May 19, 2014
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ON THE WEB: Credit Acceptance Reports Decline
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Used Car Store Seeks Sewer Solution
Credit Acceptance Corp. saw its net income decline in the first quarter. The subprime creditor announced consolidated net income of $49.8 million for the three months ended March 31, compared to consolidated net income of $60.6 million for the same period in 2013. .
FTC Mails Refunds For Fuel Additive Scam
The Federal Trade Commission is mailing refund checks totaling $42,580.45 to 1,274 consumers who bought a worthless fuel additive called EnviroTabs.
Marketing Works Best Across Multi-Channels
A survey by email marketing firm Constant Contact suggests multi-channel marketing – email, social, mobile, and Web – increases customer engagement. The survey says 82 percent of small businesses and nonprofits use multi-channel marketing to promote themselves already.
SEWER OR LATER: Jay Mullen, owner of Elkton Auto Corral in Lisbon, Ohio, stands by the portable toilets he needs at his store because it lacks a municipal sewer connection. Mullen has been working with the city to resolve the situation. By Sheila McGrath
For years, Jay Mullen had driven by an abandoned Chevrolet dealership in Lisbon, Ohio, and thought, “Wow, that’s a shame.” The former Quinn Chevrolet building, an auto dealership since 1938, had closed after the 2009 eco-
nomic crisis and fallen victim to vandals. Mullen dreamed of buying it and relocating his small used-car lot, the Elkton Auto Corral, to the spacious property. The dream came true – sort of. Mullen and his wife, Susan, eventually did buy the property at a 2012 bank
auction, and went to work scrubbing, painting and sprucing up the building. But roughly a year after moving in, they started having problems with the plumbing. Toilets wouldn’t flush. When it rained, drains in the shop would overflow. A plumber they called in to investigate gave them
some very bad news: Shortly before the Mullens bought the building, its sewer connection had been severed by workers installing a sanitary sewer system for the village of Lisbon. Village officials say they severed the connection because workers smelled gasContinued on page 7
Rush - Dated Material
CFPB Director Praises Bank’s Move to Flat Fee for Dealers BMO Harris Bank announced that it plans to pay auto dealers a flat percentage of the loan amount to compensate dealers for originating indirect auto loans. The move follows months of the Consumer Finance Protection Bureau pressuring automotive finance providers to change the way they compensate dealers. “It is encouraging to see BMO Harris taking this proactive step to protect consumers from discrimination,” said CFPB Director Richard Cordray. “When people go to buy a car, they should not have to worry whether they’ll pay more for their auto loan because of their race, gender, or ethnic background. The CFPB is committed to creating a
fair marketplace for all consumers, and we recognize that many lenders share that commitment as well.” The CFPB issued a bulletin in 2013 reminding lenders offering auto loans through dealerships that they remain accountable for complying with fair lending laws in their indirect lending programs. The Bureau’s bulletin explained that policies which allow dealers to exercise discretion over interest rates and provide direct financial incentives for charging higher prices may lead to fair lending violations under the Equal Credit Opportunity Act . In the bulletin, the CFPB identified potential approaches that indirect auto lenders could take to ensure compliance.
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