Summer 2010 California FastLane

Discover Gold!

October 22, 2010

Independent Automobile Dealers Association of California

42nd Annual Convention

Holiday Inn Capitol PlazaSacramento, California

Details on page 7!

C A L I F O R N I A

A PublicAtion of the IndePendent Automobile DeAlers AssociAtion of CAliforniA

Summer 2010

FastLane

Discover Gold!

Execut ive Committee

c A l i f o r n i A f A s t l A n e2

Mark GloverVICE PRESIDENT

Azteca Auto SalesSacramento, CA(209) 712-1886

[email protected]

Kevin KellermanVICE PRESIDENT

KGK WholesaleIrvine, CA

(949) [email protected]

Terry DegmetichCHAIRMAN OF THE

BOARDI-Deal Cars

Roseville, CA(916) 870-9254

[email protected]

Larry LaskowskiSR VICE PRESIDENT

The Auto OutletRoseville, CA


David AahlPRESIDENT

North Bay Auto AuctionFairfield, CA


Kirk ShorterVICE PRESIDENT

The Car SourceSacramento, CA(916) 925-0600

[email protected]

Jerry KhanTREASuRER

Legacy Auto SalesSanta Rosa, CA(707) 579-0144

[email protected]

Rod DavisSECRETARY

Brasher’s Sacramento Auto Auction

Rio Linda, CA(916) 991-5555

[email protected]

State Affiliate

4

Summer 2010

Contents

7

5

10

13

12

14

18

c A l i f o r n i A f A s t l A n e�

Executive Vice President’s ReportKacy Wallis, AdvoCal

Report Suspected Unlicensed Activity!

IADAC Preferred Providers

IADAC Membership Benefits20

6

17

IADAC Membership Application21

California Auto Auction V.I.P.’s22

Features

Discover Gold!42nd Annual Convention

Carfax…Added Value???Larry Laskowski, The Auto Outlet

Dealer Bond HelpBond Source Insurance Agency

DMV Industry News

Auction SpotlightManheim San Diego

No DealSacramento Auto Dealers Feeling Used by ‘Cash For Clunkers’

Automotive Dealers RewardsAutomotive Dealers Resource International

In Every Issue

16 New to V.I.P. Auction Card ProgramBrasher’s San Jose Auto Auction

16 2010 Quality Dealer of the YearNominations now being accepted

Executive Vice President’s RePort


In this economy, it’s no wonder we’re seeing a number of independent lots close down. What’s surprising is how many of them have been staples of our communities for several years, even decades. It saddens me to see such good people have to close up shop. With increasing overhead, difficulty obtaining profitable inventory and slow consumer spending, dealers are having to get creative to stay in business. I’ve seen lots open or expand service departments, add smog services and accessory shops.

Another way to stay afloat is to cut expenses. This is where your IADAC membership comes in handy.

Bond Program - We’ve been listening to your calls about the rising costs of a dealer bond. IADAC will soon be unveiling a new Preferred Provider that specializes in selling dealer bonds. We’ve been working closely with them to offer a competitive rate system for IADAC members. Details coming soon.

Auction Card - I hope you all are taking advantage of the $4,600 in free buy/sell fees available from 23 state-wide auctions offered by the card. Remember, every time you renew your dues, you get new cards. This is the benefit that keeps on giving! See the map for participating auctions. Even if

Staying Afloat

you use the card at only four auctions, you save $800 (or more) in buy/sell fees! (For more information on the V.I.P. Auction Card Program, visit: http://www.iadac.org/special.cfm?ID=121&Page=%2D%20Benefits%20%2D%20V%2EI%2EP%2E%20Auction%20Card%20Program.

Preferred Providers - IADAC is always looking to add new Preferred Providers to our growing roster. These vendors offer exclusive discounts and special perks available only to IADAC members. Goods and services include legal counsel, forms, branding/marketing consulting, insurance, book evaluations, service warranties and keys. Check out the complete list: http://www.iadac.org/special.cfm?ID=122&Page=%2D%20Preferred%20Providers.

In addition to helping you save money, IADAC’s mission is to keep you informed and in compliance. This is why the IADAC website is undergoing a transformation. The new look is modern, clean and easy to navigate. We’ll keep you up-to-date on the latest developments by continuing our “Breaking News” segment, legislative updates and access to the magazines. But newly added is the “Ask an Expert!”

section. This will give you an opportunity to have your questions answered by top industry experts, and discuss issues with other dealers. We hope you will find this to be a great resource for your dealership. The new site will debut in August. Editor’s Note: The new site is now up! Check it out at www.iadac.org.

Further your education and knowledge by attending IADAC’s 42nd Annual Convention, on October 22nd at the Holiday Inn Capitol Plaza in Sacramento, CA. Reduced to a one-day format to help save on costs for those attending, we will feature a full day of education, the annual Quality Dealer Awards Luncheon, and the infamous Auxiliary Auction and Awards Banquet. For the educational portion, we’ve been listening to our member needs. Therefore, we will feature branding and marketing sessions, case law update and an industry expert panel. Details are still underway, but a brochure should hit the streets by September. I hope to see you there!

We’re always looking to improve our membership benefits. Let us know what products, goods and services you would like to see by contacting me at [email protected].

Executive Vice President’s RePort


IADAC is coming to an auction near you!

We’ll be conducting IADAC membership drives at auto auctions throughout the state. Stop by our table to pick up the newly designed IADAC hat, FREE to all members! While you’re there you’ll have an opportunity to meet members of the Executive Committee and IADAC staff. We look forward to seeing you there!

August 26 - IADAC Membership Drive at the grand opening of Brasher’s San Jose Auto Auction, San Jose

September 15 - IADAC Membership Drive at Carmax Fresno, Fresno.

September 29 - IADAC Membership Drive at Manheim California, Anaheim

October 19 - IADAC Membership Drive at Brasher’s Sacramento Auto Auction, Rio Linda

October 20 - IADAC Membership Drive at Manheim San Francisco Bay Auto Auction, Hayward

October 21 - IADAC Membership Drive at North Bay Auto Auction, Fairfield

Additional locations pending.

For a limited time IADAC will provide all California auto dealers with e-mail updates on critical legislation and news that impacts your business.

The Department of Motor Vehicles demands that all dealerships stay in compliance with current regulations and statutes. Don’t wait for DMV to cite you for a violation you didn’t know about. Instead, turn to IADAC to get your FREE information. Every year legislation is aimed at auto dealers that negatively impact your business. Get the most

Not an IADAC Member??? Let us help you Stay Afloat

current information delivered to your desktop by signing up for the IADAC email hotline.

To join the hotline, send an email to [email protected], with “HOTLINE” in the subject line. Request alerts today and avoid costly penalties tomorrow. This is a limited time free offer and takes only a moment to get started. Your information will not be sold or shared.

Note: IADAC members are automatically enrolled in this service.

** BREAKING NEWS! ** BREAKING NEWS! ** Check out the newly redesigned IADAC website at:

www.iadac.org. We want to know what you think of the new site. Let us know by emailing us at [email protected].

When it comes to Motor Vehicle Bonds, all dealer principals are not alike. At Bond Source Insurance Agency, we offer a common sense approach to underwriting. A business’ net worth is the key along with the personal character of the business owner.

Dealer Bond HelpSince 1993, Bond Source Insurance Agency is committed to fast and friendly bond service. IADAC Members may contact Contact Nancy R. Chapman, for a bond quote, at 888-855-0100 or email: [email protected]

Discover Gold!IADAC Annual Convention

Sacramento, California

October 22, 2010details coming soon!

Automotive Dealer Resources (ADR). ADR provides independent dealers with FEX Dealer Forms and Bankers Systems Retail Installment

Contracts and Security Agreements. Toll free phone: 877-550-3900, Toll free fax: 888-855-7111, Website: www.dealer-resources.com

Automotive Dealer Resources Consulting (ADRC). ADRC offers a wide variety of services to help you

achieve your goals. Specializing in educating you on how to use social media and the Internet to sell more cars. Toll free phone: 888-292-8080, Website: www.adrconsulting.us/

Black Book. Black Book is a nationally recognized provider

of vehicle valuations. IADAC members will receive a $100 discount on the first annual subscription to one of the following: PDA Xpress, Internet Xpress Deluxe and PC Downloadable Xpress. Toll free phone: 800-554-1026, Website: www.blackbookusa.com

Carlton, DiSante & Freudenberger. As an IADAC

member, you can obtain legal services for labor and employment matters for $295 per hour - a significant discount from their current hourly rate. Offices located throughout California. Website: http://www.cdflaborlaw.com/

Driverz Edge. Driverz Edge was built through the concept of a

user friendly rate card outlining a warranty program for independent dealers. Toll free phone: 888-760-7778, Website: www.driverzedgevsc.com

Gizzi & Reep, LLP. Gizzi & Reep, LLP, provide legal counsel. Partner Stephen Gizzi, is a former independent auto

These are exceptional companies that provide goods and services specific to the car industry. IADAC has a rigorous screening process prior to approving an organization as a Preferred Provider. This process enables us to link you with only the highest quality industry professionals. Your membership guarantees an exclusive reduced or discounted rate through the following providers:


dealer and was a member of IADAC. Phone: 707-748-0900, Website: www.solanolawgroup.com

Guardian Warranty Corporation. GWC provides insured warranties

and service contracts for vehicles up to 150,000 miles. Toll free phone: 800-482-7357, Website: www.guardian-warranty.com

Kelley Blue Book (KBB). Kelley Blue Book provides new

and used up-to-date vehicle pricing and values. IADAC members receive the Trade-In Values as a free upgrade (normally a $99 per month add-on), when they subscribe to KARPOWER Online. Toll free phone: 800-BLuE-BOOK, Website: www.kbb.com

Michael C. Rogers, Esq. Attorney Michael C. Rogers of Dealer Legal Services.net,

focuses on the representation of new and pre-owned automobile dealers and affiliated businesses such as automobile service centers and flooring lenders in southern California. Office phone: 858-587-3555, Website: www.sandiegoattorney.com

Secured Mobility. Secured Mobility is a designer and marketer

of replacement automotive keyless entry remotes, transponder keys and programming technology. Office phone: 866-289-5397, Website: www.keylessride.com

Zurich Insurance. Zurich is a leading commercial property-casualty insurance provider taking care of the

risk protection and wealth creation needs of the independent auto dealer. Toll free phone: 800-391-1732, Website: www.zurichna.com



Executive Committee Meeting

Legal Update IADAC Preferred Providers Gizzi & Reep. Highlight recent case law as it pertains to the independent dealer, and offer tips on how to stay in compliance and out of trouble.

Board of Directors MeetingAll members encouraged to attend. General IADAC business discussed. Bring your suggestions and ideas to share. Quality Dealer Luncheon

Who will be IADAC’s 2010 Quality Dealer??? Nominations accepted until September 1, 2010. Contact IADAC for nomination instructions - 888-315-2869 or visit www.iadac.org.

Vehicle History ReportsScott Palmer, AutoCheck. Get your questions about vehicle history reports answered by the experts.

Branding, Marketing and Social MediaIADAC Preferred Provider Mike Morgan, ADR Consulting. The way people buy automobiles is changing, and that can make it tough for the independent auto dealer. Learn factors that could keep a consumer from ever entering your store; and how your dealership can succeed, no matter how tough times get.

Industry Issues Question and Answer Panel DiscussionInvited Guests: Bill Dohring - IADAC Lobbyist, Ray Radford - California Recoveries Company, DMV and ARB will be on-hand to answer your questions pertaining to legislation, repossessions, vehicle registration, smog and more!

Awards Banquet and Auxiliary AuctionWe’ll close the convention with a bang, as good times are always on tap for this annual tradition of honoring IADAC leadership and raising money for the Victor J. and Ethel G. Memorial Scholarship Trust Fund!

October 22, 2010

Discover Gold!Discover Gold!Independent Automobile Dealers Association of California


Holiday Inn Capitol Plaza • Sacramento, California

TENTATIVE CONVENTION AGENDA

TUES., OCT. 19, @ 9 a.m.Brasher’s Sacramento

6233 Blacktop RoadRio Linda, CA 95673

WED., OCT. 20, @ 9 a.m.Manheim San Francisco Bay

29900 Auction CtHayward, CA 94544-6914

THURS., OCT. 21, @ 10 a.m.North Bay

250 Dittmer Road Fairfield, CA 94534

MEMBERSHIP DRIVESnetwork with a variety of vendors at these unique events!

While in Sacramento, use your IADAC V.I.P.

Auction Cards!

Join us at the following membership drives preceeding the convention for a chance to

meet with a variety of vendors, and use your auction card!

Brasher’s Sacramento Auto Auction – Tuesday, October 19. Located just 11 miles from the hotel.

Manheim San Francisco Bay – Wednesday, October 20. Located in Hayward only about two hours away.

North Bay Auto Auction– Thursday, October 21. Located in Fairfield only a 45 minute drive.

If you haven’t already, use your IADAC Auction Card for a free buy/sell fee at each

location, and browse through our variety of

vendors!

Discover Gold!


42nd Annual ConventionHoliday Inn Capitol PlazaSacramento, California

October 22, 2010

Discover Gold!Independent Automobile Dealers Association of California

42nd Annual Convention Discover Gold!



October 22, 2010



REGISTRATION FORMGENERAL INFORMATION

Hotel InformationWe have reserved a small block of rooms at The Holiday Inn Capital Plaza, 300 J Street, Sacramento, CA 95814. The room cutoff date is September 21, 2010, so make your reservation NOW. Otherwise, you risk paying a higher room rate or not being able to reserve a room.

The special room rate is $115 per night for a standard single/double occupancy room (all room prices subject to applicable taxes). Call the hotel directly at (916) 446-0100 or (800) 405-4329 and mention “IADAC” for your discounted room reservations.

AirportThe Sacramento International Airport is 11 miles from the hotel. Ground transportation is available by taxi, shuttle and limousine. There is also a rental car station on the airport grounds.

All attendees are responsible for making their own travel and hotel arrangements.

Rental Car IADAC members are eligible for discounted rental car rates through Hertz. Just mention the CDP card #1779163 when making your reservation at (800) 654-2200. You will need to present a member discount card for identification when you get to the Hertz counter. To obtain your card, contact Linda Albracht at (916) 446-5165 or (888) 315-2869.

ParkingOvernight self parking is available at the discounted rate of $13 per vehicle, per night.Valet available for $17 per vehicle.

Cancellation PolicyThere will be a full refund of all fees paid if IADAC cancels the program. Cancellations must be received by October 1, 2010, and are subject to a $15 cancellation fee. There will be no refunds after October 1, 2010. All cancellations must be received in writing.

ConfirmationsConfirmations will be sent to the e-mail address provided on the registration form. If you do

not have an e-mail address, we will send your confirmation to the address furnished.

Special AccommodationsThe seminar facilities are accessible to the physically disabled. Requests for accommodations for the disabled should be made at the time of registration, but no later than two weeks prior to the start of the seminar. Call (888) 315-2869 for assistance.

Tax Deductions of ExpensesSee Treasury Regulation 1.162.5; Coughlin v. Comm., 203 F.2d.307.

Name:

Name on Badge (if different than above):

Business Name:

Address:

City, State, Zip:

Daytime Phone: Cell:

Fax: E-mail:

Website:

Please list any special accommodations, including special meals (vegetarian, etc.):

IADAC Member Convention Registration $165 $195 X____= $ IADAC Member Guest Convention Registration $135 $165 X____= $ Non-Member Convention Registration $265 $295 X____= $ Non-Member Guest Convention Registration $235 $265 X____= $ IADAC Membership Dues $295 X____ TOTAL: $

GRAND TOTAL: $

Check Enclosed Charge my: VISA MasterCard

Card #: Exp. Date:

Security Code: Signature:

RETURN COMPLETED FORM WITH PAYMENT TO:

FAX (888) 315-2879

IADAC, 1000 Q ST., SUITE 222SACRAMENTO, CA 95811-6518

www.IADAC.org

Questions???Call toll free at (888) 315-2869

Fees:

Payment:

MEMBERSHIP CATEGORIES:$295 - RegulaR MeMbeR: Regular membership is limited to any sole proprietorship, partnership or corporation which is engaged in buying and selling motor vehicles as a principal part of its business; holds a valid new, used or wholesale motor vehicle dealer’s license issued by the California Dept. of Motor Vehicles; and adheres to the Code of Ethics of this association.

Dealer in: Used New License #: Other (describe):

$295 - associate MeMbeR: Associate membership is limited to any sole proprietorship, partnership or corporation which is engaged in business related to or associated with motor vehicle dealers; has an established place of business in California; does not hold a new, used or wholesale motor vehicle dealer’s license issued by the California Dept. of Motor Vehicles; and, adheres to the Code of Ethics of this association.

Yes! I wish to join IADAC. I agree upon signing and if accepted as a member, to uphold the Bylaws, its Code of Ethics, and all local, state and federal laws pertaining to the automobile business. Signature (required): Date:

By checking this box, above, I am consenting to and giving IADAC/NIADA, its affiliates and subsidiaries, my permission to (until I give written notice to discontinue) contact me and provide information to me at the mailing and e-mailing addresses, telephone and fax numbers I have provided. I certify that (I am or we are) eligible for membership in IADAC. A portion of your dues will be used for lobbying activities as defined by the Revenue Reconciliation Act of 1993. It is estimated that the percentage used for such purposes will be 22.8%. This portion of your dues is not deductible as an ordinary and necessary business expense. Contributions or gifts are not deductible as charitable contributions for federal income tax purposes.

Early-BirdrEgular

postmarked by 9/17/10 after 9/17/10

Guest(s) Name:

While in Sacramento, use your IADAC V.I.P.

Auction Cards!

Join us at the following membership drives preceeding the convention for a chance to

meet with a variety of vendors, and use your auction card!

Brasher’s Sacramento Auto Auction – Tuesday, October 19. Located just 11 miles from the hotel.

Manheim San Francisco Bay – Wednesday, October 20. Located in Hayward only about two hours away.

North Bay Auto Auction– Thursday, October 21. Located in Fairfield only a 45 minute drive.

If you haven’t already, use your IADAC Auction Card for a free buy/sell fee at each

location, and browse through our variety of

vendors!

Discover Gold!



October 22, 2010


42nd Annual Convention Discover Gold!



October 22, 2010



REGISTRATION FORMGENERAL INFORMATION

Hotel InformationWe have reserved a small block of rooms at The Holiday Inn Capital Plaza, 300 J Street, Sacramento, CA 95814. The room cutoff date is September 21, 2010, so make your reservation NOW. Otherwise, you risk paying a higher room rate or not being able to reserve a room.

The special room rate is $115 per night for a standard single/double occupancy room (all room prices subject to applicable taxes). Call the hotel directly at (916) 446-0100 or (800) 405-4329 and mention “IADAC” for your discounted room reservations.

AirportThe Sacramento International Airport is 11 miles from the hotel. Ground transportation is available by taxi, shuttle and limousine. There is also a rental car station on the airport grounds.

All attendees are responsible for making their own travel and hotel arrangements.

Rental Car IADAC members are eligible for discounted rental car rates through Hertz. Just mention the CDP card #1779163 when making your reservation at (800) 654-2200. You will need to present a member discount card for identification when you get to the Hertz counter. To obtain your card, contact Linda Albracht at (916) 446-5165 or (888) 315-2869.

ParkingOvernight self parking is available at the discounted rate of $13 per vehicle, per night.Valet available for $17 per vehicle.

Cancellation PolicyThere will be a full refund of all fees paid if IADAC cancels the program. Cancellations must be received by October 1, 2010, and are subject to a $15 cancellation fee. There will be no refunds after October 1, 2010. All cancellations must be received in writing.

ConfirmationsConfirmations will be sent to the e-mail address provided on the registration form. If you do

not have an e-mail address, we will send your confirmation to the address furnished.

Special AccommodationsThe seminar facilities are accessible to the physically disabled. Requests for accommodations for the disabled should be made at the time of registration, but no later than two weeks prior to the start of the seminar. Call (888) 315-2869 for assistance.

Tax Deductions of ExpensesSee Treasury Regulation 1.162.5; Coughlin v. Comm., 203 F.2d.307.

Name:

Name on Badge (if different than above):

Business Name:

Address:

City, State, Zip:

Daytime Phone: Cell:

Fax: E-mail:

Website:

Please list any special accommodations, including special meals (vegetarian, etc.):

IADAC Member Convention Registration $165 $195 X____= $ IADAC Member Guest Convention Registration $135 $165 X____= $ Non-Member Convention Registration $265 $295 X____= $ Non-Member Guest Convention Registration $235 $265 X____= $ IADAC Membership Dues $295 X____ TOTAL: $

GRAND TOTAL: $

Check Enclosed Charge my: VISA MasterCard

Card #: Exp. Date:


RETURN COMPLETED FORM WITH PAYMENT TO:

FAX (888) 315-2879

IADAC, 1000 Q ST., SUITE 222SACRAMENTO, CA 95811-6518

www.IADAC.org

Questions???Call toll free at (888) 315-2869

Fees:

Payment:


Dealer in: Used New License #: Other (describe):


Yes! I wish to join IADAC. I agree upon signing and if accepted as a member, to uphold the Bylaws, its Code of Ethics, and all local, state and federal laws pertaining to the automobile business. Signature (required): Date:

By checking this box, above, I am consenting to and giving IADAC/NIADA, its affiliates and subsidiaries, my permission to (until I give written notice to discontinue) contact me and provide information to me at the mailing and e-mailing addresses, telephone and fax numbers I have provided. I certify that (I am or we are) eligible for membership in IADAC. A portion of your dues will be used for lobbying activities as defined by the Revenue Reconciliation Act of 1993. It is estimated that the percentage used for such purposes will be 22.8%. This portion of your dues is not deductible as an ordinary and necessary business expense. Contributions or gifts are not deductible as charitable contributions for federal income tax purposes.

Early-BirdrEgular

postmarked by 9/17/10 after 9/17/10

Guest(s) Name:


One of the most discussed topics among auto dealers are the recent changes made to Carfax reports. Chris Basso, public relations representative for Carfax agreed to answer a series of questions for IADAC members. The new advertising program pushes the consumer to ask for the “free” Carfax report and the reports now include a “Price Calculator”. Carfax has decided to offer an opinion on valuation based on the data available to Carfax. That adjusted valuation now displays at the top of a report. Not all vehicle history is always available to Carfax and as such raises suspicion as to the accuracy (or inaccuracy) of the valuation itself. Some new car franchises won’t allow their customers’ private service records displayed in cyberspace. If a report does not contain all the history, can a fair evaluation be made? Additionally, auto auctions and the California DMV do not validate Carfax by allowing information in those reports to be used as arbitration or to change existing records. It seems as though Carfax is using data from condition reports as repossessed vehicles are being dropped off at auto auctions. An accident/damage report may be triggered as a result of

…ADDED VALUE???CARFAX

a condition report that requires only paintless dent removal. Many dealers are looking to alternative sources for vehicle history reports as a result of the questions Carfax reports raise. You can be the judge and form your own opinion of the valuation and the reports in general.

Q: Retail auto dealers who offer Carfax to their customers sometimes find discrepancies on a report, particularly on odometer readings that must be explained to the retail customer. Is there any way to identify an error and if so, how can it be fixed?

A: On the rare occasion dealers identify a record on a Carfax Vehicle History Report that they believe needs to be updated, they can submit a Data Correction Form. To access the form, dealers just need to log in to their Carfax account on carfaxonline.com. A Carfax representative will contact the dealer and work with them throughout the research process. Depending on the nature of the issue, many are resolved in a matter of hours – more extensive issues may take a few days. After the research is complete, the Carfax representative will inform the dealer whether the

record has been confirmed or updated.

Q: On a Carfax report, how often will the report include all the data, including maintenance history, accident reports, and title status changes that a vehicle has ever had?

A: Carfax has over 34,000 data sources that report their information to us. Many incidents go unreported to anyone, making it nearly impossible for Carfax or anyone else to know about every single event in a car’s past. However, the Carfax Buyback Guarantee offers unprecedented protection for used car buyers and sellers, ensuring that they’ll know about any DMV-reported branded titles (salvage, flood, fire, EML, NAM, manufacturer buyback) or Carfax will buy the car back. In addition, we’re continuously adding new sources to increase the amount of information we already have about vehicle maintenance and less severe accidents, as well as expand the scope of our data.

Q: Carfax has implemented a new feature, the Price Calculator. What can you tell us about this feature?

By: LARRy LAskowskI – ThE AuTo ouTLET, IADAC sEnIoR VICE PREsIDEnT


A: The Carfax History Impact feature helps dealers and consumers understand how a vehicle’s history affects retail book value. Every day consumers and dealers make purchasing decisions with the help of a Carfax Vehicle History Report. Based on data from previous car sales, the Carfax History Impact reflects the amount consumers adjust the retail book value after taking into account the information available in a Carfax Vehicle History Report. The Carfax History Impact is a valuable tool that dealers are using to compare their asking price to the adjusted retail book value and to hold gross on each sale.

Q: Does the Price Calculator update as often as Kelley Blue Book?

A: The Carfax History Impact is a dynamic tool that can update periodically to reflect marketplace demand and when information about a specific vehicle is added to a Carfax Vehicle History Report. Dealers can input any of the current retail book values they use into the Price Calculator to help determine how the information reported to Carfax affects those values.

Q: I saw a report on a vehicle that identified a branded title, “lemon law buyback” that had a plus number in the Price Calculator, meaning that Carfax thinks a lemon law branded title is worth more than a non-branded title. Dealers in the industry might disagree with that assessment. Can you address that? (For your reference, vin # 1FTNW21P84EC01648)

A: The Carfax History Impact is an assessment of the totality

of the vehicle history information reported to Carfax – no single element determines the Carfax History Impact value. It reflects how much consumers adjust the retail book value based on the history for that specific vehicle. In this case, the branded title is a manufacturer buyback that was issued 6 years and over 80,000 miles ago. The car is still being driven and no other major issues have been reported since the branded title was issued. Our analysis of marketplace data shows that consumers would be willing to pay a little more than what the current retail book value is for this car based on all the information in the Carfax Vehicle History Report.

Q: When Carfax identifies a possible discrepancy in mileage, does Carfax make any attempt to verify the actual miles?

A: We have systems in place that alert us and our customers to mileage discrepancies on the Carfax Vehicle History Report. We are happy to research and verify any mileage discrepancy or other issue submitted by a dealer through the Data Correction Form. Typically mileage discrepancy issues can be verified in a matter of hours.

Q: Often times the accident indicators on a report are very vague. Is there any way to see the actual report of the incident?

A: Carfax Vehicle History Reports include as much detail as we receive about accidents. In some cases, state and local jurisdictions may make full police accident reports available to the public. Carfax customers that want the actual accident report can inquire with law enforcement, the courthouse or online providers.

Q: Does Carfax purchase retail data statistics from any company to back up the values in the price calculator? If so, what company provides the data?

A: We determine the Carfax History Impact by analyzing millions of vehicle transactions to see how consumers adjusted the retail book value based on the vehicle’s history.

Q: Legal experts warn dealers not to advertise vehicles with “Carfax one owner” due to the potential increase in liability from possible errors. Will Carfax provide legal defense for a dealer if Carfax information results in a lawsuit to the dealership as a direct result of incorrect information from a Carfax report? Are you aware of any current lawsuits naming an auto dealer or Carfax that are related to your product?

A: Carfax Vehicle History Reports are a valuable tool dealers use to help buy and sell used cars. Carfax does not provide legal advice to dealers as to how to advertise the information in a Carfax Report.

Q: What is the mission statement of Carfax?

A: Carfax provides trusted information that helps millions of people buy and sell used cars with more confidence.

If you’ve had problems explaining discrepancies in a Carfax report, or have any other questions or comments you may direct them to your local Carfax account manager or call 800-274-2277.

You can stay up-to-date on DMV news by subscribing to their e-mail alert

system. To take advantage of this free service, please subscribe at http://www.emailalert.dmv.ca.gov/subscriptions.asp

CALIFoRNIA DEPARTMENT oF

MoToR VEHICLESIndustry News


Revised REG 656 FormThe Application for Lien Sale Authorization and Lienholder’s Certification (REG 656 REV 06/10) form has been revised. The revised REG 656:

Changes the Lien Cost field language from, “As of (Date) the amount and basis for my lien is: Lien Cost (maximum $100),” to simply “Lien Cost.”

Adds a note to, “Refer to Civil Code Section 3074 when calculating maximum lien sale cost.”

Order the revised REG 656 using existing procedures or access the revised REG 656 on the DMV website at www.dmv.ca.gov. Once the REG 656 (REV 06/10) forms are obtained, destroy older versions.

Any version of the REG 656 will be accepted through December 31, 2010. However, as of January 1, 2011, only the REG 656 (REV 06/10) will be accepted. Applications containing older versions of the REG 656 will be returned on a Report of Deposit of Fees (RDF).

Civil Code (CC) §3074 states that a lienholder may charge a fee for lien sale preparation not to exceed $70 for a vehicle valued at $4,000 or less and not to exceed $100 for a vehicle valued over $4,000. The CC does not allow more than 50 percent of theallowable lien costs to be charged until lien sale notifications are mailed to interested parties and the lienholder or registration service has possession of the required lien processing documents.

Call the DMV Customer Communications Section, at (916) 657-6560 for further clarification.

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GMAC Name ChangeOn August 23, 2010, General Motors Acceptance Corporation (GMAC) auto finance division will change its brand name to Ally Financial.

As of August 23, 2010, accept the following names on ownership releases for GMAC:

VaultGMACGMAC Financial ServicesAlly FinancialAlly BankAlly Capital

use Electronic Lien and Title (ELT) codes:X21 for Ally Financialu39 for GMACAlly Bank, Ally Capital, and GMAC Financial Services have no ELT codes.

GMAC changed its corporate brand name to Ally Financial Incorporated on May 10, 2010, and their auto finance division will change its brand name as of August 23, 2010.

Call the DMV Customer Communications Section, at (916) 657-6560 for further clarification.

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Industry News

c A l i f o r n i A f A s t l A n e1�

To BE THE BEST AT WHAT WE Do! That is the message Manheim San Diego sends to its employees to ensure they are giving 110% to their customers. The Manheim San Diego philosphy is whether you are parking a car, working titles, detailing cars or driving the airport van you need to do it better then anyone else and customers will keep coming back. The “biggest little auction in Southern California” is what their customers like to call them because of the attention they give to detail and how they make you feel like part of the family.

Established in 1984, and relocated to its current location, in Oceanside, in 1991, Manheim San Diego is located between San Diego and Orange counties in beautiful Southern California. With an 8 lane facility located on 78 acres, it is almost

Auct ion sPotl ight

Manheim San Diego“the Biggest Little Auction in So Cal”

impossible to misplace a car. They also have one of the finest reconditioning facilities on the west coast, turning out the highest quality of service in the auction industry. With weekly sales on Wednesday, they feature numerous accounts such as Toyota and Lexus Financial Services, Hyundai Capitol America, Hertz Corp., GSA Public Auctions, Enterprise, and National Remarketing Services, just to name a few. With sales percentages running around 70% each week, it’s no wonder the 800 plus buyers (over 250 via simulcast each week) keep

making the trip to Oceanside to purchase their cars.

They also offer TRA (damaged and salvage) for those challenged units that cannot make it across the block. With weekly sales starting at 9 a.m., there is no reason to let those cars sit as they have established a

market for them as well. Included in their line up is a Truck and Specialty Sale which is offered live monthly, and weekly via OVE.com, for those RV’s, boats and motorcycles that always draw a crowd.

If you have not tried Manheim San Diego, you’re invited to take a look at the BIGGEST LITTLE AuCTION in Southern California. Why not take advantage of your IADAC V.I.P. Auction Card and use your free buy/sell fee while you’re there?!

In The news

The lack of supply was made worse by CARS…


Mike Macaulay has been in the automobile industry for 42 years. As a used-car dealer, he has a unique perspective on the economy, its volatility and its effect on his customers.

I break people’s hearts every day, unfortunately,” said Macaulay, owner of Car Systems in Roseville, specializing in trucks and sport utility vehicles. He’s referring, of course, to the economy, and the fact that so many would-be car buyers have seen their credit take a nose dive.

That makes them ineligible for cars that don’t involve “sub-prime” financing, which Macaulay doesn’t offer because of the risk.

“The demand is higher than ever, with our economy, and with people’s credit issues—foreclosures, credit-card defaults. People need these cars. It’s the only kind of car they qualify for, but now those cars are not available,” Macaulay told SN&R.

Macaulay and other independent dealers say matters are made worse by the dearth of affordable used cars in the market, and the widely touted “cash for clunkers” program.

The clunkers program was a piece of federal stimulus that allowed consumers to trade in their older-model vehicles for rebates toward more fuel-efficient new cars between July 1 and November 1, 2009.

Administered by the National Highway Traffic Safety Administration through the Department of Transportation, the clunker program, officially called the Car Allowance Rebate System, or CARS, worked like this:

Trade-in vehicles must have been manufactured less than 25 years before the date of the trade-in and have a “new” combined city/highway fuel economy of 18 miles per gallon or less. Clunkers also must have been in drivable condition and been continuously insured by the same owner for 12 months prior to the trade-in. In return, dealers would give customers up to $4,500 in rebates toward the purchase of a new car.

The program required dealers to destroy all trade-ins and prohibited them from selling even usable parts

from the vehicles. The idea was to get “gas guzzlers” off the road, and that’s what happened—nearly 700,000 vehicles were destroyed.

“I think it helped the new car industry get out the ’09 models they needed to get rid of,” said John Brasher, owner of Brasher’s Sacramento Auto Auction. “But it took [700,000] cars off the street prematurely—and hurt families who could not afford to buy new cars by taking the older cars off the market, who can only afford a cheap car—and pushed prices

higher by driving demand higher, because supply was already short.”

Brasher was born into the family business—his family has owned and operated the auto auction since 1958. Two or three years ago, prior to the CARS program, Brasher auctioned 1,200-1,300 cars per week. Since CARS, it’s dropped to about 1,000 per week, he said.

No DEALSacramento Auto Dealers Feeling Used By ‘Cash for Clunkers’ Program

By Amy yAnnELLo, sACRAmEnTo nEws & REVIEw

“”

In The news


The lack of supply was made worse by CARS, he said, but actually began a couple of years earlier, and continues today, along with the continued decline in new-car sales.

“Fewer new cars being sold means fewer used cars on the market,” Brasher explained. “I buy a new car today, it becomes a used car tomorrow. There are 50 million cars on the road in the [United States]. Every year, 10 million get scrapped and taken off the road. In a normal year, you’ll sell 10 million—but then you drop to 6 million new cars sold. You’re still scrapping 10 million cars, but only selling 6 million new cars.

“And you have that happen three, four years in a row—and then add CARS on top of that—and you get the situation we’re in now,” he said, meaning lower inventory and higher prices.

Macaulay is a harsher critic of the CARS program, calling it a “do-nothing, feel-good, window-dressing” government program that failed on many levels.

“I’ve raised my prices twice in the last six months. My $5,000 car is now a $7,000 car. I just had to. And the $3,000, $4,000, $5,000 car I’d like to stock is no longer there—so the CARS program has affected me, too.”

Sacramento News &Review asked officials at the Department of Transportation about the CARS program and its effect on the used-car industry and on credit-poor consumers. But the agency sent a boilerplate from Secretary Ray LaHood.

“Cash for Clunkers was wildly successful,” according to LaHood. “In a matter of weeks, Americans traded in nearly 700,000 gas-guzzlers for more fuel-efficient cars, improving the environment and providing a lifeline to the auto industry. Our program was a win for everyone, and most importantly it gave the economy a shot in the arm at a time when we desperately needed it.”

While it’s true that the program gave new car dealers some $2.8 billion in trade-in money, Macaulay said even that wasn’t the boon to the economy it was made out to be.

“New car dealers were greedy,” he explained. “They were taking cars in trade-in that still had six, 10 years of life left in them. So instead of consumers waiting for, say, another three years to buy a new car, they bought early, before they needed to. The significance of that is that new car dealers got the money now—but they still have the same overhead, the same number of employees to maintain … so they really did themselves a disservice by cutting

out future car buyers down the road by getting them now. Essentially, they prostituted their market by taking the quick buck.

“I’ve seen plenty of new car dealers who gave consumers the $4,500 for a car that was actually worth $7,500. So it hurt the consumer in two ways, giving them less than what it was actually worth, and [encouraging] them to buy a new car when they didn’t need one yet. And it hurt the new-car industry in the long term, because it took a potential buyer out of the market two, three years down the road.”

And the damage to consumers continued, Macaulay said, as many went into debt to buy new cars, even with the rebate, at a time when they really didn’t need a new car.

“Before the CARS program, there were cars for them. This program hurt the new car industry for the next three years, hurt the independents, hurt consumers.”

Reprinted with permission.

IADAC Past President and Website and Magazine Committee Chair, Mike Macaulay, says CARS, was a real clunker.

PHOTO BY LILLY FUENTES-JOY


Quality Dealer of the Year 2010 nomInATIons now BEIng ACCEPTED!

Each year the Independent Automobile Dealers Association of California bestows upon one of its members the Victor J. Snyder Memorial Quality Dealer of the Year Award. This is the highest award given by IADAC and recognizes a dealer’s contribution to his/her community, his/her association and the public he/she serves.

The 2009 Quality Dealer is Larry Laskowski of The Auto outlet in Roseville, California (pictured with wife Kathy).

Nominations are now being accepted for the IADAC 2010 Quality Dealer Award. The award honors outstanding independent automobile dealers for their exceptional performance in their business and community life. Each year, this prestigious award has become more and more coveted...as the standards and what it takes to achieve this award reach new levels with each recipient selected.

Contact IADAC for more info: 888-315-2869 or visit www.iadac.org.

NEW to IADAC V.I.P. Auction Card!

Join IADAC on August 26th to celebrate Brasher’s San Jose Grand opening! Located

at: 344b Tully Rd, San Jose, CA 95111. Lot location: Enter at Santa Clara Fairgrounds Gate

D on Monterey Rd. See you there!

Location:

Street city St Zip

numberofcarSDiSpLayeD:

anyexpireDregiStrationS?(ifyeS,pLeaSenote)

anyDupLicatephonenumberS?(ifyeS,pLeaSenote)

LIST CARS ON DISPLAY Make and Model license # RegistRation Phone #

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Please attach additional sheet(s) if more than 10 cars are displayed. Please enclose photographs of displayed cars if possible. Digital photos can be sent to [email protected].

Fax oR Mail coMPleted inFoRMation to:

iaDac,1000QSt.,Suite222,Sacramento,ca95811-6518

TOLL FREE FAX: 888-315-2879

RePort susPected unl icensed Act iv i ty!Do you suspect someone of curbstoning? If so, help stop the illegal activity! Fill out this anonymous form, and fax, mail or email to the IADAC office. We share these reports with DMV Investigators in an effort to stop unlicensed activity in your area.



V.I.P. Auction Cards worth up to $4400 in buy/sell fees from 22 auto auctions!

Free Red Flags Rules compliance information, documents and DVD.

Toll-free member hotline to answer your complex questions.

Victor J. and Ethel G. Snyder Memorial Scholarship available to children and grandchildren of IADAC members (generally given in the amount of $1000*).

Preferred Providers products or services at a reduced or discounted rate to all IADAC members:Automotive Dealer ResourcesBlack BookCarlton, DiSante & FreudenbergerDriverz EdgeGizzi & Reep, Law FirmGuardian Warranty CompanyKelley Blue BookMichael C. Rogers, Esq.Secured MobilityZurich Insurance

Many Associate Members also provide products

or services at a reduced or discounted rate to

all IADAC members.

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YOUR MEMBERSHIP PAYS FOR ITSELF.IADAC’s membership benefit programs put money IN your pocket.

Free upgrades and discounts when using Hertz Rental Car.

Automatic annual enrollment in the National Automobile Dealers Association (NIADA).

West Coast Dealer magazine subscription. Plus Used Car Dealer magazine and the monthly Fast Facts which are only available to IADAC members. An $80 value.

Discounted registration fees offered at the annual convention, chapter meetings and other dealer educational seminars. Legislative representatives combating regulations that will damage your business.

Eligible to become a member of Provident Credit Union.

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And much, much more! Go to www.iadac.org for more details on our exclusive membership benefits.

The Independent Automobile Dealers Association of California (IADAC) provides value and

opportunity to its members to increase their profitability and business success.

To Join TodayCall (888) 315-2869, or fax to (888) 315-2879

or, join online - www.iadac.org

1000 Q St., Suite 222, Sacramento, CA 95811-6518 * Scholarship amounts vary.

APP l icAt ion For membersh i P

InDEPEnDEnT AuTomoBILE DEALERs AssoCIATIon oF CALIFoRnIA

Yes! It is important to me to be recognized as a professional! Enclosed are my annual dues to ensure my business has all the advantages IADAC/NIADA provides to put me at the forefront of my profession.

By completing this form, I am consenting to and giving IADAC/NIADA, its affiliates and subsidiaries, my permission to (until I give written notice to discontinue) contact me and provide information to me at the mailing and e-mailing addresses, telephone and fax numbers I have provided. I certify that (I am or we are) eligible for membership in IADAC. A portion of your dues will be used for lobbying activities as defined by the Revenue Reconciliation Act of 1993. It is estimated that the percentage used for such purposes will be 22.8%. This portion of your dues is not deductible as an ordinary and necessary business expense. Contributions or gifts are not deductible as charitable contributions for federal income tax purposes.

Member Name:

Business Name:

Address:

City: State: Zip:

County:

Phone: Cell Phone/Pager:

Fax:

E-mail: Website:

Recruited by: I agree upon the signing of this application and if accepted as a member, to uphold the Bylaws, its Code of Ethics, and all local, state and federal laws pertaining to the automobile business.

Signature (required): Date:


Dealer in: Used New Other (describe):

License #:


PAYMENT OPTIONS:Dues: $ 295 PAC Fund Donation (optional): $ Scholarship Donation (optional): $ GRAND TOTAL: $

Check made payable to “IADAC” enclosed. Returned checks will be subject to a $25 service fee.

Please charge my (circle one): VISA MasterCard *Sorry, we do not accept AMEX or Discover.

Card Number: Exp. Date:


Mail To: IADAC, 1000 Q St., Suite 222, Sacramento, CA 95811-6518 Fax Toll Free To: (888) 315-2879

Questions??? Call (888) 315-2869

ABS Auto Auctions1620 Fairway Dr.Colton, CAPh: 800-378-0227www.absautoauctions.com ADESA Golden Gate 18501 W. Stanford Rd.Tracy, CAPh: 209-839-8000www.adesa.com ADESA Sacramento 8649 Kiefer Blvd.Sacramento, CAPh: 916-388-8899www.adesa.com ADESA San Diego 2175 Cactus Rd.San Diego, CAPh: 619-661-5565www.adesa.com Brasher’s Sacramento 6233 Blacktop Rd.Rio Linda, CAPh: 916-991-5555www.brasherssac.com

Brasher’s Reno6000 Echo Ave.Reno, NV 89506Ph: 775.828.2437www.brashersreno.com

Brasher’s San Jose344b Tully RdSan Jose, CA 95111Ph: 408.890.2990www.brasherssanjose.com

Brasher’s Idaho7355 S. Eisenman Rd.Boise, ID 83716Ph: (208) 345-7345www.idaa.com Carmax Buena Park6100 Auto Center Dr.Buena Park, CAPh: 888-804-6604www.carmaxauctions.com Carmax Fresno7180 North Palm Ave.Fresno, CAPh: 888-804-6604www.carmaxauctions.com Carmax Irvine 9501 Research Dr.Irvine, CAPh: 888-804-6604www.carmaxauctions.com CarMax Roseville 1450 Eureka Rd.Roseville, CA

Ph: 866-629-2057www.carmaxauctions.com CarMax San Gabriel Valley1131 Central Ave.Duarte, CAPh: 888-804-6604www.carmaxauctions.com Manheim San Fransico Bay29900 Auction Wy.Hayward, CAPh: 510-786-4500www.baycitiesautoauction.com Manheim California1320 N. Tustin Ave.Anaheim, CAPh: 714-996-2400www.manheim.com Manheim Fresno278 N. Marks Ave.Fresno, CAPh: 559-268-8051www.mfada.com Manheim Riverside6446 Fremont St.Riverside, CAPh: 951-689-6000www.manheim.com Manheim San Diego4691 Calle JovenOceanside, CAPh: 760-754-3600www.manheim.com Manheim Southern California10700 Beech Ave.Fontana, CAPh: 909-822-2261www.scaacars.com North Bay Auto Auction4833 Auto Plaza Ct.Fairfield, CAPh: 707-864-1040www.nbauto.com Norwalk Auto Auction 12405 East Rosecrans Ave.Norwalk, CAPh: 562-864-7464www.norwalkautoauction.com Prime Auto Auction 20151 South Main St.Carson, CAPh: 310-380-4686www.primeautoauction.com

South Bay Auto Auction 13210 South Normandie Ave.Gardena, CAPh: 310-719-2000www.southbayautoauction.com

CALIFoRnIA AuTo AuCTIon V.I.P.’s

Published by the:Independent Automobile Dealers Association of California1000 Q Street, Suite 222Sacramento, California 95811-6518Phone: 916-446-5165Toll Free Phone: 888-315-2869Fax: 916-443-6719Toll Free Fax: 888-315-2879www.iadac.org

Executive Vice President and EditorKacy Dawn WallisEmail: [email protected]

Executive Vice President EmeritusCarlyle R. Brakensiek, JD, MBAEmail: [email protected]

For Advertising Information Contact:Dianne [email protected]

For Membership Information Contact:Rachel [email protected]

Heather [email protected]

Magazine Committee ChairMike Macaulay, Car [email protected]

The California FastLane magazine is published quarterly by the Independent Automobile Dealers Association of California (IADAC). The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of the California FastLane, IADAC or the National Independent Automobile Dealers Association (NIADA). Likewise, the appearance of advertisers, or their identification as members of IADAC or NIADA, does not constitute an endorsement of the products or services featured. Copyright 2009 by IADAC. All rights reserved.

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Summer 2010 California FastLane

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