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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Lobel Financial is a member of NIADA
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 |
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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
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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 |
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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?
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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.
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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.
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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.
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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
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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
S
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 |
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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.
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“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
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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 |
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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
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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 |
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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
. 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
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
Full Name
Position
Mobile
Full Name
Position
Mobile
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
ALL THE TOOLS TO BUILD YOUR SERVICE DRIVE PARTS AND SERVICES • • • •
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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.