aiada feb/march '13

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

ALABAMAI 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

FEBRUARY/MARCH 2013

This year marked the 10th anniversary of LCM motors, and Larry Kirby’s 38th

year in the auto industry. • BECOMING A DESIGNATED AGENT• WHY YOU ARE THE BRAND• THE SALES STARTS HERE

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FEBRUARY/MARCH 2013 A I A D A

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PRESIDENTCharles MoringMidland [email protected]

PRESIDENT ELECTKen [email protected]

VICE PRESIDENTO’Neal [email protected]

SECRETARY/TREASURERRex [email protected]

CHAIRMAN OF BOARDRandy Burns [email protected]

DIRECTORS Barry SearcyMuscle [email protected]

John DunnSylacaugajohndunnauto@ charterinternet.com

Lance [email protected]

Willie [email protected]

Tommy [email protected]

John [email protected]

Paul [email protected]

Robert [email protected]

Tim [email protected]

Chad [email protected]

Jay [email protected]

Randy [email protected]

Larry [email protected]

Darrin [email protected]

Cary [email protected]

Heath [email protected]

Kelly [email protected]

Pokey BrimerOxford [email protected]

Association AttorneysJohn Martin Galese and Jeff IngramGalese & Ingram PC

EXECUTIVE COMMITTEE

WHAT’S NEW

MAGAZINE CONTENTS

ADVERTISERS INDEX

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATIONWWW.NIADA.COM • WWW.NIADA.TVNIADA HEADQUARTERS: 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR [email protected] Alabama Independent Automobile Dealers Association is published bi-monthly 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 individual authors and do not necessarily represent the views of AIADA or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2013 by NIADA Services, Inc. All rights reserved. Visit the NIADA Web site at www.niada.com.STATE MAGAZINE MGR./SALES Troy Graff • [email protected] Andy Friedlander • [email protected] DIRECTOR Christy Haynes • [email protected] Nieman Printing

AIADA OFFICE120 VULCAN ROAD • BIRMINGHAM, AL 35209PHONE: (205) 942-1000 FAX: (205) 942-3565WEBSITE: WWW.ALABAMAIADA.COMTO BECOME A MEMBER OF AIADA, PLEASE CALL (800) 239-2423

ADESA ....................................... Inside Front CoverAlly ....................................................................11CarMax Auctions ................................................15Chase ................................................................14Manheim.com ......................................................9Manheim Nashville .....................Inside Back CoverNEXTGEAR Capital .........................................5, 13Protective ............................................................7United Acceptance .............................................17 VAuto ....................................................Back Cover

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2013 Scholarship AwardsIf you have a senior in high school, you already know how expensive things can be.

Each year, the Ladies Auxiliary grants two $1,000 scholarship awards, and the deadline will be here before you know it.

Applicants must be high school seniors, and must be a child or grandchild of any current member of AIADA.

Requirements and an application can be found on the AIADA website.We must have all applications by February 28, 2013.

Important Notes from the AssociationASSOCIATION HOURS AND FORMS

The Association office is open from 8:30 am – 4:30 pm, Monday through Friday. If you have any questions, need forms, or need any other type of assistance, please

contact Judy Benton. She will be glad to help you.A copy of the form supply list has been provided in this magazine, and is also

available online at www.alabamaiada.com. You can order forms via fax, mail, or phone.MONTHLY SPOTLIGHT

Each month, we will spotlight a used car dealer and a vendor referencing the current benefit, discount or service available to you as a Member of the AIADA. There are many money-saving opportunities at your fingertips, and we want you to grab them! SPECIAL DISCOUNT FOR MEMBERS AND PROSPECTIVE MEMBERS!!

As a member of the Alabama Independent Auto Dealers Association, Auto Owners Insurance Company is giving a 10% discount for garage liability insurance.

Call the Association office for your membership number if you currently have, or would like to obtain, coverage through Auto Owners.

Non-members, this would be a great time to join AIADA and take advantage of this valuable benefit. A membership application is available in this magazine, or online at www.alabamaiada.com. You can also contact the Association office at 205-942-1000.

L A D I E S AU X I L I A RY R E P O R T

04 President’s Letter06 Becoming a Designated Agent08 Why You Are the Brand12 Larry Kirby: He’d Rather Be Fishin’14 Proposed Used Car Rule Changes16 Washington Update18 The Sale Starts Here

Certified Master Dealer Program - Feb. & April 2013 Educates dealers on how to manage and grow a profitable business “Effective Management Practices”, “Business Planning”, “Human Resources”, “Merchandising”. “Financial Management” Call (800)756-4232 to sign up.

TAKE US WITH YOUwww.niada.tv - Free Dealer Education 24/7

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A I A D A FEBRUARY/MARCH 2013

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I am proud to welcome you to the first magazine of the year. The start of a new year gives us the chance to start over, improve and be better. I, like many of you, set goals. I have both long term and short term goals personally, in my business, and for AIADA.

To begin with, I want to see our new Executive Director “up and running” – seeing dealers, helping them, and being involved in all aspects of the used car industry in Alabama. Since I’m writing this letter 60 days prior to publication, I am not aware who this will be, but we definitely have dealer-oriented goals in place for the new Executive Director. By the time of publication, it is my hope and prayer that these goals will already be in the process of being implemented to help improve our dealers’ businesses and strengthen the association itself.

Looking down the road, I have several things I would like to see accomplished. With all of the new regulations and requirements in the industry, it should be the mission of AIADA to arm our dealers with as much information ammunition as possible. AIADA has been seeking to provide this information for years.

We have made education the center of our annual convention for years. But, as for everyone, business comes first, so many of us cannot attend on a regular basis. That’s why we’re looking at a plan to provide periodic seminars around the state, which would be more convenient for dealers to attend. While this is becoming more of a reality every day, ultimately it is not the cure.

Since the retirement of our Executive Director, I have been exposed to more of the daily operation of AIADA and was amazed by the number of calls from new dealers seeking very basic information regarding how to operate their business within the Alabama laws. Their questions were so basic that some of you reading this might think, “If they didn’t know that,

they shouldn’t have been licensed.” But, they can “fog a mirror” so Alabama is obligated to give them a license.

Wouldn’t we all be much better off if they were properly educated about the responsibilities of licensing and legal obligations of becoming a dealer prior to investing the money to become licensed? I certainly think so, which is why AIADA is planning to pursue a pre-licensing class for all first time dealers to complete before they can get their license. Our goal is to make it a requirement of the state. This is a win-win-win situation: it better prepares the dealer to survive in the marketplace; customers benefit from having dealers that fully understand consumer laws, paperwork processing, etc.; and the state would have more compliant dealers.

In addition, with the market and regulations seeming to change by the minute, AIADA believes training is needed so existing dealers know what is expected of them. Consumer finance regulations are changing drastically; Red Flag Rule enforcement is upon us; hiring practices through e-verify are very different than they used to be; title laws are evolving; sales tax requirements are different; there are a variety of dealer tag issues; Gramm-Leach-Bliley regulations are being enforced; the Consumer Financial Protection Bureau is expanding regulations; and it looks like there will be many IRS changes as well.

AIADA is proposing that the state require continued education for automobile dealers. This is the same win-win-win scenario as training for new dealers. This is a requirement for most professionals. Realtors, CPAs, teachers, doctors, and lawyers are all required continued education. Even your ASE-certified mechanic is required to invest in continuing education. So, why not dealers?

I know personally there are many

A S S O C I AT I O N N E W SBY

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Letter from the Presidentopportunities given to me to improve my business that I put off because I feel the business is best served by me being there running it. However, we owe it to ourselves, our customers, and our employees to maintain a level of education, compliance, and professionalism that will ensure that the business not only survives, but prospers. Additional training should also improve the bottom line of our dealers, especially if it helps avoid unnecessary litigation. I don’t want to do anything to make it more difficult to enter the industry or to continue business, but I do want to improve the image of dealers and industry.

Continued education could easily be accomplished with seminars, conventions, 20 Groups, classes, etc. Anyone who has ever been to an annual convention can attest that both the NIADA and AIADA conventions offer so much valuable knowledge, skills, and business tools that one could potentially meet continuing education requirements just by attending.

Education benefits everyone involved in and associated with the industry. It will vastly improve the consumer’s image of the independent dealer give them more confidence to do business with an independent instead of a franchised dealer.

If you have any comments, pro or con, I am your president and would love to hear your view on these matters or any matter that may concern you. I can be contacted at [email protected].

I want to encourage you to learn as much as you can and work to improve the image of the used car industry. We provide a very valuable service and we need to educate the public. We are improving people’s lives.

In your service,Charles Moring

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HOW TO BECOME A DESIGNATED AGENTOne of AIADA’s missions is to inform

our dealers of new or changing regulations that affect our industry. Licensed dealers have always been required to process their own title, but with the State of Alabama combining licensing responsibilities along with the responsibilities of issuing titles all within the Motor Vehicle Department, there will now be a better means of enforcement of this regulation.

Requiring dealers to file titles under their own designated agent number in essence means that a motor vehicle cannot be sold by one dealer and then the title filed under another dealer’s or county agency’s designated agent number – as has happened in the past.

The processing of a purchaser’s paperwork in a timely and efficient method is a service that each and every legitimate dealer should provide to every purchaser. AIADA supports this because it is right thing to do. It is part of the basic requirements for which a dealer is responsible from the moment he hangs a sign stating he is a professional in the automobile resale business.

Following the regulation helps ensure that customers, lenders and dealers are all protected, and that a good sale has been consummated. The State of Alabama has provided the means and we as licensed dealers should be willing to fulfill the obligation.

The questions and answers below were provided to us by Lisa Blankenship, Title Section Customer Service Supervisor. We wish to thank Ms. Blankenship for her work and effort assisting us as dealers, and working together to mutually better

the service level in providing titles to our customers.

WHAT ARE THE QUALIFICATION REQUIREMENTS FOR A LICENSED DEALER TO BECOME A DESIGNATED AGENT?

• Must have a current Act 539 Regulatory License

• Must post a $10,000 surety bond• Must attend Electronic Title

Application Processing System (ETAPS) training

WHAT ARE THE STEPS TO BECOME A DESIGNATED AGENT?

A designated agent package may be requested by emailing the Title Section at [email protected]. The package will contain a Designated Agent application and a surety bond. The Designated Agent surety bond in the amount of $10,000, payable to the State of Alabama, is required. Note: This bond is in addition to a dealer regulatory license bond.

When the completed package is returned to the Department, the designated agent account will be set up in ETAPS and a designated agent certificate will be sent to the applicant.

All designated agents are required to attend a training class conducted by the department before their ETAPS account is activated and they are allowed to process title applications through ETAPS. The class is divided into two sessions, designed to last six (6) hours. Designated agents are required to attend both sessions to become certified for ETAPS.

The Alabama Uniform Certificate

of Title and Anti-theft Act and general titling procedures are addressed in the morning session and ETAPS user training is addressed in the afternoon session. Upon request, training for manufactured home cancellations and insurance settlements for stolen unrecovered vehicles will be available after the ETAPS user training.

Dealers are required to bring the following information to the training session:

• Designated agent number (provided on the Designated Agent Certificate)

• ETAPS Title Training Manual • Sales/rental tax number • Financial institution account number • Financial institution routing number • Financial institution account type

(checking/savings) • Account classification (commercial/

consumer) There is no charge for the class. Also, the

class is not limited to new designated agents – any designated agent desiring additional training may attend the class. Note: dealers must have obtained their designated agent number prior to attending class. Designated agent applications will not be processed the day of a class.

The ETAPS administrative account for the dealer will be activated within 3 to 5 business days upon successful completion of the training session. Upon activation, the administrator can create additional users for the dealer and submit title applications.

T O AC C E S S T H E E TA P S T I T L E T R A I N I N G M A N UA L O R V I E W T H E C L A S S S C H E D U L E , LO CAT I O N S A N D DAT E S , V I S I T T H E D E PA R T M E N T ’ S W E B S I T E AT H T T P : / /R E V E N U E . A L A B A M A . G OV / M O T O RV E H I C L E /I N D E X . H T M L .

D E S I G N AT E D AG E N T S : P RO T E C T I N G C U S T O M E R S , L E N D E R S , A N D D E A L E R S

FROM THE DESK OF BRENDA R. COONEBRENDA R. COONE IS DIRECTOR OF THE ALABAMA DEPARTMENT OF REVENUE, MOTOR VEHICLE DIVISION.

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HOW TO BECOME A DESIGNATED AGENT

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If you are in business – whether you’re the boss or you work for a corporation – there’s something important you need to know: in today’s fast-paced world, people make decisions very quickly.

So if you want people to employ you or buy your products and services, first of all they need to have heard of you. After that, they need a good reason to choose you.

In my book YOU Are the Brand, Stupid! I’ve compiled case studies, real-life examples, and tools to help companies win more customers and increase sales. In general, there are three key components to the process.

BECOMING A CELEBRITY IN YOUR MARKET

Step one in the process is to become well-known.

The fact is that we live in a world today where people are obsessed with celebrity: the people who sell the most records are not always the best singers or musicians, and the biggest box office stars are not always the best actors.

Those who get to the top understand the power of celebrity and they work hard at building their image and reputation so they stay at the top.

It’s a lesson that has been learned by top politicians and business leaders – if you want to be president of the United States, you had better write a book or two first. If you want to be a business power-broker, a TV show will help.

But the power of celebrity is not only relevant to stars and big corporations. The exact same techniques can be used in any line of business – whether you work on your own, run a business or work for someone else.

I’ve seen that work for real in my own life, and time and again I’ve seen it transform the results of my most successful clients.

BECOMING THE RECOGNIZED EXPERT IN YOUR MARKET

Let’s be clear: the power of celebrity alone is not enough to make your business deliver its full potential. You need substance, not just glamor!

That means you don’t just want to be a celebrity. You want to position yourself as an industry expert and a trusted advisor. In order to achieve that, you need to define your market clearly and establish genuine reasons why you should be the choice in

that market. You need to build a brand that positions

you as the go-to expert in your field.Now you may think that brands are only

for big businesses with huge advertising budgets. But the fact is that all businesses have a brand – it’s simply the way people perceive them. You have a brand whether you want one or not.

So why not make the effort to develop the right brand?

The idea of building an expert brand can seem intimidating to many people – but it’s the fastest, best and easiest way of creating a successful, highly profitable business or career in any field.

There really is something special about you – a reason why people should choose you over the competition. You may just need to work out exactly what that is.

If you follow the right process, you can easily be the celebrity expert in your field. It’s simply a matter of making sure you define the right field of expertise and then take the steps needed to establish your expert status.

Remember, as an industry expert, you’re not just getting publicity. You’re establishing yourself as the first choice among your ideal customers.

HARNESSING THE POWER OF PERSONALITY FOR YOUR BRAND

I want to share one secret that will take you to a completely new level: the power of your own personality.

Every day in my work I meet people who have amazing personalities. Then I go and check out their blogs, their articles, videos and books – any of the ways they represent themselves in their business world. I often discover that they are totally flat and stale – they have a dull, corporate feeling.

I have to tell you that if you truly want to be the celebrity expert in your market, you have to do the exact opposite. A dull, corporate approach is not what your clients and prospects want. They want to know who you really are. The fact is that we connect best with people we can relate to; who are like us in some way – whether it’s the way they think, their lifestyle, their age, their background… whatever.

So, if you want to build your expert brand, your expertise has to align with your personality and who you’re trying to connect with. You’ve probably heard it said that success is 10 percent what you

know and 90 percent the rest. I’m not sure if these numbers are correct but I am sure the message is spot-on. In short, people have to know you before they’ll listen to you.

If they don’t know who you are then they don’t know if they should take your advice. So, you’ve got to let them in. And yes, that does mean you need to show them your quirks and idiosyncrasies. Now, there may be things you don’t want to get into – such as politics and religion – but you should be aware that the more polarizing you are, the more magnetic you will become to those who are like you. The more you let people know who you really are, the more they’ll either see themselves in you or they’ll see they’re not like you. So it’s also true that, the more polarizing you are, the more you’ll push some people away. But the benefit of that is that the people who identify with you will be even more attracted to you.

You can probably think of personalities right now – whether in business or in entertainment – you cannot stand. You just can’t figure out how they have such a big following. Well, it’s because of this rule. There are people who feel like them and the more polarizing they are the more they’re drawn to them.

Becoming a celebrity expert is easier than you think, and it is simply the fastest, best, and easiest way of creating a successful, highly profitable business or career in any field – if you follow the right process.

Visit www.tracymyers.com for more information.

BY TRACY MYERSTRACY MYERS IS AN AWARD-WINNING

SMALL BUSINESS MARKETING & BRANDING SOLUTIONS SPECIALIST, CAR DEALERSHIP OWNER, BEST-SELLING AUTHOR, SPEAKER, BUSINESS COACH AND ENTREPRENEUR. HE IS COMMONLY REFERRED TO AS THE

NATION’S PREMIER AUTOMOTIVE SOLUTIONS PROVIDER WHILE BEST-SELLING AUTHOR AND LEGENDARY SPEAKER BRIAN TRACY CALLED HIM “A VISIONARY…A WALT DISNEY FOR A NEW GENERATION.”

HE IS ALSO A CERTIFIED MASTER DEALER® AND WAS THE YOUNGEST EVER RECIPIENT OF THE NATIONAL QUALITY DEALER OF THE YEAR AWARD BY THE NIADA, WHICH IS THE HIGHEST OBTAINABLE HONOR IN THE USED CAR INDUSTRY. HIS CAR DEALERSHIP, FRANK MYERS AUTO MAXX, WAS RECENTLY RECOGNIZED AS THE NUMBER ONE SMALL BUSINESS IN NC BY BUSINESS LEADER MAGAZINE, ONE OF THE TOP 3 DEALERSHIPS TO WORK FOR IN THE COUNTRY BY THE DEALER BUSINESS JOURNAL, ONE OF THE TOP 15 INDEPENDENT AUTOMOTIVE RETAILERS IN THE UNITED STATES BY AUTO DEALER MONTHLY MAGAZINE AND ONE OF THE FASTEST GROWING PRIVATELY OWNED SMALL BUSINESSES IN AMERICA BY INC. MAGAZINE.

AS THE FOUNDER OF HIS OWN COACHING PROGRAM, TRACY TEACHES AMBITIOUS CAR DEALERSHIP OWNERS AND EMPLOYEES HOW TO GET NOTICED, GAIN INSTANT CREDIBILITY, MAKE MILLIONS AND DOMINATE THEIR COMPETITION BY BUILDING THEIR EXPERT STATUS.

Why You Are the Brand, Stupid!U S I N G T H E P OW E R O F C E L E B R I T Y T O I N C R E A S E SA L E S

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“We are pleased to have been selected as the new accounting firm for the Alabama Independent Automobile Dealers Association,” said Rush Letson, president of Letson & Associates, P.C. – a small CPA firm that focuses on client relationships, delivering quality services for the entire array of accounting and tax issues of its clients.

Rush joined his dad’s practice in 2002 after graduating from the University of Alabama. He is currently President of the firm. The firm’s staff of five includes several members who have been with the firm since its inception.

Rush has lived in the Birmingham area his entire life. He is deeply involved with and committed to his family and community. He and his wife currently live in Hoover with their two little girls.

The Alabama Independent Automobile Dealers Association Inc. is proud to welcome Letson & Associates on board. We look forward to working with them and are happy to be one of their clients.

AIADA WELCOMES NEW ACCOUNTING FIRM A S S O C I AT I O N N E W S

Things sure are changing at ADESA Birmingham. With a revamped sales strategy and a new general manager, this auction is moving in a

different direction. More importantly, it’s looking to win over the business of Alabama’s independent dealers. Priority number one? Making it easier for dealers to buy and sell.

Changing the way vehicles run through the lanes was the first step. The new sale line-up helps dealers by maximizing vehicle visibility among potential buyers. Additional sales opportunities are also planned for both new franchise and independent dealers through combined dealer/fleet vehicle sales.

“Dealer consignment wasn’t as robust as we’d like,” said general manager John Rea. “Used car dealers are the lifeline of our business. We’re willing to do whatever it takes to get them in here and keep them happy.”

A former president of the National Auto Auction Association, Rea has overseen operations at ADESA Birmingham since May 2012. He’s worked closely with staff to create a dealer-focused auction that delivers a better experience for customers. The process has been rewarding, but not without challenges.

The auction is currently undergoing renovations that will benefit customers even further, including remodeled offices, new blocks, new lanes, and a revamped mechanical shop.

“There was already a great team in place when I took over, but we’ve made a few minor adjustments. Our focus now is really on customer service and building relationships,” said Rea. “We hear the frustrations of independent dealers. And where there are issues, we’re finding solutions.”

Rea is optimistic about the future, and he’s glad to be in a familiar place. He believes his many years of knowledge will serve him well as ADESA Birmingham continues to grow.

A third-generation auction man, Rea began his career at family owned Rea Brothers’ Mid-South Auto Auction in 1987. He took on the role of fleet/lease manager at ADESA Charlotte in 1994 and later became general manager at ADESA Austin. Rea returned to his hometown of Pearl, Mississippi to run the family business in 2000. He most recently served as COO for Auction Software, Inc., a company that provides operating systems for automobile auctions.

“I love the auction business. It’s like organized chaos,” Rea noted. “But in order for the whole production to come together—to really deliver for your customers—you have to be on top of it. When you’ve been doing this all your life, it’s all you know. And it never gets out of your system,” he added. “For me, this is home—this is all I know.” AIADA WELCOMES JOHN TO ALABAMA AND OUR DEALER COMMUNITY. ADESA HAS BEEN A GREAT PARTNER WITH AIADA, AND OUR INDEPENDENT DEALER MEMBERS, FOR MANY YEARS. JOHN HAS ASSURED TO US THAT THIS RELATIONSHIP IS SOMETHING HE WISHES TO NOT ONLY MAINTAIN, BUT EXPAND UPON. THANK YOU, JOHN – YOUR INFECTIOUS SMILE AND “CAN DO” ATTITUDE WILL BE A GREAT ASSET TO OUR DEALERS. WE HOPE TO HAVE A GREAT FUTURE TOGETHER FOR MANY YEARS TO COME. WELCOME FRIEND.

New Leadership at ADESA Birmingham Brings Benefits to Dealers

U S I N G S T R AT E G I C M A R K E T I N G T O B O O S T SA L E S

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U S I N G S T R AT E G I C M A R K E T I N G T O B O O S T SA L E S

HE’D RATHER BE FISHIN’What does it take to see a 100% sales

increase in a year? Larry Kirby, expert redfish fisherman, is always fishing for the right team, a strategic marketing plan, and the perfect catch.

This year marked the 10th anniversary of LCM motors, and Larry Kirby’s 38th year in the auto industry. Twenty-plus years working for new car franchise stores brought Larry to realize, “I was tired of working for someone else 80 hours a week, so instead I work 75 for myself.”

Even if the shorter hours weren’t what convinced Larry to open his own dealership, his knowledge of the industry and Mobile’s unique market were certainly reason enough.

In 2002, Larry opened LCM motors with two partners, Carl Davis and Mike Scott, branding themselves with the slogan “Cars from guys who know cars,” and boasting an impressive 100 years of combined auto industry experience. After he and his wife Renee bought out Davis in 2003, then Scott in 2006, Larry became CEO of LCM, and has continued to successfully lead the company in the six years since.

On average, LCM sells 40 cars per month. Its most established inventory is $10,000-$15,000 vehicles, catering to a market divided evenly between prime and subprime customers. Throughout 2012, LCM had incredible improvement, more than doubling sales in December 2012 compared to the previous December.

How did he do it?Larry said his team has been essential

to LCM’s development. Success is never a one-man show, and he wisely chose a right-hand man with a talent for financing, Don Gardener, bringing him into the

business in 2010 as general manager of F&I. To produce an excellent marketing strategy, Larry has seamlessly combined his knowledge of the Mobile auto industry with the skills of his wife Renee, an expert saleswoman with a talent for marketing. Renee is an account executive for a major television network in the Mobile area, and facilitates most of LCM’s marketing.

To boost LCM’s presence in the new arena of social networking, and to represent the second generation of Kirbys, Larry added his daughter Haley to the LCM team. Social media is a tremendous networking and advertising opportunity, but as any person unfamiliar with it agrees, operating such a page can be a touch overwhelming.

That’s why Larry hired Haley to manage LCM’s Facebook page and online sales. At 27, she knows exactly how to market to other young people, and has ample experience navigating a social media site.

LCM’s marketing is strategic rather than excessive. Larry’s many years working in the Mobile auto industry have afforded him a thorough understanding of the existing market and the demographics of the buyers supplying demand, allowing him to place fewer and more effective ads targeting his prospective customers.

Rather than flooding the general public with tidal waves of ads irrelevant to many of them, Larry and Renee have mapped out the unique demographic of the customers in the Mobile area. They know their region. Using that knowledge they cater their advertising toward the specific types of people providing their business. Money doesn’t get wasted on commercials relevant to only a fraction of their audience.

Some of LCM’s most successful marketing ventures include displaying inventory on Cars.com and AutoTrader, bringing customers from hundreds of miles outside Mobile; a live radio commercial featuring the week’s deals announced by a familiar outdoor radio show personality – none other than Larry himself; a large display of LCM’s phone number in front of the car lot soliciting drive-by customers; and a commercial on Me TV, a television source for citizens lacking cable or satellite television, which costs a mere $4 per spot. In total, $75 is spent per unit on marketing – at most.

Each company has a brand, which they imprint, intentionally or not, into people’s minds. Some have catchy slogans or memorable mascots – LCM has Larry. An avid redfish fisherman, Larry used to host a popular lunchtime live radio show, The Outdoor Show. When he runs a radio commercial, he often gets calls from people who still recognize his voice.

In his spare time, Larry loves to fish in the marshlands of Louisiana, and participates in as many as 10 fishing tournaments throughout the year. Fishing tournaments, most attended by at least 100 people, provide Larry not only with entertainment, but with business networking.

“It’s like a big family,” Larry said.Like most families, this one shows

loyalty and support for its members, sending business his way. Whether he’s on a boat or on his lot, Larry Kirby is always fishing.

BY VICTORIA SMITH VICTORIA SMITH IS THE DAUGHTER OF TODD SMITH, PRESIDENT OF DOTHAN MOTOR CO., AIADA PAST PRESIDENT AND ACTIVE BOARD MEMBER.

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Dealers are familiar with what it takes to comply with the FTC’s Used Car Rule, but are you aware of the key role you play in drafting the regulations that apply to your industry?

Officially known as the Used Motor Vehicle Trade Regulation Rule (though only its mother calls it that), the rule requires dealers to display a Buyers Guide on used cars offered for sale.

But FTC regulations aren’t written in stone. To ensure that rules keep up with the times, every 10 years or so the FTC revisits what’s on the books. Is there a continuing need for the rule? Have there been changes to the technological or regulatory landscape that need to be addressed?

As part of that ongoing review, the FTC asked for feedback about the future of the Used Car Rule – and boy, did we get an earful. Used car dealers, consumer groups, industry associations and government agencies filed comments about how the

Used Car Rule is working.From what we heard, a lot has changed

in how people shop for used cars and how you do business. Based on what we heard, the FTC has proposed modifications to the Buyers Guide and is again asking you to weigh in on suggested revisions.

What’s under consideration? You’ll want to read the complete document on the Automobiles page of www.business.ftc.gov, but as the FTC explained in a Dec. 4 announcement, it’s proposing four primary changes to the Buyers Guide.

Adding a reference to how consumers can get information about a vehicle’s history: There’s more information available these days about a vehicle’s history and the FTC wants to help empower consumers without burdening businesses. Therefore, the agency is proposing to add a statement to the Buyers Guide encouraging consumers to seek vehicle history information and directing

them to a new FTC website for more information.

As the FTC notice makes clear, “Dealers would not be required to obtain vehicle histories or to display specific vehicle history information on the proposed revised Buyers Guide. The Buyers Guide would continue to recommend to consumers that they protect themselves by obtaining an independent inspection before making a purchase.”

Revising the list of systems on the back of the Buyers Guide: Dealers are familiar with the list of systems included on the Buyers Guide, and the FTC thinks it’s a good idea to keep it. It helps consumers compare warranties on different cars or from different dealers – and it’s a handy checklist for the mechanical and safety systems prospective buyers might want to have inspected. But the FTC wants to revise the list to include

U S E D CA R D E A L E R S , C O N S U M E R G RO U P S , I N D U S T RY A S S O C I AT I O N S A N D G OV E R N M E N T AG E N C I E S F I L E D C O M M E N T S A B O U T H OW T H E U S E D CA R R U L E I S WO R K I N G .

USED CAR RULE CHANGES: HAVE YOU WEIGHED IN?

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catalytic converters and airbags. Adding a reference to the Spanish-

language Buyers Guide: The Used Car Rule already requires dealers to display Spanish-language Buyers Guides when they conduct sales in Spanish. But to ensure the Spanish guide reaches its intended audience, the FTC is proposing to add a sentence in Spanish on the face of the English-language Buyers Guide, alerting Spanish-speaking consumers that they can ask for a copy in Spanish.

Adding more information about warranties: The FTC is proposing to place boxes on the back of the Buyers Guide where dealers will have the option to say whether the manufacturer’s warranty still applies, the manufacturer’s used vehicle warranty – such as a certified pre-owned warranty – applies, or some other used vehicle warranty applies.

The FTC would like your feedback on those suggested revisions, including your thoughts about the kind of information that should be available on any new FTC site dealing with vehicle histories.

But that’s not all the agency is asking for this time around. The FTC also would like to hear what you have to say about Internet sales of used vehicles. Have you spotted deceptive practices? If deceptive practices

are prevalent, are there regulatory steps the FTC should consider taking?

The deadline for comments is Feb. 11. By the way, the days of submitting documents in triplicate are over. It’s easy to file a comment online.

In addition, the FTC announced a final rule that makes some technical corrections to the Spanish translation of the Buyers Guide. That portion of the rule takes effect Feb. 11, so you’ll want to make sure your dealership is using the new version of the Spanish-language Buyers Guide, available on the Automobiles page of www.business.ftc.gov.

Editor’s note: NIADA met with the FTC attorneys responsible for oversight of the Used Car Rule in December to discuss the proposed changes, and after soliciting input from its members, the association is preparing comments to submit to the FTC. If you have any additional comments or ideas about the rule, please contact NIADA’s Georgia Brown at 1-800-682-3837 or [email protected].

BY LESLEY FAIR LESLEY FAIR IS A SENIOR ATTORNEY WITH THE FEDERAL TRADE COMMISSION’S BUREAU OF CONSUMER PROTECTION AND HAS REPRESENTED THE FTC IN DECEPTIVE ADVERTISING INVESTIGATIONS. SHE NOW SPECIALIZES IN BUSINESS EDUCATION AND COMPLIANCE.

Have you kept up to date with the rules and laws that could affect your dealership?

The start of the New Year is the perfect time for a quick compliance refresher, and the Bureau of Consumer Protection’s Automobiles site is a quick and comprehensive reference source.

Designed with dealers in mind, the site has compiled a variety of resources discussing things like the Used Car Rule, labeling guidelines for alternative fueled vehicles, and how the Privacy Rule applies to auto dealers.

Examples of dealer resources available on the site include:

• A Dealer’s Guide to the Used Car Rule, which provides valuable compliance tips

• Copies of the required Buyers Guide, in English and Spanish

• Fillable versions of the English and Spanish Buyers Guides.

VISIT HTTP://BUSINESS.FTC.GOV/SELECTED-INDUSTRIES/AUTOMOBILES FOR MORE INFORMATION.

KEEPING UP WITH COMPLIANCE

R U L E S A N D L AW S

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Here’s a rundown of some of the latest governmental issues and activity affecting the used car industry from NIADA lobbyist Sante Esposito and NIADA regulatory counsel Shaun Petersen.

LEGISLATIVE REPORTCongress rang in the new year by

passing the American Taxpayer Relief Act of 2012, which was signed by the President on Jan. 2. The bill contains a series of tax rate cuts that restored marginal tax rates for certain income thresholds to their 2012 levels as set by Congress in 2001 and 2003 and extended in 2010 (the so-called Bush tax cuts).

The marginal tax rate for individuals with taxable income of $400,000 per year, or $450,000 if married filing a joint return, is 39.6 percent. The capital gains tax rate for taxpayers in that bracket rose from 15 percent to 20 percent.

Perhaps the most noticeable impact of the legislation is that the new law did not renew the Social Security payroll tax cut that has been in place for the past two years. During 2011 and 2012, the employee portion of the Social Security tax was reduced from 6.2 percent to 4.2 percent, and the self-employment tax was reduced from 12.4 percent to 10.4 percent. Because those rates expired on Jan. 1, workers’ Social Security withholding increased by 2 percent beginning with the first paycheck of 2013.

The new law contains several tax benefits for small businesses, such as a provision that allows small businesses to recover the costs of qualified new equipment faster than the ordinary schedule by permitting the depreciation of 50 percent of the cost in the first year.

It also extends through 2013 tax credits for employers who hire military veterans or individuals from underserved communities. Other extended tax credits include a credit for two- or three-wheeled plug-in electric vehicles.

2012 RECAPHere’s a reminder of a few of the issues

considered by Congress in the past year and some of the proposals made during the previous session.

It is worth noting that any bills proposed by the previous Congress “died” at the end of the session. Any subsequent action on them requires the new Congress to begin anew – that is, bills must be introduced again to start the legislative process.

H.R.527, THE REGULATORY FLEXIBILITY IMPROVEMENTS ACT OF 2011

The bill passed the House in December 2011 and was referred to the Senate Homeland Security and Governmental Affairs Committee.

H.R. 527 would ensure that federal agencies comply with the 1980 Regulatory Flexibility Act and close loopholes used by agencies to avoid compliance with the RFA.

It would also require a better assessment of the impact regulations have on small businesses, forcing agencies to perform better periodic review of rules, and granting the Chief Counsel for Advocacy at the Small Business Administration greater powers for enforcement of the RFA. And it would mandate stricter analysis of the economic impact any proposed rules would have on small entities, including businesses, organizations and governmental jurisdictions.

A similar bill, S.474, the Small Business Regulatory Freedom Act of 2011, was introduced in the Senate in March 2011.

It sets forth criteria for review of a rule, including the continued need for the rule, the complexity of the rule, and the impact of the rule on small entities. It terminates any rule if the issuing agency has failed to complete a required periodic review.

It would also allow small entities to seek judicial review of initial regulatory flexibility analyses and to obtain an injunction of a proposed rule that is noncompliant with RFA requirements.

S. 3468, THE INDEPENDENT AGENCY REGULATORY ANALYSIS ACT OF 2012

Under the bill, the White House would receive explicit authority to influence the rulemaking process of regulatory agencies, including the Federal Trade Commission and the Consumer Financial Protection Bureau.

The President, through an executive order, would be allowed to mandate at the minimum a 13-point test for rulemaking, including finding “available alternatives to direct regulation,” evaluating costs and benefits, and periodically reviewing existing rules to make agencies “more effective or less burdensome.”

For rules with an annual effect of $100 million or more on the economy, agencies would submit their proposals to the White House’s Office of Information and Regulatory Affairs. A negative review from the office would delay a rule for up to three months

and force the agency to explain its approach.H.R.1449, THE MOTOR VEHICLE OWNERS RIGHT TO REPAIR ACT OF 2011

The bill would require car manufacturers to provide to the vehicle owner and service provider all information necessary to diagnose, service, maintain or repair the vehicle; to offer for sale any related tool or equipment; and to provide the information that enables tool companies to manufacture tools with the same functional characteristics.

The legislation provides car companies with protection for trade secrets, only requiring them to make available the same nonproprietary diagnostic and repair information they provide their franchised dealers.

H.R.229, THE MICHAEL JON NEWKIRK TRANSPORTATION SAFETY ENHANCEMENT ACT OF 2011

The bill would withhold a percentage of federal-aid highway funds to states that do not enact or enforce a law that requires annual vehicle inspections, including seat belts and speedometers.

H.R.164, THE DAMAGED VEHICLE INFORMATION ACT

The bill would require greater disclosure of information relating to the market value and safety of damaged motor vehicles, requiring anyone who terminates a motor vehicle contract due to flood or water damage, collision, fire damage, theft and recovery, or any other circumstance that adversely affects the fair market value to disclose to the public the VIN, the date of contract termination, the odometer reading, whether the vehicle’s airbags deployed in the incident that led to the termination, and the cause of termination.

REGULATORY REPORTConsumer Financial Protection BureauThe CFPB announced plans to share

consumer complaint data with various state regulatory bodies.

The current plan will only allow states to access information from the CFPB, while the CFPB will not have access to state information. The long-term goal of the information sharing is to give the CFPB and state agencies access to each other’s consumer complaints, as well as access to local agencies, congressional offices and other appropriate agencies.

WA S H I N GT O N U P DAT E

NIADA GOVERNMENT REPORT

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NIADA GOVERNMENT REPORTUnited Acceptance, Inc., a financial organization founded in 1991 that provides capital

and servicing solutions to Buy Here-Pay Here vehicle dealerships, captive finance companies and independent finance companies, has joined NIADA as a Bronze level National Corporate Partner.

UAI’s strong long-term relationships with auto dealers and its employees have contributed to its growth from a local company in Atlanta to an organization that purchases receivables nationwide.

UAI’s mission is to be a strong financial partner to used car dealerships, allowing them to accelerate their profits though the sale of their receivables – its slogan is “Profits Through Partnership.”

At a time in which it is becoming increasingly difficult to secure credit facilities, selling contracts can be a viable source of raising capital. United Acceptance purchases automobile installment sales contracts (bulk receivables) from BHPH dealers, franchise dealers, finance companies and banks. Its bulk purchase program is simple, and quick funding is available to assist with immediate cash flow needs.

UAI can turn uncollected receivables into liquid cash, reduce risk and repossession costs, improve yield, improve profit versus point-of-sale financing and reduce stress by allowing dealers to sell vehicles instead of collecting debts.

FOR MORE INFORMATION, VISIT WWW.UAIDIRECT.COM OR CALL 877-281-2360.

United Acceptance Joins as a Bronze Partner

A S S O C I AT I O N N E W S

OSHA requirements, workplace diversity, Gramm-Leach-Bliley, Red Flags Rules…Keeping up with all of the compliance demands can be overwhelming for any dealer. And now, with the FTC and the CFPB starting to more closely scrutinize the auto industry, it’s even more vital than ever for your entire staff to help keep your dealership compliant.

NIADA wants to help ease the burden. Starting in February 2013, dealers

can jump-start their compliance training with NIADA’s online suite of dealer compliance training materials. Subscribers will have access to videos, checklists, key forms, documents, and more…all at their fingertips, on demand. Don’t worry – for dealers who prefer, content is also available on disc. You’ll even be notified when new training is added, so you can stay ahead of the curve.

FOR ADDITIONAL INFORMATION VISIT WWW.NIADA .COM OR CONTACT GEORGIA@NIADA .COM.

Jump-Start Your Compliance Training

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WO R K I N G T O G E T H E R T O M A K E YO U R B U S I N E S S B E T T E R

THE SALE STARTS HEREWe understand “it ain’t easy” and want

to help make most parts of this business easier.

A person is looking for a used vehicle, by way of the Internet; newspapers and magazines; television and radio ads; or even beating the pavement and shopping from dealership to dealership. He finds the vehicle he likes and he buys it.

It’s that simple, right? Not for the dealer! We know the customer expects you, as a

professional, to not only sell him a vehicle that has been thoroughly inspected, but also to provide great customer service. That’s one of the reasons he came to you. You work hard and make the sale happen.

For the dealer it’s just the beginning. Now you have to make sure the customer is who he says he is; check the OFAC list and make sure he is not on it (and keep a record of this); do the Gramm-Leach-Bliley reporting; etc. Once this is achieved you are ready to print the needed papers for the lender and process the loan. If it’s a cash deal your customer will need all the paperwork to assume ownership of the vehicle. All of this is needed for your customer’s protection and convenience, at the same time your interests also need protection.

Frazer Dealer Management Software allows you to print all the forms needed to complete the deal, including (but not limited to):

•MVT-5-13 12/11 Alabama Power Of Attorney

• Retail installment contracts• Bill of sale• Odometer statements (also on trade-in)• Due bill• Dealer warranty disclaimer• Forms for outside financing companies

Frazer also provides an inventory list for your sales team, along with an itemized list of repairs on each vehicle, detailing who you are buying parts from, or labor and

total spend at a repair shop. It is always said a good deal is when

everyone leaves happy – buyer, seller, and lender. At Frazer, we believe that a good deal isn’t just when everyone leaves happy, it’s when they remain happy, and are protected for the duration of their relationship.

Frazer Computing, Inc. now serves more than 700 customers in the state of Alabama, and more than 9,000 customers nationwide. Much of our success in Alabama is due to the fact that in 1995, Randy Jones entered into an epic partnership with Frazer Computing, Inc. to provide Alabama used car dealers with the essential program to manage business on a day-to-day basis. The combination of Randy’s outgoing personality and dealership knowledge with Frazer’s easy-to-use, affordable software resulted in Frazer becoming a legend in the industry, the go-to software of choice for the used car dealer in Alabama.

With Frazer Computing, you are not just a number – you are the number one priority. Randy and his son Casey represent Frazer admirably in Alabama; a staff of 39 endeavors at Frazer headquarters to achieve their foremost goal of providing friendly, knowledgeable support for all customers. When you call the Frazer team, you don’t get an automated voice – you get an animated voice, eager to make sure you have the best support experience possible. Support is not limited to technical issues; the Frazer staff is happy to assist with any questions regarding use of the program and how it relates the used car business.

However, we try not to limit our relationship to just the dealer management system. We try to assist our dealers in many areas outside our relationship if they need or require help. When a change in regulations is coming, we want our dealers

to be aware of changes and how they might impact their dealership and its bottom line.

Frazer Computing has been helping used car dealers manage their businesses for more than 25 years. We look at our dealers as our partners, so if a dealer has a problem it is never his alone, but ours together. Along with the Alabama Independent Automobile Dealers Association (AIADA), we take great pride in helping to make the used automobile business easier in Alabama.

Our relationship with AIADA helps us stay on top of problems in the industry before they become our dealer’s problems. And as a partner with AIADA and NIADA we have a leg up that helps us stay abreast of regulatory and legal changes in the industry, so we can prepare and act properly to assist our dealers in avoiding costly pitfalls that could prevent them from remaining profitable.

We at Frazer Dealer management know the importance of a strong association, and how hard it is to keep the business environment favorable. This does not come by chance; it takes a lot of long days and late hours working with our state legislatures, congress, state and federal regulatory agencies, member dealers and many others to achieve these results.

Now I am going to use my soap box...Do you know why the automotive

business is so good in Alabama? It is because of the Alabama

Independent Automobile Dealers Association. It takes a lot of hard work to keep abreast with local and federal changes. Each and every year there are wolves at your door, be they from Montgomery, AL; Washington, DC; or even Sacramento, CA. Your national and state associations are beating them away and protecting your business, and sometimes you may never even know. If you think the protection such as this appears from thin

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air or a good business fairy appears and makes it all go away, think again. This is accomplished through your participation in the National Independent Automobile Dealers Association and AIADA.

Let me tell you what really chaps my butt: non-member dealers who are happy to benefit from members’ efforts, but don’t care enough to become members themselves. Sometimes when I go to the auctions, a dealer will tell me how some particular change is going to put him under, and asks me what the AIADA is going to do about it. So, I ask him, “Are you a member? Do you participate in local or state meetings where we discuss all type and manner of issues and problems, and get everyone’s input as to how to handle them?” About 80 percent of the time, the answer is no. This tells me that 20% of the active dealers in Alabama are trying to help everyone else. That just doesn’t seem fair.

Do you want someone else deciding your future? It only takes a couple hours of your time 3-4 times per year to attend a local meeting and stay on top of what is going on in your market (we even feed you a good meal). Don’t you think it’s worth investing a few hours every now and then in order to make sure your business is the best it can be?

Individually, it’s a struggle to be heard; collectively, we are a force to be reckoned with. The more members we have, the greater chance we have to protect our interests, and to defeat the naysayers and “can’t doers” before they hinder free enterprise and entrepreneurial spirit.

So go find the AIADA membership form in this magazine, and fax it in TODAY!

AIADA WISHES TO THANK RANDY JONES AND FRAZER COMPUTING FOR FREELY GIVING OF THEIR TIME AND MONIES TO MAKE THIS A BETTER ASSOCIATION. RANDY’S HARD WORK AND DEDICATION IS TIRELESS, ESPECIALLY AT OUR CONVENTION. HE IS ALWAYS READY WITH A HELPING HAND AND A SMILE. THIS ASSOCIATION IS MUCH BETTER OFF FINANCIALLY AND EDUCATIONALLY WITH RANDY JONES AS A FRIEND AND PARTICIPANT. THANK YOU, RANDY JONES; AND THANK YOU FRAZER COMPUTING FOR ALLOWING RANDY TO BE SUCH A LARGE PART OF OUR ASSOCIATION.

Dealers operate in a business and legal environment that is rapidly changing. You are required to stay up to date on new laws, regulations, administrative rules, court rulings and cases. This is a daunting task, even for lawyers (and we don’t have to also try to sell cars at the same time).

At Galese & Ingram, one of the challenges we have faced through the years is to how to best help our clients know what developments affect them and what actions they should take as a result of these developments. To do this, we have historically given an update at the AIADA annual conference. Although helpful, this is only one time per year, and is only to a limited audience.

At times, we’ve also presented seminars on important developments, but giving these seminars hasn’t satisfied our desire to keep our clients up to date. We’ve even published articles explaining new legal developments, but because of the time that it takes to publish such articles, it’s hard to for them to be timely. With all of these challenges, we continually attempt to find better ways to keep our clients up to date. That’s why we’ve implemented a new client section on our website, where we will publish articles covering various areas of your business. We will continue to update those articles and add new articles as the need arises. It is also our plan to e-mail new articles to subscribers.

In addition to providing articles helping you learn how to operate your business in accordance with the law, we’ve developed a number of forms for your use. Dealers used to purchase forms in bulk. Recently, however, there has been a dramatic shift to “print on demand” or “plain paper” forms. On the site, we have a number of forms available for you to download and use in your business. We will also do our best to create forms if there is sufficient demand.

As you might expect, developing the site, articles and forms required a substantial amount of effort. Maintaining them and keeping them current will also require a substantial amount of ongoing effort in the future. Because of this, we are not able to offer this as a free service. Instead, we’ve calculated a monthly fee, which takes into account the amount of time and expenses already incurred and expected future expenses, plus the number of people who we expect might utilize the service.

For AIADA members, we’re offering a discounted rate of $50 per month, with a twelve month initial commitment. This will provide you with up-to-date information and forms, as well as the ability to obtain new information and forms as requested at no additional cost. We hope that you will find this to be a valuable service.

FO R A D D I T I O N A L I N FO R M AT I O N , O R T O B E G I N S U B S C R I B I N G , C O N TAC T G A L E S E & I N G R A M AT ( 2 0 5 ) 87 0 - 0 6 6 3 .

ALABAMA RULES OF PROFESSIONAL CONDUCT REQUIRE THAT THE FOLLOWING LANGUAGE ACCOMPANY ANY COMMUNICATION CONCERNING A LAWYER’S SERVICES: “NO REPRESENTATION IS MADE THAT THE QUALITY OF THE LEGAL SERVICES TO BE PERFORMED IS GREATER THAN THE QUALITY OF LEGAL SERVICES PERFORMED BY OTHER LAWYERS.”

Staying Up to Date

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ABC – ATLANTA444 Joe Frank Harris ParkwayCartersville, GA 30120Sale every Tuesday 6 p.m.& Friday 11 a.m.Phone: (770) 382-1010

ABC BIRMINGHAM1046 A.E. Moore DriveMoody, AL 35004Sale every Wednesday 12:30 p.m. Inops at 12 pmPhone: (205) 640-4040

ADESA ATLANTA AUTO AUCTION5055 Oakley Industrial Blvd.Fairbum, GA 30213Sale every Wednesday 8:30 a.m. Phone: (770) 357-2277

ADESA OF BIRMINGHAM804 Sollie Dr.Moody, AL 35004Sale every Monday 6:30 p.m. & Wednesday 9 a.m.Phone: (205) 640-1010

ADESA KNOXVILLE1011 Adesa PkwyLenoir City, TN 37771Sale every Tuesday 6:30 p.m. & Friday 9:30 a.m.Phone: (865) 988-8000

ADESA OF MEMPHIS5400 Getwell Rd.Memphis, TN 38118Sale every Tuesday 9 a.m.Phone: (901) 365-6300

ALBANY AUTO AUCTION1421 Liberty Expressway SEAlbany, GA 31702Sale every Thursday 6:30 p.m.Phone: (229) 435-7709

AMERICA’S AUTO AUCTION6615 Mobile Hwy.Pensacola, FL 32526Sale every Tuesday 9:30 a.m.Phone: (850) 944-1945

ATLANTA AUTO AUCTION4900 Buffington Rd.Red Oak, GA 30272Sale every Thursday 9 a.m.Phone: (404) 762-9211

AUTO AUCTION OF MONTGOMERY6142 Troy HighwayPike Road, AL 36064Sale: every Thursday 10:00 a.m.Phone: (334) 288-3399

BAMA AUTO AUCTION4103 Gault Avenue SouthFt. Payne, AL 35967Sale: every Thursday 6:00 p.m.Phone: (256) 304-0947

BIRMINGHAM AUTO AUCTION125 Meadland CircleBirmingham, AL 35023Sale every Thursday 6 p.m.Phone: (205) 744-4030

CENTER POINT AUTO AUCTION100 13th Ct. NEBirmingham, AL 35215Sale every Monday 6 p.m.Phone: (205) 856-6527

CHATTANOOGA AUTO AUCTION2120 Stein Dr.Chattanooga, TN 37421Sale every Tuesday 10 a.m.Phone: (423) 499-0015

DEALERS AUTO AUCTION OF HUNTSVILLE26125 Hwy 72Athens, AL 35613Sale every Tuesday 9:30 a.m.Phone: (256) 232-0201

DEANCO AUTO AUCTION3664 South Oates St.Dothan, AL 36301Sale every Wednesday 10 a.m.Phone: (334) 792-1116

GEORGIA-CAROLINA AUTO AUCTION884 E. Ridgeway Rd.Commerce, GA 30529Sale every Wednesday 3 p.m. & Friday 6 p.m.Phone: (706) 335-5300

GEORGIA DEALERS’ AUTO AUCTION7205 Campbellton Rd.Atlanta, GA 30331Sale every Tuesday 10 a.m.Phone: (404) 349-5555

GREATER NEW ORLEANS AUTO AUCTION61077 St. Tammany Ave.Slidell, LA 70460Sale every Wednesday 9:30 a.m.Phone: (504) 643-2061

HIGHWAY 101 DEALERS AUTO AUCTION2100 Hwy. 101Rogersville, Al(256) 247-3600Sale Day – Thursday 10:30 a.m.

KELLEY AUTO AUCTION3485 US Hwy. 431Attalla, AL 35954Sale every Tuesday night Phone: (256) 538-9095

LONG BEACH AUTO AUCTION, INC.8494 County Farm Rd.Long Beach, MS 39560Sale every Wednesday 3 p.m.Phone: (228) 452-2030

LOUISIANA’S 1ST CHOICEAUTO AUCTION18310 Woodscale Rd.Hammond, LA 70401Sale every Tuesday 8:30 a.m.Phone: (985) 345-3302

MANHEIM CENTRAL FLORIDA9800 Bachman Rd.Orlando, FL 32824Sale every Wednesday 9 a.m.Phone: (407) 438-1000

MANHEIM NASHVILLE8400 Eastgate Blvd.Mt. Juliet, TN 37122Ford Factory Sale every other Monday 11 a.m.Open Sale every Wednesday 9 a.m.GM Factory Sale every other Thursday 10 a.m.Nissan Factory Sale once per month Friday 9 a.m.Phone: (615) 773-3800

MANHEIM MISSISSIPPI 7510 US Hwy. 49 NHattiesburg, MS 39402Sale every Monday 5 p.m. & Thursday 9 a.m.Phone: (601) 268-7550

MANHEIM METRO ATLANTA2244 Metropolitan Pkwy SWAtlanta, GA 30315Sale every Tuesday noonPhone: (404) 767-3652

MIDFIELD CAR AUCTION1468 Hartman Industrial Blvd.Midfield, AL 35228Sale every Wednesday and Saturday-6:30 p.m.Phone: 205-923-6535

PENSACOLA AUTO AUCTION401 West Burgess Rd.Pensacola, FL 32503Sale every Thursday 9:30 a.m.Phone: (850) 477-3063

SHOALS NORTH ALABAMAAUTO AUCTION651 Fairground RoadMuscle Shoals, AL(256) 381-2745Sale every Tuesday night @ 6:30 p.m.

SOUTH ALABAMA AUTO AUCTION LLC27472 Wilcox RoadRobertsdale, Al251-964-7012Sale Days – Tuesday & Thursday 6:30 p.m.Sat. Auction @ 11 a.m.

YOUR AUCTION3010 Scherer Dr. NSt. Petersburg, FL 33716Sale every other Tuesday 11 a.m. – BirminghamThe Jim Burke Automotive GroupPhone: (800) 675-4444

AUCTION DIRECTORY

(COUPON BOOK IS AVAILABLE WHEN YOU RENEW YOUR MEMBERSHIP)

AUCTIONS PARTICIPATING IN THE 2012-2013 AIADA BENEFIT COUPON BOOK

1. ABC Birmingham $250.00 $250.00 2. ADESA Birmingham $1800.00 $1800.00 3. AMERICA’S AUTO AUCTION –Pensacola $500.00 $500.00 4. ANAHEIM AUTO AUCTION –Birmingham $600.00 $600.00 5. AUTO AUCTION OF MONTGOMERY $600.00 $600.00 6. BAMA AUTO AUCTION – Fort Payne $600.00 $600.00 7. BIRMINGHAM AUTO AUCTION $100.00 $100.00 8. CITY AUTO FINANCE – Floor Plan Floor Plan Fee 9. DEALERS AUTO AUCTION OF HUNTSVILLE LLC $600.00 $600.0010. DEALERS AUTO AUCTION OF MURFREESBORO $600.00 $600.0011. DEALER’S AUTOMOBILE AUCTION OF MOBILE $600.00 $600.0012. DEALER’S AUTOMOBILE AUCTION MISSISSIPPI $600.00 $600.0013. DEANCO AUTO AUCTION - Dothan $600.00 $600.0014. DRIVER’S WAY AUTO AUCTION - Birmingham $225.00 15. FORT PAYNE AUTO AUCTION $200.00 $200.0016. HIGHWAY 101 DEALERS AUTO AUCTION $600.00 $600.0017. INSURANCE AUTO AUCTION- $50.00 each $150.00 (Huntsville, Birmingham & Dothan Locations)18. KELLEY AUTO AUCTION - Attalla $600.00 $600.0019. LONG BEACH AUTO AUCTION - Mississippi $100.00 $100.0020. LOUISIANA’S 1st CHOICE AUTO AUCTION $200.00 $200.0021. MANHEIM ATLANTA $750.00 $750.0022. MANHEIM GEORGIA $750.00 $750.0023. MANHEIM NASHVILLE $600.00 $600.0024. MANHEIM PENSACOLA $250.00 $250.0025. MIDFIELD CAR AUCTION $300.0026. MID SOUTH AUTO AUCTION Pearl, Mississippi $900.00 $900.0027. SHOAL’S NORTH ALABAMA AUTO AUCTION $600.00 $600.0028. TALLAHASSEE AUTO AUCTION $300.00 $300.00

BUY FEE OR SELL

TOTAL VALUE IS $ 13,825.00 $13,450.00

AUCTIONS PARTICIPATING IN THE 2012-2013 AIADA BENEFIT COUPON BOOK

Buy-Here, Pay-Here dealers or auto finance companies who have had complaints filed against them with the Consumer Financial Protection Bureau (CFPB) can soon expect state regulatory agencies to be informed of those complaints, as well.

At the end of 2012, CFPB announced that it was intensifying its efforts to coordinate with state-level departments and share complaint data.

“Our goal in sharing consumer complaints with state agencies is to enhance efficient, transparent, and effective government to better protect American consumers,” Scott Pluta, assistant director for the Office of Consumer Response, noted on the CFPB website.

Complaints will be shared over a secure channel, with identifying consumer information removed. While the data will initially only flow from the CFPB to state agencies, in time the agency also plans to accept complaints and information from state agencies, and make that data available to other federal agencies as appropriate.

CFPB TO SHARE COMPLAINT DATA

C O N S U M E R P RO T E C T I O N U P DAT E

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The National Independent Auto Dealers Association (NIADA) recently welcomed Automotive Finance Corporation and its affiliate, AFC CAL, LLC as a Corporate partner.

AFC is one of the largest providers of independent dealer floorplan financing in North America. AFC’s inventory financing is available for dealer trades and is also accepted at nearly 1,000 auctions. AFC, as part of KAR Auction Services, Inc., also provides floorplan financing programs for retail and wholesale automobile dealers, RV dealers, motorcycle dealers, salvage and daily rental operators.

Operating from more than 100 local branches, AFC’s staff of seasoned professionals knows the local market and understands the needs of their customers.

AFC is the only automotive inventory finance company endorsed by NIADA as part of their Corporate Partners Program. As an AIADA member, you can take advantage of AFC’s services, and help your association at the same time!

Thanks to AFC’s Referral Program, the association can earn money for every successful referral of a dealer member – money that we can invest in providing the best possible services and support for our members.

The process is easy: 1. Contact AIADA and let us know

you’re interested in AFC’s services.2. We’ll complete a referral form,

and provide AFC with your basic information (dealer name, primary contact, address, phone number and email) so they can contact you.

3. If you sign an AFC contract and floorplan a unit with AFC, the association will receive a check for $100!

We appreciate the value that AFC brings to the independent dealer marketplace. Many dealers rely on AFC to provide the capital needed to help their businesses thrive, and we think they’re a valuable addition to NIADA’s Corporate Partners Program.

To find out more about NIADA’s Corporate Partners and National Member Benefit Program, visit www.niada.com or call the AIADA association to participate in the referral program.

FRAMEWORK TO ACHIEVE A PROVISIONING MINDSET

About a year ago, I introduced the idea of “provisioning” inventory as a replacement for the long-held practice of dealers “stocking cars” to feed their used vehicle operations.

The basic concept is that stocking cars doesn’t sufficiently capture the more holistic nature and needs of retailing used vehicles to achieve maximum return on investment and profitability in today’s more competitive and Internet-driven marketplace.

If you’re still out there stocking cars, you’ll get crushed. You’re competing against dealers who use market-specific supply and demand data to know the right cars, the right price to pay and the right retail asking price to sell cars quickly and achieve their profit goals, again and again.

Beyond the laser-like focus on each used vehicle’s ROI and profitability potential, those dealers have also adopted what I call a provisioning mindset for their entire dealerships.

It’s a mindset that starts in used vehicles and, given early successes and roadblocks there, extends to each dealership department. I address this intra-dealership dynamic in greater detail in my soon-to-be-published book, Velocity Overdrive: The Road To Reinvention.

At each provisioning-minded dealership, there are at least one or two people who effectively become the provisioning managers for the dealerships.

They are often general managers, general sales managers or used vehicle managers who lead the reinvention of people and processes to achieve a significant change in the dealership’s culture. Over time, everyone becomes focused on ROI and profitability, department “silos” disappear and the dealership’s bottom line looks better than ever.

All of that got me thinking: I haven’t yet seen a provisioning manager job description for a car dealership.

I wondered what one might look like from a different industry. How do other businesses define a role that is, for the moment, largely a nascent collaboration between select, like-minded souls within dealerships?

A quick Google search for “provisioning manager job description” yielded some extremely relevant results. For example, the responsibilities for the provisioning manager position at Cisco Systems struck me as an effective framework for the leadership required to develop a provisioning mindset at dealerships for three reasons:

The scope: The job starts with a broad vision and empowers the individual to reinvent people and processes to achieve it. It also empowers the individual to change people and processes to realize the strategic vision.

That is exactly the scope of the role GMs, GSMs and used-vehicle managers play as they initiate provisioning efforts at their dealerships. They often ask, “Where can we go from here?” and, “How do we get there?” to craft a broad strategy and guide the implementation of day-to-day details.

The degree of collaboration: It’s pretty fair to envision the provisioning manager as someone who knows how to get buy-in and motivate other people. The job requires the person to actively engage multiple departments and get everyone on the same page.

The same is true in dealerships where provisioning is standard operating procedure. When a used car hits the lot, the managers in used vehicles, service, parts, detailing and sales know the next steps.

The backstops: Cisco requires the provisioning manager to provide “second-level incident management support, and ensure incidents are minimized through design, tools and processes.” This strikes me as a fancy way of saying “anticipate problems and have a process in place to prevent them, and use technology whenever possible.”

For dealers, the potential problems in used vehicles are legion – auction purchases, appraisals, online merchandising, reconditioning, pricing and sales processes can all be profitability trouble spots. That’s why provisioning-minded dealers change people and processes, and adopt technology and tools, to ensure every decision drives the maximum profitability of each used vehicle at each stage of its life cycle.

I’m not necessarily advocating that dealers need to create a bona fide provisioning manager position at their dealerships. But I do believe dealers who pursue and perfect a provisioning mindset will outpace other dealers who are still stocking cars.

BY DALE POLLAK

I N D U S T RY N E W SNIADA WELCOMES AFC TO NATIONAL MEMBER BENEFIT PROGRAM

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AIADA BRICK PAVER BUILDING DRIVEMail form to: AIADA, PO Box 19627, Birmingham, AL 35219

____Yes, I want to purchase ____brick(s) at the cost of $250.00 each.

______Check enclosed _________Credit card charge (see below)(Please write “For Building Fund” on your check)

Engraving DetailsRemember: Maximum of 18 characters per line – INCLUDING spaces and punctuation

Name ______________________________________________

Company ____________________________________________

City and State ________________________________________

If you are doing one in memory of someone:

In Memory of _________________________________________ Name ______________________________________________ By ____________________________________(or City and State)

In Honor of ___________________________________________

Name _______________________________________________

By ___________________________(or City and State)

CREDIT CARD INFORMATION:Credit Card Type ________________________________________

Name on Card ________________________________________________________

Billing Address ___________________________________________________

Credit Card Number _____________________________________

Expiration Date ________________________________________

Security code (3 digits on back of Visa, Mastercard, Discover; 4 digits on front of AMEX) _________

SIGNATURE ___________________________________________

Several years ago, when AIADA first purchased our association office, we sold brick pavers as a building fund drive. For the drive, dealer members, auctions, vendors or even individuals could purchase a brick and have it engraved. In the end, we had enough bricks to pave a border about half way down both sides of the association walkway.

Our membership has increased since then, so we are once again offering the opportunity to purchase a brick paver.

We hope to finish the walkway and complete some additional indoor and outdoor repairs of the association building. These repairs are much needed, and the sale of additional bricks would help defray the cost.

Each brick costs $250, which includes three (3) lines of engraving per brick. Note that Chapter Bricks are slightly larger than the standard bricks. Each engraved line can fit up to 18 characters (including spaces). The bricks can be engraved with whatever information or message you’d like – your company name, in memory or honor of someone, etc.

There is no limit to the number of bricks you’re allowed to purchase. Those of you who purchased a brick before are more than welcome to purchase additional bricks. An order form has even been provided in this publication to make it easier.

We hope you will take this opportunity to support your association office in this endeavor. Pictures of the improvements will be posted in the quarterly magazine so that you can see the repairs that you’re helping to fund.

If you have any questions, please contact Judy Benton at the association office 205-942-1000 or email [email protected].

HELP PAVE THE WAY TO A BETTER ASSOCIATION OFFICE

A S S O C I AT I O N N E W S

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NEW MEMBERS:RICHARD PATECALIFORNIA IMPORTS LLCBIRMINGHAM

MARGARET LEWISEAST ALABAMA SUPERCENTER LLCSMITHS

MARTY BOYLESJACKSONVILLE AUTO SALESJACKSONVILLE

KENNETH J REEVESJIM REEVES AUTOMOTIVE INCASHVILLE

L. C. RAGLAND/MIKE RAGLANDM & L AUTO SALES LLCCRANE HILL

RICKEY PEEKPEEK AUTO PARTSCULLMAN

CHARLES KYSERSHOALS AUTO SALESFLORENCE

JEREMY SCHWINDSCHWIND AUTOMOTIVEROANOKE

WAYLON JONESWAYLON JONES AUTO SALESENTERPRISE

NOVEMBER RENEWALS:PAUL MAYE84 AUTO SALES/DBA PAUL MAYEREPTON

WILLIAM J HARDYADGER AUTOADGER

BOB SELMANAUTO BARGAIN CENTER INCTUSCALOOSA

MEREDITH YESTERAUTOTRADER.COMCHARLOTTE, NC

BILLY/JEFF/KEVIN PAINTERBILLY PAINTER & SONS MOTORSBOAZ

IRENE JOYNERCALCO INCGLENCOE

REX CANTERBURYCANTERBURY AUTO SALESFAYETTE

SHANE TALTONCONSUMER AUTO BROKERSBOAZJIMMY DANIELDANIEL MOTOR CO INCMONTGOMERY

CARSON THOMPSONDEEZZ MOTORS LLCBIRMINGHAM

CHRIS RICHARDSECONOMY AUTO MART INCGADSDEN

ERNEST CRUMP/MARK CRUMPERNEST CRUMP MOTOR COJASPER

JOHN T EVANSEVANS MOTOR COWETUMPKA

JAMES & REGGIE GOINSGOINS AUTO SALESMUSCLE SHOALS

VIRGIL ALLENHOME FINANCIAL SVS OF HUNTSVILLEHUNTSVILLE

JARRED SIMS, CONTACTINSURANCE AUTO AUCTIONS INCBESSEMER

JOHNNY PEARSON/JOEL GOFFJOHNNY PEARSON AUTO SALES LLCMONTGOMERY

JOHN POTEETLOUISIANA’S 1ST CHOICE AUTO AUCTIONHAMMOND, LA

MICHAEL W REEVESM & D AUTO SALESFOLEY

THOMAS O STINSON/JUDY STINSONMID-SOUTH FLEET LIQUIDATORS INCTRUSSVILLE

HARRY CREWMIDWAY AUTO INCJACKSON GAP

ALLEN BUCKNERMOODY MOTORSMOODY

JAMES MYERSMYERS TRUCK & AUTO SALESNAUVOO

TONY PRICEPRICE AUTO SALESJASPER

DWAYNE & DARLENE PIERCER & D TRUCK SALESMERIDIANVILLE

ROBERT LEE COBB JRROBERT COBB MOTORSBOAZ

MARTY STONESCOTTSBORO AUTO SALESSCOTTSBORO

JIMMY BLACKTHE AUTO SUPER CENTER LLCCENTRE

THOMAS GREGERSONTHOMAS SEAN AUTO MARTATTALLA

CHARLES & LISA LIVINGS/HUBERT GLOERUNITED AUTO WHOLESALE LLCSLOCOMB

WALTER BOYD/O N TODDWOODLAND HILLS AUTO SALESTUSCALOOSA

WELCOME NEW MEMBERS AND RENEWALS

THANKYOU FOR YOURSUPPORTMEMBERS!

Looking to improve your bottom line, manage more effectively, improve employee retention,

and leverage the newest and most effective marketing techniques? NIADA can help!

CERTIFIED MASTER DEALER TRAINING

CMD training positions you to take your success to the next level. The CMD designation serves as

recognition of your dedication to the industry, and of your proven record for stability, reliability, and

ethical business practices. February: Dallas

April: AtlantaJuly: Arizona

September: Atlantic City

DEALER 20 GROUPSShare successful ideas and best business practices in this unique, cost-effective 20 Group, designed for

BHPH and retail dealers alike. January: Atlanta

April: DallasAugust: Atlanta

December: Dallas

FO R M O R E I N FO R M AT I O N , V I S I T:W W W. N I A DA . C O M / E D U CAT I O N . P H P

E D U C A T I O N

OSHA requirements, workplace diversity, Gramm-Leach-Bliley, Red Flags Rules…Keeping up with all of the compliance demands can be overwhelming for any dealer. And now, with the FTC and the CFPB starting to more closely scrutinize the auto industry, it’s even more vital than ever for your entire staff to help keep your dealership compliant.

NIADA wants to help ease the burden.

Starting in February 2013, dealers can jump-start their compliance training with NIADA’s online suite of dealer compliance training materials. Subscribers will have access to videos, checklists, key forms, documents, and more…all at their fingertips, on demand. Don’t worry – for dealers who prefer, content is also available on disc. You’ll even be notified when new training is added, so you can stay ahead of the curve.

FOR ADDITIONAL INFORMATION VISIT WWW.NIADA.COM OR CONTACT [email protected].

JUMP-START YOUR COMPLIANCE TRAINING

I N D U S T RY N E W S

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MAKE PLANS TODAY TO ATTEND OUR AIADA YEARLY CONVENTIONJULY 17TH THRU JULY 21ST AT THE PARK VISTA IN BEAUTIFUL GATLINBURG, TNFUN FOR THE WHOLE FAMILY AND EDUCATION, TIPS AND CONTACTS THAT WILL MAKE YOU $$$$$$$$$$$IF YOU REGISTER EARLY YOU WILL BE ELIGIBLE FOR THE EARLY BIRD DRAWING AND RECEIVE A DISCOUNT ON REGISTRATION FEESSEND US YOU INFORMATION AND HOW MANY PLAN TO ATTEND BY EMAIL: [email protected] OR BY FAX: 205-942-3565

Name:_______________________________________________________

Address: _____________________________________________________

Name of Dealership: ____________________________________________

Phone:_______________________________________________________

email: _______________________________________________________

How many plan to attend with your dealership:__________________________

Watch your mail for more convention info coming soon. Please mark your calendars for this event. It promises to be a great convention with great speakers and information to grow your business.

Test Drive Generator Does All the WorkOne of the great things about the

Internet invading the dealership business is the innovative new ways it helps sell cars. Certainly the availability of information about every vehicle on your lot has complicated the business – but sometimes it’s for the better.

An example is the simple idea that customers visiting your website should be able to make an appointment to test drive the car they like without any effort on the part of the dealer. That’s a good thing, because every day there are thousands of leads in your market, and it is pretty tough to engage them all.

Test Drive Generator, a company based in Mukilteo, Wash., has perfected software that allows any dealer, on any type of automotive website platform, to allow customers to schedule their own test drives without any human intervention. Customers just click the button next to the car they like and schedule the test drive on their own.

Why is that a good thing? Think about it. If the customer is scheduling his or her

own test drive, and Test Drive Generator appointments show up 90 to 95 percent of the time, why, oh why, would you want a salesperson to stick his nose in and screw that up?

Once the customer has scheduled a test drive, the folks at Test Drive Generator say, “Leave them alone!”

Nothing good will come of an email or phone call from a salesperson. At best, the customer will still show up. At worst, something the salesperson says or writes will give the customer second thoughts about coming.

Now, you might say your salespeople are tremendous, but why mess with a good thing? Customers are coming for a test drive. Leave them alone and let them arrive. Have you ever seen a salesperson talk a person out of a sale by talking too much? It’s not a pretty sight.

Test Drive Generator takes care of scheduling the test drive appointment. It sends email confirmations and reminders and text reminders. The Test Drive Generator system has a 90 to 95 percent

show ratio and a 60 to 70 percent sold ratio. Perhaps the best thing about Test Drive Generator is the price: $250 per month for a dealership, billed month-to-month, with no long-term contract and no setup fees.

Seems like a pretty good deal to me, whether you get 10 test drives per month or 100. If you want to hear more, call Test Drive Generator at 877-696-0415, email [email protected] or visit www.TestDriveGenerator.com to book a demo.

BY BRETT STEVENSONDEALER MARKETING MAGAZINE

N E W P RO D U C T S

VISIT WWW.TESTDRIVEGENERATOR.COM

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aiada feb/march '13

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