APRIL 2016 MidAtlantic Dealer News

NHL LEGEND BILL CLEMENT IS KEYNOTE SPEAKER MARIADA 2016! 

MidAtlantic 

DealerNews 

APRIL 2016 

AFFILIATED WITH NIADA | PUBLISHED BY PA-MD-DE IADA 

Pennsylvania | Maryland| Delaware 

www.piada.org | www.newjerseyiada.org | www.newyorkiada.org | www.mdiada.org | www.deiada.org 

ROBERT HOLLENSHEAD ON DIMINISHED 

VALUE CALCULATOR 

NHTSA ON ELECTRONIC 

NOTIFICATION OF 

SAFETY RECALLS 

UPDATE ON 

PENNDOT’S 5 YEAR 

AGENT CONTRACT 

I. A. D. A. 

United We Stand 

PIADA 

1501 North Front Street 

Harrisburg, PA 17102 

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Permit No. 557 

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MidAtlantic 

DealerNews 

Affiliated with National Independent Auto Dealers Association 

DEPARTMENTS & ARTICLES 

Presidents’ Message to MidAtlantic Dealers By John DeFilippo ..........6 

Executive Directors’ Message By Paula Frendel, Reg Evans .............8 

Dealer Best Practices in Response to Emissions Fraud Lawsuits 

By Anthony Bush, Esq. and Grace S. Power, Esq. ..................10 

NIADA With State IADA's Input Provides Comments to NHTSA on 

Alternative Methods of Safety Recall Notification By Reg Evans .......12 

Diminished Value Calculator...Backed With a Check...Holy Schmozoly 

By Robert Hollenshead ....................................14 

New 5 Year Agent Contract Required by PennDOT By Arie Garcia ........16 

Political Campaigns Impact Legislation and Policy By Bob Keaton .......20 

PennDOT Announcement of Elimination of Registration Stickers .........20 

America's Auto Auction Harrisburg Hosted First Live Agent Seminar 

of 2016 By Reg Evans .....................................21 

Your Most Important Collection Tool By Al Mosher ...................22 

What Edmunds Says About Near Record CPO Vehicle Sales ............26 

Legal Corner By Tom Hudson, Esq. and Nicole Munro, Esq. ............28 

Kontos Kommentary By Tom Kontos, Adesa Auctions ................30 

PIADA, NJIADA/NYIADA, MIADA/DIADA 

PROGRAMS, OFFERS & EVENTS 

PIADA ANNUAL GOLD AND BRONZE SPONSORS ................. 6, 13 

5th Annual MARIADA Dates/Locations Set .................... 6, 8, 18 

Announcing Keynote Speaker, BIll Clement, for MARIADA 2016 .........18 

PIADA Issuing Agent Training Courses ...........................23 

AUCTION DIRECTORY - EXPANDED FOR OUR STATES ...............24 

Pennsylvania Forms Dealers Can Order ..........................25 

Maryland Forms Dealers Can Order .............................25 

IADAs Membership Information ................................25 

ADVERTISERS 

✷ ABC Lancaster ..............31 

✷ Adesa PA/Adesa Pittsburgh ......7 

✷ America’s Auto Auction Harrisburg. 2 

AutoTrader ....................6 

Auto Use ....................21 

✷ Auto Zone ...................6 

✷ Bel Air Auto Auction ..........23 

✷ Central Pennsylvania Auto Auction. 32 

✷ Corry ADE ....................9 

✷ Counselor Library ............13 

✷ Dealer Goodies ..............27 

4 | APRIL 2016 MIDATLANTIC DEALER NEWS 

APRIL 2016 

✷ Greater Erie Auto Auction ......13 

✷ GWC Warranty. ...............3 

✷ Kramer Insurance Center .......23 

Manheim New York. . . . . . . . . . . . .15 

✷ Manheim Pennsylvania. . . . . . . . . 17 

MyDealerOnline .................6 

NextGear Capital ................6 

✷ North East PA Auto Auction .....19 

✷ ProGuard Warranty Inc. .......5,6 

✷ Winchester Auto Auction .........9 

✷ ADVERTISER ALSO PARTICIPATING IN THE 2016 DISCOUNT BOOK FOR PIADA-MDIADA-DEIADA FOR ALL FIVE MIDATLANTIC STATES. 

EXPANDED DISTRIBUTION OF THIS RENAMED MAGAZINE (FORMERLY PA DEALER NEWS) NOW INCLUDES DEALERS IN THE FIVE STATES OF 

PENNSYLVANIA, NEW JERSEY, NEW YORK, MARYLAND, DELAWARE: (1) VIA EMAIL TO ALL DEALER MEMBERS AND TO ALL NON-MEMBERS THAT 

PROVIDE US WITH THEIR EMAIL ADDRESSES: (2) PAPER COPIES ARE MAILED TO PIADA MEMBERS IN PA AND TO MEMBERS OF NJIADA, NYIADA, 

MIADA/DIADA: (3) PAPER COPIES FOR MEMBERS AND NON-MEMBERS IN ALL FIVE STATES MAY BE OBTAINED FOR FREE AT PARTICIPATING 

AUCTIONS ON AUCTION SALE DAY. MIDATLANTIC DEALER NEWS SENDS FREE COPIES FOR DISTRIBUTION TO DEALERS AT AN ANTICIPATED 

APPROXIMATELY: 19 WHOLESALE VEHICLE AUCTIONS IN PENNSYLVANIA, 11 IN NEW YORK, 2 IN NEW JERSEY, 2 IN MARYLAND. 

WOULD YOU LIKE TO RECEIVE A DIGITAL VERSION OF THE MIDATLANTIC DEALER 

NEWS MAGAZINE EARLY EACH MONTH? Email Shannon at Shannon@piada.org. 

Cover photo credit: Taina Sohlman / Shutterstock.com 

PA-MD-DE IADA'S 2015-2016 

OFFICERS AND DIRECTORS 

John DeFilippo, President 

DeFilippo Bros. Motorcars (PA)...........610.532.8771 

Tad Swift, Chairman 

Corry Auto Dealers Exchange (PA)......814.664.7721 

Tom Brandis, Treasurer 

Advantage Auto Sales & Credit (PA)....215.805.2034 

Clint Weaver, Secretary 

America's Auto Auction Harrisburg (PA)..717.697.2222 

Michael Brill, Vice President 

B & B Automotive (PA).......................215.781.1818 

Tom Hodges, Vice President 

Tom Hodges Auto Sales (MD).............301.373.2277 

Michael Mansour, Vice President 

Car Connection, Inc. (PA)...................724.658.1212 

Beth Melamed, Vice President 

Ticket to Ride Auto (PA).....................717.393.9133 

Fran Morelli, Vice President 

Fran Morelli Sales & Service (PA).......814.265.1330 

Lisa Cohowicz, Director 

North East Pennsylvania Auto Auction (PA)..570.207.2277 

James Cuce, Director 

Manheim Philadelphia Auto Auction (PA)..215.962.6742 

Jeff Dreier, Director 

Dreier Auto Sales (PA).......................570.675.5696 

Joe Eikenberg, Jr., Director 

Aero Motors, Inc. (MD)......................410.686.3444 

Gus Kurtz, Director 

Sports and Imports, Inc. (MD)............410.360.8600 

Dan Limongelli, Director 

Jo-Dan Motors (PA)............................570.829.4043 

Kevin Luring, Director 

Garden Spot Auto Auction (PA)...........717.738.7900 

Noah Melamed, Director 

Ticket to Ride Auto (PA).....................717.393.9113 

Kevin Novitsky, Director 

Village Auto Sales (PA)......................570.254.6463 

Chris Smiley, Director 

Mountville Motor Sales (PA)...............717.681.9610 

George Smouse, Director 

Smouse Trucks & Vans (PA)...............724.887.7777 

Steve Worley, Director 

Worley Motors (PA)............................717.732.2051 

Jay Zimmerman, Director 

Zimmerman’s Auto Sales (PA)............717.766.7656 

STAFF 

Reg Evans, Executive Director 

reg@piada.org............................. 717.238.9002 x28 

Arie Garcia, Director of Operations 

arie@piada.org.............................717.238.9002 x13 

Shannon Becker, Membership Director 

shannon@piada.org......................717.238.9002 x18 

Ping Goslawski, Finance Department 

ping@piada.org............................717.238.9002 x12 

Nicole Autry, Dealer Development 

nicole@piada.org......................... 717.238.9002 x26 

Gigi Kode, Messenger/Title Call Center..717.635.2595 

Peter Salinas, Special Contributing Writer 

Jerry Trone, Media Photographer 

To keep the MidAtlantic Dealer News on schedule, certain deadlines 

must be observed. All information is due at the Pennsylvania- 

Maryland-Delaware Independent Automobile Dealers Association 

(“IADA”) office in Harrisburg thirty days prior to the publication date 

of each issue. 

The MidAtlantic Dealer News is a publication of the IADA, 1501 

North Front Street, Harrisburg, PA 17102, in cooperation with our 

partners the NJIADA and NYIADA. Advertising rates available on 

request. If you have any questions please call the IADA office at 

717.238.9002. 

IADA was established in 1955, and chartered in 1959 under 

the Non-Profit Corporation Laws of the Commonwealth of 

Pennsylvania as PIADA and merged with Maryland and Delaware 

trade association in 2015. 

The statements and opinions expressed herein are those of the 

individual authors and do not necessarily represent the views of 

the MidAtlantic Dealer News, IADA, NJIADA, or NYIADA. Likewise, 

the appearance of advertisers, or their identification as members 

of IADA, NJIADA, or NYIADA, does not constitute an endorsement of 

the products or services featured. 

Editorial and advertising requests should be directed to the 

Editor: MidAtlantic Dealer News, IADA, 1501 North Front 

Street, Harrisburg, PA 17102. Telephone 717.238.9002, FAX 

717.238.3870 or e-mailed to Shannon@piada.org. 

Logos are respective trademarks of the IADA, NJIADA, NYIADA. 

Copyright © 2015-2016 by IADA. All Rights Reserved. 

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FROM THE PRESIDENT TO MIDATLANTIC DEALERS 

JOHN DEFILIPPO 

DeFilippo Bros. Motorcars 

2240 East Lincoln Hwy. 

Coatesville, PA 19320 

610.532.8771 

www.ujobucredit.com 

Our Board of Directors of PIADA- 

MDIADA-DEIADA met in March 

2016 in Harrisburg. We meet 

quarterly and at the MARIADA 

Annual Convention where we hold 

our annual President’s meeting 

(named before my time) and hold a 

Members vote to elect 1/3 of our 

Directors for a 3 year term. 

We have 22 Board members. They 

drive in from all over the place: 

western PA, southern Maryland, 

Scranton - Wilkes-Barre, Erie, New 

Castle, Mount Pleasant, Lancaster, Columbia, Baltimore and 

Hollywood and Pasadena Maryland, Quakertown, Philadelphia, 

Telford, Croydon, 

PIADA ANNUAL 

GOLD SPONSOR 

PIADA ANNUAL 

BRONZE SPONSORS 

WHAT WE ARE DOING FOR DEALERS LATELY 

By John DeFilippo 

Brockway, Avoca, 

Shavertown, Plains, 

Scott, Coatesville, 

Mechanicsburg, Enola, 

Ephrata, Corry, even 

Bunker Hill West Virginia. 

And soon enough, a 

Director from Delaware 

too. You get the idea. 

It is a full day event 

and we try to cover as 

much industry advocacy 

and benefits ground as 

possible, including with 

our lobbyist Bob Keaton. 

The Directors are 

dedicated to you, our 

Members and our 

Industry. We invited 

some Special Guests 

this time to talk about 

legislation in our States 

and to brainstorm about 

services, programs, 

benefits we can provide 

to our Members. Our Special Guests were Sal Enea, 

President of the New Jersey Independent Automobile Dealers 

Association, and Paula Frendel, Executive Director of both 

the New Jersey and the New York Independent Automobile 

Dealers Associations. What a great discussion we had! More 

perspectives and ideas, without it being too many people. You 

should contact our Staff office if you are a Member and want 

to see what our meetings are all about. Between meetings, 

we have monthly Executive Committee meetings to keep 

things rolling. 

Teamwork has been great for us. Together our five States 

created the MidAtlantic Independent Automobile Dealer 

Associations (MARIADA) Convention and our fifth one will 

be held back at the excellent venue of Loews Philadelphia 

Hotel on November 5-6. We are switching it up this year with 

keynote speaker Bill Clement, National Hockey League All- 

Star and 2-time Stanley Cup champion, formerly with the 

Philadelphia Flyers and who then became an NHL broadcaster 

and Olympics announcer and writer on leadership. Check out 

Bill on page 18. 

Pursuant to Teamwork, we provided 11 webinars this 

month (March Madness) and one live Agent education 

training class. Members, please read your emails 

announcing and inviting you to the April 2016 webinars 

(including one introductory webinar by sales training 

expert George Dans) and the live Agent training classes 

taught by the PIADA chapter’s Arie Garcia (also see page 

21). Suggest webinar topics and we will try to make them 

happen. 

By the way, you may see a bit of a change in this page in 

some of the upcoming months. We want to provide you, our 

readers, with perspectives from all of our Board members 

who have plenty of interesting things to say to you regarding 

our industry. 

Until next month, sell all you can! 

John 

6 | APRIL 2016 MIDATLANTIC DEALER NEWS

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EXECUTIVE DIRECTORS' MESSAGE 

This month, let’s check on 

some interesting legislative and 

regulatory developments in the 

MidAtlantic States. 

SUNDAY SALES BILL IN 

REG EVANS PENNSYLVANIA 

Executive Director There is a bill in the State 

PIADA, MDIADA, DEIADA Senate that would make Sunday 

www.piada.org, sales of vehicles permissible, 

www.mdiada.org, not mandatory, for dealers in 

www.deiada.org 

Pennsylvania. Members, you are 

invited to let us know your views about such a proposed bill. 

FIGHTING FOR FEES RELIEF 

We continue to seek relief for dealers from the increased 

Pennsylvania title and lien fees. We tried one avenue and 

are now working on another through and with assistance from 

our hired lobbyist. We will update members separately on 

this issue. You deserve a break from these fee increases. 

PERPETUAL IMPOUNDMENTS IN PENNSYLVANIA 

Vehicles impounded, notices not being sent out to lienholders 

or late sending, racking up high storage fees, not being 

allowed to view the collateral at the impound to decide whether 

to pay it and take it or to let it go. We are concerned about 

this issue in Pennsylvania. 

MARYLAND MVA BULLETIN ON TRADE-IN VALUES 

The Maryland MVA is issuing a Bulletin stating its concern that 

vehicle sale transactions are being submitted or processed by 

Maryland dealerships involving trade-in vehicles that exceed 

the trade-in value indicated in a national publication of used 

care values and documentation is not submitted to justify 

the exceeding value. 

The MVA advises that in accordance with Maryland regulations, 

if the trade-in allowance is more than the trade-in value in 

a national publication of used car values adopted for use by 

the MVA, then the dealer must provide documentation that 

satisfies the MVA that the higher trade-in value is justified. 

MARYLAND TAXES 

Maryland State House Bill 1152 would move Maryland from 

a three factor to a single sales factor state (SSF) for tax 

purposes. This would alter the formula used to apportion 

income to the State for corporations that work within 

and outside of Maryland by deemphasizing property and 

FROM SUNDAY SALES 

TO SAFETY RECALLS 

By Paula Frendel and Reg Evans 

payroll factors in tax assessment. 

Reportedly, 15 States including 

Pennsylvania, New Jersey, and New 

York already have adopted this 

SSF tax approach. SSF is being 

promoted as helping Maryland 

to attract and retain businesses, 

jobs, and capital investment. This 

may positively affect Maryland 

dealers that do business across 

the State borderline. 

PAULA FRENDEL 

Executive Director 

NYIADA and NJIADA 

www.newyorkiada.org 

www.newjerseyiada.org 

DELAWARE 

Delaware House Bill 233 was signed into law to delay 

implementation from January 30, 2016 to April 1, 2016 

regarding the new procedures for failure to resolve motor 

vehicle charges and suspension, nonrenewal, or suspension 

of driving privileges. 

NEW JERSEY GPS BILL 

The New Jersey bill to impose interest rate limits on a dealer 

that places a GPS on vehicle collateral for an installment loan 

remains under consideration in the State Assembly. This bill 

would hurt consumers by making repossession the primary 

means of dealing with late payments or nonpayment on a 

vehicle installment loan. 

PROPOSED SAFETY RECALL REGULATIONS IN NEW YORK CITY 

The New York City Department of Consumer Affairs vehicle 

safety recall issue has been postponed AGAIN, this time until 

April 22, 2016. NYIADA and its fellow State IADAs are hoping 

that NYC DCA will be following the Federal regulations instead 

of imposing local NYC DCA safety recall requirements on our 

already heavily regulated industry. 

THANK YOU FOR YOUR CALLS TO LEGISLATORS 

Thank you again to our Members for the grass roots telephone 

calls you made to notify the Pennsylvania General Assembly 

that the proposal to tax trade-in vehicles was a bad idea that 

would hurt our dealership businesses. 

SUPPORT YOUR ASSOCIATION AND STATE POLITICAL 

ACTION COMMITTEES 

We need your support. Members, please contribute to your 

PAC. Nonmembers, please join your State Association. We 

cannot defend and advocate for you effectively without your 

support. 

Have a Great Sales Month! 


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DEALER BEST PRACTICES IN RESPONSE 

TO EMISSIONS FRAUD LAWSUITS FILED BY 

NJ AG AND OTHERS VS. VOLKSWAGEN - 

IMPLICATIONS FOR THE SALE OF 

ANY USED VEHICLE 

By Anthony Bush, Esq. and Grace S. Power, Esq. of Eckert Seamans Cherin & Mellott, LLC 

Anthony Bush is a Member 

in Eckert Seamans’ 

Princeton Office with over 

two decades of experience 

with automotive issues. He 

counsels a wide spectrum 

of clients including 

automobile dealerships, 

operators of wholesale 

motor vehicle auctions, 

auto parts distributors, 

finance companies, and 

auto body repair facilities. 

Tony and Eckert Seamans 

have expertise representing 

dealers in consumer and 

corporate litigation, land 

use matters, business 

counseling, employment 

matters, franchise 

disputes, before the New 

Jersey Motor Vehicle 

Commission and New 

Jersey Department of Law 

and Public Safety, Division 

of Consumer Affairs, and in 

legislative and regulatory 

issues affecting the 

automotive industry. 

Grace Strom Power is an 

Associate in the Princeton 

Office and has over 10 

years of government 

affairs experience in both 

the public and private 

sectors, advising and 

representing clients before 

the New Jersey State 

Legislature, Office of the 

Governor, state and local 

agencies, commissions and 

regulatory authorities. 

On February 5, 2016, New Jersey Acting Attorney General John J. Hoffman filed suit against 

VW and its subsidiaries Audi and Porsche for carrying out alleged fraud against consumers by 

using software in millions of diesel vehicles to circumvent federal emission tests allowing it to 

increase sales by improperly touting environmentally friendly cars. The suit seeks maximum 

penalties against Volkswagen for alleged violations of the New Jersey Air Pollution Control Act and 

Consumer Fraud Act, which allows for treble damages, attorney’s fees and direct restitution to 

consumers that have been materially 

harmed by the company’s misconduct. 

The suit alleges approximately 17,400 

Volkswagen vehicles equipped with 

the defective equipment are registered 

in this state. New Jersey is the second 

state in the country following New 

Mexico, in suing Volkswagen over the 

same alleged emissions fraud. 

Volkswagen submitted recall 

plans that were initially rejected 

by the federal government as not 

adequately addressing overall impacts 

on vehicle performance emissions 

and safety. Discussions are ongoing 

between Volkswagen and the federal 

government. 

Photo credit: josefkubes / Shutterstock.com 

DEALERS OBLIGATIONS 

In the midst of these well-publicized emissions testing problems and lawsuits filed by different 

states, countries, and consumers against the manufacturers, dealers increasingly have obligations 

when selling any used motor vehicle with an open recall and/or when a recall has not yet been 

issued but is widely expected. The following New Jersey and federal proposed and existing laws 

and regulations should be considered. 

• Federal law prohibits the sale of new vehicles with open recalls but neither federal nor New 

Jersey law specifically bar the sale of used vehicles with open recalls. 

• New Jersey’s Consumer Fraud Act and the Federal Trade Commission Act indirectly address 

the sale of used vehicles with open recalls. 

• According to some estimates, one in six vehicles has an open recall and only about 70% of 

vehicle recalls are ever closed or fixed. 

• Not all recalls involve safety concerns. Some recalls are non-safety related. For example, 

non-functioning air conditioners and radios, ordinary wear of equipment that has to be 

inspected, maintained, and replaced periodically. Such equipment includes shock absorbers, 

batteries, brake pads and shoes, and exhaust systems. 

• In some cases, especially for non-safety related recalls, the parts may be back ordered or 

hard to obtain for weeks or months. A blanket rule that would bar sales of any vehicles with 

an open recall would negatively, and perhaps unfairly, impact a dealer’s costs and inventory, 

yet may not make the public any safer in many instances. 

• The Federal Trade Commission has brought recent enforcement actions against an American 

Manufacturer and two dealer groups concerning open recalls. The Manufacturer and the 


dealer groups advertised that many of the vehicles had 

undergone a comprehensive inspection process, often as 

part of a certified pre-owned program. The FTC alleged 

in separate complaints that the manufacturer and the 

dealer groups violated the Federal Trade Commission Act 

by touting those inspection processes but not informing 

consumers about the existence of unrepaired safety 

recalls. The companies denied wrongdoing and were not 

assessed fines but are now prohibited from claiming their 

vehicles have under gone a rigorous inspection unless 

they are free of unrepaired safety recalls. If a safety 

recall is not repaired, those companies against whom 

the actions were brought must disclose the existence 

of any safety related recalls in close proximately to any 

statement about the inspection process. 

• A Recall bill was reintroduced in the New Jersey 

State Legislature in January 2016 for the second 

consecutive legislative session that would require 

dealerships to check the National Highway Traffic 

Safety Administration’s (“NHTSA”) website and inform 

a potential buyer of any outstanding recalls. Under the 

bill, dealers would not be liable for any errors contained 

on the NHTSA website. The bill makes clear that: (1) 

there is a “irrebutable presumption” that the dealer 

had no knowledge of a recall if the information was not 

on the NHTSA website at the time of the sale; and (2) 

dealers would not be required to fix open recalls prior 

to selling a vehicle (which often would not be practical). 

The bill would not apply to wholesale transactions or 

sales between owners and operators of junk businesses 

or motor vehicle junkyards or any person involved in 

dismantling, destroying or recycling motor vehicles. 

Failure to disclose an outstanding recall under the bill 

would constitute a violation of the New Jersey Consumer 

Fraud Act subjecting dealers to actions brought by the 

Attorney General’s office for fines, attorney’s fees and 

costs of collection as well as cease and desist orders or 

civil suits by retail consumers for treble damages (three 

times compensatory damages) and attorney’s fees. 

• New Jersey’s existing Consumer Fraud Act requires 

dealers to refrain from affirmative misstatements or 

omissions regardless of intent on selling a motor vehicle. 

For example, not mentioning that the vehicle is one of 

the effected diesel models involved in the Volkswagen 

emission scandal or stating a vehicle’s airbag doesn’t 

need to be replaced could create legal exposure if it were 

found to be untrue. 

• The New Jersey advertising regulations that correspond 

to the Consumer Fraud Act also require dealers to 

disclose substantial body or repair work performed on 

a motor vehicle that they knew or should have known 

about that cost $1,000.00. Depending upon the nature 

of the recall, the cost could exceed the $1,000.00 limit. 

Failure to make necessary disclosures under the Act 

could subject dealers to compensatory damages, treble 

damages and attorney’s fees. 

BEST PRACTICES 

Dealers should disclose, for example, if a used Volkswagen 

diesel vehicle that they are offering for sale is one of the 

impacted models even if a recall has not yet been issued 

for the vehicle. In terms of existing recalls for other vehicles 

that are not the subject of the NJ Attorney General’s suit, 

dealers should make full disclosure about known recalls 

especially if representing that the vehicle has undergone 

a comprehensive inspection process prior to sale. Even 

if there is no representation that the vehicle underwent a 

comprehensive inspection, best practices are to make the 

disclosures. The transparency is what consumers expect 

and it can potentially mitigate liability for dealers. From a 

practical standpoint, dealers should simply check the NHSTA 

website. They should inform customers if a recall exists, if 

it is being fixed or not, and have their customers sign a copy 

of a printout from the website acknowledging that they have 

been provided the information. 3 

Photo credit: villorejo / Shutterstock.com 

MIDATLANTIC DEALER NEWS APRIL 2016 | 11

WITH STATE IADAS’ INPUT PROVIDES 

COMMENTS TO NHTSA ON ALTERNATIVE METHODS 

OF SAFETY RECALL NOTIFICATION 

By Reg Evans 

With input from PIADA-MDIADA-DEIADA and other State 

Independent Automobile Dealer Associations (“IADAs”), 

the National Independent Automobile Dealers Association 

(“NIADA”) provided comments to the National Highway 

Transportation Safety Administration (“NHTSA”) on alternative 

means of safety recall notification besides or in addition to the 

presently used first class mail notification. The suggestions 

from the NIADA to NHTSA involve various means of electronic 

notification to owners of vehicles that have a discovered safety 

defect or otherwise do not comply with an applicable motor 

vehicle safety standard. 

The NIADA letter dated March 10, 2016 to NHTSA included 

the following statements: 

“With the ever-increasing number of vehicles subject to 

open recall, NIADA fully supports sound public policy that 

will lead to a 100% recall completion rate. Integral to that 

discussion is ensuring owners of vehicles are notified 

when their vehicles are subject to a recall. Although 

the traditional method of notification via first class mail 

has had some practical usefulness in the past, and will 

continue to moving forward, new technologies exist that 

should be considered for providing this notice. 

However, notification need not be a “one-sized fits all 

approach.” Alternative means of notification that utilizes 

available technology such as email, texting, and other 

Internet and cellular media should be fully explored. 

NIADA also encourages NHTSA to explore the use of a 

vehicle’s telematics systems, such as On-Star and Blue 

Link, where installed, to notify owners of recalls. NIADA 

also encourages NHTSA, state motor vehicle registrars, 

and manufacturers to explore ways to notify owners at the 

time of vehicle registration of an open recall. 

NIADA believes that NHTSA’s development of the VIN 

specific recall search tool on safercar.gov has been useful 

in improving recall completion rates. Consumers, dealers, 

auctions, service centers, and others can use the tool to 

search the recall status of a particular vehicle and have it 

fixed assuming parts are available. While this search tool 

is useful, it is not efficient for those in the wholesale and 

retail automobile markets in need of and wanting to check 

multiple VINs at any given time. NHTSA’s development 

of an engine that would allow these entities to search 

a batch of VINs in a single instance would provide more 

timely information in a much more cost effective manner 

assisting in the recall repair rates.” 

PIADA-MDIADA-DEIADA, NJIADA, and NYIADA continue to 

advocate for our dealership and vehicle auction industry at 

the federal and State legislative levels to avoid duplicative and 

excessive regulatory burden on our member dealerships. 3 


PIADA ANNUAL 

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“GOTTA GET TO ERIE” 


DIMINISHED VALUE CALCULATOR... 

BACKED WITH A CHECK... 

HOLY SCHMOZOLY 

By Robert Hollenshead 

Robert Hollenshead 

is a wholesale automobile 

dealer and remarketing 

veteran of more than four 

decades and the 

Founder/CEO of 

R. Hollenshead Auto Sales 

Inc., Accutrade-Trade LLC 

(Canadian guaranteed 

pricing and lead 

generation), MADE 

Logistics LLC, DimValCal 

(guaranteed diminished 

value calculation 

algorithm), North American 

Diminished Value 

Association LLC, and 

Headstart VMS LLC. R. 

Hollenshead Auto Sales, 

Inc., Palm Beach, FL, and 

Manheim, PA, is the 

largest independent 

wholesale vehicle 

dealership in the World. 

R. Hollenshead companies 

are dedicated to 

developing solutions for 

the North American 

wholesale automobile 

industry. 

Contact Information: 

www.rhollenshead 

autosales.com 

Dealer Inquiries: 

Phone: 888.223.1172 

Fax: 888.593.6089 

Email: Sales@rhasales.com 

www.buybooktech.com 

Phone: 866.55-BUYIT 

(555.8948) 

Fax: 888.824.4385 

Email: 

Info@BuyBookTech.com 

I’ve been screaming about diminished value for decades. A hit on a history report, correct or 

not, creates an undeniable diminution in value that only a newly landed Martian would be silly 

enough to deny. Twenty five years ago when vehicle history reports first started surfacing, 

the average price of a new car was $30,000 or less. Today it’s double. Whoever thought an 

Escalade would be sneaking up on $100,000? A small insurance claim intrinsically creates 

a desirability issue that crushes the value. The proverbial “shopping cart” accident can make 

that Escalade’s ACV plummet. Who will bid and why they won’t changes the “desirability index” 

dramatically and therefore the value simply is not the same...or close. 

Over the decades (holy smokes time flies) we built the tool that universally solves the issue 

of quantifying the valuation, the dollar amount, on the VIN specific unit. Thank any God we 

did. Because now that the buzz on the diminished value topic is intensifying we are ready 

willing and able to bring the Diminished Value Calculator (it will be using dimvalcal.com as 

the URL), DVC as the acronym, to the general market. 

Our goal is to make collecting the diminished value an open and shut process. The impact 

on the specific 17 digit VIN is one that falls outside a layman’s capacity. The DimValCal, 

our diminished value calculator, creates a guaranteed value, a wreck report, to be used in 

getting your wreck check. Individuals, dealers, dealer loaners that always end up with a hit 

on FAX, lease companies, captives, rental car companies all have a clear path to getting 

paid Real time. The DVC takes all the specific VIN explosion details that are obvious like 

any recognized value guide might, but it also takes into consideration thousands of details 

and market driven nuance that aren’t so obvious, namely, the multitude of things that we’ve 

experienced qualifying, quantifying, pricing, actually buying, and actually selling, millions of 

vehicles over the decades. 

The DVC patent pending algorithm fundamentally changes the accident victim’s view of the 

heretofore dilemma… how they go about collecting what the law says they have coming to 

them but nobody has figured out, the diminution in value they experienced when their vehicle 

had an accident in a clear, empirical, accessible to anyone, market driven guarantee. 

In addition to being 100% transparent, DVC enables the user to transact. The fact that a 

pre and post-incident guarantee to purchase the specific unit in question sets it apart from 

the “opine” of any other entity/system/book/company. While capturing the granular detail 

necessary to make a purchase offer, DVC inherently creates a desirability index that considers 

how a unit is viewed by traders in the liquid wholesale market from coast to coast in the US 

and Canada. How an accident impacts a white 2014 Mercedes S550 compared to a blue 

one with the exact same characteristics is dramatic in reality. You ask how or why? I say a 

lot and because. 

The because is in the market driven nuance which makes up the science baked into the 

algorithm. Separate from geographic variance, supply, exportability, depth of the hit, location 

of the hit, contiguous panel effected in the hit, miles, color, smell, DVC includes a very unique 

way it looks at the depth of the predictive buyer base on the specific unit. The DVC process 

also captures granular detail that produces a “pedigree “of the VIN and the case. All vehicle 

valuation and case documentation are housed on Headstart DVMS, a robust cloud based 

workflow brain, a management process, where permanent record of each case can be accessed 

by subscribing lawyers, dealers or individuals. Headstart DVMS stands for Diminished Value 

Management System. 

Again, our goal is to make collecting the diminished value an open and shut process. The 

impact on the specific 17 digit VIN is one that falls outside a layman’s capacity. The DimValCal, 

our diminished value calculator, creates a guaranteed value, a wreck report, to be used in 

getting your wreck check. Individuals, dealers, dealer loaners that always end up with a hit on 

FAX, lease companies, captives, rental car companies all have a clear path to getting paid. 3 


SHORT DRIVE 

GREAT DEALS 

Manheim New York is one of the most easily accessible auctions around. 

MANHEIM 

NEW YORK 

On the crossroads of the Northeast in Newburgh, Manheim 

New York is easily accessible by plane, train and automobile. 

 

 

 

 

 

 

2000 Dealer Drive 

Newburgh,NY 12550 

www.manheim.com

NEW 5 YEAR AGENT CONTRACT 

REQUIRED BY PENNDOT 

By Arie Garcia, Director of Operations, PIADA-MDIADA-DEIADA 

Please be advised that PennDOT has replaced the current 

3 year agent contract with a new 5 year agent contract for 

processing title work in Pennsylvania. There are some changes 

that you should be prepared for and aware of: 

1. You will need to resubmit requirements (such as criminal 

background checks, reference letters, site photos) for 

the new 5 year contract. 

2. We recommend that you begin to you work on your 

requirements at least 6 months before your existing 

contract expires. 

3. You will need a storage area that is either (i) a secured 

room with no windows and that has a solid door with a 

dead bolt lock, OR (ii) instead of a separate secure room 

you can have a safe dead-bolted to the floor inside your 

sales office. This storage area should be large enough 

to hold your PennDOT inventory (such as temp tags, 

unused MV1 and MV4ST forms, SA2 paper, registration 

stickers, and all completed paperwork not yet submitted 

for processing). 

4. You will also be required to have a shredder on site. 

5. A Fraud Hotline poster is required to be posted at your 

dealership. You can order this poster from PIADA at 

717.238.9002. 

6. You must also have a current Issuing Agent Training 

Certificate to include with your requirements. (Please 

keep the original and submit a copy of the Training 

Certificate. You are required to attend an Agent Training 

class every two years. See page ___ for classes 

provided in 2016 by PIADA. 

If you have questions or need assistance with your new 

agent contract, please contact Arie Garcia at 717.238.9002 

ext. 13. 3 


PENNSYLVANIA • NEW YORK • NEW JERSEY • MARYLAND • DELAWARE 

MARIADA 

2016 

MID-ATLANTIC REGIONAL INDEPENDENT 

AUTOMOBILE DEALER ASSOCIATION 

SATURDAY AND SUNDAY, NOVEMBER 5-6, 2016 

LOEWS HOTEL IN DOWNTOWN PHILADELPHIA, PA 

MARIADA 2016 CONFERENCE 

WHO SHOULD ATTEND? 

Owners - General Managers – Sales Managers - F&I Managers – Sales People – Title Clerks – 

Office Managers 

TM 

WHY YOU NEED TO ATTEND… 

Only Regional IADA in the Nation 

New Line-up of Speakers! 

The Top Names in the Industry on Sales 

Training, Closing Deals, National Industry 

Issues, and More! 

Tips to Increase Sales, Improve your 

Dealership Operations and Employee and 

Customer Relations 

Exhibit Hall – Meet with Top Industry 

Vendors and Service Providers 

Network with Fellow Dealers and Industry 

Leaders 

It’s FREE to Attend for Members! 

You Have Nothing to Lose and 

Everything to Gain! 

CONTACT PIADA – MDIADA – DEIADA AT 717.238.9002 FOR MORE DETAILS! 

BILL CLEMENT – Keynote Speaker 

Two – Time Stanley Cup Champion 

with the Philadelphia Flyers 

Critically Acclaimed Author, 

Speaker, Actor, Entrepreneur and 

Broadcaster 

Author of Everyday Leadership: 

Crossing Gorges on Tightropes 

to Success with foreword by 

Wayne Gretzky 

h

ROBERT C. KEATON 

Bob is a Senior Associate 

at Bigley and Blikle, 

LLC. Bob has worked in 

government affairs as a 

corporate lobbyist with 

Sunoco, Inc. and as a 

Policy Director for former 

Governor Tom Ridge. Most 

recently, he worked as the 

Legislative Director for 

NFIB. 

POLITICAL CAMPAIGNS 

IMPACT LEGISLATION AND POLICY 

By Robert C. Keaton, Senior Associate, Bigley and Blikle, LLC 

Every two years in Pennsylvania, half the State Senate and all of the State House are up for 

election, and for 2016, it is no different. All of us know that it is the season because we start 

to get the endless fliers in our mailboxes and TV ads promising us these candidates will make 

us safer and fix our problems. 

Once the general election is behind us and the candidate who knocked on your door is now 

holding office, we hope that the failure of the state of Pennsylvania to pass a budget will be 

something of the past. 

Many people believe that a lot of this problem comes from a process called gerrymandering. 

In 1812, Governor Eldridge Gerry signed a bill that redistricted Massachusetts to benefit his 

Democratic-Republican Party. The word “gerrymander” was used by the Boston Gazette in reaction 

to this redrawing of Massachusetts’ state Senate election districts under Governor Gerry. 

The process is actually called redistricting, a process of drawing legislative districts every 10 

years to more accurately reflect population changes. In Pennsylvania, the Legislature is given 

authority in creating a redistricting plan after each U.S. Census – for both state legislative seats 

and federal Congressional seats. 

Often times this plan favors incumbents and the majority party that drafts the legislative plan. 

As a result, most legislative districts are effectively non-competitive between the two political 

parties. In those districts the election that really counts is the primary election to determine the 

candidate of whichever party controls that district. 

Primary elections have lower voter turnout than general elections. So the most extreme and 

passionate elements of each party have a disproportionate impact on primary elections. That's 

why both political parties can be dominated by some of the most extreme and uncompromising 

members. 

As a side comment, this argument has been made for decades in Pennsylvania that gerrymandering 

causes gridlock. In 1986 the Republicans had control and set the legislative lines 

for State House and Senate districts and then turned around and lost control of the House. 

Many seats were held by Democrats in heavily concentrated Republican areas. 

What does all of this mean to the legislative process? Everything. Why? Getting elected is 

the only way to hold office and write laws. As long as officeholders need to sway the voters on 

Election Day back home, it will be harder and harder to find consensus on issues like a budget, 

pension reform or liquor privatization. 

Is that good or bad? Like most things in life that depends where you are sitting in the stands 

or playing in the game. Like any game, you play by the rules and accept victory or defeat, regardless 

of whether the officials need glasses or not. 3 

ATTENTION: Official Inspection Stations, Quality Assurance Officers, and Pennsylvania State Police 

BI16-02 Vehicle Inspection Division Bulletin February 2016 

ANNOUNCEMENT: ELIMINATION OF REGISTRATION STICKERS 

Effective December 31, 2016, PennDOT will no longer issue Vehicle Registration Stickers. Act 89, signed into law in November 

2013, provided for the elimination of Vehicle Registration Stickers. Vehicle Registration Stickers will no longer be required 

to be displayed on the license plate. 

Vehicle owners are still required to maintain a valid current vehicle registration card for presentation to a safety inspection 

station for purpose of the safety inspection. 

If you have any questions, please contact the Vehicle Inspection Division at (717) 787-2895. 


AMERICA’S AUTO AUCTION HARRISBURG HOSTED 

FIRST LIVE AGENT SEMINAR OF 2016 

By Reg Evans 

Those dealers who needed their 2-year Agent Training advanced class required by PennDOT attended our first live class of 

the year at America’s Auto Auction Harrisburg on Monday, March 20, 2016. 

Agent Trainer Arie Garcia - who also is Director of Operations at PIADA-MDIADA-DEIADA - presented the PennDOT agent education 

class to a packed house. America’s Auto Auction Harrisburg provided everyone with a comfortable class atmosphere 

and delicious hot food. The class was live, efficient, informative, and on-time at four hours and not a minute more. 

Many thanks to GM Lynn Weaver, AGM and PIADA-MDIADA-DEIA- 

DA Director Clint Weaver, and everyone at America’s Auto Auction 

Harrisburg for the hospitality. 

If you need to get your training to meet the 2-year requirement, 

see the Agent classes list on page 23. 3 

䘀䰀伀伀刀倀䰀䄀一 

䜀甀愀爀愀渀琀攀攀 

䘀䰀伀伀刀倀䰀䄀一 

䘀漀爀洀漀爀攀椀渀昀漀爀洀愀琀椀漀渀挀漀渀琀愀挀琀㨀 

⠀ 㠀 ⤀ 㠀㜀アパートⴀ㈀㤀㜀 

愀甀琀漀甀猀攀 ⸀ 挀漀洀 


Alan Mosher is a car 

guy. His first job ever 

was detailing cars at a 

dealership when he was 

in high school. He began 

selling cars in 1975, 

and has been in the car 

business in one form or 

another for most of the 

40 years since. Half of 

that time he has been 

in the BHPH business. 

He has operated BHPH 

dealerships for 8 years 

and been a trainer and 

consultant in the business 

for 11. He can be 

reached via email at al@ 

alanmosher.com. 

YOUR MOST IMPORTANT COLLECTION TOOL 

By Al Mosher 

I often begin collections training classes by asking students what the most important 

collection tool is at their dealerships. I get answers ranging from the telephone to the tow 

truck, but I have never had a student give me the correct answer. 

The correct answer is your loan application. If you want to successfully collect the loans 

you make to your buy-here, pay-here customers, it starts way before they ever make their 

first payment. It starts with the application. Collecting enough of the right information in the 

beginning will make collecting your money easier throughout the term of the loan. 

There are two keys to taking a proper application contained in that last sentence: 

First, collect enough information. I have seen dealers who collect just the typical ‘5-line’ 

application of name, address, phone number and social security number and that’s it. How 

can you possibly make a lending decision on that limited information much less effectively 

collect that account? 

You need to collect sufficient information so that you feel comfortable that you can make 

contact with that customer no matter what. That should include at least 3 years of residence 

and employment information and as many references as possible. The more points of possible 

contact you obtain, the more likely it is that one of them will know how to put you in touch 

with your customer. 

You also need to make sure your customer can afford to make his or her loan payment 

when it comes due. In order to determine this, you need as much information as you can get 

about the customer’s monthly budget. When you add up his rent, utilities, and other monthly 

expenses then subtract that from his net income, there should be enough left over to make 

your payment or you are setting your customer up to fail and creating a future collections 

problem. 

The second key is to collect the right information. I regularly see dealers who allow 

their prospective customers to complete their own applications. This is a sure-fire way to 

get the wrong information. Customers who complete their own applications will give you 

the information that makes them look best and leave out the information that might make 

them look like a bad risk. They tend to leave off those short time residences and jobs and 

expand residence and job time and income. They aren’t likely to tell you about a previous 

repossession or bankruptcy. In order to make an intelligent lending decision and then to 

successfully collect that account, you need all the information you can possibly get. Taking 

the application yourself gives you the opportunity to probe for missing information and dig 

for those nuggets the customer might be trying to hide. 

You also need to verify that information. Collecting written proof of residence and income 

helps you make sure you have the right information. But they can be misleading, as well. Utility 

bills and paycheck stubs are a snapshot in time. They were true when they were printed but 

they may not be true today. You need to call landlords and employers to verify the information 

on those documents. I have never forgotten a lesson I learned over 15 years ago as a new 

manager at a BHPH store. I was calling an employer to verify employment. He hesitated when 

answering my question on whether the customer was still employed there. I asked if there 

was any problem and he told me he was laying my potential customer off the next day. If I 

had accepted the paycheck stub as the whole truth, I would have had a customer with a new 

car who became unemployed almost instantly. 

The right information should also include any information on previous vehicles and how 

they were purchased including any repossessions. An understanding on how your customers 

have handled previous vehicle purchases can give you valuable insight on how they might 

handle their obligation to you. 

I talked above about collecting references above, but just collecting names and phone 

numbers alone does not make up the total right information. You need to learn how the 

customer knows each of their references. That will help you to determine each one’s value as 

a resource for making contact with the customer in any given situation. You should also verify 

that each reference does, in fact, know and have good things to say about your applicant. 

Collecting names and phone numbers does you no good if you don’t talk to them until you 

need to make contact with your customer. That is a bad time to find out all the numbers are 

no good or that the reference hasn’t spoken to your customer in years. 

Collecting the money due to you and your dealership is the most critical part of any BHPH 

dealership. Cash flow is the life blood of your business. Don’t start out in a hole by not getting 

all the information you can when you begin your relationship with each customer. Taking a 

thorough, complete and verified application in the beginning can make collecting that account 

much easier throughout the life of that loan and save you from the pain and heartache of 

repossession at the end. 3 


◊ Garage and Automobile Liability 

◊ Dealer Physical Damage 

◊ Tow Truck on the Same Policy 

◊ Quick Quote Turnaround 

◊ Low Monthly Payments 

607 Corporate Drive, West 

Langhorne, PA 19047 

215-860-6510 Tel. 

www.KramerInsuranceCenter.com 

BelAir_4.22x5.65_ad.pdf 1 12/11/13 10:51 AM 

2016 PIADA ISSUING AGENT 

TRAINING COURSES 

Due to previous lack of attendance in Basic Training Classes 

PIADA has only scheduled Advanced Training for 2016. 

However, if you are interested in a Basic Class please contact 

PIADA at 717.238.9002. Classes subject to cancellation/ 

change at the sole discretion of PIADA. 

PIADA Members: $50.00 per person 

Non-Members: $125.00 per person 

PREPAYMENT REQUIRED. NO WALK-INS. 

PRE-REGISTERED ATTENDEES ONLY. 

Registration: 8-8:30am • Courses begin at 8:30am 

ADVANCED TRAINING CLASS DATES 

April 11................................................. ADESA Pittsburgh 

Sponsored by Annual Gold Sponsor ProGuard Warranty 

May 16... Northeast Pennsylvania (Arcaro & Genell’s Restaurant) 


June 20........................................... Manheim Philadelphia 

Sponsored by Annual Gold Sponsor ProGuard Warranty & 

Annual Bronze Sponsor NextGear Capital & Autotrader 

August 8........................ Central Pennsylvania Auto Auction 


Annual Bronze Sponsor MyDealerOnline 

September 12................................................ Garden Spot 


Annual Bronze Sponsor MyDealerOnline 

September 26....................................................Corry ADE 


Annual Bronze Sponsor NextGear Capital & Autotrader 

October 24................................................. ADESA Mercer 


C 

M 

Y 

CM 

MY 

CY 

CMY 

K 

COURSE REGISTRATION 

Company_____________________________________________________ 

Contact______________________________________________________ 

PIADA Member? Yes No DIN # ______________________________ 

E-mail Address ________________________________________________ 

Business Address_______________________________________________ 

City_______________________________ State_______Zip Code________ 

Phone (____) ___________________Fax (____)______________________ 

Number Attending ______ 

NAMES OF ATTENDEES: 

___________________________________________________________ 

___________________________________________________________ 

___________________________________________________________ 

___________________________________________________________ 

Card Type: VISA MasterCard Discover American Express 

Name on Card:_________________________________________________ 

Card Number __________________________________________________ 

Security Code ___________ Exp. Date______________________________ 

Signature______________________________________________________ 

Fax (We’d prefer fax) to 717.238.3870 

Or Mail to: PIADA, 1501 North Front Street, Harrisburg, PA 17102 

ON-SITE CLASSES AT YOUR DEALERSHIP CAN 

BE REQUESTED!!! CALL PIADA FOR DETAILS. 


AUCTIONDIRECTORY 

PENNSYLVANIA 

ABC - LANCASTER AA 

1040 Commercial Ave., P.O. Box 406 

East Petersburg, PA 17520 

Phone: 717.569.5220 / Fax: 717.569.3109 

Greg Gehman, Owner/Operator; Ed Fazio, GM 

Weekly Sales Wed. 9:00 A.M. 

Office: M-F 8:30-5:00 

www.abclancaster.net 

ADESA MERCER 

758 Franklin Road, Mercer, PA 16137 

Phone: 724.662.4500 / Fax: 724.662.2840 

Barry Fabricant, GM; Sharon White, Fleet Manager 

Friday 9:00 A.M. 

Office: M-F 8-5:00 

www.adesa.com 

ADESA PA 

I-83 Ex. 28 (Old Ex. 12), 

30 Industrial Rd., York, PA 17406 

Phone: 717.266.6611 / Fax: 717.266.7650 

George Johnson, GM 

Angel Alicea, Fleet Manager 

Igor Skinder, Sales Manager 

Wednesday 8:20 A.M. 

Powersports Sale, 4th Wed. of every month 

www.adesa.com 

ADESA PITTSBURGH 

378 Hunker Waltz Mill Rd., New Stanton, PA 15672 

Phone: 724.925.4700 / Fax: 724.925.4701 

Bernie Nemec, Dealer Contact 

Tuesday 9:00 A.M. 

www.pittautoauction.com 

AMERICA'S AA - HARRISBURG 

1100 S. York St., Mechanicsburg, PA 17055 

Phone: 717.697.2222 / Fax: 717.697.2234 

Lynn Weaver, GM; Clint Weaver, AGM; John 

Congdon, Operations Manager; Sharon Guise, 

Office Manager; Tom Wesner, Dealer Sales; Tammy 

Leppo, Dealer Sales; Randy Donovan, Dealer 

Sales; Glenn Gochenaur, National Accounts 

Every Thursday 8:45 A.M. 

www.harrisburgautoauction.com 

AMERICA’S AA - PITTSBURGH 

55 E. Buffalo Church Rd. 

Washington, PA 15301 

Phone: 724.225.1777 / Fax: 724.225.7223 

Lou Craig - GM; Skip Thomas - GM 

Thursday 12:30 P.M. 

www.americasautoauction.com 

BLOOMSBURG AUTO AUCTION 

25 Ridge Road, Bloomsburg, PA 17815 

Phone: 570.784.2306 

Wednesday 1:00 P.M. 

John and Heather Vance, Owner/Operators 

www.bloomaa.com 

CENTRAL PENNSYLVANIA AA 

Exit 178 of I-80, Lock Haven, PA 17745 

Phone: 800.248.8026 / Fax: 570.726.7841 

Grant Miller, Owner; Doug Miller, V.P./COO 

Tim Keohane, GM 

Thursday 10:00 A.M. 

Office: MTF 8-5:30 W-Th 8-6:00 

www.cpaautoauction.com 

CORRY AUTO DEALERS EXCHANGE 

P.O. Box 317, Route 6, Corry, PA 16407 

Phone: 814.664.7721 / Fax: 814.664.7724 

Tad Swift, Auction Manager 

Jeri Elmquist, Dealer Contact 


www.corryade.com 

GARDEN SPOT AUTO AUCTION 

Robert Rd. & Apple St., Ephrata, PA 17522 

Phone: 717.738.7900 / Fax: 717.738.7930 

Kevin Luring, Marketing Manager; Kristi Kohl, GM 

Omar Landis, Owner 


www.gardenspotautoauction.com 

GREATER ERIE AUTO AUCTION 

7700 Avonia Road, (Exit 16 of I-90 & PA Route 98) 

Fairview, PA 16415-0916 

Phone: 814.474.3900 / 877.474.GEAA 

Fax: 814.474.4969 

Todd Briggs, Co-Owner/GM; Chuck Williams, 

Dealer Contact/Sales Manager; Todd Briggs, Fleet 

Lease Repo Contact; Scott Porter, Transportation 

Re-Con Manager; Chrissy Briggs, Marketing Manager 

Tuesday 2:30 P.M. 

www.greater-erie.com 

MANHEIM KEYSTONE PENNSYLVANIA 

488 Firehouse Road, Grantville PA 17028 

Phone: 717.469.7900 / Fax: 717.469.2842 

Sal Cuomo, Manager 

Tamra Habbershon, Dealer Services Manager 

Shirley Kennedy, Office Manager 

Every Monday 11:00 A.M. 

www.manheim.com 

MANHEIM PENNSYLVANIA 

1190 Lancaster Rd., Manheim, PA 17545 

Phone: 717.665.3571 / Fax: 717.665.9265 

Joey Hughes, VPGM; Tim Doyle, AGM; Kevin Gantz, 

AGM; Amy Taitano, AGM; Sal Cuomo, AGM; Randy 

Derr, AGM; Darren Teague, Auction Manager 

Exotic Highline Sales every other Thurs.- 9:00 A.M. 

Every Friday Sale 8:30 A.M. 


MANHEIM PHILADELPHIA AA 

2280 Bethlehem Pike, Hatfield, PA 19440 

Phone: 215.822.1935 / Fax: 215.822.8140 

Charles Pollina, GM; Scott Mulligan, AGM 

Gregg Pachik, Dealer Services Manager 

Troy Moyer, Commercial Accounts Manager 


TRA Sale - Tuesday 1:00 P.M. 

Office: M-Th 8:30-5 F 8:30-3 

www.manheim.com / www.traauctions.com 

MANHEIM PITTSBURGH AA 

21095 Route 19, Cranberry Twp., PA 16066 

Phone: 724.452.5555 / Fax: 724.452.1310 

Tom McDonald, GM; Chris O’Donnell, AGM 

Shawn Byers, Commercial Accounts Manager 

Craig Hartle, Dealer Services Manager 

Wednesday, 9:00 A.M. 


NORTH EAST PENNSYLVANIA AA 

860 N. Keyser Ave., Scranton, PA 18504 

Phone: 570.207.CARS / Fax: 570.207.1860 

James Gaughan, Owner; Joseph Gaughan, Dealer 

Contact; Lisa Cohowicz, Dealer Contact 

Kevin Jennings, Dealer Cnt/F-L 


www.nepautoauction.com 

ORANGEVILLE AUTO AUCTION 

2040 St., Rt. 487, Orangeville, PA 17859 

Phone: 570.683.4006 / Fax: 570.683.4018 

Brenda Hartzel, Dealer Contact 

Angela Dawson, Dealer Contact 

Wednesday 10:00 A.M. 

www.orangevilleautoauction.com 

PERRYOPOLIS AUTO AUCTION 

Route 51 S. Perryopolis, PA 15473 

Phone: 724.736.4445 / Fax: 724.736.0466 

Renee Smith, Director of Operations 

Friday 9:45 A.M. 

www.perryautoauction.com 

Spend $399 - Get $20,000 in Discounts 

on Auction and Industry Products & 

Services. Join PIADA-MDIADA-DEIADA, 

NJIADA, NYIADA Today! 

MARYLAND 

BSC AMERICA/BEL AIR AUTO AUCTION 

803 Bel Air Rd., Bel Air, MD 21014 

Phone: 410.879.7950 / Fax: 410.893.1515 

R. Charles Nichols, President; 

Michelle Nichols-Neff, Vice President; 

Cindy Mitchell, VP of Fleet Operations; 

Mike Corrado, Dealer Sales; Chuck Wenzel, 

Dealer Sales; John Bellus, Dealer Sales; 

Christina Thorneycroft, Dealer Sales 


www.bscamerica.com 

MANHEIM BALTIMORE-WASHINGTON 

7120 Dorsey Run Rd., Elkridge, MD 21075 

Phone: 410.796.8899 / Fax: 410.799.0512 

Toll Free: 800.533.2923 

Steve Sirianni, GM; Rich Pomplun, AGM 

Sherry Houghtling, Dealer Sales Mgr. 

Jeffrey Judkins, OVE Rep. 

Tuesday Sale starting @ 9:30 A.M. 

TRA Salvage Sale @ 1 P.M. 


NEW JERSEY 

ADESA AUCTION OF NEW JERSEY 

200 N. Main, Manville, NJ 08835 

Phone: 908.725.2200 / Fax: 908.725.3446 

Craig Estep, GM 

Consignment Sale Thursdays 8:45 A.M. 

Topline Sale 9 A.M. monthly Thursdays 

GM Factory Sale Bi-weekly Tuesdays 10 A.M. 

www.adesa.com 

MANHEIM NEW JERSEY AA 

730 Rte. 68, P.O. Box 188, Bordentown, NJ 08505 

Phone: 609.298.3400 / Fax: 609.298.4489 

Pete Sauber, GM; Greg Conover, AGM 

Wednesday 9 A.M. 


NEW YORK 

ADESA BUFFALO 

12200 Main St., Akron, NY 14001 

Phone: 716.542.3300 / Fax: 716.542.3547 

Warren Clauss, GM, Mike Phillips, Assistant GM 

Consignment Sale Tuesday 9 A.M. 

Boat & RV Sale 2nd Tuesday Monthly 11 A.M. 

Ford Factory Tuesday Monthly 9 A.M. 

Office: M-Tu: 8-5, W: 8-4, Th: 9-4, F: 9-3 

www.ADESA.com/Buffalo 

ADESA LONG ISLAND 

425 Patchogue Yaphank Rd., Yaphank, NY 11980 

Noel Nixon, GM 

631.205.5000 

www.adesa.com/LongIsland 

ADESA SYRACUSE 

5930 State Rte. 31, Cicero, NY 13039 

David Taylor, GM 

315.699.2792 

www.adesa.com/Syracuse 

SWADE SCRANTON/WILKES-BARRE ADE 

11 R. South Keyser Ave., Taylor, PA 18517 

Phone: 570.961.3800 (Scranton) 

Phone: 570.823.2800 (Wilkes-Barre) 

Fax: 570.562.1344 

Justin Priblo, Dealer Contact 

Dottie Arnone, Office Manager 

Gene Scagliotti, Owner 

Monday 6:00 P.M. 

www.swadeaa.com 

BUFFALO AUTO AUCTION 

8418 Southwestern Blvd., Angola, NY 14006 

716.549.4800 

Sally Schueckler, GM 

sschueckler@buffaloautoauction.biz 

MANHEIM ALBANY 

459 Route 146, Clifton Park, NY 12065-0440 

518.371.7500 

Jay Waterman, GM 

jay.waterman@manheim.com 

MANHEIM NEW YORK AA 

2000 Dealer Drive, Newburgh, NY 12550 

Phone: 845.567.8400 / Fax: 845.567.8410 

Mark Pester, GM / Darryl Vrooman, AGM 

Sale Day Wednesdays 9 A.M. 

Monthly Tuesday Ford Factory Sales 10 A.M. 

3rd Tuesday of the Month Specialty Sales 10 A.M. 

1st Wednesday of the Month Heavy Truck & 

Equipment Sales 10 A.M. 

Office: M,T, Th 9-5, W 7-6, F 9-1 


ROCHESTER’S CENTRAL AUTO AUCTION 

20 Cairn Street, Rochester, NY 14611 

Julie Quinn, GM 

585.328.2277 

Info@rochesterautoauction.com 

ROCHESTER- SYRACUSE AUTO AUCTION 

1826 State Route 414, P.O. Box 129 

Waterloo, NY 13165 

315.539.5006 

Scott Prankie, GM 

sprankie@rsautoauction.com 

STATE LINE AUTO AUCTION 

830 Talmadge Hill Rd. S., Waverly, NY 14892 

Phone: 607.565.8151 / Fax: 607.565.8659 

Jeff Barber, Owner; Jim Terwilliger, Sales Manager 

Neal McEwen, Fleet/Lease Manager 

GM Closed Factory Sale Alternate 

Thursdays @ 10:00 A.M. Sharp 

Dealer Consignment Sale 

EVERY Friday @ 9:20 A.M. 

www.statelineauto.com 

ADDITIONAL STATES 

MOUNTAIN STATE AUTO AUCTION 

Route 2, Box 835, Shinnston, WV 26431 

Phone: 304.592.5300 / Fax: 304.592.3510 

Chad Garrison, GM; Joe Pyle, Owner 

Monday 10:30 A.M. 

Office: 9-5:00 

www.mtstateaa.com 

WINCHESTER AUTO AUCTION 

12828 Winchester Ave., Bunker Hill, WV 25413 

Phone: 304.229.4400 / Fax: 304.229.9067 

David Angelicchio, Chairman & CEO; Dennis 

Angelicchio, President; Bryan Dougherty, GM 

Friday 10:00 AM 

www.WinchesterAA.com 

YORKMONT AUTO AUCTION 

799 South Main Street, Fair Haven, VT 05743 

Phone: 802.278.8057 / Fax: 802.457.7110 

Shawn@camaraslate.com 


MARYLAND FORMS DEALERS CAN ORDER 

SECURE FORMS QUANTITY PRICE TOTAL $ DUE 

Secure Power of Attorney (3 part-50 per pad) _____ $ 

20. 00* $ 

________ 

Secure Dealer Reassignment (1 part-100 per pad) _____ $ 

20. 00 $ ________ 

Total Secure forms order $ ________ 

6% Maryland Sales Tax ________ 

TOTAL enclosed for Secure forms $ _________ 

*The prices for secure forms include FedEx shipping. Add $4.00 if shipping to residential address. 

NON-SECURE FORMS QUANTITY $ 

MEMBER NON- $ MEMBER TOTAL $ DUE 

Cash Sales Contracts (100 per pack) _____ $ 

47. 00 $ 94. 00 $ 

________ 

Odometer Mileage Statement (100 per pack) _____ $ 

18. 00 $ 36. 00 $ ________ 

FTC Buyers Guide (100 per pack) _____ $ 

28. 00 $ 56. 00 $ ________ 

Check one: AS IS IMPLIED 

Restricted Power of Attorney (100 per pack) _____ $ 

10. 00 $ 20. 00 $ ________ 

Deal Jackets (100 per pack) _____ $ 

24. 00 $ 48. 00 $ ________ 

Test Drive Agreements (100 per pack) _____ $ 

28. 00 $ 56. 00 $ ________ 

Total Non-Secure forms order $ ________ 

6% Maryland Sales Tax ________ 

TOTAL enclosed for Non-Secure forms $ _________ 

TOTAL AMOUNT DUE $ _________ 

Dealership_________________________________________________________________________ 

Dealer # (required)__________________________________________________________________ 

Member Yes No Contact Name____________________________________________ 

Email______________________________________________________________________________ 

Address___________________________________________________________________________ 

(FEDEX & UPS WILL NOT DELIVER TO P.O. BOX) 

City_______________________________________________State ______Zip__________ 

Phone ______________________________Fax_______________________________________ 

Card Type: VISA MasterCard AMEX 

Name on Card____________________________________________________ Exp. Date________ 

Card Number _____________________________________ Security Code________ 

Make checks payable to: PIADA or fill out payment information below: 

Card Type: VISA MasterCard AMEX Discover 



We cannot process orders until payment is received. 

Signature ____________________________________________ Date____________________ 

NOTE: If you are ordering both Secure and Non-Secure forms today, you will receive 

separate shipments. Secure Forms are shipped from a warehouse in Virginia. 

Non-Secure forms are shipped from PIADA headquarters. Revised Order Form as of 

August, 2015. For questions you may email Shannon@piada.org 

FOR INFORMATION ON MEMBERSHIP... 

PIADA – MDIADA – DEIADA 

Contact Shannon at 717.238.9002 x 18 

Shannon@piada.org 

www.piada.org • www.mdiada.org • www.deiada.org 

NYIADA & NJIADA 

Contact Paula at 855.694.2324 

nyiada.pfrendel@gmail.com 

www.newyorkiada.org • www.newjerseyiada.org 

I. A. D. A. 

Pennsylvania | Maryland| Delaware 

United We Stand 

PENNSYLVANIA FORMS DEALERS CAN ORDER 

DESCRIPTION QUANTITY $ 

MEMBER NON- $ MEMBER MEMBER EXT NON-M EXT 

“As is” Supplemental Statement _____ $ 

24. 00 $ 

48. 00 $ 

_______ 

$ 

_______ 

Buyers Guide Plastic Holders (50) _____ $ 

40. 00 $ 

80. 00 $ 

_______ 

$ 

_______ 

Buyers Guide Window Form _____ $ 

18. 00 $ 

36. 00 $ 

_______ 

$ 

_______ 

Buyers Guide Window Form (Spanish) _____ $ 

18. 00 $ 

36. 00 $ 

_______ 

$ 

_______ 

Consignment & Sales Agreement Form _____ $ 

18. 00 $ 

36. 00 $ 

_______ 

$ 

_______ 

Deal Jackets _____ $ 

24. 00 $ 

48. 00 $ 

_______ 

$ 

_______ 

Fees Chart (wall mount) _____ $ 

14. 00 $ 

28. 00 $ 

_______ 

$ 

_______ 

Installment Sales Contract (100) _____ $ 

75. 00 $ 

150. 00 $ 

_______ 

$ 

_______ 

Key Tags (250) _____ $ 

32. 00 $ 

64. 00 $ 

_______ 

$ 

_______ 

Lease Agreements _____ $ 

53. 00 $ 

106. 00 $ 

_______ 

$ 

_______ 

Limited Warranty _____ $ 

26. 00 $ 

52. 00 $ 

_______ 

$ 

_______ 

No Purchase Required Disclosure _____ $ 

24. 00 $ 

48. 00 $ 

_______ 

$ 

_______ 

Notary Receipt Pad _____ $ 

15. 00 $ 

30. 00 $ 

_______ 

$ 

_______ 

Notary Register _____ $ 

15. 00 $ 

30. 00 $ 

_______ 

$ 

_______ 

Odometer Mileage Statement _____ $ 

18. 00 $ 

36. 00 $ 

_______ 

$ 

_______ 

Power of Attorney Disclosure Forms _____ $ 

18. 00 $ 

36. 00 $ 

_______ 

$ 

_______ 

Rental Agreements _____ $ 

32. 00 $ 

64. 00 $ 

_______ 

$ 

_______ 

Retail Buyer Order Form _____ $ 

32. 00 $ 

64. 00 $ 

_______ 

$ 

_______ 

Secure Power of Attorney _____ $ 

55. 00 $ 

55. 00 $ 

_______ 

$ 

_______ 

Secure Power of Attorney Log Book _____ $ 

15. 00 $ 

30. 00 $ 

_______ 

$ 

_______ 

Temp Tag Log Book _____ $ 

15. 00 $ 

30. 00 $ 

_______ 

$ 

_______ 

Title Release Authorization _____ $ 

15. 00 $ 

30. 00 $ 

_______ 

$ 

_______ 

Used Vehicle Record _____ $ 

15. 00 $ 

30. 00 $ 

_______ 

$ 

_______ 

ADP FORMS 

Customer Delivery Check List _____ $ 

28. 00 $ 

56. 00 $ 

_______ 

$ 

_______ 

Customer Proposal _____ $ 

28. 00 $ 

56. 00 $ 

_______ 

$ 

_______ 

Damage Disclosure _____ $ 

28. 00 $ 

56. 00 $ 

_______ 

$ 

_______ 

Delivery Confirmation _____ $ 

28. 00 $ 

56. 00 $ 

_______ 

$ 

_______ 

Goodwill Repair Acknowledgement _____ $ 

28. 00 $ 

56. 00 $ 

_______ 

$ 

_______ 

Insurance Coverage Acknowledgement _____ $ 

28. 00 $ 

56. 00 $ 

_______ 

$ 

_______ 

Interpreter Confirmation of Translation _____ $ 

28. 00 $ 

56. 00 $ 

_______ 

$ 

_______ 

Lease Spot Delivery Agreement _____ $ 

28. 00 $ 

56. 00 $ 

_______ 

$ 

_______ 

Notice to Co-Signer _____ $ 

28. 00 $ 

56. 00 $ 

_______ 

$ 

_______ 

Test Drive Agreement _____ $ 

28. 00 $ 

56. 00 $ 

_______ 

$ 

_______ 

Trade-In Appraisal _____ $ 

28. 00 $ 

56. 00 $ 

_______ 

$ 

_______ 

$ 

Subtotal _______ 

$ 

_______ 

6% Pennsylvania Sales Tax $ _______ 

$ 

_______ 

Shipping $ per pound + Special Shipping $ at cost. Total w/o shipping $_________ 

Please make checks payable to PIADA, 1501 North Front St., Harrisburg, PA 17102 

(call in to receive shipping cost to include in payment) or you may fax orders to 

717.238.3870 with credit card information. *All orders MUST be accompanied by a 

method of payment. *Must provide DIN if applicable. 

Dealership_________________________________________________________________________ 

Contact_______________________________________________Date_________________ 

Address___________________________________________________________________________ 

City_______________________________________________State ______Zip__________ 

Phone _____________________Fax ____________________*DIN____________________ 

Card Type: VISA MasterCard AMEX 




WHAT EDMUNDS SAYS ABOUT 

NEAR RECORD CPO VEHICLE SALES 

From Press Reports Issued by Edmunds.com 

Used car sales climbed 5.6 percent last year to a total of 

38.3 million making last year the best for pre-owned sales 

since 2007, according 

to a new report from 

Edmunds.com. 

The 2015 Used Vehicle Market Report said 2015 was 

a milestone year that saw record high used car prices (an 

average of $18,600 per vehicle sold) and an all-time high for 

certified pre-owned (CPO) sales (2.55 million). 

“The key factor 

driving all of the trends 

in used car sales 

today is the popularity 

of leasing, which is 

bringing younger and 

higher quality used cars 

back to the market,” 

said Edmunds.com 

Director of Industry 

Analysis Jessica 

Caldwell. “We’re truly 

in the midst of a Golden 

Age for CPO and nearnew 

used cars. And 

with a record number 

of lease terminations 

expected in 2016, for the foreseeable future there certainly 

will be no shortage of supply to meet the growing demand 

for used cars.” 

Highlights of data and insights found within the report include: 

• Highest Sales in Almost a Decade – The 38.3 million used 

car sales recorded in 2015 was the highest single-year 

total since 2007, when 38.39 million used cars changed 

hands. Franchise 

d e a l e r s , 

meanwhile, set a 

single-year record 

with 11.4 million 

used car sales. 

• Vehicles Get Newer, 

More Expensive 

– The heavy influx 

of lease returns 

weighed the 

average age of 

used vehicles sold 

down to 4.4 years 

in 2015 from the 

previous year’s 4.6 

years. 54 percent 

of used vehicles 

sold last year were 

three years old or 

younger. And average used car transaction prices set 

a new record in 2015, increasing 4.6 percent from 

$17,700 in 2014 to $18,600 in 2015. 

• The CPO Surge – There were more certified pre-owned 

sales in 2015 (2.55 million) than in any year on record. In 

fact, CPO sales have increased a staggering 55 percent 

in the last five years. CPO accounted for 22.4 percent of 

all franchise dealers’ used car sales in 2015, up from 

20.9 percent in 2014, and up from 18.8 percent in 2010. 

• CPO Shoppers are 

Thorough Researchers – 

According to an analysis 

of shopping behaviors 

on Edmunds.com, CPO 

shoppers clearly spend 

more time researching 

than all other shoppers, 

with more than twice as 

many page views and 

session durations as 

either new car shoppers 

or (non-CPO) used car 

shoppers. 3 


ONLINE AUTO DEALER SUPPLIES & SELLING AIDS 

FULL LINE OF AUTOMOTIVE RECONDITIONING AND DETAILING PRODUCTS 

DEALERGOODIES DETAIL SEMINAR 

Basic: April 26th ∙ Advanced: April 27th 

Must Sign Up In Advance: Call (800) 366-2141 

See Your Route Salesman or Visit www.dealergoodies.com For Details 

CUSTOM DEALER IDENTIFICATION PRODUCTS 

125 low cost, high impact, one color process 

Auto Plate Inserts. 

Starting as low as $177.00 

500 Custom License Plate Frames 

$400.00. Additional styles 

and materials available. 

Whether you prefer pre-mades or die-cut 

Dealer-Cals, we have them starting at 

$105.00 & $341.00 

(Additional quantities and colors available for an additional cost.) Please visit our website for additional details not mentioned in our ad. 

ADVERTISING AIDS 

Quipall 200 AMP Port Charge All 

and Jump Starter PCJS400 

$134.95 

3x8 Stock Avenue Banners $70.00 

VEHICLE IDENTIFICATION 

Swooper flag and pole kit $150.00 

Replacement Flags $59.00 

Versa Key Tags 

250 per box 

$23.00 

Kleer-Bak Stock Stickers 

100 per pack 

$7.95 

Consecu-Tags 

125 per box 

$60.00 

Arrow I.D. Tags 

2 sizes 

1,000 per pack 

$16.00 – $19.50 

PLEASE VISIT OUR WEBSITE TO VIEW OUR HUGE SELECTION OF PRODUCTS! 

88 AUCTION ROAD MANHEIM, PA 17545 800-366-2141 WWW.DEALERGOODIES.COM

LEGAL CORNER 

Tom (thudson@hudco.com) 

and Nikki (nmunro@hudco. 

com) are partners in the 

law firm of Hudson Cook, 

LLP. Tom is the author of 

a book, CARLAW®, and is 

the Editor/author of the 

CARLAW® F&I Legal Desk 

Book. The books are 

available at www.counselor 

library.com. Tom is also 

the publisher of Spot 

Delivery®, a monthly 

legal newsletter for auto 

dealers, and the Editor 

in Chief of CARLAW®, a 

monthly report of legal 

developments in all states 

for the auto finance and 

leasing industry (not to be 

confused with the book). 

Nikki is a contributing 

author to the F&I Legal 

Desk Book and frequently 

writes for Spot Delivery®. 

Spot Delivery®, CARLAW® 

and the books are produced 

by CounselorLibrary.com 

LLC. For information, call 

410.865.5411 or visit 

www.counselorlibrary.com. 

Copyright CounselorLibrary. 

com 2015, all rights 

reserved. Single publication 

rights only, to the 

Association. 

HC# 4840-4850-0270 

3/16) 

THE CARLAWYER © 

By Thomas B. Hudson and Nicole Frush Munro 

The first spring flowers are poking their way through the snow – can baseball season be 

long in coming? Until someone says, “play ball!”, we’ll again peruse developments in the 

auto sales, finance and lease world. This month, we feature federal developments from the 

Consumer Financial Protection Bureau and the Justice Department and a state action from 

Washington. We thought might interest folks during the winter doldrums. We also recap 

some of the auto sale and financing lawsuits we follow each month. Remember – we aren’t 

reporting every recent legal development, only those we think might be particularly important 

or interesting to industry. 

Why do we include items from other states? We want to show you new legal developments 

and trends. Also, another state’s laws might be a lot like your state’s laws. If attorneys 

general or plaintiffs’ lawyers are pursuing particular types of claims in other states, those 

claims might soon appear in your state. 

Note that this column does not offer legal advice. Always check with your own lawyer to 

learn how what we report might apply to you, or if you have questions. 

THIS MONTH’S CARLAWYER© COMPLIANCE TIP 

With the Federal Trade Commission’s continuing assault on dealer advertising, why not appoint 

an advertising officer to oversee your ad efforts (including your web site). Provide that person 

with an advertising compliance budget and have them trained to understand federal and state 

advertising rules, then have them review every new ad you run, and document the review. If 

the feds come calling, your compliance efforts will likely be well received. 

FEDERAL DEVELOPMENTS 

Are You Furnishing Information to Credit Bureaus? On February 3, the CFPB issued a 

compliance bulletin reminding furnishers of their obligation under Regulation V (Fair Credit 

Reporting Act) to establish and implement reasonable written policies and procedures 

regarding the accuracy and integrity of information furnished to consumer reporting agencies. 

In the bulletin, the CFPB notes its focus on the accuracy of information in consumer reports 

about banking history, past NSF activity, unpaid or outstanding bounced checks, overdrafts, 

involuntary account closures, and fraud. The CFPB also notes that its supervisory experience 

suggests that some financial institutions are not compliant with their obligations with regard to 

furnishing information to specialty CRAs. The bulletin emphasizes that a furnisher’s obligation 

to have policies and procedures that satisfy Regulation V’s requirement extends to information 

furnished to all types of CRAs, including the furnishing of deposit account information 

to specialty CRAs. The bulletin states that the CFPB will continue to monitor furnishers’ 

compliance with the Regulation V requirement to establish and implement reasonable written 

policies and procedures regarding the accuracy and integrity of all furnished information. 

Another CFPB Fair Lending Enforcement Action. On February 2, the CFPB and the Department 

of Justice resolved discrimination claims against major auto finance creditor Toyota Motor 

Credit Corporation. The agencies’ coordinated settlements with TMCC closely resembled 

settlements reached previously with American Honda Finance Company and Fifth Third Bank. 

The CFPB and the DOJ alleged that TMCC’s policy of buying retail contracts from dealers having 

rates up to 250 basis points over TMCC’s wholesale buy rate resulted in African-American 

and Asian/Pacific Islander buyers paying auto financing rates higher, on average, than non- 

Hispanic white consumers, without regard to their creditworthiness. Under the orders, TMCC 

will pay up to $21.9 million in restitution to an unspecified number of consumers. The consent 

orders require TMCC to limit dealer discretion in setting rates to no more than 1.25% or 1% 

over the applicable buy rate, depending on the term. TMCC also has the option of moving to 

non-discretionary dealer compensation. CFPB Director Richard Cordray announced that TMCC 

had committed not to raise its buy rates to cover “any additional nondiscretionary component 

of dealer compensation,” but this commitment does not appear in the CFPB’s order. 

Complain, Complain, Complain. On January 28, the CFPB released its monthly complaint 

report, which highlights trends in the complaint data the CFPB receives through its Consumer 

Complaint Database. The report includes complaint data specific to certain companies, overall 

complaint volume and complaint volume by state, and other trends in the data. Each month, 

the report spotlights complaints about a particular issue and from a particular geographic 

location. The latest report focuses on financial services such as debt settlement, check 

cashing, money orders, and credit repair and highlights complaints from consumers residing 

in New York State. 


STATE ENFORCEMENT ACTIONS 

On January 15, the Washington State attorney general 

announced a settlement with a car dealership that allegedly 

sent promotional mailers that looked similar to the National 

Highway Traffic Safety Administration’s recall notifications. 

The mailers notified recipients of possible recalls and offered 

to buy their vehicles, but failed to clearly and conspicuously 

disclose that the offer to buy was independent of any recall 

notification. The dealership will pay approximately $74,000 

to resolve allegations that the mailers misled consumers in 

violation of the state Consumer Protection Act. 

LITIGATION 

Arbitration Agreement Signed in Connection with Vehicle 

Sales Contract Deemed Void Remains Enforceable: A car 

buyer signed a retail buyers order, an installment sale contract, 

and an arbitration agreement at the time of purchase. She 

sued the dealer for violating the Missouri Merchandising 

Practices Act by failing to provide title to her new vehicle. The 

dealer moved to compel arbitration, and the trial court denied 

the motion. The trial court concluded that the sale contract 

was fraudulent and void because the dealer did not provide 

title at the time of sale or since. Because the arbitration 

agreement should be construed with the other contract 

documents, the trial court found it was void and unenforceable 

as well. The Supreme Court of Missouri noted that, under 

the governing Federal Arbitration Act, arbitration agreements 

are severable and considered separate from any underlying 

related agreements and, therefore, are enforceable unless 

the arbitration agreement itself is invalid under generally 

applicable state law principles. Relying on U.S. Supreme 

Court precedent, the state high court concluded that the 

unenforceability of the sale contract in this case was irrelevant 

to the enforceability of the arbitration agreement contained 

within or executed contemporaneously with the sale contract 

because the buyer did not directly challenge the arbitration 

agreement. See Ellis v. JF Enterprises, LLC, 2016 Mo. LEXIS 

4 (Mo. January 12, 2016). 

RISC Assignee Properly Cured Usurious Contract: After taking 

assignment of an installment sale contract for the purchase 

a used car, the assignee discovered that the contract rate 

was greater than the 24% maximum rate allowed by the 

Maryland Credit Grantor Closed End Credit Provisions. The 

assignee cured the error within 60 days of the discovery, as 

permitted by CECP, by reducing the rate to 23.99%, crediting 

the buyer’s account for excess interest, and sending the 

buyer a cure notice to notify him of the error. After the buyer 

missed payments on the contract, the assignee attempted to 

collect the debt. The buyer sued the assignee for breach of 

contract and violations of CECP and the Maryland Consumer 

Debt Collection Act. The buyer alleged that the cure was 

untimely, the cure notice was too vague, the assignee was 

required to refund all interest that was collected, and the 

assignee made false representations in connection with its 

collection efforts. The trial court granted summary judgment 

for the assignee, and the federal appellate court affirmed 

with respect to the CECP and breach of contract claims, but 

reversed and remanded the MCDCA claim. The appellate 

court concluded that CECP requires a creditor to disclose only 

the interest rate charged, so failing to disclose a rate below 

the maximum is not a violation for which liability is imposed. 

Second, the appellate court concluded that the 60-day cure 

period began when the assignee actually discovered the 

violation, not when it took assignment of the contract. Third, 

the appellate court concluded that the assignee provided 

a proper cure notice because the notice is only required to 

identify the substance of the error and not the actual violation. 

Next, the appellate court concluded that a creditor does 

not forfeit all interest when it cures because such a result 

would discourage creditors from self-correcting the error. The 

appellate court then held that a creditor could not be liable 

for breach of contract due to a violation of CECP after a cure 

because permitting liability would negate the effect of a cure. 

Finally, the appellate court reversed the trial court’s decision 

on the MCDCA claim because a reasonable jury could find 

that the assignee’s conduct abused or harassed the buyer. 

See Askew v. HRFC, LLC, 2016 U.S. App. LEXIS 384 (4th Cir. 

(D. Md.) January 11, 2016). 

Failure to Include Processing Fee Paid at Consummation 

in Total of Payments Disclosure Did Not Violate TILA: After 

selecting a used car for purchase for $17,000, the buyers paid 

the dealer $2,400 down and paid an additional $4,675 the 

following day. They financed the remaining $10,000 through 

the dealer. When the buyers failed to make their payments 

and keep the vehicle insured, the dealer repossessed it. 

The buyers sued the dealer, alleging violations of the Truth 

in Lending Act for failing to provide them with a disclosure 

statement in a written form they could keep prior to the 

extension of credit and for disclosing the total of payments as 

$17,000 rather than $17,075, which was the amount shown 

in the payment schedule. Both parties moved for summary 

judgment, and the federal trial court granted the motion. The 

court found that even if the dealer failed to give the buyers a 

copy of the disclosure statement in a form they could keep, 

that violation does not trigger statutory damages under 

TILA, and the buyers failed to submit any evidence of actual 

damages. The court also found that the dealer’s failure to 

include the $75 processing fee in the total of payments did not 

violate TILA. The court reasoned that the required disclosures 

all relate to the amount of credit that is being extended (i.e., 

the amount financed), and the agreement clearly disclosed 

that the $75 was a separate fee the buyers paid when they 

signed the agreement. Note – be very careful with this one; 

whether the court correctly decided the issue depends on 

facts not evident in the court’s opinion. See Yancy v. America’s 

Preowned Selection, 2016 U.S. Dist. LEXIS 13582 (E.D. Ark. 

February 4, 2016). 

Increasing Car’s Price to Cover Inflated Trade-In Allowance Not 

Hidden Finance Charge Where Price Applied Equally to Cash 

and Credit Transactions: A Pennsylvania dealership advertised 

a “Cash for Clunkers” program promising potential buyers 

“at least $4,500” for any car a buyer offered as a trade-in. 

A buyer traded in his 1995 Jeep for a 2012 Ford with a cash 

price of $29,214. The buyer sued the dealership, claiming, 

among other things, that the dealership violated the Truth in 

Lending Act and Regulation Z. The buyer argued that the price 

of the Ford included a hidden finance charge represented by 

the amount that the dealership marked up the Ford’s sale 

price to make up for the fact that it gave the buyer more for 

his trade-in than it was worth. The federal trial court dismissed 

the TILA claim. Because the “Cash for Clunkers” offer applied 

to both cash and credit sales, the court found that there was 

no hidden finance charge. The fact that the buyer might have 

been able to buy the Ford for a lower price if the deal did not 

include the “clunker” trade-in was irrelevant. See Gregory v. 

Metro Auto Sales, Inc., 2016 U.S. Dist. LEXIS 9993 (E.D. Pa. 

January 27, 2016). 

So there’s this month’s roundup! Stay legal, and we’ll see 

you next month. 3 


KONTOS KOMMENTARY 

CURRENT USED VEHICLE MARKET CONDITIONS 

SUMMARY 

Average wholesale used vehicle prices were down in February compared to January, which is 

anomalous to the normal seasonal tendency as the spring tax refund season kicks in, and is 

another indication that cumulative supply increases are continuing to cause prices to soften. 

Tom Kontos is Executive 

Vice-President, Customer 

Strategies and Analytics. 

In this position, Mr. Kontos 

interfaces with members 

of the media, Wall Street 

and automotive analysts, 

dealers, and key ADESA 

clients to provide 

information and insight 

on economic trends in the 

vehicle remarketing 

industry, of which ADESA 

is a major player. Mr. 

Kontos also provides 

analytical services to 

internal and external 

ADESA audiences in the 

form of annual market 

reports, periodic reports 

on used vehicle price 

trends, web-based 

information products, 

dealer surveys, and other 

strategic studies. He 

supplies monthly used 

vehicle price data to the 

U.S. Bureau of Economic 

Analysis (BEA) as part 

of the BEA’s effort to 

estimate various 

components of Gross 

Domestic Product. 

ADESA Auctions 

13085 Hamilton Crossing 

Blvd., Suite 500 

Carmel, IN 46032 

317.249.4235 

tkontos@adesa.com 

DETAILS 

According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices 

by Vehicle Model Class 1 , wholesale used vehicle prices in February averaged $10,202 – down 

0.5% compared to January but up a modest 0.3% relative to February 2015. Cars and Minivans 

continue to show year-over-year price declines, while SUVs/Crossovers and Pickups show 

gains (ADESA Analytical Services’ Black Book-based segmentation scheme has been revised 

to combine crossovers into the SUV classes, as the distinction between them has blurred). 

Average wholesale prices for used vehicles remarketed by manufacturers were down 0.5% 

month-over-month but up 1.6% year-over-year. Prices for fleet/lease consignors were down 

2.0% sequentially and down 1.8% annually, as fleet/lease sales volumes rose significantly 

versus prior year partly as a result of higher off-lease volumes. Dealer consignors saw a 0.5% 

price decrease versus January but a 3.2% increase relative to February 2015. 

Data from NADA showed an 11.9% year-over-year increase in retail used vehicle sales by 

franchised dealers and a 15.5% increase for independent dealers in February, but both were 

down significantly on a month-over-month basis for the second month in a row. February CPO 

sales were up 10.8% month-over-month and 7.1% year-over-year, more than making up for 

January’s declines, according to figures from Autodata. 

WHOLESALE USED VEHICLE PRICE TRENDS 

Average Prices ($/Unit) 

Latest Month Versus: 

Feb-16 Jan-16 Feb-15 Prior Month Prior Year 

Total All Vehicles $10,202 $10,254 $10,167 -0.5% 0.3% 

Total Cars $8,506 $8,535 $9,074 -0.3% -6.3% 

Compact Car $6,650 $6,531 $7,271 1.8% -8.5% 

Midsize Car $7,667 $7,742 $8,100 -1.0% -5.3% 

Fullsize Car $7,378 $7,485 $8,027 -1.4% -8.1% 

Luxury Car $12,899 $12,858 $13,493 0.3% -4.4% 

Sporty Car $12,893 $12,730 $12,693 1.3% 1.6% 

Total Trucks $12,030 $12,093 $11,409 -0.5% 5.4% 

Mini Van $7,262 $7,141 $7,888 1.7% -7.9% 

Fullsize Van $12,429 $12,120 $12,155 2.6% 2.3% 

Compact SUV/CUV $10,615 $10,568 $10,542 0.4% 0.7% 

Midsize SUV/CUV $10,663 $10,758 $10,047 -0.9% 6.1% 

Fullsize SUV/CUV $12,107 $12,265 $11,422 -1.3% 6.0% 

Luxury SUV/CUV $17,758 $17,923 $17,719 -0.9% 0.2% 

Compact Pickup $8,370 $8,268 $7,683 1.2% 8.9% 

Fullsize Pickup $15,298 $15,209 $13,777 0.6% 11.0% 

Source: ADESA Analytical Services. January revised. 

NOTE: Blackbook revised segmentation to combine crossovers into the SUV classes as the distinction between them has blurred. 

1 

The analysis is based on over seven million annual sales transactions from over 150 of the largest U.S. wholesale auto auctions, including those of 

ADESA as well as other auction companies. ADESA Analytical Services segregates these transactions to study trends by vehicle model class, sale type, 

model year, etc. 

The views and analysis provided herein relate to the vehicle remarketing industry as a whole and may not relate directly to KAR Auction Services, Inc. The 

views and analysis are not the views of KAR Auction Services, its management or its subsidiaries; and their accuracy is not warranted. The statements 

contained in this report and statements that the company may make orally in connection with this report that are not historical facts are forward-looking 

statements. Words such as “should,” “may,” “will,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “bode”, “promises”, 

“likely to” and similar expressions identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause 

actual results to differ materially from the results projected, expressed or implied by the forward-looking statements. Factors that could cause or contribute 

to such differences include those matters disclosed in the company’s Securities and Exchange Commission filings. The company does not undertake any 

obligation to update any forward-looking statements.

APRIL 2016 MidAtlantic Dealer News

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