ALSO News From The Iowa Statehouse PLUS Guide to Record Retention

MOBILE COMMERCE TAKES CENTER STAGE

APR

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PRSRT Standard

U.S. Postage

PAIDDALLAS, TEXAS

Permit No. 2079

I O W A I N D E P E N D E N T A U T O M O B I L E D E A L E R S A S S O C I A T I O N

STREET SMARTPRSRT Standard

U.S. Postage

PAIDDALLAS, TEXAS

Permit No. 2079

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Lifetime Engine Warranty, Limited Warranty, Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VSCs are backed by Old Republic Insurance Company. GAP, Lifetime Engine Warranty and Limited Warranty are not available in NY. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.

Vehicle Service Contracts I GAP Coverage I Credit Insurance

Lifetime Engine Warranty I Limited Warranty I Dealer Participation Programs

F&I Training I Advanced F&I Technology

866.927.2914www.protectiveassetprotection.com

To install TSP in your dealership, contact Protective’s Iowa

representative, Mark Wheeler.

Looking to increase revenue with your service department?

Your solution is our TSP Vehicle Service Contract Program!TSP is sold exclusively in the service department.

To learn more about TSP go to www.youtube.com and type “Total Service Protection Video” (including quotation marks) in the search field.

We provide your service department with a

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Call us today to schedule

your appointment for a Protective

representative to visit your dealership!

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ADVERTISERSINDEXADESA ........................................................ 7AutoTrader.com ........................... Back CoverManheim.com ..................... Inside Back CoverManheim Minneapolis .................................. 5Manheim Omaha ........................................15SmartAuction ................................................ 9Western General / Protective ....Inside Front Cover

INSIDE

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION

NIADA HEADQUARTERS:

STREET SMART IS PUBLISHED 6 TIMES PER YEAR BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES CORPORATION, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203; PHONE 817-640-3838. PERIODICALS POSTAGE PAID AT DALLAS, TX AND AT ADDITIONAL OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO NIADA STATE PUBLICATIONS, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203. THE STATEMENTS AND OPINIONS EXPRESSED HEREIN ARE THOSE OF THE INDI-VIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF STREET SMART OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEAR-ANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NIADA, DOES NOT CONSTITUTE AN EDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT© 2011 BY NIA-DA SERVICES, INC. ALL RIGHTS RESERVED.

EDITOR

Nieman Printing

CONTENTS 6 News From The Iowa Statehouse

12 Guide to Record Retention

13 Mobile Commerce Take Center Stage

B O A R D O F D I R E C T O R S

FOR INFORMATION ON HOW TO BECOME A

WWW.IOWAIADA.COM

PRESIDENTDouglas Livy, Jr.Quality Motors of Ames, Ltd.705 S. Duff AvenueAmes, Iowa 50010Ph: 515-232-1780

CHAIRMAN OF THE BOARDLouise Cordes Jim Cordes Motors, Inc.104 E. Main St., P.O. Box 68New London, Iowa 52645 1-319-367-2271

VICE PRESIDENTDavid A. FarmerDavid A. Farmer, Inc.1613 FranklinCenter Point, Iowa 522131-319-848-2432

TREASURERJudy Wilson409 E. Market StreetP.O.Box 337 Panora, Ia. 50216Ph: 641-755-4177

REPRESENTATIVESMerrill HitchcockMerrill’s Garage317 N. 8th StreetWinterset, Ia. 50273Ph: 515-462-1683

Roger PoulsenThe Car Guys1301 S.W. 7th StreetAtlantic, Ia. 50022Ph: 712-243-6915

Robert PippertPippert Cars & Trucks2047 Highway T-47P.O. Box BGladbrook, Iowa 50635641-473-3121

Clay WinterboerCarroll Car Credit Co.409 E. 6th St., Box 805Carroll, Ia. 51401Ph: 712-792-0140

Jim HarbachJ’s Auto945 E. MainManchester, Ia. 52057Ph: 563-927-2811

Doug WilsonLake Country Auto409 East Market St.P.O. Box 341Panora, Iowa 50216641-755-3048

ADMINISTRATIVE OFFICES409 East Market StreetP.O. Box 337Panora, Iowa 50216Ph: 641-755-4177Fax: 641-755-3247Email: iiada@netins.netToll Free: 866-962-9202IIADAOFFICE

N E W M E M B E R B E N E F I T S

� You don’t buy a newspaper, you buy the news� You don’t buy life insurance, you buy security for others� You don’t buy glasses, you buy vision� You don’t buy awnings, you buy shade� You don’t buy membership in IIADA, you buy cooperation of the ablest men and

women in your profession with whom you can join hands to accomplish things you could not do alone.

YES, IT COSTS TO JOIN IIADA – BUT IT PAYS TO BELONG

THINK ABOUT IT

I N F O R M A T I O N L I N E

TOLL FREE: 1-866-908-4636The Motor Vehicle Investigations Information Line provides a way for the

investigative duties and responsibilities. This line is the primary point of contact to reach an investigator who is responsible for

investigations in a specific area of the State of Iowa. To ensure accurate information is provided, the Motor Vehicle Investigations Information Line is answered by a Motor Vehicle Enforcement Investigator.

The hours of operation are Monday through Friday 8:30 a.m. to 3:30 p.m. As this line receives numerous calls during the day, please leave a message if the line is busy and your call will be returned promptly.

Manheim, the world’s largest pro-vider of vehicle remarketing services, cares about its employees, the en-vironment and the communities it

serves. From fundraising drives and tutoring kids after school to supporting long-term conservation efforts, Man-heim and its employees are dedicated to giving back to their communities and know independent vehicle dealerships across the country share in this com-mitment.

For the first time this year, Manheim is recognizing and honoring those deal-erships by awarding the 2011 National Manheim Community Service Award at the 65th NIADA Annual Convention and Expo. For more information, con-tact Georgia Brown, NIADA director of education, at 817-640-3838 or down-load the nomination form at niada.com (click on the Manheim Dealers Edge link under the Services tab).

NIADA/Manheim Community Service Award

FEDERAL AGENCIES ISSUE PROPOSED RULES ON RISK-BASED PRICING NOTICES

The Federal Reserve Board and the Federal Trade Commission have issued a no-

tice of proposed rulemaking to adopt a new model form that includes a credit score

disclosure on risk-based pricing notices. The new model form would include a consumer’s credit score and information relating to that score. These proposed amendments reflect the new content requirements in section 615 (h) of the FCRA that were added by section 1100F of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The comment period closes April 14, 2011, and the proposed effective date is July 21, 2011. See Federal Register/Vol.76, No. 50/Tues-day, March 15, 2011/Proposed Rules, Docket No. R-1407

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Hello Dealers:

By the time this goes to print, Spring will be upon us. Are you ready? I don’t think that we have gone too far from last year’s Spring market. Cars were hard to come by a year ago and that is about the same this year. Numbers at the auto auctions seem to be about the same as a year ago and the prices have held the market up. The cheaper vehicles are still feeling the effects of the Cash for Clunkers program and the late models are in short supply due to factory cutbacks in production. All the signs are pointing towards a strong spring and summer market. Let’s hope they are right.

I hope to see lots of you at our State Convention. It is always lots of fun plus very educational. We will be recognizing the IIADA Quality Dealer and giving out scholarships to the sons and daughters of members or employees of members of IIADA. Also it’s a great time to meet with the vendors and the Midwest auction representatives that are there. Lot’s of fun, great food, educational classes, meeting new friends, seeing old friends and just a great “bang for your buck”. We have some great speakers lined up for this year that will be addressing some very meaningful topics. HOPE TO SEE YOU THERE!! April 8-9, 2011 – Lake Panorama National Resort and Conference on Lake Panorama, Panora, Iowa

Good SellingDoug Livy, President,IIADA

PRESIDENTS LETTER

Anyone can start selling cars using the

Internet, but those who are most successful

give buyers the right information during the

shopping process. Sellers can break through the clutter of online used car sales by giving consumers photos, compelling descriptions and vehicle history while they shop.

If you’re not already online, you need to be. Eighty percent of consumers today use the Internet to help find their next car. Furthermore, shoppers visit less than two dealerships before deciding to buy – conducting research online before visiting any lot.

Typically, they start by visiting third-party automalls like AutoTrader.com and Cars.com. A quick search can return hundreds of listings for vehicles similar in style and price. Since you can’t sell online shoppers face-to-face, your listings have to do the talking.

Focus your marketing efforts on two lead-generating areas that attract the most attention: Search Results Pages (SRPs) and Vehicle Details Pages (VDPs).

The SRPs and VDPs are the most

prominent places to communicate the value of your used car inventory online. When shoppers click on SRPs, they go to VDPs to browse additional photos, read about features, see the vehicle history and locate the seller. Getting shoppers to click on SRP listings generates more leads from your VDPs.

The vehicle description you provide on SRPs is your first opportunity to reach shoppers. Try to describe the car’s benefits as if shoppers were standing in front of you. Be brief but informative. For example, you might say, “this van comfortably fits up to eight people” or, “we offer low financing” or, “includes Free Carfax Vehicle History Report.” You don’t want potential customers glancing past your listings because they didn’t peak their interest.

Photos are another way seasoned online sellers grab the attention of used car shoppers on SRPs. Use the best image as the SRP ‘thumbnail’ image on SRPs and save detailed images for the VDP.

You can build confidence with online

consumers by linking Carfax Reports to SRP and VDP listings. Shoppers are more likely to buy from open and up-front sellers and your listings will stand out even more.

To connect with online shoppers, you need to think like them. By giving buyers relevant information to help them make an educated decision, you can compete online and sell cars faster.

Top dealers consistently get more leads because they pay attention to how their car listings appeal to online consumers. Make your SRPs stand out in the crowded online marketplace and more shoppers will click through to your VDPs. More clicks equals more leads and ultimately, more sales.

BY DALE POLLAK AND LANCE VICKERY Dale Pollak, founder of vAuto, is a highly sought-after authority on maximizing profits from used vehicle operations, working extensively with Dealer 20 Groups, Dealer Associations and large dealer enterprises across the country. In addition to his regular contributions to auto industry publications like Dealer Magazine, Pollak is a published author of 2 books, Velocity: From the Front Line to the Bottom Line and Velocity 2.0: Paint, Pixels and Profitability.Lance Vickery is director of dealer business at Carfax and has spent more than 25 years in the auto industry.

SALE

SO N L I N E S A L E S S U C C E S S :

LE T YOUR L IST INGS DO THE TALKING

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Unfortunately, by the time you

receive this information the Iowa

Legislature could have adjourned for

the year. That is the problem of having to write articles 2 months before Street Smart hits your mailbox, but we try to keep Iowa dealers informed.

You can go to our website: www.iowaiada.com and look under legislation and we will have updated information there about legislative activity.

The Iowa Automotive Recyclers Association (IAR) sponsored legislation which would require Iowa salvage auction pools to be licensed. The problem that many of you have voiced your opinion upon is (1) several of these auctions are selling wrecked or salvage title cars to the general public (2) these buyers are not licensed or regulated and there seems to be no way of tracking these purchases (3) many of these buyers are standing in the auction lanes competing for inventory or parts vehicles with licensed recyclers. IAR has worked very hard on this issue for a number of years. Those who are licensed and regulated are forced to compete with some buyers who care little about the environment and do not repair vehicles to the standards that licensed recyclers do.

This measure, called Senate Study Bill 1137, failed to pass out of a Senate Transportation sub-committee on Feb. 23rd and therefore will receive no action during the 2011 legislative session. IIADA sponsored S.F. 409

which is an anti-curbstoning bill. The bill passed the Iowa senate on March 10th and as of this writing is in an Iowa House transportation sub-committee awaiting action. This measure would prohibit a person from parking a motor vehicle on a street or highway, a public parking lot, or other public property or private property where the public has the right to travel for the principal purpose and intent of displaying the motor vehicle for sale, hire or rental unless the display is specifically authorized for that location. This would not interfere with a dealer’s right to park vehicles at their own location or at fairs, etc, and it would not prohibit a private party from selling their vehicle from their own property. Municipalities and counties would be allowed to enforce these new parking restrictions and could include issuance of citations, assess fines, removal of vehicles, storage of impounded vehicles and a process for identifying a vehicles owner.

The only way to stop a curbstoner is – TAKE AWAY THE CAR. Curbstoning has been a problem for a long time in the auto industry and everyone knows that curbstoners can be nasty characters - we know they jump title, do not pay use tax on vehicles they have purchased – even though that is illegal and sell vehicles without disclosing damage, accurate mileage and possibly do not disclose mechanical problems the vehicle might have.

N E W S F R O M T H E I O W A S T A T E H O U S E

IIADA SPONSORED 

S.F. 409   -   AN ANTI-

CURBSTONING BILL

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ADESA DES MOINES1800 Gateway DriveGrimes, IA 50111(515) 986-1200Fax: (515) 986-1201www.adesa.comGeneral Manager: Jeff LisleFleet/Lease Manager: Kevin ParmenterConsignment Sale every Tuesday at 9:30 a.m.Fleet/Lease Sale Tuesday 10:30 a.m.

ADESA KANSAS CITY101 S.W. Oldham RoadLee’s Summit, MO 64081(816) 525-1100(800) 950-2350Fax: (816) 525-4714General Manager: Harold ChapmanDealer Sales Manager: Tamara Kunkel Tuesday 9:30 a.m. ADESA MINNEAPOLIS18270 Territorial RoadDayton, MN 55369763-428-8777763-428-8701Sale: Tuesday, 10 a.m.www.adesa.com ADESA SIOUX FALLS46893 271st StreetP.O. Box 218Tea, SD 57064(605) 368-5364 Fax: (605) 368-2808 General Manager: Kurt Zabel Wednesday Sale 10:00 a.m. IAAI SALVAGE SALE EVERY OTHER WEDNESDAY – 8:30 A.M. ADESA WISCONSINW 10415 State Road 33Portage, WI 53901608-742-8245608-742-4415 (f)Tony Manwarren, general managerSale: Thursday, 9:30 a.m.www.adesa.com

DEALERS CHOICE AUTO AUCTION, INC.503 South Wapello RoadMediapolis, IA 52637(319) 394-3510(888) 771-6810Fax: (319) 394-3511www.dcaa.comPresident: Monte DelzellNationwide Transportation:EZ Auto ShoppersSteve Miller – (866) 310-5936Fleet/Lease Manager: Kerri WilkersonConsignment Sale every Tuesday at 6 p.m.Fleet/Lease Sale Tuesday 6 p.m. Group SalesDealer Sales 6 p.m. as scheduled.

DES MOINES AUTO AUCTION1530 S.E. McKinley RoadDes Moines, Iowa 50320(515) 285-8911 Fax: (515)256-9161FRIDAY AT 9:30 A.M. Todd Givant, General Manager GREATER QUAD CITY AUTO AUCTION4015 78th AvenueMilan, Il 61264(309) 787-6300Fax: (309) 787-4541Tuesday 10 a.m. – Thursday – 6 p.m.General Manager: Larry Anderson GREATER ROCKFORD AUTO AUCTION5937 Sandy Hollow RoadRockford, Il 61109(815) 874-7800(800) 830-4722Fax: (815) 874-1325 Owner/President: D.M. “Swede”Clark General Manager: Mark Capriola Wednesday 10 a.m. KCI AUTO AUCTION11101 N. CongressKansas City, MO816-502-3318816-801-8565 (f)Doug DollConsignment Sale: Thursday, 9:30 a.m. www.kciaa.com

MANHEIM ARENA ILLINOISManheim200 West Old Chicago DriveBolingbrook, Il 60440(630) 759-3800(630) 759-9668General Manager: John OlejniczakDealer Sales Manager: Louis Palermo Tuesday 9 a.m. MANHEIM KANSAS CITY3901 North Skiles RoadKansas City, MO 64161(800) 247-7163Fax: (816) 452-2393 General Manager: Peggy SprengerDealer Sales Manager: Kevin Rhoads Wednesday 9:30 a.m. MANHEIM MINNEAPOLIS 8001 Jefferson HighwayMaple Grove, MN 55369-4924(763) 425-7653(800) 622-7653Fax: (763) 493-0310www.minneapolisautoauction.comGeneral Manager: Jerry AmanAssistant General Manager: WJon EisenmannFleet Manager: Tony ManwarrenConsignment Sale every Wednesday at 9:45 a.m. Fleet/Lease Sale Wednesday at 9 a.m. Daimler Chrysler Sale Tuesday 10 a.m. bi-weekly. Ford Sale Thursday 10 a.m. bi-weekly. Dealer Sale Tuesday Thunder 1 p.m. weekly (under $5K). RV Sale last Wednesday 2 p.m. Monthly.

MANHEIM MILWAUKEE561–South Highway 41 - (27th Street)Caledonia, WI 53108(262) 835-4436(800) 662-2947Fax: (262) 835-2684 General Manager: Dennis Worthy Dealer Sales Manager: Kimberly Schure Wednesay 9 a.m. MANHEIM MISSOURI2944 W. Sunshine St.Springfield, MO 65807417-882-1666417-882-0811 (f) Lance Reid, general managerSale: Thursday, 9 a.m.www.manheim.com MANHEIM NORTHSTAR MINNESOTA4908 Valley Industrial Blvd. NorthShakopee, MN 55379(952) 445-5544(888) 445-2277Fax: (952) 445-6773General Manager: Jerry AmanThursday 9 a.m.

MANHEIM OMAHA9201 S. 144th StreetExit 440 off of I-80Omaha, NE 68138(402) 896-8000(800) 218-4192Fax: (402) 896-6758 General Manager: Todd Pfeifer Assist. Gen Manager: Korey Grell Thursday 9:30am. MID-STATE AUTO AUCTION100 Bach Ave.New York Mills, MN218-385-3777218-385-3232 (f)Rob Thompson, presidentSale: Friday, 10 a.m.www.msaanym.com MISSOURI AUTO DEALERS EXCHANGE5912 Mitchell Ave.St. Joseph, MO 64507816-232-7653816-232-3019 (f)Pam and Scott WallConsignment Sale: Wednesday, 5:45 p.m.www.moautoexchange.com NEBRASKA AUTO AUCTION7500 N. 56TH St.Lincoln, NE 68514402-466-8477402-466-7932 (f)www.nebraskaautoauction.comDave LaFleurConsignment Sale: Tuesday, 10:30 a.m.

PLAZA AUTO AUCTION, INC.320 Highway 30 West  P.O. Box 147Mt. Vernon, IA  52314(319) 895-6232Fax: (319) 895-6727www.plazaaa.comOwner: Mark GrebOffice Manager: Debbie WelshBecky Thuerauf: Fleet/Lease AdministrationConnie Van Ginkel: Consignment ManagerConsignment Sale every Wednesday at 6:30pm. Fleet/Lease/Repo Sale Wednesday at 7pm. MANHEIM ST. LOUIS13813 St Charles Rock RoadBridgeton, MO 63044(314) 739-1300(800) 533-5414Fax: (314) 298-3347 General Manager: Mike Goodsell General Sales Manager: Chuck WickleyTuesday 9 a.m. TRI-STATE AUTO AUCTIONJct. Highway 11 & 80P.O. Box 735Cuba City, WI 53807(608) 744-2020 (608) 744-3418(800) 356-0625Fax: (608) 744-7425 Owners/Managers: Gerald and Helen BrogleyThursday 6:30 p.m.

TRI-STATE AUTO AUCTION OF CHICAGO14001 S. KarlovCrestwood, Il 60445(708) 389-4488Fax: (708) 389-4558COO: Gregg Kobel General Manage/Owner: Larry Hero Wednesday 10 a.m.

WEST CENTRAL AUTO AUCTIONP.O. Box 700I-80 Exit 1173277 Ute AvenueWaukee, IA 502 63(515) 987-1700(800) 987-7778Fax: (515) 987-3005www.wcaaonline.comOwner: Frank ScaglioneSales: Phyllis FasbenderConsignment Sale every Thursday at 9:30 a.m.

Nicole Graham-Ponce has

spent the majority of her

working career inside the

auto industry. She worked in

her father’s small dealership in

Lincoln, Neb., selling cars for four

years. After her father passed away, she started

her Manheim career in 1998 at Manheim Omaha

as a dealer sales representative.

She quickly was promoted to dealer sales manager and began overseeing dealer sales as well as front office operations and credit/collections. In 2000, she became the general sales manager where she added the factory, fleet/lease and MAFS departments to her already lengthy responsibilities. In 2004, Graham-Ponce accepted the position of assistant general manager of Manheim Omaha and has been involved in every aspect of the auction from sales and administration to operations and reconditioning. She has literally sat in almost every chair at Manheim Omaha during the last thirteen years. On Jan. 1, she became a regional representative for Manheim and her responsibilities now include working with four Midwest Manheim auctions:

Manheim Omaha, Manheim Kansas City, Manheim St. Louis and Manheim Missouri. Graham-Ponce was born in Oahu, Hawaii, and the family moved to Lincoln in 1976 when her father retired after serving 23 years in the U.S. Navy. The family also lived in Pleasant Dale, Neb., where Nicole graduated from Milford High School. Later, she attended the University of Nebraska in Lincoln. She has one brother who lives in Dallas and one sister, a niece and a nephew who live in Lincoln. Her mother, whom Nicole considers her best friend, also lives in Lincoln. Nicole has been married for 10 years and her husband works as a crew leader-interior completions for Duncan Aviation. Graham-Ponce loves to shop, workout and spend time with her family and two dogs. Manheim has been doing some restructuring during the last year and created markets within the company to better service its customers. Graham-Ponce’s official title is market general sales manager. Her new position requires more travel, but she enjoys working with these four auctions and helping them grow their business opportunities. “I love our customers! I have built many relationships the last fifteen years working in the

car business and I have found there are so many good people in this business,” she said. “The auction atmosphere is an adrenaline rush and I am motivated by the excitement and challenge of winning business and providing great customer service.” Graham-Ponce is a member of the American Business Women’s Association, NIADA, IIADA, KIADA, SDIADA and the National Auto Auction Association. She is a strong advocate for the used auto dealer associations. It is apparent to those who have gotten to know her over the years of service Graham-Ponce has given to Manheim Omaha that she’s truly a professional when it comes to business operations and performance. Nicole always made sure Manheim ran like a well-oiled machine; perhaps coming from a Navy family, she inherited those skills quite naturally. Her promotion will not make her ship sail from Omaha as that will still be her home base. Moving up the Manheim ladder has been smooth sailing for Graham-Ponce as she is very dedicated to successful end results. We wish her the very best in this new adventure and we are quite sure she’ll do an excellent job.

Movin’ On Up

N I C O L E H A S L I T E R A L LY S AT I N A L M O S T E V E R Y C H A I R A T M A N H E I M O M A H A T H E PA S T 13 Y E A R S .

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THREE COURT OPINIONS THIS MONTH LOOKED LIKE THEY’D BE PARTICULARLY INTERESTING TO DEALERS.

This month’s CARLAWYER article features developments in Washington and a couple of interesting court decisions. First, the Washington stuff -

On February 17, the Federal Reserve Board announced that has sent letters to approximately 2,500 finance companies urging their participation in its Survey of Finance Companies. The assets and liabilities of finance companies have been surveyed by the Federal Reserve at roughly 5-year intervals since 1955. The data provide a benchmark for the Federal Reserve’s monthly report on the outstanding accounts receivable of finance companies and provide a comprehensive update on these companies’ sources of funds.

Although it does not formally assume any regulatory authority until July 21, 2011, the Consumer Financial Protection Bureau has launched its website, www.consumerfinance.gov. The website explains the CFPB’s mission and invites consumers to share their stories and suggestions for the new agency. The website includes a video that explains the causes of the financial crisis and how the CFPB will be a “cop on the beat” to protect consumers going forward. The website includes a link to the CFPB’s blog, as well as its accounts on Facebook, Twitter, and YouTube. Notably, the website also includes Professor Elizabeth Warren’s daily calendar. If you haven’t seen this website yet, you ought to visit it, mark it as a “favorite,” and check it often.

We have heard that the FTC will soon announce the first stop of their “listening tour.” We hear that it will be Detroit on April 12th.  The tour will visit other cities, but the FTC has not settled on those dates and locations.  We understand that they are still considering California and Texas and possibly the D.C. metro area (probably because it’s a fairly inexpensive option for them).  You can bet that consumer advocates will show up in droves in an effort to get as much anecdotal evidence of dealer misconduct in front of the FTC as possible. The media will likely attend, too. Industry voices need to be heard, as well, so make plans to attend an “tour stop” near you. 

On February 1, the Federal Reserve Board announced that it will not issue final regulations on three proposals to revise the Truth in Lending Act mortgage rules, including a proposal to revise credit protection product disclosures for all types of credit. These regulations would have required a rewrite of every retail installment sales contract and a reprogramming of every dealer computer. Instead, the Board will defer to the Consumer Financial Protection Bureau, which assumes TILA rulemaking authority on July 21, 2011 under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposal to revise credit protection products was issued in September 2010 as part of a proposal to amend the mortgage rules. The proposal would significantly revise disclosures for credit protection products (e.g., credit insurance and debt cancellation products) and would apply to all types of credit. The Dodd-Frank Act transfers TILA rulemaking authority for nearly all creditors from the Board to the CFPB. The Dodd-Frank Act also directs the CFPB to combine disclosure requirements under TILA and the Real Estate Settlement Procedures Act. The Board felt that it would not be in the public interest to proceed with the pending mortgage proposals when the CFPB will have to amend the TILA mortgage rules again. The Board acknowledged that numerous amendments to the mortgage rules with different implementation dates would create compliance difficulties.

Three court opinions this month looked like they’d be particularly interesting to dealers. Here they are –

�� � Arbitration Denied Where Class Action Waiver Would Prevent Plaintiffs from Obtaining Competent Counsel: Payday borrowers filed a class action against their payday lender and its owners for violating Florida law. The defendants moved to compel arbitration, and the plaintiffs opposed the motion, claiming that the class action waiver in the arbitration agreement was unconscionable and/or violated public policy. After hearing evidence that competent counsel would not represent individual plaintiffs on

THE CARLAWYERS BY TOM HUDSON AND NIKKI MUNRO

small payday lending claims, the trial court denied the motion to compel arbitration. The Court of Appeals of Florida affirmed, finding that the class action waiver in this case prevented consumers from vindicating their statutory rights “[b]ecause … individual plaintiffs cannot obtain competent counsel without the procedural vehicle of a class action.” The appellate court also certified to the Florida Supreme Court the following question: “When asserted in a claim involving a violation of FDUTPA or another remedial statute, does a class action waiver in an arbitration agreement violate public policy when the trial court is persuaded by evidence that such a waiver prevents consumers from obtaining competent counsel?” See McKenzie v. Betts, 2011 Fla. App. LEXIS 1044 (Fla. App. February 2, 2011).

�� Court Allows Buyer’s Claims to Proceed Against Dealership’s Owner After Spot Delivery Unwound: After a car dealership unwound a spot delivery because the financing source was unable to verify certain representations in connection with the customer’s application and withdrew its preapproved financing, the dealership asked the customer to return the vehicle. When the customer refused, the dealership sued her for replevin and breach of contract. The customer counterclaimed against the owner of the dealership, who allegedly made threatening phone calls to the customer related to the return of the vehicle, asserting a claim for conversion. The trial court dismissed the counterclaim, but the Florida Court of Appeals reversed. The appellate court noted that Florida law allows a counterclaim for conversion where the defendant in a replevin action alleges

We’ve heard the FTC will soon announce the first stop of its listening tour. It’s supposedly to be Detroit on April 12. Other cities will be on the tour, but the FTC has not settled on the other dates and locations.

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that the replevin was wrongful, even after the trial court grants a prejudgment writ of replevin. The appellate court found that the customer alleged sufficient facts to support her ownership claim, through a copy of the signed RISC and testimony that the dealership assured her that financing had been approved. The appellate court also found that the owner wrongfully exercised dominion over the vehicle – inconsistent with the customer’s ownership – by threatening to have the customer arrested if she did not return the vehicle. See Edwards v. Landsman, 2011 Fla. App. LEXIS 45 (Fla. App. January 12, 2011).

�� Dealership and RISC Assignee Liable for Deceptive Trade Practices Where “Certified,” “Low-Mileage” Vehicle Contained Switch that Stopped Odometer: A dealership sold car buyers a used vehicle that they were told was a “GM certified,” “low-mileage” vehicle. The vehicle had 36,578 miles on it at the time of sale. After the buyers noticed that the vehicle contained a switch that caused the speedometer and odometer to stop functioning, they sued the dealership and the assignee of their retail installment contract. A jury found in favor of the buyers, and the trial court entered judgment against the defendants for $8,795 and cancelled the purchase agreement. The Court of Appeals of Texas affirmed, rejecting the defendants’ argument that there was insufficient evidence to support the jury’s findings of violations of the Texas Deceptive Trade Practices and Consumer Protection Act. The appellate court found that there was sufficient evidence for the jury to conclude that the dealership had not inspected the vehicle as it said it had in connection with the GM certification process and, therefore, “engaged in false, misleading, or deceptive acts or practices by representing that the [vehicle] had characteristics that it did not have and that it was of a particular quality when it was not.” See Mac Haik Chevrolet Ltd. v. Diaz, 2011 Tex. App. LEXIS 668 (Tex. App. January 27, 2011).

So there you are! Check back with us next month for the latest from your friendly legal beagles. Tom thudson@hudco.com and Nikkinmunro@hudco.com are partners in the law firm of Hudson Cook, LLC. Tom is the author of several books that are available at www.counselorlibrary.com. Tom is also the publisher of Spot Delivery®, a monthly legal newsletter for auto dealers, and the Editor in Chief of CARLAW®, a monthly report of legal developments in all states for the auto finance and leasing industry (not to be confused with the book). Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. Spot Delivery, CARLAW and the books are produced by CounselorLibrary.com LLC. For information, call 410-865-5411 or visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2011, all rights reserved. Single publication rights only, to the Association. (2/11). HC# 4843-3933-9272.

More than 50 percent of used vehicles listed for more than 30 days have at least

one price drop, according to a study released in late February by leading online

automotive community CarGurus.com.

Think about the top concerns your customers have when shopping for a used car: previous damage, maintenance, ownership history, and of course, price. Tools like Carfax Vehicle History Reports are readily-available through various mobile devices to verify this important information and bid with confidence. Having your mobile device handy helps you tie it all together quickly and successfully acquire the right cars for your lot.

Today’s mobile devices provide access to information that brings transparency and process effi ciency to dealers. The possibilities mobile is opening up for our industry are truly extraordinary – and in the current economic climate, leveraging new and user-friendly technology is key to moving more cars and saving money in the process.

Used Auto Prices Reduced After 30 Days

Confused about what the Internal Revenue Service requires from dealers at tax time?

Don’t worry, as the IRS has an entire section of its website dedicated to automotive businesses. We’ve included a few tips here.

As most dealers already know, the IRS requires each person engaged in a trade or business who, in the course of conducting that trade or business, receives more than $10,000 in cash in one transaction or in two or more related transactions must file a Form 8300. The agency recommends filers should keep a copy of each Form 8300 for five years from the filing date.

Form 8300s should be filed by the 15th day after the date the cash was received. The form should be filed on the next business day if that date falls on a Saturday, Sunday or legal holiday. The filer must give a written statement to each person named on a required Form 8300 on or before January 31 of the year following the calendar year in which the cash is received and a copy of this statement kept for your records.

Changing your accounting method? That generally requires IRS approval. To get approval, you must file Form 3115, Application for Change in Accounting Method. A change in your accounting method includes a change not only in your overall system of accounting but also in the treatment of any material item.

If you finance the purchase of your property, instead of having the buyer get a loan or mortgage from a third party, you probably have an installment sale. It is not an installment sale if the buyer borrows the money from a third party and then pays you the total selling price.

FOR MORE INFORMATION, VISIT WWW.IRS.GOV

IRS Offers Helpful Auto Dealer Tax Tips

NIADA members can save up to 29 percent on select FedEx® shipping services. For more information or to enroll in this program, visit www.1800members.com/niada or call 800-636-2377 (8 a.m.–6 p.m. Eastern, Mon.-Fri.).

Renting a car just became easier and economical with the new Thrifty Car Rental Discount Program for NIADA members. Visit www.thrifty.com/?iata=00227148&PromotionCode=NIADA to receive a 5 percent discount off Thrifty’s already low rates anywhere or any size vehicle in the U.S. A 24-hour advance reservation is required and reservations can only be made through this URL or via the link on the NIADA website. Offer is valid for travel until Dec. 31, 2011.

AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the United States with over 4,350 stores across 48 states, the District of Columbia and Puerto Rico. NIADA members have access to AutoZone’s “hot-shot” delivery program including discounts on more than 750,000 product level SKUs in over 70 distinct product categories. For more information, view www.niada.com/dealers_edge.php

PRODUCT DISCOUNTS FOR NIADA MEMBERS

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������Accounting Audit Reports Permanently Accounts Receivable or Payable Ledger 8 years Bank Statements & Reconciliations 5 years Canceled Checks-Payroll & General 5 years Canceled Checks-for purchase of assets 5 years Capital Stock Book Permanently Cash Disbursement Journal 8 years Cash Received Journal 8 years Expense Reports 6 years Expense Ledger 8 years Financial Statements 8 years (retain permanently if there are no audit reports) General Ledger & Journal Permanently Inventory Records 8 years Notes Receivable Ledger 8 years Parts, Accessories and Service Sales Journals 8 years Payroll Earnings Records 5 years Payroll Journal 5 years Payroll Time Cards 3 years Petty Cash Vouchers 3 years Petty Cash Summary Envelope 3 years Prepaid and Accrued Expenses Journal 3 years Subsidiary Ledger 8 years Trial Balances 8 years Vouchers – Vendors or Employees 8 years

������Corporate Articles, By-Laws, Minutes and other corporate records Permanently ������Correspondence General 10 years Legal and Tax Permanently

������Operations Accident Reports 6 years Bills of Lading 10 years Car Invoices 6 years Car Purchase Orders 10 years Credit Applications – denied 25 months Credit Card Slips 1 year Customer Files 10 years Damage Disclosure Statements 5 years Employment Applications Terminated 3 years Hired 3 years past termination Insurance Policies, expired 4 years Internal Repair Orders 3 years Junking Certificate 3 years Odometer Statements 5 years OSHA Records 6 years Purchase Orders 6 years Repair Estimates 9 months Repair Order Check Sheet 2 years Repair Order 6 years Retail Installment Contract, assigned 10 years Retail Installment Contract, not assigned 10 years past expiration Sales Invoices 6 years Service Contracts/Extended Warranties 10 years past expiration Shipping and Receiving Reports 6 years Vendor Invoices 6 years

������Taxes Form 8300 - $10,000 Cash Reporting Form 5 years Income Tax Returns Federal & State Permanently IRS Audit Results Permanently Unemployment Tax Returns Federal & State 5 years Withholding Tax Returns Federal & State 5 years Withholding Tax Statements 5 years

Many of you have asked for information on the number of years you keep various documents within

the dealership. The following guideline was put together several years

ago and is included in your dealer education manual, too. Additional

information can be found on the IRS website at www.irs.gov.com and your

accountant should also be able to provide you with more helpful advice.

GUIDE TO RECORD

RETENTION FOR AUTO DEALERS

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BY CLAYTON STANFIELD, EBAY MOTORS

W I T H C O N S U M E R S L O O K I N G F O R V E H I C L E S , P A R T S A N D A C C E S S O R I E S

This past holiday season, surveys and

statistics showed what many analysts

and industry observers were thinking:

mobile commerce is growing by leaps

and bounds, and every industry is in on

the trend, including automotive.

In 2011, smartphones are forecasted to account for half of the mobile phone mar-ket, according to The Nielsen Co. On top of that, an ABI Research report says mo-bile online shopping will generate $119 billion in sales by 2015, accounting for 8 percent of the e-commerce market.

When car dealers make it easy for their business to be found through a mobile web browser, loyalty campaigns, market-ing initiatives, text promotions and sales can attract and retain customers.

What are consumers browsing with their smart phones? The same types of items they started browsing on comput-ers: researching purchase decisions, cost comparisons and finding the location of physical items.

Recently, eBay reported a substantial increase in mobile traffic, where sales more than tripled in 2010 to near $2 bil-lion in gross merchandise volume. Last year, vehicle purchases led all categories on eBay mobile applications in terms of GMV, while parts and accessories were number two in terms of the total number of items purchased.

Dealers know when they have a physi-cal lot, customers still come to kick the tires when the sales office is closed. Now, today’s consumer might still come to the lot, but he or she will also pull out a smart phone, check the hours of the dealership and research the same make and model for competitive pricing.

The same thing is happening even if the consumer doesn’t drive to a physical lot. A consumer may be in his garage working on a car and need to find a part or acces-sory. Instead of going inside and turning on the computer, he’s browsing his smart phone to find the part, price and local availability.

Just as e-commerce has completely changed the way we do business, wireless devices and smartphones are again alter-ing what we know about consumers’ pur-chasing behaviors. Seeing similarities in mobile commerce and e-commerce, auto dealers ask themselves a familiar question:

would anyone really buy a car from their smart phone?

In 2010, more than $118 million in car and truck purchases were made via the eBay mobile application – more than 12,600 vehicles were sold. Parts were the second biggest category in mobile last year, with more than 911,722 parts purchased, and more than $60 million in sales.

For independent dealers, mobile ap-plications and mobile commerce are the must-have digital tools of 2011.

With smartphones capable of surfing, downloading apps and co nnecting with coworkers and friends in an instant, re-searching and shopping for vehicles, parts and services is a natural extension.

For example, a business traveler wait-ing at an airport may use that downtime to look for a needed part for his car or browse available vehicles for a new truck. If an independent dealer’s inventory is not readily available on a mobile app, chances are there’s an entire customer segment that may not see what’s for sale.

A recent ForeSee Results survey found 30 percent of consumers used a mobile phone to research products on the Inter-net, compared with 11 percent in 2009. Those making a purchase through a mo-bile phoWWne increased from 2 percent in 2009 to 11 percent in 2010.

For example, Tilo Steurer, founder and owner of Eurocar, the West Coast’s larg-est independent dealership of its kind, sells and buys vehicles and regularly uses eBay’s mobile app to buy cars, parts and accessories.

“I purchase anywhere from five to 10 cars every month, most of the time through the eBay mobile app,” Steurer said. He also uses the eBay mobile app to keep track of his business while not in the office.

With any form of sales – online, mo-bile or in-store – customers consider the credibility of the seller and business before making a purchase. Building that cred-ibility takes consistent communication, which is made easier when dealers can keep in touch through mobile and online sources.

“Communication is very important, especially when making an expensive on-line purchase such as a luxury car,” Steurer said. “With the eBay mobile app, I can re-

spond more quickly to customer ques-tions, which builds credibility and in-creases the opportunity for a sale.”

To accommodate this growing trend, eBay Motors is launching a mo-bile app that will provide a customizable buying experience optimized for ve-hicles, parts and accessories, as well as unique social and community features for the enthusiast. 

Features include VIN scanning and a virtual garage to give enthusiasts per-sonalized information. After searching for a vehicle, users can share it with friends and social networks or ask the seller a question. Users can create “car cards” for their vehicles which display photos and stats about the vehicle and can be used in searches for parts and ac-cessories.

On the garage tab, consumers can in-put and store the vehicles they own or scan the VIN barcode with the iPhone’s camera to populate information. In the garage, car owners can create to-do list for vehicle projects, store custom parts searches and share the garage with their social network.

For dealers, having parts, accessories and vehicles at a consumer’s fingertips is an ideal way to extend marketing and sales without a lot of development and technical effort.

Mobile commerce is still in its infancy but is growing at a faster pace than e-commerce. With the Internet available wherever consumers are with their smart phones, it’s only a matter of time before mobile commerce becomes a dominant form of purchasing. Because of the similarities to e-commerce, consumers are quickly adopting m-commerce and expecting businesses to be on board.

FOR DEALERS, HAVING PARTS, ACCESSORIES AND

VEHICLES AT A CONSUMER’S FINGERTIPS IS AN IDEAL

WAY TO EXTEND MARKETING AND SALES WITHOUT A

LOT OF DEVELOPMENT AND TECHNICAL EFFORT.

M O B I L E C O M M E R C E

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���112th Congress IssuesOn Feb. 3, Federal Advocates met with

NADA to discuss upcoming issues for the 112th Congress and various pending matters. As we jointly see it, the issues for Congress are fuel economy and green gas within the context of energy legislation, the Consumer Financial Protection Bureau and its mandates, the Toyota Safety Bill (which we both believe is dead), possible Congressional oversight that may impact the industry and the National Highway Traffic Safety Administration reauthorization effort (a priority of Sen. Jay Rockefeller, D-WV, who’s chairman of the Senate Commerce Committee).

Harrington also mentioned a General Accounting Office study (see separate heading) which Rep. Ed Towns, D-NY, and chairman of the 111th Congress House Governmental Affairs Committee, requested on section 310 of the Senate Toyota bill. It would’ve required dealers to provide info to buyers on a vehicle’s history.

Lastly, we both agreed it’s important to continue monitoring relevant activity of the FTC.

���Consumer Financial Protection Bureau Meetings

On March 4, NIADA General Counsel Keith Whann and Federal Advocates will be meeting with Holly Petraeus, director of the Consumer Financial Protection Bureau’s Office of Service Member Affairs, to introduce NIADA and to discuss various auto industry issues related to the newly-created CFPB. In addition, a meeting request is pending with Richard Cordray, CFPB general counsel, to discuss various consumer auto issues and the soon-to-be appointed Consumer Advisory Board.

��SBA Floorplan Financing ProgramThe federal government relaunched its

suspended floorplan financing program for small dealerships, this time with loan limits of $5 million rather than $2 million. The Small Business Administration’s new rules, which addressed nuts-and-bolts questions of how the financing will work, were published online in the Federal Register on Feb. 8. The Obama administration began a pilot floorplan program in May 2009 during the depths of the recession, but it never got off the ground because of banks’ reluctance to extend credit. A law enacted

in September 2010 increased the loan limits and in October, the SBA adopted a rule expanding eligibility for the program to the majority of dealerships. The SBA also suspended the program in October and has been working since with lenders in an attempt to increase their participation. The pilot program will continue through September 2013. To address various issues related to the program, a conference call was held with Whann, and the SBA’s Steven Smits, associate administrator, and Patrick Kelley, senior advisor, Office of Capital Access.

���Department of DefensePam McClelland, a DOD senior

program analyst, has taken over for Dave Julian and Frank Emery in the Office of Military Community and Family Planning in the Office of the Deputy Undersecretary of Defense. Per a conversation with her on Feb. 15, NIADA will send information to her, at her request, on how the association can assist service members in purchasing pre-owned vehicles. Pending her review, a meeting or conference call will be scheduled with Whann.

���GAO StudyThe GAO review was requested by

Rep. Towns earlier last year that focused on the auto safety recall process. As part of the review, GAO is speaking with all of the stakeholders in the process such as dealerships and dealership representatives. GAO’s audit work is nearing its completion and GAO is due to issue the report on June 15. Pending that, Jim Leonard, an analyst with the GAO’s Physical Infrastructure Team, has discussed with NIADA its views on the issue and the role of pre-owned vehicle dealerships. NIADA’s Mike Linn and Whann discussed this issue with Jim Leonard and other analysts of the GAO earlier this month.

��White House Meeting ScheduledA March 4 meeting with Steve Croley,

special assistant to the President for Justice and Regulatory Policy in the Office of Domestic Policy, has been scheduled to introduce the association to the administration and to provide a briefing on its views on auto consumer issues.

FEDERAL ADVOCATESLOBBYING REPORT

V IE W OV ER 450 HOUR S OF DE A L ER EDUC A T ION SE S S ION S A S W E L L A S

O T HE R S P EC I A L T R A IN ING S E MIN A R S A ND MON T HLY DE A L ER T I P S 24/7 A T

W W W.N I A DA .T V

SPRING INTOACTIONNOW

Federal Advocates is NIADA’s governmental advocacy partner. To read past lobbying reports, visit www.niada.com/legislative_and_legal.php

F E B R U A R Y 2 0 1 1

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WILSON DISTRIBUTOR SERVICE IIADA DEALER CAP FORMSCar Brite Products Forms, Detail Supplies, Equipment & More Jason & Lisa Goody 105 N McCoy Mt. Pleasant IA 52641Phone: 800-634-0974Fax: 319-385-2927 E-mail: jasonwds@lisco.comWebsite: www.wds-usa.com

AUTO OWNERS INSURANCEEASTERN BORDER OF IOWAAmy GoodnightLOHMAN COMPANIES3901 15TH STREET DMOLINE, IL 61265800-747-8431309-764-5967 (fax)amy@lohman-companies.com

AUTO OWNERS INSURANCE 10% DISCOUNT TO ALL IIADA MEMBERSCorcoran & Associates, Inc.Mick and Teresa Corcoran2525 E. Euclid, Suite 102Des Moines, Iowa 50317Phone: 515-262-3141Fax: 515-262-3086Toll Free: 877-518-4051E-mail: teresa@corcoranandassoc.com

Health Insurance Jesse Patton1112 Maple StreetWest Des Moines, Iowa 50265Toll Free: 800-798-6772Phone: 515-270-8178 Fax: 515-270-0398E-mail: lpatton@amgi-dsm.com

F&I Training, Sales Training, Service Contracts, Rob Miller and Chris Hochstein515 N Jefferson Way Ste HIndianola IA 50125Phone: 515-962-0099 or 515-962-0100Fax: 515-961-8400Rob: 515-205-5900 cellChris: 515-205-5800 cellE-mail: cycloneautomotive@cycloneautomotive.com

Service Contracts, GAP, Aftermarket ProductsSales & F & I Training thru Star Training Group3828-70th StreetUrbandale, Iowa 50322515-276-9622800-776-9622515-276-8472 (fax)e-mail: dougeckhart1@yahoo.comwebsite: www.sandcsales.com Contact: Doug Eckhart

Official Used Car Guides, Subscription Discounts, Annual Subscription through IIADA, Save $$ Contact IIADA at Phone: 641-755-4177E-mail: iiada@netins.net

Dealer BondsLong Term Care InsuranceVarious types of insuranceContact: Dean M Clark300 Walnut Street Ste 200Des Moines IA 50309Phone: 515-243-1724Toll Free: 800-767-1724Fax: 515-243-6664E-mail: d.m.clark@reynolds-reynolds.com

AUTOJINI.COMWebsites for Dealers Contact: Syed Azam310 Main Street Ste 201Ames IA 50010Phone: 515-232-2024E-mail: syed@octadyne.com

Garage Keepers, Property, Garage Liability Dealer Bonds7045 College Blvd.Overland Park, Kansas 66211Chris Westberg – Western Iowa Repchris.westberg@zurichna.com800-344-4917, Ext. 3909Scot Smith – Eastern Iowa Rep.scot.smith@zurichna.comToll Free: 800-840-8842, Ext. 3944

Sub-prime LenderContact: Sarah GrishamP.O. Box 65400West Des Moines, Iowa 50265Phone: 515-225-9067E-mail: globeaccepts@globeacceptance.com Website: www.GlobeAcceptance.com

Sub-prime LenderContact: Scott Erikson/Joe Ruhland4900 Highway 169 N., Suite 205New Hope, Minnesota 55428P: 763-559-5892F: 763-559-7549website: www.securityal.com Scott: 402-639-0664e-mail:serikson@adgtoday.comJoe: 612-804-0720e-mail: joe@autofaqs.biz

ADVANCED BUSINESS

Printing, Promotional Products, & WearablesContact: Scott Jayne PO Box 71547 Des Moines IA 50325Phone: 515-225-6343Toll Free: 888-464-2274Fax: 515-225-6510Toll Free Fax: 877-987-3514Website: www.go4abpi.com

CORCORAN & ASSOCIATES INC.Various Types of InsuranceContact: Mick Corcoran, Janet Solberg or Donna Torkelson18 – 2nd Street, N.E.Mason City, Iowa 50401Phone: 866-494-1814Fax: 641-494-1819E-mail: donna@corcoranandassoc.com

INNOVATIVE DEALER

Dealer Software Management SystemsP.O. Box 23189Shawnee, Kansas 66283913-312-7344 – Ext. 11Fax: 810-821-1718Website: innovativedealer.comContact: Deems Peterson, Sales ManagerE-mail: dpeterson@innovativedealer.com

“Customers for Life”Repeat Sales, Referrals & Customer LoyaltyContact: Terry & Sue NewellP.O. Box 294Carthage IL 62321Ph: 888-353-2668Fax: 217-357-9076E-mail: tlnewell@frontienet.net

2564 W. Main St., P.O. Box 569Canton, New York 13617Phone: 888-963-5369Fax: 888-963-3366E-mail: ucd@FrazerComputing.comNational Rep: Mike Frazer -Dealer Management Software for Used Car Dealers

Contact: Scott Erikson, Iowa Rep100 Prairie Center Drive, Suite 200Eden Prairie, Minnesota 55344Scott Erikson: 402-639-0664serikson@adgtoday.com

2093 20th Ave. S.E.DYERSVILLE, IOWA 52040PHONE: 866-655-8825 Ext. 120Fax: 866-655-8285Contact: Mark VanDykee-mail: markv@goldstargps.comWebsite: www.goldstargps.com

MICROBILT CORPORATIONCredit Reports From Equifax, Experian andTrans Union; Employment BackgroundScreening; Driver’s License & Motor Vehicle Searches111 Butler StreetLexington, South Carolina 29072Contact: Randy Mosteller866-277-7707randy_mosteller@microbilt.comwww.microbilt.com

AUTOMOTIVE DEVELOPMENT

Dealer Compliance Education,F & I Compliance and Training, ServiceContracts, GAP and Protective CoatingsContact: Scott Erikson100 Prairie Center Drive, Suite 200Eden Prairie, Minnesota 55344Scott: (402) 639-0664serikson@adgtoday.com

MONSTERLOT.NETAutomotive Development Group, LLCDealer to Dealer Inventory /Trading and sharingFree Unlimited Web Accesswww.MonsterLot.net E-mail: info@monsterlot.netContact: Scott Erikson402-639-0664

JR 5 TRANSPORTATIONTransport ServicesJohn Robinson, President1109 S.W. 63rd StreetDes Moines, Iowa 50312515-822-3447

CHASE CUSTOM FINANCEChase Auto Finance1800 S. Naperville RoadWheaton, Illinois 60189Christopher ComptonAssistant Vice-President515-720-9440Christopher.e.compton@jpmchase.com

SMARTAUCTIONMatthew Mohler4300 SW Cambridge AvenueTopeka, Kansas 66610785-249-4166matthew.mohler@ally.com

CREDIT UNION2012-1ST AVENUE SOUTHFORT DODGE, IOWA 50501Phone: 515-955-5524, Ext. 202Fax: 515-955-8241

A P P R O V E D M E M B E R B E N E F I T P R O V I D E R S

Dealers who demonstrate commit-ment and support the principles and ethical business standards of the CMD® designation complete a four-day seminar that addresses Business Management, Merchandis-ing, Financial Management, Human Resources, and Business Planning. Northwood University provides the in-structor and awards four Continuing Education units for this course. Visit niada.com for more information.

CMD Classes

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The FTC’s risk-based pricing notice requirements became

effective Jan. 1. To comply with these requirements, dealers must alert consumers when they are getting different credit terms than others based on credit information. The good news is the requirements give options for how and when you provide the notice. That’s also the bad news because the options and exceptions can make it difficult to figure out if you’re in compliance. To help you sort through the maze, here are some of the important exceptions and how they apply to you.

Your dealership doesn’t need to provide a notice if:You don’t do risk-based pricing of credit terms. This applies if every consumer whose application is approved is offered credit on the same terms. You don’t use credit reports in any way to make a credit decision. If your dealership directly contacts employers and other references and is not otherwise using any third party information, then the risk-based pricing notice is not required (it sounds rare, but there are dealers who qualify for this exception).

A notice isn’t required for a specific transaction if:The credit requested is not for a consumer purpose (personal, family or household use).The transaction is a consumer lease. The consumer applies for a specific credit product and is approved for those terms. You offer specific terms to a pre-screened group and extend credit on the offered terms to one of them. The consumer is a co-signer (which is different from a co-borrower), guarantor, surety or endorser in the transaction.The consumer’s application is denied and you provide an adverse action notice. You provide the consumer with the credit score disclosure instead of the risk-based pricing notice. The disclosure is an alternative form authorized by the regulations. If you use it, you must provide it to all consumer applicants instead of providing a risk-based pricing notice only to the portion of applicants who are not receiving your most favorable credit terms.

It is likely some of these exceptions apply to your dealership and its transactions. Before relying on an exception, review the regulation or discuss it with your legal counsel to be sure you implement it correctly. The regulation can be found at 16 CFR §§ 640.1-.6.

BY CHIP ZYVOLOSKI Chip Zyvoloski is senior attorney for indirect lending at Wolters Kluwer Financial Services. For more information, visit www.wolterskluwerfs.com/indirect.

Sorting Through Exceptions to the Risk-Based Pricing Notice

Our team at Manheim Consulting had the pleasure of interviewing NIADA President Anthony Underwood for a question and answer session discussing the state of the used vehicle market from the perspective of independent dealers as we compiled the recently released, 16th annual Used Car Market Report (UCMR).

Underwood framed the challenges facing independent dealers in a way that confirmed what our data was telling us: independents are encountering higher prices for inventory at the wholesale level and finding fewer pre-owned vehicles in the marketplace.

In response, these dealers are focusing on sound inventory management practices, and using all available sales channels – including online – to source just the right inventory to meet their customers’ needs. We examined these and other trends in the UCMR, which is Manheim’s annual analysis of the forces shaping the used auto industry. As part of the Manheim-NIADA Dealer’s Edge partnership, I’m happy to let you know you can download the entire report free of charge by taking a very brief survey at www.surveymonkey.com/s/manheim.

As a comprehensive analysis of the trends shaping the automotive industry, the 2011 UCMR contains much more valuable information pertaining to independent dealers, as well as chapters on other aspects of the industry, including rental, leasing, fleets, repossessions and salvage. I encourage NIADA members to download their free copy of the UCMR, and as always, please e-mail me any time with your questions.

BY TOM WEBBTom Webb is chief economist for Manheim Consulting. Contact him at Thomas.webb@manheim.com, follow him via Twitter at www.twitter.com/TomWebb_Manheim and read his blog at www.manheimconsulting.typepad.com.

Independents Remain Profitable in Challenging Environment