Spring 2012 Magazine

Spring 2012

Volume 33 number 2 • Spring 2012

Symbol of Quality

Dealer Track VA EZ-Temp? (page 6)Tracy Myers (page 15)2012 Convention Information (centerfold)Record Retention for Auto Dealers (page 20)

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

three convenient locations:

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

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

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

Your Place To Be On Tuesday, Wednesday, and Thursday

2

Co lu m n s5 From the President: Gail Davis5 Honoring Governor Bob McDonnell7 Executive Director’s Notes9 Missed Directory Contacts10 Around the Commonwealth12 VIADA Ladies Auxiliary12 2011-2012 VIADA Ladies Auxiliary Officers13 BuyHere/PayHere14 Member Bulletin Board15 Upcoming VIADA Events/VIADA Honors Select Partners16 Convention Registration and Information17 Convention Schedule of Events21 VIADA PAC Contributors22 VIADA Renewals23 VIADA New Members23 VIADA’s Modernization Fundraiser24 Upcoming Events & Selected Partners25 Member Bulletin Board

Fe at u r e s6 Dealer Track VA EZ-Temp8 Warranties, Doing it Right with Reinsurance14 How is the Traffic at VIADA’s Website, www.virginiausedcardealers.com15 Tracy Myers19 News in Brief20 Record Retention for Auto Dealers24 Clearing Up Credit Card Misconceptions26 VIADA Announces Stars GPS as its Newest Preferred Member Benefit Provider28 Inventory Acquisition 10130 The Internet Corner

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

products or services featured.

The VirginiaIndependent News A VIADA Publication

Virginia Independent Automobile Dealers Association

4700 Thoroughgood Square Virginia Beach, VA 23455-4043

757.464.3460 l 800.394.1960 FAX 757.460.1346

e-mail: [email protected] www.viada.org

Lois Keenan Executive Director

[email protected] Boling

Government Relations [email protected]

Peter V. Iaricci Trainer/Consultant

[email protected] H. Allman

Auction Representative [email protected]

Madison Ellis Office Manager/Bookkeeper

[email protected]

Stephanie Hand Publications

[email protected] Lucia Membership

[email protected]

Vickie LondonOffice Assistant

[email protected]

VIADA OFFICERS 2011-2012Chairman of the Board - John Porter

President - Gail Davis

President Elect - LexaLynn Hooper

Vice Presidents - Howard Kershaw Alvin Melendez

Donald Boucher, Jr.

Secretary - Bobby Steele Treasurer - Rodney Williams

The Virginia Independent News

“Don’t Gamble With Your F inances in 2012”

Volume 33 Number 2 • Spring 2012

Symbol of Quality

3

Spring 2012 The Virginia independenT newS

MORE DEALERSG E T M O R E M I L E A G E F R O M

PREFERRED WARRANTIES

In 2011, lots of companies struggled. Some went out of business. Preferred Warranties grew 28%. In fact, 983 more dealers switched to us. We get more business because we give more to our dealers and their customers:

Confidence. We’ve been earning the trust of dealers and customers since 1992, and we’re insured by an “A-“ rated carrier.

Real service. Get answers, not answering machines. And claims are paid in 5 days or less, no hassles.

More Profits. You’ll work with a regional sales consultant dedicated to helping you maximize the profit potential of Preferred Warranties’ service contracts.

Call today to schedule your 30-minute visit!Spend a little time with a sales consultant & learn how you can grow your business withPreferred Warranties.

(800)-548-1121

ChrisOwner, Auto DiscountersRichmond, VA

Customers don’t blame the warranty

company when a problem arises: they blame

the dealer who sold them the warranty.

Preferred Warranties has always gone the

extra mile for our customers. The fact that

you have real people answering the phones

24/7 is amazing and speaks volumes about

Preferred Warranties! We definitely get our best return on

investment, by far, with Preferred Warranties, because we retain our

customers and get referrals and repeat

sales.

Warranties and service that go the extra mile.

1

99 2 - 2 0 1

2

®

Celebrating 20 Years of Exceptional Customer Service.

www.warrantys.com

PWI Odometer Ad_2012_VIADA.indd 1 2/15/12 8:08 AM

Spring 2012The Virginia independenT newS

MORE DEALERSG E T M O R E M I L E A G E F R O M

PREFERRED WARRANTIES

In 2011, lots of companies struggled. Some went out of business. Preferred Warranties grew 28%. In fact, 983 more dealers switched to us. We get more business because we give more to our dealers and their customers:

Confidence. We’ve been earning the trust of dealers and customers since 1992, and we’re insured by an “A-“ rated carrier.

Real service. Get answers, not answering machines. And claims are paid in 5 days or less, no hassles.

More Profits. You’ll work with a regional sales consultant dedicated to helping you maximize the profit potential of Preferred Warranties’ service contracts.

Call today to schedule your 30-minute visit!Spend a little time with a sales consultant & learn how you can grow your business withPreferred Warranties.

(800)-548-1121

ChrisOwner, Auto DiscountersRichmond, VA

Customers don’t blame the warranty

company when a problem arises: they blame

the dealer who sold them the warranty.

Preferred Warranties has always gone the

extra mile for our customers. The fact that

you have real people answering the phones

24/7 is amazing and speaks volumes about

Preferred Warranties! We definitely get our best return on

investment, by far, with Preferred Warranties, because we retain our

customers and get referrals and repeat

sales.

Warranties and service that go the extra mile.

1

99 2 - 2 0 1

2

®

Celebrating 20 Years of Exceptional Customer Service.

www.warrantys.com

PWI Odometer Ad_2012_VIADA.indd 1 2/15/12 8:08 AM

In October of this past year, we had the rare opportunity to sell a vehicle to a serviceman stationed in Germany, Iraq and Afghanistan all within a week and half of each other. While this may seem to be a scary proposition, it went very

smoothly. The main thing is to be open to new opportunities. While none of the vehicles actually went to these countries, the servicemen in two of the countries did not live in our locality; one in southeastern Virginia and the other Kansas. One did live in our area and we delivered the vehicle after purchase to his front door.

This just reinforces how small the world is with the internet. They found the vehicle they wanted, emailed and talked with us through “skype”. In one case, we even customized the truck after purchase according to their specifications. His only request -- send him a picture when it was finished. We were more than happy to work through any obstacles in order to

accomplish the sale for these men that are serving our country.My slogan for the year is “Growing towards the future”. That was my slogan for VIADA, but it can just as easily be said for our business. To be able to talk to someone on the other side of the world, sell them a vehicle, has been a growing experience for us. And for them to put their confidence and trust in us has been a very rewarding experience. Skeptical at first? Of course I was with all the scams we hear about; but I was open minded enough to follow through and work it out. Growing – that’s what it’s all about. That’s what is so great about the automotive business, everyday presents new opportunities for growth.

Speaking of growth -- if you have never attended a VIADA convention, this is the year to make that growth move yourself. What an opportunity to stretch yourself, learn about new opportunities, new vendor services, and network with other dealers and all at a resort the Today Show listed as one of the top 5 resorts in the world. It doesn’t get any better than this. Looking forward to seeing you July 26-29th, 2012 at the convention at The Homestead in Hot Springs, Virginia.

From the PresidentBy: Gail Davis; Davis Auto Sales

Times are Changing -- The World is beComing smaller

March 5, 2012Reception

Executive Mansion

VIADA’s Board attendees included Tina Allman, Sonny Arrington, Jimmy & Gail Davis, Joe Falk, Steve Farmer, Lynn & LexaLynn Hooper, Pete

Iaricci, Lois Keenan, Donnie Keene, Wanda Lewark, Jim Luehrs, Ed Lyman, Alvin & Tommie Melendez, Jim Millner, Bill & Sandra Moss, Billy Mullins, Gary Oliver, Bill Parrish, Mack Payne, Stuart Peck, John Porter, Richard Semones, John Summer, Joe Tate,

Joel Tosh, Eddie Windsor, Sammy Wright

Governor BoB mCDonnellHonoreD auto InDustry leaDers

5


The DealerTrack Virginia EZ-Temp (VA EZ-Temp) is a print-on-demand temporary registration application developed in partnership with the VIADA. VA EZ-Temp enables dealers to print temporary registration documents and temporary tags from the comfort and convenience of their office, reducing trips to the DMV and saving both time and money. This shift to electronic temporary registration also provides more control over the registration process, resulting in faster, easier, more secure, and more accurate transactions.

While deal information can be entered manually, using the DMS Import feature of VA EZ-Temp saves time by eliminating the need to rekey data. Dealers can also enter the existing customer number and VIN to get detailed customer and vehicle information.

VA EZ-Temp assigns a unique temporary tag number and expiration date to each transaction. The tag, along with the temporary registration, can then be printed and attached to the vehicle. The temporary registration card is separated and given to the registrant. DealerTrack is making this process even more convenient with newly-available off-hour processing.

Temporary registration information, along with information provided by the dealership, is updated at VA DMV where it is stored in a file and indexed by the temporary tag number. This information is accessible to law enforcement agencies in real time through the current Virginia Criminal Investigation Network (VCIN) application.

VA EZ-Temp enables dealers to recall previous transactions and reprint temporary tags with no limitations (except for expired tags) so they may provide replacements or file copies for their own records. Dealers may also apply for up to two (2) sets of subsequent tags for vehicles being registered out-of-state with no pre-approval from DMV required. Temporary tags may be voided at any time up to the date of expiration. VA EZ-Temp tracks the number of finalized temporary tags issued by the dealer, and daily charges are payable through DealerTrack via Automated Clearing House (ACH).

Because fees can be passed on to the registrant, temporary registration documents processed through VA EZ-Temp are issued at NO ADDITIONAL COST to the dealer.

Inquiries made through DealerTrack VA EZ-Temp return owner, vehicle, and expiration information in real time. With VIN and temporary tag numbers now linked electronically, VA EZ-Temp virtually eliminates the unauthorized use and/or theft of temporary tags. Additionally, dealers are no longer required to order, stock, and track specialized inventory - temporary plates can be printed in both standard and motorcycle sizes, and dealers can choose to personalize the tags with their own logo for an additional one-time charge.

Take advantage of DealerTrack’s trusted partnership with VIADA, and enjoy the benefits of working with an industry leader with decades of experience in motor vehicle processing. In addition to VA EZ-Temp, DealerTrack offers a comprehensive suite of solutions, including the Virginia Online Registration System (VA-OLRS) and RegUSA out-of-state registration and titling services, designed to streamline your workflow and improve your total motor vehicle processing experience.

For more information, contact Mike Audette at 860.448.3177, ext. 4645, or [email protected].

are you usInG your vIaDa loGo?Don’t forget one of the benefits of being a VIADA member is using the official logo in your advertising, letterhead, fax coversheets and other correspondence.

The logo is a symbol of honesty, trust, fairness and quality and should be proudly displayed by all VIADA members. Your

customers will come to recognize and respect the seal and look for

it anytime they purchase a vehicle.

The VIADA office has camera ready logo slicks available free of charge to members.

Contact us today at (800) 394-1960 or (757) 464-3460 or email us at [email protected] for your copy so you can let the world know you are a proud VIADA member!

Symbol of Quality

Dealer Track VA EZ-Temp

6


exeCutIve DIreCtor’s notes

I recently had the opportunity to review, with interest, a discussion on “Measuring Return

on Investment.” It was an overview of marketing and sales; question being, If desired results of our efforts are not

realized, how do we know if we have a marketing problem or a sales problem?”

All of the above are crucial, but without a tracking mechanism, you will not know which dollars spent are reaping results. You have read a number of articles in this magazine printed in the Internet Corner about how you can measure such results on the internet. Many print publications now offer tracking. I have heard discussions among our members of using a specific telephone number for each ad campaign. Emails, faxes, and direct mail are typically easy to track but phone calls are a little different.

It was emphasized that you cannot rely on numbers provided when a receptionist asks “How did you hear about us?” The average caller no doubt has one particular vehicle in mind and is giving little thought to where the information originated.

Once the numbers of incoming calls are known, then you need to know how many sales resulted from these calls. If the number of sales was low, perhaps it is time to look toward how sales were conducted.

1. Are the phones and emails answered promptly and courteously?2. Is the one responsible for answering the call(s) knowledgeable about the ad in order to answer questions, and/or direct calls to the sales team without losing the interest of the prospect?3. Through marketing you created a promise that links to an expectation for a certain level of expertise in the representation of the sale. Does the sales team have the incentive and knowledge to overcome objections and make the customer know his/her wants, needs, and desires are paramount?

There will never be a replacement for a good first impression. There are programs available to monitor incoming calls and the entire sales process to determine where training could be improved.

The journey to “measure return on investment” is very time consuming, but the end result will not only provide increased sales, but also give data to further expand your business opportunities.

In evaluating marketing, ads should include • testimonials• an offer by creating a promise• a call to action• a tracking mechanism

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Warranties, Doing it right With reinsurance!

Assistance including towing. An 800 number for customers to call for nationwide coverage with a professional claims team to look out for your best interest. When a claim occurs our professional claims team will decide if the claim is covered, based on the warranty language initially agreed upon. You can custom design the coverage that is best for you and your customers. Another important difference from the third party warranty for the BHPH dealer is, customers can finance the cost of the warranty with your warranty company. A prorated portion of the cost of the warranty is collected and forwarded to the dealer’s reinsurance company trust account.

Reinsurance Trust Accounts, which are located in the United States are, just as indicated, a Trust. Trust are recognized as the safest place to keep money and the dealer reinsurance trust account is not comingled, but stands on its own. Trusts do not have checking accounts nor do they make loans to others, like a bank, with your money. The unearned premiums in a Trust account can only be used as outlined in the Trust agreement. In this case, to pay your customers claims.

The monies paid by the customer for their vehicle service contract (VSC) is set aside as reserve in your Trust account, as I indicated above. Any reserve not used to pay claims becomes profit. As an example if you sell an average of 20 vehicle service contracts per month, and $800 goes into reserve from each customer’s VSC, loss ratios vary but for this example let’s say, $400 or 50% of every contract on average is used to pay claims. This leaves a $400 profit, which is $96,000 in additional dealer net profit per year and $480,000 additional dealer net profit at the end of five years. This does not include the retail profit made from the sale of the Vehicle Service Contract. If you sell third party vehicle service contracts now, the earned reserve is retained by the third party warranty company as their profit, in this case $96,000 per year.

Another very important benefit to owning your warranty company is tax benefits. I am not a CPA, but I know some good ones. They tell me in layman terms, these reinsurance companies are small Property and casuality companies. “Small property and casualty insurance companies with less than $1,200,000 in annual net premiums may elect to be taxed only on investment income under Internal Revenue Code 831 (b).” Distributions are taxed at the dividend rate, currently 15%. These corporations, unlike “S corporations” or Limited Liability Corporations (LLC) where income flows through to the shareholders annually, are “C corporations”. 831(b) C corporations allow the shareholder a more long term approach. If a distribution is not desirable, you can retain the money in your reinsurance company or, you or your other business entities may borrow money from your reinsurance company. 831(b) Corporations make great retirement programs. Earned reserve can be invested in stocks, bonds or other securities within the Trust account. 831(b) corporations make a great estate planning tool.

Every day in Buy Here Pay Here, New and Pre-owned operations there are universal problems which all dealer’s face. Mainly vehicles breakdown and customers don’t have the money for repairs. Which equals upset customers and repossessed vehicles. So, you better have a plan. The options which I see most dealers choose include:

Buying a third party warranty or service contract to sell the customer? This has its own problems. Laying out that upfront cash, for a BHPH dealer, can put a big dent in your lending pool and is expensive for all dealers. Dealers using a third party warranty are faced with the fact that someone other than yourself is making the business decision of whether or not the repair for your customer is covered. If the claim is denied you can beg, endure the frustration, put them on a side note or end-up paying for it as good will if you want to keep the customer and not tarnish your reputation .

Setting money aside (reserve) and pay for repairs as they come up. Sounds like a good idea, doing it yourself, but this reserve money must be counted as gross profit. Any money you set aside in an account or put in a drawer, you will have to pay taxes on that money. You can reduce your expenses with your claims, but paying 35% or so on what’s left of your reserve seems like an expensive way to go. So unless you are going to fly by the seat of your pants and just take’em as they come, you need structure as well as reserve. What’s covered, what’s not, because if everything is covered with no parameters, you are by law implying a lifetime bumper to bumper warranty. In addition, keeping up with claims and accounting internally, can be very difficult and labor intensive and only gets worse if your customer breaks down out of town.

Using the 50/50 method where you and the customer split the repair bill. This might work for inexpensive claims, but again the customer is going to be required to come up with money and we know how effective that plan is. That leaves you paying all or most of the bill (once again dipping into gross profit) or enduring a tarnished reputation or increased repossessions. This again raises the question, what happens if your customer breaks down out of town and out of your control? Your best option is setting up a Dealer Owned Reinsurance Company. Turnkey, Dealer Owned Reinsurance Companies, also known as Producer Owned Reinsurance Companies or 831(b) corporations, based on the Internal Revenue Code 831 (b). Reinsurance has been around for 30+ years and was first used by larger dealers to reinsure Credit Life, Accident and Health Insurance, and warranty/service contract products. Reinsurance companies are formed with minimal capitalization requirements.

By setting up a Dealer Owned Warranty Company you get all the benefits of a third party warranty company via claims management and accounting. Administrator Obligor. Structured coverage with Roadside

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is a trusted advisor to many car dealers. Tim is married and has 5 beautiful children. Tim has been featured in The Virginia Independent News, Special Finance Insider, Around the Commonwealth and the Dealer Business Journal.

Website: www.timbyrd.netBlog: www.timbyrd.net/blogFacebook: www.facebook.com/reinsurance101Twitter: www.twitter.com/TimByrdRE1LinkedIn: www.linkedin.com/pub/tim-byrd/34/3b9/56aemail: [email protected] Compromise Hill RoadGloucester, VA 23061757-532-3938 main contact number804-693-6707 fax

AUTO PLUS LLC4601 Columbia PikeArlington, VA 22204Ph: 703-271-1000 Fax: [email protected] Pooresmaeil

BILL FARY AUTO, INC.PO Box 826Gloucester, VA 23061Ph: 804-693-3541 Fax: [email protected] Fary

BOB’S AUTO CENTER, INC.2150 N Marine Blvd.Jacksonville, NC 28546Ph: 910-346-3776 Fax: [email protected] Mills

BROWN’S AUTO SALES101 Moore AveSmithfield, VA 23430Ph: 757-357-4086 Fax: [email protected] Brown

BRYANT MOTORSPORTS AUTO SALES, INC.2230 High StPortsmouth, VA 23704Ph: 757-393-2600 Fax: [email protected] Chinn

BUDGET AUTO SALES808C S Military HwyVirginia Beach, VA 23464Ph: 757-424-4390 Jim Dalby

CALVARY CARS & SERVICE, INC.1417 N Military HwyNorfolk, VA 23502Ph: 757-461-1402 Fax: [email protected] Cerza

CAR CHOICE6626 E Virginia Beach BlvdNorfolk, VA 23502Ph: 757-466-0024 Fax: 757-466-0478credit@carchoiceonline.comwww.carchoiceonline.comShahab Rahimzadeh

CAR FINANCIAL SERVICES, INC.4815 Snowmass RdGlen Allen, VA 23060Ph: 704-264-1500 Fax: [email protected] Perryman

Sorry for the mishap! We had some computer problems when doing the contacts, here are all the missed contacts

from the Directory.

So, with a Dealer Owned Reinsurance Company, you have Nationwide Warranty Coverage which is paid for by your Customer. Accounted as a dealership expense, saving you tax dollars on the dealership side. Control over policy design. With a New Profit Center that is Income Tax Friendly, to say the least.

Warranties and Vehicle Service Contracts are not the only products that can be reinsured. One which Buy Here Pay Here dealers may not be familiar with is Voluntary Debt Cancellation Coverage (DCC), but that’s for another day.

Bio DataTim Byrd is Founder and President of Tim Byrd & Associates, Inc located in Gloucester, Virginia. An Auto Industry Expert on Dealer Owned Reinsurance Companies and F&I Development. A 25+ year veteran of the car business, Tim

Missed director y contacts

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diSTricT 1 TidewaTer Virginia

Wow what a difference a few months make. February is the shortest month but we sell the most vehicles. Wholesale prices are through the roof but sales are great. In our area if you didn’t stock up in the last few months its tough buying now. I just received a very favorable letter from our meeting with Rear Admiral T.G. Alexander. He is the new admiral in charge of the Mid-Atlantic Region. He promises to help us promote the MAPP program through the ARMED FORCES DISCIPLINARY CONTROL BOARD, COMMAND MASTER CHIEFS, FLEET AND FAMILY SUPPORT CENTER, NAVY FAMILY HOUSING CENTER and many more. He thanked us for our efforts and looks forward to working with us and the rest of the MAPP TEAM! Our last meeting was held at Frankie’s in Kempsville. Our sponsor was Allen Douglas with STARS GPS and our guest speaker was Robert Stone our local special agent-in-charge for DMV. The attendance was great and so was the food. Thanks to Stars GPS all the ribs & chicken for only $10. Robert Stone told us what we can do as dealers to help cut down on curbstoners. FYI there is a report form that can be easily printed out on the VIADA website and faxed to him on any suspected activity. It has to be a mutual effort in order for enforcement to work. Agent Stone has prosecuted many of these cases, and is currently in the process of prosecuting many more. A special thanks to my good friend Mr. Ron Woods of Woods Automotive for being on his best behavior at the meeting! I was a little worried when he showed up. We have a special gift for him at our next

meeting.

day-to-day basis. The group welcomed Bill’s Auto Sales, BNH Auto, Choice Auto Sales, Direct Buy Car Club LLC, Mechanicsville Auto Sales, LLC, Richmond Auto Sales, and The Car Guys as new members of VIADA. Certificates of Appreciation for sponsoring these new members were presented by Matt Williams, Membership Chairman, to Tim Byrd, Alan Winderweedle, District 2 President Jeanette Bishop, VIADA President Gail Davis, and Bob Mann of Richmond Auto Auction. Members were encouraged to mark their calendars for July 26 – 29, 2012, to attend VIADA’s 52nd Annual Convention and Expo at The Homestead. Tracy Myers, best selling author, national speaker/trainer, and branding and marketing expert will help dealers release their potential and join him in selling over 100 vehicles per month! Can you afford to miss? Jeanette BishopDistrict 2 President

diSTricT 3roanoke Virginia

District 3 welcomed guest, Gail Davis and husband Jim Davis, as well as District 5 President Sammy Wright at our last meeting, in October. The guest speaker William Childress, Director of Vehicle Services provided a great deal of information leading to a great question and answer session. Gail Davis gave information on Curbstone, providing us with a Curbstone report to help dealers when reporting to Special Agents. Lois Keenan brought us up to date on the old and new business at state level. All attendees seemed to enjoy the food and fellowship which was provided by Buchanan Auto Auction.

Its time to REV-UP MEMBERSHIP! Most dealers are not feeling as much pain thanks to TAX SEASON. For only $295 all used car dealers SHOULD BELONG to this organization! Don’t be afraid to ask any fellow dealer to join. It’s the best investment they can make for their future!

Don Boucher District 1 President

diSTricT 2 richmond Virginia

District 2 held their dinner meeting on January 31, 2012 at Topeka Steakhouse in Midlothian. There were 40 District 2 members and guests who enjoyed a great dinner and informative networking opportunities to exchange ideas and gain new insights of the industry. Sponsor Tim Byrd of Tim Byrd & Associates welcomed everyone and gave an overview of the advantages of owning your own warranty company. MVDB Field Representative Alan Winderweedle talked to the members about the most frequent dealer violations he encounters in his area. #1 is failure to maintain business hours. Following behind this would be not reporting salesperson terminations, no tag log and not having insurance on all dealer tags. The MVDB now checks insurance policies and civil penalties of $500 per tag can be assessed. Dealers enjoyed a question/answer session and good exchange of information. Pete Iaricci, VIADA’s Director of Education and Consulting, gave report of the bills being tracked at the General Assembly, and the progress being made with education and consulting to reach more dealers by providing guidance and follow up resources on a

The Christmas Celebration, in December, was a great success with 68 dealers, family and friends that exchanged gifts and bid on auction items. The entertainment arranged by Al Woods kept all in the Christmas spirit. A special thank you to Sonny Arrington, Joseph Lohkamp, Erin Stanley, Al Woods, John Porter, and Barry Riddleberger for their effort in planning a superb Christmas celebration. District 3 will begin 2012 with our first meeting of the year on Thursday March 22, 2012. As District 3 President I would like to thank all the board members for their support my first year in office. I would also like to thank all the Dealers for supporting the VIADA, and I look forward to a successful and prosperous new year.

Barry RiddlebergerDistrict 3 President

diSTricT 4norThern Virginia

District 4 held their dinner meeting on February 21st at The Electric Palm in Woodbridge. It was a great evening with 37 in attendance. The restaurant overlooks the water and was a wonderful location for our Quality Dealer Meeting! This year our district 4 Quality Dealer is John Baluch of Auto City Used Cars in Fredericksburg. Tommie Melendez spoke in his behalf.

arounD the commonWealth

10


Our sponsors for the evening were Classic Insurance Services, Sullivan Recon and Advance Auto Parts. It is always great to have our associate members present at our district meetings to explain what they can do to benefit our dealers. We appreciate their sponsorship and overall support for VIADA and for our dealerships. Our state president elect, LexaLynn Hooper gave the Legislative report. LexaLynn won our 50/50 drawing and kindly contributed her winnings to the PAC Fund. We voted in 7 new members! Hopefully next time we will be voting in even more. Please share with your fellow dealers what a great organization VIADA is and the many things they do to safeguard our industry. If we each signed one new member this year and brought one dealer to a meeting, our association would grow significantly. I would like to say a special thank you to all that invest so much of their time and efforts to make our district great!

Wanda LewarkDistrict 4 President

diSTricT 5SouThern Virginia

Everything is pretty quiet in District five right now, maybe a little too quiet, if you know what I mean. Our next meeting set for February 21st in Danville at the Golden Corral should be a good meeting. Bruce Gould with the Dealer Board plans to attend and be our Speaker for the evening. This will be a good time for Q and A between our Dealers and the Board. Bruce is very helpful to our Association and we do appreciate his time. I can only wish that all of our

dealers have a really good 2012.Thanks for all of your support to our Association,

Sammy Wright District 5 President

diSTricT 6weSTern Virginia

Members of District 6 will be meeting Tuesday, April 3, 2012. Our Quality Dealer Nominee for 2012 is Steve Farmer of Farmer Auto Sales in Altavista, VA. Also mark your calendar for July 26-29, 2012, for VIADA’s 52nd Annual Convention & Expo. Tracy Myers will be teaching “YOU Are The Brand, Stupid! How To Get Noticed, Gain Instant Credibility, Make Millions And Dominate Your Competition By Building Your Expert Brand”

Bobby SteeleDistrict 6 President

diSTricT 7cenTral Virginia

M a n h e i m Harrisonburg, represented by Dealer Sales Associates Robin Long and April Sheets, sponsored our last meeting which was enjoyed by a good group of local dealers. Robin and April brought us up to date regarding Manheim’s online website designed to help meet the #1 challenge of dealers today – finding inventory. They emphasized the changes that have been made to Manheim’s website to make it more user-friendly and easier for dealers to find more vehicles. By searching online, dealers can stay in their stores and buy online versus traveling to

auctions definitely a win-win for both the dealers and the auction. VIADA President Gail Davis updated the dealers on the results of the 2012 General Assembly session as it pertains to changes to the Transaction Recovery Fund, an increase in cost of the 30-day temporary tags, limits on number of tent sales, etc., all to become effective July 1, 2012. She also invited everyone to mark their calendars for July 26 – 29, 2012, at The Homestead to hear a nationally known dealer, author, and trainer whose dealership sells over 100 vehicles a month. His next goal is 125 per month. How does he do it? He will share his secrets of “Branding YOU”. You will not want to miss this!! VIADA’s Board of Directors has been invited to attend a reception at the Governor’s Executive Mansion to honor the auto industry leaders. The members are excited about this opportunity. VIADA’s revised online recertification program is now live. A dealer from District 7 completed the course recently. He chose to take it over a period of four days as he could find time. He found the software very easy to use, and above all, it wasn’t the “hurry up and get finished” experience, he realized the information was so important, he gave it his undivided attention and learned a number of things he was not doing such as the Safeguards Rule and Red Flags manuals. We invite all our area dealers to be a part of our next meeting. Watch for your mail, email and/or fax for further information.

James MillnerDistrict 7 President

diSTricT 8 SouThweSTern

Virginia

December 3, 2011, District 8 members, Friends and Sponsors met at the Holiday Inn Convention Center in Bristol, Virginia, to celebrate “The Reason for the Season” Christmas Banquet. The attendance was great, all VIADA Officers and Sponsors were recognized. We were entertained by Christian Recording Artist, Scott Allen, a former member of the Imperials, from Knoxville, Tennessee. It was amazing to see the things brought for the auction. The excitement of this event keeps growing year after year. February 16, 2012, our District met at The Harbor House Seafood Restaurant in Abingdon, Virginia. The meeting was sponsored by Carlene Bowers of TSYS Merchant Solutions. In that meeting we voted to give $1000 to VIADA PAC Fund. We congratulate Larry Church of Cardinal Auto Sales in Bristol, Virginia, being chosen as The District 8 Quality Dealer for 2012, and will be representing District 8 at the State Convention this year. Carlene Bowers shared with us how TSYS Solutions could help us Dealers in our day-to-day operations. Fred Parker of DMV Select informed us of the many services DMV Select provides to us Dealers. Lois Keenan, VIADA Executive Director, gave us update as to what is happening around the Commonwealth. We are excited about what happened last year and, what is happening now. Remember, the choices you make in the end, make you!

Rodney WilliamsDistrict 8 President

arounD the commonWealth

11


Charity Auction Time!

VIADA LADIes AuxILIAry

I would like to begin by quoting one of my favorite authors, poets and educators of our time... “I have found that among its other benefits, giving liberates the soul of the giver.” Dr.

Maya Angelou

Her words are an inspiration from the far side of the act of giving. Obviously giving in any act carries benefits such as help for the needy, improvement, protection, etc. So rarely does anyone take a look from the giver’s benefits, which is what Dr. Angelou is depicting. “Liberating your soul” seems like such powerful words, because it rings true by giving

you such a powerful feeling.

That is the feeling that I would like to touch upon as the VIADA Ladies Auxiliary prepares for our upcoming Charity Auction which is held during our Annual Convention and Expo. This is our primary fundraiser for all of the charitable acts that the Auxiliary does throughout the year such as The American Cancer Society, Smile Train, Red Cross, homeless and battered women and children’s shelters, Gleaning for the World, food pantries, Backpack ministries to name a few and our own Fill-A-Wish and scholarship programs. Because of all the wonderful donations of items that dealers, associates, and vendors bring to be auctioned off, we always have a tremendous sale. And most important those same dealers, associates, and vendors make great gestures of

giving by bidding and purchasing those items to benefit charities. Our auction attendees go way above and beyond when they give, because we have such wonderful, caring donors we are able to help so many charities and groups around the world. At last year’s auction these same giving souls made a bid to have “nothing” auctioned off and it brought $110. To a hungry child having to live in a homeless shelter, it could feed them and their family for several days.

When you attend our auction, you will leave with the experience of care, love, and hope in your soul, for so many others that you help, producing that powerful feeling of liberation. If you would like to donate any items to be auctioned off, please contact any of our Auxiliary members or you can bring those items to the VIADA convention registration desk when you arrive at The Homestead. Everything is appreciated and will bring so much help to others in need. The auction always provides fun, laughs, and great fellowship, so we will be looking forward to seeing you at the auction. I along with our Auxiliary members want to thank all of you who make this event the success that it always turns out to be, you are appreciated more

than words can say!

Carla Ann KeeneLadies Auxiliary President

Carla Ann KeenePresident

Sandra FarmerVice President

Helen CriggerTreasurer

Chrystal SteeleRecording Secretary

Bertie ArringtonCorresponding Secretary

2011-2012 vIaDa laDIes auxIlIary oFFICers

Jan TateChairman of the Board

Diane GossettBoard of Directors

Susan WhitehurstBoard of Directors

Carla BoucherBoard of Directors

12

VIAD !

In keeping with VIADA’s mission to educate our members, VIADA has developed the BuyHere/PayHere workshop that provides you with

everything you need to know about In-House Financing

Be on the lookout for more information via mail, e-mail, and on the web!

PayHere

BuyHereWorkshop

Symbol of Quality

6 Hours Continuing Education for Certified Master Dealers


How is tHe traffic at ViaDa’s website, www.VirginiaUseDcarDealers.com?

This is an overview of the traffic a typical VIADA member received for February. This is from a dealer who does a little bit of all types of financing and most likely has an inventory similar to yours:

In February, our members had over 5,100 vehicle, listed on VUCD. These listings were included in search results a total of 8.8 million times and clicked on more than 360,000 times in the month of February 2012, alone! What

are people looking for on this site? Let’s see:

VirginiaUsedCarDealers.com (VUCD) is exclusive to only VIADA members. All members get a free link to their site from the “find a Dealer Section” of VUCD. For as little as $40 a month or $200 for six months you

will get a lot more than traffic from just this site!

First, we will get your inventory listings and images from wherever possible, then we include those listings in the search results described above. Then, we send your inventory listings to several other online classifieds websites that allow dealers to list cars for free, if you know about them. Also, we can send your data to all your paid online advertisers like Cars.com and more than 200 other similar sites. You also get access to a Craigslist posting tool, more of the statistics you see above, ability to list and view wholesale listings to and from other members, and gain access to all the leads stored in VUCD’s lead management area. All this for as little as $1.10 a day and

exclusive to only VIADA members!

Top 5 YearS Searched for:1. 2008 2. 2006 3. 2007 4. 2005 5. 2004

Top 5 makeS Searched for:1. Ford 2. Chevrolet 3. Dodge 4. Honda 5. Toyota

Top 5 modelS Searched for:1. 2010 Dodge Charger 2. 2011 Honda Odyssey 3. 2008 Nissan Altima 4. 2008 Chevrolet Impala 5. 2010 Dodge Grand Caravan

# of TimeS.. ToTalS

Vehicles Displayed In Search Result: 47,468Your Vehicles Were Clicked On: 2,882Customer Printed Window Sticker of Your Vehicles: 37Customer Viewed Your Inventory Page: 289Customer Clicked To YOUR WEBSITE: 53Customer Sent Message TO YOUR EMAIL: 1Customer Asked For Your Dealership’s Phone Number or Address: 52Number Of Vehicles You Have Listed: 31

14


Discover the Insider’s Secrets to Boosting Sales, Brand Awareness, and Credibility by Becoming a Sought-After Industry Expert

Forget the high-priced publicist. This Breakout Session is your insider’s playbook for gaining priceless publicity and increased sales-all by leveraging your greatest resource: YOU! In this easy-to-follow session, you’ll learn how you can establish yourself as a respected industry expert in your market. Whether you own your own dealership or work for someone else, this invaluable status can take your career and

business to the next level. You’ll discover how to:

• Become the local media’s go-to expert in your marketplace, gaining pres-tige and exposure for free

• Effectively harness social-media tools like Facebook and Twitter to boost your bottom line

• Put on fun events that will have people clamoring to buy your product or service-and might even make the evening news

• Get all-important sales leads by producing compelling marketing mate-rial people actually want

• Avoid the top mistakes businesspeople make when trying to market their business

• Use 10 brand-building strategies to turn your “ordinary” dealership into an extraordinarily forceful brand experience

• Much, much more!

Becoming an industry expert is easier than you think, and it is simply the fastest, best, and easiest way of creating a successful, highly profitable dealership-if you follow the right process. You’ll hear about case studies, real-life examples, and tools you can

start using right now to win more customers and higher sales.

“You are The brand, STupid! how To geT noTiced, gain inSTanT credibiliTY, make

millionS and dominaTe Your compeTiTion bY building Your experT brand”

Tracy Myers is a car dealership owner, author, speaker and entrepreneur. He recently celebrated the opening of his newest business, The Celebrity Academy in Charlotte, NC. The Academy teaches professionals, entrepreneurs and business owners how to get noticed, gain instant credibility, make millions and dominate their competition by building their expert status. Following these principles have helped Tracy gain enormous success at his own dealership, Frank Myers Auto Maxx. It was recently recognized as the Number One Small Businesses in NC by Business Leader Magazine, one of the top three dealerships to work for in the country by The Dealer Business Journal, and one of the Top 22 Independent Automotive Retailers in the United States by Auto Dealer Monthly Magazine. He graduated from the Certified Master Dealer program at Northwood University and was the youngest person to receive the National Quality Dealer Of The Year award, which is the highest obtainable honor in the used car industry. He has provided guest commentary on the FOX Business Network, has been featured on NBC, ABC & CBS affiliates across the country, has appeared on stages from coast to coast, writes a nationally syndicated column about marketing/branding, was featured in the film “Car Men” by Emmy Award winning producer Nick Nanton and is the author of several books, including the #1 best -sellers Uncle Frank Sez, Pushing To The Front (written with the legendary Brian Tracy) and YOU Are The Brand, Stupid! Tracy and his wife Lorna have made their home in Lewisville, NC with their 2 children Maddie and Presley. He is a Christian Business Owner whose goal is to run his business “By the Book”. For more information, visit www.TracyMyers.com

Tr a c y My e r s

15

A t t e n d e e R e g i s t R At i o n F o R m

Member Spouse/Guestq q VIADABoardofDirectorsq q VIADAPastPresidentq q HonoraryLifeDirectorq q StateOfficer (Specify)

q q DistrictPresidentq q QualityDealer National/State/District(circleone)

(Exhibitors - please use exhibitor registration form)

ComPAnY inFoRmAtion_______________________________________________________________________CompanyName

_______________________________________________________________________Address(Street)

_______________________________________________________________________City,State,Zip

_______________________________________________________________________PhoneNo. FaxNo.

_______________________________________________________________________E-mail

Mail to: 4700ThoroughgoodSquare

VirginiaBeach,VA23455

Phone:800.394.1960

Fax:757.460.1346

www.viada.org/convention.php

1766 Homestead DriveHot Springs, VA 24445

g R o u P R At e :$145 plus 15% Resort Fee, taxes &

fees per room, per night

R e s e R v At i o n s : (866) 354-4653

Group: VIADA / Cut Off For Group Rate: June 25, 2012

Office Use OnlyqBilled/PaymentqConfirmationMailedqBadge

R e g i s t R At i o n i n F o R m At i o n :Events Member NonMemberFull Registration (entry to all events) $225 each/$105 per Child $325 eachBadge Name(s):____________________________________, _______________________________________Badge Name(s): Child _____________________________, Child __________________________________Expo Only (entry to expo only - Thursday, July 26th) $75 each $85 eachBadge Name(s):____________________________________, _______________________________________Badge Name(s): Child _____________________________, Child __________________________________Friday Only (entry to all events on Friday, July 27th) $175 each $200 eachBadge Name(s):____________________________________, _______________________________________Badge Name(s): Child _____________________________, Child __________________________________Grand Banquet (entry to banquet only - Saturday, July 28th) $90 each $110 eachBadge Name(s):____________________________________, ______________________________________Badge Name(s): Child _____________________________, Child __________________________________Optional Activity TBA $ adults $ childern (14 and under)Attendee(s): _____________________________, _____________________________,_____________________________, _______________________________

PAYment inFoRmAtionTOTAL $ AMOUNT ______________ Check Enclosed (Please make payable to VIADA) VISA:____ MasterCard:____ Discover:____

Credit Card #: ______ - ______ - ______ - ______ Expires: ______ V-Code (3 digits on back): ______Credit Card Billing Street #: ______ Credit Card Billing Zip Code: ______

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

Member Spouse/Guestq q EagleAwardq q INDEPACContributorq q Memberq q Guestq q Exhibitorq q Sponsorq q Speaker

Member Spouse/Guestq q LadiesAuxiliaryOfficer (Specify)

q q LadiesAuxiliaryMemberq q LadiesAuxiliaryBoardMemberq q QualityLadyq q CommitteeChairpersonq q CertifiedMasterDealer

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

spouse/guest.

10% Discount for 3rd and each additional company

registration

First Time Attendee Yes No

____ # Years a Member of VIADA

Registrations received in State Office before June

25th, will be entered into a special drawing for ONE NIGHT FREE HOTEL STAY!

q q

the homesteAd ResoRt

viAdA 52nd AnnuAl Convention & exPoJuly 26 - 29, 2012

The Homestead ResortHot Springs, VA

July 26 - 29, 2012

Schedule of Events is tentative. Please watch for future information.

- A M u s t A t t e n d ! — s tA r t P l A n n i n g t o d Ay ! -

Thursday, July 263:00 pm - 6:00 pm 2012-2013 District President Retreat7:00 pm Welcome Reception9:00 pm Hospitality Suite

Friday, July 277:45 am VIADA Board of Directors8:30 am Annual Business Meeting/Leadership Awards9:00 am Ladies Auxiliary Meeting10:00 am Session I - You are The Brand, Stupid! How to Get Noticed, Gain Instant Credibility 11:45 am Lunch with Exhibitors2:00 pm Session II - Make Millions and Dominate Your Competition By Building Your Expert Brand5:00 pm Charity Auction7:00 pm Dinner with Exhibitors9:00 pm Casino Night10:00 pm Hospitality Room Opens

Saturday, July 287:45 am Breakfast9:00 am Golf Tournament 9:00 am Recertification Class6:30 pm Meet and Greet/Golf Awards7:00 pm Quality Dealer Dinner9:00 pm Dessert/Chat Party

Sunday, July 298:00 am President Meets with State Officers9:00 am Time of Sharing


March 1, 2012 Volume 17 No. 1Our sixteenth year of publication and the

52nd year of service to Virginia dealers

Bills of Interest before the 2012 Session of the General Assembly as of January 26, 2012

Enrolled = Passed both House and Senate and awaiting Governor’s signature. Once signed, they will take effect July 1 unless otherwise stated.

HB 171 – Makes two changes to the Recovery Fund. Does away with the $250,000 minimum Fund balance, thereby releasing the money to pay claims; additionally, if passed, attorney fees will be paid by dealer’s bond. Currently, only the judgment is paid by the bond leaving the attorney fees to be paid by the Fund. Enrolled

HB 235 – Limits the number of temporary supplemental licenses (tent sales) issued to a dealer to 8 per year. Also, no more than one consecutive seven-day period may be issued for the same jurisdiction. Addresses the problem created by an out-of-state dealer, with a Virginia Independent Dealer License, who is having a tent sale every week in different cities in Virginia. Enrolled

HB 322 – Removes certain add-on charges from the tax on rental vehicles. Ex., fuel and accident insurance charges. House Transportation Subcommittee recommends laying on the table. Left in Senate Finance Committee

HB 721 – Repeals the statute that created the Towing and Recovery Board. Carried over to the 2013 session

HB 798 – Requires a rather large salvage disclosure on a title and any document requesting a title. Allegedly to protect consumers who get a licensed dealer to buy a vehicle from a salvage pool and discovers they cannot title or register the vehicle without going through the salvage process. Continued to the 2013 session. Will be studied by DMV and a group of interested parties.

HB 807 – Requires the Board that regulates private investigators to write regulations for the use of tracking devices that are attached to a vehicle. Last year a similar bill that failed to pass, required motor vehicle dealers to disclose, to a customer, such a device is installed on the vehicle they are purchasing. Defeated in Senate Courts Committee.

HB 541 – Raises the temporary tag fee to $3 to cover the additional cost of material on which the tag will be printed. Also adjusts several DMV fees dealing with request for duplicate license, etc. Enrolled

HB 870 – Creates a “Repairable” definition for vehicles that have been repaired by an insurance company for their policy holder and, after it has been repaired, the owner refuses to accept the vehicle (perhaps for psychological reasons). The insurance company sends the vehicle to a salvage pool with a salvage title, and is bought by a rebuilder. The problem is created when the Anti Theft Inspection cannot be done without the receipts showing what parts were replaced during the repair. The bill will allow a clean title to be issued because, if the owner had retained ownership, there would not be a brand on the title. Enrolled

SB 155 – Same as HB 870 – Enrolled

SB 421 – Adds to HB171 the following:

• Raises the per claim limit from $20,000 to $25,000 and puts into place an automatic escalating clause tied to the Consumer Price Index for Used Vehicles

• Requires a Fund claimant, who has bought a vehicle, the dealer is out of business, and the title is held by a floorplanner, to seek court action requiring the floorplanner to turn over the title. This can be accomplished by using the “buyer in the due course of business” statute; i.e., a person who buys a vehicle expects to receive a title. If the floorplanner allows the suit to go forward and loses, the floorplanner must pay the customer’s attorney’s fees.

• Requires DMV to issue a temporary registration during the period when the customer is waiting for settlement from the Fund or title from the floorplanner of a dealership that is out of business. Enrolled

SB 481 – Brings Virginia’s statute, dealing with the repair or replacement of an odometer, into compliance with the Federal regulations. Virginia’s statute requires the repaired or replaced odometer to be set to the last known reading. The Federal regulations require the odometer to be set to “0”. If passed, the Federal regulations will be added to Virginia law allowing the dealer to use either process. Both require a label to be placed in the driver’s door jam stating the date of the repair or replacement and an “N” after the odometer reading on the title if the odometer is zeroed. Raises civil penalty from three times the amount of actual damages or from $1,500 to $3,000, whichever is greater, plus attorney fees. Enrolled

If you wish to see any of the above bills in their entirety, • Go to http://legis.state.va.us/#

VIADA NEWS IN BRIEF is a publication of the Virginia Independent Automobile Dealers Association and intended for the exclusive use of its members. Phone: 757-464-3460 or 1-800-394-1960, Fax: 757-460-1346.E-mail: [email protected] - web sites: www.viada.org and www.virginiausedcardealers.com

news In BrIeF

19


ACCOUNTING RECORDSAudit Reports PermanentlyAccounts Receivable and Payable Ledgers 8 YearsBank Statements & Reconciliations 5 yearsCancelled Checks 5 yearsCapital Stock Book PermanentlyCash Disbursement and Cash Receipts Journals 8 yearsExpense Reports 6 yearsFinancial Statements PermanentlyGeneral Ledger and Journal PermanentlyInventory Records 8 yearsNotes Receivable Ledger 8 yearsParts and Services Sales Journal 8 yearsPayroll Earnings Records 5 yearsPayroll Journal 5 yearsPayroll Time Cards 3 yearsPetty Cash Vouchers 3 yearsPrepaid and Accrued Expenses Journal 3 yearsSubsidiary Ledger 8 yearsTrial Balances 8 yearsVouchers – Vendors or Employees 8 years

CORPORATE RECORDSArticles, By-Laws, Minutes and other Corporate Records Permanently

CORRESPONDENCEGeneral 10 yearsLegal and Tax Permanently

OPERATIONSAccident Reports 6 yearsBills of Lading 10 yearsCredit Applications – denied 25 monthsCredit Card Slip 1 yearCustomer Files 10 yearsDamage Disclosure Statements 5 yearsEmployment Applications- Terminated 3 yearsEmployment Applications- Hired 3 years past terminationInsurance policies – expired Permanently Internal Repair Orders 3 yearsJunking Title 5 yearsOdometer Statements 5 yearsOSHA Records 6 yearsPurchase Orders 6 yearsRepair Estimates 9 monthsRepair Order Check Sheet 2 yearsRepair Order 6 yearsRetail Installment Contract, assigned 10 yearsRetail Installment Contract, not assigned 10 years past expirationSales Invoice 6 yearsService Contracts/Extended Warranties 10 years past expirationShipping and Receiving Reports 5 yearsVehicle Invoices 5 yearsVehicle Purchase Orders 5 yearsVendor Invoices 5 years

TAX DOCUMENTSForm 8300 -- $10,000 Cash Reporting Form 5 yearsIncome Tax Returns (federal and state) PermanentlyIRS Audit Results PermanentlyUnemployment Tax Returns (federal and state) 5 yearsWithholding Tax Returns (federal and state) 5 yearsWithholding Tax Statements 5 years

The following information is a guideline for auto dealers to use.

Your attorney and accountant should also be consulted regarding your individual records. The IRS website at www.irs.gov is also a

useful resource.

RecoRd Retention FoR Auto deAleRs

20

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NEW - BHPH Money AvailableFor information Call Wayne Garland (704) 882-7170

5&Drive Program - www.amacexpress.com

• Self Approval Program for customer with as little as lll$500 dollars to put down.• Simple, easy to follow underwriting criteria. • Online AMAC Form Generator - contract the customer lllbefore they leave the lot.

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• Instant online approvals available 24/7.• No minimum beacon.• Clearly see the pro�t for each car.• Contract your customer immediately.• Underwriters & Marketing Reps to help work your llldeals.• Lower Discounts and/or Lower APR for stronger lllcredit customers with beacon scores 520 and higher.

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V I R G I N I A I N D E P E N D E N T AU T O D E A L E R S PAC C O N T R I B U T O R S

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

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

Assembly. All contributions are voluntary. (Report includes contributions made September 1, 2011, through February 29, 2012)

BASIC ($45 to $99 annually)Mechanicsville Auto Sales

Royal Auto CreditGary McCann Auto Sales

BNH Auto

Auto City 1Handpicked Western Trucks, LLC

JD Byrider of RichmondLarry’s Car Land, Inc.

R & M Motors, Inc.

S & S Auto Sales LimitedSpencer Motor Sales

Surfside Auto CoGoldstar GPS

BRONZE ($100 to $249 annually)Willow Spring Garage

Easy Ride Auto Sales, Inc.Your Kar Company

Richmond Auto Auction

Enterprise Car SalesHeritage Motor Co.

McGuire Motors Inc. Ellis Auto Sales Inc.

Davis Auto CenterDon’s Auto Exchange

Gene Gorman Auto SalesH. R. F. T., Finance

GOLD ($500 to $999 annually) TK Hughes Auto Sales & Steve’s Auto Sales Inc

PLATINUM ($1,000+ annually) District 8 - Southwestern Steve’s Auto Sales Inc TK Hughes Auto Sales

SILVER ($250 to $499 annually) Talley Motors

Steven Farmer Auto Sales, Inc.Mike Duman Auto Sales

Ace Motor Acceptance CorpAirline Auto Sales - U - Save -

Auto Buying Service IncAuto Center/Smoots


VIADA RenewAls - JAnuARy 1st - FebRuARy 29th, 2012

William M. Cones of Dixie Motor Co, Inc. in Suffolk

Thank You for 52 Years of Continued Support!!

40 Plus YearsTidewater Auto Auction Mike Hockett Virginia Beach 40

30-39 YearsPembroke Auto Sales Thomas V Joynt Virginia Beach 36 Price Is Right Auto Sales Sonny G Arrington Vinton 36 Central Virginia Auto Sales, Inc. Ronald E Drudge Sandston 34 Calvary Cars & Service, Inc. Tony A Cerza Norfolk 32 Donovan's Used Cars Edward L Donovan Harrisonburg 32 Mike Gerber Auto Sales Darwin Michael Gerber Richmond 32 Cosner Brothers Body Shop, Inc. E Grant Cosner Charlottesville 31

20-29 YearsMay Motors Larry L May Elkton 29 John Talley Motors, Inc. John W Talley Mechanicsville 27 Rt 1 Auto Exchange, Inc. Brandon G Boltz Glen Allen 27 Beach Auto Brokers, Inc. Brian Jones Norfolk 26 Dandee's, Inc. Aaron Glen Brewster Cedar Bluff 26 Jack's Auto Sales, Inc. Lester V. Whitacre Stephens City 26 Terry's Automotive, Inc. Terry L Wood Newport News 26 Greensboro Auto Auction, Inc. Dean Green Greensboro 25 Rhodes' Auto Sales Tony M Rhodes Windsor 25 S & S Sales Gordon W Shelton Fredericksburg 25 Steve Farmer Auto Sales, Inc. L Steve Farmer Altavista 25 Campbell's Used Car, Inc. Tunis H Campbell Leesburg 24 M C Enterprises Ray Creekmore Sandston 23 W. E. Smith Auto Sales W E Smith Afton 23 Clem's Garage, Inc. Kimberly R. Clem Stephens City 22 M & M Auto Rental, Inc. Bill Lewis Moss Dillwyn 22 Nave's Auto Sales, Inc. David R Nave Gray 22 Richmond Auto Auction Bob Mann Richmond 22 Shenandoah Auto Parts, Inc. Anthony B Walrond Roanoke 22 Jefferson Motors, Inc. Dwight Jefferson Gretna 21 Bay Auto Wholesale J C Brown, Jr Virginia Beach 20 Mike Duman Auto Sales, Inc. Mike Duman Suffolk 20

11-19 YearsFreedom Auto Sales Don Daulton Salem 19 Staunton Tractor, Inc. Winston Phillips Staunton 19 Kenny's Auto Mart Kenny R Snyder Harrisonburg 18 Motley's Car Connection Randy W Motley Danville 18 Wally's Wholesale Fine Imports Walter F Werness Manakin 18 Wood Brothers Auto Brokers Ronald K. Wood Portsmouth 18 Central Virginia Rental Daniel Showalter Waynesboro 16 Advantage Certified Kenneth A Davis Manassas Park 14 Autobility, Inc. Kenneth W Westall Fredericksburg 14 Coast 2 Coast Auto Sales David P Maher Virginia Beach 14 Brookside Auto Sales Jerry Douglas Kidd Roanoke 13 Friendly Motor Co LLC Larry E Holliday, Sr Winchester 13 Gary McCann Auto Sales, Inc. Gary L McCann Tazewell 13 Keysville Auto Center Randy Claybrook Keysville 13 Kimble's Auto Sales, Inc. Jack T Kimble, Sr King George 13 Peaks Motors, Inc. Joe C Tate Bedford 13 Cars Plus of Danville, Inc. James C Mobley Danville 12 Drive Away Cars Mark A Cole Christiansburg 12 K's Auto Center Howard C Kershaw Hampton 11 On The Road Again, Inc. Dirk Essert Front Royal 11 West End Motors Bobby J Wheeler, Jr Lovettsville 11

5-10 YearsEast End Auto Sales, Inc. Leo F Gay, Jr Richmond 10 Jerry's Auto Sales Elva W Pugh Danville 10 New Millennium Auto Sales, Inc. Timothy S Higginbotham Glen Allen 10 Semones Automotive, Inc. Richard D Semones Blairs 10 G & S Auto Sales Garry L Worley Bristol 9 Magnum Auto Group, Inc. Melanie Podpaly Tappahannock 9 Valley Auto Sales James Higginbotham Stuarts Draft 9 Ruckersville Automart LLC Earl Wayne Powell Ruckersville 8 Foley's Used Cars LLC Harold Foley Bassett 7 G.E.S. Equipment Charles Edward Simpson Lovingston 7 Guarantee Auto Maxx Wahid Uddin Stafford 7 Airport Auto Exchange LLC Bernard Marshall Charlottesville 6 Mack's Auto Sales #2 Joseph Michael Floyd Disputanta 6 NAE Federal Credit Union Amy Stout Chesapeake 6 Ray's Auto Recov. Stor. & Sales-Rent. Raymond Wilborne Ringgold 6 Smith's Auto Sales Jody A Smith, Sr Glade Hill 6 AmCar Rental LLC Bonnie B. Limbrick Madison Heights 5 Car Choice Shahab Rahimzadeh Norfolk 5 Classic Leasing LLC Larry A Makowski Gloucester 5 Collier Motors, Inc. Ned Collier Petersburg 5 Easy Ride Auto Sales, Inc. John Hattar Chester 5 F & A Auto Sales, Inc. Frank F Coates III Colonial Beach 5 Gold Star Motor Co Thomas Maad Winchester 5 Hylton's Auto Sales Richard L Hylton Danville 5 Willow Spring Garage Woodrow W Herring, Jr Chantilly 5

1-4 YearsAmerican Motors LLC Paul Tashner Ashland 4 Bailey's Auto Sales Bobby Bailey Cloverdale 4 E-Z Ride Autos Joseph E Engelhardt Fredericksburg 4 J P Motors ll Saturnino Parada Manassas 4 MJM Auto Sales & Services, Inc. Sultan Mahmood Aman Woodbridge 4 Scott's Cars John M Martin Vinton 4 Ultimate Motors Mark N Selahi Midlothian 4 XTRAUTO Hussain Surani Ashland 4 Auto Options, Inc. Walt Bailey King William 3 Dachsunds, Inc. Shavon Bussler Windsor 3 E & M Auto Sales Eric Wade Jenkins Locust Grove 3 On Time Motors Wallace Warden Richmond 3 Pay-Day Motors William G Huffman Narrows 3 Shore Drive Auto World William Robinson Virginia Beach 3 Whitten Auto Center Robert Whitten Petersburg 3 A & R Motors, Inc. Roman Raykhman Portsmouth 2 A1 Auto Sales of Dulles James David Luehrs Sterling 2 A-1 Four Wheel Deals, Inc. Joseph T Byrum South Hill 2 ADESA Knoxville Greg Koepfer Lenoir City 2 Automotive Credit Corporation Lisa Soller Southfield 2 Churchland Auto Beauty LLC Bill Hinton Portsmouth 2 Meridian Motor Cars Mike Scroggs Manassas 2 Mink Motor Sales Lot 1 Jerry Mink Galax 2 Mount Landing Sales Gene E Sydnor Tappahannock 2 Quantum Auto Sales Curtis Huffman Roanoke 2 Auto Use Melissa Smith Andover 1 Automotive Options LLC Samet Abed Culpeper 1 Best Bet Motor Sales Corp Sajal Narayan Amherst 1 Chamberlayne Auto Sales & Repairs Inc Oliver C Lawrence Richmond 1 Chartwell Motors Jerry E Clark Clifton Forge 1 Fastlane Performance Kim O'Conner Roanoke 1 Ideal Auto Sales LLC Stephen A Wyrick Troutville 1 Parts Unlimited John W Blankinship Jr Vinton 1 Rainbow Forest Automotive & Towing, LLC David Chocklett Roanoke 1 Your Kar Company, Inc. Mark Dolson Norfolk 1

Cost: only $20 per ticket

22


VIADA new MeMbeRs - JAnuARy 1st - FebRuARy 29th, 2012

Active Duty Auto, Inc. Angela Anderson Norfolk Don Boucher Ammoury Auto LLC George Ammoury Falls Church Tina Allman/Wanda Lewark Autos By Choice, Inc. Jason Drew Adams Fredericksburg Tina Allman/Wanda Lewark Bill's Auto Sales Bill Revere Tappahannock Tina Allman/Jeanette Bishop Bobby Cash Automotive Consultants Robert W. Cash Lynchburg Bobby Steele Burks Motor Company David Eugene Burks Fredericksburg Tina Allman/Wanda Lewark Dealer Services Corporation Patty Turner Carmel Don Boucher Foley's Auto Sales, Inc. Kevin Foley Fredericksburg Tina Allman/Wanda Lewark Fred's Select Auto Qasim Abbasi Woodbridge Pete Iaricci/Wanda Lewark G & J Motors LLC Owen V Johnson Sandston Pete Iaricci/Jeanette Bishop GADone Auto Mall LLC Hildigard Ofori Fredericksburg Pete Iaricci/Wanda Lewark Hunn's Auto Sales Lisa Hunn Rocky Mount Chip Cooper

Insurance Auto Auctions/Yorktown Charles McCook Yorktown Dave Riggins J & J Auto Sales John G Adams Gretna Sammy Wright Lebanon Motor Co. LLC Mike Bostic Lebanon Rodney Williams/Vickie London Lundy Motors Ashby Lundy South Hill Pete Iaricci/Sammy Wright Mechanicsville Auto Sales, LLC Michael A Carter Mechanicsville Gail Davis Murphy Motors George Murphy Warrenton Vickie London//Wanda Lewark Royal Auto Credit H Glenn Wood Lynchburg Bobby Steele S M G Imports LLC Yama Stwodah Powhatan Tina Allman/Jeanette Bishop Select Auto Sales Gary Tolliver II Harrisonburg Vickie London/James Millner Smith Mountain Lake Boat Yard George F Gresham Moneta Bobby Steele W W Motor Cars & Parts, Inc. Jack P Wenger Broadway James Millner Zwains Auto Nazir Zwain Richmond Tina Allman/Jeanette Bishop

Help VIADA Help You!

VIADA’s Mo D e r n I z At I o n Fu n D r A I s e rCost: only $20 per ticket

...and benefit VIADA’s initiative to upgrade our computer and phone systems to better

communicate with members

50/50 Raffle

Goal: sell 1,000 tickets

DrAwIng: July 28, 2012, during

Grand Banquet at the VIADA 52nd

Annual Convention at The Homestead

in Hot Springs!get your tIcket(s) toDAy!

Contact your district president for tickets

or contact VIADA’s State Office (800) 394-1960 / [email protected]

(1) Don Boucher- 757.424.6404(2) Jeanette Bishop- 804.721.6398(3) Barry Riddleberger- 540.309.4004(4) Wanda Lewark- 703.849.0080

(5) Sammy Wright- 276.656.1955(6) Bobby Steele- 434.239.0288(7) Jim Millner- 434.293.6900(8) Rodney Williams- 276.669.3472

** neeD not be present to wIn **

*Win UP TO $10,000$20,000

*Winner will receive 50% of gross ticket sales

23


IN REALITY, THERE ARE MANY MORE UNDISCLOSED RATES, OFTEN MUCH HIGHER THAN THE ORIGINAL QUOTED RATE.

THERE ARE COMMON misconceptions in small business when it comes to selecting a credit card processor. We would like to help you clarify some of these so you can select what is right for your business.

One low rate: One of the most common misconceptions business owners have when they select a credit card processor is that they will be paying one low rate. More often than not, when a payment processing sales rep pitches his services he only quotes the rate for qualified transactions – something like 1.29 percent. This leads the business owner to believe that’s the only rate he will ever be charged for payment processing services. In reality, there are many more undisclosed rates, often much higher than the original quoted rate. These are known as mid-and non-qualified rates and are applied depending on the type of card used and how those cards are

accepted. For example, a corporate credit will always be charged at a higher rate than a personal debit card. So there will never be just one rate for all payment processing services.

Free equipment: Another common misconception is the illusion of “free equipment.” As we all know, things are seldom truly free. Payment processing companies often tell business owners they will give them card-swiping equipment for “free” when they switch to their processing services. They will often make the equipment appear to be worth much more than it actually is to make it seem they are giving the business owner a great deal. In reality, that pricey card-swiping equipment can be purchased elsewhere for significantly less than what most processors lead you to believe. Because of high and undisclosed processing rates and junk fees, many small businesses end up paying for their

equipment many times over throughout the term of their contract.

Junk Fees: Companies will spread the misconception that extra fees such as statement fees, data security fees, batch header fees, monthly minimum fees and host of other junk fees are necessary administrative costs to keep payment processing services operating. The truth is, there are costs to maintain processing services, but the majority of junk fees are typically never disclosed by sales reps in the quote provided to the business owner. These fees are honestly “junk fees” that are simply lining someone’s pocket and further cutting into the business owner’s profit.

PROVIDED COURTESY OF NOVERA PAYMENT SOLUTIONS, LLC. FOR MORE INFORMATION, VISIT WWW.NOVERAPAYMENTSOLUTIONS.COM/MIADA OR CALL 703.865.3011, EXT. 723.

vIaDa Honors seleCt Partners

Platinum LevelESG Insurance & Financial Services

Manheim Auctions of Virginia

Gold LevelDealerTrack

GWC – Guardian Warranty Corp.

Silver Level1st Choice MBC

Manheim Auctions of North CarolinaTidewater Auto Auction

Bronze LevelComSoft (Commercial Software)

JTZ EnterprisePreferred Warranties

VIADA wishes to thank these companies for their continuing support of VIADA and its

members!

For more information call 800.394.1960

april 20123 District 6 Meeting6 Good Friday- State Office Closed12 District 8 Meeting17 District 4 Meeting21 VIADA Board Meeting Stonewall Jackson Hotel Staunton, VA24 District 1 Meeting

maY 201214 MVDB Meeting14 District 7 Meeting15 District 5 Meeting16 District 3 Meeting22 District 2 Meeting25 Magazine Deadline28 Memorial Day- State Office Closed

June 20125 District 6 Meeting14 District 8 Meeting19 District 4 Meeting18-21 NIADA Convention- Las Vegas, NV26 District 1 Meeting

July 20124 Independence Day- State Office Closed11 MVDB Meeting14 District 3 Meeting26-29 52nd VIADA Convention & Expo- The Homestead Resort31 District 2 Meeting

auguST 20125 District 3 Meeting/Picnic

Upcoming VIADA Events

Clearing Up Credit Card MisConCeptions

24


In MemoriamFather of Gail Davis of Davis Auto

Sales in Richmond

Father of Alvin Melendez of Melendez Motors in Richmond

Frank Sale, Founder of Radford Auto Auction in Radford

Delores Huggins, Sister of Jim Hubbard of Tidewater Auto Auction in Virginia

Beach

MeMber bulletin board

VIADA’s Director of Education and Consultant, Pete Iaricci, is the proud grandfather of twins!! Olivia Marie & Peter Victor Iaricci, III. Mother and children are all doing well. Both weighed over 6 pounds. Grandfather is very happy!

Welcome to Our World!

TestimonialVIADA is always good at keeping you up-to-date on all

Rules and Regulations. So I keep writing my renewal check and always enjoy belonging to the Association. It’s a good group and all Independent Dealers should be a

member and follow the rules!- J. Woodfin

Who’s WhoNew York, January 2012: The Directors of The Heritage Registry of Who’s Who™ take pleasure in announcing the

inclusion of mr. lynn C. HooPer’s QualIty Cars, ltD.

in the forthcoming 2012 Edition. The accomplishments and achievements attained by Mr. Lynn Hooper in the Used Automobile Dealership Industry with Hooper’s Quality Cars, LTD. warrants inclusion into the Heritage Registry of

Who’s Who™.The Heritage Registry of Who’s Who™, a New York based biographical publication, selects and distinguishes individuals throughout North America who have attained a recognizable degree of success in their field of endeavor and

thereby contributing to the growth of the industry.

Congratulations!richmond auTo aucTion for the opening of your 4th lane!!!

Don’t Forget!VIADA’s Revised online Dealer-Operator

Recertification is now up and running!

• Access to online class in minutes AFTER completing Registration

• Up-to-date industry data with real time experiences

• 800# or e-mail consultation with instructors

Administered by JTZ Enterprise

25


STARS GPS specializes in providing the best technology with personal on-site service, training and support for the independent and franchise dealership. STARS GPS offers the same personal on-site service for finance companies and their dealer clients, as well as automated daily inventory management services that keep dealers constantly supplied with uninterrupted and seamless product flow based on their individual volume needs.

Some of the key features STARS GPS offers that your current tracking might not have included a worldwide self-managed network. Operating as a Mobile Virtual Network Operator is unmatched by any other company.

Other systems primarily subscribe to T-Mobile or AT&T. A sim card is purchased from the cellular carrier by the GPS company and placed in the unit. This is a movable part with sometimes questionable connections. These systems are also limited by the geographic coverage offered by the carrier and are subject to annual fees imposed by the carriers. Those fees can increase at any time.

STARS GPS units are built with a sim chip embedded on the board itself, eliminating movable parts. STARS servers control a worldwide network that includes T-Mobile, AT&T and more than 70 other carriers. No network covers a larger geographic area. And there are no fees for STARS GPS system.

Antenna strength: STARS is the only system that maintains an antenna outside the unit casing. In a recent panel discussion held at the National Alliance of Buy Here-Pay Here Dealers, it was agreed by all GPS manufacturers on the panel that an external antenna had a higher gain, returning a quicker, more accurate response over a broader area. STARS’ external antenna is installed covertly and is completely hidden from view inside the dash. Internal antennas are, at a minimum, 30 percent weaker in signal strength and overall

performance, and require the unit to be installed with very specific positioning to work properly.

Backup power sources: The STARS unit maintains two backup power sources. A super cap conductor is installed on the board itself, which stores power from the vehicle battery, the first defense against power loss, low power, and tampering situations. It also generates notification of any unusual power manipulation. Second, the internal backup battery is an automotive-approved nickel-hydride battery, allowing tracking beyond the moment vehicle battery power is lost. STARS’ battery is completely programmable to your specifications via the website to allow for precise monitoring of the vehicle’s battery conditions. Depending on the programming, it will last from eight to 48 hours.

That technology is included as part of a full-featured system. Other companies charge $10 extra for a lithium-ion backup battery that is subject to failure in extreme heat. STARS’ testing has shown temperatures inside automobiles can reach 200 degrees. Lithium-ion batteries begin to reach their limit and can breach their casing at 145 degrees.

Warning buzzer: The buzzer provides the ability to activate, on demand, a payment reminder inside the vehicle. Being able to contact the customer inside the vehicle in the case of delinquent payments and/or insurance lapses is a great tool to motivate communication at a crucial time. This feature, combined with disclosure training techniques at loan origination, has been proven to solve 50-60 percent of collection issues.

Other features include a scheduler, automated batch processing, odometer tracking, database downloading and uploading, geo-fence, tracking multiple units with one command, a remote device reset from the server, over the air upgrades and programming.

for more informaTion conTacT R. Allen Douglas at

[email protected] or (336) 687-3507 Kevin Thompson at

[email protected] or (865) 607-8371

ViaDa announces stars GPs as its neWest PreFerreD member beneFit ProViDer!

26


auctions, they are a basic that should not be overlooked. It is true that there are not as many vehicles going across the block these days, but it is still an effective source. The positive to vehicle volumes at auction being down is that they are becoming very competitive with one another for dealer business. Some auctions are even waiving buy or post sale inspection fees. There is no better time to expand your horizons and check out as many auctions as travel and expense will allow. When shopping for a new or additional auction sources, do not limit yourself to just the large national auctions. Independent auctions are becoming very aggressive in going after dealer business as well. I may be a little old fashioned, but have always preferred the independent auction as they seem to provide better service and an overall buying and selling experience. I also recommend utilizing the World Wide Web in aiding in the search for an auction honey hole. Most auctions, national and independent, are posting most, if not all, of their upcoming sales vehicles, and post-sale information as well. Most are utilizing Smart Auction, Open Lane, and or OVE for the posting. These are also great resources for the dealer to not only purchase vehicles from the comfort of their office but also to research what auctions have available to know where your next auction visits need to be. You might just stumble on an auction you weren’t even aware existed. A final basic in the kissing of inventory acquisition would be dealer trades. New car sales are down so this is not the source it once was, but still should not

be overlooked. It won’t fill the overall need, but still could fill a partial need. I think the key here is personal contact with the dealer. I’m seeing too many buyers just calling the dealer asking what they have instead of taking the time to actually visit the dealers. Not necessarily a basic, but a stone that should not go unturned would be the private seller. Craigslist, eBay, newspapers and auto magazines are all sources to find vehicles. I, too, used to turn my nose up at this stone, feeling it wasn’t worth the time and effort, but with today’s economic challenges, there are sellers out there who simply need the money to get by and are far more reasonable in their expectations. Will it fill the lot? No, but it could fill part of it and that is what counts. As for how to KISS the what and how to acquire inventory, I think it comes down to two very simple questions. How much do you have in the bank account? And how much of that are you willing to spend? There still is enough inventory available as long as you are willing to pay for it. Values are a little out of control right now but have seemed to have leveled off a little in the last month. Finding the right inventory for the right price is still possible. The key will be not to overthink and, thus, overcomplicate. If you focus on the basics and keep it simple, you will be working smarter and not harder.

Brent CarmichaelExecutive Conference Moderator

NCM Associates [email protected]

The hottest topic right now in the Buy Here-Pay Here world has to be inventory. Not only where, but what and how to find and purchase it. Like most other areas of the BHPH business, the most successful dealers are focusing on the basic in the area, too. They are firm believers in the KISS (keep it simple, stupid) philosophy. No need to overthink and, thus, overcomplicate things. The first basic they are focusing on regarding inventory acquisition is repeat business. For the more successful dealers, between 30 and 40 percent of their monthly sales are from repeat customers. These will be either low-balance customer’s traded into a new vehicle or previously paid-out customers that have returned to purchase again. So 30 to 40 percent of their monthly inventory need is satisfied with vehicles they have a history of and with; that’s pretty valuable information to have when it comes to the vehicles we deal with. Recycling of repossessions is the next basic to focus on. With these, you have the ability and time to completely check the vehicle out to determine its reconditioning need. You also have some historical information for the vehicle. The dealers I have the privilege of working with are recycling on average 60 percent of their repossessions each month to put back out on the lot for sale. The only negative seems to be that the recycled vehicles tend to have a higher reconditioning cost. They seem, to need a little more love to get them a lot ready but overall are more cost effective than

purchasing at auction. Speaking of

“No need to overthink and thus overcomplicate things.”

Inventory AcquIsItIon 101

28


Contact JTZ Enterprise (540) 286-0801 for more information about this Member Only benefit!

29


of leads they got dropped dramatically. Other than the advertisers, who does this hurt? The car dealers who feel this disparity the most are those located near the borders of other states. The dealership down the street may also be in another state and because of that, may have access to advertisers our Virginia dealerships don’t have.

All this came about in an effort to stop car dealers from paying unlicensed salespeople. I contend that still happens too much today. A law that was intended to prevent an unscrupulous dealer from circumventing the licensing laws is actually preventing reputable dealerships from fully benefiting from the services of reputable, nationwide advertisers. Meanwhile, it is still possible for some Virginia dealers to circumvent the Bird Dog Rule. There is one Virginia dealership advertising on their website that if you refer someone to them and they enter into a car loan with that dealership’s related finance company that they will give you $200 off your loan. When I brought this to the attention of the MVDB I got an email response from Bruce Gould where he stated, “The law that is enforced by the MVDB prohibits payment of a fee in connection with the ‘sale of a motor vehicle’. This dealer is paying a fee in connection with

the financing of a vehicle.” I think there is a better way to curb the use of unlicensed salespeople while at the same time allowing our dealers to utilize reputable companies with proven programs who do business in an ethical manner. This taskforce ruling is twelve years old. The Internet is much different today. Before now, a Pay Per Lead program was impossible but with the tracking capabilities of the Internet, it is becoming commonplace in other industries. I am told the MVDB has no plans of addressing this topic in the future.

John SummerJTZEnterprise.com

877-286-1564

Per Click (PPC). I explained that any dealer can pay Google, Yahoo, Bing and others to have links to their website placed as the first search result when someone searches for something like “used car dealer in Virginia”. If you want to be the first link to show up for that search phrase you get a Google account and you bid on as many unique search phrases as you like. The highest bidder gets the first link, second highest gets the next and so on. These are sponsored links and usually show up in the first three links on the page as well as in the links on the right hand column of any search results page. PPC means Pay Per Click. If your search phrase gets clicked on 10 times and you agreed to pay $1 for each click, you owe Google $10. That, to me, translates into about the same as Pay Per Lead, which the MVDB says is not legal. When I asked whether or not this advertising model was legal, the response I got from Bruce Gould, Executive Director of the MVDB, was, “As I understand your real world example –an individual ‘clicks’ on a dealer ’s name within a list of dealership names and as a result is taken to the dealer’s website. -- I don’t see a problem. I am not able to provide legal advice as I am not an attorney.” Did I miss something? The taskforce said, “dealers may only compensate an unlicensed third-party vendor by a flat payment structure (e.g., per month) rather than per sale, per referral or any other transactional basis”. Does this mean that Google and other PPC providers are getting a pass? If so, what is the difference between a sale that was generated from a Google search and one that is generated from another website? Do not get me wrong, I am happy to hear that car dealers are able to utilize PPC. We have many clients utilizing this form of advertising. However, the distinction between PPC and PPL is murky at best and I think the ban on legitimate PPL services is wrong. Some clients have told me a few of the better PPL companies have created a flat fee program for them but when they did, the number and quality

The Motor Vehicle Dealer Board (MVDB) recently included in the February 2012 issue of Dealer Talk Newsletter an article titled “Lead Providers and Bird Dogs”. It quotes Virginia Code Section 46.2-1537 which basically says it is unlawful to compensate anyone other than a licensed salesperson for the sale of a vehicle. The article gives two variations of how a Bird Dog fee is commonly paid. The first variation has the Bird Dog fee getting paid only if a referral or lead results in a sale. The second variation has the Bird Dog fee being paid on a per lead basis whether or not any lead ever results in a sale. It goes on to state a task force was created and on January 9, 2001, it concluded that, “. . . licensed motor vehicle dealers may only compensate an unlicensed third-party vendor by a flat payment structure (e.g., per month) rather than per sale, per referral or any other transactional basis.” Now that got my attention because I know of many car dealers, new and used, who use lead providers and Pay Per Click (PPC) advertisers whose cost structures are in contradiction to this taskforce ruling. Many of our Virginia clients have had to stop using some effective online lead providers. For those not familiar, a lead provider is usually one or several websites that attract car buyers. Some may list your vehicles on their site. If and when they get a car buyer in your area that is interested in shopping for a car, they will extract from the buyer their contact information before the site gives the buyer any real information. The website lead is then sold to the dealership on a per lead basis. This provider typically offers no guarantees about the lead other than if the address or phone number is wrong, you don’t pay for it. It doesn’t matter if it results in a sale or not. You can buy 10 leads or 10,000 and what you do with them or how well you do with them is your concern, not the lead provider’s. I asked for clarification from the MVDB about this and I expressed

my concerns for those who use another form of online advertising, Pay

t h e i n t e r n e t c o r n e r

by: John suMMeR, JtZenteRpRIse.coM, 877-286-1564

Bird dogs, Virginia Car dealers, google and the Motor VehiCle dealer Board

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VIADA4700 ThoroughgooD SquAre

VIrgInIA BeAch, VA 23455

Symbol of Quality

5 2 n d A n n i v e r s a r y C o n v e n t i o n & E x p o

J u l y 2 6 - 2 9 , 2 0 1 2T h e H o m e s t e a d R e s o r t

H o t S p r i n g s , VA

Spring 2012 Magazine

Documents

Transcript of Spring 2012 Magazine