the Front Row - November / December 2021

the

FRONT ROW The official publication of the Washington State Independent Auto Dealers Association

November/December 2021

EDUCATION FAIRS PACK THE HOUSE

Creating Repeat Customers for Pre-Owned Vehicles What do Lenders Look for in a Dealership?

FTC Warns Against Fake Reviews

PLUS

10 Low-Cost Tips to Prevent Costly Losses this Winter at Your Dealership

MEETING YOU

WHERE YOU ARE

magauctions.com 2 | THE FRONT ROW | WSIADA.COM Nov/Dec 2021

@mcconkeyauctiongroup

the

FRONT ROW

The official magazine of the

WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION WSIADA.COM 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 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 Open Position – Vancouver vancouver@wsiada.com Open Position – Yakima yakima@wsiada.com Open Position – Tri-Cities tri-cities@wsiada.com Open Position – 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 WSIADA STAFF Brian Dansel, Executive Director Rick Olson, Education Manager Mila Froman, Membership Manager PRODUCTION EDITOR Professional Mojo Copyright 2021 WSIADA

CONTENTS NOVEMBER/DECEMBER 2021

2 | President’s Message: Full Steam Ahead 2 | Events Calendar 3 | WSIADA Title Workshop: Register today!

4 | 10 Low-Cost Tips to Prevent Costly Losses this Winter at Your Dealership 6 | Executive Director’s Message: Lookout - Changes ahead!

6 | Advertiser Index 7 | FTC Warns Against Fake Reviews 8 | Education Fair Highlights 11 | What do Lenders Look for in a Dealership?

12 | Creating Repeat Customers for Pre-Owned Vehicles

14 | Correcting the Chip Shortage Will Take Time 17 | How Automakers and Dealers are Weathering a Topsy Turvey Market 18 | Seven Reasons to Join Your State’s Independent Automobile Dealers Association 19 | Vehicle Loans Are Risky Business 21 | Service Provider Directory 22 | Read and Respond 24 | Membership Application 25 | Auction Listings 25 | MAC Ruddell Scholarship: We’re accepting applications!

THE FRONT ROW | WSIADA.COM Nov/Dec 2021 | 1

u PRESIDENT’S MESSAGE

Full Steam Ahead

BY RANDY FLETCHER, PRESIDENT Greetings to all my fellow independent auto dealers, This year has had its ups and downs for sure. On December 31, 2020, we lost Todd Elliot, our talented Executive Director of five years. Our WSIADA staff stepped up to take over his position, as well as their own. Working as a team brought us through those five months without an executive director.

I would like to personally thank everyone who had a part making those months work! You all are appreciated.

I would also like to thank the board members for being diligent during the vetting process to place the perfect candidate, our new Executive Director, Brian Dansel. Brian has been instrumental in his short time with us in creating a great working atmosphere in the office as well as membership body. Please take the time to reach out to Brian and introduce yourself and share with him any concerns or ideas he can address on us dealer’s behalf.

EVENTS CALENDAR TITLE WORKSHOPS Thursday, December 9 9:00am | Virtual event

CHAPTER MEETINGS Coming in early Spring 2022

2022 ANNUAL CONVENTION June 13 - 15, 2022 Lake Chelan, WA

The WSIADA will be hosting the 2022 Annual Convention in Lake Chelan Washington over three days. Years past, the Association held one-day events which limited the times and options for dealerships to benefit from their time spent at the event.

Our membership numbers have been slowly increasing under Brian’s leadership. The Western Washington Educational Fair (pictured above) was a great success with 150+ people in attendance. The venue worked well and the experts on various subject gave us members valuable information.

In addition to the fair, the association is opening up the chapters in different areas. This is important because it strengthens our numbers and, at the same time, gives WSIADA members a venue to get the required continued hours in. Please support your local chapters and, if you are interested, please volunteer to head one up.

It’s my hope that you and your families have a safe and prosperous holiday season and a happy new year! n 2 | THE FRONT ROW | WSIADA.COM Nov/Dec 2021

The Annual Convention will include several presentations by speakers in the industry as well as the Department of Revenue and other state agencies.

In addition, we will schedule breakout meetings and training courses by the WSIADA over several days.

FOR MORE, VISIT wsiada.com/Annual-Convention

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11/5/2020 10:26:46 AM

WSIADA TITLE WORKSHOP $125 MEMBER // $175 NONMEMBER

This Workshop is designed to give dealers an in-depth understanding of the business practices, state/federal requirements, and forms needed to complete a transaction.

This course offers 3 hours toward Continuing Education requirements and allows attendees to ask the instructor individual and dealership-specific questions. Any employee of a dealership may take this course. Continuing Education hours are issued to the dealership, not to individuals attending.

The curriculum for this workshop includes, but is not limited to: • How to transfer a title • How to detect and avoid fraud • What paperwork is required to complete wholesale transactions, consignments & purchases from private parties • Common dealer errors • E-Permit processing • Tips on how to avoid costly penalties by being organized, efficient, and implement workable procedures You may register and pay online. You’ll receive an email confirmation after your registration is complete. Registration is available until 2:00PM the day before the class. In-person registrations on the day of the class are not accepted.

REGISTER AT WSIADA.COM/EDUCATION/TITLE-WORKSHOP THE FRONT ROW | WSIADA.COM Nov/Dec 2021 | 3

10 Low-Cost Tips to Prevent Costly Losses this Winter at Your Dealership

BY TODD SHEPARD, FOUNDER OF SHEPARD & SHEPARD INSURANCE SOLUTIONS As the year winds down the triple-digit days of summer have been replaced by cooler temperatures, rain, and eventually snow and ice. From a sales point of view the winter selling season can mean greater demand for all-wheel or four-wheel drive vehicles, sport utility vehicles, and pickups.

Shorter, colder days also tend to weed out tire-kickers often leaving serious buyers.

before it disappears from the shelf. The supply chain has run short on everything from toilet paper to new car computer chips. I guarantee by the time that first snowflake falls consumers will panic and grab up every bag available. Clearing your parking lot and sidewalks will help make it safer, easier, and more attractive for your customers to shop.

The colder season also brings unique challenges by way of loss prevention. A good rule of thumb in preparing your business for fall and winter is to focus on your property, your people, and your profits!

TIP #4 - After you get done stocking up on the ice melt, make some calls to coordinate a snowplow service before the snow falls. Landscapers and snow removal companies keep a list of clients who contact them before the weather hits.

Get yourself on the short list now so you can focus on selling rather than looking for someone to fit you in.

The definition of prevention is the action of stopping something from happening before it happens. Here are 10 simple actions you can take now to greatly increase your chances of a loss-free fall and winter selling season.

TIP #1 - Establish a foul weather test drive route with right hand-only turns in a low traffic area. An established, safe route lowers the exposure to your vehicles and helps put your prospects at ease. This is especially important during heavy rains or wintery conditions.

TIP #2 - Prevent auto theft when warming up lot cars. Leaving a car to warm up unattended is one of the most common thefts reported this time of year. Best practice is to lock the door and keep the keys with you if you must leave a running vehicle unattended. It’s never a good idea to trust your prospect to watch a running car unless you have secured proof positive identification. That friendly, eager shopper may be waiting for an opportunity to steal your car right from under your nose when you step in to grab a demo plate.

TIP #3 - Prevent slip and fall losses by stocking up on ice melt early in the season 4 | THE FRONT ROW | WSIADA.COM Nov/Dec 2021

TIP #5 - Take advantage of mild early fall weather to assess exposed pipes and vents in your building. Add caulking and insulation at all exterior wall locations, cracks, and repair damaged siding and window frames. Consider adding a wireless sensor to monitor the main water line.

TIP #6 - Consider purchasing a back-up power supply/generator large enough to run a space heater, emergency lighting, and your computers. Generators are plentiful and affordable early in the fall season in the box stores. You can even find a decent used one online. Once the power goes out its probably too late to go shopping. The ability to continue operations during an unexpected power outage can make all the difference. One small sale will easily offset the investment.

TIP #7 - Get your roof inspected before the snow falls. An inspection usually costs only a couple hundred dollars and can prevent costly, dangerous losses to property and injury. Many roofers offer a snow removal service for your roof in the

event of substantial snowfall. The service is quite affordable and can prevent expensive damage caused by ice dams or collapse.

TIP #8 - Make sure you have winter windshield washer fluid and check the anti-freeze levels in your used vehicles. A clear windshield reduces the chance of an accident and proper anti-freeze levels will prevent a costly break-down. Also check the fluid levels in your automotive batteries.

Having to jump-start a car before a test drive will cost your gross or even kill a deal.

TIP #9 - Awareness. One of the best strategies you can implement to prevent losses is to simply set the expectation for your staff and your customers verbally and with proper signage. Offer a gentle reminder that road conditions can be slick and dangerous before anyone gets behind the wheel. Encourage them to use caution, give plenty of space to brake, pay attention to other drivers, and turn off cell phones when operating your vehicles. Nobody will be offended when you offer safety suggestions. Add a bright colored caution sign or safety cones near steps or other slip and fall exposures.

TIP #10 - Make sure your dealer insurance policy is up to date and active. Ask your agent to ensure you have coverage for liability losses due to slips and falls, property damage, and damage you might cause to your customers autos as well as damage to or theft of your lot vehicles. Be aware that these are not automatic coverages with a dealer policy, they are optional.

Remember: An ounce of prevention is worth a pound of cure. n Todd Shepard is the founder of Shepard & Shepard Insurance Solutions and a regular contributor to the Front Row. For more information and an affordable dealer insurance quote visit shepquote.com.

THE FRONT ROW | WSIADA.COM Nov/Dec 2021 | 5

u EXECUTIVE DIRECTOR’S MESSAGE

Lookout: Changes ahead!

BY BRIAN DANSEL, EXECUTIVE DIRECTOR

It is hard to believe that I have already been at WSIADA for six months, but that’s only because time flies when you are having fun!

For this edition, I wanted to talk about some changes you will see in 2022. The first change is this magazine. Beginning in January 2022, we will be sending out magazines monthly rather than bimonthly. This will allow us to stay in better communication with you, and now we will be able to do so in a timely manner. In rethinking our magazine, the board and I also wanted to be sure to pass along any relevant information. Advertisements are a great way to sell magazine space, but we

thought that an added benefit might be to reach out to our Corporate Members and ask them to author an article where they talk about the trends they are seeing. We feel by reaching out to our partners, we can create a magazine with entertaining content as well as timely information.

because of its’ convenience and proximity to DAA Northwest. This will allow Spokane area (and Eastern WA in general) to go to the auction, and then zip over to us for all of your needs and services----while saving completely on shipping costs! Stay tuned for location information and an opening date!

Being able to stay up on timely information will be incredibly important moving forward. If you have seen me at a local chapter meeting or at one of the education fairs this year, it is likely you heard me talk about legislative issues. We need to be able to hear your concerns so we can best put together a strategy with our lobbyist in Olympia. My vision is one where we are keeping you updated in real time, as bills move through the legislature, and where you can vote or be surveyed through our email system. If you get an email from me, please open it---I assure you it will be worthwhile information.

Finally, as this will be the last edition before the new year, all of us here at WSIADA want to wish you and yours a very happy holiday season. As always, it is an honor to serve you and the industry, and I see great opportunities in the coming weeks, months and years. n

The other exciting news WSIADA has is that we are expanding our reach into Eastern Washington. We are in the process of setting up a retail store with meeting room in Airway Heights. We chose this location

ADVERTISER INDEX Please thank these companies for their generous support of our bimonthly publication and mention to them you saw them here!

7 AutoZone IFC DAA Northwest 3 LOBEL Financial BC Manheim 5 Shepard & Shepard

TARGET YOUR AD DOLLARS WSIADA wishes you all the joys of the season.

May the holiday spirit be with you and your family throughout the New Year.

6 | THE FRONT ROW | WSIADA.COM Nov/Dec 2021

TO ADVERTISE WITH WSIADA and receive a copy of the media kit for THE FRONT ROW magazine, call (253) 735-0276.

FTC Warns Against Fake Reviews

BY USED CAR NEWS The Federal Trade Commission is blanketing industry with a clear message that, if they use endorsements to deceive consumers, the FTC will be ready to hold them responsible with every tool at its disposal.

will pay a price if they engage in these deceptive practices.”

The rise of social media has blurred the line between authentic content and advertising, leading to an explosion in deceptive endorsements across the marketplace. Fake online reviews and other deceptive endorsements often tout products throughout the online world. Consequently, the FTC is now using its Penalty Offense Authority to remind advertisers of the law and deter them from breaking it. By sending a Notice of Penalty Offenses to more than 700 companies, the agency is placing them on notice they could incur significant civil penalties – up to $43,792 per violation – if they use endorsements in ways that run counter to prior FTC administrative cases.

The Notice of Penalty Offenses allows the agency to seek civil penalties against a company that engages in conduct that it knows has been found unlawful in a previous FTC administrative order, other than a consent order. The notice sent to the companies outlines several practices that the FTC determined to be unfair or deceptive in prior administrative cases. These include but are not limited to falsely claiming an endorsement by a third party; misrepresenting whether an endorser is an actual, current, or recent user; using an endorsement to make deceptive performance claims; failing to disclose an unexpected material connection with an endorser; and misrepresenting that the experience of endorsers represents consumers’ typical or ordinary experience.

“Fake reviews and other forms of deceptive endorsements cheat consumers and undercut honest businesses,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “Advertisers

Companies receiving the notice represent an array of large companies, top advertisers, leading retailers, top consumer product companies, and major advertising agencies. n

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EDUCATION FAIR HIGHLIGHTS: EAST

Welcome back!

The WSIADA was pleased when the announcement of the Pandemic restrictions for group gatherings was being lifted officially in June 2021 to allow us to provide the Education Fair in-person again. The previous year, we were unable to meet and had to provide a Zoom-format version of the fair over a two-day period.

Immediately after the announcement by the State of Washington, we began the planning process for the Spokane and Seattle fairs that our staff generally has a year to prepare for.

Several dealership staff members had reached out to our office as the planning process began in the hopes of seeing the Education Fair in-person again. They were more than excited when news of the event was released.

Many of our speakers attended both East and West locations including Department of Revenue, Shepard & Shepard Business Insurance, Washington Retail Association, 321 Ignition, and Office of the Washington State Attorney General.

EAST: AUGUST 17

Doubletree Hilton Convention Center in Spokane was ready to return to some normalcy as we returned to the location. The Grand ballroom and Salon IV rooms were adjusted for the COVID-19 requirements for personal spacing to ensure our attendees were not too close to one another.

Registered attendees at check-in at both events received a WSIADA backpack with a mini-portfolio inside (see below)!

As a token of WSIADA’s appreciation, Education Fair attendees received some great complimentary gear this year!

8 | THE FRONT ROW | WSIADA.COM Nov/Dec 2021

WSIADA Executive Director Brian Dansel began the day with two local political speakers: Josh Kerns, Spokane County Commissioner, and Michael Cathcart, Spokane City Councilman. They spoke individually first to give the attendees their backgrounds in local politics and then together for the Q&A portion of their presentation.

Marc Worthy of the Washington State Attorney General’s Office presented via Zoom, as he was not able to be in Spokane

EDUCATION FAIR HIGHLIGHTS: WEST in person. In previous years, Marc was not available to attend the Education Fair Spokane due to scheduling.

Washington Retail Association’s Terry Hopsecger finished the morning presentation on the benefits of the RETRO program for members of the WSIADA regarding Workers Compensation and related Labor & Industries training.

For lunch, the hotel provided a Mexican fiesta for everyone with chicken, beef, an optional salad, and a Cinnamon puff dessert while dealers visited the few Vendors available for the Vendor’s Fair.

Unfortunately, several of the scheduled Vendors could not attend at the last minute.

In the afternoon, we had the bulk of our speakers with Todd Shepard (Shepard & Shepard), Ken Krous (Department of Revenue) and Lyamen Savy (321 Ignition).

Rick Olson, from WSIADA, presented on behalf of the Department of Licensing, who was not able to send a representative this year due to COVID-19.

Brian finished the event with a rousing speech, thanking our Spokane area dealers for attending, before offering the reception to anyone who was not leaving right away.

This year we had 47 attendees in total for this event. Previously in 2019 we had 41 total in attendance.

WEST: SEPT. 23

In the past, the West event was scheduled at the LeMay’s Car Museum in Tacoma WA. This year, with the short notice, the

Association chose to have the event at the Doubletree Hilton in Sea-tac. The benefit was bringing the Vendor’s Fair and lunch inside instead of using an outdoor tent that was used at LeMay’s Car Museum.

With a larger venue, the Association was able to accommodate over 115 individuals to attend with spacing available for COVID-19 requirements. A Continental breakfast was available while individuals checked into the event.

Brian Dansel opened the event with introductions of himself and the current WSIADA Board of Directors before yielding the floor to Washington State Senator, Doug Ericksen. Senator Ericksen spoke on topics of the 2021 Legislature, COVID-19 restrictions and fielded several questions and answers from individuals.

321 Ignition’s Lyamen Savy presented the subject of mobile device marketing for dealerships in the 21st century, as she had for the East Fair a month earlier.

Dave Blake from MAG Auctions Seattle spoke about the changes in the auction world, the adjustments from 2020 and COVID-19 but also answered several questions from dealers on topics regarding transportation and services by MAG Auctions.

During the lunch break, the attendees enjoyed the catered hot lunch that was available before walking through the Vendor’s Fair with the 12 vendor booths, including WSIADA’s own booth, to answer

questions and make connections for their businesses.

“It went really well, I thought. We talked with a lot of people, and they seemed really excited about our new Lot Vision and that they can do retail recon at our facility. We had at minimum two dealers attend the sale the week after the fair that had been previously absent.” - Cindy Scothorne, Manheim Seattle.

Continued on next page

Fair West Raffle Winners Seahawks Helmet (Mag Auctions) Integrity Auto Sales LLC

Yeti Cooler with Drinks and Snacks (Kinetic Advantage) Verdant Auto Sales LLC Google Nest (AutoZone) Erickson Tank & Pump Manheim Prizes Quality Auto Center LLC and Car Chasers LLC ACV Cards ($950 value each) Verdant Auto Sales LLC and Rock Auto Sales LLC Case of Odometer Disclosure Forms (WSIADA) - Auto Outlet of Tacoma Home of The Car Guys LED Hi-Res Sign (WSIADA) Walker Motor Works

THE FRONT ROW | WSIADA.COM Nov/Dec 2021 | 9

EDUCATION FAIR HIGHLIGHTS

Continued from previous page After the Vendor’s fair, the first speaker of the afternoon was Todd Shepard, Shepard & Shepard Insurance, on the topic of Cyber Liability Insurance and the fall out of not being prepared in case of ransomware attacks on a dealership, which can be very costly to recover from if not prepared.

10 | THE FRONT ROW | WSIADA.COM Nov/Dec 2021

Throughout the afternoon, Brian Dansel and Mila Froman provided some comedy with raffle items donated by many of the vendors. Bradly Brown of Integrity Auto Sales LLC won a Seattle Seahawks signed Kam Chancellor helmet from MAG Auctions as the last item of the raffles.

The rest of the afternoon was dedicated to the Washington State agencies: Department

of Revenue, Washington Attorney General’s office and Department of Licensing with presentations from the East Fair.

At the end of the event, Brian Dansel thanked all who attended, attendee and vendor alike, and offered a reception with appetizers and drinks for attendees wanting to relax from the event before heading out. n

FEATURE

What do Lenders Look for in a Dealership?

BY GWC WARRANTY WITH UCN Partnering with the right lender can make a big difference to your dealership’s bottom line. A professional lender can provide you with better terms, faster funding, and optimize profitability on every sale.

If you’re considering a new lender partnership, be aware that, like any relationship, it’s a two-way street. While you may be focused on your own criteria for choosing a lender, a lender also has standards when they are looking for a dealership to partner with.

Knowing what they’re looking for in advance can help you put your best foot forward and increase the chance that your ideal lender will select you as a partner.

REPUTATION Professional lenders with quality reputations want to do business with similar companies. Most representatives will conduct interviews and research your dealership before signing you as a partner.

This may include looking at your online reviews and checking to see if you are members of your state dealer association and the National Independent Auto Dealers Association (NIADA).

Although professional memberships don’t make or break whether or not you’ll be selected, in the words of Doug Marohn from Nicholas Financial, “If they take the time to be part of their state and national association, they tend to be more in tune with regulations and more cognizant of doing business the right way.”

Integrity is paramount. Most lenders have no problem financing customers if they have the right information, but when they’re trying to muddle through erroneous or fraudulent information, they are going

to have difficulties and will be reluctant to do business with you.

This is a small industry, so expect lenders to ask other lenders and vendors what their experience has been working with your dealership. They’ll probably also check with your local auction representatives to see if you are delinquent or floating.

Lenders will also review customer complaints. The more customer complaints that pile up, the more a lender might back away from doing business with you.

The good news is that when your reputation and integrity are positive and you have few customer complaints, lenders will be eager to become a resource for you. They’ll be more aggressive about callbacks and offer you bigger advances and longer terms.

ORGANIZATION Most lenders prefer working with dealerships that have a certain level of structural organization and are involved with sales strategy and execution. Are you willing to be an active partner in a relationship? Lenders want someone they can have honest conversations with, not just on day-to-day loans but about performance and expectations.

Navid Arefi from Exeter Finance puts it this way: “How tight do they run their business? If they’re running their independent store like a franchise store then I might be willing to overlook it if they don’t check every box. If they have pride of ownership and the internal controls to back that up, that’s the #1 thing I want to see.”

Taking steps to prevent fraud in your dealership also goes a long way to building lender confidence.

INVENTORY The inventory on your lot speaks to the standards your dealership upholds.

Lenders want to see that you’re both stocking the right kind of inventory for your market and that you’re taking pride in the inventory that you do stock.

Quality of inventory matters, but it’s not necessary to have two-year-old vehicles with fewer than 30,000 miles. You can have 10-year-old units with 150,000 miles, but lenders want to see if these vehicles have been properly reconditioned. Expect them to check CarFax also to make sure you’re not putting complete bombs out on the lot.

PERFORMANCE Some lenders might have minimum selling requirements, such as 20 vehicles per month. Others may want to review your financials to ensure that you’re maintaining profitability.

The most likely reason a lender will terminate a relationship with you is because of performance.

If you submit hundreds of applications with no deals funded or you underperform or submit fraudulent deals, don’t expect a lender to stick with you for long.

If you’re thinking about partnering with a new lender, be prepared for a thorough review. If you have a good reputation, run your organization in a professional manner, take pride in your inventory, and are profitable, you’ll have no problems finding a lender that can help you take your dealership to the next level. n

THE FRONT ROW | WSIADA.COM Nov/Dec 2021 | 11

Creating Repeat Customers

for

Pre-Owned Vehicles

BY JAMES VIRGOE, GWC WARRANTY CORPORATION

12 | THE FRONT ROW | WSIADA.COM Nov/Dec 2021

Building customer loyalty can be a challenge for dealers. When customers focus primarily on inventory, the ability to differentiate your dealership from a competitive dealership is limited. One way to stay in touch with customers is by helping them find F&I products that meet their needs and keep their investment protected. Providing peace of mind leads to a better ownership experience and increases the chance that customers will return to your dealership.

out. If you haven’t paid for the service contract yet, they might not honor the terms, which can cause a big problem with the customer who believes they are covered.

Vehicle Service Contracts

Often a customer will hear “it’s covered,” and then when something breaks and it’s not covered, they get upset. With late-model vehicles, electronics protection has become increasingly important so make sure to also present a cost/risk analysis for these components.

Most consumers understand that purchasing a pre-owned vehicle comes with a higher risk of potential problems. Therefore, it’s easy for them to understand the benefits of a VSC. As a dealer, stress how tying the price of a VSC into the purchase price of the vehicle won’t affect the consumer’s monthly budget or cause undue stress in the event of a breakdown.

Additional value for customers comes with the peace of mind that a VSC offers. In the event a customer is stranded, offer a plan with a 24-hour number they can call for roadside assistance. Towing benefits, rental car coverage, or rideshare reimbursement are also popular options.

To ensure customers get their service claims taken care of in a timely manner, choose a provider that pays generous hourly labor rates to service centers.

Many traditional service contracts pay flat rates of $75 or $80/hour to technicians, while others pay new-car franchise rates as high as $130/hour or more.

Also, look for a provider that offers day-one, mile-one coverage. It doesn’t happen often, but occasionally customers will drive off the lot and the vehicle breaks down within a few hours or miles of driving. Many F&I product providers delay the start of coverage until 100 miles or 30 days

When selling VSCs, it’s important to set the correct expectations so customers understand exactly what they’re getting. This is especially critical when distinguishing between what’s covered in a basic contract versus an exclusionary, high-end contract.

A best practice is to present the basic coverage first and then move up to the exclusionary coverage rather than vice versa. That way, you can focus on what the customer is getting with exclusionary that’s not in the initial coverage.

When selling any F&I product, it’s important to present information visually. Graphics and brochures will help, but there’s nothing better than talking to the customer at the vehicle.

Open the hood and show the engine as you explain how the costs of labor and parts are skyrocketing. Selling VSCs should not be about persuading. A thorough presentation of information in an engaging manner should result in the customer concluding that a VSC is a smart investment.

GAP Insurance

With the average price of pre-owned vehicles surpassing $25,000 in 2021, customers are spending more than ever on vehicles. While car buyers may view their purchase as an investment, in reality, a vehicle is still a depreciating asset.

As soon as a customer drives off the lot, their vehicle is not worth as much as was paid for it. Granted, this year, we have heard many stories to the contrary, where the price of preowned vehicles appreciates due to lack of inventory. But a customer who buys a vehicle today cannot count on this trend continuing for long.

Eventually, the value will depreciate.

A year from now, if a customer gets into an accident and totals the vehicle, there’s a very good chance they will owe more on the car loan than the car will be worth. If they owe $20,000 on the vehicle and the car is worth only $15,000, that’s $5,000 that has to come out of the customer’s pocket.

GAP insurance helps cover that difference.

The nice thing about GAP is that’s it’s fairly inexpensive for the customer, especially compared with the cost of a total loss on their vehicle. The only issue is that nobody expects they will total their vehicle. Reassure the customer it’s not about how well they drive; it’s about all the other drivers out there on the streets.

A bonus benefit for the dealership is that when a customer gets their money from a GAP claim, that money can be used at the original dealership to purchase another vehicle (pending state regulations). This increases the opportunity to create repeat customers.

The biggest reason consumers decline VSCs and GAP coverage is because they want to keep their monthly payments within a budget.

Try to steer customers towards a vehicle with a price where they still have room to add F&I products. The investment protection and peace of mind these products provide should keep customers returning to your dealership for their next vehicle. n

THE FRONT ROW | WSIADA.COM Nov/Dec 2021 | 13

Correcting the Chip Shortage Will Take Time

BY RONNIE WENDT

As the automotive industry spins its wheels waiting for chips, analysts say the road to correcting the chip shortage won’t clear until at least 2022.

A recent “60 Minutes” interview with Pat Gelsinger of Intel, the largest U.S. maker of semiconductor chips, shed light on the fragility of the computer chip supply chain.

According to Gelsinger, the U.S. once produced 37% of the world’s semiconductor chips. Today that number is 12% with 75% of all chips made in Asia.

Further, 25 companies once manufactured the quarter-sized chips. Now just three companies make them, with Intel being the only U.S. manufacturer. Worse yet, Intel makes chips for many industries, but only recently entered the automotive space.

Intel broke ground on two fabrication plants in Arizona, costing the company $20 billion. The company also plans a $500 million upgrade of its plant in New Mexico to help ease the shortage.

The White House also has responded to the chip shortage with a $50 billion plan to inject new life into the U.S. semiconductor industry as part of the Biden Administration’s infrastructure plan.

And Taiwan is doing what it can to address the global shortage of semiconductors, reported Economy Minister Wang Meihua, when U.S. senators from Ohio and Michigan pressed the Taiwanese government to help address the shortage.

She said Taiwan’s production of MCU, or microcontroller units commonly used for auto chips, rose 60% in the first half of 2021.

It’s not so easy to make up the shortage, TSMC Chairman Mark Liu told 60 Minutes. The company, headquartered in Hsinchu, Taiwan, is a leading supplier of automotive chips. He notes, though the industry saw the shortage as early as December 2020, the complexity of the automotive semiconductor chip supply chain complicates catching up.

“While the industry has taken steps to address near-term constraints, it could still take a couple of years for the ecosystem to address shortages of foundry capacity, substrates and components,” Gelsinger told a virtual session of the Computex trade show in Taipei in May. Matt Degen, editor at Kelley Blue Book, agrees with this dire prediction. “It does not look like it’s going to be easing anytime soon,” he says. “Some analysts say this shortage could last into next year and even into 2023. It really depends on the output of these chips and getting them into vehicles.”

He adds, “Supply shortages can really affect how production goes and they can come out of nowhere. Earlier this year there was a rubber shortage and a foam shortage affecting seat materials. We are learning just how shortages can impact supply. We used to have a two-month supply of vehicles. A consumer could go out and choose from 10 different vehicles.

Now they cannot find the vehicle they’re looking for.”

Even with supply pressures, Brian Moody, executive editor at Autotrader, says he sees a light at the end of the tunnel. “By the end of the year, the shortage will ease somewhat,” he says. “We will see impacts that last through 2022. But a year from now, manufacturers will reduce their inventory shortages and customers will be more likely to get the car they want.”

Other Impacts Complicate the Shortage

Other impacts continue to rattle semiconductor supply chains as well, Degen adds.

The chip shortage stems from a perfect storm where the pandemic shut down automotive plants and their suppliers.

Automakers responded to COVID shutdowns by cancelling orders for chips because they assumed the economy would tank. The electronics industry was more than happy to scoop up the excess chip supply for laptops, gaming consoles and other electronics that experienced booming sales during the shutdowns. Sanctions against Chinese tech companies further compounded the crisis.

Fast forward to 2021, when demand exploded for automobiles as the U.S. emerged from its pandemic cocoon.

Suddenly, demand for vehicles was there, but the semiconductor chips manufacturers needed to produce them were not.

“It all goes back to last year, when factories shut down; not just the automotive manufacturers but their suppliers,” Degen says. “Some of them are still catching up.”

Further complicating matters, an ongoing shipping crisis makes it difficult to move supplies from one part of the globe to another. Severe weather adds to manufacturing and shipping delays and now concerns about the Delta variant of COVID-19 and new outbreaks are shutting down ports and manufacturing facilities in Asia.

Automaker Responses Continue

In the meantime, automakers are taking drastic measures in response to the shortage. General Motors (GM) halted the assembly of pickup trucks in several plants in late July because the company lacked enough computer chips to complete the job. At the time, GM’s CEO Mary Barra was quoted as saying: “I do think we’ll continue to see impact this year, and it will have a tail into next year.”

GM has since announced plans to close

its Orion Assembly Plant, which was supposed to open before Labor Day. Ford plans to slow production at its Kansas City F-150 plant. Nissan Motor Co. halted output for two weeks at a Tennessee plant because of coronavirus outbreaks in Malaysia and chip shortages. Japan’s major automakers reported producing fewer vehicles in July when they released their global production figures on August 30.

Honda’s output fell 23%, while production decreased 20% for Mazda, 18% for Subaru, 16% for Nissan and 4% for Daihatsu.

All cited the global chip shortage and COVID-19 impacts in Southeast Asia as the reasons. And while Toyota reported an 11% increase in production, the automaker shaved global production by 360,000 vehicles for September, marking a 40% decrease.

All in, the global auto industry will produce 1.5 million to 5 million fewer vehicles this year than originally planned because of supply constraints, according to the consulting firm AlixPartners.

“Some manufacturers only have a one- to two-day supply of vehicles right now,” Degen says. “We used to say a 45-day supply was pretty tight and 60 was about normal. When you’re talking single or low double-digit days of inventory, that’s crazy.”

Shortage Affects Vehicle Features

The shortage not only affects inventory levels, but it also impacts the features vehicles offer, reports Moody.

Semiconductor chips are tiny transistors made of silicon that run software, manipulate data and control the functions of electric devices, including those found in automobiles.

As cars become computers on wheels and include features like heads-up displays, backup cameras, autonomous driving aids, cellphone integration, and highperformance engine elements, they need more and more chips. “These chips control everything from climate control systems to the engine and timing,” says Degen. “A lot of times vehicles cannot operate without these chips.”

The shortage has impacted features like GM’s Active Fuel Management System, which deactivates four of the engine’s eight cylinders in light load driving conditions to maximize fuel economy, reports Moody. “Impacts will vary by manufacturer,” he adds. “Ford, for example, knows it only has a certain number of chips available and reallocates them to higher volume automobiles and critical vehicle functions.”

Degen agrees, pointing out manufacturers now designate available Continued on next page THE FRONT ROW | WSIADA.COM Nov/Dec 2021 | 15

Continued from previous page chips to high-profit vehicles like trucks and SUVs. They also reduce the chips needed by removing ancillary features. He explains, “General Motors is conserving chips by not having the engine startstop feature when the vehicle idles. This feature saves on gas, shutting down the vehicle at stoplights and stuff. It’s not a critical loss, however. Most people shut off this feature, anyway.”

Moody reports GM is giving consumers a $50 discount for opting out of this feature when purchasing its larger SUVs. He adds, “Manufacturers also have removed HD radio capabilities. These steps help them get around the shortage and still sell vehicles.”

When the chip shortage impacts fundamental vehicle operations like fuel combustion, Degen notes manufacturers build the vehicles, but they sit on site until chips become available.

Tesla has taken another approach. The innovative automaker has adapted its vehicles to work with different chips.

“They have always been a player that does things outside the traditional rules of the automotive industry. But they are showing it can be done,” Degen says.

Shortage Pushes Prices Up

In July, the average new vehicle price hit $41,044, according to J.D. Power’s most recent U.S. Automotive Forecast. The firm attributed the increase to skyrocketing demand and limited inventory.

Dealers had roughly 932,000 new vehicles for sale across the U.S. at the end of July, compared to 3.1 million two years ago, J.D. Power reported. The forecast predicted new vehicle sales in 2021 will reach 15 million units, down from 16.9 million in 2019.

“People are paying over sticker price,” says Moody. In fact, purchasers on the KIA forum report paying up to 19% over sticker price for the popular three-seat SUV.

Used vehicle prices also hit new highs.

“When people cannot find a new vehicle, they often look for a used one. That has put pressure on used vehicles,” Degen says.

“A recent study showed used vehicle prices were up 28% year over year. I’ve been working in the industry nearly 15 years, and I’ve seen nothing like this.”

Because prices hinge on supply and the chip shortage continues to constrain supply, Degen cautions consumers to expect to pay more for vehicles for the rest of the year. “We’re not expecting things to ease until late this year,” he says. “This will not go away tomorrow. It’s going to take a while for prices to stabilize.”

Still, Moody adds some reassurance, saying: “Prices will come back down.” n

PLACE YOUR ADVERTISING IN WSIADA’S

WINTER ISSUE

DEADLINE IS WEDNESDAY, JANUARY 5!

Stay in front of dealership DECISION MAKERS across Washington.

REACH YOUR TARGET AUDIENCE with affordable rates.

It’s advertising to GROW YOUR BUSINESS. TO LEARN MORE, VISIT: wsiada.com/memberships/associate-membership Email advertising@wsiada.com for ad rates or to secure space.

16 | THE FRONT ROW | WSIADA.COM Nov/Dec 2021

WSIADA FAQs WHY DO I NEED NEW DEALER EDUCATION FOR A DEALER LICENSE?

New Dealer Education is a requirement by the State of Washington to teach prospective dealers the laws, forms and requirements for creating a successful dealership as required by RCW 46.70.079 Section 1a.

IS NEW DEALER EDUCATION AVAILABLE ONLINE?

Yes, we provide this course live through webinar. Prior to COVID-19, New Dealer Education was a live, in person, class required by the State of Washington.

WHAT IS THE DEALER HOTLINE?

The WSIADA Dealer’s Hotline is a membership benefit that allows active members to contact our association to ask questions concerning their business. Answers can take 1 to 2 business days depending on severity.

IS THERE MORE THAN ONE OPTION TO DOING CONTINUING EDUCATION? There are several options for getting your Continuing Education that are listed on the Education webpage here on our site.

WHAT DO WE DO IF WE HAVE HAD A DEALERSHIP PLATE LOST OR STOLEN?

Simple! Contact your local law enforcement department and report the loss of the plate. This will protect your dealership if the plate is being used improperly by another. Afterward, contact dealerlicensing@dol.wa.gov to inform them of the plate loss and how to order a replacement.

How Automakers and Dealers are Weathering a Topsy Turvey Market

BY AUTO DEALER TODAY STAFF

BMW released a positive forecast for 2021 based on “continuing positive pricing effects for both new and preowned vehicles will overcompensate” for falling car sales.

Months ago, the industry focus was on unprecedented demand, higher than ever prices, and record sales. Today, the picture looks bleaker.

The automotive industry saw its luck turn in Quarter 3 when light vehicles, sold in the U.S. at a seasonally adjusted annualized rate of just 12.2 million in September—the lowest in over a decade, with the exception of spring 2020.

The semiconductor chip shortage hampered vehicle production and deliveries to dealers in the spring. But at that time, ample inventories remained. Now dealers have few vehicles to sell except those vehicles manufactured with remaining chip supplies.

Prices skyrocketed as supply tightened. J.D. Power reports U.S. consumers paid an average of $42,368 for new vehicles in September, up 17% from September 2020.

Production constraints also force car makers to prioritize higher-margin vehicles, like pickup trucks, which improves the sales margins.

BMW recently updated its profit forecast for 2021. They based the forecast on a belief that “continuing positive pricing effects for both new and preowned vehicles will overcompensate” for falling car sales. Skyrocketing pre-owned vehicle prices—which hit a new high in September—also feed into the returns automakers earn in their big leasing operations.

General Motors didn’t share BMW’s enthusiasm. The automaker expects a weak third-quarter profit. The chip shortage isn’t totally to blame. Profits took a hit with the automaker’s expansion of the Bolt electric vehicle recall. After 90 years as the top selling automaker in the U.S., GM’s market share fell to just 13.1% in the third quarter.

Smaller players reaped the benefits of a challenging market. Hyundai and its affiliate Kia reported a record 10.8% U.S. market share in the third quarter.

U.S. dealers are still thriving. J.D. Power estimates state that, as a whole, dealerships made $4.2 billion in profit from new-vehicle sales in September—a record for the month despite the inventory shortage. n THE FRONT ROW | WSIADA.COM Nov/Dec 2021 | 17

Seven Reasons

to Join Your State’s Independent Automobile Dealers Association

BY USED CAR NEWS Starting—and growing—a dealership takes more than just a business plan and a license. There’s a lot that happens outside the boundaries of your lot that directly impacts your business. And no matter if you have a team of employees or operate solo, staying up to date on changing regulations, technology, and opportunities while operating a dealership can be overwhelming.

3) Networking

Here are seven reasons why being a member of your local independent automobile dealer association is good for business:

Association events like this one are an excellent way to share what’s working (and what’s not) with your peers–and hear their experiences as well. Both state and national events are invaluable opportunities to meet with fellow dealers and other industry professionals and learn from their business practices. Remember, as a business owner, sometimes it’s not what you know but who you know.

The chance to create and then leverage relationships that benefit your dealership is a huge selling point for members.

1) Education

4) Reputation

Whether you’re just getting started or have been running a dealership for decades, your local dealer association can be a resource for pre-license or continuing education seminars. And with rules and regulations differing from state to state, having a resource dedicated to dealers within your boundaries means the information you’re getting is accurate and relevant to your market.

With so much of the car-buying process happening online, consumers are laserfocused on finding more than just the best deal. Businesses that are known to be reliable and customer-centric will stand out among the competition, especially in an industry that hasn’t always had a stellar reputation. While managing your online reputation should always be top of mind, being an active member of prominent dealer associations goes a long way to prove your commitment to running a compliant business. And it’s not just prospective buyers that care—even lenders take association participation into account when evaluating new partnerships. Whether you’re a new or longtime member, be sure to feature your involvement in your website and marketing materials.

2) Representation What happens in Washington, DC certainly doesn’t stay in DC, and the same goes for your state capitol building.

But unless you’ve set aside time every legislative session to advocate for the industry, it’s easy to feel like you don’t have a voice representing your best interests as significant decisions are made. Supporting your state dealer association is the next best thing, as their lobbyists and committees are dedicated to advancing laws in your best interest.

18 | THE FRONT ROW | WSIADA.COM Nov/Dec 2021

5) Savings While membership will cost an annual fee, it can pay to join, as this calculator

from TIADA shows. Auction discounts and deals sponsored by industry vendors can save your dealership money in the long run. Plus, featured guidance on how to select the right product or partner can help you get the most out of your budget. Associations also maintain a service provider directory letting you know what businesses are affiliated with the organization, acting as a referral when you’re searching for a solution.

6) Consumer Advocacy Dealer associations are also consumer advocates, focusing on maintaining or enhancing customer service standards and buyer protections. In fact, the NIADA centers truth and accuracy, integrity, and serving the public as major tenets in their Code of Ethics. When buyers feel protected, everyone benefits.

7) Community Service Serving your community can be a significant addition to your dealership’s value proposition. However, it’s not always easy to find out how to make a difference and get involved. Your local association is most likely one step ahead of you, coordinating volunteer initiatives to support community efforts and help you give back.

In today’s market, it’s crucial to take advantage of any opportunity that can help you improve your business. For more information on your state and local dealer associations, visit the National Independent Automobile Dealers Association. n

FEATURE

Vehicle Loans Are Risky Business

BY JOHN TABAR, EXECUTIVE DIRECTOR OF TRAINING FOR BROWN & BROWN DEALER SERVICES

The better you understand the lending guidelines of each of your lenders, the better you will be able to match each deal to the lenders who will give you the most favorable terms.

When a lender does not approve the deal as submitted and either declines the deal or offers a conditional approval, they are basing that decision on risk.

Character is payment history, capacity is debt-to-income and payment-to-income ratios, and collateral determines the advance terms based on factors such as the age of the unit and loan-to-value (LTV) ratio.

The lender’s system is determining risk based on how the deal was submitted. The initial decision is software determined, and the offer is generated by analyzing the information submitted to the lender based on the lender’s decision guidelines, with limited human evaluation.

You may feel from time to time that the analyst you are talking to is looking for ways to say “no” to your deal. The opposite is true, they want to say yes. Like us, they get paid on performance, volume, and profit. The catch is they have guidelines that determine their decisions on the deals you submit.

The two most important factors to a lender are character and capacity. These two factors determine about 65% of the decision. Can the applicant afford the payment? What is the probability they will make the payments on time?

Lenders have a group of very smart people that calculate how the capital they have allocated for vehicle loans should perform over time. To oversimplify, they predict the future. If a specific amount of money is placed in vehicle loans based on certain conditions or guidelines, it should provide a specific return (profit) by a predetermined time.

If there are late payment issues or a period of slow pay in your customer’s credit report, be prepared to talk to your lender about it.

They will want to know a few things: Why it happened, what they did to correct it, and why it won’t happen again. Many things can cause a period of slow pay such as illness, employment gaps, pandemics, and so on.

The better you understand the lending guidelines of each of your lenders, the better you will be able to match each deal to the lenders who will give you the most favorable terms.

Most lenders will base their initial approval, condition, or turn-down of your deal based on their guidelines. These guidelines will often vary from lender to lender, however, there are three constants that every lender considers when deciding to offer credit to your customer. They are: • Character • Capacity • Collateral

Character

Get the details and provide the information they will need to justify the additional risk you are asking the lender to take to approve your deal.

Capacity: Debt to Income and Payment to Income

Most lenders will want to see current debt no more than 40-45% of monthly income, with a car payment of around 18% of the monthly income. Before you call back the lender, do the math. If DTI is an issue, verify balances on their report. Maybe they just paid off that high credit card balance and it isn’t showing yet? Is there a second source of income?

Collateral

Usually, you can negotiate a better approval by getting more down payment or looking for more equity from a trade or alternative collateral thus limiting the lender’s risk.

If you still can’t quite get there, ask your analyst to give you a way to go. Ask them where their system will approve the deal.

This is the only place I endorse “If I could, would you.”

If you are way off, you may need to restructure the deal by changing the collateral and rebuilding a structure that will work. Either way, look for information and solutions that may solve the lender’s risk problem. Shorten the term, get more cash down, add a co-signor — you get the idea. Change the risk, change the approval, or change the condition.

Lastly, it is best to submit a deal structure you know the lender’s system will approve.

For example, submitting a deal at 150% LTV when the guidelines state a max LTV of 120% will only result in an automatic decline. Better to submit at LTV that has a chance and negotiate up rather than starting from a “no.”

If you want to get those tougher deals approved, know your lender’s guidelines, and think about what you, together with all stakeholders in the deal, can do to lower the lender’s risk. n THE FRONT ROW | WSIADA.COM Nov/Dec 2021 | 19

20 | THE FRONT ROW | WSIADA.COM Nov/Dec 2021

SERVICE PROVIDER DIRECTORY WSIADA service providers are best in class.

We invite you to explore their services and please mention that you saw their listing in the Front Row magazine.

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Auctions

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Adesa Portland

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Floor Plan Companies

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

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Washington Retail Association (360) 943-9198 waretailservices.com

Carousel Software

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Parts & Service

Finance and Insurance

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Vehicle Services PRco

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THE FRONT ROW | WSIADA.COM Nov/Dec 2021 | 21

READ & RESPOND NOV/DEC 2021 The WSIADA READ AND RESPOND quiz allows the reader to earn one hour of continuing education credit toward the dealership’s required annual renewal. Payment options are available for members of the association 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.

SEND YOUR COMPLETED QUIZ TO WSIADA [Mail: 707 Auburn Way South, Auburn, WA 98002 or Fax: 253-804-0844 or Email: education@wsiada.com] 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. q I have read and understand the disclaimer above.

Dealership Name

Motor Vehicle Dealer No.

Date

Quiz Taker’s Name Signature Email Position Business Phone Fax CIRCLE THE CORRECT ANSWER. 1. Professional lenders may conduct

interviews, research your dealership by reviewing your online reviews to decide to do business with your dealership. a) True b) False

2. It is a best practice to present the basic coverage of a which service first to a customer before moving up coverage? a) Driver’s Insurance b) GAP Insurance c) Vehicle Service Contracts (VSC) d) Surety Bond

4. The two most important factors to a lender are Character and what else? a) Honesty b) Capacity c) Collateral d) Quality 5. In which year could semiconductor chip no longer be a shortage for the auto industry? a) 2021 b) 2022 c) 2023 d) 2024

6. Preventing auto theft during the 3. By 2022, WSIADA will replace winter, it is recommended not to the Implied Warranty Negotiation do this.

Statement and Disclaimer of a) Leave car keys unattended Warranty forms with a new form with customers around called? b) Unlock all vehicles on your lot a) Implied Waiver and Disclaimer

during business hours of Negotiated Warranties c) Leaving a car unattended to b) Disclaimer Waiver of

warm up

Negotiated Warranties d) Using Ice Melt in your parking c) Waiver of Negotiated Warranties

lot d) Negotiated Waiver and Disclaimer

of Implied Warranties 22 | THE FRONT ROW | WSIADA.COM Nov/Dec 2021

7. Inventory on your lot does not speak to the standards your dealership values for Lenders? a) True b) False 8. Placing a false a deceptive endorsement online could incur a significant civil penalty of what amount? a) $19,231 b) $35,552 c) $40,001 d) $43,792 9. Semi-Conductor chips for automobiles are currently made by how many companies? a) 3 b) 10 c) 25 d) 27 10. Joining your State’s Independent Auto Dealer Association can help you with Networking, Education, Representation, Reputation and more. a) True b) False

The Washington State Independent Auto Dealers Association was created by Independent auto dealers for Independent auto dealers in the state of Washington since 1953.

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INCLUDED

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INVOICE OPTION AVAILABLE**

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CONTINUING EDUCATION SPECIFIC TO WASHINGTON STATE L AW

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COMPLIANCE TRAINING

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DEALER PRODUCTIVITY TRAINING

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DISCOUNTED ATTENDANCE AT REGIONAL EDUCATION FAIRS

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OVER $2,000 IN AUCTION DISCOUNTS AT PARTNERED AUCTIONS: - DAA (NW & SEATTLE) - MANHEIM (SEATTLE & PORTLAND) - KAMAN - EHLI

MEMBERSHIP PAYMENT TYPE: $450 ANNUAL CHARGE (PAYABLE BY DEBIT/CREDIT CARD OR COMPANY CHECK) $42/MONTHLY (12-MONTH CONTRACT/CREDIT CARD ONLY)

CONTINUING EDUCATION OPTIONS AND PRICE DIFFERENCE: EDUCATION

MEMBER COST

NON-MEMBER

Chapter Mee�ng + 2 quizzes (5 hours)

Included in membership

$75

2 Chapter Mee�ngs (5 hours)

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$100

Con�nuing Educa�on (5 hours)

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Title Workshop (3 hours)

$125

$175

Regional Educa�on Fairs (5 hours)

$25

$125

*RECENT DEALER ADVICE RESULTED IN $5,000 SAVINGS ON ONE DEALER TRANSACTION **CONTINUING EDUCATION FEES ARE EXCLUDED FROM INVOICING OPTION

AUCTION LISTINGS n ADESA SEATTLE adesa.com/seattle Tuesday: Consignment, 9:30AM Alternate Tuesday: Specialty, 8:30AM Thursday Night: InOp Sale, 4:45PM n ADESA PORTLAND adesa.com/portland Thursday: Consult website n BIDBUY DEALER AUCTIONS (844) 505-1555 bidbuydealer.com Weekly Thursday Auctions 8:00AM to 3:00PM and previews Tuesday and Wednesdays 12:00PM to 3:00PM n COPART copart.com Times vary: Consult website n CTM UNLIMITED ctmunlimitedauction.com See website for auction dates and times. n DAA NORTHWEST magauctions.com/daanw Weekly auctions: Thursdays, 9:00AM Monthly promotional event auctions: Wednesday, 2:00PM & Thursday, 9:00AM

n DAA NORTHWEST (CONTINUED) Monthly MotorSports auctions: Thursdays, 11:00AM (Lane 8) Monthly RV auctions: 11:00AM (Lane 8) Heavy Metal auctions, 8:30AM as scheduled (Lane 8) NOTE: MotorSports, RV and Heavy Metal auction For dates, visit: daanwmotorsports.com

n IAA - INSURANCE AUTO AUCTIONS SPOKANE iaai.com (509) 891-2388 See website for dates and times.

n DAA SEATTLE magauctions.com/daasea Friday: Dealer and Fleet/Lease, 9:00AM Alternate Friday: Heavy Metal,* 9:00AM (Lane 8) Monthly GSA Public Auctions, 1:00PM *Mechanically-challenged/cosmetically damaged/non-running inventory

n MANHEIM PORTLAND manheim.com/locations/PAA/events Tuesday: Open Sale, 9:00AM

n EHLI AUTO AUCTIONS ehliauctions.com Last weekend of every month n IAA - INSURANCE AUTO AUCTIONS SEATTLE iaai.com See website for dates and times.

n KAMAN kamanauctions.com Thursday, Noon

n MANHEIM SEATTLE manheim.com/locations/SSAA/events Monday: OVE Event Sales; Foothills Toyota Mobile Sale, 1:00PM in Burlington, WA Wednesday: General Sale Weekly, 9:00AM All sale dates and times are subject to change. Please verify with the Auction or manheim.com.

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