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A P R I L 2 0 2 2 • M I D AT L A N T I C AU TO D E A L E R S U N I T E D. O R G

MID-ATLANTIC

DEALER NEWS

H I G H L I G H T I N G P E N N S Y L V A N I A • M A R Y L A N D • D E L A W A R E KEY PRIVATE BANK ECONOMIC PERSPECTIVES:

IS THE ECONOMY OVER INFLATED? LEGISLATIVE UPDATE

Rep. Louis Schmitt (R-Blair) introduces House Bill 2372

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APRIL 2022 | CONTENTS

The official magazine of the

MIDATLANTIC INDEPENDENT AUTO DEALERS ASSOCIATION

PENNSYLVANIA • MARYLAND • DELAWARE 1501 North Front St., Harrisburg, PA 17102 (717) 238-9002 midatlanticautodealersunited.org Copyright 2022 Chris Smiley - Advisor Mountville Motor Sales, Columbia, PA rcsmiley@comcast.net Noah Melamed- President Ticket to Ride Auto, Lancaster, PA nmelamed@yourttr.com Michael Brill - Chairman of the Board B&B Automotive of Fairless Hills, Fairless Hills PA 5to5cars@comcast.net Bert Straub, President - Elect 1st Choice Auto LLC, Fairview, PA bertcstraub@gmail.com John DeFilippo - Treasurer DeFilippo Bros. Motorcars, Prospect Park, PA john.m.defilippo@gmail.com Clint Weaver- Secretary America’s Auto Auction Harrisburg, Mechanicsburg, PA clint.weaver@americasautoauction.com Tom Hodges, Vice-President Tom Hodges Auto Sales, Hollywood, MD tom@tomhodgesauto.com Dan Limongelli, Vice-President Jo Dan Motors, Plains, PA jodanmotors@gmail.com Michael Mansour, Vice-President Car Connection, Inc., New Castle, PA mike@carconnection1.com Beth Melamed, Vice-President Ticket to Ride Auto, Lancaster, PA bmelamed@yourttr.com Tom Brandis • tombrandis@netscape.net Advantage Auto Sales & Credit, Quakertown, PA Lisa Cohowicz • lisac@nepautoauction.com North East Pennsylvania A/A, Scranton, PA Jeff Dreier • dreierauto@hotmail.com Dreier Auto Sales, Shavertown, PA April Hollobaugh • ajautosalestitusville@gmail.com A&J Auto Sales, Titusville, PA Kevin Luring • k.luring@yahoo.com ADESA PA, York, PA James Makia • james@exclusivemotorcarsmd.com Exclusive Motorcars, Randallstown, MD Dan McNamee • dtlcars@aol.com Daniel Thomas Auto Sales, Croydon, PA Gregg Pachik • gregg.pachik@manheim.com Manheim Philadelphia, Hatfield, PA Kerri Rotunda • kerrir@corryade.com Corry Auto Dealers Exchange, Corry, PA

FEATURES 4 | Personal information stored inside cars presents risk to dealers Text messages, call logs, home addresses and even medical and financial information are all vulnerable to theft if left behind when a vehicle is sold. 9 | Electric Vehicles Take Bigger Slice of Automotive Lending in Q4 The electric-vehicle share of auto financing roughly doubled in fourth-quarter 2021, compared with a year earlier, as EV offerings expand among the more mainstream brands and into more product segments, Experian Automotive says. 10 | Key Private Bank Economic Perspectives: Is the Economy Over Inflated? Major global central banks have long regarded a two percent inflation target as the sacred metric that drives economic policy. But a decade later, we live in a world that Bernanke could have never predicted. 12 | The CARLAWYER© This month, the developments involve the Federal Trade Commission, Consumer Financial Protection Bureau, Federal Reserve Board, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, Department of Housing and Urban Development, Department of Justice, and Federal Housing Finance Agency. 17 | Legislative Update Rep. Louis Schmitt (R-Blair) introduces House Bill 2372 - Modifying Management of Abandoned Vehicles at Auction 20 | Support Your Support Teams From my dealership experience and observations from my current seat, good processes and good people are the pinnacles of success.

DEPARTMENTS 19 |

Sponsor Feature: Let’s Get to Know Advantage Automotive Analytics 22 | Membership Application 24 | Order Form for Dealership Supplies (PA & MD)

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Message from the President: Thank you for your service 16 | NIADA Convention Announcement 18 | Auction Directory q

MIDATLANTIC INDEPENDENT AUTO DEALERS ASSOCIATION SPONSORS

George Smouse • gasmouse@zoominternet.net Smouse Trucks & Vans, Mt. Pleasant, PA Steve Worley • worleymotors@hotmail.com Worley Motors, Enola, PA Jay Zimmerman • jay@zimmermansauto.com Zimmerman’s Auto Sales, Mechanicsburg, PA WOULD YOU LIKE TO RECEIVE A DIGITAL EDITION OF THE MIDATLANTIC DEALER NEWS MAGAZINE? Email shannon@piada.org

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022 | 1

q PRESIDENT’S MESSAGE

Thank you for your service.

NOAH MELAMED PRESIDENT MIDATLANTIC REGIONAL IADA TICKET TO RIDE AUTO SALES FINANCE, LANCASTER, PA One of the most rewarding experiences of my career has been serving on the board of MARIADA. Having an opportunity to be a positive force in our industry is what drives all of us to volunteer our time to our association. Please take a moment to thank all of our board members whenever you have an opportunity. They all go above and beyond to continuously improve our industry and to help legislators tackle the real issues affecting all of us. This year we have been fortunate to welcome several new members to our board. From the retail world we welcome James Makia of Exclusive Motor Sports and from an auction background we welcome Kerri Rotunda of Corry Auto Dealers Exchange. James Makia is an independent automotive operator and entrepreneur and currently serves as the President and CEO of Exclusive Motorcars LLC based out of the Baltimore metro area. Makia is an immigrant from Nigeria. He graduated from high school in Nigeria and came to America with his brother in July of 2001. Upon arrival to the states, Makia enrolled in the Criminal Justice program at the Community College of Baltimore County. He graduated with an Associate of Science degree and transferred to the University of Baltimore in the accelerated pre-law program in 2004. After attending and participating in the program

JAMES MAKIA PRESIDENT AND CEO, EXCLUSIVE MOTORCARS LLC

KERRI ROTUNDA GENERAL MANAGER, THE CORRY AUTO DEALERS EXCHANGE

for two years, James realized that his life passion was not in law or criminal justice. In 2006, he withdrew from his studies and began to pursue other interests. After speaking with some friends, he decided to invest in buying and selling cars. The first vehicle that James sold was a Ford Crown Victoria at a gas station in Baltimore City, MD. From that point on, James invested every dollar he made into procuring and selling used vehicles to the general public until he generated enough capital to open his first location in 2008 in the heart of Baltimore City. As a young immigrant who was able to come to this country and take advantage of the “American Dream,” James has taken pride in building an organization that affords the same to both his employees and his clientele. With the addition of his Randallstown location, James has gone from employing 17 people to 40 plus. The addition of the Randallstown location has also opened the door to new partnerships with lenders and businesses to assist his clientele regardless of their socio-economic status. James truly believes in giving back to the communities surrounding his dealerships, as well. From sponsoring the Park Heights Secret Society Youth Football organization to hiring graduates of the Full Circle Automotive program and donating vehicles to the Vehicles for Change program, he takes pride in being able to use his resources to build up everyone he encounters.

Kerri Rotunda is the General Manager of the Corry Auto Dealers Exchange in Corry, Pennsylvania. Having been in the auto industry her entire life, Kerri is passionate about the work being done at MARIADA and is an advocate for the industry. As a child she worked with her parents who operated several independent dealerships in the greater Erie area. Being exposed to the industry through her parents and getting to know dealers throughout the area, Kerri was drawn to the auto auctions. To gain experience, Kerri started as a block clerk and quickly moved through the ranks to title specialist, accounts receivable, sales, registration coordinator, fleet manager and finally general manager. Over the past 18 years Kerri has been involved with the Greater Erie Auto Auction, New Motors Inc, and the Corry Auto Dealers Exchange (part of Xlerate Group) where she recently accepted the award as ARI Regional Auction of The Year. Not only does Kerry have automotive sales experience, she also brings MARIADA legislative experience and a passion for the work being done by our board members.

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If you are interested in learning more about the work being done by our board and association or are interested in joining our board, please reach out to Shannon Becker at MARIADA or any of the current board members. Board members are elected at our annual president’s meeting in October. Please let us know if you’d like to help drive our industry forward. n

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022 | 3

Personal information stored inside cars presents a potential risk to dealers By Debora Toth, NIADA.com When a driver sells a used car to a dealership, he or she is often reminded to check around the vehicle for personal items – a cellphone, say, or maybe a child’s toy.

Text messages, call logs, home addresses and even medical and financial information are all vulnerable to theft if left behind when a vehicle is sold.

But what about personal data stored in the car’s computer system?

The numbers provide a true sense of the enormity of the problem of what is known as “persistent data.” More than 80 percent of the vehicles currently operating in the U.S. are able to capture personal data, and more than four out of five cars sold last year contain personal data.

How many consumers know what type of personal information is in their vehicles when they sell it? Personally identifiable information (PII) is data that can be used to identify a specific individual. It starts with Social Security numbers, mailing or email addresses, phone numbers and the like, but also includes a wide range of digitally available data, such as IP addresses, login information and more. Much of that data is collected by vehicles, as users connect their smartphones to vehicle infotainment systems and use onboard navigation systems and universal garage door openers.

What’s most concerning is consumers are not as aware of the security risks as they should be. A recent IBM security survey revealed only 8 percent of consumers were worried about protecting car navigation data compared to 64 percent who cared about data security in their mobile devices.

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In the automotive industry – especially used car dealerships – that problem has been festering for some time. A few individuals have been ringing the warning bell for years to alert the industry about PII in vehicles. State legislatures in California, New York and Georgia have taken the lead by enacting privacy laws, and more than a dozen other states have bills pending. Federal agencies, including the Federal Trade Commission, are taking a hard look at the issue. In 2017, the FTC co-sponsored a national conference with the National Highway Traffic Safety Administration and asked NHTSA to define its role and responsibilities related to the privacy of data generated by and collected from vehicles. Currently, the issue is still largely undefined by law. Peder Magee, a senior attorney for the FTC’s Bureau of Consumer Protection, said there is no law enforced by the bureau that specifically requires companies to delete or protect the privacy of consumers’

personal information stored in a car’s computer system. But that doesn’t mean anything goes. Magee said the FTC can protect consumer privacy using the FTC Act’s prohibitions against unfair or deceptive practices. “If a company makes a promise about how it protects a consumer’s personal information and fails to abide by that promise, it could open itself to enforcement under the FTC Act,” he explained. “Similarly, even without such a promise, a company that engages in acts or practices that are unfair could be subject to an enforcement action.” Magee said an act is considered unfair under the FTC Act if it “causes or is likely to cause substantial injury to consumers that is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits.”

Legislative wheels move slowly, so in the meantime private firms are stepping up to try to tackle the problem. This year, KAR Global – parent company of ADESA auctions and digital auction platform BacklotCars – launched a new training program for employees, symbolized by animated mascot Privacy Pam, to advance its commitment to data privacy in the digital age. “As the growing patchwork of government and customer requirements continues to evolve,” KAR chief privacy officer Michelle Bray said, “Privacy Pam will help ensure every KAR employee around the globe is aligned, aware and mobilized around this priority.” One group that’s taking a proactive approach to personal information is the American Recovery Association, the world’s largest organization of professional repossession agents. Executive director Les McCook said in-vehicle data security is a “super big issue” for the industry. “When you sell

your car to a dealership or another person, or if it goes to auction, you’re selling more than just your vehicle,” he said. “You could be giving them personal information from your navigational unit, passwords to your garage door opener, your home address, personal photos, a list of your contacts and even banking information.” To combat that problem, on June 1 ARA announced a partnership with Privacy4Cars. com, a technology company focused on “identifying and resolving data privacy issues across the automotive ecosystem.” ARA members will have access to Privacy4Car’s technology to help them delete personal data from repossessed vehicles, minimize member risk and differentiate themselves from competitors. McCook said ARA, along with “other organizations like auction houses, dealerships and finance groups,” believes Privacy4Cars founder and CEO Andrea Amico “is at the forefront of this problem and has a firm grasp on how to solve it.” Amico said he and his staff have been developing the Privacy4Cars technology for seven years. In 2014, he authored the first statistical study on how frequently data is left in rental and for-sale vehicles and the kinds of data found there. While completing that project, he realized how extremely common it was for drivers and occupants to leave – and unknowingly give others access to – highly detailed digital footprints of personal information in vehicles they no longer owned or controlled. Amico, a cybersecurity and vehicle privacy expert, designed his patent-pending process for deleting personal information from vehicles and launched his app in 2018. His company recently launched a new website that offers a variety of resources for businesses.

Repercussions Buying and selling used vehicles whose systems contain PII creates a number of

important issues, but many dealers haven’t thought about or don’t understand the potential repercussions. If a consumer discovers his or her personal information has been shared or stolen from a vehicle sold to a dealership, that dealership could be threatened with a lawsuit – defending against which can be difficult and costly in terms of legal fees and potential fines. At the very least, the dealership could end up with a bad reputation through word of mouth, social media, online reviews or even being spotlighted in a television news segment. Remarketers and dealers reselling vehicles without first erasing consumer data captured in onboard computers and convenience systems can put themselves at risk of violating consumer protection laws, Amico said. “Dealers have to realize that whoever holds the title to a vehicle is responsible for any data security problems or breaches,” Amico said. “They have to treat a vehicle like any electronic device, such as a smartphone or computer. Once they face a lawsuit, the math quickly adds up, especially for independent dealers. It’s just good data hygiene to eliminate the personal data.”

Whose Responsibility Is It? Because there is no federal law that specifically addresses data stored in vehicles – rather, the issue is covered by an assortment of laws from state to state – it isn’t always clear who has responsibility for that data.

But ignoring the issue is taking a risk. Steve Levine, an attorney and chief legal and compliance officer of Ignite Consulting Partners, said the responsibility falls on the dealership to wipe a used car clean of any personal data. Continued on next page

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Continued from previous page “This problem has been on the auto market’s radar for years,” he said. “As cars continue to be more connected and more people carry smart devices, it will continue to be a bigger problem. And eventually, every car will be impacted.” Levine likens the issue to a similar case years ago involving copy machines. Offices and businesses leased copy machines, and every time a copy was made, the image was stored in the machine. When the copy machine company picked up the old machine, it also carried away a lot of personal and corporate data stored on the machine – resulting in litigation. Levine said those suits can be based on state privacy laws or negligence claims. And, he added, “Plaintiffs’ lawyers will attempt to fit their claim under an unfair or deceptive acts and practices claim to try to get triple damages and attorney’s fees.” Levine said customers should be concerned when they sell or return a vehicle to a dealership. “They don’t know where their vehicle will end up – on the dealer’s lot, at auction… Who knows?” he said. “Plus, the majority of car owners have no idea how to wipe their data off of their vehicle. Dealers have to take this onto themselves and do right by the customer. It deserves consideration by the dealership to put it into policy and develop a process to protect the customer.” Some dealers are already doing that. One of them is Jeff Watson, owner of 4 Seasons Auto Sales in St. George, Utah. Two years ago, he added “depersonalization” to his dealership’s reconditioning process. Previously, his service team simply looked in the glove compartment and trunk for personal items and removed stickers and decals. Now the team resets the vehicle to its original factory settings and deletes any personal data, including addresses in navigation systems, phone numbers and even music lists.

“I learned about that from my NIADA Dealer 20 Group,” Watson said. “Then I tested it with my own car that I recently sold. “With the rise of ID theft, it’s certainly something dealers need to keep on their radar. It’s very easy to implement as a policy.”

Privacy and Security Laws As governments begin to address the issue of persistent data, they must answer one question: Who should be responsible for wiping a car clean of personal information before it’s sold? Manufacturers? Dealerships? Auctions? Technology providers? Consumers? And should it be a federal issue or a state issue? “I believe the onus should be on the automobile manufacturers,” said Joel Kennedy, president of the National Automotive Finance Association, a trade association serving the non-prime auto financing industry. “If they make it easy for a consumer to populate the car with data, they should take responsibility for helping the consumer wipe the car clean of that data.” Charles Henderson, a security expert and Global Managing Partner of the IBM Security X-Force, said automakers will likely do just that in the not-too-distant future. “I expect the auto industry will improve mechanisms to clear out persistent data,” he said. “Why should a third party have to fix the problem?” For now, the data privacy challenge continues to grow. Newer connected vehicles that collect more data will be put on the road. Legacy vehicles will continue to change hands, and personal data will move to every new owner. Auto manufacturers will develop more connected technology that makes driving easier and safer – but captures more personal data.

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Amico suggested dealerships should look at this scenario as an opportunity to set themselves apart from competitors by wiping personal data from their cars – and promoting that fact. Smart dealers, he said, can get ahead of the curve and market that as a competitive advantage over other dealerships that don’t offer the service. “This is a massive problem that hasn’t been addressed,” McCook said. “And we’re barely seeing the tip of the iceberg. “It won’t be a cakewalk to solve it, either. Last year, we had 2 million repos in the U.S. That means 2 million opportunities for personal data to be lost. Who is going to step up to the plate?”

What Can Dealerships Do? Here are some tips from industry experts on minimizing risk from persistent data: • If you buy a vehicle from an auction, ask the auction what steps it has taken to clean data out of the car. Auctions can easily use the manufacturer’s remote access system to reset the vehicle according to its VIN – it takes only a day to do it. • Put a process in place to remove consumers’ personal data. Just as a vehicle is inspected for safety and maintenance issues and reconditioned when it’s taken in, wiping the vehicle of personal data and resetting it back to factory settings should be included on the checklist. • Adopt third-party technology to erase personally identifiable information. • Call the vehicle’s manufacturer directly to gain remote access to erase the data. • Work with consumers. Ask them questions and check vehicles for any type of personal information before accepting them onto your lot. • Become more active politically and ask local and state legislators about enacting laws regarding this issue. n

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8 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022

Electric Vehicles Take Bigger Slice of Automotive Lending in Q4 BY JIM HENRY, WARD’S AUTO

“

The EV share of loan and lease originations in the fourth quarter was about 4.6%, vs. 2.3% in like-2020. Even with the increase, the Tesla brand still dominates the segment.

The electric-vehicle share of auto financing roughly doubled in fourth-quarter 2021, compared with a year earlier, as EV offerings expand among the more mainstream brands and into more product segments, Experian Automotive says. “The share got doubled year-over-year. Of course, that’s with a broader variety of vehicles and a bit more affordable price point,” says Melinda Zabritski, Experian Automotive senior director of automotive financial solutions. The EV share of loan and lease originations in the fourth quarter was about 4.6%, vs. 2.3% in like-2020. Even with the increase, the Tesla brand still dominates the segment, and the average price point remains high for EVs, Zabritski tells Wards. According to Experian, the average loan monthly payment for an EV in the fourth quarter was $744, up slightly from $738 a year ago. However, the trend for the last few years is toward lower payments on EVs. In fourth-quarter 2017, the average monthly payment for an EV was $977. Average lease payments for EVs shows the opposite trend. At only $281 four years ago, lease payments averaged $688 in Q4 2021, almost as much as the overall average loan payment. This probably reflects lower lease incentives, Zabritski says. For the industry as a whole, the average new-vehicle monthly loan payment was $644 in Q4, up from $579 a year ago. “With supply and demand what it is, incentives are kind of not needed,” she says. “Leasing is down overall.” For the overall U.S. market, leasing accounts for 23.8% of new-vehicle originations in the fourth quarter, down from 27.7% a year ago. For EVs, leasing fell to a 27.7% share in Q4, down from 31.8% a year ago, Experian says. Three Tesla models accounted for more than 75% of EV loans and leases in the fourth quarter: the Model 3, at 36.6%; the Model Y at 34.2%; and the Model S, at 5.3%. The Ford Mustang Mach-E, at 6%, and the Volkswagen ID.4, at 3.4%, account for the rest of the Top 5 mostfinanced EVs, Experian says. n MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022 | 9

KEY PRIVATE BANK ECONOMIC PERSPECTIVES:

Is the Economy Over Inflated? Major global central banks have long regarded a two percent inflation target as the guiding principle that drives economic policy. That’s true far and wide, from the Bank of Japan to Sweden’s central bank. And in the United States, former Federal Reserve Chair Ben Bernanke was so committed to a two percent inflation target, he enshrined it in official fed policy in 2012. But a decade later, we live in a world that Bernanke could have never predicted. In 2022, the economy is weathering a global pandemic that is becoming endemic, a military crisis in the Ukraine, soaring fossil fuel prices and an

inflation rate that as of January 2022 stood at seven percent. Of all those factors, an inflation rate that hasn’t been seen since the early 1980s is key to why the Federal Reserve has signaled its plans for a series of interest rate hikes beginning in the spring of 2022. And those hikes are sure to have a distinct economic impact to both consumers and businesses that rely on loans to help them purchase bigticket items like cars and furniture. But how did we get here? And how should businesses respond?

“

The idea is to take the punchbowl away from the party,” Mateyo explains. And the Federal Reserve plans to do just that with a series of interest rate hikes.

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“Two years ago, the [Federal Reserve] felt they had to do all they could to ensure that when we went into lockdown because of COVID the economy would stay face up,” explains Key Private Bank’s Chief Investment Officer George Mateyo. The tactic was stimulus. Interest rates were lowered to zero while money was pumped into the American monetary system. At the same time the federal government was also aggressively directing stimulus to consumers to the tune of trillions of dollars. “So, all of this money showed up in bank accounts of people sitting at home with

“

Human ingenuity points to long-term growth. Yes, things may slow down but there are going to be very positive tailwinds in the long term. So long as your own finances and balance sheets are in order, it’s not a bad time to be thinking long-term.

not much to do,” he adds. “They decided it was time to get a new deck or buy a new barbecue or sofa.” The upshot of the stimulus was that spending took off in the second half of 2020. But as spending increased, companies were also struggling with pandemic labor shortages and shutdowns, again attributable to COVID. There were also shipping delays and supply issues creating a significant mismatch between supply and demand. “That’s a classic economics 101 recipe for inflation,” Mateyo says. Despite the fact the inflationary pressures were building, the Federal Reserve opted to maintain stimulus into 2021. “The idea is to take the punchbowl away from the party,” Mateyo explains. And the Federal Reserve plans to do just that with a series of interest rate hikes. “Interest rates increase the cost of money,” he continues. “As the cost of money goes up people are likely to borrow less. And historically that’s served as a suppressant to growth.” On the surface, rate hikes would seem to be a real barrier for middle market companies that rely on financing to help consumers buy goods. But Mateyo says that’s not necessarily so. For instance, supply chain shortages have caused inventory issues for car dealerships, some of which need to place customers on waiting lists. And for goods like furniture, the wait time for a new sofa has increased significantly. “To some extent, demand might come down, but demand has been so extended that it might be time to catch our breath and see production catch up,” Mateyo notes. “We want to see some normalcy. It’s a tricky balancing act because inflation can tip over to into recession.” Finding balance is not easy. There’s a great deal of uncertainty on a tightrope, which is why forecasts of what Federal Reserve rate might look like vary wildly. At the end of 2021, the prevailing thought was that there would be two or three interest rate increases in 2022. But now, some analysts predict anywhere from four to eight incremental rate hikes over the course of the year.

Importantly, those forecasts came before the Russian incursion into Ukraine, creating even more economic uncertainty as oil prices soar even higher. Add that to global sanctions on a major country and Mateyo says it’s possible that economic activity might slow. “The fog of war has made everyone’s crystal ball cloudy,” he notes. So, what are business owners to do in uncertain times? Mateyo says that in general it’s time to be disciplined with inventory. But beyond that, business owners can also take a long-term view and seek out opportunities. “You could look at acquisitions, or other business lines you might want to start,” he says. “But you need to know that we’ll get through this. We have before. Business can still prosper. “Human ingenuity points to long-term growth,” he continues. “Yes, things may slow down but there are very positive tailwinds that take shape over the long term. So long as your own finances and balance sheets are in order, it’s not a bad time to be thinking long-term.” n Looking for more insights? For more information regarding economic perspectives readers can join a panel moderated by Jeff Wenham, Head of Liquidity and Portfolio Management at KeyBank for a live-streamed discussion on April 21st at 11:00 a.m. PST. Visit key.com/ epwebinar to register. To learn more, contact Ryan Ames: 206-3436852 or Ryan.M.Ames@key.com Banking products and services are offered by KeyBank National Association. Any opinions, projections or recommendations contained herein are subject to change without notice and are not intended as individual investment advice. This material is presented for informational purposes only and should not be construed as individual tax or financial advice. KeyBank does not provide legal advice. Investment products are: NOT FDIC INSURED* NOT BANK GUARANTEED* MAY LOSE VALUE * NOT A DEPOSIT* NOT INSURED BY ANY STATE OR FEDERAL AGENCY ©2022 KeyCorp® All Rights Reserved. KeyBank is Member FDIC. 220304-1491178

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The CARLAWYER

By Eric Johnson, Partner in the law firm of Hudson Cook, LLP, Editor in Chief of CounselorLibrary.com’s Spot Delivery® Here’s our monthly article on selected legal developments we think might interest the auto sales, finance, and leasing world. This month, the developments involve the Federal Trade Commission, Consumer Financial Protection Bureau, Federal Reserve Board, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, Department of Housing and Urban Development, Department of Justice, and Federal Housing Finance Agency. As usual, our article features the “Case(s) of the Month” and our “Compliance Tip.” Note that this column does not offer legal advice. Always check with your lawyer to learn how what we report might apply to you or if you have questions.

them from misrepresenting any material fact while marketing any product or service of any kind, as well as from any further violations of TILA’s disclosure requirements.

FEDERAL DEVELOPMENTS

CFPB Allows Public to Submit Petitions for Rulemaking. On February 16, to broaden access to the agency’s rulemaking process, the CFPB announced that members of the public can now submit petitions for rulemaking directly to the agency. The CFPB states that “[w]hile members of the public have long had the ability to comment on rules and other initiatives, many individuals and small businesses believe that they must hire former government officials, lawyers, or lobbyists in order to be heard by an agency.” The petitions for rulemaking will be posted on public dockets for review and comment.

FTC Bans Marketing Company from Auto Industry. On January 28, the FTC issued an opinion and final order in a case against a marketing company, Traffic Jam Events, LLC, and its owner, finding that the defendants falsely claimed in direct mail advertisements to be affiliated with a government COVID-19 stimulus program. The FTC also determined that the advertisements deceptively stated that consumers had won specific prizes, including large cash prizes, that they could collect if they visited certain car dealerships, which was not the case once they went to claim the prizes. Further, the FTC found that the defendants continued their unlawful conduct despite entering into three prior consent orders with state regulators. In addition to these violations of the FTC Act, the FTC also found that the defendants violated the Truth in Lending Act by failing to satisfy the Act’s disclosure requirements for advertising closed-end credit. The order bans the defendants from advertising, selling, or leasing automobiles for 20 years. The FTC’s order also prohibits

Agencies Release Statement on Establishing Special Purpose Credit Programs. On February 22, the FRB, FDIC, NCUA, OCC, CFPB, HUD, DOJ, and FHFA issued an interagency statement to remind creditors of the ability under the Equal Credit Opportunity Act and Regulation B to establish special purpose credit programs to meet the credit needs of specified classes of persons. The interagency statement calls attention to the special purpose credit options under ECOA and Reg. B. On December 21, 2020, the CFPB issued an advisory opinion on special purpose credit programs to clarify the content that a forprofit organization must include in a written plan that establishes and administers a special purpose credit program under Reg. B. In addition, the advisory opinion clarified the type of research and data that may be appropriate to inform a for-profit organization’s determination to establish a special purpose credit program to benefit a specified class of persons. On December 7, 2021, HUD released guidance concluding that special purpose credit programs

12 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022

instituted in conformity with the ECOA and Reg. B generally do not violate the Fair Housing Act. Accordingly, creditors may consider the use of special purpose credit programs across all types of credit covered by ECOA and Reg. B. FTC Reports on 2021 ECOA Efforts. On February 23, the FTC provided its annual letter to the CFPB summarizing its enforcement actions, research and policy initiatives, and education efforts in 2021 related to the Equal Credit Opportunity Act. CFPB Issues Blog Post on Auto Financing. On February 24, in response to the increasing cost of automobiles and the potential for consumer debt related to auto financing to increase, the CFPB issued a blog post stating its intent to “focus on ensuring a fair, transparent, and competitive auto lending market.” In line with its goal to ensure affordable credit for auto purchases, the CFPB states: “Given the increase in loan amounts, the rising length of loan terms, and the uncertainty around the ongoing economic recovery, we will be closely monitoring lender practices and consumer outcomes. In particular, we continue to evaluate lending structures where lenders seem to rely on high interest rates and fees to profit even when consumers fail. We are also concerned about loan-to-value ratios in the auto loan market.” The CFPB also intends to monitor servicing and collection practices by auto finance companies, including a focus on servicemember protections and technologies used to assist the companies in repossessing vehicles. Finally, the CFPB states that it will focus on ensuring competition in the subprime auto financing market. CFPB Is Concerned About Wrongful Repossessions. On February 28, the CFPB issued a Compliance Bulletin to remind vehicle-secured creditors and their servicers

of the Dodd-Frank Act’s prohibition on engaging in unfair, deceptive, or abusive acts or practices when repossessing consumers’ vehicles. Noting the recent strong demand for used vehicles, the CFPB stated that it is “concerned that these market conditions might create incentives for risky auto repossession practices, since repossessed automobiles can command higher prices when resold.” The CFPB is issuing the bulletin to mitigate the harms from these risks. The bulletin summarizes the UDAAP law and highlights relevant examples of conduct observed during supervisory examinations or enforcement investigations related to repossessions that the CFPB considered to be UDAAPs, including: (1) repossessing vehicles from car owners who made payments sufficient to bring the account current, who entered into a payment plan, or who made promises to pay by a certain date and the date had not passed when the repossession occurred; (2) repossessing vehicles from car owners when the servicer incorrectly noted that the account was delinquent, when servicer representatives failed to cancel repossession orders that had previously been communicated to repossession agents, or when repossession agents failed to confirm that the repossession order was still active prior to repossessing a vehicle; (3) repossessing vehicles subject to the automatic stay in a car owner’s bankruptcy case; (4) repossessing vehicles by failing to provide car owners with accurate information about the amount required to bring their account current; (5) applying payments in a different order than disclosed to car owners, resulting in repossession; (6) charging car owners for unnecessary forceplaced insurance, resulting in additional fees that push car owners into default and repossession; (7) refusing to return car owners’ personal property from repossessed vehicles unless car owners paid a fee; and (8) charging collateral protection insurance after repossession. In the bulletin, the CFPB recommends certain actions that can be taken to prevent such UDAAP violations when repossessing vehicles.

CASE(S) OF THE MONTH Court Compelled Arbitration of Lessee’s Claims that Arose from Advertisements

and Representations that Predated Signing of Lease Agreement Containing Broad Arbitration Clause: A lessee sued his lessor for false advertising, fraudulent concealment, and violation of consumer protection statutes in connection with its advertising and representations made during the negotiation process. The lessor moved to compel arbitration pursuant to an arbitration agreement that the lessee signed as part of the lease transaction. The U.S. District Court for the District of Nebraska granted the motion. The lessee argued that because his claims arose before and during the negotiation process, they were not subject to the arbitration agreement that he signed thereafter. The court found that the broad arbitration agreement, which applied to any claim that “arises out of or relates to your credit application, lease, or condition of this Vehicle, this Lease or any resulting transaction or relationship,” covered the lessee’s claims that he was induced to enter into the lease based on the lessor’s advertisements and/or representations made during the lease negotiation process. The court rejected the lessee’s argument that the arbitration agreement must specifically state that it applies retroactively in order for it to apply to claims that predate the execution of the agreement where his “claims are inextricably linked to the

formation, interpretation, and enforcement of the lease agreement that contains the arbitration clause at issue ... and do not exist independent of that agreement.” See Boehm v. VW Credit, Inc., 2022 U.S. Dist. LEXIS 8744 (D. Neb. January 18, 2022).

COMPLIANCE TIP Last month’s Federal Development regarding the FTC Advisory Opinion on Recovery of Attorneys’ Fees and Costs Under Holder Rule and our Case of the Month on arbitration showcase why a dealer should start using a properly drafted arbitration agreement, if it isn’t already doing so. Although the FTC’s Advisory Opinion is not binding on the courts, a court may find the FTC’s opinion that that Holder Rule does not impose a limit on a consumer’s ability to recover their attorneys’ fees and costs as very persuasive. In addition, the FTC’s advisory opinion could mean more plaintiff ’s cases against your dealership as plaintiff ’s attorneys may now be more willing to bring a claim if their odds of getting their attorneys’ fees and costs paid are better than before. n For information, visit counselorlibrary.com. ©CounselorLibrary.com 2022, all rights reserved. Single publication rights only to the Association. HC# 4883-5290-5483

Auto Dealer/Garage Insurance Specialists * Garage and Automobile Liability * * Dealer Physical Damage * * Garagekeepers * * Work Comp * * Quick Quote Turnaround *

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Your One-Stop Shop for Auto Dealer Insurance MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022 | 13

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14 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022

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MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022 | 15

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1 16 |Adv-MARIADA-3.625x10-021422.indd MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022

2/14/22 5:15 PM

q LEGISLATIVE UPDATE

Rep. Louis Schmitt (R-Blair) introduces House Bill 2372

Modifying Management of Abandoned Vehicles at Auction By Erik A. Ross, Senior Associate, Milliron & Goodman

ERIK A. ROSS, SENIOR ASSOCIATE MILLIRON & GOODMAN Erik Ross brings over 30 years of experience in state government and lobbying to Milliron Goodman. He specializes in state government relations with a focus on transportation, energy, environmental, and public utility issues in one of the most innovative regulatory environments in the country. His duties include lobbying members and staff of the Pennsylvania General Assembly, executive departments, and regulatory agencies on behalf of clients. In addition, he serves as a liaison between clients and state government officials and assists in the drafting or amending of legislative and regulatory proposals. Erik’s public sector experience includes positions as Research Analyst to the Chairman of the Senate Majority Policy Committee and Senate Environmental Resources & Energy Committee; and Legislative Assistant and Executive Assistant to the Pennsylvania Senate Majority Whip Mike Fisher from 1989 to 1993. His duties included management legislative/policy development; drafting legislation, amendments, and correspondence; assisting the Majority Whip on the Senate floor; and assisting the Senate Majority Leader’s staff on caucus-related projects.

State Rep. Louis Schmitt has introduced House Bill 2372, which was referred to the House Transportation Committee, to address the problem that some wholesale vehicle auctions experience where hundreds of vehicles being abandoned at auction by dealers. Licensed wholesale vehicle auctions are a special class of private property owner. They handle thousands of dealership-owned vehicles every week that are bought and sold by licensed vehicle dealers to other vehicle dealers at the wholesale auction. Vehicles are often abandoned by auto dealers. In some cases, it is because they simply go out of business. In other cases, they auction a vehicle for sale with no success. More often, they purchase them at auction and then do not transport them to their dealerships by the deadline. This in turn takes up space where other vehicles could be stored. Dealers are licensed by the State and have a contract with the licensed wholesale vehicle auctions for the sale of their vehicles. House Bill 2372 amends Title 75 (Vehicles), authorizing a wholesale vehicle auction, or salvor, to remove vehicles that have been abandoned by dealers after three business days of the vehicle remaining without consent. It would also authorize the auction to charge and collect storage fees as well as the releasing or recovering costs of the abandoned vehicle. Specifically, the proposed legislation would allow the auction to sell the vehicle after certifying to PennDOT that the vehicle was abandoned and obtaining an abandoned vehicle title. The wholesale vehicle auction shall be reimbursed for the cost of storing, providing notice, obtaining title, and processing the vehicle, while the remaining proceeds of the sale shall be paid to PennDOT and transmitted to the State Treasurer for deposit in the Motor License Fund. It also establishes a removal process in § 7311.3 (c) where the wholesale vehicle auction can use a salvor to remove the vehicle under existing law or, if the auction intends to sell or legally obtain ownership, it establishes a process to do that. Again, when the abandoned vehicle has been transferred to a salvor and the vehicle is subsequently sold at auction: • The salvor shall recover the appropriate costs of towing and storage. • The wholesale vehicle auction shall be reimbursed for the cost of storing, providing notice, obtaining title, and processing related to the vehicle when the additional funds are available as a result of the salvor’s auction. • The remaining proceeds of the sale shall be paid to PennDOT and transmitted to the state Treasurer for deposit in the Motor License Fund. In this way, economic waste is avoided and encourages the dealers not to abandon their vehicles at auction. In addition, licensed auctions entities are entrusted with these vehicles to auction between licensed dealer buyers and dealer sellers. This sale can reduce the loss of funds that come from unpaid storage fees and can potentially combat the cash for clunkers type of waste from older vehicles in which are most abandoned vehicles. n Milliron & Goodman will keep you apprised of any activity related to this bill by the House Transportation Committee. 1 House Bill 2372, https://www.legis.state.pa.us/cfdocs/billInfo/billInfo. cfm?sYear=2021&sInd=0&body=h&type=b&bn=2372 MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022 | 17

AUCTION DIRECTORY PENNSYLVANIA ADESA MERCER 758 Franklin Road, Mercer, PA 16137 724.662.4500 / Fax: 724.662.8716 Friday 9:00 AM Office M-W: 9-4:00; TH: 9-5:00; F: 8-5:00 adesa.com

CORRY AUTO DEALERS EXCHANGE P.O. Box 317, 12141 Route 6 West Corry, PA 16407 814.664.7721 / Fax: 814.664.7724 Thursday 10:00 AM 3 Lanes Dealer Consign, Fleet/Lease corryade.com

ADESA PA I-83 Ex. 28 (Old Ex. 12), 30 Industrial Rd. York, PA 17406 717.266.6611 / Fax: 717.266.7650 Wednesdays 9:00 AM; INOPS 8:30 AM Specialty Sale every 4th Wed 8:30 AM adesa.com

GARDEN SPOT AUTO AUCTION Robert Rd. & Apple St., Ephrata, PA 17522 717.738.7900 / Fax: 717.738.7930 Tuesday 10:00 AM gardenspotautoauction.com

ADESA PITTSBURGH 378 Hunker Waltz Mill Rd. New Stanton, PA 15672 724.925.4700 / Fax: 724.925.4701 Tuesday 9:00 AM pittautoauction.com AMERICA'S AA - HARRISBURG 1100 S. York St., Mechanicsburg, PA 17055 717.697.2222 / Fax: 717.697.2234 Thursday 8:45 AM harrisburgautoauction.com AMERICA’S AA - LANCASTER 1040 Commercial Ave., P.O. Box 406 East Petersburg, PA 17520 717.569.5220 / Fax: 717.569.3109 Weekly Sales Wed. 9:00 AM INOPS 8:30 AM americasautoauction.com AMERICA’S AA - PITTSBURGH 55 E. Buffalo Church Rd. Washington, PA 15301 724.225.1777 / Fax: 724.225.7223 Thursday 12:30 PM americasautoauction.com BLOOMSBURG AUTO AUCTION 25 Ridge Road, Bloomsburg, PA 17815 570.784.2306 Wednesday 10:00 AM bloomaa.com CENTRAL PENNSYLVANIA AA Exit 178 of I-80, Lock Haven, PA 17745 800.248.8026 / Fax: 570.726.7841 Thursday 9:45 AM Office: MTF 8-5:30 W-Th 8-6:00 cpaautoauction.com

GREATER ERIE AUTO AUCTION 7700 Avonia Road, (Exit 16 of I-90 & PA Route 98) Fairview, PA 16415-0916 814.474.3900 / 877.474.GEAA Fax: 814.474.4969 Tuesday 1:45 PM greater-erie.com LEHIGH VALLEY AUTO AUCTION 3880 Lehigh St., Whitehall, PA 18052 610.435.5554 / Fax: 610.435.5557 Wednesday 5:00 PM lehighvalleyautoauction.com MANHEIM KEYSTONE 488 Firehouse Road, Grantville PA 17028 717.469.7900 / Fax: 717.469.2842 Every Monday 11:00 AM manheim.com MANHEIM PENNSYLVANIA 1190 Lancaster Rd., Manheim, PA 17545 717.665.3571 / Fax: 717.665.9265 Exotic Highline Sales every other Thursday - 9:00 AM Every Friday Sale 8:30 AM manheim.com MANHEIM PHILADELPHIA 2280 Bethlehem Pike, Hatfield, PA 19440 215.822.1935 / Fax: 215.822.8140 Tuesday 9:30 AM TRA Sale - Tuesday 12:30 PM Office: M-Th 8:30-5:00; F 8:30-1:00 manheim.com MANHEIM PITTSBURGH AA 21095 Route 19, Cranberry Twp., PA 16066 724.452.5555 / Fax: 724.452.1310 Wednesday 9:00 AM manheim.com

18 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022

NORTH EAST PENNSYLVANIA AA 860 N. Keyser Ave., Scranton, PA 18504 570.207.CARS / Fax: 570.207.1860 Tuesday 10:00 AM nepautoauction.com PERRYOPOLIS AUTO AUCTION Route 51 S. Perryopolis, PA 15473 724.736.4445/ Fax: 724.736.0466 Friday 9:45 AM perryautoauction.com MARYLAND BSC AMERICA/BEL AIR AUTO AUCTION P.O. Box 200, 4805 Philadelphia Rd. Belcamp, MD 21017 410.879.7950 / Fax: 410.893.1515 Thursday 8:30 AM at Clayton Station Thursday 8:00 AM at Bel Air in Belcamp bscamerica.com MANHEIM BALTIMORE-WASHINGTON 7120 Dorsey Run Rd., Elkridge, MD 21075 410.796.8899 / Fax: 410.799.0512 Tuesday Sale, 9:30 AM Tuesday Frontline Sale, 9:00 AM TRA/Salvage, 1:00 PM manheim.com NEW JERSEY ADESA AUCTION OF NEW JERSEY 200 N. Main, Manville, NJ 08835 908.725.2200 / Fax: 908.725.3446 Consignment Sale Thursdays 8:45 AM Topline Sale 9:00 AM monthly Thursdays GM Factory Sale Bi-weekly Tuesdays 10:00 AM adesa.com MANHEIM NEW JERSEY AA 730 Rte. 68, P.O. Box 188 Bordentown, NJ 08505 609.298.3400 / Fax: 609.298.4489 Wednesday 9:00 AM manheim.com NEW YORK ADESA BUFFALO 12200 Main St., Akron, NY 14001 716.542.3300 / Fax: 716.542.3547 Sale Tuesday 9:00 AM Boat & RV Sale 2nd Tuesday Monthly 11:00 AM Ford Factory Tuesday Monthly 9:00 AM Office: M-Tu: 8-5, W: 8-4, Th: 9-4, F: 9-3 ADESA.com/Buffalo

ANNUAL SPONSOR ADESA LONG ISLAND 425 Patchogue Yaphank Rd. Yaphank, NY 11980 631.205.5000 adesa.com/longIsland ADESA SYRACUSE 5930 State Rte. 31, Cicero, NY 13039 315.699.2792 adesa.com/syracuse BUFFALO AUTO AUCTION 5300 Lockport Road Lockport, NY 14094 716.549.4800 deeregunner@hotmail.com MANHEIM ALBANY 459 Route 146, Clifton Park, NY 12065-0440 518.371.7500 jay.waterman@manheim.com manheim.com MANHEIM NEW YORK AA 2000 Dealer Drive, Newburgh, NY 12550 845.567.8400 / Fax: 845.567.8410 Every Thursday 9:00 AM Ford Factory Closed Sale Bi-Weekly 10:00 AM Heavy Truck & Equipment Sale First Thursday of the Month 11:00 AM manheim.com MANHEIM ROCHESTER 20 Cairn Street, Rochester, NY 14611 585.328.2277 sara.fico@coxautoinc.com manheim.com ROCHESTER- SYRACUSE AUTO AUCTION 1826 State Route 414, P.O. Box 129 Waterloo, NY 13165 315.539.5006 sprankie@rsautoauction.com rsautoauction.com STATE LINE AUTO AUCTION 830 Talmadge Hill Rd. S. Waverly, NY 14892 607.565.8151 / Fax: 607.565.8659 GM Financial Open Sale –EVERY Friday, 9:20 AM GM Financial Closed Sales as Scheduled Dealer Consignment Sale –EVERY Friday, 9:20 AM statelineauto.com WEST VIRGINIA MOUNTAIN STATE AUTO AUCTION Route 2, Box 835, Shinnston, WV 26431 304.592.5300 / Fax: 304.592.3510 Monday 10:30 AM Office: 9:00-5:00 mtstateaa.com

Let’s Get to Know Advantage Automotive Analytics Advantage Automotive Analytics is a modern, data analytics firm based in California and serving the domestic automotive finance market. Utilizing stateof-the-art, proprietary GPS technology, backed by sophisticated software and an interactive user platform, Advantage provides auto lenders with an easy-to-use toolkit to protect their finance portfolio and boost their net profits. The platform utilizes both wired, Evo, and 2.0 battery-powered, wireless GPS units, Revo, that not only continually provide collateral location, but also generate massive amounts of data and analytics that help collectors make real-time decisions on open accounts and assists with future funding decisions. The Advantage risk assessment dashboard provides lenders with a high-level and vehicle-specific, granular oversight of their automotive finance portfolio. It’s designed to help prioritize profit obstacles. The smart platform also proactively sends notifications of high-risk situations to further assist in mitigating and preventing losses.

in the marketplace as well as numerous patents. Finance professionals are obviously experts at knowing their own financial needs and expectations. To that end, Advantage provides a variety of options, including, Pay-As-You Go, that enables its clients to determine their upfront capital outlays and fully understand future costs. This robust platform allows its customers to manage multiple GPS devices, regardless of brand, from its dashboard — patented All-Access — as well as VIN Verify, which automatically detects and uploads a vehicles VIN to the client’s database. Advantage also offers customized APIs, instant locate and newly improved Revo 2.0 Enhanced technology. n For more, contact Brandon Horn, Executive Sales Director at (563)580-8169.

Key to Advantage’s success in the marketplace is the company has actively sought customer advice on product improvements and additional features. By listening to the voice of the customer, the Advantage team have led to many firsts

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022 | 19

FEATURE

Support Your Support Teams By Anthony Greenhalgh, Director of Marketing and Sales at Rapid Recon From the age of 16, I have been a guy who grew up in auto dealerships. I’ve held 11 positions over 29 years — 24 working for the same dealer and the last five for a reconditioning company. I’ve held many positions in a dealership, from office clerk to director. When I thought I had experienced it all, I was pleasantly surprised with new challenges every new day. From my dealership experience and observations from my current seat, good processes and good people are the pinnacles of success. I argue these two points here: • Dealerships everywhere miss the mark when it comes to their non-revenueproducing employees • When support teams ask for something, the importance of getting that “ask” handled quickly is much greater than you

Hit the Mark

A successful business is built on a solid foundation: a foundation supported by non-revenue-producing personnel. holding costs until that $80,000 is in your bank.

dealer’s left holding the expense instead of the bank.

Equip for Efficiency

I’m not here to preach about spending less on people or arguing you should save yourself into a bigger net profit. It’s more about efficiency and how dealerships everywhere miss the mark when ignoring or minimizing the value of non-revenueproducing employees to your dealership’s (and your) success.

You have taken an hourly employee off their task. There’s only one of them (AP support), but they support 11 of you, including department heads. That means this holdup is also delaying 11 people because a fiveminute task isn’t getting done, which quickly turns into an hour of inefficiency. I was a department head before I realized I was the problem. Arrogance is expensive, and you can quote me on that. When your support team asks for something, the importance of getting it done quickly is much greater than you.

When your support team asks for something it’s because they need it to complete a more significant task. Holding a payable is just a small part of cutting a check, finalizing a car deal, and getting a vehicle titled. You have a $250 bill on your desk, but it’s holding up $80,000. Plus, your dealer is still covering

I talk efficiency every day, but it’s usually related to service, parts, body shop, and sales. Business office efficiency rarely comes up, but it’s just as vital, if not more so, from a financial standpoint as vehicle holding costs and contracts in transit. Inefficiency here adds up to big money when the

We, literally, have people paid by the minute carrying out tasks that take time. Rather than asking someone to work harder, think about what we can do as department heads to help them work smarter by eliminating things that slow them down. Making minor adjustments can easily justify a $500

I am no stranger to personnel expense. Fifty-two percent of my annual gross as a dealership manager went to personnel, making it the most expensive line on the financial statement.

20 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022

Let’s talk tools, specifically technology hardware. I visit many dealerships, and too often, the business office is stacked with hand-me-down computer equipment plagued with slow, inadequate processors and low memory. That gigantic copy, scan, and print machine you require team members to share is stuck in a corner room away from desks. Reread those last two sentences, and if you don’t cringe, I believe you’re comfortable with wasting money.

investment in hardware and could keep you from having to add that extra headcount. A $10-per-hour-employee that is 10% more efficient will cover your $500 investment in 2.8 months. Two ideas: • Cut down their number of trips around the office by installing a small all-in-one printer, copy, scan machine at each users’ desks. You can purchase these for around $100, and highyield aftermarket replacement toner cartridges are available from Amazon for $30. But remember, some brands have reconfigured their firmware to reject aftermarket cartridges. A multitask machine like described in use at each desk will reduce multiple trips and eliminate the unproductive “walk” and “copier talk” time between team members who huddle there. • Build, buy, or upgrade hardware in computers that exceed the minimum requirements to run your DMS. Have at least two monitors per workstation. Our team members almost always run multiple tools in our business, i.e., CDK, vAuto, Rapid Recon, banking, desking tools, etc. The minimum hardware requirement will let them down the moment they do more than clock in.

Be kind. Let them know you care. A thank you, an occasional treat, and responding positively to someone having a bad day goes a long way. Besides making me feel better because I wanted to be a better guy, subtle acts of kindness made my job easier. But I’m not saying you now have a hall pass to be disingenuous. Your team members aren’t naïve, and they’ll see right through your fake actions. Everyone in the dealership

behaves and performs to the level set by management. A little attention and kindness paid to those rarely in the limelight will, as the great motivational writer and speaker Dale Carnegie taught generations, “how to win friends and influence people.” A successful business is a built on a solid foundation supported by non-revenueproducing personnel. Give them the leadership, communications, efficiency tools, and respect they deserve. n

ORDER YOUR DEALER FORMS FROM MARIADA! » SEE, PAGE 22 MidAtlanticDealerNews-APR2022-PRINT.pdf

3/1/22

10:57 AM

Now that hardware is upgraded and other M efficiency changes made, it’s wise to focus on the softer upgrades that inspire. Y

A Good RX

Respect support people.

I once brought an accounts team member to CMY tears because I was frustrated that she didn’t understand me. I reacted poorly, andK not that she wasn’t capable of understanding, but I wasn’t explaining it in a manner she could understand. I had way more information than she did, and I made her feel inferior when I told her, “it’s not that hard.” It wasn’t that hard for me because I had the knowledge and the right tools. I was expecting her to hit a baseball out of the park with a spaghetti noodle. The problem was me and how I was explaining it. Note: If all your support team is frustrating you, search the mirror for the solution. MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022 | 21

2022 ADVANCED ISSUING MIDATLANTIC IADA AGENT TRAINING COURSES 2022 ADVANCED ISSUING IN PERSON AT THE AGENT TRAINING COURSES FOLLOWING LOCATIONS IN PERSON AT THE Monday, Monday, March March 14, 14, 2022 2022

AMERICA’S AMERICA’S AA AA –– HARRISBURG HARRISBURG FOLLOWING LOCATIONS 1100 S. York St.,1100 Mechanicsburg, PA 17055 • Clint PA Weaver • 717.697.2222 S. York St., Mechanicsburg, 17055

Monday, 14,2022 2022 Monday,March April 25, Monday, April 25, 2022 AMERICA’S AA – HARRISBURG ADESA - PITTSBURGH AA ADESA -Mechanicsburg, PITTSBURGH AAPA 17055 S. York 3781100 Hunker WaltzSt., Mill Rd., New Stanton, PA 15672

378 Hunker Waltz Mill Rd., New Stanton, PA 15672 Carly Bishop• 724.925.4700 Monday, April 25, 2022 Monday, May May 16, 16, 2022 2022 Monday, ADESA - PITTSBURGH AA NORTHEAST PENNSYLVANIA AA NORTHEAST AA 378 Hunker Waltz MillPENNSYLVANIA Rd., New Stanton, PA 15672 Arcaro && Genell Genell Restaurant, Restaurant, 443 443 South South Main Main St., St., Old Old Forge, Forge, PA PA 18518 18518 Arcaro Monday, May 16, 2022 Lisa Cohowicz • 570.650.2781 Monday, June 13, 2022 NORTHEAST PENNSYLVANIA Monday, 13, 2022 MANHEIM June PHILADELPHIA AAAA Arcaro & Genell2280 Restaurant, 443 South Main PA St., Old Forge, PA 18518 MANHEIM PHILADELPHIA AA19440 Bethlehem Pike, Hatfield, 2280 Bethlehem Pike, Hatfield, PA 19440 Monday, June 13,19, 2022 Monday, 2022 CharlesSeptember Polina 215.822.1935 MANHEIM PHILADELPHIA AA GARDEN SPOT AA Monday, September 19, 2022 2280 Pike, Hatfield, PA 19440 RobertBethlehem Rd. GARDEN & Apple St., Ephrata, SPOT AA PA 17522 Robert Rd. & Monday, Apple St., Ephrata, PA 17522 • Kristi • 717.738.7900 September 19, Kohl 2022 PIADA Members: $99 • Non-Members: $129

GARDEN AA PIADA Members: $99 SPOT • chapter Non-Members: Contact PIADA today: $129 Robert Rd. & Apple St., Ephrata, 17522 Contact PIADA chapterPA today: Email Cynthia@piada.org or call 717.238.9002. Email Cynthia@piada.org or call 717.238.9002.

PIADA Members: $99 • Non-Members: $129 COURSE REGISTRATION COURSE REGISTRATION Contact PIADA chapter today: Company ____________________________________________________ CompanyCynthia@piada.org ____________________________________________________ Email or call 717.238.9002. Contact Contact _____________________________________________________ _____________________________________________________

REGISTRATION PIADA  ## _____________________________ PIADA Member? Member?COURSE Yes Yes   No No DIN DIN _____________________________ Company ____________________________________________________ E-mail _______________________________________________ E-mail Address Address _______________________________________________ Contact _____________________________________________________ Business Address Business Address______________________________________________ ______________________________________________ City State_______Zip City______________________________ ______________________________ State_______Zip Code________ Code________ PIADA Member?  Yes  No DIN # _____________________________

MidAtlantic IADA Membership Application

DO IT QUICK! Call 717.238.9002 and Say “I Want to Join!” & we’ll take the info over the phone (M-F 8:30-4:30) Dealership _________________________________________________ Owner/President(s)__________________________________________ DIN #_________________________________ or  Special Member  Corp.

 Partnership

 Sole Proprietorship

 LLC

Number of Employees _______________________________________ Street Address______________________________________________ City __________________________________ State_____ Zip _______ County__________________ Dealership Anniversary (mm/yy)______ E-mail _____________________________________________________ Website____________________________________________________ Ph. (____) ___________________ Fax (____) _____________________ To assist our lobbying effort, your party affiliation is requested.  Democrat  Republican  Independent  Decline to answer PIADA yearly dues are $399.00 and MDIADA & DIADA are $299.00 (which include $60 NIADA dues). You will receive all NIADA benefits including a discount prescription drug card, Used Car Dealer magazine, and dealer advocacy to officials in Washington, D.C. (Contributions or gifts to PIADA PAC are not deductible as charitable donations for Federal tax purposes; however, the $399 dues payments are deductible by members as an ordinary and necessary business expense.) By my signature below, I affirm that: I support the PIADA Code of Ethics and want to strengthen the business and public image of the Independent Automobile Dealer; I request membership in the MARIADA, 1501 North Front Street, Harrisburg, PA 17102, 717.238.9002, Fax (717) 238-3870, www.piada.org, and I authorize PIADA to fax or e-mail important information to me.

Name Name on on Card:_________________________________________________ Card:_________________________________________________

Signature __________________________________________________ My check(s) in the amount of: (Membership Fees are  PA Dealer $399.00 non-refundable.)  MD/DE Dealer $299.00  Plus a voluntary PAC fund contribution to PIADA PAC of $25 or more. (Must be individual check, not a corporate check. Corporate checks for PAC fund contributions are not permitted by PA law.)  Plus a $20 donation to the MidAtlantic Regional IADA Scholarship Fund. Or please charge this amount to my credit card: Card type:  Visa  MasterCard  American Express  Discover

Card Card ## ________________________ ________________________ Security Security Code Code ______ ______ Exp. Exp.Date_____ Date_____

Name on Card ______________________________________________

Signature Signature_____________________________________________________ _____________________________________________________

Card Number ______________________________________________

Phone (____) (____) PhoneAddress (____) ___________________Fax ___________________Fax (____)_____________________ _____________________ E-mail _______________________________________________ Number Attending ______ NumberAddress Attending ______ Business ______________________________________________

City ______________________________ State_______Zip Code________ NAMES NAMES OF OF ATTENDEES: ATTENDEES: Phone (____) ___________________Fax (____) _____________________ ___________________________________________________________ ___________________________________________________________ Number Attending ______ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

NAMES OF ATTENDEES:

Card CardType: Type:  VISA VISA   MasterCard MasterCard   Discover Discover  American American Express Express

___________________________________________________________ ___________________________________________________________ ___________________________________________________________ Card Type:  VISA Fax  MasterCard  Discover  American Express (We’d to Fax (We’d prefer prefer fax) fax) to 717.238.3870 717.238.3870

Security Code ___________ Expiration Date ____________________

Name on Card:_________________________________________________

Signature __________________________________________________

Card # ________________________ Security Code ______ Exp. Date_____ SPECIAL THANKS ANNUAL SPONSORS: SPECIAL THANKS TO TO OUR OUR ANNUAL SPONSORS:

Printed Name _______________________________________________

Signature _____________________________________________________ Fax (We’d prefer fax) to 717.238.3870 Or Mail to: PIADA, 1501 North Front Street, Harrisburg, PA 17102

Date ______________________________________________________

Or Or Mail Mail to: to: PIADA, PIADA, 1501 1501 North North Front Front Street, Street, Harrisburg, Harrisburg, PA PA 17102 17102

SPECIAL THANKS TO OUR ANNUAL SPONSORS:

Received by MARIADA Rep. _____________________________ Date ________________________________________________ OR Mail to: MARIADA, 1501 North Front St., Harrisburg, PA 17102. If using a credit card, you may fax this application to PIADA at 717.238.3870.

22 | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022 20| MIDATLANTIC | JANUARYDEALER 2022 NEWS MIDATLANTIC DEALER NEWS

ONLINE AUTO DEALER SUPPLIES AND SELLING AIDS!

Yippy! It’s Sprin g! ROADT RIP SEASON !

MARYLAND FORMS DEALERS CAN ORDER SECURE FORMS QUANTITY PRICE TOTAL $ DUE Secure Power of Attorney (3 part-50 per package) Secure Dealer Reassignment (1 part-100 per package)

$ 00* _____ 20. $ 00 _____ 20. Total Secure forms order 6% Maryland Sales Tax Shipping TOTAL enclosed for Secure forms

Shipping Cost: 1 – 4 packs = $10.00 5 – 10 packs = $15.00 Over 10 packs – Please call ahead for pricing.

NON-SECURE FORMS

________ $ ________ $ ________ ________ ________ $ ________ $

QUANTITY $MEMBER NON-$MEMBER TOTAL $ DUE

Cash Sales Contracts (100 per pack) Odometer Mileage Statement (100 per pack) FTC Buyers Guide (100 per pack) Check one:  AS IS  IMPLIED Restricted Power of Attorney (100 per pack) Deal Jackets (100 per pack) Test Drive Agreements (100 per pack)

_____ _____ _____

47.00 18.00 $ 00 28. $

94.00 36.00 $ 00 56.

________ ________ $ ________

$ 00 $ _____ $10.00 20. ________ $ 00 $ 00 $ _____ 24. 48. ________ $ 00 $ _____ $28.00 56. ________ Total Non-Secure forms order $ ________ 6% Maryland Sales Tax ________ TOTAL enclosed for Non-Secure forms $ _________ TOTAL AMOUNT DUE $ _________

Dealership ________________________________________________________________________ Dealer # (required) _________________________________________________________________ Member  Yes  No Contact Name ___________________________________________ Email _____________________________________________________________________________ Address __________________________________________________________________________ (FEDEX & UPS WILL NOT DELIVER TO P.O. BOX)

City_______________________________________________State ______Zip _________ Phone ______________________________Fax ______________________________________ Card Type:

 VISA

 MasterCard

 AMEX

Name on Card ___________________________________________________ Exp. Date________ Card Number _____________________________________ Security Code________ Make checks payable to: PIADA or fill out payment information below: Card Type:

 VISA

 MasterCard

 AMEX

 Discover

Name on Card ___________________________________________________ Exp. Date________ Card Number _____________________________________ Security Code________ We cannot process orders until payment is received. Signature ____________________________________________ Date ___________________ For questions you may contact Cynthia Slemons at 717.238.9002 ext. 16 or Cynthia@piada.org.

PENNSYLVANIA FORMS DEALERS CAN ORDER DESCRIPTION QUANTITY MEMBER NON-MEMBER MEMBER EXT NON-M EXT $

“As is” Supplemental Statement Buyers Guide Plastic Holders (50) Buyers Guide Window Form Buyers Guide Window Form (Spanish) Consignment & Sales Agreement Form Deal Jackets Fees Chart (wall mount) Fraud Hotline Poster Installment Sales Contract (100) Interpreter Confirmation of Translation Key Tags (250) Lease Agreements Limited Warranty No Purchase Required Disclosure Notary Receipt Pad Odometer Mileage Statement Power of Attorney Disclosure Forms Rental Agreements Retail Buyer Order Form Secure Power of Attorney Secure Power of Attorney Log Book Temp Tag Log Book Title Release Authorization Used Vehicle Record

_____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____

24.00 $ 00 40. $ 00 20. $ 00 18. $ 00 25. $ 00 30. $ 00 14. $ 00 14. $ 150.00 $ 00 25. $ 00 32. $ 00 78. $ 00 26. $ 00 24. $ 00 15. $ 00 18. $ 00 18. $ 00 32. $ 00 32. $ 00 45. $ 00 15. $ 00 15. $ 00 15. $ 00 15.

_____ _____ _____ _____ _____ _____ _____ _____ _____

48.00 80.00 $ 00 40. $ 00 36. $ 00 50. $ 00 60. $ 00 28. $ 00 28. $ 300.00 $ 00 50. $ 00 64. $ 156.00 $ 00 52. $ 00 48. $ 00 30. $ 00 36. $ 00 36. $ 00 64. $ 00 64. $ 00 45. $ 00 30. $ 00 30. $ 00 30. $ 00 30.

_______ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______

ADP FORMS Customer Delivery Check List Customer Proposal Damage Disclosure Delivery Confirmation Goodwill Repair Acknowledgement Insurance Coverage Acknowledgement Lease Spot Delivery Agreement Notice to Co-Signer Trade-In Appraisal

28.00 28.00 $ 00 28. $ 00 28. $ 00 28. $ 00 28. $ 00 28. $ 00 28. $ 00 28.

$ 56.00 _______ $ _______ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ Subtotal _______ $ _______ 6% Pennsylvania Sales Tax $ _______ $ _______ Shipping $ per pound + Special Shipping $ at cost. Total w/o shipping $_________ Please make checks payable to PIADA, 1501 North Front St., Harrisburg, PA 17102 (call in to receive shipping cost to include in payment) or you may fax orders to 717.238.3870 with credit card information. *All orders MUST be accompanied by a method of payment. *Must provide DIN if applicable.

Dealership ________________________________________________________________________ Contact_______________________________________________Date ________________

FOR INFORMATION ON MEMBERSHIP...

Address __________________________________________________________________________

MIDATLANTIC IADA = PIADA + MDIADA + DEIADA Contact Shannon at 717.238.9002 x 18 Shannon@piada.org www.piada.org • www.mdiada.org • www.deiada.org

City_______________________________________________State ______Zip _________

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Penn sy

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JOIN

Maryland | ia | an antic Reg D

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TODAY!

Phone _____________________Fax ____________________*DIN ___________________ Card Type:

 VISA

 MasterCard

 AMEX

Name on Card ___________________________________________________ Exp. Date________ Card Number _____________________________________ Security Code________ All forms come in packs of 100 unless otherwise noted.

24 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022

HIGHLINE 100 +

UNIT

Wednesday, April 27 After -Sale Event! Lanes 1 & 2

TUESDAY!

13-300 and up & 14-300 and up

Call Inside Sales for Details

Apr 13 |4 |4PM Contact Inside Sales for More Details 717.569.5220 x406

America’s Auto Auction Lancaster

1040 Commercial Ave, East Petersburg, PA 17520 717.569.5220 | www.americasautoauction.com MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022 | 25 Bid Online With www.edgepipeline.com