ALSO Learn to Hunt in Your Backyard!PLUS Independent Auctions: The Dealer’s Friend

AUCTIONSWAIT AND SEE FORGREEN CARS

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Nevada

O F F I C I A L P U B L I C A T I O N O F N I A D A N E V A D A

DEALER NEWS

V I S I T U S A T W W W . N I A D A . C O M

PRSRTStandardU.S.Postage

PAIDDALLAS,TEXASPermitNo.2079

URGENT MESSAGE FOR ALL AUCTION MEMBERS

Manheim Corporate Security Date: Aug. 18, 2010

TO: All GM’s and AGM’sCC: All Front Office Managers and All Security ManagersFROM: Alan Walker, Director Corporate SecuritySTATUS: High ImportanceISSUE: Interstate Suspect Alert #3

Suspect: PRICE, Shawn D. - Black Male Adult, 5ft 11 ins tall 230 lbs.D.O.B. 09/13/74(It is believed this suspect is the same person who was using the name,Marcus EDWARDS and a fake ILDLpictured in prior alerts)Our Interstate Suspects have struck again. The suspect listed above is using a

fake Wisconsin Drivers License as identification. He stole 3 vehicles fromNashville AutoAuction TN in the evening of MondayAugust 16th. The gate re-leases had been left at security after 3 separate phone calls had been placed to thefront office requesting No Sale releases. His description matches the person whois responsible for vehicle thefts from our auctions in Fredericksburg VA, Man-heim PA and Atlanta GA.This is preventable; if you have all personnel who receive phone requests for

No Sale Releases from an individual they do know, confirm the request with theDealership/Owner using contact info from our records.

SECURITY ALERT

EASE OF USE, MORE FEATURESDEFINE NEW NIADA WEBSITE

NIADA.com will unveil a brand new website in early October that’seasy to navigate and offers many new technologically-advancedfeatures for dealer members. Among them:

1. The entire NIADAmembership roster is now included on the home page viaa state map, and dealer members can opt-in to add more contact info to theironline membership listing.

2. All state magazines published by NIADA can now beviewed inclusive of advertisements. The magazines alsowill be archived on the site. Plus, those same state asso-ciations will have direct links from their websites to oursite promoting readership of their particular state maga-zine.

3. NIADA National Corporate Partners (NCP) will nowhave the ability to add a company or product-specificvideo next to their NCP description.

Phase 2 of the new website, set for completion inNovember, will include a new virtual expo section withinthe Convention & Expo area of NIADA.com wherebycompanies can pick and choose their booth locations andcomplete all forms, paperwork and payment online.Dealer attendees also will be able to register online forour annual convention in this section of our site.Also set for phase 2 is the creation of a new social net-

working area for dealer members to voice theirquestions, issues, concerns andmore to other dealer mem-bers via blogs and other popular tools. The goal of oursite’s social networking area is to be directly linked to theexisting dealer social network at www.auttr.com.

GO TO WWW.NIADA.COM AND BROWSE THE NEW WEBSITE TODAY!

4 Regulations andMore Regulations6 AuctionsWait and See for Green Cars10 Learn to Hunt in Your Backyard!14 Independent Auctions: The Dealer’s Friend

MAGAZINECONTENTS

ADVERTISERSINDEX

INSIDE

ADESA ........................................................................7AutoTrader.com .......................................... Back CoverCars.com............................................Inside Front CoverLobel Financial Corporation..........................................9Manheim Advantage ..........................................10, 11NIADA.TV ..................................................................12SmartAuction................................................................5Western Funding ..........................................................8Western General / Protective..............Inside Back Cover

Dealers who demonstrate commitment andsupport the principles and ethical business stan-dards of the CMDB designation complete a four-day seminar that addresses BusinessManagement,Merchandising, Financial Management, HumanResources, and Business Planning. NorthwoodUniversity provides the instructor and awards 4Continuing Education units for this course.

NEXT CLASS OCTOBER 28-30, 2010VISIT NIADA.COM FOR MORE INFOMATION

CERTIFIED MASTERDEALERJ PROGRAM:

DON’T FORGET TO VISIT OURWEBSITE FOR IMPORTANT INFO:WWW.NIADA.COM

NATIONAL INDEPENDENTAUTOMOBILE DEALERS ASSOCIATIONWWW.NIADA.COM • WWW.NIADA.TV

FOR INFORMATION ON HOW TO BECOME A MEMBERPLEASE CONTACT CINDY SIRKEL.cindy@niada.com •800-756-4232

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NIADA HEADQUARTERS:2521 BROWN BLVD. • ARLINGTON, TX 76006-5203PHONE (817) 640-3838FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF(800) 682-3837 OR TROY@NIADA.COM.THE NEVADA DEALER NEWS IS PUBLISHED BI-MONTHLY BY THE NATIONALINDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES CORPORA-TION, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203; PHONE 817-640-3838. PERIODICALS POSTAGE PAID AT DALLAS, TX AND AT ADDITIONALOFFICES. POSTMASTER: SEND ADDRESS CHANGES TO NIADA STATE PUBLI-CATIONS, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203. THE STATE-MENTSANDOPINIONS EXPRESSEDHEREINARE THOSEOF THE INDIVIDUALAUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF NEVADADEALERNEWSOR THENATIONAL INDEPENDENTAUTOMOBILEDEALERSAS-SOCIATION. LIKEWISE, THEAPPEARANCEOFADVERTISERS,OR THEIR IDEN-TIFICATION AS MEMBERS OF NIADA, DOES NOT CONSTITUTE ANENDORSEMENTOF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT ©2010 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED.STATE MAGAZINE MANAGER/SALES:TroyGraff • troy@niada.comEDITOR: MikeHarbor •mharbour@niada.comSERVICES ART AND PRODUCTION MANAGEROF STATE ACCOUNTS:ChristyHaynes • christy@niada.comPRINTING: NiemanPrinting

3OCTOBER/NOVEMBER 2010 D E A L E R N E W S

When Congress passes a bill andthe president signs it into law, that isjust part of the story, and the devil isalmost always in the details. The de-tails come in the rules and regulations thatfederal agencies are required to develop toimplement the laws. In other words, thefederal agencies take the legislation, inter-pret it and write rules designed to blend therequirements of the new law into existingrules and to advise the affected entities ofthe actions they are to take to comply withthe new law. In some instances, they havea good deal of latitude in interpreting alaw, so required implementation actionmay not always agree with an entity’searly understandings of the law and whatis to be expected of them. Be that as itmay, the rules are written and the affectedentities attempt to comply.There is always a time lapse between

when a law is written and when the rulesbecome effective. Attempts are generallymade to develop the rules and make themavailable for public input in a timelyfashion. Given a time frame for pubicinput and consideration of the commentsreceived and possible rules revisionsbased upon those comments, it some-times takes months or even years after abill becomes law before compliance isrequired. Generally, the more compli-cated the law, the longer the time beforecompliance is required.For instance, compliance with the rules

written for the “Financial Services Regu-latory Relief Act of 2006” has been set asJan. 1, 2011. That’s when several newforms, including the privacy notice (fromthe Gramm-Leach-Bliley Act) and therisk-based pricing disclosure notices (fromthe Fair andAccurate Credit TransactionsAct) are set to become mandatory. Modelforms have been developed and adoptedby the agencies the use of which is notmandatory, but when used in their busi-nesses, provide a “safe harbor” for deal-erships.These new forms are in a tabular format

(rather than paragraphs of text) dividedinto questions on the left-hand side of thepage followed by answers on the right-hand side, and use supposedly consumer-friendly terminology. These changesreflect a conscious decision on the part ofthe financial services regulatory agenciesto adopt a disclosure style intended tosimplify consumer disclosures.Unfortunately for dealerships, this sim-

plification means the disclosures are beingmade for the benefit of the consumer re-ceiving them, not the dealership that has touse and explain them to customers. Deal-erships will face significant operationalchallenges in implementing the newforms. These challenges include adaptingto the new style of disclosures, customiz-ing them to their needs, timing theswitchover to the new forms, and main-taining their regulatory safe harbor.The use of this new form style will also

involve the risk-based pricing disclosurethat comes from the Fair and AccurateCredit Transactions (FACT)Act and is alsoeffective Jan. 1, 2011. This disclosuremust be given when lenders use consumerreports in connection with extensions ofcredit where the interest rate is materiallyless favorable.Automotive Dealer Resource (ADR)

staff is working to develop the model pri-vacy form for use by dealerships that willpreserve the safe harbor format. We willkeep you posted on our progress.

CONSUMER FINANCEPROTECTION BUREAUNow comes the recently enacted 2,000-

plus-page law to further regulate financialinstitutions and, although most dealershipsare excluded from regulation by the newConsumer Finance Protection Bureau(Buy Here-Pay Here dealers are not ex-cluded), the Federal Trade Commission(FTC) which writes rules for all dealershas been given extended powers underthis law. Bearing in mind the presidentspecifically identified dealerships as sig-nificant contributors to consumer miseryin the financing of motor vehicles, it willbe interesting to see what comes out ofthe FTC offices.Financial transactions falling under the

agency's jurisdiction would include mort-gages, credit cards, student loans, autoloans, payday loans and more.The devil will be in the details on this

law, too, as the various agencies attempt towrite the thousands of pages of rules re-quired before the law can be implemented.Although Congress established specifictime frames for implementation, and au-thorized an additional 800 employees toget the job done, it’s difficult to believerules and regulations will be developed torequire compliance in less than threeyears; it’s likely to take much longer. Weshall see.

THESECHANGESREFLECTACONSCIOUSDECISIONONTHE PART OF THEFINANCIALSERVICESREGULATORYAGENCIES TOADOPT ADISCLOSURESTYLE INTENDEDTO SIMPLIFYCONSUMERDISCLOSURES.

RegulationsAND MORE REGULATIONS

4D E A L E R N E W S OCTOBER/NOVEMBER 2010

While the idea of “green” vehiclesis becoming more accepted by bothdealers and the public, this new-found popularity hasn’t yet trans-lated into major initiatives by thelarger auctions.David Munnikhuysen, vice president

of strategic initiatives for Manheim, saiddemand for green cars is a combinationof dealer need and media attention.“If hybrids are selling well on the new-

car retail side because of gas prices, thendemand for late model hybrids is up on

the whole-s a l eside,

Munnikhuysen said. “If the cost of gas isstable and settles at a range where thepublic is more comfortable, then the de-mand for high-mileage green cars isn’tthere.”When it comes to green cars, the auc-

tions are very dependent on the trends thataffect the price of gasoline, Munnikhuy-sen said. When the price of gas goes upquickly, they see an immediate demandfor high-mileage cars. When the price ofgas drops, they see a corresponding dropin demand.This applies to all sort of green cars,

Munnikhuysen said, not just hybrids. Henoted what Volkswagen has done with itsdiesel Golfs and Jettas. Demand for thesevehicles follows the same fuel cost trendsas hybrids. He also said these types ofdiesel engines are known for thelongevity of their engines, so they don’tdepreciate as quickly as standard gasolineengine vehicles.“The perception of diesel engines is

that they last longer,” Munnikhuysen said.“Seeing a truck with a diesel engine with1,000,000 miles on the odometer is notthat unusual.”

Munnikhuysen said if the auctiondoes get a hybrid, for example, thevehicle is prepped for sale the sameway as a standard car as long as itis in good running order. If thereis a mechanical problem, it willrequire some special attention.When dealing with batterypacks, for example, the tech-nicians must take precautionsnot to hurt themselves. Thisrequires special training fromthe OEM.That’s one advantage of

sending such a vehicle toManheim, Munnikhuysensaid, adding even when Man-heim has not been asked to fixa particular hybrid, sellers haveasked the company to use itsresources to diagnose prob-lems.There are a variety of hybrids

out there, Munnikhuysen said, in-cluding the Ford Escape and theHonda Insight. For now, Toyota haswon the branding wars, but that couldeasily change as GM Volt soon debutsand Nissan introduces its electric vehi-cle, the Leaf.

Manheim has seen some fleet vehiclescome through its lanes, Munnikhuysensaid. Utility companies will send theirfleet cars to auction when they come tothe end of their product life. There aremany varieties of green fleet vehicles,ranging from compressed natural gas topropane.When those vehicles arrive at Man-

heim, the company announces them forsale. They don’t do much more than that,Munnikhuysen said, calling such vehiclesniche items.“There are a limited number of dealers

who sell these types of vehicles so it does-n’t make sense for us to make a big dealabout having them for sale,”Munnikhuysen. “I know it’s not unusualto have green panel vans that were infleets to be bought by a dealer who sellthem to tradesmen such as painters orcarpenters. These buyers will then putback a standard gas engine into the ve-hicle. I also suspect many dealers whobuy these types of vehicles convert themto regular trucks. They can get moremoney for them and it becomes worththe price of the conversion.”The future will bring new challenges to

the auctions, Munnikhuysen said. Carssuch as the Volt and the Leaf are newtechnology. He expects to see them hit-ting the wholesale market within the next12 or so months. As this happens it willbecome more routine for auctions to pro-mote, prep and sell them, but for now thisis something to worry about in the future.“We’re prepared to meet the remarket-

ing needs of any vehicle that comes to ourlanes,” Munnikhuysen said. “It’s the mar-ket that will decide what technology is theultimate winner in the green race. We’renot picking favorites. The green trend willget bigger. Gas prices will go up and themarket will respond to that. And we willbe ready when that happens.”Over the past couple of years, Man-

heim has held special green car auctionsat Manheim Seattle and Manheim NewEngland. Greg Comstock, dealer salesmanager at Manheim Seattle, said dealerparticipation has been good the couple oftimes they held such a sale.“On the purchasing side, sales were av-

erage,” Comstock said. “We saw goodparticipation on the consignors’ side. Thegreen market has its place at auctionswhen gas prices approach $5 a gallon.

THESE TECHNOLOGIESARE AT THE MERCY OFOUTSIDE FORCES. THEIMPORTANT THINGFOR THE AUCTIONSIS TO BE READY AS THESENEW TECHNOLOGYCARS HIT THEWHOLESALESIDE OF THE MARKET.

Auctions Wait and See When it Comes To Green Cars

B Y J I M S T I C K F O R D

C O N T I N U E D O N P A G E 8

CARSGREEN

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6D E A L E R N E W S OCTOBER/NOVEMBER 2010

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8D E A L E R N E W S OCTOBER/NOVEMBER 2010

When that happened, sales of the Prius,the hybrid Ford Escape and such wentthrough the roof, but demand wentdown when gas prices went down.”But dealers shouldn’t just think

of hybrids when thinking highmileage, Comstock said. Flex fuelcars are very popular at his lanes.When a car can add 10 mpg bybeing flex fuel-capable, even aCadillac Escalade starts lookingmore green, and that becomes an-other way to market such a vehicle.Tom Webb, Manheim’s chief econo-

mist, said hybrids have gained acceptance.When sold new, there are generous tax credits.

These credits don’t follow to the used side of things.While there is concern about battery life, but so far that has not beena major problem with consumers.Webb added fleet vehicles are usually driven until the fall apart,

so most don’t make it to the lanes.“The public is driving this,” Webb said. “There is a consumer ac-

ceptance of hybrids with gasoline engines. As these types of vehi-cles become more efficient, consumer demand becomes a questionof cost. How many people are willing to pay $40,000 for a new hy-brid? We need some sort of critical mass of consumer demand forthis technology to really take off on the used side.”ADESA Executive Vice President, Customer Strategies and An-

alytics, Tom Kontos, said the auctions are notseeing many of the hybrids entering the usedmarket.“What I’m seeing is that these cars are highly

coveted by the dealers who are taking them intrade,” Kontos said. “Instead of sending them tothe auctions, these dealers are keeping these hy-brids for themselves so they can sell them them-selves.”Kontos said many hybrids at the end of their

lease contracts are being bought by those whohave leased them. The end result is auctionsaren’t seeing a lot of the hybrids entering theused-car market.“When we do get a hybrid to sell, we highlight

it at the sale, but that’s it for now,” Kontos said.“I do know that OEMs with hybrids have giventhe auctions special procedures for their hybridswhen the cars are looked over and prepped forauction.”As to the green technology, Kontos said it’s

less of an issue for dealers, as opposed to theOEMs. Dealers and the auctions will take the dif-ferent technologies – compressed natural gas, hy-drogen fuel cells, propane, electric, gas-electrichybrid – in stride. These cars will find their nicheas they enter the used market. OEMs, conversely,must plan what consumers will be buying fiveyears from now even though they don’t know thecost of fuel.That’s very difficult, Kontos said, because de-

mand for such vehicles is very much driven byfuel costs. That is a very difficult environment inwhich to plan.Other factors affecting OEMs is infrastructure.

There are gas stations on every corner, makinggasoline hybrids the easiest cars for the public touse. Most areas don’t have natural gas fuelingstations. The electric grid isn’t really set up for50 million cars to be charged every night, so fornow it appears the hybrid is the most easilyadopted green tech for the public.But that could change, Kontos said. These

technologies are at the mercy of outside forces.The important thing for the auctions is to beready as these new technology cars hit thewholesale side of the market. For now, much ofthe demand is niche.Kontos added performance also will drive de-

mand. Americans won’t be willing to purchasegreen cars if it means a marked drop in perform-ance.If there was an SUV the size of a Hummer that

got 50 mpg and performed 90 percent as well asa regular Hummer, that vehicle would be in mostdriveways.Yet that same vehicle, if it performed50 percent as well a regular Hummer, wouldhave a very difficult time finding traction withthe public.

C O N T I N U E D F R O M P A G E 6 CARSGREEN

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9OCTOBER/NOVEMBER 2010 D E A L E R N E W S

The Better Business Bureau(BBB) is warning car shoppersto beware of websites offeringtoo-good-to-be-true deals onrepossessed cars. BBB hasheard from people across the coun-try who thought they were buyingfrom a reputable dealer online butwere actually sending money toscammers posing as legitimate, al-ready-established community deal-erships.“Because scammers essentially

steal the identity and good name ofreal auto dealers, car shoppers willthink that they’re buying a carfrom a reputable business,” saidStephen A. Cox, president andCEO of the Council of Better Busi-ness Bureaus. “The truth is, they’rebeing sold a bill of goods by a co-ordinated, agile and in all likeli-hood overseas outfit of scammers.”Most recently, one Memphis

auto dealer, America Auto Sales(www.memphisautoworld.com),received more than 1,000 callsfrom consumers across the countrywho had shopped for a new car onwww.americautosales.com think-ing that it was the website of theMemphis dealership. The phonywebsite used the name, addressand contact information of the realdealer.The fraudulent site claimed to

sell repossessed cars at prices wellbelow market. Buyers were in-structed to wire a deposit — asmuch as $5,000 — to an individualrather than the company, which,according to the phony website,“helps us avoid taxes legally.” Thebalance was to be paid upon deliv-ery at the consumer’s addresswithin five days.After paying the deposit, vic-

tims called the real dealership toarrange delivery of their car. Somecustomers even showed up at thelot to pick up the cars they had“bought” on the bogus site.Similar websites have posed as

many different dealers in Col-orado, Florida, Georgia, Michigan,New Mexico and Texas. The web-sites are often taken down after afew days only to crop up shortlythereafter under a different URLaddress and under the auspices ofanother legitimate dealer.

SCAMMERS TAKINGVEHICLE DEPOSITSWITH FRAUDULENTDEALER WEBSITES

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We are dealing with an impatientconsumer these days. Consumers wantresults, and they want them quick. If youdon’t believe me, then look at the back ofa box of Pop Tarts next time you’re at thegrocery store and you will see cooking di-rections: “Place in microwave for 3 sec-onds.” It sounds ridiculous, but yet it istrue. As Americans, we can get deliveredto our homes groceries, office supplies,pets, furniture, and even cars via the Inter-

net without leaving the house!Time is money and money is time, so it

only makes sense to shave off as much aspossible to save a little of both. Consumerstoday want to eliminate the time they spendlooking for an item to purchase, and whenthere is little time to spend, consumers aregoing to the one place where it all starts toget the best referral: the search engine.When most people hear the term search

engine, the ones that traditionally come to

mind are what I like to call the Fabulous 5(Google, Bing, Yahoo, Ask.com, Lycos).These search engines, among many others,provide the consumer with the best resultswithin the local demographic area.Search engines provide only two ways

for businesses to be found:Paid Listings (Search Engine Market-ing/Sponsored Results):Paid listings mean you pay as you get

the traffic. You can set up an advertisingcampaign with the search engine and youpay each time a consumer sees your paidlisting and clicks on the link to your site.This method deducts money from your ad-vertising campaign and once you reach azero balance, you’re pulled out of the list-ings.Organic Listings (Search Engine Opti-mization/Free Listings):Organic listings mean the search en-

gines will display your company informa-tion to the consumer without having to payfor it because you belong there, not be-cause you are paying for it. The search en-gines traditionally showcase 10 results perpage, so improving your search engine op-timization, or SEO, will allow your web-site to climb the ladder of results until youare on the first page of the listed results.Recent studies show 87 percent of all

traffic driven to websites from search en-gines comes via organic or free listings andnot paid or sponsored listings. With morethan three-fourths of the market share, itonly makes sense to adapt this tactic.How SEO can drive the local buyer toyour dealership:SEO is the art of clearly and effectively

communicating what you have to your po-tential customer within your target area.Make sure you review your website to

see if you are communicating what youhave to your target market. A great way tocheck your website is to follow these steps:Visit your website, and hold down “Ctrl

+ F” on your keyboard. You will see apopup to let you search for words within thesite. Once you type the word you’re look-ing for, you can select “Show All” and theword, if found, will be highlighted on thescreen. Simply count the number of timesthe word was found and move onto the nextword. For an independent website, youshould search for the following combina-tion of terms.With the terms listed below, this will

give you up to 1,000 combinations of anyof the following terms if used properlywithin the text of your website. Use the fol-lowing space below to find out how manytimes each word appears on your dealer-ship’s website:

Learn To Hunt In Your Backyard!

10D E A L E R N E W S OCTOBER/NOVEMBER 2010

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Used (HowMany_____ )Pre-Owned (HowMany_____ )PreviouslyOwned (HowMany_____ )Affordable (HowMany_____ )Cheap (HowMany_____ )LowCost BadCredit (HowMany_____ )BuyHere PayHere (HowMany_____ )Classic (HowMany_____ )Luxury (HowMany_____ )Import (HowMany_____ )

Cars (HowMany_____ )Trucks (HowMany_____ )Vans (HowMany_____ )SUVs (HowMany_____ )Autos (HowMany_____ )Vehicles (HowMany_____ )Automobiles (HowMany_____ )Imports (HowMany_____ )Pickups (HowMany_____ )4x4s (HowMany_____ )

CityName (HowMany_____ )StateName (HowMany_____ )State Initials (HowMany_____ )CountyName (HowMany_____ )SurroundingCounty (HowMany_____ )SurroundingCity (HowMany_____ )Additional SurroundingCity (HowMany_____ )CityName+State Initials (HowMany_____ )CountyName+State Initials (HowMany_____ )ZipCode (HowMany_____ )

Search engines love words. It’s thefood they thrive on, and you should havethe above listed terms found within all ofthe pages of your website at least fivetimes each.How does a customer knowwhat types

of cars are on your lot if you aren’t tellingthe search engines you have them? Howwill the search engines know how toshowcase a car you received on your lotonThursday if the last time they looked atyour site was six days ago? How will thesearch engines knowwhat local cities youwant to be found under unless you tellthem where you’re located and what sur-rounding cities you cater to?Make sure your vehicle listing pages

are communicating what you have so thesearch engines know where to place youwhen people are looking for your services.Ultimately, if you can control what yourconsumer sees, you can control wherethey end up spending their money!

By Michael D. Jackson, CEO,Auto Search Technologies, Inc.

(949) 608-0809 (Direct Line)mjackson@autosearchtech.com

11OCTOBER/NOVEMBER 2010 D E A L E R N E W S

SENATE MOTOR VEHICLE SAFETY ACT OF 2010On June 9, 2010, the Senate Committee on Commerce, Science and Transportation marked up

and order reported S.3302, the so-called “Toyota Bill.” In earlier drafts of the Bill and just prior tomarkup, language was included (section 310) which would have specified that a dealer may notsell or lease a used passenger motor vehicle (both wholesale and retail sales) until the dealer firstnotifies the purchaser or lessee in writing of any recall notices. Working primarily with/through Sen-ator Thune, his staff (Brenden Plack), and Committee staff (Alex Hoehn-Saric and Chris Herndon),and as a result of concern raised by General Counsel Keith Whann and his proposed suggestion,language was included in the final reported version of the bill exempting wholesale transactionsfrom the section’s application. While an initial “victory,” the remaining provision is still very trou-blesome and we continue to advocate on behalf of NIADA’s interest pending further action on theSenate Bill and/or on a House companion bill. This issue is also a topic of discussion per the pro-posed August 5 D.C. meetings.

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

Federal Advocates Lobbying Report

w w w . n i a d a . c o mD E A L E R N E W S OCTOBER/NOVEMBER 2010

Car Charging Group, Inc. (OTCBB:CCGI) recently an-nounced it has entered into a pilot agreement with IconParking Systems, the premier provider of parking serv-ices in Manhattan, to provide electric vehicle (EV) charg-ing stations at select trial locations helping to smooth thetransition to EV by creating auseful charging network forIcon's customers."This partnership lays the

groundwork in Manhattan tosupport the national roll-out ofelectric automobiles on theway to dealer showrooms inlate 2010 from manufacturerssuch as Tesla Motors, the Re-nault and Nissan alliance,General Motors, Ford and oth-ers," said Car Charging GroupCEO Michael D. Farkas.Car Charging Group plans to

install Level II (240 volts)ChargePoint® Networked Charging Stations for EVs whichare manufactured by Coulomb Technologies(www.coulombtech.com), the industry leader in electric vehi-cle charging infrastructure. Through the aid of government taxincentives, subsidies, loan guarantees and grants, Car Charg-ing provides EV charging stations at no charge to propertyowners and managers while retaining ownership, thus allow-ing drivers access to convenient locations and partners to re-alize a percentage of the charging revenue generated."By partnering with Car Charging Group, we are poised to

meet the increased demand from electric car owners while si-multaneously working towards transportation solutions thatare more sensitive to the environment," said Paul Regan, vicepresident of Operations, Icon Parking Systems.Icon Parking Systems operates more than 200 parking fa-

cilities in Manhattan. Many of Icon's locations are in the city’sbusiest and most vibrant commercial neighborhoods, otherscan be found near famous New York City landmarks, andmany are in residential areas throughout the city. Vehicle own-ers can shop for monthly, hourly and daily parking, find greatdiscount coupon offers and compare facilities by visiting IconParking at www.iconparking.com.Last month, New York joined other cities including San

Francisco, Austin and Detroit, as part of a nationwide push toadd infrastructure for plug-in cars by installing its first publicelectric-vehicle charging station.According to NewYork CityMayor Michael Bloomberg, the city now has 6,000 alternativefuel vehicles in its fleet of 26,000 vehicles."Driving a vehicle with no engine and no exhaust is an at-

tractive option to Americans so we anticipate that the upcom-ing introduction of mainstream electric vehicles by majormanufacturers will usher in the mass adoption of electric ve-hicles," said Brian Golomb, director of sales and marketing,Car Charging Group. "Access to charging stations outside ofthe home, at convenient locations like parking facilities, willmake people more comfortable about investing in EVs andeliminate range anxiety fears."

Get the latest scoop on the industry by watching ourbi-weekly “Automotive Industry News” on NIADA.TV,updated the second and fourth Monday of each month.Also view for free over 400 hours of quality dealereducation, including many sessions from the recentNIADA Convention. Just log onto www.niada.tvand click on the New Programs section.

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12

w w w . n i a d a . c o m OCTOBER/NOVEMBER 2010 D E A L E R N E W S

Vehicle dealers attending the 2010SEMA Show Dealer Day Conferenceon Wednesday, Nov. 3, from 8:30a.m. to 1:45 p.m., at the Las VegasConvention Center, will learn whatothers in the industry are doing andwhat works best given their businessmodel.This year’s Dealer Day will focus on

accessory integration, sales and profitand will also provide participants with ahow-to manual outlining best practicesand guidelines for dealer accessory pro-grams.A key component to this year’s Dealer

Day will be an operations panel consist-ing of a dealer principal or general man-ager, a service manager, a parts manager,a new- and used-car sales manager, anoffice manager and a finance manager.Questions will be asked from the per-

spective of an experienced accessorymanager. This diverse panel will provideinsight into the inner workings and chal-lenges confronting every dealer.

There are generally four basic ap-proaches to operating an accessoryprogram within a dealer:

• Third Party: An outside company fa-cilitates the entire operation and is re-sponsible for inventory, installation,spiffs and management. The dealer ben-efits from this method through a rebateprogram and has minimum risk.• Dedicated In-House: The dealer as-sumes all responsibility and controls theentire scope of operations. There is adedicated accessory manager who facil-itates all sales and service. All expenses(installations, inventory, labor, payrolland insurance) are borne by the dealer.Also, the tire department usually fallsunder the umbrella of the accessory de-partment. These programs generallyoffer a higher return on investment butalso carry increased liability and the po-tential for obsolete and bloated inventorylevels.• Parts: The parts department acts a li-aison between the front and back end andis responsible for ordering accessories.Installation methods vary.• Get-Ready Manager: The get-readymanager coordinates accessory sales be-tween sales, service and parts. He or shebasically schedules installations. The

scope of responsibility may vary, but thisperson is generally controlled throughthe sales department and ensures that anywe-owe or due-bill work owed to thenew- or used-car customer is completed.The dealer approach is often deter-mined by the following factors:

• SIZE AND VOLUME OF DEALER• CAR LINES OFFERED• SHOP CAPACITYRegardless of the chosen approach,

success dictates the dealer have a clearvision of the products and services theywant to offer, create functional policiesaround that vision and then firmly com-mit to said approach.Advanced registration**: $99 by Oct. 17Onsite registration**: $149 after Oct. 17** Includes lunch. Price does NOT in-

clude required SEMA Show registrationof $25 by Oct. 17, or $75 after Oct. 17.

Sincerely,Zane ClarkSEMA Council Director

ANNUAL DUES: $120.00

For information on how to become amember please email cindy@niada.comor call 800-682-3837.

DEALERNEWS

MAKE CHECKS PAYABLE TO: NIADA SERVICES • 2521 BROWN BLVD. • ARLINGTON, TX 76006

MEMBERSHIP HIGHLIGHTS & BENEFITSN E V A D A

SEMA D E A L E R D AY

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14D E A L E R N E W S OCTOBER/NOVEMBER 2010

More than half of the 316 autoauctions in the National Auto AuctionAssociation (NAAA) are independ-ently owned and operated. Those 176independents make up the largest groupof auctions in the NAAA and includesome of the most innovative, creative en-tities in the industry. When it comes tocustomer service and dealer responsive-ness, this group is second to none.Independent auctions are very similar

to independent dealers because they are

often family-owned businesses and mayhave only one location. Yet, no matterhow large or small, they understand – justas independent dealers do – the impor-tance of customer service. When dealersvisit an independent auction, they areoften dealing with the owner of the busi-ness; that can make a difference in howquickly issues are resolved because theyknow how important it is for an inde-pendent to get things done effectivelyand efficiently.Many dealers believe independent auc-

tions may not have the technology or theproducts of a chain auction, but that’s farfrom the truth. The services offered by in-dependent auctions rival the latest in auc-tion offerings by the large chains.Independents offer the basic services adealer would expect from an NAAA auc-tion, and most offer other services such asreconditioning, mechanical work, andtransportation. In addition, many offerlive simulcast sales, Internet sales throughOVE, SmartAuction, or OpenLane, post-sale inspections, and array of floor plan-ning services includingMAFS,AFC, andDSC among others.The influence of independent auctions

is felt throughout the industry. Owners

and managers play pivotal roles in arbi-tration standards, industry legislation,electronic condition reports, and NAAAstandards for certification. The impactof independents is so significant 10 ofthe last 15 and four of the last fiveNAAA presidents have come from in-dependent auctions.Louisiana’s 1st Choice Auto Auction

sums up the independents devotion toservice with one Cajun French word,“lagniappe.” Pronounced LAN-yap, it

means that little something extra you getwhen doing business with a merchant. Theauction adopted this philosophy when itopened for business in 2002 to convey todealers they were more than customers,they are special. Managing Partner JohnPoteet also believes outstanding servicebegins with outstanding people, and thetradition of lagniappe is perpetuated bythe employees’ drive to go above and be-yond the customers’ expectations.An important component of Louisiana’s

1st Choice Auto Auction’s success is thecommitment to the latest and best tech-nology for their dealers. Many independ-ent auto auctions in the NAAA are on thecutting edge of auction technology whichenhances the customer experience, evenwhen the dealer can’t see the technologyin action. This goes from the latest in auc-tion software to implementing platformssuch as Auction Pipeline, AWG simul-cast,AuctionAccess, and social network-ing sites such as Facebook and Twitter.Astechnology advances, independents aresearching for better and faster ways toplease their customers and make their em-ployees more efficient.Scott Finkle, president of Auction

Pipeline, said his company’s growth

has been fueled by independent auc-tions adding new technological capa-bilities to their operations. The Pipelineplatform dovetails nicely with the growthof technological competence in independ-ent auctions.Of course, as dealers become more

technologically sophisticated, auctionsmust respond to their needs. For example,Louisiana’s 1st Choice Auto Auction of-fers free Wi-Fi for dealers enabling themto use their wireless devices to get the lat-

est information regarding in-sale vehicleinformation. Another important tool forbuyers is the ability to buy online with asimulcast auction. However, sellers canalso utilize simulcast to sell vehicles. Thisis a great feature allowing remote reppingfor dealers and institutional sellers thatcannot attend the auction.According to Poteet, dealers can still

buy and sell in the lanes as always, but atLouisiana’s 1st Choice, they also have theoptions of using simulcast, or buying andselling 24/7 with OVE, OpenLane, Smar-tAuction, and Auction Pipeline. Thischoice of buying and selling platforms isunique to independent auctions and givesdealers a greater opportunity to conductbusiness than any other venue.There are indications the new car mar-

ket will stay at current levels for the nextfew years. For that reason, Poteet believesused car inventory will continue shrink-ing for the foreseeable future, so inde-pendent dealers must find more outlets toobtain vehicles for retail sale. It is com-forting for dealers to know independentauctions are ready to serve with all of thetechnology and latest innovations avail-able to make the vehicle buying experi-ence easy and reliable.

AN IMPORTANTCOMPONENTOFLOUISIANA’S1ST CHOICE AUTOAUCTION’SSUCCESS IS THECOMMITMENT TOTHE LATEST AND BESTTECHNOLOGY FORTHEIR DEALERS.

THE DEALER’S FRIEND

By John Poteet, Louisiana’s 1st Choice Auto Auction

I N D E P E N D E N T A U C T I O N S :