The Virginia Independent News: Winter 2013

WINTER 2013 | THE VIRGINIA INDEPENDENT NEWS | 3

Volume 34 Number 1 • Winter 2013

No Title - No Power - No Deal? (Page 9)The CARLAWYER © (Page 11)Proposed Changes to the Buyer’s Guide (Page 22)Year-End Tax Strategies (Page 31)

Symbol of Quality

The Virginia and Maryland family of Manheim Auctions invite you to visit us weekly at our

three convenient locations:

Sale Every Thursday 9AM 120 Auction Dr. Fredericksburg, VA 22406 Tel. 888-883-3733 Fax 540-373-5021

Sale Every Wednesday 9 AM I-81 Exit 243 3560 Early Rd. Harrisonburg, VA 22801 Tel. 540-434-5991 Fax 540-434-6813

Sale Every Tuesday 9AM 7120 Dorsey Run Rd Elkridge, MD 21075 Tel. 410- 796-8899 Fax 410- 799-0512

Your Place To Be On Tuesday, Wednesday, and Thursday


Columns6 From the President: LexaLynn Hooper6 Lynn Hooper Inducted into AMV Hall of Fame8 Executive Director’s Notes: Lois Keenan9 What’s New?12 Around the Commonwealth15 VIADA PAC Contributors16 VIADA 53rd Annual Convention & Expo information20 Upcoming VIADA Events & VIADA Honors Select Partners20 2012-2013 State Officers & District Presidents21 Member Bulletin Board23 Past Presidents Column: Jimmy Davis26 VIADA Member Renewals27 VIADA New Members31 A Hightlight From Our Blog: “NHTSA Warns of Counterfeit Airbags”

Features7 TSYS Merchant Solution the Durbin Amendment7 Ask Patty Launches Certified Female Friendly Site9 No Title - No Power - No Deal?10 WellCard Health Information11 The CARLAWYER ©14 FTC Proposes Modifications to Used Car Rule18 Which Vehicles Will be the Best-Sellers of 201319 Why Change Your Password?22 Proposed Changes to the Buyer’s Guide24 Cashflow is King!24 Annual Safeguards & Red Flag Programs Review29 Payment Guarantee Insurance31 Year-End Tax Strategies32 The Internet Corner

The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the view of the Virginia Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of VIADA, does not constitute an endorsement of the

products or services featured.

The Virginia Independent NewsA VIADA Publication ©

Virginia Independent Automobile Dealers Association

4700 Thoroughgood SquareVirginia Beach, VA 23455-4043

757.464.3460 | 800.394.1960Fax: 757.460.1346

E-mail: [email protected]

Lois KeenanExecutive Director

[email protected]

Stella SalyerAssistant Executive Director

[email protected]

Peter IaricciTrainer/Consultant

[email protected]

Tina AllmanAuction [email protected]

Madison EllisOffice Manager/Bookkeeper

[email protected]

Stephanie HandPublications

[email protected]

Kristen LuciaMembership

[email protected]

Vickie LondonOffice Assistant

[email protected]

VIADA OFFICERS 2011-2012

Chairman of the Board - Gail Davis

President - LexaLynn Hooper

President Elect - Alivin Melendez

Vice Presidents - Bobby SteeleDonald Boucher, Jr.

Howard Kershaw

Secretary - Weldon Whitehurst

Treasurer - Rodney Williams

6 | THE VIRGINIA INDEPENDENT NEWS | WINTER 2013

By: LexaLynn Hooper; Hooper’s Quality Cars Ltd

From the !January is here and it doesn’t seem possible half of the 2012-2013 year is gone. One thing that is certain is that automobile sales are mixed across the Commonwealth but dealers agree that purchases to fill their inventories are difficult.

Our theme this year is “Members are the Future” and the district presidents have been conducting conference calls to share information about how their meetings are set up and how sponsors are not only supporting the meetings but are making very good presentations. They are working to make sure the members have a reason to continue being members. Be sure to read their articles in this issue. The presidents are looking at ways to not only encourage attendance, but one district is pursuing the idea of having virtual meetings in connection with actual meetings. It is being called a hybrid virtual meeting. It will be interesting to see how this develops.

Association members continue to contribute to the local communities as well as state wide. Locally, members volunteer to support schools, scouts, sports and civic organizations. At the state level, seven independent dealers serve on the Virginia Motor Vehicle Dealer Board.

The association continues to develop ways for dealers to communicate. The VIADA website is a great way to track association activities as well as get vendor information. The VIADA Blog is active. Contact Stella at the home office. She will be glad to take your information and add it to the blog.

The 2013 Directory should be at your offices. Use it to communicate with your fellow dealers and associate vendors. Our associates are very important to each dealer, please make sure to support them.

The October VIADA State Board meeting was very productive and we look forward to continuing the momentum at the January Meeting. Results from the Convention Survey will be released as well as the financial review. Both are important ways to assure our members that the association listens to the members’ needs, as well as showing that VIADA is in good financial status.

The Association has determined that the raffle is a good way to earn money for an individual dealer and for a good cause. The next raffle will begin in January and the theme will be one that excites all.

On a personal note. Lynn Hooper was inducted into the Arkansas Military Veterans Hall of Fame in November.

I hope that you had a very happy and safe Holiday and wish you the best in 2013.

MEMBERS ARE THE FUTURERecruiting members is necessary

Keeping members is essentialGiving members a reason to stay is the challenge

The objective of the Arkansas Military Veterans’ Hall of Fame (AMVHOF) is to publicly emphasize the honor brought to their state and nation by the sacrifice of Arkansas Military Veterans and their families. Their primary purpose is to honor Arkansas military veterans and to educate Arkansans through the Arkansas Military Veterans’ Hall of Fame website of their outstanding accomplishments.

Lynn Hooper of Hooper’s Quality Cars in Stafford served two combat tours in Vietnam as an Aviator where he earned two Silver Stars, four awards of Distinguished

Flying Cross, the Purple Heart, two Bronze Stars as well as an Army Commendation Medal for Valor. He flew over 1,100 combat missions and served in key Army staff and command positions during his exceptional career.

Lynn was one of fifteen inductees in the 2012 Arkansas Military Veterans’ Hall of Fame on November 9 during AMVHOF’s 2nd Annual Banquet & Induction Ceremony.

Congratulations, Lynn, and thank you for your dedication and commitment to protect our country’s freedom!

- Lynn Hooper Indu cted Into AMV HALL of fAMe -

TSYS MERCHANT SOLUTIONSTHE DURBIN AMENDMENT

The Durbin Amendment and what it means to you! As your payment processor, we do our best to ensure you have the information you need to do what you do best – run your business.

In addition to Congress establishing “reasonable fees and limits” to the amount of interchange charged by issuing banks for debit card transactions, the Amendment signed into law by the President in July 2010 also made provision for the following:

Set a minimum transaction for credit card*Set a maximum transaction for credit cards at Federal Agencies and Institutions of Higher LearningOffer a discount for cashInform consumers of the cost of taking a particular type of card. For example, informing a consumer who presents a reward card for payment on a high ticket item that it will cost a business an additional $xx to accept their rewards card instead of a debit or regular credit card.Ask for a different type of card which may cost less

Under a separate DOJ ruling effective July 2011 which updated Visa/MasterCard rules to include certain practices that are still prohibited under the legislation. A business cannot:

Establish a minimum for debit or prepaid cards*Refuse to accept the card if the consumer still opts to pay with itExclude cards from a particular issuerSurcharge for card-based payments* (see the next quarterly issue of the Virginia Independent News for more information on this legislation – the legislation has passed but the rules of engagement have not been finalized)

To learn more visit www.durbinfacts.com or contact Carlene Bowers 757-343-1311 - [email protected] Carlene BowersRegional Merchant AdvocateTSYS Merchant Solutions757-343-1311 (o)757-257-0316 (f)

AskPatty.com, an online resource for automotive advice for women by women, has launched a new website that helps women find businesses it has certified as

female friendly.The site, www.

askpattycertifiedfemalefriendly.com, is dedicated to helping women locate money-saving offers, coupons and expert automotive help and services through Ask Patty’s network of Certified Female Friendly® retail locations across the U.S. and

Canada.The Ask Patty Certified Female

Friendly program, launched in 2006, offers-friendly certification and ongoing training and expertise in marketing to women for automotive retailers to ensure the highest level of customer satisfaction for women. The program provides comprehensive tools and training on how to attract, sell, retain and increase loyalty with women. Included in the program are strategies for marketing and advertising women.

The new website displays local Certified Female Friendly locations, coupons and specials. Women can sign up for a free membership in the Ask Patty community to review Certified Female Friendly locations, get expert automotive advise via email and cash in on additional specials and coupons.

For more information on how to become certified, go to www.askpattycertifiedfemalefriendly.

com.

Ask Patty Launches Certified Female

Friendly Sites


NotesHappy New Year!

Economists bring us good news …. They are predicting that because fleet lease companies, for economic reasons, chose not to replenish their fleets last year, 2013 will be the year! This means more vehicles produced, more new vehicles sold, and an influx of fleet vehicles will be available at auctions. It is anticipated these vehicles will be in the 50,000 – 60,000 mile range and will be available in the first quarter of 2013. In addition, banks are releasing more money to help with funding deals.

VIADA continues to supplement your efforts – Your 2013 auction card is now being distributed in the month of your renewal of dues. The new card has 23 participating auctions valued up to $2,800. Remember they are delivered by UPS and requires a signature – only one card is issued per dealership.

Your Membership & Services Directory will arrive soon. Inside the package will also be your 2013 VIADA door/window decal. You are now reading the first issue of The Virginia Independent News of the new year. Consider placing this in your lobby for customers to see. Soon they will tie this logo to the logo on your door and begin to realize you have stepped up to be a part of your trade organization – that helps build confidence.

Thanks to VIADA’s assistant executive director, Stella Salyer, VIADA’s blog, accessed through our website, has been reactivated plus we are on Facebook and Linked In to make our logo more visible on line. Check out all these features and let Stella know you are out there! This will encourage her to keep things moving forward. She will also appreciate having you send information of interest to share with other members by posting on these sites.

We begin this year with gratitude for the support of our dealer community and that of our associate members who support us through advertising/sponsoring.

Please mark your calendars for July 18 – 21, VIADA’s 53rd Annual Convention at the Portsmouth Renaissance Hotel and Waterfront Conference Center located on the Elizabeth River and only a ferry ride away to Norfolk - A great place to find many attractions for families. It is our hope to have more members join us for this event that will be planned using the 128 member responses received from the recent survey of VIADA members.

This is also going to be a year of regulation/law changes. Please watch your emails and faxes for updates and alerts. As you see in this issue, the FTC is proposing changes to the Buyers Guide Window Sticker with technical changes to the Spanish version. There is a bill in the General Assembly regarding dealers selling vehicles with a rejection sticker at retail auctions. Dealers will be required to have internet connection and email address by July 1, 2013, and we will be following the new Consumer Financial Protection Bureau as its parameters are determined regarding oversight of dealer practices.

Your association is committed to be your watch dog. It will be a busy year, but a productive one. Together we will make the difference!!

“Imagination was created to compensate forWhat we aren’t and a sense of humor was created to

Help console us about what we are.”Henry Wadpole



No Title - No Power of Attorney - No Deal?

There is still confusion about when to use the Power of Attorney form and which Power of Attorney form to use. There are two Power of Attorney forms, a VAD 70 which is produced by DMV for consumers, and a pink VAD 70A designed for Virginia dealers on secured paper and sold by VIADA. The DMV Power of Attorney (white) form is used by consumers; for example, when a military person is deployed overseas they will give their spouse this Power of Attorney to sign their name during their absence. Dealers cannot use this form. This form is not printed on secure paper nor does it have the required odometer disclosure.

Dealers can only use the Power of Attorney form (VAD 70A) which has limited use. This form may be used only when your customer’s title is physically held by a lienholder or the owner has lost their title, in which case you may apply for a lost title from DMV using form VSA 66 “Application for Replacement and Substitute Title”.

The reason a dealer can only use the VAD 70A form is because under the Truth in Mileage Act, odometer readings must be disclosed on secure

paper. This POA not only gives the dealer the right to sign for the customer but also to disclose the mileage reading.

The problem is dealers do not understand what form to use when they sell a vehicle, do not have a title, and cannot use the pink Power of Attorney. As stated above when the customer’s title is held by a lienholder or they have lost it, you are to use the VAD 70A. When a dealer sells a vehicle and does not have the title at the time of delivery, for example; you purchased a vehicle at the auction with title absent or your vehicle is floorplanned and in both scenarios you do not have the title to do the odometer disclosure which is required before deliver, you cannot use the VAD 70A. The proper form to use is the Reassignment Form (VAD 20) which is an odometer disclosure statement printed on secure paper. When you receive the title you attach the Reassignment Form to the title and insert the control number on the back lower left-hand corner.

This will complete the transaction and you should not have any problems processing the work at DMV Customer Service Centers.

VIADA is now on facebook and LinkedIn. Our blog is also active and easily accessed through our website. Please “like”, “connect” and read us for current news, industry updates, cool pictures, serious issues and

lighthearted bits. We’d love to hear back from you too!

www.facebook.com/infoviada

www.linkedin.com/company/virginia-

independent-automobile-dealers-association

www.viada.org/members/blogs

What’s New?


Scholarships for VIADA and NIADA Members

VIADA Ladies Auxiliary and NIADA offer college scholarships to the children and grandchildren of members annually.

Contact the State Office at 800-394-1960 or visit www.viada.org and www.niada.com.

NIADA Scholarship Deadline is February 9, 2013VIADA Ladies Auxiliary Scholarship Deadline is March 15, 2013

VIADA Ladies Auxiliary$1000

NIADA Scholarship$3500

WellCard Health empowers members by providing access to reduce the cost of health care with each use of pharmacies, vision care providers, hearing specialists,

prepaid lab tests, prepaid imaging tests, patient advocacy services, and more

WELLDYNERX Prescription Drug Discount BenefitInstantly receive average savings of 10% up to 75% on drug prices through our nationwide network of more than 59,000 pharmacies, including major chains and community pharmacies. Your actual savings may vary depending on the medication and the pharmacy you use. Please visit www.WellCardHealth.com to find a participating pharmacy near you and check the estimated cost of drug.

FIRST ACCESS Medical Discount BenefitCardholders can reduce the expense of medical services by utilizing the contracted provider networks through First Access. More than 350,000 physicians nationwide and more than 50,000 ancillaries (lab, x-ray, imaging, durable medical equipment, home health care) belong to the network. There is no limit to the number of times you can save when visiting participating providers.

OUTLOOK Vision Discount BenefitTo find a provider, visit www.WellCardHealth.com or call 800-342-7188, then simply present your card at a participating provider to receive your discount. Also inquire about discounts on hearing aids offered by OUTLOOK.

DENTEMAX Dental Discount BenefitTo find a provider, visit www.WellCardHealth.com, then simply present your card at a participating provider to receive your discount.

PREPAID Lab & Imaging Discount BenefitSave up to 50% or more on lab & imaging tests. Visit www.WellCardHealth.com or call 800-903-3921

WellCard Health Program Discount Card

• This plan is not insurance.• The plan provides discounts at certain healthcare providers for medical services.• The plan does not make payment directly to the providers of medical services.• You are obligated to make payment for services but you will receive a discount from

those providers contracted with the plan.• The name and address of the discount medical plan organization is AccessOne

Consumer Health, Inc. 84 Villa Rd, Greenville, SC 29615 800-896-1962

If you have not received this card in the mail, please contact us at

(800) 394-1960


Here’s our monthly collection of selected legislative and regulatory highlights, and a recap of some of the many auto sale and financing lawsuits we follow each month. Remember - what we report here is not even close to being every recent development. We select those we think should be important or interesting to car dealers. Note that this column does not offer legal advice. You should consult your dealership lawyer with any legal questions.

We include items from other states. Why? We want you to be able to see new legal developments and trends. Also, another state’s laws might be a lot like your state’s laws – if AGs or plaintiffs’ lawyers are pursuing particular types of claims, those laws and claims might soon appear in your state. As always, though, there is no substitute for checking with your own lawyer before you rely on anything we report or if you have any questions.

Federal LawInflation Alert! On November

21, the Consumer Financial Protection Bureau and the Federal Reserve Board published final rules amending Regulation Z (TILA) and Regulation M (Consumer Leasing Act) by increasing the dollar threshold for exempt consumer credit and lease transactions. The Dodd-Frank Act provided that the dollar amount thresholds for TILA and the CLA must be adjusted annually by any annual percentage increase in the consumer price index. Based on the adjustments, TILA and CLA protections generally will apply to consumer credit transactions and consumer leases of $53,000 or less in 2013. Although the Dodd-Frank Act generally transferred rulemaking authority under TILA and the CLA to the CFPB, the Federal Reserve retains authority to issue rules for certain motor vehicle dealers – that’s why they were involved with this. The adjustments to the thresholds will take effect on January 1, 2013.

CFPB’s Report Card. On October 31, the CFPB released its first Supervisory Highlights

report. The CFPB will periodically issue a Supervisory Highlights report to inform the public and the financial services industry about its examination program. The CFPB visited banks with more than $10 billion in assets, their affiliates, and nonbank lenders from July 2011 through September 2012. The CFPB reported problems with certain credit and lending disclosures, including creditors increasing credit card limits without notifying co-signers in some instances. In addition, the CFPB highlighted that creditors have reported inaccurate information to credit bureaus. The CFPB also assessed institutions’ efforts to develop and maintain effective compliance management systems.

Dealer Targeted for Privacy Violations. On October 26, the Federal Trade Commission announced that it accepted a final settlement with Franklin’s Budget Car Sales, Inc., a Georgia car dealership, resolving allegations that it illegally exposed the sensitive personal information of consumers by allowing peer-to-peer (“P2P”) file sharing software to be installed on its computer systems. Franklin’s allegedly compromised consumers’ sensitive personal information by allowing P2P software to be installed on its computer network as well, in violation of the FTC Act, the Safeguards Rule, which implements Section 501(b) of the Gramm-Leach-Bliley Act, and the Privacy Rule, which implements Section 503 of the GLB Act. Franklin’s also allegedly failed to provide annual privacy notices and failed to provide a mechanism by which consumers could opt out of information sharing with third parties, in violation of the GLB Privacy Rule. The settlement bars misrepresentations about the privacy, security, confidentiality, and integrity of any personal information collected from consumers, and Franklin’s must establish and maintain a comprehensive information security program.

State DevelopmentsWe have only one state

development to report this month. The Texas Department of Banking and Securities amended the bulk of the rules in Chapter 84 concerning motor vehicle installment sales to improve consistency, grammar, punctuation, capitalization, and formatting and to provide clarification, more precise legal citations, and improved references to other state agencies.

LitigationVehicle Buyer in Ordinary Course

of Business Has Priority over Floor Plan Lender: A collector of classic automobiles engaged a company to help him locate, buy, sell, and trade cars. The collector bought three vehicles, but they were titled in the company’s name for marketing purposes. After the company defaulted on its floor plan agreement with a bank, it transferred title to the three vehicles to the collector for a nominal purchase price, but continued to store the vehicles for the collector. The bank sued the company and seized the three cars. The collector sued the bank in the U.S. District Court for the Southern District of Ohio, seeking possession of the three vehicles. The collector moved for summary judgment, arguing that he had a superior interest as a “buyer in the ordinary course.” The court noted that a perfected security interest will often prevail over a subsequent motor vehicle purchaser unless the purchaser is a “buyer in the ordinary course of business,” who takes the vehicle free and clear of any lien on the seller’s property. The bank argued that the collector did not fall within the definition of a “buyer in the ordinary course” because he never took possession of the vehicles, and the issuance of the titles occurred only after the company defaulted on its loan obligation. The court disagreed. It found that the statute does not necessarily require that the buyer have possession, so long as the buyer has the right to possession, which the collector had. The court then found that the late titling of the

(CONTINUED ON PAGE 30)

tHe cArLAWyer©By Thomas B. Hudson and Nicole Frush Munro


DISTRICT 1 TIDEWATER

VIRGINIA

District 1’s last meeting was sponsored by Stars GPS, a VIADA Member Benefit Provider offering tracking devices plus education of how the devices can provide an economic gain for dealers.

Susan Whitehurst reported on the activities of VIADA’s Ladies Auxiliary who provide the charitable activities of the Association. They offer scholarships to deserving high school sons, daughters, and grandchildren of VIADA members, Fill A Wish, and other contributions benefiting those in need. They are funded through an auction during VIADA’s annual convention. Christina Byers, daughter of Troy and Jennifer Byers of Eggleston Services in Norfolk was one of the two scholarship winners for 2012.

Additional honors for District 1: Carter Davis of Davis Auto Center was selected VIADA Quality Dealer of the Year in a special ceremony during VIADA’s Annual Convention. That same evening the winner of the 50/50 Raffle that raised $16,840 for upgrading computer equipment for the state office was drawn. The winner of 50% of the amount raised was Pat McRoberts of Steve’s Auto Sales in Norfolk. Congratulations to all!!

Attendees were informed of a DMV study regarding the use of Powers of Attorney, the results of which will be provided for members as soon as information is available. The MVDB is now checking online advertisements to be certain they are following the same guidelines as the printed and television ads. In addition those who answer the inquiries by phone or email must be licensed as salespersons if they quote prices or any features of the vehicles of interest to the callers.

Cars.com and the Daily Press Media Group’s national trainer presented a mini seminar regarding advertising on line and gave dealers some excellent tips on how to communicate to the

2012, to members in the month they join or renew their dues, and a form of the month is being offered to members with a 10% discount also effective December 1.

Members will soon receive WellDyneRX Prescrption/physician cards in the mail. There are over 59,000 pharmacies and over 350,000 physicians nationwide participating in this program that offers savings from 10 – 75% with individuals paying the balance at time of use. It is not insurance – it is underwritten by pharmaceutical companies. These cards can be distributed to employees, families, friends, customers – any one you wish – more information will be provided with the cards giving the websites that list the companies participating in your area. – Watch for them in the mail!

Wishing you a healthy and prosperous New Year.

David GripshoverDistrict 2 President

DISTRICT 3ROANOKE VIRGINIA

A large number of members along with their families and employees gathered for a special celebration to end the calendar year. There were sponsors, entertainment ranging from nationally recognized to our talented members and auctioneer (all sweet sounds), silent and live auctions, door prizes, exchange gifts, and delicious buffet.

The committee of Barry Riddleberger, Sonny Arrington, Joseph Lohkamp, Al Woods, John Porter, and Erin Stanley did a phenomenal job making gifts and purchasing gifts. Their efforts were supplemented by gifts and money provided by the sponsors of the evening. Every minute was filled with excitement and anticipation.

VIADA’s President and Past President, LexaLynn and Lynn Hooper of Hooper’s Quality Cars in Stafford, attended the event and recognized President Barry Riddleberger for his leadership in District 3 and Sonny and

“techies”, what online shoppers respond to, and much more.

Wishing you much success in 2013,

Weldon WhitehurstDistrict 1 President

DISTRICT 2 RICHMOND VIRGINIA

District 2’s last meeting was sponsored by Experian/Gold Star GPS and featured Bruce Gould, Executive Director of the Motor Vehicle Dealer Board.

Other special guests included VIADA President LexaLynn Hooper of Hooper’s Quality Cars in Stafford who addressed the group outlining her goal for the year; members are the future: Recruiting members is necessary, keeping members is essential, and giving members a reason to stay is the challenge.

Bruce Gould explained the make of the MVDB and spoke of the Transaction Recovery Fund including later questions about the possible need of having to assess the dealers should the fund balance get too low to pay claims. He gave insight to their Consumer Complaint Department where two employees work full time answering consumer calls such as their three-day right of rescission, and he noted there are 300 fewer dealers today than in 2007.

Some of the problems being noted include dealers issuing 2nd and 3rd sets of 30-day tags which is illegal other than 2nd sets when needed for vehicles to be registered out of state. Maintaining hours continues to be a problem. Dealers are reminded to notify the MVDB if there is a change to their corporate structure, being certain to follow advertising regulations when placing ads on the internet, and many other tips for regulatory-free selling.

VIADA’s Executive Director announced new things to come: The 2013 Membership Directory should be available in January – thanks were extended to all who advertised in this publication. An updated auction cards distribution began December 1,

Bertie Arrington for their many years of service on the State and local levels.

Their festive power point show, set for a continuous roll, featured pictures of dealers, dealerships, and wonderful snow scenes to get in the holiday mode.

Everyone left the party feeling upbeat and looking forward to a new year of renewed expectations.

Wishing each of you a healthy and prosperous New Year,

Barry RiddlebergerDistrict 3 President

DISTRICT 4NORTHERN VIRGINIA

Our first meeting of the new association year, hosted by the Manheim Fredericksburg staff and sponsored by Chase Custom Finance and Capital Financial P&C, was well attended.

Glen Hendricks of Chase Custom Finance spoke of their interaction with dealers to make funding available and allow dealers to sell more cars. Their program covers a wide array of opportunities for consumers with borderline credit to qualify for funding and assist with repairing credit.

Michael Beyers, Vice President of The Financial Group of Virginia, Inc. spoke extensively regarding the current state of health insurance. He is well versed in this field and has presented a number of seminars about the current issues surrounding the subject. This discussion led to many questions and speculations from attendees as they sought to find understanding and apply it to their individual needs.

The group discussed advertising “scraping” – a new term in internet advertising and how to monitor advertising for such violations. More information was shared about regulations when advertising online.

The veto of a recent California bill that would have deeply impacted BHPH dealers was good news. Its importance is the tendency of legislation coming


Directory and 2013 VIADA logo will be shipped in January.

Guest Jeff Brown discussed a few things dealers can do to protect themselves and he touched on the new interpretation of dealers selling with a rejection sticker at retail auctions – a subject to be addressed through legislation at the 2013 General Assembly session.

Those in attendance enjoyed the fellowship with fellow dealers.

Happy New Year,

Bobby SteeleDistrict 6 President

DISTRICT 7CENTRAL VIRGINIA

District 7 is working on developing a hybrid meeting with the assistance of Manheim Harrisonburg and a committee of members from the district.

Karl Kiracofe and his IT staff from Manheim Harrisonburg have graciously agreed to work with us on this project. The meeting will be hosted at the auction for those who are able to physically attend, and others who are unable to attend can log into their computer to hear the speaker and be able to ask questions.

This will be a first for the VIADA district meetings and we are looking forward with great anticipation to seeing the results. Members will be notified by mail, email, and fax.

Wishing each of you a productive and healthy new year.

James MillnerDistrict 7 President

DISTRICT 8 SOUTHWESTERN

VIRGINIA

Our recent meeting was very upbeat. Brent Carrier, Manager, and Vernon Walker, Account Representative, for Citizens

from that state having a way of filtering across country. This bill would have capped interest rates at 17.25% and caused BHPH dealers to be licensed under the Department of Corporations as a finance lender among other things.

Information was shared also regarding the new Consumer Financial Protection Bureau and how it will impact dealers as well as the National Association of Attorneys General and Federal Trade Commission concerns of dealer practices especially in the area of spot deliveries and other disclosures.

VIADA members will soon receive a WellDyneRX Prescription Drug Discount Benefit card that will provide savings on prescriptions and certain doctor services. Also, VIADA is on the Blog, Facebook, and Linked In thanks to its Assistant Executive Director Stella Salyer. Remember to visit the sites and let them hear from you.

The group is discussing adding a link to their websites that would allow consumers to see feedback that customers have sent. This link would be listed on the dealer’s website and linked to a site at VIADA. Also have a link on the VIADA website that would allow dealers to list venders they have had positive experiences with plus contact names and locations.

Wishing each of you a blessed New Year,

Don SullivanDistrict 4 President

DISTRICT 5SOUTHERN VIRGINIA

District 5’s meeting, sponsored by Greensboro auto auction featured Sharon Hodson, Dealer Representative for Greensboro Auto Auction, as guest speaker. In addition to giving highlights of what the auction offers to dealers, she also looked toward 2013 bringing good news for the dealers doing business with their auction stating that a large number fleet lease vehicles will become available during the first

quarter. Members asked pointed questions that resulted in a good group discussion.

VIADA’s Executive Director reviewed the results of the last Board of Director’s meeting. Members will soon receive a WellDyne RX prescription card, underwritten by pharmaceutical companies, that offers discounts on prescriptions as well as doctor, dental, and vision care by participating companies.

VIADA’s Assistant Executive Director, Stella Salyer, has reactivated VIADA’s Blog as well as established a Facebook and Linked In accounts. Members are encouraged to join each of these and watch the website for new updates as well.

Members were updated on the new interpretation of selling vehicles at retail auctions as it pertains to “consignments” and “inspections”. The alternatives are being studied by interested parties.

Attendees were encouraged to read their News In Briefs to stay updated on current events.

The new VIADA Auction Card, effective December 1, 2012 – November 30, 2013, was introduced. The card has a value up to $2,800 at participating auctions.

Looking forward to a new year of opportunities,

Brent Toone District 5 President

DISTRICT 6WESTERN VIRGINIA

District 6 celebrated the fiscal year end and Holiday Season with a special dinner sponsored by AutoZone and Gantt Insurance Agency and special guest Jeff Brown, Field Representative of the Motor Vehicle Dealer Board.

Members brought toys for the Toys for Tots program. VIADA announced the new social media programs developed to be another avenue of information for the members and another form of branding VIADA’s logo for the consuming public. Also for the dealers, a new auction card valued up to $2,800, and the 2013 Membership & Services

Savings & Loan sponsored the meeting.

Ted Bowman of Superior Motors in Bristol was presented a gold VIADA lapel pin in appreciation for signing 100 members. Everyone congratulated him for his dedication to VIADA through the years and for this tremendous accomplishment.

Citizens Savings & Loan are currently serving the Tennessee market; however, they are in the process of opening a new location in Kingsport in order to begin serving dealer in Southwest Virginia. Brent Carrier and Vernon Walker spoke of the success of their company by helping dealers find funding for customers to enable them to sell more vehicles. Brent and Vernon encouraged the dealers to send applications to them for review. Citizens Savings & Loan has been lending money for consumer loans since 1917 and welcome dealers aboard.

The district has agreed to get quotes to purchase hats with VIADA logo for our members in order to help make VIADA more visible to members and nonmembers.

VIADA’s Executive Director updated members of actions taken at the last Board of Directors meeting and led a discussion regarding curbstoning activity that was being investigated in the Bristol area because a member had reported to their MVDB representative and to VIADA. We later learned this location was shut down by regulatory authorities. Members can get results!

The new interpretation regarding dealers selling at retail auctions as it pertains to inspections and “consignment” of vehicles has created concern among the dealer body and was verbally expressed by attendees.

We had another great time of sharing and celebrating at our annual Christmas Party.

Wishing each of you a healthy and prosperous new year,

Garry WorleyDistrict 8 President


Proposed Buyers Guide Sticker Advises Consumers to Seek Vehicle Information History via FTC.gov and Directs Spanish Speakers to a Spanish Version of the Guide

As part of the Federal Trade Commission’s systematic review of all of the agency’s rules and guides to ensure that they are up-to-date, effective, and not overly burdensome, the FTC is seeking public comment on proposed changes to the Used Car Buyers Guide required by the agency’s Used Car Rule. The Commission is also issuing a final rule that makes technical corrections and revises the Spanish translation of the Buyers Guide. The Buyers Guide gives consumers critical information about who will pay for repairs if something goes wrong with the car they buy. The Commission last reviewed and amended the Used Car Rule in 1995.

The Used Car Rule, formally known as the Used Motor Vehicle Trade Regulation Rule, has been in effect since 1985 and requires car dealers to display a window sticker, known as a Buyers Guide, on the used cars they offer for sale. The Buyers Guide discloses whether the dealer offers a warranty and, if so, its terms and conditions, including the duration of the coverage, the percentage of total repair costs the dealer will pay, and which vehicle systems the warranty covers. In states that do not permit sales of used cars “as is,” or without warranties, dealers must display an alternative version of the Buyers Guide.

The FTC has sought public comment on the Used Car Rule, and based on a review of the comments, has concluded that the Rule continues to benefit consumers and will be retained. The Commission is now seeking comments on potential revisions to the Rule that would empower consumers without adding burdens to businesses, including by:• adding a statement to the Buyers

Guide encouraging consumers to seek vehicle history information and directing consumers to an FTC website for more information about vehicle histories;

• adding a statement in Spanish to the Buyers Guide directing Spanish-speaking consumers to ask for a copy in Spanish, if they desire;

• adding catalytic converters and airbags to the List of Systems on the back of the Buyers Guide; and

• placing boxes on the back of the Buyers Guide where dealers will have the option to indicate whether (1) the manufacturer’s warranty still applies; (2) the manufacturer’s used vehicle warranty, such as a manufacturer’s certified used car warranty, applies; or (3) some other used vehicle warranty applies.

The proposed Buyers Guide also makes some minor changes to improve readability.

The Commission also invites comments on topics such as the nature and prevalence of deception in Internet used car sales and information the Commission should make available on a new website.

To help protect consumers from potential post-purchase problems, both the proposed Buyers Guide and the current Buyers Guide recommend that consumers ask about an independent mechanic’s inspection before purchase, provide information about warranties, list a vehicle’s major systems and the major defects that may occur in them, and warn consumers that they should get all promises in writing because spoken promises are difficult to enforce. The Buyers Guide disclosures are incorporated by reference into the sales contract, and govern in the event of an inconsistency between the Buyers Guide and the contract.

In addition to the proposed changes to the Rule, the FTC is also announcing a new final Rule that makes minor corrections to the Spanish translation of the Buyers Guide. The Used Car Rule requires dealers to use Spanish-language versions of the Buyers Guide and to make related contract disclosures in Spanish when they conduct sales in Spanish. The revised Spanish-

language versions will take effect on February 11, 2013, but dealers may use up any remaining supplies of the current Buyers Guide. The revised Spanish translations can be found on the FTC’s website at business.ftc.gov.

For more information about the Used Car Rule, read Buying a Used Car. For used car dealers, the FTC offers A Dealer’s Guide to the Used Car Rule. “Fillable” versions of the Buyers Guide in English and Spanish are now available at FTC.gov.

The Commission vote approving the Final Agency Action Notice and Notice of Proposed Rulemaking was 5-0. They are available on the FTC’s website and as a link to this press release and will be published in the Federal Register soon. Comments can be filed electronically or submitted by mail. To comment by mail, write “Used Car Rule Regulatory Review, Project No. P087604” on comments and send them to Federal Trade Commission, Office of the Secretary, Room H-113 (Annex T), 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Comments must be received by February 11, 2013. All comments received will be posted at www.ftc.gov/os/publiccomments.shtm.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

Keeping you informed... John Brown

FTC Proposes Modifications to Used Car Rule

with your VIADA Discount (Promo Code V11.12)

PEACE OF MINDat a fraction of the cost...


The independent dealers political action committee was established in 1987 as “INDEPAC”. In 2010, to better identify the PAC contributions to Legislators, the name was changed to “Virginia Independent Auto Dealers”.

Virginia Independent Auto Dealers, a political action committee, is licensed in the Commonwealth of Virginia to solicit funds from independent dealers for contribution to candidates for statewide elections. These include the offices of Governor, Lt. Governor, Attorney General, and candidates for the General

Assembly. All contributions are voluntary. (Report includes contributions made September 1, 2012, through December 31, 2012)

BASIC ($45 to $99 annually)H. R. F. T. Finance S & S Auto Sales Limited Surfside Auto Company

BRONZE ($100 to $249 annually)Alars, Inc. Ellis Auto Sales, Inc

MasterCarWoodson Auto Sales

Hooper’s Quality Cars, Ltd.

PLATINUM ($1,000+ annually)

GOLD ($500 to $999 annually) Moss Motor Company TK Hughes Auto Sales

SILVER ($250 to $499 annually) Airline Auto Sales - U - Save Auto Center/Smoots McGuire Motors, Inc

VIRGINIA INDEPENDENT AUTO DEALERS PAC CONTRIBUTORS

with your VIADA Discount (Promo Code V11.12)

PEACE OF MINDat a fraction of the cost...

Attendee RegistRAtion FoRm(Exhibitors - please use exhibitor registration form)

Company Information_______________________________________________________________________Company Name

_______________________________________________________________________Address (Street)

_______________________________________________________________________City, State, Zip

_______________________________________________________________________Phone No. Fax No.

_______________________________________________________________________E-mail

Mail to: 4700 Thoroughgood SquareVirginia Beach, VA 23455

Phone: 800.394.1960 Fax: 757.460.1346

www.viada.org/convention.php

425 Water StreetPortsmouth, VA 23704

gRoup RAte:$130 plus, tax per room, per night

ReseRvAtions: (757) 673-3000

Group: VIADA / Cut Off For Group Rate: June 24, 2013

Office Use Onlyq Billed/Paymentq Confirmation Mailedq Badge

Registration Information: (12 & Under = Child)

events membeR nonmembeRFull Registration (entry to all events) $235 each/$105 per Child $325 eachBadge Name(s):____________________________________, ____________________________________Badge Name(s):____________________________________, ____________________________________Welcome Reception Only $75 each $85 eachBadge Name(s):____________________________________, ____________________________________Badge Name(s):____________________________________, ____________________________________Friday Only (entry to all events on Friday, July20th) $175 each $200 eachBadge Name(s):____________________________________, ____________________________________Badge Name(s):____________________________________, ____________________________________Grand Banquet (entry to banquet only - Saturday, July 21st) $90 each $110 eachBadge Name(s):____________________________________, ____________________________________Badge Name(s):____________________________________, ____________________________________Attendee(s): _____________________________ Average Score: _______________

PAYMENT INFORMATIONTOTAL $ AMOUNT ______________ Check Enclosed (Please make payable to VIADA) VISA:____ MasterCard:____ Discover:____Credit Card #: ______ - ______ - ______ - ______ Expires: ______ V-Code (3 digits on back): ______Credit Card Billing Street #: ______ Credit Card Billing Zip Code: ______

In the event of cancellation, a $25.00 administrative fee per person will be charged on cancellations after July 20th. All requests must be in writing

Your convention name badge will indicate your participation in different areas of Virginia Independent Automobile Dealers Association. To ensure accuracy of your accomplishments please “R” each category that applies to you and your spouse/guest.

Registrations received in State Office before April 30th, will be entered into a special drawing for ONE NIGHT FREE HOTEL

STAY!10% Discount for 3rd and each additional company

registration

First Time Attendee Yes No____ # Years a Member of VIADA

q q

Member Spouse/Guest q q VIADA Board of Directors q q VIADA Past President q q Honorary Life Director q q StateOfficer (Specify) q q VIADA Committee Chairperson q q District President q q Quality Dealer National/State/District (circle one)

Member Spouse/Guest q q Eagle Award q q PAC Contributor q q Member q q Guest q q Exhibitor q q Sponsor q q Speaker q q NIADAOfficer (Specify) q q NIADACertifiedMasterDealer

Member Spouse/Guest q q LadiesAuxiliaryOfficer (Specify) q q Ladies Auxiliary Member q q Ladies Auxiliary Board Member q q Quality Lady

poRtsmouth RenAissAnce hotel

July 18 - 21, 2013

Parking$5 per night Self Parking

$18 per night Valet Parking

VIADA 53rd Annual Convention & Expo


53rd Annual Convention & Expo

Portsmouth Renaissance HotelPortsmouth, VA

July 18 - 21, 2012

- Schedule of Events -Thursday, July 18• 2013-2014DistrictPresidentRetreat• WelcomeReception• HospitalitySuite

Friday, July 19• VIADABoardofDirectorsMeeting• AnnualBusinessMeeting/Awards• UpdatefromStateRegulatoryAgencies• LadiesAuxiliaryMeeting/CharityAuction

• Expo• DealerTraining:ComplianceIssues

Saturday, July 20• RecertificationClass• GolfTournament/OtherActivities• QualityDealerBanquet

Sunday, July 21• TimeofSharing• VIADAOfficeMeeting

New this year VIADA will be starting a “Form of the Month” program. Each month one of

our forms will be discounted and featured both on our website and blog. Keep an eye out

for these emails which will let you know which form is being promoted in a given month.

Form of the Month!


For decades, a relatively small number of cars and light trucks have dominated U.S. sales, whether American, Japanese or European manufacturers built them. This trend goes all the way back to the Ford Model T.

The dominance of the market by a few vehicles continued this year, and 24/7 Wall St. forecasts it will continue in 2013.

Twelve million cars and light trucks were sold in the U.S. through the first 10 months of 2012. According to sales data provided by Edmunds.com, about 3.7 million of these were from sales of just 16 of the more than 250 models available.

The models have more than one characteristic in common. They tend to be inexpensive sedans that get high gas mileage. Every

vehicle on the list has a base price of under $25,000. Fourteen have base models that have four-cylinder engines, which tend to get better mileage than engines with six and eight cylinders.

And of the 16 top-selling models, Japanese manufacturers will continue to dominate the list next year. Of the seven best-selling cars for 2013, six are Japanese. The exception is Ford’s F-150 pickup, which has been a staple model line of the No. 2 U.S. car company since the 1940s.

Japanese cars usually do well on consumer quality surveys, and these manufacturers, which include Toyota, Honda and Nissan, have been in the high-mileage end of the market since they became popular in the 1980s.

Using the figures from Edmunds.com, 24/7 Wall St. has forecast the “Sweet 16” cars and light trucks that will sell best in 2013, including projected full-year sales1. Toyota Camry, 2013 sales

forecast -- 483,9772. Ford F-150 -- 455,3053. Honda Accord -- 387,7794. Nissan Altima -- 358,1875. Honda Civic -- 357,6216. Toyota Corolla -- 333,9337. Honda CR-V -- 327,9558. Ford Fusion -- 290,4249. Chevrolet Silverado 1500 --

282,62710. Ford Escape -- 273,84611. Chevrolet Malibu -- 251,40312. Chevrolet Cruze -- 247,87013. Chevrolet Equinox -- 247,46814. Ford Focus -- 243,96515. Hyundai Sonata -- 235,21816. Hyundai Elantra -- 215,721

(Source: USA Today, 12/05/12)

Which Vehicles Will Be the Best-Sellers of 2013?


Why Change Your Password?

In late 2010 hackers broke into the Gawker user database and downloaded its contents, including all the usernames and passwords. Gawker operates a large number of on-line news services, including several I read regularly. I figured, well, I guess the hackers will be able to login to those sites and leave comments on news stories – no big deal.

At the time I pretty much had a single password for anything I deemed “low security,” which was pretty much anything that wasn’t banking oriented. My banking passwords were much stronger and each one was unique. But for emails, Facebook, Twitter, etc. I used that single password.

Then I started getting emails from other businesses that had some involvement with Gawker indicating that because of the Gawker disclosure my account(s) on those businesses might be at risk.

Why?

Like me, most people tend to use the same, easy to remember password for most of their accounts. So having the username and password for Gawker gave hackers a much higher chance they could use those same credentials to log into a more interesting account, like an on-line store that keeps your credit card information on file (like Amazon). From there they could add a new shipping address and go to town. Unless your credit card fraud department gets suspicious, you might not find out for 30 days. And it is a major hassle to dispute fraudulent charges.

Even worse, if you use the same credentials to log into your email account, the hackers can go to your bank, or other high value site, and

do a lots password request. Since almost all those go to your primary email account, if they can log into that, they can pretend to be you and access almost any website or online account you have.

Even worse, most people’s default passwords are really lame. Here’s a list of the top 20 passwords being used:

Those are the passwords hackers always try, just in case. Please tell me you don’t use any of those passwords.

Security people will tell you the best passwords are truly random, are as long as possible, and have a good mix of UPPER CASE, lowercase, numbers and even punctuation. And they are virtually impossible for most people to remember.

There are some tricks to make a simple word more secure, like turning “i” into 1, “a” into 4, “e” into 3, “s” into 5. That makes a word like “solitaire” into something like “50l1t41r3”, which is both memorable and hard to guess.

Being a bear with little brain, I decided it was time to go back to a password generator/remember program. I had used a program called KeePass for that purpose many years before. It worked; I just got away from it.

I’m currently using LastPass (https://lastpass.com/). I started using it in my Chrome browser to make it easier to keep track of the many websites I have accounts on. I have since moved to the Windows program version, just to allow my

desktop computer to keep a local copy of my passwords, just in case LastPass ever gets acquired or goes out of business. That is becoming more important as I become ever more dependent on it remembering bunches and bunches of passwords.

I also like that it can automatically fill out many web forms with my basic information. (Except when the web developer was too lazy to properly name the input fields. Many of those sites I decided aren’t as interesting as I originally thought.)

And the price is right. I have been using the free version and don’t feel constrained. I might have to upgrade to the pad version so I can get support for my iPad and Android phone, but I have been holding off on that.

Also you should periodically change your passwords, especially for your high value accounts like banking, email, etc. I like the fact that when I just logged onto my bank’s online system it told me it had been six months since I changed my password and required me to change it.

Bottom line: don’t use the same password for all your accounts. Make your passwords more secure, using a trick I gave you or using a random password stored in LastPass or similar program, and consider your email accounts as high value as any banking account you might have.

Now go change your passwords!!

BY GREG MARSHALLCPMR, CSP, CMC iS a SPeakeR, authoR, and ConSultant. he Can be ReaChed by eMail at [email protected], oR viSit hiS webSite at httP://www.vendoR-teCh.CoM.

• 123456• iloveyou • 12345678• babygirl• Michael• 12345• princess

• abc123• monkey• Ashley• 123456789• rockyou• Nicole

• Jessica• 654321• password• 123456• Daniel• Lovely• qwerty


Upcoming VIADA EventsApril 20132 District 6 Meeting11 District 8 Meeting16 District 4 Meeting20 VIADA Board Meeting22 District 3 Meeting30 District 1 Meeting

May 201313 MVDB Meeting13 District 7 Meeting21 District 5 Meeting28 District 2 Meeting27 Memorial Day-State Office Closed

June 20134 District 6 Meeting13 District 8 Meeting17 Membership Drive18 District 4 Meeting23-27 NIADA Convention-Las Vegas, NV25 District 1 Meeting

January 201322 District 2 Meeting

February 20135 District 6 Meeting11 District 7 Meeting14 District 8 Meeting18 District 3 Meeting19 District 4 Meeting19 District 5 Meeting27 Magazine Deadline26 District 1 Meeting March 201311 MVDB Meeting26 District 2 Meeting29 Good Friday – State Office Closed

July 20134 Independence Day-State Office Closed8 MVDB Meeting10 District 3 Meeting18-21 53rd VIADA Convention & Expo-Renaissance Portsmouth30 District 2 Meeting

August 201318 District 3 Meeting/Picnic

**DATES ARE SUBJECT TO CHANGE**

VIADA HonorSelect Partners

PLATINUMDealerTrack

Manheim Auto Auctions of Virginia

GOLDGWC Warranty

SILVERComSoft

1st Choice MBCManheim Auto Auctions of North Carolina

Tidewater Auto Auction

BRONZEESG Insurance & Financial Services

JTZ Enterprise


In MemoriamThe father of Maynard Haymaker

of Maynard Haymaker Transport in Moneta

Thinking of YouLarry & Helen Crigger of Candu Auto

Sales in Rural RetreatCarla Anne Keene of Don’s Auto

Exchange in Cedar BluffMark Halseth of ADESA East Tennessee in Fall Branch, TN

Steve Gibson of Discount Motors in Roanoke

Congratulations!

Bentley Taylor Toone, 8 lbs 2 oz, 19” was born October 21, 2012 to Brent and Jennifer Toone of Lakeview Motors in Clarksville

&Ethan Landry May, 7 lbs 11 oz, 19 1/4” was born August 30, 2012. The proud grandparents are Keith and Linda Knupp of Keith’s Auto

Sales in Penn Laird

Welcome to Our World!Charles and Jean Nicholls of Nicholls Auction Co. in

Spotsylvania County recently celebrated their 50th wedding anniversary!

The CarMax Foundation has recognized nine CarMax Inc. associates for the third annual CarMax Cars Community Service

Award.Associates across the country were nominated for the CarMax Care Community Service Award for their personal volunteer efforts and leadership in community giving. Winners of the award were honored at the company’s largest recognition event of the year. Each selected a nonprofit organization to receive a

$5,000 grant on their behalf from the CarMax Foundation.

• Lauren Packett, auction services marketing coordinator, Richmond, VA, has dedicated her time to a diverse group of organizations like Special Olympics, American Heart Association, American Cancer Society, Habitat for Humanity, March of Dimes and Boys & Girls Clubs. Her passion for animals leads her to volunteer with Richmond SPCA and she chose the organization to receive the $5,000

grant.

• Brittany Shytles, sales consultant, Newport News, Va., has hosted CarMax volunteers numerous times over the last several years at the FoodBank of the Virginia Peninsula for programs like Backpacks for Kids and Kids’ Cafe. The FoodBank will receive the $5,000 grant. Shytles also coordinated a team for the March of Dimes March for

Babies charity walk.

CarLotz, a Richmond based used-car consignment business and a member of the VIADA association, has opened its third location on December 3. The new store is located on Military Highway in Chesapeake, VA. CarLotz, launched in 2011, enables sellers to achieve private-market used-vehicle values without the traditional hassels of the for-sale-by-owner market.

Congratulations to your new success.


Just a reminder – When a used motor vehicle sale is conducted in Spanish, the Used Car Rule requires dealers to use Spanish-language versions of the Buyers Guide and to make related contract disclosures in Spanish.

The Used Car Rule, formally known as the Used Motor Vehicle Trade Regulation Rule, has been in effect since 1985 and requires car dealers to display a window sticker, known as a Buyers Guide, on the used cars they offer for sale. The Buyers Guide discloses whether the dealer offers a warranty and, if so, its terms and conditions, including the duration of the coverage, the percentage of total repair costs the dealer will pay, and which vehicle systems the warranty covers. The Federal Trade Commission (FTC) is seeking public comment on proposed changes to the Used Car Rule. Their proposal includes minor changes to improve readability, adding catalytic converters and airbags to the list of systems on the back of the form, as well as three material changes discussed below.

Currently, the FTC authorizes both English and Spanish-language versions of the Buyers Guide. When a used motor vehicle sale is conducted in Spanish, the Used Car Rule requires dealers to use Spanish-language versions of the Buyers Guide and to make related contract disclosures in Spanish. The FTC staff recommends that dealers who conduct substantial numbers of sales in Spanish should display both English and Spanish Buyers Guide to ensure that Spanish-speaking customers receive the required Spanish disclosures. In lieu of creating a bilingual Guide, as some commenters have suggested over the years, the FTC is proposing

adding a statement in Spanish to the English Buyers Guide directing Spanish-speaking consumers to ask for a copy in Spanish, if they desire.

The Buyers Guide format in use today does not provide specific mention of third-party warranties, such as those offered by the manufacturer. To disclose the existence of such warranties, the used dealer currently enters appropriate language in the “Systems Covered / Duration” section on the front of the form. The FTC is proposing adding check-boxes and preprinted language to the back of the form specifically for those warranty disclosures. It’s worth noting that the FTC is not proposing making mandatory the optional disclosure of unexpired manufacturers’ warranties.

As has been widely reported, California recently enacted legislation requiring used dealers to post vehicle history reports on vehicles offered for sale. Specifically, the California dealers must provide a National Motor Vehicle Title Information System (NMVTIS) report. Along that same line, the FTC is proposing adding a statement to the Buyers Guide encouraging customers to seek vehicle history information and directing consumers to an FTC website for more information about vehicle histories. As proposed, dealers would not be required to obtain vehicle histories or to display specific vehicle history information. Thanks to comments offered in earlier years by industry groups, including NIADA, the FTC has decided against requiring dealers to include title branding and certain vehicle history data directly on the Buyers Guide. In

earlier comments, the NIADA and others raised concerns about dealers’ potential liability for reporting information that they do not control. Vehicle history information is available from multiple sources, and that information could be inaccurate, untimely, or incomplete.

Dealers would have faced potential legal risks for reporting third-party information that turned out to be deficient.

Besides declining to add title branding and certain vehicle history information to the Buyers Guide, the FTC has also declined a number of other suggestions. Again, thanks to comments made over the years by industry groups such as the NIADA and the NADA, the FTC is NOT proposing Buyers Guide disclosure requirements regarding prior vehicle damage, prior vehicle use, manufacturer buyback or lemon law status, or known defects. In addition, the FTC declined a suggestion to propose a dealer inspection requirement.

The FTC’s proposed Rule will be open for comment until February 11, 2013. As has been the practice during previous Used Car Rule changes, NIADA representatives have met with FTC personnel and will be submitting written comments on the current proposal.

In addition to these proposed changes to the Rule, the FTC also recently announced a new final Rule that makes minor corrections to the Spanish translation of the Buyers Guide. The revised Spanish- language versions will take effect on February 11, 2013, but dealers may use up any remaining supplies of the current Buyers Guide..

BY ADR STAFF

Proposed Changes to the Buyer’s Guide


membership is a bargain at $295 just for the protection against negative legislation. Thank you for your past support as a member and we look forward to serving you in the future.

We ask that you as an independent dealer spread the word to nonmembers and please contribute to our Political Action Fund. Thank you for being a member of VIADA.

Jimmy Davis, Past President

legislation. Our political action fund was created to receive donations to further the communication with our legislators. Contributions are presented to our legislators for election and re-election expenses and legitimate ongoing expenses.

VIADA is a well respected name at the general assembly and is considered the expert, go to, for used automotive industry information. VIADA

In 1960 Virginia Automobile dealers were faced with unfair legislation being proposed at the Virginia General Assembly. A small group of independent dealers realized they needed to be organized. They did just that and VIADA was born. They realized that individually it was difficult to be heard but organized we cannot be ignored. So since 1960, VIADA has been monitoring the law making process to combat destructive

Past Presidents ColumnPast Presidents ColumnJimmy Davis

Davis Auto Sales II Richmond, VA

Proposed Changes to the Buyer’s Guide


You run a great business. You find the right cars for your customers. Your customers are happy and you make a good living. Sure it’s hard work and long hours but you love what you do and you are a true entrepreneur – the backbone of the American economy.

Your bookkeeper tells you that you are making money and profitable. But do you ask yourself “If I am profitable why am I always stretching to make payroll or buy that next auction unit”?

The answer is cashflow. And cashflow is king.

While your bookkeeper can show you your financial statements, what you operate your business on every day is cashflow. Cashflow is the lifeblood of your business and cashflow is the fuel for your growth. Simply put, cashflow is the movement of money in and out of your company.

You’ve heard the term, “I was so successful selling cars that I went out of business”. Why does that happen? It happens because every time you sell a car you are out of pocket the money until you are paid by your customer’s lender….which can take weeks! The more cars you sell, the more “cashflow” you need.

Think of it this way. Let’s assume your average cash in deal is $7,000 and you sell 8 vehicles per week. Each week your cashflow needs are $56,000 ($7,000 x 8) just for inventory. If your customer’s lenders don’t pay you for two weeks after the sale you need $112,000 in cash ($7,000 x 8 x 2) in your business just to cover your cars…..not to mention payroll and other expenses.

If you successfully grow your sales to 10 per week you will need $140,000 in cash ($7,000 x 10 x 2). That is another $28,000 for selling

two more cars per week. This is why growing your business takes money!

Floorplanning is the answer to this real issue and will provide you the cashflow to grow your business and not have to stretch to make payroll or stretch to buy that next auction unit. Floorplanning provides you the ability to buy that next auction unit and keep your lot full….full of cars and customers.

Keep your money – your cashflow – working for you in your business and not sitting idly on your lot. Take your business to the next level by giving your customers more vehicle choices to drive more sales.

Floorplanning your inventory can improve your cashflow and help you grow your sales.

BY MARTY MCFARLANDExecutive Vice President, Dealer Services Corporation

Cashflow is King!

Annual Safeguards & Red Flag Programs Review

If the question is “What is that?” then the answer to when did you last review your Safeguards and Red Flag Programs is most likely ”Never” or ”Do I even have a program?”

The FTC Safeguards Rule went into effect in 2003. Under the Rule, a dealer must have in place and must regularly monitor a program to protect nonpublic personal information of customers gathered in credit, lease, and insurance transactions.

Over the years, concerns of customers about protection of their information have not diminished. If anything, concerns are even greater today because of the substantial increase in electronic attacks to steal information.

When the program began, you were asked to assess the security of your customer’s files and were given suggestions of what needed to be done to strengthen the

security measures. You appointed a program coordinator to keep the program updated whose responsibility included making annual notations of any changes made to stay compliant or signed off and dated that the review had been completed. The program required training of staff and, as new software was added for data management, that all the proper steps were taken to protect the customer’s information such as being password protected, leaving the customer’s file open on the computer screen while away from the computer, etc.

When the FTC issued the Red Flags Rule it included a specific requirement that the coordinator of that program must provide a report to the Board of Directors or a senior level manager/owner of the dealership at least once per year. This report must address the effectiveness of the program,

service provider arrangements, incidents involving identity theft, and recommendations for changes to the program.

Under the Dodd Frank financial reform legislation, the Federal Trade Commission was empowered and funded to increase its oversight and review of dealer practices. If the FTC comes to your dealership and asks to review not just your Safeguards program but your history of regular reviews of the plan’s efficacy, how will your dealership fare?

This program is being taught in the two-day Dealer-Operator Class and is also a part VIADA’s Recertification Curriculum. If you do not have a plan in place, VIADA can provide a guide to help you implement this program. It is imperative that the guide be read and altered to mirror your dealership practices in these areas. Just call 800.394.1960.


TIMES ARE SHIFTING...

who’s readyfor what’s next?


VIADA RenewAls - septembeR 1st - DecembeR 31st, 2012

40-50 Years

20-29 Years

10-16 Years

Thank you for 52 years of continued support,Thomas Lawrence of Lawrence Motor Inc in Virginia Beach!

30-39 Years

17-19 Years

5-9 Years

Automobile Exchange ● Stuart E Peck ● Roanoke ● 50 TAS Inc ● Thomas Parsons ● Mt. Crawford ● 44 Holiday Motors ● David Henry ● Portsmouth ● 40 EF Motorsports ● C Edward Falk, Jr ● Virginia Beach ● 40 Bob Whitaker Motors ● Bobby Whitaker ● Glen Allen ● 40 McGuire Motors Inc ● William D Parrish Jr ● Richmond ● 40

Little Joe's Autos Isuzu Mitsubishi Suzuki ● Joseph A Falk ● Chesapeake ● 37 Steve's Auto Sales Inc ● L Steve Gossett ● Norfolk ● 37 T K Hughes Auto Sales Inc ● T K Hughes ● Richmond ● 37 Pembroke Auto Sales ● Thomas V Joynt ● Virginia Beach ● 36 Central Virginia Auto Sales Inc ● Ronald E Drudge ● Sandston ● 34 Calvary Cars & Service Inc ● Tony A Cerza ● Norfolk ● 32 Atlantic Auto & Truck Sales ● William Summs ● Virginia Beach ● 30 Duval Auto Parts Inc ● Kenneth Steven Abbott ● Forest ● 30 Frank's Place Inc ● Frank T Hodnett ● Long Island ● 30 Whitesell Service Inc ● Gary C Whitesell ● Waynesboro ● 30

Manheim North Carolina ● Ellie Johnson ● Kenly ● 28 Moss Motor Company Inc ● Sandra Moss ● Dillwyn ● 28 Hiatt's Used Auto Parts ● Steven Hiatt ● Danville ● 27 Country Auto Sales Inc ● J B McReynolds ● Bristol ● 27 Jack's Auto Sales Inc ● Lester V Whitacre ● Stephens City ● 26 Auto World of Chester ● Lyndon V Harrison ● Chester ● 25 Cline Auto Discount ● Donnie Orebaugh ● Harrisonburg ● 25 S & S Sales ● Gordon W Shelton ● Fredericksburg ● 25 Swope Enterprises Inc ● Nelson Swope ● Timberville ● 24 Alars Inc ● Alvin F Woods ● Vinton ● 24 A & E Automotive Inc ● David R Emswiler ● Harrisonburg ● 23 Hockaday's Used Cars Inc ● Douglas Hockaday ● Newport News ● 23 H & H Used Cars Inc ● Harold L Hoeltzel ● Purcellville ● 23 Wagner's Used Cars ● David R Wagner ● Palmyra ● 23 S & S Auto Sales Ltd T/A Cars Guitars & More ● Margie M Stanley ● Louisa ● 23 Lynn Douglas Motor Company Inc ● Lynn Ross Douglas ● Manakin Sabot ● 22 Shenandoah Auto Parts Inc ● Anthony B Walrond ● Roanoke ● 22 Brambleton Imports Inc ● Robert W Woodward ● Roanoke ● 22 Divers Motor Co ● Wilford B Divers Jr ● Boones Mill ● 22 Coastal Credit LLC ● Todd Brister ● Virginia Beach ● 21 C & G Imports Inc ● Gavin D Marks ● Arlington ● 21 Auto City ● Lewis Timothy Lester ● Portsmouth ● 21 Jefferson Motors Inc ● Dwight Jefferson ● Gretna ● 21 Auto Link Inc ● Joel W Lyles ● Hamilton ● 21 The Salvation Army ● Evelyn Sears ● Alexandria ● 21 Don's Auto Exchange Inc ● Donald Keene Jr ● Cedar Bluff ● 20 Ellis Auto Sales Inc ● Gina M Altman ● Highland Springs ● 20 Madison Motors ● Paul David Foster ● Madison ● 20 Today's Auto ● Lee E Smith ● Shawsville ● 20 Free Bridge Auto Sales ● Charles F M Fadeley II ● Charlottesville ● 20

E & M Auto Paint & Supply ● Terry L Whitmore ● Harrisonburg ● 19 Bill's Auto Sales ● Tim McGuire ● Roanoke ● 19 Kenny's Auto Mart ● Kenny R Snyder ● Harrisonburg ● 18 Cosner Brothers Auto Parts Inc ● Dillard W Cosner ● Troy ● 18 East Coast Auto Source Inc ● George F Aznavorian ● Moneta ● 18 Old Dominion Auto Salvage Inc ● Danny C Cunningham ● Roanoke ● 18 Carmax Superstore ● Katherine Kelley ● Richmond ● 18 Action Auto Parts ● Tracy S Lewis ● Hopewell ● 17 The Car Ministry ● Roger Penn ● Falls Church ● 17 Snyder's Auto Sales Inc ● David Lee Snyder ● Harrisonburg ● 17 Linton Motorsport Inc ● Scott G Linton ● Manassas Park ● 17 Byerly's Auto Mart ● Michael W Byerly ● Powhatan ● 17

Rod Shop Inc ● Donna T Smith ● Salem ● 16 C L Hyman Auto Wholesale ● Christian Lee Hyman ● Ashland ● 16 Kiser Auto Sales Inc ● Orvin H Kiser, Jr ● Stuarts Draft ● 16 Auto Plus LLC ● Saeid Pooresmaeil ● Arlington ● 16 Horn's Auto Sales ● Oliver Henson Horn Jr ● Suffolk ● 15 Auto Credit Line Inc ● Karen Simpson ● Richmond ● 15 Watson Auto Inc ● Randy A Watson ● Galax ● 15 Woodson Auto Sales ● Thomas M Woodson ● Goochland ● 15 Callao Car Center ● John W Newsome ● Callao ● 15 A to Z Auto Sales & Sports Center ● Charles H Kennedy Jr ● Sandston ● 15 Auto Villa ● Audrey T Moss ● Danville ● 14 Vans of Great Bridge ● Todd M Carey ● Chesapeake ● 14 VA Beach Truck Center ● Weldon C Whitehurst ● Virginia Beach ● 14 Handpicked Western Trucks LLC ● Mark Grehlinger ● Leon ● 14 Henrys Auto Sales ● Larry Welch ● Roanoke ● 13 The Salvation Army ● Jocelyn Renee Owens ● Virginia Beach ● 13 Hayes Auto Sales ● Keith E Rodgers ● Hayes ● 13 Union First Market Bank ● Charles Muncy ● Richmond ● 13 Kenco ● Kenny Reynolds ● Harrisonburg ● 12 Airline Auto Sales Inc T/A All-in-One Auto ● Larry T Bailey Sr ● Portsmouth ● 12 Spencer's Special Interest Cars ● Douglas E Spencer ● Rocky Mount ● 12 Drive Away Cars ● Mark A Cole ● Christiansburg ● 12 Fredericksburg Kia ● Richard C Kreisner ● Fredericksburg ● 12 DealerTrack ● Mike Audette ● Groton ● 12 Pay Here Used Cars ● Eddie Bowen ● Hampton ● 12 G W Enterprises ● Mark Myers ● Port Republic ● 11 K's Auto Center ● Howard C Kershaw ● Hampton ● 11 Larry's Import Center Inc ● Larry R Woodhouse ● Virginia Beach ● 10 County Auto Brokers Inc ● Evan O'Brien ● Yorktown ● 10 Auto Center Inc ● Mark Smoot ● Front Royal ● 10 Automotive Concepts LLC ● Randy Martin ● Rustburg ● 10 Auto Services Company ● Brad Hasselwander ● Mountain Home ● 10 Burtons Automotive Service Inc ● Robert Burton ● Hartwood ● 10 HRFT Finance ● J Tom Mathews ● Portsmouth ● 10 Ike's Auto Sales ● Jeffrey S Ballard ● Pulaski ● 10

Robert Young's Auto & Truck Inc ● Robert R Young ● Roanoke ● 9 Auto Land Auto Sales Inc ● Hamid R Abdolahzadeh ● Virginia Beach ● 9 Foreign Affairs Sales Inc ● Jon Robert Hammersberg ● Staunton ● 9 Diamond Motorcars ● Robert A Kope ● Virginia Beach ● 9 Ben Edwards Auto ● Ben Edwards ● Waynesboro ● 9 Ultimate Automotive Group ● Scott Mason ● Winchester ● 8 Cardinal Auto Sales LLC ● James W Blackburn Sr ● Chester ● 8 Custom Seat Cover Shop Inc ● Michael L Whitlock ● Salem ● 7 Middlesex Metals Inc ● Judith G Aldridge ● Urbanna ● 7 Cars 'R' Us LLC ● Cleatis Mullins ● Pound ● 7 Pittman Auto Group LLC ● Jerry McCorkle ● Luray ● 7 Airport Auto Exchange LLC ● Bernard Marshall ● Charlottesville ● 6 Auto Dealz LLC ● Paul Dovel ● Shenandoah ● 6 Brantley Motors LLC ● Angela Brantley ● Chesapeake ● 6 Keith's Auto Sales W ● Seth Muterspaugh ● Harrisonburg ● 6 Hampton Insurance Agency LLC ● Charles Ellis ● Hampton ● 6 Burton Creek Garage Inc ● William L Rowse II ● Lynchburg ● 6 F & A Auto Sales Inc ● Frank F Coates III ● Colonial Beach ● 5 AmCar Rental LLC ● Bonnie B Limbrick ● Madison Heights ● 5 Tim Byrd & Associates Inc ● Tim Byrd ● Gloucester ● 5 Booth Auto Traders LLC ● Kevin Booth ● Sandston ● 5 Ace Motor Acceptance Corp ● Russ Algood ● Matthews ● 5


VIADA new membeRs - septembeR 1st - DecembeR 31st, 2012

VIADA RenewAls - septembeR 1st - DecembeR 31st, 2012

4-2 Years 1 YearPrestige Auto Brokers Inc ● Ben Mahgerefteh ● Portsmouth ● 4 Hi-End Auto LLC ● Robert C Hubbard ● Appomattox ● 4 Maximum Auto Outlet ● Mac Khan ● Manassas Park ● 4 Noland Company Drilling Equipment ● Virgil Bruinekool ● Roanoke ● 4 Leesburg Auto Import LLC ● Hidar Awad ● Leesburg ● 4 ChesBay Auto Sales LLC ● Robert Upton ● Portsmouth ● 4 Gene Gorman Auto Sales ● Gene Gorman ● Virginia Beach ● 4 Cherrydale Motors ● Wade Aylor ● Arlington ● 4 Tillage Automotive ● Tim Tillage ● Gloucester Point ● 3 Quality Auto Sales ● Joe C Lane ● Cedar Bluff ● 3 Hillside Motors Inc ● Mark McKim ● Culpeper ● 3 E & M Auto Sales ● Eric Wade Jenkins ● Locust Grove ● 3 Bell Properties Ltd ● Renata Reed ● Virginia Beach ● 3 Stamper Auto Sales ● John Stamper ● Lebanon ● 3 Cville Classic Cars Inc ● Bill Hall ● Charlottesville ● 3 Brian Jones Motorsports Inc ● Brian T Jones ● Danville ● 3 Motorcade Magazine ● Joseph Lohkamp ● Roanoke ● 3 Radford Universal Car Care LLC ● David Childers ● Radford ● 3 Auto & Truck Marketplace ● Jennifer Schratwieser ● Norfolk ● 3 Auto Scandia Inc ● Mark J Bredesen ● Herndon ● 3 Southside Harley Davidson ● Mary Hughes ● Virginia Beach ● 2 Elite Auto Wholesale ● Roberto Barahona ● Midlothian ● 2 Atlantic Financial Services ● Burnie Staples ● Chesapeake ● 2 Gravely Auto Sales & Recycling Inc ● Donald G Gravely ● Axton ● 2 Plaza Motors of VA LLC ● Gregory A Adkins ● Richmond ● 2 Chase Custom Finance ● Glenn Hendricks ● Richmond ● 2 Liberty Auto Inc ● Michael Bailey ● Roanoke ● 2 Best Price Auto Sales Inc ● Daniel Poston ● Virginia Beach ● 2 Steele's Auto Sales ● Robert Steven Steele ● Lynchburg ● 2 Bluegrass Auto Sales ● Brad White ● Vinton ● 2 WC Motor Cars Ltd ● Wayne L Childress ● Port Royal ● 2 Motorcars Washington LLC ● Jarrod Elwinger ● Chantilly ● 2 Greenville Auto Auction Inc ● Kevin Wallace ● Greenville ● 2 ADESA Knoxville ● Greg Koepfer ● Lenoir City ● 2

Dealer Services Corporation ● Patty Turner ● Carmel ● 1 Alexandria Motors ● Sam Azizi ● Alexandria ● 1 Mechanicsville Auto Sales LLC ● Michael A Carter ● Mechanicsville ● 1 Southwest Motors Inc ● Larry Trent ● Castlewood ● 1 Henry Williams Automotive Inc ● Rick Williams ● Roanoke ● 1 C & P Auto Sales Inc ● Steve Konwerski ● Richmond ● 1 R G Motors Inc ● Ronnie A Greer ● Marion ● 1 State Line Auto Sales ● Mark S Frostrom ● New Church ● 1 Eagle Motor Company ● John R Jones ● Roanoke ● 1 FC Auto ● Kian Nosrat ● Falls Church ● 1 Salem Select Auto Center ● Mark Wickham ● Salem ● 1 Car America ● Varaporn T Martin ● Richmond ● 1 C. R. Garland Auto Sales ● Clyde R Garland Sr ● Fredericksburg ● 1 First Sentinel Bank ● Bob Buchanan ● Richlands ● 1 Wayne's Used Cars ● Ricky Carter ● Blairs ● 1 Maaco ● Robert N Belcher ● Roanoke ● 1 The Gantt Insurance Agency Inc ● Don Gantt ● Farmville ● 1 JW Motors ● Johnny Arnez ● Manassas ● 1 Larry's Car Land Inc ● Lawrence B Green ● Blackstone ● 1 R & M Motors Inc ● Richard L Boardwine II ● Glade Spring ● 1 Edward Jones Investments ● George Lester ● Vinton ● 1 Courthouse Motors LLC ● Lamont A Perry ● Fredericksburg ● 1 L & E Auto Sales ● Lanny S Waddell ● Wytheville ● 1 Mobility Supercenter ● Lee Crenshaw ● Norfolk ● 1 MasterCar ● James Sadoski ● Chesapeake ● 1 Martinsville Collision Center ● Richard W Lata ● Martinsville ● 1 Doolen's Equipment & Truck Sales LLC ● Albert D Doolen ● Ashland ● 1 Expo Auto Brokers LLC ● Michael Howard Martin ● Bowie ● 1 Surfside Auto Co ● David Glaus ● Norfolk ● 1 H & H Auto Sales ● William Hicks Jr ● Galax ● 1 GoldStar GPS Guided by Spireon ● Cesar Yepez ● Irvine ● 1 BNH Auto ● James McManus ● Ashland ● 1 Carson's Cars ● Ben Carson ● Roanoke ● 1

Bob's Car Corner ♦ Jeff Akerson ♦ Roanoke ♦ Sonny Arrington London Auto Services Ltd ♦ Nick Vadala ♦ Falls Church ♦ P. Iaricci/D. Sullivan Star Auto Sales ♦ Ziad Aboulhosn ♦ Richmond ♦ T. Allman/D. Gripshover Jack Sykes Inc ♦ Jack Sykes ♦ Richlands ♦ Donnie Keene Metro Auto Sales Inc ♦ Donald L Jabbar ♦ Norfolk ♦ V. London/W. Whitehurst LaCrosse Service Center ♦ David O Williams ♦ LaCrosse ♦ L. Keenan/D. Gripshover Charlotte International Inc ♦ Kashif Afridi ♦ Fredericksburg ♦ T. Allman/D. Sullivan Chase Auto Group Inc ♦ Anthony Hassan ♦ Dumfries ♦ T. Allman/P. Gustafson B & D Auto Sales ♦ David W Hall ♦ Altavista ♦ K. Lucia/B. Steele Bell's Auto Sales ♦ Timothy Bell ♦ Lynchburg ♦ V. London/B. Steele Marlin Motors Inc ♦ Jeff Fox ♦ Virginia Beach ♦ S. Salyer/W. Whitehurst VA Interstate Auto Brokers Ltd ♦ Gerald E Williams ♦ Roanoke ♦ Sonny Arrington Hilliard Automotive ♦ Omar Aboulhosn ♦ Richmond ♦ L. Keenan/D. Gripshover Action Automotive Pre-Owned Cars ♦ Muhammad Faroaq ♦ Alexandria ♦ T. Allman/D. Sullivan Royal Auto Sales ♦ Necip Gulben ♦ Virginia Beach ♦ P. Iaricci/W. Whitehurst A Plus Motors LLC ♦ Nasser Abden ♦ Leesburg ♦ V. London/D. Sullivan Auto Max ♦ Abdelhadi Hilali ♦ Norfolk ♦ Tim Byrd One Stop Automotive ♦ Bryan J Thornhill ♦ Roanoke ♦ S.Arrington/B.Riddleberger Roving Auto Inc ♦ Barry Schimmel ♦ Virginia Beach ♦ Mike Moseler Cavalier Motor Works LLC ♦ Robert Buck Jr MD ♦ Pound ♦ Cleatis Mullins

Campbell Equipment Inc ♦ James R Campbell ♦ Palmyra ♦ V. London/J. Millner Tinker Mountain Motors Inc ♦ David Carroll ♦ Roanoke ♦ Harvey Mays M & M Auto Brokers ♦ Mark Malek ♦ Chantilly ♦ T. Allman/D. Sullivan Edmunds.com ♦ Eric Schnurr ♦ Hamilton ♦ Robert Fisher Gilmore Auto Repair & Sales ♦ Diana Gilmore ♦ Portsmouth ♦ P. Iaricci/W. Whitehurst Caribbean Auto Sales ♦ Rafael A Suarez ♦ Chesapeake ♦ J. Hubbard/W. Whitehurst Rosser Motorsports LLC ♦ Lee Harlow ♦ Waynesboro ♦ P. Iaricci/J. Millner A1 Custom Motors ♦ Keister L Richardson III ♦ Danville ♦ P. Iaricci/B. Toone Car Start ♦ Kleanthis N Andreau ♦ Virginia Beach ♦ P. Iaricci/W. Whitehurst Express Motors ♦ Joe Habr ♦ Virginia Beach ♦ P. Iaricci/W. Whitehurst Colonial Equipment Company ♦ Donald Combs ♦ Monrovia ♦ P. Iaricci/D. Sullivan Maynard Haymaker Transport ♦ Maynard H Haymaker ♦ Moneta ♦ Alvin Woods One Stop Auto Lot LLC ♦ John Burk Jr ♦ Roanoke ♦ Sonny Arrington Central Virginia Auto Auction ♦ Lorraine Albrecht ♦ Charlottesville ♦ K. Lucia/J. Millner Colgan Powersports LLC ♦ Sean Colgan ♦ Manassas ♦ T. Allman/D. Sullivan ABC Lancaster Auto Auction ♦ Greg Gehman ♦ E Petersburg ♦ K. Lucia/D. Sullivan Holiday Signs ♦ Mark Hackley ♦ Waynesboro ♦ K. Lucia/J. Millner J & S Pyne Enterprises Inc ♦ John Pyne ♦ Roanoke ♦ Al Woods Van Sales by Woodfin LLC ♦ Cherie Callis ♦ Richmond ♦ Joseph Woodfin III East Gate Motors ♦ Bob Lang ♦ Waynesboro ♦ Ed Lavendar


(757) 532-3938www.TimByrd.net

ENDORSED BY:

WHAT SETS YOURDEALERSHIP APART?

CERTIFIED HELPS YOU STAND APART: How are you different from your competition? How do you compete with the franchise stores?CERTIFIED INCREASES SALES: By offering a true CERTIFIED VEHICLE WITH A WARRANTY you are giving your customers the peace of mind that they are purchasing a reliable vehicle.CERTIFIED INCREASES PROFITS: Research conducted by Autotrader.com indicates 67% of consumers were willing to pay an average premium of $1380 more for a Certified vehicle compared to a used non-certified vehicle.DEALER OWNED CERTIFIED MEANS INTEGRITY: This is a Members Only program exclusive to qualified VIADA members who agree to the highest levels of Integrity. DEALER OWNED CERTIFIED MEANS A NEW PROFIT CENTER: Not an expense, it is a renewable source of capital, a retirement program, and a claims control center.

The Dealer Owned Certified Used Car Program is uniquely effective because:

For more information contact:


Payment Guarantee Insurance. Wouldn’t it be nice? All your accounts paying on time. No lapsed insurance notifications stacked up on your desk. Tires on your tow truck dry rotting from lack of use.

Well, there’s no such thing as Payment Guarantee Insurance. Even if there was it probably wouldn’t be cost effective. So, what can you as a BHPH dealer do to better your odds of maintaining the kind of relationship with your customers that will get those payments in on time.

In order to solve this we must look at some of the universal problems all BHPH dealers face. One of the biggest that can put a halt to payment flow is mechanical failure. A universal truth in this business is “If the car performs, the loan performs”. The vast majority of BHPH customers have one simple, basic desire. Reliable Transportation. If you are asking them to make 24 monthly payments, they expect the car to provide them with reliable transportation for 24 months. If the car does not perform to that expectation, that creates a problem historically resulting in 1. A Repo 2. Side note or 3. Goodwill. All of which usually ends up costing you money.

Another big problem is lapsed insurance. Studies indicate that nearly 50% of BHPH customers are uninsured. They begin by putting down an average of $300 for insurance and let it lapse within 90 days. How many man hours must you spend making collections calls for the insurance company so that your collateral is covered? Lapsed Insurance = Repo. You can’t afford to take the hit if they don’t have insurance. Even when the customer has insurance, the insurance adjusters are always wanting to “total” the car after an accident. By totaling it, they get the car. And when they book out the car, it is never in your favor.Wait, don’t forget “Capital”. Almost

Payment Guarantee Insurance

every BHPH dealer needs all the Capital they can get. Capital for inventory, to make loans, to pay taxes. Capital for the million or so other things that pop up every day.

I think you would agree, these are three very important areas of concern in the BHPH business.So what do you do? You form a Dealer Owned Reinsurance Company to affiliate with your BHPH business. Your reinsurance company will then provide the tools you need to take control of all these problem areas.

Tool #1: Warranty your cars for the term of the loan and let your customers provide the reserve to keep the cars repaired and on the road. How? Your reinsurance company will provide premium finance for your customer’s warranty. Therefore not requiring you to pay the full price of the warranty up front which would deplete your lending pool. A prorated portion of the cost of the warranty is collected from the customer’s payment and forwarded to your reinsurance trust account. This will provide a constant stream of reserve to ensure when problems arise there is a well funded system in place. Problems are taken care of and your customers stay on the road and making payments.

Tool #2: Debt Cancellation Coverage covers your collateral. By providing Debt Cancellation Coverage at time of purchase, your collateral is never without coverage. Customers love itbecause it saves them time and money by eliminating the need for outside coverage from the insurance company. They will still need Liability Insurance required by the state. You will no longer have to make collection calls for the insurance company or be at the mercy of the insurance adjustors. In the event of a total loss, you keep the car, not the insurance company, to scrap or whatever the situation calls for, but you are in control.

Tool #3: Capital, much needed capital. Your Dealer Owned Reinsurance Company will provide a great capital resource. By owning a reinsurance company, you will provide your BHPH business with the tools needed to succeed and maintain control. The premium for your Warranty and Debt Cancellation Coverage provide the capital you need to take care of problems that arise. Additionally what is not used to pay claims becomes the profit of the stockholders. Profit can be taken by the stockholders as a dividend distribution or can be loaned to your affiliated companies including but not limited to your dealership or RFC.Buy Here Pay Here dealers can usually provide a warranty on the car as well as Debt Cancellation Coverage on the loan cheaper than the customer can buy insurance from their agent. So you profit from money which you had required the customer to spend with someone else.

ABOUT TIM BYRDTim Byrd is founder and president of Tim Byrd & Associates Inc. located in Gloucester, Virginia. An auto industry expert on Producer Owned Reinsurance Companies, Buy Here Pay Here operations and F&I development. A Best Selling Author and Speaker, Tim is a 25-plus-year veteran of the car business, and a trusted advisor to many car dealers. Tim is married and has five beautiful children. Tim has been featured in Virginia Independent News, Special Finance Insider, DealerElite, Around the Commonwealth, Dealer Business Journal and is co-author of the #1 Best Selling Book “Unfair Advantage”.

Website: www.timbyrd.netBlog: www.timbyrd.net/blogFacebook: www.facebook.com/reinsurance101 Twitter: www.twitter.com/TimByrdRE1LinkedIn: www.linkedin.com/pub/tim-byrd/34/3b9/56a Email: [email protected] Compromise Hill Rd.Gloucester, VA 23061Phone: (757) 532-3938Fax: (804) 693-6707


vehicles was insignificant because the collector clearly used his own funds to purchase and insure the vehicles and had complete control over the manner in which they were restored. See Hockensmith v. Fifth Third Bank, 2012 U.S. Dist. LEXIS 154036 (S.D. Ohio October 26, 2012).

Car Buyer Must Show Injuries to Recover against Repossessing Lienholder for Violations of Maryland Law: An individual executed a retail installment sale contract in connection with her purchase of a used car from a Maryland dealership. When the buyer defaulted, the assignee of the contract repossessed the car and sent the buyer a notice stating that the car would be sold by a private sale. The assignee sent the buyer a notice informing her that the car had been sold at a private sale and that a deficiency balance remained. The buyer sued under a number of theories, including that the notices violated state law governing the extension of credit and the Maryland Consumer Protection Act. The U.S. District Court for the District of Maryland dismissed these two counts of the complaint because the buyer did not show any actual injury. While the assignee charged the buyer for the costs of the sale, her payments and proceeds from the sale would not cover the principal of her debt, and the assignee had already promised not to seek a deficiency. The court allowed the

buyer to proceed on her breach of contract claim for which no actual damages were required because nominal damages are available for breach of contract. See Epps v. JPMorgan Chase Bank N.A., 2012 U.S. Dist. LEXIS 153549 (D. Md. October 22, 2012).

Creditor Liable for Non-Compliant Credit Contract and Notice of Disposition: An individual signed a retail installment contract to buy a used truck, with no finance charge. After she stopped making payments, the creditor repossessed and sold the car. The individual sued for violations of the Truth in Lending Act and Nevada law. The individual claimed that the creditor failed to disclose the Amount Financed and the Finance Charge as required under Regulation Z. Reg. Z requires that the credit contract include a brief description of the Amount Financed, such as “the amount of credit provided to you or on your behalf,” and a brief description of the Finance Charge, such as “the dollar amount the credit will cost you.” The U.S. District Court for the District of Nevada granted the individual summary judgment on this claim. The court concluded that the contract’s term “unpaid balance – amount financed” did not sufficiently describe that this amount was the amount of credit provided and that the contract’s term “finance charge” did not sufficiently describe that this amount was the dollar amount the

(CARLAWYER: CONTINUED FROM PAGE 11)

credit would cost the individual, even though the contract provided that the individual would pay no finance charge. The individual also claimed that the creditor violated the Nevada version of the Uniform Commercial Code by failing to use the correct form of notice of disposition. The court granted the individual summary judgment on this claim as well, where it determined that the creditor’s notice of disposition did not include a statement that the individual was entitled to an accounting of the unpaid indebtedness, as required by Nevada law. See Limtiaco v. Auction Cars.com, LLC, 2012 U.S. Dist. LEXIS 148474 (D. Nev. October 15, 2012).

So there’s this month’s roundup! Stay legal, and we’ll see you next month.

Tom ([email protected]) and Nikki ([email protected]) are partners in the law firm of Hudson Cook, LLC. Tom is the author of several books, available at www.counselorlibrary.com. Tom is also the publisher of Spot Delivery®, a monthly legal newsletter for auto dealers, and the Editor in Chief of CARLAW®, a monthly report of legal developments in all states for the auto finance and leasing industry. Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. Spot Delivery, CARLAW and the books are produced by CounselorLibrary.com LLC. For information, call 410-865-5411 or visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2012, all rights reserved. Single publication rights only, to the Association. (12/12) HC# 4844-5300-2770.

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Year-End Tax Strategies

Not many dealers are thinking about year-end tax strategies yet…but you should be.Looking ahead to what might or

might not happen with the “fiscal cliff” could cost you in more ways than you can count. Major changes are to take effect

on January 1, 2013. Getting an early start with your tax planning might save you time and money. Here are a couple of things you might want to seek additional professional experience with.

As always, consult your tax professional…

DividendsDividends received by individuals are taxed at the capital gains rate of 15 percent. Beginning January 1, dividends will be taxed as ordinary income tax rates.

Estate TaxesEstate and gift tax exemption falls from $5.12 million to $1 million on January 1 , 2013. Consider gifts and transfer strategies this year to avoid less favorable laws. Capital GainsConsider selling securities now…Sell now and buy them back immediately if you have to. The gain will still be taxed at 202 levels. ReceivablesIf you have accounts that are delinquent and uncollectable, consider writing it off in 2012. Accounts should be written off all year long to avoid attracting attention from the IRS, however, if you have accounts that can be written off, consider doing it by the end of the year. 2013 rates could be less favorable.

Itemized Deduction Phase-OutBeginning in 2013, higher income taxpayers will again be subject to the phase-out of itemized deductions. Not all itemized deductions are subject to phase-out. The following are the ones subject to phase-out: taxes, interest (except investment interest), charitable

contributions, employee job expenses and other miscellaneous itemized deductions (excluding gambling and casualty or theft losses).

Higher Education Loan InterestA deduction of up to $2,500 is allowed for interest paid on loans for higher education. This deduction was originally limited to the first 60 months for which the interest payments were required. Congress subsequently temporarily eliminated the 60-month limitation and increased the AGI phase-out. Beginning in 2013, the 60-month rule returns and the AGI phase-out ranges (before adjustment for inflation) will be reduced to $60,000 - $75,000 for joint filers and $40,000 - $55,000 for other filers (except married couples filing separately who are barred from claiming this deduction).

RatesThe bottom tax bracket (10%) is eliminated. If one has an adjusted gross income that exceeds the top of the expiring 10% tax bracket ($17,400 for 2012), an additional $870 of tax liability is generated. ($17,400 x 5%). The tax brackets over $70,700 which are taxed at the rates of 25%, 28%, 33% and 35% are increased to the rates of 28%, 31%, 36% and 39.6% respectively. Take the time now and do what you can do to protect your hard earned money. You earned it.


NHTSA WARNS OF COUNTERFEIT AIRBAGS

The National Highway Traffic Safety Administration has warned that Chinese-made counterfeit airbags have been used as replacement parts for as many as 230,000 vehicles that have been repaired after a crash in the last three years.The NHTSA’s tests have shown the

black market fake airbags, which look like certified original equipment parts right down to the manufacturers logo, showed consistant malfunctioning ranging from non-deployment of the air bag, to the expulsion of metal shrapnel during deployment. The airbags are being sold to independent repair shops as original equipment. While the full scope and scale of the problem of counterfeit air bags is uncertain from currently available data, the NHTSA has identified certain vehicle makes and models for which these air bags may be available. This list, along with additional information, can be found at safercar.gov.Cars that have had their airbags

replaced by independent shops or repaired using airbags purchased online during the past three years are at risk. Owners of such vehicles are asked to contact the call center established by their car’s manufacturer to have the vehicle inspected and the airbag replaced if necessary. A list of call centers can be found at safercar.gov.The NHTSA said that no deaths or

injuries have been tied to the counterfeit airbags, but also noted that it is unclear whether police accident investigators would be able to distinguish a fake airbag from a real one after a wreck.

A Highlight From Our Blog


This is less maintenance and expense to you. The .mobi solution allows you to extend your brand and tailor an advertising campaign to a very specific audience.

Studies say as much as almost eight percent of all surfing is done on a mobile device. It is predicted mobile device users will outnumber surfers on computers in three years. One thing to keep in mind is the type of product you sell. Consumers want to view your site on a regular computer more frequently because they want to see the vehicle. Pictures and complete descriptions are always going to be important to the consumer and there just is not enough room in those small devices. Our website customers in industries like lodging and dining see a higher percentage of mobile phone surfers than do car dealers, according to website counters.

A new feature just launched at VIADA’s website, www.VAUsedCarDealers.com is aimed to attract more of these tech savy consumers. If you perform a search at this site and click on a car you will see an invite for shoppers to “Text ABCDEF to 41411 to have this car sent to your phone”. When the consumer does this you will get a lead emailed to you containing the surfer’s phone number and the car they inquired about. They, in return, will get an address to click on to have the vehicle information and images displayed on their phone. You and your staff can then follow up on that lead by texting or calling them.

Technology is always changing. Even though you may not own the most up-to-date gadget doesn’t mean your customer doesn’t own one. It is important to see your advertising through your customers’ eyes and adjust as needed. If you can’t find a friend with a smart phone to see your website, call me. I will be glad to help.

That is because not all cell phones see the Internet the same way your office computer does. Flash is a type of image programming that cannot be seen on any Iphone. Also, some devices will skip downloading large image files. If the content of these files is important to the navigation of your site then you need to do something.

If you find your website is not phone –friendly, there are two things you can do. The first would be to work with your website provider to make your website compatible with these devices. Flash files can be replaced with other video file types or still images. Large image files can be optimized and saved as more compact versions. Sometimes, though, these changes will dramatically effect the conversion rates of your primary website or distract from the content of your site. If that is the case, the other solution would be to set up a secondary, mobile website for your dealership.

A mobile site is a mini version of your regular website. It will contain no flash or large files. It will have more buttons and less forms. It should still have the same branding as the other website, only condensed. A person car shopping on their phone has to be more likely to call or drive in so your mobile site should definitely have your number and address easy for them to find. Often times it is a good idea to have a separate domain for this mobile site and they even have their own extension. Instead of .com or .net they are known as .mobi. Once the site is designed you will then want to go back to your main website’s provider and ask them to add a forwarder. This is simple code that will check to see if each visitor of your .com site is on a mobile device and if so, will redirect them to your .mobi site automatically.

Both solutions have advantages. Making your existing site phone-friendly allows you to have one website for all viewers.

We have all heard the saying “Bigger is Better”. Big cars, big steering wheels and big ideas have powered car dealers for decades. But when the automotive industry meets today’s tochnology, you realize things are getting smaller. It is important to stay up on advancements that become available to the car buying public.

Apple recently announced a new product called the Ipad Mini. It is a smaller version of the Ipad (real creative naming, I know). The Ipad was created as the smaller version of a Macintosh computer. See the trend? Now, it is important to note Steve Jobs thought the Ipad Mini was a terrible idea and shelved it before he passed away. Today’s Apple execs revived the project, though, after seeing the success of other similar devices like the Kindle. While it remains to be seen how popular this new product will be, it is important to reflect on how your clients use this technology and how that use can intersect with you and your dealership.

Every one has a smart phone or a friend with one. A smart phone is one that will allow for Internet browsing on the phone’s screen. If you have a website, the first thing you should do is check out that site on one of these devices. If you do not have one, find a friend or family member who does and ask them to go to your site. These phones come with data plans so you will not be running up their phone bill.

When viewing your site you want to be sure the average consumer is able to navigate to the key parts of your site. Inventory listings, vehicle details on a specific listing, and map and directions are the important pages for mobile site viewers. Also, make sure your phone number is readily available. Does the site fit the device and can the text be easily read? Sometimes you might notice a missing image or flash file.

The InTerneT Corner

By: John Summer, JTZ enTerprISe.Com, 877-286-1564

iS SMall the new big?

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• Visit twaa.com for current listings, contact form

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New Location info:

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Phone #: 757-487-3464

Fax #: 757-485-2227

656 S Military Hwy, Virginia Beach, VA, 757 487 3464, Website: www.twaa.com

Sale Every Wednesday Starting at 9:00amSale Every Wednesday Starting at 9:00am

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Symbol of Quality

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VIADA’s 53rd Annual Convention & Expo

Documents

The Virginia Independent News: Winter 2013