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PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

V i s i t u s a t w w w . a l a b a m a i a d a . c o m

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

APRIL/MAY 2012

AIADA NEW MEMBER BENEFIT

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APRIL/MAY 2012 A I A D A

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w w w . a l a b a m a i a d a . c o m

Great Deer HuntCongratulations to Allen Buckner of Moody Motors in Moody, Ala., and his son, Karson. Allen

loves to hunt deer, and it looks like he’s training his son to follow in his footsteps.Both had a great hunt this season. Allen got a 10point buck, and Karson, age 10, bagged his

!"#$%&'()*%+,-%.--"%/-"-%)011-.%02%34"$,%516&676*%511-2%(62%&-%,6".%$4%!2.%6$%$,-%(6"%14$%.'"028%hunting season.

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A I A D A APRIL/MAY 2012

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EXECUTIVE DIRECTORTony Wilkerson205-942-1000 Fax [email protected]

PRESIDENTRandy Burns [email protected]

PRESIDENT ELECTCharles MoringMidland [email protected]

VICE PRESIDENTTodd [email protected]

SECRETARY/TREASURERRex [email protected]

CHAIRMAN OF BOARDKen [email protected]

DIRECTORS Barry SearcyMuscle [email protected]

John [email protected]

Lance [email protected]

Willie [email protected]

Tommy [email protected]

John [email protected]

Paul [email protected]

Robert [email protected]

Tim [email protected] Birmingham

Wayne [email protected]

Chad [email protected]

Corey BraxtonAuto Professional Car Sales Birmingham, Al

ASSOCIATION ATTORNEYSGalese & Ingram PC John Martin Galese & Jeff Ingram

Executive Committee

INSIDE

WHAT’SNEW

MAGAZINECONTENTS

ADVERTISERSINDEX

06 Special Legislative Report10 Auto Shopping Goes Mobile12 Make the Right Compliance Moves

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION

NIADA HEADQUARTERS:

FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF

THE ALABAMA INDEPENDENT AUTOMOBILE DEALERS AS-SOCIATION IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES CORPORATION, 2521 BROWN BLVD., ARLING-TON, TX 76006-5203; PHONE (817) 640-3838. PERIODI-CALS POSTAGE PAID AT DALLAS, TX AND AT ADDITIONAL OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO NIADA STATE PUBLICATIONS, 2521 BROWN BLVD., AR-LINGTON, TX 76006-5203. THE STATEMENTS AND OPIN-IONS 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 AP-PEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NIADA, DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEA-TURED. COPYRIGHT © 2012 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED. VISIT THE NIADA WEB SITE AT WWW.NIADA.COM.STATE MAGAZINE MGR./SALES!!"#$%!&#'((!)!*#$%+,-'.'/0$1EDITOR 2,.%!3#-4.5',.4#!)!',.%+,-'.'/0$1ART/PRODUCTION MGR. !67#-8*%!9'%,48!)!07#-8*%+,-'.'/0$1PRINTING!!:-41',!;#-,*-,<!

AIADAOFFICE

WEB SITE: WWW.ALABAMAIADA.COM

ADESA ...................................................................7 Ally .......................................................................11AutoTrader.com ..................................... Back CoverCARCO Group ........................................................9Chase ..................................................................18Manheim.com .....................................................17Manheim Nashville ..................... Inside Back CoverNowcom .................................................................5Protective ............................................................15STARS GPS ...........................................................20Sterling Credit ............................ Inside Front CoverUnited Acceptance ...............................................19Westlake Financial ..............................................13

! A2Z EDUCATION SERIES - AutoZoneEducating the independent dealer to deliver the highest

quality service levels to your customers, manage your shop ef!ciently, train your technicians and maximize pro!ts.niada.tv

! NATIONAL TIRE SAFETY WEEK: June 3-9National Tire Safety Week is a nationwide event

sponsored by the Rubber Manufacturers Association to raise consumer awareness about tire safety, help consumers keep their tires safe and demonstrate the industry’s commitment to motorist safety.

Visit www.betiresmart.org and !ll out the form to receive your free National Tire Safety Week kit that includes brochures and other materials.

insideMark Your Calendar

ALABAMA IADA STATE CONVENTION

JULY 12-15, 2012

Note from a MemberHere’s a note that one of our members sent with his membership dues and a donation to the AIADA Auto-Pac:

“I appreciate all the dealers association’s hard work in serving the dealers. You do an excellent job.Thanks again!”

Brian McCarleyBrian’s Auto SalesRussellville, Ala.

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The Republican super majority in the Alabama Legislature has taken up where 0$%!20#,-.%16#$%9-6":%/6#$028%10$$1-%$07-%02%pushing a package of business tax incentives .'"028%$,-%!"#$%$/4%/--)#%4;%$,-%<=><%"-8'16"%session.With 699 bills already pending and

committees considering large, aggressive agendas, the session is certain to be busy.Historically austere budgets have yet to

be considered, and while numerous bills have been introduced to repeal or amend the 2011 immigration act, there appears to be no consensus on what, if anything, lawmakers will do on the controversial subject.The Automobile Dealers Association of

Alabama is already working on a number of issues, including:

IMMIGRATION REFORMThe immigration bill passed in the 2011

session is still the strongest in the nation and the source of much controversy. The governor and Republican legislative leaders have promised to offer amendments to ease compliance burdens while not undermining the bill’s original intent of stemming illegal immigration. Legislation containing those changes has not yet been introduced.ADAA has been providing information to

lawmakers and other policymakers detailing dealers’ concerns with the current law, including proof of citizenship requirements for processing tags and titles, as well as the paperwork burden 4;%?"[email protected]%ABC-"0;9%6;!.6@0$#*Amending the law could be politically

.0;!('1$*%D-74("6$#%/62$%6%$4$61%"-?-61%4"%nothing, while Tea Party and immigration law supporters oppose anything other than very minor changes.

MOTOR VEHICLE ISSUESScrap metal: Last year, ADAA supported

a strong new law to protect dealers, lien holders and vehicle owners while allowing for scrapping old vehicles. This year, there is A bill introduced to combat the rash of metal theft, including catalytic converters.

Driving restrictions: A bill to prohibit texting while driving, which failed last year, has again been introduced.

TAXESTask force: Bills have been introduced in

the Senate and House to create the Alabama E61-#:%F#-%62.%G-6#-%+6H%E07?10!(6$042%+6#)%Force to study streamlining and simplifying the administration and remittance of the levies. Vehicle sales tax increase: A Birmingham

lawmaker introduced a bill to increase the tax on motor vehicles from 2 percent to 4 percent, with the additional revenue going to mass transit. A companion bill would allow Jefferson County to impose an additional 5 percent vehicle license fee for public transportation.Tax Appeals Commission: A bill has

been introduced to create an independent state Tax Appeals Commission outside of the Department of Revenue that could hear taxpayer appeals of state and some city and county tax assessments. Currently, appeals are heard by an administrative law judge who is an employee of the department. The measure is supported by the Business Associations’ Tax Coalition.Tax on food: Democrats have again

introduced a bill to repeal the state sales tax on food and offset the loss of revenue by repealing the federal income tax deduction when calculating state income tax. The &011%/4'1.%,6@-%6%,'8-%!262(061%07?6($%42%many wealthier individuals and passthrough corporate entities like most dealerships and small businesses.

OTHERLegal: After passing a comprehensive

tort reform package in 2011, the legislature is not expected to tackle the issue this year, but several bills have been introduced anyway, including a wellintended but poorly executed “loser pay” measure that will be opposed by the Alabama Civil Justice Reform Committee. Other bills would expand

the jurisdiction of the small claims court. Several industries, including agriculture, accountants, road builders and engineers, have introduced their own torttype bills. Credit freeze: A bill has been introduced

in the House to allow consumers to place a security freeze on their credit reports. An identical bill passed in the House but died in the Senate last year. The bill contains a provision endorsed by ADAA to provide for a 15minute “thaw” — that is, a credit reporting agency would have to provide credit information on a consumer within 15 minutes of it being requested. The provision is designed to ensure that a consumer who had forgotten to “unfreeze” his credit report before deciding to purchase a vehicle or other product on credit would not be unduly delayed in making the purchase.Money laundering: A bill pending in a

House committee would create the state crime of money laundering, which is already illegal under federal law. Like the federal version, the measure would cover auto sales and leases, and virtually every other type of !262(061%$"62#6($042*Guns: A watereddown version of a

36$04261%I0J-%5##4(06$042K#%&011%$4%?"[email protected]%8'2%rights to employees has been introduced. The bill prohibits employers from requiring a job applicant or employee to disclose if he owns, ?4##-##-#:%'#-#%4"%$"62#?4"$#%6%!"-6"7%4"%ammunition. Unlike previous versions of the bill, an employer could regulate or prohibit an employee from possessing or carrying a !"-6"7%6$%/4")*Campaigns: Democrats have introduced

bills to prohibit corporate campaign contributions and limit political action committee contributions to $500 per candidate per election.Highway bond issue: A $650 million

highway bond issue has been proposed.Those are just a few of the many issues

facing legislators — and dealers — between now and the end of the session in midMay. Please feel free to contact AIADA if you have any questions.

Legislature Off to a Fast Start in 2012

S P E C I A L L E G I S L A T I V E R E P O R T

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Legislature

S P E C I A L L E G I S L A T I V E R E P O R T

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NMVTIS Created to Help DealersIn today’s economic environment, there is a great deal of fraud taking place and

if you aren’t careful, it could be your wallet and reputation that suffer.To prevent fraud and protect both dealers and the general public, many dealers

are utilizing the National Motor Vehicle Title Information System, or NMVTIS. The system, run by the U.S. Justice Department, was created to prevent the introduction of branded or stolen motor vehicles into interstate commerce, thus protecting auto dealers and consumers from fraud and reducing the use of stolen vehicles for many other illicit purposes.Through NMVTIS, businesses and consumers are empowered to check the

VIN of any vehicle they are considering acquiring at an exceptionally low cost. Readily available to used auto dealers, providers of NMVTIS data also encourage wholesalers, among others, to check VINs before investing in vehicles, keeping them even one step further from unsuspecting buyers.The data available through NMVTIS is unique in that, unlike commercially

available services, it’s a government program with strict regulations regarding reporting. NMVTIS information includes timely data from state motor vehicle agencies and other entire sectors (such as insurance, auto recyclers, junkyards and salvage businesses) that are addressed by the AntiCar Theft Act.Regulations require all states to participate in the NMVTIS program, and all

-2$0$0-#%6"-%"-L'0"-.%$4%?"[email protected]%#?-(0!(%02;4"76$042%$4%3MC+NE%02%6%#?-(0!(%;4"76$*%%This uniformity is intended to serve as a reliable source of title and brand history for autos, and also elevates the likelihood that a vehicle stolen in Maine will be caught if resold in Florida. The accuracy and timeliness of the information is what differs from private vehicle history reporting services.Information is updated by most states in real time and, at a minimum, by all

states within several days of any transaction occurring. The system contains more than 30 million salvage and total loss records, and imposes strict penalties on entities that fail to report required information. NMVTIS also includes information on buses, trucks, motorcycles, recreational vehicles, motor homes and tractors.As a dealer, there are certain scenarios that should be investigated before

investing in a used auto, and NMVTIS is the most accurate, costeffective source of this information. In addition to accurate, timely information on a vehicle’s title ,0#$4"9:%$,-%#9#$-7%(62%J68%629%&"62.#%80@-2%$4%6%'#-.%@-,0(1-:%6#%/-11%6#%?"[email protected]%salvage and total information, and odometer readings. This means it’s likely a @-,0(1-%$,6$%,6#%&--2%J44.-.:%4"%$4$61-.%62.%"-&'01$:%4"%-@-2%,6.%$,-%4.47-$-"%$67?-"-.%/0$,:%/011%&-%0.-2$0!-.*%%According to the DOJ, the existence of NMVTIS has led to a decline in motor

vehicle thefts. By reducing the market for stolen vehicles, a natural decline in thefts was sure to follow. In Virginia, a 17 percent decrease in thefts was reported #02(-%$,-%#$6$-%07?107-2$-.%/0$,%3MC+NE*%5"0O426:%42-%4;%$,-%!"#$%62.%74#$%6($0@-%NMVTIS participant states, has experienced a 99 percent recovery rate on stolen vehicles. And in Florida, a car theft ring responsible for cloning more than 250 cars, valued at $8 million, was disbanded.Does this mean dealers are now safe due to the mere existence of NMVTIS?

Unfortunately, they are not. There are still land mines to be aware of. NMVTIS is designed to collect information from states, but not to change or streamline laws and terminology to from state to state. Each state has its own laws and terminology, which may be different from its neighbors. That’s why it’s important to )24/%$,-%.-!20$042#%02%$,-%#$6$-#%94'%6"-%#-6"(,028%P0;%94'%!2.%6%'#-.%@-,0(1-%,6#%a history there). The NMVTIS service provider has a glossary of most terms on its website.It is also important to know a NMVTIS Vehicle History Report is intentionally

(42(0#-%62.%0#%4219%02$-2.-.%$4%?"[email protected]%.6$6%42%$,-%!@-%)-9%02.0(6$4"#%6##4(06$-.%with preventing theft and fraud. If your needs go beyond these indicators, it may be best to supplement your NMVTIS search with additional reports from other providers who specialize in different types of information.

Indu

stry

Info

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BY DANI LUNSFORDDANI LUNSFORD IS A NATIONAL SALES AND MARKETING EXECUTIVE WITH SHOWCASE

MANAGEMENT AND AS A CONSULTANT TO IT COMPANIES AND DEALER GROUPS. SHE CAN

Smart Dealers Should Aim Their Ads at Smartphones

Did you know that men aged 3049 do more mobile shopping than other age groups? That 50 percent of the popular Groupon’s business over the next couple of years will come from mobile devices? That Starbucks has taken more than 3 million micropayment transactions?A Leger Marketing survey reported one in

10 respondents said they’d rather lose their motherinlaw than their cellphone.+,4#-%$"-2.#%62.%!8'"-#%6"-%24$%4219%

interesting, they affect mobile shopping for cars and trucks as a whole. Understanding the upcoming trends will help car dealers see how important mobile sites, mobile applications and mobile marketing campaigns will be. In 2011, mobile auto consumers climbed 60

percent. Used car sales are soaring, and more people are looking to buy thanks to a comfort level they have achieved with the state of the economy. According to Google/Compete Research,

81 percent of smartphone users access the Internet on their mobile devices, and one of three searches has a local intent. Out of all the mobile shoppers in the world, 17 percent are looking at automotive websites and 53 percent of those end up at a dealership buying a car. Because shoppers use their mobile phones

to search for “stuff” in time of need, you have an opportunity to reach them when they are ready to buy or shop your dealership. According to Go Mobile, adding GPS capability to mobile phones has transformed the phone into a targeted weapon focused on the immediate surroundings.According to the 2011 Auto Shopper Behavior

Study by Google/Compete/R.L. Polk, today’s auto shoppers research and decide faster, use searches to navigate and compare, and expect dealer sites to be helpful. The study also determined:Q%%%M4&01-%#,4??-"#%/6$(,%@0.-4#%$4%.0#(4@-"%and compare brands.

Q%%%E47-%R>%?-"(-2$%4;%74&01-%6'$4%#,4??-"#%make a decision within three months.

Q%%%3-/%(6"%?'"(,6#-"#%$-2.%$4%#-6"(,%;4"%ST;;-"#U%!"#$:%;4114/-.%(14#-19%&9%SV'01.%Your Car,” “Locate a Dealer” and “Search Inventory. ”

Q%%%M4"-%#,4??-"#%$,62%-@-"%6"-%#-6"(,028%inventory on third party sites – 42 percent of $,-7%#-6"(,-.%SN2@-2$4"9U%!"#$:%$,-2%SM4.-1%Information” (32 percent) and “TradeIn” (29). “Request a Quote” and “Reviews” were next, cited by 22 percent.

Q%%%+,-%74#$%;"-L'-2$%"-#-6"(,%(42.'($-.%42%

mobile phones was comparing features at 55 percent, followed by price comparisons at 47 percent and reading general car and truck information at 44 percent.

Q%%%+,-%6.@-"$0#-7-2$#%(0$-.%6#%74#$%'#-;'1%by mobile users were online videos at 52 percent, sponsored or paid search engine listings (49 percent) and, surprisingly, newspaper ads at 45 percent.

All that data should speak loudly to car dealers. We must start following shoppers through this complex yet simple path to purchase rather than relying on traditional online destinations alone. Car dealers need to examine their digital

presence and understand navigation is the key to helping auto shoppers do research through many mobile portals.So here are six things to take to the next

level:GPSbased marketing: Locationbased

services are mobile marketing platforms dealers can use to engage shoppers and develop promotions.

Dealer apps: A basic app, including inventory, costs about $300 per rooftop, but it’s worth its weight in gold. You can also allow '#-"#%$4%6((-?$%24$0!(6$042#%62.%#-2.%4'$%weekly sales and alerts.

Mobilefriendly websites: A developer can easily add codes to your home page to adjust to tablet or cell sizes, allowing your website to display content quickly and optimize even on a very small screen.

Mobile ad campaigns: Target customers /,4%6"-%144)028%$4%!11%62%077-.06$-%2--.%W%401%changes, tire rotations, a special of the week, manager’s special or aged inventory on sale.

QR or 2D codes: Incorporate QR codes on all web pages and in newspaper or magazine ads. A QR code is a symbol with an embedded URL. When smartphone users scan it, it drives them to the URL. Some areas to advertise are: browse a website, send an email, make a phone call, Google maps, Foursquare venue, latest tweet, follow us on Facebook, WiFi network inside dealership, or any text or message you want the customer to see.

YouTube channel: According Google/Compete, video ads drive initial interest – online videos ranked as the most useful ad format and 6%#0820!(62$%02J'-2(-%4;%&"62.%(,40(-#*%+,-%last bombshell is that YouTube led two of three shoppers to the car/truck they ended up buying, indicating that YouTube is a leading driver to get

customers to notice your vehicles. The new iPhone has an assistant named Siri.

E,-%!2.#%62#/-"#%$4%L'-#$042#%;"47%$,-%'#-"*If a mobile phone user asks, “Where is the

(14#-$%.-61-"#,0?XU%E0"0%/011%.-10@-"%6%#?-(0!(%answer with directions. She will only deliver one answer.The problem from a car dealer’s standpoint

is she is not a search engine or a database. E,-%/011%4219%.-10@-"%L'610!-.%!1$-"-.%"-#'1$#*%Siri reportedly uses Wikipedia and Yelp, among other websites, as information providers. Each of those sources work differently. Wikipedia provides encyclopediastyle information but (62%&-%74.0!-.%&9%629%'#-"*%Y-1?%0#%6%26$04261%review community.Dealers should make it a point to claim their

information on those sources and keep watch on reviews and information regarding their dealership. Many believe Apple’s goal is to move completely away from Google – there are rumors about a partnership with Bing to help power Siri (so make sure your dealership is listed with Bing).In a study by the Arora Report, 40 percent of

Siri users reported no need to search Google. That provides evidence those users changed their habits, and as a result, Google searches could decline as Siri becomes widely available.The latest trends and statistics indicate the

minicomputers we call phones will be at the heart of any and all tasks in the near future, especially auto shopping. That makes a difference for advertising purposes, including the manner in which dealers reach potential customers.Convenience is king, and phones are

becoming the goto resource in our everyday lives. Today’s users are looking for detailed vehicle information, interesting videos and compelling mobile ads to direct their search for a vehicle. This is a onceinalifetime generation

changer. As smartphones get smarter and consumer expectations rise, the automobile industry needs to offer the services customers are expecting. All dealerships’ advertising needs to be geared toward the mobile phone war.

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Smart Dealers Should Aim Their Ads at Smartphones

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Make All the Right Moves AS REGULATIONS INCREASE, STAYING INSIDE THE LINES BECOMES A BIGGER PRIORITY

Paul Taylor, chief economist for the National Automobile Dealers Association, recently predicted more than 13.9 million new cars and light trucks will be purchased 4"%1-6#-.%02%$,-%F*E*%02%<=><*%Z0$,%$,-%02J'H%of new car buyers to the market, it’s a safe bet that used car sales will also increase #0820!(62$19%$,0#%9-6"*While that’s good news for everyone, a

dealer’s focus needs to be on more than just how many cars his store sells.Getting back to the basics has always

been a great tactic for boosting performance 02%$,-%#61-#%62.%!H-.%4?-"6$042#%.-?6"$7-2$#*%34/%0$K#%$07-%$4%"-.-!2-%/,6$%“the basics” means and focus on more than ['#$%#$"6$-80-#%$4%("-6$-%?"4!$*%5$$-2$042%61#4%needs to be given to basic legal compliance, 62%6"-6%$,6$%(62%,6@-%#0820!(62$%-(42470(%consequences if dealers are not focused on protecting their assets. Thirty years ago, dealers had a lot

less to worry about when it came to legal

compliance. A dealer could spend the majority of his time on advertising, marketing and merchandising, as well as on buying, selling and servicing cars, without any real worry about being sued.Today, if dealers are not aware of every

aspect of the business conducted in their store, they might have a lot to worry about. Even if a dealer has not been sued when an employee knowingly or unknowingly crossed the proverbial line, he most likely knows or has heard about a dealer who has been.Dealers who aren’t as vigilant as they

should be when it comes to compliance put themselves at risk every single day, and eventually the law can catch up with them. +,4'8,%$,-"-%6"-%24%#?-(0!(%#$6$0#$0(#%6&4'$%exactly how many dealership lawsuits have occurred in the past decade, it’s safe to say there have been too many. It’s not possible to cover every aspect of

dealership legal compliance in limited space, but it is possible to highlight some important legal compliance areas for used car dealers to focus on.The components that follow are basic

items all used car dealerships need to make sure they are doing correctly in order to avoid potential legal issues down the road:

Privacy LawsIn recent years, the number of people

who have become victims of identity theft has skyrocketed, which is why various laws have been created to protect consumers

from privacy violations. Businesses that don’t enact clear and solid practices to protect their customers’ private information can face tens 4;%$,4'#62.#%4;%.4116"#%02%"-8'16$4"9%!2-#%62.%potential civil liability.General practices most dealerships use for

protecting consumers’ private information (such as keeping customer information away from ?'&10(%@0-/:%,6@028%14()#%42%$,-%!262(-%4;!(-%doors and shredders at various work areas) might not be enough. Dealers may need to reevaluate their practices when it comes to protecting consumer information and consider some basic privacy questions such as:!"#$%&'$('"(&'#")#*+%+,'#-%+%.')$#

work on computers in an area where others can easily glance over their shoulder? If so, it might be important to use privacy screens on those computers to prevent lurkers from seeing information they shouldn’t see./$#01')'#%#.&%$$#23+4"2#3+#5"6)#*+%+,'#

"7*,'8#%&&"23+.#$"-'"+'#0"#&""9#3+#%+4#)'%4#,6$0"-')#3+7")-%03"+#"+#01'#*+%+,'#manager’s desk? Perhaps blinds need to be installed to help prevent that from happening. The blinds need to be kept closed. If they are left open, they serve no purpose.Even though you have shredders

for disposing of customers’ personal 3+7")-%03"+8#3$#01')'#%#$1)'44')#23013+#easy access of every salesperson or the *+%+,'#-%+%.'):$#4'$9; If the salesperson 4"%!262(-%76268-"%2--.#%$4%8-$%'?%62.%/61)%6%;-/%;--$%$4%.0#?4#-%4;%(42!.-2$061%

BACK TO BASICS

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BACK TO BASICSinformation in a shredder or can simply toss it in an unsecure wastebasket right at his feet, which option do you think he will select at times? Adding additional shredders near each desk might be necessary to ensure all documents are properly shredded.Who has access to all of the customer

information stored in your computer’s DMS or CRM tool? Best practice is to limit access to customer information to those employees who truly need to have it.Dealers need to make sure their people

truly understand why all privacy rules are in place, and thoroughly explain what actions need to occur to protect their customers’ information. Dealers must also appoint a manager to oversee the actions being taken to protect customer information. Not only is this required by law, it is also an effective way to track the privacy program in the store.

FTC Used Car Buyer’s Guide RuleFederal Trade Commission Used Car

Buyer’s Guide compliance is a key part of doing business for used dealers. Yet this is also an area where it’s easy to skip steps or get lazy with regard to following all aspects of the law.According to the rule, used vehicles must

have a Buyer’s Guide clearly and prominently displayed in a position where both sides are readable as soon as the car is in a spot where it can be inspected by a potential customer. That means every used vehicle that is for sale and parked on a used vehicle lot must have a Used Car Buyer’s Guide displayed.Does your dealership meet this standard?

If you were to walk your lot today, would every car have a Buyer’s Guide properly displayed?Often, dealerships delegate the

responsibility for generating and hanging the Used Car Buyer’s Guides to an outside company that sends a representative to the dealership once or twice a week to update the vehicle inventory. While that seems like a good option, the reality is there are probably several days each week when vehicles are parked on the lot without the required documents. Each of those vehicles could cost the dealership thousands of dollars in legal penalties.Focusing on basic legal compliance means

spending a little time and energy to ensure everything is done correctly. For Used Car Buyer’s Guide compliance, that could mean "-L'0"028%6%#?-(0!(%76268-"%$4%&-%"-#?42#0&1-%for creating stickers for every vehicle prior to putting it out on display. This same manager should walk the lot daily to verify that all vehicles on the lot meet the Used Car Buyer’s Guide standards.

Truth in Lending Act/Regulation ZThe days of providing broad payment

ranges and payment packing are over. However, some managers still work deals by quoting a payment without a proper term and interest rate.That is asking for trouble. Consumer

advocates, exposés on national television, books and Internet articles educate today’s consumer about disclosure laws. Best practices suggest when quoting a payment, salespeople should also disclose the rate, $-"7:%.4/2%?697-2$%62.%!262(-%&6162(-%to the customer. Today’s customers don’t just expect this information – they demand it. By providing proper disclosures from the start, you’ll be able to meet and exceed your customers’ expectations and create more sales.

Office of Foreign Assets ControlUnder the premise of homeland security,

the U.S. Department of the Treasury enforces economic and trade sanctions against individuals and groups who potentially threaten the national security, foreign policy or the economy of the United States.As part of that, laws require automobile

dealers to screen every customer against the Specially Designated Nationals (SDN) list. The SDN list contains the names of individuals, groups and entities, such as terrorists and 26"(4$0(#%$"6;!()-"#:%/,4%6"-%(42$"411-.%&9:%4"%acting for or on behalf of, targeted countries.The government takes the list very seriously

and dealership employees need to as well. The penalty for noncompliance can be up to \<]=:===%02%!2-#%62.%'?%$4%>=%9-6"#%02%?"0#42*%But screening a customer’s name against the SDN list can take a few minutes, so it might be $-7?$028%;4"%6%#61-#?-"#42%4"%!262(-%76268-"%to skip that step in the sale.Getting back to the basics for legal

compliance means taking the time to ensure all required steps are taken in order to protect your store and your assets. Make sure all of your employees are properly trained on how to check a customer’s name against the SDN list and what additional steps they need to take if they get a match or near match.

Real SignaturesSome salespeople and sales managers try

to “save time” by signing a customer’s name or initials on a document that might have been overlooked when the customer was in the store purchasing a vehicle. Do you know if this is happening in your store? If it is, your assets are at risk.Not only is the practice obviously not

compliant, but if discovered it can result 02%16"8-%"-8'16$4"9%!2-#%62.%-@-2%?'20$0@-%

damages. Never sign a customer’s name or 020$061#:%4"%#082%6%.4('7-2$%S#0826$'"-%42%!1-*UIt seems obvious that signing a document

for a customer is wrong, but getting back to basics includes reminders even about the obvious. Communicating to your staff a zerotolerance policy underscores that obtaining real customer signatures is vital to the health of your business.

Misrepresentation and FraudDuring the course of a vehicle sale, it is not

possible to constantly monitor every word that comes out of a salesperson’s mouth. Dealers 2--.%$4%&-%(42!.-2$%$,6$%/,-2%1-;$%$4%$,-0"%own devices, employees will provide accurate and truthful information about the vehicles and services the store provides. Dealers also need $4%;--1%(42!.-2$%$,6$%-7?149--#%6"-%76)028%proper disclosures when necessary.Misrepresentation or fraud can not only

come back to haunt the salesperson or manager, but it can come back to haunt the dealer and the dealership as well.For that reason, many dealerships are

requiring legal training for all store employees. It is also important for dealers themselves to stay abreast of the current laws and regulations. Dealers should proactively seek out information regarding new laws or regulations from sources such as their legal counsel, NIADA or their state and local governments.In addition, the FTC’s website provides a

substantial amount of compliance information, #47-%4;%/,0(,%0#%#?-(0!(6119%$6014"-.%;4"%automobile dealers. What better place to seek compliance advice than from the agency enforcing compliance?By educating dealers and their staffs

on the current laws and regulations, basic compliance training is helping dealers avoid many of the headaches and lawsuits that accompany legal issues.In this day and age, dealers can no longer

afford to think “it will never happen to me” with regard to legal compliance issues. Today’s rigid requirements and wellinformed customers mean dealers need to take clear and conscious steps to protect their assets.While there is no guarantee a dealer will

never be sued, making legal compliance a priority and taking simple steps to ensure it becomes an everyday habit in the store (62%#0820!(62$19%1-##-2%$,-%10)-10,44.%,-%/011%become a victim of a compliance issue.

BY JAMES CAHN, JM&A GROUP

INDEPENDENT PROVIDERS OF FINANCE AND INSURANCE PRODUCTS IN THE AUTOMOTIVE INDUSTRY AS WELL AS PROVIDING CONSULTING SERVICES AND F&I TRAINING FOR USED CAR SALES OPERATIONS AND SERVICE DEPARTMENTS.

CONTINUED FROM PAGE 12

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16


PAUL CANTER278 AUTOMOTIVE SALES LLCPIEDMONT

JOHNNY MCGLOTHANAUTO EXCHANGE AND SALESFAIRFIELD

RONALD JONESAUTO SHINE USED CARS LLCPRATTVILLE

DOUG REIDAUTOMAX LLC DBA DOUG REID AUTO SALESBESSEMER

TOMMY KITSMILLER/ALAN DILLENBERGAutoMotivs LLCBIRMINGHAM

MOHAMMEED ( MIKE) HUNCIDIAUTO SHOWCASEHOOVER

CRAIG WESTBROOKBIRMINGHAM BROKER LLCBIRMINGHAM

KEITH PARKERCASINO AUTOMOTIVE LLCMOBILE

STEVE GOGVEND & S AUTO SALESARDMORE

STEVEN DUNNDUNN’S AUTO SALESALPINE JEFF MARTINEZ, JR.EAGLE ONE LEASE & CAPITAL LLCTARRANT

LEE JOHNSONEASY AUTO FINANCEHELENA

SHU SHURETT/LEO HUANGFORTUNE AUTOMOTIVE GROUP INCPELHAM

LAWRENCE HICKSHICKS MOTORSLACEYS SPRING

GREG BURGESSHOOVER SPORTS & IMPORTSBIRMINGHAM

JEREMY BOLZLE & TIFFANY BOLZLEJEREMY’S AUTO SALESVINEMONT

VICKIE DENNIS NORVELL USED AUTO SALESJASPER

GARY PERDUE, PRES & ROD HEASLEY, VPPERITUS PROTFOLIO SERVICESSOUTHLAKE, TEXAS

TERRY SHELLSTERRY SHELL MOTORSALBERTVILLE

DECEMBER RENEWALSCHARLIE BAKERASC WARRANTY INC.BIRMINGHAM

GENE & CLORIA CAPPSG & M MOTORSSEMMES

GARY RYALGARY’S AUTO SALESGULF BREEZE, FL

JOE LITTLELITTLE MOTORS INCHUNTSVILLE

BOBBY MCCORMACKMCCORMACK CARS INCPELHAM

KARL L WHITE, PRESIDENTMOTORMAX OF BIRMINGHAM SOUTH INCBIRMINGHAM

MARK HAASSIMMONS NAMEPLATE & DESIGN COBIRMINGHAM

KELLY STEELYSTEELY LEASE SALESHOOVER

KEN & TRACE WRIGHTWRIGHT AUTO SALES INCMONROEVILLE

JANUARY RENEWALS

MIKE PEAVY & NANCY THOMASA & P AUTO SERVICE INCMONTGOMERY

ALEKSANDR GORBATYUKACCELERATED DESIGNS USED CARSSNELLVILLE

MARK BOUDOUSQUIE/LISA BOUDOUSQUIEANGELO’S WHOLESALEHARTSELLE

HARRY GREENBERGAPEX MOTORS LLCBIRMINGHAM

R JOE ANDREANIAUTOMAX OF NORTH ALABAMAMADISON

JAMES BLASIUSAUTOMOTIVE CREDIT CORPORATIONSOUTHFIELD, MI

CHARLES W REDDEN, PRESIDENTAUTOTEC LLCBIRMINGHAM

SHERRY FOSTRAUTOTRADER.COMCHARLOTTE NC

WILLIAM CLAYTON BURTONBURTON CAMPER INCCALERA

GEORGE ADKINSBUY GEORGE AUTO SALES INCHUEYTOWN

JAMES A RIDDLECAMERON’S AUTO & TRUCK SALESHOMEWOOD

TAWANDA FALCONERCARS.COMCHICAGO IL

JIM CLARK G.M.CENTER POINT AUTO AUCTIONBIRMINGHAM

KIM WILLIAMS, PRESCENTRAL MOTORS INCJASPER

JOHN KIRKESCHALLENGE AUTO SALESPELL CITY

SHANE TALTONCONSUMER AUTO BROKERSBOAZ

TREY BENTLEYCREDIT NOW AUTO SALESHUNTSVILLE

ROBERT C BRYANTCROWN AUTO SALESMOBILE

JAMES L WILABAYCVC AUTO SALES INCALBERTVILLE

DAVID DAWOUDDAWOUD AUTO SALESBIRMINGHAM

STEPHEN/BARBARA DENNISDENNIS AUTO SALESBIRMINGHAM

DEWEY BARBER/D SCOTT BARBERDEWEY BARBER CHEV INCWARRIOR

JOEL OWENSDRIVE AND SAVEBIRMINGHAM

RAMI ACHDUTHIGHLINE IMPORTS INCBIRMINGHAM

KATHRYN HOWARDHOWARD AUTOS INCMCCALLA

DARYL NELSONJ D BYRIDERDAVENPORT IA

SAMEER YOUSEFKING MOTORSSTERRETT

MICHAEL & CAROLYN LIPSCOMBLIPSCOMB AUTO SALESANNISTON

M. C. MORRISLONG BEACH AUTO AUCTION LONG BEACH MS

TERRY LOWERYLOWERY BROTHERS MOTORS INCBOAZ

JAMES A CONHEADYMAGNOLIA AUTO SALES INCDECATUR

CHRIS MUNDYMUNDY MOTOR CO INCCHELSEA

CARLOS M HARPERNEXT LEVEL AUTO BROKERS LLCBIRMINGHAM

TONY DEWBERRYPAT’S AUTO SALESSOUTHSIDE

FRANKLIN PEACOCKPEACOCK AUTO SALESSLOCOMB

JEFF CORNELIUS/MITCH MORGANQUALITY AUTOS ALESGUNTERSVILLE

RAY BELLRAY BELL MOTORS LLCMONTGOMERY

KEN LOEWENRIVERSIDE AUTO SALESGAINESVILLE

JOHN HIGHTOWER IIIROAD RUNNER AUTO SALESTUSCALOOSA

RAY RODDAMSAM’S AUTOS ALESBIRMINGHAM

R GLENN ALBERTSONSOUTH ALABAMA AUTO AUCTION LLCROBERTSDALE

RUSSELL L SIRMANSSTATEWIDE AUTO SALES LLCBIRMINGHAM

LARRY JEANSYBLE’S AUTO SALESTONEY

JOSH GUNTHER, PRESIDENTTEAM GUNTHER KIADAPHNE

ANDREW TURNBULLTURNBULL GROUP LLCSTERRETT

STEVE GRAYU N I TOWING & WHOLESALE CARSGADSDEN

BOBBY WARDU S AUTOMOTIVEBIRMINGHAM

PHILLIP CLEARMANVALUE AUTO SALES LLCDOTHAN

VERLON AND SHEILA PAINTERVERLON PAINTER MOTORS INCALBERTVILLE

STEVE HOGGLE/AMANDA BROWNWOODALL & HOGGLE INSURANCE AGENCYPREFERRED BENEFIT PROVIDERGUNTERSVILLE

FEBRUARY RENEWALSBASMA LUBADANAHEIM AUTO AUCTIONBIRMINGHAM

JEFF WREYFORD/MIKE GERRISHAFFORDABLE MOTORSLANETT

LEON J ALEXANDERALEXANDER DODGE/CHRYSLER/JEEPALBERTVILLE

BILLY THOMPSONBILLY THOMPSON MOTORSSYLACAUGA

CHARLES R BURNS IIICRB AUTO SALESBIRMINGHAM

BUDDY M ROBINSONC & E AUTO SALESOXFORD

CHRISTOPHER T HOWLECRIS HOWLE AUTO SALESLILLIAN

DARREL PALMERDARREL PALMER AUTO SALESMONTGOMERY

J SHANNON BROWNBROWN’S KAR-MART INCALBERTVILLE

LAMAR CHASTEENCHEROKEE MOTOR LLCPIEDMONT

DAVID ANDREWS/JIM BRANNONCITY AUTO FINANCE LLCMEMPHIS, TN

O’NEAL CLEVELANDCLEVELAND AUTO SALESSPRINGVILLE

LARRY D PUCKETTCOMMUNITY CARS INCPRATTVILLE

DARRELL PRYYIRFIRST CLASS AUTO SALESPLEASANT GROVE

RONNIE WARE/DON GENTRYGENTRY & WARE MOTOR COOPELIKA

RICHARD GILBERT/RICHARD BAKERGILBERT & BAKER FORDALBERTVILLE

PETE SELLERSGULF COAST MOTORS INCBAY MINETTE

DAVID FARMER/GREG & KIM BATTLESHERITAGE REALTY & AUCTION CO INCTRUSSVILLE

BRENDA S WOODJ M WOOD AUCTION COMONTGOMERY

JERRY KILPATRICKJERRY V KILPATRICK MOTORS INCBOAZ

JIMMY WELLSJIMMY WELLS USED CARS INCRAINSVILLE

JOHN DUNNJOHN DUNN AUTO SALESSYLACAUGA

NEIKA WILLISK AND K AUTO SALESTALLASSEE

OZZIE KINGKING’S AUTO SALES LLCMUSCLE SHOALS

NORMAN DODSON/BOB LECROYMCD MOTORS INCMOBILE

DAVE LAWSONMIDFIELD CAR AUCTION TITLES LLCMIDFIELD

CINDY WARRENMONTGOMERY AUTOMOTIVE GROUP INCMONTGOMERY

STANLEY FOWLERSTANLEY FOWLER SALES LLCNORTHPORT

MARK A ODOM SRODOM CHEVROLET INCEUTAW

BILLY L PRESSLEYPRESSLEY AUTO SALESOXFORD

CHRISTOPHER HARRISR C MOTORS INCBIRMINGHAM

MICHAEL MITCHELLR P M AUTO SALES LLCPELHAM

GARY SHERRILLSHERRILL MOTOR COTUSCALOOSA

FRANKIE HERRONSOUTHEASTERN AUTO BROKERS LLCPRATTVILLE

THURMAN D PARKERT. PARKER AUTO SALESWETUMPKA

MITCH EARLY/JOHN WATSONTHE LEMON LOT LLCDOTHAN

MARK JACKSONTRADEMARK AUTOMOTIVE GROUPTUSCALOOSA

DONALD CROWE/JAMES CANNONTUSCALOOSA CHEVROLET INCTUSCALOOSA

WAYNE REAVESWAYNE REAVES COMPUTER SCHOOL MACON, GA

TRACY HONEAHONEA MOTORSALBERTVILLE

JANET LANGFORDLANGFORD’S QUALITY CARSENTERPRISE

CRAIG DENNEYNISSAN OF GADSDEN INCGADSDEN

BILL CRAMER/ALLYN CRAMEROUTLET RENTAL CAR SALESDOTHAN

MIKE TIDWELLTIDWELL MOTORSONEONTA

MICHELLE SHELTONWE FINANCE AUTO SALES LLCHAZEL GREEN

WELCOME NEW MEMBERS AND RENEWALS

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18


Technology, or the lack thereof, could be costing you millions.OK, millions might be a bit much, but

thousands doesn’t sound much better. A0$,-"%/69:%?"4!$%.4116"#%(4'1.%-6#019%&-%leaving your pocket on a monthly basis at an alarming rate.Technology, or the lack thereof, is

costing dealers in every market and in every state in the country. The dealers in question are either technological junkies or technologically challenged. Neither scenario is conducive to success.In the current economic climate, having and

using what is necessary for the foreseeable future makes the best and only economic sense. Not too much, not too little.Technology touches many facets of the Buy

HerePay Here industry. Video surveillance, starter interrupt/GPS and software are the most popular areas for technological discussion in BHPH, and those areas seem to be the most under and overutilized as well.Of the three, DMS software is the only

one that is necessary for current and future success. The others? Well, that’s up to the dealer.Video surveillance is probably more

overused than the other two – too many dealers have thousands of dollars tied up in hightech systems that are really not necessary. Those dealers have convinced themselves they are preventing not only outside theft, but internal theft as well. Surveillance systems have proven to aid in deterring both kinds of theft. The decision whether to use video

#'"@-01162(-%#,4'1.%&-%&6#-.%42%#?-(0!(%market conditions in regard to preventing outside theft and providing additional security. A lot in a small rural market that displays 20 or so vehicles and employs a total of four people

IS TECHNOLOGY - OR THE LACK OF IT-

Costing You?

AL_0412.indd 18 3/16/12 1:18 PM


19


doesn’t necessarily need a 16 exterior color camera system with realtime web access. That example may seem extreme, but that dealer exists.For preventing internal theft, the money

might be better spent on developing the organization’s culture. Studies have shown 4;!(-%#'??10-#%6"-%$,-%74#$%(4774219%?01;-"-.%items at a business, not money. This is a direct result of lack of pride and ownership in the business by the employee.A background investigation and personality

?"4!1-%?"04"%$4%,0"028%6%2-/%-7?149--:%and ongoing training and open lines of communication after hiring are ways to instill and improve an organization’s culture. There is a good possibility those steps will also reduce turnover and, in most cases, prevent if not halt employee theft – and will likely cost less than a surveillance system over time.Payment devices – starter interrupt, GPS,

and combo devices – are still a topic of great debate and ongoing discussion. This is an area that seems to be either black or white in most dealers’ eyes. Dealers seem to be 100 percent

for them or 100 percent against them, with little in between.Data shows such devices can increase

collections dollars and, in some cases, reduce the amount of personnel needed to manage a portfolio. Data also shows they do not have 6%#0820!(62$%07?6($%42%14##%"6$-#*%+,6$%.6$6%0#%what causes the “allin” or “allout” mentality. There are just as many highly successful dealers not using the devices as there are using them.As with any technological advance, they are

only effective if used as directed or intended. Too many dealers don’t. And by not doing so, they are wasting money. The decision to use payment devices, and

#?-(0!(6119%/,0(,%)02.:%0#%6%#0820!(62$%42-*%N$%0#%a decision that should be based solely on the dealer’s personal business philosophy. As with any business decision, it shouldn’t be made until all the homework is done. Also not to be overlooked in the decisionmaking process is preparing internally. Policies and procedures will have to be created and implemented.G6#$:%&'$%.-!20$-19%24$%1-6#$:%0#%DME%

software. This is an area where dealers have a tendency to cut corners and cost themselves in the long run. Bigger is not necessarily better.Software packages have undergone

#0820!(62$%$-(,241480(61%6.@62(-#%02%"-(-2$%years, and there are an increasing number of provider options. For better or worse, nowadays there seem to be more providers than actual dealers. That’s better in that more options ?"[email protected]%6%74"-%.0@-"#0!-.%?"4.'($%4;;-"028%and pricing structure. It’s worse in that when it comes time to choose a system, a dealer can be buried by information overload and the process can become overly timeconsuming when he’s trying to comparisonshop. Technology can take any business to

the next level. Technology can also set any business back. The key lies somewhere between being a junkie and being challenged.Which one are you?

BY BRENT CARMICHAELEXECUTIVE CONFERENCE MODERATORNCM ASSOCIATES INC.

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Latest NMB Partner Provides Emissions DiagnosticsPH2 Solutions has joined NIADA’s

36$04261%M-7&-"%V-2-!$%?"48"67:%4;;-"028%the association’s members its awardwinning PH2 Validator emissions diagnostic technology for a $259 savings with multiple payment plan options.The diagnostic software of choice for

dealers and their onsite staff rapidly 0.-2$0!-#%-70##042B"-16$-.%0##'-#%42%@0"$'6119%all 1996 and newer vehicles, helping save time and resources on “Check Engine Light” maintenance and repairs, emission inspection compliance, fuel consumption, vehicle

acquisition and remarketing, and reducing customer “comebacks.””NIADA is delighted to be working with PH2

Solutions in assisting our members to resolve ‘Check Engine Light’ and vehicle emissions issues,” NIADA vice president of member #-"@0(-#%E(4$$%G01[6%#60.*%S3N5D5%0#%(42!.-2$%PH2 Solutions will be a tremendous hit with our members who have vehicle service operations as well as those that outsource.”+,-%^_<C610.6$4"%-6"2-.%!"#$%?16(-%02%

SEMA’s Best New Tools and Equipment Products category for 2012, and Motor magazine named it one of its Top 20 Tools for 2011.PH2 Validator’s easytouse application

/6#%.-@-14?-.%#?-(0!(6119%$4%6.."-##%independent repair shop challenges such as OBDII false code problems, no code faults, costly long drive cycles and other emissionsrelated repairs. The diagnostic software "-.-!2-#%(42@-2$04261%;6($4"9%."0@-%(9(1-#%to 10 miles or less by engaging the onboard computer (PCM) with its patented automated repetitive requests of all supported monitors simultaneously, resulting in rapid monitor

completion if conditions are met.If readiness conditions are met, the

monitors complete. If they are not met, driving beyond 10 miles will not change the outcome, and the PH2Validator’s automated data stream analysis provides technicians with a realtime record of clues as to why by simultaneously and continuously capturing outofrange operating values and prioritizing them by seriousness. Exclusive NIADA memberonly pricing

is also available to repair shops handling member repairs.“We are honored to partner with NIADA

and even more excited to offer members this gamechanging technology that truly makes life easier for dealers, technicians and service centers, affording them the ability to 74@-%02@-2$4"9%;6#$-"%62.%74"-%-;!(0-2$19:U%PH2 Solutions president and CEO Mark L. Scotland said.

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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 10 a.m. & Friday 6:30 p.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 Buf!ngton 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 Tuesday 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

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

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.Mid!eld, 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 DIRECTORYJ.D. Power: New Car Customer Satisfaction Rose in 2011J.D. Power and Associates recently released its 2011

U.S. Sales Satisfaction Index (SSI) Study, a comprehensive analysis of the newvehicle purchase experience that measures customer satisfaction among shoppers and buyers. Overall sales satisfaction averaged 648 on a 1,000point

scale in 2011, up from an average of 635 in 2010. Though many 4;%$,-%7-6#'"-#%P#--%10#$`%(4'1.%6??19%$4%!262(-%a%02#'"62(-%departments, one measure at the top of everyone’s mind is how the average length of time a buyer spends at the dealership impacts satisfaction. The average time at the dealership increased to 4.3 hours

in 2011 from 4.1 hours in 2010. It has been theorized that customers don’t penalize dealerships for being thorough when it comes to paperwork as long as they feel their time isn’t being wasted.In addition, J.D. Power and Associates said, the primary

reason for the longer delivery process was the increasing proportion of buyers – 88 percent – who are receiving more indepth demonstrations of technology in their new vehicles. The demonstrations can also lead to higher customer satisfaction, making the extra time worthwhile. “Although technology demonstrations add time to the delivery

process, those explanations substantially improve satisfaction, as well as customer loyalty and advocacy,” said Jim Gaz, J.D. Power’s director of automotive research. “It would intuitively #--7%$,6$%&'9-"#%6"-%74#$%#6$0#!-.%/,-2%$,-%#61-#%?"4(-##%0#%completed in the shortest amount of time possible. However, buyers actually appreciate when the salesperson spends additional time with them, as long as that time provides added value.”Among buyers, satisfaction is examined across four

measures: working out the deal (17 percent), salesperson (13 percent), delivery process (11 percent) and dealership facility (10 percent). Among rejecters, satisfaction is examined across !@-%7-6#'"-#b%#61-#?-"#42%P<=%?-"(-2$`:%;60"2-##%4;%?"0(-%(12 percent), facility (6 percent), inventory (6 percent) and experience negotiating (5 percent).

BY SAFE-GUARD PRODUCTS INTERNATIONAL, LLC

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Deanco Auto Auction Celebrates Its 10th YearKelly Terrell, operations manager, said Deanco Auto Auction has

about 600 cars and more than 300 dealers. Kelly invites all dealers to attend Deanco Auto Auction in Dothan, Ala., every Wednesday.

RULES FROM GOD1. Wake up!Decide to have a good day.“This is the day that the Lord hath made; let us rejoice and be glad in it” (Psalms 118:24)

2. Dress up!The best way to dress up is to put on a smile. A smile is an inexpensive way to improve your looks.“The Lord does not look at the things man looks at. Man looks at outward appearance; but the Lord looks at the heart.” (1 Samuel 16:7)

3. Shut up!Say nice things and learn to listen. God gave us two ears and one mouth, so we need to listen twice as much as we talk.“He who guards his lips guards his soul.” (Proverbs 13:3)

4. Stand up!Stand up for what you believe in. Stand for something or you will fall for anything.“Let us not be weary in doing good; for at the proper time, we will reap a harvest if we do not give up. Therefore, as we have opportunity, let us do good...” (Galatians 6:9-10)

5. Look up!To the Lord of heaven and earth.“I can do all things through Christ who strengthens me.” (Philippians 4:13)

6. Reach up!For something higher.“Trust in the Lord with all your heart, and lean not unto your own understanding. In all your ways, acknowledge Him, and He will direct your path.” (Proverbs 3:5-6)

7. Lift up!Your prayers.“Don’t worry or be anxious about anything. But in everything, by prayer and supplication, with thanksgiving, let your requests be made known unto God.” (Philippians 4:6)In other words, pray about everything!

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MANY SHERIFFS CREATE REGULATORY UNCERTAINTY

Remember when the DoddFrank bill was being debated in Congress and we all hoped motor vehicle dealers would be exempt from the oversight of the new sheriff – the Consumer Financial Protection Bureau (CFPB)?

Be careful what you wish for. You just might get it. As you know, a “dealer exclusion” was included in the DoddFrank Wall Street

Reform and Consumer Protection Act (DoddFrank Act). Ironically, the dealer exclusion might only increase industry regulatory oversight and add compliance uncertainty. Under Section 1029 of the DoddFrank Act, the CFPB may not exercise regulatory

supervision or enforcement authority over “a motor vehicle dealer that is predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.” An exception to the exclusion is that the CFPB does have authority over businesses

that provide “the extension of retail credit or leases involving motor vehicles,” retail credit or retail leases “directly to consumers” and a contract covering the retail sale 4"%1-6#-%$,6$%0#%S24$%"4'$02-19%6##082-.%$4%62%'26;!106$-.%$,0".B?6"$9%!262(-%4"%1-6#028%source.” The exclusion and exceptions can be a bit confusing, but the net result is that the

CFPB has regulatory authority over Buy HerePay Here dealers. And even dealers who do not consider themselves to be Buy HerePay Here might be regulated by the CFPB 0;%$,-9%6"-%6##082028%(42$"6($#%$4%62%6;!106$-.%$,0".B?6"$9%!262(-%4"%1-6#028%#4'"(-:%4"%0;%$,-9%6"-%24$%S"4'$02-19U%6##082028%(42$"6($#%$4%62%'26;!106$-.%$,0".%?6"$9*%N;%94'%6##082%some contracts and hold others, there might be some uncertainty about whether you are regulated by the CFPB. The CFPB authority leaves us with a framework in which some auto dealers are

regulated by the CFPB and the rest are regulated by the Federal Trade Commission (FTC). That means that in spite of the “dealer exclusion,” we have two sheriffs in town.The two federal regulators have promised to work together, but the regulatory

framework itself could create obstacles. For example, the CFPB now has rulemaking 6'$,4"0$9%;4"%6%2'7&-"%4;%(42#'7-"%!262(061%?"4$-($042%16/#%;4"7-"19%8"62$-.%$4%several federal agencies, including the Truth in Lending Regulation Z and Consumer Leasing Regulation M. In republishing these regulations, the CFPB made it clear that they applied “except with respect to persons excluded from the bureau’s rulemaking authority by section 1029 of the DoddFrank Act.“ That is a clear reminder that CFPB enforcement authority of Regulations Z and M are technically separate from the enforcement authority of the FTC. DoddFrank also authorized states to enforce certain federal consumer protection

laws. The concern is that might result in local differences in interpretation and enforcement of federal requirements. So essentially, there are now three sheriffs in town. Over time, rules, regulations and interpretations will be published providing

(16"0!(6$042%42%$,-%#(4?-%62.%1070$#%4;%6'$,4"0$9%6##082-.%$4%$,4#-%$,"--*%V'$%;4"%24/:%we need to deal with the regulatory uncertainty as best we can.It is helpful to keep in mind that the various regulating authorities are trying to protect

consumers from unfair and unscrupulous consumer credit transactions. The best practices for these times apply in all situations – be clear, be transparent and be honest 02%94'"%#61-#%62.%!262(028%$"62#6($042#*%+,6$%#,4'1.%,-1?%94'%#6$0#;9%$,-%#?0"0$%62.%intentions of all but the most technical standards of any regulator.

BY CHIP ZYVOLOSKIChip Zyvoloski is a senior attorney for indirect lending at Wolters Kluwer Financial Services.

For more information, visit www.wolterskluwerfs.com/indirect.

ComplianceOverdrive

The NIADA announced its 66th Annual Convention & Expo will be held June 11-14, 2012 – a

week earlier than previously scheduled – at Caesars Palace Hotel and Casino in Las Vegas.

NIADA’s showcase event will o!er an expanded dealer education program for 2012, including more sessions covering more topics than ever before, as well as an enhanced Expo featuring more companies representing all facets of the automotive industry. Expo exhibit dates are June 12, 13 and 14. "e Convention, to be held for the third consecutive year at spectacular Caesars Palace, will kick o! with activities beginning on Monday a#ernoon, June 11.

Online registration is now open at www.niada.com. Rooms at Caesars Palace will be available at the discounted rate of $154 per night.

NIADA’s Annual Convention & Expo provides its members with an opportunity to network with their peers, participate in quality education sessions and gather valuable information they can take back and apply toward their dealerships’ success. Educational offerings will cover topics for both retail and Buy Here-Pay Here dealers. The event is also a gateway for vendors to build and foster relationships with dealers through the Expo, an industry marketplace of top-notch vendors showcasing their products and services and the benefits they can provide to dealers.

NIADA has held its Annual Convention & Expo since 1947 and has continued to $ourish as the most sought-a#er and reputable used motor vehicle industry event for automobile dealers.

NIADA ANNUAL CONVENTION a%Ac^T%EA+%dTI%JUNE 1114, 2012

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