the Front Row - September / October 2021

the

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

September/October 2021

WELCOME

Brian Dansel, Executive Director

WSIADA is Upping Our Game! Get Involved!

Why are you still doing unaccompanied test drives?

MAC Ruddell Scholarship: We’re accepting applications!

PLUS

Now Is the Time to Revise Your Social Media Strategy

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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

CONTENTS SEPTEMBER/OCTOBER 2021

EXECUTIVE BOARD Randy Fletcher, President In-N-Out Auto Sales | President@wsiada.com Wasim Azzam, Vice-President All Right Auto Sales | VPresident@wsiada.com J.T. Curry, Secretary Motors Northwest | Secretary@wsiada.com Emil Scarsella, 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 Vacant – Vancouver | Vancouver@wsiada.com Vacancy – Yakima | Yakima@wsiada.com Vacancy – Tri-Cities | Tri-Cities@wsiada.com Vacancy – Spokane | Spokane@wsiada.com AT-LARGE BOARD AJ Hamedian, Board President (Emeritus) Excellent Choice Auto Sales, LLC Ken Williamson, Board President (Emeritus) John’s Auto Mart, LLC WSIADA STAFF Brian Dansel, Executive Director Rick Olson, Education Manager Mila Froman, Membership Manager Vacant, Seattle Auction Store Manager Vacant, Spokane Store Manager Vacant, Receivables/Payables PRODUCTION EDITOR Professional Mojo Copyright 2021 WSIADA

2 | President’s Message: A Big WSIADA Welcome to Brian Dansel, Executive Director 2 | Advertiser Index 3 | WSIADA Title Workshop: Register today!

4 | Executive Director’s Message: WSIADA is Upping Our Game!

Get Involved!

5 | Are your training, process, and policy binders collecting dust?

6 | NIADA Washington Update 7 | Member Spotlights: Registered Importers 7 | Events Calendar 8 | Why are you still doing unaccompanied test drives?

9 | Auction Listings 9 | MAC Ruddell Scholarship: We’re accepting applications!

10 | The CARLAWYER© 12 | Now Is the Time to Revise Your Social Media Strategy 14 | When the Market Heats Up, Get Ready for Change!

16 | Education Fair West: Register now!

17 | Service Provider Directory 18 | Membership Application 19 | How to Retool Your Floorplan for Today’s Market 20 | Read and Respond

THE FRONT ROW | WSIADA.COM Sep/Oct 2021 | 1

u PRESIDENT’S MESSAGE

A Big WSIADA Welcome to Brian Dansel, Executive Director

BY RANDY FLETCHER, PRESIDENT We have been very busy this year in the association, and the Board is very happy to welcome Brian Dansel as the new Executive Director for WSIADA. Brian has a legislative background coupled with experience in the auto industry making him the perfect fit for this position.

Brian and the board are moving forward with some great ideas and tasks. One of the main focuses for this year is to move forward with having a stronger presence in the eastern part of the state. Brian is looking at properties to set an office space in the Spokane area to better serve the dealers of that part of our state. Also, look for our exciting change to our online store.

Brian plans to hit the road with the 2020 GMC Acadia the association purchased, so watch for him to visit your dealership where he is ready to answer any questions you may have. The association is here for our dealers, so if you have any questions don’t hesitate to reach out. Stay safe and healthy. n

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

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

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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 Sep/Oct 2021 | 3

u EXECUTIVE DIRECTOR’S MESSAGE

WSIADA is Upping Our Game! Get Involved!

BY BRIAN DANSEL, EXECUTIVE DIRECTOR

I think one of the things I love about the automobile industry is that most of our dealers are family enterprises—everyone in the family pitches in! Many of WSIADA’s current and past board members have multi-generational roots in dealerships all over the pacific northwest. To be honest with you, it reminds me of the history of our Association. What those businessmen understood back in 1953, when WSIADA came into existence, was that they needed a trade association to not only combat some of the laws, rules and regulations in Olympia, but to act as a resource the dealers could rely on to help the entire industry. These people were competitors of course, but they understood that while they were competitors in business, they were colleagues in an industry. They knew their kids would likely some day take over the family business and that they needed a long-term strategy to ensure the industry withstood anything that came its way.

Why do I mention this? As I travel and speak with dealers across the entire state, I hear the same things everywhere I go— everyone wants to see the industry flourish, but they don’t know how or what we are doing to combat some of the things coming down the legislative turnpike. I think that is a fair concern. The vision we have is to be able to reach out and survey the WSIADA members directly to understand where we need to prioritize our focus. We will then meet with our contract lobbyist and formulate ideas to bring to legislators

4 | THE FRONT ROW | WSIADA.COM Sep/Oct 2021

who are supportive of our cause. Once a legislative agenda is developed, it will be provided to the general membership so that you all can actually see what we are doing and where your lobbying dollars are being spent. Along with regular communications via this magazine, I will send out regular bulletins to all WSIADA members, so that you can see what is happening in Olympia. This will allow everyone to have direct input to the Association so that we can have an organized strategy going into these legislative sessions. I have seen many trade associations get complacent and what

many different industries that get “cut out” of the conversation. Let’s not let that happen to us. I want to go on the offensive.

I want you all to have legislative clout, and I need your help to make that happen. I have scheduled chapter meetings in the fall in an area near you. At those chapter meetings I will be bringing Senators, State Representatives and local elected officials, so they can hear our story, and that is not a hypothetical—these people are already lined up. We will up our game when it comes to communicating with you all and getting input into these matters. What we

happens in those cases is that they simply get cut out of the conversation. I wish this wasn’t the way it worked—but it is. This leads to always operating on your back foot and always being on defense. I do not see how that will pan out as a long-term strategy.

ask of you is to come and get involved with us. We need everyone who has a love for this industry to come together so we can protect it for the next generation. I believe this is our 1953 moment. As always, I know the best answers to the many issues we face come from those who are in the trenches. Please feel free to contact me at executivedirector@ wsiada.com or on my cell at (509) 322-5768 to discuss anything you wish. n

As a former Senator and Presidential appointee, I can tell you many stories about

Are your training, process, and policy binders collecting dust?

BY JASON VOLNY, DRIVING SALES

To dealership managers,

For many years, the three-ring binder has done a good job of keeping our employees on the same page when it comes to our training needs, processes, and policies. However, this only works if the employees actually look at it. There are other challenges as well. If you have a change, you must print out new versions of it and make sure everyone's folder is up to date.

If not, you don't really know what version of the process everyone is training on. This makes it difficult to pivot, make changes, and execute new plans. By now, we are too far into the "Internet of things" to keep using these archaic measures to keep our people and organizations aligned.

A good employee management system should allow you:

• • •

•

• • •

Build a digital library of your organization's training, processes, and policies.

Make changes as needed and update every user automatically.

Every user should have access to the content and should not have to search for it on someone else's computer or binder.

Assign your curriculum to Career Pathing, Scorecards, and New Hire orientation, thus improving utilization.

House 3rd party training curriculum, including vendors.

Have a search function with filters to help you choose the right training for the right moment.

Provide reporting on utilization.

• •

Be interactive with the user and provide a feedback loop with the manager. and more.

The purpose of a manager is not to just manage sales, service, or parts processes. It's to help their people develop and grow. The three-ring binder has served its purpose. It's time you take it to the next level.

THE FRONT ROW | WSIADA.COM Sep/Oct 2021 | 5

NIADA WASHINGTON UPDATE

BY BRETT SCOTT, NIADA VICE PRESIDENT OF GOVERNMENT AFFAIRS.

NIADA is your voice in Washington D.C., advocating for independent dealers, the used vehicle industry and small business.

Here’s a look at the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities.

LEGISLATIVE

The bipartisan plan to shore up America’s infrastructure hit a roadblock when a procedural vote to begin debate on the matter failed in the Senate.

Forty-nine senators voted to move ahead with the bill, far short of the 60 needed to pass. Republicans – including the 11 GOP members of the bipartisan group crafting the bill – voted to delay debate because negotiations are ongoing and the bill had not yet been written.

The $1 trillion proposal includes $579 billion in new spending on roads, bridges, broadband and other public works projects.

Democrats hope to get the infrastructure bill passed before the Aug. 9 recess, along with a larger proposal for $3.5 trillion in spending on social programs such as child care, Medicare expansion, education and more.

The latter bill would have to be passed in the Senate through the budget reconciliation process, which requires a simple majority vote rather than the 60 needed to prevent a filibuster in a non-reconciliation vote.

Some Democrats have indicated that bill’s price tag would go up if the bipartisan bill fails, and House Speaker Nancy Pelosi (D-Calif.) told reporters the House will not consider the infrastructure bill “until the Senate passes the reconciliation measure.”

6 | THE FRONT ROW | WSIADA.COM Sep/Oct 2021

REGULATORY

Right to repair: An executive order issued by President Biden could be paving the way toward right to repair rules that would give consumers and independent auto service operations the same access to repair information, technology and equipment as automakers and their franchised dealerships.

The dashboard, available at datahub. transportation.gov/dataset/NHTSARecalls-by-Manufacturer/mu99-t4jn, is updated daily and displays recalls by manufacturer in easy-to-read charts and graphs, plus links to each recall. Users can sort and filter data, search by keyword and export data in CSV, TSV for Excel, XML and other formats.

The order, signed July 9, was aimed primarily at large technology and agriculture companies, but it addressed more general concerns in that context.

It’s another resource added to NHTSA’s VIN lookup tool (www.nhtsa.gov/recalls) and the SaferCar app, available for iPhones and Android devices.

Among those concerns was equipment manufacturers using “proprietary repair tools, software and diagnostics to prevent third parties from performing repairs,” which forces equipment owners to pay higher prices “for repairs they could have made themselves, or that an independent repair shop could have done more cheaply.”

The order also “encourages the FTC to issue rules against anticompetitive restrictions on using independent repair shops or doing DIY repairs of your own devices and equipment.”

That’s been a common practice for auto manufacturers, who have long restricted access to vehicle diagnostic and repair information by consumers and independent repair shops.

Last year, Massachusetts voters overwhelmingly approved an update to the state’s groundbreaking 2012 right to repair law that encompasses data transmitted wirelessly.

General Motors, Ford, Toyota, Volkswagen and other automakers have challenged that law in federal court, claiming it’s unnecessary and creates cybersecurity concerns. A ruling in that case is expected this month.

National Highway Traffic Safety Administration: NHTSA has launched a new cloud-based recall dashboard to make searching for auto safety recall data easy and efficient. The dashboard offers user-friendly and transparent ways to sort, filter, visualize and export recall data.

PAC

NIADA-PAC went West for its latest Coffee with Congress session.

Rep. Ken Calvert (R-Calif.) met virtually with NIADA members from the 42nd Congressional district in California’s Inland Empire on July 20 to discuss a wide range of issues, including infrastructure legislation, vehicle recalls and government’s push for electric vehicles.

Coffee With Congress is a series of 30-minute to one-hour online conversations that give NIADA members the opportunity to talk to the U.S. representative from their district to get the inside scoop on what’s happening in Washington D.C., and ask them hard questions about policy that could affect their businesses.

If you’d like to have coffee with your Congressional representative, let me know at brett@niada.com and we’ll be happy to try to arrange it.

More events are currently in the works, so keep an eye out for one in your district – and you could be having Coffee With Congress.

GRASS ROOTS New York: New York IADA and NIADA worked together to prevent harmful legislation involving recalls from advancing in the state legislature.

Assembly member Jenifer Rajkumar and Continued on next page

MEMBER

Spotlights

EVENTS CALENDAR

Registered Importers

EDUCATION FAIRS Bidbuy Importers 1855 Pipeline Road Blaine, WA 98230 (844) 505-1555 bidbuyimporters.com

Collins Auto Wholesale 820 SR 161 N Eatonville, WA 98328 (253) 732-4555 cawri.com

Quality Auto Center 20420 Highway 99 Lynnwood, WA 98036 (425) 603-1335 qautocenter.com

V.I.P. Traders

2329 S Hayden Road Airway Heights, WA 99001 (509) 244-0777 vipautoimporters.com

Compass Point Auto Sales 2323 Auburn Way N Auburn, WA 98002 (253) 397-4703 compasspointauto.com

JAM Imports

2724 S. Hayford Road, Suite 1 Airway Heights, WA 99001 (509) 244-6069

FOR A COMPLETE WSIADA SERVICE PROVIDER LISTING, VISIT wsiada.com/directory/ ServiceProviderDirectory

Thursday, September 23 Education Fair West 9am - 5pm

CHAPTER MEETINGS Monday, October 4 7am Spokane Chapter Monday, October 18 7pm Tri-Cities Chapter Tuesday, October 19 7am Yakima Chapter Monday, October 25 7pm North Sound Chapter Tuesday, October 26 7am North Cascade Chapter Monday, November 1 7:30am South Sound Chapter Monday, November 8 12pm Vancouver Chapter

NEW DEALER EDUCATION COURSES Thursday, September 2 9am Webinar

TITLE WORKSHOPS Continued from previous page Sen. Kevin Thomas drafted identical bills that would have required dealers to have recalled vehicles repaired before a sale.

The bills’ very broad language did not take into account that independent dealers cannot by law make recall repairs and that recall remedies are often unavailable for months, among other issues. It’s also problematic for consumers, who during that lag time can be stuck with a vehicle they can’t trade in.

NYIADA executive director Paula Frendel and NIADA discussed the issue with the bills’ authors to address our concerns about the bills’ language. The legislators listened and understood those concerns – and the legislative session ended with no recall legislation having passed.

Thursday, October 7 9am Virtual Thursday, November 4 9am Virtual Thursday, December 9 9am Virtual

NYIADA will continue to have conversations with Rajkumar, Thomas and other state legislators in the future about legislation affecting the used vehicle industry and small business. n

Visit wsiada.com for additional details.

THE FRONT ROW | WSIADA.COM Sep/Oct 2021 | 7

FEATURE

Why are you still doing unaccompanied test drives?

BY TODD SHEPARD, SHEPARD & SHEPARD INSURANCE SOLUTIONS Let’s break it down beginning with the most common-an auto accident. Your unaccompanied prospect rear-ends another vehicle. The dealer insurance responds as primary, covering the other vehicle, and the dealer pays a deductible. If the dealer vehicle is damaged, it’s a separate claim and another deductible. If the prospect, or the other party, is injured, the bodily injury limits could be tremendous.

This is tough one. For several years the insurance carriers have tightened up their policy wording in an effort to discourage unaccompanied test drives. Then the pandemic hit, and dealers were forced into unaccompanied test drives for the safety of their employees and prospects. With the vaccine and other controls, best practice encourages that the test drive process can and should go back to normal.

Unaccompanied test drives cost you gross.

Any experienced salesperson who deals in pre-owned autos knows a poor test drive experience can cost gross or even the entire sale. The opportunity to properly demonstrate the features on a demo drive and address questions or concerns about handling or odd sounds or rattles is a valuable part of the sales process, helps put your prospect at ease, reduces negotiation, and increases potential for gross profit.

Unaccompanied test drives expose your business to potentially huge losses - The problem is multi-layered. A loss can involve liability, property damage, bodily injury, theft, or false pretense portions of a policy. Even if a loss is clearly that of the prospect, most states will require the dealer insurance respond as primary.

Wow! That is a bunch of exposure from both the dealer and an insurance carrier’s standpint.

8 | THE FRONT ROW | WSIADA.COM Sep/Oct 2021

Most often, auto accidents are a result of distracted driving. Aside from the fact the prospect is unfamiliar with the vehicle, they may also be unfamiliar with the roadway. The risk increases with the knowledge that the prospect is testing the auto, perhaps pushing the limits of acceleration, braking, and steering while fiddling with the controls, the radio, and even posting their test drive to social media! Add to the mix they may have a less than concerned attitude since it is not their car. We haven’t even addressed the other drivers on the road that may also be distracted! The role of an accompanying salesperson is much greater than just selling the features of the vehicle; they serve to monitor and ensure the safest test drive experience possible.

Unaccompanied test drives create theft losses that may not be covered by your insurance - The dealers inventory portion of an insurance policy has a built-in exclusion for auto theft that occurs when the dealer or salesperson willfully releases the keys to someone, and that person doesn’t return the car. It is technically not theft if the customer is given permission to take the car. If the joyride results in the auto disappearing for good, the dealer is out the entire cost of the car!

Fortunately, there is a coverage available through some carriers called False Pretense or Trick & Device coverage that a dealer can request to protect against this very thing.

Sadly, about 85% of the dealers choose to decline this coverage hoping to save money on premiums. This type of insurance often

includes some coverage related to other ways a nefarious individual may attempt to trick a dealer out of a vehicle. In short, unless you add False Pretense to your dealer policy there is no coverage for this type of loss. A quick call to your insurance agent should confirm if you are truly protected.

If your agent is unfamiliar with this type of coverage, it may be a good time to shop around. Your dealer association will be able to suggest insurance agencies that specialize in dealer-related insurance policies.

A test drive agreement is required when a prospect is operating a vehicle owned by the dealership - If a prospect is pulled over or involved in an accident, they must show proof of permission to operate the vehicle (often called a demo permit or test drive permit) and can be fined if they do not provide it (what a deal killer). Your dealer association has these forms available. The dealer completes the form and gives one copy to the prospect then retains a copy for file along with a copy of the prospect’s driver’s license and insurance card (make sure to compare the photo on the license with the face of the prospect!) The form requires the prospect to sign and agree to accept responsibility for losses and can be most helpful when processing a claim as it may allow the insurance carrier to hold the prospect accountable for a portion depending on the scenario.

Insurance carriers frown on unaccompanied test drives, and some even exclude this practice!

Check with your agent as to what rules must be followed should you opt to include unaccompanied test drives in your business operations. n Todd Shepard is the founder of Shepard & Shepard Insurance Solutions and a regular contributor to the Front Row. For more information visit shepquote.com or call 855396-0488.

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 Tuesday: Alternate weeks Ford Factory (Closed sale), 10:00AM; Crossborder Mobile Sale, 1:00PM Wednesday: General Sale Weekly, 9:00AM All sale dates and times are subject to change. Please verify with the Auction or manheim.com.

THE FRONT ROW | WSIADA.COM Sep/Oct 2021 | 9

THE CARLAWYER©

The CARLAWYER©

By Eric Johnson, Partner, Hudson Cook, LLP, Editor in Chief of CounselorLibrary.com’s Spot Delivery® Here’s our monthly article on selected legal developments we think might interest the auto sales, finance, and leasing world. This month, the developments involve the Federal Trade Commission, Consumer Financial Protection Bureau, and National Credit Union Administration.

As usual, our article features the “Case(s) of the Month” and our “Compliance Tip.” Note that this column does not offer legal advice. Always check with your lawyer to learn how what we report might apply to you or if you have questions.

FEDERAL DEVELOPMENTS FTC Provides Annual Report to CFPB on 2020 Reg. Z, M, and E Enforcement Activities. On June 1, the FTC provided its annual report to the CFPB concerning its enforcement activities during 2020 related to compliance with Regulation Z (Truth in Lending Act), Regulation M (Consumer Leasing Act), and Regulation E (Electronic Fund Transfer Act). The FTC’s report highlights, among other things, enforcement actions, rulemaking, research, and policy development related to vehicle financing and leasing, payday lending, credit repair and debt relief, electronic fund transfers, and the agency’s Military Task Force, which focuses on various initiatives to assist military consumers.

CFPB Updates EFTA FAQs. On June 4, the CFPB updated its frequently asked questions document regarding the Electronic Fund Transfer Act to address unauthorized electronic fund transfers and error resolution issues.

CFPB Issues Spring 2021 Rulemaking Agenda. On June 11, the CFPB issued its Spring 2021 rulemaking agenda. The agenda lists the regulatory matters that the CFPB is currently pursuing under interim leadership pending the appointment and 10 | THE FRONT ROW | WSIADA.COM Sep/Oct 2021

confirmation of a permanent director.

The permanent director’s changes to the regulatory agenda will be reflected in the Fall 2021 rulemaking agenda.

CFPB Examines Trends in Consumer Credit Delinquencies. On June 16, the CFPB issued the first in a series of blog posts examining trends in consumer credit outcomes during the COVID-19 pandemic. The current blog post specifically focuses on trends in delinquencies for mortgage loans, student loans, vehicle financing, and credit card accounts from July 2020 through April 2021. The report uses data from the CFPB’s Consumer Credit Panel, a nationally representative sample of approximately five million de-identified credit records maintained by one of the three nationwide consumer reporting agencies.

CFPB Issues Interpretive Rule on Authority to Conduct MLA-Related Examinations. On June 16, the CFPB issued an interpretive rule explaining the basis for its authority to conduct examinations of supervised institutions to detect and assess risks to active-duty servicemembers and their dependents arising from conduct that violates the Military Lending Act. In 2018, during the last administration, the CFPB discontinued MLA-related examination activities based on its belief that Congress did not specifically confer examination authority on it with respect to the MLA. The current CFPB leadership does not find those prior beliefs persuasive, and the CFPB will now resume MLA-related examination activities.

NCUA Removes Prohibition on Capitalization of Interest for Loan Workouts and Modifications. On June 24, the NCUA approved a final rule that removes the prohibition on the capitalization of interest—i.e., the addition of accrued but unpaid interest

to the principal balance of a loan— in connection with loan workouts and modifications but maintains the prohibition on a credit union capitalizing credit union fees and commissions.

The final rule also establishes certain consumer protections, like ability to repay requirements, to help ensure that the addition of unpaid interest to the principal balance of a loan does not hinder the borrower’s ability to make payments or become current on the loan.

CASE(S) OF THE MONTH Courts Discuss Military Lending Act's Applicability to Motor Vehicle Retail Installment Contracts that Financed Items in Addition to Cars: Two cases we report on this month discuss whether the Military Lending Act applies to motor vehicle retail installment contracts that financed items other than just the cars being purchased.

In the first case, a servicemember entered into a retail installment contract with a dealership to finance his purchase of a used vehicle as well as add-on items, such as a GPS system and GAP coverage.

The RIC also included an arbitration provision. The servicemember sued the dealership, and the dealership moved to compel arbitration. The magistrate judge recommended that the motion to compel arbitration be granted, and the servicemember objected.

The U.S. District Court for the Middle District of Florida adopted the magistrate judge's recommendation to enforce the arbitration provision. The servicemember argued that the MLA prevented the dealership from compelling arbitration.

The MLA states that an agreement to arbitrate a dispute involving an extension of consumer credit is void and not enforceable against certain groups, including active-duty servicemembers.

However, the MLA exempts from the definition of "consumer credit" "a loan procured in the course of purchasing a car or other personal property, when that loan is offered for the express purpose of financing the purchase and is secured by the car or personal property procured[.]"

Department of Defense regulations also exempt from the definition of "consumer credit" any "credit transaction that is expressly intended to finance the purchase of a motor vehicle when the credit is secured by the vehicle being purchased." The servicemember argued that the bundling of the GPS system and the GAP coverage in the RIC removed his credit transaction from the MLA's exemption.

arbitration provision in the RIC. See Juarez v. Drivetime Car Sales Company, LLC, 2021 U.S. Dist. LEXIS 103702 (M.D. Fla. June 1, 2021).

Various DoD interpretive rules have addressed whether a credit transaction involving the financing of a vehicle and other items related to the purchase of the vehicle is subject to the MLA's exemption, but the court noted that "[i]nterpretive rules do not have the force and effect of law and are not accorded that weight in the adjudicatory process."

In 2016, the DoD issued an interpretation of the MLA exclusion for financing the purchase of personal property.

That interpretation stated that credit that a creditor extends for the purpose of purchasing personal property that secures the credit is not exempt from the MLA's definition of "consumer credit" if the creditor simultaneously extends credit in an amount greater than the purchase price.

The court interpreted the phrase "when that loan is offered for the express purpose of financing the purchase" to determine whether the servicemember's RIC was subject to the MLA's exemption. The court found that the RIC specifically states that it is intended to finance "the Vehicle."

The majority of the financed amount in the RIC is attributable to the vehicle price. Moreover, "[a]ll of the additional items bundled into the [RIC], apart from the vehicle, were only purchased because the vehicle was purchased. Without the vehicle's purchase, the other items would not have been purchased. The vehicle is at [the] epicenter of the transaction while the costs for items such as a GPS are ancillary and specifically tied to the vehicle. The presence of the other add-on items does not alter the [RIC's] express purpose, i.e., the purchase of the vehicle."

Accordingly, the court concluded that the servicemember's RIC was exempted from the definition of "consumer credit" in the MLA and DoD regulations and, therefore, that the dealership could enforce the

In the second case, a servicemember entered into a retail installment contract with a finance company in connection with his purchase of an SUV. The servicemember sued the finance company for violating the MLA by failing to disclose various fees, failing to disclose the true cost of credit, and requiring him to submit claims to arbitration.

The finance company moved to dismiss the complaint, and the U.S. District Court for the Eastern District of Virginia granted the motion.

In 2017, the DoD issued a similar interpretation of the MLA exclusion for financing the purchase of a motor vehicle where the creditor simultaneously extends credit in an amount greater than the purchase price of the motor vehicle being purchased. That interpretation, Q&A #2, stated that whether such a transaction is exempt from the MLA's definition of "consumer credit" depends on what the credit beyond the purchase price is being used to finance. If the extra credit is used to finance a product or service expressly related to the vehicle, then the transaction is still covered by the exception and is not subject to the MLA. If, however, the extra credit is used to finance a credit-related product or service, such as GAP insurance or a credit insurance premium, then the transaction would not be covered by the exception and would be subject to the MLA.

that, despite the withdrawal of Q&A #2, his RIC was subject to and violated the MLA because it included GAP coverage, a processing fee, and prepaid interest, none of which were related to the vehicle he purchased. The finance company argued that accepting this argument would amount to a reinstatement of the 2017 interpretation. The court agreed and added that even if the 2016 interpretation concerning personal property, which was not withdrawn, applied to motor vehicles, the GAP coverage, processing fee, and prepaid interest included in the servicemember's RIC are not "unrelated to the purchase of the motor vehicle; rather, they are inextricably tied to [his] purchase of the vehicle." See Davidson v. United Auto Credit Corporation, 2021 U.S. Dist. LEXIS 95302 (E.D. Va. May 19, 2021).

COMPLIANCE TIP The Case(s) of the Month provide much needed clarity to auto dealers concerning the applicability of the MLA to vehicle retail installment transactions that include financing for ancillary products.

However, note that both cases have been appealed—Davidson to the 4th Circuit and Juarez to the 11th Circuit.

In addition, the DoD could reconsider the issue and publish further guidance or interpretations (though there have not yet been any indicators that it plans to do so). Dealers should remain aware of the risks presented by the MLA and its potential applicability to motor vehicle retail installment transactions. n Eric (ejohnson@hudco.com) is a Partner in the law firm of Hudson Cook, LLP, Editor in Chief of CounselorLibrary.com’s Spot Delivery®, a monthly legal newsletter for auto dealers and a contributing author to the F&I Legal Desk Book. For information, visit www.counselorlibrary. com. ©CounselorLibrary.com 2021, all rights reserved. Single publication rights only to the Association. HC# 4853-17384176

In 2020, the DoD withdrew the 2017 interpretation. The servicemember argued THE FRONT ROW | WSIADA.COM Sep/Oct 2021 | 11

Now Is the Time to Revise Your

Social Media Strategy

BY KATHI KRUSE, KRUSE CONTROL INC.

The COVID-19 virus turned our world upside down. Things continue to change rapidly. It’s hard to know what to do.

Everyone is feeling anxious – including your customers and community. It’s definitely not business as usual.

Which makes now a good time to reconsider your social media strategy. While social distancing is a good idea in real life, it’s not required on social media. In extraordinary times, social media can do magical things.

Whether you’re a large business, a small dealership or a solopreneur, if you lean on social media to build your business, you’re going to need to tap into that magic.

Some companies have been using content to help their customers navigate the new world of COVID-19.

12 | THE FRONT ROW | WSIADA.COM Sep/Oct 2021

The pandemic has impacted every business and every person, without exception. There are many questions and still not a lot of answers.

If you can help your customers in some way, you’ll be mitigating some the challenges they’re experiencing. And that means lot.

So what can you do?

The move to trust content is crucial: Review the content you’ve been publishing and come at it with a different goal: trust.

The traditional social media content rule remains. Provide your audience with content that educates, entertains or inspires.

That doesn’t always require a sales angle such as a link back to your website, special offer or sign-up form. In fact, be selective about what you promote.

Instead, build trust.

Digital marketing pioneer Ann Handley calls that approach, “Slow down so you can speed up.” Slow down, she said, “to build momentum for what truly matters long term.” Consider “the next 10 years, not the next 10 months or 10 days or 10 minutes.”

You are being given the chance to slow down, reassess, reconsider and determine a different and perhaps better path forward.

The goal is to build a solid foundation – a more sustainable and sane momentum.

Re-examine your tone: Have you been blasting oneway messages without much

response? Time to stop that in general, but even moreso now. Change to a more empathetic tone in your content.

Be open to trust-building tactics: Discuss ideas with your team or social media manager about what you can do personally and/or what the business can do to support your community online and offline.

Re-think subject matter: Everyone is struggling with coronavirus-related issues.

When you hear about something that will help people, publish a post, write a blog post or record a video letting people know about it.

Provide tips specifically related to your customer’s needs, especially as they relate to your business.

PRO TIP: Don’t publish posts that make blatant marketing statements about the pandemic. Exploiting it will have a very negative affect on your brand and position in the community. You don’t want to appear to be taking advantage of a crisis.

Show up consistently: In this time of social distancing, take the chance to reconsider how you’ve been showing up.

Have your profiles been vacant lately?

Recommit to consistent participation on the platforms where your customers and community congregate. To use a phrase I learned from Simon Sinek, “Show up to give, not get.”

Be transparent and communicate regularly with customers: People are looking for answers to questions they have about what you sell, and existing customers want to know you’re going to be there when they need you.

People need to know the truth, no matter what it is. Let customers and prospects know: • If your hours have changed or if you’re selling by appointment only.

• That you’ve distributed hand sanitizer throughout your store.

• How the situation is affecting your business.

Make sure those updates are communicated clearly on your social media, website and Google My Business page.

Being up front about your issues helps mitigate long-term damage to your business and brand.

It’s OK to be the bearer of bad news as long as you’re truthful, forthright and willing to admit when you misspoke. That’s true leadership.

Review your Google and Facebook ads: If your business is changing its service model, such as selling online only, make sure you don’t have any ads that encourage store visits. FYI, Google and Facebook have denied any type of “coronavirus specials” ads.

PRO TIP: Keep an eye on your Facebook and Instagram ads comments sections. No matter who you are or what you sell, you are more likely to get negative comments now just because there’s increased anxiety everywhere.

Allow yourself some room to cope: None of us are perfect. You’re going to need a daily practice to keep things in perspective. Yoga, meditation, walks in nature, hanging out with animals and volunteering are my go-tos.

Without some sort of coping mechanism, your business will suffer. Make the commitment to yourself right now so the anxiety and panic around you doesn’t sink in. Don’t be afraid to share your challenges with others: Keeping up a facade is exhausting. It’s OK to show your struggles, because we all have them.

I’ve also seen some of the greatest solutions to problems come from social media threads. No matter what happens in the coming weeks and months, we know it won’t last forever. Revise your social media strategy now so customers and prospects know you care – and that you’ll still be here when restrictions are lifted. n Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc., which coaches, trains and delivers webinars focused on integrating social media and online reputation management into dealership operations. kathi@krusecontrolinc.com.

Choose a platform where you can go a little deeper: In times of uncertainty, it can help you feel better to be more real and more authentic. I love the idea of a regular newsletter like Ann Handley’s Total Annarchy (annhandley.com/newsletter).

You can deepen your existing relationships and invite your social media followers who might be craving deeper connections, too.

THE FRONT ROW | WSIADA.COM Sep/Oct 2021 | 13

When the Market Heats Up, Get Ready for Change!

BY RONNIE WENDT Temperatures are not the only thing heating up as we head into the dog days of summer. The market for new and used cars is hot, hot, hot.

Acura, cautions dealers to proceed with caution. “The seeds of failure are often planted in the soil of success,” he says.

Pent up desires for new vehicles after the pandemic shutdown has driven up demand as inventory falls to record lows.

Yes, consumers want cars, reports the leader of the Queens, New York, dealership rated as the No. 1 Certified Honda and Acura dealership in the world. But, he warns, dealers have been here before.

Besides producing heightened demand, the pandemic generated a semiconductor chip shortage that is pressing vehicle inventory levels as more people seek to buy. Top auto manufacturers warn that without needed chips a potential 1.3-million shortfall in U.S. car and light-duty truck inventory.

Dealers are already reeling from inventory shortages. Cox Automotive subsidiary vAuto put current vehicle inventories at a 44day supply in May and warned that supply may bottom out in the low 30s. Historically, supply averages 60 days.

Jimmy Ellis, CEO of Jim Ellis Automotive Group, views the inventory shortage as an opportunity for savvy dealerships. He says, resilient dealers able to navigate things like the financial market collapse of the Great Recession, interest as high as 21% in the early 1980s, and the oil embargo of 1973, will meet these new challenges with success.

“The current inventory shortage at a time of higher demand is driving up market transaction prices on new and pre-owned vehicles,” he says. “Auto dealers are operating out of inventories they have never seen so low. We now must sell into the pipeline.”

Dealers are now taking orders on incoming vehicles instead of selling out of floor plan inventory. “That is a paradigm shift for many dealerships, particularly for brands like Ford or Chevrolet that historically have a 60- to 90-day supply. But we are learning through this process that it’s more profitable to not have inventory sitting, waiting for someone to buy it,” he says.

Booming market aside, industry veteran Brian Benstock, general manager and vice president of Paragon Honda and Paragon 14 | THE FRONT ROW | WSIADA.COM Sep/Oct 2021

He explains dealers created waiting lists in other times of high demand. Customers placed deposits for vehicles and waited for manufacturers to build their rides. But they did this with multiple dealerships fueling unrealistic demand forecasts.

“Whoever received the vehicle first got the business, and the customer cancelled their order at the other dealerships and got their deposits back,” he says. “Sometimes waiting lists show a false sense of urgency or demand as customers go from dealership to dealership and place deposits.”

In the end, dealerships wind up with sitting inventory. “And when vehicles sit, margin compression results,” he says.

Irrational Exuberance Will End In a speech during the dot-com bubble of the 1990s, Federal Reserve Board Chairman Alan Greenspan coined the phrase “irrational exuberance” as a warning that the stock market may be overvalued.

One might apply the same phrase to today’s auto market, warns Benstock.

Consider that Auto Trader cited May 2021 as the strongest May on record for new and used car performance. Its report put May 2021 new car sales at 14% higher than May 2019 volumes. This strong performance continued in the first weeks of June, with sales soaring 15% over the same period in 2019.

Demand is driving up prices. J.D. Power reported the average new car price shattered records in May, coming in at

over $38,000, which is 12% higher than the same period a year ago.

Used car sales share a similar story.

Preowned vehicles are selling for more than they did new. For example, a 2019 Hyundai Tucson Limited that sold for $31,935 new might now net $35,150.

This phenomenon is irrational and “any time there is irrational exuberance, rational thinking will come back,” Benstock says. He stresses dealers must prepare now for that eventual reality.

“We need to repair the roof while the sun is still shining, and the sun is shining right now,” he says. “It is a good time for us to reinvest in our people, our facilities, and in the fundamentals. At some point, we are going to have normalization of factors that are currently abnormal, such as interest rates, consumer demand, and inventory demand.”

Benstock sees too many dealers acting like they created the booming market rather than economic forces. “These dealers might be in for a surprise,” he says. “This is not normal, and I don’t think it’s sustainable.”

He warns this is “not the time to pat yourself on the back.” Rather it’s time to examine what to add to profit structure that will remain after markets normalize. What improvements can be made in the sales process? What initiatives might provide an advantage in a flatter market? Streamline personnel so that fewer people handle each transaction. Look for ways to remove expense from every sale.

“You need to be disciplined,” he says. “Work your tail off because the harvest is here. Reap the money but save it and reinvest in your business. This is a good time to get ahead and to clean up your balance sheets.”

Dive into the Data Knowing that margin compression may take hold and take hold quickly, Benstock reminds dealers to stay agile and stick with

the fundamentals. “Old cars are old cars,” he says. “We don’t keep old cars. Try to get a reasonable profit on your investment but keep your inventory fresh.”

He advises training a close eye on daily changes because when the market shifts, it will do so quickly. Review multiple data points, information from the OEM, and Automotive 20 groups. Monitor basic economic conditions and interest rates because “when inflation gets out of control, we will see shifts in demand,” he says.

“You need to look at the data daily. You don’t need to react daily, but you need to watch what’s happening daily,” he says, noting dealers who do this will spot slipping sales and margins early.

Maximize Marketing “What’s the best way to get margin on a car?” Benstock asks. “Having 10 customers who want the same car. But how do you get

10 people to want the same car?”. In a word, “Marketing,” he says.

Dealers may back away from marketing in abundant times but Benstock calls this idea “counterintuitive” in times of scarce supply.

Today’s consumer searches for the vehicles they want online before they set foot on dealership lots. A dealer a block away from their house may have the car they want but miss out on the sale without marketing.

The consumer may buy that vehicle from a dealership 50 miles away because the local dealer did not advertise.

“That’s a missed opportunity,” Benstock says.

Dealers sometimes think marketing isn’t needed in a hot market. After all, odds are good that someone wants the car. But marketing drives higher margins and keeps inventory fresh. “Don’t hold out for too much money on your used cars, keep your

inventory fresh,” he says. “When the market shifts, it shifts pretty quickly. If you have aging cars in your inventory, you could be holding 100 used cars when the price drops $2,000 a car.”

What Lies Ahead Isaac Newton said, “What goes up must come down.” Just as a ball thrown into the air eventually falls to the earth, soaring sales will eventually return to normal levels.

Benstock predicts sales will normalize over the next 12-18 months, however, in the ensuing 5 years the industry will appear radically different.

“Electrification, online retail and things like that will continue to gain momentum,” he says. “And in each area, someone will get it right. Some major player, some technology advancement, from outside the industry, could change everything.” n

THE FRONT ROW | WSIADA.COM Sep/Oct 2021 | 15

16 | THE FRONT ROW | WSIADA.COM Sep/Oct 2021

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THE FRONT ROW | WSIADA.COM Sep/Oct 2021 | 17

WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION

DEALER MEMBER ENROLLMENT

YES!

ENROLL Member Name

I know that it is important to be recognized as a professional in the automotive industry! Enclosed are my annual dues to ensure that my business has all the advantages WSIADA/NIADA provides to put me at the forefront of my profession. By completing this form, I am consenting to and giving

Business Name Dealer No.

DEALER MEMBERSHIP: Dealer Membership is [a] limited to any sole

proprietorship, partnership or corporation which is engaged in buying and selling motor vehicles as a principal part of its business; and [b] member must hold a vehicle dealer’s license issued by the Washington State Department of Licensing.

FEE: $450 Annual Charge (payable by debit/credit card or company check)

WSIADA/NIADA, their affiliates and/or subsidiaries, my permission to contact me at the methods I have provided on this form until/unless I revoke that permission in writing. I hereby certify that (I am/we are) eligible for membership in WSIADA.

CONTACT INFORMATION Billing Address City State Zip County Business Phone Mobile Fax Email

PAYMENT METHOD

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

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

DELIVER TO

WSIADA FAX EMAIL (as an attachment) ENROLL ONLINE 707 Auburn Way South 253-804-0844 membership@wsiada.com wsiada.com

Auburn, WA 98002

QUESTIONS? (253) 735-0267

18 | THE FRONT ROW | WSIADA.COM Sep/Oct 2021

FLOORPLAN FEATURE

How to Retool Your Floorplan for Today’s Market

BY TRAVIS PETERSON, PRODUCT OWNER, ONE VIEW

Floor planning is not a new topic, but it’s gotten a lot more interesting lately. As Auto News reported in a recent article, floorplan swung from a $96-per-vehicle-expense on average in 2019 to a $140-per-vehicle gain last year. The gains are attributed to slim vehicle inventories, low-interest rates, and credits from OEMs. Unfortunately, this is probably a one-time thing. OEM subsidies have died down, and gains resulting from new-vehicle floorplans are going to be offset by high used-vehicle floorplans.

We’re also likely looking at a permanent change in our industry when it comes to inventory. Many experts predict we’ll never go back to high, high levels of inventory and slower turn. I believe this is a good development for our industry. Excess inventory is a waste and accrues unnecessary interest expenses.

With so many factors in flux, a hard look at your floor planning is in order. Get started with these proactive tips: Audit your floor planning. Audit your floor plan lenders and interest rates. Recordlow interest rates mean now is the time to renegotiate. Research what various financial institutions are offering and compare against your current lender. You may be able to get a better deal.

Beware of overleveraging used cars. Skyhigh demand for used vehicles has many dealers paying up to 120% of market value.

That’s not a problem if you can turn those vehicles quickly for a profit. But beware of changing market conditions and buying the wrong inventory. The market will correct as OEMs push out more new vehicles. Floor planning an expensive used car that sits on your lot may result in a debt burden that wipes out any profit. Ensure you’re only buying your core used vehicles – those that

turn quickly for higher-than-average profit – and be ready to re-price quickly if the market changes so you can avoid taking a loss at auction.

Monitor your curtailment period. You likely pay interest-only on your inventory for a certain amount of time. After that, your curtailment period kicks in, and you’re paying both interest and principal. Your curtailment period also runs for a certain amount of time, and if that time runs out and the unit is still sitting on your lot, the lender has the right to demand full payment. It’s crucial to stay on top of these timelines. Miss a deadline and your costs can go up precipitously. While this may not be a big concern now, it will be when the bubble bursts.

Stay in trust with your vehicles. Selling out of trust can be a criminal offense, leaving you vulnerable to civil litigation and even causing you to lose your dealer license. Dealership groups that divert money away from paying loans and toward other business expenses may have grown too quickly or had poor cash management strategies. If you’re facing a cash crunch, one of the worst things you can do is let a few vehicle sales go out of trust

and expect to make it up the following week.

Experts know how quickly that can snowball.

If you’re struggling, reach out to your lender first and see if they will work with you. Most will help guide you through difficult times.

Going out of trust can also happen under the radar. An Auto News article reported on a dealer who went out of trust because his business manager quit, and the replacement, new to the industry, thought it was okay to prepay trades and let the flooring loan float for a few days.

Research floor planning solutions. As a former Controller, I know how timeconsuming managing floor planning can be. Excel isn’t up to the job, so take the time to research floor planning solutions that manage and help audit your data to ensure your balances match up. Nobody is perfect, and a slight discrepancy can become a big problem.

Our industry will always rely on floor plan lending to keep new and used cars on the ground. The uncertainties of today’s market bring opportunities to manage and retool your floorplan to keep expenses down and minimize risk as our industry changes. n THE FRONT ROW | WSIADA.COM Sep/Oct 2021 | 19

READ & RESPOND SEP/OCT 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 Dealer No. Date Quiz Taker’s Name Signature Email Position Business Phone Fax CIRCLE THE CORRECT ANSWER. 1. Predictions in sales will normalize

over what expected timeframe? a) 6 – 9 months b) 12 – 18 months c) 14 - 20 months d) 24 – 36 months

2. The test drive/demo permit is available at the Association for unaccompanied test drives? a) True b) False 3. When purchasing from a flooring company, it is wise to ensure you are only buying which product for your dealership? a) Available used vehicles b) High Mileage used vehicles c) Excess used vehicles d) Core used vehicles 4. It’s wise to ignore your Facebook and Instagram comment sections with social media? a) True b) False (It’s best to keep an Eye

on them always.)

20 | THE FRONT ROW | WSIADA.COM Sep/Oct 2021

5. WSIADA Executive Director Brian Dansel’s goal is to have more membership involvement in which industry-related subject? a) Training seminars b) Auction savings c) Legislative sessions d) Accounting

8. After a certain period of time, your dealerships may pay for interest and principal with floorplans.

What is this period called? a) Competition Period b) Peak Demand Period c) Curtailment Period d) Deadline Period

6. Which federal agency has created a cloud-based dashboard to search auto safety recall data? a) National Highway Transportation Safety

Administration (NHTSA) b) Federal Trade Commission (FTC) c) Consumer Financial Protection Bureau (CFPB) d) Customs & Border Protection (CBP)

9. Which of the following can create huge losses with unaccompanied test drives for an auto dealer? a) Liability b) Property Damage c) Theft d) False Pretenses of Policies e) All of the above f) None of the above

7. Which state recently approved an update to their Right to Repair law? a) Mississippi b) Minnesota c) Massachusetts d) Montana

10. Electrification and online retail are gaining momentum which will cause the industry to radically change in the next 3 years? a) True b) False (correct answer is 5 years)

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