NEIADA Dealer Updates Sept/Oct 2012

Regulatory Landscape Feeling Tougher?

Y O U ’ R E N O T A L O N E

Regulatory Landscape Feeling Tougher?

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

SEPTEMBER/OCTOBER 2012PRSRT Standard

U.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

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inside• CREDIT REPORTS: WHAT YOU NEED TO KNOW• Q&A: REPORTING LARGE CASH PAYMENTS• FULL-SERVICE AUCTIONS

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Attention All Dealers: Use of Dealer Plates

According to Nebraska law 60-373, any full-time or part-time employee may operate a vehicle owned by the dealership and bearing a dealer plate on the highways of this state solely for purposes of transporting, testing, demonstrating or use in the ordinary course and conduct of business as a motor vehicle dealer.

Dealer plate use can include personal or private use by the dealer and by any bona fide employee licensed as a salesperson, if the salesperson can be verified by payroll records maintained at the dealership as working more than 30 hours per week or 1,500 hours per year at the dealership.

Personal-use dealer plates, according to LB 60-3,116, can be obtained from the county by filling out a form furnished by the Dealer Board and paying a fee of $250. A personal-use dealer plate can be displayed on a motor vehicle belonging to the dealership and may be used in the same way as a regular dealer plate, and can be used for personal or private use of the dealer, the dealer’s spouse, the dealer’s dependent children, the dealer’s parents and any bona fide salesperson of the dealership.

William Jackson Executive DirectorNebraska Motor Vehicle Industry Licensing Board

From the Desk of Jan MerrittHopefully, by the time you receive this

newsletter our long, dry, hot summer will be over. I know many of you also farm and this has had to be a trying time. I don’t very often get on my podium, but I have never had as many complaints as I have had this summer from both customers and dealers.

All dealers should make sure how many forms they have, where they are and who has access to them. A Kansas City lady called and wanted me to send her some more In Transits because the ones she had had been stolen. I told her to contact the dealer she purchased the vehicle from. Her next words were, “I bought this from a gentleman’s home.”

I told her I could not help her. I suggested she get the car licensed. You can imagine what her next words were. I don’t have the title yet.

How did she get Nebraska In Transits when buying from a curbstoner? That is only one of many cases.

This is just a reminder to lock your car at the auction if you have just purchased In Transits from us on the way. Many times a dealer has come back after the sale

and said his In Transits had been stolen. Remember, at all the auctions there are drivers or other people not connected with a dealership who can check parking lots.

Remember, dealers, if your sales people are selling cars at home, you are still responsible.

Now, on another subject: Be sure you are processing your paperwork properly. Many dealers in smaller communities think the federal government won’t find them or don’t care. It will not be the federal government – it will be consumers in your area and/or other dealers. Remember, more and more consumers are on the Internet and know the rules and regulations better than most dealers.

If you have any questions at all, please contact our office. Remember the fee for not having an FTC sticker in your window (As Is) has gone up to $16,000 per car. Also, in the writing up contracts, the government can go back to other years and check those contracts.

This is no longer the good old days. Cars are expensive and the consumer wants his money worth.

E X E C U T I V E D I R E C T O R ’ S R E P O R T

If you have not seen our new website we suggest you visit www.neiada.com. We are opening up the advertising sites for dealers, automotive venders and auctions.

You can see the size of the ads on the web page. They are approximately the size of a business card (ad size 200x90 pixels). We can add logos in jpeg and gif formats.

If you are interested in advertising, call Jan and/or Gary at (800) 464-2089.

DealerRater Adds Chat Software

The car dealer review website DealerRater has partnered with Contact At Once! to add a live chat feature for its certified dealer partners, enabling real-time chat between automotive dealerships and online shoppers.

“Our third-party generated dealer reviews and ratings have helped car shoppers to determine and validate which dealerships they would like to do business with,” DealerRater president Chip Grueter said. “We believe the integration of Contact At Once! chat will enable our certified dealers to connect with in-market consumers in a way that is faster and more convenient than an email or a phone call.”

The Contact At Once! dealer chat network includes third-party listing sites such as AutoTrader.com, Cars.com and UsedCars.com, as well as standalone dealership and dealer group web pages.

Once enabled, dealers can respond to consumer chats originating from anywhere in the dealer chat network. Dealers that use dealer live chat typically experience a 25 percent increase in online shoppers contacting the dealership.

M O B I L E N E W S

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PresidentDenny DeNovellisSidney Auto SalesSidney

President-Elect Dale CotnerDale’s TrucksYork

Vice PresidentLes BockmanBockman Auto SalesSt. Paul

Secretary-TreasurerRoger BohrerCatherland Auto SalesRed Cloud

DirectorsDoug BorgmannCreighton Used CarsCreighton 68970

Dean CernyColumbus Auto MartColumbus 68601

Andy ChaseABC Auto SalesLincoln 68507

Don Deepe81 AutomotiveHebron 68370

Joel KershnerKershners Auto KornerHastings 68901

Arlan KuehnKuehn Auto SalesS. Sioux City 68776

Brad QuackenbushQ Family AutoBroken Bow 68822

Chuck RogersChuck Rogers Auto SalesTekamah 68061

Larry SchnellN.P. WheelsNorth Platte 69101

Back (left to right): Arlan Kuehn, Brad Quackenbush, Don Deepe, Larry Schnell, Andy Chase, Doug Borgmann, Dean Cerny. Front (left to right): vice president Les Bockman, secretary/treasurer Roger Bohrer, president-elect Dale Cotner, president Dennis DeNovellis.

Board of Directors

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WHAT’S NEW

MAGAZINE CONTENTS

ADVERTISERS INDEX

08 Q&A: Reporting Large Cash Payments12 Full-Service Auctions14 Credit Reports: What You Need to Know16 Go for the Gold18 Compliance Overdrive

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATIONWWW.NIADA.COM • WWW.NIADA.TVNIADA HEADQUARTERS: 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR [email protected].

Nebraska Dealer Updates is published 6 times per year by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone 817-640-3838. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 6006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Nebraska Dealer Updates or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2012 by NIADA Services, Inc.

STATE MAGAZINE MGR./SALES Troy Graff • [email protected] Andy Friedlander • [email protected]/PRODUCTION MGR. Christy Haynes • [email protected] Nieman Printing

OFFICEFOR INFORMATION ON HOW TO BECOME A MEMBER PLEASE CONTACT JAN MERRITT:[email protected]

Ally .................................................................................. 9AutoTrader.com ............................................ Back CoverDodah.com..................................................................... 5Manheim.com .....................................Inside Back CoverNebraska Auto Auction ........................Inside Front CoverNIADA Certified ............................................................ 13Nowcom ..................................................................... 11Protective .......................................................................7Voisys .......................................................................... 18

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NIADA.TV Now available at www.niada.tv:• Building an Effective Dealership Website

with Michael D. Jackson

• Tracking Devices with Jay Rose

• Legislative/Regulatory Scene with Shaun Petersen and panel

• Avoiding The Potholes with Ken Shilson

• Feel Unstoppable in 60 Minutes with Ruben Gonzalez

NIADA Dealer 20 Groups NIADA’s new 20 Groups program is designed for NIADA’s independent dealers as they do business today in BHPH, retail or both. Take your profits to the next level. Visit www.niada20groups.com

Dr. ColorChip Introduces Systems for DealersDr. ColorChip, a nationwide provider of automotive touch-up paint, has introduced a

new line of commercial automotive paint chip repair systems catered to dealership owners looking to decrease the cost of cosmetic reconditioning of used car inventory.

Dr. ColorChip now offers an entry-level basic commercial system designed for dealers with fewer than 40 used car sales per month. It is a customizable 30-color system that enables small dealerships and dealers specializing in the resale of a particular make of vehicle to effectively touch up their inventory.

Dr. ColorChip’s standard commercial system is a more comprehensive 80-color system meant to accommodate a dealer serving from 40 to100 cars per month. Large dealers, chain dealers and auction houses will benefit most from the 160-color deluxe system, which covers the full spectrum of car colors.

“The option of bringing this system in-house is extremely attractive and makes great financial sense” to dealerships, Dr. ColorChip co-owner/developer Dan McCool said. “Its impact is immediate – driving cash to the bottom line and generating higher profits.”

For more information, contact (561) 845-6122 or [email protected], or visit www.drcolorchip.com.

V I S I T W W W. D RC O LO RC H I P. C O M .

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A S S I S TA N T D I R E C T O R ’ S M E S SAG E

From Assistant Director Gary MerrittNIADA.TV: How many of you have

checked this site out? How about live?Well Kate and I did on the night

of Thursday June 14, the night of the National Quality Dealer Awards show.

The show was, as it has been for the past several years, broadcast live over the Internet. For those who think we were the only two watching, there were at one point just short 150,000 people logged on to watch the show worldwide.

This year, the National Quality Dealer was presented at the National IADA annual convention at Caesars Palace in Las Vegas. Jan was in attendance representing the Nebraska IADA as our state executive director.

Also at the national convention from Nebraska were Arlan Kuehn, who is on the national board, and Brad and Darla Quackenbush. Brad was this year’s state nominee for the Quality Dealer honor.

It was very interesting to watch the show on the computer, and, though it was not quite the same as live, I still found it fun to watch and watched the whole show. Just before the nominee from each state was awarded a plaque for being the Quality Dealer from the state he or she represented, a short bio was read and a video clip was shown from the interview that took place the day before the awards show.

We waited to see Brad go up before the crowd for his plaque, and we waited to the very end to see who this year’s Quality Dealer of the Year would be. Live or on TV, the anticipation and excitement was there.

I am sure many dealers want to know what the Quality Dealer award is. This is like the Oscars for used car dealers. The State Quality Dealers represent their state associations for the chance for the national award. These are the best dealers of any given year in their state.

In Nebraska, past Quality Dealers voted on the winner from a slate of nominees submitted

by the membership. Dealers are nominated based on the practices of the dealerships, contribution to the association and their commitment to the community.

At the national level, it is not how many cars you sell, it’s about integrity and what kind of dealership you run. The voting among the state nominees is done by a panel from Northwood University, which collects the information and selects the winner.

Again, it is based on what kind of dealership the candidates run – their contributions to customers, employees, the association and the community.

Every year when I watch the Quality Dealer of the Year ceremony, whether in person or as this year on NIADA.TV, I am so proud of our state representative. We have yet to have a national winner, but someday that national winner will come from Nebraska.

This year’s National Quality Dealer came from Ohio: Michael D’Andrea from Miracle Motor Mart, Columbus, Ohio. He’s the first winner from that state.

I hope every dealer out there appreciates the Quality Dealer of the Year awards and strives to be the best dealer he or she can be. The press is always so quick to find what used car dealers do wrong and exaggerate any problems. It is the quality dealers who show everyone what most dealers are – honest, trustworthy, loyal, community-based, hard-working, going beyond what any other business is expected to do in any other industry, not only to customers, but to employees.

Mike Linn said at the national convention that the Quality Dealer (to paraphrase) puts God first, others second and himself last.

Let’s all work to be the best and show the rest of the country there is a National Quality Dealer from Nebraska waiting to be announced.

Guy Kerns Lincoln 1982Joe Gillham St. Paul 1983Bob Yates Gering 1984Jim Delp Lincoln 1985Charlie Richardson Kearney 1986Gilbert Gibreal Omaha 1987Benny Perkins Columbus 1988Lloyd Soukop Grand Island 1989Ritchie Richardson Kearney 1990Bob Borgmann Creighton 1991Bernice Gerber Omaha 1992Harry Wolfson Omaha 1993Eldon Enninga Kensaw 1994Dale Cotner York 1995Val Kershner Hastings 1996Roger Ackerman Omaha 1997Arlo Kranau Columbus 1998Randy Yates Gering 1999Chuck Borgmann Norfolk 2000Jody Smith North Platte 2001Tim Propp Gering 2002Jim Wyant Newman Grove 2003Bill Von Tersch Fremont 2004Denny DeNovellis Sidney 2005Dean Cerny Columbus 2006Don Deepe Hebron 2007Doug Borgmann Creighton 2008Arlan Kuehn South Sioux City 2009Joel Kershner Hastings 2010Brad Quackenbush Broken Bow 2011

Here are the past Quality Dealers from Nebraska who have represented us at national:

Not only have those dealers represented the association and industry well through their ethics, I would also like to note that several of them have been very active at the national level, including Gilbert Gibreal, Lloyd Soukop and, currently, Arlan Kuehn, who has moved up to vice president of Region III. Many of those dealers have also served on the Motor Vehicle Industry Licensing Board.

Every dealer should be as proud as we are of the dedication to the used car industry of our Quality Dealers.

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Guy Kerns Lincoln 1982Joe Gillham St. Paul 1983Bob Yates Gering 1984Jim Delp Lincoln 1985Charlie Richardson Kearney 1986Gilbert Gibreal Omaha 1987Benny Perkins Columbus 1988Lloyd Soukop Grand Island 1989Ritchie Richardson Kearney 1990Bob Borgmann Creighton 1991Bernice Gerber Omaha 1992Harry Wolfson Omaha 1993Eldon Enninga Kensaw 1994Dale Cotner York 1995Val Kershner Hastings 1996Roger Ackerman Omaha 1997Arlo Kranau Columbus 1998Randy Yates Gering 1999Chuck Borgmann Norfolk 2000Jody Smith North Platte 2001Tim Propp Gering 2002Jim Wyant Newman Grove 2003Bill Von Tersch Fremont 2004Denny DeNovellis Sidney 2005Dean Cerny Columbus 2006Don Deepe Hebron 2007Doug Borgmann Creighton 2008Arlan Kuehn South Sioux City 2009Joel Kershner Hastings 2010Brad Quackenbush Broken Bow 2011

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Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or related transactions must complete a Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

Form 8300 is a joint form issued by the IRS and the Financial Crimes Enforcement Network (FinCEN) and is used by the government to track individuals who evade taxes and those who profit from criminal activities. Though the cash reporting requirements apply to many types of businesses, auto dealerships frequently receive cash in excess of $10,000 and are required to comply with the filing requirements.

The Motor Vehicle Technical Advisor Program, in conjunction with IRS specialists on money laundering, would like to assist dealers in their compliance with the filing requirements of Form 8300. In pursuit of that goal, we have compiled a list of dealership-specific questions and answers. As we receive additional questions that need to be addressed, we will update this document as appropriate.

The questions contained in this document are dealer specific and do not include basic questions dealing with the filing and notification requirements of Form 8300. Frequently asked questions dealing with filing requirements, written statements to customers and reportable transactions can be found online at www.irs.gov/businesses/small/article/0,,id=148821,00.html.

DEALERSHIP-SPECIFIC QUESTIONSA customer purchased a vehicle for

$9,000 cash. Within the next 12 months, the customer paid the dealership additional cash of $1,500 for a repair to the vehicle’s transmission, accessories and a customized paint job, etc. Should a Form 8300 be filed?

No, unless the dealer knew or had reason to know the sale of the vehicle and the subsequent transactions were a series of connected transactions. For example, if the dealer and the customer agreed, as a condition of the sale of the vehicle, that the customer would be obligated to buy an additional $1,500 of goods or services.

Transactions are related if they occur within a 24-hour period. Transactions are related even if they are more than 24 hours apart if you know, or have reason to know, that each is one of a series of connected transactions. For example, items or services negotiated during the original purchase are related to the original purchase.

A customer wired $7,000 from his bank account to the dealership’s bank account and also presented a $4,000 cashier’s check. Does the dealership complete Form 8300?

A wire transfer does not constitute cash for Form 8300 reporting. Since the remaining cash

remitted was below $10,000, the dealer has no 8300 filing requirement.

A customer makes weekly payments in cash to a dealership as a lease payment or loan payment on a vehicle. During a 12-month period, these payments total more than $10,000. Are these payments considered related transactions and is the dealership required to file a Form 8300?

Yes, the weekly lease or loan payments constitute payments on the same transaction – the leasing or purchase of the vehicle.

Accordingly, the dealership is required to file Form 8300 when the total amount exceeds $10,000.

Each time the payments aggregate in excess of $10,000 the dealership must file another Form 8300 within 15 days of the payment that causes the previously unreportable payments to total more than $10,000.

A husband and wife purchase two cars at one time from the same dealer and the total cash received is $10,200. How many Form 8300s should the car dealer file?

The transactions can be viewed as either a single transaction or two related transactions. Either way, it warrants only one Form 8300.

If a customer purchased a cashier’s check at the bank for more than $10,000, would the bank report the transaction? Does the seller of a vehicle need to report the transaction if the same cashier’s check is subsequently used to purchase a vehicle?

If the cashier’s check was purchased with cash exceeding $10,000, the bank would file a Currency Transaction Report , not a Form 8300.

The purchase of a vehicle with a cashier’s check, bank draft, traveler’s check or money order with a face amount of more than $10,000 is not treated as cash and a business does not have to file Form 8300 when it receives them.

How should a dealership handle a nonresident alien with no SSN?

Use the IRS Individual Taxpayer Identification Number (ITIN) if the nonresident has one. If there is no ITIN enter “NONE” on Item 6 of Form 8300. Pub 1544 provides a list of exceptions in which a filer is not required to provide a Taxpayer Identification Number of a person who is a nonresident alien individual or a foreign organization.

You must verify the individual’s name and address and insert this information on Item 14 of Form 8300. For nonresident aliens, acceptable documentation would include a passport, alien registration card or other official document.

Do payments in excess of $10,000 in cash paid to a body shop need to be reported?

Do the 8300 filing requirements apply to services as well as goods?

Yes. Cash, in the form of currency, received in excess of $10,000 must be reported. However, a service is not a consumer durable so the expanded definition of cash does not apply to payments for services. The body shop would file an 8300.

A dealership sold cars on Jan. 31 and Feb. 6 to one customer and received $20,000 cash in two payments of $10,000 each on the same date for the two cars. Is a Form 8300 required?

Yes. The dealership received more than $10,000 in cash within 24 hours.

A customer purchased five cars, each separately though the year, totaling $15,000 and none of which individually exceeded $10,000. Is Form 8300 required?

If the dealer knows, or has reason to know, that each transaction is one of a series of connected transactions, a Form 8300 would be required. If there is no reason to believe they are connected, the five transactions would be viewed as separate transactions, none of which exceeded $10,000 in cash, and a Form 8300 would not be required.

Are wire transfers considered cash?Wire transfers are not considered to be cash

and no Form 8300 is required to be filed.The money services business (MSB) or bank

that handles the wire transfer must document those types of transactions by filing a CTR on amounts of more than $10,000.

A dealership receives more than $10,000 in cash on day one for the sale of a vehicle. On day three, the deal is canceled due to an inability to finance the deal. The dealership returns the cash. Is a Form 8300 required?

Yes. Once the dealership receives cash exceeding $10,000, a Form 8300 must be filed.

The deal not going through may in fact be an attempt to launder illegal funds.

If $10,000 or less was received by the dealer and the deal was canceled, the dealer may voluntarily file a Form 8300 if the transaction appears suspicious.

If a dealership receives a bank check drawn on the funds of the bank – not a personal checking account check or a check drawn on a personal account of the customer – with the customer’s personal account number and customer name on it, is that considered cash or a cash equivalent?

Bank checks (drawn on the bank’s account, not the account of the customer) of $10,000 or less are cash under the expanded definition of

Q&A: Report of Cash Payments of More Than $10,000I N FO R M AT I O N A B O U T FO R M 8 3 0 0

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cash, unless they are loan proceeds.The fact there are notations on the check

or even that the check is made payable to the dealership does not negate that.

A customer purchases a vehicle for $15,000 and pays for it with $9,000 in cash and puts the remaining $6,000 on a personal credit card. Should a Form 8300 be filed? Instead of a personal credit card, the customer pays the remaining $6,000 with his ATM card. Is the ATM amount considered cash or a cash equivalent that makes the total amount received more than $10,000 and thus reportable on Form 8300?

No Form 8300 is required.Less than $10,000 in cash was received. A

credit card is not cash.The ATM card works the same as a credit

card in this instance. The only difference is the account will be charged with a debit against existing funds instead of charged for a debit to nonexisting funds, but a promise to repay later.

An ATM transaction is not given the consideration of cash. Therefore, since the amount received in cash or cash equivalents is less than $10,000, the transaction is not reportable.

For wholesalers, when a purchasing retailer buys more than one vehicle in a single day, is that one transaction, a series of related transactions or a series of unrelated transactions given that there are multiple vehicles? What happens with separate purchases over the course of a week? What about a month?

Two or more transactions within a 24-hour period are related transactions. A trade or business that receives more than $10,000 in related transactions must file Form 8300.

If purchases are more than 24 hours apart and not connected in any way that the seller knows, or has reason to know, then the purchases are not related and a Form 8300 is not required.

What exactly can be said to a customer who inquires about IRS Form 8300 reporting? Some dealers are advised not to refer to IRS Form 8300 reporting in the presence of a customer. In particular, dealers are concerned that advising customers that they need information for an IRS 8300 report could degenerate into a structuring conversation. What if the customer asks what the information is for? Can the dealer volunteer that it is for IRS Form 8300 reporting?

A customer can be, but is not required to be, told at the time of the transaction about the law requiring the reporting of cash payments of more than $10,000 to the IRS and FinCEN.

What a dealer cannot do is aid a customer in structuring a transaction to prevent a Form 8300 from being filed.

A dealer who is filing Form 8300 voluntarily because of suspicious activity cannot inform the customer of the filing.

What are the penalties if a dealership does

not file a Form 8300?There are civil penalties for failure to file a

correct Form 8300 by its due date and for failure to provide a statement as required.

Additional penalties apply for intentional disregard of the filing requirements.

Criminal penalties can apply in the case of willful filing of false or fraudulent Forms 8300.

A dealership receives monthly ACH payments (automatic payments from a customer bank account). If the payments total in excess of $10,000, should the payments be treated as cash?

ACH payments are not considered cash for the purpose of reporting on Form 8300.

A related finance company provides financing to customers of multiple related used vehicle dealerships. The finance company purchases contracts from the used car lot and a bank check is issued to the car lot for the amount of the car deal. Would the definition of cash to include cashier’s checks and money orders apply to the finance company?

As to the sale to the customer, the dealership’s sale of the vehicle constitutes a retail sale of a consumer durable requiring reporting of certain monetary instruments if the face amount was $10,000 or less and the total transaction exceeds $10,000.

When the finance company purchases the “finance contract,” it does not have a designated reporting transaction. The finance contract is not a consumer durable, collectible, or travel or entertainment activity. Thus, monetary instruments with a face amount of $10,000 or less received from the finance company to pay off the finance contract would under normal situations not be reportable.

What type of records might an examiner request during an 8300 examination?

Records requested can vary by examiner, but typically the following records are requested:

• Checking, savings and/or other financial account statements and deposit slips.

• An electronic bank deposit reconciliation in Excel format extracted from the dealer’s dealer management system (DMS). The report generally requires all receipts of the business from any source including:

• The amount, date received, method of payment (cash, check, credit card number, etc.).

• Payer name.• Receipt number.• Receipt sources should include new and

used vehicle sales, leases, service, parts, body shops and any non-customer receipts.

• Deal jackets for leases and sales during the examination period.

• Sales journals, cash receipts journals, accounts/notes receivable, sales invoices.

The above information comes from the IRS website. For more information, visit www.irs.gov and type “8300” in the search window.

BY INTERNAL REVENUE SERVICE

C O N T I N U E D F RO M PAG E 8 | Q&A

Rent-A-Wreck of America, a franchise company with more than 150 used car rental locations throughout the U.S., is now offering NIADA members a $1,000 discount off the purchase of a franchise.

Rent-A-Wreck, an endorsed NIADA National Member Benefit Partner, has extended its commitment to independent dealers by pledging to contribute $1,000 to the dealer’s state association or the national association for every franchise sold to an NIADA member.

Since 1973, Rent-A-Wreck of America has offered used car dealers a franchise they can operate at their existing retail sales lot to bring extra revenue and additional foot traffic with little additional overhead.

“Our franchise brings used car dealers everything they need to become a player in their local car rental marketplace,” Rent-A-Wreck of America vice president of operations Michael DeLorenzo said. “We have financing, insurance, a global reservation system and a comprehensive and sophisticated training system that makes car rental a near turnkey opportunity for a used car dealer.

“Rent-A-Wreck is a great brand with a long and successful history with used car dealers. Our franchisees who are used car dealers see the benefit of additional cash flow and profits from rentals, but also see that the increased foot traffic helps them sell more cars as well.”

Rent-A-Wreck franchise owners receive access to a fleet leasing and purchase program that includes access to closed factory sales, a reservation system connected to multiple global booking channels, online travel agencies, rentawreck.com and 1-800 telephone reservations, point of sale integration with the reservation system, a comprehensive training program in pre-open and post-open phases, a dedicated area representative for recurrent and ongoing needs, insurance and more.

For more information, visit www.rentawreck.com/NIADA or call (469) 939-6132 to speak to a company representative.

Rent-A-Wreck Offers $1,000 Off a Franchise

E X T E N D E D C O M M I T M E N T

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T E C H N O LO GY A N D N E C E S S I T Y E X PA N D T H E S E RV I C E S O F F E R E D BY AU C T I O N S

Back to the Basics: On the BlockAuto auctions today are full-service

operations with a growing list of options to keep inventory rolling.

The infusion of the Internet into the traditional auction business model has been, arguably, the most significant change in recent years.

“The Internet keeps expanding and expanding,” said Charlotte Pyle, owner of Capital City Auto Auction in West Virginia and president of the National Auto Auction Association (NAAA). “I attended an auction recently and the entire lane was not there. They sold every car from a TV screen.”

An increasing number of websites are emerging with features allowing dealers to shop for cars across the country without ever leaving the office.

IndependentAuctions.com, for instance, has more than 67,000 searchable vehicles from 69 member auctions and boasts more than 41,000 registered dealers on the site. On any given week some 27,000 vehicles are sold. The site contains the inventory, post-sale reporting and account management tools to help automotive professionals buy, sell and research vehicles from independently owned locations.

ADESA, which operates 68 auctions throughout North America, has been one of the industry leaders in embracing online auctions.

“Our biggest news as of late was the acquisition of OpenLane last fall,” said Tom Caruso, ADESA president and CEO and a recent inductee into the National Independent Auto Dealers Association Ring of Honor.

“This industry-leading technology will help dealers as they expand their reach outside of their local markets in the online market. We are really excited about the progress we are making bridging our physical auctions and our online tool, ADESA OpenLane, to create a better buyer experience.”

Auction OptionsWhile the economic issues of the past few

years have meant fewer vehicles coming to auction, it has forced auctions to increase their level of service, Pyle said.

“Volumes are down for the leases and repos, so auctions have opened up to do more outside work,” Pyle said.

Auctions have stepped up floorplanning – providing the inventory loans that are a primary source of financing for dealers to purchase inventory to then resell, either from the showroom or in a wholesale format.

Post-sale inspections have become an expected feature at auctions to give dealers assurance and peace of mind for both their in-lane and online wholesale purchases.

“A dealer purchasing a post-sale inspection has assurance that the vehicle purchased passed a rigorous test, was properly represented by the seller and that Perry’s Auto Auction guarantees that the vehicle meets the dealer’s expectations,” noted an item on the website of Perry’s Auto Auction in central Georgia.

Most auctions with post-sale inspections follow a checklist of items that would cost $500 or more each to repair or replace. That includes checking the frame or unibody for structural damage as well as checking the paint, transmission, air conditioning system and brakes. They also check for things like odometer verification, flood inspection and emission control.

Often there’s nothing mechanically wrong with a vehicle – it’s just dirty. But that’s OK, because many auctions are trumpeting reconditioning packages for dealers.

At the Greater Erie Auto Auction, serving Buffalo, N.Y., Cleveland and Pittsburgh, a $95 “full detail” comes with an exterior wash, engine clean, exterior buff, interior clean and tire dressing. At a minimum, they’ll wash it for $10.

Auctions also offer around-the-clock security for safe vehicle drop-offs, car title verification and transportation of vehicles.

“Some of our dealers are heavily dependent on these truckers delivering the cars to the auctions, and over time the gas bill adds up,” Pyle said.

Dealer ReactionRoger Montbleau, owner of Chelmsford

Street Auto Sales in Lowell, Mass., buys cars at auction weekly. He’ll typically shell out money for the post-sale check his local auction offers as an extra service.

“Good cars are not as plentiful as they used to be,” Montbleau said. “A lot of people mask these vehicles that come through. We need someone who can give us a certification. People aren’t as forthright as we want them to be.”

If the cars he brings to the auction do not sell, Montbleau said, he appreciates the auctioneers washing it before the next scheduled date.

Stanley Thompson, owner of First Auto Sales in Bradenton, Fla., visits the auction about three times a month and sells 25 to 30 cars per month.

“Auctions give you a greater selection at

competitive prices you can’t get anywhere else,” Thompson said.

Still, the new lineup of auction services has not exactly won him over.

“We do everything in-house,” said Thompson, who has been in business for 20 years. “We know what we’re doing.”

Indeed, as much as auctions keep working to enhance their services, some dealers would still rather do without. In fact, some avoid auctions altogether, choosing to get their inventory from other sources.

Jay Iverson, manager of Carz Central in Estherville, Iowa, is not a fan of auctions, period.

“Other than the fact that the cars are there, there’s not a whole lot I like about auctions,” Iverson said. “There’s a lot of politics involved. The rules keep changing. There’s no consistency.”

David Shoffner, owner of David Shoffner‘s Auto Sales in Redding, Calif., visits the auction twice a week. He likes the guarantee that the title is always good.

“Whereas buying them off the street, you don’t know what you’re getting,” Shoffner said.

Much has changed since Shoffner started selling cars with his dad in the early 1960s. He said he prefers an old-school method of buying cars. He is not impressed with online auctions – he’d rather go in person.

“I pretty much cherry-pick the auctions to find what I like, and it allows me to make a good living,” Shoffner said. “I bought two or three cars from the Internet and it was a horrible experience. The cars required mechanical work that was not previously disclosed.

“As for me, I like to see them and touch them first.”

To be sure, online auto auctions come with risks.

Similar to the other popular scams, Kristin Judge, executive director of the Trusted Purchasing Alliance, a division of the nonprofit Center for Internet Security, said there are two central themes to keep in mind when dealing with auto auction fraud: First, if an offer seems too good to be true it probably is, and second, never send money to someone you have not met in person, though that might not always be a practical rule for dealers to follow with online auctions.

In 2011, the federal government’s Internet Crime Complaint Center (www.ic3.gov) received 4,066 complaints from victims of auto auction fraud. The total financial

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cost to those victims was more than $8 million, with the average loss being $2,000 per victim. The calls reporting the scams averaged two per hour.

“Criminals misrepresent themselves as either Kelley Blue Book agents, or possibly a person moving out of town and needing to sell a car quickly before they leave,” Judge said. “Like other scams, the criminal sets up a persona that helps him appear legitimate. The price for the vehicle is usually at a great discount, too good to pass up.

“When a buyer shows interest in the vehicle, he is asked to send a deposit to a third party to hold while the inspection takes place. Unfortunately, there is no legitimate third party. Once the scammer collects the deposit, the victim is left without his money or a car.”

Auction ProjectionsThe future of auto auctions will place

a continued focus on manipulating technology to benefit dealers.

“We continue to make investments in our auction infrastructure to facilitate our buyers’ diverse business needs,” ADESA’s Caruso said. “That includes more computer terminals for customers to use, better Wi-Fi access and more reconditioning options both presale and

post-sale. We will continue to evolve our business to meet the demands of our dealers.”

One example is ADESA’s newly released dealer application for the iPhone.

“The app combines relevant industry guide books, vehicle history reports and other useful business data with the cars running at our auctions,” Caruso said. “The evolution of mobile technology will continue to shape how we do business.”

The new auto auction services have put the technology companies that develop those services in the driver’s seat. In July, vAuto, an Oakbrook, Ill., company specializing in dealer support services and a wholly owned subsidiary of AutoTrader Group Inc., announced the acquisition of Auction Genius, a web-based software solution for auto dealers buying vehicles at auction.

“This acquisition advances vAuto’s mission to help dealers become more efficient and effective used vehicle retailers,” vAuto founder Dale Pollak said.

With Auction Genius, vAuto promises to eliminate the inefficiencies and difficulties dealers encounter every day as they evaluate and purchase used vehicles from wholesale auctions.

“Today, every dealer relies on wholesale auctions for used vehicles,” Auction

Genius president and co-founder Todd Kinzle said. “This highly competitive environment requires dealers to evaluate far more vehicles than they used to, and the time it takes to do the proper research is overwhelming.”

Enter Auction Genius. Kinzle says dealers can now analyze as many as 10 times the number of vehicles and zero in on the “right” cars with significantly more speed and efficiency.

Typically dealers will use multiple systems and tools to create used vehicle buy lists, match the lists with cars scheduled to be sold at wholesale online auctions and gather condition/market valuation reports to assess individual vehicles for potential purchase. They also access live online auctions through a separate system to buy the cars that fit their purchase parameters. It’s a piecemeal process.

Auction Genius also integrates with a growing list of industry partners, including CARFAX, AutoCheck, NADA Guide Book, Black Book, Kelley Blue Book and Galves. Current auction integration includes Manheim Simulcast, OVE.com, Manheim PowerSearch, ADESA LiveBlock and OpenLane.

BY JASON ROBERSON

Back to the Basics: On the Block

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I N T H E I N D U S T RYF E D E R A L T R A D E C O M M I S S I O N G U I D E ( W W W. F T C . G OV )

Credit Reports: What Information Providers Need To KnowThe Fair Credit Reporting Act (FCRA)

is designed to protect the privacy of credit report information and to guarantee that information supplied by consumer reporting agencies (CRAs) is as accurate as possible.

If you report information about consumers to a CRA, you are considered a “furnisher” of information under the FCRA. The responsibilities of information providers are explained here. Items 2 and 5 apply only to furnishers who provide information to CRAs “regularly and in the ordinary course of their business.” All information providers must comply with the other responsibilities.

1. General prohibition on reporting inaccurate information: You may not furnish information you know – or consciously avoid knowing – is inaccurate. If you “clearly and conspicuously” provide consumers with an address for dispute notices, you are exempt from this obligation but subject to the duties discussed in item 3.

What does “clear and conspicuous” mean? Reasonably easy to read and understand. For example, a notice buried in a mailing is not clear or conspicuous.

2. Correcting and updating information: If you discover you’ve supplied one or more CRAs with incomplete or inaccurate information, you must correct it, resubmit it to each CRA and report only the correct information in the future.

3. Responsibilities after notice of a consumer dispute from a consumer: If a consumer writes to the address you specify for disputes to challenge the accuracy of any information you furnished and if the information is, in fact, inaccurate, you must report only the correct information to CRAs in the future. If you are a regular furnisher, you will also have to satisfy the duties in item 2.

Once a consumer has given notice that he or she disputes information, you may not give that information to any CRA without also telling the CRA that the information is in dispute.

4. Responsibilities after receiving notice from a consumer reporting agency: If a CRA notifies you that a consumer disputes information

you provided:• You must investigate the dispute

and review all relevant information provided by the CRA about the dispute.

• You must report your findings to the CRA.

• If your investigation shows the information to be incomplete or inaccurate, you must provide corrected information to all national CRAs that received the information.

• You should complete these steps within the time period the FCRA sets for the CRA to resolve the dispute – normally 30 days after receipt of a dispute notice from the consumer. If the consumer provides additional relevant information during the 30-day period, the CRA has 15 days more. The CRA must give you all relevant information it gets within five business days of receipt, and must promptly give you additional relevant information provided from the consumers. If you do not investigate and respond with the specified time periods, the CRA must delete the disputed information from its files.

5. Reporting voluntary account closings: You must notify CRAs when consumers voluntarily close credit accounts. That is important because some information users might interpret a closed account as an indicator of bad credit unless it is clearly disclosed that the consumer – not the creditor – closed the account.

6. Reporting delinquencies: If you report information about a delinquent account that’s placed for collection, charged to profit or loss, or subject to any similar action, you must, within 90 days after you report the information, notify the CRA of the month and year of the commencement of the delinquency that immediately preceded your action. That will ensure CRAs use the correct date when computing how long derogatory information can be kept in a consumer’s file.

How do you report accounts you have charged off or placed for collection?

A few examples:• A consumer became delinquent on

March 15, 1998. The creditor placed the account for collection on October 1, 1998.

In that case, the delinquency began on March 15, 1998. The date the creditor placed the account for collection has no significance for calculating how long the account can stay on the consumer’s credit report. In that case, the date that must be reported to CRAs within 90 days after you first report the collection action is March 1998.

• A consumer fell behind on monthly payments in January 1998, then brought the account current in June 1998, paid on time and in full every month through October 1998 but thereafter made no payments. The creditor charged off the account in December 1999.

In that case, the most recent delinquency began when the consumer failed to make the payment due in November 1998. The earlier delinquency is irrelevant. The creditor must report the November 1998 date within 90 days of reporting the charge-off. For example, if the creditor charged off the account in December 1999 and reported the charge-off on Dec. 31, 1999, the creditor must provide the month and year of the delinquency – November 1998 – within 90 days of Dec. 31, 1999.

• A consumer’s account became delinquent on Dec. 15, 1997. The account was first placed for collection on April 1, 1998. Collection was not successful. The merchant placed the account with a second collection agency on June 1, 2003.

The date of the delinquency for reporting purposes is December 1997. Repeatedly placing an account for collection does not change the date the delinquency began.

• A consumer’s credit account became delinquent on April 15, 1998. The consumer made partial payments for the next five months but never brought the account current. The merchant placed the account for collection in May 1999.

Since the account was never brought current during the period partial payments were made, the delinquency that immediately preceded the collection commenced in April 1998, when the consumer first became delinquent.

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Lincoln Auto Auction, founded by CEO Phil Durst, is entering its 20th year in business.

The auction prides itself on providing superior service to new and used auto dealerships, banks, credit unions and fleet/lease companies across Nebraska and the Midwest, including Iowa, Kansas, Missouri, South Dakota and Minnesota. Its online sales, consisting of OpenLane, SmartAuction and AWG Live Simulcast, services buyers and sellers from across the country.

Lincoln Auto Auction considers itself “Nebraska’s new car trade headquarters,” and takes pride in the prompt, courteous and personal service it continuously provides to its customers. The recent addition of a GSA Fleet contract offers dealers and the public even more options, with monthly GSA auctions at the state-of-the-art facility at exit 409 off Interstate 80, on Highway 6.

Auctions start at 10 a.m. every Wednesday for auto dealers, hosted by the Midwest’s finest group of auctioneers. For up-to-date information regarding dealer and GSA auctions, visit www.lincolnautoauction.com.

Lincoln Auto Auction Celebrates 20th Anniversary

Ryan Durst (left) works the auction stand at the Wednesday auction.

RENEWALS Wheel-N-Deal Auto Sales Fairbury (1996)

Dan Tworek Repair Columbus (2004)

Cahoy’s Auto Sales Norfolk (1999)

Stahla Homes & RV’s Norfolk (2008)

Auto Express of Norfolk Norfolk (2010)

Bill Von Tersch Valley (2009)

Star Class Motors Papillion (2010)

Bogert’s Auto Sales Kimball (1994)

Luna Motors LLC Omaha (2007)

Bill’s Auto Sales Columbus ( (2004)

Bridge Street Auto Lexington (2001)

Ray’s Auto Sales Superior (1992)

American Auto Sales Bellevue (1993)

Twin City Motors Scottsbluff (1993)

Anderson Auto Sales Columbus (2000)

Nu-Trend Mobile Homes Inc. Omaha (2006)

Kelly’s Auto Sales Elm Creek (2004)

Auto Service Inc.Mt. Home, AR (2001)

Auto America Inc.Grand Island (2001)

Taylor & Martin Inc.Fremont (1987)

Hi-Line MotorsKenesaw (1978)

Martinez Auto SalesSo. Sioux City (2006)

Diamond T Truck & TrailerBeatrice (2001)

Hayes Auto SalesSuperior (2003)

ABC Auto SalesLincoln (2001)

Tracy Sportline Auto SalesColumbus (2004)

College View Auto SalesLincoln (2005)

Catherland Auto SalesRed Cloud (1995)

Wayne’s Auto SalesValley (2001)

Troy’s Auto WorldHomer (2007)

NEW MEMBERSDick’s Motor Co.716 W. 5th St.Grand Island, NE 68801(308) 384-2554Steven Hanquist

Nebraska Auto Sales6220 L St.Omaha, NE 68117(402) 208-0035Jose deJesus Hermosillo

Renewals & New Members

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Autobytel Launches Mobile Website

Autobytel Inc. has launched a dedicated mobile version of its website.

Studies show shoppers prefer using a browser to a downloadable mobile app, so Autobytel’s mobile website was developed from the ground up with today’s mobile consumer in mind. Autobytel mobile includes many of the popular features on the full website built specifically for the mobile environment.

The site features a customized dealer directory that allows consumers to find local dealers as well as new and used vehicle research and automotive industry news, and customized shopping tools such as a used car finder, car calculators and the ability to determine used car values and submit purchase requests directly to dealers.

For more information, visit www.autobytel.com.

M O B I L E N E W S

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M A R K E T I N G N E W S

Help Your Dealership Go for the GoldThink your shot at living like an Olympian

ended after your high school or college athletic career?

Think again.Successful Olympic athletes employ a set

of traits and techniques you can still use to help market your car dealership. The elements that work together to create popular medalists, with thousands or millions of people rooting for them, can similarly elevate your dealership in the eyes of your customers.

On the website marketingprofs.com, Veronica Maria Jarski showed how winning Olympians’ behavior relates to marketing, and that applies perfectly to the way your car dealership can win by adopting the same focus.

Don’t believe it? Here’s how you can use what works for the gold medal winners:

Share your story: The personal story behind the winners often creates massive support for one athlete or another, or sometimes an entire team. You weren’t dropped onto this earth running a successful auto dealership, so go ahead and share what it took to get there.

Every dealership began with a lifelong love of cars, a careful plan or a less-than-direct route that included far-flung adventures. Whatever the story, knowing it helps people identify with you. Understanding the journey

builds support for current success. Deliver on your promises: Actions count

far more than words, so prove what matters to you with every engagement, every customer and every sale. The claims you make about what distinguishes your dealership carry a lot more weight when they’re backed up in the interactions that happen minute by minute.

Use the right tools: A diver can’t use a pommel horse and a gymnast doesn’t get any mileage out of a pool. Make sure your marketing messages go to the audiences that can use them best. Your brand and your message should be consistent, but it’s smart to craft and deliver the relevant points with laser targeting.

Details, details: Try to think about the dealership experience from a customer’s perspective. The little details of each phone call or visit are critically important in shaping the impression visitors take away from any contact.

It’s all connected: Authenticity matters everywhere your dealership has a presence. The customers who seem to disappear are still making waves and influencing your reputation long after they’ve left the premises. What happens on the showroom floor and in the finance department today will assuredly be reflected someday, somehow, in a conversation online or in person where you don’t hear it.

You can only run today’s race today: Letting go of the past, wins and losses alike, is the best way to free up energy to focus on today’s challenges. Learn from what worked and what didn’t, but greet each new customer with fresh and full intent to create a lasting asset.

Remember the team: Good sportsmanship is appealing. Acknowledging all the people who make your dealership successful is as relevant as the cars and deals themselves. From the manufacturers to the service personnel, your team merits respect and appreciation. They will appreciate the recognition, too. Happy employees will work harder and are more loyal.

While you might never stand on a podium and proudly listen to the national anthem while your fans cheer wildly, you can certainly enjoy strong popular support and the loyalty of customers who see you as a winner.

Follow these strategies and go for the gold!

BY JIM FITZPATRICKJIM FITZPATRICK IS PRESIDENT/CEO OF FITZPATRICK ADVERTISING, A FULL-SERVICE AUTOMOTIVE ADVERTISING AGENCY, AND FOUNDER OF FORCE MARKETING, A DIGITAL AND DIRECT MARKETING COMPANY. FOR MORE INFORMATION, CALL 1-800-917-8637, EMAIL [email protected] OR VISIT FITZPATRICKADVERTISING.COM.

M A R K E T I N G N E W S

Report: Expect to See More HybridsExpect to see more hybrids cruising

around the world’s highways in the next few years.

According to market research report distributor ReportStack.com, the global hybrid car market is expected to grow at a rate of 18.92 percent over the next three years.

The cause for the potential double-digit growth: increasing global oil consumption, the report, titled “Global Hybrid Car Market 2011-2015,” explained.

Moreover, as governments around the world try to cut down on fuel emissions, the hybrid car market has “been witnessing an increase in initiatives by governments to create awareness and acceptance of hybrid cars,” the report said.

The report also cites labor arbitrage, such as the various advantages offered

by the hybrid car to the end user, such as energy efficiency, less pollution, better performance, reduced dependency on natural resources and more, as reasons for the hybrid market expansion.

That said, even with the push from politicians, the high cost of hybrid cars is acting as a barrier to the market growth, the report said.

‘’With the time and research on the development of the battery systems of hybrid cars, the overall cost of batteries and total cost of ownership will decrease,” an analyst from the publishing automotive team said. “By 2014, the total cost of ownership of plug-in hybrid electric vehicles with a battery of 10 kilowatt-hours will be below that of an internal combustion engine vehicle, and by 2017, the total cost of ownership of plug-in

hybrid electric vehicles with a battery of 15 KWh will be lower than an internal combustion engine vehicle.

“The total cost of ownership of battery electric vehicles will be less than an internal combustion engine vehicle by 2020 with the development of batteries. This reduction in cost will fuel the growth of the global hybrid car market.”

Who will benefit most from this potential growth?

The vendors currently dominating the hybrid market space include Toyota Motor Corp., Honda Motor Co., Ford Motor Co., and Nissan Motor Co. Ltd., the report noted.

General Motors Co., BMW AG and Volkswagen Group are also expected to play a role in the future fuel-efficient vehicle market.

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Nebraska Independent Auto Dealers Association Order FormNEBRASKA INDEPENDENT AUTO DEALERS ASSOCIATION

ORDER FORM Quanity FORM DISCRIPTION Price Amount ___________ Application of Title …old style………………………100/pad $7.50 _________ ___________ Application of Title,,,,(transfer on death)…………….100/pad $8.50 _________ ___________ Car Inventory Folders ( blue pink green Buff )...per 50 $10.00 _________ ___________ Car Paper Envelopes ( white) (members only)…….Each $0.55 _________ ___________ Consignment Forms………………………………..100/pack $8.50 _________ ___________ FTC Buyers Guide 2 part…………………………..100/pack $9.00 _________ ___________ FTC Buyers Guide Spanish……………………….100/Pack $12.50 _________ ___________ FTC Plastic Buyers Guide holders……………………...each $0.55 _________ ___________ Goodwill Adjustment Forms …………………………..25/pad $3.50 _________ ___________ Key Tag boards ( holds 32 keys) (plastic) …………..each $6.50 _________ ___________ Key Tags Rigid Plastic yellow or white………..100/pack $12.50 _________ ___________ Key Tags cardboard yellow, white, blue or green ……….100/pack $10.00 _________ ___________ Key Tag EZ tags blue, orange, red, blue, multi, yellow, white 250/box $27.50 _________ ___________ License Plate Magnets (tape) ………………………….each $8.00 _________ ___________ License Plate holders (rubber) ……………………… each $10.00 _________ ___________ License Plate Holders (rubber w/ magnet) ………….each $14.00 _________ ___________ License plate screws ( Thumbscrews)………….. 50/box $12.50 _________ ___________ License plate screws ( pan or metric)…………..100/box $8.00 _________ ___________ NADA Used Car guide ( late model cars )……..each book _________ ___________ NADA Used Car Guide (older cars)……………. each book $30.00 _________ ___________ NADA Used Car Guide subscription…….CALL FOR RATE ___________ NE Vehicle purchase contracts…………………….. 50/book $10.00 _________ ___________ ( Imprinted 5 books - $95.00 10 books - $135.00 _________ ___________ Odometer Disclosure Forms …………………………. 50/pad $4.50 _________ ___________ Power of Attorney (secured)…………………… 50/pack $17.50 _________ ___________ 48 Hour form…………….(2 part)……………………. 50/pad $4.00 _________ ___________ Test Drive Agreements...(2 part)……………………….. 50/pa $7.50 _________ ___________ Intransits 100/pack $19.00 _________ ___________ Imprinted 500 $125.00 1000 $215.00 _________

Set up fee on imprinted $15.00 on new or changed orders

Installment contracts ___________ BSI ( Bankers system)……………………………….50/pack $99.00 _________ ___________ LAW ( Reynolds & Reynolds) …………………….100/pack $149.00 _________

------------------------------------------------------------------------------------------ NEBRASKA IADA ALL ORDERS PLUS SHIP/HANDLE AND SALES TAX P.O. BOX 29107 10% MEMBER DISCOUNT LINCOLN, NE 68507. SEE BACK SIDE FOR MARKETING AIDS (800) 659-5453, (402) 464-2089, FAX (402) 464-8878 ORDERS PLACED BY 2:00 GO OUT SAME DAY www.neiada.com email, [email protected] Dealership Name__________________________________________ Dealer #; _____________________ Address; _____________________________________ City; _____________________ Zip; ___________ Phone; ___________________ Fax:___________________ Person Placing Order___________________ Office hours are 9:00 – 5:00 Monday – Thursday, Friday 9:00-3:00. Office is at 56th & Cornhusker Highway for those wishing to stop in for forms. Prices subject to change May, 2012

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Quanity FORM DISCRIPTION Price Amount ___________ Application of Title …old style………………………100/pad $7.50 _________ ___________ Application of Title,,,,(transfer on death)…………….100/pad $8.50 _________ ___________ Car Inventory Folders ( blue pink green Buff )...per 50 $10.00 _________ ___________ Car Paper Envelopes ( white) (members only)…….Each $0.55 _________ ___________ Consignment Forms………………………………..100/pack $8.50 _________ ___________ FTC Buyers Guide 2 part…………………………..100/pack $9.00 _________ ___________ FTC Buyers Guide Spanish……………………….100/Pack $12.50 _________ ___________ FTC Plastic Buyers Guide holders……………………...each $0.55 _________ ___________ Goodwill Adjustment Forms …………………………..25/pad $3.50 _________ ___________ Key Tag boards ( holds 32 keys) (plastic) …………..each $6.50 _________ ___________ Key Tags Rigid Plastic yellow or white………..100/pack $12.50 _________ ___________ Key Tags cardboard yellow, white, blue or green ……….100/pack $10.00 _________ ___________ Key Tag EZ tags blue, orange, red, blue, multi, yellow, white 250/box $27.50 _________ ___________ License Plate Magnets (tape) ………………………….each $8.00 _________ ___________ License Plate holders (rubber) ……………………… each $10.00 _________ ___________ License Plate Holders (rubber w/ magnet) ………….each $14.00 _________ ___________ License plate screws ( Thumbscrews)………….. 50/box $12.50 _________ ___________ License plate screws ( pan or metric)…………..100/box $8.00 _________ ___________ NADA Used Car guide ( late model cars )……..each book _________ ___________ NADA Used Car Guide (older cars)……………. each book $30.00 _________ ___________ NADA Used Car Guide subscription…….CALL FOR RATE ___________ NE Vehicle purchase contracts…………………….. 50/book $10.00 _________ ___________ ( Imprinted 5 books - $95.00 10 books - $135.00 _________ ___________ Odometer Disclosure Forms …………………………. 50/pad $4.50 _________ ___________ Power of Attorney (secured)…………………… 50/pack $17.50 _________ ___________ 48 Hour form…………….(2 part)……………………. 50/pad $4.00 _________ ___________ Test Drive Agreements...(2 part)……………………….. 50/pa $7.50 _________ ___________ Intransits 100/pack $19.00 _________ ___________ Imprinted 500 $125.00 1000 $215.00 _________

Set up fee on imprinted $15.00 on new or changed orders

Installment contracts ___________ BSI ( Bankers system)……………………………….50/pack $99.00 _________ ___________ LAW ( Reynolds & Reynolds) …………………….100/pack $149.00 _________

------------------------------------------------------------------------------------------ NEBRASKA IADA ALL ORDERS PLUS SHIP/HANDLE AND SALES TAX P.O. BOX 29107 10% MEMBER DISCOUNT LINCOLN, NE 68507. SEE BACK SIDE FOR MARKETING AIDS (800) 659-5453, (402) 464-2089, FAX (402) 464-8878 ORDERS PLACED BY 2:00 GO OUT SAME DAY www.neiada.com email, [email protected] Dealership Name__________________________________________ Dealer #; _____________________ Address; _____________________________________ City; _____________________ Zip; ___________ Phone; ___________________ Fax:___________________ Person Placing Order___________________ Office hours are 9:00 – 5:00 Monday – Thursday, Friday 9:00-3:00. Office is at 56th & Cornhusker Highway for those wishing to stop in for forms. Prices subject to change May, 2012

PayNearMe, the cash transaction network, has launched PayNearMe Lending, a cash payment system for subprime lenders, and has teamed with Westlake Financial Services to integrate PayNearMe’s technology into existing systems, enabling customers to repay retail installment contracts in cash 24/7 at any of 6,600 participating 7-Eleven® stores nationwide.

Using PayNearMe, customers of Westlake’s network of more than 15,000 new and used car dealers will be able to make account payments in cash at their local 7-Eleven store, where a unique loan barcode or PayNearMe Card is scanned at the register. With PayNearMe, the transactions are completed instantly, and consumers’ accounts are credited instantly.

“PayNearMe offers a remarkably simple way to make our collections process more efficient,” Westlake director of operations John Mason said. “We anticipate reduced operational costs while adding payment locations for our customers.”

“Subprime lenders need to make cash payments as easy as possible for themselves and their consumers,” PayNearMe CEO Danny Shader said. “We’ve dramatically changed how cash payments are made by opening up thousands of additional payment locations, accessible any time they are needed.”

PayNearMe Lending, a secure hosted web application, provides a comprehensive turnkey service lenders can use to accept cash payments without integration. Lenders can set up PayNearMe Lending in less than 15 minutes and start collecting immediately, and can add additional sites almost instantly. Because PayNearMe Lending does not require any integration with existing systems, it can be used by lenders of any size.

“We appreciate that PayNearMe allows our customers to make payments at any time,” Tidalwave Finance Corp. president Ted Beresford said. “In fact, we’ve been pleasantly surprised by how many customers make their payments at 10 p.m.”

V I S I T W W W. PAY N E A R M E . C O M

Westlake Financial Adds PayNearMe’s Technology

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

There is no denying that dealers and lenders have grown accustomed to a regulatory environment that is constantly changing, with new laws and regulations.

But today’s regulatory landscape is different than it was years ago – and not just because the requirements continually change.

If you feel like it’s becoming increasingly complex, you’re not alone. Here are the likely culprits:

Shorter notice: Some states have started publishing regulatory changes on rather short notice. For example, in New Mexico the attorney general recently gave 30 days’ notice to add a new spot delivery disclosure to the sales transaction document or purchase order.

The short notice was made worse because a proposed regulation had not been published – at least not recently – so the final regulation came as a surprise to the industry. While one month might feel

Regulatory Landscape Feeling Tougher? You’re Not Alone

like a long time to add one disclosure, the required notice is quite large and requires substantial formatting changes to the documents affected.

The attorney general eventually delayed the effective date of the regulation by 60 days, apparently after significant industry feedback.

More frequent changes and updates: Across the country, there seem to be more frequent changes being made. That has clearly been the case with state motor vehicle title forms. Previously, those forms were rarely revised. But over the past few years, some states have changed their title forms as many as two or three times per year.

One potential driver for that might be that technology now allows states to redesign and reissue their forms and revise (increase) the related fees more easily. But often the changes come with little or no notice, which underscores how important it is for dealers and lenders to be confident in their ability to monitor the changes that are constantly taking place.

Volume of information: While it can be difficult to keep up with the pace of change and various deadlines and effective dates, it’s also quite a task to consume the volume of information and content surrounding new laws and regulations.

For example, the Consumer Financial Protection Bureau (CFPB) published a proposed rule July 9 regarding integrated mortgage disclosures under RESPA and the Truth in Lending Act. It was one of the first significant proposed rules from the CFPB, and the planning process involved extensive research and solicitation of industry and consumer feedback.

As a result, the proposed rule and explanatory materials total more than 1,000 pages. The good news is the proposed rule provides significant details and explanations of the changes. The bad news is that many pages of material can be overwhelming (aren’t you glad you’re not in the mortgage lending business?).

Operating in a highly regulated industry, one can’t help but wonder if that is an indication of the volume of change yet to come and how dealers and lenders will absorb all of the changes and their nuances.

Disparate technology systems: Though computer technology allows us to do many things faster than before, disparate file formats, field naming conventions, calculation engines, software and hardware, and reliance on multiple vendors can make it difficult to quickly change or revise transaction documentation and its completion tools. That often means all the component parts need to be updated in sequence rather than in parallel – adding more time to make the required changes.

Today’s environment is characterized not only by constant change, but by tougher enforcement as well. There is more visibility and greater scrutiny of compliance and risk management in all organizations. Dealerships and financial institutions should regularly question whether they feel confident that new laws and regulations are being embedded in their business operations.

The challenges underscore a need for greater operational efficiency. Disparate systems and procedures can make even relatively simple changes more time-consuming and complex.

As you prepare for additional changes, consider reviewing your process maps, technology, vendor coordination and steps necessary to respond to compliance changes. Creating greater operational efficiency now will make it that much easier for you to respond to the inevitable next compliance crunch-time event.

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

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NEIADA Dealer Updates Sept/Oct 2012

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Transcript of NEIADA Dealer Updates Sept/Oct 2012