The Virginia Independent News: Winter 2015

VOLUME 36 NUMBER 1 • WINTER 2015

THANK YOU VIRGINIAUSEDCARDEALERS. COM PARTICIPANTS

NVMS NATIONAL MOTOR VEHICLE TITLE INFORMATION SYSTEM

THANK YOU VIADA ASSOCIATE MEMBERS F&I SCHOOL GEARED FOR INDEPENDENT DEALERS

PRESS RELEASE:

AMERICAN INCOME LIFE INSURANCE COMPANY (AIL) REGULATORY ISSUES REMAIN IN THE SPOTLIGHT

Symbol of Quality WINTER 2015 | THE VIRGINIA INDEPENDENT NEWS |

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IT’S YOUR LOCAL

AUCTION

LANE. BUT IT’S THE WORLD’S LARGEST

Virgina Manheim Fredericksburg | Manheim Harrisonburg

manheim.com | 866•Manheim ©2014 All rights reserved.

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| THE VIRGINIA INDEPENDENT NEWS | WINTER 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

COLUMNS

4 FROM THE PRESIDENT: DONALD BOUCHER, CMD 6 EXECUTIVE DIRECTOR’S NOTES: LOIS KEENAN 7 CURRENT VIRGINIAUSEDCARDEALERS.COM PARTICIPANTS 8 LADIES AUXILIARY 10 AROUND THE COMMONWEALTH 13 VIADA BOARD MEETING: OCTOBER 2014 16 THANK YOU ASSOCIATE MEMBERS OF VIADA 20 UPCOMING VIADA EVENTS & SELECT PARTNERS 21 MEMBER BULLETIN BOARD 23 NOTES FROM OUR FIELD DIRECTOR: ALVIN MELENDEZ 24 VIADA RENEWALS: SEPTEMBER 1 - NOVEMBER 30, 2014 25 VIADA NEW MEMBERS: SEPTEMBER 1 - NOVEMBER 30, 2014 28 PAC: OCTOBER 1, 2014 - NOVEMBER 30, 2014 29 ANNOUNCING NEW PRE-OWNED VEHICLE DISCLOSURE!

FEATURES

STEPHANIE HAND Publications publications@viada.org

9 NATIONAL MOTOR VEHICLE TITLE INFORMATION SYSTEM (NVMTIS)

ASHLEY DAZZO BookKeeper / Membership ashley@viada.org

12 UNLOCKING THE TRUE POTENTIAL OF YOUR DEALERSHIP

BY Chip Cooper, ComSoft

BY David Algood, AMAC

VICKIE LONDON Inventory Manager vickie@viada.org

14 THE TOP EXCUSES SALESPEOPLE USE

VIADA OFFICERS 2014-2015

BY Charapp & Weiss, LLP

PRESIDENT Donald Boucher, Jr., CMD

19 SIX WAYS TO INCREASE YOUR FIXED OPERATIONS

PRESIDENT ELECT Weldon Whitehurst

BY Alvin Melendez, CMD

19 F&I SCHOOL GEARED FOR INDEPENDENT DEALERS

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.

BY John Chapin

15 REPORTING A SUSPICIOUS CASH TRANSACTION

BY Karen Culpepper, ADS Management Group

22 CARLAWYER©

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

26 PRESS RELEASE: AMERICAN INCOME LIFE INSURANCE COMPANY (AIL)

BY VIADA

27 RETAKING A SPOTTED VEHICLE

BY Charapp & Weiss, LLP

29 REGULATORY ISSUES REMAIN IN THE SPOTLIGHT

BY NextGear Capital

30 THE INTERNET CORNER

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

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

!

Wow, what a turnout for Dealer Day, which was held in Fredericksburg on November 11th. We had 65 dealers with their key employees and a total of 106 in attendance.

Apparently there is a lot of interest in ways to improve your business by networking with fellow dealers. Topics covered were Business Plan 101; Controlling Fixed Expenses, Floor Planning, Inventory Management, Advertising, Websites, Marketing, Inventory Acquisition, Employee Handbook, BHPH 101, and starting a Related Finance Company. This seminar offered something for everyone. Thanks to all the Vendors and Independent Dealers who attended and assisted. We hope to make the next Dealer Day on April 28, 2015, in Charlottesville even better. Please feel free to contact us with any suggestions you may have for topics you would like us to discuss. I would like to extend a special thanks to the staff of VIADA for all their hard work behind the scenes organizing Dealer Day. Alvin Melendez our Field Director, Pete Iaricci our VIADA Director of Education, and Lois Keenan our Executive Director did an excellent job promoting this event on a one-to-one basis with our dealer base. I would like to thank our sponsors, ADP, AFC/Spartan Financial, CarMax, Classic Insurance Services, ComSoft, DealerRE, DealerTrack, Diamond Warranty, Federal Financial Services, Fetch, Manheim Ove, NextGear, STARS GPS, Virginia Dealer Magazine and Westlake Financial. Without our sponsors this event would not have been possible. Please thank them when you see them for their generous support. All that attended learned many ways to safeguard their business and make them more profitable. We are very fortunate to have so much talent in our dealer base such as Rob Fisher, John Good, Andrew Wiley, Butch Gordon, Joe Tate, and Rick Johnson. These individuals did an excellent job in presenting to us their expertise in their fields.

Our membership as of this date November 14, 2014, is 922. My goal with the assistance of you, my fellow dealers, is 1000 plus before I leave office as President of VIADA. We are currently 4th in the country for membership. Thanks to all my fellow dealers and Vendors who help promote VIADA to our Independent Dealers. Vendors, I thank you for your continued support for VIADA. Our success is your success. Together we can work to help educate fellow dealers and continue to make them more profitable in these constantly changing times. Education now is a must. As I have already said, this business changes more now in six months than it used to change in six years. Attend the next Dealer Day and learn about these changes the easy way instead of the hard way when it is too late. We already have a commitment from the CPA Firm Clifton Larson Allen to be with us at the next Dealer Day. They are extremely fluent in our industry. Bring all your questions for them to address. They service independent dealers with one to five hundred employees.

Weldon Whitehurst of VA Beach Truck Center, our President-Elect, just spent three days on Capitol Hill with NIADA and would like to report he and his lovely wife, Susan, had a wonderful time. The mood on Capital Hill was guarded but much more positive than last year when I attended. Rob and Dale Fisher also attended. Hopefully, with Republicans in control, we as small business people might get some tax relief. I hope to see you at your district meetings, and also please attend the next Dealer Day in the Spring. I promise you, as any Dealer who attended the last Dealer Day will tell you, it is well worth your time.

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

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

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

| THE VIRGINIA INDEPENDENT NEWS | WINTER 2015

www.viada.org/members/blogs

** Be sure to read NextGear’s article “Regulatory Issues Remain in the Spotlight” on page 29 **

RETAIL. WHOLESALE. SALVAGE. SPECIALTY.

Notes

BY LOIS KEENAN, VIADA Executive Director 2015 will bring many challenges and opportunities to VIADA beginning in January as the General Assembly convenes. A few things on the radar screen include combining motor vehicle dealers in the Code of Virginia with motorcycle, RV, and trailer dealers which will require a change in the representation on the Motor Vehicle Dealer Board. Additional topics of interests will be potential changes to the car tax and/or mechanics and storage liens.

We have already seen many of our dealer members being visited and assisted with questions regarding dealership compliance and management as a result of VIADA’s Field Director, Alvin Melendez, busy on the job! (See Alvin’s article in this magazine) More dealers are joining our VIADA family through membership. One member joined the Association, received immediate help with compliance issues, and within two weeks had a CFPB agent call on him to purchase a vehicle. The agent tested various points in the buying process. He allowed the Buyers Order to be completed to include the purchase of a service agreement. Several days later he called to cancel the service agreement. Our new VIADA member called Alvin for guidance.

Pete Iaricci, our Director of Education and Consultant, also answers many dealer member questions daily.

He is pleased to have another staff member on board qualified to assist members as the calls continue to increase. Pete has been working with a number of our members who are being confronted with law suits. He is also continuing to teach the PreLicensed Dealer/Operator classes and keep the Recertification classes updated. We are pleased to have Joe Tate of Peaks Motors, Past President and Quality Dealer of VIADA, teach the Recertification Classes along the I-81 corridor.

VIADA’s Dealer Days will continue with the next one scheduled April 28. Each class gets better and better now that we have dealers participating in the planning and execution. We know relevant topics are being offered because the bulk of planning comes from dealers who are walking the walk every day. The blessing is; they are willing to share how they are dealing with current issues and keeping up with technology which is a must.

VIADA’s current offerings of educational opportunities are unprecedented. Our hope is to have every VIADA member a benefactor. This is your opportunity to stay in step with compliance as well as discover ways to be more financially sound.

Embrace change as a blessing, not a curse.

HAPPY NEW YEAR – WE’RE PROUD TO HAVE YOU AS A VIADA MEMBER!!

DISPLAY YOUR VIADA LOGO AND CODE OF ETHICS FOR CONSUMERS TO SEE!

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| THE VIRGINIA INDEPENDENT NEWS | WINTER 2015

Current VIRGINIA USED CAR DEALERS.COM Participants

Symbol of Quality

Contact JTZ Enterprise (540) 286-0801 for more information about this VIADA Member Only benefit!

WINTER 2015 | THE VIRGINIA INDEPENDENT NEWS |

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Symbol of Quality

2014 QUALITY LADY OF THE YEAR

SUSAN WHITEHURST Virginia Beach Truck Center

We meet people all the time: they come in and out of our lives; but then, occasionally, someone enters our lives and we realize immediately that they are truly special. These are the people with whom we form deep, enduring bonds. The recipient of the 2014 VIADA Ladies Auxiliary’s Quality Lady Award is such a person as that.

I first met this wonderful lady about five years ago and in the ensuing years, I have found her to be an inspiration to me and to the other members of the Ladies Auxiliary. She has made an indelible impression on each of us. She is kind to all, generous with her time, hard-working, goal oriented, and focused.

This year’s recipient lives in Virginia Beach with her husband of twenty two years. They have two daughters and three grandchildren. She has been a

special education teacher for twenty two years, but retired in 2013, due to continuing health issues.

She has served the Ladies Auxiliary as Corresponding Secretary, Vice-President, and Chairperson of the Scholarship Committee during the five years that she has been a member of this group.

She enjoys spending time with her grandchildren and is active in her church (Gateway Free Will Baptist Church), and community. She likes to participate in all kinds of philanthropy, especially that which is geared towards children with special needs.

Her life exemplifies the “Quality” as in the VIADA Ladies Auxiliary’s “Quality Lady”.

It is my honor and privilege to announce this year’s VIADA Ladies Auxiliary’s Quality Lady is Susan Whitehurst.

BY HELEN CRIGGER 2013 Quality Lady

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!

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| THE VIRGINIA INDEPENDENT NEWS | WINTER 2015

NATIONAL MOTOR VEHICLE TITLE INFORMATION SYSTEM (NMVTIS) What is it and why every used car dealer should consider accessing it?

BY CHIP COOPER ComSoft Dealership

Management & Marketing Software Solutions WHAT IS NMVTIS AND WHAT IS ITS PURPOSE? NMVTIS stands for “National Motor Vehicle Title Information System” and was created as a part of the Federal Anti-Car Theft Act of 1992. It is an electronic system that provides consumers and dealers with valuable information about a vehicle’s condition and history. NMVTIS is a database administered by the American Association of Motor Vehicle Administrators and is overseen by the United States Department of Justice.

Prior to purchasing a vehicle, NMVTIS allows consumers and dealers to find information on the vehicle’s title, most recent odometer reading, brand history, and, in some cases, historical theft data. NMVTIS is the only vehicle history database in the United States that NMVTIS reporting agencies such as junk/salvage yards, insurance carriers, dismantlers and metal recyclers are required to report information by Federal law.

Its purpose is to protect consumers from fraud, unsafe vehicles, and to assist in preventing stolen vehicles from being resold. It allows state titling agencies to verify validity of ownership documents prior to issuing new titles. Dealers and consumers are also guarded against unknowingly purchasing damaged vehicles with brandings that can diminish the value of the vehicle. These brand designations are not lost when the vehicle moves from state to state.

WHAT TYPE OF INFORMATION IS (AND IS NOT) INCLUDED IN A NMVTIS REPORT? NMVTIS reports include (when available): • Junk, Salvage, Flood and Insurance Total Loss Data • Theft History Data (if any) • Rental/Taxi/Police Usage • Current and Previous State of Title • Title Issue Dates • Odometer Readings • Current and Previous Brands • Dates that Brands were applied • Report may also include Lien Count

NMVTIS reports do not include: • Repair Histories • Maintenance Histories • Data from a few nonparticipating states WHAT TYPES OF VEHICLES ARE AVAILABLE IN A NMVTIS REPORT? NMVTIS reports include information (when available) for: automobiles, trucks, buses, motorcycles, recreational vehicles, motor homes and tractors. NMVTIS may not include commercial vehicles if the vehicles are not a part of the state’s primary database. These records may be added at a later time.

WHY SHOULD MY DEALERSHIP ACCESS A NMVTIS REPORT? Anytime you intend on purchasing a motor vehicle, or taking one in on trade, there isn’t any silver bullet to protect yourself against fraud. A thorough inspection and appraisal is always warranted; especially with trade-ins and “off the street” purchases. Test-drives to ascertain unusual rattles and checking body panels and door jambs for paint overspray may indicate body damage, the smell of mildew or mold could be an indication of water damage.

Checking the color of the fluids can be an indication of engine and transmission wear. Knowing how to buy motor vehicles today is an art form. Bodywork has equally become an art form. It’s increasingly more difficult to spot professionally repaired damage by some body

shops. Arming your dealership with a NMVTIS report is just another tool that technology brings to the table in order to assist both you and the general public in making a more informed purchase decision. Prior to taking any trade-in, or purchasing that vehicle off the street, it would make good common sense to run a NMVTIS report. Sometimes, customers “forget” to disclose any brands associated with the vehicles that they intend on selling or trading in.

HOW CAN I ACCESS A NMVTIS REPORT? WHERE CAN I SEE A SAMPLE REPORT? One way to access a NMVTIS report is to visit www.uscarhistory.com.

From there, you can view sample reports in both English and Spanish.

You can create an account at the site and purchase credits for pulling NMVTIS reports. The NMVTIS reports can be printed or accessed later within a 90-day window before they expire. If you have a Dealership Management Software provider, such as www.comsoft.com, then the reports can be set up to integrate within your DMS for quicker access and review.

Currently, the price for each NMVTIS report is $4.95. For Virginia dealers only, upon checkout, if you enter a promo code of “VIADA” (without quotations), you will be afforded a 13% discount off of the price of each report.

The Smartest Way to Title & Register Motor Vehicles

Virginia’s fastest growing electronic solution www.TitleTec.com

(855) 336-9024

WINTER 2015 | THE VIRGINIA INDEPENDENT NEWS |

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AROUND THE CO DISTRICT 1 TIDEWATER VIRGINIA JAMIE DAVIS District 1 President, Davis Auto Center DISTRICT 1 Greetings from a cold and blustery Eastern Shore of Virginia! Winter is on its way, so let’s stay warm by running around selling cars!! Our most recent District 1 meeting was held on Tuesday, November 4th, Election Day. We had two great presenters that spoke to a crowd of over 30 dealers in attendance. Chris Lagey from Sinclair Communications spoke with us about Sinclair’s new search engine marketing angle to get the specific customer that is looking for your car through display advertising. Chris recommended his co-presenter to me, Bill Meacham, of The Barter Authority. Bill is based in Richmond and has an office in Norfolk. He spoke of an exchange system that has been used since the 1800’s, bartering. Bill explained to us how his system works. He is the link from one business to the other and is very hands on. Chris can be reached at clagey@ wnis.com; and Bill can be reached at BMeacham@BancMarc.com.

As I am writing this, VIADA’s second Dealer Day has come and gone, having had great attendance! Thank you to everyone that attended and sponsored this event. I hope everyone who attended took at least one thing home with them from the event, which is what makes it a success for everyone!

A season of celebrations is upon us, and while the advertisements on TV and radio, along with the retailers would have you believe that all is right with the world, I ask you to also remember that this time of the year can be the hardest for some.

Whether it is the loss of a loved one, a soldier overseas away from their family, the homeless who are afraid to ask for help, or the ones battling their addictions, please do what you can this holiday season to help your fellow man.

DISTRICT 2 RICHMOND VIRGINIA DAVID GRIPSHOVER District 2 President, Crown Motors DISTRICT 2 At our last meeting I combined another winning sponsor/speaker duo that attracted new attendees. No one went away without new ideas to implement in their businesses.

Mike Limongelli of Diamond Warranty, sponsor of the meeting, spoke of their product, their growth in the industry, and how they can help dealers provide

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affordable aftermarket products to protect their customers. Also in attendance was Richmond’s Diamond Warranty representative Dawnielle Watson.

Don Boucher, VIADA State President, spoke on the benefits of Buy Here Pay Here as a business model. He gave some pros and cons and how to comingle BHPH with cash sales, etc. to help balance cash flow. He gave his own company’s experiences including successes and not so successful experiences. A very engaging question/answer session followed.

We welcomed the following new members into the Association: Approved Auto LLC, General Auto Sales LLC, Mid-Atlantic Auto Sales Inc., MTK Auto, N Motion Auto Sports, Red Rooster Auto Sales LLC, Rohrer Bus Sales, Starr Trading LLC, Victory Lane Auto Sales & Accessories, Vision Auto LLC, Westlake Financials, The Car Man Company, M & E Auto Sales.

2014 has quickly come to a close and the 2015 General Assembly Session will begin January. Dealers can expect to see some changes to salvage laws and conversation is increasing to attempt to find some relief from stolen catalytic converters whether by legislation or regulation.

Wishing everyone a great end of year and New Year…

DISTRICT 3 ROANOKE VIRGINIA BRAD WHITE District 3 President, Bluegrass Auto Sales DISTRICT 3 Radford Auto Auction hosted and sponsored District 3’s meeting that provided a relaxed setting with great food and fellowship.

Special guest speaker, Randy Scott of the Motor Vehicle Dealer Board, spoke of most frequent problems among dealerships: • Dealers listing vehicles on Craigs List Consumer site rather than on the Dealer site – use company name or VADLR when posting • Problems with recording “Exempt” mileage • Proper notice when necessary to leave dealership during posted business hours – note on door including date and time of leaving and time expected back – can use MVDB form • Copy of state safety inspection receipt in deal jacket • No signed agreement for consignment sales • Old cardboard 30-day tags can no longer be used. If left, peel off tag information (destroy) and mount new 30-day tag on remainder of cardboard for a sturdier surface.

| THE VIRGINIA INDEPENDENT NEWS | WINTER 2015

• Transport tags are still in use The following new members were welcomed into the Association: Auto Repair Specialist, Cannaday’s Auto Sales, R C Restoration & Repair Inc. State Office report included a new member benefit through American Insurance Life that gives each association member in good standing a $3,000 Accidental Death & Dismemberment certificate of coverage, a 60% discount card toward prescription drugs, dental, and vision through participating companies, and a Child Safety Kit. The three-week membership drive hosted by Bryan Buchanan Auto Auction netted 10 renewals. Thanks to President Brad White, Membership Chairman Sonny Arrington, Chairman of the Board Barry Riddleberger, Vice President David Carroll, John Taylor, Harvey Mays, Alvin Melendez and Lois Keenan for participating in the drive.

DISTRICT 4 NORTHERN VIRGINIA DON SULLIVAN District 4 President, Sullivan Auto Trading DISTRICT 4 At the last District 4 meeting we welcomed and thanked sponsors Chase Financial, NextGear Capital and Lynn Hooper, CMD, Dealer Compliance Consultant. Jordan Cox of NextGear spoke of their company which resulted from the merger of Dealer Services and Manheim Floorplan companies and are the largest floorplanner in the nation. At least 50% of their business is with independent Dealers. Their representatives are all trained through NIADA’s Certified Master Dealer program in order to be of more help to dealers in using their floor plan program and to be more successful.

Glenn Hendricks and Kevin O’Connell of Chase Auto Finance gave background of their company’s recent merging activities and are now handling both prime and subprime financial transactions. They are equipped to handle most financing needs in a timely manner. They are open seven days a week for the convenience of dealers. All contacts go through Richmond, VA. New members welcomed into the association included Ace Motor Group, Auto Connection, Auto-Land Inc., Automax of Chantilly, Best Deal Auto Outlet LLC, Capital Auto Inc, Capital Motors LLC, Car Cloud Auto Group, Carex Inc., Carfax Inc., Cars 4 Best, D & S Imports LLC, E-Smart Auto Group, Five Stars Auto Sales LLC, Fox Motors Inc., Fredericksburg Truck & 4 x 4 Inc, JBBM Auto Sales LLC, JW Motors, L & S Auto Brokers, Maxkar Motors, Metro Sales Corp, Mohler Auto Sales, Motor Maxx, Reliable Motors Inc., Valley Used Cars Inc., VA Auto Trader Co.

OMMONWEALTH VIADA President Don Boucher talked about the association and the industry and some changes VIADA is making to grow the Association and help dealers be more successful. Adding Alvin Melendez as a Field Director and adding additional educational opportunities are two of the leading changes.

Rob Fisher was congratulated for being selected VIADA’s 2014 Quality Dealer.

The only missing link of the meeting was YOU. Hope to see you next time!

DISTRICT 5 SOUTHERN VIRGINIA BRENT TOONE District 5 President, Lakeview Motors DISTRICT 5 JTZ Enterprises sponsored the meeting and was given an opportunity to elaborate on the products and services they offer to help dealers develop websites to place their dealerships on a level playing field with their competitors, offer dealer training, on-line advertising and warranty products. He offers individual assistance to dealers in all areas. He also hosts the Virginia Used Car Dealers website – a VIADA members’ only benefit that allows members to post their inventories and have it uploaded to other websites, Facebook, Craig’s List, etc., for only $40 per month.

District 5 will be contributing to Back Pack Buddies and to churches for Thanksgiving meals.

VIADA Field Director Alvin Melendez shared several tips from VIADA Dealer Day, especially the importance of having an employee handbook, the importance of job descriptions, employee performance evaluations, disciplinary documents, etc. to protect employers from costly litigation.

Discussions followed on ways to grow the Association through membership drives, the importance of the dealer board having the email address of each dealer, curbstoning, and violations of advertising.

ComSoft who will provide information on Dealer Management Software and how it can benefit Dealers with savings of time and money by providing many reports to help dealers evaluate their current status and identify areas that need to be addressed for success will sponsor next meeting.

DISTRICT 6 WESTERN VIRGINIA MATT STEVENS District 6 President, Forestry Equipment of VA DISTRICT 6 Federated Auto Parts represented by Tom Jones and Ed Hagar hosted District 6’s last meeting – a company known well

by the dealers in the area. Tom noted that Federated is a family owned company with a national distribution whose motto is “out the door in four minutes”. Fisher Auto Parts is in 15 states. The company was started in Staunton, VA, in 1929. Dealers were invited to experience their product and service.

New members; Burford Automotive LLC dba Fix It Rick’s Auto Repair in Lynchburg and Rivard Auto LLC in Madison Heights were welcomed into the Association.

VIADA Field Director Alvin Melendez spoke to the members about his activities in the field and invited members to follow him on facebook.com/infoviada.

John Taylor announced the Walk for Alzheimers was held the weekend before and thanked the group for their contribution.

DISTRICT 7 SHENANDOAH VALLEY VIRGINIA EDDIE HALEY District 7 President, Rt 11 Valley Auto Sales DISTRICT 7 Members and guests welcomed speaker/sponsor Lendmark Financial Services to their recent meeting as well as first time attendees Car Outlet, Armstrong’s Auto Sales, and Holiday Signs.

Following a terrific meal at a “neighborhood favorite”, Lendmark Financial Services representatives gave a background of their 8.5 year old subprime company and introduced other representatives present. Lendmark plans to open 60 additional offices during the next year. Customer service is paramount for them – they deal with hardships during a contract period and average a 15 – 30 minute turn around within business hours. After hours they are available by appointment. It is the company’s policy that a Lendmark employee must inspect each vehicle.

Executive Director, Lois Keenan, announced a correction to the last News In Brief i.e. a 1099C must be sent by Related Finance Companies to customers from whom they can no longer collect on a skip. Once this is done, the dealer cannot pursue collections. The customer must report the amount as income. She talked about the difference between impoundment and mechanics and storage liens where storage is concerned. VIADA can provide the Code section if anyone is in need. For those who may not be receiving their News In Brief, please contact VIADA to check the email they have on file.

Also in cases where theft is involved, it is important to lay off an employee in question and take time to investigate that the allegations are accurate before firing.

New members since the last meeting were Car Outlet, Euro Cars LLC, and

Plainview Management Corp.

The group discussed “How much do customers know about VIADA? Suggestions of ways to inform customers included using VIADA logo in dealership ads, posting the VIADA Code of Ethics, have the district take out an ad in the local industry papers, etc.

Members were encouraged to watch their mail and emails for the next meeting after the first of the New Year.

DISTRICT 8 SOUTHWESTERN VIRGINIA LARRY CHURCH District 8 President, Cardinal Auto Sales

DISTRICT 8 Tri-Cities Auto Auction sponsored a well-attended meeting and dinner at the Olive Garden Restaurant in Bristol. Allen Ramsey shared his experiences that led him to open Tri-Cities. They are growing in number of consignments running weekly and hope to add a third lane in the near future. He invited members to visit them.

District 8 welcomed new members A1 Auto LLC, McCarty Auto Sales, and Highlands Motor Company into District 8.

Ted Bowman visited dealers with VIADA President Don Boucher and VIADA Field Director Alvin Melendez in the Bristol and Abingdon area during the afternoon as well as at ADESA East Tennessee during their morning sale. Three new members were signed and received an in depth look at the benefits of being a member.

VIADA’s President shared some of his business successes that everyone could relate to such as using VIADA Member Benefit, FETCH!, to secure insurance for customers who either need insurance or need a lesser premium so they can afford a car payment – there is no cost to the dealer and the dealer can be listed as a lienholder immediately! This helps them make more sales. The new program now offered by Craigs list, even though it costs $5 per vehicle, is working well for him and is very affordable. He talked about the audits he has been through this past year and some tips to help attendees be more prepared with record keeping.

During the question and answer session he responded to a request about starting a Related Finance Company.

VIADA’s Field Director, Alvin Melendez, is approaching his new job of signing members through building relationships.

He has the background in the industry and in consulting with dealers to help them reorganize their businesses for success. He has a good work ethic and a passion for the members. He stressed the importance of education for dealers.

While it has always been important, it is more so now with all the changes taking place that are driven by technology and the economy.

WINTER 2015 | THE VIRGINIA INDEPENDENT NEWS |

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UNLOCKING THE TRUE POTENTIAL OF YOUR DEALERSHIP Part 1: The Need for BHPH

BY DAVID ALGOOD, AMAC Director of Sales & Marketing The Buy Here Pay Here (BHPH) business can be a great resource to increase cash flow to withstand the economic ups and downs of the car business, while building wealth for multiple generations. Many of you that are already in or thinking of entering the BHPH business have probably noticed the aggressiveness of both finance companies and banks to put secondary customers in new and used cars. As the subprime cycle is getting closer to its end, it is imperative that dealers adapt quickly and prepare themselves for the future.

On August 20, 2014 Experian revealed some numbers that should concern nearly every dealership that is relying solely on outside banks and finance companies to finance their secondary customers. According to Experian, repossession rates for finance companies rose 143%, while the average charge off increased nearly 13% in Q2 year-over-year.

Because of this, we can anticipate significant tightening in the subprime sector during the coming months. This will drive secondary customers back into BHPH stores, making the business more attractive than ever for dealers. This article is the first in a 5 part series explaining the key steps to running a successful BHPH operation including Capital, Inventory, Underwriting, Collections and Building/Maintaining a Customer Base.

While most dealers realize there are numerous advantages to being in the BHPH business, most do not have sufficient capital to make it work.

A dealer looking to enter the BHPH business will likely need between $500,000-$5,000,000 of working capital to fund their operation. For this reason nearly all BHPH dealers use a third party to fund a portion of their operation, often times allowing them to lower their self funding needs to less than $100,000. Finding a capital provider that will provide enough money to help you grow steady and profitably, while also understanding the business is very important.

Ace Motor Acceptance Corporation (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. The BHPH business is an excellent choice for dealers who do not want their livelihood to be at the mercy of secondary banks.

The BHPH business can be extremely profitable. Many dealers are able to cover 100% of their credit losses with interest income, meaning they are able to make 100% of the markup on their car, which in many cases is $4,000-$5,000 per unit. If your store could benefit from additional sales with great margins then entering or expanding in the BHPH business may be for you.

David Algood is the Director of Sales and Marketing at AMAC, a rapidly growing finance company doing business in the Eastern half of the United States. Anyone wanting more information can contact AMAC at 704-8827100 (ext. 7509) or visit their website at www.acemotoracceptance.com.

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| THE VIRGINIA INDEPENDENT NEWS | WINTER 2015

VIADA BOARD MEETING OCTOBER 2014

VIADA’s State Officers and Directors participating in VIADA’s October Board Meeting - pictures reflect the fellowship enjoyed in addition to hours spent in business meetings for both the VIADA and Ladies Auxiliary Boards making plans to provide new programs and strengthen the firm foundation already established.

WINTER 2015 | THE VIRGINIA INDEPENDENT NEWS |

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THE TOP EXCUSES SALESPEOPLE USE

BY JOHN CHAPIN After 26+ years in sales and sales management, I’ve heard many excuses from struggling salespeople.

Here are the most popular ones and my thoughts on each.

THE TOP SIX EXCUSES THAT LEAD TO SALES FAILURE Excuse #1: Our prices are too high.

First and foremost, if low price were the only factor, there would only be one company in business in each industry: the company with the lowest price. My guess is that you have many competitors. I’m also guessing that the lowest-price provider has the smallest segment of the market, or they’re really close to the bottom.

This is because they have the least to offer. As the saying goes, “You can have low price OR you can have value and service.” Very few people want the least value and service. In fact, study after study shows that only 7% of people buy on price. This 7% also complain the most and are the least loyal. How about you? Do you always buy based upon the lowest price? Do your family and friends?

Truth be told, I can’t think of anything that I pay the lowest price for. In almost every industry I’ve been in, I was selling the highest priced, or one of the highest priced, items in that industry, and I sold far more than any of my competitors. Not only will people pay for more service, more peace of mind, and less headaches, most people, at least the smart and successful ones, seek it out. They are actually looking to spend more in order to live a happier, more carefree life. Considering that 93% of people buy on value and 7% on price, if you constantly find yourself in a price war, you are not adequately selling yourself and your products value, thus people simply see you as a commodity. Work hard to find your value and to find a way to articulate it to have the most impact.

Excuse #2: It’s the economy or my market.

Can the economy affect business?

Yes. Yet, in every industry, there are companies and salespeople that do more business in a “bad” economy than they were doing in the previous good one. A down economy weeds out those that were just riding the good-economy wave. As a result, although there is less business to be had in a down economy, there are

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also fewer competitors fighting for the business.

Performance comes down to one thing: activity level. Most salespeople do less, usually much less, in a downeconomy, buying into the negative news. Meanwhile, the salespeople who are working harder and investing more time, effort, and energy, are scooping up all the business. So while a tough economy may make business more difficult, it is absolutely up to you and your activity level to create your own economy. And for the people who think that their particular market is a problem, the fact is there are people in your market, selling the same products to the same customers, and they are selling a lot more than you and not only surviving but thriving, so it’s not the market.

“When it comes to excuses, everyone always thinks that their situation is different and worse than everyone else’s, but neither is true.”

Excuse #3: The successful people are just lucky.

This one usually follows the “it’s the economy” or “my market” excuse, when I point out the salespeople who are thriving. The unsuccessful people always have a reason as to why the successful people are successful and it never has anything to do with the real reason. The successful people are out doing what needs to be done in order to be successful. They are making the calls, following up, building the relationships, and doing the hard work that the unsuccessful people are avoiding.

Excuse #4: That won’t work with the people I call on.

I generally hear this one when it comes to working hard and performing “unpleasant” tasks such as prospecting. People use this blanket excuse because they are

| THE VIRGINIA INDEPENDENT NEWS | WINTER 2015

afraid to face rejection and don’t want to step out of their comfort zone. As with Excuse #2, your market and customers are not that unique and different. Again, there are people in your market, talking to the same people you are, and they have highcontact rates, plenty of prospects, and plenty of sales, and no, they aren’t simply lucky.

Excuse #5: There’s too much competition.

This one comes from the same salespeople who use the “price”, “economy”, and “market” excuses.

These are people who haven¹t prepared and thus don’t have a compelling value proposition.

Excuse #6: The people I’m talking to just don’t get it.

This one comes from salespeople who are unprepared and lack compelling reasons as to why their product and solution is the best. Like many of the excuses above, this one can come down to a lack of conviction and being sold on your product, but more than that, it usually comes down to a simple lack of preparation.

Typically these excuse-makers don’t have a solid presentation, sales skills, closing skills, and answers to objections and other questions or issues that arise on the sales call.

Bottom line: as a salesperson you are supposed to be a professional communicator, therefor, if someone doesn’t get it, it’s your fault, not theirs.

When it comes to excuses, everyone always thinks that their situation is different and worse than everyone else’s, but neither is true. What is true is that whatever excuse you have, there is someone out there in the world who had it worse and overcame it. So stop working so hard on excuses and start working hard on the activities that will make you successful.

John Chapin is a sales and motivational speaker and trainer. For his free newsletter, or if you would like him to speak at your next event, go to: www.completeselling.com John has over 26 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia.

For permission to reprint, e-mail: johnchapin@completeselling.com.

REPORTING A SUSPICIOUS CASH TRANSACTION

BY CHARAPP & WEISS, LLP Here is a situation that arises from time to time: your dealership is selling a car to a customer who wishes to pay $8,000.00 in cash. The customer has said things that have raised the suspicions of the salesperson and the sales manager about the source of the cash.

Question: The customer is not giving us enough cash to make it reportable, but he has said things that make us suspicious. We think we should deliver the car and mark the ‘suspicious’ box on the IRS 8300 Form. Is that the proper thing to do?

Answer: The proper thing to do is to not deliver the car and get involved in the transaction. If you are suspicious about the source of cash and believe it may be from a criminal enterprise, then you should not do the deal. The authorities are liable to consider it as participation in a money laundering scheme even if you self report on the IRS 8300.

Question: It’s too late. The car is delivered and we are paid. We are still suspicious of the transaction. Now what do we do?

Answer: Protect the dealership by both contacting authorities and filing an IRS Form 8300. By doing so, you make the authorities aware of the deal that concerns you, and filing the IRS Form 8300 with the ‘suspicious’ box checked is also an appropriate action to notify the IRS. Question: Since we filed the Form 8300 with the ‘suspicious’ box checked for an amount less than would have required us to file a report, do we still have to notify the customer of filing Form 8300?

Answer: No. In this case, filing the form was voluntary. The dealership is only required to provide notification to a customer of filing Form 8300 if the filing was required. In this circumstance, you are prohibited from sending notification to the customer that a “suspicious” transaction report has been filed..

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Thank You

ASSOCIATE MEMBERS OF VIADA For Your Support!

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Listed below, by catergory, are all of our wonderful Associate Members who help us grow as an association. Thank you for supporting us.

ADVERTISING AUTO & TRUCK MARKETPLACE 1228 Ballentine Blvd Norfolk VA 23504 757-831-6104 jen@autoandtruckmarketplace.com JENNIFER SCHRATWIESER CARS.COM 175 W Jackson Ste 800 Chicago IL 60604 540-494-5479 bnielsen@cars.com BEN NIELSEN SINCLAIR COMMUNICATIONS 999 Waterside Dr Ste 500 Norfolk VA 23510 757-640-8500 clagey@wnis.com CHRIS LAGEY THE ROANOKE TIMES 201 W Campbell Ave Roanoke VA 24011 540-981-3408 Erin.stanley@roanoke.com ERIN STANLEY VIRGINIA DEALER MAGAZINE 3593 Timberview Rd Powhatan VA 23139 804-840-9488 Joe.beasley@comcast.net JOE BEASLEY AUCTIONS ABC LANCASTER AUTO AUCTION 1040 Commercial Ave E Petersburg PA 17520 717-569-5220 ggehman@auctionbroadcasting.com GREG GEHMAN ABINGDON AUTO AUCTION 20216 Auction Dr Bristol VA 24202 276-644-1684 MICHAEL ANDERSON ADESA EAST TENNESSEE AUTO AUCTION PO Box 247 Falls Branch TN 37656 423-348-8419 jeff.mcleod@adesa.com JEFF MCLEOD ADESA KNOXVILLE 1011 ADESA Pkwy Lenoir City TN 37771 865-988-8000 gkoepfer@adesa.com GREG KOEPFER ADESA WASHINGTON DC 43375 Old Ox Rd Dulles VA 20166 703-996-1100 jonperhach@adesa.com JONATHAN PERHACH

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BEL AIR AUTO AUCTION PO Box 516 Bel Air MD 21014 410-879-7950 mnichols@bscamerica.com MICHELLE NICHOLS

ROANOKE AUTO AUCTION INC 1570 Underhill Ave SE Roanoke VA 24014 540-982-6640 raaauto@aol.com LOREN BRUFFEY SR

CAPITAL CITY AUTO AUCTION 600 Winfield Rd St. Albans WV 25177 304-201-2270 joepyle@mtstateaa.com JOE PYLE

SOUTHSIDE VIRGINIA AUTO AUCTION PO Box 3330 Chester VA 23831 804-796-6556 EDIE HESS

CENTRAL VIRGINIA AUTO AUCTION 100 Myers Dr Charlottesville VA 22901 434-951-1070 lalbrecht@mycvaa.com LORRAINE ALBRECHT GREENSBORO AUTO AUCTION INC 3907 W Wendover Ave Greensboro NC 27407 336-299-7777 dean@greensboroaa.com DEAN GREEN GREENVILLE AUTO AUCTION INC 4330 Dickinson Ave Greenville NC 27834 252-355-4111 billy@greenvillencautoauction.com BILLY WILLIS MANHEIM FREDERICKSBURG 120 Auction Dr/PO Box 5117 Fredericksburg VA 22403 540-368-3510 craig.amelung@manheim.com CRAIG AMELUNG MANHEIM HARRISONBURG 3560 Early Rd/PO Box 1086 Harrisonburg VA 22801 540-434-5991 Karl.kiracofe@manheim.com KARL KIRACOFE MANHEIM NORTH CAROLINA 317 Bagley Rd/PO Box 760 Kenly NC 27542 919-284-4052 Ellie.johnson@manheim.com ELLIE JOHNSON PEOPLES AUCTION CO INC T/A PAC 1340 Head of River Rd Chesapeake VA 23322 757-421-2525 peoplesauction@aol.com WESLEY PEOPLES RADFORD AUTO AUCTION INC 2500 Tyler Rd/PO Box 1167 Radford VA 24141 540-639-9011 sales@radfordautoauction.com DAVID SALE RICHMOND AUTO AUCTION 3800 Deepwater Terminal Rd Richmond VA 23234 804-232-7355 rhampton@richmondaa.com BRUCE MCGEORGE

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TIDEWATER AUTO AUCTION 656 S Military Hwy Virginia Beach VA 23464 757-487-3464 mhockett@taa.hrcoxmail.com MIKE HOCKETT CHARITY EGGLESTON SERVICES 3525 N Military Hwy Norfolk VA 23518 757-233-6670 Atkinsonjr.paul@egglestonservices.org PAUL ATKINSON JR THE CAR MINISTRY 929 W Broad St #205 Falls Church VA 22046 703-278-9299 rogrpenn@netscape.net ROGER PENN THE SALVATION ARMY 6528 Little River Tpke Alexandria VA 22312 703-642-9270 Evelyn_sears@uss.salvationarmy.org EVELYN SEARS THE SALVATION ARMY \5524 Virginia Beach Blvd Virginia Beach VA 23462 757-216-4228 Jocelyn_owens@uss.salvationarmy.org JOCELYN OWENS FINANCE COMPANIES A & M FINANCE 4920 Virginia Beach Blvd Virginia Beach VA 23462 757-456-9311 Brooke.amfinance@yahoo.com MATT MARSCHEIDER ACE MOTOR ACCEPTANCE CORP 111 Cupped Oak Dr Ste F Matthews NC 28104 704-882-7100 russ@acemotoracceptance.com RUSS ALGOOD ADS MANAGEMENT GROUP 506 N Main St Ste A Suffolk VA 23434 757-287-7925 adscfarris@aol.com CARL FARRIS

ATLANTIC FINANCIAL SERVICES 424 Thistley Ln Chesapeake VA 23322 252-202-4422 bstaples@afsloans.com BURNIE STAPLES

MARKONE FINANCIAL 6410 Southpoint Pkwy 3rd Fl Jacksonville FL 32216 904-899-8300 rspradlin@mark-one.net TOMMIE GUNVILLE

AUTO USE 45 Haverhill St Andover MA 01810 978-475-4883 msmith@autouse.com MELISSA SMITH

AUTOMOTIVE FINANCE CORPORATION 838 Old George Washington Hwy N Chesapeake VA 23323 757-485-5045 mary.jordan@autofinance.com MARY JORDAN

NAE FEDERAL CREDIT UNION 755 N Battlefield Blvd Chesapeake VA 23320 757-410-2000 astout@naefcu.org AMY STOUT

NEXT GEAR CAPITAL 1320 City Center Dr Ste 100 Carmel IN 46032 317-571-3845 lkahre@nextgearcapital.com LORI KAHRE

CAR FINANCIAL SERVICES INC 11020 David Taylor Dr Charlotte NC 28262 757-503-3506 Brian.perryman@carfinancial.com BRIAN PERRYMAN

NATIONAL FINANCE LENDERS 14645 NW 77Th Ave Ste 203 Miami Lakes FL 33014 605-828-8820 accounting@nalenders.com O F RAMOS

CAROLINA FINANCE 1312 E Little Creek Rd Norfolk VA 23518 757-366-0503 ksumrell@carolina-finance.com KEITH SUMRELL

PROFESSIONAL FINANCIAL SERVICES OF VA LLC PO Box 811 Spartansburg, SC 29304 757-599-4438 Brandon.bolin@pfs-corp.net MARK MCDONALD

CC CAPITAL LLC 7209 Pomander Ln Ste B Chevy Chase MD 20815 866-211-0114 davidp@res-finance.com DAVID PUTNAM

ROUTE ONE 31500 N Western Hwy #200 Farmington Hills MI 48334 248-882-4667 STACIE JONES

CHASE CUSTOM FINANCE 3900 Westerre Pkwy 3rd Fl Richmond VA 23233 804-934-5541 Glenn.m.hendricks@chase.com GLENN HENDRICKS

SPARTAN FINANCIAL PARTNERS 961 E Main St Spartanburg SC 29302 804-385-9781 cbickford@spartan-partners.com CLIFF BICKFORD

COASTAL CREDIT LLC 3852 Virginia Beach Blvd/PO Box 9410 Virginia Beach VA 23452 757-340-6000 jbrister@coastalcreditllc.com TODD BRISTER

TEBO FINANCIAL SERVICES INC 4801 Dressler Rd NW Ste 194 Canton OH 44718 888-441-4344 ctodaro@tebofinancial.com ROB JAMES

COMMONWEALTH AUTO CREDIT 1073 W Mercury Blvd Hampton VA 23666 757-951-0600 clewis@commonwealthautocredit.com CHARLES LEWIS

TIDEWATER MOTOR CREDIT 6520 Indian River Rd Virginia Beach VA 23464 757-579-6444 x6303 tcsdas@twcs.com DAVID SCHRENK

DEALER FUNDING PO Box 888759 Atlanta GA 30356 877-538-5492 sbailey@dealerfundingllc.com SHAUN BAILEY

UNION FIRST MARKET BANK DEALER DIVISION 1773 Parham Rd Henrico VA 23229 804-254-6200 Charles.muncy@bankatunion.com CHARLES MUNCY

FNI INC 2474 Walnut St Ste 281 Cary, NC 27518 888-973-9776 david@myfni.com DAVID BAFUMO FEDERAL FINANCIAL SERVICES INC 116 E Market St Elkin NC 28621 336-526-5191 d.cox@ffsnc.com DEE COX LENDMARK FINANCIAL 1862 Abbey Rd Charlottesville VA 22911 434-872-0173 bhyley@lendmarkfinancial.com BRET HYLER MARINER FINANCE 3301 Boston St Ste 201 Baltimore MD 21224 443-573-4830 loskin@marinerfinance.com LAIRD OSKIN

UNITED AUTO CREDIT CORP 1071 Camelback St Ste 100 Newport Beach CA 92660 949-224-1917 wgiddarie@unitedautocredit.net FRANK MARRACCINO WESTLAKE FINANCIAL 5912 Barnstable Ct Glen Allen VA 23059 804-955-9990 kblankenship@westlakefinancial.com KEVIN BLANKENSHIP FLOOR PLAN COMPANIES AUTOMOTIVE FINANCE CORPORATION 838 Old George Washington Hwy N Chesapeake, VA 23323 757-485-5045 mary.jordan@autofinance.com MARY JORDAN

GPS GOLDSTAR GPS GUIDED BY SPIREON PO Box 2987 Chesapeake VA 23320 757-576-3010 info@atlanticautoaid.com BOB PHELAN STARS GPS PO Box 10 Thomasville NC 27361 Ph: 336-476-7828 Fx: 336-476-3365 adouglas@stars-gps.com ALLEN DOUGLAS HANDICAP INDEPENDENT LIFESTYLES INC 4880 S Amherst Hwy Madison Heights VA 24572 434-846-7510 carrie@ilifestyles.net CARRIE WEEKS MITS OF VIRGINIA 2075 W Main St Waynesboro VA 22980 540-932-7300 mobility@ntelos.net RICHARD BALDWIN MOBILITY SUPERCENTER 7450 Midlothian Tpke N Chesterfield VA 23225 804-231-7774 kcrenshaw@mobilityva.com KAYE CRENSHAW RIDE-AWAY HANDICAP EQUIPMENT CORPORATION 6059 E Virginia Beach Blvd Norfolk VA 23502 757-455-9889 rbenson@ride-away.com RANDEL BENSON INSURANCE CARLTON WRIGHT INSURANCE AGENCY 631 Abney Rd NW Roanoke VA 24012 540-366-0613 hmays@cwionline.com HARVEY MAYS CLASSIC INSURANCE SERVICES 4880 Sadler Rd Ste 110 Glen Allen VA 23060 888-508-7731 jcreasy@classicinsuranceservices.com JIM CREASY ESG INSURANCE & FINANCIAL SERVICES 3601 LaGrange Pkwy Toano VA 23168 757-741-4040 mike@esgi.net MICHAEL WARREN

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u CONTINUED FROM PAGE 17 FETCH 210 Laskin Rd Ste 100 Virginia Beach VA 23451 855-553-3824 joe@fetchaquote.com JOSEPH KINDLEY FRIEDMAN ASSOCIATES 233 Business Park Dr Virginia Beach VA 23462 757-420-7606 neil@friedman-insurance.com NEIL FRIEDMAN GEICO LOCAL OFFICE DEALER HOTLINE 7453 Tidewater Dr Norfolk VA 23505 757-480-4147 bewillis@geico.com BEN WILLIS HAMPTON INSURANCE AGENCY LLC PO Box 1737 Hampton VA 23669 757-812-4792 hiains@yahoo.com CHARLES ELLIS KEYSTONE INSURERS GROUP 1995 Point Township Dr Northumberland PA 17857 570-473-2146 lsimpson@keystoneinsgrp.com LORI SIMPSON MISCELLANEOUS

SOUTHERN COPIER PO Box 82 Mechanicsville, VA 23111 804-752-6154 Bev.mauck@southerncopier.com BEVERLY MAUCK Office Supplies PARTS AND SUPPLIES A+ PRICE IS RIGHT AUTO PARTS & SUPPLIES 341 Walnut Ave Vinton VA 24179 540-982-8777 ROBERT COX E & M AUTO PAINT & SUPPLY PO Box 1050 Harrisonburg VA 22803 540-433-2471 TERRY WHITMORE HUB CAP & WHEEL OF VIRGINIA BEACH 414 Newtown Rd Virginia Beach VA 23462 757-228-1671 arvilanderson456@gmail.com ARVIL ANDERSON MA’S LOCKSHOP 114 Chautauqua Ave Portsmouth, VA 23707 757-215-4839 carkeyman@hotmail.com MANUEL NATAL

AMERICAN RECOVERY ASSOCIATION LES MCCOOK 5525 N MacArthur Blvd Ste 135 Irving TX 75038 972-755-4755 les@americanrecoveryassn.org Repossession

WAYNE’S WHOLESALE 4929 Blackfoot Cres Virginia Beach VA 23462 757-235-5893 WAYNE GREENE Dealer Forms and Supplies

DEALERMATCH 2 Concourse Pkwy Ste 200 Atlanta GA 30328 678-645-2746 Ellen.hoy@dealermatch.com ELLEN HOY Dealer to Dealer Platform Trades

DEALERTRACK 115 Poheganut Dr Ste 201 Groton CT 06340 571-408-5614 john.hancock@dealertrack.com JOHN HANCOCK

HOLIDAY SIGNS PO Box 519 Waynesboro VA 22980 540-416-3154 mhackley@holidaysigns.com MARK HACKLEY Signs JTZ ENTERPRISE CUSTOM WEBSITE DESIGN 175 Nottingham Dr Fredericksburg VA 22406 540-286-0801 webmaster@jtzenterprise.com JOHN SUMMER LYNN HOOPER, CMD 1910 Leo Ln Alexandria, VA 22308 703-221-6555 lynnhooper@hoopersqualitycars.com Consulting MCPHILLIPS, ROBERTS & DEANS, PLC 150 Boush St Ste 1100 Norfolk VA 23510 757-640-7190 wroe@mrdcpa.com WALTER ROE Accounting Firm TJH AUTOMOTIVE INC 3820 Electric Rd Roanoke VA 24018 540-772-4850 Speedee1@cox.net TOM HAAS Repair shop

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TITLETEC 528 Pinewood Dr Virginia Beach VA 23451 757-469-0310 don.mcnamara@titletec.com DON MCNAMARA SERVICE CONTRACTS / WARRANTY COMPANIES 1ST CHOICE MBC PO Box 58 Roxboro NC 27573 336-597-3333 bob@1stchoicewarranty.com RONNIE THOMAS ADS MANAGEMENT GROUP 506 N Main St Ste A Suffolk VA 23434 757-287-7925 adscfarris@aol.com CARL FARRIS AUTO SERVICES COMPANY (ASC) 971 Coley Dr Mountain Home AR 72653 703-888-7000 Paulgus911@gmail.com PAUL GUSTAFSON AUTO USE 45 Haverhill St Andover MA 01810 978-475-4883 msmith@autouse.com MELISSA SMITH

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DEALERRE 7488 Compromise Hill Rd Gloucester VA 23061 757-532-3938 timbyrd@timbyrd.net TIM BYRD DIAMOND WARRANTY CORPORATION 9 N Main St Ste 4 Pittston PA 18640 800-384-5023 smcarthurdwc@earthlink.net SAMUEL MCARTHUR GWC WARRANTY PO Box 7900 Wilkes-Barre PA 08702 570-687-2185 kgood@gwcwarranty.com JOHN TODD NEXT GEAR CAPITAL (See ‘Floor Plan Companies’) PREFERRED WARRANTIES INC 200 Pinebrook Pl/PO Box 278 Orwigsburg PA 17961 800-548-1121 hsluzis@warrantys.com HELEN SLUZIS THE PENN WARRANTY CORPORATION 1018 Hanover St Wilkes-Barre PA 18706 800-356-9441 Michael.toms@pennwarrantycorp.com MIKE TOMS SOFTWARE AUTO MANAGER INC 12340 Santa Monica Blvd #203 Los Angeles CA 90025 800-300-2808 Alex.braun@automanager.com ALEX BRAUN AUTO STAR TECHNOLOGY 1300 Summit Ave Ste 800 Fortworth, TX 76102 817-377-2995 antonio.rajan@autostarsolution.com ANTONIO RAJAN COMMERCIAL SOFTWARE INC (COMSOFT) 5214 Western Blvd Raleigh NC 27606 919-851-2010 Chip.cooper@comsoft.com CHIP COOPER FRAZER COMPUTING INC PO Box 569 Canton NY 13617 888-963-5369 mike@frazer.biz MIKE FRAZER WAYNE REAVES SOFTWARE 6211 Thomaston Rd Macon GA 31216 800-701-8082 bob@waynereaves.com WAYNE REAVES VEHICLE HISTORY REPORT CARFAX INC 5860 Trinity Pkwy Ste 600 Centreville, VA 20120 703-934-2664 JOHN EAGER

SIX WAYS TO INCREASE YOUR FIXED OPERATIONS

BY ALVIN MELENDEZ, CMD VIADA Field Director

easy it is for your customers to schedule a service appointment through your website or via your mobile device? Make sure you always have someone available in the service department to schedule appointments and answer questions.

1. GIVE YOUR CUSTOMERS REASONS TO RETURN Treat them well, wow them, and earn their trust.

2. MARKETING People need to continuously see your name to remember you are still there. Use your data! Market to customers who are no longer coming to you for service and offer them a special promotion, implement processes to communicate, including follow-ups. I would try to do it on a bi-weekly basis, since most consumers get paid every two weeks.

3. CONVENIENCE Make it easy for customers to receive service for their vehicle at your location(s) – open extended has for them. How

4. TRAIN & INCENTIVIZE Train your employees to set service appointments first every time they sell a car.

Measure their upsell process.

What are you doing to excite and incentivize your employees?

Incentives don’t always have to be monetary. Try offering an Employee of the Month parking spot and a plaque for top performers.

5. KEEP YOUR MIND ONLINE Your online reputation is vital.

Potential customers are most likely to read what people are

saying about your dealership online. To avoid bad reviews make it easy for your customers to post reviews right after the sale by providing links to leading review sites – You will have the opportunity to catch bad reviews at an early stage and be able to avoid them or make it right.

6. THE TAKEAWAY Relying on vehicle sales as the origin of your dealership’s wealth is unreliable. Sales are affected by many functions outside your control, including Internet, interest rates, gas prices, and factory incentives.

Recession-proof your business with a continuous stream of income from your fix-up business: UNFIX IT.

F&I SCHOOL GEARED FOR INDEPENDENT DEALERS

BY KAREN CULPEPPER ADS Management Group Many independent dealers want to be compliant & sell more back end products but really haven’t stepped into that ring yet. Recently, Bobby Archambault identified a need for independent dealers to have an F&I school that addresses the unique needs of their F&I managers & came up with a version of his school that teaches compliance & menu selling all geared for the independent dealer.

Dealer Advantage University is a 3.5 day school where he teaches the basics of contract compliance, safeguards rule, red flag rules, risk based pricing, product presentation & product closes. The final exam is a videotaped presentation using the skills he covered in class.

With over 30 years of automotive experience, Bobby Archambault can teach your F&I managers the right way to present & close a deal.

Our agency has sent hundreds of students both from independent as well as franchise dealers to his

Dealer Advantage University is a 3.5 day school where you will learn: u the basics of u u u u u

contract compliance safeguards rule red flag rules risk based pricing product presentation product closes

school over the last 10 years. They always return to the dealership with a better understanding of protecting their dealer as well as improving their profits in F&I. Bobby has agreed to donate $50 to the VIADA for every student whose dealer is a VIADA member as well as offer a discounted registration fee of $1195 (Normally $1695). Similar schools can cost over $2500.

Classes are forming for January 1316, 2015 so be sure to contact Bobby at ba53tx@yahoo.com or (512)6267694.

Karen Culpepper VIADA Treasurer District 1 ADS Management Group Director of Sales & Business Development fnibunny@aol.com

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Upcoming VIADA Events JANUARY 2015 12 MVDB Meeting 13-14 D/O Course @ Germanna C/C

Fredericksburg, VA 14 District 4 Meeting 15 Legislative Day at the General

Assembly 16 VIADA Board Meeting-Richmond

Marriott 27 District 2 Meeting 27-28 D/O Course @ Patrick Henry C/C

Martinsville FEBRUARY 2015 3 District 6 Meeting 10 District 3 Meeting 10-11 D/O Course @ Paul D. Camp C/C

Franklin, VA 17 District 5 Meeting 19 District 7 Meeting 24 District 1 Meeting 24-25 D/O Course @ Virginia Western C/C

Daleville, VA

MARCH 2015 9 District 8 Meeting 9 MVDB Meeting 10-11 D/O Course @ Northern VA C/C

Manassas, VA 24-25 D/O Course @ New River C/C

Dublin, VA APRIL 2015 3 Good Friday – State Office Closed 7-8 D/O Course @ Lord Fairfax C/C

Middletown, VA 8 District 4 Meeting 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

VIADA HONORS OUR SELECT PARTNERS

Symbol of Quality

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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

Weters 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 Virginia Beach NOVEMBER 2015 3-4 D/O Course @ Blue Ridge C/C

Weters 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.

PLATINUM DealerTrack Manheim Auto Auctions of Virginia SILVER ComSoft DealerRE NextGear STARS GPS Tidewater Auto Auction BRONZE ESG Insurance & Financial Services JTZ Enterprise Lynn Hooper, CMD

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VIADA wishes to thank these companies for their continuing support of VIADA and our members!

For more information call: (800) 394-1960 e-mail: info@viada.org

VIADA AT THE AUCTIONS

IN MEMORIAM •

Evan O’Brien of County Auto Brokers in Yorktown

•

Larry May of May Motors in Elkton

THINKING OF YOU

(Left to Right) Cliff Bickord, Spartan Financial Partners, Tina Allman, VIADA Auction Representative, and Don Boucher, VIADA State President at Manheim Fredericksburg Auto Auction.

•

Andy Gurowitz of Fairfax Motors

•

Bill Hite of Plaza Auto Sales in Roanoke

•

Edye Johnson of Earl’s Credit Auto Sales in Portsmouth

•

Karl Kiracofe of Manheim Harrisonburg

•

Ronnie Buchanan of Bryan Buchanan Auto Auction in Montvale

•

Sandra Moss of Moss Motor Company in Dillwyn

•

Mike Anderson of Abingdon Auto Auction

OOPS! Steve Farmer Auto Sales was not recognized in the Honor Roll of Sponsors for VIADA’s Annual Convention & Expo in July 2014.

They have traditionally sponsored the Hole In One for the annual Golf Tournament. We wish to thank them for not only their continued sponsorship, but for their faithful service to VIADA. Steve Farmer is a past president of District 6, past president of VIADA and state Quality Dealer. Sandra is past president and Quality Lady of the VIADA Ladies Auxiliary. Both continue to be active in these organizations.

Additionally Steve Farmer Auto Sales is a faithful contributor to the Virginia Independent Automobile Dealer PAC. That listing has also been omitted in past issues of the Virginia Independent News magazine.

Steve and Sandra, Please accept our most sincere apology and know we appreciate you for all you have done and continue to do to enhance the success of VIADA.

Symbol of Quality

WINTER 2015 | THE VIRGINIA INDEPENDENT NEWS |

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CARLAWYER©

BY THOMAS B. HUDSON & NICOLE FRUSH MUNRO Hudson Cook, LLP COMPLIANCE TIPS If your ads (including your website) contain offers in big type and have asterisks and small type that limit or condition the offers, you should drop what you are doing and call your compliance lawyer. The Federal Trade Commission has recently warned merchants about their advertising practices, and you need to be sure that what you are doing in your ads will pass muster.

Do you sell so-called “ancillary products” such as GAP, service contracts, and “etch”? If you do sell ancillary products, do you charge all buyers the same price for them, or do some buyers pay more than others? If your prices vary, are you running the risk that such variation might be alleged to be discriminatory? Think about having a discussion on the topic with your lawyer.

FEDERAL DEVELOPMENTS Upping the Ante. On September 9, the Consumer Financial Protection Bureau and the Federal Reserve Board announced that they are increasing the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) for exempt consumer credit and lease transactions. The Dodd-Frank Act provides that these thresholds must be adjusted annually by the increase in the consumer price index. As adjusted, TILA and CLA protections generally will apply to consumer credit transactions and consumer leases of $54,600 or less in 2015 - an increase of $1,100 from 2014.

Care to Watch a Re-run? The CFPB held a field hearing on auto finance on September 18 in Indianapolis. The hearing featured remarks from Director Cordray and testimony from consumer groups, industry representatives, and the public. A recording of the event is available on the CFPB’s website.

STATE ENFORCEMENT ACTIONS The New Jersey Department of Law and Public Safety, Division of Consumer Affairs, recently reached a settlement with a used car dealership that allegedly violated the Consumer Fraud Act and regulations concerning

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vehicle advertising practices, sales, and the used car lemon law by failing to disclose the prior use of vehicles as rental vehicles, failing to disclose past damage of vehicles, continuing to advertise vehicles after they had been sold, failing to honor advertised and negotiated prices of used vehicles, and delaying the return of traded-in vehicles and/or deposits after the consumer cancelled the sales contract. Under the settlement, the dealership will pay $100,513 in civil penalties and will reimburse the state $29,487 for its attorneys’ fees and investigative costs. The dealership will also hire a compliance monitor to ensure that its practices comply with state consumer protection laws and regulations.

LITIGATION Consumer States FCRA Claim for Reporting Adverse but not Positive Credit History: A couple obtained a bank loan secured by their home and a vacation property.

They fell behind on the note, and the bank refinanced it. When they fell behind on the second note, the bank refinanced it again. The couple made payments on the third note on time. The bank furnished the adverse credit history on the first and second notes, but it did not furnish the positive credit history on the third note. The couple disputed the missing credit history with the consumer reporting agencies and the bank. When the bank refused to furnish the credit history on the third note, the couple sued the bank for violating the Fair Credit Reporting Act. The bank moved to dismiss. The federal trial court denied the motion. The court held that the bank’s failure to furnish the credit history on the third note could plausibly constitute a material misrepresentation that damaged the couple. Alley v. The Farmers Bank, 2014 U.S. Dist. LEXIS 120675 (M.D. Ga. August 29, 2014).

Dealership’s Practice of Backdating Renegotiated Credit Agreements May Violate California’s Automobile Sales Finance Act: A dealership sold the credit sale agreements it originated in connection with vehicle sales to commercial creditors.

Occasionally, the dealer was unable to sell an agreement and renegotiated the transaction with the consumer in order to create a salable agreement. The dealership

| THE VIRGINIA INDEPENDENT NEWS | WINTER 2015

dated the renegotiated agreements with the same date as the original contract. Consumers who agreed to enter into renegotiated agreements signed not only a new agreement but also an “Acknowledgement of Rescinded Contract,” which also was backdated to the date of the original contract. Each acknowledgement stated that the original contract had been canceled and neither party owed any obligations under it. Several consumers filed a class action against the dealership alleging, among other things, that its backdating practice violated California’s Automobile Sales Finance Act. Specifically, the consumers claimed that the dealership provided inaccurate disclosures under the Act, and, therefore, the renegotiated agreements were unenforceable. The trial court found for the dealership, but the Court of Appeal of California reversed the trial court’s decision in part. The appellate court explained that the Act required the dealership to make specific disclosures regarding the credit sale, including all disclosures required under the Truth in Lending Act’s Regulation Z. The appellate court further explained that Regulation Z requires the disclosure of the annual percentage rate, which must be calculated using the consummation date as the beginning of the transaction term. Regulation Z provides that a transaction is consummated when the consumer becomes contractually obligated on the transaction under state law. The appellate court observed that the APR would be different if the dealership used the original contract date rather than the later renegotiated agreement date to calculate it. The trial court determined that a vehicle sale under California’s Vehicle Code is deemed completed and consummated when the buyer of the vehicle has paid the purchase price or has signed a purchase contract or security agreement and has taken physical possession or delivery of the vehicle. The appellate court found that the trial court erred by using the vehicle sale date as the Regulation Z consummation date rather than the date the consumer becomes contractually obligated on the credit transaction. The appellate court noted that other courts have found that, where a consumer enters into a second credit contract

with a dealer relating to a vehicle sale, the consummation date of the credit transaction associated with the second contract is generally the date of the second contract.

Notwithstanding the trial court’s error, the appellate court found that the plaintiffs were not necessarily entitled to judgment because the annual percentage rate may not need to be redisclosed in certain refinancings and for certain renegotiated agreements. The disclosed rate may fall within Regulation Z’s tolerances and would be deemed accurate. The appellate court concluded that the only potential violation under the Act was an inaccurately disclosed APR. But the appellate court rejected the plaintiffs’ claim that an inaccurately

calculated APR would render the agreements unenforceable. The appellate court stated that it is not apparent that the Act provides any remedy for an inaccurately disclosed APR because the Act does not provide for statutory damages and provides for recovery of actual damages only for specific violations not relevant. ** Note that this column does not offer legal advice. Always check with your own lawyer to learn how this report might apply to you, or if you have any questions. ** ___ 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

NOTES FROM OUR FIELD DIRECTOR Alvin Melendez

VIADA Field Director Melendez Motors, Fredericksburg, VA When I arrive at a dealership, I like to try and help the dealer brainstorm ways to make his business better. Some of their frequently asked questions include… How can I sell more cars? How can I get more banks? Where can I buy a particular type of inventory – like trucks?

First, to sell more cars you need to have a vision, structure and guidelines = A PLAN. Vision meaning what are your goals, do you want to sell 20, 30, or 40 cars? Do you want to grow and become a franchise dealer? Is this a hobby or a career?

How is your business structured?

Will you be doing the buying? Or the selling? Who is watching over the paperwork to make sure you are compliant. And lastly, the Guidelines.

How are leads tracked? What stips do you require for BHPH? Do you have an Employee Handbook that explains your policies and procedures?

For example, a lot with 25 vehicles in inventory, how many are cars?

Trucks? SUVs? It depends on your clientele and area of Virginia. Once you have the proper inventory, you need a solid F&I Manager; someone who has good, trusted relationships with several banks. You need a variety of prime and subprime banks in order to be able to meet the needs of your customers and grow your company.

Inventory Management and Acquisition has come a long way.

Auctions have developed tools to notify you when a particular vehicle comes into their site. Let them help you work smarter, not harder. You can find vehicles from your home or office – 24/7.

Do not overlook the value of a Business Plan.

Do daily and monthly assessments. How much operating cash do you have? Know the ACV of your inventory. What are

your fixed expenses – Rent, Utilities, and Advertising, etc. What is your Cost of Sale – how much are you spending to get a car ready for sale – money you can’t floor, but cash that is out there until it is sold? “Keep your project cars to a minimum.” When possible, buy them ready to sell, so all money is floored. Your goal should be to have vehicles ready to sell in three days or less. And lastly, what is your average profit per car? When you know the answers to these questions, you can make adjustments to help you grow a successful, profitable company.

WINTER 2015 | THE VIRGINIA INDEPENDENT NEWS |

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VIADA RENEWALS - SEPTEMBER 1ST - NOVEMBER 30TH, 2014 THANK YOU FOR 54 YEARS OF CONTINUED SUPPORT, THOMAS LAWRENCE OF LAWRENCE MOTORS, INC. IN PORTSMOUTH! -&THANK YOU FOR 52 YEARS OF CONTINUED SUPPORT, STUART PECK OF AUTOMOBILE EXCHANGE IN ROANOKE! 30-49 YEARS

Bob Whitaker Motors • Bobby Whitaker • Glen Allen • 42 T K Hughes Auto Sales Inc • T K Hughes • Richmond • 39 Little Joe's Autos Isuzu Mitsubishi Suzuki • Joseph Falk • Chesapeake • 39 Davis Auto Center Inc • Carter Davis • New Church • 36 Atlantic Auto & Truck Sales • William Summs Sr • Norfolk • 32 Duval Auto Parts Inc • Kenneth Abbott • Forest • 32 Whitesell Service Inc • Gary Whitesell • Waynesboro • 32 Manheim North Carolina • Ellie Johnson • Kenly • 30

20-29 YEARS

Bird's Auto Sales • Darrell Bird • Dublin • 28 S & S Sales • Gordon Shelton • Hartwood • 27 Auto World of Chester • Lyndon Harrison • Chester • 27 Cline Auto Discount • Donnie Orebaugh • Dayton • 27 Alars Inc • Alvin Woods • Vinton • 26 Wagner's Used Cars • David Wagner • Palmyra • 25 A & E Automotive Inc • David Emswiler • Harrisonburg • 25 National Auto Sales, Inc • Edward Bowden Jr • Richmond • 24 Auto City • Lewis Lester • Portsmouth • 23 Auto Link Inc • Joel Lyles • Hamilton • 23 Don's Auto Exchange Inc • Donald Keene • Cedar Bluff • 22 Spencer Motor Sales Inc • Rex Spencer • Vansant • 22 E & M Auto Paint & Supply • Terry Whitmore • Harrisonburg • 21 Bill's Auto Sales • Tim McGuire • Roanoke • 21 East Coast Auto Source Inc • George Aznavorian • Moneta • 20 Carmax Superstore • Caitlin Anderson • Richmond • 20

13-19 YEARS

Action Auto Parts • Tracy Lewis • Hopewell • 19 The Car Ministry • Roger Penn • Falls Church • 19 Snyder's Auto Sales Inc • David Snyder • Harrisonburg • 19 Kiser Auto Sales Inc • Orvin Kiser Jr • Stuarts Draft • 18 Rod Shop Inc • Erin Clinevell • Salem • 18 C L Hyman Auto Wholesale • Christian Hyman • Ashland • 18 Enterprise Car Sales • Glen Pozin • Williamsburg • 18 Auto Credit Line Inc • Karen Simpson • Richmond • 17 Watson Auto Inc • Randy Watson • Galax • 17 Car Credit Nation • Chris Maher • Winchester • 17 Auto Villa • Audrey Moss • Danville • 16 Vans of Great Bridge • Todd Carey • Chesapeake • 16 Handpicked Western Trucks LLC • Mark Grehlinger • Leon • 16 Henrys Auto Sales • Larry Welch • Roanoke • 15 The Salvation Army • Jocelyn Owens • Virginia Beach • 15 Hayes Auto Sales • Keith Rodgers • Hayes • 15 Union First Market Bank Dealer Division • Charles Muncy • Henrico • 15 Kenco • Kenny Reynolds • Harrisonburg • 14 Airline Auto Sales Inc T/A All-in-One Auto • Larry Bailey • Portsmouth • 14 Spencer's Special Interest Cars • Douglas Spencer • Rocky Mount • 14 Pay Here Used Cars • Mona Bowen • Hampton • 14 Heritage Motor Co Inc • Stelios Karayiannis • Virginia Beach • 13 Car Shop Inc • Parker Tingler • Covington • 13 Virginia Auto Inc • Gary Daniel • Roanoke • 13

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| THE VIRGINIA INDEPENDENT NEWS | WINTER 2015

4-12 YEARS

Burtons Automotive Service Inc • Robert Burton • Hartwood • 12 Larry's Import Center Inc • Larry Woodhouse • Virginia Beach • 12 County Auto Brokers Inc • Devan Hartsock • Yorktown • 12 Auto Center Inc • Mark Smoot • Front Royal • 12 Basic Auto Sales • Kory Hummer • Ashland • 12 ASC Warranty • Brad Hasselwander • Mountain Home • 12 HRFT Finance • J Tom Mathews • Portsmouth • 12 Ike's Auto Sales • Jeffrey Ballard • Pulaski • 12 Auto Land Auto Sales Inc • Hamid Abdolahzadeh • Virginia Beach • 11 The Auto Connection • Michael Sifen • Norfolk • 11 Diamond Motorcars • Bob Kope • Virginia Beach • 11 Ben Edwards Auto • Ben Edwards • Waynesboro • 11 Classic Insurance Services • Jim Creasy • Glen Allen • 10 Cardinal Auto Sales LLC • James Blackburn • Chester • 10 Cars 'R' Us LLC • Cleatis Mullins • Pound • 9 Pittman Auto Group LLC • Jerry McCorkle • Luray • 9 Hampton Insurance Agency LLC • Charles Ellis • Hampton • 8 Keith's Auto Sales West • Samuel Lambert • Harrisonburg • 8 Burton Creek Garage Inc • William Rowse • Lynchburg • 8 Diamond Warranty Corporation • Samuel McArthur • Pittston • 7 MITS of Virginia • Richard Baldwin • Waynesboro • 7 AmCar Rental LLC • Bonnie Limbrick • Madison Heights • 7 Tim Byrd & Associates Inc, Dealer RE • Tim Byrd • Gloucester • 7 Hi-End Auto LLC • Robert Hubbard • Appomattox • 6 Noland Company Drilling Equipment • Virgil Bruinekool • Roanoke • 6 Cherrydale Motors • Wade Aylor • Arlington • 6 Quality Auto Sales • Joe Lane • Cedar Bluff • 5 Hillside Motors Inc • Mark McKim • Culpeper • 5 Cosmo's Autos • Jennifer Cook • Bristol • 5 Stamper Auto Sales • John Stamper • Lebanon • 5 Brian Jones Motorsports Inc • Brian Jones • Danville • 5 Gravely Auto Sales & Recycling Inc • Donald Gravely • Axton • 4 Southside Harley Davidson • Mary Hughes • Virginia Beach • 4 Elite Auto Wholesale • Roberto Barahona • Midlothian • 4 Atlantic Financial Services • Burnie Staples • Chesapeake • 4 Plaza Motors of VA LLC • Gregory Adkins • Richmond • 4 Autos Direct Inc • Sarah Brown • Fredericksburg • 4 Liberty Auto Inc • Michael Bailey • Roanoke • 4 Best Price Auto Sales Inc • Daniel Poston • Virginia Beach • 4 Steele's Auto Sales • Bobby Steele • Lynchburg • 4 Smithfield Family Automotive • Tommy Lightfoot • Smithfield • 4 Bluegrass Auto Sales • Brad White • Vinton • 4 Greenville Auto Auction Inc • Billy Willis • Greenville • 4 ADESA Knoxville • Greg Koepfer • Lenoir City • 4

VIADA RENEWALS - SEPTEMBER 1ST - NOVEMBER 30TH, 2014 2-3 YEARS

1 YEAR

BNH Auto • Mac McManus • Ashland • 3 Henry Williams Automotive Inc • Rick Williams • Roanoke • 3 C & P Auto Sales Inc • Steve Konwerski • Richmond • 3 Eagle Motor Company • John Jones • Roanoke • 3 Car America • Varaporn Martin • Richmond • 3 City To City Auto Sales • Omar White • Richmond • 3 Larry's Car Land Inc • Lawrence Green • Blackstone • 3 Premium Auto Brokers • Khalil Benhiba • Virginia Beach • 3 Mobility Supercenter • Lee Crenshaw • Norfolk • 3 Expo Auto Brokers LLC • Michael Martin • Bowie • 3 MarkOne Financial • Tommie Gunville • Jacksonville • 3 Surfside Auto Co • David Glaus • Norfolk • 3 H & H Auto Sales • William Hicks • Galax • 3 J. D. Byrider of Richmond • Craig Baker • Richmond • 3 Holiday Signs • Mark Hackley • Waynesboro • 2 Bob's Car Corner • Jeff Akerson • Roanoke • 2 Star Auto Sales • Ziad Aboulhosn • Richmond • 2 VA Interstate Auto Brokers Ltd • Gerald Williams • Roanoke • 2 Hilliard Automotive • Omar Aboulhosn • Richmond • 2 Mechanicsville Auto Sales LLC • Michael Carter • Mechanicsville • 2 One Stop Automotive • Bryan Thornhill • Roanoke • 2 Roving Auto Inc • Howard Tabor • Virginia Beach • 2 Harrison Auto Sales • Boni Harrison • Fredericksburg • 2 Tinker Mountain Motors Inc • David Carroll • Roanoke • 2 Gilmore Auto Repair & Sales • Lacey Gilmore • Portsmouth • 2 Rosser Motorsports LLC • Lee Harlow • Waynesboro • 2 Express Motors • Joe Habr • Virginia Beach • 2 Central Virginia Auto Auction • Lorraine Albrecht • Charlottesville • 2 ABC Lancaster Auto Auction • Greg Gehman • E Petersburg • 2 East Gate Motors • Bob Lang • Waynesboro • 2

Waynes Auto Sales • M Wayne Lester • Cedar Bluff • 1 Dave's Auto LLC • David Furlong • Farmville • 1 Rosson & Troilo • Tony Troilo • Brandy Station • 1 Towne Auto Brokers Inc • Amine Bensellam • Virginia Beach • 1 First Choice Automotive • Russell Millner • Forest • 1 West End Auto Sales • David Ashworth • Richmond • 1 A & F Auto Sales • Abraham Maram • Manassas • 1 Lighthouse Truck and Auto LLC • Robert Hart • Dillwyn • 1 Car Star • Rashid Afshari • Stafford • 1 Blankenship Auto • Robert Blankenship • Accomack • 1 Park Drive Motors Inc • David Johnson • Fredericksburg • 1 Import Cycle Center • Jacob Kahle • Norfolk • 1 Five Star Motorcars • George Williams • Roanoke • 1 Nation Auto of Stafford • Ali Esmatullah • Stafford • 1 Shore Motors • Clarence Joyner • Melfa • 1 Wayne Talley Auto Sales • Wayne Talley • Lancaster • 1 Faram Auto Sales, Inc • Jamal Ramanou • Richmond • 1 Tebo Financial Services, Inc • Rob James • Canton • 1 DC Motorsports Inc • Andrew Verdon • Manassas • 1 Infinity Auto Sales • Karen Devegnee • Mechanicsville • 1 Clem's RV & Trailer Sales • Steve Deffenbaugh • Fredericksburg • 1 Derrow Auto Sales Inc • Larry Derrow • Locust Grove • 1 Ron's Auto Sales LLC • Ron Marshburn • Providence Forge • 1 Meek Motors LLC • Davin Meek • N Chesterfield • 1

VIADA NEW MEMBERS - SEPTEMBER 1ST - NOVEMBER 30TH, 2014 Advantage Motors Inc ▪ Hassan F Elsayyad ▪ Newport News ▪ D. Boucher Approved Auto LLC ▪ Adam Tanoukhi ▪ Moseley ▪ P. Iaricci / D. Gripshover Auto By Design LLC ▪ Sean Bassam ▪ Chantilly ▪ D. Sullivan Auto-Land Inc ▪ Shamin A Hashmi ▪ Fredericksburg ▪ T. Allman / D. Sullivan Best Auto Sales ▪ Victor Cea ▪ Richmond ▪ A. Melendez / D. Gripshover Best Deal Auto Outlet LLC ▪ Jorair Jami ▪ Fredericksburg ▪ P. Iaricci / D. Sullivan Capital Auto Inc ▪ Hamed Tavassoli ▪ McLean ▪ P. Iaricci / D. Sullivan Car Outlet ▪ Edward Habavets ▪ Mt Crawford ▪ A. Melendez / E. Haley Carex Inc ▪ Zeke Pryor ▪ Fredericksburg ▪ A. Melendez / D. Sullivan Cars 4 Best ▪ Baber Chaudhry ▪ Stafford ▪ T. Allman / D. Sullivan Champion Equipment Co Inc ▪ Rafael Valladares ▪ Richmond ▪ A. Melendez / D. Gripshover Churchland Auto & Truck LLC ▪ Bill Hinton ▪ Portsmouth ▪ V. London / J. Davis Dash Motors, Inc. ▪ Tom K Dashtaray ▪ Manassas ▪ V. London / D. Sullivan Dave Liston's Auto Outlet LLC ▪ David J Liston ▪ Norfolk ▪ V. London / J. Davis E Smart Auto Group Inc ▪ Oi Seon Kim ▪ Spotsylvania ▪ T. Allman / L. Hooper Escro Motors II, LLC ▪ Jose Moises Trigueros ▪ Richmond ▪ A. Melendez / D. Gripshover Euro Cars LLC ▪ Adnan Abdalsalam ▪ Harrisonburg ▪ V. London / E. Haley Five Star Car and Truck LLC ▪ Howard Dobbins ▪ Richmond ▪ Dawnielle Hresan Fix It Rick's Auto Repair and Sales ▪ Ricky W Burford Sr ▪ Lynchburg ▪ P. Iaricci / M. Stevens FNI Inc ▪ David Bafumo ▪ Cary ▪ J. Davis / A. Melendez Fredericksburg Truck & 4x4 Inc ▪ David Redmond ▪ Fredericksburg ▪ A. Melendez / D. Sullivan GN Auto LLC ▪ Gaby Touma ▪ Chantilly ▪ A. Melendez / D. Sullivan Highlands Motor Co ▪ Gary Beverly ▪ Abingdon ▪ A. Melendez / L. Church Import Autowerks Inc. ▪ Jonathan Mack ▪ Portsmouth ▪ A. Dazzo / J. Davis JBBM Auto Sales LLC ▪ Luis Miguel Munayco ▪ Fredericksburg ▪ A. Melendez / T. Allman / D. Sullivan JW Motors ▪ Johnny Arnez ▪ Manassas ▪ A. Melendez / D. Sullivan

K & B Auto Sales Inc ▪ William D Alexander ▪ Lebanon ▪ V. London / L. Church L & S Auto Brokers Inc ▪ Luis Santos ▪ Fredericksburg ▪ A. Melendez / D. Sullivan Lance Adams Auto Sales LLC ▪ Lance Adams ▪ Mechanicsville ▪ T. Allman / D. Gripshover Lyman Automotive ▪ James Lyman ▪ Midlothian ▪ V. London / D. Gripshover Ma's Lockshop ▪ Manuel Natal ▪ Portsmouth ▪ R. Johnson Metro Sales Corporation ▪ William M Shepherd Jr ▪ Fredericksburg ▪ V. London / D. Sullivan Mid-Atlantic Auto Sales Inc ▪ Stephen Belford ▪ Richmond ▪ M. Ellis / D. Gripshover Mohler Auto Sales ▪ Nicholas JF Mohler ▪ Fredericksburg ▪ A. Melendez / D. Sullivan MTK Auto ▪ Michael Wiggins Jr ▪ Richmond ▪ P. Iaricci / D. Gripshover Ocean Air Auto Sales LLC ▪ Stacey Lynn Bair ▪ Virginia Beach ▪ A. Dazzo / J. Davis Plainview Management Corp ▪ Frank Cheng ▪ Strasburg ▪ P. Iaricci / E. Haley Prime Motors LLC ▪ Shahid Farooq ▪ Arlington ▪ A. Dazzo / D. Sullivan Rohrer Bus Sales ▪ Felicia H Woodruff ▪ Henrico ▪ P. Iaricci / D. Gripshover Select Cars of Thornburg ▪ Wilmer Nunez ▪ Fredericksburg ▪ V. London / D. Sullivan Southern Copier ▪ Beverly Mauck ▪ Mechanicsville ▪ A. Melendez / D. Gripshover Stafford Autos Inc ▪ Mohammod Seddiq ▪ Stafford ▪ T. Allman / D. Sullivan Steven C Chiccehitto ▪ Steven C Chiccehitto ▪ Warrenton ▪ V. London / D. Sullivan The Car Man Company ▪ Victor J Moes ▪ Henrico ▪ A. Melendez / D. Gripshover Timberlake Auto Emporium ▪ Dwayne Hicks Sr. ▪ Lynchburg ▪ V. London / M. Stevens Top Auto Sales ▪ Brenda Tharp ▪ Petersburg ▪ A. Dazzo / D. Gripshover Tri-Cities Auto Auction ▪ Allen Ramsey ▪ Piney Flats ▪ T. Bowman Under The Sun LLC dba LKG Autos ▪ Nicholas Dimarino ▪ Bracey ▪ P. Iaricci / B. Toone Undisputed Auto Sales & Repair Inc ▪ Harnee Gladimir Villalobos ▪ Chantilly ▪ A. Melendez / D. Sullivan United Auto Credit Corp ▪ Frank Marraccino ▪ Newport Beach ▪ A. Melendez / J. Davis Victory Lane Auto Sales & Accessories ▪ Shawn Mongeur ▪ Colonial Heights ▪ T. Allman / D. Gripshover Virginia Dealer Magazine ▪ Joe Beasley ▪ Powhatan ▪ A. Melendez / D. Gripshover

WINTER 2015 | THE VIRGINIA INDEPENDENT NEWS |

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PRESS RELEASE: AMERICAN INCOME LIFE INSURANCE COMPANY (AIL) American Income Life Insurance Company (AIL) and the Virginia Independent Automobile Dealers Association are proud to announce a marketing partnership to bring better supplemental benefits to all members of the Virginia Independent Automobile Dealers Association.

This is a first of its kind collaboration between VIADA and AIL, a company known for its relationships with associations, credit unions and labor organizations. American Income is licensed in 49 states, the District of Columbia, Canada and is registered to carry on business in New Zealand.

AIL also has two wholly-owned subsidiaries: National Income Life Insurance Company, licensed in the state of New York and Union Heritage Life Assurance Company Limited, licensed in the Republic of Ireland. AIL has earned an A+ (Superior) Financial Strength Rating from A.M. Best Company. (rating as of 6/14) AIL and NILICO boast combined assets of more than $2.6 billion with more than $41.3 billion of life insurance in force for working families.

EACH MEMBER IN GOOD STANDING WILL BE PROVIDED

THE FOLLOWING NO COST BENEFITS: The Accidental Death and Dismemberment Benefit is provided at no cost to members. All members will be provided a group AD&D benefit. Individual certificates of coverage will be issued to members.

Health Services Discount Plan.

Provides members and their families with discounts at point of service on vision, hearing, prescription drugs and chiropractic care. On average, members receive discounts up to 60% on vision care, chiropractic care, hearing care and prescriptions.

This program is not insurance, so members are not required to fill out forms. All they need to do is show a discount card when they visit a participating pharmacist or health care provider.

Child Safe Kit©. Endorsed by the International Union of Police Associations the American Federation of School Administrators and the American Federation of Teachers, this kit provides parents with the tools they need to gather vital information for use by authorities, if needed, to search for a missing child.

DON’T FORGET! Don’t forget to locate your new VIADA decal in your 2015 Membership & Service Directory.

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| THE VIRGINIA INDEPENDENT NEWS | WINTER 2015

Family Information Guide. When emergencies occur, families can minimize stress and confusion by having their critical information organized in one place. The Family Information Guide will help members catalog information such as beneficiaries, estate data, professional contacts and health records.

Members will be receiving a letter in the mail within the next few weeks.

We ask that each member take the time to review the letter and send back the yellow reply card included in the envelope. Once the reply card is returned, an AIL representative will contact members to arrange a convenient time to deliver the certificate of coverage and no cost benefits and also explain additional insurance coverage available on a voluntary basis. You will have a unique opportunity to extend similar benefits to all of your employees.

The letter and reply card will explain how to accomplish this.

FOR MORE INFORMATION CONTACT: TRAVIS DANIELS (757) 403-9500 TGDANIELS@AILIFE.COM

RETAKING A SPOTTED VEHICLE

BY CHARAPP & WEISS, LLP You spot delivered a vehicle expecting to assign the contract to a finance source. Unfortunately, the finance source declined the assignment because the customer misstated monthly income, you could not verify information provided, or any of several reasons beyond your control.

You have carefully reviewed the deal paperwork to determine whether you can rescind the transaction. You must have an agreement executed by the customer allowing rescission. When you sell a vehicle on a retail installment sale contract, you are the creditor.

If another financial institution refuses to accept assignment of the RISC, there is finance approval – your approval, and you will wind up holding and servicing the RISC unless you can rescind. You will only have authority to rescind the transaction and ask for return of the vehicle if contractual language allows that.

Any time you find yourself in the position of considering rescission, go through a spot delivery rescission checklist: • There is a contract or a contract provision allowing you to rescind for failure to obtain finance approval.

• The agreement, or the agreement in which the provision is contained, is signed by the customer.

• The dealership can document that it tried to assign the RISC and could not do so.

• The dealership otherwise complied with the terms of the contractual provision allowing rescission.

• The dealer is prepared to return to the status quo ante by returning

any trade and the downpayment once the rescission takes place and the vehicle is returned.

Having decided that you can rescind, you contacted the customer requesting that the vehicle be returned. The customer has not done so. You hired a recovery service. The recovery service could not locate the vehicle. Now what do you do?

Often, the decision of what to do is made out of frustration. The customer was not candid when he bought the car, he has not been cooperative in working with the dealership, and he appears to be hiding the vehicle. The first reaction is likely to be “Let’s show him! Let’s report the car as stolen.”

That is the wrong reaction.

The car was not stolen. You gave the customer possession of the vehicle under the transaction documents. The amateur lawyers on your staff may contend that if they cannot go to the police to charge the customer with theft, then the dealership should try to have him charged with the lower level misdemeanor of wrongful use. Once again, however, the customer was given possession of the vehicle and is holding possession of the vehicle under whatever temporary registration was permitted.

A prosecutor is unlikely to prosecute the case based upon some contractual right you have to rescind the deal and retake possession of the vehicle.

If the prosecutor will not charge the customer, the

DEALER DAY! April 28, 2015 Charlottesville, VA

customer will go free. The customer will still have the vehicle. And now the dealership faces a potential lawsuit for malicious prosecution which can lead to large awards for compensatory damages and even punitive damages.

Often the only safe remedy when a customer will not return a vehicle in a rescinded transaction is a lawsuit.

A customer not cooperating with the dealership and hiding the vehicle will probably go into default. The dealership then can quickly obtain a judgment it can use as the basis for discovery from the customer to find out where the car is located and to potentially recover damages if the car can never be found or to recover the dealership’s losses for the period the vehicle was withheld. If the customer does not cooperate with the court’s demands that he appear to answer questions about where the vehicle is, then the court has the authority to detain him until he answers the questions.

TOPICS

• Dealership Accounting • Speed Dating With Lenders • Vehicle Recovery/ Collections/Panel • Professional Selling • Advertising • BHPH Funding Options/Panel WINTER 2015 | THE VIRGINIA INDEPENDENT NEWS |

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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 NOVEMBER 30, 2014.

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

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

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

CAR CREDIT NATION 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 BILL’S AUTO SALES

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CHERRYDALE MOTORS

| THE VIRGINIA INDEPENDENT NEWS | WINTER 2015

ROSSER MOTORSPORTS LLC TRI-CITIES AUTO AUCTION

REGULATORY ISSUES REMAIN IN THE SPOTLIGHT

BY NEXTGEAR CAPITAL The Consumer Financial Protection Bureau’s (CFPB) increased regulation of auto dealers and lenders has been one of the major storylines this year.

Recently, the CFPB held a field hearing in Indianapolis to discuss the state of the auto financing industry. Held on the campus of Indiana University Purdue University Indianapolis, this hearing consisted of remarks from CFPB Director Richard Cordray, a panel discussion from various experts in the world of finance and testimony from consumer and civil rights groups.

Here are three key takeaways from the event: 1. EXTENSION OF OVERSIGHT TO CAPTIVE LENDERS In his opening remarks, Cordray announced a proposal for CFPB’s reach to extend to larger nonbank auto lenders, which includes captive lenders. According to Cordray, nonbank auto finance companies have never been subject to any supervision at the federal level, despite lending hundreds of billions in credit to consumers.

“It should not matter whether you get a loan or lease from a company that has a banking charter versus one that does not – every auto lender should be following the law and be subject to the same level of oversight,” said Cordray. “This expansion of coverage is important to protect consumers, but it also

will remove a distortion in the marketplace and is a matter of simple fairness to competitors who should play by the same rules in the same way.”

2. QUESTIONS RAISED OVER CFPB’S RECOMMENDATIONS Prior to the hearing, the CFPB released a new Supervisory Highlight report, in which the agency describes its fair lending supervisory activity in the indirect automobile lending market. Within this report, the CFPB proposes several methods which dealers and lenders can undertake to help them remain compliant and avoid discrimination. These methods include: • Increase internal monitoring • Eliminate dealer discretion to markup interest rates by switching to a flat fee model • Develop and implement more intensive compliance management systems During the panel discussion, concern was voiced over the CFPB’s recommendation to switch to a flat fee model to mitigate the risk of discrimination due to marked up buy rates. The panel raised the issue that this one model does not consider the economic impact of altering the auto finance market, as switching to flat fees would increase the cost of credit for consumers and

doesn’t solve the discrimination problem.

3. TRANSPARENCY AND EDUCATION VITAL FOR CONSUMERS Educating consumers and being more transparent was another hot topic during the panel discussion. Because the car buying experience can be a lengthy and taxing process, with long and complicated disclosures, many consumers don’t know what they’re getting into when they purchase a car. While organizations such as the NADA have created publications for consumers promoting financial literacy, the CFPB would like to see dealers and lenders do a better job themselves of simplifying the process for the consumer.

The event was met with positive feedback from those in attendance and it’s apparent that many organizations within and outside the auto industry are supportive of the CFPB’s efforts to curb discrimination and bad lending practices. While it remains to be seen what the end result will be from this proposed extension to regulate nonbank auto lenders, it is clear that dealers and lenders need to have their ducks in a row to ensure that all consumers are being treated equally and fairly.

ANNOUNCING NEW PRE-OWNED VEHICLE DISCLOSURE! Customer “releases dealer… from any and all liability, claims…”

• Vehicle history reports • Structural, unibody or frame damage • Repossession Verbal statements must be in writing.

WINTER 2015 | THE VIRGINIA INDEPENDENT NEWS |

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The Internet Corner It’s 5 O’clock. Do You Know Where Your Leads Are?

BY JOHN SUMMER JTZEnterprise.com 877-286-1564 We have all heard the term, “mystery shopping”. It is the act of anonymously shopping your own store or product in an effort to measure employee and product integrity. Put another way, you look at your dealership through the eyes of your client. This practice has been around for more than a century and the term, “mystery shopping” was coined in the 40’s.

Even with, or due to, the advances of modern technology, the need for dealerships and business owners to mystery shop themselves has never been higher. You want to be the most successful you can be. You want to do the most for your customers. Yet, sometimes being “in the scene” keeps you from seeing what is “on stage”.

Getting a different perspective on what you see every day will help maximize profits and help you solve problems for your customer.

It is hard to anonymously shop your dealership in person because your employees (should) recognize you.

In that case, you might ask a friend or hire a company to evaluate your store and your employees for you.

However, when it comes to the Internet, you can and should mystery shop yourself at least once a month.

Instead of mindlessly playing games on that tablet in the evening, you might instead shop for your cars and yourself. If you find yourself killing time at the car lot playing Spider Solitaire, you could be peeking behind the curtain and seeing what is “on stage”.

There are two important things you want to look for when shopping your own dealership and they can either get you in hot water with advertising regulations or cost your dealership tens of thousands of dollars in lost profit. The first thing you want to do is know where your vehicles are getting advertised and the second thing you want to know is who gets your sales leads.

The easiest way to start this mystery shopping is to Google 1-3 of your VINs and 1-3 of your Year Make Models. If you have something

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unique, or something that has been in stock, use them over the newer, more average vehicles.

Knowing where your cars are advertised is just the first step. Once you find your vehicles you want to be sure the ad copy itself is compliant with the advertising regulations in your area. You want to be sure you find your listings on all the sites you are paying to advertise with. Nothing is worse than paying for advertising that you are not getting. Are your listings accurate and up to date?

Pricing a car to a customer at a different price than what they saw online undermines your credibility.

Some of you will find your cars on websites you had no idea you were advertising with. If so, you want to pay extra attention to several things like, is the processing fee displayed properly, is it your phone number listed for the shopper to call, and do they identify your dealership by name. In some cases we have seen a client’s inventory get “scraped” from one site and imported into a “link farm” site. Dealers have received adverse action letters from the Virginia MVDB in recent history because these scrapers did not properly display these “free” ads, even though the dealerships had no idea it was happening. If you are able to detect this type of activity occurring with your online listings, we encourage you to first contact the advertiser and demand they fix the ads or remove them. Then, we suggest you inform the MVDB of your findings and actions. They may be able to help get action from the offending site, if you cannot.

Now that you know where you are advertising on the web, the next step is to see where your leads are going.

The first good reason for doing this is to witness first-hand what you are paying for. Many dealerships pay for advertising they never see. If you look at it from your shoppers’ eyes, though, you will see things you may have been over-looking. You want to follow the path to a sale as if you were the shopper. Take a minute to verify the credit application works. Fill

| THE VIRGINIA INDEPENDENT NEWS | WINTER 2015

out an inquiry everywhere you can and look for issues you might run into if you were a real shopper. When you submit these leads, be sure to use a personal email account. By doing so you will ensure you get all the responses to the Call To Action you just performed. Yes, your staff might recognize your email, but still you will be able to judge things like reaction time, content of reaction, etc.. More importantly, though, if these online advertisers are sharing your leads with other car dealers, you have then discovered a huge hole in your profit stream!

I recently helped an employee purchase a car and did some online research. I was visiting a site to which we feed inventory data when I found one of my client’s cars listed and I flippantly sent him a lead making a comment about the car.

The next day, I began receiving emails from that website wanting me to apply for credit and consider other similar cars belonging to other area car dealerships. My client did not know this website was reaching out to me this way. If you are paying good money for advertising, you probably want to be sure you are not helping your competition in the process. We have had clients tell us leads created from their listings were actually sold to others. If there is a credit application connected with your online listings you need to be sure you are the only one getting those leads or else you will not be in compliance with all the privacy laws you contend with as a dealer. Most dealerships have privacy policies in place which forbid the idea of selling that application to someone else.

Once a month you should take a few minutes to shop yourself. Follow a call to action or two and then verify you get contacted by your dealership and not the one down the street.

Being vigilant will help keep you out of trouble with the law and at the same time boost profits.

Happy shopping!

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Mike Hockett - Pres, Nate Seeley - AGM, Dody Nolan - Fleet Lease Mgr, Tyrone Houston - Sales Mgr, Dustin Hockett - WINTER Registration/Arbitration, Janice Hicks - Transportation 2015 | THE VIRGINIA INDEPENDENT NEWS |

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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.

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| THE VIRGINIA INDEPENDENT NEWS | WINTER 2015