The Virginia Independent News

INDEPENDENT

Volume 33 Number 2 • Spring 2013

Commemorative Print Description (Page 7)Recent Comments of NADA Economist Paul Taylor (Page 13)Auction Members of VIADA (Page 17)7 Steps & the Secrets to Buying at Auto Auctions (Page 20)Legal Pitfalls with Vehicles Purchased at Auction (Page 28)

Symbol of Quality

The Virginia and Maryland family of Manheim Auctions invite you to visit us weekly at our

three convenient locations:

Sale Every Thursday 9AM 120 Auction Dr. Fredericksburg, VA 22406 Tel. 888-883-3733 Fax 540-373-5021

Sale Every Wednesday 9 AM I-81 Exit 243 3560 Early Rd. Harrisonburg, VA 22801 Tel. 540-434-5991 Fax 540-434-6813

Sale Every Tuesday 9AM 7120 Dorsey Run Rd Elkridge, MD 21075 Tel. 410- 796-8899 Fax 410- 799-0512

Your Place To Be On Tuesday, Wednesday, and Thursday

INDEPENDENT

Columns4 VIADAFundraisingRaffle5 FromthePresident:LexaLynnHooper6 ExecutiveDirector’sNotes:LoisKeenan9 VIADASelectPartners10 AroundtheCommonwealth13 AHightlightFromOurBlog14 VIADA53rdAnnualConvention&Expo Registration15 ConventionScheduleofEvents15 ConventionSpeakerBio:Christina(Chris)Floyd16 VIADA’sPACContributors16 SAVE$$$:2013OfficalUsedCarGuides17 AuctionMembersofVIADA18 UpcomingVIADAEvents18 AltavistaAreaChamberofCommerceAnnounces:OutstandingCitizenof theYear,SteveFarmer19 MemberBulletinBoard21 ThankYoutoVIADA’sAuctionCardParticipants24 VIADAMemberRenewals&VIADANewMembers

Features5 MeetOurNewestAuctionCardParticipant:ABCLancasterAutoAuction7 “PennsylvaniaAutoDealers’Exchange”CommemorativePrint Description8 Manheim’sMobileSolutions:HelpingDealersWinfromStarttoFinish12 TheCARLAWYER©13 RecentCommentsofNADAEconomistPaulTaylor20 7Steps&theSecretstoBuyingatAutoAuctions22 ImproveYourBottomLinein2013byIncludingBuyingandSellingat PublicAuctionsasPartofYourBusinessPlan25 NIADAOpenRecallNotices27 TidewaterAutoAuction27 ADESAWashingtonD.C.AutoAuction28 LegalPitfallswithVehiclesPurchasedatAuction29 InsuranceAutoAuctions30 TheInternetCorner:TheWonderfulThingAbouttheInternetisthatYou CanMeasureROI!

The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the view of the Virginia Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of VIADA, does not constitute an endorsement of the products or services featured.

TheVirginiaIndependentNewsA VIADA Publication ©

VirginiaIndependentAutomobileDealersAssociation

4700ThoroughgoodSquareVirginiaBeach,VA23455-4043757.464.3460|800.394.1960

Fax:757.460.1346E-mail:[email protected]

www.viada.org

LoisKeenanExecutive Director

[email protected]

StellaSalyerAssistant Executive Director

[email protected]

PeterIaricciTrainer/Consultant

[email protected]

TinaAllmanAuction [email protected]

MadisonEllisOffice Manager/Bookkeeper

[email protected]

StephanieHandPublications

[email protected]

KristenLuciaMembership

[email protected]

VickieLondonOffice [email protected]

VIADAOFFICERS2012-2013

ChairmanoftheBoard-Gail Davis

President - LexaLynn Hooper

PresidentElect - Alivin Melendez

VicePresidents - Bobby SteeleDonald Boucher, Jr.

Howard Kershaw

Secretary - Weldon Whitehurst

Treasurer - Rodney Williams

INDEPENDENT

Volume 33 Number 2 • Spring 2013

Commemorative Print Description (Page 12)Recent Comments of NADA Economist Paul Taylor (Page 13)Auction Members of VIADA (Page 17)7 Steps & the Secrets to Buying at Auto Auctions (Page 20)Legal Pitfalls with Vehicles Purchased at Auction (Page 28)

- Auto Auctions -

SPRING 2013 | THE VIRGINIA INDEPENDENT NEWS | 3

Get Your Tickets Today!5. BRENT TOONE: (434) 374-55116. BOBBY STEELE: (434) 239-55877. JIM MILLNER: (434) 293-69008. GARRY WORLEY: (276) 669-3321

1. WELDON WHITEHURST: (757) 406-22772. DAVID GRIPSHOVER: (804) 232-00553. BARRY RIDDLEBERGER: (540) 309-40044. DON SULLIVAN: (540) 371-9877

July 20, 2013VIADA 53rd Annual Convention

The Renaissance Hotel & Waterfront Conference CenterPortsmouth, VA

NEED NOT BE PRESENT TO WIN

Drawing

remainder of fund will be split equally between VIADA for capital improvements

and the Virginia Wounded Warriors Program

Win $5,000 !!Goal: to sell 1,000 tickets

Tickets $20

Partial proceeds benefit Virginia Wounded Warriors Program

VIADA Fundraising Raffle

Writing this magazine article is difficult in that the suspense date lies in between publications of the Winter and Spring issues. It is the first of March and by the time you receive the magazine spring should be here. So far we have had a mild, although cold winter. We all agree snow is not a dealer’s friend. Of course, I am speaking from the Northern VA area. I know you who are close to the mountains have had your share of snow and like it no better than those of us who live in the cut off zone.

Hope tax returns and good weather will produce positive sales for all. I know the cost of purchasing an automobile at auctions remains high.

We had a very productive January Board Meeting focusing on future objectives and events. I hope this magazine is out before the April Board Meeting in Charlottesville where we will determine where the 2014 Convention and Expo will be held.

A number of bills were passed on February 23, 2013, on the last day of the 2013 Assembly. These were emailed in early March - Please contact the State Office for more information.

I know you have received The National Independent Automobile Dealers Association (NIADA) Convention information and registration forms for Las Vegas in June. I would recommend making hotel and airline reservations soon.

The VIADA Convention even though it is in July is right around the corner. Please register now so we can get a good idea of attendance. We have a great program designed for all and the hotel is beautiful. In addition, we have always had outstanding service at the two prior conventions. The area is also filled with many places to visit when not in session

The raffle is well under way. The tickets have been distributed to all districts and we know of one district that has already come back for more tickets to sell. The causes are very worthwhile and good selling points. A thought, if every member of the association bought just one ticket, we would only have to sell a few to sell all 1,000. If you bought just that special one, you might win the $5,000.00, help the association and honor our Wounded Warriors.

A special thanks to the State Officers and District Presidents. Having spent three years as a District President, and eight years as a State Officer I understand the commitment of time and money you all dedicate to the Association. Thank you.

MEMBERSARETHEFUTURERecruitingmembersisnecessaryKeepingmembersisessential

Givingmembersareasontostayisthechallenge

By: LexaLynn Hooper; Hooper’s Quality Cars Ltd

From the !

ABC Lancaster Auto Auction is the new kid on the block in Southeastern PA, the new auction with the old fashioned service. Our goal is to provide the best possible experience for the buyer and the seller from the moment they walk in the front door until the time they are leaving with their checks and titles. We are celebrating the conclusion of our first year with 1,000+ cars at our Anniversary Sale on March 20th,

including a $10,000 hockey shot and $5,000 in prizes to buyers and sellers at the end of the sale. Our weekly sale is Wednesdays at 9:45 AM. We start out with a “Spotlight” sale in Lane 2 with 30 units that run uncontested until 10:15 when the remainder of the lanes begins. Every fourth week we offer 75+ units in our Absolute Alley sale where every car is sold to the highest bidder. We also host a Mercedes

Benz Financial Services sale monthly which features 150+ luxury Mercedes vehicles. We are a full service auction offering complete reconditioning services, post-sale inspections, 24 hour security and access to our sales lot for transport pick-ups and a 100 seat cafeteria with some of the best food around! Come visit us on a Wednesday and see for yourself what a friendly place we can be!!

ABC Lancaster Auto AuctionMEET OUR NEWEST AUCTION CARD PARTICIPANT


NotesVIADA extends a most sincere THANK YOU to all auctions who provided articles and advertising for this magazine, our associate members, those who participate on our auction card, exhibit and sponsor during our annual conventions, and for the many services and opportunities each auction offers our members on

a weekly basis.I was reminded of the book written in 1998, A Retrospective ... 50 Years as an Association … 60 Years as an Industry, by members of the National Auto Auction Association. Serving on the committee were Jim and

Barbara Wheatley, founders of Harrisonburg Auto Auction.The auction business was the idea of Martin Rawls in 1938, co-owner of Rawls Auto Sales, a used-car outlet in Leesville, South Carolina, while attending a cattle auction. At the first auction, Rawls’ partner

registered the vehicles and tended the office, Rawls worked the ring, and renowned auctioneer “Col.” Sapp banged the gavel. The first sale was held in March 1938. About 35 curious dealers attended the historic sale where 12 – 15 cars were run several times through the lobby of an old, two-story theater building on

Main Street in downtown Leesville.The Rawls Auction charged five dollars for every car sold and $2.50 for those not sold. Within a short

time, 150 cars a week were going through the auction – a fact that did not go unnoticed by other spirited entrepreneurs. A second weekly auction opened the same year. Titles were unheard of and tag

registration slips or a bill of sale were the only documents used in transferring a vehicle. Sale percentages were very good in those days. Anything under ninety percent was considered a bad sale.

From this historic sale of a handful of well-worn, Depression-era cars sprang an industry that by 1940 sold an estimated 10,000 vehicles, by 1950 sales rose to an estimated 100,000; in the 1960s to 350,000; the

‘70s reported 1,250,000; the 80s soared to three million; in the 1990s they exceeded seven million and by 1998 to more than 16 million vehicles with an estimated wholesale value of more than $70 billion.

The all-time high for units entered and sold was in 2008 at 17.1 million with an average sales price $8,762, but by 2011 the totals had dropped to 13.7 with an average sales price of $9,559. Another 1.1 million

vehicles valued at $16.6 billion were sold via internet-based sources.Think how things have changed from 1998 to present. Who would have guessed auctions and dealers

would be buying and selling worldwide … not to mention the internet where auctions are held online and dealers bidding on vehicles from multiple auctions simultaneously?

Then there are the many apps now available to allow dealers, from a tiny smart phone, to have instant access to vehicle values, history, and much more!!

The National Auto Auction Association (originally the National Auto Auction Protection Association) was established in 1948 to protect auction owners against fraudulent practices by creating a clearinghouse of information. Like the industry itself, the Association has grown and now represents auctions worldwide.Thanks to the NAAA for allowing us to use the oil painting seen on the front cover of this magazine, see

caption on page 7, and for providing other information to make this issue a success.

DO YOU HAVE AN INDUSTRY RELATED QUESTION?

CALL 800-394-1960 - OR - EMAIL

[email protected]

VIADA IS YOUR DAILY RESOURCE FOR SOLUTIONS

6 | THE VIRGINIA INDEPENDENT NEWS | SPRING 2013

Commemorative Print Description

“Pennsylvania Auto Dealers’ Exchange,” 1958, by Guy V. Glatfelter, stepfather of P.A.D.E’s Co-Founder, Jacob B. Hershey. Depicted in calling on the block are, left to right, Alvin Miller, auctioneer; Charles M. Bachman, auctioneer; and Hershey. His son Jake Hershey graciously

donated the original oil painting to the National Auto Auction Association, where it now hangs in its headquarters.


BY:LOISROSSIManheim CorporateAtlanta, Georgia

Making it easier for customers to conduct business --- when and how they want to --- was at the center of several innovative mobile solutions introduced at the 2013 National Automotive Dealers Association (NADA) convention in Florida. Leading the new product line-up was Simulcast on Mobile, which lets customers bid and buy from anywhere – their lot, any Manheim location, the airport or even from a competitor’s auction. Manheim also showcased the free Manheim myMobileListing app and the enhanced My Purchases digital solution.

Manheim’s suite of Simulcast solutions have long been a critical part of the used car dealer’s arsenal. Last year, Manheim celebrated the 10th anniversary of Simulcast, as well as launched its new Simulcast Everywhere product. This year, Manheim took Simulcast further by offering dealers a mobile product on the iPhone and iPad that will also be available on Android devices later this year.

“Manheim’s mission is to put game-changing information in our customers’ hands, no matter where they are – online, at home, in the showroom, or at auctions – to provide faster, less expensive, lower risk, higher volume and more fairly priced transactions,” said Joe George, Senior Vice President, Product Development. “We have a robust set of mobile offerings designed to accomplish those goals by putting the power of the Manheim marketplace in the palm of the customer’s hand. Our product development efforts boil down to one thing – provide visionary solutions to help customers win.”

Manheim piloted the mobile Simulcast app in December 2012 and dealer reaction was positive. “I read through the App Store update, saw that the app was available and I thought, “Simulcast on Mobile? Really? Let me download this and give it a try.‟ I wasn’t sure how fast it would be, but it worked great and was very up-to-date,” said Charlie Gracia of Doral Buick GMC in Miami, Fla., the first Manheim customer who purchased a vehicle using Simulcast on Mobile.

The new myMobileListing app empowers customers with more choices to sell their vehicle inventory. Previously, dealers needing to sell inventory were often forced into a choice – either send the vehicle to auction or keep it on their lot and wait for a retail sale. The myMobileListing app eliminates this problem by allowing dealers to do both at the same time. In 10 minutes or less, a dealer can use the app to input

condition information, photos and video and then put the vehicle up for sale via Manheim.com directly from their lot using their smart device. A Manheim algorithm applies a condition grade, on a scale of 0.0 - 5.0, to the vehicle based on the information provided by the seller. This is important because research shows that vehicles with condition reports are three times more likely to sell online, and 27 percent less likely to face a dispute than vehicles without condition reports. Before myMobileListing, this listing process could take 20 minutes or more.

“Overall, we are seeing good results from the application,” said Shannon Adams of DAB Auto World & Leasing in Wake Forest, N.C. “The cool thing about the app is that this is nothing like we’ve ever done prior. Now we are using it and getting units sold because of it.” Manheim’s myMobileListing app is as simple as point, shoot and upload.

Streamlining a customer’s access to transaction information, Manheim has also launched the new My Purchases page on Manheim.com. My Purchases conveniently aggregates Manheim purchase information in one place regardless of where or how the customer makes those purchases – in lane at the auction or via one of Manheim’s digital solutions. Now all purchase information is available in one convenient place.

My Purchases holds 120 days of transactions and gives customers access to vehicle and PSI status,

Manheim’s Mobile Solutions: Helping Dealers Win from Start

to Finish...recent research shows that vehicles with condition reports are

three times more likely to sell online, and 27% less likely to face a dispute than vehicles without condition reports.

“”

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condition information and more in real-time. Customers can view all payment information, including fees. Manheim also pro actively notifies dealers of any status changes to their purchases via alerts to their mobile device. All of this adds up to faster, easier transaction management for customers.

“We place great emphasis on listening to our customers and identifying what kinds of products they need to make their businesses boom and then we develop technological solutions to meet those needs,” said George. “We have a strong research and development process that enables us to make data-driven decisions when we create our products, which is key to their success in the real world. We’re excited to offer a mobile Simulcast solution, and this is just the tip of the iceberg.”

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DISTRICT1 TIDEWATERVIRGINIA

It’s finally tax time here in Tidewater. Finding the right mix of inventory continues to be the challenge, but if you have it, you can certainly sell it right now. Hopefully, the end of winter is near and the best is yet to come.

Special thanks to Don Boucher of Courtesy Auto Sales for locating a new van for Lois. She ran the old one to 200K and it is still going.

Our last meeting was on February 26, 2013 at Frankie’s Place for Ribs. Our speakers were Walter Roe and Jason McKenzie from McPhillips, Roberts & Deans PLC. They spoke to us about tax savings and strategies for the future. Also, we had Mike Beyers from Financial Group of Virginia. He spoke at length about the affordable care act and what we will be required to do to be in compliance in 2014. The meeting was well attended by Dealers and Associate Members.

We just received our tickets for this year’s raffle and I know that with every one’s help we can easily reach our goal for this year.

WeldonWhitehurstDistrict 1 President

Hotel. VIADA has reworked the exhibitor packet so that each booth registration will include 2 full registrations to the conference. This is in the hopes of creating a richer experience for the exhibitors as they will get to interact with the dealers all weekend. Education at the conference will be presented by Chris Floyd, a lawyer local to the Hampton Roads area and with a strong background in automotive industry. Pete Iaricci spoke further about the bills in the General Assembly. There was a spirited discussion about a number of topics.

Mike Beyers from the Financial Group of Virginia presented education on “The New Healthcare Law & You”. There will be many changes in store for the way health care plans are offered and presented to employees. There was much discussion on a variety of aspects of healthcare reform, however much of this new law will not affect many of our members because most folks do not have over 50 full time (or full time equivalent) employees. Discussion went late into the night and everyone left with some valuable information to take home. Dinner was delicious and we hope everyone is looking forward to the next time we can gather together.

DavidGripshoverDistrict 2 President

DISTRICT2RICHMONDVIRGINIA

Our meeting in January began with a short discussion about the bills that have passed the General Assembly and are awaiting the Governor’s signature. One in particular having to do with fully disclosing the presence of a GPS device on the vehicle sparked some lively conversation. For the most part it was agreed that many dealers are already in disclosure to their customers when a tracking device is used and most likely this law would not change our practices very much.

We also discussed the new fundraising raffle that we are promoting this year. $5000.00 will go to the winner and then the proceeds beyond that will be split 50/50 between the Virginia Wounded Warrior Program and VIADA. Sales of the raffle tickets are in full swing. Contact Jeff Schuler at Richmond Auto Auction if you’d like to purchase some.

Jeff Schuler also presented the membership report. District 2 has fallen from the top perch in the recruitment department as of late. He is eager to improve the standing. 3 new members were presented for approval and prospects/drops were distributed for members to follow up on.

Lois Keenan, Executive Director of VIADA, reported on news from the state office. Our new lobbyist, Meade Spotts, did a great job for us at the General Assembly and HB1539 passed seamlessly through the House and Senate thanks to his efforts.

Stella Salyer, Assistant Executive Director of VIADA, reported on the upcoming Annual Convention this July at the Portsmouth Renaissance

DISTRICT3ROANOKEVIRGINIA

With spring time there is renewing and new growth, the same with business. The season seems to bring more sales, and the opportunity to meet new customers this is a great time to grow our business.

With spring time this is also a good time to call on our dealers that have been missing meetings and have lost contact with us.

The District 3 meeting in February was a very good meeting, we had Lois Keenan, Peter laricci, and Stella Salyer as our guests. They provided us with helpful information and the question and answer part was great for all the dealers that attended. I was told after the meeting that they liked this type meeting. The attendance was low and that is something we need to address. I think this type of meeting will spark interest back into the dealers that have not been attending. I have heard from some dealers I called on that the meetings are boring and a waste of time. We need to change that kind of thinking. If the dealer that started the business has this kind of feeling, don’t you think the sons and daughters will have the same, and they may be the future for that business?

With that said I’m looking forward to a great spring and summer, hope all districts have a great season.

BarryRiddlebergerDistrict 3 President


DISTRICT6WESTERNVIRGINIA

District 6 has taken a break since the holidays and is looking forward to the upcoming meetings designed to provide a forum for you to fellowship, share ideas, and bring you up to date with industry issues from the VIADA State Office as well as vendors with products and services to promote growth in your businesses.

The challenges facing dealers always seem a little easier when you realize others are experiencing some of the same problems and successes. Together we can accomplish much. We’re always looking for quality dealers to join in and take advantage to not only learn, but also give back to your industry.

Looking forward to seeing you at the next meeting,

BobbySteeleDistrict 6 President

DISTRICT7SHENANDOAH

VALLEYVIRGINIA

District 7 has chosen a new direction for some of their meetings. They recently held a most informative 30-minute webinar held on a Friday morning with guest speaker Sheila Stephens, DMV Deputy Director of Titling in Richmond, providing instructional insight for dealers when they acquire an out-of-state title with “exempt” for the odometer reading.

The forum gave attendees the opportunity to ask questions during which time the subject of Powers of

DISTRICT4NORTHERNVIRGINIA

District 4 ended the year with a terrific party which allowed time for fellowship, entertainment and good food, plus a time to get away from all the festivities and really relax!

Now we are ready to get back to meetings, industry updates, speakers and sponsors. Your officers are dedicated to provide quality information that will benefit every dealership and make it worth your while to attend. In addition, we plan to move the meetings around the district beginning with Winchester and surrounding areas.

Membership is another challenge for us. Reach out to those around you who do not display an updated VIADA decal and invite them to join us at our next meeting.

Be on the lookout through emails, mail, and faxes for a meeting near you and take an active part in the ever evolving future in the independent auto industry.

DonSullivanDistrict 4 President

DISTRICT5SOUTHERNVIRGINIA

We had a good group at our last monthly meeting. Michael Beyers from The Financial Group of Virginia spoke about the Affordable Care Act and how healthcare reform may affect members’ businesses.

Certificates were presented to Brent Toone and Sammy Wright for their accomplishments in signing new members. The group is looking forward to the VIADA

Annual Convention in July and agreed to sponsor a golf hole at the golf tournament.

Lois Keenan, Executive Director of VIADA, spoke briefly about some bills that were currently in front of the General Assembly that may affect our dealers. One bill, HB 1539, would clarify that dealers will able to sell cars at auctions with rejected inspection stickers as long as there was full disclosure as to why the vehicle was rejected. Another bill, HB1981, will affect mainly Buy Here/Pay Here dealers since it concerns requiring disclosure to the consumer when a GPS device has been placed on the vehicle. There have also been some changes to Virginia titles. Most notably, when mileage is recorded it is now required that the dealer check one of 4 boxes indicating that the odometer reading is either actual, not actual, in excess of mechanical limits or exempt (in the case of out of state titles). Failure to check one of those boxes could slow down titling and may even invalidate the stated odometer reading.

A lively conversation took place about whether independent car dealers can also sell motorcycles, after which the meeting was closed.

BrentToone District 5 President

Attorney was raised. Hopefully, there will be more of these webinars in the future to allow employees to participate as well, and perhaps POAs can be one of the topics. Thanks to Manheim Harrisonburg’s staff for helping District 7 select the best platform for this project.

Watch for the next District 7 meeting – it is on the cutting edge of leadership to connect with its members.

JamesMillnerDistrict 7 President

DISTRICT8SOUTHWESTERN

VIRGINIA

District 8 ended the calendar year with another terrific gathering for the purpose of sharing quality time with our fellow dealers and their families. During this event, we raised money for the Political Action Committee representing independent dealers to legislators in the Commonwealth.

After a brief break at the beginning of the year, we are lining up speakers and sponsors to connect with members. From these vendors, attendees will align themselves with new opportunities and ideas to survive in this ever evolving industry.

Be a part of the success – Watch your email, fax, and mail. If you are not receiving your notices, News In Briefs, and other up-to-the-minute information, please be sure to send VIADA your email if you have just established one, or if you have changed your email address recently!

We’ll be looking for you at the next meeting.

GarryWorleyDistrict 8 President


Here’s our monthly collection of selected legislative and regulatory highlights, and a recap of some of the many auto sale and financing lawsuits we follow each month. Remember - what we report here does not capture every recent development. We select those we think should be important or interesting to car dealers. Note that this column does not offer legal advice. You should consult your dealership lawyer with any legal questions. FEDERALLAWFTC Fires Buyers Guide Warning Shots. On January 25, the Federal Trade Commission announced that its Southwest Region Office sent warning letters to 11 used car dealerships in Jonesboro, Arkansas, stating that their failure to properly display a Buyers Guide in a clear and conspicuous location on all the used cars they sell violates the FTC’s Used Car Rule. The letters urge the dealers to come into compliance with the Rule. FTC staff inspections in Jonesboro found that eight dealers failed to display Buyers Guides on almost all used cars offered for sale, and three dealers failed to display the Guides on a significant number of used cars. The inspections were part of the FTC’s ongoing efforts to enforce the Used Car Rule, in conjunction with state and local officials. A Constitutional Challenge to the CFPB’s Director? On January 25, in a ruling directed at appointments to the National Labor Relations Board, a federal appellate court concluded that President Obama’s recess appointments made during a Congressional session were unconstitutional because they were not made during an intercession recess. The President’s appointment of Consumer Financial Protection Bureau Director Richard Cordray was also made during a non-intersession recess and, thus, may be subject to the same constitutional deficiency if the federal appellate court decision is not overturned on an expected appeal to

the U.S. Supreme Court. If President Obama’s recess appointments are subject to challenge, this calls into question regulations currently being issued by the CFPB, since most of them require an action by a CFPB director. LITIGATIONDealership Liable for Delivery of Services under Extended Service Contracts: Two individuals bought extended service contracts in connection with their purchases of used cars from a dealership. After the service contract company went bankrupt, the individuals brought their cars to the dealership for repairs. The dealership refused to perform the repairs under the contracts, and the individuals filed complaints with the Rhode Island License and Hearing Board. The Board found that the dealership engaged in unconscionable business practices by wilfully failing to perform under written agreements with the individuals. The Rhode Island Department of Administration affirmed the Board’s decision, as did the Superior Court of Rhode Island. The court found there was sufficient support for the Board’s conclusion that the dealership was a party to the contracts. The dealership signed the contracts, retained a substantial part of the contracts’ price as commissions, and had its address listed on the front of the contracts. Further, the contracts included a provision requiring the buyers to contact the dealership for repairs. The court also upheld the Board’s finding that the dealership did not sufficiently disclose an agency relationship where the service contract company did not sign the contracts, the dealership representative who signed was not designated as an agent in the contracts, all references to the bankrupt company were in fine print, and there was no oral disclosure of an agency relationship. See Simon Chevrolet-Buick, Ltd. v. Rhode Island Department of Administration, 2013

R.I. Super. LEXIS 8 (R.I. Super. January 7, 2013). Seller Not Liable for Fraud Where Sale Was “As-Is” and Car Was Merely Worth Less than Anticipated: An individual bought a car from a dealership. The contract stated that the vehicle was to be sold “as is.” After the individual learned that the vehicle had been in a previous accident, he sued, claiming the dealership violated the Kentucky Consumer Protection Act and committed fraud by omitting, suppressing, and concealing the vehicle’s prior damage and accident history. The trial court found that the “sold as is” clause in the contract precluded the claim of fraud and dismissed his claims. The Court of Appeals of Kentucky affirmed. The appellate court noted that the effect of the “sold as is” clause was to shift the assumption of risk regarding the vehicle’s value or condition to the buyer, despite any express or implied warranties made by the dealership. Therefore, because the individual’s alleged injury was only that the car was worth less than anticipated, the individual could not show that the dealership’s representations caused the injury. See Roberts v. Lanigan Auto Sales, 2013 Ky. App. LEXIS 4 (Ky. App. January 4, 2013).So there’s this month’s roundup! Stay legal, and we’ll see you next month. Tom ([email protected]) and Nikki ([email protected]) are partners in the law firm of Hudson Cook, LLC. Tom is the author of several books, available at www.counselorlibrary.com. Tom is also the publisher of Spot Delivery®, a monthly legal newsletter for auto dealers, and the Editor in Chief of CARLAW®, a monthly report of legal developments in all states for the auto finance and leasing industry. Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. Spot Delivery, CARLAW and the books are produced by CounselorLibrary.com LLC. For information, call 410-865-5411 or visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2012, all rights reserved. Single publication rights only, to the Association. (2/13) HC# 4831-5994-8050.

BY:THOMASB.HUDSON&NICOLEFRUSHMUNRO

The CARLAWYER©


Recent Comments of NADA Economist Paul Taylor:

conferences and in reports, the supply of vehicles coming into the auction lanes comes from two main sources, dealer consignment and commercial consignment. By commercial consignment I am referring to repossessed units, rental, fleet and program vehicles, as well as off-lease and company cars. Commercial consignment is related to new light vehicle sales in the past, while dealer consignment is most closely tied to current new light vehicle sales.New vehicle sales declined about 20% in 2008 and 2009 and then increased about 10% in each of the past three years. Regarding the auction markets in 2010 and 2011 we saw that the negative effect of the 2008 and 2009 declines in new sales on commercial consignments and that negative effect on commercial consignments more than offset the positive impact of the pickup in dealer consignment related to new sales in 2010 and 2011.2012 was the year when the pickup in new sales in 2010 and 2011 finally began to reduce the decline in commercial consignment while dealer consignment continued to grow with new car sales growth.The recent past growth in new vehic les is pos i t ive for the remarketing industry. It will help us by driving gains in commercial cons ignmen t t ha t w i l l add to continued growth in dealer consignment. Since the past growth in new sales has already happened we can be confident in its continuing positive impact on auction volume for years to come.

• “The sales momentum of new cars and light trucks is likely to continue in 2013. We can expect more than 15.4 million new vehicles will be purchased or leased in the United States this year, an increase of 1 million vehicles over 2012. Pent up demand, affordable auto loans, and enticing new-vehicle designs add up to a solid sales year that will outperform the overall U.S. economy.”

• In many ways 2012 was pretty much the same as 2011 in that the economy grew slowly, inflation stayed low, businesses faced the uncertainty of federal policies, the Federal Reserve kept interest rates very low and new auto sales continued their strong recovery.

• However, a couple of major factors did change. Within the economy, housing starts finally began a serious recovery from the multi-year decline that was a main cause of the past recession. Housing had been the major sector holding back the economy from a more normal recovery through its direct negative impact on construction labor and materials and indirectly by driving house prices and household wealth down.

• Now that house prices are rising and mortgage rates are at record lows, housing should provide an economic stimulus for years to come.

Shifting specifically to the auctions...

As Dr. Ira Silver, economist for NAAA has discussed at past

IMPROVINGNUTRITIONMIGHTIMPROVEPRODUCTIVITYATWORK

February 14, 2013When you’re busy running your own business

and dealing with all the stresses that entails, it’s easy to catch snacks on the run and not pay much attention to your nutrition. However, poor eating choices throughout the day can lead to feeling less focused and more stressed. Barbara Mendez, a nutritionist in private practice, has a few easy tips to improve your choices throughout the day and help you remain effective at work:1. Eat breakfast. Studies show that

productivity drops a whopping 50% to 75% when you skip breakfast. But what you eat is also important. Starting your day with a balanced breakfast that includes protein will help keep you energized for about five to six hours. Mendez recommends an egg-white omelet with veggies. Muffins? Not so great. You’ll likely be crashing within an hour or two.

2. Step away from the sugar. The entry drug of stress management, sugar is cheap, tasty, and absolutely addicting. When you experience stress, a dynamic is created in your brain where dopamine is high and serotonin levels are low, creating an imbalance that feels uncomfortable. To compensate, your brain makes you crave sugary foods for a quick burst of serotonin. That may sound great, but the serotonin levels quickly come crashing down. Eventually, your stress levels and mood can become erratic and hard to rein in, making it difficult to focus and concentrate. Stock your work fridge with healthy snacks such as apples and organic peanut butter (or better yet, almond butter) or hummus and carrot sticks. The carbs from the apple or carrots will boost serotonin levels and provide quick fuel while the protein and quality fats in peanut butter or hummus will provide long-lasting energy.

3. Don’t drink coffee on an empty stomach. A lot of entrepreneurs use caffeine as their main fuel source. Focused on the next task at hand, they forget to eat and instead drink coffee all day to sustain their energy levels. You don’t have to be a nutritionist to know this is not good for you. The caffeine in coffee can deplete serotonin levels for up to eight hours. As a result, this will increase your stress as well as increase your sugar cravings, which, if indulged, will lead to more brain fog. If you’re going to have coffee, first fuel up on food. It buffers the absorption of coffee, mitigating its effects.

A Highlight From Our Blog

e•fSPRING 2013 | THE VIRGINIA INDEPENDENT NEWS | 13

A t t e n d e e R e g i s t r a t i o n F o r m(Exhibitors - please use exhibitor registration form, unless registering extra booth

representatives)

C o m p a n y I n f o r m a t i o n :_______________________________________________________________________________Company Name

_______________________________________________________________________________Address (Street)

_______________________________________________________________________________City, State, Zip

_______________________________________________________________________________Phone No. Fax #

_______________________________________________________________________________E-mail Celll #

425 Water StreetPortsmouth, VA 23704

Group Rate:$130 plus, tax per room, per night

Reservations: (757) 673-3000

Group: VIADA / Cut Off For Group Rate: June 24, 2013

R e g i s t r a t i o n I n f o r m a t i o n : (12 & Under = Child)

E v e n t s M e m b e r N o n M e m b e rFull Registration (entry to all events) $235 each/$105 per Child $325 eachBadge Name(s):_________________________________________________, ______________________________________________Badge Name(s):_________________________________________________, ______________________________________________Welcome Reception Only $75 each $85 eachBadge Name(s):_________________________________________________, ______________________________________________Badge Name(s):_________________________________________________, ______________________________________________Friday Only (entry to all events on Friday, July20th) $175 each $200 eachBadge Name(s):_________________________________________________, ______________________________________________Badge Name(s):_________________________________________________, ______________________________________________Grand Banquet (entry to banquet only - Saturday, July 21st) $90 each $110 eachBadge Name(s):_________________________________________________, ______________________________________________Badge Name(s):_________________________________________________, ______________________________________________Attendee(s): _____________________________ Average Score: _______________

Your convention name badge will indicate your participation in different areas of Virginia Independent Automobile Dealers Association. To ensure accuracy of your accomplishments please “R” each category that applies to you and your

spouse/guest.

Registrations received in State Office before April 30th, will be entered into

a special drawing for ONE NIGHT FREE HOTEL STAY!10% Discount for 3rd and each additional company

registration

Member Spouse/Guestq q VIADA Board of Directorsq q VIADA Past Presidentq q Honorary Life Directorq q StateOfficer (Specify) q q VIADA Committee Chairperson q q District Presidentq q Quality Dealer National/State/District (circle one)

Member Spouse/Guestq q Eagle Awardq q PAC Contributorq q Memberq q Guestq q Exhibitorq q Sponsorq q Speaker q q NIADAOfficer (Specify) q q NIADACertifiedMasterDealer

Member Spouse/Guestq q LadiesAuxiliaryOfficer (Specify) q q Ladies Auxiliary Memberq q Ladies Auxiliary Board Memberq q Quality Lady

Portsmouth Renaissance Hotel & Waterfront Conference Center

Parking$5 per night Self Parking

$18 per night Valet Parking

P a y m e n t I n f o r m a t i o nTOTAL AMOUNT $ ______________ Check Enclosed (Please make payable to VIADA) VISA: ____ MasterCard: ____ Discover: ____

Credit Card #: ______ - ______ - ______ - ______ Expires: ______ V-Code (3 digits on back): ______

Credit Card Billing Street #: ______ Credit Card Billing Zip Code: ______In the event of cancellation, a $25.00 administrative fee per person will be charged

on cancellations after prior to June 21, 2013. All requests must be in writing.First time Attendee Yes q No q____# Years as a Member of VIADA

R e t u r n v i a :Mail: 4700 Thoroughgood Sq Virginia Beach, VA 23455Fax: 757.460.1346Email: [email protected]

Off ice Use Onlyq Billed/Paymentq Confirmation Mailedq Badge

July 18-21, 2013

- Schedule of Events -Thursday, July 18• 2013-2014DistrictPresidentRetreat• WelcomeReception• HospitalitySuite

Friday, July 19• VIADABoardofDirectorsMeeting• AnnualBusinessMeeting/Awards• DealerTraining:ComplianceIssues• UpdatefromStateRegulatoryAgencies• LadiesAuxiliaryMeeting/CharityAuction• Expo

Saturday, July 20• RecertificationClass• GolfTournament/OtherActivities• QualityDealerBanquet

Sunday, July 21• TimeofSharing• VIADAOfficeMeeting

After almost 20 years of legal practice, including within large law firms and as in-house counsel for large corporations, Chris observed a need in the business community for legal services specifically designed for growing businesses and professionals. This led her to form Hampton Roads General Counsel, PLLC in July 2011. The firm’s primary mission is to serve as general counsel to small

and medium sized businesses in need of recurrent legal services in a similar way that large companies utilize in-house resources for general legal advice and counsel.

Through Hampton Roads General Counsel, Chris provides businesses and professionals with proactive and cost-effective legal services on a wide range of major business decisions that may impact a company’s growth and success, including business start-up and structure changes. Her practice focuses on general business and commercial matters, employment relations, and alternate dispute resolution. She advises and represents businesses on diverse topics such as consumer transactions, contracts, commercial real estate, information technology services, government procurement processes, business torts, employment relations and sale and acquisition of business assets. Chris also has a strong background in advising employers and providing training on preventative measures such as handbooks and policies, evaluations and job descriptions, discipline and discharge, drug testing policies, and legal compliance. She is a certified mediator and trained collaborative professional.

Chris received her B.S. and M.S. degrees from Virginia Commonwealth University. She earned a Juris Doctor degree from

the T.C. Williams School of Law at the University of Richmond, where she served as Executive Editor of the Law Review. She thereafter served as Judicial Clerk for the Honorable William T. Prince of the U.S. District Court, Eastern District of Virginia. Chris is licensed to practice in Virginia.

Chris previously served as in-house General Counsel for the Hall Automotive Group and Metro Information Services, Inc. As General Counsel she managed the provision of all legal services, including litigation, and handled and advised executive management on a broad range of legal issues, including employment/independent contractor/vendor relations, customer dispute resolution, commercial real estate, purchase and sale of assets, and contract review and negotiation.

Chris serves as a director for the National Association of Dealer Counsel. She has also served in leadership roles with the Virginia Conflict Resolution Center, the Virginia State Bar Corporate Counsel Section, the Virginia Women Attorneys Association, the Virginia Bar Association and the Virginia Commission on Women and Minorities in the Legal System. Her community service includes serving as pro bono legal counsel to Wildlife Response, Inc. and as a volunteer mediator in the Virginia Beach General District Court.

M. Christina Floyd4445 Corporation Lane, Suite 256

Virginia Beach, VA 23462 757-213-6973

www.hrgclaw.com

Convention Speaker














www.hrgclaw.com

Convention Speaker**See Chris’s article on page 28**














www.hrgclaw.com

Convention Speaker














www.hrgclaw.com

Convention Speaker


The independent dealers political action committee was established in 1987 as “INDEPAC”. In 2010, to better identify the PAC contributions to Legislators, the name was changed to “Virginia Independent Auto Dealers”.

Virginia Independent Auto Dealers, a political action committee, is licensed in the Commonwealth of Virginia to solicit funds from independent dealers for contribution to candidates for statewide elections. These include the offices of Governor, Lt. Governor, Attorney General, and candidates for the General Assembly.

All contributions are voluntary. ReportincludescontributionsmadeSEPTEMBER1,2012,throughFEBRUARY28,2013.

BASIC($45to$99annually)Campbell’s Used Cars

Clem’s Garage, Inc.Gary McCann Auto Sales

H. R. F. T. FinanceS & S Auto Sales Limited

Surfside Auto CompanyWamsley Service Center

BRONZE($100to$249annually)Alars, Inc.

Ellis Auto Sales, IncMaguire & Sons Auto Brokers

MasterCarPremier Auto Brokers

Richmond Auto Auction Woodson Auto Sales

Hooper’s Quality Cars, Ltd.PLATINUM($1,000+annually)

GOLD($500to$999annually)Moss Motor Company TK Hughes Auto Sales

SILVER($250to$499annually)Airline Auto Sales - U - Save

Auto Center/SmootsMcGuire Motors, Inc Northside Auto Sales

Steve Farmer Auto Sales

VIRGINIA INDEPENDENT AUTO DEALERS PAC CONTRIBUTORS


The Power of Vehicle Information SAVE $$$2013 Official Used Car Guides

VIADA Group Rate DiscountTO SUBSCRIBE: Call or Email VIADA Today!!

SUBSCRIBE TODAY!

NADA2013OfficialUsedCarGuideBook1 Year Subscription (12 Updates)NADA Cover Price: $90.00VIADA Member Price: $80.00

NADA2013e-VALUATORforDealers1 Year Subscription(Monthly Electronic Downloads)NADA Cover Price: $439.00VIADA Member Price: $400.00

(800) 394-1960 • [email protected]

Surfside Auto CompanyWamsley Service Center

Richmond Auto Auction Woodson Auto Sales

ABCLANCASTERAUTOAUCTION1040CommercialAveEPetersburg,PA17520Phone:[email protected]

ABINGDONAUTOAUCTION20216AuctionDrBristol,VA24202Phone:276-644-1684MichaelAnderson

ADESAEASTTENNESSEEAUTOAUCTIONPOBox247FallBranch,TN37656Phone:[email protected]

ADESAKNOXVILLEAUTOAUCTION1011ADESAPkwyLenoirCity,TN37771Phone:[email protected]

ADESAWASHINGTONDC43375OldOxRdDulles,VA20166Phone:[email protected]

BELAIRAUTOAUCTIONPOBox516BelAir,MD21014Phone:410-879-7950mnichols@bscamerica.comwww.bscamerica.comMichelleNichols

BOOHERAUCTIONCOMPANY2703LeeHwyBristol,VA24201Phone:276-591-1790www.boohersautoauction.comDolphisBooher

BRYANBUCHANANAUTOAUCTION1062MountainViewChurchRdBlueRidge,VA24064Phone:[email protected]

CAPITALCITYAUTOAUCTION600WinfieldRdSt.Albans,WV25177Phone:[email protected]

CENTRALVIRGINIAAUTOAUCTION100MyersDrCharlottesville,VA22901Phone:[email protected]

GREENSBOROAUTOAUCTIONINC3907WWendoverAveGreensboro,NC27407Phone:[email protected]

GREENVILLEAUTOAUCTIONINC4330DickinsonAveGreenville,NC27834Phone:252-355-4111kevin@greenvillencautoauction.comwww.greenvillencautoauction.comKevinWallace

INSURANCEAUTOAUCTION/RICHMOND10390SadiscoDrAshland,VA23005Phone:[email protected]

INSURANCEAUTOAUCTIONS/YORKTOWN211ProductionDrYorktown,VA23693Phone:[email protected]

MANHEIMFREDERICKSBURG120AuctionDrFredericksburg,VA22403Phone:[email protected]

MANHEIMHARRISONBURGPOBox1086Harrisonburg,VA22801Phone:[email protected]

MANHEIMNORTHCAROLINA317BagleyRdKenly,NC27542Phone:[email protected]

MANHEIMSTATESVILLE145AuctionLnStatesville,NC28687Phone:704-876-1111JoeyHughes

PEOPLESAUCTIONCOINCT/APAC1340HeadofRiverRdChesapeake,VA23322Phone:[email protected]

RADFORDAUTOAUCTIONINC2500TylerRdRadford,VA24141Phone:540-639-9011sales@radfordautoauction.comradfordautoauction.comDavidSale

RICHMONDAUTOAUCTION3800DeepwaterTerminalRdRichmond,VA23234Phone:[email protected]

ROANOKEAUTOAUCTIONINC1570UnderhillAveSERoanoke,VA24014Phone:[email protected]

SOUTHSIDEVIRGINIAAUTOAUCTIONPOBox3330Chester,VA23831Phone:804-796-6556EdieHess

TIDEWATERAUTOAUCTION656SMilitaryHwyVirginiaBeach,VA23464Phone:[email protected]

Auction Members of VIADASymbol of Quality


JUNE20134 District 6 Meeting13 District 8 Meeting17 District 3 Meeting18 District 4 Meeting23-27 NIADAConvention-LasVegas, NV25 District 1 Meeting

APRIL20132 District 6 Meeting15 District 8 Meeting20 VIADA Board Meeting22 District 3 Meeting30 District 1 Meeting

MAY201313 MVDB Meeting13 District 7 Meeting21 District 5 Meeting28 District 2 Meeting27 MemorialDay-StateOffice Closed

JULY20134 IndependenceDay-State OfficeClosed8 MVDB Meeting10 District 3 Meeting18-21 53rdVIADAConvention& Expo-Renaissance Portsmouth30 District 2 Meeting

AUGUST201318 District 3 Meeting/Picnic

**DATES ARE SUBJECT TO CHANGE**

STEVE FARMER, owner of Steve Farmer Auto Sales and the 2013 chair of Altavista’s Chamber of Commerce Board of Directors, won the Outstanding Citizen of the Year Award.

The criteria for the award is that the person selected be well rounded and have an active and aggressive interest in the community and its improvement.

Following high school graduation, Steve served in the U.S. Army in Vietnam, where he earned a commendation medal for heroism for moving through enemy fire to assist wounded comrades.

He returned to the Grit area and served for years on the Altavista Life Saving Crew, headed up the Parent-Teacher Association at Hurt Elementary School and led the Colonel Club.

He taught and directed the choir at Hurt Pentecostal Holiness Church. He and wife Sandra now attend St. John

Pentecostal Holiness, where he is involved in children’s worship.

Steve has provided financial support, cooked meals, and coached youth sports teams, including YMCA youth baseball and soccer.

He is an active member of the Altavista Rotary Club. Along with other club activities, he helped get furnishings for Frannie’s House and played a leading role in doubling the club’s membership.

He received the Rotary’s Paul Harris Fellow honor for his support of the organization. He also won the Rotary’s 110 percent district award, which goes to a member who has demonstrated service above self in the club and local community.

Steve has also been involved for more than 20 years in the annual Easter Egg Hunt for the Challenged. He and wife, Sandra, were volunteers for Relay For Life. They provided sponsorship, raised money, and organized the children’s activities.

Steve’s acceptance remark: “The Lord has given me strength, and with that, I wanted to help others if I could. I don’t have words; this will be one of my treasures that I’ll keep for a long time.”

Source: Altavista Journal

CONGRATULATIONS!

Altavista Area Chamber of Commerce AnnouncesOUTSTANDING CITIZEN OF THE YEAR


In MemoriamMother-in-law of Bill Allen of Bill Allen’s

Auto Sales in FredericksburgCharles Hiatt of Hiatt’s Used Auto Parts in

Danville

Father of Alan Hess of Southside Virginia Auto Auction in Chester

William “Bud” Booher, father of Dolphis Booher of Booher Auction Company in

Bristol, VA

Jerry Simpkins of Double J Motors in Norfolk Jerry was one of the original founders of VIADA in Norfolk, Virginia, in 1960. He served as President of the Tidewater IADA, the Virginia IADA, all the offices leading to those positions, and was awarded the VIADA Honorary Life Director Award in 2001. He received many awards for membership recruitment

including the National IADA Eagle Award for signing 20 plus members in one year.

He served as Chairman of the VIADA State Office Renovation Committee in 1991 and through the years kept a close eye on the building, to be certain it maintained its integrity, in behalf of the officers,

directors, and members of VIADA.He was a man of integrity and always made certain members were recognized for their contributions to

the Association. He will be missed.

Thinking of YouMother of Edie Hess, Southside Virginia Auto

Auction in ChesterMike Gerber of Mike Gerber Auto Sales in

Richmond

Welcome to our WorldAaron Michael Witt was born August 15 weighing 6 lbs 4 oz. The

proud grandparents are Mike and Mary Ellen Witt of Mike Witt Motor Sales in Salem.

Jacqueline of Tim Byrd & Associates is the proud Mom of Gavriella 6 lbs 2 oz born November 17.

Vickie London is a proud grandmother of Carly Jane who was born March 25 weighing 7lbs, 6oz, and is 19 ¾ in long.

VIADA Dealer Spends a Day at the General Assembly

Rob and Dale Fisher of Northside Auto Sales in Manassas were photographed in Senator Charles Colgan`s office in Richmond

on January 30th during this year’s legislative session. They spent the day shadowing the Senator as he went about his

day. They were able to do this with the winning bid at a charity auction held by the Benedictine Sisters to benefit their Abused

Women Program. They had a wonderful time.

CREDENTIALS:With over 15 years in auto lending, auto retail, and auto auctions at Fortune 100 and Fortune 500 companies, Jeff has some valuable insight to buying vehicles successfully at auto auctions. GENERAL AUTO AUCTION RULES:

• Don’t be intimidated. • Research – Black Book “Rough” vs. KBB “Retail”

(Potential Margin) before you bid.• Take out emotion and personal preference.• Bid obviously. Bidders who hide, generally have

something to hide. Consider reputation as a potential seller.

• Ask for help.• Use helpful technology. Smartphones - Black Book,

History, Dealer Logins, etc.• Bring a scanner & paint meter with you.

7 STEPS:1. Have your Budget in Mind

• Begin your vehicle purchase process by figuring out exactly how much you want to spend.

• Remember—there are additional fees added to the final price of the vehicle. Add those into your arbitrary budget.

2. Preview Auction Inventory• An easy way to view inventory 24/7 is to visit the auction’s

website.• Attend preview 1 day ahead of time! Most auctions offer

preview times – take advantage of this.• This is your time to view vehicles you are interested in.

You will be able to start the vehicle and try all mechanical options such as power windows and air conditioning. Be sure to thoroughly inspect the vehicles. Take this time to ask questions of the auction staff.

3. Register and Relax• You have the option to register any time before the

auction begins.• You will need to fill out a simple registration form.• You will want to find a copy of Auction Policies. READ

THEM! Specifically, fee schedule and Arbitration policies.4. Bid and Buy

• Obtain your bidder number the morning of the auction.• Each car will run by the auction block one at a time.

When your vehicle comes through, listen carefully to the auctioneer. He will begin bidding at a random price, and begin to lower the bid until he receives a bid. Raise your hand high in the air when you accept the amount announced.

• Another interested party or two may follow your bid. Continue to bid on your vehicle until either the bidding has gone beyond your budget, or YOU’VE BOUGHT THE CAR!

5. Sign Your Purchase Receipt• Step to the desk next to the auction block to sign your

7 Steps & the Secrets to Buying at Auto Auctions

BY:JEFFSCHULERVice President, District 2Richmond Auto Auction

paperwork. It will be ready just moments after the bidding ended for your vehicle.

6. Payment and Test Drive• Test drive your vehicle (Typically Green Light Only).• You are welcome to pay the entire balance, or leave and

visit your Financial Institution to secure funds.• Check auction policies for when full payment is due.

Some, that day, some within a few days.7. Check-Out and Drive Off

• When you are ready to take your vehicle, return to the cashier and pay the remainder of the balance.

• When you are ready to go, simply show your sales receipt and gate pass to check-out staff on the lot.

• Jump in, and you are off in your new vehicle!SECRETS:1. Check Engine Oil

• Oil should be clear and clean. Check to see if it looks creamy (chocolate milk), or if you smell any fuel. These are signs of problems.

• Check the oil cap for signs of sludge2. Check Transmission when Shifting

• If you are unable to test drive the vehicle, simply sit in the car with the motor running and change gears from P to D and to R. If there is a delay, or any unusual noise, this can be a potential transmission issue.

3. Check Dash Lights• 3 dash lights must come on when you start the motor,

and turn off. If not, there is a problem:i. Engineii. ABSiii. Airbag

4. Check VIN Stickers• There may be up to 11 on the vehicle (hood, fenders,

doors, trunk lid, frame, etc). Look for matching numbers, or missing numbers. If they don’t match, or if there are some missing, this could mean there is history of damage.

5. Check Tire Tread• Look for uneven wear. This could be a sign of an

alignment issue, suspension issue, or potential accident history.

• Hint - turn the front wheels to see the inside tire tread6. Stay Until the End of the Auction

• Some of the absolute best deals are at the very beginning and the end of an auction. Auctions often have late arrivals, and great cars. Don’t miss out!

7. Say Thank You to the Auctioneer• Auctioneers will always remember you if you treat them

with respect, and use proper manners in the auction lanes.

GOOD LUCK, AND HAVE FUN!


Thank YoutoallofVIADA’sAuctionCardParticipants

East Tennessee, Knoxville, & Washington DC

BY:ALANHESS,Southside Virginia Auto Auction

• Worksmarter• Expandyourhorizons• Findextrahoursintheday• BebetterinformedWe all know how challenging it can be to find inventory after years of declining new car sales, Cash for Clunkers and decisions by many new car dealers to retain and sell more of their trades. In tough times, it’s important to keep working hard, but it’s even more important to work smarter. Public auto auctions can help!WorkSmarterPublic auto auctions can help you work harder and smarter by offering you more hours in the day to buy and sell, as well as expanding your horizons as you buy from and sell to members of the public, new car dealers, finance companies and local county governments. Most importantly, public auto auctions can help you make better buying decisions thanks to fresh inspection pass or fail on all dealer vehicles offered for sale.ExpandyourhorizonsIf you only attend dealer only auctions, you might be missing some opportunities that could allow you to profit whether you are buying or selling. In theory, at a dealer auction, both buyers and sellers are well informed and you would expect they will make rational decisions about what to pay. Think about it—when you go to a dealer only auction, everyone one has a black book and has a pretty good idea of what

merchandise their buyers want to see on their lot. It is rare you see a father with his 16 year old daughter paying more than retail for the cute red convertible in lane A. How many times does this happen at public auctions? Come visit us and see! Public buyers want to buy yourcarsformorethanyouareasking.Public buyers come to buy a car at an auction to save money and they want a car now. The great news is they are buying at wholesale. Like you, a well informed, disciplined member of the public can save thousands at a public auto auction. The buyer pays less than retail and the seller gets more than trade – in. Everybody wins! The benefit for you as a dealer, if a public buyer really wants to pay more, they can—all the way up to the retail price they might have paid had they not come to the auction. For them, they get the car they want at a great price and they get it when they want it—now! Publicsellerswant tosell toyouforlessthanyouarewillingtopay. Whether it is to pay for the other car he just bought or get his old boat towing truck out of the driveway to keep his significant other happy, a public seller simply wants to dispose of an unwanted vehicle. The public seller wins by selling at public auctions as he can get a price higher than trade in. You win because you get access to merchandise not offered at dealer only sales and because members of the public are motivated sellers. They want that vehicle to go home with a different owner now! FindextrahoursinthedayAnother plus to you, public auctions are frequently held in the evenings—

after work. This expands the number of hours in your day. Why miss out on opportunities to sell from your lot during the day by going to a daytime auction when you could instead do it in the evening—when the buyers are there! BebetterinformedHow often have you bought a car at a dealer only auction only to find it had an out of date inspection sticker and had mechanical problems not covered by arbitration? I can’t speak for other public auctions, but we require every dealer seller to inspect a vehicle before they sell it to you or a member of the public. The benefit to you is you either get a fresh sticker—or if it is rejected—you know what you might have to do to get the car lot ready and can bid accordingly. If you want your 2013 bottom line to look better than 2012, we can help. Public auto auctions can help you work harder, smarter, meet motivated public buyers and sellers, do it in the evening where both you and they have time and finally, help you make better informed buying decisions thanks to inspect or reject policies.

About the author: Alan Hess is an entrepreneur and consultant in the financial services industry serving as a Financial Advisor to High Net Worth Individuals, Trusts, Institutions and Endowments. He and his team currently advise a select group of families, corporate accounts and endowments across the nation. Specifically, his group focuses on creating customized tax efficient investment portfolios with moderate risk and harmonizing those investments with estate investment plans.

Improve Your Bottom Line in 2013BY INCLUDING BUYING AND SELLING AT PUBLIC AUCTIONS AS PART OF YOUR BUSINESS PLAN


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030713_VIADA_You.indd 1 3/7/13 2:13 PM

VIADA RenewAls - JAnuARy 1st - FebRuARy 28th, 2013

30-39 YearsPrice Is Right Auto Sales Inc � Sonny G Arrington � Vinton � 37 Winslow's Auto Sales � Donald R Winslow � Virginia Beach � 34 Cosner Brothers Body Shop Inc � E Grant Cosner � Charlottesville � 32 May Motors � Larry L May � Elkton � 30

20-29 YearsNewmarket Motors Inc � Mark R Walker � Newport News � 28 John Talley Motors Inc � John W Talley � Mechanicsville � 28 Rt 1 Auto Exchange, Inc � Brandon G Boltz � Glen Allen � 28 Beach Auto Brokers Inc � Brian Jones � Norfolk � 27 Greensboro Auto Auction Inc � Dean Green � Greensboro � 26 Steve Farmer Auto Sales Inc � L Steve Farmer � Altavista � 26 Campbell's Used Car Inc � Tunis H Campbell � Leesburg � 25 W. E. Smith Auto Sales � W E Smith � Afton � 24 L & B Auto Inc � Paul Lynn Martin � Rustburg � 24 Wamsley Service Center � Neil Wamsley � Colonial Heights � 23 Nave's Auto Sales Inc � David R Nave � Gray � 23 Clem's Garage Inc � Kimberly R Clem � Stephens City � 23 National Auto Sales, Inc � Kevin Sullivan � Richmond � 23 Richmond Auto Auction � Bob Mann � Richmond � 23 J & R Auto Parts & Salvage Inc � James H Moon � Saxe � 22 Bay Auto Wholesale � J C Brown Jr � Virginia Beach � 21 Staunton Tractor Inc � Winston Phillips � Staunton � 20

10-19 YearsMotley's Car Connection � Randy W Motley � Danville � 19 Wally's Wholesale Fine Imports � Walter F Werness � Manakin � 19 Nu-Wheels � Harry E Hall, Jr � Norfolk � 19 Central Virginia Rental � Daniel Showalter � Waynesboro � 17 The Car Guys � Doug Hill � Providence Forge � 17 Advantage Certified � Kenneth A Davis � Manassas Park � 15 Coast 2 Coast Auto Sales � David P Maher � Virginia Beach � 15 Friendly Motor Co LLC � Larry E Holliday, Sr � Winchester � 14 Peaks Motors Inc � Joe C Tate � Bedford � 14 Kimble's Auto Sales Inc � Jack T Kimble Sr � King George � 14 Brookside Auto Sales � Jerry Douglas Kidd � Roanoke � 14 Gary McCann Auto Sales Inc � Gary L McCann � Tazewell � 14 Keysville Auto Center � Randy Claybrook � Keysville � 14 Cars Plus of Danville Inc � James C Mobley � Danville � 13 Consumers Auto Warehouse Inc � Andrew J Wiley � Staunton � 13 East End Auto Sales Inc � Leo F Gay, Jr � Richmond � 11 Jerry's Auto Sales � Elva W Pugh � Danville � 11 New Millennium Auto Sales Inc � Timothy S Higginbotham � Glen Allen � 11 Semones Automotive Inc � Richard D Semones � Blairs � 11 Excel Auto Sales II � Roy Stephen Brockwell � Carson � 11 G & S Auto Sales � Garry L Worley � Bristol � 10 Valley Auto Sales � James Higginbotham � Stuarts Draft � 10 Magnum Auto Group, Inc � Melanie Podpaly � Tappahannock � 10

1-9 YearsRuckersville Automart LLC � Earl Wayne Powell � Ruckersville � 9 Maguire & Sons Auto Brokers � Timothy M Maguire � Virginia Beach � 9 Hayden's RV'S � Charles Cheek � Richmond � 9 JTZ Enterprise Custom Website Design � John Summer � Fredericksburg � 8 Premier Auto Brokers Inc � Thomas A O'Gorman � Virginia Beach � 8 ESG Insurance & Financial Services � Michael V Warren � Toano � 8 Smith's Auto Sales � Jody A Smith, Sr � Glade Hill � 7 Mack's Auto Sales #2 � Joseph Michael Floyd � Disputanta � 7 Cars of West Point � Roy R Collins � West Point � 6 Easy Ride Auto Sales, Inc � John Hattar � Chester � 6 Carz 4-U � J Michael Howard � Midlothian � 6 Gold Star Motor Co � Thomas Maad � Winchester � 6 Scott's Cars � John M Martin � Vinton � 5 Variety Motors Inc � Richard Green � Norfolk � 5 American Motors LLC � Paul Tashner � Ashland � 5 XTRAUTO � Hussain Surani � Ashland � 5 Shoreline Auto Center � Gary Christopher Wright � Virginia Beach � 5 Bailey's Auto Sales � Bobby Bailey � Cloverdale � 5 Pay-Day Motors � William G Huffman � Narrows � 4 Hunting Hills Motorcars � A Gary Yamine � Roanoke � 4 Shore Drive Auto World � William Robinson � Virginia Beach � 4 Whitten Auto Center � Robert Whitten � Petersburg � 4 On Time Motors � Wallace Warden � Richmond � 4 Dachsunds Inc � Shavon Bussler � Windsor � 4 Auto Options Inc � Walt Bailey � King William � 4 Piedmont Motors � Mack Chehreh � Warrenton � 4 Melendez Motors � Tommie Melendez � Fredericksburg � 4 Great Bridge Auto Sales � Jim Capehart � Chesapeake � 3 Benchmark Auto Sales � John Hewson � Fredericksburg � 3 Quantum Auto Sales � Curtis Huffman � Roanoke � 3 Meridian Motor Cars � Mike Scroggs � Manassas � 3 A1 Auto Sales of Dulles � James David Luehrs � Sterling � 3 Liberty Motors � Hassen Allani � Chesapeake � 3 Mount Landing Sales � Gene E Sydnor � Tappahannock � 3 Culpeper Recycling LLC � Jacob Klitenic � Culpeper � 3 Long Island Motor Sales LLC � Clinton B Hall � Long Island � 2 Auto Use � Melissa Smith � Andover � 2 Boris Auto Sales & Repairs � Boris Caballero � Harrisonburg � 2 Kool Automotive LLC � Ross J Kool � Portsmouth � 2 Best Bet Motor Sales Corp � Sajal Narayan � Amherst � 2 Fastlane Performance � Kim O'Conner � Roanoke � 2 Solis Autos � Karen W Solis � Virginia Beach � 2 Ideal Auto Sales LLC � Stephen A Wyrick � Troutville � 2 Chartwell Motors � Jerry E Clark � Clifton Forge � 2 Automotive Options LLC � Samet Abed � Culpeper � 2 Rainbow Forest Automotive & Towing, LLC � David Chocklett � Roanoke � 2 J. D. Byrider of Richmond � Craig A Baker � Richmond � 2 Northside Auto Sales � Robert S Fisher � Manassas � 1 Fred's Select Auto � Qasim Abbasi � Woodbridge � 1 Royal Auto Credit � H Glenn Wood � Lynchburg � 1 Zwains Auto � Nazir Zwain � Richmond � 1 Hunn's Auto Sales � Lisa Hunn � Rocky Mount � 1 G & J Motors LLC � Owen V Johnson � Sandston � 1 Carsforsale.com � Aaron Oestreich � Sioux Falls � 1

Nixon Auto Sales Inc ª Peter D Nixon ª Virginia Beach ª V. London/W. Whitehurst The Import Car Store ª George Andrew Seymour ª Charlottesville ª V. London/J. Millner Country Corner Auto & Truck Sales Inc ª James L Armentrout ª Dillwyn ª T. Allman/D. Gripshover Auto-Land Inc ª Shamin A Hashmi ª Fredericksburg ª T. Allman/D. Sullivan 1st Choice Auto Sales Inc ª Leslie Garnett Tibbitt ª Newport News ª K. Lucia/W. Whitehurst Carmasters of Arlington ª Erica Lusk ª Arlington ª V. London/D. Sullivan VA Cars Inc ª Lynda Schrimpsher ª Richmond ª V. London/D. Gripshover WVXX Radio/Hindlin Broadcasting LLC ª Andy Hindlin ª Norfolk ª D. Boucher/K. Lucia

Tri Power Motorsports ª Robbie Brewster ª Bluefield ª V. London/G. Worley Hometown Auto Sales ª Tom Noland ª Warrenton ª P. Iaricci/C. Cooper Auto Chiefs Inc ª Raj Lal ª Fredericksburg ª V. London/D. Sullivan Franklin Auto Center ª George Loyd Jr ª Rocky Mount ª P. Iaricci/S. Arrington Benson Quality Cars ª James W Benson Jr ª Petersburg ª Ned Collier Dukes Auto Electric & General Service ª Doug Harris ª Richmond ª P. Iaricci/D. Gripshover Monty's Auto Sales LLC ª Donna Montalbano ª Timberville ª P. Iaricci/J. Millner

VIADA new MeMbeRs - JAnuARy 1st - FebRuARy 28th, 2013


In the last few months, NIADA has seen increased interest among consumer advocates, investigative reporters and state legislators regarding the sale of vehicles with open recall notices by independent automobile dealers.There have been a number of local television investigative reports across the nation in which hidden cameras have been taken to used car dealerships and undercover reporters have inquired about vehicles with open recall notices to elicit a response from a dealer or sales representative. The reports attempt to make dealers look suspicious in the way dealership personnel represents those vehicles.Some of the reports make reference to NIADA’s position on this issue, but NIADA does not have an official policy regarding open recall notices. We are continuing to study all aspects of the issue. However, at this time, there are still too many variables in the recall process to make a sound policy decision.NBC’s Today Show is working on a story about open recalls and asked NIADA to do an on-camera interview to discuss the issue and elaborate on dealer concerns. NIADA agreed, and chief operating officer Steve Jordan was interviewed by reporter Jeff Rossen last week. As of today, no air date has been set for the story.Because it is unknown how much of NIADA’s feedback will be reflected after final editing of the interview and to better prepare NIADA dealers to respond to any questions that may arise regarding this issue, we have included the Talking Points below that were given by Mr. Jordan during his interview with NBC. MediaTalkingPoints:• NIADA dealer members are

concerned about consumer safety. As NIADA members, dealers subscribe to a strict Code of Ethics that lends itself

to taking care of their customers now and in the future, offering better products, services and buying experiences.

• Independent dealers do not have any more access to open recall data than consumers.

• Currently, there is no central database or location that makes open recall data available by year, make, model and VIN, which would allow dealers to make a representation about a specific vehicle’s recall status. Last Summer, the President signed into law a requirement for the Department of Transportation to develop a database that would make open recall data available by year, make, model and VIN. That database has not yet been finalized and made available to the public.

• Some sources, like CARFAX, have VIN-specific information from some – but not all – manufacturers. This information can be a good start for dealers to find open recall data at www.niada.com. Other data sources, including the National Highway Traffic Safety Administration (NHTSA) website, www.safercar.gov, only list recalls by year, make and model and cannot identify recalls on specific vehicles.

• There is no federal law that requires a used vehicle dealer to identify and fix an open recall on a vehicle before selling it, and NIADA has no policy position at this time to require a dealer to do so.

• Given the limited access to VIN-specific open recall data, NIADA does not want to put dealers in a position where they are required to make a representation about a vehicle’s open recall status that they do not know to be 100 percent accurate.

• NIADA encourages its dealers to only make representations about vehicles they know to be accurate and they can substantiate, whether it is regarding open recalls, a vehicle’s condition or any other issue. Misrepresenting the condition of a vehicle – such as representing a vehicle as not having an open recall when it does or as having had the defect fixed when it has not been – is a violation of existing federal and state unfair and deceptive trade practice laws.

• Because consumers have as much access to open recall data as any licensed dealer, NIADA suggests that uncovering any open recall information should be a shared responsibility between the dealer and the customer as part of dealers’ efforts to assist their customers in gathering all the facts about a vehicle so they can make a well informed purchasing decision.

• Open recall information is available by VIN directly from manufacturers or their franchised dealers. NIADA encourages independent dealers, as a best practice, to contact those sources and take the additional steps necessary to identify and fix open recall notices – or at least disclose them to consumers – before any vehicle is sold.

ABOUTNIADAThe National Independent Automobile Dealers Association (niada.com) has represented the used motor vehicle industry since 1946. NIADA assists its members in becoming more successful and is the industry’s legislative representative for protecting dealer and consumer interests. The association consistently generates valuable industry education and information, along with services and benefits designed to prepare members for an ever-changing marketplace. As a consumer-friendly association, automotive consumer information can be found at autoconsumer.tv.

Open Recall Notices


(757) 532-3938www.TimByrd.net

ENDORSED BY:

WHAT SETS YOURDEALERSHIP APART?

CERTIFIED HELPS YOU STAND APART: How are you different from your competition? How do you compete with the franchise stores?CERTIFIED INCREASES SALES: By offering a true CERTIFIED VEHICLE WITH A WARRANTY you are giving your customers the peace of mind that they are purchasing a reliable vehicle.CERTIFIED INCREASES PROFITS: Research conducted by Autotrader.com indicates 67% of consumers were willing to pay an average premium of $1380 more for a Certified vehicle compared to a used non-certified vehicle.DEALER OWNED CERTIFIED MEANS INTEGRITY: This is a Members Only program exclusive to qualified VIADA members who agree to the highest levels of Integrity. DEALER OWNED CERTIFIED MEANS A NEW PROFIT CENTER: Not an expense, it is a renewable source of capital, a retirement program, and a claims control center.

The Dealer Owned Certified Used Car Program is uniquely effective because:

For more information contact:

It’s springtime at all auctions and the sales are high and the numbers at “Your Auction” are high as well. You can find about 1,200 units each week at our Wednesday dealer sale and 300 units each Saturday at our public sale. If you haven’t been to our new facility in Virginia Beach, you’re missing out! Come out and see why dealers agree – We’re the “best auction in the Mid-Atlantic!”Check out some of the technical innovations you can find here. Did you know that you can log into our dealer kiosks without an auction card? At Your Auction, we recognize you as an individual! All you need is your rep ID number and your own personal password and you can log in any time. Speaking of kiosks, did you know you can build your own customized block sheets with the units YOU want? Not only that, you can build your own watch lists. Utilizing our patent pending system, we’re the only auction that will send you a text message about 5 minutes before one of your watch list vehicles runs. That list will tell you the vehicle, the miles, the lane and the Black Book price. Never miss another vehicle at Your Auction!By the way... Tired of auctions not calling you on IF sales? We can keep you updated on the progress of every IF sale by text mail as they occur. Just let one of our friendly staff members know you want text mail notifications on IF sales. It’s free!Are you one of those dealers that wants to be notified when a title arrives on your purchases? At Your Auction, we can let you know the second it arrives in our office. Let one of our friendly staff members know you want text notifications when your titles arrive. It’s free!

BY:MIKEHOCKETTPresident, Tidewater Auto Auction

(757) 487-3464 office(757) 485-2227 cell

www.twaa.com

Customers come first at ADESA Washington D.C. The auction’s seasoned team of remarketing professionals strives to deliver for customers every sale day. How do they do it? By making their auction a place where dealers want to do business. ADESA Washington, D.C. offers seven action-packed lanes. Innovative technology is an important part of this auction’s operations. Located on 90 acres not far from Washington Dulles International Airport, ADESA Washington D.C. runs sales each Wednesday. Dealers can take advantage of high-quality services are also available to the auction’s customers including a state-of-the-art detailing, body and mechanic’s shop. Customers are also invited to enjoy the auction’s Internet theater. Here dealers can bid online but still get an up close and personal view of the lanes. DealerBlending is another of the auction’s offerings, where select franchise dealers are able to run units with certain captive accounts. The auction hosts two TopLine sales each month featuring a variety of consignors including Mercedes-Benz Financial Services; BMW Financial Services; Volkswagen Credit; Audi Financial Services; Nissan and Infiniti Remarketing Services; Honda Remarketing and Acura Remarketing. At ADESA Washington D.C. there’s something for everyone. Dealers also have the added benefit of ADESA’s customer-focused technology to support their buying and selling efforts. With ADESA DealerBlock, dealers can bid, buy and sell inventory online 24 hours a day, 7 days a week. In fact, customers can even sell inventory while it sits on their lot. Advanced search options, detailed vehicle reports complete with high-resolution photos and access to valuation tools are just some of the features dealers can use to locate the vehicles they need. Simply put, ADESA DealerBlock offers more services, more choices and access to vehicles.And when they can’t make it to the physical auction, ADESA LiveBlock lets dealers catch all the action online—as it’s happening. ADESA’s live online car auction tool lets dealers participate in sales through real-time audio/visual feeds. LiveBlock lets you place bids interactively alongside dealers on the auction floor. Meaning dealers can save time, save money and get the inventory they need—no matter where they are. The auction’s staff is continually reinventing their strategy to best meet the needs of their customers. In fact, renovation plans are in the works that would add two additional lanes to the auction’s existing seven. The project is expected to be completed later this year.

FORMOREINFORMATIONABOUTADESAWASHINGTON,D.C.,CALL703-996-1100.

BY:KELLYSCOTTCommunications Specialist

ADESA Corporate


Legal Pitfalls with Vehicles Purchased

at Auction

BY:CHRISFLOYD

Massive flooding from super storm Sandy last fall serves to remind dealers of the importance of effective due diligence when purchasing vehicles at auction. While most of the major flooding occurred outside of Virginia, it is likely that damaged out-of-state cars have and will find their way to the Commonwealth.

Virginia Code § 46.2-624 requires insurance companies to report to DMV when they have paid a claim of $3,500 or more on a vehicle due to water damage, even if the owner intends to retain ownership and continue driving the vehicle. However, a salvage dealer can purchase the car and move it to a state that doesn’t track flood or salvage information, resulting in a clear title from that state. Then when the vehicle is resold at auction, the next buyer does not have a way to know its true history.

Even if the auction provides information on the condition of the vehicle that was received from the seller, the dealer should not rely on such reports. Upon sale of the vehicle to a consumer, the legal standard of “knew or should have known” is often applied in relation to the condition of the vehicle, regardless of what information was provided at the auction or through a vehicle condition report (e.g., CarFax). In addition, broad indemnification and release language in auction house agreement terms typically disclaim any responsibility for representations made as to the condition of a vehicle and may bar recourse against the auction for providing inaccurate

information, unless the dealer can prove intentional misrepresentations by the auction staff.

Alternatively, trying to recover from an out-of-state seller who made misrepresentations to the auction as to the title or condition of the vehicle will most likely be an exercise in futility that will cost far more than

the purchase price of the vehicle. As a result, the burden falls on the purchasing dealer to investigate the history and condition of the vehicle prior to sale.

In Virginia the most common claims in regards to sales of vehicles purchased at auction arise under the Virginia Consumer Protection Act (VCPA), which generally prohibits misrepresentations and deceptive practices by “suppliers” in consumer transactions, as well as common law actual and constructive fraud. Typical allegations are that the dealer failed to disclose known defects or misrepresented the condition of the vehicle. Such claims often arise after the sale when the customer encounters mechanical issues with the vehicle and the dealer fails or

refuses to correct the problem, or the warranty/service agreement does not cover the issue, thus causing the customer to pay more out of pocket. Even in situations where the vehicle is sold “as is”, if a customer is able to show that the vehicle had a condition that the dealer either knew about or should have known about and did not disclose it, courts often do not hesitate to rule against the dealer.

The principal difference between actual fraud and constructive fraud is that constructive fraud does not require knowledge of the defect and the intent to deceive. For example, a dealer who purchases a vehicle at auction and does not thoroughly inspect it prior to sale to a consumer, thus not discovering any defects, can still face claims of fraudulent inducement by the customer, where they assert that the dealer made representations that there were no issues in regards to the condition of the vehicle, but should have known of the defect and disclosed it to them, in which case they would not have purchased the vehicle. A dealer’s honest mistaken representation is not a defense.

This was demonstrated in the case Packard Norfolk v. Miller, where a customer alleged that he had been induced to purchase an automobile under false and fraudulent representations. In this instance the salesperson had mistakenly represented to the customer “that the car would be in perfect condition . . . thoroughly checked . . . gone over carefully . . . [and] in a running condition as good as it could be . . . .” As you can guess, Miller had problems with the car after taking

“The principal difference between actual fraud and constructive fraud is that constructive fraud does not require knowledge of the defect and the intent

to deceive.”


delivery and subsequently sued the dealer for fraud. The Virginia Supreme Court held that a contract provision stating that there “are no warranties express or implied made by the dealer or manufacturer . . .” did not insulate the dealer from the customer’s fraud claim. The Court found the salesperson’s statements to be material misrepresentations that induced Miller to purchase the car to his damage and permitted the contract to be rescinded.

A customer who prevails on claims under the VCPA and fraud has the option of rescinding the purchase and/or recovering costs and damages related to the purchase and repair of the vehicle, including attorney’s fees, which frankly often exceed the value of the vehicle sold. So, how do dealers avoid such risk? By conducting a thorough inspection of each vehicle prior to sale and disclosing any issues discovered to the purchaser. Alternatively, if the dealer is unable to conduct a thorough inspection, they should provide the customer with a written disclaimer as to any known conditions that the customer signs off on, and encourage them to take the vehicle to an independent mechanic for inspection. In cases where such disclaimers were provided, dealers who disclosed the limits of their knowledge about a vehicle to a consumer were likely to avoid liability.

IFYOUHAVEANYQUESTIONSABOUTTHISARTICLE,PLEASECONTACTCHRISFLOYDAT757-213-6973ORBYEMAIL:

CHRIS@HRGCLAW.COM.THISARTICLEISMEANTTOBRINGAWARENESSTOTHISTOPICANDISNOTINTENDEDTOBEUSEDASLEGALADVICE.

WHENWASTHELASTTIMEYOUCONSIDEREDIAATOAUCTIONYOUR

AGEDUNITS,HIGH-MILEAGEANDLIGHTLYDAMAGEDVEHICLES?

While IAA has been around for over 30 years, we’re more than a salvage auction company. We move vehicles quickly. Last year, IAA sold over

1.3 million units. The fastest growing segment of IAA’s business is dealer trade-in with edgy cars that sell really

well next to a collision-damaged vehicle. Imagine that. IAA’s auction is one you should consider

and here’s why:• IAA has more buyers with local interest and

global buyers on-line in over 100 countries• IAA offers internet visibility on every vehicle

we sell• The IAA team provides fast post-sale

payment for your convenience • IAA’s Run & Drive auction lanes let buyers

see and hear your vehiclesIAA is a magnet for buyers looking for vehicles

they can quickly repair and sell, or even purchase for parts. We’re confident that we have a place at our Virginia auctions for your kind of

units.

Our target marketing attracts the right kind of buyers for all types of vehicles. Give IAA’s Virginia-based Auction Coordinator, Charles McCook, a call at (757)595-8493, or email

[email protected].

IAA-Auctions.com


to know how many people have visited your site. You want to watch where they are coming from and what they are doing within your website.Some of the savvier site owners have taken this measurement monitoring to another level. With the help of other 3rd party providers they have gotten even deeper into who is visiting their site and the sources of traffic. For instance, some have asked us to add code to their site that would enable their Google Analytic’s account. Much of the same information they provide can also be found on the statistics pages we provide our website clients, but not all web masters will go this extra step so Google can be the next best thing. I always caution that when you use any 3rd party provider like this you must remember you will be sharing with them all the secrets about your website’s traffic and there is nothing to say they won’t share that with others now or down the road. Another neat tool I learned from our Quality Dealer, Jamie Davis, is crazyad.com. For a fee they will map the exact screen location that your clients perform when they are on certain pages of your site. This is extremely handy to know because if you see a link is not getting followed as much as you like, you can use this tool to see if relocating it to another location on the page will increase clicks.Internet marketing is unlike any other because it can be measured like never before. A commercial could never lead to a credit application being filled out without you coming into contact with the consumer. Now, you can wake up in the morning, boot up your computer, and find vehicle inquiries, credit applications and even payment notices, all before you even open the doors! Remember, in order to improve, you must first measure where you are at. Work with your provider or call us today to see how we can help you increase Internet ROI, today!

instance, start by logging into the Dealer Only area of all these sites. Most will provide several ways for you to see how well your listings on their site are doing. At VUCD, you have three different pages available to you as a participating member. The first page will tell you what is hot and what is not out of all the cars on this site, not just yours. The second page will tell you how well your listings only are doing on VUCD. It will tell you how many times your cars are viewed, clicked on, how many times a 3rd party condition report was requested for each listing as well as a complete tally of all the Calls to Action successfully completed with your car listings. The third statistics page is for those who also have a website hosted and maintained by us. This page is real handy because it will tell you all the same shopping habits as they occur on your dealership’s website.The best thing about the Internet is you do not have to take their word for it. If you have more than a templated website, you should have available to you a number of other sources of statistical data available through your website’s counters and server logs. Ask your web provider for access to these counters and be sure you visit them, bookmark them, and continuously review them. Many dealers do not do this but I can tell you the clients we have that are periodically reviewing these stats and others are the same clients who get higher traffic volumes to their site.These statistics will often not only tell you how many people visited your site and when, they will often also include information such as where does your traffic come from, what search phrases they used to find you if they came from search engines, and they will also tell you all your other sources of traffic that are not search engines. That means if your advertising rep says they sent X number of people to your website, you should be able to confirm that at your very own website’s stats pages. It is not enough

BY:JOHNSUMMERJTZ Enterprise.com877-286-1564Return on Investment is the Holy Grail of advertising. It does not take an expensive education to know that if you can spend a dollar and get a return of two, which is a good thing. But to spend a dollar only to get fifty cents back is not sustainable. Every form of advertising has always had a means of measuring their ROI, but none of them can be measured like the Internet can be measured.Newspapers have always been able to tell you how many readers they have, magazines can tell you how many subscribers they have or issues they printed, and Television could provide estimates of how many viewers they have. However, they could not tell you how many times your ad was actually read, viewed or heard. Furthermore, they could not tell you how many sales you obtained as a result of these views and reads. With the Internet, that has completely changed.So, the question becomes, “How are you measuring your Internet ROI?” For many the answer is, “I’m not!” If you share this answer, you need to find ways to fix that or you may continue throwing money out the window.The first thing you want to do is outline all the various parts of your Internet Advertising Campaign. In other words, you want to list all the ways you advertise online that requires an investment, the I in ROI. Investment does not just mean money. You also want to take into account the time that you and/or your staff put in managing these various advertisements. Craiglist, for instance, might be a free classified website but if you are paying someone to post your inventory every day, you have that to factor into the Investment.I f you adver t ise wi th other 3rd party classified websites, like www.VAUsedCarDealers.com (VUCD), for

TheInternetCornerThe Wonderful Thing About the Internet is that

You Can Measure ROI!


Up to 1,500 units weekly with large

Independent Dealer Participation.

Up to 700 New Car Trades and

500 Fleet/ Lease and Repo’s

Highlights:

• Located 10 minutes from Norfolk

Int’l Airport & the Ocean Front , 30 minutes

from Newport News Int’l Airport.

• Floor plans available from AFC (on-site), DSC, Car

Bucks, MAFS, Auto-Use & many more.

• 24/7 Security

• 24/7 Dealer Access

• 24/7 Pickup & Delivery

• Restaurant on-site.

• Member of AASC, VIADA, CIADA, NIADA, NADA,

and NAAA

• Visit twaa.com for current listings, contact form

dealer applications, directions, etc.

Mike Hockett - Pres, Dody Nolan - Fleet Lease Mgr,

Cindy Perkins - Sales Mgr, Dustin Hockett - Carolina Sales

64

264

13

Indian River Rd

S M

il ita

ry H

wy

New Location info:

656 S Military Hwy,

Virginia Beach, VA 23464

Phone #: 757-487-3464

Fax #: 757-485-2227

656 S Military Hwy, Virginia Beach, VA, 757 487 3464, Website: www.twaa.com

Sale Every Wednesday Starting at 9:00amSale Every Wednesday Starting at 9:00am

Beginning with Specialty Units & Inop’sBeginning with Specialty Units & Inop’s

• New 72 Acres, State of the Art Facility

• 8 Lanes, Fully Automated

• Live Online Bidding

• Convenient Location

We’re one of the largest full service

Auctions in the Mid-Atlantic Region!

We are looking forward to serving you!

Virginia Independent Automobile Dealers Association4700 Thoroughgood SquareVirginia Beach, VA 23455

Symbol of Quality

Portsmouth Renaissance HotelPortsmouth, VA

July 18 - 21, 2013

VIADA’s 53rd Annual Convention & Expo

Documents

The Virginia Independent News