Issuu

The official publication of the Washington State Independent Auto Dealers Association

November|December 2019

Happy Holidays!

WSIADA Headlines Holiday Sales at DAA

Tire Heiroglyphics PLUS...

Annual Review of Continuing Education Requirements

WITH US, IT’S

PERSONAL In an evolving industry, you really can have the best of both worlds: skilled people using technology that works. It’s what you’ll find at the McConkey Auction Group, where progress meets personal touch. Spokane, WA

DECEMBER 18th

Myles

Vehicle Processing DAA Seattle

Auburn, WA

& 19th

Featuring 3000 corporate & dealer vehicles

JOIN US AT DAA NORTHWEST EVERY THURSDAY AT 9:00 AM, AND IN SEATTLE EVERY FRIDAY AT 9:00 AM

Friday - December 6 - 9:00 AM 800 Cars, Trucks, & SUVs

DAA NORTHWEST | Spokane, WA DAA SEATTLE | Auburn, WA mcconkeyauctions.com

SPOKANE, WA daanw.com

AUBURN, WA daaseattle.com

All information subject to change without notice

November|December 2019

The official magazine of the

WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION 707 Auburn Way South Auburn, WA 98002 T: 253-735-0267 | F: 253-804-0844 staff@wsiada.com WSIADA.COM AJ Hamedian, Board President Excellent Choice Auto Sales, LLC aHamedian@yahoo.com

Vacancy - Board Vice President Vacancy - Board Secretary Emil Scarsella, Board Treasurer

Town & Country Auto Sales | E.Scarsella@hotmail.com

George Henson, Chapter President – North Cascade Walker Motor Works | HarvestVision21@msn.com

Andrew Drager, Chapter President – North Sound Drager’s International, Inc. | Andrew_Drager@mac.com

Wasim Azzam - Chapter President – South Sound All Right Auto Sales | Joe@AllRightAutoSales.com

John (Buck) Tinsley - Chapter President – Vancouver Buck’s Family Auto Brokers | TakeOnPayment@gmail.com

Vacancy - Chapter President – Yakima Butch Lindstrom, Chapter President – Tri Cities All Star Motors | julie@all-starmotors.com

Vacancy - Chapter President – Spokane

Contents 2 | Membership Benefits 4 | Events Calendar 5 | Executive Director’s Message 7 | WSIADA Month at DAA NW and DAA Seattle

J.T. Curry, Board President Emeritus

8 | Auction Listings

Randy Fletcher, President Emeritus

9 | Talking Taxes

Motors Northwest | JT_Curry@motorsnorthwest.com In-N-Out Auto Sales | inandoutwa@gmail.com

Ken Williamson, Board President Emeritus John’s Auto Mart, LLC | JohnsAutoMart@msn.com

John Biddle, Board Member

Brooks Biddle | finance@brooksbiddle.com

Badie Darwazeh, Board Member

Seattle Auto Haus | bd@seattleautohaus.com

WSIADA STAFF

Todd C. Elliott, Executive Director Colette Eilers, Receivables/Payables Rick Olson, Education Manager Mila Froman, Membership Manager Jill Guest, Spokane Store Manager

PUBLISHER

MEMBER

Washington State Independent Auto Dealers Association

Dealer Membership Beneﬁts Protect the interests of your dealership AND support the auto industry in Washington State!

ADVOCACY ❏

Dealer Advocate Line*

❏

Legal Support through WSIADA partner law firm

❏

Industry protection by WSIADA’s lobbyist

❏

Exclusive Legislative updates

EDUCATION ❏

Continuing Education & Sales Training

❏

Compliance Training

❏

Dealer Productivity Training

❏

Discounted attendance at annual WSIADA Education Fair East or West

SPECIAL FEATURES ❏

NIADA membership included

❏

Subscription to the Front Row magazine included

❏

Membership may be billed montlhy or annually**

❏

10% off Products available through WSIADA stores and wsiada.com

❏

One-stop shopping for everything you need to manage and promote your dealership, including marketing materials, signage, forms, stationery and much more.

❏

Custom Orders on marketing products you need at prices you can afford!

❏

$5000 in Auction Discounts at: DAA (NW and Seattle), Manheim (Seattle and Portland), Copart, Adesa (Seattle and Portland), IAA, CTM Unlimited, Copart, Kaman, and Ehli***

❏

Leadership opportunities

ADDITONAL BENEFITS ❏

Mac Ruddell Scholarship (Exclusive to dealer families!)

*Recent dealer advice resulted in $5000 saves on one dealer transaction. **Education related products not eligible for billing option. ***Auction cards have no actual cash value. Lost cards will not be replaced. Cards may be picked up during normal business hours from WSIADA main office, ADESA Seattle, DAA Seattle, DAA Northwest or Manheim Seattle.

20180813

Dealer Management System

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Events Calendar Title Workshops

Education Fairs

DEC 05, 9am . . . . . . . . . . . . Auburn

East | JUL 14, 2020 (date tentative)

JAN 16, 9am . . . . . . . . . . . . Auburn

Covera F&I Training NOV 21, 9am. . . . . . . . . . . . Auburn DEC 19, 9am . . . . . . . . . . . . Auburn

Doubtree by Hilton 322 N Spokane Falls Ct., Spokane WA 99201

Chapter Meetings Look for the Winter schedule in the JAN 2020 Edition of the Front Row.

West | THU AUG 20, 2020 LeMayâ€™s Americaâ€™s Car Museum (location tenative) Haub Family Field 2702 East D St., Tacoma WA 98421

PROVEN TOUGH FOR THE PROFESSIONAL WEâ€™VE BUILT OUR BRAND TO PROTECT YOURS Duralast auto parts are produced to the strictest standards by trusted manufacturers who utilize the highest quality materials, state-of-the-art processes, and well-designed, durable components. You can depend on Duralast

4 | the Front Row | wsiada.com | November/December 2019

EXECUTIVE DIRECTORâ€™S MESSAGE

ard to believe we are at the last issue of 2019! As we prepare to roll into the holiday season, make sure that you pause to give thanks to the many blessings we have living where we do, doing what we do.

this issue, pay particular attention to the Continuing Education Requirements article on page 16. I put this together for the January issue with the intent to specifically cover the items that each licensed dealer in the state must review annually by statute. We are re-running the article in this issue so we are certain that everyone who uses the Front Row Magazine to complete their Continuing Education requirement can satisfy the state mandate. This is the second issue in a row where we have included an insurance related column. For 2020 we are going to include several regular columns on issue that affect all dealers.

If you feel strongly about the issue, either way, please let us know. Whatever we do will not be an irreversible decision since we still need to create a digital magazine prior to going to print. One final note: Look for my blurb in the issue on the reseller permit. Several dealers have asked about why they must pay sales tax for products we sell when they have a reseller permit. Hopefully, my article clears things up. Enjoy a safe and happy holiday season with friends and family. Happy selling!

Here is another issue for you to ponder. In 2020, I am planning to phase out the distribution of a physical magazine. We will still Todd C. Elliott, WSIADA print one and have the digital version available in multiple formats, but we are considering limited distribution of the print version. We currently print 1000 copies. We mail a copy to each of our more than 650 members and we retain the balance for Continuing Education, Chapter meeting etc. It is a very expensive process. We plan to survey the membership to see who actually reads the physical copy rather than simply tossing it on a coffee table.

the Front Row | wsiada.com | November/December 2019 |

Miranda knows... We get it. If you want to buy a car ask an automotive professional.

If you want to properly protect your dealership ask an insurance professional who understands your business. We are car people. We insure car people. Its all we do.

Insurance & Bonds for: • Auto Dealers • Auto Service • Body Shops • Daily Auto Rental

To get started visit www.ShepQuote.com

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Shepard & Shepard Insurance 855-396-0488 MEMBER - NIADA, OIADA, WSIADA, ISIADA, ASA Home office: Tri-Cities, WA

6 | the Front Row | wsiada.com | May/June 2019

WSIADA Headlines McConkey Auction Group Holiday Sales

ecember is WSIADA month at DAA Northwest and DAA Seattle.

“WSIADA Month is a legacy promotion for us,” says DAA Seattle General Manager Dave Blake. “We value and appreciate the ongoing The McConkey Auction Group support from the association and its members. Our $1,000 (MAG) will feature weekly voucher more than covers the incentives promoting the Washington State Independent cost of membership.” Auto Dealers Association this DAA Northwest’s General December. Manager David Pendergraft MAG’s Auburn location, DAA adds, “This promotion speaks Seattle, will kick off the month to the long history our auctions with “WSIADA Dollar” Punch share with the Washington Cards for association members on Friday, December 6th. Each State Independent Auto Dealers. It’s a way for us to punch card includes $1,000 show our gratitude; some in auction services and can members have been doing be redeemed from both DAA business with us here in Seattle and DAA Northwest. Spokane for 27 years.”

In addition to the $1,000 Punch Card, DAA Seattle will provide WSIADA members with a free vehicle detail on any consigned and sold vehicle December 13th and will waive one member buy fee December 20th. “These promotions will help us thank our current WSIADA dealers as we work to help the association generate new members,” states Blake. DAA Seattle and DAA Northwest are members of the McConkey Auction Group (MAG). The auctions are independently owned and operated and are powered by Edge Pipeline.

the Front Row | wsiada.com | November/December 2019 |

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 Alternate Tuesday: Specialty 8:30AM Thursday Night: InOp Sale 4:45PM

Adesa | Portland adesa.com/portland Thursday: Consult website

Copart | copart.com

Times vary: Consult website

CTM Unlimited

See website for auction dates and times: www. ctmunlimitedauction.com

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/nonrunning 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.

IAA - Insurance Auto Auctions iaai.com See website for dates and times

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

8 | the Front Row | wsiada.com | November/December 2019

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.

Talking Taxe$

id you know that reseller permits do not give you carte blanche to buy products without paying sales tax?

eseller permits are granted by the Department of Revenue (DOR) to any company who buys products wholesale with the intent to resell to the public. Sales tax is deferred on these wholesale purchases and ultimately collected when the business sells the product to a consumer.

Dealers have asked some clarifying questions: “Why do I have to pay sales tax since I have a reseller permit?” I thought a clarification might be worthwhile. ~ Todd Elliott

them to your customers. For most dealers, the primary purpose of the reseller permit is to allow you to buy cars wholesale, pay no sales tax, then sell these same cars to retail customers, charging them sales tax in the process.

You guys likely already knew this. However, if you did not, now you can go adjust your processes so you can avoid those ugly little (big) surprises at DOR audit time.

Since we are talking about sales tax, Did you know that Remember, “The seller is liable sales tax collected is to be to the Department of Revenue held “in trust” until it is forfeited (turned over) to the DOR? for sales tax, whether or not it That does not mean that you For example, WSIADA does is collected.” (Source: DOR. need to go set up a special not pay sales tax when we wa.gov) That means, you are trust account for sales tax buy forms from our printers. not required to collect sales However, we do charge our tax on vehicles sold. However, revenue. If you do not do this already, simply set up a dealers sales tax since you are at audit, you will be assessed separate checking account to using the forms in your business. the sales tax where it was not hold the sales tax revenue until You do not buy the forms from collected and remitted. That it is due to the DOR. us and turn around and sell would classify as a bad day.

(425) 658-1400 www.RH2Cpas.com the Front Row | wsiada.com | November/December 2019 |

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10 | the Front Row | wsiada.com | November/December 2019

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INSURANCE CORNER

Loss Prevention By Todd Shepard, Owner, Shepard & Shephard Insurance

ongratulations! That ad you placed in the freebie paper or online paid off and now you are face to face with a real live prospect who is interested in buying a car. Unfortunately, she

type (successfully!). Although most attorneys are capable of handling small contracts most of us might tend to agree your hard-earned dollars would be best to spent on council that specializes in your particular case be it real estate, merger & acquisition, or criminal. Such professionals can offer advice from a ‘been there, seen it before, and here is what to do’ point of view.

As a dealership owner, insurance is an annual expense. Fortunately, as with many expenses, by taking an active role you can help to control, regulate, or even reduce these costs.

An insurance broker that specializes in dealership policies and has access

also got excited about the other 30 ads she saw and is dead set on visiting all the dealers in town.

The first big step in controlling these costs is realizing that, contrary to the billions spent on media advertising to the contrary, it’s not always as easy as shopping for lower rates. In fact, unless you are extremely familiar with insurance terminology, actually take the time to read and understand your policy (believe me they aren’t as interesting a read as you might think!), and are familiar with the insurance carriers entering and exiting the marketplace, you’ll lack the information necessary to do a real comparison based on price alone. All policies are different and often those savings can be quickly eaten up when a claim arises. Best practice is to consider working with an insurance broker who has knowledge and experience insuring auto dealers. The insurance profession is like any other profession. There are those who write general insurance (home, auto, life, commercial) and those who specialize in a specific type of risk. Compare this to other professionals such as a doctor or attorney. Your general practitioner is great for treating most ailments, however, if you need a heart transplant or brain surgery, you’d be crazy not to insist on a doc who has performed multiple surgeries of this

It has been our experience that dealerships with good risk control efforts can reasonably expect stable insurance premiums even in uncertain times.

to multiple insurance carriers will work with those carriers, using actual claims experience, loss analytics (including property and auto values, claims data, claim frequency, and your experience) and can act as an industry-specific expert to deliver meaningful risk control opportunities to their clients. Such a broker brings more to the table through knowledge and experience as well as the ability to shop those multiple carriers for affordable rates. Dealership insurance losses have continued on the rise across the country and since there is a direct correlation between cause and effect; the higher the loss ratio (or higher the claims frequency), the higher insurance costs will trend

and the more carriers will look to exiting the market. It has been our experience that dealerships with good risk control efforts can reasonably expect stable insurance premiums even in uncertain times. By making improvements in your operations, often at little or no cost, you can minimize the potential for loss, and there will be a greater chance of cost savings to follow. We suggest interviewing your insurance broker as to his or her actual experience working with and understanding dealers and the hurdles you face on a day-to-day basis. Ask how many dealerships they actually insure. As with the surgeon, you likely wouldn’t feel confident being the first or second heart transplant he has performed, would you? In future months, we will explore more specific topics including trending thefts, weather-related claims, vehicle accidents, liability losses, building security, lot protection, fire protection, major losses, business interruption, environmental losses, internal controls and so on. We encourage your suggestions and ideas for future topics (contact WSIADA with ideas on topics you’d like to read more about). Stay tuned for more information on loss prevention and ways to protect your insurance policy as it is an integral, important, and often overlooked part of your business’ bottom-line. Todd Shepard is the founder of Shepard & Shepard Insurance, author, a regular contributor to the Front Row, and has worked hands-on in and with the automotive & RV industry for over three decades. For more info visit shepquote.com or call (855) 396-0488.

the Front Row | wsiada.com | November/December 2019 |

Service Provider Directory WSIADA Service Providers know our industry and understand what you need as a dealer. When youâ€™re hiring professionals, support the ones that support your Washington Independent Auto Dealers Association (let them know you saw them listed as a WSIADA Service Provider).

Accounting & Tax Services

Benefits & Health Insurance

Finance and Insurance

RH2 | Rekdal Hopkins Howard

Washington Retail Association

Northwest Dealer Financial Services

(360) 943-9198 waretailservices.com

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

Bonds and Commercial Insurance

Ries Management

(425) 658-1400 rh2cpas.com Learn more on page 9

Tax Max

(866) 642-4107 TaxMax.com

Tax Refund Services (888) 972-7422 TaxRefundServies.com

Auctions Adesa Seattle

(253) 735-1600 adesa.com/Seattle

Farmers - Karen Dunn Insurance Agency (253) 964-7070 business.farmers.com/karen-dunn

Shepard & Shepard Business Solutions

Custom Signs

Davies Pearson, P.C.

(503) 492-9200 adesa.com/Portland

(253) 445-6424 signdogs.com

Copart Auto Auction

Custom Relationship Management

(877) 396-5808 ctmunlimitedauction.com

DAA Northwest

(509) 244-4500 daanw.com Learn more on the inside front cover

DAA Seattle

(253) 737-2200 daaseattle.com Learn more on the inside front cover

Ehli Auctions

(253) 572-0990 ehliauctions.com

Insurance Auto Auction (IAA) (206) 658-6900 iaai.com

Spireon

(800) 557-1449 spireon.com

Sign Dog

CTM Unlimited Auctions

Fleet Management

(855) 396-0488 shepquote.com Learn more on page 6

Adesa Portland

(253) 847-8300 copart.com

(206) 290-3993 riesmanagement.com

Selly Automotive (650) 409-2526 sellyautomotive.com

Dealer Management Systems Carousel Software

Legal Services (253) 620-1500 dpearson.com

Lending CU Direct Lending (877) 744-2835 CUdirect.com

Lobel Financial Corp. (253) 839-2600 lobelfinancial.com Learn more on page 3

Dennis Demattia demattia@alcm.org (509) 926-8848 carouselsw.com

United Finance Company

Frazer Computing

AutoZone

(888) 963-5369 frazer.com info@frazer.com

Skywerks

(206) 999-6699 skywerks.com

Digital Marketing

(503) 238-6475 unitedfinance.com

Parts & Service (866) 727-5317 sc53@autozone.com Learn more on page 4

CoverCraft

(405) 238-9651 covercraft.com

Payment Processing Clearent, LLC

FusionZone Automotive

(866) 435-0666 clearent.com

(425) 640-5111 kamanauctions.com

(888) 863-5707 fzautomotive.com

Vehicle Transport

Manheim Seattle

Sygnifi Networks

Kaman Auctions

(206) 762-1600 manheim.com Learn more on the inside back cover

Yarbro Auctioneers (509) 765-6869 yarbro.com

(833) 794-6434 sygnifi.com

321 Ignition (888) 725-7637 321ignition.com

12 | the Front Row | wsiada.com | November/December 2019

Diesel Auto Express

(360) 539-8600 DieselAutoExpress.com

Vehicle Warranty NVP Warranty

(888) 270-5835 nvpwarranty.com

Renewing Your Vehicle Dealer License dealer. That status wreaks havoc with flooring companies banks and other agencies critical to dealer success.

Here are some helpful tips on the license renewal process o help you save time, money and unnecessary aggravation.

We also track your CE status and can and do resend reports to the DOL on a regular basis. You can start the formal renewal process up to 60 days before your license expires. DO NOT start the process in MyDOR before you have confirmed completion of the required CE. If you do, your license will typically be placed in suspended status, regardless of how much time remains before your license expires. It is an ugly surprise. Suspended status tells the world,

First and foremost, complete your 5 hours of Continuing Education before you do anything else. You have an entire year to do so. If you complete your CE with WSIADA, we will report that completion to the Department Auction Access and everyone else that the State does not of Licensing. We submit a recognize you as a licensed report every business day.

Once you have confirmed completion of your CE, you must renew the following: 1. State Business License (for example, an LLC) 2. Vehicle Dealer license 3. Dealer Bond 4. Reseller permit (every four years) Give yourself plenty of runway because DOL is going to need a little bit of time to do their work, which includes getting you new tabs for your Dealer plates. We frequently have dealers coming to us with their hair on fire at the last minute, typically on the 28th -end of month. I do not know of a dealer that needs MORE stress in their life.

SCHOLARSHIP UPDATE

’s always inspiring to receive correspondence Mac Ruddell scholarfrom students who have received a Mac Rud- ships are available for dell scholarship. Here’s an update from 2017 children and grandchilawardee Lulu Vaca, sponsored by Alma Vaca dren of WSIADA Memof The Crazy Cow Dealership in Yakama. bers in good standing. “I’ve been doing pretty good staying out of For more info contact trouble, going to school and working at Sacred education@wsiada.com Heart Medical Center. At the hospital I’m a FloatPool Nursing Assistant, meaning I work with This year’s application all patients from premature babies to teenagers deadline is and people...in their 90’s. I love college...but March 23, 2020 miss home, especially my mom’s cooking!” the Front Row | wsiada.com | November/December 2019 |

Tire Hieroglyphics

TRADE SECRETS

Cracking the secret code of the sidewall

By John Goux; Images by Matt Crawford

he Valley of the Kings, Egypt, 1922: Torch in hand, intrepid archaeologist Howard Carter enters King Tut’s tomb and sees walls covered in indecipherable hieroglyphics. This is pretty much what most of us see when we try to understand the coded information on the sidewall of a modern automobile tire.

Driving in an F1 race, winning the Indianapolis 500, or stopping safely in the rain – all require the right tire. I’m here to act as your personal Rosetta Stone to the mysteries of tire sidewalls. Adjust your pith helmets, and let’s begin. To demonstrate, I’ll use the OEM tires for Mercedes’s highest volume seller, the GLC300. It comes fitted with Pirelli’s Scorpion Verde, All Season 235/60 R18 tires. [1] 235 millimeters: Why? John Boyd Dunlop, 19thcentury Scottish veterinary surgeon, inventor, and maker

of rubber devices, invented pneumatic “tyres” for his daughter’s tricycle. Thus, tires were invented using the Queen’s metrics: 235mm is the width of the tread and 60 is the percentage of the tread width for sidewall height. Doing the math, 235x.60 = 141mm tall sidewall. Now you know a quick method to find the height of any tire. Yay, math!

“radial.” Radial means the plies (cords) under the tread are perpendicular to the tire’s centerline and bead. The centerline is, well, the centerline. The bead is the part of the tire shaped to fit the rim and is what holds the tire to the wheel. Don’t hurt your brain trying to picture the geometry. Just trust me on this one.

[2] Next, R: More than just a pirate’s favorite letter in the alphabet, it stands for

[3] 18: The 18 of R18 is inches. Yes, 18 inches of inner-tire diameter. Why inches and not millimeters? Because wheels made for American cars have their diameters in inches like God intended!

14 | the Front Row | wsiada.com | November/December 2019

[4] Followed by 103H: This grouping describes tire load and speed rating;103 means each tire can carry a load of 1,929 pounds. The “H” means you can safely cruise at a sustained speed of 130 mph on American interstates. Uh … I meant the Autobahn. To

MO difference” by searching “Mercedes-Benz tire types.” You’ll be treated to a hilarious video about how choosing the right tire for your MercedesBenz is like choosing the right track shoe. Evidently, it’s hard to run in flippers!

learn more, you can research load and speed ratings at www.TireRack.com, keywords “load rating.” For the rest of you, hang in there. The fun continues.

means the wheels fall into a category occupied by 77 percent of all tires for stopping ability in a straight line in wet conditions. “TEMPERATURE A” means these tires meet the highest standard for heat resistance – which they’d better, since they’re named Scorpion Verdes!

[5] M+S: These letters mean Mud & Snow. “All Season” just wasn’t engineery enough for the slide rules at Stuttgart. So, engineers at Mercedes insisted Hey, we’re almost done, and I Pirelli put M+S. It helps the engi- promise there won’t be a test at the end. neers sleep better at Nacht. [6] Now, the big three: Treadware, Traction and Temperature (600, A and A respectively). “TREADWEAR 600” is internal to Pirelli and means these tires last six times longer than Pirelli’s quickestwearing tire. “TRACTION A”

[8] Some final glyphs: Let’s finish this rubber-infused expedition by holding the light up to a few remaining glyphs. DOT – the tire meets Department of Transportation safety standards for road use. 93 – the Pirelli manufacturing plant. K3 – Pirelli’s internal size code. T899–Mercedes internal code for tire brand and characteristics. 0219 – the tire was manufactured the 2nd week of 2019. This information is for recall purposes and so the owner will know when the tires should be replaced.

Tut, tut! Now that wasn’t so bad was it? Like Carter, whose lectures ignited the American Egytomania craze, you can now hold lectures [7] Introducing MOE: Is MOE at Coffee and Cars and start one of the Three Stooges? American Tiremania! Or, ply Sure, but in this case, MOE your significant other with this means Pirelli manufactured the newfound knowledge to help tire specifically for Mercedeslull them into a good Nacht’s Benz; the “E” means Extended. sleep. MOExtended tires will run flat for 50 miles. You can “see the

the Front Row | wsiada.com | November/December 2019 |

Continuing Education Requirements INVENTORY OF CONTINUING EDUCATION ITEMS TO REVIEW ANNUALLY. UPDATED NOVEMBER, 2019

ll dealers reading this magazine know that running an independent dealership in the State of Washington is MUCH more than just buying and selling cars. The State requires

The inventory of issues in this article should serve as a refresher. If there is an item below that requires clarification feel free to reach us at (253) 735-0267 or attend one of our many events that that you review the following summary of the items annually. are posted at wsiada.com/ calendar. Every event and meeting you attend at the Washington Throughout the coming year, State Independent Auto we will go into extensive detail Dealers Association is designed on several topics at the varito clarify and emphasize the ous Association events. Each topics summarized below and presentation or discussion is others that we believe will designed to clarify and detail keep you more compliant, the principles of running a sucmore profitable or both. The point of this article is NOT to cessful dealership. make you expert in every Please let us know of topics area, but to remind you of the areas that are important from you would like us to consider at education@wsiada.com. the Stateâ€™s perspective.

16 | the Front Row | wsiada.com | November/December 2019

Dealer review of important items to remember as outlined in WAC 308-66-300 (A) Types of vehicle dealer licenses;

a. There are seven different dealer licenses. However, you can only apply for six. The Wholesale license has been grandfathered. Before you sell a vehicle (including trailers) you must have the applicable license. The only exceptions involve occasional trade ins outside your dealer category. Remember that occasional is 5 per year. Best Practice: If you take in more than a couple trades outside your license category, acquire for the license. b. Licenses 1) Retail Motor Vehicle Dealer allows for the retail or wholesale sale and purchase of cars, trucks and motor homes.

Continued: Dealer review of important items to remember as outlined in WAC 308-66-300 2) Wholesale Motor Vehicle is a grandfathered license category. Only Wholesale dealers as of 2012 can maintain a Wholesale license. 3) Manufactured home/traveltrailer dealer 4) Vessel Dealer 5) Miscellaneous Vehicle Dealer 6) Off-road vehicle dealer 7) Snowmobile dealer. (B) Regulatory agencies involved in the vehicle dealer industry; a. Federal Trade Commission - FTC b. Washington State Department of Licensing - DOL c. Washington State Department of Revenue - DOR d. Washington State Patrol e. Washington State Attorney General (C) Federal Trade Commission (FTC) regulations; a. The Used Car Rule governs the Buyers Guide. That is the primary FTC regulation governing Used Car Dealers. b. Both State and Federal laws govern the use of the Buyers Guide. c. Washington State has Implied Warranty of Merchantability in effect for every used vehicle sold by licensed dealers. The Implied Warranty of Merchantability affects a dealer’s ability to sell a car AS-IS. d. In the state of Washington, a dealer cannot sell a car “AS-IS” unless the customer specifically waives the Implied Warranty of Merchantability through one of the 3 approved forms. 1) Implied Warranty Negotiation Statement 2) Disclaimer of Warranty – long form 3) Disclaimer of Warranty – short form e. Two (2) different Buyers Guides are available. Both Guides are available in English and Spanish. If you do business in Spanish, include an English and Spanish Guide in every vehicle offered for sale. 1) AS-IS 2) Implied Warranties Only

f. A vehicle service contract sold or initials which are not clear by the dealer within 90 days and conspicuous and easily invalidates the Implied Warranty comprehended by persons waiver. other than those closely allied with the vehicle industry. g. If a vehicle is sold with a warranty, the warranty CANNOT 3) Advertising a “rebuilt vehicle” be removed from the vehicle. for sale, without clearly and For example, a dealer cannot conspicuously disclosing offer a vehicle with a 3 month “rebuilt” in the advertisement; 3000 miles limited warranty and 4) Selling a vehicle at a higher remove the warranty to sell the price than advertised, vehicle. regardless of trade-in BEST PRACTICE: If you plan to sell allowance; vehicles with a Vehicle Service 5) Advertising that “any written Contract, check the box on the price quote will be beaten,” Buyers Guide and do NOT waive the “any deal will be accepted,” implied warranty until the customer or that a dollar amount is rejects the Vehicle Service Contract. guaranteed on any “push, pull If the customer rejects, the VSC, or drag,” trade-in, or words to you can now have the customer that effect unless the dealer waive the Implied Warranty of can clearly show through the Merchantability and sell the car records of the dealership that AS-IS. such is the case; NOTE: Do not advertise your (E) Vehicle titling and registration, and vehicles “AS-IS” on your website use of the electronic vehicle permitting or in any of your advertising system; media. By advertising “AS-IS”, you are technically breaking the a. Used car dealers MUST use the law since you cannot sell “AS-IS” e-permitting system in WA without have the customer 1) Exceptions: waive the Implied Warranty of 1. New dealers trying to Merchantibility. understand the flow (D) Unlawful vehicle dealer activities. 2. Low volume dealers who Here are some of the more critical physically take the Title ones: paperwork to the sub-agent 3. The e-permitting system is a. Representations such as “one down and unavailable hundred percent financing” if the terms of the purchase or lease 4. The dealer’s internet involve more than one security connection is down. NOTE: agreement and payments if this happens frequently, to more than one financing consider another service institution provider. b. It shall be considered false, b. BEST PRACTICE: Dealers should deceptive or misleading, have enough paper forms and thereby unlawful, to in stock to run their business advertise with words, phrases, for 5 days without access or initials which are not clear to Department of Licensing and conspicuous and easily or Department of Revenue comprehended by persons other electronic systems. than those closely allied with the c. Dealers are responsible for vehicle industry. transferring the title on vehicles c. Examples of false, deceptive of they sell within 45 days of date of misleading advertising: sale. 1) Advertising a used vehicle for 1) Must have Title in possession sale that is not available at before a vehicle can be the time the advertisement is marketed and sold placed; 2) Must have new plates on the 2) It shall be considered false, vehicle within 45 days of date deceptive or misleading, of sale and thereby unlawful, to advertise with words, phrases,

CONTINUED NEXT PAGE

the Front Row | wsiada.com | November/December 2019 |

Continued: Dealer review of important items to remember as outlined in WAC 308-66-300 3) Can issue a second 45 temp if a dealer has paid of a lien, has proof of payment and has not received a release of interest from the financial institution. BEST PRACTICE: Notify the Department of Licensing if you issue a second 45-day temp. (F) Vehicle warranties; a. 3 types of warranty are recognized on the Buyers Guide 1) Manufacturer’s Warranty 2) Manufacturer’s Used Vehicle Warranty 3) Other Used Vehicle Warranties b. Warranties cannot be removed once offered on a vehicle for sale c. Dealers cannot charge for warranties. Vehicles offered with warranties can be offered at a higher priced than similar vehicles without warranties, but there is no specific price for the warranty. d. Dealers can offer extended warranties for an incremental price. e. Vehicle Service Contracts can be offered for sale for an incremental price. f. Extended warranties and Vehicle Service Contracts frequently refer to the same type of product although they are different. They are both offered as incremental to the vehicle sale. g. Both warranties and vehicle service contracts negate an implied warranty waiver.

BEST PRACTICE: Before checking any of the vehicle warranty box, confirm with the warrantor that the warranty is still in effect. Failure to confirm the status of the warranty might be the dealer in a position to cover warranty repairs. (G) Standard industry forms a. Typically, available from several different sources 1) Association, www.wsiada.com/ store 2) Department of Licensing, www. dol.wa.gov 3) Department of Revenue, www. dor.wa.gov 4) Dealer Management System b. Forms for every retail transaction 1) Vehicle Purchase Order 2) Title Application 3) Odometer Reassignment 4) Buyers Guide 5) Implied Warranty Negotiation if intending to sell the car “AS-IS” c. Other frequently used forms 1) Temporary Demonstration Agreement 2) Wholesale Agreement 3) Blue Cards (H) Trust accounts; a. Must have a trust account if: 1) You accept deposits 2) You accept consignments b. Funds must be deposited by the end of the second business day

18 | the Front Row | wsiada.com | November/December 2019

BEST PRACTICE: set up 3 checking accounts. Be careful when setting up the “trust” account. It is merely a checking account labeled “trust”. If you ask the bank to set up a “trust” account, they will set up a real estate trust account. Unnecessary expense and paperwork!! 1) Business – for normal business transactions 2) Trust – for deposits and proceeds from consignment sales 3) Tax – to hold sales tax receipts until owed to the State. (I) Selling vehicles on consignment; a. Economical source of inventory if you follow some simple steps 1) Inspect the vehicle like you would any other inventory acquisition 2) Match the consignor with the Title 3) Check the WA title against Contracted Plate Search 4) When it doubt, have the consignor acquire a Quick/ Super Title. 5) Hold a copy of the title during the consignment contract period. b. Every consignment vehicle must be covered by a consignment contract, this includes dealer to dealer consignments. c. Proceeds from a consignment sale must be deposited into the trust account by the end of the second business day.

Continued: Dealer review of important items to remember as outlined in WAC 308-66-300 d. Consignor must be paid within 10 days of the sale of the vehicle. e. Once a consignment contract is executed the vehicle should be treated like every other vehicle in the dealer’s “for sale” inventory. (J) Use of vehicle dealer plates; a. Primary Purpose – Vehicle Test drives b. Test drives require 1) Demonstration Agreement or Permit 2) Valid operator’s license 3) Insurance, preferably dealers AND operators 4) Dealer plate affixed to the rear of the vehicle 5) Employees must log dealer plate use. WSIADA offers a convenient log book. c. Other uses 1) Transport to and from 1. Exhibitions 2. Offsite sales 3. Repair facilities 4. Detail facilities 2) Periodic use by dealers, ownership team, spouses of each and employees. d. Other Operators and their requirements 1) Operators 1. Dealers, officers, managers members of the LLC 2. Spouses of the above 3. Employees 2) Requirements

1. Must use a blue card and dealer plate when operating dealer inventory 2. Must affix the Dealer plate to the rear of the vehicle 3. Must NOT use the vehicle as a personal driver 4. Must log the dealer plate usage. (K) Vehicle financing a. Options 1) Dealer financing – Buy Here Pay Here (BHPH) 2) 3rd party financing 1. Banks 2. Credit Unions b. New dealers typically need to be in business 2 years before banks will take the risk and extend credit to your customers. c. Requires an installment contract. If you use a simple Vehicle Purchase Order you are not providing the key elements you and customer need to complete a financed sale, such as monthly payment, interest rate, total of payments and interest rate. d. Dealers need to ensure that all the terms of the agreement are spelled out and understood by the customer. Both the customer and the dealer need to agree to the terms in writing. Yes, you both must sign the documentation. e. Advertising must be clear an unambiguous. If your 10-yearold child cannot understand

what you are trying to say, have them rewrite it so they CAN understand. Not really, just trying to make the point. f. Any dealer or bank financing a vehicle must be prepared to repossess the vehicle. g. Specific rules and regulations govern the repossession process and you may be forced to liquidate the asset after recovery, depending on what percent the customer has paid on the outstanding balance.

Wanting to downsize? Thinking of Retiring? Promote your dealership location with WSIADA Lot Leads! email LotLeads@wsiada.com for more information

the Front Row | wsiada.com | November/December 2019 |

Membership Updates Here are your latest colleagues to renew their WSIADA membership ...and we welcome to our newest members, highlighted below in bold red text.

Lakes Auto Sales Enterprise Rent-A-Car Juan & Family Auto Sales LLC Maple Valley Auto Sales Attwood Auto Wholesale Inc. Grand Sport Motors Curbside Motors.com V.L.S. LLC Complete Automotive, Inc Nob Hill Auto Sales Truckland Integrity Auto Center No 1 LLC Sunset Cars of Auburn Auto Outlet of Tacoma Home of The Car Guys The Trade Store & Affordable Car Rentals Paul Christensen Motor Co Tri-City Car Sales Mountain Loop Motorcars, Inc Puyallup RV The Other Guy’s Auto & Truck Center Auto Quest, Inc Central Leasing, Inc T.K. Auto Sales Pasco Auto Wrecking, Inc Crosspointe Autoplex Budget Rent-A-Car Port Angeles Pro Truck & Equipment Brush Prairie Auto Sales, LLC True’s Auto Plaza Vaqueros Auto Sales Mission Motors Inc Export Auto Sales, LLC Valley Truck and Equipment, Inc Automotive Specialties Auto Sales, Inc Avila’s Auto Sales, Inc All Pro Auto Sales LLC Vancouver Car Company Carson Cars Inc Top Auto Brokers LLC Washington Auto Finance, LLC Vista Auto Sales and Leasing, Inc All Star Motors Semper Fi Motors Wholesale Motors Tri-Cities Auto Remarketing Carson/Taylor Auto Search, LLC Cliff’s Cycle Center, Inc Memory Lane Motors Burkett’s Auto Sales Northwest Motorsport, Inc Absolute Mobility Center Route527 Motorsports, Inc Cats Exotics, Inc Park Avenue Auto Main Drag Auto Sales & Transport, LLC Sunrise Automobile Corp Cars R Us Excellent Choice Auto Sales Silver Collector Car Auctions, Inc Gold Key Motors Pacific Coast Auto Center Platinum Wholesale Autos, Inc Phil’s Auto Sales

The Auto Connection R-K Motors Corp Dave Barcelon’s Truck Town, Ltd Shoreline Family Auto Care & Sales Northend Truck Equipment, Inc. Chehalis Livestock Market Auburn Discount Auto Sales EZ Deals Auto Sales Inc A-Jacks Auto Services & Towing LLC Palomino’s Automotive, Inc Sport Motive Auto Sales Auburn-Kent Valley RV Washington State Motorcycle Sales LLC AWD Auto Sales LG Used Auto Sales First National Fleet and Lease, Inc Sea-Auto Sales Calligan Transportation Services Inc ShredSupply, Inc Randco Tanks Sunnyside Automotive Group LLC Randy’s Auto Sales Inc & Motorsports Austin’s Auto Sales Armadillo Auto Sales Auto Shoppers Friesen Motorsports Peters & Keatts Equipment, Inc. Snohomish Equipment Rental & Sale All Right Auto Sales Prestige Motors, Inc Inland Sales & Service Payless Auto Mart LLC Elite 1 Auto Sales LaBrosse Auto Sales Legend Auto Sales Inc Allwest Auto Remarketing Specialty Mobility High Mountain Horsepower Chad Chambers Auto Sales J & R Auto, LLC Low Auto Sales LLC V.I.P. Traders, LLC Bruce Kirkham’s Auto World, LLC Car Link Auto Sales Bidadoo Auctions Globe Motors Expo Auto LLC Prestige Auto Connection Pacific City Auto Sales Yakima Automotive & Collision Specialist LLC Davenport Motor Company Marquez Motors Osprey Equipment and Leasing, Inc. Bryson Sales & Service of Washington, Inc Northwest Recreational Liquidators, Inc. Ron’s Auto Sales Heaverlo NW, Inc Wiser Motors Carstars Auto Destination 3Six0 Motorsports LLC R & R Body and Paint Checkered Flag Motors

20 | the Front Row | wsiada.com | November/December 2019

Compass Point Auto Sales, LLC Cedardale Truck & Trailer Sales, LLC Auto Sales Spot Consumer Auto Liquidators Paisanos Chevrolane Auto Sales Yaktown Motors Binford Metals LLC Carr Big Toe Auto Salvage, Inc. 2 Way Auto Sales Livestream Auto Sales Best Line Motors LLC Flip It Auto Autostars Motor Group, Inc. Open Road Motorsports LKQ KC Truck Parts - Inland Empire Areli Motors LLC Pacific Point Auto Sales Econex Motorsports Hwy 20 Cars & Trucks Recon Ready Auto Sales Carmona Auto Sales Diesel Alliance Trucks 1st Choice Auto Sales Phoenix Motors Doggett Autobrokers Tacoma Autos LLC Rare Garage Auto L.L.C. GMD Motors LLC Simple Car Company Skyline Motors Auto Sales Gray Motors Hopkins Automotive Pascual Performance Autos, LLC A & E NW Motors, LLC USA Auto Sales Gus’s Used Auto Sales LLC Transition Auto Affordable Auto Sales & Detail Ideal Auto Sales Verdant Auto Sales LLC J And H Auto Sales Premier Motorsports The Shop Club Inc PJ Auto Sales L.L.P. Ed’s Transmission Exchange Bigfoot Auto LLC Vinturo Motors Piercy Motors Inc Seattle Auto Haus LLC Dare Britannia, LTD Stroh’s Automotive Services LLC Daily Deals Auto Sales Sundance RV Center Strom Auto Sales Allexi Motors LLC AT Sales LLC Carpenter’s Community Auto Group Vermilion Auto Brokers Nilson Motors Camex Auto LLC Spokane Auto Spa and Customs

READ AND RESPOND | November/December 2019 T

he WSIADA Read and Respond quiz allows the reader to earn 1 hour of continuing education credit toward the dealership’s required annual renewal. Payment options are available for members of the association and nonmembers also for notification to the Washington State Department of Licensing. A passing grade will be granted for scores of 80% or greater. If a passing grade is not granted, the reader may retake the quiz.

DEALERSHIP NAME CHECK:

Send your completed quiz to WSIADA... MAIL: 707 Auburn Way South; Auburn, WA 98002 FAX: 253-804-0844 EMAIL: education@wsiada.com

DEALER#

I HAVE READ AND UNDERSTAND THE DISCLAIMER ABOVE.

QUIZ TAKER’S NAME

POSITION

SIGNATURE

DATE

BUSINESS PHONE

CIRCLE THE CORRECT ANSWER. 1. Dealers are NOT responsible for transferring the title on Vehicles they sell by having the Title in possession before a vehicle can be marketed or sold A: TRUE B: FALSE 2. A trust account must be used with A: Accepting deposits

5. It is always best practice to complete your annually required 5 hours of Continuing Education FIRST before renewing anything else. A: TRUE

6. Reseller’s Permit issued by the Department of Revenue allows a dealer to buy anything without sales tax

B: FALSE 7. What is the best system to check

C: All of the above

against for Washington Titles? A: DOL Sub-Agents B: IVIPS C: Contracted Plate Search

contracts negate an implied warranty

D: Washington State Patrol

B: FALSE 4. The Retail Motor Vehicle Dealer license is one of how many types of vehicle dealer licenses in Washington State? A: 5 B: 6

8. Washington State has Implied Warranty of Merchantability. A: TRUE

the title on vehicles they sell within how

C: 7

B: 45 days

D: 9

C: 60 days D: 75 days

A: Low Volume dealers who physically take the Title paperwork to the sub-agent

C: The e-permitting system is down or unavailable. D: New dealers trying to understand the flow

F: None of the above

9. Dealers are responsible for transferring

A: 30 days

11. Used car dealers MUST use E-permitting system with certain exceptions

E: All of the above

B: FALSE

many days of date of sale

C: Standard industry forms signed

B: The dealer’s internet connection is down.

waiver A: TRUE

B: Dealer Plate affixed to the rear of the vehicle

D: Blue Card

A: TRUE

3. Some warranties and vehicle service

10. During Test Drives, its required to have a Demonstration Agreement or permit, valid operator’s license, insurance for both operator and dealer, logging the use of the dealers plate and what else? A: Operators original vehicle in parking lot

B: FALSE

B: Accepting Consignments

D: None of the Above

FAX

12. What is the primary purpose of a Dealers Plate? A: Periodic use by dealers B: Vehicle Test Drive C: Repair Facilities D: Exhibitions

the Front Row | wsiada.com | November/December 2019 |

READ AND RESPOND | continued 13. Once you have confirmed comple-

15. Which are the Standard industry forms

tion of your Continuing Education, you

required for every retail transaction?

must renew the following:

A: Vehicle Purchase Order

A: State Business License

B: Title Application

B: Vehicle Dealer License

C: Odometer Reassignment

C: Dealer Bond

D: Buyers Guide

D: Reseller permit

E: Implied Warranty Negotiation

E: All of the Above

F: All of the Above

F: None of the Above

G: None of the Above

14. Advertising a “rebuilt vehicle” for sale, without clarity and conspicuously disclosing “rebuilt” in the advertisement is an example of false, deceptive or misleading advertisement. A: TRUE B: FALSE

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.

Free from these App Stores:

Download the WSIADA App Today! Online shopping, news, alerts and our brand new Auction Savings Program! Access to auction inventories from across the country Special savings on Buy Fees at auction 22 | the Front Row | wsiada.com | November/December 2019

Washington State Independent Auto Dealers Association

Dealer Member Enrollment

YES! YES!

I know that it is important to be recognized as a professional in the automotive industry! 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, their affiliates and/or subsidiaries, my permission to contact me at the methods I have provided on this form until/unless I revoke that permission in writing. I hereby certify that (I am/we are) eligible for membership in WSIADA.

ENROLL: Member Name Business Name

Dealer No.

MEMBERSHIP CATEGORY:: Dealer Membership is [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] member must hold a vehicle dealer’s license issued by the Washington State Department of Licensing.

$450 Annual Charge (payable by debit/credit card or company check) $42 Monthly Charge (debit/credit card only; will be charged on the 1st of each month. Cancellation will require payment of full balance.)

Billing Address City

State

Business Phone

Mobile

Zip

County Fax

See reverse side of form for some of the many benefits of WSIADA membership!

PAYMENT METHOD:

CHECK No._______________ (Checks are not accepted for monthly membership payments) VISA

Discover

CARD NUMBER

NAME ON CARD

AMEX

EXPIRATION DATE

CARDHOLDER SIGNATURE

CCV

BILLING ZIP CODE

DISCLAIMER: Receipts will be emailed unless otherwise requested. This agreement will continue until/unless the card holder revokes consent in writing or cancels membership. At that point member will be billed for the remaining balance. If provided card is declined, WSIADA may continue to attempt to process payment(s) or request updated payment information. If payment is declined and no card update issued, dealer will be invoiced for remaining balance and access to WSIADA services will be suspended until balance is paid in full.

DELIVER TO:

WSIADA 707 Auburn Way South Auburn, WA 98002

FAX 253-804-0844

EMAIL(as an attachment) membership@wsiada.com

ENROLL ONLINE www.wsiada.com

the Front Row | wsiada.com | November/December 2019 |

JUST FOR FUN

24 | the Front Row | wsiada.com | November/December 2019

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

Download the WSIADA App Today! Online shopping, news, alerts and more!

Plus: our brand new Auction Savings Program...

• Access to auction inventories from across the country! • Special savings on Buy Fees at auction! • Easy to use!

Free from these App Stores:

For More Information Contact: WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION 707 Auburn Way South | Auburn, WA 98002 Phone 253-735-0267 | Fax 253-804-0844 staff@wsiada.com | WSIADA.COM

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• STEP 1 Download the WSIADA App • STEP 2 Respond to welcome email from SmartDealer • STEP 3 Create User Name and Password • STEP 4 Pick your discounts and save $$$ at checkout