DealerNews - piada

DealerNews
www.pennsylvaniaiada.com FEBRUARY 2012
Pa
capitol matters
É
É
É
É
É
Vehicle Board Welcomes PIADA
In-Transit Tags Update
Document Preparation Fee -
Annual Adjustment
Transportation Study Moves to
State Budget
SBA Headed Toward Cabinet
Level Position
Change Service Requested
PIADA
1501 North Front Street
Harrisburg, PA 17102
PRSRT STD
U.S. POSTAGE
PAID
Harrisburg, PA
Permit No. 557
Affiliated with NIADA
@piadatoday
UNDER CONSTRUCTION:
PIaDa Mid-atlantic
Conference Dates
September
9–11, 2012
and Survey page 7

Why are more dealers
switching to Preferred?
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Throughout the year in 2010, 922 more dealers
switched to Preferred Warranties. What do these
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Service contracts fully insured by an A- rated
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Mention PRomo code PA02
Ask how you can get up to a $100 VISA GIFT cARd.
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Warranties and service that go the extra mile.
Linda Woodward, Sales/F&I Manager (on left);
Christine Rupe, Owner, Keim Pre-Owned, Lancaster, PA
“The warranty company we were using
went out of business. One week they
were paying claims, the next week they
were closed. Then we found Preferred
Warranties, and it’s been a great
relationship ever since. They’re easy
to work with, and if they say they
cover it, they cover it. Never a
hassle, never a gray area.”
Christine
Owner, Keim Pre-Owned

DealerNews
FEBRUARY 2012
www.pennsylvaniaiada.com
Pa
Affiliated with National Independent Auto Dealers Association
DepartmeNts & articles
From the President .....................................6
Document Preparation Fee Annual Adjustment 2012 ............6
PIADA Mid-Atlantic Conference Dates and Survey ...............7
Executive Director’s Message .............................8
New PIADA Code of Ethics Poster and Certificate ..............10
Kontos Kommentary ...................................12
Report From the Road .................................14
Controlling Expenses at Your Dealership ....................20
PennDoT New Electronic In-Transit Registration Plates
System Memo .....................................25
Legal Corner ........................................26
Letter from Consumer Financial Protection Bureau .............29
From Counsel ........................................30
programs & offers
Code of Ethics ....................................6 & 10
PIADA Mid-Atlantic Conference Invite ........................7
Forms ............................................ 22
Membership Application ................................23
Issuing Agent Training Courses ...........................23
Auction Directory .....................................24
aDvertisers
ABC Lancaster
Auto Auction ..........16-18
Adesa ..................19
Auto-Use ................25
Bel Air Auto Auction ........25
Central Pennsylvania
Auto Auction ............32
Corry Auto Dealers Exchange ..21
Counselor Library ..........28
CVR. . . . . . . . . . . . . . . . . . . . 18
Dealer goodies ...........11
PIADA logo is a trademark of the PIADA
4 | FEBRUARY 2012 www.PeNNSylvaNIaIaDa.CoM
@piadatoday
Diamond Warranty Corp. ......5
greater Erie Auto Auction ....22
gWC Warranty. ............31
Harrisburg Auto Auction ......2
Kramer Insurance Center ....22
Mechanics’ Choice .........15
North East Auto Auction .....13
Preferred Warranties .........3
Shumaker Williams P.C. .....29
Usedcars.com/Dealix ........9
officers aND Directors
PRESIDENT
Steve Worley ...... 717-732-2051
PRESIDENT-ELECT
Tom Brandis ...... 215-257-4995
CHAIRMAN oF THE BoARD
Andy gabler ...... 814-898-2886
TREASURER
John DeFilippo ...... 610-532-8771
SECRETARY
Tad Swift ......814-664-7721
VICE-PRESIDENTS
Michael Brill ....... 215-781-1818
Tim Kyner ...... 717-860-3208
george Smouse ...... 724-887-7777
Jay Zimmerman ...... 717-766-7656
ADVISoR
Tim Swift ...... 814-474-3900
Denny Angelicchio ...... 724-925-4700
Michael Colbert ......814-827-3896
Jim Cuce ...... 215-962-6742
Mark Deal ...... 717-432-4694
Jeff Dreier ......570-675-5696
Kevin Luring ...... 717-738-7900
Michael Mansour ....... 724-658-121
grant Miller ......800-248-8026
Fran Morelli ......814-265-1330
Kevin Novitsky ...... 570-254-6463
staff
ExECUTIVE DIRECToR
Reg Evans .... revans@piada.org
717-238-9002 x28
ASSoCIATE DIRECToR
Randy Swartz ..... randy@piada.org
717-238-9002 x22
oNLINE DEPARTMENT
Chiffon Wilson ....chiffon@piada.org
717-238-9002 x15
Sue Mcguire ...... sue@piada.org
717-238-9002 x29
MEMBERSHIP SERVICES
Aracely (Arie) garcia .......arie@piada.org
717-238-9002 x13
ASSoCIATE EDIToR
Shannon Becker ...shannon@piada.org
717-238-9002 x18
DEALER DEVELoPMENT
Wendy Basehore. .....wendy@piada.org
717-238-9002 x11
Nicole Autry. .....nicole@piada.org
717-238-9002 x26
TITLE CALL CENTER
Ruth Wertz ...... ruth@piada.org
717-635-2595 x31
FINANCE DEPARTMENT
Ping goslawski .......ping@piada.org
717-238-9002 x12
To keep the PA Dealer News on schedule, certain deadlines must
be observed. All information is due at the Pennsylvania Independent
Automobile Dealers Association (“PIADA”) office in Harrisburg thirty
days prior to the publication date of each issue.
The PA Dealer News is a publication of the PIADA, 1501 North
Front Street, Harrisburg, PA 17102. The magazine is published
monthly in Harrisburg and mailed to approximately 7,500
Pennsylvania new and used licensed vehicle dealers. Advertising
rates available on request. If you have any questions please call
the PIADA office at (717) 238-9002.
PIADA was established in 1955, and chartered in 1959 under the
Non-Profit Corporation Laws of the Commonwealth of Pennsylvania.
The statements and opinions expressed herein are those of
the individual authors and do not necessarily represent the views
of the PA Dealer News or the PIADA. Likewise, the appearance of
advertisers, or their identification as members of PIADA, does not
constitute an endorsement of the products or services featured.
Editorial and advertising requests should be directed to the
Editor: PA Dealer News, PIADA, 1501 North Front Street, Harrisburg,
PA 17102. Telephone (717) 238-9002, FAX (717) 238-3870 or
e-mailed to revans@PIADA.org.
This magazine is a publication of the PIADA, but is mailed to all
dealers in the state in an effort to encourage non-members to join
the PIADA. For over 50 years we have worked and represented the
independent car dealer in Pennsylvania. We need your support.
Copyright © 2012 by Pennsylvania Independent Automobile
Dealers Association. All Rights Reserved.
PUBLISHINg SERVICES PRoVIDED BY
WAVELINE DIRECT, LLC
(Home of www.printlion.com)
1-800-257-8830

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Insured By:

FRoM THE PRESIDENT
Steve Worley
The PIADA
CoDe of
eThICs
We will employ
truth and accuracy
in advertising.
We will strive
constantly to
improve our
business methods.
We will stand by
a guarantee given
with the sale of
a motor vehicle.
We will not perform
any act to discredit
our industry.
We will guarantee
the title of every
vehicle sold.
We will furnish every
purchaser an
approved bill of sale.
We will comply
with Federal and
State laws.
We will encourage
the American system
of free enterprise.
6 | FEBRUARY 2012 www.PeNNSylvaNIaIaDa.CoM
VEHICLE BoARD SUPPoRTS LICENSED
DEALERS VERSUS uNlICeNSeD aND
Illegal CurBStoNerS
Well, we made it through the Holidays. Now we just have a short time to get ready for tax
season. It’s also time for the curbstoners to start popping up.
vehICle BoarD
PIADA had a good meeting with the Pennsylvania Vehicle Board last month.
The Vehicle Board is going to go after the curbstoners in full force. As you know, the curbstoners
take a chunk of our sales and are illegal unlicensed operations. The curbstoners
have an unfair advantage over dealers who are licensed, comply with the law, pay taxes, and
have overhead.
If you know of any curbstoners, please inform the Vehicle Board by reporting it electronically
to the Pennsylvania Department of State at www.doscomplaintform.state.pa.us.
MeMBerShIP – It’S BaSICally Free wheN you uSe the
PIaDa CouPoN Book
Again, I urge you to join PIADA. As an association, PIADA is working to keep you informed
and up to date with all that is happening.
The membership coupon book that you receive more than makes up for the annual
membership fee. We have discounts from auctions and vendors that you are going to use
at some point, so why not do so at a discount and cover the cost of your membership. That
goes for our new and renewal members as well. Remember your coupon books when you
need to buy a vehicle or a good or service from one of our vendors.
DoCuMeNt PreParatIoN Fee For 2012
To be fair to dealerships, PIADA sought and received authority from Pennsylvania Act 77 of
2008 for annual inflation adjustments of the document preparation fee. See box below for
details regarding what licensed dealers as agents may charge in 2012.
PIaDa ProvIDeS value to MeMBerS
PIADA provides services, products, coupon book for industry discounts, education,
monthly magazine, periodic email blasts, government relations, to our member dealerships,
auctions, and industry-related vendors.
We are trying to obtain group Health Insurance at discount rates for our Members.
For initial or renewal of PIADA Membership, please contact our Membership Director at
Shannon@piada.org or 717.238.9002.
We are here to support our Members. Thank you.
DoCuMeNt PreParatIoN Fee aDJuStS For 2012!
The new maximum document preparation fee for 2012 is $108 for paper-based title
and registration work, or $129 for electronic document preparation work. Such work
must be actually performed by the licensed dealer that also has an agent contract with
the Pennsylvania Department of Transportation.
It takes a few months for the statistics regarding the previous calendar year to arrive
from the U.S. Department of Labor (“DoL”). on January 19, 2012, DoL announced the
Urban Consumer Price Index (“CPI-U”) increase over the past 12 months. Based on
a CPI-U increase of 3.0%, the document preparation fee for 2012 increased from the
2011 figures of $105 and $125 respectively to the 2012 figures of $108 paper and
$129 electronic document preparation work stated above.

Mark Your
Calendars!
September
9-11, 2012
SUrVeY QUeStION...
IF we BuIlD a PIaDa aNNual CoNFereNCe/
CoNveNtIoN For SePteMBer 9–11, 2012
(Sunday–tuesday) IN atlaNtIC CIty, NJ, wIll you
CoMMIt to atteND aND aCtually Show uP!???
Please let us know by calling Shannon at 717.238.9002 ext. 18 or email
Shannon@piada.org or fill out and fax this page by checking Yes or No Thanks with your
dealership information to 717.238.3870. Your response is all we need!
Dealership Name _____________________________________________________________
Dealership Contact Person _____________________________________________________
Address _____________________________________________________________________
City _________________________________________________________________________
_____________________________________________________________________________
Phone Number ________________________________________________________________
Email Address ________________________________________________________________
convention 2012: � Yes or � No tHaNKs
Would you prefer to attend in 2013: � YES or � No THANKS
THE FoLLoWINg IS WHAT WE ARE PLANNINg FoR YoU, oUR DEALERSHIP AND AUCTIoN
MEMBERS, PoTENTIAL MEMBERS, VENDoRS, AND oTHER INDUSTRY FRIENDS.
Mid AtlAntic RegionAl independent AutoMobile
deAleRs AssociAtions confeRence tM
(okay, call it a Convention if you want…)
Alias the “MARIADA” ConferenceTM…El ”MAR” in Spanish means “Ocean”,
which fits the location, the vast subject matter we will cover, and the fun we will have.
You already know what “IADA” stands for…in English.
sunday, september 9, 2012 thru tuesday, september 11, 2012
atlantic city, New Jersey
Specific location to be announced.
PIaDa invites our members and potential members,
and has invited multiple other state IaDas (De, MD, NJ, Ny, oh) and their members.
Education • Connections • Vendors • Speakers • Golf • Casino • Bingo
Dinner Entertainment • Family Activities • and more!!
Details to be announced soon at www.mariadaconference.com and
www.pennsylvaniaiada.com.
teN reasoNs for Not atteNDiNg tHat sHoUlD Be overcome
reason 10: Can’t be away from Lot on Sale Day
response 10: So we will have it on a Sunday when Pa lots are closed. roll in earlier
in the weekend or on Sunday to start the festivities.
reason 9: The economy is bad and money is tight so I can’t afford it.
response 9: This Conference will cost less and be worth more by packing in much
for a reasonable cost (and may be a deductible business expense). So you will be glad
you went.
Reasons 8 and 7 will be published in the March PA Dealer News.

ExECUTIVE DIRECToR’S MESSAgE
Reg Evans
bPIaDa
Conference/
Convention
Knowledge and Fun,
September 9–11,
2012. And we are
planning a Mid-
Atlantic Region
Independent
Automobile
Dealers Conference
for PIADA members
AND potential
members. other
State IADAs and
their member and
nonmember dealerships
and auctions
may join us. We
are in the planning
stages, with several
excellent speakers
already ready. But
the main thing we
are planning is
for this to be an
informative and
enjoyable event
worth your while to
attend. If we build
it, we hope you will
join us. Please
mark Sunday,
September 9 as
the start date and
mid-day Tuesday
September 11 as
departure time, or
whatever part of
it you can attend.
We will keep you
posted.
8 | FEBRUARY 2012 www.PeNNSylvaNIaIaDa.CoM
THE IMPoRTANCE oF CaPItol
Capital is important. So is Capitol, as in the State, County, Local, and Federal govern-
ment “Capitols” and the regulators that work with our Independent Automobile Dealer
industry. Let’s run through some of the list of Capitol-related items of importance to our
used car dealer and auction industry.
PennDot – In-transit tags – new electronic processing system became effective January
8, 2012. If you are an online Agent with authority to issue In-Transit Tags under the new
electronic processing method, please be aware that you order your In-Transit Tags directly
from PennDoT by using the MV-351 form. PIADA can assist LoCAL dealers with In-Transit
Tag transactions. otherwise, CVR can assist dealers that are on-Line Agents in becoming
computer-able to process electronic In-Transit Tags.
vehicle Board Meeting. PIADA President Steve Worley and I had a good meeting with the
Pennsylvania Vehicle Board members as part of their monthly meeting their recent January
4, 2012 meeting. We also met with the Board’s prosecutors from BPoA. We thank all
of them for their courtesy and their expressed interest, willingness, and continued efforts
to enforce against curbstoning and bad actors in our industry. We wish them continued
success. To help them keep our industry clean, they welcome us reporting curbstoning to
them. Contact them on their website reporting mechanism at www.doscomplaintform.state.
pa.us/.
Banking Department. This agency that issues installment seller and sales finance company
licenses required before we may finance vehicle purchases by our customers has been
very open to dialogue with the PIADA, which openness and recognition of our industry’s
concerns we appreciate very much.
revenue Department. And revenue, and revenue, and revenue. The challenge of the
State Budget and how to fund the transportation budget in this Commonwealth is one of
the great issues facing this Commonwealth and most other States. This revenue reference
leads us to recognize the decisionmakers we have elected.
legislators and the governor. Transportation funding plan. We are anticipating governor
Corbett’s announcement of a transportation funding plan at or prior to his budget address
scheduled for early February. It’s not easy raising more than $2 Billion. And from a small
business and household perspective it is really not easy paying for it either. We trust that
our elected officials will come up with a reasonable plan that makes sense and will continue
to value our perspective and concerns as local small business owners, heads of households,
parents, community supporters, and taxpayers.
President. In January, President obama proposed raising the Small Business Administration
to a Cabinet level position. Small businesses matter and were not the cause of the
banking and financial crisis from which we are working to recover and thrive.
Thanks to Our Industry Friends. In this issue we have articles by vendors that are small
businesses providing guidance and insight to our dealership small businesses. We have
advertisements from our auction members and from vendor businesses small and large and
even a brand new business seeking our members as customers. When it is your business,
it’s big business. Everything matters that affects your bottom line. The fact that tax season
is upon us and tax refunds approach gives us hope for a reinvigorated public ready to buy
vehicles. We are small businesses trying to do well so that we can provide the basics to our
families while being a good citizen in our communities.
Thanks to Our Members. Thank you from your trade association, the PIADA, for your support
in responding to our recent Health Insurance Survey requests so that we can serve you
better. We appreciate and are glad for the beginning purchases of our Code of Ethics poster
framed for the walls of dealerships. We will print some more and be ready for your orders.
We have a new sign out front to let people know that we are not only a trade association but
also operate a subsidiary service provider of title, tag, and notary services for dealers and
the general public.
May you utilize your Capital well this month. And may our friends we have voted into responsibility
as Executives and as Legislators in the State Capitol and U.S. Capitol do well
with difficult decisions that, by affecting small businesses and the general public, affect our
dealerships, auctions, and vendors.

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Special Programs & Discounts
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NeW piaDa coDe of etHics poster
aND certificate!
put them on the wall and
The Pennsylvania Independent
Automobile Dealers Association
Call pIADA to order NOW!
717-238-9002
Code Of Ethics
We will employ truth and accuracy in advertising.
We will strive constantly to improve our business methods.
We will stand by a guarantee given with the sale of a
SAMPLE
motor vehicle.
We will not perform any act to discredit our industry.
We will guarantee the title of every vehicle sold.
We will furnish every purchaser an approved bill of sale.
We will comply with Federal and State laws.
We will encourage the American system of free enterprise.
or email Shannon at
shannon@piada.org.
February 2012
impress your customers!!
PIADA Members may obtain our new
Code of Ethics Poster (17" x 22")
and Certicate for $39.99, plus
shipping. oR make it easy, and
receive the poster framed for
$60 total cost, plus shipping.
Framing available for the poster
and certicate at an additional
charge.
To: All Customers of this Dealership
FRoM: The Pennsylvania Independent Automobile Dealers Association (“PIADA”)
SUBJECT: Dealership Compliance with PIADA Code of Ethics
The Pennsylvania Independent Automobile Dealers Association, also known as the PIADA, is the trade
association for Vehicle Dealerships operating in the Commonwealth of Pennsylvania. To become a Member
of the PIADA, the Dealership must commit to comply with The PIADA Code of Ethics, to treat Customers and
Purchasers of vehicles with honesty and respect, and to act in good faith to comply with all applicable vehicle
sales and related laws. The Dealership listed below is a Member in good Standing with the PIADA for the
period stated herein.
You, the All Important Customer of the undersigned Dealership, may contact the PIADA by telephone or through
the PIADA website to confirm the Membership Status of this Dealership.
By: __________________________________________________ [[[Valid only with PIADA Raised
SEAL]]]
Reginald S. Evans, Executive Director, PIADA
To: All Customers of this Dealership
FRoM: ______________________________________________ (“Dealership”)
SUBJECT: Dealership Compliance with PIADA Code of Ethics
This Dealership is committed to comply with The PIADA Code of Ethics, to treat Customers and Purchasers
of vehicles with honesty and respect, and to act in good faith to comply with all applicable vehicle sales and
related laws.
By: ___________________________________ for _________________________________________ (“Dealership”)
______________ [[[type name authorized to sign for Dealership]]],
______________ [[[type Title (e.g., President, owner…]]]
[[[Insert:
DEALERSHIP NAME,
STREET ADDRESS,
TELEPHoNE NUMBER,
WEBSITE ADDRESS oF DEALERSHIP,
PA VEHICLE BoARD LICENSE NUMBER oF DEALERSHIP.]]]
CertIFICate oF MeMBerShIP
valid _____ 2012 to _____ 2013
Pennsylvania indePendent automobile dealers association
1501 North FroNt Street • harriSburg, Pa 17102 • 717.238.9002
www.pennsylvaniaiada.com • www.piada.org

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KoNToS KoMMENTARY
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
12 | FEBRUARY 2012 www.PeNNSylvaNIaIaDa.CoM
CURRENT USED VEHICLE
Market CoNDItIoNS
SuMMary
Wholesale prices were “steady as she goes” in December after mild seasonal
softening in November. Retail new and used vehicle demand in December closed the
year on a positive note and provided support for wholesale prices, especially in light of
continued tight used vehicle supply.
We have often commented here and elsewhere that used vehicle sales tend to be
more “recession-resistant” than new vehicle sales, and 2011 bore out that axiom.
Retail used vehicle sales have now more than recovered the ground they lost during
the recession and had their best year since 2006 (27.6 million in 2011 versus 24.5
million in 2009 and 27.4 million in 2006). By contrast, new vehicle sales, while
increasing significantly since hitting bottom in 2009 (12.8 million in 2011 versus
10.4 million in 2009), remain well below pre-recession levels (16-17 million). Still, the
improvement in new vehicle sales is an encouraging sign for both the economy and for
future used vehicle supply.
DetaIlS
According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle
Prices by Vehicle Model Class1 , wholesale used vehicle prices in December averaged
$9,878 – up 0.1% compared to November and up 0.5% versus December 2010. Price
drops tended to be concentrated in the truck segments, although compact cars also
took a bit of a hit during the month.
Manufacturers registered a 2.5% month-over-month price increase and a 4.4% yearover-year
rise. Fleet/lease consignors experienced a 1.9% sequential price decrease
and a 1.5% annual increase. Dealer consignors saw a 1.3% average price increase
versus November and a 3.4% uptick versus December 2010.
Based on data from CNW Marketing/Research, retail used vehicle sales in December
were up 6.9% year-over-year for franchised dealers and 14.3% for independent
dealers. on a month-over-month basis retail used vehicle sales were up more than
16% for the two groups combined. Certified used vehicle sales in December were up
14.2% versus November and up 14.1% versus prior year according to Autodata.
wholeSale uSeD vehICle PrICe treNDS
Average Prices ($/Unit) Latest Month Versus:
Dec-11 Nov-11 Dec-10 Prior Month Prior Year
total all vehicles $9,878 $9,869 $9,833 0.1% 0.5%
total Cars $9,011 $8,872 $8,618 1.6% 4.6%
Compact Car $6,637 $6,721 $6,221 -1.2% 6.7%
Midsize Car $7,606 $7,578 $7,116 0.4% 6.9%
Fullsize Car $5,293 $5,532 $7,077 -4.3% -25.2%
Luxury Car $13,528 $13,396 $13,710 1.0% -1.3%
Sporty Car $12,474 $11,954 $11,479 4.3% 8.7%
Total Trucks $10,838 $10,957 $11,176 -1.1% -3.0%
Mini Van $7,698 $7,870 $7,661 -2.2% 0.5%
Fullsize Van $9,713 $9,866 $8,801 -1.5% 10.4%
Mini SUV $10,271 $10,190 $10,279 0.8% -0.1%
Midsize SUV $9,559 $9,754 $10,168 -2.0% -6.0%
Fullsize SUV $13,106 $13,486 $14,071 -2.8% -6.9%
Luxury SUV $19,798 $19,845 $20,497 -0.2% -3.4%
Compact Pickup $7,441 $7,398 $6,987 0.6% 6.5%
Fullsize Pickup $10,974 $11,179 $11,424 -1.8% -3.9%
Source: ADESA Analytical Services.
1The analysis is based on nearly six million annual sales transactions from over 170 of the largest U.S. wholesale auto auctions, including those of ADESA
as well as other auction companies. ADESA Analytical Services segregates these transactions using the J.D. Power and Associates Vehicle Segmentation
guide to study trends by model class.
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.

exeCuTIve DIreCTor
reg evans
717-238-9002 ext. 28
revans@piada.org
PIaDa StaFF/DePartMeNtS
DeAler seT-uP unIT
• New Dealerships
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wendy Basehore
(717) 238-9002 ext. 11
wendy@piada.org or
Nicole autry
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nicole@piada.org
MeMbershIP
• Membership Applications/
Renewals
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Shannon Becker
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shannon@piada.org or
arie garcia, Office Manager
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arie@piada.org
TITle CAll CenTer
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ruth wertz
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on-lIne regIsTrATIon
DePArTMenT
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Chiffon wilson
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Sue Mcguire
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ACCounTIng
• Accounts Receivables
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TrAInIng InsTruCTor
randy Swartz
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REPoRT FRoM THE RoAD
John is a graduate
of the University of
Maryland and Troy
University. He has
over 25 years of
insurance/automotive
experience.
Mechanics’ Choice
Warranty Co. is a
16 year old, A+ rated,
warranty company
based in
Mechanicsburg,
Pennsylvania.
14 | FEBRUARY 2012 www.PeNNSylvaNIaIaDa.CoM
to walk or not to walk,
now that’s an
interesting question!
by John R. Shaddock, MBA
Partner, Mechanics’ Choice Warranty Co.
I have been out personally visiting with loyal dealer clients that use our warranties
and gAP products and also those dealers that we would welcome as new clients.
During my visits I noticed some differences in how and when they approach potential
customers that arrive on their lots.
This began to fascinate me in that some go out and visit with a customer as soon
as they arrive while others tend to hold back. Certainly I’m not implying that there is
a right way or wrong way to handle this. Frankly we have busy dealerships using the
“Not Walk” method as well as busy dealerships using the “Walk” method. I found
it very interesting to ask why they utilize their specific approach and am happy to
share with you some of the logic that was mentioned.
NoteS FroM the “walk” DealerS:
The logic most often mentioned by the “Walk” dealers was to welcome the customer
to their lot and let them know they were there to answer any questions that they may
have. Some dealers would also ask if there was a specific type of vehicle or price
point they were looking for so that they could efficiently direct them to the appropriate
vehicles.
Most dealers using the walk method said that the first conversation would
frequently be brief. Dealers said they could determine within the first minute or so
if the person wanted them to stay or leave. Many also mentioned that they were
able to determine how serious the customer is about buying a vehicle in this early
encounter.
Those dealers that do walk noted that if someone is on their lot looking at a car
during the rain or snow this pretty much guarantees that the customer is a buyer
and not just a looker. Some dealers keep more than one umbrella handy so that
they can go out and offer it to the customer in such circumstances. A nice touch
that I’m sure is appreciated!
NoteS FroM the “Not walk” DealerS:
The reason most often given by dealers that said they don’t walk out and immediately
greet customers was that they didn’t want the customer to feel pressured. In
fact one of our dealers that I visit fairly often even has a sign at the entrance to their
lot explaining that they welcome customers but don’t want to pressure them and
asks that they come to the office if they need help.
Some of these dealers feel that they can also use the initial time someone is on
their lot to size up the seriousness of the customer by observing them. If they hover
by a single vehicle or go back and forth between just a couple of vehicles then they
go out with the keys for the vehicles in hand to greet them.
Whether you are a walk or not walk dealer depends on the approach you are
comfortable with. Again, there isn’t a right or wrong strategy here. If it’s effective for
you then that’s all that counts! 3

MECHANICS’
CHOICE WARRANTY
COMPANY
STABILITY
Over the years many auto warranty companies have come
and gone while Mechanics’ Choice has quietly grown into
one of the most stable companies in the industry.
Since 1995, Mechanics’ Choice, the BEST choice.
Providing vehicle service contracts and GAP policies.
A+ Rating
PIADA
4902 Carlisle Pike, PMB 229 • Mechanicsburg, PA 17050
Phone: 800-269-5544 • Fax: 717-761-8806
www.mechanicschoicewarranty.com

FIRST SALE
March 2012!
1,200 CARS EXPECTED