Auto dealer risk management essentials COULD THIS HAPPEN TO YOU?
BUILDING A DEALERSHIP THAT RUNS WITHOUT YOU
Dealerships
systems
DELAWARE
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, 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
Gregg Pachik
Manheim Philadelphia, Hatfield, PA gregg.pachik@manheim.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, Millersville, PA jashanf1@gmail.com
Scott Hendershot
Town Hill Auto Sales, Bedford, PA scott@townhillautosales.com
Nik Dumin
Tyrone Auto Sales, Tyrone, PA nik@tyroneauto.com
Tom Brandis, Executive Director tom@midatlanticiada.org | (215) 805-2034
Kathy Sabaski, Deputy Executive Director kathy@midatlanticiada.org | (267) 733-5402
Copyright 2025
Could This Happen to You?
Auto dealers face risks like repair negligence, loaner vehicle liability, and repossession issues. Proper documentation, insurance coverage, and risk management are essential.
Building a Dealership That Runs Without You
How independent car dealership owners can transition from sole decision-makers to building resilient businesses through strong processes by delegating, using data for accountability, and creating growth-oriented systems.
Legislative & Government Relations Update
Patrick O’Brien from NIADA recently addressed the importance of compliance in dealerships at the 2025 MidAtlantic Convention & Vendor Tailgate, urging dealers to engage in advocacy as legislation impacts their businesses.
Top
5 Things to Keep You Out of Hot Water in an Audit
Prepare for audits with these essential tips, including maintaining professionalism, using state-specific documents, and addressing complaints seriously. Stay informed to ensure compliance and minimize risks in your dealership.
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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
Lead Title Clerk (717) 238-9002 brenda@midatlanticiada.org
JEAN WEBB
Title Clerk (717) 238-9002 jean@midatlanticiada.org
PRESIDENT'S MESSAGE
Well, guys… what a month.
If you missed the MidAtlantic Annual Convention & Vendor Tailgate down in Atlantic City, you missed something special. And if you were there, you know exactly what I mean.
Dealers from New Jersey, New York, Pennsylvania, Maryland, and Delaware showed up ready to learn, connect, and bring new energy to our industry. From the kickoff to the closing session, the enthusiasm in that room was electric. It wasn’t just a conference — it felt like a team taking the field together, ready to move the chains and win as one.
Our vendors absolutely delivered. Booths were busy, conversations were honest, and nearly every one of them told me it was one of the best events they’ve ever been part of. They weren’t just pitching products — they were sharing solutions, helping dealers sharpen their playbooks, and forming relationships that will last long after the last tailgate cooler was packed up.
And the rookies — the first-time attendees — tthey were fired up. You could see it in their faces. They came ready to learn, asked great questions, and soaked up every bit of knowledge they could. More than one of them said, “I can’t believe how much I got out of this weekend.” That’s what it’s all about — growing together.
I want to give a big shoutout to Tommy Brandis and everyone who helped make this event happen. It takes a team to pull off something like this, and ours delivered big time.
The response afterward has been incredible. Just look at a few of the comments we’ve seen rolling in on social:
“To sum it up for us guys — WE ALL made the most of the MidAtlantic IADA Convention in Atlantic City, NJ!”
— Bert Straub
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!
“Definitely an inspiration to Tennessee!”
— Tennessee Independent Auto Dealers Association
“We’re proud to support an organization that continues to champion independent dealers and helps drive innovation in our industry.”
— Vendor Partner
Hearing that kind of feedback from across state lines reminds me that what we’re building here in the Mid-Atlantic is more than just a local effort — it’s a model for independent dealers everywhere.
But here’s what I want every dealer to hear — don’t stop there.
ADVERVTISE WITHIN
To advertise in the MidAtlantic Dealer News magazine, please send a request via email to tom@midatlanticiada.org
Robert “Bert” Straub President, MidAtlantic IADA President, NIADA State Presidents Council
Message from the Executive Director
Hello Dealers!!
Welcome to November and the beginning of the Holiday Season. First off, I want to apologize for this issue hitting your desk a few days late. I wanted to make sure we had enough time to properly recap the “Most Talked About Dealer Experience on the Calendar” The MidAtlantic Annual Convention & Vendor Tailgate.
For those who were there, I think you will agree, this year was the biggest event yet. From the interactive workshop session that kicked off at 2pm on Sunday until the Tampa Bay Bucs let our friends from Tax Max down on Monday night, this event was HIGH ENERGY!!!
I would like to take the time to personally thank the vendors who really set the tone in the expo hall. You all understand our vision of creating an annual “One Stop Shop” “Do Not Miss” destination convention for all dealers and their teams to be able to check out the most cutting-edge services and products our industry has to offer.
To our speakers… Another HUUUGE Thank You. Every dealer I spoke with raved about the sessions they attended. You all understood the task at hand and delivered excellent sessions on your respective topics.
To the dealers who attended… As I said in my opening comments on Sunday, YOU are the ones who understand the importance of constantly educating yourself and your team. Whether you realize it or not, YOU have a definitive edge over your competition. Be sure to stay connected with the speakers, vendors and other dealers you met a few weeks ago. They are your “Board of Directors”. They will be there when you need them.
Finally, to my TEAM… I can’t thank you enough for working so hard, while putting up with me, to make this event the best in the industry. You understand my vision to bring “Knowledge, Education and Training to as many dealers as inexpensive and accessible as possible”. You are all awesome!!!
For those who missed this year, don’t make the same mistake next year. I will give you plenty of time to plan around the 2026 MidAtlantic Annual Convention & Vendor Tailgate. Get out your sharpie and mark your calendars now… October 4-5, 2026, at Caesar’s Palace Atlantic City.
If you have any questions, concerns or ideas, I can be reached tom@midatlanticiada.org or my direct cell, which is always on, 215-805-2034.
Until next month,
TOM BRANDIS Executive Director t TOMBRANDI D S
COACHING
Harrisburg | Lancaster
COULD THIS HAPPEN TO YOU?
By Steve Levine, Ignite Consulting Partners
Over the years, I have had some pretty serious “bet the company” lawsuits brought to my attention. I am sharing them here because each of them is a “real life” example of the daily risks faced by this audience, some of which aren’t very obvious. These aren’t necessarily “compliance” focused, but do a good job of illustrating how important it is to identify risks and manage your business accordingly. Every person reading this article should ask themselves whether they're vulnerable to these types of risks.
A Repair Nightmare
In the first case, a used car dealer did some repairs on a vehicle it had recently sold and financed. Several months later, that vehicle was involved in a catastrophic collision that resulted in severe injuries to the driver and others. The used car dealer was sued based on the theory that the repairs were negligently performed and directly resulted in the accident.
This fact pattern can happen to any mechanic or repair facility. It’s the risk that’s taken in providing that kind of service. So what can be done to protect the business? First, how good a job is the business doing in keeping track of the specific services it provides and every repair item being performed on the vehicle? How thorough are the notes on a test drive done after repair? What documentation exists? You
sufficient to cover catastrophic events such as this.
Providing a “Loaner” Vehicle
The next matter involves a dealer that provided a “loaner vehicle” to a customer that brought a vehicle in for repairs under a limited warranty. While the company doesn’t usually provide such a “loaner”, it did in this case because repair parts were on back-order. The customer took the “loaner” and then allowed a child (of legal age) to drive it. That child had a collision that resulted in serious injuries and a fatality.
can be assured that the plaintiff’s lawyer will be picking apart every note in the system, each part that was used, and will also want to depose the mechanic, so the level of detail is going to be scrutinized. Secondly, this is the type of case that emphasizes the importance of having adequate liability insurance in place. Hopefully, the coverage is sufficient to provide the dealer/repair facility with a legal defense and also cover any damages if the plaintiff were to prevail. I can’t emphasize enough how important it is to conduct a regular assessment of your insurance coverage and make sure it is
The plaintiff’s lawyer, looking for any pocket it could find to cover the claim, sued the dealer as the owner of the “loaner vehicle”. Fortunately for this dealer, it had a strong process when providing a “loaner”, including verifying that the customer carried its own liability and property damage insurance and having the customer sign a document stating that the customer would be the only one operating that vehicle. That document may very well be the difference between the dealer being able to get out of the case versus being stuck in a legal quagmire.
Here again, the subject of sufficient insurance coverage is important to consider. It’s imperative that each business understand its insurance coverage and what acts are covered and are either not covered or excluded from coverage. I’ve seen instances where a dealer took on unacceptable risk because it was operating on the incorrect assumption that events
would be covered under a certain policy. I encourage my clients to sit with their insurance agent once a year and discuss various circumstances that can present risk and identify whether current insurance covers such an event. It’s vital that the insurance agent fully understands the operations of the business. This is especially important for dealers that also have a related finance company, because the type of risks that may present themselves can be very different.
Repossession Gone Wrong
The last case I’ll mention involved an unfortunate repossession. During the repossession agent’s towing of the vehicle, it had a collision with another driver that resulted in serious injuries to that driver. Again, the plaintiff’s lawyer was looking for deep pockets and sued the creditor along with the repossession company.
As a best practice, a creditor should have a contract with every repossession agent that requires the agent to make certain representations and warranties, requires adequate insurance, and contains clear indemnity provisions. In the case brought to my attention, though, the agreement didn’t say much more than “you’ll repossess and we’ll pay you”. Also, although the agent had started out with sufficient coverage, over time it dropped its coverage amount to where it’s now likely to be insufficient to cover the entire claim and you can bet that the plaintiff’s lawyer will be looking to collect from the creditor’s company.
Conclusions
I don’t share these stories as a scare tactic or to sound alarmist. I do so because these are the kinds of risks that prudent business owners will prepare for ahead of time. It’s important to look at all aspects of your business and identify both likely and even unlikely scenarios and question whether there are proper controls and protections in place. Taking that proactive approach will not only serve to better protect your business, it will help you sleep at night.
Steve Levine is an auto finance lawyer with over 30 years of experience protecting car dealers and finance companies. He is the owner and Chief Legal and Compliance Officer of Ignite Consulting Partners, which offers guidance on compliance, operations and best practices. In 2022 he published Winning the Fight: A Guide to Protect Car Dealers, and he recently published Counterpunch: Compliance Strategies for Car Dealers, both available on Amazon. Please follow Steve on Twitter @LawyerLevine for compliance and industry related content.
Steve Levine is an au deale Chief Com offers on c Win he for Car D Steve on T c
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 information and 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.
Become Less Important: Building a Dealership That Runs Without You
By Robert Marquardt, MagiLoop
Entrepreneurship in the car business often starts with one person doing everything: buying cars, closing deals, collecting payments, and fixing whatever breaks along the way. It’s what makes independent dealers so resilient. But it’s also what keeps many of them stuck.
If your dealership can’t function without you, you don’t own a business. You own a job. The path to freedom isn’t found by working harder. It’s found by building a process so strong that you can step away without the wheels falling off.
The Hero Trap: When the Owner Becomes the Process
Many dealers pride themselves on being the go-to person for every decision. You can price a car on instinct, spot a weak deal from across the room, and know which customers will pay just by the look in their eye. That intuition is powerful, but it’s also dangerous.
When everything runs through you, growth stalls. The dealership becomes dependent on your judgment, your presence, and your energy. You’re the bottleneck. And as the business grows, that bottleneck tightens until burnout sets in.
The most successful dealers I’ve met have learned to let go. They trade control for consistency, and that starts with process.
Process Over Personality
A strong dealership doesn’t rely on superstars; it relies on systems. Think of your favorite restaurant: the food tastes the same every time because there’s a recipe, not because the chef is guessing. Dealerships are no different.
From how leads are handled to how deals are structured, everything should follow a documented process. That doesn’t make your team robotic; it makes them reliable. When your people know what to do and how to do it, they can perform with confidence even when you’re not in the room.
Automation plays a big role here. CRMs that track every touchpoint, underwriting tools that calculate risk automatically, and integrated dashboards that show performance in real time are not just conveniences. They’re the building blocks of a scalable business.
Delegating with Data
The biggest fear owners have about delegating is losing visibility. “If I’m not watching it, how do I know it’s being done right?" That’s where data comes in.
Metrics like payment-to-income ratio, projected default rate, average loan term, and cost per lead turn feelings into facts. When your decisions are backed by measurable performance, you can hand off responsibility with confidence.
Data also keeps your team accountable. If the numbers start slipping, the system tells you before it becomes a problem. It’s no longer about trusting someone’s word; it’s about trusting the process.
Freedom Through Framework
Becoming less important doesn’t mean you’re less valuable. It means you’ve built a dealership that doesn’t depend on you for survival.
When your process handles the routine, you can focus on strategy, growing your inventory, strengthening your brand, or maybe taking a long weekend without worrying about what’s happening back home.
The dealers who thrive in the years ahead won’t be the ones working the longest hours. They’ll be the ones who’ve learned to replace instinct with insight, and hustle with habit.
If you want your business to grow, start building it to run without you. The goal isn’t to be the hero. It’s to build a system where heroes aren’t required.
Robert Marquardt spent over a decade as manager at a BHPH dealership. He is now part of the team at MagiLoop, a technology company built by BHPH dealers for BHPH dealers. MagiLoop helps dealers streamline their frontend process with integrated website, CRM, marketing, and automated underwriting solutions.
Freedom Starts With Process
Dealers who build defined processes gain freedom faster.
• Real-time dashboards
• Automated underwriting
• Website + CRM integration
• Smart marketing follow-ups
MagiLoop – Built by BHPH dealers, for BHPH dealers.
Auctions
Scan for Demo
Lebanon Auto Auction
DEALER SETUP
1501
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.
Legislative & Government Relations Update –November 2025
By Kathy Sabaski, MidAtlantic IADA
Last month we were honored to host Patrick O’Brien, NIADA Director of Government Relations & Compliance, at the 2025 MidAtlantic Convention & Vendor Tailgate. Those of you who were able to attend heard Patrick explain the desperate need for compliance in dealerships of every size due to several states’ Attorney Generals hiring former CFPB staff. This is absolutely something we highly recommend all dealers are aware of, educated on and take the necessary steps to protect your dealership, but Patrick also touched on the government relations side of what we do and how you can help.
In this month’s article, we’d like to give you an idea of how both MidAtlantic IADA and NIADA advocate for you and ask for your help in helping yourself and fellow dealers. As an Association, we can only do so much to influence legislation and rule-making – YOUR Representatives and Senators want to hear from YOU. We can educate
the Legislators, their Aides, Assistants and Staff on upcoming bills but without their constituents (YOU) speaking up and letting them know that these issues are directly affecting real people in their districts, we are only talking heads.
To assist all MidAtlantic IADA members to be more aware and better able to advocate for each other, we will be making some changes to our website:
The “News & Alerts” tab will show a history of any alerts, bulletins or updates we’ve sent out or posted.
We will be launching a new “Government Relations” tab – this will be your home base to find out what is going on with legislation and regulation, what we’re doing about it and how you can help.
Under this new tab members will be able to:
see any Legislative Articles published to the magazine
review updates received from NIADA
find the contact information for their Federal Legislators
view a repository of fact sheets on pending legislation we are advocating on or opposed to and
view sample letters for dealers to send to Legislators after customizing and reproducing on their own letterhead.
We hope that these additional tools will assist dealers who wish to be involved to be more aware of what’s out there, how it affects your business and better advocate for yourself.
In September, NIADA held a meeting of the Legislative and Regulatory Affairs Committee in conjunction with the National Policy Conference and Day on the Hill. ALL NIADA MEMBERS are ENCOURAGED and WELCOME to attend these events. MidAtlantic IADA visited and spoke with more than thirty aides, assistants, Representatives and Senators over the course of two days on your behalf. We had the opportunity to share experiences and swap stories with independent dealers from across the country, then visit Legislators to give a face and personal voice to what was just another piece of paper to cross their desk.
One of the bills that we have endorsed and are actively keeping on your Legislators’ radar is the REPAIR Act, officially H.R. 1566 and S. 1379, the “Right to Equitable and Professional Auto Industry Repair Act”.
When this bill is hopefully passed, it will level the playing field between aftermarket parts manufacturers, independent dealerships and independent repair facilities and the OEMs.
H. R. 1566, Section 2(a)(1) reads in part:
“A motor vehicle manufacturer may not employ any technological barrier or specified legal barrier that impairs the ability of—
(A) a motor vehicle owner (or a designee of a motor vehicle owner) to access vehicle-generated data pursuant to paragraph (2);
(B) a motor vehicle owner (or a designee of a motor vehicle owner), an aftermarket parts manufacturer, a diagnostic tool manufacturer, a manufacturer of motor vehicle equipment, an aftermarket parts remanufacturer, or a motor vehicle repair facility (or a distributor or service provider of a motor vehicle repair facility) to access critical repair information and tools;
(C) a motor vehicle owner (or a designee of a motor vehicle owner) to use a motor vehicle towing or service provider chosen by such owner (or such designee);
(D) an aftermarket parts manufacturer, a motor vehicle equipment manufacturer, an aftermarket parts remanufacturer, or a motor vehicle repair facility (or a distributor or service provider of a motor vehicle repair facility) to produce or offer compatible aftermarket parts; or
(E) a motor vehicle owner (or a designee of a motor vehicle owner) to diagnose, repair, and maintain a motor vehicle in the same manner as any motor vehicle manufacturer or motor vehicle dealer.”
How it affects you:
No more having to sublet flashing a BCM or ECM to a franchise dealership or “factory authorized repair center” because they essentially hold the vehicle data hostage.
No more restrictions are built into the BCMs or ECMs that prevent aftermarket parts within acceptable tolerances from being used.
No more “I’m sorry, for your vehicle, that part is only available from the manufacturer at a premium” conversations with your customers.
No more having to spend retail money to recon your inventory because you MUST source your parts from the local franchise dealerships’ parts departments or the franchise dealership has access to complete the repair you can’t even purchase.
For more information on the REPAIR Act and other pieces of legislation that could directly affect your business operations, please stop in and check out the new “Government Relations” tab on our website. Please reach out if you’d like to find out how to support us in representing you by your participation (joining us on Capitol Hill or writing letters) or a monetary donation to the PAC Fund to assist us in forwarding causes important to you.
LEARN MORE
Donations to MidAtlantic IADA PAC to
Funds must be made by check or money order from an individual – and can NOT be accepted from any business entity.
Please contact Kathy for more details on how to get involved or to make a donation to further our efforts.
Hi Everyone,
It was wonderful to see all of you at our convention! I had a fantastic time connecting faces to the dealers and vendors I have been speaking with on the phone for years. If you weren’t able to attend, you really missed out. There was plenty of valuable information, networking opportunities, delicious food, and fun times as well. The event was a great success, and we truly wanted all our members to be there.
I completely understand that some of you may have had circumstances that made it impossible to attend, but remember that these events are an essential part of your membership. We are here to support you, and missing out on the convention might mean missing a chance to learn something that could transform your business and increase its profitability.
We are always striving to find ways to assist our dealers. Your membership fee of $399 contributes to numerous resources and support services. As I often say, we need you just as much as you need us.
On that note, I want to ask all our fantastic members: do you know a dealership we could help? Are there dealers
you can suggest I reach out to? Please let me know! If each member brought in just one dealer to join us, it would significantly enhance our strength in numbers. We do a lot behind the scenes for you, and there is always power in unity!
If you missed the convention this year, I hope to see you at the next one. Don’t forget to send me any referrals!
I would also like to extend my gratitude to Tom, Kathy, Steve, and Keith and Stephanie with Blue Core, for their hard work in making this year’s convention a success! It was a pleasure to be there with all of you, and I eagerly anticipate how amazing next year will be!
TOP 5 THINGS TO KEEP YOU OUT OF HOT WATER IN AN AUDIT
You see a vehicle pull onto your lot and the very professional looking person who approaches your door is not carrying themselves like your normal customer… your heart skips a beat and you just KNOW… it’s an AUDITOR. YIKES!
Here are the TOP 5 things that ANY auditor from ANY department, regardless of your location, are currently keying in on:
#1
NEVER argue with an auditor from ANY Federal or State agency! Thank them for their time, provide them with the documents they request, be polite. Even if they seem less than friendly, they can only report what they find – if you become agitated or confrontational, they may think you are trying to hide something and dig deeper than usual. No matter the findings, you have the right to arbitration or appeal based on your jurisdiction.
Sale” sticker on it or write “Not for Sale” on the windshield or driver’s window. When detail & prep have been completed, replace with the CORRECT FTC Sticker. Be sure to consult with your service contract/warranty provider on exactly what you are offering and how it should be identified on the label if indicating anything other than “AS IS”. (Service Contracts are NOT Warranties!)
#2
Be sure that you are using documents in your deals that are STATE SPECIFIC to the CORRECT state! Especially in CT, IL, MD, NY & PA, where many former CFPB officials have found new positions with the Attorney General’s offices, auditors are paying close attention to Buyer’s Orders, Contracts and Disclosures. A simple mistake may lead to a parade of other auditors & fines.
#3
EVERY VEHICLE on your sales lot NEEDS to have either an FTC Sticker (“AS IS”/Warranty Label) or a “Not for Sale” sticker! As soon as a vehicle is taken in trade, comes off a transport or arrives on your lot from auctionbefore it even goes through detail – either throw a “Not for
#4
Take EVERY COMPLAINT VERY SERIOUSLY – the Attorneys General DO! Have a WRITTEN plan in place to address different kinds of complaints (advertising, discrimination, mechanical, etc). This policy should also assign a clear individual or position responsible and chain of authority to respond and take action. Attorneys General keep an ongoing record of ALL consumer complaints, even those that are unfounded.
#5 OFAC, RED FLAG RULES & protection of PII are HOT BUTTON items with auditors! When an auditor walks in, they WILL ask you to produce your WRITTEN POLICIES – be prepared to hand them a prepared binder and smile. You’ve got this!
Please be VERY AWARE that regardless of the entity the auditor identifies themselves with, in this climate of “DE-REGULATION”, each one is looking out for infractions and will be notifying the appropriate Federal or State agency to come to YOUR dealership to take a closer look at what they think they found.
