Issuu

The official publication of the Washington State Independent Auto Dealers Association

November | December 2017

Year-End 2017 Looking Back, Leaning Forward

The Ultimate Compliance Checklist Beware Flood Damaged Cars! PLUS...

2017 Full Membership Roster

Outstanding Auctions. Signature Events. DAA Northwest | Spokane, WA

DAA Northwestâ€™s 25th Anniversary Sale, Gala & Fundraiser NOVEMBER 8 - 1 PM | NOVEMBER 9 - 9 AM

DECEMBER 13th - 1 PM DECEMBER 14th - 9 AM Featuring 3000 corporate & dealer vehicles

DAA Seattle | Auburn, WA

2017

FRIDAY | NOVEMBER 10 9:00 AM | 1000 UNITS Friday - December 8 - 9:00 AM Buy to Win Seahawks Tickets and Gear! JOIN US AT DAA NORTHWEST EVERY THURSDAY AT 9:00 AM, AND IN SEATTLE EVERY FRIDAY AT 9:00 AM

Featuring 1000 Cars, Trucks, & SUVs

DAA NORTHWEST | Spokane, WA KCI KANSAS CITY | Kansas City, MO DAA SEATTLE | Auburn, WA mcconkeyauctions.com

SPOKANE, WA daanw.com

AUBURN, WA daaseattle.com

All information subject to change without notice

The official magazine of the

WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION

NOVEMBER | DECEMBER 2017

707 Auburn Way South Auburn, WA 98002 T: 253-735-0267 | F: 253-804-0844 staff@wsiada.com WSIADA.COM Mo Aliabadi, Board President South Tacoma Auto Sales, Inc. mo@southtacomaauto.com Randy Fletcher, President Emeritus In N Out Auto Sales inandoutwa@gmail.com Vacant, Board Vice President Emil Scarsella, Board Treasurer Town & Country Auto Sales e.scarsella@hotmail.com

contents

Vacant, Board Secretary J.T. Curry, Board President Emeritus Motors Northwest jt_curry@motorsnorthwest.com Ken Williamson, Board President Emeritus John’s Auto Mart, LLC johnsautomart@msn.com AJ Hamedian, Chapter President – North Sound Excellent Choice Auto Sales, LLC ahamedian@yahoo.com Rachel Frankel, Chapter President – Vancouver Top Auto Brokers, LLC | topautobrokers.com Daniel Pizzarella, Chapter President – Tri Cities TriCities Auto Remarketing | dpizzarella@gmail.com Vacant, Chapter President – Yakima Vacant, Chapter President – South Sound Brian Corigliano, Chapter President – Spokane Globe Motors | globemotorsusa.com WSIADA STAFF Todd C. Elliott, Executive Director Colette Eilers, Receivables/Payables Michael McGaughy, Spokane Auctions Rick Olson, Member Services Ashlie Seipert, Education Services PRODUCTION EDITOR Sygnifi Networks wsiada@sygnifi.com Copyright 2017 MEMBER

ACH FUNDING

INSTANT APPROVALS DealWRITER™ Fully functional F & I program ● Inventory Management ● Credit report interface ● Blue Book and NADA integration ● Prints all dealer forms ●

Dealer Management System Website interfaces with credit bureau ● Automated decision module ● Dealer inputs deals directly to website ● Payment via electronic funds transfer ● Date & time of payment ●

Tools Technology based Marketing tools Automated Approvals ● Tracking ● Reporting ● Deal status in real time ● ●

Benefits Easy to use 24/7 availability ● Objective decision module ● Based on consumer scorecard ● Powered by Automated decision engine ● ●

THE RESULTS YOU NEED. THE TOOLS TO MAKE IT HAPPEN.

Get the advance you request from us every day, night, or weekend. Receive the approval you want anytime, from anywhere. Never lose another deal. Put our online tools to work for you. Call or logon today. Servicing Washington: 253.839.2600 www.lobelfinancial.com | Training ~ Support: 800.871.8051

2 | the Front Row | wsiada.com | November-December 2017

Building Success Together

ADVERTISER INDEX

PRESIDENT’S MESSAGE

“United We Stand...”

lease thank our sponsors for their generous support by considering their services and mentioning that you saw them here!

Mo Aliabadi, President, South Tacoma Auto

Adesa Seattle . . . . . . . . . . . . . . . . . 6

his axiom has been around for a long time and used by many – from Aesop and Lincoln to Pink Floyd and Tupac; it’s relevant today for Independent auto dealers as we fend off assaults to our industry and to our way of life.

The membership list included in this month’s issue is a reminder that Washington State Independent Auto Dealers Association is the fourth largest in the nation. Our Association has recently amended some of it’s bylaws to make it easier for dealers to get involved at the board level to protect our interests in Olympia. Don’t just be a member, get involved! Call or email to start a conversation of possibility.

AUL . . . . . . . . . . . . . . . . . . . . . . . . . . 5 AutoZone . . . . . . . . . . . . Back Cover Benchmark . . . . . . . . . . . . . . . . . . . 13 Credit Acceptance . . . . . . . . . . . 13 DAA Northwest . . . . . . . Inside Front LeMay, America’s Car Museum . 19 Lobel Financial . . . . . . . . . . . . . . . . 2 Manheim . . . . . . . . . . . . Inside Back Rekdal Hopkins Howard . . . . . . . . 22 Shepard & Shepard Insurance . . 24 Skywerks . . . . . . . . . . . . . . . . . . . . . 20

Proud to be an Independent Auto Dealer; as always, feel free to contact me at 253-208-8090 or mo@southtacomaauto.com.

Service Provider Directory . . . . . 16

Get involved, the world is run by those who show up! As always, feel free to contact me.

Mo Aliabadi (253) 208-8090

mo@southtacomaauto.com

PRODUCT UPDATE With the availability of digital subscriptions, WSIADA will no longer carry print copies of NADA books after 12/31/2017.

TARGET YOUR ADVERTISING DOLLARS! CALL FOR A MEDIA KIT:

253.735.0267

the Front Row | wsiada.com | November-December 2017 |

EXECUTIVE DIRECTOR’S MESSAGE

In this issue, we do a bit of year-in-review.

Events Calendar

We’re thankful for our members, those who joined us this year and those who have been with us, in some cases, for generations. 2018 looks like it will be a good year for our Association, as we continue to develop relationships with Olympia Partners, add new Dealerand Associate-members, and continue to refine our product and service offerings.

Compliance Checklist

Membership & Education

NOV 09................ Auburn HQ

This edition of the Front Row includes several articles worthy of careful review. There are a number of other articles we hope will be enjoyable to review.

DEC 07................. Auburn HQ

Flood Damage

DEC 12..................... Spokane

We ran this article last year. With more than 1.5 million vehicles damaged in the devastating storms in the south, it is important to know what to look for as many of those vehicles make their way north. You want to make sure you check Carfax or Auto Check and include Trade Disclosure form in your sale documentation.

Title Workshops (10am to 1pm)

NOV 16................ Auburn HQ DEC 21................. Auburn HQ

Pre-Licensing Workshops (9am to 4pm)

2018 Calendar Look for a complete 2018 Calendar in the Jan/Feb issue of the Front Row. In the meantime, you can always check for calendar updates on the website: wsaida.com/calendar

This article is a reprint from AutoRemarketing. We hope you will find pieces you can use to make your dealership more effective maintaining compliance.

A simple look at our year-overyear loss of 25 members misses a very important story. We lost 146 members, many who decided to retire or leave the industry. However, we added 118 new members! We’re proud of the business relationships we have with more than 1,200 dealers. And though they may not be members—another 600 dealers buy forms and education services from WSIADA. All told, more than a thousand Washington dealers participated in 2017 WSIADA education programs. Look for expansion of these services in the coming year!

Check out some timely information from the Washington Department of Licensing: wsiada.com/dol-newsletter

4 | the Front Row | wsiada.com | November-December 2017

Calendar

Test your observation skills

In Memoriam

The JAN/FEB issue of the Front Without looking at the cover, Row will have a complete 2018 can you recall what important calendar, but it’s always best person is looking back at you to check online at in the rearview mirror? WSIADA.com/calendar

Member Profile

With Warm Hearts

We hope you enjoy our re-print of an exciting article from Auto Remarketing’s “Best Auctions to Work for” issue. DAA is honored with specific references to Mitzi VanVorhis and Brian McConkey.

The Holidays are right around the corner. On behalf of the staff and Board of the Washington Independent Auto Dealers Association, we wish everyone a safe and happy holiday season.

Looking forward Watch WSIADA.com and future the Front Row for: • • • • •

18 month Editorial Schedule Private dealer social network Dealer alerts Mobile app New Products

Todd C. Elliott, WSIADA

Davood Divsar 1966 - 2017 Davood owned and operated Advanced Auto Sales in Lakewood, WA, and had just joined WSIADA this year. WSIADA joins with family, friends and fellow dealers in offering our sympathies and prayers to Davood’s loved ones as they grieve this beloved husband to Revna and father to Daniel and Darya Celine.

Well-loved minivan with 148,300 miles. We worry about what happens on the road, so you can focus on what happens in the dealership.

AUL Solution: ® Any Year-Any Mileage Vehicle Service Contracts

At AUL, we solve problems. It’s what we do. We believe in ﬁnding solutions that add proﬁtability to your deal, while providing your customers with peace of mind. That’s why for nearly 30 years we’ve worked to bring dealerships like yours customizable Any Year-Any Mileage® VSCs that allow you to meet all your customers’ unique needs.

We customize our plans to ﬁt your dealership’s unique needs by covering almost all makes and models — at any mileage, with no exclusions for wear and tear.

Plus, with dozens of features like same-day claims payments, parts & labor reimbursement, and 24/7 roadside assistance, partnering with AUL is a solution that adds to your bottom line, without adding to your workload. So you can focus on meeting your sales goals, every time.

Learn more today! Contact Benchmark Dealer Services 360.836.5433 or at meetwithus@benchmarkdealer.com weareaulcorp.com the Front Row | wsiada.com | November-December 2017 |

WSIADA

WSIADA PRESENTS...

by the #s

Update all your social media sites simultaneously from a single place, schedule custom posts, attach photos, target your audience and much more!

MEMBERSHIP

wsiada.com/smartsocial

Total Members . . . . . . . . . 684 Dealers. . . . . . . . . . . . . . . 646 Associates. . . . . . . . . . . . . . 38 Lapsed . . . . . . . . . . . . . . . 146

1,000s OF OFF-LEASE AND RENTAL VEHICLES AVAILABLE WITH

New in 2017. . . . . . . . . . . 118 Active Customer Accts. . . 1,200

JUST ONE CLICK Most Popular Products Odometer Reassignment Numbers & Strips

g Lo

License Plate Frames & Inserts Deal Jackets Implied Warranty/Disclaimer Vehicle Purchase Order

Demonstration Permits & Agreements

CONTINUED ON PAGE 8

Lower buy fees CPO-eligible inventory Central processing and post-sale support Extended arbitration with CarsArrive transport ADESA Assurance 30-day guarantee option eligible

Buyers Guides

Blue Cards

.co A S DE

ck cli

ADESA.com/off-lease

6 | the Front Row | wsiada.com | November-December 2017

• • • • •

DEALER ALERT

ue to the horrific flooding from Hurricanes Harvey and Irma, increased numbers of flooddamaged vehicles will be making their way into the used car market, often with no indication of a waterlogged past. As you know, water can cause serious issues with electrical and mechanical systems—issues that may not appear until months after a vehicle has been cleaned up and sold. NIADA National Member Benefit Partner Auto Data Direct, Inc. (ADD) offers access to National Title Information Systems (NMVTIS) Title Check reports, which provide an efficient and cost-effective way to find out if a vehicle’s title contains brands that may affect its value - including flood brands! NMVTIS is a federal database containing automobile information from states, reports from insurers and salvage auctions and will provide the current and historical states of title-letting you know if a vehicle was most recently titled in Texas or Florida. The report includes:

Flood Vehicle Alert!

• Junk, salvage and insurance total loss data • Current state of title • Previous state of title

INTRODUCING

Smart Ofﬁce Rewards™

• Title issue dates • Odometer readings • Current brand(s) • Previous brand(s) • Date the brands were applied (in NMVTIS-compliant states) As an NIADA National Member Benefit Partner, ADD has been in business since 1999 providing cost-effective online access to valuable motor vehicle information that helps dealers and lenders access real-time title, registration, address and lienholder information on a per hit basis with no term contracts, monthly or annual fees. NMVTIS title checks are just $2.50 per search. To learn more visit: add123.com/niada

Now WSIADA Members can purchase all of their ofﬁce supplies at: wsiada.com/SmartOfﬁceRewards

and be sure to enter promo code NIADAMEMBER at sign-up to receive free account activation (a $100 value). Just add $50.00 to your pre-paid account. Questions? Contact ADD customer support at info@add123.com or 866-923-3123. the Front Row | wsiada.com | November-December 2017 |

WSIADA

The Trophy Case

by the #s

EDUCATION

2017 2016

Pre Licensing

339

307

Title Class

269

316

Chapter Attendees 355 Online Education 724 688 Education Fair

120

104

Pa r t n e r s h i p s W e M a i n ta i n Department of Licensing Department of Revenue Attorney General registered lobbyist Washington State Patrol WSADA

Protect your own interests and support the auto industry in Washington State. Join WSIADA or renew your membership today! See enrollment form on page 23. 8 | the Front Row | wsiada.com | November-December 2017

Get your plate frames and inserts from WSIADA!

YOUR logo, YOUR style Competitive Pricing Support WSIADA

Get started today in the online store at www.wsiada.com or call (253) 735-0267.

Warning Signs

of Flood-Damaged Vehicles

BY AUTO REMARKETING STAFF

orth Carolina cresting at record levels, Hurricane Matthew (2016) has floodwaters rising throughout the Southeast, wreaking havoc in communities, damaging homes, businesses and vehicles. With the American Red Cross’ previous announcement that this year’s flooding in Louisiana was the worst U.S. disaster since Hurricane Sandy in 2013, many property owners are concerned that Hurricane Matthew will further compound the issue of flood-damaged vehicles potentially going down the lanes or ending up in inventory. “It’s important for used-car shoppers to know how to spot flood damage no matter where they live, because these cars can end up on a dealer lot anywhere, especially this year,” said Alliance Inspection Management (AiM) regional director Carl Sullivan, who has more than 32 years of vehicle inspection experience. “A car that’s been in a flood, with the engine submerged for any length of time, will never be the same.” Many states issue a flood or salvage title to a vehicle that has been submerged or flood-damaged, information which can be found on a vehicle history report. However, some sellers may try to unload their

vehicle before a flood or salvage title appears on a vehicle’s history report. To combat this possibility, Sullivan offered these warning signs to help identify flood damage in a vehicle: 1. A musty odor in the vehicle, which may be from moldy carpeting or padding. If possible, pull up the carpeting to see how far water may have risen in the vehicle, and also if any moisture remains 2. Mud in the seat belt tracks or seat belt tensioners 3. Water or condensation in the headlights or taillights. Sullivan notes this could also be due to an accident, but water in these areas could also be a tip-off to floodrelated problems 4. Water in the spare tire well in a vehicle’s trunk. “If we see water in the spare tire well, it leads us to look a little further,” said Sullivan 5. A sagging headliner in the interior, particularly on a late-model vehicle 6. Look under the seats. “I found two fish under a back seat once,” said Sullivan, who was inspecting cars in Florida at the time. “That was a pretty sure sign the car had been flooded.” 7. Corrosion in the vehicle’s undercarriage, such as on brake lines or around the fuel tank. When corrosion appears near the top of the springs or shock towers are corroded, these are signs of floodrelated damage.

“A car’s engine, electronics, fuel system, airbags and brakes are all extremely susceptible to flood water,” Sullivan said. “It’s extremely important to find any water damage before you invest your money in a used car, and a professional inspection will find flood damage no matter how a seller tries to hide it.” AiM and its team of 1200-plus fulltime inspectors review vehicles throughout the U.S., providing detailed condition reports for clients ranging from consumers, dealers and auctions to manufacturers. AiM’s independent, 150-point inspection can identify problems on vehicles for buyers and sellers. The company has instructed its inspectors to pay particular attention to flood damage due to this year’s severe weather.

EDITOR’S NOTE: In light of the current year’s hurricane season, we are reprinting this article from the Nov/Dec 2016 edition of the Front Row magazine. ~ Todd Elliott

the Front Row | wsiada.com | November-December 2017 |

MV: Our entire management team is committed to servant leadership. We have read and studied the work of Robert Greenleaf, who believed that “the servant-leader is servant first.” Supporting our teams in this way means listening to concerns, understanding with empathy, having foresight, being goal-oriented and helping others to grow and succeed. Leading in a way that helps our team members experience personal growth is positive, rewarding and fun. It also contributes directly to the accomplishment of our auction’s vital initiatives. AR: What are some ways you, as a manager, try to boost morale on your team?

uto Remarketing’s Best Auctions to Work For, which is sponsored by CARS Recon, is a free workplace study for the auto auction industry that recognizes the best auto auctions to work for on an unranked basis. Among this year’s honorees was our own DAA Northwest.

Mitzi VanVoorhis

Vice President of Marketing, McConkey Auction Group (DAA Northwest) Auto Remarketing: What makes your auction stand out in terms of being a great place to work? Mitzi VanVoorhis: There’s a very strong culture of caring at DAA Northwest that starts at the top. When Bob McConkey and Greg Mahugh opened DAA’s doors in 1992, a top priority was to ensure their employees had health insurance coverage. As soon as they were able, they implemented it along with many other benefits. Today—25 years later—that culture of caring still remains strong throughout the organization. The people here genuinely care about our customers; we enjoy spending time with them, and we truly want to be partners who contribute to their success. Our employees also care deeply about the greater community, donating our time and funds to support at-risk elementary school students, individuals recovering from addictions and more.

AR: How does having a positive, enjoyable workplace environment impact the bottom line? Why is it good for business? MV: One of our drivers told me years ago that our customers will only be as happy as our employees. I believe he was correct. DAA Northwest’s core values are integrity, excellence, professionalism and fun. Every employee learns about these values during the orientation process, and we are reminded of them frequently. We strive to live by them, and in doing so, we create positive experiences for our customers. The resulting long-standing relationships contribute to a strong bottom line. AR: When it comes to managing your team, what is priority No. 1?

10 | the Front Row | wsiada.com | November-December 2017

MV: Taking time to do the servant leadership elements listed above goes a long way toward boosting morale. Sitting down with a team member, asking how they’re doing, and focusing only on them as they answer is important. My cell phone, email and other distractions go unchecked. This also holds true for conducting annual performance appraisals. Having fun together is another way to give morale a boost. Our marketing team goes off-site once a quarter for a vision-casting, brainstorming session. Although we are working, we are having fun together as we recharge our creative batteries. And last but certainly not least is saying “thank you.” Acknowledging a team member’s efforts, thanking them and saying “great job” lets them know they are truly appreciated.

©2017 Auto Remarketing Magazine. Reprinted by permission (edited for length). For a national list of all honorees, please visit: autoremarketing.com/ wholesale/2017-best-auto-auctions-work Teaming with the Best Companies Group (BCG) in Pennsylvania, Auto Remarketing, underwrites the study. BCG assesses those auctions choosing to participate and develops metrics and standards based on that data to determine which auctions are to be named to the list.

AUCTION LISTINGS For a current calendar view, visit WSIADA.com and select “Calendar” from the top navigation menu. Adesa | adesa.com/seattle Tuesday: Consignment 9:30AM

Brian McConkey

Alternate Tuesday: Specialty 8:30AM

Operations Manager, DAA Seattle

Thursday Night: InOp Sale 4:45PM

Auto Remarketing: What makes your auction stand out in terms of being a great place to work?

Adesa | Portland adesa.com/portland

Brian McConkey: DAA Seattle is a great place to work because we have leadership that genuinely cares and prides itself on being a great place work. It is impossible to work for DAA Seattle and ignore the culture that has been intentionally created and continuously invested in. That culture is created through big events like company BBQs and large group games, but more importantly, it is created in countless seemingly small individual conversations where people’s voices matter and are respected. Everyone here understands that it is worth the time to listen, regardless of who is talking. Everyone understands that individual’s stories matter and are valuable. This is about understanding people, but it’s also about taking their feedback seriously and implementing their ideas for change. AR: How does having a positive, enjoyable workplace environment impact the bottom line? Why is it good for business? BM: Having a strong and healthy culture is good in so many ways. We have never tried to measure the impact it has on our bottom line, but we know it is part of how we define ourselves, and we’re very proud of it. We spend a lot of money on discretionary benefits, and those things make a difference to our employees. Our culture is our primary differentiator in the market. It isn’t just our employees that notice the difference. We hear feedback from customers all the time about our employee’s attitudes and the culture of DAA Seattle. The impact of our

culture on our customers is very real, and the impact to our bottom line in that regard is massive. AR: When it comes to managing your team, what is priority No. 1? BM: For me though, buy-in is the most important. A team of people who understand what it is we are all trying to accomplish, who appreciate and respect their co-workers and who care about the success of DAA Seattle is going to get the job done well. When everyone buys into the same mission, there is going to be strong teamwork and dedication to the job and to each other. Buy-in creates a culture where people are willing to do whatever they can to help whether it fits their job description. “That’s not my job” are words you won’t here at DAA Seattle. AR: What are some ways you, as a manager, try to boost morale on your team? BM: Our managers provide feedback often and honestly in three areas: what they are doing well, what they can improve, and what is expected of them. Employees who know what they are doing well and are frequently receiving that positive feedback are going to be happier and more confident in their work. Those who know what they can improve on are going to continue to grow and challenge themselves. And those who know what is expected of them will know what it takes to succeed and know that they are being treated fairly. Providing frequent and good feedback is one of our keys to good leadership and management.

Thursday: Consult website

Copart | copart.com Times vary: Consult website

DAA | Seattle | daanw.com Friday: Dealer and Fleet/Lease 9:00AM Alternate Friday: Heavy Metal* 9:00AM (Lane 8) Monthly GSA Public Auctions: 1:00pm as scheduled” *Mechanically-challenged/cosmetically damaged/non-running inventory

DAA | Northwest | daanw.com Weekly auctions: Thursdays at 9:00am; Monthly promotional event auctions: Wednesday at 2pm & Thursday at 9:00am Monthly MotorSports auctions: Thursdays at 11:00am (Lane 8) Monthly RV auctions: 11:00am (Lane 8); Heavy Metal auctions: 8:30am as scheduled (Lane 8); NOTE: MotorSports, RV and Heavy Metal auction dates can be found at daanwmotorsports.com

Ehli Auto Auctions | ehliauctions.com Last weekend of every month.

Kaman | kamanauctions.com Thursday: Noon

Manheim | Seattle manheim.com/locations/SSAA/events Monday: OVE Event Sales Tuesday: Alternate weeks Ford Factory (Closed sale) - 10:00am; Crossborder Mobile Sale - 1:00pm Wednesday: General Sale Weekly 9:00am All sale dates and times are subject to change. Please verify with the Auction or manheim.com.

Manheim | Portland manheim.com/locations/PAA/events Tuesday: Open Sale: 9:00AM

the Front Row | wsiada.com | November-December 2017 |

ASSOCIATE MEMBER SPOTLIGHT

Mc Conkey Auction Group (DAA) A Rich Auction History

Bob McConkey, Sr. on the stand as Bob McConkey, Jr. auctioneers — 1983

1988

Gregg Boswell purchases Steve Boswell’s P&S stock, partnering with Lloyd and Pam Wall.

2007

1992

2008

Dealers Auto Auction of Spokane (DAA Spokane) founded by Bob McConkey and Greg Mahugh in Spokane, Washington.

South Seattle Auto Auction, circa 1954

1954

South Seattle Auto Auction founded by Bob McConkey, Sr. and partners in Seattle, Washington.

1995

1985

McConkey family sells South Seattle Auto Auction to GE Capital. Bob McConkey Jr. moves to Los Angeles, serving as General Manager of Southern California Auto Auction. In three years’ time and under Bob’s leadership, the auction doubles its size and becomes the largest wholesale auto auction in the world. Greg Mahugh, Bob’s friend and co-worker at South Seattle, is retained by GE Capital and manages South Seattle Auto Auction.

2009 2011

P&S Auto Auction founded in Elwood, Kansas by Poodle Landes and Steve Boswell. Lloyd and Pam Wall purchase Poodle Landes’ P&S Auto Auction stock, partnering with Steve Boswell.

Kansas Auto Auction moves from Elwood, Kansas to its current facility in Kansas City, Missouri.

Kansas Auto Auction DAA Spokane rebrands as Kansas purchases Tri-Cities Auto City Independent Auto Auction (KCI Auction of Pasco, Washington. Doug Kansas City). Bob McConkey serves Doll joins P&S Auto Auction. as President and Chairman of the National Auto Auction Association.

1978 1979

Bob McConkey becomes co-owner of Kansas Auto Auction, together with Doug Doll and Gregg Boswell.

EPI El Paso founded by Bob McConkey and Greg Mahugh.

DAA Spokane’s new facility – 1996

1996

DAA Spokane builds and moves into its current facility.

2000

DAA Seattle’s inaugural sale – May 2013

DAA Spokane rebrands as DAA Northwest DAA Seattle founded in response to a growing, vital by Bob McConkey and marketplace. Tri-Cities Auto Auction Greg Mahugh. sells to Copart. Doug Doll and Gregg Boswell become sole owners of P&S EPI El Paso sells to Auto Auction. XLerate Group. Bob McConkey and Doug Doll are sole P&S Auto Auction partners of KCI Kansas City. rebrands as Kansas Auto Auction.

2013 2016

2002

12 | the Front Row | wsiada.com | November-December 2017

Washington State Independent Auto Dealers Association

Membership Benefits • Auction discount cards... a $4,700 value! • Dealer advocacy • Dealer hotline • 10% off most WSIADA services and products • Legislative updates • Legal support program • Convenient billing • Regional continuing education opportunities • Subscription to the Front Row magazine Protect your own interests and support the auto industry in Washington State. Join WSIADA or renew your membership today! See enrollment form on page 23. the Front Row | wsiada.com | November-December 2017 |

WSIADA Membership In this edition, weâ€™re listing ALL WSIADA MEMBERS, coded by renewal status. KEY: Current Member (black) | New Member (green) | Renewal Due Nov/Dec (red) | Lifetime Member (blue) First National Fleet and Lease, Inc 1 Star Motors, Inc Auto Sales Consultants, LLC Camping World RV Sales Crosspointe Autoplex First Union Auto, LLC 1st Auto Service Auto Sales Unlimited, LLC Cannon Tire Auto and Mobile Home Sales, LLC Crown Auto Sales Fleet Lease Exchange, LLC 3 Six 0 Motorsports LLC Auto Shoppers, LLC Capital Cars Sales and Service LLC Crown Hill Automotive Flip It Auto 360 Auto Sales Auto Solution Car Chasers LLC CTM Unlimited Auctions LLC Fox Used Auto's LLC 4-H Auto Sales LLC Autobybun Inc Car Club, Inc Curbside Motors.com Foxfire, Inc 405 Motors Automotive Distinctions, LLC Car Connection D Nichols, Inc Frank's Auto Sales 507 Motorsports Automotive Specialties Auto Sales, Inc Car Craft Auto Sales, Inc D&M Auto Sales Freeway Trailer Sales, Inc 9th St. Auto, Inc Automotor Car Emporium of Spokane D&M Motors & Towing Friesen Motorsports A & A Auto Wreckers Autoplex Motors Car Link Used Auto Sales D&S Auto LLC Funke's Auto Renovation & Auto Sales A Auto Sales Autos Only Burien Auto Sales Car Mart Dave Barcelon's Truck Town, Ltd G&J Motorworks A C Auto Sales Autos Only Smokey Point Car Trek II, Inc Dave Barnier Auto Sales Garcia's Auto Sales A Pro Automotive Autostars Motor Group, Inc. Car Trends II, LLC Dave Chapman Auto Sales Garza's Auto Repair A-Plus Auto Sales Autotrack Car Zone, LLC Dave Martin Family Auto Sales, LLC Gene Pankey Motor Company, Inc Absolute Mobility Center Autowerx Car-Dawgs Dave's Auto Gene's Auto and Truck Sales Access Mobility Systems AV Auto Sales Carhop Davenport Motor Company German Auto Brokers Adam Car Sales Inc Avila's Auto Sales, Inc Carmall Auto Sales David Thomas German Auto Services, L.L.C. Adams Auto Sales B & B Auto Repair & Sales Carmax Deejay, LLC Global Elite Motors Adams Garage B & B Enterprises, Inc Carmona Auto Sales Del Sol Auto Sales Globe Motors Advance Auto Sales Carpapapa Auto Group LLC Del Toro Auto Sales Baker Auto Sales GMA of Everett Affordable Auto Liquidators, LLC Carr Auto Group, Inc Destination Harley Davidson Ball Auto Sales & Service, Inc. God Fearing Brothers Ltd Affordable Auto Rental & Sales, LLC Baochang Wang Cars Northwest Dick Hannah Gold Key Motors Affordable Used Cars & Trucks Cars R Us Dick Vlist Motors, Inc Bara International Solution LLC Good Guys Cars and Trucks Agri-Fix, LLC Carson Cars Inc Direct Auto Sales Bart's Auto Den, Inc. Goodfella's Motor Company Aguila Used Car & Truck Sales Carworx Auto Sales Don Jose Auto Sales, LLP Basin Auto Sales, Inc Grand Auto Sales Airport Auto RV Pawn & Sales Cascade Equipment Sales Down River Auto LLC Bayside Auto Sales Grand Sport Motors AK Motors, LLC Cascade Trader Inc. Drager's International, Inc Bayview Motor Club, LLC Grandstand Auto Sales All American Classics, Inc Cats Exotics, Inc Drive Auto Center BBL Auto Sales Gray Motors, Inc All American Motors CB Auto Financing, Inc. Drive Change Beetlesmith's Valley Auto Service GT Auto Sales All Pro Auto Sales LLC Cedardale Truck & Trailer Sales, LLC DSC Motors, Inc Belfair Auto Sales H & H Motors Inc All Recovery Services of Washington LLC Central Leasing, Inc Duffy's Auto Brokerage LLC Bellingham Pawnshop, LLC Hall Motor Group All Right Auto Sales Central Washington RV DV Motors LLC Bellingham Public Auto Auction Hall's Auto Sales Allwest Auto Remarketing Centralia Auction Dynasty Auto Sales Bellus Motors LLC Halterman's RV Allyn's Specialty Cars Chad Chambers Auto Sales E Z Auto Sales LLC Best Auto Parts, Inc Halvorson Motors Alpine Haus Marina Championship Motors E-Z Auto Buy Inc Best Buy Auto Sales Harding Motor Company Always Affordable Auto LLC Chandler Auto Sales E-Z Buy Motors, Inc Best Deals Inc Harper's Auto Sales LLC Ameda Auto Sales Inc Checkered Flag Motors E-Z Credit Auto Sales Bidadoo Auctions Harrington Machinery Co., Inc. Anacortes Auto Sales LLC Choice Auto Group Eastlake Auto Brokers Big Boy's Toys Auto Sales, Inc Haven Street Motors Annie's RV's LLC Christian Carpenter Auto Center, Inc Eastside Advanced Auto, LLC Big Toe Auto Salvage, Inc HCM Apex ASAE Auto Sales International Bill Harris Used Cars, Inc Chuck Yarbro Autioneers Eastside Harley-Davidson Heaverlo Auctions Apker's Classic Cars City Motors of Yakima Easy Auto Buy, LLC Binford Metals, LLC Heaverlo NW, Inc APX Auto Brokers, LLC Clarkston Auto Sales, Inc EJ's Cruisin' Classics LLC BJ Auto Sales, Inc HG Auto Sales LLC Archibald's, Inc. Class 8 Trucks, Inc Eldon Robbins Auto Sales, Inc BJ's Used Cars High Mountain Horsepower Areli Motors LLC Classic Car Addiction Elite 1 Auto Sales Booker Auction Company High Road Auto Sales Armadillo Auto Sales Classy Chassies Fine Used Cars Elite Auto Sales Bowen Auto Highland Auto Aromax Auto Sales Clean Machine Auto Detail Elite Auto Source, LLC Boyko Motors LLC Hill's Auto & RV, LLC Arrotta's Auto Max & RV, LLC Clearwater Auto Sales Elliott Bay Auto Brokers Brian Harris Used Cars HJR Equipment & Vehicles, LLC Art Kuzma Motors, Inc Emerald City Harley Davidson Brooks Biddle Chevrolet-Suzuki, Inc Clickit Auto & RV Sales Honda Auto Center of Bellevue ASC Sales Cliff's Cycle Center, Inc Emerald Valley Auto Sales Bruce Cox Imports, Inc Hopkins Automotive Attwood Auto Wholesale Inc. Coastal RV & Auto Sales Engels Auto Sales Bruce Kirkham's Auto World, LLC Hot Rod Alley Inc Auburn Auto Exchange Cobalt Truck Equipment Erickson Tank & Pump LLC Bryant Motors, Inc. Hot Rod Hunters Auburn Car Corner Cochrane Auto Ranch European Motors Corp Bryson Sales & Service of Washington, Inc House of Hybrids Auburn Discount Auto Sales Collegiate Motorsports Evergreen Auto Sales Budget Auto Sales Hudson Auto Center of Bremerton Auburn Speed, LLC Columbia Auto Center Evergreen Sales And Lease, Inc Budget Rent-A-Car Port Angeles I-5 Motors Auburn Way Autos Common Sense Motors Excalibur Auto Group Inc Bulldog Sales and Service I-5 Toyota Auburn-Kent Valley RV Community First Auto Centers Excellent Choice Auto Sales Bunce Rental, Inc Impact Auto Sales, LLC Aurora Classic Coaches, LLC Commuters, LLC Expo Auto LLC Burkett's Auto Sales Import Auto Sales Austin's Pro/Max Auto & Truck Sales Buttera Motors, Inc Compass Point Auto Sales, LLC Extreme Auto Sales, Inc In and Out Auto Sales, LLC Auto Buyers Inc Complete Auto Brokers Farm & Home Supply, Inc Buy Here Pay Here, Inc Inca Auto Sales, Inc Auto Credit Complete Automotive, Inc Farrell's Sales C & V Auto Sales Independence Auto Center Auto Exchange Consignment Sales & Lease Federal Way Auto Sales C and R Car Sales Inland Sales & Service Auto Max USA Consumer Auto Liquidators Ferrari Maserati of Seattle C.W. Classic Cars Insurance Auto Auctions, Inc Auto Outlet of Tacoma Home of The Car Guys Cool Cars LLC Fife Auto Repair & Sales Calidad Autos Integrity Auto Center No 1 LLC Auto Place, Inc Fife RV Center, Inc Calligan Transportation Services Inc Copart Auto Auction Auto Plaza Sales/Leasing Corn Motors Financial Consultants International, IncIntegrity Auto Sales LLC Cameron Motors Iron Technics Enterprises Auto Quest, Inc Country Motorhomes First National Autos Campbell's Auto Sales

14 | the Front Row | wsiada.com | November-December 2017

WSIADA Membership Please let us know if weâ€™ve misplaced or mislabeled your listing so we can correct our records immeidately. KEY: Current Member (black) | New Member (green) | Renewal Due Nov/Dec (red) | Lifetime Member (blue)

J & H Auto Sales Maxx Autos Plus Pacific Highway Sales LLC Sabeti Motors, LLC Totem Lake Auto Sales J & M Auto Sales, Inc MC Euro, LLC Pacific Point Auto Sales Salvagebid LLC Town & Country Auto Sales J & R Auto, LLC McCord's Vancouver Auto Center Paisano's Chevrolane Auto Sales Sam's Auto Sales TRED J&R Auto Sports LLC McKenna Motors Palomino's Automotive, Inc Sea-Auto Sales Tri-Cities Auto Remarketing Jacobsen Motors McMillan Brothers Auction, Inc Panorama Auto & RV Sales LLC Seattle Motors Tri-City Car Sales James G Murphy, Co Medrano's Auto Repairs and Sales, LLC Paragon Auto Sales Semper Fi Motors Triple A Auto Sale JD Auto Sales LLC Memory Lane Motors Paramount Motors NW Seven Auto Sales Triple C Auto Brokers JDM Car & Motorcycle Mercedes Benz of Seattle Park Avenue Auto Sheriff's Auto Sales Truck City RV Sales Jeg's Motors Messmer Motors Parkland Auto Center Shoreline Family Auto Care & Sales Truck Country, LLC Jennifer's Greenacres Auto Sales Mike Wood Auto Sales Pasco Auto Wrecking, Inc ShredSupply, Inc Truckland JFK Auto Sales and Service Mikes Automotive Patriot Automotive Signature Auto Sales, Inc Trucks Northwest JJ's Auto Investments Millennium Auto Sales Paul Christensen Motor Co Singh Motors of Seattle LLC True's Auto Plaza John Clark Motors, Inc Millennium Motors, Inc Payless Auto Sales Skyline Group, LLC Tulalip Motor Sports John's Auto Mart, LLC Miller's Auto Sales Penske Truck Leasing Co, LP Smart Motorz U-Haul Company of Washington Johnson RV Mills Motors LLC Performance Motors Auto Sales LLC Smittys Outdoor Power Equipment U-Neek RV Center JTM Group LLC Mimeco, LLC Peters & Keatts Equipment, Inc. Snohomish Equipment Rental & Sale U.S.A Auto Sales Kalispel Tribe of Indians Mission Motors Inc Petroleum Solutions, Inc. SNS Auto Sales Union Gospel Mission Motors Kaman Auctions, LLC MK Motors Platinum Wholesale Autos, Inc Solid Rock Auto Sales Unique Motorsports Auto Sales Karz n More, Inc MNM Auto PNW Dealers LLC Solid Waste Systems Universal Sales and Service Kent Cars Modern Collision Rebuild & Service Port Angeles Power Equipment Sons of Thunder Auto Sales LLC University Motorsports Kent Grand Auto Sales Moneyman Pawn & Jewelry Preferred Auto Sales LLC Sound Auto Land, LLC Unlimited Auto Deals LLC Kent RV Morkar Auto Group Premier Motorsports Inc Source Motor Sales, LLC US Auto Care, LLC Kent Truck & Equipment, Inc Motion Autos Premium Motors South Tacoma Auto Sales USA Auto Sales, Inc Kersey Mobility Systems, Inc MotoCycle Prestige Motors, Inc Specialty Mobility Used LLC Kim Eccleston's Motors Inc Motorcars Limited Pro Finish Inc Spirit Auto Center of Renton V.L.S. LLC Kim's Auto Sales Motors Northwest Puget Sound Truck Sales, Inc. Spokane Frame & Auto LLC Vail International, Inc King's Pre-Owned Auto Sales Mountain Loop Motorcars, Inc Puyallup Car and Truck Stage Auto Center Valley Auto Liquidators Kirkland RV Sales Mr Auto Sales Puyallup RV Star Cars Valley Equipment and Truck Inc Kitsap Auto Outlet Mt Si Motors Puyallup Truck's & RV's Sale's Steve's Auto Parts Valley Truck and Equipment, Inc Kitsap Used Cars My Friends Auto Sales Qcar Auto Sales LLC Stewart Subaru Vancouver Car Company Klean Auto Sales Nelson Truck Equipment Co., Inc. Quality Auto Center Stingray Auto Brokers Vaqueros Auto Sales Kleyn's Auto Sales, Inc Newton's Car Corner Quality Motors LLC Stokes Auction Vintage Racing Motors, Inc Kulbeer Gill Nob Hill Auto Sales R & B Classic Cars LLC Sun Auto, RV & Marine Sales, Inc VIP Traders L & M Auto Sales Inc Norlift, Inc. R. E. Powell Dist Sundance RV & Auto Center Vista Auto Sales and Leasing, Inc L. A. Auto Rack LLC Northend Truck Equipment, Inc Rain City Rides Sunnyside Automotive Group LLC Wakefield Inc Landmark Motors, Inc Northtown Auto Liquidators Rainbow Auto Service LLC Sunrise Auto Sales Walker Motor Works Latino Auto Sales & Repair Northwest Auto Credit Rainier Motorsports LLC Sunrise Automobile Corp Warner Auto Center LLC LB Auto Sales Northwest Auto Liquidators Rallye Auto Sales Inc Sunset Auto Wholesale Washington Auto Finance, LLC Legend Auto Sales Inc Northwest Autobahn Rancho Kustoms, LLC Sunset Cars of Auburn Washington Cars, Inc Leonard Evans Cars Northwest Autoway Randall's Auto Sales Suntown Motors Washington Cedar & Supply Co Lets Deal Northwest Motorsport, Inc Randco Tanks Superior Motors Washington State Motorcycle Sales LLC LG Auto L.L.C. Northwest Recreational Liquidators, Inc. Randy's Auto Sales Inc & Motorsports SW Motor Sports LLC Way Scarff Ford LG Used Auto Sales Northwest Rides, Inc. Reality Auto Sales Symbolic Motors West Coast Auto Dealers LLC Liberty Bay Auto Center Inc Northwest Sales & Service Red Sun Moto Synergize Auto LLC Westcoast Auto Remarketing, LLC Life Auto Sale, Inc NW Auto Empire, LLC Redline Motors LLC T.K. Auto Sales Western AG Sales Lifestyle Motor Co NW Motors Reid & Johnson Motors, Inc Tacoma Auto Exchange Western Auto Sales LLC Links Auto & Truck Accessories OB-1 Car company Inc Rhine Equipment Company Tacoma Car Sales LLC Western Systems & Fabrication Lone Wolf Harley-Davidson Olympia Auto Sales, LLC Rhino Performance Auto, LLC TCS Auto Wholesale, Inc Western Truck Exchange Los Amigos Olympia Auto Source Rich's Car Corner, Inc TDI Motors What About Bob's Used Cars Lost and Found Classic Car Co Olympic Auto Sales Rick's Kar Korner Ted Motors Co Wholesale Motors Low Auto Sales LLC Olympic Auto Works, LLC Rightway Auto Sales The Auto Connection Wilcox Farms, Inc Lower Valley Motors, LLC Olympic Motors Rio's Auto Sales The Auto Mart Winston Auto Service & Sales LLC Luque's Auto Sales Omak Auto Plaza LLC Ritchie Bros. Auctioneers (America) IncThe Brown Boys, Inc X Car Inc Lux Auto Sales LLC One.7, Inc RL Motors The Car Connection Xcite Motors M.B. Motors LLC Open Road Motorsports Rod's All Star Auto The Crazy Cow Auto Sales Yakima Automotive & Collision Specialist L Machias Auto Sales, LLC Open Road RV, LLC Roosales The Family Auto Sales LLC Yaktown Motors Main Drag Auto Sales & Transport, LLCOrca Auto Sales Inc Route527 Motorsports, Inc The Noel Corporation Your Turn Auto, LLC Mainly Muscle Cars, LLC Ortega's Auto Sales, Inc Roy Y Auto Sales The Other Guy's Auto & Truck Center Zayna Auto Sales Maple Leaf Motors Osprey Equipment and Leasing Inc Ruddell Auto Mall The Price is Right Auto Sales Zdart LLC Maple Valley Auto Sales Ott-Knott, Inc Russ Dean Family RV The Trade Store & Affordable Car Rentals Zel Automotive Market Place Auto Owen Equipment Company Russell-Land Auto Sales LLC Three Rivers Marine Marquez Motors Owen's Yamaha Suzuki Harley DavidsonRusty Rides Auto Wholesale TMS Motor Sports Mashina Motors LLC P.A. Auto Sales, Inc Ryan's RV Tom's Car Store Inc Maximum Motorsports, LLC Pacific City Auto Sales S & P Auto Top Auto Brokers LLC Maxwell Auto Sales Pacific Coast Auto Center S & S Best Auto Sales LLC Top Spec Auto

the Front Row | wsiada.com | November-December 2017 |

Service Provider Directory WSIADA service providers are best in class. We invite you to explore their services and please mention that you saw their listing in the Front Row magazine. Accounting Services

Custom Signs

Fleet Management

Rekdal Hopkins Howard

Sign Dog

Spireon

(425) 658-1400 rh2cpas.com

Please see our ad on page 22

Auctions Adesa Seattle

(253) 735-1600 adesa.com/Seattle

Please see our ad on page 6

Adesa Portland

(503) 492-9200 adesa.com/Portland

Copart Auto Auction (253) 847-8300 copart.com

DAA Northwest (509) 244-4500 daanw.com

Please see our ad on the inside front cover

DAA Seattle

(253) 445-6424 signdog.com

Dealer Management Systems Carousel Software

Dennis Demattia demattia@mailforce.net (509) 926-8848 carouselsw.com

Frazer Computing, Inc. (888) 963-5369 frazer.com info@frazer.com

Skywerks

(206) 999-6699 skywerks.com

Please see our ad on page 20

Finance and Insurance

(253) 737-2200 daaseattle.com

AUL Corp

Ehli Auctions

Please see our ad on page 5

(253) 572-0990 ehliauctions.com

Kaman Auctions

(206) 696-2264 dpccorp.net

Drive Dealer Solutions

The F&I Group, LLC

Manheim Seattle

(360) 710-9545 thefandigroup.com

Please see our ad on the inside back cover.

Northwest Dealer Financial Services

(206) 718-7234 (Western WA) (509) 705-7597 (Eastern WA) nwdfs.com

(253) 922-2200 griotsgarage.com

Southwest Dealer Services

CRM Systems

Western Fidelity Insured Services, Inc.

Dealer Socket

(866) 813-1429 dealersocket.com

Floor Plan Xpress

(206) 571-3068 ian.fee@swds.net

(425) 283-4158 wfisinc.com

16 | the Front Row | wsiada.com | November-December 2017

(253) 839-2600 lobelfinancial.com

Please see our ad on page 2

Marketing Sygnifi Networks (734) 418-7073 info@sygnifi.com sygnifi.com

(509) 703-6558 fpxus.com

Museum

Nextgear Capital

(253) 779-8490 AmericasCarMuseum.org

(855) 372-2329 nextgearcapital.com

LeMay Car Museum

Please see our ad on page 19

Identity Theft & Data Breach Protection

Parts & Service

Dealer Direct of America

(877) ADVANCE advanceautoparts.com

Robin May (253) 653-9911

IdentityMaxx

Insurance & Bonds

(425) 478-7242 drivedealersolutions.com

Griotâ€™s Garage

(253) 333-0300 afcdealer.com

Benchmark Dealer Services

Manheim Portland

Car Care

AFC

(800) 826-3207 aulcorp.com

Please see our ad on page 13

(206) 762-1600 manheim.com

Floor Plan Companies

(253) 653-9911 Robin May

(425) 640-5111 kamanauctions.com (503) 286-3000 manheim.com

(800) 557-1449 spireon.com

Lobel Financial Corp.

Hecht & Hecht Insurance (800) 609-0979 hechtins.com

Shepard & Shepard Business Solutions (855) 396-0488 shepquote.com

Please see our ad on page 24

Legal Services Davies Pearson, P.C. (253) 620-1500 dpearson.com

LegalShield

253 905-9111 legalshield.com

Lending Credit Acceptance

(253) 279-3260 creditacceptance.com Please see our ad on page 13

Advance Auto Parts

AutoZone

(866) 727-5317 sc53@autozone.com

Please see our ad on the back cover

Surveillance/Security Pro-Vigil Surveillance (210) 858-1105 pro-vigil.com

Advertise with

WSIADA! THE FRONT ROW magazine is the most effective way to reach over 1,600 automobile dealers in Washington State. Contact WSIADA for more information about targeting your ad dollars today!

253.735.0267

THE ULTIMATE COMPLIANCE CHECKLIST EDITOR’S NOTE: I ran across this article in an edition of BHPH Report. There is some good stuff in here for everyone. Tear it out or photocopy these pages and and have your Compliance Officer retain a copy. ~ Todd Elliott

Steve Levine Chief Legal Officer, Ignite Consulting Partners

or several years I was responsible for creating the compliance learning curriculum for the AutoStar Innovate Users Conference. I would include checklists in the learning materials because they are a convenient and effective “take away” for attendees. I remembered this recently when I gave a speech to a local independent auto dealers association. The facility wasn’t set up to use a power point presentation so I went “old school” and provided attendees a checklist that highlighted a dozen broad categories of compliance issues. The feedback was great, with many dealers saying the checklist forced them to focus and identify their vulnerabilities. As I started thinking about this month’s column, I decided to again use this tool. What follows is a pretty thorough (though certainly not all inclusive) list of compliance issues for an independent car dealer to consider. I encourage everyone to use this to critically evaluate their current state of compliance and seek help on the areas in which one falls short.

General Considerations

information security, and code of conduct, at a minimum.

❏❏ Are you properly organized under the law (corporation or LLC) to insulate yourself from personal liability?

❏❏ Determine your “Red Flag” obligations and how you will safeguard customer information.

❏❏ Have you set up a related finance company (“RFC”) for legal and accounting benefits?

❏❏ Determine how you will create a secure area for storage of both paper and computer based information and restrict access.

❏❏ Have you obtained all licenses for your dealership and RFC to enter into the transactions you intend to enter into, such as retail installment contracts, side notes, financing of repairs, or loans? ❏❏

If you have an RFC, is it licensed to hold and service the accounts?

❏❏ Have you given thought to obtaining Errors and Omissions Insurance Coverage to avoid “bet the company” risk?

❏❏ Establish a policy for accepting both cash and credit card information and know how you will report cash transactions over $ 10K (IRS form 8300). ❏❏ If you will be reporting to credit reporting agencies, know how to safely and accurately report your account information. ❏❏ Learn your relevant state regulator’s “do’s and don’ts”.

Don’t Open Your Doors Unless You…

❏❏

❏❏ Have a qualified lawyer and accountant with relevant industry experience on speed dial.

❏❏ Know how you will comply with Service Member’s Civil Relief Act requirements.

❏❏ Appoint a qualified Compliance Officer.

Originating the Transaction – the Preliminaries

❏❏ Appoint a qualified Privacy Officer. ❏❏ Have identified qualified technology providers such as Dealer Management Software providers and other tools to efficiently run the business. ❏❏ Know how each of the following impacts your business: GLB, TILA, ECOA, FCRA, FTC, CFPB, OFAC, and UDAP. ❏❏ Have Confidentiality Agreements with all Vendors with access to premises and personally identifiable customer information such as cleaning crew and IT administrators. ❏❏ Have a qualified lawyer review any advertising, including website and social media. ❏❏ Establish a hiring process which includes a job application that offers protection, approved questions for interviews, and strategy to hire subject matter experts.

Know your record retention obligations and have a plan to comply.

❏❏ Make sure your credit application is up to date with FCRA and ECOA requirements and contains permission for text, cell phone and email contact throughout the life of the account. ❏❏ Understand the legal obligations under FCRA and ECOA regarding adverse action and make sure letters are up to date, correct reasons are provided, and employees are consistent in their logic and use. ❏❏ Understand whether your business model triggers a “risk based pricing” notice. ❏❏ Make sure Buyer’s Guides are located on every vehicle available for sale and obligations under Used Car Rule are understood. ❏❏ Compliant and effective Credit Underwriting and Fair Lending policy.

❏❏ Develop employment contracts with confidentiality and non-solicitation provisions and accurate job descriptions with acknowledgement by employee.

Originating the Transaction – “We’ve Got a Deal”

❏❏ Create an Employee Manual, which includes policies to follow, relevant laws, a policy on document and

❏❏ Originating practices must be consistent with floor plan covenants.

CONTINUED NEXT PAGE

the Front Row | wsiada.com | November-December 2017 |

CONTINUED... ❏❏ Have each and every form that will be presented to a customer examined by a compliance lawyer. ❏❏ Have a compliance lawyer bless each and every fee you wish to charge. ❏❏ Make sure your RISC form (lease, loan, etc.) is up to date and DMS programming matches the form. Examples include but are not limited to rebate method, treatment of interest, payment hierarchy and application, and late fees and NSF fees. ❏❏ How will initial and annual privacy policy be delivered? ❏❏ Use a robust “spot delivery” form, if allowed by state law. ❏❏

If using a “we owe” form, make sure it is accurate and specific.

❏❏ Use GPS/starter interrupt disclosure forms and make sure they are consistent with rest of deal package. ❏❏ Use an arbitration clause, either in the transaction document or separately. ❏❏ Know whether you are in a “single document” state. ❏❏ If offering various F&I products, consider “menu” selling. ❏❏ Use training and policy manuals to make sure that all sales and F&I personnel understand importance of transparency, disclosure, and consistency in consumer dealings.

Servicing of Accounts ❏❏ Have a compliance attorney review every form letter or other communication.

automatic stay, the differences between Ch. 7 and 13. “cram down” rules in your jurisdiction, reaffirmation agreements, specialized servicing issues, etc. ❏❏ Know how your DMS identifies bankruptcy accounts and tracks trustee or reaffirmation payments. ❏❏ Know your obligations under the Service Members Civil Relief Act (SCRA), including when it applies, who can exercise its benefits, and how the DMS handles interest rate/payment reductions.

Know the Rules of Repossession ❏❏ Have rigorous contracts with any third-party repossession agents and make sure they are sufficiently bonded and insured to insulate you from liability. ❏❏ Verify your own errors and omissions policy will protect you from wrongful acts of agents. ❏❏ Have an objective criteria setting forth criteria for repossession of accounts. ❏❏ Know local customs for notifying police, definition of “breach of peace”, storing of vehicle and charging for personal belongings. ❏❏ Know if there is a right to cure requirement prior to repossession. ❏❏ Make sure you haven’t waived your right to repossess by accepting late payments on a regular basis.

❏❏ Adopt and implement a Collections/Servicing Manual and consistent collections training materials.

❏❏ If forced to utilize judicial repossession, do a cost-benefit analysis up front, beware of counter-claims and know if local law requires you to obtain judgment.

❏❏ Learn relevant state and federal collection laws and what dealers get sued for in your community.

❏❏ Beware of wide range of Article 9 of Uniform Commercial Code and consider:

❏❏ Restrict employees’ ability to draft collection letters, texts and emails.

❏❏ Post repossession notice and notice of intent to sell letters have very specific state law requirements and must be consistent with business practices.

❏❏

Provide customers with several different payment portals (IVR, text, ACH) to gain efficiency and cut down on conflict.

❏❏ Adopt and implement a Complaint Management Policy and process to resolve customer complaints and document the process. ❏❏ Have a process for accurately providing payoff quotes and consider privacy implications. ❏❏ Be sure collectors know the rules about communicating with third parties. ❏❏ Policies for releasing titles and possibly providing original documentation must be in compliance with state laws. ❏❏ Be aware of consumer bankruptcy issues, such as the

his checklist, dear reader, is COMPLIANCE GOLD! Don’t throw it away. Use it to critically evaluate your business and look for opportunities. Reduce your risk and protect the business you’ve worked so hard to build. Please reach out to me if you think of other items not on the list or if you encounter unfamiliar issues that you’d like to discuss.

Steve Levine 18 | the Front Row | wsiada.com | November-December 2017

❏❏ Know difference between “public” vs. “private” auction, and are your business practices reflected in your letter (i.e. dealer only auctions are not “public” in most jurisdictions). ❏❏ Leaving vehicle on your lot to resell is not a public auction and even such private sale can be attacked. ❏❏ Should you take advantage of “strict foreclosure”, when available, and what rights are lost? ❏❏ Make sure surplus and deficiency letters are accurately calculated and are consistent with actual business practices. ❏❏

How to report to credit bureaus and hidden causes of action.

teve Levine is Chief Legal and Compliance Officer of Ignite Consulting Partners, which offers compliance, technology, and cyber security guidance to car dealers and finance companies. He has previously served in similar capacity with other industry participants. These experiences allow him to develop strategy, overcome internal obstacles and implement meaningful change. Please contact sales@IgniteCP.com to learn more. You can follow Steve on Twitter @LawyerLevine for compliance and industry related content.

EXPERIENCE YOUR AUTOBIOGRAPHY

COMPLIMENTARY DEALER CROSS-PROMOTIONAL OPPORTUNITIES • Display vehicles on Anderson Plaza at ACM — Great visibility from I-5, I-705 & Tacoma Dome • Offer Ride & Drives around Dome District & Haub Family Field • Purchase ACM Group Admission Tickets for event promotion • ACM develops event promotional email for dealership

20 | the Front Row | wsiada.com | November-December 2017

READ AND RESPOND | the Front Row NOV/DEC 2017

he purpose of this Read and Respond quiz is to verify one has read the content of this issue of the Front Row. All of the answers for the questions provided are included in the content of the issue. WSIADA’s Read and Respond quizzes earn 1 hour of continuing education credit. A passing grade will be granted for scores of 80% or higher.

Payment is required prior to the Washington State Department of Licensing being notified of completed continuing education. The Front Row Read & Respond policy has been updated; please contact WSIADA for payment information. Please be advised that the information contained in WSIADA’s the Front Row is, to the best of our knowledge, current and correct. However, we caution readers not to use the information provided to them as final authority. Its purpose is to be a guide. Any legal advice should be regarded as general information. It is strongly recommended that one contact an attorney for counsel regarding specific circumstances. Some articles may express opinions and/or suggestions for best practices. Likewise, the appearance of advertisers or their identification as members of WSIADA, does not constitute an endorsement of the products or services featured.

DEALERSHIP NAME CHECK:

DEALER#

BUSINESS PHONE

FAX

I HAVE READ AND UNDERSTAND THE DISCLAIMER ABOVE.

QUIZ TAKER’S NAME

POSITION

EMAIL Send your completed quiz to WSIADA...

SIGNATURE

CIRCLE THE CORRECT ANSWER. 1. Washington State Independent Auto Dealers Association is the ___ largest in the Nation. a. 6th

DATE

4. The NMVTIS report includes. (Select all that apply).

a. True

253-804-0844

EMAIL:

staff@wsiada.com

7. A car’s ___ is extremely susceptible to flood water. (Select all that apply). a. Engine

b. Current/previous state of title

c. Fuel system

c. Title Issue dates

d. Airbags

d. Odometer readings

e. Brakes

b. Electronics

e. Current/previous brands f.

Date the brands were applied

c. 5th

2. WSAIDA has recently amended its bylaws to make it easier for dealers to get involved at the board level to protect dealer interests in Olympia.

707 Auburn Way South; Auburn, WA 98002

FAX:

a. Junk, salvage and insurance total loss data

b. 4th d. 10th

MAIL:

5. Flood issues may not appear until ___ after a vehicle has been cleaned and sold.

8. Information on flood or salvage titles can be found on a vehicle history report a. True b. False

a. Years b. Weeks

9. Signs to help identify flood damage in a vehicle include (Select all that apply).

c. Days d. Months

a. Musty odor

b. False

b. Mud in seatbelt tracks/tensioners 3. Auto Data Direct, Inc. offers access to National Title Information Systems (NMVTIS) Title Check reports. a. True b. False

6. A car that’s been flooded with the engine submerged for any length of time, will never be the same. a. True b. False

c. Water or condensation in head & taillights d. Water in the spare tire well e. A sagging headliner f.

Corrosion in the undercarriage

the Front Row | wsiada.com | November-December 2017 |

READ AND RESPOND | continued 10. A professional inspection will find flood damage no matter how it has been hidden. a. True b. False 11. DAA Northwest was among this year’s honorees for Auto Remarketing’s Best Auctions to Work For.

15. When servicing accounts it is NOT important to: 13. Sales and training policy manuals are important for employees to understand the importance of transparency, disclosure and consistency in dealing with consumers. a. True b. False

a. True b. False 12. Which is NOT considered a “General Consideration” for the Ultimate Compliance checklist? a. Proper organization under the law to insulate yourself from personal liability. b. Have set up a Related Finance company for legal and account benefits. c. Errors and omissions Insurance Coverage is unnecessary.

14. Which of the following is unnecessary before opening your doors? a. Retained a qualified lawyer and accountant with relative industry experience. b. Join WSIADA. c. Appointed a qualified Compliance Officer. d. Appointed a Privacy officer. e. Create an employee manual.

d. The RFC is licensed to hold and service the account.

22 | the Front Row | wsiada.com | November-December 2017

a. Have a process for accurately providing payoff quotes b. Learn relevant state and federal laws c. Post employee vacation schedules in the breakroom d. Adopt and implement a complaint management process. 16. All but which of the following are important repossession guidelines: a. Make sure you have not waived your right to repossess by accepting late payments on a regular basis. b. There is no right to cure requirement prior to repossession. c. Have rigorous contracts with any third-party repossession agents and make sure they are sufficiently bonded. d. Know wide range of Article 9 of Uniform Commercial code considerations.

Washington State Independent Auto Dealers Association

Membership Enrollment

YES!

It is important to be to be recognized as a professional! Enclosed are my annual dues to ensure that my business has all the advantages WSIADA/ NIADA provides to put me at the forefront of my profession. By completing this form, I am consenting to and giving WSIADA/NIADA, its affiliates and subsidiaries, my permission to (until I give written notice to discontinue) contact me and provide information to me at the mailing and e-mailing addresses, telephone and fax numbers I have provided. I hereby certify that (I am/we are) eligible for membership in WSIADA.

SIGN Member Name Business Name

Dealer #

Address City

State Zip

County

Business Phone

Mobile

Fax

E-Mail

Website:

Enrolled by ________

Membership Category: $450 Dealer Member: [a] limited to any sole proprietorship, partnership or corporation which is engaged in buying and selling motor vehicles as a principal part of its business; and [b] must hold a vehicle dealerâ€™s license issued by the Washington State Department of Licensing. Business Name

Dealer #

Business Name

Dealer #

Business Name

Dealer #

Other Employees I would like to include within my membership: Full Name

Position

Mobile

Full Name

Position

Mobile

Full Name

Position

Mobile

SEAL DUES PAID

VISA

AMEXcheck

CARD NUMBER

NAME ON CARD

EXPIRATION DATE

CARDHOLDER SIGNATURE

CHECK No.___________

CCV

BILLING ZIP CODE

DELIVER

WSIADA FAX EMAIL(as a scanned attachment) 707 Auburn Way South 253-804-0844 staff@wsiada.com Auburn, WA 98002

the Front Row | wsiada.com | November-December 2017 |

s...

tion a t i C ng Parki

JUST FOR FUN

Call for Good Humor...

Email your industry jokes, cartoons & funny photos to staff@wsiada.com

24 | the Front Row | wsiada.com | November-December 2017

LET US SET YOUR DEALERSHIP FOR FREE!

the Front Row | wsiada.com | November-December 2017

WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION 707 Auburn Way South Auburn, WA 98002 WSIADA.COM

Advertise with Us! the Front Row magazine is the most effective way to reach more than 1,600 automobile dealers in Washington State. Contact WSIADA for more information about targeting your ad dollars today!

253.735.0267

ALL THE TOOLS TO BUILD YOUR SERVICE DRIVE PARTS AND SERVICES • • • •

Hot Shot Delivery Tools & Equipment 72-Hour No Core Charge* 48-Hour Labor Claim Reimbursement**

AUTOMOTIVE REPAIR SOFTWARE

• • • •

OEM Repair Data Maintenance Schedules Technical Service Bulletins Labor Rates and More

CALL 1-866-727-5317 FOR MORE INFORMATION ON THE PARTS, SERVICES AND TOOLS YOU NEED

*72-hour core deferral does not apply to engines, heads, crankshafts, transmissions or outside buys. Core charge deferral is available only to qualiﬁed delivery customers. **48-hour response guarantee does not apply to claims over $1,000 or claims requiring product testing. Contact your AutoZone Commercial Specialist for details. © 2016 AutoZone Inc. All rights reserved. AutoZone, AutoZone & Design, Duralast, Duralast Gold, Duralast Max, Loan-A-Tool and Duralast ProPower are registered marks of AutoZone Parts, Inc. and Going The Extra Mile is a mark of AutoZone IP, LLC or one of its afﬁliates. ALLDATA is a registered trademark of ALLDATA LLC. All other marks are the property of their respective owners.©2016 AutoZone, Inc. All rights reserved. AutoZone, AutoZone & Design, Duralast, and Duralast Gold are registered marks and Going The Extra Mile and Duralast Max are marks of AutoZone Parts, Inc. All other marks are the property of their respective owners. All photographic, clerical, typographical and printing errors are subject to correction.