indiana car lines july 2012

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

JULY 2012

inside

Anniversary Golf TournamentTRADE SHOW/AWARDS DAYSunday, September 9thIronwood Golf Club Fishers, IN

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

O F F I C I A L V O I C E O F T H E I N D E P E N D E N T C A R D E A L E R I N I N D I A N A

CAR LINESINDIANA

page 14

see page 5

INDIANA’S ANDERSEN NAMED

NIADA 2012

ASSOCIATION

EXECUTIVE

OF THE YEAR25CELEBRATING 25 YEA

RS OF SERVICE

1987-2012

IN_0712.indd 1 6/20/12 11:03 AM

IN_0712.indd 2 6/20/12 11:03 AM

JULY 2012 C A R L I N E S

3

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

Before motor vehicle dealers sell cars in

,QGLDQD��WKH\�PXVW�¿OH�D��VXUHW\�bond with the Secretary of State’s Dealer

Division.

You’re not alone if you don’t know how

your bond works or why you need it in

the first place. To help alleviate some

of the mystery that surrounds bonding,

we’ll answer five frequently asked

questions Indiana auto dealers have

about surety bonds.

1. Why does the state of Indiana require auto dealers to buy surety bonds?$XWR�GHDOHU�ERQGV�SURYLGH�¿QDQFLDO�

guarantees to ensure dealers will manage

their businesses according to industry

regulations. If a dealer breaks the bond’s

terms, the bond amount can be used to

SD\�IRU�¿QHV��SHQDOWLHV��IHHV�DQG�RWKHU�costs assessed by the Secretary of State

relative to the violation.

2. How do surety bonds work?To put it simply, surety bonds bind

three parties together in contracts that

require a certain level of performance.

The principal is the auto dealer, who

purchases the bond as a guarantee of

future work performance. The obligee is

the party that requires the principal to

purchase a bond, which, in this case, is the

state’s Dealer Division. Finally, the surety

is the insurance company that guarantees

the bond.

,I�D�ERQGHG�SULQFLSDO�GRHV�QRW�IXO¿OO�the bond’s terms, the obligee can make

a claim against the bond to collect

reparation for damages. If the claim is

found to be valid, the surety will pay the

obligee. Unlike traditional insurance

policies, however, auto dealers are

expected to reimburse the insurance

company for any claims made against

a bond.

3. Who needs an Indiana auto dealer bond?

The following motor vehicle dealer

professions require an Indiana surety

bond as part of the licensing process:

�� $XWRPRELOLW\�GHDOHUV�� $XWRPRELOH�DXFWLRQHHUV�� &RQYHUWHU�PDQXIDFWXUHUV�� 'LVWULEXWRU�UHSUHVHQWDWLYHV�� 'HDOHUV�� 'LVWULEXWRUV�� )DFWRU\�UHSUHVHQWDWLYHV�� 0DQXIDFWXUHUV

�� 5HVHDUFK�DQG�GHYHORSPHQW�� 7UDQVIHU�GHDOHUV�� :KROHVDOH�GHDOHUV

4. How can I prevent claims against my bond?

To avoid having claims made against

your bond, simply comply with its

terms. As with any other legal contract,

you should fully understand the terms

you’re agreeing to before you sign it. The

contractual language used in Indiana

auto dealer bonds requires auto dealers

WR�FRPSO\�ZLWK�,QGLDQD�&RGH��³&KDSWHU��5HJXODWLRQ�RI�9HKLFOH�0HUFKDQGLVLQJ�´�<RX�FDQ�¿QG�WKH�FRGH�LQ�its entirety at www.in.gov.

5. How do I get a surety bond?:KHQ�\RX�FRQWDFW�D�VXUHW\�SURYLGHU��

you’ll have to answer basic questions

about your professional work experience

DQG�SHUVRQDO�¿QDQFLDO�KLVWRU\��$XWR�GHDOHU�bond applications require applicants to

provide their social security number so the

surety can review their credit scores. If

your business has more than one owner,

WKH�¿QDQFLDO�FUHGHQWLDOV�RI�DOO�RZQHUV�ZLOO�be considered.

After you approve the quote, you’ll

probably be required to pay the full

premium up front. Sometimes surety

underwriters can offer premium

¿QDQFLQJ�WR�TXDOLI\LQJ�DSSOLFDQWV��2QFH�you’ve paid your premium, the surety

provider will execute your bond and send

it to you.

Surety bonds can be confusing, but with

a basic understanding of how they work,

you’ll be better prepared to get one when

it’s time to renew your Indiana auto

dealer license.

Answers to Top Five Questions About Surety Bonds

Q & A

BY DANIELLE RODABAUGHDANIELLE RODABAUGH IS A SURETY SPECIALIST AT SURETYBONDS.COM, A NATIONWIDE SURETY BOND PRODUCER THAT ISSUES AUTO DEALER BONDS IN ALL 50 STATES. SURETYBONDS.COM IS A PROUD MEMBER OF THE INDIANA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION.

IN_0712.indd 3 6/20/12 11:03 AM

C A R L I N E S JULY 2012

4


WHAT’S NEW

MAGAZINE CONTENTS

ADVERTISERS INDEX

03 Surety Bond Answers04 Dealer Plates in National Database06 The CarLawyer13 Associate Members/New & Renew14 IIADA Golf Tournament/Awards Day/Trade Show22 Compliance Overdrive

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION

NIADA HEADQUARTERS:

Car Lines is published 10 times per year by the National In-dependent Automobile Dealers Association Services Corpo-ration, 2521 Brown Blvd., Arlington, TX 76006-5203; phone 817-640-3838. Periodicals postage paid at Dallas, TX and at additional of!ces. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 6006-5203. The statements and opinions expressed herein are those of the individual authors and do not nec-essarily represent the views of Car Lines or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identi!cation as mem-bers of NIADA , does not constitute an endorsement of the products or services featured. Copyright © 2012 by NIADA Services, Inc.

EDITOR

Nieman Printing

IIADA OFFICE

ADESA ....................................... Inside Front CoverAlly ................................................................... 23AutoTrader.com .....................................Back CoverChase ................................................................16Dyer Auto Auction ............................................ 18Indiana Auto Auction ............................................3Kelley Blue Book ..................................................7Kesler-Schaefer Auto Auction ..............................9Manheim.com ........................... Inside Back CoverManheim Indianapolis ........................................12NIADA Certi!ed ..................................................19Nowcom ............................................................11Protective ..........................................................21United Acceptance .............................................17Voisys ................................................................26

inside

25CELEBRATING 25 Y

EARS OF SERVICE

1987-2012

DIRECTORDebbie AndersenP.O. Box 1393Crown Point, IN 46308Phone: (800) 310-3112Fax: (219) 663-5294

CHAIRMAN OF THE BOARDDave Allen (Crockett)

Fritz KreutzingerFritz AssociatesP.O. Box 168Fishers, IN 46038 Phone: (317) 842-2228Fax: (317) 842-7903

Tricia TrentTrent Auto Sales1327 N 6th Street Vincennes, IN 47591 Phone: (812) 882-3772Fax: (812) 882-1986

TREASURERBruce NortonDrive1USA1512 W 96th Avenue, Suite C Crown Point, IN 46307Phone: (219) 661-1000Fax: (219) 661-2950

Jennifer CottonDyer Auto AuctionP.O. Box 115 Dyer, IN 46113-0115 Phone: (219) 865-2361Fax: (219) 322-1761

Kim GrahamKim Graham, Inc.1648 A US 31 SGreenwood, IN 46143Phone: (317) 888-0100Fax: (317) 888-8900

Ed WhiteWhite’s Auto Sales1105 McKinley Avenue Rensselaer, IN 47978Phone: (219) 866-7553Fax: (219) 866-7256

Tony HoukKesler-Schaefer Auto Auction, Inc. 5333 W. 46h StreetIndianapolis, IN 46253Phone: (317) 297-2300(800) 959-5722

Tyler TrentTrent Auto Sales1327 N 6th Street Vincennes, IN 47591Phone: (812) 882-3772Fax: (812) 882-1986

Harold DreesH.T.D., Inc.200 E Main StreetThorntown, IN 46071Phone: (317) 402-2312Fax: (765) 436-7222

Tony Del RealDel Real Auto Sales3857 State Road 38 ELafayette, IN 47905Phone: (765) 446-9204Fax: (765) 446-9143

John StumpfGreater Kalamazoo Auto AuctionP O Box 697Schoolcraft, MI 49087Phone: (574)876.6145

Doug AlveyFirst Class Auto Sales, Inc695 W 900SHebron, IN 46341Phone: (219) 996-2600Fax: (219) 531-4628

Sharon BrennanFritz in Fishers8599 E 116th StreetFishers, IN 46038Phone: (317) 842-2228Fax: (317) 842-7903

Andrew J. InabnittApproval Auto Credit Inc.9825 Huggin Hollow Rd.Martinsville, IN 46151Phone: (317) 422-8001Fax: (317) 422-8020

David D. Baldwin IIBest Deal Auto Sales, Inc.1875 SR 8Auburn, IN 46706Phone: (260) 357-0099

Andy ZayZay Leasing & Rentals4957 N. BroadwayHuntington, IN 46750(260) 356-1588

Travis HuberThe Auto Store5474 US Hwy 6, Suite APortage, IN 46368Phone: 219-712.2944

Sirius XM Satellite Radio is America’s satellite radio company. Independent dealerships can now offer a free SiriusXM three-month trial on all pre-owned vehicles with factory-equipped satellite radio. In addition to selling your customers a quality vehicle, you’ll be giving them the opportunity to enjoy satellite radio. And there’s no cost to your customer. Visit www.siriusxm.com/niadaprogram to enroll your dealership today!

NIADA Member Health Plans, administered by JLBG Health, bring you choice and #exibility when designing your personal health plan while providing potential savings of thousands of dollars annually. To review the plan details and receive an instant online rate, visit www.NIADAHealthPlans.com or call 1-888-308-9340.

Board of Directors

Indiana Dealer Plates Linked to National Database

Indiana auto dealer plates are now linked to the National Law Enforcement 7HOHFRPPXQLFDWLRQV�6\VWHP��D�QDWLRQDO�GDWDEDVH�IRU�ODZ�HQIRUFHPHQW�RI¿FHUV��6HFUHWDU\�RI�State Connie Lawson announced in May.

Linking Indiana auto dealer plates to the national database provides law enforcement nationwide with access to real-time information, greatly reducing the appeal of Indiana plates for illegal purposes.

“This is a huge step forward for our long-term security,” Lawson said. “By ensuring dealer plates can be tracked by local and national law enforcement agencies, we can better protect Indiana’s legitimate auto dealers and deter the theft of these plates for criminal use around the country.”

The measure was made in part in response to help eliminate past security issues involving Indiana dealer plates that have led to their misuse.

Previously, law enforcement outside the state could look up an individual’s personal vehicle information, but were unable to access Indiana dealer plate data. Now police and other law enforcement agencies can get information on metal dealer plates used for dealership business such as test drives as well as paper temporary plates issued when a vehicle is sold, allowing WKHP�WR�LQVWDQWO\�DFFHVV�GDWD�GXULQJ�URXWLQH�WUDI¿F�VWRSV�DQG�WR�VROYH�FULPHV�7KH�$XWR�'HDOHUV�6HUYLFHV�'LYLVLRQ�RI�WKH�6HFUHWDU\�RI�6WDWH¶V�RI¿FH�ZRUNHG�ZLWK�WKH�%XUHDX�

of Motor Vehicles and the Indiana State Police to link to the national database through the BMV and state police systems.

IN_0712.indd 4 6/20/12 12:23 PM


5


Indiana’s Andersen named Executive of the Year

Debbie Andersen, executive director of the Indiana

Independent Automobile Dealers Association, was selected by

her peers as NIADA’s 2012 Association Executive of the Year.

Andersen, has headed the IIADA since 2001 after serving

six years as the association’s accountant, and has used her

EDFNJURXQG�DV�D�&3$�WR�SXW�,,$'$�LQ�D�VWURQJ�¿QDQFLDO�SRVLWLRQ�“The association was going through hard economic times,”

said 2011 Executive of the Year Jim Mitchell of Ohio, who

presented the award to Andersen during the 66th Annual NIADA

Convention & Expo at Caesars Palace in Las Vegas.

³%XW�WRGD\�LW�LV�RQ�VROLG�¿QDQFLDO�JURXQG�DQG�WKH�DVVRFLDWLRQ¶V�membership has grown to its highest level.”

The winner is chosen by the executives of the state independent

auto dealers associations nationwide.

“I’m very honored,” Andersen said, “because it’s a selection

by my peers, and to be honored by your peers, I think, is the

ultimate in respect.”

When Andersen took on the executive director job, she knew

from her stint as IIADA’s accountant that getting association’s

¿QDQFLDO�KRXVH�LQ�RUGHU�ZRXOG�EH�KHU�¿UVW�RUGHU�RI�EXVLQHVV�³,�NQHZ�,�ZDV�JHWWLQJ�LQWR�D�ELJ�¿QDQFLDO�PHVV�´�VKH�VDLG��

³7KDW¶V�ZK\�,�ZDV�EURXJKW�LQ�WR�EH�WKH�&3$�LQ�WKH�¿UVW�SODFH��7KH\�ZHUH�YHU\�¿QDQFLDOO\�FKDOOHQJHG��:KHQ�WKH�H[HFXWLYH�GLUHFWRU�resigned, I thought, ‘Yeah, I’d kind of like to do that.’ And I truly

enjoy it.”

Andersen cut the association’s expenses and began using

fundraising events to increase revenue without raising the

members’ dues.

“We cut expenses immediately, and you look for other sources

of income,” she said. “It sounds simple, but we had to be creative.

We had to think outside the box. Dues was not the place to go.

We needed to raise money but we didn’t want to do it on the

backs of the dealers. And, of course, we also slashed expenses. I

didn’t spend if they didn’t have it.”

Growing up in the Detroit area, Andersen has been around

the car business and car people her entire life. While attending

Northern Michigan University, she worked on the assembly line

for Federal Mogul, a major parts supplier to auto manufacturers.

“I worked my way through college working in automotive

factories,” she said. “We made all the plastic parts, like the dash,

on injection molding machines. They came off the assembly line

and you had to trim all the plastic off of them.”

Andersen said the biggest step she has seen IIADA take during

her tenure has been in its relationship with the state government.

“We have grown tremendously in recognition within the

VWDWH�JRYHUQPHQW�´�VKH�VDLG��³2XU�VWDWH�RI¿FLDOV��IURP�WKH�governor to the secretary of state to the director of the bureau

of motor vehicles, all look to the association now for advice and

suggestions, which was not the case when I came on board 11

years ago.

“That is huge. That’s probably the thing I’m most proud of.”

IN_0712.indd 5 6/20/12 12:19 PM


6


The CARLAWYER ©

C O N T I N U E D O N PAG E 8

Here’s our monthly collection of selected

legislative and regulatory highlights, and

a recap of some of the many auto sale and

¿QDQFLQJ�ODZVXLWV�ZH�IROORZ�HDFK�PRQWK�5HPHPEHU��ZKDW�ZH�UHSRUW�KHUH�LV�

not even close to being every recent

GHYHORSPHQW��:H�VHOHFW�WKRVH�ZH�WKLQN�DUH�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.

:H�LQFOXGH�LWHPV�IURP�RWKHU�VWDWHV��:K\"�:H�ZDQW�\RX�WR�EH�DEOH�WR�VHH�QHZ�legal developments and trends. Also,

another state’s laws might be a lot like

your own 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 LAW0RVW�RI�WKH�IHGHUDO�QHZV�WKLV�PRQWK�

GHDOV�ZLWK�WKH�&RQVXPHU�)LQDQFLDO�Protection Bureau.

Liability of service providers: 2Q�$SULO��WKH�&)3%�UHOHDVHG�%XOOHWLQ��FODULI\LQJ�WKDW�VXSHUYLVHG�¿QDQFLDO�institutions can be held responsible for

the actions of service providers with

which they contract and recommending

WKDW�VXSHUYLVHG�¿QDQFLDO�LQVWLWXWLRQV�WDNH�steps to ensure business arrangements

with service providers do not present

unwarranted risks to consumers.

Those steps include conducting

thorough due diligence to verify that

the service provider understands and

is capable of complying with the law;

requesting and reviewing the provider’s

policies, procedures, internal controls

and training materials to ensure the

provider conducts appropriate training

and oversight of certain employees;

including in the contract with the provider

clear expectations about compliance and

FRQVHTXHQFHV�IRU�YLRODWLQJ�FRPSOLDQFH�related responsibilities; establishing

LQWHUQDO�FRQWUROV�DQG�RQ�JRLQJ�PRQLWRULQJ�to determine whether the provider is

complying with the law; and taking prompt

action to address fully any problems

LGHQWL¿HG�WKURXJK�WKH�PRQLWRULQJ�SURFHVV�Bureau targets discrimination:

2Q�$SULO��WKH�EXUHDX�DQQRXQFHG�LW�ZLOO�XVH�³DOO�DYDLODEOH�DYHQXHV´�WR�SXUVXH�discrimination cases against creditors.

&DOOLQJ�GLVFULPLQDWLRQ�³WKH�PDUNHW¶V�VLOHQW�SLFNSRFNHW�´�&)3%�GLUHFWRU�5LFKDUG�&RUGUD\�HPSKDVL]HG�KLV�DJHQF\�ZLOO�SXUVXH�cases not only based on evidence of overt

discrimination and disparate treatment,

but also based on the sometimes

controversial legal theory of disparate

impact.

&DVHV�EDVHG�RQ�GLVSDUDWH�LPSDFW�WDUJHW�D�³IDFLDOO\�QHXWUDO�SROLF\�FULWHULRQ´��OLNH�]LS�FRGHV��WKDW�KDV�D�GLVSURSRUWLRQDWH�adverse impact on one or more people on

a prohibited basis, such as by sex or race.

&RQVLGHULQJ�VXFK�IDFWRUV�FDQ�EH�LOOHJDO�LI�WKH�creditor lacks a legitimate business need for

considering the factor or could achieve its

legitimate goals as well by means that are

less disparate in their impact.

Patrice Ficklin, assistant director of the

&)3%¶V�2I¿FH�RI�)DLU�/HQGLQJ��UHSHDWHG�&RUGUD\¶V�ZDUQLQJ�DERXW�WKH�EXUHDX¶V�intention to pursue cases against creditors,

using a disparate impact theory. She said the

EXUHDX¶V�SULRULWLHV�ZRXOG�LQFOXGH�DXWR�¿QDQFH��

To arbitrate or not to arbitrate:

2Q�$SULO��WKH�EXUHDX�DQQRXQFHG�it had launched a public inquiry into

KRZ�FRQVXPHUV�DQG�¿QDQFLDO�VHUYLFHV�companies are affected by arbitration

DQG�DUELWUDWLRQ�FODXVHV��7KH�&)3%¶V�authority to study arbitration agreements

in consumer contracts derives from

WKH�'RGG�)UDQN�$FW�DQG�LQFOXGHV�WKH�authority to ban their use should it

deem such a prohibition appropriate.

The bureau requested comments on

the prevalence of arbitration clauses

LQ�FRQVXPHU�¿QDQFLDO�SURGXFWV�DQG�services; what claims consumers bring

LQ�DUELWUDWLRQ�DJDLQVW�¿QDQFLDO�VHUYLFHV�companies; if claims are brought by

¿QDQFLDO�VHUYLFHV�FRPSDQLHV�DJDLQVW�consumers in arbitration; how consumers

and companies are affected by actual

arbitrations; and how consumers and

companies are affected by arbitration

clauses outside of actual arbitrations. The

FRPPHQW�SHULRG�HQGHG�-XQH��

LITIGATIONSeparate arbitration agreement

unenforceable where related RISC contained merger clause and no reference to arbitration agreement:

A car buyer signed an arbitration

agreement, a retail installment sales

contract and a security agreement in

connection with her purchase. The

arbitration agreement provided that all

claims or disputes between the parties

were to be resolved through arbitration.

The retail installment contract contained

a merger clause, stating that the contract

sets forth the entire agreement between

the parties.

T H I S C O LU M N D O E S N O T O F F E R L E G A L A DV I C E . YO U S H O U L D C O N S U LT YO U R D E A L E R S H I P L AW Y E R W I T H A N Y L E G A L Q U E S T I O N S .

IN_0712.indd 6 6/20/12 11:03 AM

The CARLAWYER ©

IN_0712.indd 7 6/20/12 11:03 AM


8


The buyer sued the dealership,

alleging negligent misrepresentation,

general negligence and violations

of state law. The dealership moved

to compel arbitration, but the trial

FRXUW�GHQLHG�WKH�PRWLRQ��7KH�&RXUW�RI�$SSHDOV�RI�0LVVRXUL�DI¿UPHG�

Because the retail installment

contract contained a merger clause

and did not incorporate or reference

the arbitration agreement, the retail

installment contract superseded the

arbitration agreement. As such, there

was no effective agreement to arbitrate.

-RKQVRQ�Y��-)�(QWHUSULVHV��//&��0R��$SS��/(;,6��0R��$SS��0DUFK��

Perfected security interest effective against defrauded vehicle purchasers: Individuals

ERXJKW�D�PRWRUF\FOH�RQ�&UDLJVOLVW��$W�the time of the sale, a bank was listed

DV�OLHQKROGHU�RQ�WKH�WLWOH�RQ�¿OH�ZLWK�WKH�%XUHDX�RI�0RWRU�9HKLFOHV��7KURXJK�a series of deceptive transactions, the

seller possessed a title in his name

that did not list the bank as lienholder.

It was that title he tendered to the

buyers.

:KHQ�WKH�EX\HUV�DWWHPSWHG�WR�get a new title, they discovered the

deception. They sued the bank to get

clear title to the motorcycle, arguing it

was the bank’s action that allowed the

seller to acquire the deceptive title, and

they were, therefore, not in wrongful

possession of the motorcycle. The trial

court granted summary judgment for

WKH�EDQN��DQG�WKH�,QGLDQD�&RXUW�RI�$SSHDOV�DI¿UPHG��GHWHUPLQLQJ�WKDW�WKH�trial court did not err in concluding the

bank had a perfected security interest

in the motorcycle. Dawson v. Fifth

7KLUG�%DQN��,QG��$SS��/(;,6��,QG��$SS��0DUFK��

Finance company had permissible purpose to access car buyer’s credit report even though dealer applied for credit without buyer’s consent: A car buyer went

to a dealership to buy a car and signed

a purchase order. She never signed a

credit application and instead told the

GHDOHUVKLS�VKH�ZRXOG�REWDLQ�¿QDQFLQJ�from her credit union.

Nevertheless, the dealership

applied for credit on her behalf with

VHYHUDO�¿QDQFH�FRPSDQLHV��2QH�RI�those companies declined to extend

credit to her after accessing her credit

report. She sued the dealership, a

FUHGLW�UHSRUWLQJ�FRPSDQ\��WKH�¿QDQFH�company that denied her credit and

VHYHUDO�RWKHU�¿QDQFH�FRPSDQLHV�IRU�YLRODWLQJ�WKH�)DLU�&UHGLW�5HSRUWLQJ�$FW��among other laws.

7KH�WULDO�FRXUW�JUDQWHG�WKH�¿QDQFH�company’s motion to dismiss, and the

8�6��&RXUW�RI�$SSHDOV�IRU�WKH�6L[WK�&LUFXLW�DI¿UPHG��7KH�FDU�EX\HU�DOOHJHG�WKH�¿QDQFH�FRPSDQ\�YLRODWHG�WKH�)&5$�by accessing her credit report without

KHU�ZULWWHQ�DXWKRUL]DWLRQ��7KH�DSSHOODWH�court found there were no facts in

KHU�FRPSODLQW�VKRZLQJ�WKH�¿QDQFH�company had reason to believe she

GLG�QRW�ZLVK�WKH�GHDOHUVKLS�WR�¿OH�DQ�application on her behalf. Therefore,

KHU�DOOHJDWLRQV�XQGHU�WKH�)&5$�ZHUH�LQVXI¿FLHQW��:HOOV�Y��&UDLJ��/DQGUHWK�&DUV��,QF��8�6��$SS��/(;,6��WK�&LU��:�'��.\��$SULO��

Vehicle loan not subject to Pennsylvania Motor Vehicle Sales Finance Act: An individual bought

a motorcycle from a dealership and

DUUDQJHG�IRU�¿QDQFLQJ�IURP�D�EDQN�WKDW�ZDV�D�VXEVLGLDU\�RI�D�¿QDQFH�company related to the manufacturer

of the motorcycle. The buyer signed a

promissory note showing the bank as

the lender.

:KHQ�WKH�EX\HU�IHOO�EHKLQG�RQ�KLV�payments, the bank repossessed the

motorcycle. It then sent the buyer a

notice stating it planned to sell the

PRWRUF\FOH�VRPHWLPH�DIWHU��GD\V��7KH�EX\HU�¿OHG�D�FODVV�DFWLRQ�DJDLQVW�WKH�bank, arguing the bank’s notice of the

proposed sale violated the Pennsylvania

0RWRU�9HKLFOH�6DOHV�)LQDQFH�$FW�The trial court granted the bank’s

PRWLRQ�WR�GLVPLVV��DQG�WKH�8�6��&RXUW�RI�$SSHDOV�IRU�WKH�7KLUG�&LUFXLW�DI¿UPHG��7KH�DSSHOODWH�FRXUW�IRXQG�WKH�096)$�did not apply to the buyer’s contract

ZLWK�WKH�EDQN��7KH�096)$�LPSRVHV�repossession notice requirements only

when a motor vehicle is the subject of

an installment contract. The appellate

court found the promissory note was

not an installment contract because it

was not a contract for the retail sale of a

motor vehicle.

7KH�EX\HU�DUJXHG�WKH�096)$�DSSOLHG�WR�WKH�WUDQVDFWLRQ�XQGHU�D�³GUDJJLQJ�WKH�ERG\´�WKHRU\��LQ�ZKLFK�D�SURPLVVRU\�note and bill of sale are collapsed

into a single transaction because the

GHDOHUVKLS�³GUDJV´�WKH�FXVWRPHU�WR�

D�VSHFL¿F�OHQGHU�SUH�VHOHFWHG�E\�WKH�dealership. The appellate court declined

to apply that theory to the transaction.

Hudson v. Eaglemark Savings Bank,

��8�6��$SS��/(;,6��G�&LU��(�'��3D��0DUFK��

Breach of warranty claim fails when buyer’s order limited warranties to those contained in document and plaintiff relied on representations made outside of contract: An individual bought a

XVHG�FDU�IURP�D�GHDOHUVKLS��:KHQ�WKH�car encountered mechanical problems

that could not be permanently repaired,

the buyer sued the dealership, alleging

it violated Texas’ Deceptive Trade

Practices Act, breached the express and

implied warranties in the buyer’s order

and committed fraud and negligent

misrepresentation.

The buyer’s order the individual

signed contained a provision limiting

warranties to those expressly made

in the buyer’s order and disclaiming

all implied warranties and any prior

written or oral representations. The

buyer’s order did not contain any

express warranties relevant to the

individual’s claim.

7KH�8�6��'LVWULFW�&RXUW�IRU�WKH�Southern District of Texas granted

summary judgment for the dealership,

holding that the buyer failed to show

reliance on any representations

contained in the buyer’s order and that

she was barred, based on the disclaimer

in the buyer’s order, from relying on

any representations made outside of the

FRQWUDFW��3HQQLQJWRQ�Y��&DU0D[�$XWR�6XSHUVWRUHV��,QF��8�6��'LVW��/(;,6��6�'��7H[��0DUFK��

So there you have it! Stay legal, and

we’ll see you next month.

BY THOMAS B. HUDSON AND NICOLE FRUSH MUNROTOM ([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 2011, ALL RIGHTS RESERVED. SINGLE PUBLICATION RIGHTS ONLY, TO THE ASSOCIATION. (4/12) HC# 4815-1804-1615.

C O N T I N U E D F RO M PAG E 6 | The CARLAWYER

IN_0712.indd 8 6/20/12 11:03 AM


9


$OPRVW��SHUFHQW�RI�FDU�EX\HUV�VDLG�social media aided their shopping process

and a similar number said online reviews

affected their choice of dealers according

to a new study by the automotive social

media and reputation management

company Digital Air Strike™.

'LJLWDO�$LU�6WULNH�VDLG�WKH��$XWRPRWLYH�'HDOHUVKLS�6RFLDO�0HGLD�DQG�2QOLQH�5HSXWDWLRQ�6WXG\��FRPSOHWHG�LQ�$SULO��LV�WKH�¿UVW�DXWRPRWLYH�VSHFL¿F�VWXG\�WR�DQDO\]H�WKH�XVH�RI�VRFLDO�media and review sites by car buyers

during the dealership selection process

while concurrently auditing how car

dealerships engage with consumers on

these sites.

The study measured usage trends on

Facebook, Twitter and Google+ while

identifying the top four dealership review

VLWHV�±�(GPXQGV��&DUV�FRP��<HOS�DQG�*RRJOH�5HYLHZV�±�EDVHG�RQ�FRQVXPHU�XVH�DQG�WUDI¿F�

7KH�FRQVXPHU�VWXG\�VXUYH\HG��car buyers who purchased a vehicle in

WKH�ODVW�VL[�PRQWKV�DQG�IRXQG�WKDW��percent of consumers said social media

sites helped their vehicle purchase

GHFLVLRQ�DQG��SHUFHQW�RI�FDU�VKRSSHUV�said dealership reviews impacted

which dealership they visited when

shopping for a vehicle. Fifty percent said

UHYLHZV�DI¿UPHG�WKHLU�RULJLQDO�FKRLFH�RI�GHDOHUVKLS��ZKLOH��SHUFHQW�VDLG�WKH\�either selected a dealership based on the

reviews or changed their choice after

reading reviews on multiple dealerships.

The dealership audit, which included

��DXWRPRWLYH�UHWDLOHUV�DURXQG�WKH�nation, compared engagement levels

IURP��GHDOHUVKLSV�WKDW�PDQDJHG�WKHLU�VRFLDO�PHGLD�PDUNHWLQJ�LQ�KRXVH�ZLWK��WKDW�XVHG�D�YHQGRU�WR�PDQDJH�WKHLU�social media sites and online reputation.

,W�VKRZHG��SHUFHQW�RI�WKRVH�KDQGOLQJ�LW�LQ�KRXVH�GLG�QRW�UHVSRQG�WR�QHJDWLYH�

RQOLQH�UHYLHZV��DQG��SHUFHQW�GLG�QRW�respond to positive reviews.

,Q�DGGLWLRQ��SHUFHQW�RI�GHDOHUV�PDQDJLQJ�VRFLDO�PHGLD�LQ�KRXVH�XWLOL]HG�³FURZG�VRXUFLQJ´�WHFKQLTXHV��FRPSDUHG�WR��SHUFHQW�RI�WKRVH�ZLWK�D�VRFLDO�media partner, and dealers using outside

vendors had more than double the

number of followers on the top two social

media sites.

³7KLV�JURXQG�EUHDNLQJ�VWXG\�KLJKOLJKWV�the importance of social networks

and review sites in the car buying

SURFHVV�´�'LJLWDO�$LU�6WULNH�FR�IRXQGHU�$OH[L�9HQQHUL�VDLG��³'HDOHUV�ZKR�ZRUN�with a social media partner can gain a

VLJQL¿FDQW�DGYDQWDJH�IURP�LQFUHDVHV�in consumer engagement and related

ZHEVLWH�WUDI¿F�´For more information, visit www.

digitalairstrike.com or www.facebook.

com/digitalairstrike.

STUDY: Most Car Buyers Use Social Media V I S I T W W W. D I G I TA L A I R S T R I K E . C O M O R W W W. FAC E B O O K . C O M / D I G I TA L A I R S T R I K E .

IN_0712.indd 9 6/20/12 11:03 AM


10


CARFAX Helps TV Station Take Aim at CurbstonerEditor’s note: Curbstoning – sales

of vehicles by unlicensed dealers – is a national problem that takes advantage of consumers and takes money away from state and local governments as well as legitimate dealers. This report from Memphis television station WMC-TV exposing a local curbstoner and explaining the issue to the public is a direct result of the commitment of vehicle history UHSRUW�SURYLGHU�&$5)$;�WR�¿JKWLQJ�curbstoning.

“We brought the issue to the station’s attention,” CARFAX public relations manager Chris Basso said. “Tennessee is one of the biggest hotbeds for curbstoning, but it’s a nationwide problem. Whenever we hear about curbstoners in a particular area, we work to get the word out about the potential problems with the cars these people are selling and how to avoid them.

“Most curbstoners are selling cars reputable dealers won’t touch – cars with hidden damage or rolled-back odometers or such – because they’re trying to make a quick sale. Anyone buying a used car needs to be wary of not only the car but of who they’re buying it from.”

Basso said CARFAX has contacted other media outlets, including stations in Nashville and Phoenix, with similar tips, as part of the company’s ongoing efforts to help educate and warn consumers and dealers about emerging issues involving used cars in their area.

By Andy WiseAction News 5/WMC-TV

A police report revealed a car buyer

intends to press theft charges against the

son of a woman who is fronting used car

sales from her home for a dealership, a

SUDFWLFH�FDOOHG�³FXUEVWRQLQJ�´%LOO�6XOOLYDQ�¿OHG�D�FRPSODLQW�ZLWK�WKH�

*HUPDQWRZQ��7HQQ��3ROLFH�'HSDUWPHQW�RQ�0D\��7KH�FRPSODLQW�DOOHJHG�KH�JDYH��WR�7KRPDV�&ROHPDQ��VRQ�RI�'HERUDK�&ROHPDQ��WR�SXUFKDVH� three vehicles.

:KHQ�WKHLU�GHOLYHU\�ZDV�GHOD\HG��

6XOOLYDQ�SUHVVXUHG�&ROHPDQ�WR�SURGXFH�WKH�FDUV¶�VDOHV�GRFXPHQWV��2QFH�&ROHPDQ�¿QDOO\�SUHVHQWHG�WKH�VDOHV�GRFXPHQWV��Sullivan said they revealed something else.

³7KH�FDUV�ZHUH�QHYHU�SXUFKDVHG�E\�WKHP�RQ�P\�EHKDOI�´�6XOOLYDQ�VDLG��³7KH\�ZHUH�SXUFKDVHG�E\�VRPHERG\�HOVH�´

According to the sales documents, that

³VRPHERG\�HOVH´�ZDV�7KH�$XWR�&RQQHFWLRQ��DQ�DXWR�GHDOHUVKLS�DW��(��%URDGZD\�6W��LQ�:HVW�0HPSKLV��$UN�

Sullivan’s police report alleged

&ROHPDQ�SRFNHWHG�KLV��DQG�QHYHU�purchased any cars with his money.

7KH�FDUV�WKH�&ROHPDQV�FODLPHG�WR�KDYH�purchased with his money, Sullivan said,

were actually cars they sold on behalf of

7KH�$XWR�&RQQHFWLRQ�³&RUUHFW�´�6XOOLYDQ�DFNQRZOHGJHG��³7KH\�

VSOLW�WKH�SUR¿WV�´7KH�$FWLRQ�1HZV��,QYHVWLJDWRUV�

SLQSRLQWHG�'HERUDK�&ROHPDQ�DV�D�curbstoner when the vehicle history

WUDFNHU�&$5)$;�ZDUQHG�WKDW�XQOLFHQVHG�or unforthcoming auto dealers have agents

SRVLQJ�DV�SULYDWH�VHOOHUV�RQ�&UDLJV/LVW�DQG�LQ�FODVVL¿HG�DGV�³6RPHZKHUH�EHWZHHQ��DQG��SHUFHQW�

RI�>DXWR�VDOHV@�FODVVL¿HG�DGV�DUH�EHOLHYHG�WR�EH�FXUEVWRQHUV�´�&$5)$;¶V�&KULV�%DVVR�VDLG��³7KHVH�DUH�GHDOHUV�SRVLQJ�DV�SULYDWH�sellers who are selling cars that have a lot of

KLGGHQ�SUREOHPV�´&ROHPDQ�KDV�SRVWHG�QXPHURXV�OLVWLQJV�

IRU�XVHG�FDU�VDOHV�RQ�&UDLJV/LVW��DOO�IRXQG�while running searches based on her

cellphone number.

.D\FH�:\DWW�RI�$UOLQJWRQ��7HQQ��DQVZHUHG�RQH�RI�&ROHPDQ¶V�DGV�IRU�D��1LVVDQ�0D[LPD��WKLQNLQJ�&ROHPDQ�ZDV�the vehicle’s private owner putting it up

for sale.

6KH�PHW�&ROHPDQ�DW�&ROHPDQ¶V�home. That’s where the car was stored,

:\DWW�VDLG�After taking a test drive and negotiating

the deal – but failing to run a vehicle

history report or to have the car inspected

±�:\DWW�SDLG��IRU�WKH�FDU��DFFRUGLQJ�to the paperwork.

,W¶V�ZKHQ�&ROHPDQ�KDQGHG�:\DWW�WKH�

WLWOH�WKDW�:\DWW�UHDOL]HG�VRPHWKLQJ�ZDV�XS�³,�JRW�WKH�WLWOH��DQG�LW�VDLG��µ7KH�$XWR�

&RQQHFWLRQ�¶�´�:\DWW�VDLG�The dealership, owned by Jimmy Smith,

is licensed with the Arkansas State Police

to sell used cars in Arkansas.

But according to the records of the

7HQQHVVHH�0RWRU�9HKLFOH�&RPPLVVLRQ��7KH�$XWR�&RQQHFWLRQ�LV�QRW�OLFHQVHG�WR�VHOO�FDUV��new or used, in Tennessee.

,W�ZDVQ¶W�ORQJ�XQWLO�:\DWW�VWDUWHG�KDYLQJ�WURXEOH�ZLWK�WKH�0D[LPD��7KH�³6HUYLFH�(QJLQH�6RRQ´�OLJKW�VWD\HG�RQ��7KH�UDGLR¶V�power switch malfunctioned. The brakes,

pads, rotors, spark plug and oxygen sensor

had to be replaced.

She nearly paid as much to repair the car

as she did to buy the car.

If she had run a vehicle history report,

she would have discovered The Auto

&RQQHFWLRQ�KDG�'HERUDK�&ROHPDQ�FXUEVWRQH�:\DWW�D�FDU�WKDW�KDG�EHHQ�LQ�DQ�DFFLGHQW�LQ�0LFKLJDQ�1HLWKHU�&ROHPDQ�QRU�7KH�$XWR�

&RQQHFWLRQ�GLVFORVHG�WKH�DFFLGHQW WR�:\DWW�³6R�LW¶V�EHHQ�ZUHFNHG�´�:\DWW�VDLG��³,�

cried and cried and cried about it, but I had

to do what I had to do. I didn’t have a way

RXW�RI�LW�´An undercover producer of The Action

1HZV��,QYHVWLJDWRUV�DQVZHUHG�RQH�RI�&ROHPDQ¶V�DGV�IRU�D�9RONVZDJHQ�-HWWD��7KH�WHVW�GULYH�UHYHDOHG�WKH�³6HUYLFH�(QJLQH�6RRQ´�OLJKW�ZDV�RQ�³7KDW¶V�EHFDXVH�LW¶V�GXH�IRU�DQ�RLO�

FKDQJH�´�&ROHPDQ�VDLG�WR�RXU�SURGXFHU��$�&$5)$;�UHSRUW�UHYHDOHG�QRWKLQJ�RI�concern with the vehicle’s history.

%RWK�WKH�-HWWD�DQG�D�&DGLOODF�&ROHPDQ�was selling outside her home had Arkansas

GHDOHU�WHPSRUDU\�WDJV��:KHQ�RXU�SURGXFHU�DVNHG�DERXW�WKH�RXW�RI�VWDWH�WDJV��&ROHPDQ�admitted she was selling the vehicles for

7KH�$XWR�&RQQHFWLRQ�³>7KH@�EXVLQHVV�LV�RYHU�LQ�$UNDQVDV��DQG�

it just saves all the [document] fees, and it

VDYHV�PH�DERXW��GROODUV�SHU�FDU�´�VDLG�&ROHPDQ��ZKR�LV�DOVR�QRW�OLFHQVHG�to sell automobiles in Tennessee, according

to state records.

C O N T I N U E D O N PAG E 1 2

U N L I C E N S E D O R U N FO R T H C O M I N G D E A L E R S H AV E AG E N T S P O S I N G A S P R I VAT E S E L L E R S O N I N C L A S S I F I E D A D S .

IN_0712.indd 10 6/20/12 11:03 AM

IN_0712.indd 11 6/20/12 11:03 AM


12


$FFRUGLQJ�WR�WKH�7HQQHVVHH�&RGH�$QQRWDWHG��³LW�LV�XQODZIXO�IRU�any person to engage in business … as a

motor vehicle dealer [or] motor vehicle

VDOHVSHUVRQ��ZLWKRXW�¿UVW�REWDLQLQJ�D�OLFHQVH�DV�UHTXLUHG�LQ�WKLV�SDUW�´³7HQQHVVHH�ODZ�VD\V�WKDW�LI�\RX�VHOO�PRUH�

WKDQ�¿YH�YHKLFOHV�LQ�D�\HDU��\RX�KDYH�WR�KDYH�D�GHDOHU¶V�OLFHQVH�´�%DVVR�VDLG��³7KHVH�are people who are skirting that law,

selling hundreds of cars without getting a

dealer’s license, costing the state and local

GHDOHUV�KXQGUHGV�RI�WKRXVDQGV�RI�GROODUV´�in tax revenue.

&ROHPDQ�UHIXVHG�WR�DQVZHU�TXHVWLRQV�ZKHQ�FRQIURQWHG��6PLWK�DJUHHG�WR�DQ�RQ�camera interview, then abruptly canceled

the interview the next day.

2Q�WKH�SKRQH��KH�VDLG�&ROHPDQ�³LV�P\�agent. She sells cars for me. Sometimes

it’s from her own driveway. Sometimes it’s

from a [drug store] parking lot. She’s just

WU\LQJ�WR�IHHG�KHU�NLGV�´Germantown police department records

revealed another car buyer reported

&ROHPDQ�LQ�'HFHPEHU��According to the complaint, the buyer

EOHZ�WKH�ZKLVWOH�RQ�&ROHPDQ�DIWHU�KH�VDLG�he witnessed her and her son altering

D�WHPSRUDU\�GULYH�RXW�WDJ�RQ�D�YHKLFOH��&ROHPDQ�WROG�WKH�SROLFH�RI¿FHU�ZKR�ZURWH�

the report that she sold the car on behalf of

6WDU�$XWR�0DUW��LQ�&ROOLHUYLOOH��7HQQ�³1R��VLU�´�6WDU�$XWR�0DUW�RZQHU�'DYLG�

)OHPLQJ�VDLG��³6KH¶V�QHYHU�VROG�IRU�PH��Never had a salesman’s license here. Never

DQ\WKLQJ�´Germantown police determined there

ZDVQ¶W�HQRXJK�HYLGHQFH�WR�FKDUJH�&ROHPDQ�with a crime and decided it was a civil issue.

³,W¶V�D�ORVH�ORVH�VLWXDWLRQ�ZLWK�FXUEVWRQLQJ�´�%DVVR�VDLG��³7KH�VWDWH�ORVHV�money. The [licensed] dealers lose money

and the consumer gets ripped off.

³,I�\RX¶UH�ORRNLQJ�RQOLQH��HVSHFLDOO\�WKURXJK�VLWHV�OLNH�&UDLJV/LVW��\RX�UHDOO\�need to be careful about what you’re

EX\LQJ�´&ROHPDQ¶V�FXUEVWRQLQJ�RSHUDWLRQ�PD\�

be in violation of a Germantown city

RUGLQDQFH�WKDW�SURKLELWV�³UHFHLYLQJ�SHUVRQV�at a residential property for the purpose

of buying, selling, ordering or picking up

SURGXFWV�LQ�FRQQHFWLRQ�ZLWK�D�EXVLQHVV�´³&RGH�FRPSOLDQFH�KDV�KDG�FRQWDFW�ZLWK�

>&ROHPDQ@�LQ�WKH�SDVW�´�VDLG�6WDFH\�(ZHOO��spokesperson for the city of Germantown.

³:H�GLG�SURYLGH�QRWLFH�IRU�XQOLFHQVHG�YHKLFOHV�LQ�WKH�VWUHHW�LQ�1RYHPEHU�RI��EXW�KDYH�QRW�KDG�DQ\WKLQJ�YHKLFOH�UHODWHG�since. In addition, there is no business

OLFHQVH�IRU´�&ROHPDQ¶V�DGGUHVV��

C O N T I N U E D F RO M PAG E 10 | CARFAX Helps TV Station Take Aim at Curbstoner

Used car dealers have become less

aggressive in bidding for inventory at

wholesale auctions in recent weeks, Black

Book vice president and managing editor

5LFN\�%HJJV�VDLG�Beggs noted that the retail market

has backed off slightly and dealers have

gotten less aggressive with bidding

activity for the latest model years. Every

car segment showed rate of decline and

only two truck segments – compact

689V�DQG�IXOO�VL]H�FURVVRYHUV�±�ZHUH�XS�LQ�0D\��³:KLOH�WKHUH�DUH�VHDVRQDOLW\�WUHQGV�

currently taking place in the retail

markets, we’re starting to see hesitance

RI�GHDOHUV�WR�UH¿OO�XVHG�FDU�DQG�WUXFN�LQYHQWRU\�´�%HJJV�VDLG��³6RPH�RI�WKH�rental companies are pushing a few more

models into the market with a lesser

GHPDQG�IRU�WKH��V�DQG��PRGHOV��thus getting less aggressive bidding

DFWLYLW\�IRU�WKH�ODWHVW�PRGHO�\HDUV�´��

I N D U S T RY C O R N E R

Rising Sales Lift Floorplans5LVLQJ�8�6��QHZ�DQG�XVHG�DXWR�VDOHV�

KDYH�ERRVWHG�GHDOHUVKLS�SUR¿WV�LQ��and are strengthening already solid

SHUIRUPDQFH�RI�GHDOHU�ÀRRUSODQ�DVVHW�EDFNHG�VHFXULWLHV��WKH�¿QDQFLDO�UDWLQJV�service Fitch reported.

'HDOHU�ÀRRUSODQ�DVVHW�SHUIRUPDQFH�has been solid this year, with most

trust performance metrics at some of

the strongest levels seen in the sector.

0RQWKO\�SD\PHQW�UDWHV�DUH�HOHYDWHG�above historical levels, dealer inventory

agings are very low and dealer defaults

are at record lows for most of the trusts.

Given the favorable conditions

currently supporting U.S. auto

dealership networks, Fitch’s outlook for

both asset and ratings performance in

��LV�VWDEOH��The report also discusses the health

RI�8�6��DXWR�GHDOHUVKLSV�LQ��including sales levels, expenses and

SUR¿WDELOLW\��DORQJ�ZLWK�GHWDLOLQJ�RWKHU�¿QDQFLDO�GHDOHU�PHWULFV�DQG�RYHUDOO�industry health.

7KH�UHSRUW��³8�6��'HDOHU�)ORRUSODQ�$%6��5REXVW�'HDOHUV�LQ��´�LV�DYDLODEOH�DW�ZZZ�¿WFKUDWLQJV�FRP��

Pace of Dealers Adding Inventory Slows

IN_0712.indd 12 6/20/12 11:03 AM


13


Absolute Surety, LLCBlair AshtonP.O. Box 547898Orlando, FL 32854Phone: 855.689.5106

Affordable Computer SystemsIvan Dalewww.acsds.com

800-488-9992

AFCRyan Lewis317.453.1172

Auction AccessRobinson Adams InsuranceDealer BondsTom AdamsDebbie Thompson800-239-1327

Automotive Credit Corp.Tony Stallworth26261 Evergreen Road, Ste. 300South!eld, MI 48076

888-268-1400

Auto Services Co., Inc.Susan WilliamsClayton Morgan800-442-7116

AutoStarSolutionsEdward ViatorPhone: 817.439.6164

autostarsolutions.comautostarsolutions.com

Auto ZoneKevin Kravig317.681.4273

BidzpinShawn Foster1281 Winhenstschel Blvd.West Lafayette, IN 47906Phone: 765.479.0191

Briggs Insurance AgencyTim Briggs4000 W. Lincoln Hwy.Merrillville, IN 46410

219-769-4840

Cars.com175 W. Jackson Blvd., 8th FloorChicago, IL 60604dealers.cars.com800-298-1460

CAR Financial Services, Inc.Thomas Lloydwww.car!nancial.com

!nancial.com859-630-2606

Carsforsale.comAaron OestreichPhone: 605.306.3302

sale.comWebsite: Carsforsale.com

Chase Custom FinanceDon Williams and Mike Smith317-523-4273

Clear Choice Merchant ServicesReno, NVLaurie Gruen, Corporate Analyst, ext. 6881

choice.com

Lorraine Onesian, VP Business Developmen ext. 6880

choice.comwww.myclearchoice.com866-779-4787

Consolidated Automotive Services of IndianaChris Walsh59 East Main Street, Suite NNashville, IN 47448(812) 988-8300

services.com

Consumers InsuranceMike Hogan7830 Edge Manor Ct.Indianapolis, IN 46239317.450.9946

CVR Computerized Vehicle RegistrationJohn Roeder636.447.8351

Dealer TrackDiane Zewalk115 Pohesanut Drive Suite 201Groton, CT 06340

860.448.3177

Diamond Warranty Corp.Jim Limongelli9 N Main StreetPittston, PA 18640800.384.5023

Diversi!ed Marketing Strategies, Inc.Andrea Pearman1330 Arrowhead Ct.Crown Point, IN 46307(219) 226-0300

Donn Wray Attorney at LawStewart & Irwin, P.C.251 E. Ohio St., Suite 100Indianapolis, IN 46204

317-639-5454

Drive1USABruce Norton1512 W. 96th Ave., Suite CCrown Point, IN 46307

219-661-1000

Envirotest SystemsJennifer Kharchaf1171 Breuckman Drive, Suite BCrown Point, IN 46307

888.240.1684

Express Motor Vehicle AdministrationDoug Pillow3960 Southeastern Ave.Indianapolis, IN 46203Phone: 317.322.0020

Frazer Computing, Inc.Michael Frazerwww.frazercomputing.com888-963-5369

GoldStar GPSMark Behne2035 Lakeside CentreKnoxville, TN1-866-655-8825

GWC WarrantyCarmie Fruits, Indiana Representative

-warranty.com317-374-6271

Sales SupportP. O. Box 68Avoca, PA 18641-0068800-482-7357, ext. 767

Heritage-Crystal CleanJim Skelton2250 Point Blvd. Ste. 250Elgin, IL 60123(847) 836-5670

-clean.com

Heritage Financial Acceptance Corp.Curt Holmes121 S. Main StreetElkhart, IN 46516

www.heritageacceptance.net

Insurance ProfessionalsMike Lee317-432-1092

Keystone Insurers GroupFor All Your Insurance NeedsLori Simpson

888-826-0079

Kincaid InsuranceDan Kincaid321 Main StreetRockport, IN 47635812.649.5739

Lincolnway Insurance ServicesDealer Bonds & Garage KeepersGregg St. Germain336 E. Lincoln Hwy.Schererville, IN 46375

insurance.com219.865.2227

Nationwide AcceptanceSub-Prime Financingwww.nac-loans.comBonnie Herden773-777-7600, ext. 1295

Penn Warranty Corp.Jude TumaMichael Roe1081 Hanover St.Wilkes Barre, PA 18706www.pennwarranty.com

pennwarrantycorp.com800-356-9441

Preferred Warranties, Inc.Gregg Reidenbach260-341-6675Guy Loef"er313-283-0114

800-548-1121

Reliable Auto FinanceBrian Chisholm954 28th St. SWGrand Rapids, MI 49509

!nanace.comwww.reliableauto!nance.com

Russel Kobel Insurance100 Tower Drive Suite 120Burr Ridge, IL 60527 708.935.6509

SEAL FINANCEJudy Terrell3830 E. Southport Road # 200Indianapolis, IN 46237

317-497-0473

Security Auto LoansJoe Ruhland4900 Hwy 169 N., Suite 205New Hope, MN(763) 559-5892Joe Ruhland

Sentry InsuranceRandy Dombrowski

sentry.com715-346-7272Mike Donovan

615-210-6344

Shirer Insurance ServicesAuto Owners-Dealer Bonds400 N. Main St.Crown Point, IN 46307Troy and Mari Shirer

219-663-7274

Smart AuctionJeff Kubickiwww.smartauction.biz

auction.biz812-455-7967

Surety Bonds.comMike Patzius1200 Rogers St., Suite CColumbia, MO 65202

Triumph ConsultingJack Haworth1606 N. Delaware St.Indianapolis, IN 46202800-875-3137www.triumphconsulting.net

Vehicle Acceptance Corp.Joyce Butler12800 N. Meridan St. Ste. 400Carmel, IN 46032317.844.2599

VideoTirekicker.comJohn Commorato2413 N. MeridanIndianapolis, IN 46208(317) 466-0321

Wingham & AssociatesGary WinghamP.O. Box 1723Richmond, IN 47375(765) 977-3902

WORKS24Mark Hersch3508 French Park Drive, Suite 1Edmond, OK 73034

440.832.0445

Zurich Insurance Co.800-728-6049

ASSOCIATE MEMBERS IIADA Associate Membership is available to automotive related businesses. Please call 800-310-3112 for more information on Associate Memberships or see our Associate Membership Application in this issue.

18th and Main Autos*Stan HunleyLafayette

Autorama*Bill WareBeech Grove

C. Begley Auto Sales*Charles BegleySpencer

Carsforsale.com*Aaron OestreichSioux Falls

Greenwell Auto Sales*Ron GreenwellMuncie

Integrity Auto Sales*Anthony Dixon Sr.Brownsburg

J & Steve Auto Sales*Steven CarterIndianapolis

Munoz Auto Center*Benito MunozFrankfort

Rocky’s Auto Sales*Rocky StevensonLouisville

AAA AutomotiveWillie WrightHighland

Affordable Auto RentalRichard ShafferSouth Bend

Approval Auto CreditAndrew InabnittMartinsville

Autobarn Sales & LeasingDarlene P"eddererFrancesville

Car Stop of Terre HauteJohn EllisTerre Haute

Corporate Fleet ManagementMarcus DodrillMadison

Cruisin Auto SalesMarc GrayMadison

Curtis Auto SalesRobert CurtisIndianapolis

Del Real Automotive GroupTony Del RealFrankfort

East 30 Motor Co.Mike AdamsNew Haven

First Class Auto SalesDoug and Tina AlveyHebron

Gerton Auto SalesJohn GertonMt. Vernon

H & H Auto SalesAtom HilsmeyerThorntown

H.T.D.Harold DreesThorntown

Mike’s Auto SalesScott KidwellIndianapolis

Rodriguez Auto SalesHenberto RodriguezIndianapolis

Time MotorsRobin RedmanEvansville

Thank you for your membership in Indiana’s trade association for INDEPENDENT DEALERS

The following members have joined* or renewed their membership since our last issue of Car Lines.

A S S O C I AT I O N U P DAT E S

IN_0712.indd 13 6/20/12 11:03 AM


14


Participants’ Names:

1._____________________________________________________________________Company_________________________________________________________

2._____________________________________________________________________Company_________________________________________________________

3._____________________________________________________________________Company_________________________________________________________

4._____________________________________________________________________Company_________________________________________________________

No. of golfers_____________________ @ $ 95 _______________________________Total Enclosed_____________________________________________________

_____Check or money order included

TOURNAMENT-AWARDS DAY-TRADE SHOW

5HJLVWUDWLRQ�)HH��SHU�SHUVRQ��%UHDNIDVW�DQG�UHJLVWUDWLRQ��D�P�'LQQHU�DIWHU�JROI�LQFOXGHG��7HDP�$ZDUGV�WR��VW��QG�DQG��UG�SODFH��ORQJHVW�GULYH��FORVHVW�WR�WKH�SLQ��

ORQJHVW�SXWW��*ROI�FKDLUPHQ��)ULW]�.UHXW]LQJHU�DQG�'DYH�$OOHQ

IIADA GOLF

_____Visa _____ MasterCard Card No._________________________________________________Expiration Date_________________________________________

Name on Card (please print)_________________________________________________Address of Cardholder___________________________________________

Phone____________________________________________________________Card Holder’s Signature__________________________________________________

Participants’ Company:

25CELEBRATING 25 YEA

RS OF SERVICE

1987-2012

PLEASE REGISTER EARLY TO RESERVE YOUR PLACE!! !

IN_0712.indd 14 6/20/12 11:03 AM


15


Platinum – ��,QFOXGHVSponsorship of dinner and driving range Outing registration for foursome

Diamond – ��,QFOXGHVSponsorship of breakfastOuting registration for foursome

Gold – ��,QFOXGHVSponsorship of a beverage cartOuting registration for twosome

Silver- $ 600 IncludesSponsorship of closest to the pin, longest putt or longest drive

%URQ]H�²� ��,QFOXGHVSponsorship of golf hole

______ 3ODWLQXP�� ______ 'LDPRQG�� ______ *ROG�� ______ Silver $600 ______ %URQ]H�� ______ Total

YES! WE WANT TO BE A SPONSOR FOR THE IIADA 25TH ANNIVERSARY GOLF TOURNAMENT-AWARDS DAY-TRADE SHOW. PLEASE INDICATE THE SPONSORSHIP OF CHOICE.

([FHOOHQW�VSRQVRUVKLS�RSSRUWXQLWLHV�DUH�DYDLODEOH�IRU�RXU��WK�$QQLYHUVDU\�*ROI� 7RXUQDPHQW�$ZDUGV�'D\�7UDGH�6KRZ�HYHQW��6HSW��DW�,URQZRRG�*ROI�&OXE�LQ�)LVKHUV�

Market your company and support the Indiana Independent Automobile Dealers AssociationAll sponsors will be recognized at the tournament, on our website (iiada.com) and in our Car Lines publication

Payment by ______ Check ______ Visa ______ MasterCard ______

Credit Card Number_________________________________________________________________________ Expiration Date __________________________________

Contact Name:______________________________________________________________________________ Organizational Name:______________________________

Address:_____________________________________________________________________________________________________________________________________ City_____________________________________________________________________State___________________ Zip Code___________________________________

Phone __________________________________________________________________Signature____________________________________________________________

GOLF TOURNAMENTSPONSORSHIP OPPORTUNITIES

25CELEBRATING 25 YEA

RS OF SERVICE

1987-2012

PLEASE CALL 800.310.3112 OR EMAIL I [email protected] FOR DETAILS

IN_0712.indd 15 6/20/12 11:03 AM


16


16

Formula for Selling in the Dog Days of SummerThe dog days of summer are here. The

time to make hay while the sun was shining

has come and gone.

The typical Buy Here-Pay Here dealer

will sell 40-45 percent of his annual units

LQ�WKH�¿UVW�WKUHH�PRQWKV�RI�WKH�\HDU��+H�ZLOO�also realize about the same percentage of his

DQQXDO�SUR¿W�LQ�WKRVH�WKUHH�PRQWKV�So if you got off to a slow start in 2012,

the dog days of summer could be the only

way to salvage your year. Because we all

know the last three months are not time to

try to make your year.

Being able to sell in the dog days is really

no different than selling in the heydays.

The same four key ingredients to selling

are the same. The only difference is the

focus has to be there.

In the heydays, selling is pretty easy.

Customers have money. You have inventory.

All is right with the world. But come the dog

days, customers have less money. And they

VHHP�WR�EH�KDUGHU�WR�¿QG��7KH�¿UVW��DQG�PRVW�LPSRUWDQW��RI�WKH�

key ingredients to selling in the dog days

is training. Well-trained salespeople can

sell any time of year. You should always

be training your staff, always honing their

skills. Both phone training and basic sales

skills training should be done weekly, at a

minimum.

Work with staff on overcoming objections

– role-playing is a good way to accomplish

that. When it comes to phone training, work

on how to set effective appointments. Lot

WUDI¿F�LV�DW�D�SUHPLXP�GXULQJ�WKH�GRJ�GD\V��so your people had better know how to

effectively handle it.

The second ingredient is appearance.

Now, I’m not necessarily talking about your

employees’ appearance, which should always

be neat and professional, but your overall lot

appearance. The No. 1 reason customers list

as the reason they come in is “drive by.” So if

that is the case, why wouldn’t you want your

lot to look the best in town?

The lot should always be neat and

orderly, not with vehicles facing all four

directions of the compass and then some.

Vehicles should be spaced evenly, with a

good mix of colors and styles.

B E I N G A B L E T O S E L L I N T H E D O G DAYS I S R E A L LY N O D I F F E R E N T T H A N S E L L I N G I N T H E H E Y DAYS .

IN_0712.indd 16 6/20/12 12:01 PM


17


A lot party or lot rodeo should be done at

least once a week, if not more. It will really

go a long way to making your lot look fresh.

You should consider the vehicles on your lot

your mannequins and treat them the way

¿QH�GHSDUWPHQW�VWRUHV�WUHDW�WKHLUV��.HHS�them fresh, neat, clean and always ready to

sell. That goes for overall lot appearance as

well. A fresh coat of paint and some weed

killer can do wonders.

Marketing is the next key ingredient.

$JDLQ��ZLWK�WUDI¿F�EHLQJ�DW�D�SUHPLXP��this is the time when repeat and referral

programs really pay dividends. It’s a good

time of year to focus on referrals, not just

with your customer base but with outside

companies and people as well. If you are not

already paying referrals to non-customers,

it’s something you should seriously

consider. I can assure you some, if not all, of

your competitors are.

Marketing also extends to your web

presence. Make sure your website is up

to date, especially if you are displaying

inventory. I was on a dealer client’s website

the other day and he had pictures of some

of his inventory with snow on it.

In addition to the inventory, make sure

all other aspects of your site are up to date.

That includes any advertised specials, about

us sections and employee introduction

sections. You wouldn’t want someone

calling or coming in asking for someone or

something that is no longer there.

The last key ingredient in the dog days

selling formula is advertising. In this very

competitive industry, advertising in some

form or fashion is almost a must. The thing

that makes advertising effective is reaching

the right folks with the right message.

The two most popular media are, of

course, television and radio. There is a

thought people watch less television and

listen to more radio in the summer, but

that is just not the case. Studies have shown

television viewing doesn’t drop off at all

during the summer, and the same goes for

radio listening.

The important thing to remember

about advertising on both those media is

to remember you are not your customer,

so don’t advertise to yourself. Chances

are your customers watch different

television stations and listen to different

radio stations than you do, so make sure

the stations you are on are the ones your

customers are watching and listening to.

Customer surveys from new and existing

customers are the best way to gauge their

entertainment preferences. Simply put,

just ask.

As with marketing, your web presence

is also a way to advertise. The use of your

website, as well as Facebook and even

Twitter can be ways to get your message

out. I wouldn’t necessarily count on those

selling more cars, but they are perfect

ways to advertise new inventory or special

sales promotions.

The formula for selling in the dog days

is the same as selling in the heydays. It

just takes a little more attention to detail.

There are usually fewer opportunities in

the dog days, so capitalizing on them is

much more important.

Remember, the two most important

ingredients in the formula are the two

most inexpensive. Hopefully, you have

the right mix of all the ingredients to keep

the dogs at bay.

BY BRENT CARMICHAELEXECUTIVE CONFERENCE MODERATORNCM ASSOCIATES [email protected]

IN_0712.indd 17 6/20/12 11:17 AM


18


At the recent National Alliance of Buy

+HUH�3D\�+HUH�'HDOHUV��1$%'��'HDOHU�$FDGHP\�LQ�/DV�9HJDV��1,$'$�DQG�1$%'�jointly announced the details of their

LQDXJXUDO�%+3+�&HUWL¿HG�0DVWHU�'HDOHU�training program, scheduled to be held in

September in Dallas.

Though NIADA has been conducting

LWV�VXFFHVVIXO�&HUWL¿HG�0DVWHU�'HDOHU�retail program for several years, this new

LQLWLDWLYH�PDUNV�WKH�LQGXVWU\¶V�¿UVW�%+3+�FHUWL¿FDWLRQ�SURJUDP�

At a very important time, during

which the BHPH industry faces many

challenging legal and regulatory issues,

WKLV�FHUWL¿FDWLRQ�SURJUDP�LV�GHVLJQHG�WR�KHOS�HVWDEOLVK�QHZ�RSHUDWLQJ�DQG�¿QDQFLDO�standards for industry leaders. Participants

in the inaugural training program must

meet certain operational standards,

including, but not limited to:

��Five years of successful operating

performance

��0HPEHUVKLS�LQ�JRRG�VWDQGLQJ�LQ�1,$'$��NABD or both

��+DYLQJ�D�FKLHI�FRPSOLDQFH�RI¿FHU��$I¿UPLQJ�WKDW�DOO�GHDOHUVKLS�RSHUDWLRQDO�

documents and transactional forms

have had a positive legal and compliance

UHYLHZ�IURP�D�TXDOL¿HG�DWWRUQH\��0DLQWDLQLQJ�¿QDQFLDO�VWDWHPHQWV�

prepared in accordance with generally

accepted accounting principles.

In addition, the dealer’s historical

performance must approximate the key

industry benchmarks published annually

by NABD and Subprime Analytics for

debt/equity ratio, allowance for bad

debts, average cash in deal, average gross

SUR¿W�SHU�YHKLFOH�VROG��DYHUDJH�SRUWIROLR�

delinquency, average net loss per charge off

and average default rate.

A complete copy of the most recent

BHPH industry benchmarks can be

downloaded free at www.subanalytics.com

or by obtaining a copy of NIADA’s Used

&DU�,QGXVWU\�5HSRUW�IRU��IRU�PRUH�information, visit www.niada.com.

The eligibility criteria were established

with an emphasis toward encouraging

compliance with all industry laws and

UHJXODWLRQV��SUXGHQW�¿QDQFLDO�PDQDJHPHQW�and successful operating performance, and

sound systems and processes. Those traits

will distinguish graduates to both capital

providers and their industry peers.

The inaugural session is planned for

��GD\V�DW�D�WUDLQLQJ�VLWH�LQ�WKH�'DOODV�area to be announced in the near future.

The program goal is to provide training

B H P H C E R T I F I E D M A S T E R D E A L E R P RO G R A M S E T T O K I C K O F FBHPH Perspectives

Fastenal, a national distributor of industrial and construction supplies, has introduced an expense reduction program for auto dealerships to save owners time and money related to their shop supplies and essential tools.

The centerpiece is Fastenal’s FAST 6ROXWLRQV��LQGXVWULDO�YHQGLQJ�V\VWHP��7R�date, 8,000-plus machines have been installed to help organizations reduce supply consumption, move the cost of inventory to Fastenal, and increase worker productivity.

To access products, workers enter an ID code and a repair order number, then make a selection. If the request is authorized, the machine dispenses the product and automatically reports the details of the transaction, making workers accountable for what they use. Controls can also be established so that workers only have access to the products (and amounts) needed to do their jobs.

For more information, visit www.fastenal.com.

Fastenal Launches Expense Reduction Program

IN_0712.indd 18 6/20/12 11:03 AM


19


for outstanding operators in the BHPH

industry. As a result of the training and

their commitment to ethical practices and

high business standards, graduates should

become even more successful.

%HFRPLQJ�D�%+3+�&HUWL¿HG�0DVWHU�Dealer is recognition of a dealer’s dedication

to the industry and his or her record of

proven stability, reliability and ethical

business practices.

The instructors include several of the

nation’s leading experts and most successful

operators. The course curriculum provides

interactive training and networking and

will initially include:

��Economic overview, benchmarks and

trends

��Financial management, accounting,

taxes and metrics

��9HKLFOH�DFTXLVLWLRQ�DQG�UHFRQGLWLRQLQJ��.HHSLQJ�YHKLFOHV�UXQQLQJ�DQG�

customers paying

��Sales and marketing strategies

�� Underwriting best practices

��&ROOHFWLRQ�EHVW�SUDFWLFHV��0D[LPL]LQJ�UHFRYHULHV��Legal and compliance

��Systems/processes/technology

��0XFK��PXFK�PRUHIt is contemplated that changes will

be made to the curriculum in the future

based on input from the participants. The

curriculum is designed for graduates to

enhance their management skills, improve

WKHLU�DGYHUWLVLQJ�DQG�¿QDQFLDO�PDQDJHPHQW��build more positive consumer relationships

and stay compliant.

Graduates will receive their BHPH

&HUWL¿HG�0DVWHU�'HDOHU�GHVLJQDWLRQ�DQG�XVH�RI�WKH�&0'�VHDO�IRU�D�SHULRG�RI��PRQWKV��(DFK�&0'�JUDGXDWH�PXVW�VXEVHTXHQWO\�REWDLQ�D�PLQLPXP�RI��FUHGLW�KRXUV�RI�1,$'$�1$%'�DSSURYHG�FRQWLQXLQJ�HGXFDWLRQ�GXULQJ�HDFK��PRQWK�SHULRG�LQ�

RUGHU�WR�UHWDLQ�WKH�GHVLJQDWLRQ��$W�OHDVW��hours of continuing education opportunities

will be offered throughout the year.

It is expected that some of these hours

can be earned by attending the NIADA

&RQYHQWLRQ�DQG�1$%'�WUDLQLQJ�HYHQWV��1$%'�ZLOO�KROG�DQ�(DVW�&RDVW�1DWLRQDO�%+3+�&RQIHUHQFH�LQ�$WODQWD�RQ�2FWREHU��7KH�%+3+�EXVLQHVV�UHTXLUHV�VSHFLDOL]HG�

training and this program offers advanced

sessions focused on achieving operating and

¿QDQFLDO�H[FHOOHQFH��2SHUDWRUV�ZKR�VWULYH�WR�distinguish themselves from their industry

peers are urged to participate.

2SHUDWRUV�LQWHUHVWHG�LQ�SDUWLFLSDWLQJ�FDQ�obtain an application by calling NIADA at

��RU�HPDLOLQJ�JHRUJLD#QLDGD�FRP��E\�FRQWDFWLQJ�1$%'�DW��RU�E\�HPDLOLQJ�-RH�.HDUVH�DW�MRH#EKSKLQIR�FRP��6SDFH�LV�OLPLWHG��

.(11(7+ �6+,/621 � �&3$ � � ,6 �35(6,'(17 �2) �68%35,0(�$1$/< 7 ,&6 � �:::�68%$1$/< 7 ,&6 �&20� � �$ �&2168/7 ,1*�&203$1<�7+$7 �3529,'(6�3257)2/,2 �$1$/<6,6 �6(59,&(6 �$1'�&86720�&5(',7 �6&25,1*�62/87 ,216� �$1'� ,6 �35(6,'(17 �$1'�)281'(5�2) �7+( �1$7 ,21$/�

$// ,$1&( �2) �%8< �+(5(�3$< �+(5( �'($/(56� �:::�%+3+,1)2�&20� � �+( �&$1�%( �5($&+('�$7 �.(1#.(16+,/621 �&20� �83&20,1*�1$%'�C O N F E R E N C E S I N C LU D E T H E E A S T C OA S T B H P H C O N F E R E N C E AT T H E G E O RG I A I N T E R N AT I O N A L C O N V E N T I O N C E N T E R I N AT L A N TA O N

2&72%(5�� )25�025(� ,1)250$7,21 � �9 ,6 ,7 �:::�%+3+,1)2�&20�25�&$// � ��

BY KENNETH SHILSON

IN_0712.indd 19 6/20/12 11:03 AM


20


C O N T I N U E D O N PAG E 2 2

For independent dealers, having a

service department isn’t something

that should be taken lightly.

Not all dealerships offer service – it

isn’t for everybody – but for those

that do it should be an integral part of

the business, used to give the dealer

an opportunity to attract, retain and

better understand customers.

Joe Lescota, the NIADA’s new

director of dealer development, said

he knows many dealers who lose

money in the service department

because the money that comes in

through service goes into one big pot.

³7KHUH¶V�D�ZKROH�SURFHVV�LQ�RSHUDWLQJ�D�VHUYLFH�GHSDUWPHQW�´�said Lescota, the longtime instructor

IRU�1,$'$¶V�&HUWL¿HG�0DVWHU�'HDOHU�SURJUDP��³'HDOHUV�WKLQN�WKH\�DUH�selling service when what they’re

really doing is selling time.

³$�GHDOHUVKLS�RQO\�KDV�VR�PDQ\�hours in the day to operate. So a dealer

should take the number of techs he

has and multiply that number by the

number of hours in operation. So a

GHDOHU�PLJKW�KDYH��KRXUV�D�GD\�RI�WLPH�WR�VHOO��)URP�D�SUR¿W�VWDQGSRLQW��it doesn’t matter if the dealer is

FKDQJLQJ�RLO�RU�GURSSLQJ�DQ�HQJLQH�´Doug and Nyla Borgmann, owners

RI�&UHLJKWRQ�$XWR��,QF��LQ�&UHLJKWRQ��Neb., manage to keep their mechanic

and their body man pretty busy,

which is good for their business.

That means doing repairs for

everyone, not just customers.

³2IIHULQJ�VHUYLFH�ZRUNV�IRU�XV�´�

'RXJ�%RUJPDQQ�VDLG��³:H�DGYHUWLVH�on our store sign. Service accounts

IRU�EHWZHHQ��DQG��SHUFHQW�RI�EXVLQHVV��2XU�PHFKDQLF�KDV�EHHQ�ZLWK�XV�VLQFH�WKH�HDUO\��V��+H¶OO�UHWLUH�LQ�IRXU�RU�¿YH�\HDUV�DQG�WKDW�KDV�PH�ZRUULHG��5HSODFLQJ�KLP�ZLOO�EH�KDUG��2XU�ERG\�PDQ�KDV�EHHQ�ZLWK�XV�IRU�about three years. Before getting him,

we had a hard time getting someone

IXOO�WLPH�WR�GR�RXU�ERG\�ZRUN�´-�5��:HVWEURRN��RZQHU�RI�7\UR�

$XWR�6DOHV�LQ�%D\�&LW\��7H[DV��KDV�been offering service at his store

VLQFH��+H�GRHV�RXWVLGH�ZRUN�LQ�addition to working on the cars of

customers, but he doesn’t advertise.

He depends on word of mouth.

:HVWEURRN�KDV�NHSW�KLV�WHFKQLFLDQ�for years, operating on the theory that

it’s easier to keep the person you have

KDSS\�WKDQ�JR�RXW�DQG�¿QG�QHZ�SHRSOH�Staff is a key component to offering

a good service department.

Getting good help was one of

WKH�UHDVRQV�5DQG\�<DWHV��RZQHU�RI�<DWHV�0RWRUV�LQ�*HULQJ��1HE��closed his service center.

<DWHV�LV�D�WKLUG�JHQHUDWLRQ�GHDOHU��His lot has been around for 66

years, and for much of that time, it

offered service. Eventually, though,

it wasn’t worth the trouble.

³:H�JRW�ULG�RI�RXU�ROG�VHUYLFH�FHQWHU��PXVW�EH�DURXQG�QLQH�\HDUV�DJR�´�<DWHV�VDLG��³,W�ZDV�KDUG�JHWWLQJ�DQG�NHHSLQJ�good people. I’d train people and

they would get the skills they needed

to do the job. But then they’d go to

dealerships, often franchise operations,

that would pay better wages and I’d

KDYH�WR�VWDUW�WKH�SURFHVV�DOO�RYHU�DJDLQ�´<DWHV�VDLG�KH�UHDOL]HG�KH�ZDV�EHWWHU�

off if he stuck to what he did best –

sell cars. Now he sends his cars to

EH�¿[HG�E\�SHRSOH�ZKR�GR�ZKDW�WKH\�do best – repair and recondition

cars. By letting the work get done

by specialists, he doesn’t have to

bother with the hassle of hiring and

training technicians, then replacing

them as they leave his business.

Yates said he ended up spending a lot

of time trying to drum up business for

his mechanics instead of selling cars.

³,I�WKH�PHFKDQLFV�DUHQ¶W�EXV\�DOO�WKH�time, then they aren’t making as much

PRQH\�DV�WKH\�FRXOG�EH�´�<DWHV�VDLG��³,W�¿QDOO\�FDPH�WR�WKH�SRLQW�ZKHUH�LW�EHFDPH�WRR�PXFK�ZRUN�IRU�PH�WR�¿QG�work for them and for myself. Now I

have less headaches just selling the cars

DQG�IDUPLQJ�DQ\�PHFKDQLFDO�ZRUN�RXW�´He also didn’t have to keep up with

the expense of getting new equipment

all the time. For one thing, the types of

tools a service provider must own has

changed dramatically. Gone are the days

when a mechanic could do all his work

ZLWK�D�OLIW�DQG�VRPH�ZUHQFKHV��&DUV�QRZ�DUH�FRPSXWHUL]HG��DQG�GHDOHUV�DQG�VKRS�owners have to invest their own money

in the purchase of scanners and other

electronic devices used to communicate

with a vehicle’s electronics.

Lescota said Yates’ situation

UHÀHFWV�D�UHDOLW\�RI�RSHUDWLQJ�D�VHUYLFH�department – it’s not easy. But, he

A Service Department Can Be a Big Edge for Dealers Willing to Make the Commitment

B AC K T O T H E B A S I C S : G O A L L I N

IN_0712.indd 20 6/20/12 11:03 AM

IN_0712.indd 21 6/20/12 11:04 AM


22


added, the payoff can be tremendous

when the job is done right.

³,W¶V�DOZD\V�D�FKDOOHQJH�WR�JHW�JRRG�WHFKQLFLDQV�´�/HVFRWD�VDLG��³6R�,�VXJJHVW�WKDW�GHDOHUV�JR�WKH�technical schools and start grooming

technicians before they even graduate.

Also, you have to give someone a

UHDVRQ�WR�VWD\�DW�\RXU�GHDOHUVKLS�Úsually that means giving them

enough to do. As Yates discovered,

if technicians don’t have enough to

do, they’ll go somewhere where their

skills will be in more demand.

It might also mean giving them

more money. After all, technicians

have to eat too, Lescota said.

³:KHQ�,�KHDU�WKDW�D�GHDOHU�FDQ¶W�NHHS�D�WHFKQLFLDQ��P\�WKRXJKWV�¿UVW�UXQ�WR�him not getting either enough work

RU�HQRXJK�PRQH\�´�/HVFRWD�VDLG��³$QG�you can’t cheat on the equipment. It’s

the cheap man who pays the most for

things. By trying to save money on

new equipment needed to work on

WRGD\¶V�FRPSXWHUL]HG�FDUV��D�GHDOHU�will end up having to spend a lot of

money trying to keep technicians.

³3HRSOH�OLNH�WR�ZRUN�LQ�FRPIRUWDEOH�environments and technicians are

no different from anyone else. I

always say if a dealer can’t keep good

mechanics, it can usually be traced

back to poor lighting, poor parts

and poor work conditions. There’s a

demand for technicians and they’ll go

ZKHUH�WKH\�IHHO�PRVW�FRPIRUWDEOH�´Having a service department is a full

commitment, Lescota said. And getting

good technicians is a competitive sport

EHWZHHQ�GHDOHUV��0D\EH�WKDW�WHFK�OHIW�WR�go to a franchise operation because the

boss there promised to send him to an

$6(�FHUWL¿HG�SURJUDP��ZKHUH�WKH�WHFK�could improve his skill set. Independent

dealers should consider similar actions.

%LOO�(OOLII��RZQHU�RI�(OOLII�0RWRUV�in Harlingen, Texas, is an example

of a dealer who is committed to

his service department. His lot

provides a full variety of services,

DQG�KH�ORQJ�DJR�UHDOL]HG�WKDW�LQ�order to have a service department,

he had to have enough service work

to keep his employees busy.

To better service his customers,

his dealership can do anything from

changing oil to engine replacement.

He owns a couple of lots with a total

RI�VHYHQ�VHUYLFH�ED\V�DQG��SHRSOH�working them. He advertises in print

and on the signage around his lots.

+H�VDLG�¿QGLQJ�TXDOL¿HG�SHRSOH�LVQ¶W�WKDW�KDUG��)LQGLQJ�TXDOL¿HG�SHRSOH�ZKR�are dependable and can be counted

on to show up on time ready to work

every day is the tough part, Elliff said.

But the effort is worth it. By hiring

the right people, a dealer can have

a service department that drives

potential customers to the store,

(OOLII�VDLG��:KLOH�WKH\¶UH�JHWWLQJ�WKHLU�car worked on, many of his service

customers will wander around the lot

DQG�WDNH�D�ORRN�DW�LQYHQWRU\��0D\EH�that person is looking for something

new, and if he sees something he

likes that service customer can be

converted into a vehicle customer.

Elliff estimates his service department

DFFRXQWV�IRU�DERXW��SHUFHQW�RI�KLV�total business. He said some of his

IHOORZ�GHDOHUV�GRQ¶W�UHDOL]H�WKDW�D�VHUYLFH�department has to be able to make it on

its own. It shouldn’t be a loss leader.

Additionally, he sees dealers

DFWXDOO\�VKRUW�FKDQJLQJ�WKHPVHOYHV�when it comes to pricing their cars.

A dealer might, for example, put

��ZRUWK�RI�UHFRQGLWLRQLQJ�LQ�D�FDU�KH�ERXJKW�IRU��VD\��:KHQ�it comes time to price the car, he’ll

ZDQW��SUR¿W��6R�KH¶OO�SULFH�WKH�YHKLFOH�DW��(OOLII�VDLG�

That’s a mistake. Any work put

into a vehicle using the dealership’s

own service department should be

UHÀHFWHG�SRVLWLYHO\�LQ�WKH�SULFH�RI�WKH�YHKLFOH��,I��RI�ZRUN�ZDV�SXW�LQWR�the car, that should translate into

DGGLQJ��VD\��WR�WKH�EDFN�HQG�value of the vehicle. So that car should

EH�SULFHG�DW��QRW��³$V�DQ�RZQHU��\RX�KDYH�WR�SXW�WKH�

money in to develop the infrastructure

needed to run a good service

GHSDUWPHQW�´�(OOLII�VDLG��³7KDW�PHDQV�having the latest diagnostic equipment.

But if you charge right for your services,

\RX�ZLOO�DOZD\V�FRPH�RXW�DKHDG�Últimately, having a good service

department should mean more than

another revenue source, Lescota

said. By having a service department

aimed at serving the public at large

and not just his current customer

base, Elliff is bringing in new potential

buyers to look at his inventory.

He’s creating a captive audience.

But a good service department can

GR�HYHQ�PRUH��:KHQ�D�FXVWRPHU�EULQJV�in a car, a dealer can glean all sorts

of information about the customer.

,W¶V�EXLOW�LQ�PDUNHW�UHVHDUFK�³7KH�VPDUW�GHDOHU�VKRXOG�QRZ�NQRZ�

DOO�VRUWV�RI�WKLQJV�DERXW�WKDW�FXVWRPHU�´�/HVFRWD�VDLG��³7KH�GHDOHU�VKRXOG�NQRZ�how that service customer uses his car.

Does he baby it or does he really run it

WKURXJK�WKH�ULQJHU�DQG�ZHDU�LW�RXW"�:LWK�that knowledge, the dealer can better

help the customer make an informed

decision on the best vehicle to buy when

LW�FRPHV�WLPH�WR�JHW�DQRWKHU�FDU�´By having a complete service

department, a dealer can get a

customer used to bringing his vehicle

WR�KLV�GHDOHUVKLS��1HHG�DQ�RLO�FKDQJH"�Bring the car to good old Joe’s. In an

DFFLGHQW"�+DYH�WKH�FDU�WRZHG�WR�-RH¶V��1HHG�VRPH�HQJLQH�ZRUN"�*R�WR�-RH¶V��³7KHUH�FRPHV�D�WLPH�LQ�HYHU\�FDU¶V�OLIH�

ZKHQ�LW�EHFRPHV�FRXQWHU�SURGXFWLYH�to keep putting more money in that

YHKLFOH�´�/HVFRWD�VDLG��³,I�\RX�KDYH�D�good relationship with your customers,

and they bring their cars to you for

service, you can tell that customer

ZKHQ�LW¶V�WLPH�WR�JHW�D�QHZ�FDU�Á service department can also

KHOS�%X\�+HUH�3D\�+HUH�GHDOHUV�ZLWK�their bottom line, Lescota said. It’s

a rule of that segment of the used

car business that when a car stops

running, the payments stop coming.

If a dealer has a service department,

the customer can bring the car in to

JHW�¿[HG�DQG�WKH�FRVW�RI�UHSDLUV�FDQ�be added to the payment schedule.

$�FXVWRPHU�PLJKW�QRW�KDYH��on him right then and there, but

he can usually make his payments

LI�WKDW��LV�VSUHDG�RXW�RYHU�WKH�rest of the payment schedule.

³$�JRRG�VHUYLFH�GHSDUWPHQW�JLYHV�GHDOHUV�FRQWURO�´�/HVFRWD�VDLG��³,W�JLYHV�the customer a reason to keep coming

back to you. But if you’re going to have a

VHUYLFH�GHSDUWPHQW��\RX�FDQ¶W�JR�LQ�KDOI�hearted. As they say in poker, you have to

go all in – but the rewards can be huge.

³7KHVH�GD\V��GHDOHUV�QHHG�HYHU\�edge they can get. Now more than

ever, dealers who don’t keep up, fall

EHKLQG�DQG�JR�RXW�RI�EXVLQHVV�´�

BY JIM STICKFORD

C O N T I N U E D F RO M PAG E 21 | A Service Department Can Be a Big Edge for Dealers Willing to Make the Commitment | B AC K T O T H E B A S I C S : G O A L L I N

IN_0712.indd 22 6/20/12 11:04 AM

IN_0712.indd 23 6/20/12 11:04 AM


24


Payment by: � �Visa �MasterCard Credit Card Number: ______________________________Expiration Date: __________________________________

______________________________________________________________________________________________

Dealership Name ____________________________________ Dealer Lic# _______________________________________

Mail Address ___________________________________________________________________________________________

______________________________________

Phone _____________________________________________Fax _________________________________________________

___________________________________________________________________________________________________

Website _________________________________________________________________________________________________

__________________________________________________________________________________

Recommended By ______________________________________________________________________________________

It is important to me to be recognized as a professional! Enclosed are my annual dues of $275 to make sure that my business has all the advantages IIADA/NIADA Inc. provides to put me at the forefront of my profes-sion. By completing this form, I agree to abide by the Code of Ethics. Also, I am consenting to and giving ,,$'$�1,$'$�,QF��LWV�DIÀOLDWHV�DQG�VXEVLGLDULHV��P\�SHUPLVVLRQ�WR��XQWLO�,�JLYH�ZULWWHQ�QRWLFH�WR�GLVFRQWLQXH��FRQWDFW�PH�DQG�SURYLGH�LQIRUPDWLRQ�WR�PH�DW�WKH�PDLOLQJ�DQG�HPDLO�DGGUHVVHV��WHOHSKRQH�DQG�ID[�QXPEHU�V��,�have provided.

This is our personal invitation to you to join the State and NationalIndependent Automobile Dealers Professional Associations

Note: 25% of dues are non-deductible

Please send application

Indiana Independent Automobile Dealers Associations

The IIADA Has the Independent

The IIADA Has the Independent

IN_0712.indd 24 6/20/12 11:04 AM


25


2012 IIADA MEMBER auction coupons

SAVE $100

3URJUDPV�IRU�([WUD�3UR¿W��'HDOHU�%RQG�DW�0HPEHU�5DWHV��'HDOHU�,QVXUDQFH��+HDOWK�,QVXUDQFH��)RUPV��)LQDQFLQJ��6RIWZDUH��,,$'$�+HOS�'HVN��1DWLRQDO�'HDOHU�1HWZRUN�6NLS�7UDFLQJ�&RQWDFWV��&ROOHJH�6FKRODUVKLSV��3UHVFULSWLRQ�'UXJ�&DUG��1DWLRQDO�'HDOHU�1HWZRUN

Publications��&DU�/LQHV�3XEOLFDWLRQ��8VHG�&DU�'HDOHU�0DJD]LQH��)HGHUDOO\�5HTXLUHG�6DIHJXDUGV�3ROLF\�'RFXPHQW��)HGHUDOO\�5HTXLUHG�5HG�)ODJV�5XOHV�3ROLF\�'RFXPHQWV��,56�$XGLW�7HFKQLTXH�*XLGH�)RU�WKH�,QGHSHQGHQW�8VHG�&DU�'HDOHU��&XUUHQW�,QGXVWU\�,QIRUPDWLRQ��/HJLVODWLYH�$OHUWV��1,$'$�$QQXDO�0DUNHW�$QDO\VLV

Professional Development��&HUWL¿HG�0DVWHU�'HDOHU�3URJUDP��)UHH�$FFHVV�WR�1,$'$�WY�7UDLQLQJ�DW�<RXU�%XVLQHVV��$FFHVV�WR�,QGHSHQGHQW'HDOHU�FRP�ZKHUH�GHDOHUV�JR�IRU�DQVZHUV��1,$'$�0HPEHUVKLS�DQG�:LQGRZ�'HFDO��,,$'$�³6\PERO�RI�,QWHJULW\´�/RJR�DQG�:LQGRZ�'HFDO� ��1,$'$�$QQXDO�&RQYHQWLRQ�DQG�7UDGH�6KRZ��&RGH�RI�(WKLFV

Representation��6WDWH�/REE\�DQG�&RQVXOWDQW�6HUYLFHV��6WDWH�/HJLVODWLYH�DQG�5HJXODWRU\�7UDFNLQJ�DQG�5HSRUWLQJ��)HGHUDO�/REE\�DQG�&RQVXOWLQJ�6HUYLFHV��)HGHUDO�/HJDO��/HJLVODWLYH�DQG�5HJXODWRU\�7UDFNLQJ�DQG�5HSRUWLQJ��,QGLDQD�'HSDUWPHQW�RI�5HYHQXH�/LDLVRQ��,QGLDQD�'HDOHU�6HUYLFHV�/LDLVRQ��,QGLDQD�%XUHDX�RI�0RWRU�9HKLFOHV�/LDLVRQ

For $275 You Get Membership In Both IIADA and NIADA

3OXV�$OO�2I�7KH�)ROORZLQJ�%HQH¿WV�$QG�(YHQ�0RUH�7KDW�$UH�1RW�Listed!

ADE of Indianapolis

ADESA Indianapolis

ADESA Northern OhioADESA Queen City

Dyer Auto Auction

Manheim Arena Illinois

Manheim CincinnatiManheim IndianapolisManheim LouisvilleManheim OhioOPENLANE

South Bend

IN_0712.indd 25 6/20/12 11:04 AM


26


BY CHIP ZYVOLOSKICHIP ZYVOLOSKI IS A SENIOR ATTORNEY FOR INDIRECT LENDING AT WOLTERS KLUWER FINANCIAL SERVICES. FOR MORE INFORMATION, VISIT WWW.WOLTERSKLUWERFS.COM/INDIRECT.

:KHQ�,�DWWHQG�LQGXVWU\�HYHQWV��,�HQMR\�meeting dealers and hearing their takes

on current challenges and trends facing

the industry.

2QH�WRSLF�WKDW�KDV�FRPH�XS�UHFHQWO\�LV�leasing. I have heard a number of dealers

comment on how they would like to expand

their dealership and start leasing vehicles.

:KLOH�WKDW�PD\�VRXQG�OLNH�D�QDWXUDO�VWHS�LQ�growing a business, dealers must consider

the differences between selling and leasing.

7R�EH�FOHDU��E\�³OHDVH�´�,�PHDQ�D�FRQWUDFW�allowing a customer to use your vehicle for

D�SHULRG�RI�WLPH��PLQLPXP��IRXU�PRQWKV��At the end of the lease, the customer

returns the vehicle and doesn’t owe you any

more money as long as the vehicle has only

reasonable wear and tear and was driven no

more than the agreed mileage.

If there is an option to purchase, the

option price bears some relation to the

vehicle’s expected market value at the time

the option is exercised. In other words, the

lessee doesn’t have the option to purchase

IRU��EHFDXVH�WKDW�ZRXOG�UHDOO\�EH�D�VDOH��disguised as a lease.

Adding leasing to an independent

Look Before You Leasedealership might sound simple. You’re

already arranging loans and payments for

the vehicles you sell, so why not expand

\RXU�LQ�KRXVH�¿QDQFLQJ�WR�RIIHU�FXVWRPHUV�DQRWKHU�RSWLRQ"

But it’s not as easy as it looks. Here are key

areas to consider when making your decision.

Licensing:�0DNH�VXUH�\RXU�OLFHQVH�IRU�selling vehicles also allows you to lease

vehicles. Your current license might not be

EURDG�HQRXJK�WR�DXWKRUL]H�OHDVLQJ��Insurance: :KHQ�\RX�VHOO�D�FDU��WKH�WLWOH�

is transferred to the buyer. You focus on

UHFHLYLQJ�WLPHO\�SD\PHQWV�DQG�FRQ¿UPLQJ�WKH�EX\HU�KDV�VXI¿FLHQW�LQVXUDQFH�WR�SURWHFW�\RXU�security interest in the vehicle. You probably

have property and liability insurance to

protect your inventory and sales.

However, when a dealer leases a car, he

still owns it. If the vehicle is involved in an

accident, you might be subject to liability as

the owner. As part of researching a leasing

operation, meet with your legal counsel and

insurance carrier to make sure you protect

against liability exposure with appropriate

insurance coverage.

Pricing: Determining the sales price

of a vehicle is pretty straightforward. You

know your costs to purchase and prepare

WKH�YHKLFOH�IRU�VDOH��VDOHV�FRVWV�DQG�SUR¿W�margins, and sell the vehicle for more than

your costs. You know at the time of sale

whether you are making money on the deal.

:LWK�D�OHDVH��WKH�FDOFXODWLRQV�DUH�PRUH�complicated. It might be easy to determine

what the vehicle is worth today, but how

do you know what it will be worth when

the lease is up, say, two or three years from

QRZ"�7KDW�GHSHQGV�RQ�IDFWRUV�VXFK�DV�KRZ�many miles it will be driven and how well it

is maintained.

There are also unknown variables.

:KDW�LI�JDV�SULFHV�ULVH�GUDVWLFDOO\�DQG�WKH�YHKLFOH�LV�D�JDV�JX]]OHU"�7KDW�FRXOG�LPSDFW�the market value at the end of the lease

�UHVLGXDO�YDOXH��,Q�PRVW�FRQVXPHU�OHDVHV��the dealer is on the hook if the residual

value is less than predicted.

You won’t really know if you’re making

PRQH\�RQ�D�OHDVH�XQWLO�\RX�¿QG�RXW�KRZ�well you predicted the residual value. You

might be two or three years into the lease

SURJUDP�EHIRUH�\RX�UHDOL]H�\RX¶YH�VHW�\RXU�residual values too high – and by then it’s

too late.

Documentation and disclosures: You can’t just modify a retail sales contract

to make it a lease. If you are planning

to include leasing, you must make sure

your documents meet state and federal

consumer lease requirements.

7KH�IHGHUDO�&RQVXPHU�/HDVLQJ�$FW�DQG�LWV�LPSOHPHQWLQJ�5HJXODWLRQ�0�DUH�WKH�lease disclosure equivalents of the Truth in

/HQGLQJ�$FW�DQG�5HJXODWLRQ�=�IRU�FRQVXPHU�OHQGLQJ��5HJ�0�UHTXLUHV�GHDOHUV�WR�SURYLGH�D�JUHDW�GHDO�RI�VSHFL¿F�SULFLQJ�LQIRUPDWLRQ�LQ�OHDVH�FRQWUDFWV��0DQ\�VWDWHV�UHTXLUH�additional disclosures and consumer

protections. As part of your leasing startup,

you will need to create a unique document

set of disclosures and contracts.

Taxes: In a lease you retain ownership,

so you might roll your sales taxes to

purchase the vehicle into your costs and

lease calculations, but you might also

need to collect use or other taxes on the

payments throughout the lease term.

&RQWDFW�\RXU�DFFRXQWDQW�DQG�RU�WKH�VWDWH�to understand your tax obligations and

how they differ for leases.

Collections: If a buyer doesn’t make

timely retail contract payments, you can

repossess the car. Fear of losing the car can

help motivate a buyer into making past due

payments. In a lease, the lessee doesn’t own

the car and may expect to return it and walk

away at the end. That might make it a little

easier for the lessee to emotionally handle

repossession, but it might mean the lessee

isn’t afraid of having the car repossessed

and isn’t as motivated to make past due

SD\PHQWV��$V�ZLWK�D�¿QDQFHG�VDOH��RQFH�\RX�repossess a vehicle, the lessee has even less

motivation to pay any balance still due.

If a car is returned with wear or damage

beyond what’s agreed on in the lease, it

FDQ�EH�GLI¿FXOW�WR�FROOHFW�PRQH\�WR�FRYHU�those costs. You can use the lessee’s

damage deposit, so make sure you set it at

a practical amount – it might be the only

money you end up recovering for excess

wear and tear.

These are only some issues to consider

when starting a lease program. You can

identify more by simply reading a motor

vehicle lease contract.

The differences between selling

and leasing are dramatic and can’t

be overlooked. Your operations and

compliance can be affected by the type of

transaction, the vehicle

and the state in which you

are doing business.

C O M P L I A N C E OV E R D R I V E

IN_0712.indd 26 6/20/12 11:04 AM


27


IN_0712.indd 27 6/20/12 11:04 AM

IN_0712.indd 28 6/20/12 11:04 AM

indiana car lines july 2012

Documents

e r i n

i n e s3w w w

indiana surety bond

t w w w

indiana auto dealer

c o mo f f i c

s i t u s

surety bonds work