December 2014 Issue

Transcription

December 2014 Issue

Serving the Dealers of the Vehicle Sales Industry
Make your next sales event with Giant Blowup Figures!
www.rentmadjek.com, based in Silverton, Oregon
Expedited Title information from DMV
December
2014
IN THIS
ISSUE
Dealer Advisory Committee Updates
NHTSA Issues Warnings about Airbags
Legislative Tax Proposals
503-399-9199 / 1-877-541-2277 (Cars)
www.ORdealers.com
Published by the Oregon Vehicle Dealer and Oregon Power Sports Associations. PO Box 4290, Salem, OR 97302
503-399-9199, Fax: 503-763-1233 Articles are not legal advice. If you want legal advice, contact an attorney.
Calendar of Events and Education
All classes start promptly at 8:30 AM and end at 4:30 PM.
Dec 19
Wilsonville Holiday Inn, 8:30am to 4:30 pm. North Wilsonville I-5 Exit 286, on
West side of I-5. 25425 SW 95th Ave, Wilsonville, OR 97070
Jan 2
Jan 9
Prelicensing class Salem Office 8:30 am to 4:30 pm, RESERVATIONS ONLY
Jan 16
Jan 18-20
BHPH Best Practices Conference – Dallas Texas Hilton DFW Lakes
Executive Conference Center 832-767-4759
Jan 23
Jan 30
Feb 6
Feb 13
Feb 20
Feb 27
March 6
March 13
May 19-21
NABD 17th Annual National Conference, Wynn Resort and Casino in Las Vegas.
Classes: Classes are usually held every week on Friday. Always call the office for the latest updates.
December 2014
DEALER Solutions
2
NABD Announces Details of The BHPH Best Practices Conference,
Dallas - January 18-20, 2015
OVDA Note: OVDA and OPSA member discounts are available. Call the office for details.
HOUSTON, TEXAS –
“This Conference is designed to address the biggest challenges the subprime auto finance
industry is facing today,” said Ken Shilson, NABD Founder and President. “The buy here, pay
here operator is now facing stiff competition from finance companies, credit unions, and
franchise dealers. Therefore, BHPH operators must find new ways to retain and regain their
customers and increase market share during these highly competitive times. The old ways just
aren’t working because the industry economics and customer behavior have been altered by all
this competition for subprime customers,” Shilson explained.
“In addition, our industry is facing some new regulatory challenges from the Consumer Financial
Protection Bureau (CFPB), the Federal Trade Commission (FTC), and state attorneys general.
Legal and regulatory mistakes can prove very costly as evidenced by the most recent $8 million
penalty assessed against a major BHPH operator.”
In response, NABD has assembled outstanding experts, attorneys, operators, and former
regulators who will provide tips, techniques and best practice ideas that will help operators
navigate through these challenges in 2015. “You can’t do the same things next year and expect
to be more successful,” Shilson said.
Operators must now be more proactive in their compliance efforts in order to avoid significant
penalties and business disruption caused by increased regulatory scrutiny. “However, the
industry struggles with what to do and the expense associated with all these compliance
requirements,” Shilson explained. “At this conference we will explain what operators must do
now and how they can comply cost effectively! We are not receiving much insight from
Washington so we must seek input from former regulators who can share their knowledge.
Operators who believe compliance is expensive will learn that non-compliance is much worse,”
Shilson indicated.
The timing of this event allows operators to start the new year by doing the right things, which
will improve their results. The DFW Lakes Executive Conference Center is an outstanding
facility located very near Dallas Fort Worth International Airport, and ground transportation to
and from the Conference Center is provided. For attendees who wish to drive to the event, free
parking is available. NABD has arranged significant discounts on rooms while supplies last. No
resort fees are charged to guests and the property has a fitness center, indoor pool, and other
amenities. This event is very affordable for all key personnel.
The dual-track program will cover both operating and compliance best practices.
Operators are encouraged to send at least two employees so they can attend both tracks.
Unlike other trade shows, this educational Conference is specifically designed for the BHPH
industry so all the sessions will focus on relevant information. The sessions are interactive so
individuals can take away answers to their specific questions. An agenda and information on
keynote speakers is available at www.bhphinfo.com.
The Exhibit Hall features all the latest products and services available to help increase
profits and cash flow. Two receptions, a breakfast, and a luncheon are included and these are
designed to facilitate networking with the experts, exhibitors, and other attendees. “A very
limited number of exhibit spots remain available,” Shilson said. “To secure space, call Keith at
832-767-4759 as the exhibit hall is expected to be sold out.”
Significant early registration discounts are available for paid registrations received prior
to December 19, 2014. Some discounted rooms remain available at the Hilton DFW Lakes, so
attendees are urged to reserve now to receive the discount.
Hoping next year will be better is not a prudent strategy. Operators are encouraged to
“work smarter, not harder” in 2015! This conference will get them pointed in the right direction!
NABD is the only used car special interest group exclusively for the self-finance industry.
Membership is open to anyone in the BHPH industry and to service providers. Members pay no
dues. NABD will hold its 17th Annual National Conference at the Wynn Resort and Casino in
Las Vegas May 19-21, 2015.
DOJ RESPONDS TO OCTOBER DEALER SOLUTIONS ARTICLE
I read the Dealer Solutions and want to follow up on your response to Question from a Dealer 3. Having a consumer sign a “Goodwill Repair” form that says that the repair does not void or change any terms of
the sale agreement or the dealer’s liability makes sense. However, I think your response feeds in to the misperception among many dealers as to what the FTC Buyer’s Guide really means. If a dealer checks the “As Is
– No Warranty” box on the Buyer’s Guide it means just that – that a dealer is not providing the buyer with a
warranty. However, it does not mean that the dealer is no longer liable or responsible for non-disclosed material defects that the dealer knew or should have known about prior to the sale.
As we both know, used vehicles can start having problems at any time. In your example, the vehicle
may in fact have had a problem post sale, but, since it happened so close to the time of sale, the dealer wanted to take care of the issue to provide good customer service rather than fighting about potential liability. I just
want to make sure that your dealers aren’t confused and that if the problem was a material defect that was
present before the time of sale, they don’t think they have no liability because the consumer signed the FTC
Buyer’s Guide.
Besides ORS 646.608(1)(t) and OAR 137-020-0020(3)(o), I oftentimes will point dealers to the following cases, since they’re directly on point. Hinds v. Paul’s Auto Werkstatt, 107 Or App 63 (1991) and Parrott v.
Carr Chevrolet, 156 Or App 257 (1998), affirmed 331 Or 537 (2001).
Thanks, Eva Novick, Asst Attorney General, Financial Fraud Division, DOJ
LEGISLATIVE TAX PROPOSALS FOR 2015 SESSION INTRODUCED
The Senate Revenue Committee introduced 40 tax proposals Dec 8th. Below are the top 10. The Senate is
dominated by the Democrats with a Super Majority of Senators 18-D to 12-R. This means no tax can be defeated in the Senate by the Republican minority. The House of Representatives needs 36 of 60 votes to
pass tax increases, and the Democrats lead the House by a 35-D to 25-R majority, only 1 vote shy of another super majority.
Among the tax increases introduced:

LC 355 - Reduces charitable giving by capping itemized deductions at $20,000

LC 356 - A 50% cut to all itemized deductions, including home mortgage deductions for low and middle
income Oregonians

LC 903 - Caps mortgage interest deduction at $10,000, even for middle class Oregonians

LC 332- Eliminates supermajority requirement for tax bills

LC 321 - Allows cities to tax internet access

LC 348 - Eliminates the individual income tax "kicker"

LC 1036 - Allows cities to levy a sales tax on alcoholic beverages

LC 1674 - Raises taxes on job training non-profits, rural health care facilities, pollution control facilities,
TV and radio stations, housing for college students, farmland used for grazing, county fairgrounds, boats
used as ferries, crab pots, Christmas trees, trees and shrubs, farm produce (even if donated to a food bank),
farm machinery, small business inventory, and others

LC 1675 - Cuts the standard deduction and additional standard deductions for seniors and the blind
LC 1683 - Rolls back part of the small business tax cut from the 2013 Grand Bargain, the largest tax cut for
small business in Oregon history
December 2014
DEALER Solutions
5
OREGON DEALER ADVISORY COMMITTEE MEETS
October 23rd, the Oregon Dealer Advisory Committee and members of the industry met at the DMV main office in Salem for a 3 hour meeting.
A report was made about Dismantler problems and newspaper articles, with lots of uproar about why
it took 8 years for DMV to investigate stolen vehicle claims and dismantlers taking in vehicles without ownership documents. Several fines had been proposed but never administered in that time, and DMV never took
a leadership role in any of the investigations that were developed by other agencies, including the Portland
Police Bureau. The DMV Business regulation Manager, Chris Ratliff, was not available at the meeting, as he
had resigned his position and retired from DMV Monday morning. Articles can be seen on the Oregonian
website. Check out ‘Portland Car Theft Investigation: Time Line of Police investigation, DMV inspections’
and ‘Accused Portland Car crushing kingpin thrived for years as state DMV, police did nothing.
ODVA/OPSA President Monty King noted he had been complaining for years about these activities,
and had been told investigations were in progress. It turns out there were no real investigations underway,
and results from what had been done were not followed up on. King noted that at the rate of vehicles being
crushed daily at the suspect locations, about 125,000 cars had been stolen and crushed for their metal. ( yes,
that’s 125,000). It was a consensus at the meeting that the dismantler industry take the lead in drafting legislation that will clean their industry up. A subcommittee may be appointed to review recommendations from
the Dismantlers and from DMV Business regulation.
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Other ideas for DMV, now that the regulation area is under new management were floated:
Separate board for Dismantlers
Tighten up qualifications and disqualifications for persons who want to be dismantlers.
2 full time curber investigators
3 time loser legislation against repeat curber citations
Per vehicle fines
Better and more Public Relations efforts to inform public of regulatory activities
The Cycle dealer place on the ODAC is coming up for nomination. If you would like to be on the
Oregon Dealer Advisory Committee please let us know.
The Committee meets 4 times a year in Salem to review DMV operations and share industry needs and concerns to DMV management.
DEQ stations came up for discussion, with dealers wanting to know why DEQ staff were doing VIN
inspections and odometer statements without actually looking at the odometers and VIN numbers. These
types of non-standard inspections can cause problems with history reports like Carfax and AutoCheck.
The Transportation Commission has recommended to the Governor that the DMV computer program
and system be replaced by new technology. A computer fee would be placed on all transactions (paid for by
the consumer, not the dealer) to generate the income needed. The system we have now was built in 1973
and is DOS based. It is crumbling and cannot be fixed, and the staff that is keeping it together is getting older and retiring.
The Treasury Department says DMV has been allowing dealers to submit fees in an improper way,
and DMV must change its rules to comply with state law. The new rules and procedures could take up to 2
years to implement as DMV is asking for some exemptions to the rules all other businesses have to comply
with when collecting state fees. Most likely, at some point, a separate checking account will be needed to
deposit fees into at time of sale, and thse can only be deposited at a specific list of approved banks and credit unions. DO NOT PANIC. We’ll let you know in plenty of time when the rules change.
December 2014
DEALER Solutions
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QUESTION FROM A DEALER 1: Question: Do I have to have a supplemental location certificate for
property close to my regular dealership? They are only a few feet apart.
Answer: A dealer has to have a supplemental location for each location where they display vehicles for
sale, unless it is within 500 feet of an existing lot. So, the extra lot could be within 500 feet of a supplemental location or the original location without having to invest in a supplemental location certificate.
TRUST ME?
In the Women-Drivers.com’s 2014 U.S.
Women’s Car Buying report, the #1 reason women buy from their sales associate is ‘trust’. Even if there is a dealership that is closer to their home, the report says 65% of women will drive further away to look at vehicles if it is a
dealership they trust and respect. But,
when women leave and don’t buy anything, 66% of them will not return. Their
first impressions count heavily.
QUESTION FROM A DEALER 2: Question: .My insurance and bond extend past my renewal date. The DMV
has the originals from before. Will I still need original
proofs for my renewal application?
Answer: Not for the bond, as long as you’ve paid for it
before the renewal so it remains continuous. For the insurance, a copy of the current certificate which expires
after your dealer license does, or a new one that extends
it for another year. If the first, make sure the insurance
company sends DMV the renewal certificate (on the
DMV form) before the expiration date.
You’re the one to get hurt if the insurance company forgets, or their fax machine does not work right, so check
with DMV before your license expires to make sure they
have faxed in the insurance renewal.
Question from a Title Clerk Trainee:
Question: Do you have any online classes available? If so, please advise me how to sign up. Otherwise I
will sign up for one of the Wilsonville classes
Answer: The live class is worth attending. The reading program does not help you with the inter-related
deadlines and decisions you have to make. You’ll understand if you attend the live class. You won’t if you
do a reading program.
December 2014
DEALER Solutions
7
INSPECT WHAT YOU EXPECT! By Sally Whitesell
Training without accountability is like a cake without icing.
It's good but something wonderful is missing.
Have you ever gone to a fast food restaurant without someone delivering a word
track? Of course not. They are trained to deliver a word track for a reason. Do you
think using a word track – or not – is a choice? What would happen if someone in your
service department decided they didn't want to use a word track because it's "too pushy"
or "they never buy anything" and "they probably don't have the money"? Dealerships
spend thousands of dollars training their employees, but all that training will be wasted if
the employees are not held accountable for the processes. Accountability is critical to
improving CSI.
Often I go into stores and find every advisor running a business within your
business. This is a big problem. You now have many managers setting up their own
processes, which causes anxiety for your clients and kills your customer satisfaction
scores. There is no consistency. How can your guests rate your processes when they
are treated differently every time they come in for service? How can you rate your advisors performance without standards? The following are some important steps to set up accountability processes on your drive.
1. Listen to their best practices and suggestions
You probably have some very talented individuals on your team who can contribute to setting policies. Studies have
shown that employees who are included in the game plan are more apt to buy in. If they are a part of the process they
will feel respected, appreciated and be much more likely to lead the pack.
2. Make sure they understand why consistency is important
Have you ever noticed that customer surveys – no matter the industry – can be wildly different from one guest to another? Severe swings in ratings are a good indication that there is no consistency in procedures, training and recommendations. It is not unusual to find everyone in a store making different recommendations for each mileage increment based
on what they feel is important. Imagine how confusing this is to your guests. Inconsistent recommendations will eliminate your client's trust in your store and eventually lead to a low CSI.
3. Put your policies, procedures, consequences and rewards in writing
We always recommend using a very detailed job description so there is never any question as to what you expect. Having your policies, procedures and the consequences for not adhering to them will take any guesswork out of the equation. This should be reviewed one-on-one and used when hiring. Consequences are never fun but absolutely necessary. If your job requirements are specifically outlined then the consequences should not need to be carried out often.
4. Outline minimum standards for the position
This can only happen after the other steps have been put in place. Minimum standards are imperative to keep everyone
performing. This is not a performance goal, but rather what each chair on your drive should produce based on past performance. As your group improves, the standards should be raised. Warning: Minimum standards that are not met
have to have a consequence or else they are just another suggestion. Some examples of consequences are a loss of
bonus opportunity, more time off the drive and in training, or eventually a write-up – better yet an exciting promotion to
being a porter.
5. Hold one-on-one coaching sessions
Everyone likes to feel important, and face time with a manager will reinforce that you are interested in their progress and
want to make sure they have the tools they need for success. Keep your door open and listen to your employees. Give
them specific feedback on performance and goals while eliminating any gray areas. Learn each individual’s motivational
triggers and use them.
Continued on next page
December 2014
DEALER Solutions
8
Continued from page 8
6. Get rid of rebellious employees
Negativity is poison in the service drive and is a sure way to kill your profits. Sometimes your most successful advisor
is only successful because they have drug everyone else down. Your drive will be much more productive if everyone
works as a team and negativity is eliminated.
7. Lead by example
First you have to step into the role of a positive motivating leader and then you need to show them how to keep commitments and follow through with promises. Your team's growth and welfare should be more important than personal
preferences and agendas. Put your people before your paperwork.
No matter how talented an employee may be, non-excitant training, guidance and leadership will cause them
to throw away their potential and waste what could have been a great resource for your business.
If you are having constant turnover or a lack of growth, the change may need to start with you!
Accountability is critical to improving CSI, Customer Retention and Profitability!
Sally Whitesell is President of SW Service Solutions. She has performed complete Fixed Ops training for 20 years at
a Cooperate and Dealership level. SW Service Solutions provides many unique training programs with a specialty in
the differences that come when selling to men and women. They offer seminars, in-store training and on-line interactive training. Visit swservicesolutions.com or contact her directly for more information [email protected]
(317)509-5615
FROM DEQ AND DMV
Vehicles that are 4 model years or newer in age must continue to be certified by DEQ. However, the price of the Clean Air
Certificate for these newer model year vehicles is $0.00 (free of charge). Older model year vehicles will continue to be
charged the regular DEQ certification fee. To provide clarity, here are examples for this calendar year and next:
DEQ test during Calendar Year 2014

Vehicle model year age 2011 and newer = $0.00
Vehicle model year age 2010 and older = Regular DEQ certification fee
DEQ test during Calendar Year 2015

Vehicle model year age 2012 and newer = $0.00
Vehicle model year age 2011 and older = Regular DEQ certification fee
OVDA/OPSA Questions to DMV:
Question: If an owner transfers an existing Oregon plate and registration to a brand new vehicle (vehicle with an MCO/MSO)
and the registration is up for renewal within the next year, does it have to pass DEQ?
Answer: Yes, but the Clean Air Certificate would be free.
Question: If a vehicle is less than 4 years old and comes into the state with an out of state title, does the vehicle have to
have pass DEQ?
Answer: Yes. Again, the Clean Air Certificate would be free.
Source for answers to these questions was Oregon DMV Vehicle Programs.
December 2014
DEALER Solutions
9
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THOUGHTS FROM MONTY KING
OVDA & OPSA PRESIDENT
A WARNING ABOUT AIRBAGS
I’ve read more articles about airbags and the possible fraud involving manufacturers and
their suppliers. This WILL affect you unless you don’t sell vehicles with airbags.
There are calls from many sides asking that dealers be responsible for making sure the airbags in cars are up to par and not dangerous. Unfortunately, only franchise dealers can actually
repair vehicles under recalls. The consumers groups don’t want to listen to that excuse though. I
don’t believe they will prevail in their attempts to make independent dealers liable for airbag failures UNLESS the dealers sell vehicles that have not received their airbag repairs or have their repairs scheduled at a franchise dealership. That schedule can be kept by a consumer buyer after
the sale.
This is a big issue. There are now U.S. Senators calling for a probe of Takata, with the rumor being they knew about their problems since 1998, hid test results and generally tried to ignore
the problem. They want a criminal investigation started by the Attorney General’s office on the allegations. The National Highway Traffic Safety Administration (NNHTSA) is now also seeking whistle blowers to hidden evidence. Airbag recalls now are in the 10,000,000 vehicle range; with some
saying it will eventually involve 17 million. The senators are asking for an immediate mandatory
nationwide recall of all affected cars. (Although we don’t know what that actually means in the real
world)
What should you do? Check all your vehicles for outstanding recalls. This can be done
online. Click on the link ‘VIN search’
From the NHTSA site:
New! Has your recalled vehicle been repaired? Find out using our VIN search.
Owners may not always know their recalled vehicle still needs to be repaired. NHTSA's new
search tool lets you:
Enter a Vehicle Identification Number (VIN) to quickly learn if a specific vehicle has not
been repaired as part of a safety recall in the last 15 years.
Directly access the recalls databases of major vehicle and motorcycle manufacturers.
Get the relevant recall information so you can contact the manufacturer or dealer about the
repair if it was part of a safety recall.
OREGON
This is one of the reasons we need a strong dealer association at the Salem capitol. There might
be repercussions and companion legislation at the state level, and we need to make sure our reasonable input is there for consideration before any state legislation is passed t hat will adversely affect Oregon consumers, businesses and of course, dealers.
Monty King, OVDA, OPSA & AAO President
December 2014
DEALER Solutions 12
REVIEWING CHICKEN SCRATCHES ON UNOFFICIAL RETURNS
November 5th, day after the election
By: Darrell W. Fuller
“It was a dark and stormy night” and when all the ballots are counted, the
numbers will have changed little in the Oregon Legislature. All 60 House
seats were up for re-election while 16 of the 30 Senate seats were on the
ballot (76 total legislative races). Let’s look at the numbers.
After the 2012 election, the Oregon Senate had 16 Democrats and 14 Republicans and the Oregon House of Representatives had 34 Democrats and
26 Republicans. After this year’s election, the Oregon Senate will have 18
Democrats and 12 Republicans* and the Oregon House will have 35 Democrats and 25 Republicans.
Millions and millions of dollars -- much of it from out-of-state billionaires -- were spent on these 76
Legislative races, all for a net partisan shift of only two seats in the State Senate and one seat in the
State House. And out of 61 incumbents running for re-election, 59 won.
Of the 16 State Senate races, 15 had an incumbent running and 13 of those 15 incumbents won.
The only incumbents to lose: State Sen. Betsy Close (R-Albany) and Sen Bruce Starr of Hillsboro.
These races are why Democrats gained two seats in the Senate.
Only one State House incumbent lost: State Rep. Jim Thompson (R-Dallas) lost in the May Primary
to a more conservative Republican. Of the 60 House members, 46 campaigned for re-election and
45 won.
While a partisan shift of +2 Democrats in the Senate may seem insignificant, next year’s Legislative
Session will likely demonstrate how important a two-seat shift can be in politics. With last session’s
razor thin 16-14 Democratic majority in the Senate, conservative-leaning Democratic State Sen.
Betsy Johnson (D-Scappoose) sometimes sided with the GOP on controversial bills, creating a 1515 tie. (Controversial? Think gun control, for example.) Those controversial bills never made it to
the Governor’s desk. Now, with a 18-12 Democratic majority, even if Sen. Johnson continues to
vote with the GOP on controversial issues, they will pass 17-13, assuming Senate Republicans
can’t convince other Democrats to cross party lines.
Across the nation, Republicans had a big night on election day. The GOP took control of the U.S.
Senate and substantially increased their majority in the U.S. House of Representatives. Oregon
was an outlier. Democrats will continue to control the Office of Governor, the state Senate and the
state House of Representatives.
Aspirin, anyone?
December 2014
DEALER Solutions 13
John A. Kitzhaber, MD, Governor
DATE:
October 30, 2014
TO:
Oregon Dealer Associations
FROM:
Stephanie Zellner
Vehicle Programs
SUBJECT:
House Bill 4149 – Dealer Expedite Title Service
Department of Transportation
DMV Services
1905 Lana Avenue NE
Salem, OR 97314
The 2014 Legislature passed House Bill 4149 requiring DMV to establish rules and procedures for providing an
expedited title service to Oregon vehicle dealers, effective January 2, 2015.
New Dealer Expedite Title Service
The new dealer expedite title service allows a vehicle dealer to request an expedited title if the dealer pays the
required fee and submits the transaction in the manner required by DMV. House Bill 4149 set the fee for this
service at $100 and requires DMV to adopt rules establishing criteria and procedures for the new service.
In consultation with Oregon vehicle dealer associations, DMV has filed a new administrative rule, OAR 735022-0065. DMV has also created new work processes and new forms to provide dealers that choose to use this
new process. DMV is committed to processing these title transactions as quickly as possible. As long as these
transactions are submitted to DMV with all necessary requirements and fees, DMV anticipates that the dealer
expedited titles will be processed as quickly as other expedited title transactions. Furthermore, this new service
offers Oregon dealers options never before available, most notably, the ability to request that an eligible title
transfer be expedited, without having to show a need for an expedite, such as the requirement that a vehicle is
subject to Federal Odometer requirements.
Dealer Expedite Title Service Requirements
An Oregon dealer may request a title only transaction to be expedited if the dealer pays the required fee and
submits the transaction in the manner required by DMV. Oregon dealers must include the following
requirements when submitting a dealer expedite title service transaction:
1. Application for Title, Form 226, with primary ownership document, or Application for Replacement
Title, Form 515.
a. Dealer must check the “Dealer Trans” box on the Application.
b. Dealer must indicate “Expedite” in the “Remarks” section of the Application and include your
dealer number.
c. $77 or $90 title fee,
d. $100 dealer expedite title fee,
e. All other applicable title requirements must be submitted.
2. Instruction for picking up the title if it is not to be mailed.
a. If the dealer requests to pick up the processed title from DMV, rather than mailed, only the
person whose name is printed on a title, or a third party authorized by that person, may pick up a
processed title. The dealer must include the request in the “Remarks” section of the Application
or on a separate note included with the transaction. If the title is to be picked up by someone
other than the owner printed on the title, the new Form 735-7287, Third Party Authorization to
Pick up a Dealer Expedite Title (new DMV form, see detailed information below), must be
completed and submitted at the time of pick up.
b. The dealer must include the name of the person and contact information (e.g. phone number or
email address) that DMV will notify when the title is ready for pick up with the transaction.
Submitting Dealer Expedite Title Transaction to DMV and New Envelope, Form 735-333Y
Oregon vehicle dealers will have two options for submitting a new dealer expedite title transaction to DMV; by
mail or dropping the transaction off at the DMV Business Regulation Section in Salem.
Option 1 – Mail: The most cost efficient option is for dealers to mail these transactions to DMV Headquarters.
DMV has set up a dedicated address for these dealer expedite title transactions. It is vital that dealers use the
following address to ensure proper routing and the quickest processing of the transaction:
OREGON VEHICLE DEALER EXPEDITE TITLE SERVICE
DMV Services
1905 Lana Ave NE
Salem, OR 97314
Dealer expedite title transactions will be processed separately from all other transactions and dealers should
only use the above address and avoid using envelopes with any other address. Do not use the existing odometer
related expedite envelope, DMV Form 735-333E, for Dealer Expedite Title transactions.
To avoid misdirected mail and to aid dealers, DMV has created a new envelope just for Oregon dealers to use
for the dealer expedite title transactions. The new envelope will be bright yellow in color and will include the
address above printed on it. The new envelope will be DMV Form 735-333Y, and will be available to all
Oregon dealers in January or sooner. Form 735-333Y can be ordered from the Business Regulation Section and
will be available at DMV offices with dealer counters.
Option 2 – Drop Off: The second option is for dealers to drop these transactions off at DMV Business
Regulation Section, located at 1965 Lana Avenue N.E., Salem, Oregon. The drop off option is available during
normal business hours and no appointment is necessary. The dealer will fill out a “drop-off log” noting the date
and time the transaction was dropped off.
Note: DMV Field offices will not accept or forward dealer expedite title transactions.
New Form 735-7287, Third Party Authorization to Pick up a Dealer Expedite Title
All titles processed through the dealer expedite title process will be mailed as applied for on the application
unless the dealer provides a written request to pick up the title. The request must contain the phone number or
email address and name of the person that DMV will notify when the title is ready for pick up.
If a third party will be picking up the title, the vehicle owner must complete a Third Party Authorization to Pick
up a Dealer Expedite Title, Form 735-7287. The third party will present the authorization form and valid
government-issued photo identification for DMV to view and photocopy. The person picking up the title will
sign a “pick-up log” noting the date and time they picked up the title. The new Form 7287 will only be
available on DMV’s website at www.oregondmv.com.
If the title is not picked up within three business days, the Business Regulation Section will mail the title as
applied for on the application.
The DMV Title and Registration Handbook will include information about the new dealer expedite title service
in the January 2015 revision.
If you have any questions regarding this information, please call DMV Customer Assistance (in Salem call 503945-5000, in Portland call 503-299-9999, or call the DMV number listed in your local directory). For further
information or after January 2, 2015, you can visit the DMV website at www.oregondmv.com.
REPORTS FROM DMV (FROM WINTER 2014 DEALER DETAILS)
CURBSTONERS HEAR FROM DMV
DMV is trying some new proactive approaches to deal with the problem of unlicensed vehicle dealers. Posters and informational brochures have been developed that describe the penalties for acting as an unlicensed
dealer, and are being distributed to auto auctions and DMV field
offices.
DMV has also submitted public service announcements related to dealer licensing to major newspaper publishers in Oregon with a request to publish the announcements in their classified sections as space
permits.
DMV Business Regulation investigators have been busy, as you can see by the civil penalty section in
the newsletter. In the third quarter of 2014 we opened 58 unlicensed dealer
investigations. During this period, we issued 28 advisory (warning) letters to the sellers, 24 vehicle notices
were posted on vehicles parked for sale, and two civil penalties were pursued against unlicensed dealers.
Twelve of the individuals who were initially contacted by investigators for selling vehicles without a dealer certificate obtained a dealer certificate during the third quarter of 2014.
– Larry Purdy, Chief of Investigations
RECENT CURBER PENALTIES ASSESSED
Gary R White
Springfield Acting as a vehicle dealer without a current dealer certificate
Van Kha
Salem Acting as a vehicle dealer without a current dealer certificate
$10,000
Nicole Renee Crom Eugene Acting as a vehicle dealer without a current dealer certificate
$17,500
Pedro M Aguilar
Oakridge Acting as a vehicle dealer without a current dealer certificate
Roger Dean Cote
Portland Acting as a vehicle dealer without a current dealer certificate
$22,500
Other penalties not normally seen:
Dealer’s unauthorized release of personal information to entity not qualified
Failure to confine vehicles without title/ownership documents to an off-limits area
Failure to obtain a corrected dealer certificate
Destroying a motor vehicle prior to obtaining ownership record for vehicle
Failure to submit dealer’s notice of vehicle purchase within 7 days
$10,000
$20,000
BE SURE TO MEASURE RV LENGTH YOURSELF
A recent article in Dealer Details explained that Oregon vehicle dealers must pass along fees collected for
DMV. Oregon recreational vehicle dealers need to do more than collect and pass along proper registration
fees by reading them from a DMV fee chart. Oregon Revised Statute (ORS) 803.425 requires the recreational vehicle dealer to measure special use trailers, travel trailers, campers, motor homes and tent trailers to determine the appropriate registration fee.
What’s the problem? Often, recreational vehicle dealers are using the Manufacturer’s statement of
Origin (MSO) and industry brochures to determine the length for registration fees. They fail to measure the
actual lengths of these vehicles as required by law. The lengths from these sources often have been off by 1
to 4 feet. Because the dealer failed to physically measure the vehicle, these erroneous lengths have been
used to register these vehicles and are now part of the official DMV vehicle record. This puts your customer
at risk for violation of ORS 803.315: Failure to pay appropriate registration fees, due to the improper measurements. This error also might cause a dealership to receive civil penalties for not submitting all fees due to
the state in connection with the sale or transfer of a vehicle, under Oregon Administrative Rule (OAR) 735150-0110 (2).
How are these vehicles measured for registration fees? Dealerships should have their employees secure a reliable tape measure and do the following to measure the proper length of the vehicle:
Continued on next page
December 2014
DEALER Solutions 16
CONTINUED FROM PAGE 16
Special-use and travel trailers: Special-use trailers and travel trailers are measured from the
foremost point of the trailer hitch to the rear extremity of the trailer body not including the spare tire, but including all ordinary equipment or appliances appropriate to the type of body such as stakes, curtains,
hooks, skids, tailboard (a board or gate at the rear of a vehicle), chains, sides
and roof.
Campers Campers are measured by overall length from the extreme front to the extreme rear of the vehicle.
Motor Homes Motor homes are measured by overall length from front to rear extremities.
Tent Trailers Tent trailers are measured by overall length when folded for travel.
Unfortunately, RV dealers still will need to use the appropriate DMV fee chart in Chapter M of the
Title and Registration Handbook to calculate the proper registration fee, based upon your measurements.
However, you should remember to round down to the nearest full foot
for any fractions above the nearest foot.
– David Jurgenson Investigator
DMV Business Regulation
PROMPT LIEN PERFECTION PROTECTS YOU
Oregon law gives vehicle dealers 30 days from the date of sale to submit title and registration
applications to DMV. When the name of a security interest holder, such as a lender or lessor, is going on
the title, it is particularly important that the application be submitted within 30 days to perfect their security
interest.
Timely submission of the application protects both the dealer and lender. It may give the security
interest holder certain priority rights in case of disputes or if the debtor files a bankruptcy. In addition, the
security interest holder also might have placed conditions on the face or reverse of their check related to
the dealer’s responsibility to perfect interest.
Chapter I of the DMV’s Title and Registration Handbook covers Security Interest Perfection in more
detail. Procedures for using a transitional ownership document (TOD) – to perfect interest in a vehicle when
the primary ownership document or title is not available to submit to DMV – are also outlined in this chapter
NHTSA ISSUES URGENT WARNING FOR AIRBAG RECALLS
On Oct. 20, the National Highway Traffic Safety Administration issued an urgent advisory to the owners of
some 7.8 million cars throughout the United States about a massive recall for defective airbags.
The recall affects cars from 10 manufacturers that used Takata airbags in various vehicles spanning
model years 2000 to 2011. It impacts some of the most popular used vehicles on the market, including
Dodge Ram trucks, Ford Mustangs, Subaru Outbacks and Legacies, Toyota Corollas and Nissan Maximas,
Pathfinders and Sentras. Honda was the manufacturer most affected with more than 5 million recalled vehicles, including Accords, Civics, CR-Vs, Elements and Odysseys.
NHTSA said the problem seems to be related to consistent exposure to heat and humidity, making
vehicles in the South more susceptible to the airbag failures. But the agency also said its investigation is
ongoing, which means other factors could be involved – and that there could be even more recalls in the
near future.
In the advisory, NHTSA deputy administrator David Friedman said getting the recalled vehicles repaired quickly "is essential to personal safety."
OVDA and OPSA urges all member dealers to check their inventory to see if they have any of the recalled
vehicles in stock and take the appropriate steps to have the defect remedied before offering it for sale so
they can avoid any liability for injuries by unrepaired but recalled vehicles..
Dealers can check whether their vehicles have open recalls with NHTSA's recently unveiled VIN
lookup tool, available for free at www.safercar.gov/vinlookup.
The search tool will provide the details of any open recall, including instructions for getting the vehicle repaired by the manufacturer at no charge.
December 2014
DEALER Solutions 17
January 29, 2015
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INDUSTRY
SERVICES
ADVERTISING
Equipment Mart
1-800-822-9932
DEALER AUCTIONS–OREGON
ABS Auto Auctions Medford
800-378-0227 Ext 185
Portland Auto Auction (Manheim)
503-286-3000
Off I-5
Brasher’s Portland Auto Auction
800-300-3200
Off I-84
Cross Point NW Auto Auction
503-594-2800
Portland
Northwest Auto Auction
800-905-3901
Eugene
DEALER AUCTIONS–Northwest
ADESA Seattle
253-735-1600
Brasher’s Idaho AA
800-346-7938
Brasher’s Reno AA
775-828-2437
Brasher’s Sacramento AA
916-991-5555
Brasher’s San Jose AA
408-890-2990
DAA Northwest
509-244-4500
DAA Seattle
253-737-2200
National Powersport Auctions
888-292-5339 (Motorcycle)
Open Lane Auction (Internet)
866-969-0321
South Seattle Auto Auction
206-762-1600 Manheim
PUBLIC AUCTIONS
A-1 Auction Company LLC
541-472-0952
Auction Company of So Oregon
541-267-5361
Auction Sales Co, the Dalles
541-296-1012
Commercial Industrial Auctioneers
503-467-4846
BONDING AND INSURANCE
SERVICES
Hecht & Hecht Insurance
800-609-0979
Kelly Martin Insurance
503-625-2615
Shepard & Shepard Insurance
855-396-0488
Zurich –Portland
800-821-7803
Ext 6125
CAR RENTALS COMPANIES
Enterprise Rent-A-Car
503-692-8400
Management Systems
OVDA
503-399-9199
Frazer Computing DMS Systems
888-963-5369
Auto Manager
800-300-2808
503-810-1181
Skywerks.com (Versidata)
866-534-3194
F&I Central
866-219-0926
Finance Express
630-667-8765
FINANCING
Car Financial Services, Inc.
800-252-7411
Finance Express
640-667-8765
Fireside Bank
503-643-0494
People’s Credit Co. Inc
800-531-4420 ext. 202
Reliable Credit Association
503-462-3022
Vehicle Acceptance Corp.
1-800-380-3882
Western Funding, Inc
503-786-5911
FORMS
OVDA Forms
503-399-9199
DMV Secure Forms
503-399-9199
OADA Form Orders
1-877-541-2277
GUIDE BOOKS
Black Book
800-554-1026
Kelly Blue Book
800-854-0585
NADA Books
800-966-6232
Skywerks.com
866-534-3194
INSURANCE PRODUCTS
503-810-1181
Also see Bonding and Insurance
LEASING & FINANCE
Oregon Roads (Eugene)
1-800-944-0227
LEGAL SERVICES
Shawn Lindsay, Attorney, ‘Harris
Berne Christensen LLP’
503-596-2928 Lake Oswego
Prepaid Legal
503-585-4075
LIEN PROCESSING
Oregon Lien Service
503-233-3580
REPOSSESSING
American Lenders Service
503-978-0356
SERVICE CONTRACTS
Auto Services Co.
503-705-7597
503-810-1181
Zurich –
Portland 800-391-1732
Eugene 541-461-9160
Terrorist Watch List
Skywerks.com
866-534-3194
TRAINING
Buy Here Pay Here Conf.
713-290-8171
OVDA Dealer Education
503-399-9199 or
[email protected]
Have a special
service you want
listed in the
Services Page?
Call OVDA/OPSA
at 503-399-9199.
Free listings for
members.

December 2014 Issue

Transcription

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