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M AY 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

THE VALUE & FUTURE OF THE USED CAR DEALER BY ROBERT HOLLENSHEAD LEGISLATIVE UPDATE

Rep. Mary Isaacson Introduces Bills Addressing Theft of Catalytic Converters

NEW STUDY

Why a Dealership’s Online Presence is so Important

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The Future of the Internet & Why it Matters to Dealers

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MIDATLANTIC AUTO DEALERS UNITED 1501 North Front St., Harrisburg, PA 17102

Chip Shortage to Drag into 2022

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

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MAY 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 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 | The Value & Future of the Used Car Dealer The independent used car dealer is the backbone of the auto industry, yesterday, today, and deep into the future. We are the oil that allows the engine of the auto industry to run. 9 | Forming Relationships With Video The best way to form a relationship with a new customer is to get to know them, and let them get to know you. 10 |

New Study Highlights why a Dealership’s Online Presence is so Important Consumers expect to access accurate information on the first page of their search results—not outdated information. “Dealers need to ensure their pre-order process includes a plan for ongoing communication to keep their customers updated and to retail vehicle deposits,” said Digital Air Strike in its report. 17 |

Rep. Mary Isaacson Introduces House Bill 2290 and House Bill 2291- Addressing the Theft of Catalytic Converters State Rep. Mary Isaacson has recently introduced a two-bill package of legislation dealing with the theft of catalytic converters. The first piece of legislation, House Bill 2290, which was referred to the House Judiciary Committee, seeks to address thefts of catalytic converters by adding them to the definition of a “secondary metal.” 19 | The Future of the Internet and Why it Matters to Dealers Where is the internet going in the next 3, 5 and 10 years — and is your dealership ready? 20 | Changes to the Safeguards Rule & How it Applies to Your Dealership The Safeguards Rule is part of the Gramm-Leach-Bliley Act, and it requires financial institutions to protect the information of customers. This rule includes the finance departments of dealerships.

DEPARTMENTS 2 | 2 | 12 |

16 | 18 | 22 | 24 |

Message from the President: Please welcome Maria’s Tag & Title Become a Member The CarLawyer

NIADA Convention Notice Auction Directory Membership Application Order Form for Dealership Supplies (PA & MD)

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 • MAY 2022 | 1

q PRESIDENT’S MESSAGE

Please welcome

Maria’s Tag & Title

GET TO KNOW YOUR MID-ATLANTIC STAFF

PROCESSING DEALS FOR MD, WV, DC, DE, VA & NC! NOAH MELAMED PRESIDENT MIDATLANTIC REGIONAL IADA OWNER, TICKET TO RIDE AUTO SALES FINANCE, LANCASTER, PA

Shannon Becker Associate Executive Director (717) 238-9002 x18 shannon@piada.org Tammy Helman, Title Consultant/ PennDOT Certified Trainer (717) 238-9002 ext. 28 tammy@piada.org Nicole Autry, Dealer Set-Up Unit (717) 317-1966 nicole@piada.org Cynthia Slemons, Membership Specialist (717) 238-9002 x16 cynthia@piada.org

The Association is excited to announce a new partnership with Maria’s Tag & Title. We know how vital it is for your dealership to operate efficiently to maximize profits, which is why we now offer our members a great solution for your out of state retail work. Maria’s Tag & Title is a direct resource for processing your out-of-state deals for vehicles sold to customers residing in Maryland, West Virginia, DC, Delaware, Virginia or North Carolina. Unlike some of the national providers, Maria’s does all the out-of-state title work themselves and rest assured it will be processed accurately! Through their priority program, utilizing technology and entrepreneurial solutions, their team processes thousands of deals per month. All records are digitized and organized by client, so if your file is incomplete, your office will receive a call or email requesting the missing documentation prior to rejecting a deal. Instead of calling an 800 number, your call to Maria’s will connect you with the agent handling your out-of-state deal, many of which are bilingual for your convenience. Dealers may outsource as much or as little as they prefer. Best part…the price! Once enrolled, members pay only $75 per transaction, quite a significant savings from other third-party vendors! For full details, please visit our website at midatlanticautodealersunited.org or call Dawn Auffarth, President of Maria’s Tag & Title directly at (410) 558-2886 or (410) 419-6883. n

Pamela Switalski, Dealer Titles (717) 238-9002 ext. 15 pamela@piada.org Barbara Stake, Online Registration Department (717) 238-9002 x27 barb@piada.org Jessica Lutz, Title Call Center (717) 238-9002 jessica@piada.org Tammy Farmer, Receptionist (717) 238-9002 ext. 10 receptionist@piada.org Heather Levesque, Accounting (717) 238-9002 heather@piada.org

BECOME A MEMBER, ACCESS THOU$ANDS IN BENEFITS! » $20,000 Savings with Dealer Discount Book » Dealer Services & Licensing Assistance » Title Call Center » Online Title & Registration Services » Dealer, Retail, & Salvage Title Processing » Discounted Forms & Supplies

» Messenger Services » National & Local Lobbying for Dealers » Print & Digital Trade Publications » Timely Dealer News Updates » Audit Prep Assistance » NIADA Membership

Discover the power of membership! 717-238-9002 2 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • MAY 2022

the

VALUE & FUTURE “

The independent used car dealer is the backbone of the auto industry, yesterday, today, and deep into the future. We are the oil that allows the engine of the auto industry to run.

4 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • MAY 2022

of the Used Car Dealer BY ROBERT HOLLENSHEAD

The overwhelming majority, like way overwhelming majority of buyers are us, Used Car Dealers. In the case of the largest auctions who are the sellers? By far, Us, Used car dealers. Think about this. If you added up all the units the big names buy and compare it to what we buy it turns out they buy a fraction, we buy the rest (even though we get no respect just like the oil in the engine gets no respect, till there ain’t none).

ROBERT HOLLENSHEAD I think I’ve said this many times in the past but I’m going to say it again. I hope it doesn’t sound corny. The independent used car dealer is the backbone of the auto industry, yesterday, today, and deep into the future. We are the oil that allows the engine of the auto industry to run. When we look at the statistics, the indisputable facts with all the noise that surrounds us, one thing remains chiseled in granite. Without us it all grinds to a halt just like any engine without oil. Let’s take a second to think about why I’m saying this. At any auction, in any marketplace, the overwhelming majority of the time we are the best end user, the buyer, the entities that absorb the inventory. If we were not participating where would these cars go? It’s not to a franchise dealer. Look at who buys at CarMax, Manheim, Adesa, America’s, ACV, Backlot, even Smart Auction, 87% of the time it’s us. After an auction I look at who the buyers are, who the bidders are and break it down.

What would happen to these millions of cars if we disappeared? All the flunked shop cars, the miley cars, the hyper expensive cars down to the trash cans, where would they go? We spend 70-95% of our time (frequently 10-15 hours a day) chasing them. Who else does? Who else would? With all the hype around EV’s and home delivery there’s still going to be a trade. The orphans, the aged, the misfits, are still going to go to some version of a marketplace. We create/generate nearly all the fees that keep all marketplaces alive. We will still be the liquidity that makes them disappear regardless of how new cars are sold. With all the hype around Vana’s this and Max’s that, without us they too evaporate. Even if the franchise model is altered, all we will do to thrive is adapt. So, I guess this leads to the underlying point and the future. We ain’t going away. Ain’t no shot of that happening. We are here to stay. We simply evolve to the circumstances. We will continue to make up for the lack of intelligence/education by out working smart people that have to, to liquidate their assets. I believe there has never been a better time to be in this industry as an independent dealer. If you like freedom, if you like to

live by the wits the maker bestowed on you, and if you love the challenge of only being limited by yourself, what could be better? It don’t mean anything but I love us. We will always be the backbone of the industry. It sounds silly but I love a Used Car Dealer. And last but not least, I love and am thankful to God (or whoever is responsible for creating the used car industry). In closing, I have reached out countless times To the PIADA for advice and help, they have always been there to assist. Not that we have a magical power, but if there is ever anything we can do to help any of you we are a phone call away. My phone number is attached. Don’t expect miracles but I’ll do whatever I can to listen and help. Robert Hollenshead began in the BidNez in October 1972, and has since been selling at Manheim Pa. for 2,500 consecutive weeks. Robert entered the technology development side in 1999. He developed the first platform enabling an instant cash offer for any car, decades before all the versions in the market today. The first national platform was sold by AutoTrader called The Trade-in Marketplace. After 40,000,000 plus offers, all guaranteed by R Hollenshead Auto Sales, he sold to Cox Automotive and is known today as Kelley Blue Book ICO. He went on to buy Galves, the valuation guidebook that has been an industry standard since 1957 and built Accu-Trade, a multi-faceted valuation, market data, condition report, guaranteed product. The Canadian version of AccuTrade is sold today by Trader Canada as Trader ICO. TrueCar under the leadership of Chip Perry invested and continues today to be the basis of TrueCar Trade. After integrating the VINtel EKG into the platform, which is a patent pending industry first he sold AccuTrade and Galves to CARS.com. He believes the fun is just beginning. To reach Robert: (610) 960-6346.

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • MAY 2022 | 5

AUCTION HIGHLIGHT

America’s Auto Auction Lancaster 10th Anniversary Sale!

America’s Auto Auction Lancaster celebrated their 10th Anniversary sale on Wednesday, March 23rd. The auction had 1000+ units and $10,000 in prizes and giveaways! A great time was had by all! Be sure to check out their weekly sales, every Wednesday at 8:30am. Congratulations to Founder, Greg Gehman and the entire staff at America’s Auto Auction Lancaster!

America’s Auto Auction Harrisburg 40th Anniversary Sale!

America’s Auto Auction Harrisburg celebrated their 40th Anniversary sale on Thursday, April 7th. The auction ran 1,500 units, had over $20,000 in prizes and giveaways, including free t-shirts, hats, and lunch! The Association was in attendance along with annual Sponsor Advantage Automotive Analytics. The event was a huge success! Congratulations to GM, Clint Weaver, and the entire staff at America’s Auto Auction Harrisburg! Be sure to check out their weekly sales every Thursday at 8:45am. 6 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • MAY 2022

3880 Lehigh St, Whitehall, Pa 18052 PH: 610-435-5554 - FAX- 610-435-5557 Email: lehighvalleyautauction1@gmal.com

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

media feature

FORMing Relationships With Video The best way to form a relationship with a new customer is to get to know them, and let them get to know you. BY TIM JAMES

As a salesperson, you might think your number one goal is to get shoppers on your lot and sell inventory by telling them how great the newest model is. However, there is a better way to sell cars: form relationships, build trust and go out of your way to help customers.

Another challenge is that most car shoppers aren’t looking for a relationship. They are looking for transparency, speed and a painless shopping experience.

Do you remember an old sales technique known as FORM? When a salesperson struggles to make a connection with a customer, use FORM as a conversation guide. F stands for family/friends, O stands for occupation, R stands for recreation and M stands for motivation.

However, that doesn’t mean they aren’t open to forming a relationship. As interested as a car shopper is in finding the right car, they are equally interested in finding a salesperson that they feel they can trust.

People buy from people they trust, and people trust people they like. People like people who share common interests. The best way to form a relationship with a new customer is to get to know them, and let them get to know you. Real success is more than a series of transactions. Building a book of business requires years of hard work and dedication, and more than anything, it requires the ability to form relationships.

Use Video to Go Above and Beyond One challenge to forming relationships that salespeople have today is that they often don’t have the opportunity to meet a prospect until the very last part of the sales process, when the person has selected a car and may have already figured out financing. Face-to-face time is limited, especially since the pandemic.

This is why it’s so important to use video in the initial lead response. However, don’t just send a quick video response. Set yourself apart by delivering a video experience. Send every lead a response video on a Video Experience landing page that includes your (the salesperson’s) personal introduction video. Tell the car shopper about your FORM (family, occupational experience, what you like to do for recreation and why you are motivated to assist customers in having the best shopping experience possible). Mention sports, clubs and other organizations that you and/or family members are part of. Mention if you are a member of the military or a pet lover. Let the customer know the real “you” so they won’t label you as a salesperson just trying to sell them something.

In addition to the personal introduction video, include a couple of customer testimonial videos for yourself and your dealership. I also recommend including videos of other vehicles that you have in your inventory that might fit the customer’s requirements. Go above and beyond and you will be rewarded. Once the customer is engaged, use livestreaming video calls for conversations and for conducting a live walkaround of the vehicles that the customer is interested in. Remember FORM again during this process. Strike up a conversation involving friends, family, occupation and interests. What is the customer’s motivation for buying a vehicle? Tip: don’t try to jam every single FORM topic into a single conversation. Get to know your customer slowly, or your efforts may seem forced or overbearing. Once a prospect has engaged with you several times via video, they will feel like they know you and that you care about them and their needs. This gives you an instant edge over other salespeople out there. In today’s market all this effort may not be necessary; however, you are not just trying to sell a car, but to create a customer for life! That is one of the main benefits of modern video technology; it can be combined with old-school sales approaches, like FORM, to build relationships and create a better customer experience. n

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • MAY 2022 | 9

FEATURE

New Study Highlights why a Dealership’s Online Presence is so Important By Carina Ockedahl, Canadian Auto Dealer Digital Air Strike released its 9th Annual Automotive Customer Experience Trends study at the 2022 NADA Show in Las Vegas, Nevada, offering dealers, lenders, OEMs and providers information that they can use to improve the vehicle ownership experience. The company said its report offers “compelling insights” on the impact of the vehicle inventory shortage, online interactions that help move the customer journey forward, and the importance of the online and digital communication experience for consumers, along with the platforms that they prefer to use. “The vehicle researching, buying, and ownership processes have changed exponentially since the onset of the COVID pandemic,” said Alexi Venneri, Co-founder and CEO of Digital Air Strike, adding that “the data has consistently proven to be helpful for our dealers and the industry as a whole.” The report shows that a third of consumers felt significantly impacted by the inventory shortage. Of those that were affected, 21% went to a different dealership, 8% asked the dealer to order a new build from the factory, and 21% had to wait for the vehicle they really wanted. Of this particular group, 71% waited up to three months, while 27% waited up to a year, and 50% paid a $500 (or more) deposit. Also worth noting is that 20% of consumers said the dealer did not keep them informed about the status of their vehicle.

And again, among consumers affected by the vehicle inventory issue, 32% did not get their first-choice vehicle, and 17% bought a used vehicle instead of a new one. The study advises dealers to present alternative options to consumers, including new and used vehicle options. Some dealers also offered important information in their communication to consumers about the vehicle delivery time, delivery process, and the car’s features.

Consumers expect to access accurate information on the first page of their search results—not outdated information... “Dealers need to ensure their pre-order process includes a plan for ongoing communication to keep their customers updated and to retail vehicle deposits,” said Digital Air Strike in its report.

Profile with one place to browse reviews, receive their frequently asked questions, see the store’s photos, and find special offers and announcements. There should also be an easy way to contact the dealer on that page.

As for the online environment, some of the main reasons consumers did not contact a dealership when researching their vehicle include a lack of special offers (40%), high prices (35%), a lack of dealership photos (26%), there was no easy way to contact the dealership (11%), bad reviews (8%), and a lack of COVID-19 protocols (3%).

“Online sources continue to be the most dominant resource in reaching consumers when making a purchase decision, while ads on streaming networks are close behind traditional media sources,” reads the report. “Without a solid online presence, consumers are more likely to select another dealership for their purchase or service.”

Consumers expect to access accurate information on the first page of their search results—not outdated information, the report notes, adding that dealerships should have an updated Google Business

The study shows that consumers select dealerships based mainly on online searches and reviews—at record levels. It notes that 93% of consumers that purchase a vehicle (up from 88% in the previous

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year’s study), and 87% of service customers said online review sites helped them select their dealership. Based on consumer rankings of their top source for dealership research and reviews, Google slots number one with 60% (up from the last study), followed by Kelley Blue Book with 17% (down from the last study), Vehicles.com with 17% (down), VehicleGurus with 13% (down), and Autotrader.com with 13% (down). “Because of the inventory shortage, consumers don’t have as much time to research because vehicles are being sold quickly. Eighty-six per cent of sales (down from 93% in the prior study) and 51% of service (down from 74% for the previous study), researched a few days or more

before selecting a dealership,” said Digital Air Strike in its report. On reviews, 58% of consumers said the dealership did not ask them to write an online review about their sales experience, while that percentage jumps to 71% for service. Thirty per cent of service customers said a dealership’s response is the “most important” part of a review. For consumers overall, a four or five star rating can impact their decision when selecting a dealership. It is also worth noting that most reviews written by consumers are positive (81% for sales and 88% for service), and that 58% of consumers find these review sites helpful. Overall, the report lists five key takeaways for dealers to consider:

1. 2. 3. 4. 5.

Engage in online interactions that can improve the customer journey. Communicate with effective and timely messaging. Increase lead conversion and protect your online presence with reviews. Turbocharge your marketing game. Improve your online experience.

Digital Air Strike surveyed more than 2,300 vehicle buyers and more than 2,700 service consumers from transactions conducted over the last six months for its study. These consumers were between the ages of 25-54, a near-divide of male (57%) and female (43%), had no pre-qualification criteria other than those transactions, and they were not predisposed to be online shoppers. n

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • MAY 2022 | 11

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 Department of Justice, Consumer Financial Protection Bureau, and Federal Trade Commission. 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.

FEDERAL DEVELOPMENTS DOJ Settles SCRA Claims Against Credit Union. On March 11, the DOJ announced that it settled allegations against BayPort Credit Union for violating the Servicemembers Civil Relief Act by improperly refusing or failing to lower the interest rates on retail installment sale contracts entered into by servicemembers prior to entering military service to 6% per year and by repossessing servicemembers’ cars without a required court order. The consent order, if approved by the U.S. District Court for the Eastern District of Virginia, requires BayPort to pay approximately $70,000 to the affected servicemembers, pay a $40,000 civil penalty, revise its policies and procedures to prevent future SCRA violations, and provide SCRA training to its employees. Federal Bill Addresses LIBOR and Reporting of Cyber Incidents and Ransom Payments. On March 15, President Biden signed H.R. 2471—the “Consolidated Appropriations Act, 2022”—an omnibus bill that, among other things, allows the Federal Reserve to establish replacement rates for contracts using LIBOR and imposes new requirements on banks and other businesses to report significant cyber incidents and ransom payments to the federal government.

CFPB Updates Examination Procedures to Address Discriminatory Practices. On March 16, the CFPB announced that it updated its examination procedures for evaluating unfair, deceptive, or abusive acts or practices to address discriminatory practices in connection with consumer financial products or services. The updated exam procedures provide that discrimination may satisfy the criteria for unfairness by causing substantial harm to consumers that they cannot reasonably avoid, where that harm is not outweighed by countervailing benefits to consumers or competition. FTC Finalizes Settlement with Online Retailer for Allegedly Blocking Negative Reviews. On March 21, the FTC announced that it finalized an order settling allegations that Fashion Nova, LLC, an online clothing retailer, blocked hundreds of thousands of negative consumer reviews of its products on its website, in violation of the FTC Act. The FTC alleged that Fashion Nova represented that the product reviews on its website accurately reflected the views of all purchasers who submitted reviews of its products, when in fact the company blocked reviews with ratings lower than four stars out of five. The company must pay the FTC a penalty of $4.2 million. CFPB Issues Compliance Bulletin on Impeding Consumer Reviews. On March 22, the CFPB issued Compliance Bulletin 2022-05: Unfair and Deceptive Acts or Practices that Impede Consumer Reviews. The bulletin describes certain business practices related to consumer reviews of products and services that may be unlawful under the Consumer Financial Protection Act. Sections 1031 and 1036 of the CFPA prohibit a covered person or service provider from engaging in an “unfair, deceptive, or abusive act or practice” that is “in connection with any transaction

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

with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service.” The bulletin highlights ways that covered persons or service providers could violate this prohibition by interfering with consumer reviews, including using clauses in form contracts that restrict a consumer from posting reviews, using fake reviews, and suppressing or manipulating negative reviews to trick or confuse consumers. CFPB Extends Deadline for Submitting Comments on “Junk Fees.” The comment deadline for the CFPB’s request for public input on so-called “junk fees” charged in connection with consumer financial products and services has been extended to April 11, 2022.

CASE(S) OF THE MONTH Court Refused to Dismiss Dealership’s Claims Under Unlawful and Unfair Prongs of California’s Unfair Competition Law and Under California’s Unfair Practices Act Against Online Used Car Retailer: A California vehicle dealership sued an online used car retailer for violating California’s Unfair Competition Law, False Advertising Law, and Unfair Practices Act. The defendant is not licensed in California and has no physical location in California, but it advertises throughout the state. The defendant moved to dismiss the complaint, and the U.S. District Court for the Eastern District of California granted the motion in part and denied it in part. First, the court addressed the claim that the defendant violated the unlawful prong of the UCL. An “unlawful” business practice under the UCL is a practice that violates any other law. The plaintiff alleged that the defendant violated the unlawful prong by violating various California statutes regulating used car sales, including by: (1) failing to have a physical dealership in

California; (2) failing to obtain related used car dealership and salesperson licenses; and (3) failing to comply with a number of other California Vehicle Code provisions related to appropriate advertising and display of information in connection with selling used cars. The court found that the plaintiff adequately alleged that the defendant was a “dealer” engaged in the sale of used cars in California. Specifically, the plaintiff alleged that the defendant engaged in “dealership activities and actions” as defined by the California Vehicle Code. Therefore, the court denied the motion to dismiss the claim under the unlawful prong of the UCL. Next, the court addressed the claim that the defendant violated the unfair prong of the UCL. To state a claim under the unfair prong, the court noted that the plaintiff must allege that the defendant’s prices are predatory, i.e., that it sells its cars at a price below its own costs. The plaintiff alleged that by operating as a used car dealer, but not complying with applicable California law, the defendant is undermining fair competition for duly licensed California auto dealers. The plaintiff also alleged that the defendant failed “to pay the overhead costs necessary to run and operate a lawful and licensed auto dealership” and that the failure to pay those costs “caus[ed] injury to lawful competitors.” In addition, the plaintiff alleged that the defendant is “placing vehicles for sale under market value because they do not incur all the necessary costs and expenses of running a bona fide dealership in California.” Because the court found that the plaintiff sufficiently alleged that the defendant is a “dealer” under the California Vehicle Code, it concluded that the plaintiff sufficiently alleged that the defendant is selling cars below its own costs by not paying the required costs to be a “dealer.” Therefore, the court denied the motion to dismiss the claim under the unfair prong of the UCL. The court addressed the claim under the fraudulent prong of the UCL together with the FAL claim. Because the plaintiff failed to allege actual reliance on any misrepresentations made by the defendant, the court dismissed the FAL claim and the claim under the fraudulent prong of the UCL.

Finally, the court addressed the UPA claim. The UPA prohibits any person doing business in the state from selling or using any article or product as a “loss leader.” A “loss leader” refers to any article or product sold at less than cost where: (1) the purpose is to encourage the purchase of other merchandise; (2) the effect is a tendency to mislead purchasers; or (3) the effect is to divert trade from or otherwise injure competitors. Such claims require a showing of the defendant’s wrongful intent to sell articles below cost for the purpose of injuring competitors or destroying competition. Noting that it already found that the plaintiff sufficiently alleged that the defendant was selling cars below cost, the court concluded that there were sufficient allegations showing that the defendant had a wrongful intent to injure competitors or destroy competition. The plaintiff alleged that, based on its public filings, public statements, press releases, and website, the defendant has expressed an intent to sell vehicles in California without compliance with California laws and regulations governing used car sales. Therefore, the court denied the motion to dismiss the UPA claim. See 2022 U.S. Dist. LEXIS 35198 (E.D. Cal. February 23, 2022).

COMPLINCE TIP Our Case of the Month highlights some very interesting issues regarding advertising and marketing into a state in which you’re not licensed and don’t have a physical location. By advertising and marketing to consumers in another state, you may be required under that state’s law to have a physical presence or dealership in that state; required to be licensed as a dealer in the state; and even comply with that state’s laws related to advertising and display of information in connection with selling cars into the state. Things get complicated even more quickly if you deliver a car into the other state. If you’re engaged in advertising, marketing or delivering cars into another state in which you’re not licensed, show your friendly compliance lawyer this article and ask them if you have any exposure. n Eric (ejohnson@hudco.com) is a Partner in the law firm of Hudson Cook, LLP, Editor in Chief of CounselorLibrary.com’s Spot Delivery®, a monthly legal newsletter for auto dealers and a contributing author to the F&I Legal Desk Book. For information, visit www. counselorlibrary.com. ©CounselorLibrary. com 2022, all rights reserved. Single publication rights only to the Association. HC# 4871-4064-2842.

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 • MAY 2022 | 13

LOCATIONS TO SERVE DEALERS

KEYSTONE PENNSYLVAN 488 Firehouse Road Grantville, PA 17028 717-469-7900

| Fax 717-4

Joey Hughes, GM Shirley Kennedy, Office Manager / Dealer S Mondays, 11 AM

THROUGHOUT THE MID-ATLANTIC PENNSYLVANIA 1190 Lancaster Road Manheim, PA 17545

717-665-3571 | Fax 717-6

Joey Hughes, GM Randy Derr, AGM Kevin Gantz, AGM Tim Doyle, AGM Andy Mekulsia, Commercial Accounts Ma Deni Hostsetter, Dealer Serv

Exotic Highline Sales every Thursday at 11 AM, Friday is regular sale stat

NIA

469-2842

Services

PITTSBURGH

BALTIMORE-WASHINGTON

21095 Route 19 Cranberry Twp., PA 16066

7120 Dorsey Run Road Elkridge, MD 21075

724-452-5555

410-796-8899 | Fax 410-799-0512

| Fax 724-452-1310

Tom McDonald, GM Shawn Byers, AGM Zak Hanna, Senior Manager Client Service Justin LaScola, Manager Client Service Dealer Wednesdays, 9 AM TRA Sale Wednesday, 11:30 AM

PHILADELPHIA 2280 Bethlehem Pike Hatfield, PA 19440

665-7521

215-822-1935

| Fax 215-822-8140

Charles Polina, GM Scott Mulligan, AGM Gregg Pachik, Dealer Services Manager Troy Moyer, Commercial Accounts Manager

anager vices other

ting at 9 AM

Tuesdays, 9:30 AM TRA Sale, Tuesday 12 PM

Chad Spearman, GM Audrey England, AGM Steve Soprano, Dealer Sales Manager Tuesdays, 9:30 AM

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q LEGISLATIVE UPDATE

Rep. Mary Isaacson Introduces House Bill 2290 and House Bill 2291- Addressing the Theft of Catalytic Converters By Tyler Burke, Associate, Milliron Goodman Tyler Burke, Associate Milliron Goodman Tyler is currently responsible for providing research, bill analyses, and legislative updates to ensure clients have the most current and accurate information available. Tyler also helps to create and implement grassroots initiatives and draft legislation and amendments with a focus on transportation, healthcare, and education policy. Tyler formerly worked as a paralegal at the law firm of Kepner, Kepner & Corba. He earned a degree in Political Science and Philosophy from Susquehanna University.

State Rep. Mary Isaacson has recently introduced a two-bill package of legislation dealing with the theft of catalytic converters. The first piece of legislation, House Bill 22901, which was referred to the House Judiciary Committee, seeks to address thefts of catalytic converters by adding them to the definition of a “secondary metal.” By adding catalytic converters to the definition of “secondary metal”, the grading of offense would be as follows: • • • •

The second bill in the package, House Bill 22912, which was referred to the House Consumer Affairs Committee, would create a new process for scrap processors or recycling facilities before purchasing a catalytic converter. In addition, it would require scrap processors and recycling facilities to collect additional information for transactions that include a catalytic converter. Below is the additional information required for transactions including catalytic converters: •

WHY WAIT? You can get DEALER TITLES processed ON THE SPOT or within 24 hours!

You can get SALVAGE TITLES processed ON THE SPOT or within 24 hours!

You can get your RETAIL PAPERWORK processed ON THE SPOT or within 24-48 hours! At our offices! M-F: 9am-2pm 1501 North Front Street Harrisburg, PA 717-238-9002

An offense under this section constitutes a misdemeanor of the third degree when the value of the secondary metal unlawfully obtained is less than $50. When the value of the secondary metal unlawfully obtained is $50 or more but less than $200, the offense constitutes a misdemeanor of the second degree. When the value of the secondary metal unlawfully obtained is $200 or more but less than $1,000, the offense constitutes a misdemeanor of the first degree. When the value of the secondary metal unlawfully obtained is $1,000 or more, the offense constitutes a felony of the third degree.

• •

The year, make, model and vehicle identification number of the vehicle from which the catalytic converter was removed. A photograph of the catalytic converter. A photograph of the seller.

House Bill 2291 would also empower the scrap processor or recycling facility to withhold payment to the seller for a period of 48 hours. During those 48 hours, the scrap processor or recycling facility operator shall keep the catalytic converter intact and safe. Knowing that the theft of catalytic converters is an issue of concern for PIADA members, we have been working with the House Judiciary and House Consumer Affairs Committees to have this issue addressed through a joint public hearing or separate committee consideration. Please be assured that we will keep you appraised of any further activity. n Endnotes 1 House Bill 2290 Bill Information - House Bill 2290; Regular Session 2021-2022 - PA General Assembly (state.pa.us) 2 House Bill 2291 Bill Information - House Bill 2291; Regular Session 2021-2022 - PA General Assembly (state.pa.us) MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • MAY 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 • MAY 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

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

The Future of the Internet and Why it Matters to Dealers

MANHEIM ALBANY 459 Route 146, Clifton Park, NY 12065-0440 518.371.7500 jay.waterman@manheim.com manheim.com

Where is the internet going in the next 3, 5 and 10 years — and is your dealership ready?

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

Think back to 2004, the 3G network was just launched and everyone had a Nokia device. There were no iPhones, no Google mobile search, no Facebook and no Android. Fast forward to 2021 and in a blink of an eye, it has all changed. The 5G network is in full swing and mobile devices are multi-dimensional personal entertainment hubs. Consumers have adapted quite easily, even the later generations became tech-savvy to connect and communicate with their children and grandchildren, a technology trickle-up effect. So where is the internet going in the next three, five and 10 years — and is your dealership ready?

MANHEIM ROCHESTER 20 Cairn Street, Rochester, NY 14611 585.328.2277 sara.fico@coxautoinc.com manheim.com

Forget the idea of “mobile-first” — this is an overused cliché that has no meaning to today’s consumer experience. It is about being “beyond mobile-first”; creating experiences across devices and browsers that interact in a native application-like environment.

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

By Jason Silberbergon

Google is leading the way in this development by providing developers with its own coding framework called Angular. Like a chassis of a car, this framework provides companies and developers the ability to build Google-like experiences for consumers. This is what Google wants! They want to control the user experience on the internet and are leading the way. Today, they dictate how pages should load, look and have attribution models to help index pages better (SEO). To get ready for the future, the first step is to look at your website and compare it to applications that you have on your phone; maybe BestBuy, Costco, Amazon, Nordstrom, Macy’s, Expedia, Priceline, etc. See the experiences they are providing their consumers and then look at your desktop and mobile — that’s right — your desktop! The desktop browser experience is going through a renaissance period, and it is about to have a mobile-like environment. No more left-side filters, no more scrolling on product pages, no more pop-up lead forms. This is yesterday. You better be ready for tomorrow, today. n Jason Silberberg is CEO & Co-Founder of Nabthat, a technology company dedicated to building automotive-centric platforms focused on the consumer experience. A seasoned executive in various fields including entertainment, distribution, logistics, digital media, telecommunications, and software, Silberberg has over 15 years of experience developing strategy, business development, policy, and operations for fast-growing companies. He believes the key to any business is the ability to initiate, develop and take ownership of your client’s interests. MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • MAY 2022 | 19

Changes to the Safeguards Rule and How it Applies to Your Dealership By NIADA The Safeguards Rule is part of the GrammLeach-Bliley Act, and it requires financial institutions to protect the information of customers. This rule includes the finance departments of dealerships. The Federal Trade Commission (FTC) updated the Safeguards Rule on October 27, 2021, and the changes will become effective on October 27, 2022. Learning about the updated Safeguards Rule and making the necessary changes now can help you and your dealership avoid substantial Federal penalties and fines. Providing plenty of protection for customer information can also help you attract new and repeat buyers. Here are the five biggest changes to the Safeguards Rule.

BROADER REQUIREMENTS

Before these changes, the Safeguards Rule offered very little detail about the requirements for an effective program to safeguard customer information. The new Safeguards Rule requires financial institutions to encrypt all customer information, whether it’s being transmitted through an online network or being stored in dealership files. The authentication process to access this information must require at least two knowledge factors, possession factors, or inherence factors. A knowledge factor can be a password, a PIN, or the answer to a security question. A possession factor is based on the items you have with you. For example, you might need to enter a one-time password or PIN sent to your smartphone. Inherence factors use biometric characteristics, and they can include facial recognition, iris scanning, or fingerprint recognition. The amended Safeguards Rule applies to any information provided by the 20 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • MAY 2022

consumer, resulting from a consumer transaction, or obtained in connection with a transaction. This includes lists of customers and their contact information that aren’t publicly available. It also applies to internet cookies.

A WRITTEN RISK ASSESSMENT

Dealers must base their information security programs on written risk assessments. Every written risk assessment must have criteria for categorizing and evaluating risks and threats. It must also contain the criteria for assessing the confidentiality, availability, and integrity of customer information; the systems used to store it; and how vulnerable they are to hackers, identity thieves, and other potential threats.

Risk assessments must also include a description of how the risks or threats mentioned will be mitigated and how the institution will implement appropriate safeguards. A QUALIFIED INDIVIDUAL

Dealers and other financial institutions must designate a single qualified individual to supervise, implement, and enforce their information security programs. With just one person in charge, several employees won’t need to coordinate their actions. Keeping track of program rules and changes can become easier as well. The qualified individual can be an employee, contractor, or service provider. The Safeguards Rule doesn’t require any education, experience, or certifications. However, you should choose someone who understands the company’s information system, what data the dealership stores

about customers, and how the finance department works. Most dealers designate a manager as the qualified individual.

REGULAR REPORTS

The qualified individual will need to submit regular reports to senior managers, board members, or executives about data security safeguards. They must report once per year about the overall status of the dealership’s information security program, its compliance with the Safeguards Rule, and any issues related to: Reports should also include recommendations for improvements to the information security program from the qualified individual.

DID YOU KNOW?

MARIADA’S NEW WEBSITE FEATURES A MEMBERS NEWS HUB This portal hosts news and alerts from the MidAtlantic Independent Dealers Association. We provide news and articles for the used auto dealer and automotive industry. Members may log in to unlock the full story and gain access to the information specific to your state. Visit midatlanticautodealersunited.org/news-and-alerts

ORDER YOUR DEALER FORMS FROM MARIADA! MidAtlanticDealerNews-MAY2022-PRINT.pdf » SEE, PAGE 22

4/6/22

8:17 AM

A WRITTEN INCIDENT RESPONSE PLAN

The new Safeguards Rule also requires a written incident response plan to help dealerships and other financial organizations respond promptly to security events and recover from them quickly. Written incident response plans must include: • The goals of the plan • Internal processes and procedures for C responding to a security event • Clear definitions of roles, M responsibilities, and levels of authority Y for everyone who works with customer information CM • Rules for external and internal MY communications and information sharing • Requirements for correcting CY any weaknesses in information systems or CMY controls soon after they’re identified K for • Documentation and reporting rules security events and related responses • Provisions for evaluating and revising the incident response plan after security events and when otherwise needed. Dealerships that collect data from fewer than 5,000 people are exempt from the incident response plan, written risk assessment, and annual reporting requirements. n

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • MAY 2022 | 21

2022 ADVANCED ISSUING MIDATLANTIC IADA AGENTSIGN TRAINING COURSES UP FOR IN PERSON AT THE 2022 ADVANCED FOLLOWING ISSUINGLOCATIONS AGENT Monday, Monday, March March 14, 14, 2022 2022

AMERICA’S HARRISBURG AMERICA’S AA AA ––COURSES HARRISBURG TRAINING 1100 S. York St.,1100 Mechanicsburg, PA 17055 • Clint PA Weaver • 717.697.2222 S. York St., Mechanicsburg, 17055 IN PERSON AT THE Monday, April 25, 2022 Monday, April 25, 2022 ADESA - PITTSBURGH AA ADESA - PITTSBURGH AA FOLLOWING 378 Hunker Waltz Mill Rd., LOCATIONS New Stanton, PA 15672 378 Hunker Waltz Mill Rd., New Stanton, PA 15672 Carly Bishop• 724.925.4700 Monday, May May 16, 16, 2022 2022 Monday, NORTHEAST PENNSYLVANIA AA NORTHEAST PENNSYLVANIA AA Arcaro && Genell Genell Restaurant, Restaurant, 443 443 South South Main Main St., St., Old Old Forge, Forge, PA PA 18518 18518 Arcaro Lisa Cohowicz • 570.650.2781 Monday, June 13, 2022 Monday, 13, 2022 MANHEIM June PHILADELPHIA AA AA19440 2280MANHEIM BethlehemPHILADELPHIA Pike, Hatfield, PA 2280 Bethlehem Pike, Hatfield, PA 19440 Monday, 19, 2022 CharlesSeptember Polina 215.822.1935 GARDEN SPOT AA Monday, September 19, 2022 Robert Rd. GARDEN & Apple St., Ephrata, SPOT AA PA 17522 Robert Rd. & Apple St., Ephrata, PA 17522 • Kristi Kohl • 717.738.7900 PIADA Members: $99 • Non-Members: $129

PIADA Members: $99 • chapter Non-Members: Contact PIADA today: $129 Contact PIADA chapter today: Email Cynthia@piada.org or call 717.238.9002. Email Cynthia@piada.org or call 717.238.9002.

COURSE COURSE REGISTRATION REGISTRATION Company Company____________________________________________________ ____________________________________________________ Contact Contact _____________________________________________________ _____________________________________________________ PIADA PIADA Member? Member?  Yes Yes   No No

DIN DIN ## _____________________________ _____________________________

E-mail E-mail Address Address _______________________________________________ _______________________________________________ Business Business Address Address______________________________________________ ______________________________________________ City City______________________________ ______________________________ State_______Zip State_______Zip Code________ Code________

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

Card Number ______________________________________________

SPECIAL SPECIAL THANKS THANKS TO TO OUR OUR ANNUAL ANNUAL SPONSORS: SPONSORS:

Printed Name _______________________________________________

Phone Phone (____) (____) ___________________Fax ___________________Fax (____) (____)_____________________ _____________________ Number Number Attending Attending ______ ______

NAMES NAMES OF OF ATTENDEES: ATTENDEES: ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ Card CardType: Type:  VISA VISA   MasterCard MasterCard   Discover Discover  American American Express Express

Security Code ___________ Expiration Date ____________________ Signature __________________________________________________ Date ______________________________________________________ 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 • MAY 2022 20| MIDATLANTIC | JANUARYDEALER 2022 NEWS MIDATLANTIC DEALER NEWS

ONLINE AUTO DEALER SUPPLIES AND SELLING AIDS!

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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Phone _____________________Fax ____________________*DIN ___________________ Card Type:

 VISA

 MasterCard

 AMEX

Name on Card ___________________________________________________ Exp. Date________ Card Number _____________________________________ Security Code________

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

All forms come in packs of 100 unless otherwise noted.

America’s Auto Auction Lancaster

Lancaster

May News and Events

SALE EVERY WEDNESDAY STARTING AT 9:00AM INOP LANE 2 AT 8:30AM

NOW 7 Action Packed Lanes!

No Registration Or T/A Fees!

We Offer a WIDE Selection of Vehicles every week to meet every Dealer’s Needs!

HIGHLINE Highline Sale! Tues. May 1oth @ 4pm

America’s Auto Auction Lancaster

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

26 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • MAY 2022