WSIADA The Front Row MAY/JUNE 2017

The official publication of the Washington State Independent Auto Dealers Association

May/June 2017

Automobile Allergies A Sharp-Looking Front Line Leads to a Healthy Bottom Line

Employment Status W2 versus 1099 Woes

Remote Deliveries Proceed with Caution

PLUS...

A Third of U.S. Drivers Can’t Afford Unexpected Repair Bills

MAY/JUNE 2017

The official magazine of the

WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION

COVER STORY:

Allergy Relief for Dealerships Dusted with Pollen Fallout Page 8 707 Auburn Way South Auburn, WA 98002 T: 253-735-0267 | F: 253-804-0844 E: staff@wsiada.com WSIADA.COM Mo Aliabadi, Board President South Tacoma Auto Sales, Inc. mo@southtacomaauto.com Vacant, Board Vice President Emil Scarsella, Board Treasurer Town & Country Auto Sales e.scarsella@hotmail.com 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

contents 3 | President’s Message 4 | Events Calendar

Rachel Frankel, Chapter President – Vancouver Top Auto Brokers, LLC | topautobrokers.com

4 | Executive Director’s Message

Daniel Pizzarella, Chapter President – Tri Cities TriCities Auto Remarketing | dpizzarella@gmail.com

6 | New and Renewed Members

Vacant, Chapter President – Yakima

7 | Dealer Alert

Vacant, Chapter President – South Sound

8 | Cover Story

Vacant, Chapter President – Spokane WSIADA STAFF Todd C. Elliott, Executive Director Colette Eilers, Receivables/Payables Michael McGaughy, Spokane Auctions Rick Olson, Member Services Ashlie Seipert, Education Services

10 | Employee vs. Independent Contractor 11 | Auction Listing 12 | Movers and Shakers 15 | Proposed ByLaws Changes

PRODUCTION EDITOR

16 | Service Providers Directory

Sygnifi Networks wsiada@sygnifi.com Copyright 2017

17 | Caution: Remote Deliveries 19 | WSIADA Education Fairs 21 | Read and Respond 22 | Drivers Unable to Afford Repair Bills 23 | WSIADA Membership Enrollment Form 24 | Just for Fun

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â—?

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ADVERTISER INDEX

PRESIDENT’S MESSAGE

P

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

WSIADA: Our Mission

By Mo Aliabadi, President, South Tacoma Auto

Adesa Seattle . . . . . . . . . . . . . . . . . 4 AUL . . . . . . . . . . . . . . . . . . . . . . . . . 12

W

inter is now behind us and we are all looking forward to the longer and warmer days of Summer and the robust business days it brings us...

AutoZone . . . . . . . . . . . . Back Cover Benchmark . . . . . . . . . . . . . . . . . . . 15 Credit Acceptance . . . . . . . . . . . . 7 DAA Northwest . Inside Front Cover Griot’s Garage . . . . . . . . . . . . . . . . 9 LeMay, America’s Car Museum . 18

However, along with selling more cars come more regulations.

Lobel Financial . . . . . . . . . . . . . . . . 2

In today’s world we can’t afford to be caught unaware and out of compliance with the law; ignorance is no excuse. Day by day, the regulations are getting more specific and more detailed, and the consequences for noncompliance are becoming more severe than ever. Anymore, it feels as if you need a law degree to run a car dealership.

Manheim . . . . . . Inside Back Cover Paul Webb Training . . . . . . . . . . . . 14 Rekdal Hopkins Howard . . . . . . . . 13 Shepard & Shepard Insurance . . 11

At WSIADA, we understand the challenges our dealers encounter on a daily basis. We are always looking for ways to assist you in improving the health of your business and protecting your rights as small business owners.

Skywerks . . . . . . . . . . . . . . . . . . . . . 20

Our mission is to protect and to promote your business.

I invite you to get in touch with the Association Leadership regarding your challenges and to let us know the specific areas of education you need in order to stay in compliance with the laws of our industry.

As always, feel free to contact me (see below).

Thank you,

Mo Aliabadi (253) 208-8090 mo@southtacomaauto.com

TARGET YOUR ADVERTISING DOLLARS! REQUEST A WSIADA MEDIA KIT

253.735.0267

THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017 |

3

EXECUTIVE DIRECTOR’S MESSAGE

W

elcome to the 2017 Car Care Edition of the Front Row Magazine.

With this edition, we highlight one our newest Associate Member Sponsors, Tacoma based Griot’s Garage.

Events Calendar JUNE 29 9:00AM- 4:00PM Prelicensing Class @ HQ

JULY 10 10:00AM - 2:00PM Title Workshop @ HQ

JULY 18 ALL DAY, Eastern Ed Fair @ Airport Holiday Inn 1616 Windsor Drive, Spokane

JULY 27 9:00AM- 4:00PM Prelicensing Class @ HQ

AUGUST 3 10:00AM - 2:00PM Title Workshop @ HQ

AUGUST 17 ALL DAY, Western Ed Fair @ Lemay Museum 2702 East D Street, Tacoma

AUGUST 24 9:00AM- 5:00PM Prelicensing Class @ HQ

AUGUST 31 10:00AM - 2:00PM Title Workshop @ HQ

SEPTEMBER 12 9:00AM- 5:00PM Prelicensing Class @ Spokane

SEPTEMBER 21 9:00AM- 5:00PM Prelicensing Class @ HQ

SEPTEMBER 28 10:00AM - 2:00PM Title Workshop @ HQ

We invite you to explore their site and try some of their products. If you are not familiar with the Griot’s product line, we started carrying a limited inventory in our Auburn Store a couple months back.

While we tried to stay with the Car Care theme, we could not resist publishing other articles that are aimed to help you run a more compliant and profitable dealership. The articles we publish here and on WSIADA.com are intended to keep you on the “nice” list for the Department of Revenue, Department of Licensing and Attorney General.

Anyone who has participated in one of our recent classes knows that we aim to keep dealers on the “nice list” and off the “naughty” list. That is one of the reasons we are very excited to have leadership from the Department of Licensing, Department of Revenue and Attorney General’s office join as at our Eastern Education Fair in Spokane on July 18 and our Western Fair in Tacoma on August 17. Each of the participants will be giving a brief presentation followed by a spirited Q&A. This will be the second year that we have coordinated our

4 | THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017

Eastern Fair with Credit Acceptance during the week of the DAA Rock and Roll sale. If you join us this year, plan to stay for the entire day. Of course, you will want to buy some cars at the Rock and Roll Sale and enjoy the Lynyrd Skynyrd concert Wednesday night.

Our Western Fair will be held again at LeMay, America’s Auto Museum in Tacoma.

Plan to stay for the entire day, and don’t leave before we complete the Scavenger Hunt!!

We have been busy behind the scenes making changes to the infrastructure supporting WSIADA. In addition to the new website we launched a few weeks ago, we are putting the finishing touches on a new eCommerce platform. The platform does many things.

Improving the way you buy products from our website AND at each of our five store locations is one immediate benefit. We will also be able to substantially increase our product inventory.

Our new eEducation site will drastically streamline the education process. First, you will be able to take quizzes online. No more printing,

circling your answers and faxing the whole thing back to Ashlie. The new system will also allow us to build a curriculum, starting with a rewrite of our PreLicensing Class.

I have been promising that to my staff for a LONG, LONG time. The plan is to create modules which we can use to customize a dealership’s continuing education.

A new integrated email/ Customer Relationship Management system will allow us to do many new things, including communicate with our members via text.

which includes all the Auctions who are Members and who participate in our Auction Card program, so you will be able to see all the Auctions that will accept your Auction Discount Coupons.

Members, expect to receive an invitation from WSIADA to load the free smartphone app that will allow you to have all the new features of WSIADA. com and our new store site in the palm of your hand.

Finally, don’t forget to check out the Service Provider Directory if you need support from one of our many partners.

Finally, we are investing in All the best, a true wireless app so our members can have a very positive wireless experience.

We thought this was particularly important given Todd C. Elliott, WSIADA the way so many of you survive via your smartphone.

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

We welcome your feedback on all these changes and invite you to save WSIADA. com to your favorites. Please pay particular attention to our BLOG/Dealer Alerts page currently located in the Resources page. We will be using the BLOG/Dealer Alerts page to update you on timesensitive and timely news items. We will also use the BLOG/Dealer Alerts page to tip you off on RCW changes etc.

While you are on the site, you might also want to bookmark the Calendar page. You will find two important calendars on this page: First, you will find the WSIADA events calendar which will soon include classes and other events one year out.

In addition, you will find a new calendar under development THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017 |

5

WSIADA Membership We want to say Thank You! to the following dealerships for renewing their membership!

And a Warm Welcome! to our newest members, who are highlighted in bold red text.

DBA A Auto Sales Access Mobility Systems Adam Car Sales Inc AK Motors, LLC Allyn’s Specialty Cars Always Affordable Auto LLC A-Plus Auto Sales Auto Exchange Auto Place, Inc Autos Only Burien Auto Sales Autotrack Autowerx B & B Auto Repair & Sales B & B Enterprises, Inc Ball Auto Sales & Service, Inc. Baochang Wang Bayside Auto Sales BBL Auto Sales Bill Harris Used Cars, Inc Booker Auction Company Buy Here Pay Here, Inc C & V Auto Sales Calidad Autos Car Chaser’s, LLC Car Craft Auto Sales, Inc Car Link Used Auto Sales Car Mart Car Trends II, LLC Car Zone, LLC Car-Dawgs Carmax Carpapapa Auto Group LLC Cars Northwest

Chandler Auto Sales Classy Chassies Fine Used Cars Clearwater Auto Sales Coastal RV & Auto Sales Columbia Auto Center Consignment Sales & Lease D&M Auto Sales Dave’s Auto David Thomas (TBD) Del Toro Auto Sales Dick Hannah Dynasty Auto Sales Eastside Harley-Davidson Ehli Auctions EJ’s Cruisin’ Classics LLC Eldon Robbins Auto Sales, Inc Elite Auto Sales Elite Auto Source, LLC Emerald City Harley Davidson Engels Auto Sales Evergreen Sales And Lease, Inc E-Z Credit Auto Sales Fife Auto Repair & Sales Fife RV Center, Inc G&J Motorworks Garza’s Auto Repair Global Elite Motors Hall’s Auto Sales Harper’s Auto Sales LLC High Road Auto Sales Highland Auto Hill’s Auto & RV, LLC Hot Rod Alley Inc I-5 Motors

2017

AUCTION CARDS are here!

A $4700 Value!

Have you renewed your WSIADA membership?

6 | THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017

Impact Auto Sales, LLC Independence Auto Center Intergity Auto Center No 1 LLC Jennifer’s Greenacres Auto Sales John Clark Motors, Inc Johnson RV Kent Grand Auto Sales Kersey Mobility Systems Kim Eccleston’s Motors Inc Kirkland RV Sales Kitsap Auto Outlet Kitsap Used Cars Kleyn’s Auto Sales, Inc L & M Auto Sales Inc Life Auto Sale, Inc Lost and Found Classic Car Co Luque’s Auto Sales Maxwell Auto Sales MC Euro, LLC McMillan Brothers Auction, Inc Millennium Auto Sales Mills Motors LLC MNM Auto Modern Collision Rebuild & Service Morkar Auto Group Motion Autos MotoCycle Mt Si Motors Nelson Truck Equipment Co., Inc. Northwest Rides, Inc. OB-1 Car company Inc Olympic Auto Works, LLC Olympic Motors Omak Auto Plaza LLC

Open Road Motorsports Payless Auto Sales Penske Truck Leasing Co, LP Petroleum Solutions, Inc. PNW Dealers LLC Rainier Motorsports LLC Rick’s Kar Korner Rio’s Auto Sales Roosales Seattle Motors Seven Auto Sales Skyline Group, LLC Smokey Point Auto Sales Source Motor Sales, LLC Sun Auto, RV & Marine Sales, Inc Sunset Auto Wholesale Superior Motors Synergize Auto LLC Ted Motors Co The Car Connection The Crazy Cow Auto Sales The Family Auto Sales LLC Three Rivers Marine Tri-City Car Sales USA Auto Sales USA Auto Sales, Inc Valley Equipment and Truck Inc Wakefield Inc Walker Motor Works Washington Cedar & Supply Co Western AG Sales Western Auto Sales LLC

DEALER ALERTS

Wholesale License Set to Expire October 31, 2019

G

overnor Inslee signed 2. Negotiate an agreement HB 1722 into law, which with an existing retail dealer amended several RCWs to continue your wholesale including RCW 46.70.005. activities while working Here is the summary. for the retail dealership.

Confirm the agreement • Effective July 1, 2017, the with the DOL so they are Department of Licensing aware of the disposition of may not issue any new all the wholesalers. wholesale vehicle dealer

Of Note: Out of State Licensing Fee A $15 Out of State Fee is charged on vehicles coming to WA from another jurisdiction.

Reference: Stolen vehicle check fee RCW 46.17.120

licenses.

• Effective July 1, 2018, the DOL may not renew any wholesale vehicle dealer licenses.

• This section (the wholesale license) expires on October 31, 2019.

For those wholesale dealers who wish to stay engage in the business there are two options: 1. Acquire a retail license.

This is relatively simple and straightforward process.

Take the PreLicensing Class offered by WSIADA and notify the Department of Licensing of your desire to upgrade your license from wholesale to retail. The DOL will likely ask you to update your “place of business” and submit to a brief inspection once you have completed the transition.

You can call WSIADA or the DOL for more information.

THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017 |

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COVER STORY

A Sharp-Looking Front Line Leads to a Healthy Bottom Line

By Brandon Smith, National Sales Coordinator for Griot’s Garage

I

s there an allergy season for cars? While cars don’t have sneezing fits like we do, pollen wreaks havoc on vehicle paint and brings chaos to dealerships that want their lots lined with glistening models.

According to the Food and Agriculture Organization of the United Nations, the pollination period in the Northern Hemisphere is March through late May—so be ready.

It should be noted that pollen output is usually highest between 5 a.m. and 10 p.m.

Griot’s Garage is a homegrown car care manufacturer based in Tacoma, WA. Following a familiar all-American blueprint, Richard Griot started Griot’s Garage in his home garage in 1990 to share his passion for cars with other like-minded enthusiasts.

8 | THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017

The company formulates and produces its own liquid car care products in the U.S.A., and also sources unique, high-quality detailing accessories and garage gear from around the world.

At the height of pollination season a freshly washed vehicle can be dust covered before your lunch hour is up!

If you’re a dedicated dealership, a daily mist and wipe using Griot’s Garage Speed Shine® or Griot’s Best of Show® Detailer will allow you to stay on top of the pollen.

your lot, Best of Show Detailer is the way to go. It will flash off the surface quickly to prevent streaks or smudges, while adding big-league pop to the paint.”

While gentle cleaning is important, Sam Battersby, Griot’s Product Trainer, says there is more than cleaning in a quality detailer.

Be aware that the towel you use will be key. In fact, you should ponder the softness of anything that touches paint.

“Lubricity is also key to prevent swirls and scratches during the process,” says Sam. “Both Speed Shine and Best of Show Detailer have the proper lubricity built-in to prevent contributing to unsightly defects while removing pollen, light dirt, and dust.

“Best of Show Detailer takes it a step further and adds awesome color, depth and clarity to the paint finish, specifically on dark colors. If you’re working in a hot climate or direct sunlight on

exceed the capabilities of a spray-on detailer. It will require a product with greater cleaning and lubricity properties, such as Griot’s Garage Spray-On Car Wash. As with other Griot’s productions, application is the sa­me—just spray on the car liberally and wipe off.

Griot’s Garage does.

Our PFM line of premium microfiber towels feature an innovative long-loop terry weave that safely pulls light dust, dirt, and debris away from the surface. It is also incredibly absorbent—so you can wipe and buff with confidence.

If you go a few days or a week between touch-ups, the pollen dust and other environmental fallout will

The techniques and information outlined here are a great way to extend the time between full-tilt washing and detailing sessions, saving your dealership valuable time and money, while keeping your front line vehicles looking their best.

Because well-groomed front row attracts customers like an open flame attracts moths.

Griot’s Garage offers an extensive wholesale program for dealerships so that you can service your inventory and sell car-care products directly to your customers.

Brandon Smith is the National Sales Coordinator at Griot’s Garage, a Tacoma, Washington-based car care product manufacturer.

He can be reached at (888) 345-4466 or bsmith@griotsgarage.com.

THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017 |

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CAR CARE FOR YOUR EMPLOYEES

Employment Status?

Er...It’s Complicated

By Todd Shepard, Owner, Shepard & Shephard Insurance

A

s an insurance broker, I’m challenged to collect an employee census from our clients on a regular basis. Most of the time the list consists of ‘W-2’ employees, but it’s not uncommon to see an ‘independent Contractor’ or ‘1099 Worker’ on the list.

I get it. With all the expense related to actually hiring and paying an employee, such as SSI, Workers Comp and Unemployment, it can be enticing to use an independent contractor and keep more dealership money in the bank. Besides—the worker doesn’t like all those withholdings subtracted from his paycheck each month, so everyone is happy, right?

Form S-88 Determination of Worker Status for Purpose of Federal Taxes— just Google “IRS Form S-88”.

So, once the tax classification is resolved all’s good, right? Not so fast. There are other exposures worth considering before bringing on an Independent Contractor:

Well, not everyone...the IRS is only happy if they receive what they have coming.

There are three basic criteria for determining the difference betwee who qualifies as a 1099 Independent Contractor and who must be classified as a W-2 Employee: Behavioral Does the dealership control or have the right to control what the worker does and how the worker does the job?

Financial Does the dealership determine how the worker is paid? Are expenses reimbursed? Are tools or supplies provided by the dealership or the worker?

Type of Relationship Are there written contracts or employee type benefits made available? Is the work performed a key aspect of the business?

The safest way to determine if the worker is an employee or independent contractor is to submit an IRS

Insurance Does your dealership insurance policy afford coverage for independent contractors? Some do, most don’t.

If unsure, ask your insurance agent or broker. But even if your carrier includes Independents, there are certain coverages that, by law, are NOT available to them: Workers Comp If an Independent Contractor is injured on the job, he or she is on the hook for personal medical expenses. A Contractor’s actions are considered to be those of a different business; therefore, any personal

10 | THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017

on-the-job injury is their full financial responsibility.

Auto-Related Accidents If your Contractors drive a company vehicle, have they provided proof numerous insurance coverages?

Realize that a Contractor is no different than the mechanic or body shop down the street—an independent entity that should carry a business license, insurance policies and bond where applicable.

But what about their personal automotive insurance? Forget about it—the moment the independent contractor engages in driving for hire, their personal policy is no longer in force. If the Contractor causes an accident while operating your vehicle, the liability will likely fall back to your dealership policy. Once your carrier pays the claim they may choose to subrogate or seek reimbursement from the independent contractor individually.

I’m quite certain the majority of Independent Contractors have no idea the level of exposure they put themselves in (with your help).

Before utilizing an Independent Contractor, I suggest taking time to review the benefits versus the costs.

If you already have Independent Contractors on the payroll, it may be worth a review of your practices. Check with the IRS to determine compliance, and visit with your insurance agent to find out what, if any, coverage is afforded.

Washington State Independent Auto Dealers Association

Membership Benefits • Legislative updates

• Dealer advocacy

• Legal support program

• Dealer hotline

• Convenient billing

• 10% off most WSIADA services and products

• Regional continuing education opportunities

• Exclusive invitation to annual education fairs

• Subscription to the Front Row magazine

oac)

$200. ( RTING AT

TA BONDS S

& d r a hep

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COMPETITIVE RATES

Thursday Night: InOp Sale 4:45PM

Adesa | Portland adesa.com/portland 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)

ition 1st ed

d r a p She

6-0488

855-39

Shopping for Dealership Insurance?

Request a Complimentary copy of

Insuring Your Dealership Send Your Name, Dealership Name, and Address To: info@shepquote.com

Shepard & Shepard Insurance “We wrote the book on dealer Insurance!”

855-396-0488

Adesa | adesa.com/seattle Alternate Tuesday: Specialty 8:30AM

Protect your own interest and support the auto industry in Washington State. See the membership enrollment form on page 23 and join WSIADA today!

EXCLUSIVE MARKETS

For a current calendar view, visit WSIADA.com and select “Calendar” from the top navigation menu.

Tuesday: Consignment 9:30AM

• Auction discount cards

DEALER INSURANCE

AUCTION LISTING

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. EXCEPTION: July 20-21

DAA Northwest Rock & Roll Sale –

Wednesday at 9:00am & Thursday

at 9:00am; Monthly MotorSports auctions:

Thursdays at 11:00am (Lane 8)

EXCEPTION: July 20

DAA Northwest Rock & Roll Sale –

Wednesday at 9:00am; 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 | MAY/JUNE 2017 |

11

MOVERS AND SHAKERS

Manheim Promotes Three to GM

M

anheim announced the promotion of three experienced leaders to general manager roles: Dave Rathjens at Manheim Lakeland, Greg Milam at Manheim Seattle and Martin Sandoval at Manheim Central California.

“Manheim has a strong track record of developing our team members into leaders, and we’re fortunate to have these pros as new general managers,” said Julie Picard, regional vice president, national West, at Manheim. “Dave, Greg and Martin have shown a deep commitment to serving our clients, and we are confident that they will enhance the ways their locations help our clients become more profitable.”

Martin Sandoval joined Cox Automotive in 2013. He was most recently a regional account executive for NextGear Capital, and prior to that, he was vice president of operations and director of auto finance at Zinc Financial. Earlier in his career, he held various leadership roles in financial services, sales operations and automotive manufacturing.

Dave Rathjens began his career at Manheim in 1999 as an inspections manager. He most recently served as assistant general manager at Manheim Tampa. Through the years, he has held various roles at Manheim Ohio and Manheim Kansas City including vehicle entry manager, body shop manager, repo/lease manager, recon manager and operations manager.

Greg Milam has held several Cox Automotive leadership roles for the past 18 years. He started his career with the company’s finance division and has since held various roles with the organization. Most recently, he was director of Mobile Auction Sales and Operations, where he leveraged his strength in client relationships and operations to grow mobile sales volume by 16% yearoveryear.

12 | THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017

“Their significant automotive experience, leadership skills and knowledge will be of great value to our clients and team members,” added Tim Janego, regional vice president, Local East at Manheim. “We’re looking forward to the results they will drive at their locations.” © 2017 F&I and Showroom. Used with permission.

Save the Dates

5

Ed ing h c tinu Con dits Ea Cre

JULY

18

In conjunction with DAA Northwestʼs 22nd Annual Rock & Roll Sale

AUGUST

17

2017 WSIADA EDUCATION FAIRS

THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017 |

13

14 | THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017

ASSOCIATION ORDER OF BUSINESS

ByLaws Change Recommendations

T

he recommendation is designed to give the Board more flexibility to add Board Members who can commit to monthly meetings in Auburn. According to the By Laws, changes need to be posted 60 days before a Member Meeting.

At the Member meeting, 1% of the outstanding membership can change the By Laws. Based on our current membership, a quorum of 7 members is necessary to make a change.

Current plans are to vote on this change at the July Board Meeting in Spokane.

ARTICLE V WSIADA MANAGEMENT SECTION1. The business and property of WSIADA shall be managed by a Board of Directors. A director of the Association who is present at a meeting of the Board of Directors at which action on any association matter is taken, shall be presumed to have assented to the action taken unless his/her dissent shall be entered in the minutes of the meeting, or unless he/she shall file his/her written dissent to such action with the person acting as the secretary of the meeting before the adjournment thereof or shall forward such dissent by registered mail to the secretary of the Association immediately after the adjournment of the meeting. Such right to dissent shall not apply to a director who voted in favor of such action.

be nominated and elected to this position by a majority of the current Board of Directors. In the event no such Past State President is willing or able to serve, the Chairperson shall be elected from the general membership of the WSIADA. A Chairperson Emeritus of the Board should be the immediate Past State Chairperson if she/he is willing and able to serve in this capacity. She/ he must be elected to the position by the majority of the current Board of Directors. This position shall be limited to two (2) chairs.

The President and the immediate Past Presidents from the preceding three (3) years if willing and able to serve. All local chapters shall have one (1) director, normally the President or his designee. All officers

and directors shall have equal voting rights.

The Board of Directors shall be convened at the President’s request, normal once each quarter, by giving 10 days notice of said meeting.

NEW SECTION: The Board of Directors may add “at large” Board Members as necessary to meet the sustainability requirements of the Board while introducing new talent and ideas into the State Board. To have a sustainable Board, there must be at least 10 members with a mix of new and veteran members.

“At large” members must be Full Members in good standing and be approved unanimously by current State Board Members.

A. The Board of Directors shall consist of the following: A Chairperson of the Board should be the immediate Past State President if he/she is willing and able to serve in this capacity. In addition to being willing and able to serve in this capacity, he/she must be elected to the position by the majority of the current Board of Directors. In the event the Past President is not willing or able to serve, or is not elected, a prior Past State President may THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017 |

15

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 he Front Row magazine.

Accounting Services Rekdal Hopkins Howard (425) 658-1400 rh2cpas.com

Please see our ad on page 13

Auctions Adesa Seattle

(253) 735-1600 adesa.com/Seattle

Commercial Insurance The F&I Group, LLC (360) 710-9545 and Bonds thefandigroup.com Hecht & Hecht Insurance (800) 609-0979 hectins.com

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

Please see our ad on page 11

Please see our ad on page 4

Adesa Portland

(503) 492-9200 adesa.com/Portland

Customer Relationship Management Systems ProMax Unlimited

Copart Auto Auction

(360) 789-7486 promaxunlimited.com

DAA Northwest

Dealer Management Systems

(253) 847-8300 copart.com (509) 244-4500 daanw.com

Please see our ad on the inside front cover

DAA Seattle

(253) 737-2200 daaseattle.com

Skywerks

(206) 999-6699 skywerks.com Please see our ad on page 20

Carousel Software

(253) 572-0990 ehliauctions.com

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

Kaman Auctions

Frazer Computing, Inc.

Ehli Auctions

(425) 640-5111 kamanauctions.com

Manheim Portland

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

(503) 286-3000 manheim.com

Finance and Insurance

Manheim Seattle

AUL Corp

NW Dealer Financial Services

Western Fidelity Insured Services, Inc.

(253) 779-8490 Lemaymuseum.org

(425) 283-4158 wfisinc.com

Floor Plan Companies Floor Plan Xpress (509) 703-6558 fpxus.com

Nextgear Capital

(855) 372-2329 nextgearcapital.com

Identity Theft & Data Breach Protection IdentityMaxx Robin May (253) 653-9911

Legal Services (253) 620-1500 dpearson.com

LegalShield

253 905-9111 legalshield.com

Lending

Please see our ad on page 12

Car Care

(206) 696-2264 dpccorp.net

Please see our ad on page 7

Griot’s Garage

Please see our ad on page 15

(253) 839-2600 lobelfinancial.com

Please see our ad on page 9

Linda Jensen (360) 908-0612

16 | THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017

LeMay Car Museum

Please see our ad on page 18

Parts & Service AutoZone

(866) 727-5317 sc53@autozone.com Please see our ad on the back cover

Sales Training Paul Webb Training

(949) 632-3734 PaulWebbTraining.com Please see our ad on page 14

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

Davies Pearson, P.C.

Please see our ad on the inside back cover.

Coastal Financial

(206) 728-8249 kiro7.com

Museum

(800) 826-3207 aulcorp.com

(253) 922-2200 griotsgarage.com

Kiro7

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

(206) 762-1600 manheim.com

Benchmark Dealer Services

Marketing

Credit Acceptance

(253) 279-3260 creditacceptance.com

Lobel Financial Corp.

Please see our ad on page 2

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

DEALER INFORMATION & IDEA EXCHANGE

Remote Deliveries: Proceed With Caution

By Gil Van Over, Compliance Guru

T

he digital evolution is not necessarily an overnight event. In fact, I recall working on a laser printing and digital solution for dealers in the early ’90s.

Like the revamping of many processes, there were some roadblocks to clear. But that didn’t stop progress, did it?

For several great reasons, the industry is moving into the digital world.

Even with the advantages this shift brings, some risks have also amplified.

Going digital also means clearing some roadblocks for identity thieves, potentially making it easier to steal a victim’s identity and your inventory.

Out-of-area deliveries are an excellent example.

An outofarea delivery is any transaction in which the customer lives outside the dealer’s geographic footprint. Some ID theft cases involved customers who visited a dealership a few states away from the victim’s residence with manufactured identity and stips. In other cases, the ID thief conducted the entire transaction by phone and internet and the vehicle was shipped.

When you dissect an identity theft case, you will likely find some signs which, if investigated, may have prevented the crime. If the customer lives outside your market, has never done business with you before, and never steps foot in the dealership, proceed with caution.

Your outofarea delivery process should be a separate and distinct part of your sales and F&I policy manual. It should include the following steps: 1. Obtain and vet the credit app: The credit application is one of the first signals of an outofarea delivery.

When the customer’s address is outside the dealer’s geographic footprint, immediately start the vetting process.

You might ask why the customer is trying to purchase from you—par-

ticularly if the vehicle is a model you have a 100 day supply of. Check whether the customer has done business with you before. Pull up a satellite image of the residence address.

Be careful if you find a warehouse or a campground.

2. Vet the identity provided: You are familiar with the IDs generated from your state and maybe even neighboring states. You may not be so familiar with a state ID or driver’s license from another region.

Use a search engine to view images of valid state IDs and licenses and review the ID against the images in the National Automobile Dealers Association (NADA)’s Title and License Guidebook.

Finally, ask for a second photo ID, and confirm that the wear and tear on both IDs are consistent with their age. If the ID was issued three years ago and appears brand new, watch out.

3. Complete the Red Flags review: Most dealers today use an automated process to conduct the bulk of their federally mandated Red Flags review. With authorization to pull a credit report in hand, run the review.

If there are any Red Flags, proceed with your clearing process and retain your documentation.

Use the available outofwallet questions as an added precaution, particularly if the customer is not and will not be in the dealership. Some dealers have started leveraging the ability to Facetime with the customer as another approach to verify the customer’s appearance visàvis the identity provided.

4. Complete the paperwork: For those customers to whom you have decided to ship the paperwork, you should seriously consider using available services that will send a notary to the customer’s residence to complete the signing of all paperwork. Alternatively, send the paperwork to the address on the credit application with delivery signature required.

Note every spot the customer is to sign and require the signatures be notarized.

5. Deliver the vehicle Many of the outofarea deliveries that became identity theft cases have a common thread: The thief called the driver of the shipping company and had the delivery diverted to an alternative address. Make certain to get it in writing that the shipping company is to contact you if such a request is made before continuing with the delivery.

Taking some of these precautions can help to avoid some of the angst of identity theft. Good luck and good selling!

Gil Van Over is executive director of Automotive Compliance Education (ACE) and founder and president of gvo3 & Associates. Email him at gvo@bobit.com.

Copyright © 2017 F&I and Showroom.

Used with Permission.

THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017 |

17

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

RESERVE TODAY Contact the Private Event & Sales Coordinator at rsvp@americascarmuseum.org 2702 East D Street Tacoma, WA 98421 | 253.779.8490 | americascarmuseum.org

18 | THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017

Washington State Independent Auto Dealers Association

2017 Education Fairs Attending one of WSIADA’s 2017 Education Fairs will satisfy dealers’ annual continuing education requirement for license renewal. The discounted pricing listed below is available for applications received or postmarked by August 1st, 2017.

STEP 1: SELECT 07/18/2017, Airport Holiday Inn, 1616 Windsor Drive, Spokane 08/17/2017, Lemay, America ‘s Car Museum, 2702 East D Street, Tacoma

STEP 2: REGISTER DEALERSHIP NAME

DEALER#

AUTHORIZED SIGNATURE (IF DIFFERENT THAN CARDHOLDER)

NAME PRINTED

BUSINESS PHONE

FAX

DATE

ATTENDEES (USE ADDITIONAL FORM IF NEEDED)

EMAIL ADDRESS

STEP 3: PAY Non-Member Price: $150 $125 per attendee VISA

MC

AMEXcheck

Member Price: $50 $25 per attendee

CHECK No.___________

CARD NUMBER

NAME ON CARD

EXPIRATION DATE

CARDHOLDER SIGNATURE

CCV

BILLING ZIP CODE

STEP 4: SEND 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 | MAY/JUNE 2017 |

19

20 | THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017

READ AND RESPOND | MAY/JUNE 2017 The Front Row

T

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#

$50 PAYMENT IS INCLOSED

I ALREADY PAID

QUIZ TAKER’S NAME

POSITION

SIGNATURE

DATE

CIRCLE THE CORRECT ANSWER. 1. According to AAA, the average repair bill can set a driver back up to $600 but could soar if a vehicle isn’t well maintained?

TRUE FALSE 2. What are some of the opportunities that Lobel Financial offers dealers for Auto Financing?

Select all that apply. (Dealer Market Place Ad) a. Point of Sale purchasing b. Instant approvals 24/7 availability c. Prime to Sub-Prime Auto Financing d. ACH funding available 3. During allergy seasons, pollen wreaks havoc with the paint of all cars damaging their shine. ​TRUE FALSE 4. An Out-of-Area delivery transaction is any transaction in which the customer lives inside the dealer’s geographical footprint.

FALSE

FAX

I HAVE READ AND UNDERSTAND THE DISCLAIMER ABOVE.

CHECK ALL THAT APPLY:

TRUE

BUSINESS PHONE

PAYMENT IS INCLUDED IN MY MEMBERSHIP

EMAIL

​ . ​WSIADA infrastructure has been changing 5 to better support dealers. What are some of the upcoming changes? Select all that apply.

(Executive Director Article) a. New online education curriculum b. Online and Auction ordering improvements

8. What are the ways to identify a potential case of Identity theft? Select all that apply. a. Vet the credit application b. Vet the identity provided c. Complete the Red Flags review

c. New integrated Customer Relationship Management system

d. Complete the Paperwork

d. A new location and staff

e. Deliver the vehicle

6. Griot’s Garage, located in Tacoma Washington, offers what kinds of services? Select all that apply. (Griots Care Car Article) a. Car care products

9. Who should you contact regarding challenges dealers are facing in your area? a. Department of Licensing

b. Events Center c. Car Museum

b. Department of Revenue

d. Detailing Service for Dealers.

c. WA State Patrol

7. Leadership from the DOL, DOR, and the State Attorney General’s office will be attending both East and West Education Fairs in 2017.

Where and what date are they scheduled? a. July 4 (Tacoma Dome)/August 10 (Gonzaga)

d. WSIADA leadership 10. What new feature on the WSIADA website will be a useful resource for dealers concerning RCW changes?

b. July 18 (DAA NW)/August 17 (LeMay’s in Tacoma)

a. Service Provider page

c. August 25 (Safeco)/September 5 (Hilton Garden)

b. Auction Calendar page

d. September 8 (DAA NW)/August 17 (LeMay’s in Tacoma)

c. Education registration d. Blog/Dealer Alerts page

THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017 |

21

READ AND RESPOND | continued 11. Legal Shield offers what kind of service to car dealers?

14. Our mission is to ________ and ________ your business. Fill in the blanks.

a. Accounting Services

a. Instruct, increase

b. Identity Theft Protection

b. Help, grow

c. Legal Services d. Dealer Management Service 12. Who is the newest Associate Member Sponsor to join WSIADA? a. Griot’s Garage b. Safelite Auto Glass c. NAPA Auto Parts d. Goodyear Tires 13. What criteria determines qualification for a 1099 Independent Contractor? Select all that apply. (Shephard & Shep Article) a. Type of relationship b. Gender

17. What are the options for existing wholesale dealers? Select all that apply. a. Negotiate an agreement with an existing dealer

c. Protect, promote

b. Pay a higher fee to maintain the whole-

d. Conquer, take over

sale license

15. Identity thieves tend to call the driver of the shipping company to divert delivery to an alternate address instead of delivering to original address? (F&I Showroom Remote Deliveries)

c. Contact the DOL and plead your case d. Acquire a retail license 18. According to WSIADA By Laws, changes

a. TRUE

need to be posted _______ days before a

b. FALSE

Member Meeting.

16. At the height of pollination season, a freshly washed vehicle can have a coating of pollen on it by a person’s lunch hour. What product is recommended to keep your paint protected from pollen? a. Car Duster

a. 90 b. 30 c. 100 d. 60

b. Griot’s Garage Speed Shine

c. Behavior

c. Plain white rag

d. Financial

d. Running through car wash again

One-In-Three U.S. Drivers Can’t Afford Unexpected Repair

A

ccording to a new survey by the American Automobile Association, sixty-four million U.S. drivers would not be able to pay for an unexpected vehicle repair without going into debt, indicating that some drivers may underestimate the full cost of owning and operating a vehicle.

The average repair bill, according to AAA, can set a driver back around $600, but costs can soar if a vehicle isn’t well maintained. And according to a separate AAA survey, one-third of U.S drivers skip or delay recommended services or repairs, which increases the likelihood of unexpected mechanical failures and roadside breakdowns. Last year, AAA responded to nearly 32 million stranded motorists.

“The average cost of owning and operating a vehicle is more than $8,500 a year, and AAA has found that millions of Americans are failing to set aside a car care fund to pay for the upkeep of their vehicles,” said John Nielsen, AAA’s manag-

22 | THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017

ing director of automotive engineering and repair. “To avoid a surprise down the road, drivers should budget for monthly payments, insurance premiums, fuel costs and the inevitable expenses of routine maintenance and repair.” © 2017 Auto Dealer Today. Used by Permission.

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 dealer’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

Email

Full Name

Position

Mobile

Email

Full Name

Position

Mobile

Email

SEAL DUES PAID

$

VISA

MC

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 | MAY/JUNE 2017 |

23

JUST FOR FUN

B

efore the days of big painting machines, the Highway Department hired a man to paint lines on a newly paved stretch of road. Halfway through his first week, the supervisor reviewed his work.

“Well, you got off to a great start...Monday you painted three miles of center line, and Tuesday you painted two miles. But today you only painted one mile.

What’s going on?” the supervisor asked.

“Well,” the new employee replied, “I kept getting farther away from the bucket of paint!”

24 | THE FRONT ROW | WSIADA.COM | MAY/JUNE 2017

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

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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.