iowa street smart

ALSO Getting to Know You: Bobby McGlothlen PLUS NAAA Arbitration Policy

PREPARING FOR THE FUTURE

I O W A I N D E P E N D E N T A U T O M O B I L E D E A L E R S A S S O C I A T I O N

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STREET SMARTPRSRT Standard

U.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

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ALL 2011 DEALER EDUCATION CLASS INFORMATION WILL BE POSTED ON THE IIADA WEBSITE AT WWW.IOWAIADA.COMFOR THIS AND OTHER IMPORTANT INFORMATION, YOU CAN VISIT THE SITE 24/7 OR CONTACT US AT 866-962-9202

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ADVERTISERSINDEXADESA ........................................................ 9AutoTrader.com .......................... Back CoverCars.com ......................... Inside Front CoverManheim.com .....................Inside Back CoverManheim Minneapolis ................................. 5SmartAuction .............................................. 7Western General / Protective.......................11

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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] SMART 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 76006-5203. THE STATEMENTS AND OPINIONS EXPRESSED HEREIN ARE THOSE OF THE INDI-VIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF STREET SMART OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEAR-ANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NIADA, DOES NOT CONSTITUTE AN EDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT© 2011 BY NIA-DA SERVICES, INC. ALL RIGHTS RESERVED.

STATE MAGAZINE MGR./SALES Troy Graff • [email protected] Mike Harbour • [email protected] MGR. Jacob Kerns • [email protected]/PRODUCTION MGR. Christy Haynes • [email protected] Nieman Printing

MAGAZINECONTENTS 6 Getting to Know: Bobby McGlothlen 10 Preparing for the Future 13 Risk-Based Pricing Rule, Privacy

Notices and Red Flags Rule

13 EV Sales Not Charging Ahead

B O A R D O F D I R E C T O R S

N E W M E M B E R B E N E F I T S

I N V E S T I G A T I O N SI N F O R M A T I O N L I N E

TOLL FREE: 1-866-908-4636

FOR INFORMATION ON HOW TO BECOME A MEMBER PLEASE CONTACT JUDY WILSON IIADA • 409 EAST MARKET • PANORA, IA 50216(641) 755-4177 • [email protected]

PRESIDENTDouglas Livy, Jr.Quality Motors of Ames, Ltd.705 S. Duff AvenueAmes, Iowa 50010Ph: 515-232-1780

CHAIRMAN OF THE BOARDLouise Cordes Jim Cordes Motors, Inc.104 E. Main St., P.O. Box 68New London, Iowa 52645 1-319-367-2271

VICE PRESIDENTDavid A. FarmerDavid A. Farmer, Inc.1613 FranklinCenter Point, Iowa 522131-319-848-2432

TREASURERJudy Wilson409 E. Market StreetP.O.Box 337 Panora, Ia. 50216Ph: 641-755-4177

REGIONAL REPRESENTATIVESMerrill HitchcockMerrill’s Garage317 N. 8th StreetWinterset, Ia. 50273Ph: 515-462-1683

Roger PoulsenThe Car Guys1301 S.W. 7th StreetAtlantic, Ia. 50022Ph: 712-243-6915

Robert PippertPippert Cars & Trucks2047 Highway T-47P.O. Box BGladbrook, Iowa 50635641-473-3121

Clay WinterboerCarroll Car Credit Co.409 E. 6th St., Box 805Carroll, Ia. 51401Ph: 712-792-0140

Jim HarbachJ’s Auto945 E. MainManchester, Ia. 52057Ph: 563-927-2811

Doug WilsonLake Country Auto409 East Market St.P.O. Box 341Panora, Iowa 50216641-755-3048

ADMINISTRATIVE OFFICES409 East Market StreetP.O. Box 337Panora, Iowa 50216Ph: 641-755-4177Fax: 641-755-3247Email: [email protected] Free: 866-962-9202

• You don’t buy a newspaper, you buy the news• You don’t buy life insurance, you buy security for others• You don’t buy glasses, you buy vision• You don’t buy awnings, you buy shade• You don’t buy membership in IIADA, you buy cooperation of the ablest men and

women in your profession with whom you can join hands to accomplish things you could not do alone.

YES, IT COSTS TO JOIN IIADA – BUT IT PAYS TO BELONG

THINK ABOUT IT

The Motor Vehicle Investigations Information Line provides a way for the public to request information, ask questions, or file a complaint related to investigative duties and responsibilities.

This line is the primary point of contact to reach an investigator who is responsible for investigations in a specific area of the State of Iowa. To ensure accurate information is provided, the Motor Vehicle Investigations Information Line is answered by a Motor Vehicle Enforcement Investigator.

The hours of operation are Monday through Friday 8:30 a.m. to 3:30 p.m. As this line receives numerous calls during the day, please leave a message if the line is busy and your call will be returned promptly.

IIADAOFFICE

Manheim, the world’s largest provider of vehicle remarketing services, cares about its employees, the environment and the communities it serves. From fund raising drives to tutoring kids after school to supporting long-term conservation efforts, Manheim and its employees are dedicated to giving back to their communities and knows independent vehicle dealerships across the country share in this commitment.

For the first time this year, Manheim is recognizing and honoring those dealerships by awarding the 2011 National Manheim Community Service Award at the 65th NIADA Annual Convention and Expo. For information on how to nominate and to obtain more in-depth information, please contact Georgia Brown, NIADA director of education, at 817-640-3838 or see page 12.

NIADA/Manheim Community Service Award

YOU ARE INVITED…Don’t miss some great fun at the IIADA’s annual meeting and convention April

8-9 at the Lake Panorama National Resort and Conference Center in Panora, Iowa. We’ll have educational workshops, a scholarship auction, plus plenty of vendors and approved benefit providers in attendance. The IIADA Quality Dealer Award also will be announced, so join your fellow dealers for activities that will improve your bottom line.REGISTRATION FORMS WILL BE AVAILABLE AT WWW.IOWAIADA.COM SOON.

SAVE THE DATE SAVE THE DATE SAVE THE DATE SAVE THE DATE

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C R E A T I N G A H O O K T O C A T C H C U S T O M E R S

CONSUMER CREDIT CODE NOTIFICATION FORM

On or before Jan. 31 of each year, every dealer who signs a retail installment contract should file a Consumer Credit Code Notification Form with the Iowa Attorney General’s office and pay fees (normally $10) to the Iowa Attorney General.

If you are not on the following list, www.iowaattorneygeneral.org/images/pdfs/Contacts_ICCC_Notification_Fe. pdf, then you have not registered with the Iowa Attorney General’s office.

All dealers who are performing Buy Here-Pay Here sales transactions are required to file and pay volume fees; any dealer who fills out a retail installment contract is also required to register with the state of Iowa.

MOTOR VEHICLE SERVICE CONTRACTSDealers selling motor vehicle service contracts are

required to register with the Iowa Insurance Division, Regulated Industries Unit, by Aug. 1 of each year. Please make sure the company you are selling the service contracts for also is registered to do business in the state of Iowa. Detailed information can be found at www.iid.state.ia.us/reg_industries_unit/mvcontracts.asp?linksback=overview.

IN COMPLIANCE?ARE YOU

Why do new car dealers and the factory they represent keep offering rebates or 0-percent financing? They need a hook to get the customer to come in the door. What’s your hook? Remember, as an independent dealer you can do just about the same thing any new car dealer can do. Create a hook to get the buyer to drive in. I challenge you to dream up six hooks you can use to get the buyer in the door.

Here are a couple I’ve used over the years that have worked for us.1. The tent sale. The new car dealer pitches a big tent and puts some soft drinks and popcorn under it. We buy a nice four- or six-person tent and give the customer the tent with the purchase of any of our vehicles.2. Give away one year of free service. This depends on how generous you are. We strike a deal with one of our service providers. This

includes three oil changes, an alignment check, a tire rotation, plus checkups in the spring and fall. We make up a punch card for this event.

Anyone can discount their car. Will the customer remember how much that discount was a year from now? Every time they look at the tent, they remember you; they’ll do the same when they get the free oil change. Both of these ideas cost $100 or less to put on. They are the bait that goes on the hook. Would you rather spend $100 on bait or discount your car $500? Good luck fishing during 2011. I hope you don’t swamp the boat with all your newfound customers.

Good motoring,Doug LivyPresident, IIADA

FELLOW DEALERSHappy New Year

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The first time I ever met Bobby McGlothlen, I noticed he worked the ring with a big smile on his face and he was always very helpful to me as he strolled around my vehicles. He worked with the auctioneer to get the best price possible for the wholesale cars our dealership brought before him each week.

Bobby’s family came to the United States from Ireland many years ago and I personally think he has a little bit of mischief in his soul and reminds me of a sweet, middle-aged leprechaun.

Born in Oskaloosa, Iowa, his roots have remained there over the years. He spent about 10 years in Colorado and when the family moved back to Iowa, they settled in Albia where they operated a cow-calf operation. The family showed cattle throughout the U.S., bred show cattle and participated in rodeo events. The cow-calf operation raised Charlois and Limousin breeds. Bobby participated in many rodeo events throughout the country and specialized in calf and steer roping.

He graduated from Albia High School and the World Wide College of Auctioneering in Mason City in 1986. Starting out as a ringman, he

now auctions at Adesa Des Moines in Grimes, Greater Rockford Auto Auction, Plaza Auto Auction in Mount Vernon and Manheim Omaha. Bobby also works 15-20 weekends per year at Dana Mecum auctions throughout the country. Over the years, he has done antique auctions, too.

In his early years in the auction industry, he worked household consignment auctions and horse auctions. Bobby loves the industry and his son is the fourth generation of his family who has entered it. Bobby, his father and his grandfather were all auctioneers, so you can sure say it’s in his blood.

It’s quite common to travel 1,500 miles per week to his auction jobs (he shares windshield time with other auctioneers from Iowa), but he returns to his home in Oskaloosa to Lori, his friend and wife of 24 years. She also shares the auction stage with Bobby as she clerks at the Adesa Des Moines auction and helps at the Mecum auctions, too. Lori’s family owns restaurants and she even helps to manage those, too, as if she doesn’t already have enough to do. Check out the family restaurant in Oskaloosa called Taso’s Steak House.

Bobby’s 25-year-old daughter, Cheyenne, is a registered nurse and is the director of the Birthing Center at the Oskaloosa Hospital. His son Alex, who turned 20 in January, has gotten the auction bug, too, making him the fourth generation to do so.

Bobby’s favorite hobby is golf and he lives on the Harvest Point Golf Club in Oskaloosa; his backyard overlooks the 5th green. Bobby has become great friends with the owner of the golf course and is a pretty serious golfer.

“I generally play bogey golf, but this year I shot a 79,” he says. His favorite club is a TaylorMade driver

and he started out just walking the golf course with his bag and a few old clubs, and then recognized he liked the game. He soon learned a golf course can put you in your place any time it wants to. He has developed a passion for the game and a respect for the advanced equipment being built to improve your scores.

Bobby has a passion for the auto auction industry because of the great people he has met over the years. While he very much enjoys working at the various dealer auctions, he always finds time to spend with his family. He and Lori enjoy time traveling and particularly like the Fort Lauderdale, Miami and Treasure Island areas of Florida because of the white sand beaches and the bar hopping.

Bobby believes golf is a lot like life. If you just follow the fundamentals, you will come out all right. Bobby said he is amazed by how small our world is; “I can be in Arizona doing an auction and run into relatives of people I might have sold a car to in Florida.”

Some of the fundamentals of golf are having good manners, patience, exercise, having an open mind, a willingness to change your habits and the ability to establish quality relationships. Bobby has learned these lessons from golf and truly believes it is a lot like life. His philosophy of “just following the fundamentals, you should come out just fine” are pretty good words to live by.

Bobby, we hope your golf score comes down in 2011 and we think you’ll probably be rewarded with the dedication you give to your family and friends.G

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BOBBYMCGLOTHLEN

Bobby has a passion for the auto auction industry because of the great people he has met over the years.

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WILSON DISTRIBUTOR SERVICE IIADA DEALER CAP FORMSCar Brite Products Forms, Detail Supplies, Equipment & More Jason & Lisa Goody 105 N McCoy Mt. Pleasant IA 52641Phone: 800-634-0974Fax: 319-385-2927 E-mail: [email protected]: www.wds-usa.com

AUTO OWNERS INSURANCEEASTERN BORDER OF IOWAAmy GoodnightLOHMAN COMPANIES3901 15TH STREET DMOLINE, IL 61265800-747-8431309-764-5967 (fax)[email protected]

AUTO OWNERS INSURANCE 10% DISCOUNT TO ALL IIADA MEMBERSCorcoran & Associates, Inc.Mick and Teresa Corcoran2525 E. Euclid, Suite 102Des Moines, Iowa 50317Phone: 515-262-3141Fax: 515-262-3086Toll Free: 877-518-4051E-mail: [email protected]

ASSOCIATIONS MARKETING GROUP INCHealth Insurance Jesse Patton1112 Maple StreetWest Des Moines, Iowa 50265Toll Free: 800-798-6772Phone: 515-270-8178 Fax: 515-270-0398E-mail: [email protected]

CYCLONE AUTOMOTIVE TRAINING INC.F&I Training, Sales Training, Service Contracts, Rob Miller and Chris Hochstein515 N Jefferson Way Ste HIndianola IA 50125Phone: 515-962-0099 or 515-962-0100Fax: 515-961-8400Rob: 515-205-5900 cellChris: 515-205-5800 cellE-mail: [email protected]

S & C AUTOMOTIVE, INC.Service Contracts, GAP, Aftermarket ProductsSales & F & I Training thru Star Training Group3828-70th StreetUrbandale, Iowa 50322515-276-9622800-776-9622515-276-8472 (fax)e-mail: [email protected]: www.sandcsales.com Contact: Doug Eckhart

NADA BOOKS Official Used Car Guides, Subscription Discounts, Annual Subscription through IIADA, Save $$ Contact IIADA at Phone: 641-755-4177E-mail: [email protected]

REYNOLDS & REYNOLDS INC.Dealer BondsLong Term Care InsuranceVarious types of insuranceContact: Dean M Clark300 Walnut Street Ste 200Des Moines IA 50309Phone: 515-243-1724Toll Free: 800-767-1724Fax: 515-243-6664E-mail: [email protected]

AUTOJINI.COMWebsites for Dealers Contact: Syed Azam310 Main Street Ste 201Ames IA 50010Phone: 515-232-2024E-mail: [email protected]

ZURICH Garage Keepers, Property, Garage Liability Dealer Bonds7045 College Blvd.Overland Park, Kansas 66211Jeff Severino, Regional Sales ManagerPhone: 913-664-3944Fax: 913-498-5521Toll Free: 800-840-8842, Ext. 3944

GLOBE ACCEPTANCE INCSub-prime LenderContact: Sarah GrishamP.O. Box 65400West Des Moines, Iowa 50265Phone: 515-225-9067E-mail: [email protected] Website: www.GlobeAcceptance.com

SECURITY AUTO LOANS (SAL)Sub-prime LenderContact: Scott Erikson/Joe Ruhland4900 Highway 169 N., Suite 205New Hope, Minnesota 55428P: 763-559-5892F: 763-559-7549website: www.securityal.com Scott: 402-639-0664e-mail:[email protected]: 612-804-0720e-mail: [email protected]

ADVANCED BUSINESS PRODUCTS, INC. Printing, Promotional Products, & WearablesContact: Scott Jayne PO Box 71547 Des Moines IA 50325Phone: 515-225-6343Toll Free: 888-464-2274Fax: 515-225-6510Toll Free Fax: 877-987-3514Website: www.go4abpi.com

CORCORAN & ASSOCIATES INC.Various Types of InsuranceContact: Mick Corcoran, Janet Solberg or Donna Torkelson18 – 2nd Street, N.E.Mason City, Iowa 50401Phone: 866-494-1814Fax: 641-494-1819E-mail: [email protected]

INNOVATIVE DEALER SERVICES, INC.Dealer Software Management SystemsP.O. Box 23189Shawnee, Kansas 66283913-312-7344 – Ext. 11Fax: 810-821-1718Website: innovativedealer.comContact: Deems Peterson, Sales ManagerE-mail: [email protected]

FOLLOW-UP PLUS“Customers for Life”Repeat Sales, Referrals & Customer LoyaltyContact: Terry & Sue NewellP.O. Box 294Carthage IL 62321Ph: 888-353-2668Fax: 217-357-9076E-mail: [email protected]

FRAZER COMPUTING, INC.2564 W. Main St., P.O. Box 569Canton, New York 13617Phone: 888-963-5369Fax: 888-963-3366E-mail: [email protected] Rep: Mike Frazer -Dealer Management Software for Used Car Dealers

FRAZER COMPUTING, INC.Contact: Scott Erikson, Iowa Rep100 Prairie Center Drive, Suite 200Eden Prairie, Minnesota 55344Scott Erikson: [email protected] GOLDSTAR GPS2093 20th Ave. S.E.DYERSVILLE, IOWA 52040PHONE: 866-655-8825 Ext. 120Fax: 866-655-8285Contact: Mark VanDykee-mail: [email protected]: www.goldstargps.com

MICROBILT CORPORATIONCredit Reports From Equifax, Experian andTrans Union; Employment BackgroundScreening; Driver’s License & Motor Vehicle Searches111 Butler StreetLexington, South Carolina 29072Contact: Randy Mosteller866-277-7707randy_mosteller@microbilt.comwww.microbilt.com

AUTOMOTIVE DEVELOPMENT GROUP, LLCDealer Compliance Education,F & I Compliance and Training, ServiceContracts, GAP and Protective CoatingsContact: Scott Erikson100 Prairie Center Drive, Suite 200Eden Prairie, Minnesota 55344Scott: (402) [email protected]

MONSTERLOT.NETAutomotive Development Group, LLCDealer to Dealer Inventory /Trading and sharingFree Unlimited Web Accesswww.MonsterLot.net E-mail: [email protected]: Scott Erikson402-639-0664

JR 5 TRANSPORTATIONTransport ServicesJohn Robinson, President1109 S.W. 63rd StreetDes Moines, Iowa 50312515-822-3447

CHASE CUSTOM FINANCEChase Auto Finance1800 S. Naperville RoadWheaton, Illinois 60189Christopher ComptonAssistant [email protected]

SMARTAUCTIONLarry Hall10324 Ladue RoadCreve Coeur, Missouri [email protected]

APPROVED MEMBERBENEFIT PROVIDERS

The National Auto Auction Associa-tion has a new in-lane and online arbi-tration policy that went into effect as of 1/1/2011. To review these new policies please go to www.naaa.com . It is a deal-er’s responsibility to understand these policies and to know what is expected of you as a buyer or seller. The policy in-cludes information on NAAA structural damage and what is required of sellers to disclose and the rules for arbitration. Understanding these policies is a must for those who take this business seriously. Go to the NAAA website and look under “standards”.

NATIONAL AUTO AUCTION ASSOCIATION ARBITRATION POLICY EFFECTIVE 1/1/2011

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A new year brings new goals, and new hopes for improved sales, more

lenders, and more profits for everyone. As with any change in the marketplace, dealerships must prepare their team to meet the current demands of the marketplace.

SALES: From all I’ve read, the customers are back. People are once again going to the dealerships to replace their old vehicles with smaller, more fuel-efficient models, and some are adding to their family fleet so they can meet the weather challenges. The great news is the customers are back from their long hiatus.

What are they finding at the dealerships? The customers are finding store personnel stretched, and the once-many choices of inventory they enjoyed in the past now cut. The product selection step in the selling cycle will need to stress selling what you see in front of you. During the past few years, those dealerships that survived have learned how to manage inventory more effectively, as well as turning it more quickly. They’ve also learned how to operate in a lean environment.

PERSONNEL: Plan on hiring sales personnel and educating them. Personnel are stretched to the point of having job descriptions blurred. I think the time is coming to redefine the roles and create a work environment where they can focus upon the job at hand and cease worrying about what additional items will be asked of them. Multitasking can become dysfunctional after awhile.

Sales processes while basic never change, I find each dealership has a specific culture and the process often must be modified to reflect the culture so management will support the process after the educator leaves.

Education is not a one-time event. Plan a continuous relationship with your education resource. Every process should be monitored, measured, and modified as required. After the modifications have been made, the new process needs to be re-implemented, monitored and the producers need to be held accountable.

LENDERS: The industry needs more of them, and we need them to approve loans. Dealerships will need to continue to seek local credit unions and other local lenders to approve consumer financing. Credit unions may not be use to the independent dealerships, but this is an opportunity to put your best face forward and sell yourself and your business acumen to the lenders.

I was asked how important relationships with lenders are; they’re critical to your success. Lenders again wish to become a close business advisor to your operation. They’re going to want a piece of every banking transaction you have; wholesale, retail, merchant services, checkings and savings, personal and business.

When you think of lenders, what was old is now new again. Keep your ears to the wind; contact every source prospect for lenders at every opportunity.

COMPLIANCE ISSUES: Spend the time it takes to create a binder with your policies and procedures regarding the plethora of federal regulations we must meet. The following is a beginning checklist for those policies and procedures:

With the creation of the new credit protection agency, I think we’ll begin to see enforcement of the rules and regulations and perhaps some additional items will be added to the list of required written documentation.

Review your existing policies and verify what’s written is what’s actually happening. If not, then change either the policies or your practices. Once a policy and procedure is placed in writing, the company is bound by the words it writes.

Conduct self-audits as written in the policies and procedures. Document the education content and the timing of the education of new hires. Document any breaches of security, or failure to adhere to the company policies.

As you know, I am not an attorney and this is not to be used as legal advice. These words are meant to be educational only. Please consult your legal counsel for all legal issues.

The future is once again bright. Prepare for success.

______ DISPOSAL RULE P______ SAFE GUARD RULE P______ OFAC SDN LIST P______ RED FLAG RULE P______ ADDRESS DISCREPANCY RULE P______ RISK-BASED PRICING RULE P______ ADVERSE ACTION LETTERS P

FutureBy Jan Kelly, president of Kelly Enterprises

Jan Kelly is an educator and consultant, international convention speaker and writes frequently for industry publications. For information about educational venues or joining our F&I 20 Group, call 800-336-4275 or visit www.JLKelly.com.

P R E PA R I N G F O R T H E

ONCE A POLICY AND PROCEDURE IS PLACED

IN WRITING, THE COMPANY IS BOUND

BY THE WORDS IT WRITES.

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P R E PA R I N G F O R T H E

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Dodd-Frank Wall Street Reform and Consumer Protection Act

Congress ended with the Federal Trade Commission beginning in earnest to re-view the auto industry in the light of the above consumer enacted law. Last Nov. 17, NIADA General Counsel Keith Whann and Federal Advocates met with senior staff of the FTC as a follow-up to the Sept. 21 meet-ing. A series of questions had been provided to NIADA for discussion in November. At the meeting, Keith walked them through the process of buying a car and provided sam-ples of purchasing documents. The FTC is in the process of formulating questions for public comment regarding various aspects of the auto industry as it relates to consum-ers. FTC staff was not forthcoming as to the timing of that effort, its scope and its intend-ed purpose. The results of the latest meeting were reported to NIADA’s Legislative Com-mittee by conference call on Nov. 23.

Also, on Sept. 21, Whann and Federal Ad-vocates met with FTC staff regarding imple-mentation of the above Bill and its impact on the auto industry. Following discussion of various issues, with Whann leading the discussion and answering various questions

as to how the auto industry works, includ-ing the auction practice itself, it was decided to schedule a half day session to allow for a more detailed discussion of issues (i.e., the Nov. 17 session). All of this is a result of the so-called Wall Street Reform Bill. As reported previously, the new law exempts some auto dealers from increased oversight with respect to dealer-assisted financing. The law does grant increased powers to the FTC regarding dealer oversight. Also, it requires coordination with the Department of Defense to ensure service members and their families are treated fairly by automo-bile dealers.

Senate Motor Vehicle Safety Act of 2010Congress ended with no formal action

on this bill. To review, on June 9, the Sen-ate Committee on Commerce, Science and Transportation marked up and order re-ported S.3302, the so-called Toyota Bill. In earlier drafts of the bill and just prior to markup, language was included (section 310) which would have specified a dealer may not sell or lease a used passenger mo-tor vehicle (both wholesale and retail sales) until the dealer first notifies the purchaser or

lessee in writing of any recall notices.Working primarily with Sen. John Thune, R-

S.D., his staff (Brenden Plack), and committee staff (Alex Hoehn-Saric and Chris Herndon), and as a result of concern raised by Whann and his proposed suggestion, section 310 has been dropped from the bill. This provision would have seriously hurt used car commerce by im-posing tremendous compliance costs and liabil-ity exposure for dealers while increasing the safety risk for consumers by pushing unrem-edied vehicles into the unregulated private sale used car market. While an initial victory, we will continue to advocate on behalf of NIADA’s interest pending further action on the Senate bill as well as a possible House companion bill.

Small Business Jobs and Credit Act of 2010The Obama administration has delayed im-

plementation of the above bill until March. On Sept. 23, the House passed the Senate-passed bill, which includes an increase in the amount the Small Business Administration’s Dealer Floor Plan Financing program can guarantee. This permits the SBA to guarantee bank and fi-nance company loans up to $5 million, which should help, the committee believes, expand dealer access to floorplan lines of credit. We worked with Louisiana Democrat Sen. Mary Landrieu’s committee and personal staff, in conjunction with others, on this. The bill may be the subject of subsequent meetings with the Hill and the SBA on how the program really works.

White House Reform RequestOn Sept. 23 and Sept. 29, Federal Advocates

was contacted by the White House, which is still trying to organize and schedule a meeting to include “people who are working to setup the CFPB.” This meeting is in response to a letter sent by NIADA to President Obama requesting “the opportunity to work with you to reform our industry in common-sense ways that achieve real safeguards for consumers, that promote ac-countability and transparency, and that work.”

Department of DefenseRegarding the issue of “how to ensure that

service members and their families are treated fairly by automobile dealers,” Whann and Fed-eral Advocates also met on Sept. 21 with the De-fense Department’s Frank Emery in the Office of Personal Finance, Family Policy Outreach Directorate. Whann relayed a specific example of how he helped a service member at Fort Bragg with an automobile situation, working with the JAG and others. He also talked about his plan for a special program to teach dealers on how to deal fairly with service members and their families. DOD continues to remain inter-ested in looking for opportunities where Whann could lend his expertise.

FEDERAL ADVOCATES IS NIADA’S GOVERNMENTAL ADVOCACY PARTNER. To read past lobbying reports, visit www niada.com/legislative_and_legal.php

FEDERAL ADVOCATES DECEMBER 2010 LOBBYING REPORT

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This was the year General Motors and Nissan made good on their promise to bring mass-produced electric cars to the market, but don’t count on seeing one in traffic soon. According to the Associated Press, sales so far have been microscopic, and they’re likely to stay that way for some time because of limited supplies.

GM sold between 250 and 350 Chevy Volts in December, and Nissan’s sales of Leaf sedans totaled fewer than 10 in the past two weeks, the AP reported on Jan. 1. Production for both is ramping up slowly. It will be well into 2012 before both the Volt and Leaf are available nationwide.

It’s still unclear just how large the market for electric cars will be once those early adopters are supplied. The base sticker price is $40,280 for the Volt and $32,780 for the Leaf; much higher than most similar-sized, gas-powered cars. If those prices rise, it could make them even more of a niche product than predicted.

EV Sales Not Charging Ahead

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FEDERAL ADVOCATES IS NIADA’S GOVERNMENTAL ADVOCACY PARTNER. To read past lobbying reports, visit www niada.com/legislative_and_legal.php

The Risk-Based Pricing Rule imposes a legal notice requirement on all creditors, including dealers, who use credit scores or other consumer report information to determine the cost of credit or the finance source to which a credit obligation will be sold. The trigger for sending a notice is the pulling of a credit report. In general, the rule requires dealers provide either:

1. A risk-based pricing notice to each consumer customer who applies for retail installment sale financing if, based on a credit report or credit score, the contract APR for that customer is less favorable than the APR a “substantial proportion” of the dealer’s customers, or2. A credit score disclosure notice to all consumer credit applicants.

Notices are required to be given to your customer prior to their signing the retail installment contract. The three main credit bureaus, as well as DealerTrack, RouteOne and CoreLogic Credo, will be equipped to generate RBP notices.

Compliance is mandatory starting Jan. 1. Resources can be found athttp://www.ftc.gov/os/2009/12/R411009riskbasedpricingfrn.pdf (see pages 193-198).

Privacy noticesFederal regulations have required privacy notices since 2001. Now, those old privacy forms need to be reworked and compliance is mandatory as of Jan. 1. For more information, see Protecting Personal Information – A Guide for Business, Gramm-Leach-Bliley Act and 16 C.F.R., Part 313, at www.ftc.gov/privacy or www.ftc.gov/privacy/privacyinitiatives/privacymodelform_FR.pdf. Starting on page 76.

Red Flags RuleAs of Jan.1, after much delayed enforcement, creditors and financial institutions must have developed and implemented a written identity theft prevention program. This will require auto dealers who fall under the definition of a creditor to identify, detect, and respond to patterns, practices, or specific activities that could indicate identity theft.

For more information, visit http://www.ftc.gov/bcp/edu/microsites/redflagsrule/index.shtml (see Fighting Fraud With The Red Flags Rule – A How To Guide for Business).

The information above is provided to give dealers educational background for the requirements of implementing these three rules. Please seek assistance from qualified legal counsel on how your dealership will comply with these requirements. Dealerships that assist their customers with financing sources for the purchase of motor vehicles are required to comply with these rules and regulations.

RISK-BASED PRICING RULE, PRIVACY NOTICES AND THE RED FLAGS RULE

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ADESA DES MOINES1800 Gateway DriveGrimes, IA 50111(515) 986-1200Fax: (515) 986-1201www.adesa.comGeneral Manager: Jeff LisleFleet/Lease Manager: Kevin ParmenterConsignment Sale every Tuesday at 9:30 a.m.Fleet/Lease Sale Tuesday 10:30 a.m.

ADESA KANSAS CITY101 S.W. Oldham RoadLee’s Summit, MO 64081(816) 525-1100(800) 950-2350Fax: (816) 525-4714General Manager: Harold ChapmanDealer Sales Manager: Tamara Kunkel Tuesday 9:30 a.m.

MANHEIM ARENA ILLINOISManheim200 West Old Chicago DriveBolingbrook, Il 60440(630) 759-3800(630) 759-9668General Manager: John OlejniczakDealer Sales Manager: Louis Palermo Tuesday 9 a.m.

DEALERS CHOICE AUTO AUCTION, INC.503 South Wapello RoadMediapolis, IA 52637(319) 394-3510(888) 771-6810Fax: (319) 394-3511www.dcaa.comPresident: Monte DelzellNationwide Transportation:EZ Auto ShoppersSteve Miller – (866) 310-5936Fleet/Lease Manager: Kerri WilkersonConsignment Sale every Tuesday at 6 p.m.Fleet/Lease Sale Tuesday 6 p.m. Group SalesDealer Sales 6 p.m. as scheduled.

DES MOINES AUTO AUCTION1530 S.E. McKinley RoadDes Moines, Iowa 50320(515) 285-8911 Fax: (515)256-9161FRIDAY AT 9:30 A.M. Todd Givant, General Manager

GREATER QUAD CITY AUTO AUCTION4015 78th AvenueMilan, Il 61264(309) 787-6300Fax: (309) 787-4541Tuesday 10 a.m. – Thursday – 6 p.m.General Manager: Larry Anderson

GREATER ROCKFORD AUTO AUCTION5937 Sandy Hollow RoadRockford, Il 61109(815) 874-7800(800) 830-4722Fax: (815) 874-1325 Owner/President: D.M. “Swede”Clark General Manager: Mark Capriola Wednesday 10 a.m.

MANHEIM KANSAS CITY3901 North Skiles RoadKansas City, MO 64161(800) 247-7163Fax: (816) 452-2393 General Manager: Peggy SprengerDealer Sales Manager: Kevin Rhoads Wednesday 9:30 a.m.

MANHEIM MINNEAPOLIS 8001 Jefferson HighwayMaple Grove, MN 55369-4924(763) 425-7653(800) 622-7653Fax: (763) 493-0310www.minneapolisautoauction.comGeneral Manager: Jerry AmanAssistant General Manager: Jon EisenmannFleet Manager: Tony ManwarrenConsignment Sale every Wednesday at 9:45 a.m. Fleet/Lease Sale Wednesday at 9 a.m. Daimler Chrysler Sale Tuesday 10 a.m. bi-weekly. Ford Sale Thursday 10 a.m. bi-weekly. Dealer Sale Tuesday Thunder 1 p.m. weekly (under $5K). RV Sale last Wednesday 2 p.m. Monthly.

MANHEIM MILWAUKEE561–South Highway 41 - (27th Street)Caledonia, WI 53108(262) 835-4436(800) 662-2947Fax: (262) 835-2684 General Manager: Dennis Worthy Dealer Sales Manager: Kimberly Schure Wednesay 9 a.m.

MANHEIM NORTHSTAR MINNESOTA4908 Valley Industrial Blvd. NorthShakopee, MN 55379(952) 445-5544(888) 445-2277Fax: (952) 445-6773General Manager: Jerry AmanThursday 9 a.m.

MANHEIM OMAHA9201 S. 144th StreetExit 440 off of I-80Omaha, NE 68138(402) 896-8000(800) 218-4192Fax: (402) 896-6758 General Manager: Todd Pfeifer Assist. Gen Manager: Korey Grell Thursday 9:30am.

PLAZA AUTO AUCTION, INC.320 Highway 30 West P.O. Box 147Mt. Vernon, IA 52314(319) 895-6232Fax: (319) 895-6727www.plazaaa.comOwner: Mark GrebOffice Manager: Debbie WelshBecky Thuerauf: Fleet/Lease AdministrationConnie Van Ginkel: Consignment ManagerConsignment Sale every Wednesday at 6:30pm. Fleet/Lease/Repo Sale Wednesday at 7pm.

ADESA SIOUX FALLS46893 271st StreetP.O. Box 218Tea, SD 57064(605) 368-5364 Fax: (605) 368-2808 General Manager: Kurt Zabel Wednesday Sale 10:00 a.m. IAAI SALVAGE SALE EVERY OTHER WEDNESDAY – 8:30 A.M.

MANHEIM ST. LOUIS13813 St Charles Rock RoadBridgeton, MO 63044(314) 739-1300(800) 533-5414Fax: (314) 298-3347 General Manager: Mike Goodsell General Sales Manager: Chuck WickleyTuesday 9 a.m.

TRI-STATE AUTO AUCTIONJct. Highway 11 & 80P.O. Box 735Cuba City, WI 53807(608) 744-2020 (608) 744-3418(800) 356-0625Fax: (608) 744-7425 Owners/Managers: Gerald and Helen BrogleyThursday 6:30 p.m.

TRI-STATE AUTO AUCTION OF CHICAGO14001 S. KarlovCrestwood, Il 60445(708) 389-4488Fax: (708) 389-4558COO: Gregg Kobel General Manage/Owner: Larry Hero Wednesday 10 a.m.

WEST CENTRAL AUTO AUCTION, INC.P.O. Box 700I-80 Exit 1173277 Ute AvenueWaukee, IA 502 63(515) 987-1700(800) 987-7778Fax: (515) 987-3005www.wcaaonline.comOwner: Frank ScaglioneSales: Phyllis FasbenderConsignment Sale every Thursday at 9:30 a.m.

NADA AppraisalPRO has been optimized to work on smart phones, including iPhones, iPads, Androids and Palm Pre/Pixies, in an-other step to provide clear mobile access to its products. Developed by NADA Used Car Guide, NADA AppraisalPRO is the only used-vehicle appraisal product on the market to tap the resources and data of six industry leaders: AutoTrader.com, J.D. Power and Asso-ciates/PIN, Manheim Market Report, NADA, vAuto and Experian AutoCheck.

“We listened to dealers and responded to their needs by making our data and values more readily accessible,” said Mike Stanton, vice president and chief operating officer of NADA Used Car Guide. “There’s no room for error when making buying and selling decisions on the go.”

Smart phone users can now view all of the market in-formation offered by NADA AppraisalPRO in a format that matches the screens and functionality of Smart-phones, providing clear mobile access to key industry data, including:

Asking and advertised prices online (AutoTrader.com);

What a particular model or similar vehiclesare selling for currently in the local market (J.D. Power

and Associates/PIN);Auction selling prices, including trim-level detail

(Manheim Market Report);Rough, average and clean trade-in, clean loan and

clean retail values (NADA); The day’s supply for that area (vAuto);The vehicle’s history (Experian AutoCheck) -- avail-

able as an optimized summary or as the entire report for easy access on the go; and

A purchase worksheet that lets you input your purchase or trade-in price, add and deduct for reconditioning costs, and see where you stand profit-wise.

With this complete picture of the market, dealers can determine a precise trade number or auction bid that re-flects actual conditions. In October, NADA Used Car Guide also optimized its NADA Online online valuation product for smart phones as part of its ongoing efforts to increase mobile access to its products.

NADA AppraisalPRO subscribers may use their mobile browser to visit mobile.nada.com/MobileWeb, and then log in to their NADA AppraisalPRO account using their same credentials.

NADA APPRAISALPRO OPTIMIZED FOR SMART PHONES MOBILE ACCESS TO ITS PRODUCTS.

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