the Front Row - May / June 2021

The official publication of the Washington State Independent Auto Dealers Association

May| May |June 2021

FEATURING 4 BEST PRACTICES FOR BUY HERE PAY HERE DEALERSHIPS WATCH OUT FOR THE CAT(ALYTIC) BURGLER NIADA GOVERNMENT REPORT

TABLE OF CONTENTS May | June 2021

The official magazine of the

WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION 707 Auburn Way South | Auburn, WA 98002 T: 253-735-0267 | F: 253-804-0844 staff@wsiada.com | WSIADA.COM

Executive Board: Randy Fletcher, Board President In-N-Out Auto Sales | President@wsiada.com Wasim Azzam, Board Vice-President All Right Auto Sales | VPresident@wsiada.com J.T. Curry, Board Secretary Motors Northwest | Secretary@wsiada.com Emil Scarsella, Board Treasurer Town & Country Auto Sales | Treasurer@wsiada.com

MEMBER

Chapter Presidents: George Henson – North Cascade Walker Motor Works | NoCascade@wsiada.com Badie Darwazeh – North Sound Seattle Auto Haus | NoSound@wsiada.com Wasim Azzam – South Sound All Right Auto Sales | SoSound@wsiada.com Vacant – Vancouver | Vancouver@wsiada.com Vacancy – Yakima | Yakima@wsiada.com Vacancy – Tri-Cities | Tri-Cities@wsiada.com Vacancy – Spokane | Spokane@wsiada.com

At-Large Board AJ Hamedian, Board President (Emeritus) Excellent Choice Auto Sales, LLC Ken Williamson, Board President (Emeritus) John’s Auto Mart, LLC John Biddle, Board Member Brooks Biddle Andrew Drager, Board Member Drager’s International, Inc

WSIADA Staff Brian Dansel, Executive Director Colette Eilers, Receivables/Payables Rick Olson, Education Manager Mila Froman, Membership Manager Vacant, Seattle Auction Store Manager Vacant, Spokane Store Manager

Publisher Sygnifi Networks | SmartDealer@sygnifi.com © Copyright 2021 WSIADA

2 | Events Calendar Legislative Update 5 | Executive Director’s Corner 6 | Auction Listings 7 | News from WSIADA 8 | 4 Best Practices for Buy Here

Pay Here Dealerships

10 | Enrollment Form 12 | Watch Out for the Cat(alytic) Burgler 14 | Used Car Shoppers Might Find the

Best Deals over 100,000 Miles

16 | Washington Update

NIADA Government Report

18 | Associate Members’ Update 19 | Service Provider Directory 20 | Read & Respond: Continuing Ed Quiz

the Front Row | wsiada.com | May/June 2021 |

1

EVENTS CALENDAR T itle W orkshop

2021 E ducation F air

wsiada.com/education/title-workshop

wsiada.com/education-fairs

May 20, 2021

*Tentative Schedule*

June 17, 2021

July 13, 2021 - Spokane August 19, 2021 - Seattle

LEGISLATIVE UPDATES as of 26 April 2021 S enate B ills « SB

5448 – An Act relating to payment plans for certain vehicle fees and taxes « Status: Stalled

« SB

5444 – An Act relating to implementing a per mile charge on electric and hybrid vehicles « Status: 2nd Reading

« SB

5192 – An Act relating to supporting access to electric vehicle supply equipment « Status: Passed Legislature –

Delivered to Governor « SB

5085 – An Act relating to modifying certain alternative fuel vehicle fees (electric motorcycles) « Status: Executive Session

Scheduled « SB

5152 – An Act relating to enhancing data stewardship and privacy protections for vehicle and driver data by clarifying the allowable uses of personal or identity information, prescribing penalties for data misuse, and codifying existing data contract practices. « Status: Governor Signed – Effective

date 7/25/2021

H ouse B ills « HB

1049 – Concerning the off-site delivery of a vehicle by a vehicle dealer licensed under chapter 46.70 RCW « Status: Delivered to Governor

« HB

1539 – An Act relating to narrowing the business and occupation tax deduction, and sales and use tax credit and refund, for bad debts available to sellers. « Status: Stalled

« HB

1322 – An Act relating to off-road and snowmobile registration enforcement « Status: Passed Legislature

« HB

1399 – An Act relating to reducing barriers to professional licensure for individuals with previous criminal convictions « Status: Passed Legislature – Delivered to Governor

« HB

1439 – An Act relating to authorizing military surplus vehicles to operate on public highways « Status: Stalled

« HB

1269 – An Act relating to motor vehicle transporter license plates

« Status: Passed Legislature – Delivered to Governor « HB

1107 – An Act relating to expanding certain nonresident vessel permit provisions « Status: Passed Legislature – Delivered to Governor

« HB

1496 – An Act relating to creating a more progressive tax system in Washington by enacting an excise tax on sales and extraordinary profits of high valued assets. « Status: Stalled

« HB

1287 – Concerning preparedness for a zero-emissions transportation future (Clean Car 2030 law) « Status: Governor Signed

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HARNESS THE POWER OF OUR DMS PLATFORM

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Washington State Independent Auto Dealers Association P: 253-735-0267 F: 253-804-0844

707 Auburn Way South Auburn, WA 98002

E: staff@wsiada.com W: www.wsiada.com

EXECUTIVE DIRECTOR’S CORNER

as an advisor at both the National Economic Council as well as the United States Department of Agriculture.

Brian Dansel Executive Director WSIADA

W

SIADA is excited to announce the hiring

of Brian Dansel as our new Executive Director.

Mr. Dansel was previously a Washington State Senator as well

Prior to that, Dansel made his start in the Automobile Industry.

“My first car was a 1956 Chevy BelAir, and since then I was hooked on cars,” Dansel said. “That’s why my first job was at a car dealership—I simply love the industry.”

Dansel says that his experience in the Senate led him to believe that any industry is only as good as its’ trade association. “I have seen firsthand how important sticking together is to bring a more unified

and amplified voice. One of the things I look to do pretty quickly is actually get out to not only chapter meetings and educational trainings, but also in-person visits to your store,” he added.

Dansel looks to bring his combination of legislative, advisory, and sales experience to expand the Association’s clout. Brian enjoys spending time with his wife Carrie and their two sons Gavin and Sam. His first day on the job was May 3rd— so please swing on by our headquarters and welcome the new guy!

the Front Row | wsiada.com | May/June 2021 |

5

AUCTION LISTINGS For a current calendar view, visit WSIADA.com and select “Calendar” from the top navigation menu

Adesa | adesa.com/seattle Tuesday: Consignment @ 9:30AM

DAA | Northwest | magauctions.com/daanw Weekly auctions: Thursdays @ 9AM

Alternate Tuesday: Specialty @ 8:30AM

Monthly promotional event auctions: Wednesday @ 2PM & Thursday @ 9AM

Thursday Night: InOp Sale @ 4:45PM Adesa | Portland | adesa.com/portland Thursday: Consult website

Monthly MotorSports auctions: Thursdays @ 11AM (Lane 8) Monthly RV auctions: 11AM (Lane 8)

Copart | copart.com Times vary: Consult website

Heavy Metal auctions @ 8:30AM as scheduled (Lane 8)

CTM Unlimited | ctmunlimitedauction.com See website for auction dates and times

NOTE: MotorSports, RV and Heavy Metal auction dates can be found at daanwmotorsports.com

DAA | Seattle | magauctions.com/daasea Friday: Dealer and Fleet/Lease @ 9AM

Ehli Auto Auctions | ehliauctions.com Last weekend of every month

Alternate Friday: Heavy Metal* @ 9AM (Lane 8)

IAA - Insurance Auto Auctions Seattle iaai.com See website for dates and times

Monthly GSA Public Auctions @ 1PM as scheduled *Mechanically-challenged/cosmetically damaged/non-running inventory

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IAA - Insurance Auto Auctions Spokane

(509) 891-2388; See website for dates and times Kaman | kamanauctions.com Thursday @ Noon Kaman | kamanauctions.com Thursday @ Noon Manheim | Seattle manheim.com/locations/SSAA/events Monday: OVE Event Sales Tuesday: Alternate weeks Ford Factory (Closed sale) @ 10AM; Crossborder Mobile Sale @ 1PM Wednesday: General Sale Weekly @ 9AM All sale dates and times are subject to change.

Please verify with the Auction or manheim.com.

Manheim | Portland manheim.com/locations/PAA/events Tuesday: Open Sale @ 9AM

NEWS FROM WSIADA

News from WSIADA

By Rick Olson

I

t’s been an interesting first quarter of 2021 for the

Association and our dealerships in Washington State. With the loss of our Executive Director, Todd C. Elliott, in December to cancer, the office staff has continued to fulfill Todd’s plan until our new Executive Director, Brian Dansel, has joined us.

Dealerships in Washington State have had a rough year from the COVID-19 pandemic, many were unfortunate to being forced to close business entirely while others held on by sheer will. The recovery is slowly coming. Inventory is one of the most difficult business items dealerships are needing.

again in Spokane and Seattle. This is depending on the phase status to allow for a large group to meet safely.

Should this option be unavailable, we will switch to a online webinar format similar to the Education Fair 2020 to ensure dealerships have access to the speakers and their education opportunities.

Auctions like DAA Northwest/ DAA Seattle are returning to inlane auctions with vehicles running through the lanes much to the enjoyment of the dealerships in the area but the auctions will continue to provide digital sales for dealerships.

We have confirmed the Washington Attorney General’s office and Department of Licensing will be speaking during this event.

Other speakers will be announced as we confirm. Registration for the events is available on WSIADA.com

Education Fair is in the planning stages for this year. We are hoping to provide the in-person meetings

We hope to have more details available to dealers soon.

the Front Row | wsiada.com | May/June 2021 |

7

4 BEST PRACTICES FOR BUY HERE PAY HERE DEALERSHIPS

Zach Klempf, Founder & CEO Selly Automotive

A

ccording to a survey by cars.com, 93% of

people say they are now using a personal vehicle more than they were pre-pandemic, and it’s unlikely that this use will decrease any time soon. The economic downturn and the high number of unemployed individuals will drive people to turn more frequently to buy here pay here dealerships, as they are unable to pursue traditional financing.

Although best practices are always critical to success at a buy here pay here dealership, implementation now will increase dealers’ ability to flourish and thrive. Here are four best practices we’ve gathered for your buy here pay here dealership.

Give Your Sales Team the Training They Need You already know that your people are the core of your business and its most valuable asset and resource.

Appropriate and relevant training sets up your salespeople to have the right information at the right moment for the customer.

Sales skills such as negotiation,

overcoming objections, and closing the deal are perhaps some of the first areas that come to mind.

However, compliance is one of the most important areas to remember for ongoing training, especially as regulations and laws change frequently. If your salespeople take action that is outside of compliance, the consequences will fall back on you. Make use of industry organizations, such as NIADA, which often offer up-to-date training.

Systems training for your team is also critical. Do they understand how to use your CRM? How to access templates for emails and SMS text templates? What about basic marketing tasks you expect them to complete, such as replying to Facebook Messenger chats?

Make Sure Your Working for You

Website

Is

Buy here pay here dealers understand the importance of maintaining the right inventory for their customer base: inventory that is dependable and will last for the terms of the deal; inventory that is diverse and will capture your customers’ interests and needs; and inventory that is clean and well-presented. In the past, this has been enough, but now, it’s critical that your digital home meet these standards as well.

According to McKinsey & Company, 75% of Americans have

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tried new shopping behaviors due to COVID-19, including no-contact orders and deliveries. Customers have become more and more comfortable with the pre-shopping experience and the subsequent purchase occurring online.

With your dealership’s website, you want to ensure that it’s maximized for both information and function. It should look appealing and be mobile friendly. List inventory and provide detailed, compelling descriptions and attractive photographs, or even video tours. Consider expanded chat functions and the ability to obtain pre-approval, and complete paperwork or submit financial identification ahead of time seamlessly. Share video testimonials from customers who purchase and finance their vehicle with you for a more personalized connection.

Websites that are inviting, functional, and compelling are the foundation of a robust digital marketing strategy, critical as we move into the digital future. Carvana, for example, understands the importance of this approach and has leveraged it to fuel their growth.

Strengthen Relationships with Automated Marketing and Lead Nurturing Maybe your buy here pay here dealership is already doing community outreach programs, or meeting a specific need of your local

community. It’s essential to nurture and develop the relationships begun during that outreach while they’re still warm. But how?

More than ever before, customers expect personalized communication that addresses their needs and holds their attention. Thanks to digital giants such as Facebook, Google, and Netflix, who use their data insights to ensure customers receive (and enjoy) a unique-tothem customized experience, customers expect — and demand — this attention and personalization.

Using digital tools to automate text messages, birthday reminders, or car anniversaries can facilitate your team of salespeople preplanning their touches with the customers. Some buy here pay here dealerships are even using text messages for payment reminders and collections notices.

This pre-planning allows team members to use templates and

schedule the contact ahead of time; that means a salesperson can assist a customer at the dealership at the same time that they are nurturing a lead, saving valuable time (and therefore, money). When you consider buy here pay here software options, you want to make sure that your CRM has this capability so that you can build and strengthen community relationships. Buy here pay here, is, after all, a business built on relationships.

Manage Cash Flow COVID-19 reiterated the importance of managing cash flow, which will continue as vaccines roll out and the economy responds to the long-term effects of the past year.

Although there’s hope that things will return to normal around the 2nd quarter of 2021, it’s normal to expect that after an event such as this, there will be customers whose lives have been affected by COVID-19. There may be an increase of customers for buy here pay here, as a result, and

potentially, higher demand for buy here pay here inventory.

Dealers must think about cash flow for the long-term, not just the immediate moment, or even the upcoming three to four months.

Develop a strategy and plan that mitigates risk to your cash flow.

Ensure that you have adequate capital and know exactly what your costs are for competitive inventory and your operating expenses. You are no longer just competing against the buy here pay here dealer down the street, you’re also competing against much more sophisticated investors with deep pockets.

A seamless CRM that integrates with your DMS can help facilitate many of these best practices; the right buy here pay here software helps control costs and expenses by implementing efficient systems and procedures that support the steps mentioned above.

the Front Row | wsiada.com | May/June 2021 |

9

Washington State Independent Auto Dealers Association

Dealer Member Enrollment

YES! YES!

I know that it is important to be recognized as a professional in the automotive industry!

Enclosed are my annual dues to ensure that my business has all the advantages WSIADA/NIADA provides to put me at the forefront of my profession. By completing this form, I am consenting to and giving WSIADA/NIADA, their affiliates and/or subsidiaries, my permission to contact me at the methods I have provided on this form until/unless I revoke that permission in writing. I hereby certify that (I am/we are) eligible for membership in WSIADA.

ENROLL: Member Name Business Name

Dealer No.

MEMBERSHIP CATEGORY:: Dealer Membership is [a] limited to any sole proprietorship, partnership or corporation which is engaged in buying and selling motor vehicles as a principal part of its business; and [b] member must hold a vehicle dealer’s license issued by the Washington State Department of Licensing. $450 Annual Charge (payable by debit/credit card or company check)

Billing Address City

State

Business Phone

Mobile

Zip

County Fax

Email

See reverse side of form for some of the many benefits of WSIADA membership!

PAYMENT METHOD:

CHECK No._______________ (Checks are not accepted for monthly membership payments) VISA

MC

Discover

CARD NUMBER

AMEX

EXPIRATION DATE

NAME ON CARD

CARDHOLDER SIGNATURE

CCV

BILLING ZIP CODE

Disclaimer: This agreement is for one-year membership with WSIADA and may not be canceled if dealership has used any of the membership benefits. If an outstanding balance by usage of Invoice/Billing benefit is accrued during the year and exceeds $500 or past due 90 days in total, all access to WSIADA services, including education related products, will be suspended until balance is paid in full.

DELIVER TO:

WSIADA 707 Auburn Way South Auburn, WA 98002

FAX 253-804-0844

10 | the Front Row | wsiada.com | May/June 2021

EMAIL(as an attachment) membership@wsiada.com

ENROLL ONLINE www.wsiada.com

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If you want to properly protect your dealership ask an insurance professional who understands your business.

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Shepard & Shepard Insurance 855-396-0488 MEMBER - NIADA, OIADA, WSIADA, ISIADA, ASA Home office: Tri-Cities, WA

WATCH OUT FOR THE CAT(ALYTIC) BURGLER

Todd Shepard, Founder Shepard & Shepard Insurance Solutions

T

hey say it takes an experienced thief only

two minutes to cut or unbolt your catalytic converter and nowadays its even happening in broad daylight!

The theft of catalytic converters has been on the rise with some areas receiving multiple theft reports daily.

Scrap recyclers will pay big money for a stolen converter because they will get even bigger money when they extract and sell the precious metals. Feeding this market is the continued increase in value of those metals, especially the silvery-white chemical element called rhodium which has skyrocketed in value over the past few years. To understand why the price of rhodium has jumped like crazy we need to look to the platinum mines of South Africa where over 80% of the world’s rhodium is produced. Rhodium is a by-product of the production of platinum and palladium. When the miners in South Africa are cranking out platinum there is plenty of rhodium to go around. The problem occurred around 2008 when the

What is a catalytic converter?

Since 1976 the United States has mandated cars and trucks be equipped with a round canister connecting two pieces of piping in the exhaust called a catalytic converter.

The converter contains platinum, rhodium and palladium which have a unique ability to remove the most toxic pollutants from vehicle exhaust.

Since the goal of the catalytic converter is to change harmful gasses from the vehicle exhaust into something less damaging to the environment these metals are precious in more ways than one!

Why would thieves catalytic converters?

target

12 | the Front Row | wsiada.com | May/June 2021

recession hit causing a reduction in the demand for platinum yet the mining continued full throttle. After a while they realized so much platinum had been stockpiled, they had to slow production, drastically reducing availability to the leftover rhodium we need to shove up our exhaust.

That brings us to today’s problem.

Until there is a higher demand (and more profitability) in the production of platinum it’s not likely we will see any substantial increase in mining activity resulting in a decrease in availability, and increase in the value of, our friend, rhodium.

Is the theft of my catalytic converter covered under my insurance?

Yes and no. While the theft of auto parts is a covered peril under comprehensive part of a policy the cost of replacement is often similar to the deductible on a commercial insurance policy meaning yes you can claim it, but you may not get much, if any, to cover the loss.

Keep in mind also that each stolen converter will usually result in its own deductible so it can be very costly if you have multiple cars hit at one time. A good way to protect yourself is to review your insurance policy and request your agent add an ‘aggregate’ to your comprehensive coverage if not already in place. An aggregate will usually cap your outof-pocket exposure to five times

your deductible when there is a loss involving multiple vehicles.

What is being done?

According to the Insurance Journal, some states are considering legislation to address the growing problem. In North Dakota, a bill was introduced making it illegal for core recyclers such as junk dealers, pawn shops, recyclers to purchase catalytic converters that are not attached to a vehicle unless the recycler is a parts dealer or repair company. Regulations to crack down on the purchase of off the street parts is likely the only way to curb the demand. Auto dealers and

auto service shop owners may want to discuss this topic and potential solutions with their associations and representatives.

In the meantime, the best protection is to keep your lot well lit, monitored by a security system, park inside if possible, inspect your inventory daily for loss or damage, and report any suspicious activity.

Todd Shepard is the founder of Shepard & Shepard Insurance Solutions and regular contributor to the Front Row. For more information or a dealer insurance quote visit shepquote.com or call 855-396-0488

the Front Row | wsiada.com | May/June 2021 |

13

USED CAR SHOPPERS MIGHT FIND THE BEST DEALS OVER 100,000 MILES

Jonathon Ramsey

T

he demand for vehicles to buy, as the economy

reopens, has left a lot more people chasing a smaller herd of used cars, so it’s time to look at all your options.

•

•

•

Right now, used-car prices are up an average of 14 percent compared to the spring of 2020, with pickups up the most—27 percent. The average price of a used-car purchase is now nearly $24,000.

That’s not as bad as new cars, which are going for an average of more than $40,000, and the selection on dealer lots is reduced because of the COVID-19 pandemic, the current semiconductor shortage, and high demand for vehicles.

Higher-mileage vehicles may be the answer for buyers looking for a good deal on a vehicle, considering the durability of many vehicles on the used market.

A year ago, as this bad trip known as the coronavirus pandemic did

a Freeze Dance number on the economy, the auto world became a breeding ground of unknowns. Used cars emerged as one of the greatest unknowns, having what Automotive News called a “strange moment.”

Wholesale and trade-in values had plummeted. But while no one was buying new cars, retail prices were off by just 1 percent in April 2020, leaving dealers unsure of how they should even value used cars.

By July, used-car values found their legs. And by October, used-car prices had made record-breaking leaps. Now, six months later, prices still hover at altitudes that require supplemental oxygen. CarGurus’ tool for tracking used-car price trends shows the average price of a used car is $23,723, up almost 14 percent compared to this time last year. That’s more than 10 times the 2020 rate of inflation. Every vehicle segment has seen gains, the smallest bump being about 5 percent for hatchbacks and wagons.

Pickup values rose a whopping 27 percent, and vans—that’s right, vans—are up more than 20 percent.

Remember when Reddit took its talents to GameStop stock? The Manheim Used Vehicle Value Index looks like the GameStop stock chart.

If you have a trade-in or used car to sell, now is the time. If you’re a used car bargain hunter, your hunt will take longer and lead you farther afield. So, why are values stuck in the mesosphere, when will the market get back to normal, and where is the

14 | the Front Row | wsiada.com | May/June 2021

best place to look for a steal?

Values remain high because the used market continues to endure same issues that caused the price run. New car production isn’t at full strength thanks to shortages of materials as varied as steel, semiconductor chips, and seating foam. “Combine this with manufacturers and dealers looking to ‘right size’ their inventories, sales lots are less crowded than before the pandemic and offering buyers a more limited selection of new vehicles,” Sam Fiorani, an AutoForecast Solutions, said.

Without such resupply, Cox Automotive said new-car inventory at the end of March was 59 days, 41 percent lower than March 2020.

Limited stock, as well as an increasing number of standard features and higher materials costs, have supercharged new-car prices.

In July 2020, Kelley Blue Book pegged the average price of a new car at $38,378. In December 2020, that number crested $40,000 for the first time ever. Last month, the figure had risen further, to $40,472, a 4.3 percent increase over one year ago.

Furthermore, as automakers give up on subcompacts, hatchbacks, and sedans here, there are fewer new vehicles available below $30,000.

All of this continues to drive car buyers to the used market. At the top tier of the pre-owned market, CPO sales are up 14 percent in the first quarter of this year compared

to the same time in 2020.

However, fewer new car purchases mean fewer used cars to choose from.

The National Automobile Dealer’s Association’s 2020 report said that nearly 42 percent of a dealer’s used inventory comes from trade-ins on a new vehicle. On a cheerless note, moratoriums on repossession have been another constraint on the wholesale market, shrinking stock that goes to auction. Dealers scouring new sources of used inventory have flocked to auctions already grinding through decreased supply, and dealers are competing with one another and with online sellers like Carvana and Vroom.

This has left a lot more people chasing a smaller herd of used cars as the economy reopens, and people are ready to spend stimulus checks and savings from postponed big-ticket vacations. Also, spring traditionally uncorks the annual carbuying season, adding traditional price pressure to these new factors.

Cox Automotive said used vehicle

sales in March were up 117 percent compared to last year, sending used car inventory to 29 days at the end of March, 15 days below normal. Even the search term “Buy a used car” is hot. Last June it maxed out on the Google Trends chart, a measure of a term’s popularity as a percentage of all searches in every U.S. state.

The phrase has done so again three times since June, most recently last month. These are the only such instances in the past five years.

There are still bargains out there, lurking in a corner of the market many used car buyers typically avoid: vehicles with more than 100,000 miles. Both the novice and the savvy enthusiast used to view 50,000 miles as the bright line separating jewels from junk. But with vehicles having gotten so much better over the last 15 years, and absurd demand, dealers report that used cars with six figures on the odometer are finding good homes.

“The quality of vehicles has improved so much that a 150,000-

mile Toyota Camry brings serious money,” Fiorani said. And then there is the ridiculous rise in residual values on trucks, where a 10-yearold Ram pickup with 100,000 miles can still cost $20,000.”

When will prices come back down? What an Edmunds analyst called “an unprecedented historical shift in the used vehicle market” is likely to continue. Cox Automotive predicts the used market will be short millions of vehicles through 2023, with elevated prices to match.

J.D. Power believes. “We can expect these trends to continue for the foreseeable future, as even after the pandemic has passed, used car prices are likely to continue rising.”

Fiorani isn’t quite that pessimistic— or optimistic. Depending on your point of view. “In the window beyond the next six months, production should stabilize, inventories of new vehicles will rise, and demand will fall to a more normal rate,” he said.

“When that happens, used car prices will normalize.”

the Front Row | wsiada.com | May/June 2021 |

15

WASHINGTON UPDATE NIADA Government Report

much as $3,600 per child.

Brett Scott, NIADA Vice-President of Government Affairs

N

IADA is your voice in Washington D.C.,

advocating for independent dealers, the used vehicle industry and small business. Here’s a look at the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities.

Legislative The final version of President Biden’s massive $1.9 trillion COVID relief package, dubbed the American Rescue Plan, was passed by the House of Representatives on March 10 and was signed into law the next day.

The bill passed the Senate 50-49 with no Republican votes in favor and the House 220-211 with one Democrat – Rep. Jared Golden of Maine – voting against.

The package includes direct payments of $1,400 for individuals earning up to $75,000 per year, $2,800 for married couples earning up to $150,000 and an additional $1,400 per dependent, as well as increasing the child tax credit to as

In addition, the bill extended the $300 per week federal addition to unemployment benefits through Sept. 6 and provided a tax break on the first $10,200 of unemployment benefits received in 2020.

Democratic leaders had pushed for $400 a week in unemployment but lowered that number in a deal with Sen. Joe Manchin (D-W.Va.), who said he would vote against the higher amount.

Other provisions include an additional $7 billion for the Paycheck Protection Program, $350 billion in aid to state and local governments, $14 billion for vaccine distribution and $130 billion for schools to reopen safely.

The bill does not include a couple of items on the Democrats’ wish list.

For one, the $15 per hour federal minimum wage included in the original House version of the bill was removed by the Senate. An amendment by Sen. Bernie Sanders (I-Vt.) to add it to the Senate bill failed by a 58-42 vote, with eight Democrats voting against it.

Regulatory Consumer Financial Protection Bureau: The Senate Banking Committee was split on Rohit Chopra, President Biden’s choice

16 | the Front Row | wsiada.com | May/June 2021

for CFPB director, following his March 2 confirmation hearing.

The committee’s vote ended in a 12-12 tie, split along party lines.

Following the agreement reached

by Democratic and Republican leaders for sharing power in the 5050 Senate, Chopra’s nomination advanced to the full Senate without the committee’s recommendation.

A final confirmation vote was expected by the end of March.

Chopra was expected to be confirmed, with Vice President Harris casting the deciding vote in the event of a 50-50 tie.

In his hearing, Chopra made it clear he intends the CFPB to return to the regulation by enforcement philosophy of former director Richard Cordray, citing the Equal Credit Opportunity Act and credit reporting and debt collection as areas that need additional enforcement.

He also said he would make the CFPB’s expectations clear to market participants and said the bureau should use its enforcement authority to protect small businesses.

While Chopra awaits confirmation, interim CFPB director Dave Uejio rescinded a policy of Trump Administration director Kathy Kraninger limiting the abusive acts and practices standard created by the 2010 Dodd-Frank Act.

The move gives the bureau broad discretion to define “abusive” acts, which are not defined by the legislation.

Federal Reserve: The Fed announced it will extend the Paycheck Protection Program Liquidity Facility through June 30.

The PPPLF was scheduled to expire March 31. The Fed said it would let other emergency lending programs expire on that date.

The PPPLF allows the Fed to expand the reach of the PPP by offering low-interest loans to lenders through the facility and giving non-depository institutions their first access to Fed financing.

Grass Roots Illinois: Illinois IADA is opposing a bill that would require all vehicles registered in the state to have starter-interrupt devices installed.

the federal Military Lending Act has been passed by the legislature and was awaiting the signature of Gov. J.B. Pritzker as of press time.

SB1792 includes a provision called the Predatory Loan Prevention Act, which imposes a 36 percent rate cap but uses the MLA calculation for annual percentage rate, which includes the cost of voluntary goods, services and insurance products – including GAP coverage and other ancillary products that have value to consumers.

The result of that would effectively prevent Illinois dealers from selling those products.

Several business organizations, including the American Financial Services Association, have urged Gov. Pritzker to veto the bill. If he does not veto or sign the bill by April 6, it automatically becomes law.

introduced in both houses of the state legislature to correct that issue.

HB3192, introduced by Democrat Jonathan Carroll, and SB2306, sponsored by Republican Sue Rezin, both would amend the Predatory Loan Prevention Act by replacing all references to the Military Lending Act with the Truth in Lending Act, which does not include voluntary add-ons in its APR calculation.

Rezin said her bill would “continue to allow mainstream financial institutions to offer convenient, well-regulated auto loans to Illinois consumers through Illinois’ auto dealerships.

“Consumer protection for Illinoisans is critical, which is why my bill strikes a balance between protecting Illinois consumers and ensuring safe access to automobile credit.”

Brett Scott is NIADA vice president of government affairs.

If it does, however, bills have been The bill, HB3216, would allow the device to be activated by law enforcement at the vehicle owner’s request, but adds it cannot be activated “solely as a means to secure payment on the vehicle.”

The bill, introduced by Democrat Justin Slaughter, has been assigned to the House Transportation: Vehicles and Safety Committee.

In addition, a bill that would subject all loans – including auto financing – to the restrictions of

the Front Row | wsiada.com | May/June 2021 |

17

ASSOCIATE MEMBERS’ UPDATE

I

ndependent auto dealers now have the opportunity

of providing Vehicle Service Contracts and GAP insurance for their customers. With PRco, dealerships can offer additional coverage that can make a difference between a repeat customer or a one-time only customer.

Sign up today with PRco USA (prcousa.com) or contact 1-800-388-PRco (7726).

SUPERIOR SERVICE STARTS WITH SUPERIOR PARTNERS QUALITY PARTS Replacement Parts

Sell with confidence and reduce comebacks.

Backed by our parts and labor guarantee with 48-hour reimbursement.

Dedicated Services

We prioritize NIADA members’ needs and offer 30 minutes or less delivery on extended import and late model OE and OES parts.

Special Member Pricing

Take advantage of bulk discounts to make the most out of every sale.

REPAIR INFORMATION ALLDATA Repair®

Whether reconditioning for resale or servicing customers’ vehicles, save time and get the job done right with OE-accurate repair data.

EXCLUSIVE DISCOUNTS FOR WSIADA AutoZone Parts & Services ALLDATA Software Solutions ©2021 AutoZone IP LLC. ALLDATA LLC. All rights reserved. AutoZone is a registered trademark of AutoZone Parts, Inc. ALLDATA, ALLDATA Repair, ALLDATA Diagnostics and ALLDATA Tech-Assist are registered trademarks of ALLDATA LLC. All other marks are the property of their respective holders.

18 | the Front Row | wsiada.com | May/June 2021

ALLDATA Diagnostics®

Your affordable scan tool solution, the only one with ALLDATA’s industry-leading repair information built-in.

ALLDATA Tech-Assist®

Call our hotline staffed with ASE-Certified Master Techs. Available Monday through Saturday to help diagnose and repair tough problems.

SERVICE PROVIDER DIRECTORY WSIADA Service Providers know our industry and understand what you need as a dealer. When you’re hiring professionals, support the ones that support your Washington Independent Auto Dealers Association (let them know you saw them listed as a WSIADA Service Provider).

Accounting & Tax Services

Benefits & Health Insurance

RH2 | Rekdal Hopkins Howard

Washington Retail Association

(425) 658-1400 rh2cpas.com Learn more on page 3

Auctions ACV Auctions

Southwest Dealer Services

Bonds and Commercial Insurance

(206) 571-3068 swds.net

Farmers - Karen Dunn Insurance Agency

The F&I Group

(800) 553-4070 acvauctions.comw

Adesa Seattle

Shepard & Shepard Insurance Solutions

Adesa Portland (503) 492-9200 adesa.com/Portland

Copart Auto Auction (253) 847-8300 copart.com

CTM Unlimited Auctions (877) 396-5808 ctmunlimitedauction.com

MAG Auctions Spokane (509) 244-4500 magauctions.com/daanw Learn more on the inside front cover

MAG Auctions Seattle (253) 737-2200 magauctions.com/daasea Learn more on the inside front cover

Ehli Auctions (253) 572-0990 ehliauctions.com

Insurance Auto Auction (IAA) Seattle (206) 658-6900 iaai.com

Insurance Auto Auction (IAA) Spokane (509) 891-2388 iaai.com

Kaman Auctions

(855) 396-0488 shepquote.com Learn more on page 11

Custom Signs Sign Dog

(253) 445-6424 signdogs.com

(360) 710-9545 info@thefandigroup.com

Legal Services Davies Pearson, P.C. (253) 620-1500 dpearson.com

Lending Ally Financial (888) 919-2559 ally.com/dealer

Lobel Financial Corp.

Dealer Management Systems Carousel Software Dennis Demattia demattia@acm.org (509) 926-8848 carouselsw.com

Frazer Computing (888) 963-5369 frazer.com info@frazer.com

Skywerks

(206) 999-6699 skywerks.com

Digital Marketing Sygnifi Networks (833) 794-6434 sygnifi.com

321 Ignition

(253) 839-2600 lobelfinancial.com Learn more on page 3

Nationwide Northwest (206) 259-0203 nac-loans.com

Reliable Credit Association (253) 240-1818 ReliableCredit.com

Parts & Service AutoZone (866) 727-5317 sc53@autozone.com Learn more on page 14, 15

Vehicle Service Plan PRco (800) 388-7726 prcousa.com

(888) 725-7637 321ignition.com

(425) 640-5111 kamanauctions.com

Environmental Services

Manheim Seattle

(877) 220-7827 envirostars.org

(206) 762-1600 manheim.com Learn more on page 16

(206) 718-7234 (Western WA) (509) 705-7597 (Eastern WA) nwdfs.com

(360) 943-9198 waretailservices.com

(253) 964-7070 business.farmers.com/karen-dunn

(253) 735-1600 adesa.com/Seattle

Northwest Dealer Financial Services

EnviroStars

Finance and Insurance

Yarbro Auctioneers

Drive Dealer Solutions

(509) 765-6869 yarbro.com

(425) 321-2825 drivedealersolutions.com

Dealers!

If you have suggestions or ideas for new Associate Memberships, contact membership@wsiada.com and we will follow up.

the Front Row | wsiada.com | May/June 2021 |

19

READ AND RESPOND | MAY/JUNE 2021

T

he WSIADA Read and Respond quiz allows the reader to earn 1 hour of continuing education credit toward the dealership’s required annual renewal. Payment options are available for non-members of the association for notification to the Washington State Department of Licensing. A passing grade will be granted for scores of 80% or greater. If a passing grade is not granted, the reader may retake the quiz.

Dealership Name ___________________________________________ Check:

¡

I have read and understand the disclaimer above.

Quiz Taker’s Name _________________________________________ Signature _________________________________________

Circle the correct answer.

1: Used-car prices are up compared to the spring of 2020 at an average of?

a. b. c. d.

10 percent 14 percent 27 percent 42 percent

2: The round canister connecting two pieces of piping in the exhaust is called?

a. Drivetrain b. Muffler c. Flux Capacitor d. Catalytic Converter

3: Brian Dansel joined the WSIADA in May 2021 in which position?

a. b. c. d.

Send your completed quiz to WSIADA. MAIL: 707 Auburn Way South; Auburn,

WA 98002 FAX: 253-804-0844 EMAIL: education@wsiada.com

Dealer# ___________________________________________

Board President Chairman of the Board Executive Director Chapter President

Position _________________________________________

Date ____________________

Business Phone _______________________________

4: Platinum and Rhodium are byproducts of Palladium a. TRUE b. FALSE 5: In which state was a bill introduced making it illegal for recyclers to purchase catalytic converters?

a. b. c. d.

South Dakota North Dakota New Jersey Washington State

6: Buy Here/Pay Here dealerships utilize text messages for payment reminders and collection notices? a. TRUE b. FALSE 7: The best protection for your lot to prevent loss or damaged inventory is?

a. b. c. d. e.

Email _________________________________________ Fax _______________________________

8: One of the most important training areas due to frequent regulations and laws changes is?

a. Negotiations b. Closing a deal c. Compliance d. Overcoming Objections

9: Sharing video testimonials on a dealership website can create a more personalized customer experience? a. TRUE b. FALSE 10: Nearly 42 percent of dealer’s used inventory comes from what source?

a. Trade-ins from a new vehicle b. Wholesale transactions c. Repossessions d. Auctions

Well lit parking lot Monitored Security System Inspect your inventory daily Park inside, if possible All of the Above

Please be advised that the information contained in WSIADA’s the Front Row is, to the best of our knowledge, current and correct. However, we caution readers not to use the information provided to them as final authority. Its purpose is to be a guide. Any legal advice should be regarded as general information. It is strongly recommended that one contact an attorney for counsel regarding specific circumstances. Some articles may express opinions and/or suggestions for best practices. Likewise, the appearance of advertisers or their identification as members of WSIADA, does not constitute an endorsement of the products or services featured.

20 | the Front Row | wsiada.com | May/June 2021

WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION 707 Auburn Way South Auburn, WA 98002 WSIADA.COM

Download the WSIADA App Today!

Online shopping, e-news, alerts and more!

For More Information Contact: WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION 707 Auburn Way South | Auburn, WA 98002 Phone 253-735-0267 | Fax 253-804-0844 staff@wsiada.com | WSIADA.COM

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