WARNING: Adverse Action Letters Matter

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VIRGINIASPRING 2019 INDEPENDENT NEWS

GENERAL ASSEMBLY POST-SESSION HIGHLIGHTS WARNING: Adverse Action Letters Matter

Reassignment Form (VAD 20) Update

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493311_MAN_VIADA_Fredericksburg _ Harrisonburg FP Ad 8.5x11 R1.indd 1 3/5/19 12:00 PM CONTENTS SPRING 2019

6 VIADA CPO for Retail and BHPH IBC Membership Application

8 DEALER DAY 2019 LINE-UP

Symbol of Quality

The Virginia Independent News SPRING 2019

Virginia Independent Automobile 2 SPRING INTO ACTION Dealers Association 11 ARE YOU AWARE THAT YOU Spring is a time of action. 4700 Thoroughgood Square SHOULD BE GETTING It’s a time to do your spring ADVERSE ACTION LETTERS Virginia Beach, VA 23455-4043 cleaning and a time to get

(757) 464-3460 started on those projects that TO YOUR CUSTOMERS? It has come to my attention (800) 394-1960 you’ve been putting off over of a number of lawsuits Fax: (757) 299-6331 the winter. [email protected] involving dealers that are being sued for not sending VIADA.org an Adverse Action Notice. — VADealerRecertification.com 12 GENERAL ASSEMBLY POST- — SESSION HIGHLIGHTS facebook.com/infoviada — Jamie Davis EXECUTIVE DIRECTOR & EDITOR [email protected] 3 AROUND THE MAGAZINE PRODUCTION COMMONWEALTH ProfessionalMojo.com I have traveled all across [email protected] this beautiful state the past 14 RETAIL INNOVATION KEY IN few months and wanted to DEALER STRATEGY PRINTING & MAILING share with everyone some of A walk through the customer- the great things our district CarDoozy / Lewis Color facing side of the EchoPark presidents are doing. Automotive store in Charlotte, N.C., that has the feel of a 4 STRENGTH IN NUMBERS cafe, not a car dealership. As a dealer, you should take this opportunity to review A VIADA Publication 16 THE CARLAWYER© CASE OF your operation and see if ©2019 you need to freshen up your THE MONTH image. The statements and opinions 17 VIADA LADIES AUXILIARY expressed herein are those of the GIVING BACK WITH individual authors and do not 5 REASSIGNMENT FORM (VAD necessarily represent the view 20) UPDATE! ENDLESS ENERGY of the Virginia Independent Andrew Wiley with Consumers The VIADA Ladies Auxiliary Automobile Dealers Association. Auto Warehouse reached seem to have endless energy Likewise, the appearance of out to us in December recently with so many advertisers, or their identification about an issue he had with projects and spreading as members of VIADA, does not his local DMV office about goodwill across the constitute an endorsement of the reassignments. Commonwealth. products or services featured. 18 NEW & RENEWED MEMBERS

THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 | 1 “SPRING” INTO ACTION I am writing this article on the 2nd of March, but by the time you read it winter will be over and it will be spring. Springtime is my favorite time of year. We finally get to put those short, cold days behind us, knowing longer, warmer days of summer are coming. Birds are chirping, flowers are blooming, and the bleak landscape of months past is changing to vibrant green.

Spring is a time of action. It’s a time to do your spring cleaning and a time to get started on those projects that you’ve been putting off over the winter. Spring is also a great time for you to get more involved in VIADA and take advantage of all our association has to offer!

Start by attending Dealer Day on Tuesday, May 14th, in Charlottesville. This is a great opportunity for you to further your education and learn things that you can take back to your dealership to implement right away. The speakers at Dealer Day are always great. You are sure to learn something that will have an immediate positive impact on your business. There BRAD WHITE will be numerous vendors at the event to share their products and services to help grow your BLUEGRASS AUTO SALES dealership. Finally, you will have the opportunity to network with other dealers from all over PRESIDENT, VIADA our great Commonwealth.

In addition to attending Dealer Day, I hope you will commit to attending your district meetings. These meetings are a great place for you to network and share ideas with your fellow dealers while enjoying a great meal. You will learn about the latest issues that could impact your business, the newest member benefits, and important regulatory changes. Additionally, district meetings are often sponsored by a vendor whose product or service can help your business. With so much to offer, you don’t want to miss your next district meeting.

In closing, I hope you will “Spring into action” and attend Dealer Day and your next district meeting. I’m planning to get to at least one meeting in every district in the coming months and look forward to meeting as many of our members as possible. Until then, happy Spring! n

2018-2019 BOARD OF DIRECTORS District 3 / Roanoke Area PAST PRESIDENTS STATE OFFICERS President: Brad White, Bluegrass Auto Sales Sandra Moss, Moss Motor Company Chairman of the Board John Porter, Porter’s Automotive, Inc. Don Boucher, Courtesy Auto Sales Bobby Steele, Steele’s Auto Sales Sonny Arrington, Price Is Right Auto Sales Weldon Whitehurst, VA Beach Truck Center President Brad White, Bluegrass Auto Sales District 4 / Northern VA COMMITTEE CHAIRMEN President-Elect President: Donald Sullivan, Jr., Sullivan Steering & Budget Don Sullivan, Sr., Sullivan Auto Trading, Inc. Auto Trading Andrew Wiley, Consumers Auto Warehouse Vice President Craig Amelung, Manheim Fredericksburg Member Benefits Al Abady, Ellas Auto Outlet, Inc. Al Abady, Ellas Auto Outlet, Inc. Al Abady, Ellas Auto Outlet Vice President Professional Development Matt McMurray, Campus Automotive, Inc. District 5 /Southern VA Matt McMurray, CMD, Campus Automotive Vice President President: Brent Toone, Lakeview Motors Publications & Events Sajal Narayan, Best Bet Motor Sales Corp. Sammy Wright, Church Street Auto Chris Crites, Bob Wade Auto World Secretary Membership Development Chris Crites, Bob Wade Auto World District 6 / Western VA Sajal Narayan, Best Bet Auto Sales Treasurer President: Sajal Narayan, Best Bet Motor Government Relations Andrew Wiley, Consumers Auto Warehouse Sales Corp Don Sullivan, Sr., Sullivan Auto Trading Paul Lynn Martin, L & B Auto, Inc. DISTRICT & PAST PRESIDENT John Taylor, Regional Auto Sales Volunteers Needed! REPRESENTATIVES Want to take on a leadership role? Do you District 1 / Tidewater District 7 /Shenandoah Valley want to help the association fight against un- President: Joe Ramon, The Car Exchange President: Eddie Haley, Rt 11 Valley Auto Sales necessary and burdensome regulations? And Weldon Whitehurst, Virginia Beach Truck Chris Crites, Bob Wade Auto World help educate dealers about activities im- Center pacting their ability to operate a dealership? District 2 / Central VA District 8 / Southwestern VA Ccontact Jamie Davis, Executive Director, President: Paul Tashner, Car Castle President: Ricky McReynolds, Country (757) 464-3460 or [email protected] Auto Sales, Inc.

2 | THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 CALENDAR OF EVENTS APRIL AROUND THE 9-10 DOC - Weyers Cave 10 District 4 Meeting (QD) 22 District 3 Meeting (QD) 23-24 DOC - Manassas COMMONWEALTH 26-27 VIADA Board Meeting - BY JAMIE DAVIS, VIADA EXECUTIVE DIRECTOR Staunton 30 District 1 Meeting (QD) I have traveled all across this beautiful state the past few months and wanted to share with everyone some of the great things our district presidents are doing. It is very important for MAY you to attend your district meetings, as you will get the opportunity to learn about a new 1 Deadline: District vendor, hear about what is going on in Richmond at our General Assembly, chat about Quality Dealer DMV & MVDB issues, plus get a chance to ask a question from a fellow dealer. That, I Nominees to VIADA believe, is the best thing that dealers get from the district meetings. We don’t get a chance 7-8 DOC - Warrenton to ask someone at the auction, we are too busy during sales hours to pick up the phone and call, but our meetings are relaxed and it is the perfect time to pick someone’s brain on 13 MVDB Meeting, something you are having an issue on. Richmond 13-14 Dealer Day - District 1 – January & February – President Joe Ramon invited Lisa Williams with Double Tree Hilton, NextGear Financial to speak at January’s meeting and Kari Davenport with ACV Auctions Charlottesville to speak with dealers at February’s meeting. Dealers came from all over Virginia Beach to 21 District 2 Meeting, hear ACV Auctions with 34 in attendance! Richmond 21 District 5 Meeting, District 2 – January – President Paul Tashner invited Cliff Bickford with Auto Trakk Danville Used Car Leasing to take the stage and speak with dealers in the Richmond area about his 21-22 DOC - Charlottesville program. Great food and great conversation at the Olive Garden! 27 Memorial Day - State Office Closed District 3 – January – President Brad White had a packed house when Micki Andino with Carolina Finance spoke to his dealers in the Roanoke area. It was a cold and windy 28 District 1 Meeting, night, but our room at Logan’s was brimming with chat and excitement! Virginia Beach JUNE District 4 – December – President Donald Sullivan, Jr. planned an amazing Christ- 4-5 DOC - Fredericksburg mas party with some awesome sponsors - AFC Fredericksburg, Autotrader, Advance Auto Parts/Carquest, M & M Auto Parts, Flexplus, vAuto, ADESA Washington DC, and Patty 17-20 NIADA|NABD Sullivan Transport! Dealers donated toys for the less fortunate and danced the night away! Convention - Las Vegas 20 District 7 Meeting, District 5 – February – President Brent Toone invited Ryan Stefanko & Don Gantt with Harrisonburg Gantt Insurance to speak with his dealers about their insurance coverage and how they 25 District 1 Meeting, can save them money as VIADA members. Our room was filled to the brim at the Danville Virginia Beach Golden Corral with fellowship! 25-26 DOC - Danville District 6 – January – President Sajal Narayan always has a great turnout, and this meet- JULY ing was no different! Micki Andio with Carolina Finance spoke to his dealers about outside 4 Independence Day - financing, and Ronny Steele with Virginia Auto Guide spoke about advertising. Cold night State Office Closed in Lynchburg, but everyone left full! 8 MVDB Meeting, Richmond District 7 – February – President Eddie Haley had a great turnout at his mid-winter 9-10 DOC - Manassas dinner and dance in Harrisonburg. Sponsors included Manheim Harrisonburg, ACV Auc- 10 District 4 Meeting, tions, and District 7. Great food, great fellowship, and an amazing venue capped off a Montclair perfect get together! 12-13 VIADA Board Meeting - So, next time you get your postcard in the mail about an upcoming district meeting, or re- Williamsburg ceive that email in your inbox, make it a point to head to your district meeting. Our district 22 District 3 Meeting, presidents work hard to find speakers to help you grow your business and find new ways of Roanoke doing things. Next district meeting you do attend, make sure you say “Thank you” to your 23-24 DOC - Christiansburg district president, they will appreciate it! n 30 District 1 Meeting, Virginia Beach

THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 | 3 STRENGTH IN NUMBERS

The start of spring marks a season of op- more members we have, the stronger we portunity. We shake off the chill of the win- are as a group. This is always important ter air and look forward to long days and when it comes to government relations. As warmer temperatures. We hang up our it looks right now, 11 of Virginia’s House heavy winter coats and put away our snow of Delegates districts will be redrawn due shovels. Grass starts to grow, flowers bloom to the 2010 census. Our current Gener- and baby animals frolic outside your bed- al Assembly gave the initial passage to an room window. Our minds start thinking amendment to create a bipartisan redis- about picnics and family outings. We look tricting commission. If everything passes ahead to the end of the school year and both in the General Assembly and on the summer vacations with the kids. Spring is a referendum, look for those 11 districts to be season of opportunity and renewal, and we redrawn in 2021. always look forward to it after a long winter. JAMIE DAVIS I was able to attend the NIADA Winter EXECUTIVE DIRECTOR, VIADA As a dealer, you should take this opportu- Conference in January, and it is a great time [email protected] nity to review your operation and see if you to be an independent dealer! Over the past need to freshen up your image. Has this few years, NIADA has acquired Leedom wet winter left its mark on your lot and it and Associates, and the National Alliance needs holes filled or general repair done? Is of Buy Here, Pay Here Dealers. NIADA is it time to finally cut the cord on the ‘06 Tau- now turning its attention to membership IT’S ABOUT CREATING rus on your lot that everyone ignores? Does with Paul John’s challenge of 20,000 dealers STRENGTH IN NUMBERS, the building need a new fresh coat of paint? by the end of 2020. This is a very achievable FINDING COMMON GROUND How about your signage, does it need a re- goal as all states have room for growth. As AND SUPPORTING EACH OTHER. fresh? Every day you come to your dealer- of this writing we have 770 active members - JANE KIM ship to work, but you don’t necessarily look in VIADA, with room for plenty more! As at your lot like a new customer would. How many of you remember, we reached our about the inside of your building? Is it in- 1,000 mark just a few years ago, and I know viting and clean? If you have sales staff, are we can easily do it again. they friendly and welcoming? How about your waiting area, do you need some new As always, this is your association! We are chairs for your customers to sit in? Many here for you to grow and succeed. If you see customers bring in their kids while they car something you think needs to be changed, shop. Do you have a small space that you or needs more attention, please reach out to could make into a kid play area while their us and let us know. Or better yet, we always parents fill out paperwork? Depending on have room for you at your district level and how long your customer stays at your deal- the state level. Your Board of Directors are ership, they may need to use the restroom, made up of dealers just like you who want make sure this is updated and clean, too! to make a difference. Your District Presi- You spend a lot of money on your invento- dents want to hear from you in regards to ry and advertising, so don’t let your lot and meeting content and speakers. We cannot facilities cost you in the long run! do this without you! n

As your association, we see spring as a time of growth. Strength is in numbers, so the

4 | THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 n REASSIGNMENT FORM (VAD 20) UPDATE! BY PETE IARICCI, DIRECTOR OF EDUCATION/LEGISLATION

Andrew Wiley with Consumers Auto A maximum of 4 (four) reassignments are your dealership’s name. The DMV Cus- Warehouse reached out to us in December permitted, counting a combination of those tomer Service Centers will not accept titles about an issue he had with his local DMV on the title and the in-state and/or out-of- with more than 4 reassignments. office about reassignments. It seems that state reassignment forms, before the title DMV has made a revision on the use of the must be retitled in the Virginia dealer’s We are sorry that Andrew had to find this Reassignment Form, and we did not realize name. The four reassignments can be spread out the hard way, but very thankful that he it. Pete Iaricci made some phone calls and out over multi-reassignment forms. reached out to us and alerted us to this is- here is what he found out about the revision. sue. Many thanks also to Pete Iaricci, our If blank reassignment blocks exist on the ti- education director, for his leg work in find- It has come to my attention that DMV has tle certificate, but a Virginia dealer uses the ing the revision and reporting it. made a revision on the use of the reassign- reassignment fields on a VAD 20 instead of ment form. For as long as I can remember, the title to transfer ownership, the dealer will This is one of the many benefits you receive the VAD 20 reassignment form allows a write “VAD 20” and the VAD 20 document as being a VIADA member. Remember dealer to reassign a vehicle an additional number in the first blank reassignment block members helping members is a great asset three (3) times after the reassignments on on the title certificate to indicate that the re- to your dealership! n the title have been completed. assignment was completed on the VAD 20. Find a VIADA The new revision changes the number of Please take time to check your titles and Membership reassignments a dealer is allowed. It reads those that have reached the maximum of as following: 4 (four) reassignments to flip them into Application on page 21.

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THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 | 5 VIADA CPO FOR RETAIL AND BHPH BY TIM BYRD, FOUNDER AND PRESIDENT OF DEALERRE

Are you doing anything to stand apart from available only to VIADA dealer members, Tim Byrd is Founder and President of your competition? Let me share with you as a member benefit? DealerRE, a managing agency located in some knowledge gleaned from 30 years in Show potential customers that you are Gloucester, Virginia, and an auto industry this business. If you and your staff cannot above the rest of your competition. Show expert on Dealer-owned Reinsurance Com- relay to potential customers why it is a bet- them that your pre-owned vehicles have panies, BHPH Operations, and Dealership ter idea to do business at your dealership, undergone a 100+ point inspection to give and F&I Development. As a 30+ year vet- then all you are left with is price. Let me them peace of mind when making a vehicle eran of the car business, Tim is a trusted ad- tell you something, there can only be one purchase. Not to mention, should they run visor to many car dealers. Tim has appeared cheapest guy. into unforeseen difficulty, they can count on Auto Dealer Live and has been featured on the vehicle’s warranty to quickly get many times in Dealer Solutions Magazine, Perceived value is what sells any product. them back on the road again. The Virginia Independent News, Around That is why Certified Pre-owned Vehicles the Commonwealth, The BHPH Report, are at the top of the list for most searched If you choose to work with us to create DealerELITE.net, the Dealer Business Jour- when buyers are looking for a used car. your own warranty company, you can en- nal, AutoSuccess Magazine and NIADA's #CertifiedPreOwned needs to be your Meta joy the benefits of greater control of your BHPH Dealer Magazine. Tim is a sought af- Tag. customer’s claims, creating a more attrac- ter speaker and co-author of the #1 Best Sell- tive inventory, a capital resource for greater ing book “Unfair Advantage” , “Race to the If you are reading this article you are most profitability, and less customer confronta- Finish Line ” and also a #1 Best Seller "Race likely a dealer of integrity and a dealer who tion in your business. You can learn more to the Finish Line 2" . First and foremost, Tim proudly displays the VIADA logo on and in about the VIADA Certified Pre-Owned is a Christian man whose values, he strives, your store. Why do you do that? Most like- Program by going to www.DealerRE.com/ are a reflection of those of his Lord and Sav- ly because it indicates that you adhere to a VIADA-Certified/. ior Jesus Christ. Tim can be reached at www. higher standard. Were you aware that there DealerRE.com or by calling 804-824-9533. is a VIADA Certified Pre-Owned Program Reinsurance, it’s what Smart Dealers do! n

6 | THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 BECOME A MEMBER OF VIADA

the Motor Vehicle Dealer Board. 8. Member rebates are also available from 12 BENEFITS OF 2. Five members who serve on the Motor Advance Auto Parts and Fisher Auto Vehicle Dealer Board also represent- Parts – which more than cover the cost MEMBERSHIP ing your interests when regulations are of membership! Check out Andrew created or revised. Wiley’s testimonial in the April maga- VIADA provides benefits and services to 3. A “Member Hotline” to get answers to zine (pg 18)! members they are not always able to find complex questions. 9. Members also receive a discount when on their own. With VIADA, the dealer has 4. Educational and training workshops to purchasing forms and supplies. educational and networking opportunities insure you have the latest information 10. Plus there are many Associate Mem- through our schools, workshops, town hall/ to remain compliant and learn about bers who have services, programs ben- district meetings, and annual convention best practices in the industry. eficial to your business – several offer and trade show. 5. Eight districts that hold dinner meet- discounts. ings mostly on a quarterly basis to 11. Need one-on-one consultation? We Whether it’s creating an environment for share information, learn something have two industry experts that offer a sharing ideas, or serving as a place to come new, and network with other success- member discount. to for solutions to problems that arise, VIA- ful dealers. 12. And lastly, your membership in VIA- DA is the only organization in Virginia 6. Online recertification course – mem- DA ALSO includes NIADA member- whose primary purpose is the welfare and bers only pay the $25 MVDB fee. ship and access to national benefits success of the independent dealer. 7. An “Auction Card” where members and services! save up to $1400 worth of Buy/Sell/ 1. The only trade association in Virginia Provider fees at auctions! Plus you get Cost of VIADA/NIADA membership is that represents the interests of indepen- $200 from both Manheim Fredericks- only $325 a year which is about $27 month. dent dealers before the Virginia Legisla- burg and Manheim Harrisonburg for An investment in your business, for you ture, Department of Motor Vehicles and products and services. and your family. n

THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 | 7 DEALER DAY 2019

INTRODUCING DEALERDAY 2019

JUSTIN OSBURN is the NIADA Retail 20 Group Moderator as well as dealer consultant and trainer. He offers over a decade of JOIN US ON experience in BHPH and Retail executive management. Over his career Justin has served as a sales professional, finance director, Tuesday, May 14 sales manager, general manager, Chief Operations Officer and owner. Justin’s formal education in Organizational Development 8:00am to 4:00pm and Adult Learning catalyzes dynamic retail 20 groups and on-site consulting. Justin has also served in the United States Army, has DoubleTree by Hilton been elected for public offices, holds an international patent and 990 Hilton Heights Road served on numerous business board of directors. He is a public Charlottesville, VA speaker, published author and current instructor of the NIADA Certified Master Dealer’s Program.

RONALD A. HEIDER is the owner of HMA - Heider Marketing Guest Speakers & Advertising, a Hampton Roads based agency servicing the automotive and auto-aftermarket industries. He can be reached at by JUSTIN OSBURN e-mail at [email protected]. NIADA

RON HEIDER Heider Marketing JENNIFER LIBIN is a Sales Director at APB. She has a keen un- derstanding of the automotive industry and excels as a leader who JENNIFER LIBIN builds teamwork and cultivates relationships. She has a bachelor of Automotive Profit Builders science degree in political science and government from Assump- tion College in Worcester, Mass. Jennifer is currently the head var- sity gymnastics coach at Medfield High School in and the team TIM HAYZLIP coach at Gymnastics Express both in Massachusetts. BB&T

JOE KEADLE AFC TIM HAYZLIP recently celebrated his 20th year at BB&T. He recently joined BB&T Merchant Services in a newly created role of Merchant Services Dealer Segment Sales Manager. Tim is respon- CHRIS CAPURSO sible for the P&L associated with all Dealer Segment distribution Hudson Cook, LLP channels, including leading direct sales efforts into the dealer segment as well as through the development of Independent Software Vendor (ISV) channels. The role includes identifying industry specific product and service solutions, and then building out the sales distribution structures required. He’s worked for various lines of business including Direct Retail Lending, Loan Services Special Projects, and Community Banking Administration. For the last 6 years, he has been the Dealer Retail Services Sales Strategy Manager guiding the development and oversight of the marketing, CRM, and sales initiatives for Dealer Finance and Regional Acceptance.

8 | THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 DEALER DAY 2019

JOE KEADLE Chief Operating Officer, Automotive Finance Cor- poration -- As COO for Automotive Finance Corporation (AFC), WHAT YOU’LL LEARN Joe Keadle oversees the day to day field operations while assuring Learn from experts in the field the standardization of AFC’s operating practices and procedures. about topics to insure you are Keadle plays a key role in the application of AFC training pro- compliant, attract customers, grams to enhance the skill set and performance of employees and increase efficiency and help your sales programs where employees serve as trusted advisors to deal- bottom line. ers. Keadle joined AFC in January 2010 as regional manager. He has more than 20 years of experience in the automotive industry. There will also be exhibitors on His background ranges from managing new and used car depart- hand to share new services and/ ments to finance related executive management positions at Wachovia, New South Feder- al Savings Bank, and AFC. Keadle served on the Automotive Resource Network Board of or programs that may help your Directors for two years and has been a loyal supporter and active with NIADA for many dealership in the coming year. years. Keadle in partnership with NIADA was the host of “2 Minute Tips” and “Fast Five” for the past four years designed to help serve the independent automotive dealer in grow- EXHIBITOR SPOTS AND ing their business. SPONSORSHIPS AVAILABLE If you are interested in exhibiting CHRIS CAPURSO is an associate with Hudson Cook, LLP in the or being a sponsor, call Jamie firm’s Richmond, Virginia office. His practice focuses primarily on Davis at 800-394-1960 or automobile finance, installment lending, and compliance with fed- [email protected]. eral and Virginia consumer financial services regulation. He advis- es motor vehicle dealers, finance companies, and licensed lenders, as well as federal and state chartered depository institutions. Chris COST: received his J.D. at the Marshall-Wythe School of Law, College of Member $129 William & Mary where he was Senior Articles Editor of the Wil- Non-member $169 liam & Mary Business Law Review. He also earned an M.B.A. at the Raymond A. Mason School of Business, College of William & REGISTER AT Mary. He is a member of the American Bar Association, Business Law Section, the Vir- https://goo.gl/znX7ZT ginia State Bar, the Richmond Bar Association and the National Association of Dealer Counsel. He is admitted to practice in Virginia. n get FEATURED

VIADA is looking for YOUR content. If you can write on topics that we feature in VIADA publications, we’ll showcase your expertise by publishing your material! We’re inviting all associate members to submit their “grass roots” content to be shared in our magazine and on our social media pages. We want to feature your NEW products and ser- title class vices, we want to announce your excit- Tuesday, May 14 • 1:00pm to 4:00pm ing internal promotions and of course Instructor Pete Iaricci, your company success stories! This is fantastic way to increase brand aware- Director of Education/Legislation ness and credibility for your company A DMV representative will also be on hand to answer any questions. within a highly targeted market of in- Cost is $99 for first person from dealership, $75 for each additional. dependent auto dealers. Email jamie@ viada.org for questions, comments or REGISTER AT https://goo.gl/dHQS7L to submit material for consideration.

THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 | 9 Artificial Intelligence: Helping dealers know their customers better BY AUTO REMARKETING STAFF

Car buyers are doing more advance re- interaction frequency, the tool high- eCommerce director, Jeff Wyler Automo- search than ever. Because of that, they of- lights engagement trends and helps tive Family, said in a press release. “For us, ten know more about the dealership than managers better visualize how a sales- personalizing each customer experience is the dealership knows about them. Connect person is performing in the CRM. a high priority. Connect Automotive Intel- Automotive Intelligence is a new product 2. Sentiment analysis, which uses artifi- ligence will allow us to deliver a more con- that VinSolutions believes will close that cial intelligence to determine custom- sumer-facing journey with timely, relevant gap. er sentiment and intent by analyzing and personalized communications.” text messages and emails. This anal- VinSolutions notes in a press release that ysis helps identify revenue opportuni- For new technologies like artificial intel- Connect Automotive Intelligence will help ties and highlight the customer inter- ligence to be most effective, VINSolutions dealers better act on customer engagement actions that will build satisfaction. says technology integrations must also and data. The tools will analyze custom- 3. Buying Signals, which captures and take place. As part of Cox Automotive, er communications and behaviors to help analyzes shoppers’ online behaviors Connect Automotive Intelligence works dealers find the best opportunities to de- and distills them to predict shopping with products from its sister companies, liver a more personalized experience. personas, shopping preferences and including Autotrader, Kelley Blue Book, the sense of urgency. Rather than vAuto, Dealer.com and Xtime, to stream- VinSolutions, currently in the pilot leads coming into the CRM without line workflows, reduce duplicate data en- phase, includes three new artificial intel- any context of the prior online shop- try and ensure dealers get more value from ligence-enabled tools for Connect CRM, ping behavior, this new enhancement their software investments. Those integra- which is a dealership customer relation- uses known online traffic to increase tions, which help improve personalization ship management system: speed of sale and build trust with the across the entire consumer lifecycle, will 1. Engagement strength, which mea- shopper. also be filtered through these artificial in- sures a salesperson’s interactions with telligence-enabled enhancements to bring an existing prospect or customer. By “Modern businesses today excel by be- the most opportunity out of the market- tracking a salesperson’s customer ing more consumer-facing,” Kevin Frye, place for dealers. n

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PAC Contributors for December 19, 2018 to February 28, 2019 BASIC Certified Motors Green Automotive Recycling LLC ($45 to $99 annually) City To City Auto Sales LLC Greensboro Auto Nextgear Capital 700 Credit Inc Dandees Inc. Auction Inc Pembroke Auto Sales America’s Auto Auction Dealer Development J-Spec Auto Sports Inc Quality Auto Source Inc Virginia Inc Services Inc Koon’s Automotive Inc - Riverside Auto Inc Arlington Motors Inc E & M Auto Sales LLC Culpeper Robert Young’s Auto & Atlantic Auto Aid East Coast Auto Sales LLC Koon’s Automotive Inc - Truck Inc Auto Plus LLC East End Auto Sales Fredericksburg Shenandoah Auto Parts Inc Automaxx LLC Easy Ride Auto Sales Inc Koon’s Automotive Inc - Shoreline Auto Center Inc Beach Auto Brokers Inc Enterprise Car Sales - Woodbridge Smithfield Auto and Truck Blue Ridge Auto Center Inc Newport News Lester Auto Sales Inc Center LLC Burton’s Automotive EZ Ride Auto Sales LLC Liberty Motors LLC Smith’s Auto Sales LLC C & G Imports Inc F & A Auto Sales Inc M & M Auto Sales Usmani Motor Cars C.R. Garland Auto Sales Fairfax Motors MAACO of Blacksburg VA Cars of Tri-Cities Campbells Used Cars Inc FC Auto Maguire & Sons Auto VA Cars West Broad Car Castle Fred’s Executive Auto Brokers VIADA District 3 Central Virginia Rental Friedman Associates Mullins Used Auto Parts & Wamsley Service Center

10 | THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 Are you aware that you should be getting adverse action letters to your customers? BY PETE IARICCI, DIRECTOR OF EDUCATION/LEGISLATION

It has come to my attention of a number The ECOA defines “creditor” as “any self will not extend credit, the deal then of lawsuits involving dealers that are person who regularly extends, renews, or depends upon being able to find a bank being sued for not sending an Adverse continues credit; any person who regu- or finance company to purchase the con- Action Notice. Under the Equal Credit larly arranges for the extension, renewal, tract from the dealership. opportunity Act (ECOA) and Regulation or continuation of credit; or any assignee B, a “creditor” must give a consumer an of in original creditor who participates in Currently one of our members is being adverse action notice when the consum- the decision to extend, renew, or contin- sued for not sending an Adverse Action er does not qualify for credit. There has ue credit.” The ECOA a does not clarify Notice and the attorney is asking for been a question if a dealer is a “creditor” what constitutes regular anticipating in $60,000 in damages. when they take a credit application from a credit decision and courts have reached a customer and send it to a third party different conclusions on this matter. To follow is a sample letter that can be giv- lender. The U. S. Court of Appeals for en with the “Credit Denial Notice” which the Six Circuit recently affirmed a low- According to the “car law F&I Legal Desk explains to the customer why you are re- er court ruling that the car dealer was a Book”, authored by Thomas B Hudson quired to give them the notice. “ creditor “ and violated the ECOA and and the attorneys of Hudson Cook LLP, Regulation B when it did not provide a dealers may be regarded as setting the (Date) notice of adverse action to the customer. terms of credit when they determine the APR based on a buy rate, set the payment (Dealership Name) As defined by the ECOA, an adverse ac- term, or set other terms like the down (Address) tion is “a refusal to grant credit in sub- payment and amount financed. (Phone Number) stantially the amount or on substantially the terms requested”. The ECOA’s pur- Spot delivery of a vehicle could very Dear customer, pose is to ensure that any entity that ex- well be seen as a credit decision on the tends credit does so with “fairness, im- dealer’s part; the vehicle was to deliver This is to inform you that under the Equal partiality, and without discrimination.” before the third party actually approved Credit Opportunity Act (ECOA) and the The Fair Credit Reporting Act (FCRA) it. There’s still the possibility of adverse Fair Credit Reporting act (FCRA) auto incorporates the same definition when action if the deal had to be unwound. dealers are considered creditors. This occurs applied to a credit transaction. It should when a customer fills out a credit applica- be noted that, contrary to what some To avoid this proble, the dealership tion applying for credit. This is to inform dealers believe, adverse action obliga- should give an Adverse Action Notice you that the dealership itself does not fi- tions may extend even if a customer’s to everyone the dealer takes a credit ap- nance vehicles or extend credit. The dealer- credit report is never pulled. It’s also im- plication from at the time they take the ship depends on being able to find a bank or portant to remember that adverse action credit application or pull a credit report. finance company to buy the contract from includes more than just a single denial Providing that the dealer is not a BHPH, the dealership on your behalf. Because we of credit. If the creditor makes a coun- the dealer already knows the dealership do not finance automobiles we are required teroffer to extend credit under different will not be extending credit to the cus- to provide you with a Statement of Credit terms or in a different amount than what tomer. By providing the Adverse Action Denial. was requested, but the customer refuses Notice and a disclosure that the dealer- those conditions, that is also an adverse ship is considered a “creditor” under the (Customers Signature) action. ECOA and FCRA, and the dealership it- (Date) n

THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 | 11 GENERAL ASSEMBLY POST-SESSION HIGHLIGHTS

BY ALICIA CUNDIFF, SPOTTS FAIN CONSULTING

he General Assembly adjourned calities (Bristol, Danville and Portsmouth) This bill was signed into law by the Governor. sine die on Sunday, February 24 the authority to hold a referendum vote to after meeting for a scheduled 46 allow a casino. HB 1768 - Yancey (R - Newport News)- days and one additional day to Certificate of title; vehicle used as a Tfinalize budget negotiations. This was one Already signed into law is one of the largest taxicab. of the most interesting and tumultuous ses- economic development deals in US history Removes the requirement that the owner of sions in recent history: the controversies - Amazon’s second headquarters will be lo- a vehicle that has been used as a taxicab at- surrounding the Governor, Lt. Governor, cated in Crystal City, Virginia. The General tach a statement to that effect to the certif- and Attorney General will be key campaign Assembly and Governor approved a $750 icate of title of the vehicle prior to the sale, issues for the election of all House and Sen- million incentive package for the creation transfer, or disposal of such vehicle. The bill ate seats in November. of up to 37,850 jobs, with incentives being also removes the requirement that the De- provided four years after the jobs are creat- partment of Motor Vehicles place an indi- Despite the political controversies making ed, over a 12 year period. The average salary cator on any new certificate of title for the national news, the General Assembly was of each job is $150,000. vehicle indicating such prior use. As a re- mostly business as usual and made progress sult of this legislation, a taxi cab is removed on several key issues. In the budget, the General Assembly pro- as a “suspect class,” which is of benefit to vided $57.5 million in additional funding VIADA dealers when it is re-sold. The General Assembly passed legislation for higher education, in exchange for col- that will confirm Virginia tax code to the leges and universities holding tuition at This bill was signed into law by the Governor. Federal Tax Cuts and Jobs Act. The Gov- 2019 rates. The budget also provides $25 ernor originally proposed in his budget to million for “at-risk add on” funds in school HB 1780 - Bloxom (R - Accomack) - use the $1 billion windfall from the federal districts with high concentrations of at- Salvage vehicles; removes requirement tax reform law as revenue, but the Gener- risk, low-income students. that a vehicle be late model. al Assembly voted to return the money to Removes the requirement that a vehicle be taxpayers hurt by changes in federal tax One final notable piece of legislation - the late model in order to meet the definition law. Virginia law previously required that General Assembly raised the age to pur- of salvage vehicle due to having been (i) taxpayers take the same state deduction chase tobacco products from 18 to 21, acquired by an insurance company as part that they took on their federal taxes. But which received bipartisan support. of the claims process or (ii) damaged to because the federal deduction was raised, the extent that its estimated cost of repair Virginians would have itemized less and The Governor has until March 26 to amend would exceed its value before the damage paid more on their state taxes. Instead, the or veto any legislation and to amend any minus the salvage value. The bill expands $1 billion windfall will now be returned to items in the budget. The General Assembly corresponding reporting requirements to taxpayers. will reconvene on April 3 to respond to the require application for a salvage certificate Governor’s actions. for certain early model vehicles. The bill Redistricting has been an ongoing debate also removes the requirement that a vehicle that began when a federal court ruled last Please see below for an overview of legis- be late model in order to meet the definition year that 11 House of Delegates districts lation that impacts VIADA and its dealers of rebuilt vehicle. Delegate Bloxom consult- drawn in 2011 were racially gerryman- - several of which were influenced by the ed VIADA on this bill, and DMV was op- dered. This session, the General Assem- local advocacy of VIADA members. posed. The outcome of this bill was directly bly gave initial passage to a constitutional impacted by local VIADA members reach- amendment that would create a bipartisan VIADA LEGISLATION ing out to Delegate Bloxom as well as the redistricting commission. The next step is influence of VIADA as an association. for the measure to pass the General Assem- HB 1677 - Delaney (D - Fairfax) - Motor bly again next year and then be voted on by vehicles, certain; expands mileage for This bill will be put into a study for further voters in a referendum in 2020. If finalized, driving distance for testing, etc. consideration. the bipartisan commission would redraw Expands from five miles to 10 miles the the districts in 2021. distance (i) from the place of business that HB 2039 - McGuire (R - Henrico) - an individual is permitted to drive a vehi- Supplemental motor vehicle sales Legalizing the operations of casinos was a cle equipped with a license plate designed locations; car shows. hot button topic this session. After much for persons engaged in the business of de- Allows franchise dealers who are partici- advocacy from localities looking for in- livering unladen motor vehicles to test the pating in a new car show to obtain a tem- creased revenue opportunities, the General installation, service, or repair of equipment porary license to sell late model used cars Assembly referred the matter to be stud- on or in such vehicle and (ii) from an auto at that show by virtue of participation. This ied by the Joint Legislative Audit and Re- auction that a prospective purchaser of a bill was at the request of VADA, and VIA- view with a re-enactment opportunity for motor vehicle, trailer, or semitrailer may DA worked with them on two amendments the General Assembly in 2020. If passed in operate such vehicle without a safety in- which they accepted. The amendments 2020, the measure would give certain lo- spection prior to purchase. clarified that the used vehicle must be a late

12 | THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 GENERAL ASSEMBLY POST-SESSION HIGHLIGHTS

model and the vehicle show must be spon- minority dealers would lead to a minority it shall equal the difference between the sored by an association of franchised deal- dealer having a majority ownership of a cash wage required to be paid to a tipped ers and in the geographic area of the associ- dealership. The bill exempts certain man- employee and the minimum wage. ation members. The willingness of Delegate ufacturers and distributors from the lim- McGuire and VADA to work with VIADA itations on the right of first refusal. While This bill was left in Senate Commerce and on an amendment was directly impacted this bill does not have any direct bearing Labor. by local VIADA members reaching out to on VIADA, it could become an issue in the Delegate McGuire as well as the influence future as more national lenders come into SB 1325 Chafin (R - Tazewell) Guaran- of VIADA as an association. the state. teed asset protection waivers; establishes requirements for offering waivers, etc. This bill was signed into law by the Governor. This bill is awaiting the Governor’s signature. Establishes requirements for offering guar- anteed asset protection (GAP) waivers, HB 2174 / SB 1464 Miyares (R-Virginia HB 2514 Hugo (R - Fairfax) Motor which are agreements, entered into as a Beach) / McPike (D-Manassas) Motor v vehicle safety inspections; increases part of or addendum to a motor vehicle fi- ehicle dealers; manufacturers and factory maximum charge from $16 to $20 nancing agreement, under which the cred- branch transfers, etc. The General Assembly passed legislation to itor agrees for a separate charge to waive or Provides that if a motor vehicle manufac- raise the annual inspection fee from $16 to cancel amounts due on the finance agree- turer or factory branch discontinues, sells, $20. The fee has not been raised in 13 years. ment if the financed motor vehicle is totally or transfers its right to manufacture a line- It passed with bi-partisan support, includ- damaged or stolen. The measure requires make of motor vehicles, and the acquiring ing VIADA’s support. the creditor to insure its GAP waiver ob- manufacturer or factory branch does not ligations; prohibits a creditor from condi- honor an existing franchise agreement with This bill is awaiting the Governor’s signature. tioning an extension or term of credit on motor vehicle dealers in Virginia, such dis- the purchase of a GAP waiver; requires a continuation, sale, or transfer shall consti- SB 1017 Marsden (R - Fairfax) Minimum GAP waiver to include disclosures regard- tute a termination of the franchise and such wage; increases to $8.00 per hour ing the cancellation of the GAP waiver motor vehicle dealers shall be entitled to effective July 1, 2019. during a free look period; and establishes compensation pursuant to Virginia law. The Increases the minimum wage from its cur- requirements and restrictions for the can- bill provides that a manufacturer or dis- rent federally mandated level of $7.25 per cellation of GAP waivers, including refund tributor’s right to first refusal in the event hour to (i) $8.00 per hour effective July 1, provisions. The measure provides that GAP of a proposed sale or transfer of a dealer- 2019; (ii) $9.00 per hour effective July 1, waivers are not insurance and are exempt ship does not apply if such sale or transfer 2020; (iii) $10.10 per hour effective July 1, from Virginia’s insurance laws. is not to a dealer licensed anywhere in the 2021; and (iv) $11.25 per hour effective July United States as a dealer holding a franchise 1, 2022, unless a higher minimum wage is This bill is awaiting the Governor’s signa- from any manufacturer or to a distributor required by the federal Fair Labor Stan- ture and has a deadline of March 26. If he licensed as a manufacturer or distributor in dards Act (FLSA). The measure also pro- does not sign it, the bill becomes law with- the Commonwealth unless the exercise of vides that the cash wage paid to a tipped out his signature. n such right of first refusal by a manufacturer employee shall not be less than 50 percent or distributor with a program promoting of the minimum wage and that the tip cred-

IN-CLASS RECERTIFICATION COURSE

This class is for dealers who need to recertify by December 31, 2019. WEDNESDAY, MAY 29, 2019 THE CLUB AT HEATHERWOOD, BOONES MILL, VA

Instructor: Pete Iaricci, Director of Education/Legislation Cost: $125 (includes $25 MVDB fee, manual, 6 hours class time)

TO REGISTER: CALL VICKIE AT VIADA, (800) 394-1960

THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 | 13 Retail Key in Dealer Strategy InnovationBY JOE OVERBY, SENIOR EDITOR, AUTO REMARKETING

A walk through the customer-facing side different than what you might find at a tra- process: You have to be able to buy the of the EchoPark Automotive store in Char- ditional car dealership. car, ship the car, recon the car, detail the lotte, N.C., has the feel of a cafe, not a car car, take the pictures of the car, get it on dealership. Buy smart, and in bulk the front line and get it out fast,” he said. Take, for instance, how these stores find “And if you have any disruptions to that, The employee work area, separated from inventory. like a big holiday sale, where you sell a ton the consumer-facing front, has the trap- of cars, it throws everything off.” pings of a young, tech-leaning startup. “We source everywhere, but we try to buy in bulk,” Dyke said. “And the best way to Establishing a rhythm in buying is key in But the innovation of this store and its sort of think about how we buy is, you go inventory management for EchoPark. So is fellow EchoPark locations go well beyond to a meat market. consistency. Buying to a number. And not appearance. over-buying. “And at the meat market, there’s chicken These standalone used-car stores, launched and steak and hamburger and sausage and “You’re going to sell more cars on a Sat- by the publicly traded Sonic Automotive you name it,” he said. “We look for what’s urday than you do on a Thursday, but we dealer group, take a new approach to auto on sale today. know those rhythms, so we buy in con- retail — perhaps representing, on a larger junction with that,” Dyke said. “And we scale, the shifting sands of how dealerships “We don’t necessarily buy to a, ‘Hey, here’s try not to over-buy; we do have projections operate. what the customer wants’; We buy to a for what we think we’re going to sell the price-point, so that we can create a really next week, and we try to buy to that num- This innovative way of thinking was ev- low price-point that brings the consumers ber. And then the next week, buy to that ident in a late November interview at the into the store,” Dyke said. “And that’s ev- number. Charlotte store with Jeff Dyke, president of erything — you’ve got to get the right price EchoPark and Sonic, and Sanjay Prakash, on a car. “Everything is done by week, so that we the location’s general manager. keep a consistent flow of inventory. And “And once you hit that, it really drives that’s critical. Inventory management is Everything from inventory pricing to em- the volume. And why others have a hard imperative in order to be able to be profit- ployee management at EchoPark is a bit time replicating that is the expense. The able in a store like this.”

14 | THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 can’t do that,” Dyke said. “We’ve taken the “I’m worried about how much can our peo- Pricing right So, too, is pricing of that inventory, which technology out of the new-car stores and ple take on, and how much complexity do Dyke said is based on algorithms built in- put it in here; that’s worked very well. But we put in front of them, how simple we can ternally and on data points from what is certainly, hiring from day one and testing make it and the ease of opening stores,” happening in the market. and making sure that you’re bringing the Dyke said. right people into the organization and lots An example of that is the electronic hang- of training before you open — it’s been an “We know how to scale,” Dyke said. “I did tags on the vehicles. When the company’s earmark for us from day one, but it’s just it at AutoNation, I’ve done it at Sonic Auto- internal pricing system changes the prices, gotten a lot better as we’ve moved for- motive. Scalability is one of our strengths. that change is automatically reflected on ward,” Dyke said. And our biggest strength is inventory and the hangtag. pricing. We really understand the inven- “The people piece, the inventory piece. tory. All of our systems are all built in- The EchoPark managers don’t have to wor- Don’t overbuild the facility,” he said, point- ternally. So, if you can scale, you can hire ry about buying inventory or pricing cars. ing out that a facility can be nice without and train, and you can manage inventory; being massive. it puts you in a situation that gives you a “They might give opinions on a car here pretty good competitive advantage.” or there, but overall, their job is to man- “And we don’t have to have tons of people. age the associates and to manage the guest Our technology allows us to sell two-and- Establishing culture experience,” Dyke said. “And we have an a-half times what a traditional salesperson Another competitive advantage that Echo- inventory team and a pricing mechanism would sell in a regular store” where an Park prides itself on is its workplace cul- that handles everything else.” associate might sell eight to 10 vehicles a ture. Instead of spending 30 percent of his month, he said. time working with employees and 70 per- The fact that the majority of the technolo- cent on other tasks, Prakash said he spends gy at these stores was developed internally “It’s not about how many people you add; 90 percent of his time coaching, teaching means that making changes is typically it’s about how efficient you can be,” Dyke and working with the team at the Echo- easy, inexpensive and efficient, Dyke said. said. Park Charlotte store.

“It’s amazing how intertwined everything Store openings? In fact, in a recent survey where team else is, too, and how much math and sci- As far as store additions, the company members could give feedback anonymous- ence is involved,” said Prakash, the man- aims to open one more location in March, ly, they were asked what three words they ager of the Charlotte location. “You think putting its EchoPark store count to nine, would use to describe the culture at the of inventory, purchasing and pricing, and and then they will likely “take a breather” store. The top response in the heat map of then how it’s attached to recon and then for the rest of 2019 to focus on execution, words was “family.” attached to sales, it’s all intertwined. They Dyke said. all move in unison.” “That’s really good to see as a GM and a “What we want is for the nine stores to be leader of the team to see that we’re living profitable, and when we add a store … we the values. And to Jeff’s point, it’s about Lessons learned Innovation, as it turns out, can be an evolv- stay profitable, and then you just build on reducing complexity. I’m allowed to focus ing process. Since launching EchoPark that,” Dyke said. on a lot of the activities that generate that,” Automotive in 2014, Dyke said there have Prakash said. “I don’t have to interact with been a number of lessons learned about Starting next year, Sonic plans to start add- a lot of guests, if I provide them with this, how these standalone used-car stores ing two to five stores annually, “depending just like Jeff provides it for me, they’re go- should operate. on what our capabilities are and the per- ing to automatically be engaged every day. formance of the organization,” he said. For instance, days’ supply should in the “We’ve got mechanisms to keep us focused low- to mid-20s at the stores, as opposed to They want to grow, but do so profitably. on the most important activities of the day, the 29- to 32-day range for Sonic’s new-car which is developing operating rhythms, business. Also, pricing right from Day 1 is “Speed to market is really important, but making sure we’re working with the peo- paramount. Don’t overbuild. when you have a formula like this, and you ple, making sure our building’s tight and know that you can open up a store and it’s right all the time and our message to the “We tried to put this exact process in our going to sell 300 cars and it’s a very, very community is good,” he said. “That’s all new-car stores. But to take that culture and good chance that it could break even in its we focus on. We don’t have a lot of other to convert it into this culture with the same first month, I’m not worried about the rest side science projects that take our eye off n people? Mistake. We learned that. You of the world anymore,” Dyke said. the ball.”

Dealership Violated TILA, EFTA, and dealership violated TILA by not giving the Finally, the court found that the dealership’s Connecticut Unfair Trade Practices Act buyer a copy of the contract containing negligent misrepresentation of the condi- and Breached Warranties in Connection the required disclosures before consum- tion of the car elevated its breach of war- with Car Sale: How many different ways mation of the agreement and by including ranties to the level of a CUTPA violation. can a dealer get into compliance trouble in the $1,100 “bank fee” in the purchase price The buyer also established that the dealer- connection with the credit sale of a vehicle? on the RIC. The court noted that inclusion ship violated the CUTPA by violating TILA Read on! of the “bank fee,” which was an additional and potentially violating Connecticut’s Re- charge beyond the price at which the deal- tail Installment Sales Financing Act when A salesman told a potential buyer of a used ership would have sold the car for cash, it misrepresented the car’s purchase price. car that the car was $16,900 and that it was allowed the dealership to understate the See Alexis v. PMM Enterprises, LLC, 2018 “clean and had never been in an accident.” finance charge. U.S. Dist. LEXIS 184367 (D. Conn. October The retail installment contract listed the 29, 2018). car’s purchase price as $18,000, and the Second, the court found that the dealership buyer was told that the $1,100 discrepancy violated the EFTA by requiring the buyer to So, there’s this month’s roundup! Stay legal, was a “bank fee.” The buyer alleged that he set up preauthorized electronic transfers of the and we’ll see you next month.n was not given a copy of the purchase order contract payments as a condition of financing. or the RIC. Tom ([email protected]) is Of Counsel Third, the court found that the dealership and Nikki ([email protected]) is a Partner About nine months later, the buyer learned breached the implied warranty of mer- in the law firm of Hudson Cook, LLP. Tom that the car had sustained significant struc- chantability by selling a car that was un- has written several books and is the publisher tural damage before he bought it and was safe to drive while it knew or should have of Spot Delivery®, a monthly legal newsletter unsafe to drive. He returned the car to known about the car’s condition at the time for auto dealers. He is the CEO of Counsel- the dealership, revoked acceptance, and of sale. orLibrary.com, LLC and the Senior Editor of sued the dealership, alleging violations of CounselorLibrary.com’s CARLAW®. Nikki is the Truth in Lending Act, Electronic Fund Then the court found that the dealership Editor in Chief of CARLAW®, a contributing Transfer Act, and the Connecticut Unfair also breached an express warranty because author to the F&I Legal Desk Book and fre- Trade Practices Act as well as breach of it told the buyer that the car was “clean and quently writes for Spot Delivery®. For infor- implied and express warranties. The buyer had never been in an accident,” and the mation, visit counselorlibrary.com. ©Coun- moved for a default judgment. buyer relied on that statement when he de- selorLibrary.com 2018, all rights reserved. First, the federal trial court found that the cided to buy the car.

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16 | THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 GIVING BACK WITH how you ENDLESS ENERGY VIADA Ladies Auxiliary can help! The VIADA Ladies Auxiliary seems to have endless energy recently with so many projects and spreading goodwill across the Commonwealth. VIADA spoke with Carla Boucher about what her group is working on and how our dealers can help out. The Big Blue HELPING THE HOMELESS Box of Caring At the January Board of Directors meeting while we were working on making your association work smoother, they were working hard gathering small toiletries and treats Helping Those Who Need Help to fill 30 bags for a homeless group in Gloucester, Virginia. These bags contained soap, hand sanitizer, toothbrushes, toothpaste, socks, and some nutritious snacks. I stopped Shirts into their room to check on them and they were all busy little bees. It was awesome! Pants COLLECTING COATS Sweatshirts In talking with Carla, she wanted everyone to know that they are also helping otherst in Northern Virginia. Carla asked that if you have any gently used adult coats or adult Sweaters outerwear that you are not using, please send them to our next Board of Directors Jackets meeting in April. The Ladies Auxiliary will collect them and donate them to Gartland Center for Community Mental Health. If you would like to donate, Lynn and Lex- Dress Shirts aLynn Hooper have given us a list of items they need. Suits For Interviews AWARDING SCHOLARSHIPS Shoes Annually, the Ladies Auxiliary has awarded scholarships to a graduating high school Socks senior who is the son, daughter, or grandchild of a VIADA member. This year is no different, so if you have a graduating senior, take some time to fill out the Ladies Aux- Travel Size Toiletries iliary scholarship application found on our website. The deadline is April 2, 2019, and Wash Cloths $2,000 is up for grabs, so don’t let this pass you by! Download an application: https:// goo.gl/K856oW Towels Blankets FILL-A-WISH PROGRAM We also talked about the Fill-A-Wish program and they are always looking for chil- Water dren in need to make life a little easier. It has been a few years since they were able to Snacks Fill-A-Wish, but love doing it. We have more information about this program on our website, and past wishes have included iPads, wheel chairs, and American Girl dolls. Small Suitcases with Wheels Please send the completed application to the VIADA state office. Download a Fill-A- Backpacks Wish application: https://goo.gl/gSb5to CONVENTION BASKET DONATIONS’ cd Last, but certainly not least, it is never too early to talk about convention! The baskets that were auctioned off at last year’s convention were a huge hit and many thanks to the creativity and thoughtfulness of our VIADA members! Since the response was so For more great, the ladies are doing it again! Carla is asking each district to donate a theme basket or container. It can be local items from your area of the Commonwealth, a beach information, basket, a cooler filled with tailgate items, or a holiday basket to get you in the mood! Talk among your members and let your imagination run wild! The more creative your Call (703) 799-4956 district is, the more talked about it will be and you know a dealer will pay top dollar or email: to bring your basket home! [email protected] The Ladies Auxiliary is doing a great job and provides a helping hand to those in need. Carla and her crew are always on the lookout for more members to help with projects and fresh ideas. If you are interested in being a valuable part of this organization, please reach out to Carla Boucher ([email protected]). You will be glad you did! n

THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 | 17 NEW AND RENEWED MEMBERS Thank you for your support! NEW MEMBERS GAC Automotive Center Rent A Wreck of Richmond 1st Choice Auto Sales Frank Eates Matthew E Allen III Mr. Zaber Hamed P.O. Box 7007 8410 W Broad St. 9772 Fairfax Blvd. Portsmouth, VA 23707 Henrico, VA 23294 Fairfax, VA 22031 (757) 393-4021 (804) 308-2624 (703) 273-9310 District 1 District 2 District 4 Hampton Roads Harley Davidson Inc. Revolution Auto Sales A & E Auto Sales LLC Mary Hughes Dane King Ta-Mon D Witcher 6450 George Washington Memorial Hwy. 7104 Boydton Plank Rd. 4000 Virginia Ave. Yorktown, VA 23692 Petersburg, VA 23803 Collinsville, VA 24078 (757) 872-7223 (804) 895-1134 (276) 201-3271 District 1 District 2 District 5 Heider Marketing & Advertising South Hill Motor Company ACV Auctions Ronald Heider Cameron Lundy Jesse Ball 4663 Haygood Road, Suite 213 1251 W Danville St. 640 Ellicott St. Virginia Beach, VA 23455 South Hill, VA 23970 Buffalo, NY 14203 (757) 447-4987 (434) 584-9175 (716) 983-7906 District 1 District 2 District 4 J-Spec Auto Sports Inc. Woody’s Classic Automotive, LLC Auto Chiefs Inc. Karimdad Hashuri Lisa Woodward Raj Lal 8409 Sanford Dr. 3785 Steelsburg Hwy. 206 Tyler Von Way, Ste 102 Henrico, VA 23228 Cedar Bluff, VA 24609 Fredericksburg, VA 22405 (804) 525-6287 (276) 963-3632 (540) 628-0100 District 2 District 8 District 4 KADS Auto Group LLC WTKR Channel News 3 BirdEye, Inc. Mr. Sergio Sorto John Witte David Tulkin 25284 Pleasant Valley Rd., Unit 102 720 Boush St. 250 Cambridge Ave., Ste #103 Chantilly, VA 20152 Norfolk, VA 23510 Palo Alto, CA 94306 703-880-6655 (757) 446-1324 (650) 313-5225 District 4 District 1 District 1 Koons Automotive Inc. RENEWING MEMBERS City To City Auto Sales LLC John Koons III AA Motors LLC • Andy Almarode Omar White 401 James Madison Hwy. Alars Inc. • Alvin Woods 507 E Laburnam Ave. Culpeper, VA 22701 Arlington Motors Inc. • Noel Santos Richmond, VA 23222 (540) 812-2444 Auto Plus LLC • Saeid Pooresmaeil (804) 729-6322 District 7 Beach Auto Brokers Inc. • Brian Jones District 2 Ben Edwards Auto • Ben Edwards Nawabe Automotive Group Inc. Blue Ridge Auto Center Inc. • Lisa Whited Edinburg Used Truck Sales Inc. Abdul Nawabe16040 Brandy Rd. Brookside Auto Sales • Jerry Kidd Matthew Burgwald Culpeper, VA 22701 C & G Imports Inc. • Gavin Marks 213 S Main St. (540) 317-1999 C & P Auto Sales Inc. • Steve Konwerski Edinburg, VA 22824 District 7 C. R. Garland Auto Sales • Clyde Garland Sr. (540) 984-9418 Callao Car Center • John Wayland District 7 Premier Auto Solutions & Sales LLC Newsome Nicole Hathaway Campbells Used Cars Inc. • Tunis Enterprise Car Sales 3750 Pocahontas Trail Campbell Tommy Pelfrey Quinton, VA 23141 Car Castle • Paul Tashner 947 J Clyde Morris Blvd. (804) 932-9333 Car Web • Farshad Fakhriyazdi Newport News, VA 23601 District 2 Cars Plus of Danville Inc. • James Mobley (757) 596-4103 Caspian Auto Motors • Elshan Bayramov District 1 Cavalier Motor Works LLC • Robert Buck Jr.

18 | THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 NEW AND RENEWED MEMBERS

Central Virginia Rental • Daniel Showalter Piedmont Motors • Mack Chehreh Smith’s Auto Sales • Jody Smith Sr. Century 1 Motors Inc. • Wade Nairn Price Is Right Auto Sales Inc. • Clarence Snyder’s Auto Sales Inc. • David Snyder Certified Motors • Richard Green Arrington Jr. Star City Car Sales • William Roberts Collier Motors Inc. • Ned Collier Quality Auto Sales • Joe Lane Starzone Auto LLC • Rauf Cheema Dandees Inc. • Aaron Brewster Quality Auto Source Inc. • Scott Garber Staunton Tractor Inc. • Winston Phillips Dixie Motors Co • William Cones Ray’s & Cee’s Auto Sales & Rentals • Marco Steve Farmer Auto Sales Inc. • Steve Donovan’s Used Cars • Edward Donovan Richardson Farmer Dream Auto Group LLC • Mansour Wassel Ray’s Auto Recovery Sales Rental LLC • Surfside Auto Co • David Glaus Drive Away Cars • Mark Cole Raymond Wilborne The Car Exchange • Joe Anthony Ramon E & M Auto Sales LLC • Eric Jenkins Rick’s Auto Solution • Ricky Miles Trinity Pre Owned Auto Sales Inc. • Andre E Z Cruz Auto Sales LLC • Robert Hart Riverside Auto Inc. • Robert Skeens L Riddick East Coast Auto Sales LLC • Eric Senn Robert Youngs Auto & Truck Inc. • Robert Ultimate Cycle • Peter Daniel East End Auto Sales Inc. • Leo F. Gay Jr. Young VA Beach Truck Center • Weldon Easy Ride Auto Sales Inc. • John Hattar Royal Imports Inc. • Jacob Mahgenefteh Whitehurst EF Motorsports • Eddie Falk Jr. Ruckersville Automart LLC • Earl Powell VA Cars Inc. • Brian Schrimpsher Elite Auto Wholesale • Roberto Barahona S & S Sales • Gordon Shelton Van Sales by Woodfin LLC • Joseph Experts Motors LLC • Kobby Sparks Scotts Auto Wholesale LLC • Scott Breon Woodfin III EZ Ride Auto Sales LLC • Richard Byrum Semones Automotive Inc. • Richard Wagner’s Used Cars • David Wagner F & A Auto Sales Inc. • Frank Coates III Semones Wamsley Service Center • Neil Wamsley Fairfax Motors Inc. • Andrew Gurowitz Shenandoah Auto Parts Inc. • Anthony Wayne Talley Auto Sales • Wayne Talley Fast Lane Performance LLC • Kim Walrond Wine Automotive • Jeffrey Wine OConner Shore Drive Auto World • William Woodbridge Auto Sales • Marylou FC Auto • Kian Nosrat Robinson Your Kar Company Inc. • Mark Dolson Fred’s Executive Auto • Fred Abbasi Shoreline Auto Center Inc. • Jody Midgette Green Automotive • Lawrence Green Smithfield Auto and Truck Center • Hayden’s RV’S • Charles Cheek Anthony Macioci Iconic Motor Car Co • Brenden Updyke Ideal Auto Sales LLC • Stephen Wyrick Insight Motors LLC • Isaac Abban Jr. J & R Auto Parts & Salvage Inc. • James Moon Jerry’s Auto Sales • Elva Pugh REMINDER Kenny’s Auto Mart • Kenny Snyder Keysville Auto Center Inc. • Randy ONLINE RECERTIFICATION COURSE Claybrook L & B Auto Inc. • Paul Martin Take this course at your own pace at your home or work Lester Auto Sales Inc. • Carson Lester Jr. computer, iPad or even on your mobile phone. A Q&A review Liberty Motors LLC • Hassen Allani at the end of each chapter will make sure you are aware Linton Motorsport Inc. • Scott Linton of key requirements. You will receive a completion certificate Little Joe’s Mitsubishi • Joseph Falk once you have finished the entire course. Lynn Douglas Motor Company Inc. • Lynn Douglas After completion of your recertification, you may revisit M & M Auto Rental Inc. • Bill Moss your account to refresh your memory of any course material. M & M Auto Sales • Michael Mozingo You still have access to the instructor who can answer M & M Motors • Al Moore questions about the course content. Madison Motors • Paul Foster Maguire & Sons Auto Brokers • Timothy NEW REGISTRATION FEES & WEBSITE Maguire Maxkar Motors • Moneer Sidiqi VIADA Members: FREE plus $25 fee for the MVDB Meek Motors LLC • Davin Meek Non-Members: $25 plus $25 fee for the MVDB Mobjack Motors LLC • Colin Holliday NEW WEBSITE TO REGISTER for Online Course Mullins Used Auto Parts & Recycling LLC • J L Whitlow Jr. www.VADealerRecertification.com Noland Co Drilling Equipment • Virgil Bruinekool QUESTIONS? Peaks Motors Inc. • Joe Tate Call 800-394-1960 or Email [email protected] Pembroke Auto Sales • Thomas Joynt

THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 | 19 How to Sell Cars Getting to On YouTube know Brad BY RONALD A. HEIDER, HEIDER MARKETING & ADVERTISING

6 billion hours. are asking questions. Title your video in a way that answers that question. For exam- That’s the total amount of time people ple, if your video is on getting the best fi- spend watching videos on YouTube every nancing, you could title your video “How to month. Add in that YouTube is the second get the best financing for a new or used car”. most popular search engine in the world, and you’ve got a great opportunity to reach 3) Don’t forget the descriptions. The de- in-market car buyers. scription section below your video have a big impact on SEO. Google uses these de- Before viewing YouTube as a silver bullet, scriptions to understand what your video is you must understand that you need to pro- all about. Make sure to add keyword-rich BRAD WHITE vide help and advice to be successful on content describing the video in this section. BLUEGRASS AUTO SALES YouTube. Your goal should be to help view- PRESIDENT, VIADA ers (a/k/a car buyers) by offering them ad- Finally (and the best part), getting traffic vice. Hard sales tactics almost never work to your web site. YouTube offers multiple How long have you been in the car on YouTube. Handing out generous por- methods to let users interact with your vid- business? tions of advice and entertainment does. eo content. Here are the most popular. I have been in the car business since October 2010. Ready to get started? Here are 3 steps to get Video annotations. Annotations are the you going: bread and butter of YouTube marketing. What do you sell? Step 1: Create your videos Use them to place call-to-actions at differ- I focus on reliable and affordable cars Step 2: Market your videos ent intervals in the video. Consider adding and SUVs under 10K. Hondas and Step 3: Get traffic to your site and sell some cars an annotation at the beginning, middle and Toyotas are my preference. end of the video, as well as the logo, all link-

Simple, right? Not so fast. There’s a little ing back to your website. What is the biggest value in your more to it. VIADA membership? Interactive cards. These are a newer addi- I can’t name just one! The auction card Back to step 1 – creating your videos: The tion that provide interactive elements to the and the Advance Auto Parts discount type of videos you create for your dealer- video. While cards are fun and sophisticat- and rebate program save me thousands ship can vary between product overviews, ed, I recommend reviewing Google’s help of dollars per year. That’s a lot of value, explaining the car buying process and cred- section for more details. but the relationships are priceless! it / finance issues. Remember, you want to provide advice, not make a sales pitch. Sponsored content campaigns. Just like What advice would you give to a YouTube is built on people asking “how do Google PPC ads, you can target your videos beginning dealer? I (fill in the blank)…”? to certain audiences and jump-start your Join the VIADA, of course! Attend organic campaign. In-stream, discovery your district meetings, get involved Think about answering the questions that ads & even non-skippable bumper ads are in the association, and continue your your customers typically ask. Make a list of all available allowing you to reach your au- education by attending Dealer Day and these questions and answer them via video. dience. the annual convention.

Ready to market your videos so viewers can Remember, YouTube is a place for enter- What is your favorite personal car? watch them? Here are a few pointers: tainment and how-to advice. Get creative, My 2001 Chevy Silverado. It reminds show your human side of the dealership me of the first new truck I ever bought. 1) Make your videos based on keywords. and have fun. n Just like your PPC ads that are triggered Get to know Brad and the rest of the by keywords, videos are populated by the Ronald A. Heider is the owner of HMA - VIADA officers at regional and state search terms users ask about. Make sure Heider Marketing & Advertising; a Hamp- meetings and other association events. those terms are in your video. ton Roads based agency servicing the au- Introduce yourself. Get involved. tomotive and auto-aftermarket industries. 2) Incorporate these keywords in your He can be reached at by e-mail at rheider@ video title. Remember, people on YouTube hmaads.com.

20 | THE VIRGINIA INDEPENDENT NEWS | SPRING 2019 RECRUIT A MEMBER TODAY

DID YOU KNOW? It takes a Member to When you join VIADA, you also have access to NIADA get a Member! products and services. As a VIADA member you know the benefits this association has to offer. Share that success with fellow dealers. There is q strength in numbers.

MEMBERSHIP BENEFITS EXTRA PROFIT CENTERS SAVE $$$ • Finance Programs/Manuals • Discounts on Dealership Forms EDUCATION • Service Contracts/Warranties • Auction Card Discounts • Workshops: BHPH / Rental / Title & • Floorplans • Access to Member Benefit / Associate Registration • Rental Program Providers • Dealer Day • Certified Program • Advance Auto Parts & Fisher Auto Parts • The Virginia Independent News Discounts • Used Car Dealer Magazines INSURANCE & PROTECTION • Membership and Services Directory • Monthly eNews Email • Dealer Bond • District Meetings • Garage & Lot Liability HELP HOTLINE & LEGAL COUNSEL • Annual Convention & Expo • Rental Fleet Insurance • Member Hotline… Immediate Answers • VIADA Website / Facebook.com/info- • Privacy Policy Manual / Red Flag Rule to Complex Questions viada • Information to help you stay compliant • Access to Legal Consultation...VIADA • Certified Master Dealer (CMD) Program with Federal & State Laws retains an industry-knowledgeable • www.VADealerRecertification.com • $3,000 Accidental Death and Dismem- Attorney berment / Health Discount Card / Child • One-on-One Consultation Discount ADVOCACY / REPRESENTATION Safety Kits • VIADA represents you AND your VIADA: LARGE ENOUGH TO SERVE, interests SMALL ENOUGH TO CARE! • General Assembly Lobbyists • Congressional Lobbyists • DMV and MVDB Representation • Political Action Committee

MEMBERSHIP APPLICATION (PLEASE PRINT) Date of Membership Dealer’s Business Name Phone Primary Dealer/Operator q Mr. q Ms. Cell Phone Address Fax City/State/Zip Dealer’s License Email Date of Birth Email 2 Web Address Payment q Annual Dues (includes National, State & Local), $325.00 q Auto Renew My Annual Dues q Voluntary VIADA Political Action Committee Contribution, $25.00 (optional) q Check (payable to VIADA) q Cash q Visa q MasterCard q Discover q Amex Total enclosed Credit Card No. Expiration Date Sec. Code Billing Street Address Billing Zip Code Recommended By (Current Member)

Signature

Mail to: VIADA, 4700 Thoroughgood Square, Virginia Beach, VA 23455-4043 | (757) 464-3460 | (800) 394-1960 | viada.org Virginia Independent Automobile Dealers Association 4700 Thoroughgood Square Virginia Beach, VA 23455 (800) 394-1960 | [email protected]

SAVE THE DATE VIADA 2019 Convention & Trade Expo VIRGINIA BEACH, VA October 4-6, 2019 Hilton Virginia Beach Oceanfront