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A U T O
March 17, 2008
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S H O P P E R
Used Car News Mailed This Issue: 70,000 New And Used Car Dealers
By Jeffrey Bellant The Arizona Independent Automobile Dealers issued its concerns to the state over proposed changes to the state’s emissions rules. Arizona is the 18th state to
adopt, or announce plans to adopt, California’s Low Emission Vehicle program. In January, the state’s Department of Environmental Quality issued draft rules to cut greenhouse gas emissions through a proposed Clean Car Standard follow-
ing the California program. Charity Crawford, Arizona IADA’s executive director, wrote a white paper on behalf of the group expressing the association’s opposition to certain parts of the DEQ’s proposed rules. “The proposed Clean Car
REMARKETERS FOCUS
By Jim Stickford Used Car News Staff Writer
Find out the latest news from the nation’s remarketing companies. PAGE 28
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Photo courtesy the Associated Press
HOT ISSUE: Dennis Romero, a Hispanic activist, stands at the car lot where he works as a salesman
in Wichita, Kan. The Hispanic activist returned to Mexico to join his deported wife and their daughter.
Legal, Economic Changes Cool Car Sales to Hispanic Buyers By Jeffrey Bellant Used Car News Staff Writer
A 2007 Dodge Caliber with 20,554 miles wholesales for $10,378.
Standard appears to have good merit at face value,” Crawford stated. “There is no doubt that the proposed rule will initiate some needed changes in the motor vehicle industry.” However, she criticized two sections of the proposed
Rush - Dated Material
Factors ranging from immigration reform to the housing slump have dampened used-car sales to the Hispanic market. Mauricio Espinosa, president and CEO of automotive consultancy G20 Inc., confirmed sales to Hispanics are down. Espinosa, whose Kansasbased company also has an office in Mexico, said there are several reasons, but all are related to the unsettled issue over illegal immigrants. One of the reasons is pressure from the REAL ID Act of 2005, Espinosa said. The law was created to “enhance the security and integrity” of state-issued driver’s licenses. The Department of Homeland Security said states
have until 2011 to create licenses with minimum standards that would pass federal requirements. States could opt out and issue non-compliant driver’s licenses to residents, but those licenses would not serve as valid identification for commercial flights and other federal purposes. Although many states haven’t yet implemented the rules, several states have cracked down on the issuance of driver’s licenses to illegal aliens. Prior to 2007, North Carolina allowed residents with Mexican driver’s licenses to obtain state driver’s licenses. Now the state enforces a rule requiring a valid Social Security number for obtaining a driver’s license. Jody Midgette, owner of Midgette Auto Sales in Harbinger, N.C., saw a huge effect on the dealership’s
rule that would affect hundreds of independents. “Our primary concerns surround the changes to the definition of a new vehicle,” she stated, “and the seemingly out-of-place definition of the delivery of vehicles.” Continued on page 36
Web Site Names Bring Lawsuit
Impacto de Auto
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AuctionAccess upgraded its services but at a cost to dealers.
$3.00
Independents Oppose Emissions Rules Used Car News Staff Writer
Dealer must use caution in selecting a GPS or starter interrupt provider.
A U C T I O N
sales to Hispanics. “Prior to the change, we used to do 15 percent to 20 percent of our business with Hispanics,” he said. “In 2007, we did less than 5 percent.” In January, South Carolina also introduced legislation requiring a valid state driver’s license to register a vehicle. Georgia passed a similar law in 2007. It requires customers to provide a valid Georgia driver’s license or state identification card when initially registering an individual’s vehicle. All this has had an effect on immigrants’ buying behavior, Espinosa said. Last fall, when the debate over a federal immigration bill was in full swing, Arizona dealers reported a decline in sales among their Hispanic buyers. Continued on page 43
Finance Express has sued Nowcom Corp. for trademark infringement. Finance Express founder David L. Huber said the lawsuit resulted from actions taken by Nowcom after Manheim sold Finance Express its Tracker DMS system in May 2007. “Before the month was out, Nowcom created 15 different Web sites to confuse dealers who had been using Tracker to switch to Nowcom and leave the Tracker system now located at Finance Express,” Huber said. This technique is called “cyber-squatting.” Nowcom also issued a press release that made it appear it was working with Finance Express and that the two companies were encouraging dealers to go to one of the Nowcom Web pages. Huber said the press release contained phrases such as: “It was announced on May 24th that Finance Express, which operates the first online auto finance platform specifically designed for the independent automotive used-car dealer, has bought Manheim Track Dealer Management System. Although the Tracker product will no longer be offered for sale, Finance Express will provide technical support through the end of the year to used-car dealers.” Huber said the press release further stated auto dealers were unhappy with the high price they would be paying after the acquisition and because they “seem to prefer a non Web-based dealer software solution on which they could manage
their used-car dealership.” Huber said the press release went on to state that used-car dealer software providers are trying to “convert these unhappy used-car dealers” from Tracker DMS to their products. He said the press release told people how to convert from Manheim Tracker by directing them to www.nowcom.com/migrate. Then it stated “Finance Express provides online services and Web-based technology for the independent dealer market. The program provides used-car dealers online access to an end-to-end solution and safe and secure environment for participating lenders.” The release then told those interested in learning more about Finance Express to visit financeexpress.com, Huber said. He said his company went to court over the press release and the 15 Web sites. “We first asked for a cease-and-desist order,” Huber said. “The judge ordered the release and sites to never see the light of day again. Nowcom’s response was that they would close down the sites. “But a month later, we found 14 more sites. ” Huber said the judge then set an expedited discovery schedule. The case is now in the deposition stage. “When (the judge) asked for a reason behind the press release, the only answer he got was that Nowcom wanted to help with the transition,” Huber said. “Who said we needed ‘help’ with the transition?” Maricio Acevedo, marketing manager for Nowcom, declined to comment about legal matters.