive car ever sold at Bel Air: a 2021 McLaren 765LT for $387,000.
More than 2,600 vehicles crossed the auction blocks at the 2024 Harvest Sale, and the auction posted a 70% overall sale.
In honoring its long history of service to the industry as it looks forward to the future, Bel Air Auto Auction is also pleased to note that Tommy Rogers, General Manager of Bel Air Auto Auction’s Specialty Sale, has been elected Vice President of the National Auto Auction Association and will serve as the association’s president in 2027. He follows in the footsteps of BSC’s Chairman and CEO, Raymond C. Nichols, who served as NAAA President in 2002; and BSC’s President R. Charles Nichols, who served as NAAA President in 2022.
40-year employee Angie Bishop (right) was honored to cut the ribbon to open two new lanes at Bel Air Auto Auction during its annual Harvest Sale. She was assisted by BSC Executive Vice President Michelle Nichols.
