www.usedcarnews.com
March 19, 2012
Two States Pass Dealer Education By Jeffrey Bellant
Rush - Dated Material
A pair of state Independent Automobile Dealers Associations succeeded in increasing the education requirements for their states. The Ohio Independent Automobile Dealers Association managed to get a bill requiring that new applicants seeking a used-vehicle dealer license must complete a mandatory education program. Ohio IADA executive director Jim Mitchell said if the bill passes, Ohio would become the 20th state to adopt this type of legislation. The bill still has to be discussed and voted on by the state House, but it had strong support in the Senate, Mitchell said. “This bill has successfully passed the Senate by a 33-to-0 vote and is (at press time) in the House awaiting a second hearing for
testimony.” Under the bill, the applicant for a dealer license must provide proof he completed the training within six months before applying for the license, according to an analysis by the Ohio Legislative Service Commission. The Motor Vehicle Dealers Licensing Board would adopt rules governing the used motor vehicle dealer training course that would be required. The analysis also states the courses must be taught File photo by “an institution of highSO LONG, SAAB: Saab Cars North America President Michael Colleran, right, celebrates the opener learning or a relevant ing of SCNA’s new headquarters with local and international dignitaries in better days. professional or trade association that has been in existence for more than five years and has a majority of Saab Values Drop as Brand Fades members” who are licensed Saab residual values have fallen about as much as they’re going, experts predict. in Ohio. The nameplate has seen a steady decline as it moves toward bankruptcy without The course must be at hope of a bailout. ALG’s Statistical Brand Value analysis shows a monumental collapse least six hours, but no more of the brand’s weight with consumers. than 24 hours, and must esIn 2001 Saabs commanded a premium of more than 20 percent compared to the tablish reasonable fees for industry average. In 2011, they had to make up a 20 percent brand deficit. the course. Ricky Beggs, editor of value guide Black Book, said Saab’s wholesale prices fell at a Mitchell said the Ohio rate more than double of competitors such as Volvo. He said he expects the worst is IADA would develop its over mainly because Saabs have become so cheap. own program to offer under While a luxury brand, Beggs said Saab struggled with retention for a long time bethe requirements of the procause it had such a small market. It was a true niche vehicle, he said. posed law. While other brands with distinctive personalities, such as Hummer, have seen values The analysis stated the rise over time due to a lack of supply, that factor is unlikely to help Saab. requirement would go into “Despite its early cult-like following similar to Hummer, Saab’s wind down is much effect 90 days after the efmore like Oldsmobile,” said ALG vice president Eric Lyman. fective date of the bill’s approval into law. Dealers who have already IN THIS ISSUE held a license within two years of bill’s passage, as long as that license hadn’t recalls lately. – Page 3 prime piece of property. – Page 12 Save thousands per month been revoked or suspended, will be grandfathered. easier at all the time. join today no cost
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