DRIVING INTO 2025: NIADA’s Roadmap to Industry Growth and Advocacy
Increase Profitability: Seven Tips for Independent Car Dealers
Future Federal Regulations: What Financial Services Could Expect
DIRECTOR’S FEATURE
Driving Success Together: The Value of Membership & Advocacy for Independent Dealers
Lessons of Leadership
During a Crisis
Roundtable tips provide strategies for dealers
Manheim Seattle wants to express our heartfelt thanks to you for being incredible partners in 2024 and wish you growth and success in 2025.
Our goal for 2025, is to continually offer innovative options to create your best buying experience and ways for you to manage your inventory effectively and efficiently. Manheim provides everything you need to make wholesaling more productive and profitable.
The epitome of one stop success.
THE FRONT ROW
The official magazine of the WASHINGTON STATE Independent Auto Dealers Association 707 Auburn Way South | Auburn, WA 98002
T: 253-735-0267 staff@wsiada.com | WSIADA.COM
EXECUTIVE BOARD
Badie Darwazeh, Board President Seattle Auto Haus | President@wsiada.com
Randy Fletcher, Board Vice-President In-N-Out Auto Sales | VPresident@wsiada.com
Emil Scarsella, Board Treasurer Town & Country Auto Sales | Treasurer@wsiada.com
Wasim Azzam, Chairman of the Board All Right Auto Sales | Chairman@wsiada.com
CHAPTER PRESIDENTS
Tony Bonnallie – North Cascade Mission Motors | NoCascade@wsiada.com
Denis Costin – North Sound Independent Motors | NoSound@wsiada.com
Dominic Adams – South Sound Gene Pankey Motor Co. | SoSound@wsiada.com
Rachel Frankel - Vancouver Top Auto Brokers | Vancouver@wsiada.com
Vacant Position – Yakima Yakima@wsiada.com
Julie Lindstrom – Tri-Cities
Bulldog Motors | Tri-Cities@wsiada.com Vacant Position – Spokane Spokane@wsiada.com
AT-LARGE BOARD
Ken Williamson, Board President (Emeritus) John’s Auto Mart, LLC
WSIADA STAFF
Rick Olson, Director of Operations
Mila Froman, Membership Manager
Mary Walton, Accountant
Lane Schulz, Retail Associate
Production Editor Professional Mojo
Copyright 2025
2 DIRECTOR: DRIVING SUCCESS TOGETHER: THE VALUE OF MEMBERSHIP & ADVOCACY FOR INDEPENDENT DEALERS
The Association highlights its advocacy efforts, educational initiatives, and leadership growth to emphasize the value of membership for independent auto dealers.
4 DRIVING INTO 2025: NIADA’S ROADMAP TO INDUSTRY GROWTH AND ADVOCACY
NIADA is optimistic about 2025, highlighting its advocacy successes, industry progress, and expanded education initiatives, while continuing to prioritize dealer support and influence in Washington.
6 HURRICANES IMPACT AUCTION SALES IN OCT., BUT VOLUMES STILL UP DOUBLE-DIGITS
Despite a slight monthly decline in October wholesale auction sales due to hurricanes in the Southeast, year-to-date sales remain up 10% year-over-year, with strong growth in dealer and commercial consignments.
8 7 WAYS TO INCREASE PROFITABILITY AS AN INDEPENDENT CAR DEALER
Independent car dealerships can boost profitability and navigate an uncertain future by focusing on market-specific inventory, optimizing sourcing and
pricing strategies, leveraging service drives, providing vehicle history transparency, and streamlining operations for efficiency.
10 FUTURE FEDERAL REGULATIONS: WHAT FINANCIAL SERVICES COULD EXPECT
President-elect Donald Trump’s past financial services policies focused on tax cuts, deregulation, and changes to oversight, aiming to boost economic growth but raising concerns about market stability and regulatory adequacy.
12 CFPB TAKES ACTION AGAINST WRONGFUL AUTO REPOSSESSIONS AND LOAN SERVICING BREAKDOWNS Consumers given inaccurate loan disclosures and charged for add-on products without consent
14 ROUNDTABLE TIPS PROVIDE STRATEGIES FOR DEALERS
The BHPH Dealer Forum featured dealerled roundtables where top industry experts shared strategies on sales, marketing, and operations.
15 WSIADA DEALER MEMBERSHIP
Get on board and see the difference!
18 LESSONS OF LEADERSHIP DURING A CRISIS
A Texas car dealership owner demonstrated impactful leadership by prioritizing empathy and customer care over collections following a severe storm, teaching a young lawyer the importance of people-first values in business.
19
& RESPOND QUIZ
DIRECTOR’S MESSAGE
Driving Success Together: The Value of Membership & Advocacy for Independent Dealers
BY RICK OLSON, DIRECTOR
Over the past year, I have dedicated a substantial amount of time to developing an Association that our dealer members can use as a resource. We want our dealers to remember to contact us with their questions, concerns, or ideas to strengthen the industry and better protect your business.
With all the progress, there will always be some who feel we fall short in one way or another and some will resort to passive aggressive comments. We can’t make everyone happy; I wish we could but it is realistically not possible.
One of the biggest dealer questions is why they should pay for the membership? We can go into the long list of benefits and savings, but we won’t. I will say this is the only Independent Auto Dealers Association, recognized by National Independent Auto Dealers Association (NIADA) and other state IADAs, that has a full-time lobbyist ready to protect our dealer members during legislative sessions. This allows us to go to the Capitol regularly to discuss issues and make a real difference.
Remember the 2023 Attorney General Used Car Warranty Bill? Our Association and its members were the ones to defeat the bill and keep it from making a nightmare for the independent dealers if there wasn’t representation.
This is an important part of the value your dealership enjoys when it has a membership with us.
We completed our autumn/winter Chapter Meeting schedule with much
more information than previously provided. Attendee feedback indicated that dealers desire increased education topics. Our Spokane, Tri-Cities, Yakima, and Vancouver meetings guest speakers included Region 2 Washington State VIN Inspection and provided updates on the hiring and reopening schedules
During the winter Chapter Meetings, the Association was able to add Chapter Presidents to both South Sound and Tri-Cities. Julie Lindstrom of Bulldog Motors is now the Tri-Cities Chapter President, and Dominic Adams of Gene Pankey Motor Company is now the South Sound Chapter President.
for many of the lanes that have been closed since the pandemic.
Senator Curtis King of Yakima was kind enough to attend our Yakima Chapter Meeting (pictured above) in December to give the dealers in the area the opportunity to discuss much needed changes and protections for their businesses. The Senator will take this feedback when he returns to to the Legislature later this month.
Both of these individuals will be fantastic additions to the Board of Directors and represent those chapters as they are knowledgeable, passionate about the industry, and looking forward to helping their area dealers becoming stronger in the community.
We look forward to seeing what 2025 will bring us, and we want you to succeed in the new year - more sales and inventory. n
DRIVING INTO 2025: NIADA’s Roadmap to Industry Growth and Advocacy
BY JEFF MARTIN, NIADA
Let me start by wishing you a Happy New Year. I am excited about what NIADA has in store for 2025 and the renewed optimism around the used car market.
The past few years have been challenging for our industry from higher interest rates, inventory constraints, rising insurance premiums, increased regulation and limited access to capital.
We know dealers have had to navigate a lot of challenges. But as an industry, we’ve more than persevered; we’ve thrived. For the second year in a row, independent automobile dealers will sell more used vehicles than franchise dealers. We’ve started to turn the corner on inflation with the start of the decline of interest rates by the Federal Reserve. Inventory has increased, bringing down prices. Most legal and compliance experts say we could see a significant reduction in “new” regulations.
Lenders are talking about getting back into this space or growing their footprint.
In representing you and the industry, NIADA made great strides in 2024, and we look to continue the momentum in 2025.
Here is the start of what the association is working on for you in the upcoming year.
On numerous occasions, I have discussed what I feel is the most important responsibility of any trade association, growing its influence to better represent its members and protect the industry. NIADA took a major step forward in advocating for dealers and the independent auto industry in the past year, bringing aboard the lobbying firm Hance Scarborough to have a continual presence in Washington, D.C., and to remain engaged with lawmakers on pressing issues.
Throughout 2024, NIADA maintained an active dialogue with federal agencies, the Consumer Financial Protection Bureau, Federal Trade Commission and the IRS. All three attended the NIADA Convention and Expo to speak with and answer questions from dealers. During the NIADA Policy
Conference, dealers visited the offices of the CFPB and FTC to continue conversations and develop a stronger working relationship that carries on into 2025.
Speaking of the Policy Conference, NIADA will join dealers and member affiliates once again in Washington, D.C., to take our message to Capitol Hill to meet with lawmakers and the federal agencies. The more than 100 attendees at this year’s policy conference had more the 200 meetings with lawmakers to discuss catalytic converter theft prevention, the right to repair and the CARS Act.
NIADA filed an amicus brief in the U.S. Fifth Circuit of Appeals last year on the lawsuit filed by the NADA and Texas ADA on the CARS Act. A stay remains in place on the onerous rule as a decision from the court awaits. But in the meantime, at conferences and through its publications, NIADA has continued to prepare dealers for the possible rule and has continued engaging lawmakers to curb its enforcement.
The advocacy efforts do not stop at Capitol Hill. NIADA has increased the size of the legislative committee to monitor legislation in different states impacting the industry. A coalition of NIADA partners and members helped push back efforts in Illinois to limit use of GPS and starter interrupt devices. NIADA has also voiced support for legislation in various states to make metal recyclers do lien searches before crushing vehicles.
As advocacy remains a top priority, NIADA remains dedicated to preparing dealers for the ever-changing market. Along with vast breakout sessions and panels on management, marketing, retail, BHPH and compliance at our June Convention, and dealer-led sessions at the BHPH Dealer Forum, NIADA is adding education opportunities in the new year. The popular certified master dealer program will offer top-of-the-industry training for retail and BHPH dealers. There will be several inperson classes debuted across the country covering topics from sales to service.
All these efforts to help dealers and move the industry forward would not be possible without our state affiliates and you, the dealer member and partners. Our strength on Capitol Hill and with improving opportunities on Main Street, comes from your membership and participation in the association. Together we are stronger and we will continue to show our might in 2025 to keep moving forward. n
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Hurricanes impact auction sales in October, but volumes still up double-digits
By Joe Overby, Senior Editor, AutoRemarketing.com
The hurricanes that hit the Southeast this autumn drove a sequential decline in wholesale auction sales last month, but October volumes were still up double-digits year-over-year, as are year-to-date auction sales through 10 months.
That’s according to the latest AuctionNet data from the National Auto Auction Association.
There were 621,507 wholesale unit sales in October, up 11.6% year-over-year when adjusted for two more selling days this year, according to the data.
That pushed the year-to-date tally to 5.73 million, which beats year-ago figures by 10%.
That said, there was a 1.6% month-overmonth decline in wholesale sales during October, NAAA said.
What’s more the, the Southeast region — where hurricanes Helene and Milton had the most impact — had a 7.7% decline in volume from September.
Adding some context, Larry Dixon, who is NAAA’s vice president of Auction Data Solutions/AuctionNet, said in the analysis: “Note that auction sales in Florida,
Georgia, and North Carolina were equal to if not slightly higher over the second half of October than they were in the lead up to Hurricane Helene at the end of September (indicating that deferred sales were made up over the back half of October).”
Breaking it down by consignor type, dealer sales rose 6.9% year-over-year in October, while commercial sales jumped 18.4%.
“October’s commercial sales growth rate was a bit higher than what was recorded in the two months prior but was well below what was observed over the first half of the year,” Dixon said. n
Note: This is part of a monthly series in which Auto Remarketing shares AuctionNet data and commentary provided by the National Auto Auction Association.
As noted by the organization, more than 260 NAAA member auctions power AuctionNet, making it the most comprehensive source of wholesale auto auction sales data in the U.S. Unless otherwise noted, auction sales figures are based on total reporting auctions, the number and composition of which may vary over time.
7 WAYS TO INCREASE PROFITABILITY as an independent car dealer in 2025
BY DAVE SUTTON, MONTWAY AUTO TRANSPORT
Independent car dealerships had to navigate a number of trends in 2024, from supply constraints to consumers reacting to new economic pressures. While the coming year is showing positive signs for used-car dealers, we’ve learned that the future is never certain.
No matter what curveballs are around the corner, there are key strategies used-car dealers should consider to consistently boost profitability.
TIP 1: UNDERSTAND WHAT SELLS IN YOUR AREA
Even though you found a great deal on a classic Corvette Stingray that you’d love to drive doesn’t mean it’s going to sell quickly. If you’re a smaller dealer, there’s no need to stock everything, just pay attention to what sells in your market.
Most used-car dealers have heard the adage: “All the money is in the buy.” If you pay too much for a car wholesale, you’re not going to be able to retail your way out of it. Remember to backout all your costs, wholesale, transportation, reconditioning, and even salesperson commissions if that applies.
What will your profit be when (if) you sell the vehicle? If you focus your efforts on what sells on your lot — and quickly — the money will follow.
To make informed decisions about inventory, take advantage of data analytics tools to discover popular models and pricing trends in your local area. Understanding which vehicles are in high demand will help you optimize your inventory and pricing for the best profit.
TIP 2: KNOW WHERE TO BUY INVENTORY
Once you know your market, you’ll need to consistently replenish your inventory. There are several strategies worth considering.
INDEPENDENT AUCTIONS:
If your consumers are looking for basic transportation in a lower price range, say between $5,000 and $15,000, your best source is independent auctions. I’ve seen the greatest success at wholesale auctions for vehicles in this price range that have lots of life in them for the next owner. Having an inventory with stepped price points will allow dealers to accommodate the budgets of a broader range of customers.
LOCAL INDIVIDUALS:
Your local market can be a gold mine for inventory. Make it very clear on your signage that you buy cars by promoting free appraisals or that you pay cash for cars. With this strategy, you have the car right in front of you to inspect, test drive, and purchase on the spot.
When buying cars in your community, give people a fair price. This will build your reputation as a trustworthy dealer, paying off in the long run with referrals and repeat business.
ONLINE MARKETPLACES:
Another place to find individuals selling cars is Facebook Marketplace, Craigslist, or other online marketplace. One advantage of this approach is no auction fees and transportation fees if the vehicle is local. Talk to other dealers, find out where they’re getting
vehicles and explore the various platforms available to dealers.
DEALER BUYS: Dealers that take in off-brand vehicles in a trade are likely to wholesale them out. As a used car manager, start talking to the other used car managers at franchised dealers to inquire about the vehicles they take in on trade but are not well suited for their lot. A Toyota dealer that took in a Chevy on trade might be willing to sell it to you at a reasonable price. If you close the deal, both dealerships save a lot of time and money that they would otherwise be spent at auction.
TIP 3: UNDERSTAND YOUR TRANSPORTATION COSTS
While dealers do have to be thoughtful about their inventories, looking at the transportation costs involved can open up new markets for sourcing.
If you’re a dealer who sticks to a 50mile radius and sends your drivers to pick up the vehicles, you probably have an idea of what that costs per unit. However, the selection in your local market may be limiting. Are your local buys aging out? Do you find yourself discounting them just to get them off your lot?
TIP 4: LEVERAGE YOUR SERVICE DRIVE TO MARKET TO YOUR OWN CUSTOMERS
More than half of dealership profits come from the service drive. If you have the space and the resources, consider investing in a service center. While you’re working on their cars, customers may start considering a second or third car for their household.
Having service capabilities keeps your customers coming back to your
store and allows you to recondition your own cars as well.
TIP 5: PROVIDE VEHICLE HISTORY
History can impact the value of a vehicle. You can use a vehicle history report when you’re wholesaling to help determine its value, or as a sales tool. By sharing vehicle history information with potential customers, you help remove their uncertainty about the integrity of the car and improve the credibility of your dealership.
There are several great tools in the market that may fit into your budget. Many independent dealers invest in such a subscription to enhance their reputation as quality used-car sellers and build a strong base of business. Providing vehicle history reports is just one way to build confidence and encourage repeat business.
TIP 6: CHANGE YOUR PRICING STRATEGY
Is your pricing strategy aligned with current market conditions? With today’s economic climate, some customers shop with a monthly payment in mind. That’s when financing becomes more important.
Once you know someone’s budget, you will have a better idea of which vehicles would hold value and be financeable based on their mileage and condition. A good used car dealer wants to show their potential customer a vehicle that they’re going to be able to afford.
Although there’s usually a buyer for every car, aging inventory is not your friend. A holding cost will hurt your profits. Discounting a vehicle may mean that you don’t make as much gross as you’d like, but ultimately that
might help build your reputation for a dealer who is willing to give a fair price. If the car is just sitting there, it’s not helping you at all. If it sits for more than 30 days, you need to move it—maybe detail it and find a new place for it on your lot.
TIP 7: MAKE OPERATIONS MORE EFFICIENT
Operational efficiency is essential for maximizing profitability. By reducing time spent on manual processes, you’ll be able to spend more time on the floor or on the phone with customers. Dealers leveraging a transportation management system can reduce the time spent ordering transportation by one-third. A comprehensive platform also enables you to manage all carriers in one place, providing full visibility and control over their inventory.
Another key component of efficiency is having reliable partners. Instead of constantly searching for new vendors with a better price and risking unreliable service, build strong relationships with reputation companies.
NAVIGATING THE FUTURE FOR INDEPENDENT CAR DEALERS
Success is rarely a straight line, and used-car dealers will continually need to evolve to remain competitive. By considering these key strategies, dealers can find new ways to boost their profitability and position themselves for success. Embrace change, stay informed, and build strong relationships with your customers, communities, and fellow dealers. n
Dave Sutton is vice president of business development & industry relations at Montway Auto Transport.
FUTURE FEDERAL REGULATIONS: What Financial Services Could Expect
BY CLIFTONLARSONALLEN LLP
Trump’s previous financial services industry policies included tax cuts and deregulation. Explore what he might do in the future.
President-elect Donald Trump has yet to announce detailed plans regarding regulations for financial services, but the industry can get insight from actions taken during his previous administration.
His previous financial services industry policies were characterized by significant tax cuts and deregulation. While they aimed to stimulate economic growth and boost business profitability, these policies also introduced challenges related to market stability and regulatory oversight. The long-term impact of these policies on the financial sector and the broader economy continues to be a subject of analysis and debate.
Explore more about Trump’s financial services industry record and potential impacts.
PRIOR FINANCIAL SERVICES
INDUSTRY POLICIES
The impact of tax cuts on the financial sector
Reduced corporate taxes during Trump’s previous term benefited many financial institutions by increasing after-tax earnings. Many banks and investment firms experienced
significant boosts in profitability, which in turn influenced stock market performance positively. Higher profits for financial firms often meant increased capital available for loans and investments, stimulating broader economic growth.
Interest rates and monetary policy
While the Federal Reserve operates independently, past preference for lower interest rates could influence the broader economic environment for financial institutions.
Deregulation efforts
Trump’s previous administration pushed toward deregulation, particularly in financial services. Key regulatory changes included rolling back several provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which were enacted in response to the 2008 financial crisis.
Capital requirements and stress testing
Trump also previously focused on modifying capital requirements and stress testing for banks. The changes were intended to reduce compliance requirements on smaller banks while maintaining the robustness of the financial system. Adjustments to the frequency and scope of stress tests were intended for banks to remain resilient without stifling operational flexibility.
Consumer Financial Protection Bureau (CFPB) changes
Under Trump, the CFPB — created to protect consumers in the financial sector — saw significant changes in leadership and approach. This included reducing enforcement actions and focusing on promoting market competition.
POTENTIAL ECONOMIC IMPACT
Economic
growth
The combination of tax cuts and deregulation is designed to spur economic growth, including business expansion and investment.
Market volatility
Deregulation in financial services can raise concerns about the possibility of increased risk-taking by financial institutions. This could lead to heightened market volatility and systemic risks if not managed properly.
Regulatory oversight
Deregulation presents some concerns about adequate regulatory oversight. While fewer regulations may promote business efficiency, it also may pose risks to financial stability and consumer protection.
HOW CLA CAN HELP WITH FINANCIAL SERVICES REGULATIONS
Changing federal regulations are always a concern for financial services and with a new administration taking over, new rules are likely. CLA’s financial services team follows regulatory changes and their impacts closely and plans to stay-ontop of upcoming announcements. Reach out for assistance on staying informed and in compliance. n
CliftonLarsonAllen is a Minnesota LLP, with more than 130 locations across the United States. This article contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.
PRESS ROOM
CFPB Takes Action Against Wrongful Auto Repossessions and Loan Servicing Breakdowns
Consumers given inaccurate loan disclosures and charged for add-on products without consent
In early October, the Consumer Financial Protection Bureau (CFPB) published a new edition of Supervisory Highlights describing the agency’s supervisory findings related to illegal practices in auto finance, including lenders repossessing consumers’ cars after the borrower made timely payments or received loan extensions. Other illegal conduct detailed in the report includes lenders providing inaccurate disclosures, misapplying loan payments, and putting incorrect information on consumers’ credit reports. The report also highlights significant problems with add-on products that are packaged at the front-end of the auto loan, increasing the loan costs, and then not properly refunded at the back end upon early loan termination, when the consumer can no longer use the products.
“Borrowing to buy a vehicle is one of the largest sources of household debt for American families, and many deal with unnecessary costs and challenges paying for their car,” said CFPB Director Rohit Chopra. “The CFPB will take action against auto-finance companies that charge fees for nonexistent services,
or repossess cars after borrowers make payments.”
CONSUMERS ENCOUNTERED DIFFICULTIES WITH ADD-ON PRODUCTS
Car purchasers are frequently offered add-on products, such as extended warranties or “guaranteed asset protection” insurance, and sellers charge the borrower an upfront lump sum cost at the loan origination that is bundled into the total loan cost. If a borrower pays off the loan balance early, or otherwise terminates the loan, they are generally eligible for a prorated refund of the prepaid premiums for the unused portion of the loan term.
CFPB examiners found subprime auto finance companies charging consumers for optional add-on products that the consumers did not agree to purchase. In other instances, examiners found that, following early termination of a loan, servicers failed to provide refunds or credits to consumers for the unused portion of the product. Examiners also found that servicers required borrowers
to make two separate, in-person visits to a dealership to cancel an unwanted addon product, which prevented consumers from exercising their cancellation rights.
CFPB examiners directed the autofinance companies to stop this illegal conduct and make it clear to consumers that add-on products are optional. The companies also were directed to update and revise language in contracts with their service providers where applicable.
LENDERS IMPROPERLY APPLIED PAYMENTS AND WRONGLY REPOSSESSED AUTOMOBILES
The exams found servicers wrongfully repossessed vehicles due to service providers failing to cancel orders to repossess vehicles when consumers had made payments or had obtained a loan deferment, loan modification, or extensions that should have prevented repossessions. CFPB examiners also found servicers repossessed vehicles without having a valid recorded lien to the vehicle.
(Continued on next page)
(Continued from previous page) Some servicers were also misallocating borrowers’ auto loan payments, such as applying payments to late fees first instead of applying to the loan principal and interest, which resulted in borrowers having to pay erroneous late fees. As a result, CFPB examiners directed servicers to fully refund all accounts that incurred late fees due to payments being applied in a different order than that disclosed on the servicers’ website.
The CFPB barred servicers from repossessing vehicles and failing to promptly return vehicles when consumers made timely payments or payment arrangements or have obtained a loan modification sufficient to prevent repossessions. Servicers also have put in place policies and procedures to ensure they recorded liens for all vehicles and repossessed vehicles only when they had recorded a lien.
LENDERS GAVE CONSUMERS INACCURATE DISCLOSURES AND PLACED INACCURATE INFORMATION ON BORROWERS’ CREDIT REPORTS
CFPB examiners found lenders misleading borrowers about the chance to qualify for a low interest rate, when in reality the lowest rate offered was more than double the advertised rate. Servicers were directed to stop using misleading marketing materials designed to baitand-switch consumers on interest rates.
Examiners also found that lenders were knowingly placing inaccurate loan information on thousands of consumers’ credit reports. This included incorrect amounts past due for charged-off accounts, inaccurate dates of when borrowers fell behind on payments, and inaccurate actual payment amounts following a payoff or settlement. In some cases, lenders were relying on inappropriate computer systems that were not designed to report information about auto loans. In response to the findings, lenders are conducting reviews and correcting the furnished information for all affected consumers.
The CFPB has previously taken action against companies for illegal practices in auto finance. Toyota Motor Credit paid $60 million for withholding refunds and tarnishing borrower credit reports. The CFPB also took action again Wells Fargo for illegally assessing fees and interest charges on auto and mortgage loans.
Read this edition of Supervisory Highlights.
Consumers can submit complaints about financial products and services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).
Employees who believe their company has violated federal consumer financial protection laws are encouraged to send information about what they know to whistleblower@cfpb.gov. To learn more about reporting potential industry misconduct, visit the CFPB’s website. n
The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive. For more information, visit www.consumerfinance.gov.
Filling
Roundtable tips provide strategies for dealers
By NIADA
The centerpiece of the education at the BHPH Dealer Forum was the dealer-led roundtables. Led by some of the nation’s top dealers, Jack Carter, Turn & Burn Motors, Conyers, Georgia; Nick Markosian, Markosian Auto, Taylorsville, Utah; Alan Lindsey, iGo Group, Columbia, Kentucky; Ben Libby, Highway Motors, Chico, California; Rich Barnard, Tio Chuy’s Auto Sales, Oklahoma City, Oklahoma; Russell Moore, Top Notch Used Cars, Conroe, Texas; and Steve Jordan, AutoVida, Lancaster, Texas; the roundtables gave dealers the opportunity to exchange ideas on sales, collections, marketing, recruiting employees, reconditioning vehicles and other hot industry topics.
“I enjoyed sitting and discussing business with everyone. You try to pick up one thing here and there to help you,” said Jefferson Manvone of Avenue Motors in Moncks Corner,
South Carolina. “The whole reason of being here is to help you become a more profitable business. It was a great experience.”
Each of the roundtables presented their best ideas from the dealer-led roundtables during the closing session. Megan Jones of Ace Auto Sales in Fyffe, Alabama, explained how to sign up with insurance providers to receive digital notices of customers canceling coverage. Lecoeur Charles of Mission Auto Sales in Miami, Florida, shared his experience of finding employees on carcareers.com. Ryan Jones of Ace Auto Sales in Fyffe, Alabama, presented his text prompts to increase responses from customers who are behind on payments. Michael Maguire of Sansone Jr’s Windsor in East Windsor, New Jersey, described an employee incentive program to purchase vehicles for inventory. Ben Goodman of Byrider explained how to use Chat GPT and AI for developing role playing scripts for employee training. Blake Ingram of Auto City in Dallas, Texas, told dealers to analyze their data to recognize problem sellers and vehicles along with the good ones. Matt Nibarger of Prime Auto USA in Jackson, Tennessee, informed dealers on how he’s developed relationships with a local trade school where he’s sending problem vehicles for repairs and subsequent training for his service staff.
The audience selected Meg Jones and Ingram as the providers of the best ideas. The two will receive registrations and hotel rooms for the 2025 NIADA Convention and Expo at the Fontainebleau Las Vegas.
“These are all good ideas and probably if implemented will pay for this trip a million times,” said Luke Godwin of Godwin Motors in Columbia, South Carolina, who hosted the final session with his Independent Dealer podcast partner Jeff Watson of 4 Seasons Auto in St. George, Utah. “The reason we go to these conventions, it’s about taking something home that matters and moves the needle. These things don’t cost you. If you do it right, these things will pay 20 times over.” n
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GET ON BOARD AND SEE THE DIFFERENCE!
By joining the WSIADA, you will get to experience a dynamic network that enhances your visibility, amplifies your voice, and establishes your credibility. You also will get to benefit from discounts on products and supplies for your dealership while gaining access to invaluable continuing education opportunities that propel your business's growth.
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2022
Lessons of Leadership During a Crisis
BY JOE ALLEN, IGNITE CONSULTING PARTNERS
Like everyone else, I’m watching the horrible news coming out of North Carolina with a heavy heart.
The devastation and suffering will impact that area and those people enduring Hurricane Helene’s aftermath for years to come. These catastrophic events have reminded me of a wonderful lesson in leadership that I witnessed closer to home many years ago, and I want to take this opportunity to share it with you.
At the time, I lived in Arlington, Texas, and was just getting my feet under me as a young lawyer representing used-car dealers, many of which were in buy-here, pay-here. A horrible storm blew through town, one of those dramatic Texas out of nowhere storms that brings crazy winds, large amounts of rain and hail, and then quickly leaves. There were lots of knocked down trees, flooding, destroyed and damaged roofs, and lots of people were without electricity.
This was the late 1990s, so the public wasn’t quite so technology dependent as it is today,
not everyone even owned a cell phone and people still had home phone lines back then, but the effects were everywhere.
Once a few days passed and people went back to work, I happened to be at a client’s car lot. We had a case that was set for trial in Justice of the Peace Court that had to be rescheduled, so I had just stopped by to let the owner know and see how his place was impacted by the storm. When I got there, I walked right into the middle of a team meeting. Not that I had much of a choice, the building wasn’t much larger than a single wide trailer, so if you took two steps in the door you were in the middle of things.
I could immediately tell this was a serious meeting, I could see the frustration on the face of this usually upbeat owner.
He stood in the center of the room, apologizing for not teaching his personnel well enough. He said that as he listened to them speaking on the phone with customers, he felt that they didn’t share his values, which was a reflection on him. He shared that their calls sounded like the numbers on the collection reports were the most important thing to them, and he always wanted his team to remember that people are on the other end of those calls, and right now lots of them have serious problems.
He continued on, saying that the storm had affected everyone in the room in one way or another. The business was closed for a few days, some people lost electricity, some
cars had hail damage, and one manager had opened her home to some relatives whose roof had been damaged. He said that by comparison, they were all lucky and that many people, including some of their customers, had it worse.
He asked everyone to remember this when they got back on the phones with people, and that instead of making collections calls, he wanted his people to take an interest in their customers and how they’d weathered the storm. He gave a short lesson in talking with insurance companies and instructed his personnel to help customers resolve insurance claims. He told them to be caring and to offer guidance even if it has nothing to do with their vehicle.
He shared that his store had been in business for decades and people had come to depend on them, and there was a lot more to the business than selling cars and collecting money. He said he wasn’t naive, some people would use the storm as an excuse not to make payments, but he’d rather give everyone the benefit of the doubt than add to the problems of someone that was already suffering.
Over the coming days, he led by example. He personally called customers to check on them, even bringing some groceries to a lady whose car was blocked in the driveway by a fallen tree, along with a chainsaw to remove the debris.
Something tells me that he earned a loyal customer for life.
I was fortunate to stumble into that meeting on that day. To a young lawyer that didn’t know much of anything about business, it made a big impression on me.
I like to think that in the years since, I’ve emulated that important, beautiful lesson that people come first and that the actions of one person can have a tremendous impact on so many others. I hope that by sharing this, some of you will find inspiration and meaning during this difficult time. n
WSIADA READ & RESPOND QUIZ
JANUARY 2025
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The WSIADA READ AND RESPOND QUIZ offers one hour of continuing education credit toward the dealership’s required annual renewal. Payment options are available for members and non-members also 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. 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.
q I have read and understand the disclaimer above.
1
What is the date for the 2025 NIADA Convention and Expo?
A) July 23-26, 2025
B) June 23-26, 2025
C) June 3-6, 2025
D) August 16-19, 2025
2
What was one focus of Trump’s previous financial services deregulation efforts?
A) Strengthening the Dodd-Frank Act
B) Reducing capital requirements for smaller banks
C) Increasing enforcement actions by the CFPB
D) Raising corporate tax rates for financial institutions
3
What action did the CFPB require from servicers who misapplied borrower payments?
A) Increase late fees to cover operational costs.
B) Stop charging late fees on all accounts.
C) Refund accounts that incurred fees due to misallocated payments.
D) Offer discounts on future loans to affected borrowers.
4
What significant step did NIADA take in 2024 to enhance its advocacy efforts for independent automobile dealers?
A) Launched a new vehicle recycling program
B) Partnered with the lobbying firm Hance Scarborough
C) Reduced membership fees for dealers
D) Introduced a nationwide advertising campaign
5
What was the primary reason for the sequential decline in wholesale auction sales in October, as reported by the National Auto Auction Association (NAAA)?
A) A decrease in commercial sales
B) Hurricanes impacting the Southeast region
C) Fewer selling days in October compared to September
D) A decline in dealer participation
6
What was one issue identified by the CFPB with add-on products in auto finance?
A) Borrowers were offered prorated refunds for unused portions of the products.
B) Lenders failed to provide refunds or credits after early loan termination.
C) Add-on products were always optional for borrowers.
D) Dealers bundled addon product costs into separate loans.
7
What is one recommended strategy for sourcing inventory in the local market?
A) Buying cars exclusively from franchised dealerships
B) Promoting free appraisals and cash offers for cars
C) Importing vehicles from international markets
D) Relying solely on online marketplaces
8
What is a potential downside of deregulation in the financial services sector, as noted in the article?
A) Reduced profitability for financial institutions
B) Decreased market competition
C) Increased risk-taking and market volatility
D) Higher tax rates on investment firms
9 Why is providing vehicle history reports to customers beneficial for independent car dealers?
A) It helps to reduce transportation costs.
B) It eliminates the need for reconditioning vehicles.
C) It builds customer confidence and dealer credibility.
D) It speeds up the aging process of inventory.
10
What was one idea shared during the BHPH Dealer Forum roundtables?
A) Using carcareers.com to find employees.
B) Offering free vehicle maintenance to attract customers.
C) Outsourcing vehicle reconditioning to thirdparty vendors.
D) Providing free insurance to customers with overdue payments.
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