DEALERS ASSOCIATION PENNSYLVANIA • 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
Melissa Rowan, Interim Treasurer
Red White and Blue Autos, Inc., Ashland, PA melissa@rwbautos.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
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
Danielle Royer
Royer’s 322 Motors, DuBois, PA royers322motors@gmail.com
Tom Brandis, Executive Director tom@midatlanticiada.org | (215) 805-2034
Kathy Sabaski, Deputy Executive Director kathy@midatlanticiada.org | (267) 733-5402
Finding the Intersection: Relationship and Transactional Excellence in Automotive Retail
Success in the automotive industry lies at the intersection of relationships and transactions. By nurturing connections and streamlining processes, dealerships can turn satisfied customers into loyal advocates. Build it with excellence, and they will come!
Why Rising Student Loan Defaults Are a Boost for Buy Here Pay Here Dealerships
With credit scores plummeting, savvy BHPH dealerships can shine! As more people face loan denials, it's time to embrace the opportunity: offer understanding, flexible financing, and help those in need get back on the road.
Why Create In-House Financing
Unlock new revenue streams by embracing Buy Here, Pay Here (BHPH) or Lease Here, Pay Here (LHPH) operations. Capitalize on bad credit customers, improve cash flow, and create a valuable portfolio, all while enhancing your dealership's overall profitability and growth potential.
The Importance and Benefits of a GPS Device with Accident Notification (Crash Sensor)
Discover how a GPS with accident alerts helps subprime lenders track vehicles, respond quickly to accidents, and manage risks. It's all about protecting investments while keeping borrower relationships strong and vibrant!
Navigating BHPH Risks and Inventory Challenges for Retail Dealers
Independent auto dealers face rising vehicle costs, thefts, and delinquency rates. Embracing innovative technology for lot management, risk detection, and customer retention is essential for maximizing profits and staying competitive in today's challenging market.
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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
Dealer Set-Up Unit (717) 317-1966 nicole@midatlanticiada.org
BRENDA BAUGHER
Lead Title Clerk (717) 238-9002 brenda@midatlanticiada.org
JEAN WEBB
Title Clerk (717) 238-9002 jean@midatlanticiada.org
PAM CORNISH
Title Clerk (717) 238-9002 pam@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
“United We Stand” – Lessons From Las Vegas
Happy July 4th to all our members, friends, and partners in the independent auto dealer community! As we celebrate our nation’s independence and the freedoms that come with it, I’m reminded of how much we value our independence as business owners. We take pride in building something from the ground up, doing things our way, and serving our communities. But just like our Founding Fathers, we’re strongest when we stand together with a shared purpose—and that was one of the biggest themes echoed at the 2025 NIADA Conference in Las Vegas.
This year’s conference brought together dealers from all corners of the country for a packed schedule of education, industry insight, and no-nonsense conversations about what’s really going on out there. The Mid-Atlantic region showed up strong—and we didn’t just take up seats; we leaned in, asked questions, and shared ideas that could help move the needle for all of us.
Here are a few takeaways that hit home for me:
1. Technology is no longer optional.
There’s a lot of noise out there about AI, automation, digital retail, and CRMs—but the message was clear: it’s time to stop kicking the can down the road. Whether it’s texting platforms that improve engagement or systems that help manage reconditioning and inventory more efficiently, the right tools can save time, make money, and reduce stress. If you're not using technology to make your life easier and your processes cleaner, you’re giving your competition an edge.
2. Stay ahead of compliance changes.
While compliance wasn’t the headline at every session, it’s always on the radar—and rightfully so. Just recently, the CFPB rescinded 67 pieces of regulatory guidance dating back to 2011, including one related to repossessions. While this effort is being framed as a reduction in regulatory burden, it doesn’t remove our responsibility to know the law and operate within it. Fewer memos from Washington mean we’ve got to be sharper than ever with our processes. Your association will continue keeping you informed as updates like this unfold.
3. Community is still our biggest asset.
The sessions were great, but some of the best ideas came over coffee or in the hallway between panels. I was encouraged to see so many dealers, vendors, and association leaders swapping playbooks, talking about what’s working, and being real about what’s not. That’s where the magic happens. It reminded me why I’m so passionate about state and national involvement—because when we connect, we grow.
Now that we’re back home, the real work starts. Our state association is only as strong as the members behind it. If we want to keep a seat at the national table—and continue shaping the future of this industry—we need to get more dealers engaged. That means growing our numbers, yes, but also inviting ideas, welcoming new voices, and making sure everyone knows they belong here.
In the spirit of this month, let’s remember freedom isn’t just doing what we want, it’s standing together to protect what we’ve built. It’s independence with unity. I’m proud to stand with each of you in that mission.
Have a safe, meaningful, and well-earned Fourth of July. And if you missed Vegas this year, I’d encourage you to plan for next year. It’s more than just a trip—it’s an investment in your business, your voice, and your future.
ADVERVTISE WITHIN
To advertise in the MidAtlantic Dealer News magazine, please send a request via email to tom@midatlanticiada.org
Sincerely,
Robert “Bert” Straub President, MidAtlantic IADA President, NIADA State Presidents Council
Message from the Executive Director
Hello Dealers,
Welcome to July. I hope everyone had the chance to enjoy Independence Day with their family and friends. It’s hard to believe that 2025 is already half over. It’s been a bit chaotic to say the least. Fortunately, it looks like the economy is stable, which should help with consistent sales for the second half. I, along with Kathy and a handful of board members, just returned from the 2025 NIADA Convention and Expo held at the amazing Fontainebleau hotel in Las Vegas. I have lost count of how many I have attended over the last 30 years, but I will say that this one was one of the most informative I can remember. I always take away more information than I thought. The expo hall was packed with vendors offering every product or service I could think of were there. This was also the perfect time to chat with current vendors and potential new ones about our upcoming convention. I was excited to have vendors tracking me down to discuss attending the 2025 event. There is definitely a buzz from vendors and dealers about it.
Are some of you wondering what event I am talking about??? I am talking about the 2025 MidAtlantic Annual Convention & Vendor Tailgate being held at Caesar’s Atlantic City on October 19-20, 2025. Event information and registration is available on our website: midatlanticiada.org or check out the advertisement in this magazine. This year promises to bring you all the information and education of a “Vegas Style” convention without the need of a plane flight or leaving this time zone. Even better, it’s only $95 for any state association member. We already have the agenda outline created and all I can say is that you won’t want to miss this. Mark your calendars now.
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
Tommy
Finding the Intersection: Relationship and Transactional Excellence in Automotive Retail
By Leon Walthall, Buckeye Risk Services
Every day, we walk our lots—reviewing reports, evaluating inventory, people, and processes. While walking through what some might call our "field of dreams," we have the opportunity to reflect on something deeper: the intersection in our business that, when navigated well, can take performance and customer satisfaction to new heights.
Over my years in the automotive industry, I’ve developed a discerning perspective on how dealerships manage the balance between process and service. I’ve been privileged to work alongside outstanding operators who truly understand the synergy between relationship-driven and transactional business models.
Notably, Brad Wilson of Car-Mart of Fayetteville and Jason Henson of CarMart of Siloam Springs have consistently demonstrated an exceptional ability to align their teams and processes around this intersection. Their stores aren’t just efficient—they’re trusted, welcoming, and focused on long-term value.
In my recent travels, I’ve been especially impressed by Ben Kittrell of Kittrell Kars and Jack Carter of Turn and Burn Motors. These leaders exemplify the power of blending relational and transactional strategies to foster not just satisfied, but loyal and enthusiastic customer bases. So, take a moment to reflect:
Where does your relationshipdriven approach intersect with your transactional business activities?
Relationship Business
A relationship-based model centers on developing long-term, meaningful connections with customers. It prioritizes trust, loyalty, and ongoing communication. Success isn’t just about closing today’s deal—it’s measured by customer retention, repeat business, and the strength of your reputation over time.
Transactional Business
A transactional model, by contrast, focuses on the immediate sale or exchange. It values efficiency, speed, and clearly defined terms. Success here is typically evaluated by the volume and value of completed transactions, emphasizing short-term results.
Where They Meet
In reality, most successful dealerships blend both models. The true intersection occurs when efficient transactions serve as the entry point for lasting relationships—or when a relationship-first dealership streamlines its processes to better serve its customers.
The most effective leaders recognize that this isn’t an either/ or scenario. Instead, they leverage transactional precision to drive growth while cultivating relationship depth to secure long-term success.
If your goal is to grow your dealership, retain customers, and inspire them to become advocates who bring in new business, you're already thinking like a market leader. And as you strive to be the best in your area, remember:
If you build it—with excellence, with trust, and with purpose—they will come.
They’ll come from down the street, across town, and yes—even from Iowa.
Your field of dreams is real. Now go make it work.
DEALER SETUP
(717) 238-9002
MidAtlantice IADA 1501 North Front Street Harrisburg, Pennsylvania 17102
PIADA & STATE FEES
MidAtlantic IADA offers comprehensive dealer services, including assistance with setting up your first dealership, managing licenses, and facilitating agent contracts for title and registration transactions. We also provide guidance on obtaining the necessary finance licenses from the Pennsylvania Department of Banking to support customer vehicle purchase financing.
(Repair or Tow, Motorcycle. Trailer, Salvage plates, etc.)
$500$66 per plate
PennDOT ONLY$1,000$66 per plate
(Dealer, Salvage, Trailer, etc. plate)
$33 per Motorcycle plate
$60 PennDOT One-time Recovery Fund fee
DAS (per request)
$25$ application fee
ALL FEES ARE NON-REFUNDABLE. ADDITIONAL CHARGES WILL APPLY IF CHANGES ARE MADE DURING APPLICATION PROCESS.
The MidAtlantic Independent Auto Dealers Association (MidAtlantic IADA) is proud to unveil a powerful new resource for our members:
The MidAtlantic IADA Insurance Service Center — your onestop shop for dealership insurance solutions. Whether you're just starting out or looking to streamline your current coverage, the Insurance Service Center offers tailored protection designed specifically for independent dealers. From Garage Liability and Surety Bonds to Workers’ Compensation, Property, and even Cyber Coverage, we provide access to top-rated carriers who understand the unique needs of your business.
To make the insurance process as seamless as possible, the MidAtlantic IADA Insurance Service Center offers a simple, user-friendly way for dealers to request quotes online.
Dealers can get started in just a few steps:
1.Visit the Insurance Service Center website at www.isccoverage.com.
2.Click on “Request a Quote” from the homepage or insurance services menu.
3.Complete the short online form, including basic dealership informationand the type of coverage you’re interested in.
Staffed by experienced insurance professionals familiar with the challenges of the used car industry, the Service Center offers customized policies, competitive pricing, and one-on-one support. Dealers will benefit from tailored risk assessments, compliance guidance, and direct access to coverage options from reputable carriers.
Why Rising Student Loan Defaults Are a Boost for Buy Here Pay Here Dealerships
By BHPH United
Recent data from PYMNTS.com reveals a troubling trend: borrower credit scores are plunging following a rise in student loan delinquencies. While many financial institutions may see this as a red flag, savvy Buy Here Pay Here (BHPH) dealerships can recognize a golden opportunity: increased demand from credit-challenged consumers who still need reliable transportation.
Millions of Americans are now dealing with the fallout of paused or forgiven student loans coming due again—and with that, an uptick in delinquencies. As a result, FICO scores are dropping across the board, locking consumers out of traditional auto financing.
Enter BHPH dealers.
You independent, in-house financing specialists are uniquely equipped to serve the segment of the population with bad credit—or no credit at all. Instead of relying on strict credit criteria, BHPH operations focus on real-life affordability and employment stability, offering real solutions for real people, especially those facing student loan delinquencies.
With more people facing loan rejections from banks and credit unions, the BHPH business model is more needed than ever. Here’s why:
• Higher Foot Traffic: Consumers with newly damaged credit scores are turning to alternative financing. BHPH dealerships are often the first—and only—place they can get approved.
• Underwriting an Opportunity: Coupled with sound underwriting, BHPH dealers can take the real risk that comes with credit-damaged customers and structure an appropriate financing arrangement that funds the customer, generating a return for the dealer.
• Stronger Customer Loyalty: People remember who gave them a chance when no one else would. BHPH customers are often repeat buyers and refer family and friends, especially when treated with respect and dignity.
But, how can BHPH dealers capitalize on this trend?
Now is the time for BHPH dealers to ramp up marketing and prepare for an influx of traffic. Here are a few strategies to consider:
• Emphasize "No Credit? No Problem!" Messaging: Tailor your branding and ads to acknowledge the
reality many consumers are now facing. Normalize the experience of having imperfect credit.
• Partner with Credit Repair Services: Many communities have credit counseling or licensed credit repair service organizations – both non-profit and for profit. Look to partner with these organizations to offer value-added resources for your customers to help buyers rebuild their credit.
• Streamline the Approval Process: Focus on employment and income-based underwriting, and leverage technology to make application and approval faster.
Ultimately, the increase in student loan delinquencies isn’t just a financial headline—it’s a signal that millions of Americans need someone in their corner. BHPH dealers are in a powerful position to meet this need, offering dignity, access, and flexibility in uncertain times.
In the face of economic challenges, one thing remains constant: people still need cars to get to work, take care of their families, and live their lives. BHPH dealers help keep America moving—and in times like these, that role is more important than ever.
Why Create In-House Financing
By Gene Daughtry, Auto Master Systems
Over the last three decades, I have set up Buy Here, Pay Here (BHPH) or Lease Here, Pay Here (LHPH) dealership operations for franchise groups and independent dealers in different states. Decisions include which building, what branding, inventory, setting up a shop, hiring and training the team, acquiring the software, creating the procedures, and starting the selling. Then, I would build a finance company to maintain the portfolio and get the money rolling in.
So, why would a successful franchise group want to get into BHPH or LHPH? Usually, it is because they have plenty of bad credit customers coming in, and if they do find a lender for those customers, the dealer doesn't make a lot of money; the finance company does. Often, dealers are looking for investments to make more money. BHPH/LHPH can do that while generating revenues for other dealership businesses, such as towing, body shop, parts, service departments, and even sales.
BHPH and LHPH done right can generate good cash flow, create business for your shops (service and body) along with other parts of your operations, help you increase the bids on your trade-ins, give you an outlet to refer customers turned down in your retail operations and from the other direction create new customers for your franchise stores as the BHPH/LHPH customers build credit (if you report to the bureaus). Having a BHPH or LHPH lot also gives you another set of companies that can pay for real estate (the lot(s) you create paid for by the operations); they can help build a "farm team" of sales and manager personnel that can grow into your other operations, oh and did I mention cash flow?
You will experience all of the above, and the bigger bonus is your portfolio. You see, as you sell more and more vehicles in your BHPH or LHPH business, which generates revenues and added business, you are also creating a multi-million-dollar portfolio that is grinding
out the cash flow while growing in size. If you sell 25 vehicles a month (average $7,000 acv) on terms of 36 months, you will be bringing in around $500,000 a month in revenues as you mature (plus reinsurance $$), have a loan portfolio of approx. 600-650 units in the street and a principal balance of about $7M.
Yes, you have 600 to 650 customers driving your cars and having to make payments to you. They will wreck those cars, blow an engine or transmission, get them impounded, occasionally argue with your people about owing money or insurance, and occasionally, one will "skip" town. All of this and more is part of the business. If the procedures are in place, with correct compliance practices built in, along with training and solid policies, then you mitigate the issues.
RAC REPO
NEW ELAS
Most franchise dealers understand repossession is part of the business, and it is definitely something you contend with, but it is not to be feared. Many dealers with good buying habits, correct underwriting, and the right team management will profit from repossessions. Repos, recovery, payoffs, and extra fees are part of the cash flow as
you grow. If done right, you can recycle many repos into a new sale. If you are doing things correctly and understand Cash in Deal (CID), you can see where your investment in any given vehicle can be recouped in a few months of payments, though the customer owes you many more months beyond your CID. If the customer falters, you grab the vehicle and resell or wholesale it. Often, those dollars are all profit. The loan shows a loss on your books, but you still made an actual profit above your vehicle cost.
The loans that pay out, whether from a customer making all the payments or you receive a payoff from insurance or another
For dealers who attend conferences like the MidAtlantic Convention & Tailgate or go to 20 Group meetings (maybe both), you are investing money to find ways to grow your business and make more money. BHPH or LHPH is a great way to do that when done correctly. There are several consultants who can help. I can certainly help.
BHPH does not come in a box or from a video. Your current team generally cannot handle the business correctly, but there are answers available and great people around your current business who understand how BHPH works.
I will be attending a few of the conferences, such as the MidAtlantic Convention & Tailgate at Caesars Atlantic City
If you have questions, you can always reach out to me anytime at 479-970-4049 or email gene@auto-master.com.
dealer (one of your own maybe), or you trade them out at the BHPH lot, can make $9,000 to $12,000 depending on the interest rate, number of payments made before a payoff and any fees involved. If you establish a reinsurance company, you can offer a service contract or warranty, Collateral Protection or Debt Cancellation, and other products that build reserves and help mitigate the costs that come from customers having vehicle problems, accidents, and no money to take care of them.
I have worked with franchise dealers who eventually sold the franchise stores to focus on their BHPH. I have dealt with BHPH
dealers that eventually bought franchise stores as well. I have worked with dealers who built a portfolio and then occasionally sold portions of the portfolio to invest in real estate. They ended up with more property holdings than the size of their portfolio. I have also seen dealers crash and shut down the business. If there is no risk, there usually isn't any gain; most of y'all know that.
Receive unmatched training and education while only missing one business day.
Create your own Championship PlayBook, instructed by some of the best dealers and service providers, at the industry’s only interactive sales and marketing workshop on Sunday afternoon from 2-5 pm.
Enjoy both Sunday & Monday Night Football on two 20’ Screens while tailgating with your dealer friends and vendors at the most talked about exhibit hall experience you will ever attend. Don't miss the industry's most talked-about event!
The Importance and Benefits of a GPS Device with Accident Notification (Crash Sensor)
By Efrat Bogoslavsky, Ituran USA
A GPS system equipped with an accident notification sensor can be highly beneficial for subprime lenders and BHPH Dealers, especially when lending to borrowers with higher credit risk. Here's how it can help:
1. Asset Protection
• Real-time Tracking: GPS technology allows the lender to monitor the location of the vehicle in real-time in cases where the borrower defaults on payments. This enables quicker repossession and helps secure the asset.
• Accident Alerts: If the vehicle is involved in an accident, the GPS device which is equipped with an accelerometer sends instant notifications to the lender. This early information allows the lender to react more quickly in terms of assessing the vehicle's condition and initiating insurance claims.
2. Insurance and Recovery
• Claim Assistance: In the case of an accident, the GPS system can help provide accurate information regarding the time, location, and severity of the incident. This data can assist in expediting insurance claims and protecting the lender's financial interest in the vehicle.
• Loss Prevention: By having immediate access to accident notifications, the lender can quickly determine if the vehicle is totaled or needs repairs, minimizing delays in recovering or resolving the situation with insurance companies.
• Storage fees: knowing if the vehicle has been towed to an impound yard can save the lender hundreds of dollars in storage fees.
3. Borrower Risk Management (optional feature)
• Monitoring Driver Behavior: Some GPS systems can monitor driver behavior, such as speeding, harsh braking, and rapid acceleration. If borrowers are engaged in risky driving, the lender can use this information to better assess the risk of damage to the vehicle and adjust their lending practices accordingly (e.g., requiring higher down payments or rates for risky drivers).
• Loan Terms Optimization: The lender can use the data collected from the GPS to improve their decision-making when structuring loan terms. For example, high-risk borrowers with poor driving habits may receive tighter terms or mandatory insurance policies to mitigate the risk.
4. Improved Customer Communication
• Accident Response Support: If the borrower is involved in an accident, the lender can offer immediate support by informing insurance providers or providing guidance on the next steps. This can strengthen the relationship between lender and borrower, potentially leading to better loan performance.
• Payment Flexibility in Emergencies: If an accident renders the vehicle
unusable, the lender may have the option to temporarily adjust payment schedules or offer payment deferrals, which could prevent default and improve borrower retention.
5. Fraud Detection
• Accident Verification: In case of fraudulent claims where a borrower might report an accident that didn’t occur, the GPS data can be used to verify the legitimacy of the accident. The system can provide exact details on the accident’s location and severity, reducing the chances of false claims and saving costs.
In summary, a GPS system equipped with accident notification can protect a subprime lender's assets, reduce losses, and optimize loan management by providing better data on borrower risk and vehicle status. This helps both in protecting the lender's investment and improving borrower relations.
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Flag Presentation at 8AM Trophy Ceremony at 11:30AM
9thAnnual SUMMER SLAM SALE
JOIN US ON TUESDAY, JULY 29 9:30AM | 2,500 UNITS 15+ LANES
Please join us for our 9th Annual Summer Slam event sale and enjoy a day of home runs, your favorite ballpark food, and amazing inventory!
First 150 clients in the doors will get a complimentary lunch ticket, and commemorative Summer Slam apparel! Featured sellers with fabulous prizes to be given away!
DUNK A MANAGER!
11AM - 12:30PM BEHIND LANE 1
For a donation of $20 to the Boys and Girls Clubs of America, get three chances to dunk the manager of your choice!
Legislative Update Key Insights and Action Steps Following the Vacating of the CARS Rule
By Kathy Sabaski, MidAtlantic IADA
The 5th Circuit Federal Court vacated the CARS Rule ("Combatting Auto Retail Scams") at the end of January this year. This Rule was not vacated because the courts realized that there was duplication with existing FTC Rules or because of the enforcement clashes between Federal agencies but because the FTC was so eager to capitalize on the mistrust of our industry that it jumped the gun and failed to follow its own procedures for Rulemaking.
Let's be clear—we did not win this battle— they defaulted on a technicality. This is not a feather in the cap in defeating overregulation. A new administration may revive the CARS Rule and assist the FTC in following the correct procedure to fast-track its reinstatement, with the potential for more teeth to the Rule. We NEED to be vigilant.
What does that mean for the automotive industry?
With the current Administration's concentration on pulling back on overreach and duplication in Federal oversight, the tides have changed. The FTC and what's left of the CFPB continue to target the automotive industry's practices, specifically disclosures and lending, through the states' Attorneys General. They have continued to expand what falls under their definition of deceptive practices under UDAP ("Unfair and Deceptive Practices").
The FTC is going to the most sympathetic AGs – especially those who filed an "Amicus Brief" in support of the CARS Rule despite the illegal manner in which it had been constructed. In our region, this includes Delaware, Maryland, New Jersey, New York, Pennsylvania, and Washington DC – with the charge being led by California. States are being encouraged to "fill the vacuum" left by the CARS Rule defeat – but in reality, most states already have
extensive consumer protection regulations that serve the same purpose.
Rather than the "recommendation" of the CFPB (which had been knocked down quite a few pegs) encouraging enforcement action by the FTC, the FTC is now pushing down the same encouragement for enforcement action by the state's Attorney's General. In states where the AGs are less able to be influenced, the FTC's focus is shifting to lawmakers to supplement existing laws where they believe a deficiency exists. The legislators are being led to believe that it is their responsibility to protect consumers from themselves. Consumer advocacy groups that were huge proponents of the CARS Rule are pushing AG involvement in complaints, as are aggressive attorneys.
To clarify—the industry leaders, MidAtlantic IADA and NIADA are NOT opposed to complete and express consent on the part of consumers. We believe in dealers being ethical in their presentations and following all prescribed rules and recommendations already in place… maybe even more so—to root out the unethical dealers that give us all a bad reputation.
ACTION ITEMS to Takeaway:
We need to be vigilant—if you hear something, say something—this could be an offhand comment from an inspector or legislator. We are constantly watching proposed legislation locally and Nationally, but if something is mentioned or someone is being targeted, please let us know so we can get involved.
We need to be sure our practices are bulletproof!
Follow all existing laws and rules in place.
Be SURE to obtain "Express Informed Consent" from EVERY buyer, EVERY time:
0No Prechecked Boxes
0No Vague "Bundles"
0No hidden fees or multiple fees lumped under one heading
0Transparent sale process with detailed disclosures
0 Consistency in EVERY DEAL, EVERYTIME, and in EVERY DEAL JACKET
If you are involved with Menu Selling (which we highly suggest for multiple reasons), your menu must include an "OPT-OUT for ALL," presenting each product's ala carte cost to the buyer and a clear explanation of the purpose of each product.
If you have any questions, please get in touch with me at 717-638-9002 x129 or our valued sponsor, Ignite Consulting. We will gladly review your situation and what you need to protect yourself better. All you need is one displeased customer to make your life a nightmare. Visit www.ignitecp.com/ free-resources or www.hudsoncook.com/ insights-subscribe.cfm to keep up to date faster than we can get info out to you. Have a GREAT month, and we look forward to continuing to serve you!
Sources: Ignite Consulting Partners, webinar 6/17/2025, with Ace Christian of Secure Close and Steve Levine of Ignite Consulting Partners
MayerBrown.com, article, "A Post CARS Rule Break? Not So Fast. Buckle Up For New Regulatory Activity In The Motor Vehicle Space", Authors: Kris D Kelly, Jeffrey Taft, and Joy Tsai
2025 AGENT TRAINING COURSE
7/16 In-house at MidAtlantic IADA 1501 North Front Street, Harrisburg, PA 17102
8/19 Central Pennsylvania Auto Auction 41 Airstrip Drive, Mill Hall, PA 1775
8/28 Bloomsburg Auto Auction 25 Ridge Road, Bloomsburg, PA 17815
9/23
Navigating BHPH Risks and Inventory Challenges for Retail Dealers
By Advantage GPS
Independent auto dealers and BHPH operators in the Mid-Atlantic region are facing mounting economic and operational challenges such as rising vehicle acquisition costs, elevated interest rates, and a surge in auto theft combine to make risk management and inventory control more complex than ever.
Vehicle theft rates have soared in the Mid-Atlantic region. Pennsylvania saw a 35% year-over-year increase in reported auto thefts in 2023, according to the National Insurance Crime Bureau (NICB).
Automotive finance delinquencies and vehicle repossessions have increased nationwide, according to a recent report
by the American Recovery Association.
Repossession assignments in the U.S. reached 2.1 million year-to-date through April 2025, marking a significant 50% increase compared to the 1.4 million assignments recorded for the entire year of 2024. This remarkable surge in repossessions is a continuation of a recent trend, reaching its highest levels since the 2008 financial crisis, with approximately 1.73 million vehicles repossessed in 2024—a 16% increase from 2023 and up 43% from two years earlier, according to Pymnts.com.
As margins narrow and lending risks grow, independent dealers need smarter, more integrated approaches to protecting assets, staying compliant, and operating efficiently.
Rethinking Lot Management for Efficiency and Control
Efficient lot operations are key to a dealership’s profitability. When inventory isn’t sales-ready or worse, can’t be located, every lost minute translates to lost revenue. Dealers also face challenges with floorplan audits, battery maintenance, and recon bottlenecks—all of which slow the sales cycle and increase expenses.
Consider the dealer whose lot attendant severely damaged a vehicle he was moving from a local body shop to the dealership. Instead of reporting it to the dealer, he left the vehicle at a nearby Cadillac dealership’s service lot. The dealership was large enough that no one discovered
the vehicle had been missing for about a month when a confused service manager from the Cadillac store called the dealership and asked if they were missing a car.
Real-time lot tracking solutions, along with alerts regarding battery status and other vehicle health information, are proving invaluable for managing recon processes, avoiding penalties from missed audits, and supporting floorplan lenders.
Getting Ahead of Risk in BHPH Portfolios
For BHPH dealers, the rising costs of repossessions—in both time and money— make early risk detection more critical than ever. Spotting behavioral red flags, such as missed payments, unauthorized use (like ridesharing), or signs of vehicle abandonment, has become essential to avoiding losses and maximizing operational efficiency. Predictive risk tools integrate GPS tracking,
geofencing, and borrower behavior modeling to help dealers identify and address potential issues early—often before repossession becomes necessary. These technologies not only reduce losses but also support compliance by generating detailed audit trails and documentation essential for internal reviews and meeting regulatory requirements. As enforcement tightens, having accurate, real-time data on customer vehicles is no longer optional, it’s critical. Strict regulatory enforcement requires having accurate, timely data on customers’ vehicles.
Maximizing Fixed Ops with Data-Driven Retention
Keeping customers engaged after the sale has long been a challenge for retail dealers. Nationally, nearly 70% of vehicle buyers service their cars at locations other than where they purchased the vehicle. Keeping service bays full and wrenches turning requires proactive, personalized outreach based on real-time vehicle diagnostics and verified odometer readings. Sending proactive alerts specific to that customer’s vehicle is like having a service advisor in the passenger seat who assists the customer in maintaining optimal vehicle performance.
When dealers can see an active check engine light or know precisely when a customer hits a service milestone,
they can create timely and relevant offers—rather than relying on generic maintenance schedules. These insights enable campaigns that increase service bay utilization and foster customer loyalty. It’s a more strategic, data-driven approach to capturing revenue from fixed operations.
Integrated Technology, Real-World Impact Independent dealers today need tools that simplify their daily workflows while helping them respond to growing market challenges. The ability to integrate lot visibility, risk analysis, and service retention into one operational ecosystem isn’t just a competitive edge— it’s becoming an operational necessity.
Technology Solutions That Maximize Profit
Solutions such as Advantage GPS are being used by dealers to help navigate these challenges—from risk mitigation and lot management to long-term customer retention. These tools are part of the Advantage platform suite, a subsidiary of Connected Dealer Services (CDS), which continues to develop technologies designed to support independent Retail and BHPH dealers.
This month, we'll discuss Secure Power of Attorney. Did you know that this is a very important member benefit? You can only get these from us and PAA; we are the sole distributors in PA. Please read on for those who don't know what they are. Kathy, our Deputy Executive Director, gave me the notes on who uses them and why you should use them.
• A registered Pennsylvania Dealer uses a Secure Power of Attorney.
• Dealers must include their DIN number when ordering Secure Power of Attorneys.
• The forms will be poly-wrapped with 100 per package.
• The Bureau of Motor Vehicles recommends that users maintain a log listing the date SPOA is issued, the form control number, the seller's name and address, and the vehicle's VIN/title number.
Situations:
1. Taking a vehicle on trade with a lien – Section A.
2. Selling a vehicle taken in on trade or a vehicle with an open floorplan – Section B.
3. When the title is received – the person filling out the title and MV form with the information from the SPOA (Secure Power of Attorney) -Section C.
4. When the vehicle is to be titled in PA, the dealer must submit to PennDOT for processing both the original light green and orange secure copies of the SPOA.
5. When the vehicle is to be titled outside of PA, the dealer must submit to PennDOT the original light green copy of the SPOA attached to a copy of the certificate of title (front and back) accompanied by a processing fee. The orange secure copy is to be attached to the properly assigned certificate of title and given to the purchaser.
6. When the vehicle is to be transferred to another licensed dealer, the first selling dealer must submit to PennDOT the original light green copy of the SPOA attached to the copy of the certificate of title (front and back) accompanied by a processing fee. The orange secure copy must be attached to the appropriately assigned title and given to the acquiring dealer.
NOTE:
• During this authorized transfer process, no more than one SPOA shall be used per vehicle or certificate of title.
• If the vehicle is a "floor planned" vehicle, the selling dealer does not need to complete Section A and go directly to Section B to sell the vehicle.
In situations where the dealer cannot wait to offer the vehicle for resale and has not yet received the certificate of title from the lienholder, Section B of the SAME SPOA form can be used to transfer ownership to a new purchaser.
Wow, that was a lot of information! I hope you all understand how important these are and when to use them. If you're still having problems, you know where I am: 717-238-9002, Option 1. Please give me a call and remember this is a service for our members!
