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Iowa Automobile Dealers Association News
February 20, 2013
NADA Hosts Convention, McEleney Honored as Award Nominee
Dealers descended on Orlando,
Florida for the NADA/ATD Convention
and Expo earlier this month, with more
than 70 IADA members traveling to the
Sunshine State for the annual event.
High profile speakers, including
Hyundai’s John Krafcik and former
Secretary of Defense Robert Gates,
delivered keynote addresses during
the four-day convention, inspiring
dealers to be leaders, persevere
through adversity, and take pride in
their accomplishments.
Throughout the convention, dealers
were able to network with vendors and
industry executives, and participate in
workshops with world-class presenters
from organizations such as the Disney
Institute and Google.
TIME and Ally also honored John
McEleney of McEleney ChevroletBuick-GMC-Toyota (Clinton) as
Iowa’s nominee for the prestigious
TIME Dealer of the Year award
during the opening ceremony of the
convention.
IADA hosted a member luncheon on
Sunday, February 10 at the Orlando
Hilton. The luncheon, sponsored by
Hawkeye Financial, Metro Services
Plus, and IADA Printing & Promotions,
offered an opportunity for members
A Henry Ford impersonator greeted visitors to
the Ford booth. Steve and Dan Alpen of
Ron Alpen Ford (Durant) took advantage of the
photo op.
Iowa’s TIME Dealer of the Year award nominee John McEleney of McEleney Chevrolet-BuickGMC-Toyota (Clinton), new NADA chairman David Westcott, and Iowa’s NADA Director Mark
Birdnow of Birdnow Chevrolet Jesup (Jesup) chatted before lunch at the NADA convention.
to escape from the bustle of the
convention floor and enjoy a delicious
buffet lunch.
Visit the IADA Facebook page to
see photos from throughout the
convention.
Marianne and George Grask of Cedar Rapids
Truck Center Inc. (Cedar Rapids) enjoy dinner.
Pat Clemons of Pat Clemons Inc. (Boone),
Jack Scieszinski of Albia Motor Co. Inc.
(Albia), and Bill Colwell of Bill Colwell Ford
(Hudson) catch up during the convention.
Bruce Anderson, Mary Cason, Mark Birdnow
of Birdnow Chevrolet Jesup (Jesup), IADA
Chairman Duane Barber of Don Pierson
Ford Lincoln (Spencer), and John McEleney
of McEleney Chevrolet-Buick-GMC-Toyota
(Clinton) pause for a photo before lunch.
Iowa Automobile Dealers Association • 1111 Office Park Road, West Des Moines, Iowa • 515.226.1900 • IADA.com
Dealer News
Mercedes-Benz of
Des Moines Receives
President’s Award
Congratulations to Ed Collinet of Lithia
Mercedes-Benz of Des Moines
(Urbandale), which recently received
Mercedes’ Best of the Best President’s
award. The award is given to the top 10
dealers in the country, and Mercedes-Benz of
Des Moines placed fifth.
Welcome New Member:
US Bank
Please join us in welcoming new associate
member Buzz Helsel of US Bank (Newport
Beach, California).
DOT Publishes Driver’s License Brochure
The Iowa Department of
Transportation has published a
brochure about the new versions
of the Iowa driver’s license and
identification cards.
You can download a copy of the
brochure from the IADA website.
The new driver’s licenses and
identification cards have options to
indicate a REAL ID-compliant card
(shown by a gold star), whether
a person is a temporary foreign
national (shown by the words
“LIMITED-TERM”), and whether
a person is a veteran (shown by
“VETERAN” appearing in red).
These symbols can be seen
on the sample driver’s license
pictured below.
Do you have dealership news you would like
to share? Let us know by sending an email to
Brittany Bungert.
Attention Students and
Parents: Scholarship
Applications Due March 1 January Sales Down Slightly from 2012
The deadline is fast approaching for Iowa
Automobile Dealers Foundation for Education
scholarship applications. All applications must
be received by 5 p.m. on Friday, March 1 to be
considered for a $2,000 scholarship.
Slightly slower sales kept January 2013 new vehicle registrations down
6.15% from 2012, although the 11,685 new vehicles registered were up
50% from the 2010 low.
If you know of a student planning to attend
college in the fall of 2014 who is interested
in working in a dealership after graduation,
encourage them to apply. Scholarships are
available for students interested in a variety
of dealership-related career paths, including
service technicians, marketing and finance
professionals, managers, and accountants.
14000
10000
9,808
12,451
11,685
4000
7,771
6000
8,353
8000
11,870
If you have questions about the Foundation for
the scholarships, contact Mary Cason.
12000
10,636
Applications and guidelines can be
downloaded from the IADA website.
Graduating high school students, current
college students, and non-traditional students
are all encouraged to apply. You can also see
last year’s scholarship recipients on the
IADA website.
January New Vehicle Registrations
2007
2008
2009
2010
2011
2012
2013
2000
0
Source: Reg-Trak
Iowa Automobile Dealers Association • 1111 Office Park Road, West Des Moines, Iowa • 515.226.1900 • IADA.com
NADA Director’s Report from Mark Birdnow
NADA Selects New President
The National Automobile Dealers Association has selected
Peter Welch as its new president. “I’m excited and honored
to be selected as the next NADA president,” said Welch.
Dealers Association. Taylor expects 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. Last year, 14.4 million new vehicles were sold.
Welch has been president and chief executive officer of
the California New Car Dealers Association in Sacramento
since 2003, and has managed its government affairs office,
including legal, legislative, and regulatory affairs, since
1990. It’s the country’s largest state organization for newcar dealers.
“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,” Taylor said. Taylor
highlighted several factors that will support stronger auto
sales in 2013.
“NADA is a well-run organization. I look forward to following
in the tradition of strong leadership at NADA. I’m ready to
roll up my sleeves and get started,” Welch said.
Dealership Insurance Booklet Mandate Eliminated
New-car dealerships are no longer required to provide
printed copies of the Relative Collision Insurance Cost
Information brochure to car and truck buyers upon request.
President Obama signed legislation that repeals the
outdated mandate and eliminates the $1,000 fine that
dealerships face for failing to comply with the law.
NADA Launches New Energy Ally Program
NADA and the Environmental Protection Agency (EPA)
have partnered to help new-car dealers reduce their
energy consumption through the Energy Star program.
As part of this effort, NADA and the EPA are encouraging
dealerships to complete a brief survey that will give the
agency a benchmark to better compare the energy usage
of dealerships across the country and allow certification
of those dealerships that perform well. The survey asks
dealers to share their yearly utility bills, square footage, and
different types of equipment used at the dealership.
“NADA’s ultimate goal is to help dealers learn ways to
save energy and reduce their costs,” said Don Chalmers,
chairman of NADA’s Government Relations Committee,
and a Ford and Lincoln dealer in New Mexico. “Before we
can begin the Energy Star certification process, we need to
benchmark the energy usage of at least 500 dealerships.”
To encourage participation, NADA has launched a
new program called Energy Ally. Businesses, such as
accounting, consulting, and energy management firms,
that assist at least five dealerships to complete the
survey will be awarded an NADA Energy Ally designation.
These contractors can use the recognition to market their
services to other dealerships. NADA has produced a video
demonstrating the cost-saving benefits of implementing an
energy-efficiency plan highlighting efforts at a dealership
in Christiansburg, Va. The video also highlights the
importance of dealers taking the survey and the ease of the
data input.
New-Vehicle Sales Momentum to Continue in 2013
The sales momentum of new cars and light trucks
established last year is likely to continue in 2013, predicts
Paul Taylor, chief economist of the National Automobile
ATD Convention Celebrates 50 Years
George Grask, former chairman of the American Truck
Dealers has been attending the ATD Convention and Expo
for nearly 30 years. From meeting with fellow dealers,
shopping the expo floor and attending make meetings,
Grask views the convention as a valuable investment in the
future success of dealerships. The workshops are “relevant
and pertinent,” says Grask, owner of Cedar Rapids Truck
Center (Cedar Rapids). Looking back, Grask has many
fond memories of past conventions and the cities, but says
San Diego will always be a special place to him. During the
1999 convention in San Diego, he was selected as Truck
Dealer of the Year, which is presented by ATD and Heavy
Duty Trucking magazine. “It was an honor,” he said. His first
convention as ATD chairman was also held in San Diego.
“We worked hard to represent our fellow dealers that year,”
he added. This year, ATD celebrated its 50th convention
in Orlando. The first convention was held in 1963, which
was seven years before the ATD division of the National
Automobile Dealers Association was established.
NADA U Launches Enhanced NADA University Online
NADA University has launched an enhanced and enriched
NADA University Online with new and expanded features
designed to custom-tailor the user experience. With an
all-new look and feel, the site provides dealership users
job- and task-specific training and education organized into
categories and topics that align with their needs.
2013 Dealership Workforce Study Opens
Participation in the 2013 Dealership Workforce Study
opened to NADA and ATD member dealers at the NADA
Convention. Participating in the study is an easy and
convenient process conducted through a secure webbased portal with a step-by-step enrollment process.
To further assist, there are separate processes for
single dealership enrollments and multi-dealer group
enrollments. When the study is completed and analyzed,
each participating dealer will receive a complimentary
individualized report (Basic Report) comparing his or her
own dealership’s compensation, retention and turnover,
and employee benefits data against data aggregated on a
regional and national basis. Participants may also purchase
an individualized Enhanced Report, which further compares
their dealership’s data against data for their franchise
and state. In addition to the individualized reports, a full
Dealership Workforce Study Industry
continued on next page
Iowa Automobile Dealers Association • 1111 Office Park Road, West Des Moines, Iowa • 515.226.1900 • IADA.com
Best Practice: Fix Any
Outstanding Recalls Before
Vehicle is Sold
There is simply no upside to
selling a vehicle with an open
and unrepaired safety recall.
PR Newswire issued a press
release citing a recent study by
CarFax that warns consumers
that there are more than two
million recalled cars for sale in
America. The study is based
on a review of online inventory
listings in seven Midwestern
states, including Iowa.
Granted, there is no state or
federal law that specifically
requires dealers to check
whether there is an unfixed
recall before selling a used
vehicle, but it’s the right thing
to do. The safety recall system
is designed to require direct
communication between the
manufacturer and the owner to
get recall notices out and repairs
made. However, it is a violation
of Iowa’s Consumer Fraud
statute to misrepresent, conceal,
suppress, or omit a material fact
in connection with the sale of
merchandise to a consumer.
The “omission of a material
fact” issue is the part that
isn’t addressed or fixed by
the posting of the “As Is – No
Warranty” used car buyers
guide. Just because you have
posted the notice required by
the federal government telling
the customer whether there is a
warranty doesn’t mean that you
are relieved of the responsibility
of disclosing all material facts
regarding the vehicle pursuant to
Iowa law. The result is that if you
aren’t checking for open recalls
and getting them fixed (or at the
very least telling your customers
that the vehicle he or she is
looking at has been recalled),
you are potentially left defending
a consumer fraud complaint. If
that happens, it’s pretty likely
Check for Recalls
When you’re selling a
pre-owned vehicle
of another make, it’s
easy to check online
for any outstanding
recalls.
Are You Celebrating an
Anniversary This Year?
If your dealership is celebrating a milestone
anniversary this year, let us know. Dealers
celebrating 25, 50, 75, or 100 years in business
will be honored at the annual meeting held
Friday, April 19 at the West Des Moines Golf &
Country Club.
Email Mary Cason or call her at 515.440.7625 to
let her know about your dealership’s anniversary.
NADA Director’s Report,
continued
continued from previous page
SaferCar.gov
Recalls.gov
AutoSafety.org
Recall.CarFax.com
you’re going to get asked these
two questions in the process:
1. Do you think the existence
of a safety defect so
severe that the federal
government has ordered
a recall is a “material fact”
that a customer would be
interested in knowing?
2. Would you let your mom or
daughter drive a vehicle that
has an unrepaired safety
recall without telling her?
And that’s just the legal side
of the issue. You need to ask
yourself what kind of customer
service it is to sell vehicles on
which you haven’t resolved the
outstanding recalls.
The bottom line is that the best
way to get repeat customers is
to take care of them, and you
need to start by making sure all
vehicles that leave your lot are
clear of any outstanding recalls.
Your customers—and your
reputation—will thank you for it.
Report will also be provided to all participants
at no additional charge. To participate in the
study, visit NADAWorkforceStudy.com or contact
800.557.6232. Participation ends March 31, 2013.
A Note from Mark
I recently attended the NADA board meeting. It
was enjoyable to get to know our new president
a bit better. Peter Welch has stepped into the role
quickly. (He had only about a week on the job
when the board met.) I continue to be
impressed with the dedication of the board.
Nearly all 62 board members were in attendance,
and they continue to show me that they are
committed to represent all dealers, large and
small, rural and metro.
I attended the industry relations luncheon. It’s
always interesting to talk to the factory people. I’m
very proud of the fact that John McEleney was our
Time Quality Dealer award winner from Iowa and
represented us well as such at the convention. It
was also great to see some Iowa dealer friends at
the Iowa lunch on Sunday too!
One particular thing I want to point out is that
the second phase of the Mercer study was
released at a press conference on the first day
of the convention. If you are interested in the
current debate on the value of factory facility
update programs you’ll want to read this report.
It concludes with a prediction of what the
dealership of the future will look like. The study
was exhaustively done, gathering information from
many sources. It’s very interesting. You can find it
at NADAFrontPage.com.
Once again, I’m proud to represent the dealers
of Iowa at the national level. Please contact me
anytime if you have a question, issue, or thoughts
regarding NADA and its efforts to represent you.
Iowa Automobile Dealers Association • 1111 Office Park Road, West Des Moines, Iowa • 515.226.1900 • IADA.com
Regulatory Refresh: Doc Fees
Upcoming Webinars
In Iowa, there is no law requiring
dealers to process the title and
registration or collect the fee
on new registration on vehicles
they sell, but this is a service
that most dealers provide. A
documentation (doc) fee that
is reasonable, consistent with
your costs, and disclosed to your
buyer is legal. However, caution
and conservatism are advised.
The imposition of unwarranted
fees could be a deceptive trade
practice and could potentially
subject you to a class action
lawsuit.
February 28 at 12 p.m.
A doc fee, if charged at all, should
be charged on every sale. You
may not make a determination
about whether to charge a doc fee
based on whether the sale is for
cash or credit. If you do, the fee
becomes an illegal finance charge.
A doc fee is a service charge for
title, registration, and tax work, not
for the work processing the credit
app or noting the lien on the title.
How much should we charge?
The amount charged must be
justified by your costs. You should
document your costs associated
with doing the titling, registration,
and paying the taxes. IADA
cannot tell you how much to
charge because the association
is prohibited from price-fixing.
However, every dealer that
charges an unreasonably high doc
fee is putting the dealership—and
all Iowa dealers—at risk for an
investigation.
What is the attorney general’s
position?
The attorney general’s office
dislikes supplemental charges of
any kind. It is the position of the
attorney general that merchants
should price their products to
cover their costs and avoid add-on
charges. The attorney general
has also taken the position that
it is consumer fraud for a dealer
to imply that Iowa law requires a
dealer to process title work and
collect the fee on new registration
on behalf of a buyer. It is also the
attorney general’s position that if a
dealer requires customers to pay
doc fees, the dealer must include
the fee in all advertised prices
and as part of any vehicle prices
quoted to consumers, whether
over the phone or in person.
How do we write the doc fee?
The doc fee should be separately
itemized on the purchase order
above the line, and will be
included in the cash price. The
doc fee is not taxable, so it can
be deducted from the taxable
amount. Do not separately list the
doc fee on the retail installment
contract—your bank will object.
The fee will be included in the
cash price on the retail installment
contract. Do not include the $10
lien-filing fee in your doc fee. The
lien-filing fee is separately stated
on the purchase order and is on
the retail installment contract.
Must-Know
Doc Fee Info
• The fee must be reasonable
according to your costs.
• Don’t decide to charge doc
fees based on whether a
sale is cash or credit.
• Include the doc fee in the
cash price.
• The doc fee isn’t taxable.
• Don’t separately list the doc
fee on the retail installment
contract.
• Don’t include the lien-filing
fee in the doc fee.
• Don’t imply that doc fees are
required by the government.
• If your doc fee is mandatory,
you must include it in your
advertised price.
Advanced Google Analytics for Dealerships
Cost: $149
Updated by Brian Pasch for 2013, this webinar
will provide an advanced look at Google
Analytics and share what Internet managers
can do with this remarkable set of tools.
March 7 at 12 p.m.
What’s New and Different in Fixed
Operations Pay Plans
Cost: $149
Fast-paced changes in the service and parts
business have pushed fixed-ops directors
to come up with new ideas on how to use
pay plans to motivate. Rob Campbell of
the Mironov Group will join Mike Bowers of
DealersEdge for a frank discussion of new
approaches to compensation for key service
and parts employees.
March 14 at 12 p.m.
Social Media Policy Update—The Rules
Have Changed Again!
Cost: $149
Many existing social media policies need to
be rewritten in light of recent rulings from the
National Labor Relations Board. Join labor
attorney Penny Phillips for a discussion of
the new rules for social media policies and
what car dealers need to do now to stay in
compliance with the law.
March 21 at 12 p.m.
What Variable Department Managers Need
to Know About the Financial Statement
Cost: $149
Better understanding of the financial statement
can help guide you to higher profits. Sandi
Jerome is a master of financial statement
analysis. Join her to learn how to use data
to improve net profit and control variable
expenses.
DealersEdge VIP Season Ticket
Don’t forget about the VIP Season Ticket
option! For just $800, your dealership can have
access to all the DealersEdge webinars and
training materials for an entire year.
Current Season Ticket subscribers can access
their training programs and resources at
IADASeasonTicket.DealersEdge.com.
Iowa Automobile Dealers Association • 1111 Office Park Road, West Des Moines, Iowa • 515.226.1900 • IADA.com