Spring 2015 Magazine by VA Independent Dealers Association

VOLUME 36 NUMBER 2 • SPRING 2015

SUB-PRIME

THANK YOU MEMBER BENEFIT PROVIDERS

PREDICTION:

SUNNY WITH HEADWINDS

DEALER DAY SIMPLE ACTION PLAN FOR PROTECTING YOUR DEALERSHIP

Symbol of Quality SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

IT’S YOUR LOCAL

AUCTION

LANE. BUT IT’S THE WORLD’S LARGEST

Virgina Manheim Fredericksburg | Manheim Harrisonburg

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

The Virginia Independent News A VIADA Publication © Virginia Independent Automobile Dealers Association 4700 Thoroughgood Square Virginia Beach, VA 23455-4043 757.464.3460 | 800.394.1960 Fax: 757.460.1346 E-mail: info@viada.org www.viada.org www.facebook.com/infoviada LOIS KEENAN Executive Director lois@viada.org PETER IARICCI Director of Education pete@viada.org ALVIN MELENDEZ Field Director alvin@viada.org TINA ALLMAN Auction Representative tinaallman1@gmail.com MADISON ELLIS Office Manager madison@viada.org STEPHANIE HAND Publications publications@viada.org ASHLEY DAZZO BookKeeper / Membership ashley@viada.org VICKIE LONDON Inventory Manager vickie@viada.org

VIADA OFFICERS 2014-2015 PRESIDENT Donald Boucher, Jr., CMD PRESIDENT ELECT Weldon Whitehurst VICE PRESIDENTS Bobby Steele Jamie Davis, CMD Don Sullivan SECRETARY Andrew Wiley, CMD TREASURER Rob Fisher The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the view of the Virginia Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of VIADA, does not constitute an endorsement of the products or services featured.

COLUMNS

4 FROM THE PRESIDENT: DONALD BOUCHER, CMD 6 EXECUTIVE DIRECTOR’S NOTES: LOIS KEENAN 7 LADIES AUXILIARY SCHOLARSHIP INFORMATION 10 AROUND THE COMMONWEALTH 16 THANK YOU MEMBER BENEFIT PROVIDERS 18 VIADA DEALER DAY INFORMATION 19 VIADA DEALER DAY REGISTRATION 20 UPCOMING VIADA EVENTS & SELECT PARTNERS 21 MEMBER BULLETIN BOARD 23 NOTES FROM OUR FIELD DIRECTOR: ALVIN MELENDEZ 24 VIADA RENEWALS: DECEMBER 1, 2014 - JANUARY 31, 2015 24 VIADA NEW MEMBERS: DECEMBER 1, 2014 - JANUARY 31, 2015 25 PAST QUALITY DEALER COLUMN: BILL MOSS 28 PAC: OCTOBER 1, 2014 - JANUARY 31, 2015 29 VIADA BOARD MEETING: JANUARY 2015

FEATURES 7 CARLAWYER©

BY Thomas Hudson & Nichole Frush Munro, Hudson Cook, LLP

8 FUNDING FUNDAMENTALS 101 BY Peter Singelakis, Mariner Finance

9 PREDICTION: SUNNY WITH HEADWINDS BY Charapp & Weiss, LLP

12 UNLOCKING THE TRUE POTENTIAL OF YOUR DEALERSHIP Part 2: Capital Needs of the BHPH Dealer BY David Algood, AMAC

14 ECONTRACTING BRINGS DEALERS FASTER FUNDING AND A STREAMLINED CONTRACTING PROCESS BY Todd Mason, RouteOne

17 SIMPLE ACTION PLAN FOR PROTECTING YOUR DEALERSHIP BY Karen Culpepper, ADS Management Group

25 KEYS TO COLLECTIONS

BY Dee Cox, Federal Financial Services

26 REASONS TO AVOID USING THE RULE OF 78S FORMULA IN RETAIL INSTALLMENT SALES CONTRACTS BY M. Christina Floyd, ESQ.

30 THE INTERNET CORNER

BY John Summer, JTZ Enterprise.com SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

e h t m o r F By: Don Boucher, CMD, Courtesy Auto Sales

My main goal is to see this association to at least one thousand members before I leave office in October. We currently have 915 members and are number four in the United States for membership as of 01/23/2015. I am very proud to be a member of an association whose main purpose is to educate and protect our livelihood as independent dealers. VIADA officers recently spent two days in Richmond meeting with our legislators on a one-on-one basis. We let them know first-hand our concerns about over-regulation of our industry. Many legislators are also small business owners so they understand the hurdles independent car dealers have to jump through to survive while operating a small business in today’s economy. Meade Spotts, our lobbyist for VIADA, met with us and gave us a brief overview of the laws being presented to the Virginia General Assembly this session. Of the approximately three thousand bills that are being introduced, seven to eight hundred of them will actually become laws. For example, bill # HB2018, stated that any vehicle with a recall not completed could not be sold in the state of Virginia. If this bill had become law, how would this have affected us as independent dealers? Luckily quick action taken by the VIADA and the VADA collectively prevented this from happening. Another bill, HB2012, which proposed to do away with starter interrupts, was also squashed due to the efforts of the VIADA and VADA Lobbyists. Lois Keenan, our Executive Director, spent countless hours at the office to make sure all the right people were notified so this was a united effort. At the same time Pete was reading and monitoring bills to help identify those that would impact our members. Without our association some of these devastating bills would become laws. Your maximum processing fee would be only $25.00 without our association. I would like to thank all of my fellow dealers who sacrificed two whole days of their time away from their businesses to meet with our legislators and attend our Board meeting in January at the Marriott in Richmond. We meet every three months to evaluate our progress as an association and to discuss ways we can protect and educate our fellow independent dealers. During this time we also met with new Associate members to see if their products are beneficial to our members. Our next Dealer Day will be held on April 28th in Charlottesville on the campus of UVA. This will be the third time we have hosted this event. The previous dealer days have been well attended and this one should be even better. A variety of lenders will be available to meet with individual dealers who can then determine if they are a good fit for their operation. Many experts such as recovery agents and accountants will be speaking and you will have ample time to interact with all of them. As Joe Lescota who teachers the Certified Master Dealer program would say, “in order to assess your business, the best place to do it is away from it, where you will be able to get a much clearer picture”. There is no better place to listen and learn than from the many talented professional people we will assemble for you at Dealer Day. One precious day out of your week will allow you to learn more efficient ways to run your operation and ultimately how to become more prosperous. Every independent dealer in Virginia who wants to better themselves, their operation, and secure their future should attend. I recently spent three days with Alvin Melendez, our field representative, going door to door in District 1 and visited over 60 dealers. We are extremely fortunate to finally have a field representative and even more so to have Alvin Melendez. Alvin is a pleasure to work with. Many dealers we visited were members of VIADA, but many were not. We thanked our members for their support, but we also stressed to non-members the great value of the association and why they should join. Every responsible Independent dealer in Virginia should be a member. This association is the only real asset that cares about our future and us. Why this is so hard for many dealers to understand is almost shocking to me. For only $295.00 you are a member for 1 year. This is, for the most part, only a buyer’s fee at most auctions? It gets even more difficult to understand because with the benefits that we offer, you get your $295.00 back many times over. We signed or renewed 6 dealers, but also I understand January is a very tough month for many dealers. Thanks to all of you that are members, but I need your help by participating in your district meetings, attending Dealer Day, and by also stressing the importance and benefits of being a member to your nearly 2,000 fellow dealers who are not members. This should easily be a no brainer to everyone in our industry to join the VIADA today!

Donald Boucher, C M D Courtesy Auto Sales (757) 424-6404 dboucher54@yahoo.com

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

RETAIL. WHOLESALE. SALVAGE. SPECIALTY.

Notes BY LOIS KEENAN, VIADA Executive Director Larry Church, Owner of Cardinal Auto Sales in Bristol, VA and President of District 8, passed away February 9, in Vanderbilt University Medical Center. As President of District 8, Larry’s vision for VIADA, which started on the local district level, was to get second generation dealers actively involved in the Association. He spent much time talking one-on-one with these young people helping them understand that they are the next leaders who will keep this Association strong. As a result, Larry’s last meeting was packed with second and third generation dealers from Cedar Bluff to Bristol. Larry will be missed in Southwest Virginia and in VIADA. It will be our mission to keep his vision for VIADA alive and well. ————————————————————————————————————————————————— VIADA flourishes as long as our volunteers are actively involved in the planning and execution of its programs. At present, we have three very strong generations of leaders who are blending past, present, and future ideas. Our Dealer Days are influenced by those who are taking advantage of national training, dealer 20 groups, online training, and industry publications, not to mention VIADA’s state offerings. They have made valuable contacts and are in touch with the needs of dealers in all phases of the business. They are helping identify and develop curricula to address new trends that really work! April 28 is a day that will pay dividends to all who are seeking lending sources for both subprime and for BHPH. Other subjects such as detecting and curtailing dealership accounting fraud, sales tips, advertising “got chas”, collections, repos, etc. – there is something for dealers, salespersons, and employees. Check out the information in this issue. BE A WINNER -- REGISTER TODAY! ————————————————————————————————————————————————— The theme for this issue of The Virginia Independent News is dedicated to subprime lending. Special thanks to our associate members who specialize in this field and who were able to write educational articles to provide our members insight into how to use these resources to benefit their customers and their dealerships. Be sure to read each article contained in this publication. Don’t have time? Consider designating an employee to do the reading and then share the highlights with you. MVDB reports that 100% of dealers have an email address, but 70% do not read Dealer Talk which keeps you updated regarding violations and penalties that are being levied at the MVDB meetings. Overcoming this barrier, including reading other industry publications and attending training sessions such as Dealer Day, will raise the confidence level of motor vehicle dealers and keep them from looking over their shoulders wondering if they are being compliant. APRIL IS VOLUNTEER MONTH THANKS TO EACH VIADA MEMBER, DISTRICT AND STATE LEADER, AND PAST PRESIDENT – YOUR CONTRIBUTIONS ARE TRULY APPRECIATED VIADA is now on facebook and LinkedIn. Our blog is also active and easily accessed through our website. Please “like”, “connect” and read us for current news, industry updates, cool pictures, serious issues and lighthearted bits. We’d love to hear back from you too!

Symbol of Quality

www.facebook.com/infoviada

www.linkedin.com/company/ virginia-independent-automobiledealers-association

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

www.viada.org/members/blogs

Symbol of Quality

Scholarships for VIADA and NIADA Members

VIADA Ladies Auxiliary and NIADA offer college scholarships to the children and grandchildren of members annually. Contact the State Office at 800-394-1960 or visit www.viada.org and www.niada.com.

NIADA Scholarship $3,500

VIADA Scholarship $2,000

Both, NIADA & VIADA Ladies Auxiliary Scholarship applications must be postmarked no later than March 13!

CARLAWYER© BY THOMAS B. HUDSON & NICOLE FRUSH MUNRO Hudson Cook, LLP This month, we feature developments from the Consumer Financial Protection Bureau, the Federal Trade Commission, the Department of Justice and the Department of Defense. We identified several developments that we thought might be of interest to those in the auto sales, finance or leasing business. Here’s what we found. Take a look below at our collection of selected legislative and regulatory highlights. We also recap some of the many auto sale and financing lawsuits we follow each month. Remember – what we report here does not capture every recent development. We select those we think might be particularly important or interesting to dealers. Why do we include items from other states? We want to show you new legal developments and trends. Also, another state’s laws might be a lot like your state’s laws. If attorneys

general or plaintiffs’ lawyers are pursuing particular types of claims in other states, those claims might soon appear in your state. Note that this column does not offer legal advice. Always check with your own lawyer to learn how what we report might apply to you, or if you have any questions. This Month’s CARLAWYER© Compliance Tip Do you have a policy for that? Test drives, handling consumer reports, spot delivery procedures, privacy, red flags and document retention and destruction are examples of things dealerships typically have policies about. Are your policies on these and other areas of your business written down? Have they been reviewed by counsel? Are they updated on a regular basis? If not, then you really don’t have a policy. Enough said? We’ve found that when it comes to dealing with regulators or creditors, neatness counts. When your examiners or creditors come to review your operation, what do they

find? Are your deal jackets neatly organized, with a table of contents, a place for each document, each document in its place, and nothing in the jacket except for the documents that need to be there? Or are they rats’ nests, with nothing appearing in the same place in any file, and all sorts of extraneous documents and extra copies cluttering up the file? Spring’s coming – how about a little spring cleaning? FEDERAL DEVELOPMENTS No More Allotments. On November 21, in an effort to curb allotment system abuses, the Department of Defense announced a policy change that will prohibit servicemembers from using new allotments to buy, lease, or rent personal property, effective January 1, 2015. The allotment system allows servicemembers to make discretionary allotments from their pay and set up automatic payments to creditors for a variety of purposes. Under the new policy, personal property includes vehicles, appliances or household goods, electronics, or u CONTINUED ON PAGE 22

SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

FUNDING FUNDAMENTALS 101 BY PETER SINGELAKIS Mariner Finance Vice President Funding is one of the most important, and at times, most challenging aspects of the Indirect Auto Product. Whether it’s income, job verifications, contracts, or buyers order errors, both the lender and the dealer want this process to be fluid and fast. In either case, here are some best practices that can improve this process and get you, the dealer, paid today! The application is the first opportunity to gather information from the customer(s). The more information that can be gathered through the sales person or F&I Manager during this process can determine how accurate and fast the deal can get funded by the lender. There is no question that each lender has their own unique process for funding, however if the information gathered on the application is accurate, the lender’s funding process should be quick and easy. The most common errors that occur from the application process to funding/validation are:

1. INCOME – Obtain all of the customer’s monthly income, not just his/her primary job. This includes SSN, child support, part time jobs, etc. Once you obtain the customer’s entire proof of income, take the time to validate and verify this information. This will help to

“Funding is one of the most important, and at times, most challenging aspects of the Indirect Auto Product.” avoid any issues during the lender’s funding process. 2. JOB TIME / VERIFICATION – The amount of time at a job is an important factor for a lender to consider when going through the approval process.

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

Verification of the job and the amount of time at a job will be part of the validation process. Along with the customer’s work phone number, try to obtain their direct supervisor’s name and contact information. This will make the verification process easy and fast for the lender. 3. RESIDENTIAL STATUS / MONTHLY PAYMENTS – Similar to gathering job and income information, a customer’s time at residence and verification of this time may be part of the underwriting and funding process. During the application if the customer is renting, have the customer include his or her landlord’s name and number. This will give the lender ALL of the necessary information to validate and fund the loan. Common clerical errors can also delay funding such as a buyer’s order not matching the contract; all signatures required along with the contract assignments not present; and any document(s) specific to the lender not being included in the funding packet. In order to expedite the process and save any contracts from being returned, pay attention to detail, take the time to review all of the paperwork PRIOR to a customer leaving the dealership, and use a lender’s “Funding Checklist” (if provided). Overall the funding process can seem overwhelming and frustrating at times. However, if you pay close attention to detail, validate the information the customer gives you, and make sure the packet is complete while the customer is at the dealership, this will assure a fast and pleasant funding experience. Always keep in mind the lender and the dealer have the same goal in mind; to get the loan funded FAST! Peter Singelakis | Vice President 8211 Town Center Dr | Baltimore, MD 21236 P: (443) 438-2085 | C: (443) 744-1148 F: (855) 584-8600 www.marinerfinance.com

PREDICTION: SUNNY WITH HEADWINDS BY CHARAPP & WEISS, LLP 2014 was another good year for motor vehicle dealers. The experts are predicting an especially strong year for 2015. Consumer optimism is rising. Credit is available. However, there are significant headwinds, which should cause dealers to be cautious. • The unemployment rate is at its lowest for this President’s administration. However, the unemployment rate does not tell the story. It does not consider the historically high numbers of Americans who are no longer looking for work. And it counts as employed millions of Americans who are underemployed or employed for less than the 30 hour per week threshold for health insurance eligibility. These factors will severely affect the long-term ability of many to buy a car. • While the American economy is

doing better, many factors are still a drag on job creation and increasing wages. Many large companies are keeping funds overseas or are refusing to invest domestic funds in productive capability because of unfavorable tax laws. The housing market is still troubled. The Dodd Frank financial reform law makes it harder for American families to apply for and obtain credit to buy homes. • The cumbersome home credit process is leading to a cultural shift for young families who question whether the American ideal of home ownership is still important. There is a similar cultural shift among the young, especially the rising numbers of renters of urban dwellings, causing them to question the importance of owning a vehicle. • Whether because of lowered earnings or because of the effect of economic turmoil on their credit histories, or both, many potential buyers will not qualify for standard credit. Availability of subprime

credit is more important than ever. Unfortunately, the federal government, through the Consumer Financial Protection Bureau, is engaged in a campaign against the subprime credit market. That organization has already sent civil investigative demands (subpoenas for administrative agencies) to several finance sources about their subprime credit practices. Any disruption in the subprime credit market will make it harder for potential buyers to obtain the financing on which they depend to purchase vehicles. • The rapidly increasing pace and volume of federal regulations in health care and other aspects of business are having a negative impact on the way dealers conduct operations, including dramatically increasing costs of compliance. • The major transportation story of 2014 was the historic decline in oil prices, leading to dramatically lower u CONTINUED ON PAGE 13

SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

AROUND THE CO DISTRICT 1 TIDEWATER VIRGINIA JAMIE DAVIS District 1 President, Davis Auto Center DISTRICT 1 Just this week the Groundhog saw his shadow, and told us all there would be six more weeks of winter. So, if my math is right, by the time you are reading this spring should be here! Just be careful when you listen to the Groundhog, and don’t let him bite your ear! District 1 has had a few months off to enjoy the holidays, buy cars, and visit our legislators. VIADA’s annual Richmond Board of Directors meeting allowed us to speak individually with our respective Senators and Delegates. By talking to our representatives, they were able to put a face with our organization and we let them know if they ever had an automotive bill question we are here to answer it. I am lucky enough to know both Senator Lewis and Delegate Bloxom on a more personal level, as all three of us are involved in the same church. We, as an organization, have some great member benefit providers that reach out to dealers to help us. All we have to do is signup and try it. If it does not work, what have you lost? But, if it works, what have you gained? Maybe you figured out a new way to deal with a problem, or maybe a way to save your customer a few dollars a month so they can pay a little more a month for that car they really want. Or better yet, you have figured out a way to save some money every month! Do you want to know what the best benefit of using our providers is really? It is our organization, VIADA! Member benefit providers come on board with a solution and know that with almost 1,000 members, people are going to use it. The provider pays the association thinking and hoping that the members will use them. We see them in the magazines and at the conventions, but we think that’s for someone else. They are here for us, but if we don’t take advantage of them being here, there will be time when they will not. DISTRICT 2 RICHMOND VIRGINIA DAVID GRIPSHOVER District 2 President, Crown Motors DISTRICT 2 The guest speaker at our most recent Central Virginia District 2 meeting was John Cole Gayle. Mr. Gayle is a nationally known consumer lawyer. He is the author of the 1988, 1990, and 1998 legislative amendments to Virginia’s Lemon Law. He has written articles on Virginia’s Lemon

Law for various periodicals and testified before the Virginia General Assembly. He is also a frequent teacher for continuing legal education programs on consumer law, lemon law, and litigation. As you might expect many of the targets of his lawsuits are car dealers. For this reason, many dealers consider him the enemy. I do not agree. It is in the interest of all dealers to get the fraudulent operators out of the business. They give the rest of us a bad name. He made the point that he will usually give a dealer a chance to make things right with a client before filing suit. Only if this fails and he believes that serious fraud has occurred does he bring out the big guns. However when this happens, he will add to the suit every technical violation he can find. Some violations which many dealers may not be aware of are as follows. Yo-yo sales. These occur when a “spot delivery” occurs, credit is not approved and the car must be returned. The obligation is to completely unwind the sale, refunding every penny and not even charging for mileage. He says some dealers resist this, telling the buyer that the trade-in has been sold for example, leaving the buyer stuck at the lot with no transportation. This may be done to create pressure for another sale. He noted that the mileage disclosure form has no legal significance. This disclosure must occur on the title. If a car has been repossessed, you must disclose that fact to the buyer. If you upcharge an interest rate from a financing company, be careful what you say to the buyer. You may say “our rate” but do not say “our best rate.” If you take a trade-in, you should have the customer sign a damage disclosure form which includes the phrase “no damage” to help from being held responsible for damage undisclosed to a subsequent buyer. Ignoring these and other similar issues can get you charged with “constructive fraud.” This is different from intentional fraud in that the fraud may be completely unintentional and you may not even be aware that fraud has been committed. So my advice to you is this: if you get a letter from John Gayle, or any lawyer for that matter, advising you to settle with his client, take his advice. So, to paraphrase that immortal Gene Autry song, “Happy Sales to You.” DISTRICT 3 ROANOKE VIRGINIA BRAD WHITE District 3 President, Bluegrass Auto Sales DISTRICT 3 District 3 held their latest meeting on February 23rd at Logan’s Roadhouse, a favorite among the members. We enjoyed a great evening of information, food and fellowship. Our meeting was sponsored by John Bradshaw with Fetch!. John

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

discussed how Fetch! can assist our customers in procuring insurance if they need new coverage. We also learned that customers who already have insurance can use Fetch! to lower their current premiums by getting quotes from multiple insurers. Thank you for the sponsorship and for supporting the VIADA! In addition to John Bradshaw’s presentation, we also learned from member John Porter of new discounts offered to our members by Advance Auto Parts. Members will receive greater discounts on parts, similar to those discounts received by large repair shops. This will be a great benefit to our members! VIADA Field Director, Alvin Melendez, was in attendance and reminded members of the upcoming Dealer Day in Charlottesville on April 28th, 2015. Joe Tate, who serves on the MVDB, discussed recent actions taken by the board. He reminded members to properly maintain business hours and monitor their advertising practices. Be sure to read your Dealer Talk Newsletter sent out by the MVDB to stay abreast of the latest issues affecting independent dealers! Looking ahead, we will have our next meeting in April. We will also begin planning membership drives, our annual summer picnic, and this year’s Christmas celebration. Thank you to all the members who made our recent meeting a great success, and I look forward to seeing you at upcoming events throughout the year! DISTRICT 4 NORTHERN VIRGINIA DON SULLIVAN District 4 President, Sullivan Auto Trading DISTRICT 4 The big topic in District 4 is education. With the compliance issues at a higher level than ever in our industry, we need to be very aware of potential violations in all of our transactions and record keeping. Not only for owners and dealer-operators but salespeople and employees which are the main area education is needed. Once infractions have occurred, lack of knowledge is not an excuse when severe penalties are the outcome. The Dealership pays these fines, sometimes they are very large and could potentially be a major financial burden and hardship. Laws and regulations are constantly changing and we need to be aware. It is important to realize a need for a new standard to be set in place for all employees involved in the selling of pre-owned vehicles or business office procedures in our industry. The future brings change and we don’t want to be left behind and victims of infractions or lawsuits because of unwillingness to be educated. Like all industries the level of awareness to grow and take advantage of all resources today are a must to exist in our ever-changing society and business world.

OMMONWEALTH As a Dealer, it amazes me when there are District meetings around the state that are mainly focused on all types of vendor opportunities and education that attendance is very low. All that VIADA does for Dealers behind the scenes and publicly from member benefits to a phone call away for legal advice or any questions; forms and supplies to representation at the dealer board and lobbyist at the State Capitol. We could start by filling these meetings and being better representatives of our industry. These meetings are for everyone at the dealership. I realize it is difficult, with very demanding schedules today, but please make every effort to have someone from your business at every meeting to insure you take advantage of valuable information and opportunities. A level of perfection in all compliance related issues makes a strong foundation and an atmosphere of perfection that will make you money. It becomes a work habit that causes us also to handle our customers with the same respect and integrity. It builds trust in your customer and confidence in all the Dealership’s employees. May all you lay your hand to prosper!! DISTRICT 5 SOUTHERN VIRGINIA BRENT TOONE District 5 President, Lakeview Motors DISTRICT 5 ComSoft Dealership Management Software and Marketing Solutions sponsored our meeting held on March 3rd. Chip Cooper represented ComSoft and spoke about the importance of DMS from a convenience tool and a compliance requirement. Chip underscored the importance for dealers to check for outstanding vehicle recalls prior to offering them for sale in addition to pulling a NMVTIS (National Motor Vehicle Title Information System) report on each vehicle at www. USCarHistory.com. Both features are integrated within the ComSoft MonyMaker product and he afforded us a promo code for a discount to the service. Chip also explained how the ComSoft DMS package currently has the exclusive rights to reproduce VIADA deal forms from a laser printer and how dealers, as an alternative, can save 50% off of the cost of VIADA traditional multi-part forms. Chip also described the importance of an integrated internet marketing campaign in order to increase sales and eliminate double entry. Chip authored a chapter on “Choosing the right DMS software product” in the recently released book Race to the Finish Line - How to open and run an independent automobile dealership. A hard cover copy of the book was given away to a lucky winner that was randomly drawn at our event.

District 5’s May meeting will be sponsored by Greensboro Auto Auction. Watch your mail and email for more information. DISTRICT 6 WESTERN VIRGINIA MATT STEVENS District 6 President, Forestry Equipment of VA DISTRICT 6 District 6 had a great meeting February 3rd with Lendmark Financial and Quarterdeck Event Production. Many thanks to Maurice Peerman from Lendmark for sponsoring and sharing with us many of the services they can offer independent dealers in our area. Jason Lagesse from Quarterdeck gave an interesting presentation as well about his work in event planning for non-profit organizations. For the first meeting I ever chaired as a District President I was told that it went very well! So another big thank you goes to the encouraging words offered by the dealers in attendance and to the guidance given by past presidents. We were well represented to our guests. It was suggested in our meeting that increasing the frequency of district meetings from quarterly to an every-othermonth schedule might be good to increase our networking time and create more unity in the district. It certainly is great seeing everyone and I think it’s worth looking at to see what we can do to at least correspond with each other more often. Most of the communication in our district is via phone and regular mail, but I did notice several people said they had received the emails as well. I think it’s worth looking at to see what we can do to embrace some of the free networking power of the internet. At no cost, we can set up an online message board that would allow for quick communication among the district at all times. This could be applied to the association as a whole as well – also at no cost. There are many free message board services that we could take advantage of that can be organized from the district level all the way to state. Communication is key in our everyday business and while digital means can in no way take the place of face-to-face interaction it certainly can help us stay connected when we’re not together. DISTRICT 7 SHENANDOAH VALLEY VIRGINIA EDDIE HALEY District 7 President, Rt 11 Valley Auto Sales DISTRICT 7 VIADA’s Dealer Day comes to District 7! This is VIADA’s third event designed specifically for independent dealers. One of the #1 questions asked of VIADA’s Field Director is “Where can I find more lenders?”

The answer is coming to Newcomb Hall on UVA campus April 28. There will be ten lenders in one room for a full day who will be doing round tables, serving on a panel, and sponsoring tables in order to discuss their programs with attendees. Even if lenders is not your #1 question, the day will also feature • Joe Verde Sales Training • Identifying Red Flags that lead to dealership accounting fraud • Mastering collections to prevent repossessions • The pitfalls of today’s advertising: internet, print, radio/tv Check your mail and email for more details or go to www.viada.org. Register today, if you have not already done so, to reserve your seat at this “must have” educational and informational venue. This will be an easy drive for our district members and we invite other districts to join us for a day of learning and sharing to improve our bottom lines! DISTRICT 8 SOUTHWESTERN VIRGINIA LARRY CHURCH District 8 President, Cardinal Auto Sales

DISTRICT 8 Larry Edward Church, 61, of Cardinal Auto Sales in Bristol, Virginia, passed away February 9, 2015, at Vanderbilt University Medical Center following a brief hospital stay. Larry had been a very conscientious leader of District 8 for the past eighteen months. He spent much time in thought about the future of VIADA and wisely came down to the basic: our younger generation of dealers will become the next leaders who will determine the future of VIADA. He visited these young people and impressed upon them how blessed they were to be a part of a business that had been built and nurtured by their families and that they needed to become involved in the Association now to be ready to take the reins when their time comes, which, in many cases, is already here. His Christmas Party in December was well attended and Larry was so energized to be certain every detail was well orchestrated. The last District 8 meeting was filled with second and third generation dealers who had been inspired by his counselling. District 8 as well as the Board of Directors will continue to remember Larry for his interests in both the young people and the Association as a whole. Larry loved playing golf and riding his motorcycle with his friends. Besides his family, Larry was most proud of his accomplishment of obtaining a college degree from King College. He was a veteran of the U.S. Navy. He is survived by his wife, son, daughter, a sister and two brothers. He will be missed.

SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

UNLOCKING THE TRUE POTENTIAL OF YOUR DEALERSHIP Part 2: Capital Needs of the BHPH Dealer BY DAVID ALGOOD, AMAC Director of Sales & Marketing Adequate capital is one of the most important aspects of becoming a successful BHPH dealer. The capital needed for a BHPH operation will be substantial ranging from around $500,000 for an operation doing about 5-10 BHPH deals a month up to several million dollars for dealers doing 30 – 50 BHPH deals per month. Actual capital requirements will vary based on the average price of your cars, down payments, and the length of term on the contracts. There are three major areas requiring substantial capital for the BHPH dealer. The first two, working capital needed to fund the daily operations of your dealership and the capital required for the inventory on your lot are required for all dealerships. The third and largest capital requirement for BHPH dealers is to fund your contract receivables. Only a few dealers are able to handle all of their capital needs without borrowed funds. The lack of adequate capital forces many dealers to sell off contracts after 3-6 months aging. This practice should only be used as a last resort because it will reduce repeat and referral business. It is recommended you have sufficient working capital to cover 2 months of expenses, plus 25% of the cost of your vehicle inventory to cover curtailments and inventory which is not eligible for floorplan. Floorplan lines of credit are typically used to provide the remaining capital need for inventory. The most common means of funding BHPH receivables is with a finance company or a bank. Banks are typically lower cost, however few banks provide financing for BHPH receivables and most of the banks that do, will require you have well over $5,000,000 in receivables with a long track record of successful operations and excellent financial reporting capability. A finance company is often the best choice for a BHPH dealer selling 75 or fewer BHPH deals per month. Working with a finance company such as Ace Motor Acceptance Corporation (AMAC) that provides both floorplan and contract funding, while allowing you to maintain relationships with your customers, has several advantages. One big advantage of a company that provides both is that a single company will be able to pay off the floorplan on your sold vehicle with the deal funding amount. A single source will also provide floorplan for your repossessions, in both cases eliminating the additional working capital required when using separate sources. Whether you deal with a finance company or a bank, it is important to work with a company who understands and who is committed to the BHPH business. The Senior Management team at AMAC includes experienced veterans in all aspects of the BHPH business. AMAC is a known capital provider for both seasoned BHPH dealers and those that are looking to enter the market. AMAC’s BHPH in a Box™ program offers credit lines for receivables, floor planning, discounted GPS devices along with the option for credit bureau reporting and training. Also, for dealers that want help with collections, AMAC can provide collections assistance, while the customer may still pay at the lot. Russ Algood is the CEO at AMAC, a rapidly growing finance company doing business thoughout the Southeast and most of Eastern seaboard of the United States. Anyone wanting more information can contact AMAC at 704-882-7100 (ext. 7509) or visit their website at www. acemotoracceptance.com

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

u CONTINUED FROM PAGE 9 - Prediction: Sunny with Headwinds gas prices. The positive result is improved disposable income for Americans. However, one must question why OPEC members have refused to make the production cuts they traditionally took to prop up falling oil prices. Some analysts believe it is an attempt to make the technology so responsible for dramatically increased supplies -- fracking -- unattractive since producing oil through that method is more expensive than pumping it out of the ground. If these tactics succeed in driving out new oil production competitors, low oil prices will be shortlived. Historically, volatile oil prices have caused shifts in demand for the vehicles consumers prefer, and this has led to substantial inventory problems for some car dealers. Some may predict aggressive tactics to take advantage of 2015’s predicted white hot market, but slow and steady will win this race. Dealers who pay close attention to the fundamentals will make money and hold on to it. Here are eleven areas of concentration for ’15. FEDERAL GOVERNMENT Dealers have seen increasing federal government interference in their businesses. While both houses of Congress will be controlled in 2015 by Republicans generally thought to be less intrusive in the affairs of business, there will be a backlash at the executive level where bureaucrats will take it upon themselves to impose policies despite the wishes of the new Congress. 1. The CFPB Will Continue its Intrusion. The Consumer Financial Protection Bureau, created by the Dodd Frank financial reform law, was established to be resistant to political pressure. It has been the federal agency with the greatest recent impact on the operations of car dealerships, and that is likely to continue. While the agency does not have direct supervisory or enforcement authority over car dealers, it controls the big banks and is increasing its control over other finance sources, particularly captives that provide the lifeblood of car sales. It will continue to use that authority to pressure finance sources to alter the way dealers sell and finance motor vehicles. • All dealers know of the CFPB’s war on dealer participation. The goal of the agency is to eliminate dealer participation and force finance sources to pay flat fees for origination of retail installment sale contracts. The industry,

led by the National Automobile Dealers Association, has pushed back hard and has so far slowed the CFPB’s march to its goal. However, the CFPB is intensifying its oversight of finance sources. Those finance sources will have no choice but to increase oversight on dealer participation. To deal with this challenge, a dealer should adopt a fair lending policy to set a starting point for all credit buyers with downward deviations for established reasons. • The CFPB has already pressured finance sources over sales of F&I products and services. Much like finance participation where the CFPB feels that participation should be equal for every customer, it believes that every customer should pay the same for finance products and services. The pressure will continue to build on finance sources to regulate dealers. If you have no set pricing matrix for your F&I products and services that eliminates discretion in pricing for F&I personnel, put one in place. • The Dodd Frank financial reform law gives the CFPB authority to regulate predispute arbitration provisions in finance paper accepted by those finance sources over which it has jurisdiction. The CFPB is in the midst of a study on arbitration and the steps it may take, the results of which should be published in 2015. Any regulation in this area by the CFPB could significantly affect predispute arbitration provisions that are important protections against class action lawsuits. 2. The FTC Is Using Its Increased Dealer Authority and Budget. When the Dodd Frank financial reform law was passed, the FTC was concerned that its territory would be poached by the new bureau. So Congress gave the FTC greater authority and a larger budget to regulate those who escaped CFPB’s jurisdiction – car dealers. The FTC has increased its activities over car dealers, and that increase is likely to continue in 2015. • To date, the FTC has dramatically stepped up its dealer advertising oversight. Dealers must give attention to the FTC. An FTC legal complaint can lead to a costly consent order that will affect how a dealership can conduct business for ten years. The FTC has been concentrating primarily on internet ads, targeting Truth in Lending Act violations and what the FTC calls “bait advertising” where conditions

to the availability to a price or term are not clearly and conspicuously disclosed. A dealer must have in place advertising guidelines to be followed by managers responsible for advertising and for its advertising agency. • The FTC is under significant pressure to take action on spot delivery, particularly abusive spot delivery practices. If you spot deliver, establish procedures, use a clear and fair spot delivery form or provision in your sales documents, and hold onto a trade until a deal is complete. If you must rescind a deal, return the trade and any downpayment, and avoid abusive tactics in retaking a vehicle. • Dealers are on the front line in protecting customers against identity theft. The FTC has regulations that require dealers to have two important programs in place -- an information safeguards program and a red flags program to detect signals of identity theft. Have specific written programs in place that comply with the FTC rules, and review and update them at least annually. 3. Labor Practices are Under the Microscope. In line with the federal government’s increasing regulatory intrusion, it is substantially increasing its activities on the labor front. • The federal government is funding state programs to make sure workers are classified as employees instead of independent contractors. Occasional drivers and piece workers are at the top of the list. The IRS has created guidelines for determining who is an independent contractor. If you have questions about the proper status of workers, work with your accountant. • Proper classification of employees to determine whether they are entitled to premium overtime is also critical. Car dealers have special protection regarding salesmen, mechanics, and partsmen, but not everyone in the sales department, the service department and the parts department qualifies for the exemption. Those who are nonexempt are entitled to time and a half overtime. • Employees are entitled to minimum wage for all hours worked. The general office should calculate whether employees are properly compensated every pay period to ensure all employees earn minimum wage. • Dealers must be careful about u CONTINUED ON PAGE 27

SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

eCONTRACTING BRINGS DEALERS FASTER FUNDING AND A STREAMLINED CONTRACTING PROCESS BY TODD MASON RouteOne

What was once a concept of the future is now present in full force. eContracting injects technology into the auto finance industry’s historically manual process of paper finance contracts, fax machines, and couriers. Through technology, eContracting enables dealers and finance sources to share critical contract documents and data back and forth electronically in a matter of minutes, not days or weeks. It supports faster decisions, faster funding, and more efficient customer service. eContracting streamlines and helps automate the entire contracting process, reducing the potential for errors. Technology is changing by the minute, and it is critical to fully consider what eContracting technology options make the most sense for your dealership. In the past, when you wanted a new technology, you often had to buy, host, and manage the technology yourself. Recently, however, a new option known as “Software as a Service” (SaaS) has emerged. With SaaS, the technology is completely managed and delivered by a service provider, usually over the Internet; saving you the IT burden related to selfhosting. In addition, SaaS often gives you the relief of knowing security and system updates are performed on a regular basis, so you don’t have to manage them on your own. Dealers around the country are adapting to the eContracting boom. Why are dealers so interested? This may be obvious, but one reason eContracting is growing so quickly nationwide is, simply put, dealers want to get paid. Dealers who utilize paper-based contracts can see funding times of up to several

days. Finance sources that utilize eContracting technology can now fund deals usually within the next business day and sometimes even within minutes. Because the contract and ancillary documents are sent electronically, dealers will also eliminate overnight mailing

“Technology is changing by the minute, and it is critical to fully consider what eContracting technology options make the most sense for your dealership.” costs in addition to the man-hours used to handle shipping and deal with return contracts. Dealers are seeing increased efficiency with eContracting. One way is validation. With eContracting, contract details are sent to the finance source before the customer signs the contract. During review, the finance source identifies any errors, which gives the dealer an opportunity to address those errors before proceeding in the eContracting

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

process. Upon successful validation, the customer’s eContract is printed for them to review during the electronic signature process. Technology has allowed dealers to use common mobile devices, like a tablet for the signing ceremony. Dealers will also increase their efficiency, save time and streamline their workflow through the utilization of DMS integration. Traditionally, from the credit application to the eContract, there is margin for error. By transmitting the data from the DMS to the credit application portal via integration, you eliminate duplicate entry and minimize the likelihood errors can occur during the contracting process. What can be worse than asking your customer to come back and sign more paperwork due to a missed signature? Having your customer come back a 3rd and 4th time to sign more paperwork! eContracting has the potential to reduce unpleasant customer experiences by ensuring all required signatures are captured during the review process. This means the customer spends less time in your dealership and receives a better customer experience – a great indicator for a good grade on your CSI! Change is being driven by evolving consumer expectations, dealer demand, and the benefits eContracting offers - faster decisions, faster funding, and an overall streamlined contracting process. As a result, it enables finance sources and dealerships alike to work smarter and better. Todd Mason Chief Product and Marketing Officer, RouteOne (248) 862-7152 | tmason@ routeone.com

Our eContracting solution gives you a direct line to finance sources.

So you can fund deals quicker.

routeone.com

Count on our eContracting platform to get you faster funding.

Let RouteOne streamline and automate your processing of contracts. Our technology creates seamless sharing of documents between dealers and finance sources, so you can close deals in minutes. Take a minute today and see how our eContracting can help you move forward faster at routeone.com.

eContracting SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

THANK YOU!

MEMBER BENEFIT PROVIDERS

VIADA has been the voice of Virginia’s independent motor vehicle industry since 1960. Dealers have looked to VIADA to provide them with solutions and answers that help them operate more successful businesses. Bringing the independent dealer informational resources, products, and services to enhance their business is the goal of VIADA. Following are many of the Benefits VIADA Members enjoy. At ADP, we power organizations with insightful solutions that drive business success! Consistently named one of the “Most Admired Companies” by FORTUNE® Magazine, and recognized by Forbes® as one of “The World’s Most Innovative Companies,” ADP has over a half-million clients around the globe and 60+ years of experience as a world-wide leader of business outsourcing solutions. Our specialties include: Small Business Payroll Services, HR Outsourcing, Benefits Administration, Time and Labor Management, Pay-by-Pay Worker’s Compensation, Tax Credits, Retirement Services. Contact Kevin Urch, Director of Franchise & Affiliations, at (757) 448-6741. Discounts on hard parts for the smallest dealer to the largest dealer... Negotiations are being finalized for new incentives to be announced soon. In the meantime, your current program is still in effect. American Income Life (AIL) Insurance Company now provides a $3,000 Accidental Death and Dismemberment Benefit to every current member in good standing with VIADA at NO COST TO MEMBERS! In addition, there is a Health Service discount card that provides up to 60% on prescriptions, hearing, vision, chiropractic care and products; and Child Safe Kits. For questions call AIL (800) 4951213 or VIADA. We provide dealers’ insurance needs including garage liability, surety bonds, employee benefits, property and inventory coverage. If it is insurance you need, we can cover it all. Call Jim Creasy at (888) 508-7731. DealerTrack Registration & Titling Services provides the following products for motor vehicle dealers: • Online, real-time Virginia DMV registration processing from your office PC • Out-of-state motor vehicle DMV registration processed for you • Temporary Virginia registration tags electronically printed on demand — Virginia Dealers can contact Benson Marsh, Virginia Area Sales Manager, directly at (860) 334-4543. DealerRE has risen to be the renowned expert in one compelling specialty - creating & managing reinsurance companies for dealers.The 30-year-old reinsurance concept allows the dealer to own & control their own insurance company that accepts premiums generated from vehicle service agreements and other aftermarket insurances.The overwhelming success of reinsurance had been marketed primarily to franchised automobile dealers. But, by mastering the process over many years, DealerRE has perfected a wealth of features & safeguards that makes reinsurance irresistible, if not essential, for nearly any modern dealership- small or large, BHPH or traditional. Contact Tim Byrd at (757) 532-3938 for more information. ESG Insurance and Financial Services specializes in Group and Individual Health, Anthem Blue Cross/Blue Shield, Life & Disability Insurance, Medical Savings Accounts Retirement Products, 401-K Annuities, IRA’s, and SEP’s. Contact Mike Warren at (757) 741-4040. Fetch! offers VIADA Members a true benefit by allowing customers to receive multiple auto insurance quotes 24/7 in less than two minutes and the completed binder in less than five. Fetch! is free to the dealer and to the customer. Plus free iPhone and Andriod applications! For more information or to request a log on and password please visit www.fetchaquote.com or call 757-816-4555 ask for Joe Kindley.

JTZ Enterprise offers quality custom-designed websites that are professional and tailored to your business needs. Whether your business needs a website or your current website needs restyling, JTZ Enterprise is the answer for ALL your Internet advertising! Contact John Summer at (877) 286-1564. Ranked #4 out of the top 100 agencies by Insurance Journal. Their position in the industry has allowed KIG to put together a comprehensive physical damage policy to protect the VIADA members’ dealerships and inventory and is underwritten by top rated insurance companies. Contact Harvey Mays at (540) 353-4448. Are you ready to experience total peace of mind? Find out more about Your LegalShield Membership Benefits! For More Details contact: Mary Fisher, Independent Associate and VIADA Liaison, at 757-319-0007 or mary.fisher@cox.net. LegalShield. Total Access. Total Freedom. Lynn Hooper CMD Lynn Hooper, CMD, Dealer Compliance

Consultant. Are you ready for your next MVDB or Federal Inspection? Professional Services include: Complete review of previous DMV inspection reports. Initiate compliant procedures for the Safeguard Rule, Employee Licensing, OFAC Requirements, Advertising Regulations, the Red Flag Rule, Information Security, and more. Contact Lynn Hooper at (703) 505-3304. Dealer Compliance Consultant

For over 30 years, MicroBilt has been the leader in serving independent auto dealers with access to Equifax, Experian, Trans Union, and PRBC credit reports, as well as other business critical data, such as evictions data and skip tracing data. MicroBilt offers SmartTarget for collections and reporting back to the credit bureau designed specifically for the independent auto dealer. MicroBilt also offers the independent dealer simple, cost-effective solutions for compliance including OFAC, Red Flags and Risk-Based Pricing. Contact Randy Mosteller at (866) 538-9815. STARS GPS specializes in providing the best technology with personal service, training and support for the independent and franchise dealership. STARS GPS also offers the same personal on-site service for finance companies and their dealer clients, as well as provides automated daily inventory management services that keep dealers constantly supplied with uninterrupted and seamless product flow based on their individual volume needs. Contact STARS GPS at email info@ stars-gps.com or call 877-828-4770. TSYS Merchant Solutions is a global leader in the payment processing industry. We have been creating long-lasting and valuable relationships with merchants worldwide since 1953. We are more than a credit card processor. Our consultative approach allows us to provide a free cost analysis and a customized solution designed to meet your specific needs. With TSYS Merchant Solutions you will get discounted credit and debit card processing rates, loyalty and gift cards, check acceptance program and local customer service. Our Customer Covenant states that we will take 100% responsibility for every customer experience through collaboration, innovation and unparalleled service by caring team members. We will treat our customers the way we want to be treated - building lasting relationships, trust and integrity. Call Carlene Bowers at (757) 343-1311 or email cbowers@tsys.com to learn how we can help you keep more of your hard earned dollars in Your Pocket!

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

SIMPLE ACTION PLAN FOR PROTECTING YOUR DEALERSHIP BY KAREN CULPEPPER ADS Management Group *The following info is not to be taken as legal advice. Research and suggestions come from various sources & training seminars*

Ok. So you sorted through all the Red Flags Rule, the scary statements from the CFPB and anything else you can get your hands on. Now what? It all seems so COMPLICATED! Keep just a few things in mind to simplify your life and protect your dealership. #1 Educate yourself and your staff. It’s all great if the Dealer knows the rules but what about the person disclosing the bank contracts to the customer? Invest in your people. Send them to a reputable F&I school where they will learn proper disclosure techniques and compliance rules. Get your F&I Managers AFIP Certified. Make anyone selling F&I products read the entire document they will have your customers sign. They must understand what is contained in the fine print and why each document exists. #2 Don’t forget your salespeople and office staff MUST practice locking up customers’ personal info. (No folders on their desk, locked administrative and F&I offices, computer screens secured and so forth.) Many dealers now have fines in place if the doors are left unlocked. #3 Appoint someone as your “Compliance officer” to manage your program. #4 Create the following written policies so you have a paper trail proving you took steps to be compliant and include them in your employee handbook: • A written resolution guide for managing customer complaints • Identity theft prevention (Red Flags Rule) • Information Security Program (Safeguards Rule) • Privacy Policy (Privacy Rule) • Fair Credit Policy • Sales Policy • Disposal policies for nonpublic personal information (Disposal Rule) • Employee handbook (every employee must sign upon being hired - include date and manager’s signature) • Post all your policies in plain sight for customers to see as well as in employee break room (Just like your OSHA bulletins)…NOT the Reg Z info. • F&I Policy • Establish fair markup on products and stick to it. • Use a F&I menu (100% of your products offered to 100% of your customers 100% of the time so you don’t discriminate) Make sure there is one in EVERY deal, signed by the customer of products chosen/products declined. • Reg Z - include in your handbook: »» When quoting payments you must include the rate, term, amount financed and payment. »» Give customer a copy of all contracts to read and review before they sign. »» Give customer a copy of all contracts immediately after they sign. Still too much? You are not alone. Consider having an agent to assist you in assessing your needs. Karen Culpepper has been in the automobile business since 1986 starting as a Salesperson, Fleet manager, F&I Director, and Sales Manager. As a senior Agent with ADS Management Group, she has spent the last 18 years as an F&I Consultant for many Independent Dealers as well as much larger Franchise Dealers. ADS have “turn-key” custom programs to take the guess work out of the process if you sell our products. Contact info: fnibunny@aol.com or (757)718-7827.

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Provides Dealership Development and F&I products that are a key component to increasing our dealer partners’ bottom lines Manages the relationship between the dealers and their insurance underwriters and administrators. Reinsurance & other Dealer income development programs available to Independent Dealers & Franchise dealers Compliance Programs F&I Schools DMS integrated Menus & Reporting functions Representing 5 major Vehicle Service Contract Companies Offers all F&I Ancillary products (Gap, Road Hazard, Key Replacement, Cash Gap, Dent & Ding, Zero Interest payment plans and more…) Over 15 experienced agents to serve you

WWW.ADSMGTGROUP.COM CONTACT: KAREN CULPEPPER (757)718-7827 FNIBUNNY@AOL.COM

SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

VIADA DEALER DAY

UNIVERSITY OF VIRGINIA: NEWCOMB HALL

8:30am – 5:00pm April 28, 2015

Dealers ask: “How do I find more Lenders, both Sub-Prime and BHPH?” VIADA Dealer Day will address this question along with sales training, best practices for Collections and Repos, protecting your dealership from Accounting fraud and Advertising violations, all of which can help save/make more money for your dealership. Learn from seasoned dealers and corporate leaders how they have survived the continual industry, technology, and economic changes. ONLY $99.00 PER VIADA MEMBER Address for PARKING @ UVA Bookstore/Newcomb Hall for April 28 Dealer Day: 400 Emmet Street South, Charlottesville, VA 22901 (exit from 4th floor garage elevator. Enter Newcomb Hall on right. Take elevator to the 3rd floor Ballroom) Parking: $2 per hour

CONTROLLING YOUR FUTURE BEGINNING TODAY... LEARN FROM THE BEST. IT’S A DAY YOU CANNOT AFFORD TO MISS! SCHEDULE AND SUBJECTS: 9:00 AM DEALERSHIP ACCOUNTING “Protecting your dealership from fraud” 9:45 AM BAD CHECKS TO REPOS “Do’s and Don’ts of collections and repossessions” 10:30 AM BREAK - VISIT WITH VENDORS 11:00 AM SPEED DATING WITH LENDERS “A roundtable meet and greet with Auto Lenders” 12:00 PM

2:15 PM MVDB ADVERTISING REGULATIONS “Make sure your cool ads don’t get you in hot water!” 3:00 PM BREAK - VISIT WITH VENDORS 3:30 PM FUNDING YOUR BHPH - PANEL “Strips, streams, lines, and sales - getting cash flow for your BHPH” 4:30 PM FINAL VISIT WITH VENDORS

LUNCH - VISIT WITH VENDORS

1:30 PM SALES TRAINING WITH THE JOE VERDE GROUP “Sales training not just for new car dealerships”

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

VIADA’S DEALER DAY April 28, 2015 • 8:30am - 5:00pm SIGN UP ONLINE AT WWW.VIADA.ORG

UNIVERSITY OF VIRGINIA NEWCOMB HALL

400 Emmet Street South, Charlottesville, VA 22901 (Exit from 4th floor garage elevator. Enter Newcomb Hall on right. Take elevator to the 3rd floor Ballroom.) Parking: $2 per hour

For hotel reservations: OMNI CHARLOTTESVILLE HOTEL 212 Ridge McIntire Road, Charlottesville, VA 22903 Overnight rooms available for a special rate of $149.00/night, plus tax. Just call the hotel for reservations at (434) 971-5500 or visit http://www.omnihotels.com/hotels/charlottesville

R E G I S T R AT I O N I N F O R M AT I O N : Member-$99

NonMember-$139

_____________________________________________________________________________________________________________________

Name

Company Name

_____________________________________________________________________________________________________________________

Address (Street) _____________________________________________________________________________________________________________________

City, State, Zip

District

_____________________________________________________________________________________________________________________

Phone #

Cell #

Fax #

_____________________________________________________________________________________________________________________

E-mail

Food Allergies ?

Wi-Fi Required?

q YES / q NO

Additional Employees

Members-$69

NonMember-$99

Employee Name:_______________________________________________________________________________________________ Employee Name:_______________________________________________________________________________________________ Employee Name:_______________________________________________________________________________________________

PAY M E N T I N F O R M AT I O N TOTAL AMOUNT $ ______________ Check Enclosed (Please make payable to VIADA) q

VISA q

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Credit Card Billing Zip Code: ______

I _____________________ understand that if I cancel my registration, $50 will be forfeited. SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

Upcoming VIADA Events MARCH 2015 24-25 D/O Course @ New River C/C Dublin, VA 26 District 7 Meeting APRIL 2015 3 Good Friday – State Office Closed 7-8 D/O Course @ Lord Fairfax C/C Middletown, VA 18 VIADA Board Meeting- Charlottesville 21 District 3 Meeting 21-22 D/O Course @ Thomas Nelson C/C Hampton, VA 28 District 2 Meeting 28 DEALER DAY – Charlottesville MAY 2015 5 District 6 Meeting 5-6 D/O Course @ J Sargeant Reynolds C/C, Henrico, VA 11 MVDB Meeting 19 District 5 Meeting 19-20 D/O Course @ Blue Ridge C/C Weyers Cave, VA 20 District 7 Meeting 25 Memorial Day-State Office Closed 26 District 1 Meeting

JUNE 2015 2-3 D/O Course @ Germanna C/C Fredericksburg, VA 8 District 4 Meeting 15 District 8 Meeting 23 District 3 Meeting 23-24 D/O Course @ Danville C/C Danville, VA 22-25 NIADA Convention Las Vegas, NV JULY 2015 3 Fourth of July - State office closed 13 MVDB Meeting 14-15 D/O Course @ Northern VA C/C Manassas, VA 18 VIADA Board Meeting- Staunton 28 District 2 Meeting 28-29 D/O Course @ Virginia Western C/C Daleville, VA AUGUST 2015 4 District 6 Meeting 11-12 D/O Course @ Piedmont VA C/C Charlottesville, VA 16 District 3 Picnic 20 District 7 Meeting 25-26 D/O Course @ Tidewater C/C Suffolk, VA

SEPTEMBER 2015 7 Labor Day – State Office Closed 15-16 D/O Course @ Lord Fairfax C/C Warrenton, VA 29-30 D/O Course @ J, Sargeant Reynolds C/C, Henrico, VA OCTOBER 2015 13-14 D/O Course @ Northern VA C/C Manassas, VA 22-25 VIADA 55th Annual Convention - Hilton Oceanfront Virginia Beach NOVEMBER 2015 3-4 D/O Course @ Blue Ridge C/C Weyers Cave, VA 17-18 D/O Course @ Germanna C/C Fredericksburg, VA 26-27 Thanksgiving – State Office Closed DECEMBER 2015 8-9 D/O Course @ Lord Fairfax C/C Warrenton, VA 24-25 Christmas – State Office Closed

• All D/O (Dealer-Operator) classes are held on Tuesdays and Wednesdays. Registrations are handled by each school directly. • All dates are subject to change. For the latest information, check our website at www.viada.org.

VIADA SELECT PARTNERS

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

IN MEMORIAM

DAVIS AUTO SALES

Davis Auto Sales won 3 of only 10 truck spots in the Annual Hampton Roads International Car Show (a franchise dealer show) held in Virginia Beach, and were invited to display the 3 trucks during their weekend event at the Virginia Beach Convention Center. Their trucks were prominently displayed at the main entrance to the show. Congratulations to the Davis family.

CONGRATULATIONS! Congratulations to JAMIE DAVIS, CMD of Davis Auto Center in New Church, VA, who was spotlighted in the February 2, 2015, issue of Used Car News under Retail Markets in Virginia. Jamie currently serves as Vice President of VIADA, President of District 1, and Convention Chair for VIADA’s 55th Convention & Expo, October 22 24, 2015, at the Hilton Virginia Beach Oceanfront Hotel. Jamie is a thirdgeneration dealer.

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Larry Church, District 8 President, Cardinal Auto Sales in Bristol, VA

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Mother of Billy Mullins of Barefoot Motor Company in Jarvisburg, NC

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Adel El Madany of 3 Amigos Autos, Inc. in Richmond

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Mother of Barry Hall of Long Island Motor Sales in Long Island

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Father of Tim Maguire of Maguire & Sons Auto Brokers in Virginia Beach, VA

THINKING OF YOU •

Jackie Porter of Porter’s Automotive, Inc. in Roanoke, VA

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Jim Hubbard of Maguire & Sons Auto Brokers in Virginia Beach, VA

VIADA’S AUCTION SCHEDULE • BUCHANAN - 1st or 2nd Thursday of the month (look for our emails) • MANHEIM FREDERICKSBURG - every Thursday • MANHEIM HARRISONBURG 1st or 2nd Wednesday of the month (look for our emails) • TIDEWATER - every other Wednesday

SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

u CONTINUED FROM PAGE 7 - The CARLAWYER© other tangible and movable consumer items. The policy change will not affect existing allotments and does not prohibit allotments to savings accounts or investments, to support dependents, or to pay insurance premiums, mortgages, or rents. The change applies only to active duty servicemembers, not military retirees or DoD civilians. Credit to Servicemembers. On December 29, the CFPB released a report addressing the marketing and extension of high-cost credit products to servicemembers and their dependents, and describing ways that such consumer credit products fall outside the scope of the Military Lending Act. As currently implemented, the MLA protections apply to three forms of credit extended to servicemembers and their dependents: closed-end payday loans with terms of 91 days or fewer and for $2,000 or less; closed-end vehicle title loans with terms of 181 days or fewer; and closed-end refund anticipation loans. The Department of Defense recently proposed regulations broadening the scope of the MLA to cover deposit advance products, payday loans of any amount and length, title loans of any length, and high-interest rate loans structured as open-end lines of credit. In the report, the CFPB contends that loopholes in the current MLA allow companies to offer highcost loans to military families that skirt the 36 percent annual rate cap and other credit protections in the Act. The Bureau submitted its report in conjunction with a comment letter it filed supporting the DoD’s proposal to broaden the MLA’s scope. Servicemember Debt Collection. On December 18, the CFPB and the attorneys general of North Carolina and Virginia filed a proposed consent order in federal court against Freedom Stores, Inc. and its two affiliated companies, Freedom Acceptance Corporation and Military Credit Services LLC, for illegal debt collection practices. Freedom Stores is a Virginia-based furniture and electronics retailer that caters to servicemembers. The Bureau and attorneys general alleged that the defendants sued customers in Virginia who had not signed their financing contracts in Virginia and did not live there when the suits were filed. Many of the suits resulted in default judgments, after which the defendants garnished consumers’ wages or put liens on their bank accounts. Most of the defendants’ customers paid by military allotment, but the

companies also required customers to authorize direct withdrawals from a bank account as a back-up payment method. Because reports from a payment processor were sometimes incorrect, the defendants also allegedly withdrew funds from both consumers’ paychecks and their bank accounts in the same month without the consumers’ knowledge and before the payment due dates. In addition, the defendants allegedly contacted consumers’ commanding officers about their debts. Finally, the defendants allegedly continued to debit bank or credit card accounts of a servicemember’s parent or other third party who had previously authorized a one-time payment on the servicemember’s behalf. The defendants would allegedly keep the third party’s payment information and collectors would later take funds from those accounts without authorization or notification. The proposed consent order requires the defendants to pay over $2.5 million in relief to consumers harmed by the illegal debt collection practices and to pay $100,000 to the CFPB’s Civil Penalty Fund. BHPH Servicing Woes. On November 19, the CFPB took its first action against a “buy-here, pay-here” car dealer. The CFPB claims that DriveTime employees harassed borrowers at work, harassed borrowers’ references, made excessive and repeated calls to wrong numbers, provided inaccurate repossession information to credit reporting agencies, failed to properly handle consumer complaints about alleged inaccurate information DriveTime furnished to credit reporting agencies, and failed to implement reasonable procedures to ensure the accuracy of consumers’ credit information. DriveTime must pay $8 million as a civil money penalty, end its allegedly unfair debt collection tactics, fix its credit reporting practices, and arrange for harmed consumers to obtain free credit reports. FTC Challenges Debt Collectors. On January 21, the FTC announced it filed a complaint against Commercial Recovery Systems, Inc. and its president and former vice president, alleging that the defendants’ debt collection practices violated the FTC Act and the Fair Debt Collection Practices Act. According to the complaint, the defendants falsely threatened that, unless consumers paid the alleged debt, a debt collection lawsuit would be filed against them or Commercial Recovery would garnish their wages, levy their bank accounts, or seize their property. In

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

addition, the complaint alleged that when Commercial Recovery called to collect on a debt, its representatives falsely claimed or implied that they were lawyers or were calling on behalf of a lawyer or that they were judicial employees. The FTC is seeking civil penalties and an injunction to stop the allegedly illegal conduct. Do People Still Tamper With Odometers? Evidently so. On January 6, the Department of Justice announced indictments against two men for odometer tampering and money laundering. The indictments allege that the defendants used fictitious dealer names to buy highmileage used vehicles from a national vehicle leasing company and altered the vehicles’ odometers to reflect lower mileages. The defendants then allegedly altered titles to reflect the false mileages and sold the vehicles at wholesale automobile auctions. The indictment alleges that, in some instances, the title indicated mileage more than 100,000 miles less than the true mileage of the vehicle, and, as a result, the defendants received inflated prices for the vehicles they sold. Purchaser of Vehicle “As-Is” Not Prevented from Asserting Fraud Claim: Prior to buying a used car, the purchaser asked the salesman if the car had been in an accident because she did not want a previously damaged vehicle. The salesman told her the car had not been in an accident and that it was in good working order. The salesman also told her to contact the mechanic who worked on the car at a separate repair facility. The mechanic told her that he had replaced the alternator and there was nothing else wrong with the car. The buyer then bought the car without any warranty. A notice, the application for title, and the buyer’s guide that she signed stated that the car was sold “AS-IS.” Two days after purchase, the car started leaking fluids. The buyer towed the car to a repair facility and was told that the car had previously been in an accident, had serious damage, and was unsafe to drive. The buyer sued for fraud for the representations made by the salesman and the mechanic that induced her to buy the car. The trial court granted summary judgment for the buyer. The appellate reversed, finding that genuine issues of material fact existed concerning what the salesman and the mechanic said to the buyer, but noted that buying a car “as-is” does not automatically preclude the buyer from asserting a fraud claim. See Melton v. George’s Used Car Sales, Inc., 2014 Mich. u CONTINUED ON PAGE 28

NOTES FROM OUR FIELD DIRECTOR Alvin Melendez

VIADA Field Director Melendez Motors, Fredericksburg, VA FREQUENTLY ASKED QUESTIONS I was asked recently, what are the three most commonly asked questions by independent dealers? My simple answer was this... The number one question… HOW CAN I DRIVE MORE CUSTOMERS INTO MY DEALERSHIP? A. First we take a look at the website. Is it user friendly? Is the dealer’s location, phone number and hours of operation easy to find? Are the tabs for inventory, meet the staff, company history, etc. filled in? Are the pictures of the vehicles facing the same way, with the same angle, to ease the viewer’s eye? To maximize the customer’s interest, each vehicle should have at least 24 to 36 pictures. And most importantly, do you have a tab where your shoppers can see the testimonials of previous happy customers? This is very important in today’s social media climate; they may not trust you at first, but they trust what others say. B. Then we take a closer look at how the dealer handles procedures to ensure that all the data is inputted accurately. One way is to designate a person to do all the descriptions on your vehicle Inventory page and preferably the same person is taking all the pictures. Also, updating your website daily is a must. C. Know your market. What sells faster in your area? $2,000 – $5,000 vehicles or anything under

$10k? Or maybe higher? And are you selling mostly cars, trucks, luxury or sports cars? Then you have to establish if your market is primarily a cash buyer or finance? Are they low risk loans or high risk? Make sure you have the lenders in place to accommodate all of your customers’ needs. The second question is: HOW CAN I MAKE MONEY? (It may seem funny to some, but to most dealers it is a big problem) A. First we have to evaluate the way they buy their inventory. Many dealers make the common mistake of buying cars that need repairs in order to get what they think is a “good deal”. However, they fail to think about the monetary consequences. For example, it creates costly curtailments to floorplan companies due to the time it takes to get the repairs done. Most important of all, the out-ofpocket working capital for all of those expenses you don’t get back until you sell the car. Most dealers’ cash flow issues come from payroll expenses, high fixed expenses, too many curtailments at one time and too many repairs at a time. A “good deal” can cost you a lot more than expected. “Projects” can be good, but how many can you afford at one time. If you don’t watch your account daily, soon you will run out of cash. B. Don’t over advertise! Have a monthly budget based on sales

and adjust it on a month-bymonth basis. Know what is working, and don’t be afraid to change it up. C. Employees: Most dealers have a family member or employee that is not being productive but you have known them for a long time and you think you are helping them or owe them something. Whatever the circumstances may be, get rid of them now. As we say in the car business “It is either them or your business”. D. Manage your fixed-ops. Pay attention to all your credit card transactions, re-negotiate all your existing contracts like telephone, cable, etc. Try not to sign long term contracts with vendors, many of them offer the same services. If you sign up for a trial period, mark your calendar to know when it is over, and either cancel or add to your budget. Balance your checkbook daily, look at your floor-plan account every day to check the age report, average cost of car, fees taken, and most important, your titles. Print your titles and put them in your file folders; many times you can find issues with the title before selling the vehicle. And lastly, WHERE CAN I FIND INVENTORY AT A REASONABLE PRICE? The answer is simple, you need to have a very good staff in place in order for you, the buyer, to be able to get out and find the inventory. It takes multiple auctions per week and countless hours of research, running history reports and condition reports in order to find the right inventory. Remember one thing, the money is made when you buy the car. Here at VIADA we strive to provide our members with up-to-date information regarding the laws, regulations, policies, and procedures. If you have any questions or need consulting services for your dealership, please do not hesitate to call us. We want to partner with you for success!

SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

VIADA RENEWALS - DECEMBER 1ST, 2014 - JANUARY 31ST, 2015 30-49 YEARS

EF Motorsports ● C Edward Falk ● Chesapeake ● 43 Pembroke Auto Sales ● Thomas Joynt ● Virginia Beach ● 39 Price Is Right Auto Sales Inc ● Sonny Arrington ● Vinton ● 39 Cosner Brothers Body Shop Inc ● E Grant Cosner ● Charlottesville ● 34 Moss Motor Company Inc ● Sandra Moss ● Dillwyn ● 31 John Talley Motors Inc ● John Talley ● Mechanicsville ● 30 Rt 1 Auto Exchange, Inc ● Brandon Boltz ● Glen Allen ● 30

20-29 YEARS

Greensboro Auto Auction Inc ● Dean Green ● Greensboro ● 28 Campbell's Used Cars Inc ● Tunis Campbell ● Leesburg ● 27 Hockaday's Used Cars Inc ● Douglas Hockaday ● Newport News ● 26 H & H Used Cars Inc ● Harold Hoeltzel ● Purcellville ● 26 Cars, Guitars and More ● Margie Cooney ● Louisa ● 26 Lynn Douglas Motor Company Inc ● Lynn Douglas ● Manakin Sabot ● 25 Divers Motor Co ● Wilford Divers ● Boones Mill ● 25 Richmond Auto Auction ● Bruce McGeorge ● Richmond ● 25 C & G Imports Inc ● Gavin Marks ● Arlington ● 24 J & R Auto Parts & Salvage Inc ● James Moon ● Saxe ● 24 Jefferson Motors Inc ● Dwight Jefferson ● Gretna ● 24 Madison Motors ● Paul Foster ● Madison ● 23 Wood Brothers Auto Brokers ● Ronald Wood ● Portsmouth ● 21 Linton Motorsport Inc ● Scott Linton ● Manassas Park ● 20

5-19 YEARS

Central Virginia Rental ● Daniel Showalter ● Waynesboro ● 19 Auto Plus LLC ● Saeid Pooresmaeil ● Arlington ● 19 Woodson Auto Sales ● Thomas Woodson ● Goochland ● 18 VA Beach Truck Center ● Weldon Whitehurst ● Virginia Beach ● 17 Kimble's Auto Sales Inc ● Jack Kimble ● King George ● 16 Brookside Auto Sales ● Jerry Kidd ● Roanoke ● 16 Drive Away Cars ● Mark Cole ● Christiansburg ● 15 East End Auto Sales Inc ● Leo Gay ● Richmond ● 13 Jerry's Auto Sales ● Elva Pugh ● Danville ● 13 Semones Automotive Inc ● Richard Semones ● Blairs ● 13 Excel Auto Sales II ● Roy Brockwell ● Carson ● 13 Robert Young's Auto & Truck Inc ● Robert Young ● Roanoke ● 12 Ultimate Automotive Group ● Scott Mason ● Winchester ● 11 F & A Auto Sales Inc ● Frank Coates ● Colonial Beach ● 8 Willow Spring Garage ● Woodrow Herring ● Chantilly ● 8 Prestige Auto Brokers Inc ● Ben Mahgerefteh ● Portsmouth ● 7 Scott's Cars ● John Martin ● Vinton ● 7 Certified Motors ● Richard Green ● Norfolk ● 7 E & M Auto Sales ● Eric Jenkins ● Locust Grove ● 6 Mount Landing Sales ● Gene Sydnor ● Tappahannock ● 5

1-4 YEARS

C & P Auto Sales Inc ● Steve Konwerski ● Richmond ● 4 FC Auto ● Kian Nosrat ● Falls Church ● 4 C. R. Garland Auto Sales ● Clyde Garland ● Fredericksburg ● 4 Auto Use ● Melissa Smith ● Andover ● 4 Fastlane Performance ● Kim O'Conner ● Roanoke ● 4 Solis Autos ● Karen Solis ● Virginia Beach ● 4 Prime Drive, Inc ● Karim El Amrani ● Richmond ● 4 Ideal Auto Sales LLC ● Stephen Wyrick ● Troutville ● 4 Chartwell Motors ● Jerry Clark ● Clifton Forge ● 4 West Truck Sales & Service ● Donna Davis ● Chesapeake ● 4 GoldStar GPS Guided by Spireon ● Robert Phelan ● Chesapeake ● 4 Fred's Executive Auto ● Fred Abbasi ● Woodbridge ● 3 NextGear Capital ● Lori Kahre ● Carmel ● 3 Bell's Auto Sales ● Timothy Bell ● Lynchburg ● 3 Royal Auto Sales ● Necip Gulben ● Virginia Beach ● 3 G & J Motors LLC ● Owen Johnson ● Sandston ● 3 Cavalier Motor Works LLC ● Robert Buck ● Pound ● 3 Caribbean Auto Sales ● Jason Blanco ● Chesapeake ● 3 Nixon Auto Sales Inc ● Peter Nixon ● Virginia Beach ● 2 Diamond Imports, Inc ● Marcus Brown ● Roanoke ● 2 1st Choice Auto Sales Inc ● Leslie Tibbitt ● Newport News ● 2 Beach Auto Sales ● Mohamed Khedar ● Virginia Beach ● 2 Auto Chiefs Inc ● Raj Lal ● Fredericksburg ● 2 Benson Quality Cars ● James Benson ● Petersburg ● 2 Cars for Sale, Inc ● Mirna Rubio ● Dumfries ● 2 Manama Auto Sales ● Simon Chavez ● Norfolk ● 2 Wise Motors ● Wais Abbasi ● Fredericksburg ● 2 Henrico Motor Group, LLC ● Mahmood Mohammad ● Richmond ● 2 All Ride Motors, LLC ● Terry Ward ● Chesapeake ● 2 Mel's Truck & Auto Sales ● Melvin Dudley ● Vinton ● 1 Crown Auto Sales Inc ● David Watson ● Orange ● 1 Lundy Motors LLC ● Ashby Lundy ● South Hill ● 1 EcarGarage ● Brenda Withrow ● Fredericksburg ● 1 Finish Line Auto ● Bakhodur Nasridinov ● Manassas ● 1 South Side Auto Recycling, Inc ● Frank Webber ● Midlothian ● 1 First Landing Auto Sales LLC ● Mark Anderton ● Virginia Beach ● 1 RPM Auto Sales ● Randolph Alderson ● Danville ● 1 New Testament Automotive Ministry LLC ● Gary Proffitt ● Moneta ● 1 EZ Ride Auto Sales LLC ● Richard Byrum ● Windsor ● 1 Friedman Associates ● Neil Friedman ● Virginia Beach ● 1 New Bridge Auto Sales ● Melissa Johnson ● Waynesboro ● 1 AA Motors LLC ● Andy Almarode ● N Chesterfield ● 1 Monticello Motors LLC ● David Treccariche ● Charlottesville ● 1

VIADA NEW MEMBERS - DECEMBER 1ST, 2014 - JANUARY 31ST, 2015 Atkins Auto Deals LLC ª Shannon Atkins ª Luray ª V. London / E. Haley Bee Line Auto Group ª Samana Zaidi ª Sterling ª T. Allman / D. Sullivan Big Daddy's Towing & Recovery LLC ª Jonathan Mason ª Henrico ª V. London / D. Gripshover Caudill Motors ª Mark Caudill ª Atkins ª V. London / L. Church Copart ª Delinda Nelson ª Sandston ª A. Melendez / D. Boucher Eagle Auto Sales ª Raymond Seward ª Norfolk ª V. London / J. Davis East Coast Auto Brokers LLC ª Chuck Bollinger ª Chesapeake ª A. Melendez / D. Boucher F & F Auto Sales LLC ª Ray Alnasser ª North Chesterfield ª V. London / D. Gripshover High Performance Motors Inc ª Edouard Marroum ª Nokesville ª P. Iaricci / D. Sullivan Insight Motors LLC ª Isaac Abban Jr ª Richmond ª Dawnielle Intersport Performance ª Omar Hilmi ª McLean ª A. Melendez / D. Sullivan

Manassas Auto Truck ª Mike Aghili ª Manassas ª V. London / D. Sullivan Performance Motors LLC ª George Blankenship ª Bristol ª Larry Church Quality Auto Source Inc ª Scott Garber ª Tappahannock ª T. Allman / D. Gripshover Small Dealers Assistance Inc ª Gary Page ª Atlanta ª A. Melendez / D. Sullivan Star Cars Inc ª Michael Rastegari ª Fredericksburg ª A. Melendez / D. Sullivan Starzone Auto ª Rauf Cheema ª Sterling ª P. Iaricci / D. Sullivan Tad Alexander Motors ª Tad Alexander ª Stuarts Draft ª P. Iaricci / E. Haley USA Auto Inc ª Mike Abrarahadi ª Roanoke ª A. Melendez / B. White VA Cars Inc ª Lynda Schrimpsher ª Richmond ª M. Ellis / D. Gripshover Winchester Auto Auction ª Bryan Dougherty ª Bunker Hill ª A. Melendez / D. Sullivan

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

KEYS TO COLLECTIONS

!! BY DEE COX at Dealer Day District Supervisor of Federal Do n’t miss Dee Financial Services be able to make the payment. If your customer’s ability to make Collections can be as easy, or as after several attempts to reach their payment on time. During hard, as you make it. There are a the customer, and they have these times it is extremely few things you can do before the not responded, it is time to call important to be courteous and sale that will help with collecting the references. Remember, professional, as well as firm. later. For example, try to set you cannot discuss the account Treat the customer like you would your customer up for success with the reference. Only let the want to be treated. Work with the from the beginning. When are customer to find a solution that their paydays? When is their rent benefits both of you and stick to or mortgage due? If possible, it. When a definite date for the set their payment due date at payment is confirmed make sure a convenient time of the month the promise is kept. for them. Also, collect reference information, with all the other When you have exhausted stips, at the time of sale. This is all other resources to get the one of the most important things customer to pay the debt, you you can do during the closing of have no other option but to the loan because with certainty repossess the collateral. Use a you are going to need another bonded and insured repo agent way to reach your customer that knows the state repo laws. before the loan is paid out. Make Have your game plan ready as sure the customer signs the to what you are going to let the reference sheet, or it is not legal customer do when their car gets to use. If you are a BHPH dealer, picked up. You have two choices; have your collection guidelines you can let the customer bring the clearly outlined in your policies account up to date, or demand and procedures manual. If you payoff on the account. No matter are using a lender to finance the what decision you make by this vehicle, make sure you know point, the customer is going to their collection practices so you be upset. How the situation is can inform your customer at the handled, is what truly matters. closing. The stronger you close a Remember your reputation should person know that Mr. Smith listed loan, the less collection work you be worth more than a few dollars. them as a reference and you will have to do. Never get into a confrontation would appreciate it if they would or shouting match with the Keep in touch with your pass on the message to call you. customer. Stay professional and customers. If they are due on Your customer’s situation may state the facts of the account. the 7th, and do not pay or call, change during the course of the then call them on the 8th and Don’t miss Dee at Dealer Day. loan. Illness, loss of job, repairs give a courtesy reminder that She will be expanding further to the car – some common life their payment was due. Get a on this subject. For more circumstances that can affect promise date as to when they will information: d.cox@ffdnc.com

“How the situation is handled, is what truly matters. Remember, your reputation should be worth more than a few dollars.”

PAST QUALITY DEALER COLUMN BY BILL MOSS Moss Motor Company, Inc. 1991 Virginia State Quality Dealer When I was awarded the State Quality Dealer Award at the 1991 VIADA Convention, I was so pleased and excited! Getting the book together to submit was a good feeling to begin with. Asking people of influence in my community to write a letter about me was very positive. They were happy

to do so and it was a good feeling to see what they wrote. Putting the book together that included the letters and pictures made it a real history book for our company. The local newspaper did a feature story on Moss Motor Company after the award and that was a plus! The plaque hangs in my office today, and I call attention to it frequently when making a sale. The advertising that we got from the honor has been on going. We use the State Quality Dealer term in all print

ads. I give credit to Jimmy and Gail Davis for coming up with the idea of a front plate that has Virginia State Quality Dealer imprinted on it. Being recognized by my fellow Virginia dealers has been a good feeling.

SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

REASONS TO AVOID USING THE RULE OF 78s FORMULA IN RETAIL INSTALLMENT SALES CONTRACTS BY M. CHRISTINA FLOYD, ESQ. Some subprime automotive finance companies continue to use the antiquated Rule of 78s approach to calculate finance charges due under a Retail Installment Sales Contract when a customer pays the balance off early. The Rule of 78s is a mathematical formula that was devised in the pre-calculator/ computer days of the early 1900s as a quick way for lenders to calculate payoff amounts when a customer paid ahead on an installment purchase contract. Also known as the “sum-of-the-digits method”, the Rule of 78s gets its name from the sum of the numbers one through 12, which represents the number of months in a year. Under this approach, interest is pre-computed so that, for example, on a 12-month finance agreement the consumer would pay 12/78 of the total finance charge the first month, 11/78 the second month, 10/78 the third month, and so on. Thus, the Rule of 78s formula provides for extra interest charges in the early months of a finance contract, so that the finance company typically collects three-quarters of the interest on a finance contract in the first half of its term. Once a consumer signs for a finance agreement using the Rule of 78s formula, they are obligated to pay back principal plus the full amount of interest that will accrue over the entire term of the contract. If a consumer seeks to pay the balance off early, they are given a “rebate” in exchange for the cost of the number of digits remaining in the finance agreement’s term divided by the sum of the digits in the finance agreement’s life. As noted above, on a one year finance agreement, that sum is 78. If the balance is paid after the second month, the consumer is charged 10/78 (ten months, or digits, remaining over the sum of the months) multiplied by the total amount of interest. Thus, when a consumer pays off a finance agreement early under the Rule of 78s method, the finance company applies more of the consumer’s prior payments towards interest and less goes towards the principal balance. Since less is applied toward principal, the amount the consumer owes when they prepay will be

higher than expected and the higher the interest rate, the more that payoff amount is going to be. In contrast, with the typical simpleinterest Retail Installment Sales Contract the consumer is charged interest each day based on the balance they owe. So the faster they pay off the balance the less interest the consumer will pay. A simple interest finance agreement with no prepayment penalties rewards customers who pay ahead, which has made them more attractive to consumers and the norm in the automobile financing business. The Rule of 78s formula has long been on the radar of lawmakers. In 1992 Congress outlawed the use of the Rule of 78s formula in closed-end loans longer than 61 months. This restriction is reflected in Virginia’s current statute. Prior to the 1992 congressional action, U.S. Rep. John LaFalce of New York introduced a bill that would eliminate the use of the Rule of 78s formula in consumer credit transactions, although his legislation failed to pass. Nonetheless, although the Rule of 78s formula is still legal in Virginia as long as certain disclosures are made, the practice has been outlawed in 17 other states and, more recently, the Consumer Finance Protection Bureau has made consumer financing investigations a top priority, so I expect that it will not be long before they set their sights on finance companies who still use the Rule of 78s formula. Moreover, use of the Rule of 78s formula has come under fire by

consumer advocates who see the “rebate” as a way for companies providing financing for automobile purchases to pad the transaction by providing for a costly prepayment penalty for consumers who pay off their finance contracts early. This especially makes “buy here, pay here” automobile dealers targets for these advocates who see them as preying on credit-challenged consumers. As a result, use of the Rule of 78s formula should be avoided, as continuing to do so may only invite attention from regulatory agents and consumer attorneys who see this approach as predatory and unfair to consumers. If a dealer faces such attention, the outcome will most likely cost far more than any additional interest that may be earned on the front end of a contract. Plus, since computers are now readily available and their use in dealerships for preparing finance agreements is pretty much standard, there is no defensible reason for the Rule of 78s interest formula to be used, so dump those antiquated contracts and embrace the simple-interest route! If you have any questions about this article or need assistance in preparing a Fair Credit Compliance Program and Policy, please contact Chris Floyd at 757-213-6973 or by email: chris@ hrgclaw.com. This article is meant to bring awareness to this topic and is not intended to be used as legal advice.

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| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

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u CONTINUED FROM PAGE 13 - Prediction: Sunny with Headwinds discrimination and harassment complaints. However, the most frequent complaint is for retaliation. An employer can be liable for retaliation against an employee who complains even when there is not an underlying ground for a complaint. Have in place a procedure for handling all employment complaints. 4. The Internal Revenue Service is Always Active. The Internal Revenue Service is the agency that will enforce Obamacare requirements. Moreover, the IRS is regularly conducting audits for compliance with cash reporting. A dealer that receives cash or cash equivalents of more than $10,000 in any transaction or series of related transactions must report that to the Internal Revenue Service on a Form 8300, and it must report the filing to the customer by January 31st of the year following the year in which the report was made. Many dealers think that they need no specific policy because any deal with more than $10,000 cash or cash equivalents will be apparent. However, many reportable transactions result from financed deals, where part of the downpayment is with cashier’s checks that are not the proceeds of a loan. These deals will not always be caught on the sales floor, and the information for Form 8300 will not always be developed on the sales floor. A dealer should have a written policy instructing those on the front lines – salespeople, F&I personnel, and cashiers, what to look for, and there should be a backup to catch reportable deals. LEGAL CHALLENGES Dealers are increasingly finding themselves subject to legal challenges by state attorneys general, state government regulators, and private attorneys. A strong compliance program is essential for every dealership. That requires standards of conduct that set forth the dealer’s expectation of how employees will operate, training employees in what you expect, oversight and management to see they are performing as you expect, and disciplinary action where they do not. 5. Complete Complaint Handling is Essential. Dealers often ask the one thing they can do to prevent legal actions. While one can never prevent all legal actions, the most effective tool is to have a complete complaint handling system. Most often, lawsuits arise from complaints not properly handled. The answer: Treat every complaint seriously, log it in, have someone responsible to handle it, and either

resolve it or know why it cannot be resolved. 6. Arbitration Can be an Important Protection. The CFPB may be reviewing predispute arbitration provisions, but as of now there has been no change. One of the best protections a dealer can have is a predispute arbitration provision with a class action waiver. The provision must be professionally drafted, however. Courts have been active in striking down arbitration provisions that are one-sided or unfair. 7. Do a Form Review. When is the last time you looked to be sure your forms protect you as best they can? Are you using all forms required under state and federal law? Too often dealers adopt forms and don’t change them for years. When was the last time you had your forms reviewed to make sure they provide the most effective protection for your dealership? 8. Use A Deal Completion Checklist. Even where your forms are up to date and provide the protections you need, it hurts if they are not used properly in each deal. A deal completion checklist provides a roadmap to lead F&I representatives through the deal process. The checklist then provides a means by which reviewers can make sure a deal is neat and complete. OPERATING ISSUES There is no more complex business than a car dealership which is actually many businesses – sales of vehicles, sales of parts, sales of repair services (including body repairs for many dealerships), sales of finance and ancillary products, and accounting for profitability in all those departments. For 2015, some issues merit attention. 9. Have A Vendor Policy. Do not contract with vendors that will make you responsible to pay for goods or services you don’t receive as you expected. Carefully check out any vendor. Talk to other customers, investigate using business rating services, and make sure you are dealing with a substantial business that can answer to you for its failures. Start the process of acquiring any goods and services by asking whether you need them. In any contract, carefully review the duration. A contract should be month

to month unless there is some reason that it should be for a longer term. On term contracts, what is the renewal provision? It should not be an automatic renewal for the same term, but it should roll over on a month-tomonth basis. Provide that if you are in a dispute with the vendor it will be determined where you do business and not in some distant state where the vendor hopes you will never hire a lawyer. 10. Protect Your Data. Your data is a substantial portion of the goodwill of your business. Many vendors want access to your DMS, and dealers often provide unfettered access. Why? You are probably paying your vendor handsomely for the goods and services you buy. Why help the vendor create a profit center through access to your data which it can use in compilations it may sell. Do not grant open access to your DMS. Push any data a vendor needs. Make sure the vendor agrees to limit use of the data to servicing your account. 11. Beware of Unfunded Liabilities. Increasingly, dealers are establishing programs providing rights to customers for free services – oil changes, loaner vehicles, state inspections, and the like. If you have such a program, how are you funding it? Often, dealers assume that a buyer for the dealership will assume the obligations, but not all buyers view these programs as valuable or beneficial. To the extent possible, create protections for your dealership by funding the programs or providing that they can be ended if you sell or close your business. As always, dealer operations are difficult and require strong and active management with attention to the fundamentals... Beware of the headwinds.

SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

VIRGINIA INDEPENDENT AUTO DEALERS PAC CONTRIBUTORS The independent dealers political action committee was established in 1987 as “INDEPAC”. In 2010, to better identify the PAC contributions to Legislators, the name was changed to “Virginia Independent Auto Dealers”. Virginia Independent Auto Dealers, a political action committee, is licensed in the Commonwealth of Virginia to solicit funds from independent dealers for contribution to candidates for statewide elections. These include the offices of Governor, Lt. Governor, Attorney General, and candidates for the General Assembly. All contributions are voluntary. Report includes contributions made OCTOBER 1, 2014, through JANUARY 31, 2015.

GOLD ($500 to $999 annually) ENTERPRISE CAR SALES

SILVER ($250 to $499 annually) AUTO CENTER INC / SMOOTS

PORTER’S AUTOMOTIVE, INC.

BRONZE ($100 to $249 annually) AIRLINE AUTO SALES – U SAVE ALARS, INC. AUTO VILLA

BROOKSIDE AUTO SALES CAR CREDIT NATION CARS, GUITARS AND MORE DAVIS AUTO CENTER, INC.

DON’S AUTO EXCHANGE, INC. HRFT FINANCE VIRGINIA TRUCK & TRAILE SALES, INC.

BASIC ($45 to $99 annually) AUTO BY DESIGN LLC BEACH AUTO SALES BILL’S AUTO SALES

CAMPBELL’S USED CARS, INC. CHERRYDALE MOTORS KIMBLE’S AUTO SALES, INC.

PERFORMANCE MOTORS LLC ROSSER MOTORSPORTS LLC TRI-CITIES AUTO AUCTION

u CONTINUED FROM PAGE 22 - The CARLAWYER© App. LEXIS 2025 (Mich. App. October 23, 2014). Dealership that Allegedly Threatened Buyer with Repossession for Failure to Sign New, Materially Different Financing Contract Subject to Unfair and Deceptive Trade Practices and Fraud Claims: A woman co-signed her son’s vehicle retail installment sales contract. The woman alleged that an employee of the dealership contacted her several weeks later and stated that the financing had fallen through and that she needed to sign a new RISC. The employee also allegedly stated that if she did not sign the new RISC, the car would be repossessed. A dealership employee then went to the woman’s home and presented her with the new RISC, which was backdated. The employee allegedly told her that the contract terms were the same. The woman alleged that the employee physically obscured the top half of the RISC when she signed it. The second RISC almost doubled the monthly payment that was allegedly required under the original RISC. After the mother and son defaulted, the car was repossessed. The woman sued the dealership for unfair and

deceptive trade practices, fraud, and common law extortion. The trial court granted the dealership’s motion for summary judgment, and the Court of Appeals of North Carolina affirmed in part and reversed in part. The appellate court found that a material question of fact existed as to whether the dealership committed an unfair or deceptive act when it threatened to repossess the car if the woman did not sign the second RISC. If such an act took place, the resulting harm would be that the woman was subjected to a subsequent RISC on less favorable terms. The appellate court noted that questions remained regarding whether the woman reasonably relied on the dealership’s assertion that the terms of the second RISC were the same as the original contract. If she did, her alleged failure to read the second RISC would not preclude recovery. There was also a question regarding whether she signed the second RISC under duress because of the dealership’s threat to repossess the car. Next, the appellate court concluded that the claim for fraud should survive summary judgment based on the same evidence supporting the UDTP claim.

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

The woman presented evidence that the dealership intentionally and falsely represented to her that it could repossess the car in order to induce her to sign the second RISC. With respect to the common law extortion claim, the appellate court found that extortion is not a cognizable tort under North Carolina law. See Hester v. Hubert Vester Ford, Inc., 2015 N.C. App. LEXIS 2 (N.C. App. January 6, 2015). --------------Tom (thudson@hudco.com) and Nikki (nmunro@hudco.com) are partners in the law firm of Hudson Cook, LLC. Tom has written several books, available at www.counselorlibrary.com. Tom is also the publisher of Spot Delivery®, a monthly legal newsletter for auto dealers, and the Editor in Chief of CARLAW®, a monthly report of legal developments for the auto finance and leasing industry. Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. Spot Delivery, CARLAW and the books are produced by CounselorLibrary. com LLC. For information, visit www. counselorlibrary.com. Copyright CounselorLibrary.com 2014, all rights reserved. Single publication rights only, to the Association. (8/14) HC# 4833-7228-6236

VIADA BOARD MEETING JANUARY 2015

VIADA’s Board of Directors invested two days for the January meeting. The first day was at the General Assembly visiting legislators and were rewarded by a private tour of the Capitol as guests of Delegate Hugo from Northern Virginia. The second day was reviewing the status of VIADA – its financial reports, member benefits, educational training opportunities, growing membership, and meeting with VIADA’s Lobbyist. April is Volunteer Month – reward your State and District Officers and Directors with a special “Thank You” for their generosity of time and resources representing the members of VIADA.

SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

The Internet Corner Have you seen VIADA’s new Responsive Auto Classifieds site?

BY JOHN SUMMER JTZEnterprise.com 877-286-1564 JTZ Enterprise proudly introduces to car buyers and VIADA members the new Responsive design at www. VaUsedCarDealers.com! If it has been a while since you have visited Virginia’s best classifieds website for car shoppers, then point your browser to the site and see how we are revolutionizing online car shopping. The first stage of a complete website makeover started over six months ago with the dealers’ side of the site. The area, which requires a log in was redesigned and the tools available in that area grew, exponentially. For only $40 a month, VIADA members now have access to unlimited OFAC checks, a Craigslist posting tool, a Facebook App, Reputation management, and a CRM area for managing leads, just to name a few of the features. The last new feature we completed was the Window Sticker and Buyer’s Guide Creation tool. Many dealers have responded favorably to this feature and it allows you to first set up as many different warranty plans as are needed, then it allows you to assign those warranty plans to each of your vehicles at the same time you print the warranty stickers. It is so easy to use and there is no additional cost to use this new tool. You have the option of using your own paper to print the FTC stickers and Window Stickers or you can purchase our quality paper stock, both of which stick to the glass on all four sides, like you see on a franchise lot. We even have stickers that can be printed with a laser printer and stick to the outside of the glass. Once we completed the Dealer Only side of the website, we moved towards improving the shopping experience for all car buyers. Every effort was made to make the website work for all users, regardless of the type of device they are using to view it. That meant rolling out a completely new type of programming to produce the first Responsive Classifieds website available only to VIADA members. Responsive is the new buzz word and it simply means any website utilizing this new type of programming will respond, or adapt, to various screen resolutions and operating systems. Until now, the

only way a website owner could ensure their site is able to be viewed by those who surf online with a small device like a phone or tablet was to create a second website, usually with a .mobi extension. These secondary sites are referred to as mobile sites and they are usually a stripped down version of the matching .com site. The Responsive site allows us to produce a more consistent experience for all shoppers, regardless of which device they use to view the site. However, this is not the only reason we sought out a new programming language. It turns out that when you improve the shopping experience for mobile users, you also get the attention of Google and others. Search engines are constantly visiting this site in an effort to determine what search keywords and phrases they would attach to the site for future searches. At the same time they are spidering the site, they are also rating the experience a mobile user has when they visit the site. Once you improve the mobile experience, either with a mobile site or a Responsive design, we have seen the traffic coming from search engines grow as much as 40% or more, almost over night! Search engine traffic is the most coveted type of traffic and if you can increase your search engine traffic substantially, you will also increase your website’s ROI. Once a shopper starts their search for their next used car or truck at VaUsedCarDealers.com they now see several new tools available to them. These new tools are designed to keep the shopper engaged with the website longer. For instance, if the shopper has created a search for a vehicle that matches their needs, desires, and/or price range, they can now save their search so that when they revisit the site they don’t have to start all over with creating that search. Likewise, the new site allows shoppers to save vehicles they feel match their needs. Often times a shopper will start looking for their next automobile days or even weeks before they are actually ready to purchase something and this new feature allows them to keep an eye on what they want while they are working on getting their money together, for instance.

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015

About a year ago we implemented one of the most successful lead generation tools when we introduced the Tell A Friend lead. Our shoppers who find a vehicle they could be interested can fill out a simple form to have the URL of that listing sent to their friend or family member. Well, since then we have a new powerhouse of lead generation implemented in the new Responsive auto classifieds website! Now shoppers can click a button to save multiple listings they are interested in. With one click they can compare those listings side by side. They can narrow down their search results or continue adding and comparing other listings. Once they have their search results narrowed down the car buyer can set an Auto Alert. This alert will go out automatically any time the selling dealer edits anything about any listing they have an Alert monitor set for. This means if a shopper has saved one of your listings and you subsequently change the price, add to the description, or better yet, you sell it, an automatic email will go out to the shopper. Other new features include things like our new SEO friendly urls, enhanced vehicle displays and our “lazy load” feature which eliminates the need to click to the second page of search results. Even if your search produces thousands of listings there is never a need to click to the next page. Each search starts off automatically with 25 listings and when the shopper scrolls close to the bottom, another 25 listings pop up and continue doing so until all listings are displayed. This has substantially increased the number of listings getting displayed. If you have not seen the new VaUsedCarDealers.com take a minute to check it out. When you are ready to put the power of membership on your side, sign up with www.VaUsedCarDealers. com and start seeing the benefits so many other members already enjoy! Happy shopping!

656 S Military Hwy, Virginia Beach, VA, 757 487 3464, Website: www.twaa.com

Wednesdays: 8:30 - GSA Sales Monthly 9am - Inops & Power Sport Sale 10am - Dealer Sale Saturdays - Public Sale 10am    

New 72 Acre, State-of-the-Art Facility 8 Lanes, Fully Automated, Heated and Cooled Live Online Bidding Convenient Location

Up to 1,500 Units Weekly! 700+ New Car Trades 500+ Fleet/ Lease and Repo’s

New Location info:

656 S Military Hwy, Virginia Beach, VA 23464 757-487-3464 Office 757-485-2227 Fax

Highlights:

        

Located 10 minutes from Norfolk International Airport and the Ocean Front , 30 minutes from Newport News Int’l Airport. Floor plans available from AFC, NextGear, Auto-Use Live Simulcast from AWG Sale Preview Available on Autoniq 24/7 Security and Dealer Access Full Transportation Services Full Reconditioning Services Restaurant on-site. Member VIADA, VADA, CIADA, NIADA, NADA, AutoIMS and NAAA Visit twaa.com for current listings, contact form, dealer applications, directions, etc.

264 S Military Hwy



Indian River Rd

We’re one of the largest full service Auctions in the Mid-Atlantic Region! We are looking forward to serving you! Mike Hockett - Pres, Nate Seeley - AGM, Dody Nolan - Fleet Lease Mgr, Tyrone Houston - Sales Mgr, Dustin Hockett - Registration/Arbitration, Janice Hicks - Transportation SPRING 2015 | THE VIRGINIA INDEPENDENT NEWS |

Virginia Independent Automobile Dealers Association 4700 Thoroughgood Square Virginia Beach, VA 23455 Symbol of Quality

OCTOBER 22-25, 2015

To make Reservations please call the Hilton Virginia Beach Oceanfront at 757-213-3000. Group Rate: City View- $139 / Ocean View- $159, all guestroom rates are subject to tax and local taxes, currently 14%, plus $1.00 per room per night occupancy tax. Cut off date is Monday, September 21, 2015.

MAKE PLANS TO ATTEND AND GET AN EARLY START! 32

| THE VIRGINIA INDEPENDENT NEWS | SPRING 2015