nebraska dealer updates

ALSO NE IADA 34th Convention ItineraryPLUS How Much Can Just One Curbstoner Cost Your City?

COLUMBUS, HERE WE COME!

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

W W W . N E I A D A . C O M

DEALER UPDATESN E B R A S K 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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Vehicle Service Contracts I GAP Coverage I Credit Insurance

Lifetime Engine Warranty I Limited Warranty I Dealer Participation Programs

F&I Training I Advanced F&I Technology

866.927.2914www.protectiveassetprotection.com

To find out how we can enhance your dealer profits and customer

satisfaction contact Protective’s Nebraska representative Mark Wheeler today!

We’ve Got Your Back.In your search for a quality F&I relationship,

make sure you look before you leap.

Our name says it all - Protective.

We are there when your customers and your

dealership need us most - from innovative F&I

solutions to professional claims handling.

Give us a call or visit us online.

We’ll jump at the opportunity.

We Listen • We Care • We Have Solutions

Lifetime Engine Warranty, Limited Warranty, Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VSCs are backed by Old Republic Insurance Company. GAP, Lifetime Engine Warranty and Limited Warranty are not available in NY. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.

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Vehicle Service Contracts I GAP Coverage I Credit Insurance

Lifetime Engine Warranty I Limited Warranty I Dealer Participation Programs

F&I Training I Advanced F&I Technology

866.927.2914www.protectiveassetprotection.com

To find out how we can enhance your dealer profits and customer

satisfaction contact Protective’s Nebraska representative Mark Wheeler today!

We’ve Got Your Back.In your search for a quality F&I relationship,

make sure you look before you leap.

Our name says it all - Protective.

We are there when your customers and your

dealership need us most - from innovative F&I

solutions to professional claims handling.

Give us a call or visit us online.

We’ll jump at the opportunity.

We Listen • We Care • We Have Solutions

Lifetime Engine Warranty, Limited Warranty, Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VSCs are backed by Old Republic Insurance Company. GAP, Lifetime Engine Warranty and Limited Warranty are not available in NY. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.

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D E A L E R U P D A T E S JANUARY/FEBRUARY 2011

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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] DEALER UPDATES IS PUBLISHED 6 TIMES PER YEAR BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIA-TION SERVICES CORPORATION, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203; PHONE 817-640-3838. PERIODICALS POSTAGE PAID AT DALLAS, TX AND AT ADDITIONAL OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO NIADA STATE PUBLICATIONS, 2521 BROWN BLVD., ARLINGTON, TX 6006-5203. THE STATEMENTS AND OPINIONS EXPRESSED HEREIN ARE THOSE OF THE INDIVIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF NEBRASKA DEALER UPDATES OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEAR-ANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NIADA , DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT © 2011 BY NIADA SERVICES, INC.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

ADVERTISERSINDEXAutoTrader.com ..................................Back CoverCars.com ..........................................................9Manheim.com ..........................Inside Back CoverNebraska Auto Auction ............Inside Front CoverSmart Auction ....................................................5Western General / Protective .............................3

6 Columbus, Here We Come!

6 From the President

13 NE IADA 34th Convention Itinerary

14 How Much Can Just One Curbstoner Cost Your City?

INSIDEBOARD OF DIRECTORSOFFICERSPresidentChuck Rogers Chuck Rogers Auto SalesP.O. Box 11Tekamah, NE 68061402-374-2400

President ElectDoug BorgmanCreighton Auto SalesP.O. Box 365Creighton, NE 68729402-358-5252

Vice PresidentDennis DeNovellisSidney Auto Sales1229 Illinois Ave.Sidney, NE 69162308-254-3921

Secretary-TreasurerAl YoungYoung Motor Co.6110 2nd Ave. W.Kearney, NE 68847308-238-0515

No dealer should be without the NADA Official Used Car Guide. These must-have guides feature pocket-size portability for quick and easy car-side appraisals. Additionally, NADA Online gives you 24/7 online access to used vehicle values, at your desk and out at the auction on your smart phone, while NADA e-Valuator for Dealers software combines more than 19 years of NADA values on your PC and offers an inventory feature.

NIADA offers member subscription discounts for the NADA Official Used Car Guide, as well as NADA Online and NADA e-Valuator for Dealers.

Contact your state association or NIADA at 800-682-3837 for your discounted subscriptions or complete the online ordering form at www.nada.com/niada. The promotional code for ordering discounted NADA products is NIADA199. This code will need to be entered during checkout to receive the discount.

Discount code available for NADA Guide

NIAD

A199

OVE.com, the world’s largest, 24/7 online wholesale vehicle marketplace, celebrated a centennial milestone in November when it signed its 100th independent auction partner, State Line Auto Auction in Waverly, N.Y.

OVE.com is now the online partner of choice for about 80 percent of the National Auto Auction Association’s (NAAA) member auctions. Unlike other platforms, auctions must be NAAA members to participate on the OVE.com platform, so buyers can purchase confidently knowing that every transaction facilitated on OVE.com adheres to the highest industry standards.

“OVE.com plays a critical role in our remarketing strategy,” said Ben Lange, president, America’s Auto Auction. “Our partnership with OVE.com helps our dealer and commercial customers sell cars more quickly, and we’ve been able to touch cars that normally would not come to auction, so we’re expanding virtually. Oftentimes, we’re able to leverage our new online relationships into lane business; and on the buy side, we start to see the OVE.com buyers show up on our AWG simulcast screens and sometimes in the lane.”

As partners on OVE.com, independent auctions:Control the entire transaction, from setting their own fees to arbitrationEasily list inventory, images and condition reports, especially if using the automated solutionAvoid listing or membership fees and never pay anything until they sell a vehicleExpand their reach nationally and even internationally, especially since their inventory is

exposed on Manheim.com’s PowerSearch

For more information, visit OVE.com.

OVE.com Signs 100th auction partner

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DIRECTORSLes Bockmann Bockmann Auto Sales P.O. Box 93 St. Paul, NE 68873 308-754-5645 Dean CernyColumbus Auto Mart2817 13th St.Columbus, NE 68601402-564-4952www.columbusautomart.com

Andy Chase ABC Auto 3801 N. 70th St. Lincoln, NE 68507 402-466-1613 Dale CotnerDales Trucks625 S. Lincoln Ave.York, NE 68467402-362-5933www.dalestrucks.com

Don Deepe81 Automotive1380 River RoadHebron, NE 68370402-768-6918

Joel KershnerKershner’s Auto Korner220 W. South St.Hastings, NE 68901402-461-3161www.kershnerautokorner.com

Arlan KuehnKuehn Auto Sales, Inc.495 Old Hwy. 20 South Sioux City, NE 68776402-494-2677www.kuehnauto.com

Brad QuackenbushQ Family Auto540 S. E St.Broken Bow, NE 68822308-872-2227www.qfamilyauto.com

Jody Smith Jody’s Auto Sales4 S. JeffersNorth Platte, NE 69101308-534-3729 jodysautosales.com

Jan Merritt, Executive Director5701 Russell Dr.P.O. Box 29107Lincoln, NE 68529800-659-5453402-464-2089402-464-8878 (fax)[email protected] or [email protected]

Gary J. Merritt, assistant executive director

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.

NIADA/Manheim Community Service Award

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For only the second time in the last 35 years has the Nebraska IADA had its state convention someplace other than Kearney. Three years ago, the members and directors at our state convention voted to go to Columbus to see if we could get dealers from another part of the state, too. I’ve already had a couple of dealers from Columbus, who haven’t previously attended a convention, say not only will they attend, but will be glad to help with whatever I may need.

The Nebraska IADA has a family-type convention because 30 years ago we decided it was not fair to ask the dealers (most of whom had been on the road all week) to leave their families for the weekend, even if it was important convention they needed to attend such as ours. Because of this, the kids have been coming for many years and we have structured part of our convention for them. This year, I am sure most of them will be in the pool area. Some people were quite concerned whether the New World Inn would have its pool ready by the time we get there and if it would be located inside the main building.

Last summer, I made a special trip to the New World Inn to check our vendor site, the Auxiliary room, the rooms themselves and especially the pool area. Rest assured the pool is located within the main building itself. It is decorated in a pirate motif and has tables and chairs for parents, as well as a refreshment area. If it is your wish, you can request your room in the pool section of the hotel. This area is really neat. We’ve included an agenda elsewhere in this issue for your perusal. DEALERS PLEASE BE AWARE…

It is more important than ever you pay attention to your paperwork. In the last six months, we have had more complaints in our office than we have had in the last five years. Not only have we heard from consumers, but from law enforcements agencies across the country, too. This involved no FTC Buyers Guide, In Transits made out improperly or no dealer number and/or name on the In Transits. While some of these are federal violations, the consumer only has to go online and find the agency and send in a complaint. This is not the good old days anymore. The long arm of the law gets longer and longer.

Welcome to our new newsletter, which is being published by the National IADA. We hope it meets your approval.

I also hope you can make it to the 34th Annual Nebraska IADA Convention, Feb. 11-13. It is in a new location at the New World Inn in Columbus. We wish to draw some new dealers to it and while I know it’s a little less convenient for our western Nebraska dealers, I hope it doesn’t deter anyone from coming. It will be in Kearney again in 2012.

If you have ever been to a convention, you know it’s a learning experience, as well as a good time. There is always a lot to learn from our speakers. It may help you to become a better dealer and teach you to do the little things necessary to avoid a costly mistake. You also get to meet some vendors who may help your business work more efficiently. We need to thank these vendors, speakers and sponsors who contribute education, prizes, meals, entertainment and much more to make our convention so affordable and beneficial. Without them, we could not have such a great convention at such a great price.

We also need to get as many dealers as possible to join our association and to attend our convention. The cost of membership is more than offset by the benefits. There are discounts on buyer fees at several auctions: Manheim Omaha and Nebraska Auto Auction among them; 10 percent off dealer open lot insurance by Auto Owners Insurance; Blue Cross/Blue Shield health insurance through Kirby Roth Insurance Agency; free subscription to Used Car News and the Nebraska IADA newsletter, as well as a 10-percent discount on all forms sold by the association.

By becoming a member of the Nebraska IADA, you also become a member of the National Independent Automobile Dealers Association. These are some of the benefits associated with being a member of the Nebraska IADA.

Come to our convention and meet other dealers, vendors, and sponsors. The friendships and connections you establish are worth way more than the cost of the convention. Belonging to our association and attending our yearly conventions are benefits you cannot afford to miss out on. See you in Columbus in February!

Sincerely,Chuck RogersPresidentNebraska IADA

C O L U M B U S , H E R E W E C O M E !

By Jan Merritt, Exec. Director

CONV

ENTI

ONNebraska IADA Convention Feb. 11-13, 2011 FROM THE

PRESIDENT…

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JANUARY/FEBRUARY 2011 D E A L E R U P D A T E S

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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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It’s that time of year again, the start of the legislative session. This will be the long session with new senators in the legislature. There is sure to be a lot of bills introduced and, as always, there are many house-cleaning bills and statutes in need of updating. Many times, it’s the ones we don’t hear about until they’re introduced that can have the biggest impact on the car dealers.

A lot of the bills we’re interested in come from the transportation committee, although many times they can be addressed in other committees.

We work closely with the DMV, as well as with the Licensing Board and the Nebraska new car & truck dealers association, to get feed back and opinions from different sides on the bills presented to the legislature. We would also like to hear from you, the dealers, on topics you find of interest. We know we won’t always see eye to eye on every bill, whether it be between the association and

the DMV, Licensing Board, the new auto

dealers, the legislature or between different groups of dealers in the association. What we try to do is understand all the parties involved and their interests or concerns.

If you are not a member, the best way to get your voice heard is to join the association and get on our e-mail list. We also encourage every dealer out there to learn who your legislative representative is and how to get a hold of them. If you do not know how, please give us a call and we will get the information to you.

Please do take an interest in what is happening out there; read the newsletters and get involved. You can make a big difference. Just a few years back, there was a bill before the legislature to have dealerships be closed by law one day a week. It was presumed it would be on Sunday but it could be any day of the week, as long as it was the same day every week (day chosen by each individual dealership). We sent out a survey to more

than 900 dealers who were predominantly sold used vehicles and whose business predominantly came from used sales. Between 75 and 80 percent came back adamantly opposed to this bill (on principal alone on most surveys). With many dealers there in the hearing room voicing their concerns, the bill died in committee. The voice of the dealers was heard that day.

It is so important you become involved and make your voice heard. We’d really like to emphasize this: the association acts, with all intentions, to the best interest of the used auto dealer members, but like everything else in life, we may not completely see eye to eye. We do hope dealers do not take this personally, for we have found on some topics we are standing side by side, but on others, we may be on opposite sides of the fence. The association and the board realize this, as it can also happen within the board from time to time.

This is just a small part of what happens

on the state level. On the national level, we have an outstanding team working for us. We have Keith Whann, the National IADA legal counsel, who has worked hard for many years in Washington, D.C., representing the used auto dealers. We have a well-known and respected lobbyist team making our voices heard in Washington. We also have the advantage of having great people in the other state associations that we work with. Odell and Rose Morgan from the Oklahoma IADA, Nancy Chapman from the Michigan IADA, Jim Mitchell, Judy Wilson, Wayne Jones, Jim Robinson and all the other state association executives we call on when we need help.

The National IADA works closely with all interested parties on legislation. Not only do we have our team in Washington, we work with the National Automobile Dealers Association and other parties with an interest in what happens in Congress. Many times, when something comes down from the Hill, the biggest impact is to the smallest dealership.

This is why belonging to your association, the Nebraska IADA, as well as the National IADA is so important to the smaller dealers and the biggest dealers out there. Where else out there can you go to get this group of people working to keep you in business?

As stated earlier, in addition to knowing your state legislative representative, you also should know your national representative, know how to contact them, and let them know how you feel, whether it be Sen. Ben Nelson, Sen. Mike Johanns, or Rep. Adrian Smith, Rep. Jeff Fortenberry or Rep. Lee Terry.

This edition also includes information on two national issues you as dealers need to be address. The first: new changes to the privacy laws that took effect January 1. Odell Morgan has worked hard on this and we appreciate all the help he has given us. In November, we were swapping e-mail back and forth on Sunday afternoons. The Morgans (Oklahoma IADA) and Nancy

Chapman (Michigan IADA) have a privacy program now available to Nebraska IADA dealers. Please take a look at it or call our office for more information.

The second issue is the new rules for the 1099 reporting. This is a very important IRS reporting rule as part of the Health Insurance Reform Bill that will affect every single dealer out there, NO EXCEPTIONS.

Dealers, let’s hear from you. Get on our e-mail list to get updates and let us know how you feel about what is going on. Become involved, become educated and join the team. When you think about the dues, just try to hire any one of the people in the association working for you for just one hour for what you are getting.

You can contact us at [email protected] to get on our e-mail list. You also may call our office at 800-659-5453. As always, feel free to visit with any of the Nebraska IADA board members. They would be glad to talk with you about up coming legislative issues.

L E G I S L A T I V E I S S U E S

DEALERS, LET’S HEAR FROM YOU. GET ON OUR E-MAIL LIST TO GET UPDATES AND LET US KNOW HOW YOU FEEL ABOUT WHAT IS GOING ON.

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Standards to Make Auctions Better for Customers By David Angelicchio

The National Auto Auction Associ-ation (NAAA) is the leading remar-keter of used vehicles in the world. NAAA member auctions sell about nine million vehicles per year through the physi-cal auction lanes and online. Over the past several years, NAAA has been focused on developing consistent standards and prac-tices to be applied at all member auctions to enable customers to buy with more confi-dence from any auction they choose, wheth-er they buy in-lane or online. The ultimate goals are to improve buyers overall auction experience and increase vehicle residuals.

In connection with this renewed focus on standards, the Auction Standards Com-

mittee (ASC) was formed. It’s comprised of representatives from Manheim, ADESA, ServNet and independent auctions. Because of the complexity of the issues and their im-portance to the industry, the ASC also en-gages an outside industry consultant to as-sist in the development of policy. The ASC also works hand in hand with other industry associations to help to ensure industry ac-ceptance and endorsement of the standards and policies that are developed.

The first area of focus for the ASC was the development of a revised arbitration policy. The arbitration standard was com-pleted and approved by the NAAA board in October 2009 and became effective on

January 1. This policy has been universally endorsed and adopted by NAAA member auctions and the rest of the vehicle remar-keting industry.

The next area of focus was the develop-ment of a standard wholesale certification standard. The ASC determined although buyers believed there was a definite value to wholesale certification, they were confused by the large number of programs and could not define them or quantify their value. In addition, the myriad of different policies created operational inefficiencies at the auction level. The ASC was charged with developing a standard certification pro-gram that combined the major elements of all the separate policies while maintaining individual company branding. After exten-sive study, the ASC – working with Agility Consulting and the IARA – developed the NAAA Certification Standard, approved by the NAAA board in September. This stan-dard has been endorsed by IARA and will become effective on Jan. 1, 2011. The mar-keting materials for this program are being prepared and will be available soon.

The ASC also has developed a process to receive comments on all NAAA standards so they can continually be updated. The committee will continue to look at other areas of standardization including vehicle grading.

As the leader in vehicle remarketing, NAAA is committed to the continued de-velopment of consistent auction standards and practices in order to provide the best possible service to the dealers.

All NIADA members and dealers seek-ing full detail on national vehicle condition standards in place at NAAA auctions begin-ning next month should visit www.NAAA.com and click on Standards.

David Angelicchio is chairman of the board and past president of NAAA, which represents more than 317 auto auctions both domestic and in-ternational, with more than 8.9 million units sold each year. He is the general manager of the Pittsburgh (Pa.) Independent Auto Auction.

AS THE LEADER IN VEHICLE REMARKETING, NAAA IS COMMITTED TO THE CONTINUED DEVELOPMENT OF CONSISTENT AUCTION STANDARDS AND PRACTICES IN ORDER TO PROVIDE THE BEST POSSIBLE SERVICE TO THE DEALERS.

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The NE IADA Board and Staff take this opportunity to wish all of you a very Happy and Prosperous New Year. It’s already better because the campaigning is over! That always helps.

Perhaps we will soon have a little more certainty of what to expect during the next two years regarding taxes and regulations. That will help with planning. We believe there is now a potential for easing the requirements certain to be coming from the new Consumer Protection Financial Bureau (CPFB) created by the last Congress and enacted into law by President Obama. Keith Whann, NIADA’s legal counsel, and Federal Advocates, NIADA’s Washington lobbying firm, recently have been working with the regulators regarding the impact this law could have on dealerships. We are hopeful good news will come from those meetings. And, we believe Congress will rescind the Health Bill’s onerous requirement to send 1099s to every entity from which we purchase $600 or more of goods and services. There appears to be a better than even chance the Bush tax cuts for all tax payers will be extended, at least temporarily. That’s all good news!

Other areas of legislation and proposed regulations being considered in the last Congress and by regulators are now subject to review by the new Congress. We look forward to getting some better news from those areas.

That alone will make this a Happy and more Prosperous New Year for dealers!

We look forward to helping you achieve those objectives.EDITED VERSION REPRINTED BY PERMISSION FROM OKLAHOMA IADA

HAPPY NEW YEAR!Dear Ladies,

We’re excited about the upcoming Nebraska IADA Convention, set for Feb. 11-13 at the New World Inn in Columbus, Neb. We’ve been assured it’s a family-friendly facility with plenty of fun opportunities for all generations. Please consider joining us this year.

I also want to remind you of the Auxiliary Auction. The auction is our way of funding a scholarship program for applicants connected to our dealerships. Please consider bringing a donated item to be auctioned off for this purpose. Our auxiliary will meet sometime after the auction to determine how the proceeds will be distributed. We hope you’ll consider becoming a member of our group.

The weekend’s itinerary is not complete but exciting new ideas are in the works.

Auxiliary President Linda Rogers

FROM THE AUXLIARY PRESIDENT:

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Members Renewing since Last Newsletter:

BOGERT’S AUTO SALES Kimball (1984)

INSELMANS USED CARSLincoln (2009)

81 AUTOMOTIVEHebron (1992)

FELLERS AUTO PLEX LLCLincoln (2007)

ABC AUTO SALESLincoln (2001)

BIGLER MOTORSLincoln (1998)

ISUZU TRUCK OF OMAHAOmaha (1996)

PAUL GERBER AUTO SALESOmaha (1989)

BLOCK BODY SHOPRoca (2001)

AUTO SERVICES INC.Mt. Home, AR (2001)

WHEELS FOR YOULincoln (1998)

CTR INC.Aurora (2002)

D & D SALESValentine (2001)

DRIVERZ EDGE VEH. SERV. CONT.Beaver Lake (2003)

ECKLEY AUTO BROKERSOmaha (2009)

CONNELY’S CAMPER CORNERBroken Bow (2009)

CHUCK ROGERS AUTO SALESTekamah (2001)

CLARKSON MOTOR INC.Clarkson (2005)

DOVE AUTOGretna (2002)

New Members sinceLast Newsletter:

CAR NATION6052 L St.Omaha, NE 68117(402) 339-2778Eric Knudtson

INVESTMENT MOTORS SALES & LEASING4404 S. 84TH St.Omaha, NE 68127(402) 593-0010Francis Kleinschmidt

JAG MOTORS1901 S. 1st St.Lincoln, NE 68502(402) 416-2544Jody Griffith

RAIDER-NATION AUTOPLEX P.O. Box 357Hwy 92 & Co. Rd. 10Mead, NE 68041

MEMBERS

NOTE NEW LOCATIONNEW WORLD INN

COLUMBUS, NEBRASKA

INFORMATIONEDUCATIONSEMINARS

SPEAKERS, FUN, FRIENDSHIP,

ENTERTAINMENTVENDORS, SPONSORS

Plan to attend the 2011 34th Annual Convention. It was voted at the 2008 convention to try a new location for 2011. The winner was the New World Inn in Columbus, Neb. It will be exciting to check out the new location. For all of those who’ve considered attending, now is the time.

We are putting the convention program together now. Some topics we’ll be covering are Electronic Liens, report from the DMV and Licensing Board, legislative reports and open forum discussion. Plus more as we get speakers lined up.

As always, don’t forget we will have the Auxiliary Auction to raise funds for the scholarship program.

Be sure to bring the family as this is a great mid-winter getaway for the whole family. The New World Inn has just recently completed their indoor water park in a pirate motif - the kids will have a great time in the pool.

There is no better way to improve your dealership than attending this convention. Meet dealers away from the hustle and bustle of the auction, meet with auction personnel, maybe meet some new auction personnel, talk to warrantee and insurance people in the relaxed atmosphere of the Nebraska IADA annual convention.

Remember all dealers are welcome, members and non-members alike.

Watch for more information to come.

34th ANNUAL NEBRASKA INDEPENDENT AUTO DEALERSSTATE CONVENTIONFebruary 11, 12, 13, 2011

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FRIDAY, Feb. 114 p.m. Registration5:30 p.m. Hors d ‘oeuvres6:45 p.m. Kick-Off Dinner7:45 p.m. Entertainment10 p.m. Hospitality room opens

SATURDAY, Feb. 127:30 a.m. Registration Breakfast8:15 a.m. “Who’s in the Vendor

Hall” (introduction of vendors and their products by President Chuck Rogers)

Introduction of dealers, guests and their families

8:50 a.m. Call to Order by President Chuck Rogers

9–10 a.m. Seminar 10–11 a.m. Seminar11–Noon Seminar12:15 p.m. Opening Luncheon

(children’s menu available, ask your waitress)

1:15-2 p.m. Seminar2-2:30 p.m. Seminar3-4 p.m. Seminar4:15 p.m. Dealer Open Forum

Discussion (bring questions and ideas)

5:30 p.m. President’s Reception Silent Auction6:30 p.m. Grand Awards Banquet Generator Awards Quality Dealer Award8:45 p.m. The Auxiliary Auction10 p.m. Hospitality room opens

SUNDAY, Feb. 138 a.m. General Business Meeting Continental Breakfast8:30 a.m. Auxiliary Business

Meeting9:15 a.m. Board of Directors

Meeting (all members welcome, but only directors may vote)

Please note this is a rough draft as the convention was still being planned when we went to press. Members should receive more detailed information by the time you read this. Also, all dealers are welcome. If you have not received convention information, but would like more information, please contact our office.

Vendors, please contact us if you would like exhibit at the convention.

34TH ANNUALNEBRASKA IADA CONVENTIONFEB. 11-13, 2011NEW WORLD INN • COLUMBUS, NEB.

LET US JOIN TOGETHER IN FELLOWSHIP AND EDUCATION

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Curbstoned cars are often cheap, but state and local governments pay a high price. A new case study from Stop Curbstoning reveals the true cost associated with a single curbstoner. A recent California Department of Motor Vehicles (DMV) curbstoning investigation ended with a felony arrest on 12 counts of perjury and filing false documentation, but for Stop Curbstoning, that was just the beginning. The organization examined the financial impact of curbstoning using this single real-life case as an example. It found cities in which the curbstoner operated lost more than $56,000 in sales tax revenues alone, and the state of California lost $168,000. Other financial costs included lost license revenue, lost local business and potentially increased emergency response burdens due to unsafe vehicles – all from just one curbstoner. “Because there are so many curbstoners out there, even small things add up to a lot,” says Charles Redden, president of AutoTec, one of the companies behind the effort to stop curbstoning. “Take the annual state license fee for used car dealers. In California, it’s $176 for the first year and $126 to renew. But for every thousand curbstoners, that’s over a quarter-million dollars every two years.” “With local governments increasingly strapped for cash, enacting and enforcing anti-curbstoning laws can be a quick way to boost revenues and enhance their communities at the same time.” The community enhancement and public safety aspects of enforcing anti-curbstoning laws are harder to quantify, but should not be underestimated, Redden says. “Getting curbstoned vehicles off the streets frees up parking for local businesses, reduces obstacles to traffic, and eliminates eyesores,” Redden says. “It also eliminates a major source of unsafe vehicles – cars that look OK, but have major structural damage or missing safety equipment. How do you place a dollar value on all that? It’s priceless.” For more information about the case study, curbstoning and efforts to put a stop to this illegal practice, visit StopCurbstoning.com.

HOW MUCH CAN JUST ONE CURBSTONER COST YOUR CITY?

As the new Risk-Based Pricing Rule takes effect this month, auto dealers need to make sure they have information, resources and tools in place so they are ready to comply. Applying to Buy Here-Pay Here (BHPH) dealers and those who do business with third-party creditors, the rule requires dealers to notify consumers when they receive materially less favorable credit terms than others based on consumer report information.

According to the new rule, a risk-based pricing notice must be provided to the consumer before signing the credit agreement (direct lending note or indirect retail installment sales contract). The notice must:

Include information about the elements of a credit report.State the annual percentage rate and other terms were set based on

the consumer’s credit report.State the terms offered may be less favorable compared with the

terms offered to consumers with better credit histories.Encourage the consumer to verify credit report accuracy.Identify all consumer reporting agencies that supplied a consumer

report used in the credit decision.Inform the consumer of the right to a complimentary copy of a

consumer report from those agencies for 60 days after receipt of the notice.

Provide guidance on obtaining a consumer report.Direct the consumer to the Federal Reserve Board and Federal

Trade Commission’s websites.Dealers can use a case-by-case method, a credit score proxy method

or a tiered pricing method to identify which customers must receive a notice. For more info, a Adobe PDF is available at www.ftc.gov/os/2009/12/R411009riskbasedpricingfrn.pdf.

An exception to the Risk-Based Pricing Rule allows dealers to provide a credit score disclosure notice to all customers who apply for credit. This option is only available to dealers who use credit scores in the decision to extend credit. This exception notice must include the consumer’s credit score, the date it was created, its source, and information about the range of scores and how lenders use them. In addition, the notice must provide a description or graphical representation of how the applicant’s credit score ranks in comparison with other consumers. For this, dealers will need data from their consumer credit report suppliers.

The exception notice may be the easiest path to compliance for many dealers, as it avoids the analysis of who is required to receive a risk based-pricing notice. However, each dealer should look at its own unique business to determine which compliance option will work best.

While dealers may be concerned that the new rule will create more paperwork and administration, risk management platforms can help automate indirect lending, credit approval and compliance processes. By unifying lending transactions and simplifying documentation, a technology platform can enable quicker decision making and help prevent financial and legal penalties resulting from non-compliance.

Whatever notice option your dealership pursues under the new rule, automating credit approval and compliance processes can help you ease the regulatory burden on staff resources, reduce your risks of non-compliance, and safeguard your dealership’s reputation.

Lee Domingue is CEO of indirect lending at Wolters Kluwer Financial Services. For more information, visit www.wolterskluwerfs.com/ilsolutions.

Complying with the Risk-based Pricing Rule

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