Issuu

The official publication of the Washington State Independent Auto Dealers Association

July July| |August 2021

FEATURING FLOORPLAN FINANCING BUSHING RULES IN WASHINGTON STATE WELL, WHAT DID YOU EXPECT?!

TABLE OF CONTENTS July | August 2021

The official magazine of the

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

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

MEMBER

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

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

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

2 |

Events Calendar Auction Listings

5 |

Executive Director’s Corner

6 |

Mac Ruddell Scholarship Awardees

8 |

Bushing Guidelines Statewide Shortage License Plates

10 |

Enrollment Form

12 |

Well, What Did You Expect?!

14 |

Floorplan Financing: What You Need to Know

16 |

Washington Update NIADA Government Report

18 |

Associate Members’ Update

19 |

Service Provider Directory

20 |

Read & Respond: Continuing Ed Quiz

the Front Row | wsiada.com | July/August 2021 |

EVENTS CALENDAR T ITLE W ORKSHOP

C HAPTER M EETINGS

July 15, 2021 | 9am – 12pm

Please RSVP online at wsiada.com/chapters

August 12, 2021 | 9am – 12pm

October 4, 2021 | Spokane October 18, 2021 | Tri-Cities October 19, 2021 | Yakima

E DUCATION F AIR

October 26, 2021 | North Cascade November 1, 2021 | South Sound November 8, 2021 | Vancouver

AUCTION LISTINGS For a current calendar view, visit WSIADA.com and select “Calendar” from the top navigation menu Adesa | adesa.com/seattle Tuesday: Consignment @ 9:30AM

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

IAA - Insurance Auto Auctions Spokane (509) 891-2388; See website for dates and times

Alternate Tuesday: Specialty @ 8:30AM

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

Kaman | kamanauctions.com Thursday @ Noon

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

Kaman | kamanauctions.com Thursday @ Noon

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

Monthly RV auctions: 11AM (Lane 8)

Copart | copart.com Times vary: Consult website

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

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

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

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

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

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

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

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

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Manheim | Seattle manheim.com/locations/SSAA/events Monday: OVE Event Sales Tuesday: Alternate weeks Ford Factory (Closed sale) @ 10AM; Crossborder Mobile Sale @ 1PM Wednesday: General Sale Weekly @ 9AM All sale dates and times are subject to change. Please verify with the Auction or manheim.com.

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

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

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707 Auburn Way South Auburn, WA 98002

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

EXECUTIVE DIRECTOR’S CORNER

Brian Dansel Executive Director WSIADA

s we approach the dog days of summer, WSIADA is

gearing up for two education conventions, as well as scheduling our chapter meetings. I have been able to start getting out and visiting your dealerships, and I can tell there is an appetite for many people to get involved given some of the mandates that have been handed down.

As we have announced, there will be two education conventions this year—one in Spokane and one in SeaTac. We are thrilled to host in-person conventions again, and look forward to seeing you there. Looking forward, my vision is to combine the two events into one. We live in a diverse and sometimes geographically challenging state, but I feel there is a real value to bringing everybody together in one sitting to discuss the issues of the day. In our meetings with the various Auction Houses, we understand that most will be opening up more fully to coincide with Governor Inslee’s reopening date of July 1st. Among the Dealers we have spoken with there seems to be folks who wish to continue with the online platform, and others who wish to get back to live, in-person auctions. The Auction

Houses all seem to want to offer both moving forward, and at least until they are sure that Governor Inslee’s reopening date doesn’t change. We will be monitoring this for you, and of course reporting any changes. Finally, thank you all for what you do. It is an honor to represent the Independent Auto Dealers of this state. We know that we are only as good as the information we are receiving and to that end, please be sure to reach out if you have any ideas for how we can be doing things better. My email is executivedirector@wsiada.com and my phone number is (253) 397-3063. Sincerely,

Brian Dansel

the Front Row | wsiada.com | July/August 2021 |

MAC RUDDELL SCHOLARSHIP AWARDEES

he WSIADA is proud to announce this year’s awardees of the Mac Ruddell Scholarship. This year, we are welcoming the grand-daughter of the Scholarship namesake, Mac Ruddell. The 2022 submission is now available online with the deadline as March 6, 2022.

Ryan Bjazevich

Margaret Ruddell

Sponsor: Grandstand Auto Sales, Richland WA

Sponsor: Ruddell Auto, Port Angeles, WA

College: Brigham Young University, Provo UT

College: Gonzaga University Spokane

Degree: Molecular Biology

Degree: Business and Psychology

I would like to thank the Washington State Independent Auto Dealers Association for awarding me the Mac Ruddell Scholarship. I am excited for what the future holds, and the possibilities that await as I continue further with my education. I am forever grateful for WSIADA for giving me assistance as I continue my educational dream.”

Coming from an automotive family and working in a dealership, I greatly appreciate the support from WSIADA to help me on my journey of pursuing my goals and dreams. I will be attending Gonzaga University in the Fall to study Business and Psychology, and I am forever grateful in being one of the recipients of the Mac Ruddell Scholarship.

Donations from Independent Auto Dealers helps drive this program for students like Ryan and Margaret. We would like to have more available for the scholarship in the future but the students need your help in getting there. The Association is grateful to the dealerships that have donated this year.

Dealership donations to Mac Ruddell Scholarship: $1000 - Motors Northwest (Tacoma) $100 - Carson Cars (Lynnwood) $100 - Triple C Auto LLC (Vancouver) $50 - Greenacres Auto Sales, Inc (Spokane) $50 - Market Place Auto (Puyallup) $50 - Tacoma Auto Exchange (Tacoma) $25 - Western AG Sales (Othello)

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BUSHING GUIDELINES

Dealer Obligations

Bushing Guidelines atg.wa.gov/bushing-scams

ushing occurs when a dealer attempts to change the terms of

a sale agreement more than four business days after the deal was signed. Also known as “spot delivery” or “yo-yo” sales, this switcheroo is strictly forbidden under Washington state law, RCW 46.70.180(4), and is a per se violation of the state Consumer Protection Act.

Under the law, car dealers are allowed four working days to find financing and finalize a sale after a buyer has signed a contingent contract. If the financing falls through, the dealer must tell the buyer that the contract is voided and return any initial payment or security given by the buyer, including but not limited to money, check, promissory note, vehicle keys, trade-in, or certificate of title. This must occur before renegotiating a new contract with different terms and before the end of the fourth working day If a dealer calls the buyer back more than four days after the contract was executed to change the deal (even if the new terms are favorable), bushing has occurred. Dealers often sell a trade-in vehicle within 24 hours of receiving it. The buyer should be entitled to the cash

value of the trade-in if the trade-in has been sold. If the dealer over-values the trade-in, the buyer is still entitled to the cash value of the trade-in as listed in the contract. Calculating business days

Car Sold:

Monday

Tuesday

Wednesday

Thursday

Fri, Sat, Sun

Car Deal Must Be Approved or Unwound By: COB that Friday COB the next Monday COB the next Tuesday COB the next Wednesday COB the next Thursday

STATEWIDE SHORTAGE LICENSE PLATES

“I

n summer 2020, Correctional Industries (CI) started experiencing license plate production issues due to COVID-

related reasons. While DOL’s Inventory Control team has been working with CI over the past 8 months to balance plate issuance statewide, the situation began to worsen in late April. Office inventory levels started to get dangerously low with a few Vehicle Licensing Offices (VLOs) briefly running out of inventory. Department of Continue on page 9

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Continued from page 8

Corrections (DOC) quickly responded with a plan to increase staffing at the prison and outsource production of license plates to another state. Production levels have increased; however, the gains are insufficient. The contract for the outsourcing effort will not be in place until July 31, 2021. The vendor anticipates shipping two truckloads, each with 100,000 sets of license plates. The first in approximately 4 weeks (plus 1 week for shipping). The second approximately 4 weeks after (again add time for shipping). This means we are looking at about mid-September for the first large production. The staffing increase solution implemented at CI in May has allowed us to triage supply challenges by shifting, balancing, and expediting partial or complete orders to make sure VLOs do not run out of inventory. However, we anticipate the situation will worsen, so we need to be prepared with an option should we run out of license plates to issue to customers. Solution: Provide paper temporary permits for transactions issuing license plates. The VLO performs the transaction, and then perform a second transaction to issue a temporary paper permit in DRIVES. The customer would place the temporary permit in their window in lieu of a license plate (similar to a temporary permit issued by a dealer when purchasing a vehicle). The office would contact the customer or mail the plates when they arrive.” All dealer transactions will have priority to receive standard plates unless inventory levels worsen, and we

have no other choice than to issue paper permits as a last resort. Paper plates will be provided by the department and or VLO if a standard plate is not issued.”

Odometer Disclosure Rule Update

If the transfer is a private party sale, and the buyer does not have an Odometer Disclosure Statement: •

If the seller is available, direct the buyer and seller to complete an Odometer Disclosure Statement.

•

If the seller is not available, have only the buyer complete an Odometer Disclosure Statement.

New Odometer Disclosure Rule Implementation The new rule is effective for all transfers after January 1, 2021. Updates for the new rule in DRIVES and ePermitting are part of the V12 update, starting Tuesday, July 6. All vehicles of model year 2010 and older that are already exempt from odometer disclosure remain exempt. Only vehicles of model year 2011 and newer are subject to the new odometer disclosure period of 20 years.

If the transfer is a dealer, RTTO, or auction house sale: •

If there is a WA record or out of state title with the prior odometer disclosure printed on it, enter the last disclosed mileage as the current mileage.

•

If you cannot find the last disclosed mileage, a new odometer between the dealer, RTTO, or auction house and buyer will be required.

Model Year 2011 Grace Period We are aware transactions will be presented for model year 2011 vehicles where the Odometer Disclosure Statement is required under the new rules but is not available because it wasn’t required at the time of sale, including: •

Vehicles accepted into dealer, registered tow truck operator (RTTO), or auction house inventory.

•

Private party sales where the seller is not in the office with the buyer to transfer title.

•

Mailed in title applications.

We are providing a grace period for transactions where the trade-in or purchase date is between January 1, 2021 and July 31, 2021.

Once you’ve completed the transaction, enter a note on the ownership account stating what you’ve done, per Communication 2021: 183-001.

New Odometer Disclosure Statements We are working to update the Odometer Disclosure Statement form to reflect this new rule. Until the new forms are available continue to use the existing form. You should inform customers about the new disclosure period when you provide them with the form. If you have questions, contact VVO Support.

please

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Washington State Independent Auto Dealers Association

Dealer Member Enrollment

YES! YES!

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

ENROLL: Member Name Business Name

Dealer No.

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

Billing Address City

State

Zip

Business Phone

Mobile

Fax

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

PAYMENT METHOD:

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

Discover

CARD NUMBER

AMEX

EXPIRATION DATE

NAME ON CARD

CARDHOLDER SIGNATURE

CCV

BILLING ZIP CODE

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

DELIVER TO: WSIADA 707 Auburn Way South Auburn, WA 98002

FAX 253-804-0844

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EMAIL(as an attachment) membership@wsiada.com

ENROLL ONLINE www.wsiada.com

WELL, WHAT DID YOU EXPECT?!

Todd Shepard, Founder Shepard & Shepard Insurance Solutions

“T

hat place has terrible service!”

Many of us have exclaimed this at least once. As business professionals we have developed a specific set of skills that help us easily spot poor service, poor follow up, and bad attitudes in other businesses. We are the Bryan Mills of the business world, identifying these issues in others and calling them out in person, online, or during a fiveminute rant behind the wheel.

is an EXPECTATION issue. When a customer takes the time to give you a negative review it is because his or her experience with your business does not align with the expectation he or she had of the overall experience. It is the responsibility of the business to set that expectation up front otherwise the customer or prospect is forced to create his own or rely on expectations implied by others. For an example of an expectation set by others we can look to the insurance industry. A prospect calls the agency to request a quote. The insurance agent collects the information over the phone and tells the prospect he will call them back as soon as he has the quote. The process of obtaining an insurance quote could take minutes or even days, sometimes

But what happens when the finger is pointed toward you or your business? Our initial response is to say, “A poor review? How can that be? We care about your customers and prospects. We offer all the latest online options, and our prices are extremely competitive. How dare that customer to make such a ludicrous statement. Poor service indeed!” Often this is followed by an attempt to get the review removed. So, what went wrong? Assuming you and your staff try your best to be attentive and accommodating to customers and prospects what could possibly prompt anyone to make such an accusation? The good news is it is most likely not a service issue, it

12 | the Front Row | wsiada.com | July/August 2021

even weeks depending on the type of policy they are seeking. The problem is the consumer is bombarded by TV, radio, or online ads daily telling him a quote takes 15 minutes or less. Unless the agent re-sets the expectation to fit the specific scenario the prospects expectation is exactly that, 15 minutes or less, so there he sits, waiting for a call back right away only to be disappointed when the phone doesn’t ring. The agent assumed the prospect should know it could take a few days rather than setting a clear expectation. Another example is when a prospect applies for financing from a car dealer. The dealer tells the prospect he will call them when the loan is approved but is not specific as to when. The prospect has seen many advertisements indicating ‘instant approval’ which, unless otherwise

indicated, is his expectation. If it takes a couple days the prospect becomes frustrated, assumes he isn’t approved, prompting him to continue shopping elsewhere. Again, a failure to set the proper expectation is to blame for this frustration. Setting proper expectations is a simple process. The easiest and most effective ways is to do so up front. Before the prospect or customer leaves your office or hangs up the phone all you need to do is set an appointment, including the date and time, for a follow up call. “Mr. Customer, usually the approval process takes a

few (hours, days, weeks). I will begin working on this for you and would like to call you Wednesday at 2pm with an update, would that work for you?” Once you confirm the date and time you put it in your calendar and make darned sure you follow up at the exact time (or before) you committed to. To set the expectation even better you could consider a follow up text or email recapping your conversation and include the scheduled follow up appointment. Make sure you clarify the number your prospect or customer wishes you to call so there is no confusion (cell, home, or office number).

This process works in all scenarios of sales or service. An auto mechanic setting a clear expectation as to the time needed for repairs, an insurance agent assisting on a claim, an attorney following up on a lawsuit, or a medical facility processing the results of an exam will all benefit when their customers know what to expect and the overall experience becomes more enjoyable for all parties. Todd Shepard is the founder of Shepard & Shepard Insurance Solutions and regular contributor to the Front Row. For more information or a competitive insurance quote visit www.shepquote.com or call 855-396-0488

the Front Row | wsiada.com | July/August 2021 |

FLOORPLAN FINANCING: WHAT YOU NEED TO KNOW

and direct costs can help you understand the relationship between your floorplan provider and your dealership’s bottom line.

Joe Keadle UCDMagazine.com

n today’s marketplace, your dealership’s profit centers are being squeezed from multiple angles. Many dealerships turn to a floorplan provider to have enough liquidity to acquire the right inventory and stock their lots at the right level. A floorplan provider should be viewed as a tool for success and must be managed and understood to benefit your dealership’s bottom line. A floorplan can be a key to your inventory management and acquisition strategies. It’s vital to consistently evaluate your floorplan options to maximize their value. Begin by analyzing both indirect and direct costs, including the level of service, cash flow flexibility, inventory acquisition options, interest and fee structure, along with recurring ancillary fees. Maybe you’re thinking, “This is starting to sound like work:’ But floorplan expense is typically the second-largest expense item for an independent dealership, behind only employee costs. A

thorough

review

That said, it’s unwise to evaluate a floorplan provider on a straight cost basis alone. The ability to source the inventory that best fits your dealership’s needs at the lowest cost and with the least difficulty is not a straightforward effective interest rate question. It’s also a question of service. Level of Service Cost alone does not determine which floorplan provider is the best fit for your dealership.

•

Is the floorplan easy to use and transparent on its billing statements?

•

What are the audit guidelines? What is the audit experience like?

Floorplan providers’ service characteristics vary greatly. Determine which best suits your dealership’s business needs. In today’s marketplace, floorplan capital is limited and providers are conservative in their lending approaches. Develop a strong relationship - a partnership - with your provider. Keep in touch and develop relationships up and down the organization, not just with a single person. Protect your floorplan relationships by: •

Proactively managing your floorplan, communicating promptly and frequently.

•

Being timely with your payoffs.

•

Having clean audits and being a low-maintenance client.

•

Helping your provider realize partnering with you and helping you grow more profitable and stable decreases its risk.

•

Once you’ve assessed the service level and potential fit for your dealership’s needs, evaluate the cost involved with receiving that service level.

Review your business model and identify specific characteristics that impact your dealership. Ask yourself: •

Can I floor the type of inventory I typically stock or are there restrictions on the age, mileage and floorplan advance (amount the provider will floor per unit) of your inventory?

•

What are the costs and/or advance restrictions on where you source the vehicle (auction, trade-in, wholesale, etc.)?

•

What’s the policy for floorplanning a trade-in? Can the provider help fund the customer’s payoff to preserve your cash flow?

indirect

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Direct Costs Operating a dealership is a cashintensive business, so review the

effects of your floorplans on your dealership’s cash flow. •

When is your first principal reduction (curtailment) due?

•

How much are the curtailments per unit: 5 percent, 10 percent or more of the principal balance?

•

When does that aged unit become due for full payoff?

•

What time frame does the floorplan provider allow for you to pay off a sold unit?

•

Are there time allowances for a unit you have not received loan funding for?

•

Can you source inventory beyond floorplan-affiliated auctions?

•

Can you floorplan tradeins and other vehicles acquired outside of auto auctions? If so, are there advance restrictions that could tie up some of your cash flow?

The simplest way to analyze multiple floorplans is to review the direct costs to determine the total cost for each provider. Often the base terms of a floorplan are easily understood but other related fees are not readily apparent. Review your entire billing statement and request the floorplanner’s standard fee list to ensure all initial floor fees, monthly audit fees, curtailment fees (paid in addition to the actual curtailment), payoff fees and additional floor fees for outside

auction purchases are included in your calculations. Indirect Costs Review the time involved in managing a floorplan and allocate the average hourly cost of the employee(s) involved. That expense is directly related to your ease of doing business with the floorplanner. Can you source inventory without hurdles and roadblocks? Does your provider have restrictions that impede your ability to make inventory acquisition decisions to improve your dealership’s profitability?

You might find having multiple floorplan providers works best for you because the different providers fulfill different inventory needs. But check with your provider to see if it allows multiple floorplan lines or if a particular provider requires that its line holds the first UCC-1 position. Those simple assessment methods can help you determine the best value for your specific needs based on service and cost. As many of us have said while selling a customer a vehicle, the lowest cost does not necessarily mean the best value.

the Front Row | wsiada.com | July/August 2021 |

WASHINGTON UPDATE NIADA Government Report

of sources that includes repurposing unused COVID relief funds, indexing the gas tax to inflation, a surcharge on electric vehicles and privatesector investments.

Brett Scott, NIADA Vice-President of Government Affairs

IADA is your voice in Washington D.C.,

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

Legislative Infrastructure: After negotiations between the Administration and Senate Republicans over President Biden’s multitrillion-dollar infrastructure plan broke down, a bipartisan group of 20 senators stepped in with a compromise plan that at press time seemed to be gaining traction. The group, led by Sens. Kyrsten Sinema (D-Ariz.) and Rob Portman (R-Ohio), has proposed a package that would cost $973 billion over five years or $1.2 trillion over eight, and it focuses on traditional infrastructure, including roads, bridges, rail transportation, ports, airports, water, power and broadband.

The White House and some Democrats have balked at that plan, preferring to fund the bill by raising income taxes on corporations and individuals earning more than $400,000 per year. As talks continue on that plan, Sen. Bernie Sanders (I-Vt.), chairman of the Senate Budget Committee, and more liberal Democrats are backing a massive $6 trillion proposal that would begin with infrastructure but would also include funding for child care, health care, addressing climate change, pre-kindergarten and community college access, job training and an expansion of Medicare. Passing that package through budget reconciliation would require the support of all 50 Democratic senators, which will be difficult given the opposition of moderates such as Sinema and Sen. Joe Manchin (D-W. Va.) to such huge price tags. Recalls: Sens. Richard Blumenthal (D-Conn.) and Edward Markey (D-Mass.) introduced an amendment

The proposal would not alter the current tax structure – the projects would be paid for with a combination

16 | the Front Row | wsiada.com | July/August 2021

to ban the sale of all vehicles with an open recall as part of the Surface Transportation Investment Act, a $78 billion package addressing issues involving vehicles, highways and rail transportation that was being considered by the Senate Commerce, Science and Transportation Committee. But with the help of a strong lobbying effort by NIADA and its members, in conjunction with other auto industry organizations, the amendment was withdrawn before it could be voted on. The bill – without the Blumenthal amendment – was approved by the committee by an overwhelming 25-3 margin and now moves on to the full Senate. Clean Energy for America Act: The bill, which would consolidate more than 40 energy tax incentives into one set of emissions-based provisions to encourage clean electricity, clean transportation and energy efficiency, advanced to the full Senate following a tie vote along party lines in the Senate Finance Committee. The bill would increase tax incentives for consumers buying electric vehicles from $7,500 to up to $12,500, adding $2,500 if the vehicle is assembled in

the U.S., and another $2,500 if it is assembled by union workers. Regulatory Federal Trade Commission: Lina Khan, a Columbia University law professor known as a strong critic of the technology industry’s biggest players, has been named by President Biden to chair the FTC. Khan, 32, became the youngest FTC chair in history just hours after she was confirmed to a position on the commission by a 69-28 vote of the Senate. The President did not announce his intention to elevate Khan to the FTC’s top position before her confirmation. Next up for regulatory nominations is the Consumer Financial Protection Bureau. Biden’s choice for CFPB director is Rohit Chopra, who has made it clear he intends to return the bureau to the “regulation by enforcement” philosophy of former director Richard Cordray.

Chopra’s nomination advanced to the full Senate without the recommendation of the Senate Banking Committee, which split in a 12-12 vote along party lines. At press time, a floor vote on Chopra had not yet been scheduled. PAC NIADA-PAC’s Coffee With Congress series got off to a strong start last month with three very successful virtual events. The 45-minute to one-hour online conversations give NIADA members the opportunity to talk to the U.S. representative from their district to get the inside scoop of what’s happening in Washington D.C., and ask them hard questions about policy that could affect their businesses. The recent events featured Rep. Robert Aderholt (R-Ala.), a member of the powerful House Appropriations Committee, Rep. Mike Rogers (R-Ala.),

who sits on the House Armed Services Committee, and Rep. Buddy Carter (R-Ga.), who serves on the House Energy and Commerce Committee. The wide-ranging conversations covered topics such as infrastructure negotiations, corporate tax increases, recall legislation, electric vehicles and the 2022 midterm election outlook. Dealers also asked the congressmen about CFPB regulations, potential attempts to pack the Supreme Court, their thoughts and concerns about removing the Senate filibuster and other topics NIADA continues to monitor. GRASS ROOTS New Jersey: New Jersey could soon become the latest state to allow vehicle sales to be completed entirely online, thanks to a bill passed last month by the state legislature. The bill, which would authorize the use of electronic signatures on vehicle purchase documents in place of the ink signatures currently required, was sent to Gov. Phil Murphy, who was expected to sign it into law. Murphy, who had not yet signed the bill at press time, temporarily authorized online and remote vehicle sales through an executive order in March 2020 after COVID-19 restrictions closed dealerships. Brett Scott is NIADA vice president of government affairs.

the Front Row | wsiada.com | July/August 2021 |

ASSOCIATE MEMBERS’ UPDATE

ealerships that utilize our Associate Members in the Service

Provider Directory in each magazine, on WSIADA.com and in the mobile app often find better deals or discounts. These can help lower costly overhead with operations and give your dealership additional support in your business’ growth. Associate membership will be slightly changing next year to incorporate additional features like digital communication with members, 2022 Education Fair/Convention, and more. If a dealership has an industry-related recommendation, contact staff@wsiada.com. We will follow up with the lead and work with them to join the Association.

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SERVICE PROVIDER DIRECTORY WSIADA Service Providers know need as a dealer. When you’re that support your Washington (let them know you saw them

our industry and understand what you hiring professionals, support the ones Independent Auto Dealers Association listed as a WSIADA Service Provider).

Accounting & Tax Services

Yarbro Auctioneers

The F&I Group

RH2 | Rekdal Hopkins Howard

(509) 765-6869 yarbro.com

(360) 710-9545 info@thefandigroup.com

Benefits & Health Insurance

Floor Plan Companies”

Washington Retail Association

AFC

(360) 943-9198 waretailservices.com

(253) 333-0300 afcdealer.com

(800) 553-4070 acvauctions.comw

Bonds and Commercial Insurance

Legal Services

Farmers - Karen Dunn Insurance Agency

Davies Pearson, P.C.

Adesa Seattle

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

Auctions ACV Auctions

(253) 735-1600 adesa.com/Seattle

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

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

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

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

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

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

Shepard & Shepard Insurance Solutions (855) 396-0488 shepquote.com Learn more on page 11

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

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

Digital Marketing

Manheim Portland

Selly Automotive

(503) 286-3000 manheim.com

(650) 409-2526 sellyautomotive.com

Ehli Auctions

Sygnifi Networks

(253) 572-0990 ehliauctions.com

(833) 794-6434 sygnifi.com

Insurance Auto Auction (IAA) Seattle

321 Ignition

(206) 658-6900 iaai.com

(888) 725-7637 321ignition.com

Insurance Auto Auction (IAA) Spokane

Environmental Services

(509) 891-2388 iaai.com

EnviroStars

Kaman Auctions

(877) 220-7827 envirostars.org

(425) 640-5111 kamanauctions.com

Finance and Insurance

Manheim Seattle

Drive Dealer Solutions

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

(425) 321-2825 drivedealersolutions.com

(253) 620-1500 dpearson.com

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

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

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

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

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

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

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

Southwest Dealer Services (206) 571-3068 swds.net

the Front Row | wsiada.com | July/August 2021 |

READ AND RESPOND | JULY/AUGUST 2021

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

Dealership Name _________________________________ Check:

Dealer# __________________________

I have read and understand the disclaimer above.

Send your completed quiz to WSIADA. MAIL: 707 Auburn Way South; Auburn, WA 98002 FAX: 253-804-0844 EMAIL: education@wsiada.com

QuizTaker’s Name ________________________________ Position ________________________________ Email ______________________________ Signature ___________________________

Date ______________

Business Phone _____________________

Fax _____________________

Circle the correct answer. 1: Vehicle Licensing Offices will provide which document if a standard plate is not issued during the license plate shortage in Washington State. a. b. c. d.

A hard Temp Permit Reissue previous plate Handicap window placard Paper Plates

2: A buyer is not entitled to the cash value of the trade-in if the trade-in has been sold during the bushing period? a. TRUE b. FALSE

3: A floorplan provider should be viewed as which type of benefit for your dealerships bottom line? a. b. c. d.

Inventory Acquisition Cash flow flexibility Level of service A Tool for Success

4: When a customer leaves a negative review with a business, its usually due to which issue? a. b. c. d.

Expectation Issue Service Issue Sales Issue Staff Issue

5: Dealerships may continue to use this existing form until Department of Licensing issues the updated form. a. b. c. d.

Buyer’s Guide Title Application Bill of Sale Odometer Statement

6: The Federal Clean Energy for America Act would increase incentives for consumers buying electric vehicles from $7,500 to what amount? a. b. c. d.

$10,000 $12,500 $15,000 $17,500

7: A Spot Delivery, a sale agreement of more than four days, is a violation of which state Act? a. b. c. d.

Fair Credit Reporting Act Consumer Protection Act Truth in Lending Act Federal Odometer Act

8: The WSIADA Education Fair’s gives dealers the opportunity to do the following a. Speak with State Agencies presenters b. Meet with other dealers for prospective business relationships c. Earn entire education credits for renewal requirements d. Meet with vendors for business growth potential

9: Car dealers are allowed how many working days to find financing and finalize a sale after a buyer has signed a contract? a. b. c. d.

3 4 7 14

10: DRIVE and E-Permitting underwent a system update on which date to include the new NTHSA 20-year Odometer Disclosure requirements? a. b. c. d.

January 1, 2021 July 4, 2021 July 5, 2021 July 6, 2021

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

20 | the Front Row | wsiada.com | July/August 2021

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

Download the WSIADA App Today! Online shopping, e-news, alerts and more!

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

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