JULY 2016 MidAtlantic Dealer News

midatlanticmag

NIADA CONVENTION REPORT FROM VEGAS; SIGN UP FOR YOURS IN PHILLY – Pgs. 6, 21

MidAtlantic

DealerNews

JULY 2016

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

Pennsylvania | Maryland| Delaware

United We Stand

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

I. A. D. A.

MDIADA

STATE

QUALITY

DEALER OF

THE YEAR

TOM HODGES

TOM HODGES

AUTO SALES

& SERVICE

HOLLYWOOD, MD

PIADA

1501 North Front Street

Harrisburg, PA 17102

Change Service Requested

PRSRT STD

U.S. POSTAGE

PAID

Harrisburg, PA

Permit No. 557

FEDERAL CHANGES TO OVERTIME PAY

SCHOLARSHIP AWARD RECIPIENTS ANNOUNCED

MARKET CONDITIONS REPORT AND FORECAST

ANNIVERSARY SALES CELEBRATIONS


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Phone: 717.697.2222

Pittsburgh

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AT 12:30PM

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Phone: 724.225.1777


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MidAtlantic

DealerNews

Affiliated with National Independent Auto Dealers Association

DEPARTMENTS & ARTICLES

The Value of the NIADA Convention According to Our Directors Who

Were There By Reg Evans and Paula Frendel ......................6

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

Tom Hodges, Maryland IADA State Quality Dealer of the Year

By Peter Salinas. ......................................10-11

PIADA – MDIADA – DEIADA Announces Three Scholarship Award

Recipients for 2016 ......................................12

Anthony Pinto, New Jersey IADA State Quality Dealer of the Year

By Peter Salinas .......................................13-14

What You Will Need to Know About Federal Changes to Overtime Pay

By Matthew S. Wildasin ....................................18

Garden Spot Auto Auction Celebrates 52nd Anniversary ..............22

North East PA Auto Auction Hosts Agent Training Seminar in Scranton Area. . 22

Greater Erie Auto Auction Celebrates 12th Anniversary ...............26

Manheim Philadelphia Auto Auction Hosts Agent Training Seminar .......26

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

Adesa Pittsburgh Holds Their Largest Sale of Year ..................29

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

PIADA, NJIADA/NYIADA, MIADA/DIADA

PROGRAMS, OFFERS & EVENTS

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

2016 MARIADA Exhibitors to Date ..............................20

Announcing Speaker Tom Kontos, for MARIADA 2016 ................21

PIADA Issuing Agent Training Courses/Dates ......................23

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

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

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

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

Form of the Quarter ........................................26

ADVERTISERS

✷ ABC Lancaster ..............31

✷ Adesa PA/Adesa Pittsburgh ......7

✷ America’s Auto Auction Harrisburg. 2

AutoTrader ...................26

Auto Use ....................11

✷ Auto Zone ..................26

✷ Bel Air Auto Auction ..........23

✷ Central Pennsylvania Auto Auction. 32

✷ Corry ADE ....................9

✷ Counselor Library ............29

Dealer Goodies ..............27

4 | JULY 2016 MIDATLANTIC DEALER NEWS

JULY 2016

✷ Greater Erie Auto Auction ......23

✷ GWC Warranty. ...............3

✷ Kramer Insurance Center .......29

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

✷ Manheim Pennsylvania. . . . . . 16-17

MyDealerOnline ................26

NextGear Capital ...............26

✷ North East PA Auto Auction .....19

✷ ProGuard Warranty Inc. ......5,26

✷ Winchester Auto Auction .........9

✷ ADVERTISER ALSO PARTICIPATING IN THE 2016 DISCOUNT BOOK FOR PIADA-MDIADA-DEIADA MEMBER DEALERS.

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.

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.

PUBLISHING SERVICES PROVIDED BY

WAVELINE DIRECT, LLC

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THE VALUE OF THE NIADA CONVENTION ACCORDING

TO OUR DIRECTORS WHO WERE THERE

By Reg Evans and Paula Frendel

Special thanks to MidAtlantic IADA (PIADA-MDIADA-DEIADA) Directors John DeFilippo, Tom Brandis, Michael Brill, Michael

Mansour, Beth Melamed, Noah Melamed, Tom Hodges; NJIADA President Sal Enea; and NIADA Director and past President

of PIADA Andy Gabler - who all attended the NIADA Convention (and will be at the MARIADA 2016 convention) - for their

contributions to this article.

Our dealers were well represented at the 70th Anniversary

Convention of the National Independent Automobile Dealers

Association (NIADA) was held on June 13 – 16, 2016 at the

Mirage Hotel in Las Vegas, Nevada.

The convention hosted Dealers from all across the United

States by providing a beautiful desert hotel venue, good food,

plenty of dealer education, legislative and regulatory guidance,

and honored State Quality Dealers of the Year selected by

their respective State IADAs.

So what do all of these Dealers get from attending a national

convention on top of attending their State conventions?

Similar to prior years, the NIADA invited consultants,

experts, advisors to our industry, and included a talk from

federal lobbyists hired to protect and advocate to the U.S.

Congress on behalf of our industry. The subject areas

covered to help dealers include but not limited to: Dealer

operations development, Twenty Groups dealer meetings to

improve their businesses promotion, Buy Here Pay Here best

practices meetings, the state of the industry, pricing vehicles,

GPS devices updates, salesperson training, EXHIBITORS

GALORE with the latest greatest new offers for innovative

dealers, income increase generation, advertising compliance,

social media marketing, and the list goes on. The networking

alone with exhibitors and dealers provides great value, not to

mention the education listed.

The State IADA Presidents meet and brainstorm challenges

in their States which helps the other States to know more

about what is happening where and what may be headed

their way so they can be ready to defend and advocate for

the industry. The State IADA Executive Directors have similar

meetings among themselves.

Inspiration and renewal of energy is another benefit of a

good convention like this one. This year, the keynote speaker

was a former Army Ranger who fought to protect the CIA Annex

in Benghazi that became the subject of a feature movie,

“13 Hours”.

The NIADA Convention closes with an Awards Banquet

to honor and congratulate the State Quality Dealers of the

Year and to select a National Quality Dealer of the Year from

among them. The MidAtlantic IADA (PIADA Pennsylvania,

MDIADA Maryland, and DEIADA Delaware) and the New Jersey

IADA and New York IADA were represented by the following

accomplished dealers:

Michael Brill, B & B

Automotive, Fairless Hills,

Pennsylvania State Quality

Dealer of the Year

Tom Hodges, Tom Hodges Auto

Sales, Hollywood, Maryland State

Quality Dealer of the Year

Louis Katz, Ideal Auto Exchange,

Jamaica Queens, New York State

Quality Dealer of the Yearr

Anthony Pinto, Pinto Auto

Group, Robbinsville, New Jersey

State Quality Dealer of the Year

Our five States of Pennsylvania, Maryland, Delaware, New

Jersey, and New York will provide you with our fifth annual own

MidAtlantic Region IADA Convention 2016 on November 5-6 at

Loews in center city, Philadelphia, PA. More about that later.

Until next time…Sell All You Can!

John, Tom, Mike, Michael, Beth,

Noah, Tom, Sal, Andy, Paula, Reg

6 | JULY 2016 MIDATLANTIC DEALER NEWS


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EXECUTIVE DIRECTORS' MESSAGE

REG EVANS

Executive Director

PIADA, MDIADA, DEIADA

www.piada.org,

www.mdiada.org,

www.deiada.org

NIADA CONVENTION

REPORT

If you missed this 70th annual

NIADA Convention in Las Vegas,

Nevada, you missed an opportunity

to meet with and hear from the

people in the industry who can

help you improve and grow your

business.

Guidance and information from

presenters and vendor exhibitors

in the Exhibit Hall included:

• Digital marketing on how the

best car salespeople in the

industry use social media to

enhance customer relationships

and sell vehicles;

• Health insurance for small businesses and related requirements

and notices;

• Federal legislative update on safety recall legislation

and other bills;

• Text messaging to connect to potential buyers and

existing customers and related legal restrictions and

requirements;

• Anticipated market conditions involving off-lease vehicles

and pricing over the next 12 – 18 months and how to

buy where you are;

• Consumer Financial Protection Bureau (CFPB) enforcement

against buy here pay here dealers;

• Employee wage and hour issues;

• Plenty of networking, discussion of business approaches

and ways to improve business;

• And much more on a wide range of operations, compliance,

and new programs to help dealers make and save

money.

• Very similar focus to our upcoming MARIADA Convention

2016 which is to help dealers grow and do

extremely well.

As a special bonus part of the convention, the keynote

speaker, former Army Ranger Kris “Tanto” Paronto, provided

riveting details and insights about the 13 hour battle against

terrorist attackers that he and other brave Americans engaged

in at the U.S. Special Mission in Benghazi, Libya. He told his

eye witness participant view of the real story. And it was an

AMAZING and disturbing event!

If you were not in Las Vegas for this event, you do have

an opportunity to attend your own convention this November

By Paula Frendel and Reg Evans

5-6, 2016 in Philadelphia. We

will cover a lot of ground at that

time. As indicated on page 6, the

dealers who attended learned a

lot from vendors in the Exhibit Hall

about new and improved industry

products and from presenters in

the speaker rooms.

You can lead a horse to water,

but you can’t make him/her drink.

IF YOU ARE SERIOUS ABOUT

IMPROVING YOUR BUSINESS,

YOU HAVE TO GET YOURSELF TO

CONVENTIONS, TWENTY GROUPS,

AND OTHER INDUSTRY EVENTS.

That is where the leading people

PAULA FRENDEL

Executive Director

NYIADA and NJIADA

www.newyorkiada.org

www.newjerseyiada.org

in the industry gather to get more information and then go

back home to implement whichever ideas seemed best to

them for their dealership.

AGENT TRAINING CLASSES LIVE -

SCHEDULE REMAINING FOR 2016

These Pennsylvania title agent advanced training classes

have been well attended and are well run. The idea is to give

you all information required by PennDOT in as interesting,

efficient, and understandable manner as possible. Here is

the list of live advanced training classes remaining for 2016,

to be taught by Arie Garcia who is our Director of Operations:

REMAINING ADVANCED TRAINING CLASS DATES:

August 8, Central Pennsylvania Auto Auction, Sponsored by

Annual Gold Sponsor ProGuard Warranty & Annual Bronze

Sponsor MyDealerOnline; August 29, Manheim Pittsburgh

Auto Auction, Sponsored by Annual Gold Sponsor ProGuard

Warranty; September 12, Garden Spot, Sponsored by Annual

Gold Sponsor ProGuard Warranty & Annual Bronze Sponsor

MyDealerOnline; September 26, Corry ADE, Sponsored by

Annual Gold Sponsor ProGuard Warranty & Annual Bronze

Sponsor NextGear Capital & Autotrader and October 24, ADESA

Mercer, Sponsored by Annual Gold Sponsor ProGuard Warranty

WEBINAR NIADA CONVENTION REPORT

We provided to our MEMBERS ONLY a webinar stating some

of the great information learned by dealers at the NIADA

Convention 2016. Members should please keep a lookout

for more webinars from your MidAtlantic IADA.

Have a Great Sales Month!

8 | JULY 2016 MIDATLANTIC DEALER NEWS


TUESDAY AT NOON

CORRY AUTO DEALERS EXCHANGE WINCHESTER AUTO AUCTION

12141 ROUTE 6 * CORRY PA 16407 12828 WINCHESTER AVE BUNKER HILL WV 25413

(814) 664-7721 www.corryade.com (304) 229-4400 www.winchesteraa.com


TOM HODGES, MARYLAND IADA STATE

QUALITY DEALER OF THE YEAR

Interview by Peter Salinas, Special Contributing Writer

Tom Hodges is the owner of Tom Hodges Auto Sales & Service in Hollywood, Maryland. He has

been in business since 1990, and will open a new showroom this year. He is the 2016 Maryland

IADA Quality Dealer of the Year.

loyalty, and that is a huge benefit to business growth. My

sales manager and inventory manager, for example, have

both been here 20 years.

Q. Please give us an overview of your dealership or

enterprise. How did you get into the business, and tell us

about your business model and staffing?

A. I started working for a new car dealer in the used car

department at age 18 and it wasn’t long before I knew I

wanted to go into business for myself eventually. I opened

Tom Hodges Auto Sales in 1990. I purchased the house my

mother and my aunts were raised in and had the property

rezoned commercially. For several years I lived in that house

while I ran the business out of the front room, detailed cars

in the garage, and used the barn for storage. As we expanded

and hired more salesmen we converted the entire house

into sales offices, then built a service center and car wash

in 2007. In 2011 we built a connector road to the highway,

and in 2015 we began construction on a new showroom. This

year marks my 36th year in the car industry and 25 years as

a business owner.

The used car industry appealed to me for several reasons.

First, vehicles are a necessity for most people, and they

are a tangible product. Used vehicles in particular are more

affordable and have a wider consumer base. Second, I wanted

to provide something that would benefit the community.

Besides offering affordable vehicles, our success as an

independent business has allowed us to be more involved

with the community and donate thousands of dollars each

year to local programs and charities.

Q. Tell us about your team and how they have helped you

along your road to success.

A. I started with one employee and we currently employ 25

people between the sales and service departments. Our plan

is to hire five more when the new showroom is completed.

We always try to hire from within the automotive industry,

focusing heavily on personal character and experience. Since

I started almost all of my new hires have been referrals or

contacts in the auto business. We know how important it is

to keep good people, so we provide very competitive payment

plans and benefits, but most importantly we show respect

for our employees and allow them a good work/life balance.

The result is that we have low turnover and good employee

Q. How long have you been a member of your IADA? How

did you get involved in IADA leadership?

A. I joined the Maryland/Delaware IADA as soon we opened

the business 25 years ago. I wanted to be involved with an

ethical organization with good business practices and connect

with other dealers.

Back then the Maryland/Delaware IADA had a very weak

leadership structure. The organization overall was not very

viable and participation was really low. I was elected president

by the existing Board of Directors and when I realized we

weren’t able to accomplish much with the structure that

we had, I spoke with the leadership from the Pennsylvania

IADA. They were a much stronger organization with much

better participation from dealers in their state and I knew

that we needed a structure more like theirs. Ultimately the

PIADA agreed to merge with MD/DE to form the Mid-Atlantic

Regional IADA.

Q. What steps have you taken to be compliant in all aspects

of your business?

A. The legal and regulatory environment is constantly

changing, so having outside legal consultation is critical, even

competent businesses with the best intentions can be caught

off guard if they aren’t constantly updating their practices.

The way we handle this is to have an F&I trainer from a legal

firm periodically re-train all our employees on any laws or

regulations that have changed. We do this every few months

or as needed when new policies go into effect.

Q. Do you have any experience in a Dealer Twenty Group?

A. I saw an ad in the Used Car News for the Leedom Twenty

Group program and joined in 2004. I found it very beneficial

to business growth, a great brainstorming and idea-sharing

resource that really helps to keep you in the problem-solving

mindset. My participation lapsed after 2009 because my

focus shifted to family. When I was not active as a Twenty

Group member I did see some stagnation in the progress my

business was making, which was a strong indicator to me that

it was worth getting involved in the group again. I began to

participate again in early 2014, and it has been very helpful.

Q. What are the challenges and opportunities facing today’s

independent automotive retailer from your perspective?

A. Recalls have been a significant challenge. There have been

more recalls in recent years than ever before. There are also

some proposed changes to laws concerning how recalls are

handled that could make selling cars with open recalls much

more difficult.

Also, the Consumer Financial Protection Bureau (CFPB) has

created regulations that are intended to protect car buyers,

but in practice sometimes the regulations they impose on

10 | JULY 2016 MIDATLANTIC DEALER NEWS


dealers are unrealistic or impractical and ultimately don’t

benefit anyone.

On the other hand, market growth and development in rural

areas has been strong, and we are established in an area that

was once rural, but is growing quickly. Thanks to developing

industry in southern Maryland the average income has

increased, and across the country there is a large millennial

population entering the workforce looking for affordable cars.

Another opportunity is that in recent years, more people

are leasing new vehicles, and that makes it easier for us to

secure quality late-model, lower-mileage vehicles re-entering

the market. This improves the quality of the cars that we are

able to offer.

Q. How would you convince a non-member to join their local

IADA?

A. Our IADA is a unified force for lobbying and legal advocacy

purposes, and as I mentioned legal restrictions are a

constant challenge. The IADA is the voice of the dealer to

legislators and regulatory agencies. In Maryland in particular

the MVA often consults with the local IADA members before

implementing new policies, so involvement helps dealers

actually have a say in local regulations.

The IADA conventions and training also help keep dealers

up-to-date on industry changes to help them maintain

compliance, educate employees, and grow their business.

And of course the IADA offers substantial savings through

affiliate vendors.

Q. How are you using the latest technology to market and

manage your business operations?

A. We have integrated our sales and service customer

databases and that has

become a very important

marketing tool. We use

DealerSocket CRM,

which integrates with

Adam, our DMS, for

targeted marketing for

both sales and service.

This integration saves

processing time and

minimizes errors. All our

data can be entered and

accessed remotely with

iPads and smart phones.

Tom Hodges and his father Jim Hodges

at NIADA Quality Dealer Awards."

The tricky thing about technology is staying up-to-date

without needlessly overhauling your system every few months.

We try to strike a good balance and be strategic with our

upgrades, so we don’t spend too much on new tech every

week, but we are still as advanced as possible.

Q. What three goals would you like to see for the NIADA

association locally and nationally?

A. We should look to increase membership and involvement

both in our region and nationally to keep everyone on top

of their game. We should also strengthen our position

as advocates for dealers with lawmakers. This will help

ensure that any new laws are sensible and not needlessly

restrictive. We also need to increase participation in the

NIADA 20 Groups to get dealers directly participating in

idea sessions, networking, and thinking critically with other

dealers. When dealers are able to work together on a large

scale it strengthens and legitimizes the entire industry. 3

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MIDATLANTIC DEALER NEWS JULY 2016 | 11


PIADA – MDIADA – DEIADA ANNOUNCES

THREE SCHOLARSHIP AWARD RECIPIENTS FOR 2016

The PIADA – MDIADA – DEIADA Scholarship Award recipients

have been selected by a third party Independent scholarship

selection company hired by the Association to administer the

application and selection process in a fair and reasonable

matter. Only the children, stepchildren, or grandchildren of

the owners and employees of PIADA – MDIADA – DEIADA

Member Dealerships were eligible to be considered for the

Scholarship Awards.

Special Thanks to our 2016 Scholarship Program Award

Auction Sponsors that made the 2016 scholarship awards

possible:

• North East Pennsylvania Auto Auction, Founding

Sponsor

• America’s Auto Auction Harrisburg

• ABC Lancaster Auto Auction

• Corry Auto Dealers Exchange

• Central Pennsylvania Auto Auction

On behalf of PIADA – MDIADA – DEIADA and the GENEROUS

SPONSORING AUCTIONS LISTED ABOVE, we are proud to

announce that the Fourth Annual PIADA – MDIADA – DEIADA

Scholarship Award Recipients for the year 2016 are:

Mr. Christopher

Stuzman, who this Fall

semester will be a junior

at Penn State University

Park in University Park,

PA with a major field

of study in Engineering

Science. Christopher

made the Deans’ list, is

President of the Music

Club, and is in the

honors program. His

approved application for

this $2,000 scholarship

was submitted through

Member Dealership

Hortman’s Garage, 36 Front Street, Hop Bottom,

Susquehanna County, in Central Pennsylvania. Mr.

Stuzman is the grandson of Aleck T. Hortman.



Ms. Meghan Torok,

who this fall semester

will be a senior at

Slippery Rock University

of Pennsylvania, in

Slippery Rock, PA with

a major field of study

in Criminal Justice/

Psychology. Meghan is

part of the Phi Kappa

Phi National Honor

Society, recipient of

the Alida Merlo Award,

and received Dean’s

list recognition. Her

approved application

for this $2,000 scholarship was submitted through

Member Dealers Weber Harris Ford Lincoln Mercury

Inc., 433 Baldwin Street, Meadville, Crawford County,

in Western Pennsylvania. Ms. Torok is the daughter of

Dan and Amy Torok.

Mr. Jonathan Shoup,

who this Fall semester

will be a junior at Grove

City College in Grove

City, PA with a major field

of study in Mechanical

Engineering. Jonathan

is Vice President of

American Society of

Heating, Refrigerating,

and Air-Conditioning

Engineers (ASHRAE)

at Grove City College

and will be studying

abroad in Nantes,

France his next semester. His approved application

for this $2,000 scholarship was submitted through

Member Dealership C & M Automotive, 2594 Main

Street, Morgantown, Lancaster County, in eastern

Pennsylvania. Mr. Shoup is the son of Michael and

Cynthia Shoup.


SPECIAL THANKS TO OUR GENEROUS AUCTION SPONSORS:

Founding Sponsor

PAY IT FORWARD IN 2014

EVERY 12 | THURSDAY JULY 2016 @ MIDATLANTIC 10:00AM DEALER NEWS

Congratulations

to Mr. Stuzman,

Ms. Torok, and

Mr, Shoup on

their respective

awards. We wish

them all the best

in their college

programs and

upcoming future

careers! 3


NIADA CONVENTION REPORT FROM VEGAS; SIGN UP FOR YOURS IN PHILLY – Pgs. 6, 21

MidAtlantic

DealerNews

JULY 2016

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

Pennsylvania | Maryland| Delaware

United We Stand

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

I. A. D. A.

NJIADA STATE QUALITY

DEALER OF THE YEAR

ANTHONY PINTO,

PINTO AUTO GROUP

ROBBINSVILLE, NJ

FEDERAL CHANGES TO OVERTIME PAY

SCHOLARSHIP AWARD RECIPIENTS ANNOUNCED

MARKET CONDITIONS REPORT AND FORECAST

ANNIVERSARY SALES CELEBRATIONS


ANTHONY PINTO, PINTO AUTO GROUP -

NEW JERSEY IADA STATE

QUALITY DEALER OF THE YEAR

By Peter Salinas, Special Contributing Writer

Anthony Pinto is the owner of Pinto Auto Group, Robbinsville, NJ. He is the NJIADA State Quality

Dealer of the Year.

but I wish I had joined much earlier. There are tremendous

benefits from being a member. I met our executive director

Paula Frendel at an auction and I learned about all the benefits

for the members, and all the work the association does in

representing dealers to legislators and regulators.

Q. What steps have you taken to be compliant in all aspects

of your business?

A. Compliance is vital in our business today. Our manager

Garrett and I consistently keep up with any and all compliance

issues. It is great that the association helps with educating

dealers about compliance as well.

Q. Please give us an overview of your dealership or

enterprise. How did you get into the business, and tell us

about your business model and staffing?

A. I started detailing cars when I got out of college and started

my own business. I began selling cars here and there, so I

got my license and expanded from there. That started about

18 years ago. It was called Anthony’s Auto Spa. We moved to

Robbinsville, New Jersey in 2011. It is an excellent location,

relatively small, but we still carry about 120 vehicles in

inventory. We have rebranded it as Pinto Automotive Group.

We move 30-40 units a month. Our detailing operations

continue. We carry vehicles in the $10,000-$30,000 range

and specialize in Jeeps. My brother Tommy came on board in

the past six months. Our manager, Garrett Hoffman, has been

with me for five years and is the backbone of the dealership.

I call him our “patience guru.” We do some wholesaling as

well. I go to the auctions, mostly the Manheim Auction in New

Jersey and Manheim Pennsylvania.

Q. We understand you are a trainer?

A. Yes, I work for Anthony Robbins, and do Peak Performance

training. It is very rewarding. I’ve been a part of some very

magical moments, through helping people achieve their goals

through coaching and mentoring. We’ve helped people who

have lost everything. I’m a member of LeTip, a business

referral network. I’m also a member of the Chamber of

Commerce and am active with the Better Business Bureau.

It’s been very good for my business.

Q. How long have you been a member of your IADA? How

did you get involved in IADA leadership?

A. I’ve been a member of the New Jersey IADA for two years,

Q. What are the challenges and opportunities facing today’s

independent automotive retailer from your perspective?

A. We must exceed our customer’s expectations during every

aspect of the sale and after the sale as well. Bad reviews can

really hurt your business, so we go out of the way to make

sure our customers are very satisfied. All our customers have

both Garrett’s and my cell phone number, and they quickly

realize we stand behind our product.

Another challenge is finding the right inventory. The night

before the auction, we scan a list of vehicles and then decide

to bid on 20-30 of them. Of those, we may just bring five back

on the lot. Because we want satisfied customers, we are very

choosy about what we put on our lot. If we hit all the marks

on trust, integrity, and high-quality product, then we believe

our customers will come back to us and refer their family

and friends.

Q. How are you using the latest technology to market and

manage your business operations?

A. Yes, we’re using the VIN Scanner, AutoNiq, which is

integrated into our DMS. We’re also using CarGuru, Cars.

com and CarFax. Technology has improved our business

operations and we’re able to market our vehicles faster and

more efficiently than ever. Garrett is on top of that.

Q. What goals would you like to see for the NIADA

association locally and nationally?

A. I would most definitely like to see more coaching

and training opportunities in all facets of the automotive

retail process. I’d also like to see business coaching

opportunities — information and training that we can use

in our dealership. I would also like to see the state and

national association train the membership more on how

to become ambassadors not only for other dealers, but for

consumers as well. 3

14 | JULY 2016 MIDATLANTIC DEALER NEWS


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


PUBLIC WELCOME!

HOSTED BY: MANHEIM PENNSYLVANIA AUTO AUCTION

Saturday, Sept. 10, 2016 @ 1190 Lancaster Rd, Manheim PA

Auction will begin at 9am

ADMISSION: ADULTS 16 & UP $10 | AGES 6-15 $5 | AGES 0-5 FREE

For more information email: John.Crispeno@manheim.com

16 | JULY 2016 MIDATLANTIC DEALER NEWS

For developing information visit maapromo.com/carshow


Matthew S. Wildasin is

a principal with Boyer &

Ritter, LLC and a member

of the firm’s Closely-Held

Business, Manufacturing

and Distribution, and

Government Audit groups.

He can be reached

at 717-761-7210 or

mwildasin@cpabr.com

WHAT YOU NEED TO KNOW ABOUT

FEDERAL CHANGES TO OVERTIME PAY

By Matthew S. Wildasin

By now you’ve heard that more than 4 million additional workers nationwide are expected

to qualify for overtime, thanks to new federal regulations that go into effect Dec. 1. But for

employers, the changes issued recently by the U.S. Department of Labor at the behest of the

Obama Administration go far beyond a one-time bump in salary costs. Provisions to periodically

increase the overtime threshold – as well as changes that make even some high-earners qualify

for additional pay – means it’s time for companies to take a close look at their workforce, how

resources are allocated and future hiring strategies. Especially for smaller dealerships dealing

with tight margins, the time to start developing a plan to deal with these changes is now.

WHAT’S CHANGING DEC. 1

As of Dec. 1, workers making an annual salary of up to $47,476 will be eligible to earn timeand-a-half

after working more than 40 hours a week. That’s double the current salary cutoff

of $23,660, or from $455 to $913 a week. High-earning employees may be due something

additional as well. The new rule, issued in May, raises the threshold for these employees from

$100,000 to $134,004. Additionally, the new rules peg the basic ceiling to workers earning in

the 40th percentile of salaries in the country’s lowest income region and calls for reviewing the

overtime threshold every three years. Federal officials expect the annual threshold salary to rise

to more than $51,000 by 2020. Workers who qualify for overtime are entitled to time-and-a-half

for every hour worked, or 150 percent of their regular pay. It’s not all bad news for employers,

however. Bonuses and incentive payments can count up to 10 percent of an employee’s salary

when calculating the overtime threshold. Additionally, the new regulations don’t make changes

to the existing “duties test’’ used to determine whether an employee serves in an executive or

managerial capacity and is thus not eligible for overtime.

In general, employees do not qualify for overtime if they:

• Manage a firm or a department

• Oversee two or more employees

• Have hiring/firing authority or make recommendations

• Job entails “discretion and independent judgement’’ regarding important business matters

• Have duties directly relating to business operations or to the firm’s clients

The rules will also continue to exempt from overtime regulations outside sales employees and

certain computer-related job categories, such as programmers and software engineers.

Because various factors go into determining overtime eligibility – and the potential penalties for

failing to appropriately compensate workers – it’s a good idea to check with your CPA to make

sure you’re not leaving your company vulnerable.

18 | JULY 2016 MIDATLANTIC DEALER NEWS

NAVIGATING THE ROAD AHEAD

The impact of the new overtime rules will depend on the size of the company, but for all

employers the changes mean it is time to evaluate pay structures and time tracking mechanisms.

Bottom line: a lot of workers are now going to be qualifying for overtime. Some employers may

initially plan to cut workers or pay and, in the case of companies with limited options, that may

be the only choice. Especially for growing businesses, now is a good time to look at work flows

and see if schedule adjustments can be made to cut back on overtime. It may make sense

to hire additional employees – perhaps at a lower pay scale -- to decrease overtime needs. It

may also make sense to increase the salary of at least some existing worker to just above the

overtime threshold. Shift differentials also count toward overall salary and in some cases may

be a better option rather than a straight salary increase.

Likely the answer will be a mix of all of the above – and it may be an answer that keeps

changing. With the federal Department of Labor poised to reevaluate overtime thresholds

every four years, companies will now have to consider future labor costs almost as if they

were dealing with a renewing contract. It’s always been the case that employees represent the

largest cost for most businesses. At the end of the day, the federal overtime changes mean

hiring and employment levels will take on increased significance as companies look to expand

and compete in an ever-changing marketplace. 3


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• Open Since 1999 • Sale Every Tuesday at 10:00 AM • 6 Action Packed Lanes on

Simulcast • Video INOP Sale • Hundreds of Units Weekly • FREE Transportation to

the Auction (Minimum 5 cars – 100 mile radius) (Must have gas & be driven in)

• FREE Registration • You Call – We Haul • FREE Representation We will call

you from the block • Full Reconditioning Department • $10.00 Sale Day

Washes • DMV Instant Title Service Available • 24 Hour Security

• Centrally Located Easy access to highways

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GSA SALE

JULY 19TH

VIEW OUR PRE-SALE &

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FOR MORE INFORMATION, PLEASE CALL

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860 North Keyser Avenue, Scranton, Pennsylvania 18504


PENNSYLVANIA • NEW YORK • NEW JERSEY • MARYLAND • DELAWARE

TM

MID-ATLANTIC REGIONAL INDEPENDENT

AUTOMOBILE DEALER ASSOCIATION

Education, Networking, Money-Making Strategies,

Regulatory Compliance, Cost-Savings, and Fun.

Please mark your calendars for the

FIFTH ANNUAL MARIADA CONVENTION

NOVEMBER 5 - 6, 2016 AT LOEWS PHILADELPHIA HOTEL

PIADA and our fellow MARIADA State IADAs of New Jersey IADA, New York IADA,

Maryland and Delaware IADA all THANK OUR PAST, PRESENT,

AND UPCOMING VENDORS FOR THEIR SUPPORT OF MARIADA 2016.

ATTENTION DEALERS: The following companies have already registered for a booth at the

2016 MARIADA Exhibit Hall and will be there with information on various products and services

that can benefit your Dealership! 2016 MARIADA EXHIBITORS (to date):

ANNUAL GOLD SPONSOR

ANNUAL BRONZE AND

KEYNOTE SPEAKER SPONSOR

ANNUAL BRONZE SPONSOR

ANNUAL BRONZE SPONSOR

ANNUAL BRONZE SPONSOR

BADGE LANYARDS

REGISTER TODAY!

PIADA • 1501 NORTH FRONT ST. • HARRISBURG, PA 17102 • 717.238.9002 • WWW.PIADA.

20 | JULY 2016 MIDATLANTIC DEALER NEWS


PENNSYLVANIA • NEW YORK • NEW JERSEY • MARYLAND • DELAWARE

TM

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

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 for Dealer Members to Attend!

You Have Nothing to Lose and

Everything to Gain!

CONTACT PA – MD – DE AT 717.238.9002 OR NJ – NY AT 855.694.2324 FOR MORE DETAILS!

h

TOM KONTOS, Executive Vice

President & Chief Economist of

ADESA Analytical Services

PULSE: LATEST ECONOMIC INDICATORS

ADESA Auctions’ Chief Economist covers the economic

waterfront from GDP to SUVs. Mr. Kontos will cover the

current state of the US economy; retail new and used vehicle

sales; wholesale used vehicle supply from rentals, leasing,

repos, fleets and dealer trades; and wholesale price trends

with an eye towards their impact on salvage values and ACVs.

MIDATLANTIC DEALER NEWS JULY 2016 | 21


GARDEN SPOT AUTO AUCTION

CELEBRATES 52ND ANNIVERSARY

Ephrata, PA – Garden Spot Auto Auction celebrated its

52nd Anniversary Sale on May 24th with beautiful weather

and a large crowd. The lot was full of consignments, and a

large turnout of buyers helped the auction post a strong sales

conversion of 79%.

The auction’s outstanding reputation for putting buyers

and sellers together in a professional, profitable, and fun

atmosphere was certainly on display that Tuesday.

“We have averaged more than 80% sold for the past nine

years,” remarked Kristi Kohl, the auction’s General Manager,

“and that’s because of our customers and our employees.”

The auction provided a chicken barbeque with all the

trimmings to the dealers in attendance, hats and Tervis

tumblers were given away, and at the end of the auction cash

prizes were given out totaling over $5200.

Getting back to the business of selling vehicles, Kohl

continued, “Anniversary sales are great milestones, but we

are also always looking forward. We recently partnered with

Auction Access and Simulcast, and we are constantly striving

to add more value for the dealers who do business here each

week. I think that’s just one of the reasons why more buyers

and sellers are discovering what makes Garden Spot Auction

such a very special place to do business.”

Garden Spot auctions are held every Tuesday beginning

at 10 am. Contact the auction for more details at 717-738-

7900 or visit their website at gardenspotautoauction.com. 3

NORTH EAST PENNSYLVANIA AUTO AUCTION

HOSTS AGENT TRAINING SEMINAR IN SCRANTON AREA

North East

Pennsylvania Auto

Auction hosted the Act

152-2002 Messenger

and Agent Services

mandatory advanced education, as required by PennDOT for

Issuing Agents, at the Arcaro & Genell restaurant located in

Old Forge, PA. The restaurant provided great food courtesy of

NEPAA and it was a full house with 60+ dealers in attendance.

The class was taught by Agent Trainer Arie Garcia – who also is

Director of Operations at PIADA – MDIADA – DEIADA. Special

thanks to Jim Gaughan, Owner, North East Pennsylvania

Auto Auction and PIADA – MDIADA – DEIADA Director Lisa

Cohowicz for generously hosting the class again this year.

Also, many thanks to Dan Limongelli and Jill Simko who are

with our Annual Gold Sponsor, ProGuard Warranty. ProGuard

Warranty has been a long time sponsor of the Association; we

appreciate their continued

support and generosity.

If you need to get your

training to meet the 2-year

requirement, please see the

Agent classes list on page

23. 3

22 | JULY 2016 MIDATLANTIC DEALER NEWS


MidatlanticDealerNews-June2016-PRINT.pdf 1 6/3/16 11:00 AM

C

M

Y

CM

MY

CY

CMY

K

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

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

Sponsored by Annual Gold Sponsor ProGuard Warranty &

Annual Bronze Sponsor MyDealerOnline

August 29............... Manheim Pittsburgh Auto Auction

Sponsored by Annual Gold Sponsor ProGuard Warranty

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

Sponsored by Annual Gold Sponsor ProGuard Warranty &

Annual Bronze Sponsor MyDealerOnline

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

Sponsored by Annual Gold Sponsor ProGuard Warranty &

Annual Bronze Sponsor NextGear Capital & Autotrader

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

Sponsored by Annual Gold Sponsor ProGuard Warranty

EXIT 16

I-90 & RT. 98

FAIRVIEW, PA

“WE ARE THE DEALER’S AUTO AUCTION”

GROWING

COMMERICAL

CONSIGNMENT!

400+ DEALER

CONSIGNED

UNITS WEEKLEY!

NEXTGEAR AFC AUTO USE FLOORPLAN EXPRESS

AN ADDITIONAL 15-20 BANKS –

CREDIT UNIONS – LEASE COMPANIES

500+/– TOTAL UNITS

EVERY TUESDAY - 2:30

814-474-3900 • (877) 474-GEAA • Fax (814) 474-4969

www.greater-erie.com

“GOTTA GET TO ERIE”

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.

MIDATLANTIC DEALER NEWS JULY 2016 | 23


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

Thursday 10:00 A.M.

www.corryade.com

GARDEN SPOT AUTO AUCTION

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

Phone: 717.738.7900 / Fax: 717.738.7930

Kristi Kohl, General Manager

Kevin Luring, Marketing Manager

Tuesday 10:00 A.M.

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

Barbara Kreiser, 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.

www.manheim.com

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

Tuesday 9:30 A.M.

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.

www.manheim.com

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

Tuesday 10:00 A.M.

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

Christina Shepard, Dealer Sales Manager

Brenda Myers, Floorplan Manager

Allison Wylam, Transportation Manager

Chad Gosser, Salvage Manager

Jennifer Friedel, Online Sales

Thursday 8:00 A.M. @ Clayton Station

Thursday 8:45 A.M. @ Bel Air

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.

www.manheim.com

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.

www.manheim.com

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

www.manheim.com

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

Tad Swift, Owner & GM

Tuesday 12:00 NOON

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

24 | JULY 2016 MIDATLANTIC DEALER NEWS


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

Name on Card____________________________________________________ Exp. Date________

Card Number _____________________________________ Security Code________

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

Name on Card____________________________________________________ Exp. Date________

Card Number _____________________________________ Security Code________

MIDATLANTIC DEALER NEWS JULY 2016 | 25


PIADA ANNUAL

GOLD SPONSOR

PIADA ANNUAL

BRONZE SPONSORS

GREATER ERIE AUTO AUCTION

CELEBRATES 12TH

ANNIVERSARY!

Greater Erie Auto Auction celebrated its 12th

Anniversary with a 2 week sale. The celebration

kicked off on Tuesday, May 17th with 500+ vehicles,

prizes galore, and free hotdogs and hamburgers from

Floorplan Xpress. The Anniversary sale continued

the following Tuesday on May 24th with another

500+ vehicles, more prizes, and more free food! The

auction gave away a John Deer lawn tractor, stainless

steel tool chest, lots of hand tools, air compressors,

hats, and more! Congratulations to Todd Briggs,

Co-Owner/GM, Patty Briggs, Office Manager and

everyone else at Greater Erie Auto Auction! 3

FORM OF THE

QUARTER!

Order Your Fees

Chart Today!

MANHEIM PHILADELPHIA

AUTO AUCTION HOSTS AGENT

TRAINING SEMINAR

NEW FEES EFFECTIVE

JULY 1, 2016

PIADA–MDIADA–DEIADA

at 717.238.9002 or

use order form on pg. 25.

Special thanks to Charles Pollina, General Manager, Shannon Galette, Front Office

Manager, and everyone at Manheim Philadelphia Auto Auction for generously hosting

our Pennsylvania Vehicle Title Agent mandatory advanced training class on June 20.

Also, many thanks to Dan Limongelli and Nancy Perkins of ProGuard Warranty, our

Annual Gold Sponsor,

and Annual Bronze

Sponsors NextGear

Capital and Autotrader,

for supporting this

training event.

Our next live training

seminars at various

locations in Pennsylvania

are August 8 and 29,

September 12 and 26,

and October 24. See

page 23 for details. 3

26 | JULY 2016 MIDATLANTIC DEALER NEWS


ONLINE AUTO DEALER

SUPPLIES AND SELLING AIDS!


DEALERGOODIES DETAIL SEMINAR

Basic: September 20th ∙ Advanced: September 21st

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

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


PRODUCTS

THAT HELP

MAKE A

DIFFERENCE

Adhesive Numbers

Aerosols & Dyes

Awesome Graphic Kits

Auto Magic Products

Banners & Flags

Bed Rails & Liners

Body Moldings

Buffing Pads & Brushes

Bug-Vent Grills Items

Buy Here - Pay Here Items

Certified Products

Dealer Paperwork

Fender Well Moldings

Guide Publications

Malco Products

& MUCH, MUCH MORE!

WE SHIP TO YOU!

Meguiar’s Products

Mirror Signs

Molded Carpets

Pin Striping

Rear Spoilers

Service Supplies

Shop Equipment

Signs & Advertising Aids

Static Slogans & Numbers

Tag Screws & Holders

Towing Lights

Trunk Decals

Roof Racks

Windshield Paints

Wood Dash Kits


800-366-2141

88 Auction Road | Manheim, PA 17545 | 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# 4851-4777-3234

6/16)

THE CARLAWYER ©

By Thomas B. Hudson and Nicole Frush Munro

We’re back, passing on what we’ve recently learned about legal developments in the auto

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

Financial Protection Bureau and the Federal Trade Commission, as well as our “Case of the

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

Signed up for the CFPB’s complaint portal yet? You need to be monitoring complaints from

all sources, and the CFPB offers one more source for determining whether your customers

are unhappy with you. And taking care of complaints is one of the most effective ways of

staying out of the regulators’ crosshairs. What, exactly, are you waiting for?

FEDERAL DEVELOPMENTS

Speaking of complaints, on May 24, the CFPB released its monthly complaint report, which

highlights trends in the complaint data the Bureau 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 complaints from a particular geographic

location. The latest report focuses on complaints related to credit reporting and highlights

complaints from consumers residing in New Mexico.

Are You Involved in Title Lending? On May 18, the CFPB released a report on the title loan

business. The CFPB’s report demonstrated that 20% of borrowers who obtain a single-payment

auto title loan have their car or truck seized by their lender when they default. Evidently, that

means that 80% of these borrowers managed to get past their dire financial problems without

having their cars seized, but that narrative doesn’t advance the CFPB’s agenda. According

to the CFPB’s research, lenders renewed more than 80% of these loans on the due date

because borrowers could not otherwise repay the loan. The report examined nearly 3.5 million

anonymized, single-payment auto title loan records from nonbank lenders from 2010 through

2013. The CFPB concluded from its study that these auto title loans have issues similar to

payday loans, including high rates of consumer reborrowing, which can trigger high costs in

fees and interest.

Warranty Rule Changes on the Way. On May 18, the FTC proposed to amend the rules governing

Disclosure of Written Consumer Product Warranty Terms and Conditions (“Disclosure Rule”)

and Pre-Sale Availability of Written Warranty Terms (“Pre-Sale Availability Rule”) to implement

the E-Warranty Act, which allows for the use of websites to disseminate warranty terms to

consumers in some circumstances. The Disclosure Rule specifies the aspects of warranty

coverage that must be disclosed in written warranties, as well as the exact language that must

be used for certain disclosures with respect to state law regarding the duration of implied

warranties and the availability of consequential or incidental damages. Under the Disclosure

Rule, warranty information must be disclosed in simple, easily understandable, and concise

language in a single document. The warrantor must disclose any limitations on the duration of

implied warranties on the face of the warranty, as mandated by the Magnuson-Moss Warranty

Act. The FTC proposes to revise the Disclosure Rule to specify that disclosures mandated to

appear ‘on the face’ of a warranty posted on an Internet website or displayed electronically

must be placed close to the text of the warranty terms begins. The Pre-Sale Availability Rule

details the methods by which warrantors and sellers must provide warranty terms to consumers

prior to sale of the warranted item. The FTC proposes to revise the Pre-Sale Availability Rule

to allow warrantors to post warranty terms on websites if they also provide a non-Internet

method for consumers to obtain the warranty terms and satisfy certain other conditions.

Comments on the proposed rule are due by June 17.

So there’s this month’s roundup! Stay legal, and we’ll see you next month. 3

28 | JULY 2016 MIDATLANTIC DEALER NEWS


ADESA PITTSBURGH HOLDS THEIR

LARGEST SALE OF THE YEAR!

ADESA Pittsburgh Auto Auction opened their doors for a huge

two day sale on Monday and Tuesday, May 23 – 24. The

event kicked off on Monday afternoon with a 300+ vehicle

sale followed by a free social and concert by “The Clarks”

in the evening. On Tuesday the auction held their largest

consignment sale of the year with prizes and giveaways in the

lanes! Congratulations to General Manager Chris Angelicchio

and everyone else at ADESA Pittsburgh on a great event! . 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

MIDATLANTIC DEALER NEWS JULY 2016 | 29


KONTOS KOMMENTARY

CURRENT USED VEHICLE MARKET CONDITIONS

SUMMARY

Average wholesale values fell relative to April, though they remain up on a year-over-year basis

largely because of the price strength of trucks. Retail used vehicle sales were flattish on a

year-over-year basis and certified pre-owned sales were down. This limited the demand-side

support for wholesale values receiving downward pressure from supply growth.

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 May averaged $10,709 – down

1.4% compared to April and up 2.4% relative to May 2015. Average prices for most vehicle

model class segments were down on a month-over-month basis, including many of the truck

segments.

Average wholesale prices for used vehicles remarketed by manufacturers were up 2.5% monthover-month

but down 2.8% year-over-year. Prices for fleet/lease consignors were down 0.6%

sequentially and down 0.8% annually. Dealer consignors registered a 1.9% decrease versus

April but a 2.3% increase relative to May 2015.

Data from NADA showed a 0.5% year-over-year decrease in retail used vehicle sales by

franchised dealers and a 1.2% increase for independent dealers in May, while both were up

significantly up month over month. April CPO sales were down 4.8% month-over-month, the

second straight monthly decline, and were down 4.6% year-over-year, according to figures

from Autodata.

WHOLESALE USED VEHICLE PRICE TRENDS

Average Prices ($/Unit)

Latest Month Versus:

May-16 Apr-16 May-15 Prior Month Prior Year

Total All Vehicles $10,709 $10,866 $10,454 -1.4% 2.4%

Total Cars $8,950 $9,044 $9,103 -1.0% -1.7%

Compact Car $6,825 $7,003 $7,058 -2.6% -3.3%

Midsize Car $8,035 $8,127 $7,927 -1.1% 1.4%

Fullsize Car $7,851 $7,860 $7,861 -0.1% -0.1%

Luxury Car $13,750 $13,828 $13,993 -0.6% -1.7%

Sporty Car $14,238 $14,415 $13,892 -1.2% 2.5%

Total Trucks $12,658 $12,819 $11,967 -1.3% 5.8%

Mini Van $7,925 $8,582 $7,584 -7.7% 4.5%

Fullsize Van $13,327 $13,457 $12,749 -1.0% 4.5%

Compact SUV/CUV $10,841 $11,033 $10,823 -1.7% 0.2%

Midsize SUV/CUV $11,471 $11,619 $10,502 -1.3% 9.2%

Fullsize SUV/CUV $13,504 $13,221 $12,368 2.1% 9.2%

Luxury SUV/CUV $19,183 $19,121 $18,844 0.3% 1.8%

Compact Pickup $9,282 $8,674 $8,101 7.0% 14.6%

Fullsize Pickup $15,813 $15,903 $14,584 -0.6% 8.4%

Source: ADESA Analytical Services. April revised

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.

30 | JULY 2016 MIDATLANTIC DEALER NEWS

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