Montana Automobile Dealers Association

Montana Automobile
Dealers Association
NOVEMBER 2015 NEWS BULLETIN
Montana
Automobile
Dec 31st Is
Last Chance to Save $$$$ by
Dealers
Association
Signing Up
with Montanawheelsforyou.com
The new MTADA-LEE ENTERPRISES partnership website
is now online statewide and we have EXTENDED the
initial discount pricing offer to December 31st which can
save you LOTS of $$. Please get hold of your Mini-Nickel
or Lee Enterprises representative and get signed up before
December 31st!
East Montana:
Zane Luhman 406-657-1228
Central Montana:
Clint Retz 406-447-4031
Western Montana:
Laurie Williams 406-523-5377
Montana
WHEELS FOR YOU
montanawheelsforyou.com
Find
sell
vehicle
auto
a car
your car
research
dealers
$
1000’s OF HOT DEALS ON WHEELS
FROM LOCAL DEALERS
Montanawheelsforyou.com was designed to
save Montana Dealers advertising costs and
help the MTADA budget at the same time!
Joe Billion
Montanawheelsforyou.com is FAR less
MTADA President
expensive than Cars.com and Autotrader.
com and has a better selection too! I would strongly suggest
that EVERY MONTANA dealer give this program a try for
at least 6 months. We are confident (and have dealership
proof) that this will generate sales leads for your dealership!
The idea for this new statewide shopping site grew out of
a discussion between our director Bruce, and some Helena
Independent Record staff, after Bruce became aware of a
similar statewide car shopping site in Utah. After going
home and examining the Utah-based site, Brian Lorber, the
Independent Record’s online products manager, pitched
the idea of a statewide PARTNERSHIP between Lee
Enterprises and the MTADA. “If we can make this work,
EVERYONE will make money” said Bruce, and I agree.
Our goal is to be the premier online marketplace for
automotive shopping in the state of Montana and cheaper
than Cars.com and Autotrader.com. However, we need
many dealers to participate if this is to happen.
• User-friendly
• Large vehicle photos
MTADA & Lee Enterprises believe that Montanans are
very locally driven, and that they PREFER to buy things
locally when they can if we make it easy. There have
• Compare multiple vehicles
• Contact participating dealers
Continued on PAGE 10
IN THIS ISSUE
FIND YOURS AT MONTANAWHEELSFORYOU.COM
Print
Online
iPad
Mobile
Car dealers interested in participating on the #1 local vehicle search platform, please call 406-657-1228.
NADA Update
p2
New Delta Dental Relationship
p2
Chairman’s Message: p3
Legal Update: GM Dealer Alert
p3
Drive Away Winter!
p4
Dealer’s Corner
p6
and more!
Montana Automobile Dealers Association • 501 North Sanders • Helena Montana • 406.442.1233
Montana Automobile Dealers Association
Montana Automobile
Dealers Association
CFPB Again Rejects FOIA Request to
Release Leaked Agency Documents
NADA UPDATE
In internal memos, CFPB ignored flaws
in methodology, acknowledged intent to
regulate through enforcement action
For the second time in four months, the Consumer
Financial Protection Bureau (CFPB) has quashed efforts
to make public a number of leaked agency documents
that undermine many of the CFPB’s long-running claims
that it is not attempting to regulate auto dealers in
circumvention of the Dodd-Frank Act.
The CFPB’s latest rejection came in response to an Oct. 8,
2015, Freedom of Information Act (FOIA) request, filed
by the National Automobile Dealers Association (NADA),
asking the CFPB to release internal documents, leaked to
American Banker, acknowledging that the agency intended
to regulate the auto finance market through enforcement
action, and showing that it eschewed evidence that its
methods for estimating disparate impact were deeply
flawed.
In July, NADA asked the CFPB to make publicly available
documents -- also leaked to American Banker -- in
which CFPB officials admitted in a private memo that
they intended to eliminate the ability
of dealers to offer discounted financing
Bill Underriner
rates to consumers, despite the Bureau’s
NADA Director
statutory prohibition against regulating
auto dealers, as well as numerous public pronouncement
s from Director Richard Cordray that the Bureau was not
—as both Republicans and Democrats in Congress have
worried—straying from its Congressional mandate.
The CFPB denied NADA’s July FOIA request three days
after it was filed. The rejection of NADA’s
latest request comes directly on the heels
of a series of Wall Street Journal articles
highlighting the significant shortcomings
in the CFPB’s process of identifying
minority borrowers. According
to The Wall Street Journal, the
Please stay involved
CFPB’s continued use of this flawed
and in touch.
methodology has resulted in nonBill Underriner
minority borrowers receiving settlement
NADA Director
funds that were specifically earmarked
406.255.2350
for minority borrowers.
Continued on PAGE 11
Delta Dental’s New MTADA Relationship
Delta Dental proudly welcomes Montana Automobile
Dealers Association’s (MTADA) selection as the
dental benefit of choice for Association members. We
understand your participation in the new MTADA dental
program is not required and you have many dental benefit
options available. As you compare employee dental
benefit programs, consider these advantages of the new
MTADA-sponsored Delta Dental plan:
■■ Strength in numbers – By participating in the MTADA
dental program you are not a single dealership or
employer, but a combined pool of purchasers. In
insurance and employee benefits strength in numbers
stabilizes your overall experience.
■■ Largest Dental Network in Montana – Delta Dental
offers the largest network of dentists in Montana
with two levels of savings through PPO and Premier
dentists. While Delta Dental
members enjoy the freedom
of choice to visit any dentist,
they experience savings
Contact Debbie Jean at
and more efficient use of their benefit dollars when
they utilize a Delta Dental PPO or Premier dentist in
Montana or nationwide.
■■ World-Class Service – Delta Dental provides timely and
accurate service to members, dentists, and employers.
From customer inquiries to enrollment updates,
benefit verification, and claim processing, Delta Dental
delivers.
Looking to increase employee satisfaction in your benefit
program even more? All individuals enrolling in the new
MTADA-sponsored Delta Dental plan effective January 1,
2016 receive waiver of the plan’s benefit waiting period.
Sign your dealership up today for the MTADA Delta
Dental program and allow your eligible employees to take
advantage of this special feature.
To learn more about the new MTADA Delta Dental
program, contact the MTADA office. Delta Dental looks
forward to our partnership with MTADA and we hope
you will join us for the ride. n
MTADA for more information!
2
NOVEMBER 2015 MTADA NEWS BULLETIN
Montana Automobile Dealers Association
CHAIRMAN’S MESSAGE: GRASSROOTS ADVOCACY—
GETTING INVOLVED MAKES A DIFFERENCE
The National Automobile Dealers Association was formed
in 1917 when a small group of auto dealers came to
Washington, D.C., and successfully lobbied Congress
against a proposed luxury tax on automobiles. And for
nearly 100 years, NADA has been advocating fiercely for
new-car dealers on Capitol Hill.
However, the work of NADA’s legislative and lobbying
staff cannot be done alone. The nation’s 16,500 dealerships
– which provided and supported more than 2.2 million
private-sector jobs totaling $144 billion in employee
compensation last year – need to engage and support
NADA’s grassroots efforts back home in congressional
districts across the country by building long-term
relationships with elected officials.
There are many members of Congress who do not
understand how an auto dealership operates, despite
purchasing vehicles for their families and their campaigns.
When elected officials learn and understand the retail-auto
industry, they become better informed about how their
decisions in Washington affect the ability of dealers to
invest and grow their businesses. And when future public
Montana Automobile
Dealers Association
policy issues arise, they can rely on
those relationships to consult with local
dealers.
Bill Fox
One of the most effective ways to build
2015 NADA Chairman
a relationship is to invite a member of
Congress to the dealership and meet with employees and
discuss NADA’s legislative priorities, such as the NADAbacked legislation, H.R. 1737, which preserves the financing
option for car buyers to receive discounted financing rates
on auto loans from the dealership. Currently, there are 156
House members (63 Democrats and 93 Republicans) who
support the bill, which is expected on the House floor in the
near future.
New Video: Dealer-Assisted Financing Benefits
Consumers
To better inform elected officials and opinion leaders about
the true economic value of dealer-assisted financing for
consumers, NADA has produced a new video with stories
of real car buyers who saved money by financing their
new-vehicle purchases through local dealerships. To view
Continued on PAGE 11
LEGAL UPDATE
GM DEALER ALERT!
As a GM dealer you may not be aware of GM’s Bulletin
of November 11, 2015 regarding your warranty parts
markup. If you have not seen it yet, you will soon. A
form entitled “Option C Enrollment Form” accompanies
the Bulletin. The dealer is asked to sign up for a threeyear term beginning on January 1, 2016 for repair orders
written beginning on that date.
As usual, the “devil is in the details.”
The enrollment form first contains an agreement that
the dealer agrees to comply with GM’s Service Policies
and Procedures Manual. That manual may well contain
provisions relating to audits and chargebacks that are
prohibited under Montana’s dealer statutes.
Next, the dealer agrees that to remain eligible for Option
C warranty labor reimbursement, the dealer must accept
a warranty parts markup rate of 40%. If the rate is above
40% the dealer agrees to a reduction to 40%.
NOVEMBER 2015 MTADA NEWS BULLETIN
Keep in mind that under Mont. Code
Ann §61-4-204(4) requires:
R. J. “Jim” Sewell, Jr.
“. . . the manufacturer shall compensate MTADA General Counsel
an authorized dealer for labor, parts, and
other expenses incurred by a dealer who performs work
to rectify the manufacturer’s product or warranty defect
or for delivery and preparation obligations at the same
rate and time the dealer charges to its retail customers for
nonwarranty work of a like kind. . .”
Long and short, this bulletin is an attempt by GM
to strong arm those dealers whose warranty parts
reimbursement markup rate is above 40% to accept
40% or run the risk of being moved to Option A on the
warranty labor rate which, on the surface would require an
application for a retail labor rate.
Len Bellavia of Bellavia Blatt & Crossett, PC, dealer
lawyers in Mineola, New York in a November 12, 2015
3
Montana Automobile Dealers Association
Montana Automobile
Dealers Association
Montana Auto Dealers Association
Congratulates Jim Peterson
Named Kalispell Chamber Businessman of the Year
Jim Peterson, owner of Valley Ford in Kalispell, was awarded 2015 businessman of the year at the Kalispell Chamber of
Commerce’s annual banquet on November 12, 2015.
“We are proud of Jim and his accomplishments,” says
Bruce Knudsen, executive vice president of MTADA.
“I don’t think many people realize how car dealers like
Jim play such an important role in their community
and are very generous to so many causes. Jim and
Valley Ford have given so much to the Flathead Valley
community.”
Valley Ford has been instrumental in hosting
community events such as Drive 4 Ur School and
Drive 4 Ur Community, which have raised much
needed money for the valley’s local high schools,
FVCC, and Shepherd’s Hand Dental Clinic. In the
short time since Valley Ford opened its doors in the
summer of 2011, Jim and Valley Ford have given
an enormous amount of money to the community,
including over $130,000 in donations to local groups
and a $10,000 pledge to the FVCC nursing school.
In addition, Jim is involved in a number of civic
groups that are driving growth in the Flathead Valley
and also helping those in greatest need. Jim is on the
boards of the Kalispell Chamber of Commerce, the
Montana Auto Dealers Association, and the Flathead
Valley 4-H foundation, a 3rd Degree Knights of
Columbus and parishioner of St. Charles Borromeo
Catholic Church. He is actively involved in the
Evergreen Chamber of Commerce, the Dirt Bags
Men’s Bible Group and is a lifetime member of VFWVeterans of Foreign Wars (Vietnam). He has served
on numerous other committees and automotive advisory
councils.
Jim and his wife, Debbie, moved to the Flathead Valley in
1991 with their four young children, Claire, Grace, Audrey
and Jimmy, seeking a more tranquil quality of life where
they could embrace the outdoors, particularly skiing in
Whitefish and showing horses in 4-H and local saddle clubs.
Now a grandfather of eight, Jim’s family has always been his
priority, and his business and work ethic have always been,
first and foremost, about taking care of his family. Having
worked in the car business for over 40 years, he is known for
always having an open door and a listening ear for friends
and employees alike. He loves helping people and taking
care of his customers.
4
Jim deeply values his faith. One of his favorite sayings
comes from his dad: “save a little cream for the next guy.”
This is the way Jim thinks about his business and about
others around him. He throws himself into his business and
his life with his whole heart, but he always keeps his success
in perspective, counts his blessings, and works hard to make
sure those around him have opportunities to share in the
triumphs.
The entire staff of the MTADA wishes Jim our heartiest
congratulations for showing the highest level of integrity
and generosity, and in being named 2015 Businessman of
the Year. n
NOVEMBER 2015 MTADA NEWS BULLETIN
Montana Automobile Dealers Association
Drive Away the Winter
WHAT’S AT STAKE
Winter driving is hazardous at the best of times, but
slippery roads and reduced traction can make it deadly.
With winter storms bearing down on you, it’s definitely
time to think about preparing for winter driving. In this
Safety Talk, we’ll learn about common winter driving
hazards, how to ensure a vehicle is ready for cold weather,
and tips for driving on icy roads.
Next, have a winter survival
kit on hand. You’ll be glad you
had it in the vehicle should you
have to spend the night on the
side of the road. Some things
you may want to include:
What Can Go Wrong
Driving on slick roads can increase stopping distances and
the chance of losing control of your vehicle. Is it any wonder
that there are more than 200,000 crashes on average each
year due to snowy road conditions?
■■ road flares
Besides icy or snowy roads, here are a few other things to
take into consideration when driving during the winter:
■■ Black ice happens when transparent ice covers the road.
Your vehicle can slip out of control suddenly because
the ice is very difficult to see.
■■ Blowing snow causes limited visibility. In this case it
can be very difficult to see the road at all.
■■ Devil’s strip is the narrow strip of ice and snow
which divide lanes of traffic. It can affect traction in
unexpected ways.
■■ Slush grab happens when the vehicle’s tires track the
slush on the shoulder of the road or in the ruts of the
road during a lane change.
Always be mindful of the road conditions, drive slowly
and steadily, and keep as far away from snow removal
equipment as possible.
How to Protect Yourself
While you can’t control the weather, there are actions you
can take to be prepared. First, make sure that your vehicle is
maintained and equipped for cold weather. Some items to
check include:
■■ radiator anti-freeze levels
■■ windshield washer fluid
■■ tire pressure
■■ chains
■■ heating and defrosting systems
NOVEMBER 2015 MTADA NEWS BULLETIN
Montana Automobile
Dealers
Association
Courtesy
of
SafetySmart.com
■■ a shovel
■■ sand
■■ extra warm clothing and
footwear
■■ blanket
■■ emergency food
■■ matches and a survival
candle in a can
You should also keep road maps, an ice scraper, a snow
brush, a flashlight, and first aid kit in the vehicle. Finally,
driving in winter requires patience. Keep the following in
mind:
■■ When you first start out, drive slowly and get the feel of
the road. Before leaving the parking lot, tap your brakes
at a slow speed to see how your vehicle reacts.
■■ Stopping distances on ice or snow may increase from
four to 10 times normal stopping distances, so stay four
to six seconds behind vehicles you are following. Take it
slow and easy.
■■ Reduce your speed well before a curve and turn slowly.
If you enter a corner or curve at normal highway speed,
you may lose control of your vehicle.
■■ Use your headlights’ low beams during a storm because
high beams reflect off falling snow.
■■ Downshift cautiously and conservatively so your drive
tires don’t break traction.
■■ Wearing your seatbelt is important at all times, but the
increased risk of a mishap on icy roads makes it even
more crucial.
FINAL WORD
Driving on slick and snowy roads offers plenty of
challenges. Be prepared to meet them safely. Use the tips in
this Safety Talk to prepare for winter driving. n
5
Montana Automobile Dealers Association
Montana Automobile
Dealers Association
Great News!
The Workers Compensation program renewal was once again
a tremendous success! Over the last 19 years the program has
continued to remain competitive and has had a history of great
retention. There are currently 71 MTADA member dealers insured
through PayneWest. The retention this year was 98.6%! The MTADA
Member Dealers, insured with PayneWest Insurance, experienced
premium savings in the amount of $157,606 from last year! This great outcome is attributed to the continuous safety efforts of
the member dealers along with PayneWest Insurance, the Montana
State Fund and the Montana Auto Dealers Association. The group has
seen significant results in driving down rates with the implementation
of the PayneWest safety program seven years ago. The commitment
of the dealers that have utilized the tools and made safety a priority
is the reason this has been such a success. This has led to improved
safety culture in your dealerships and countless savings in other areas
of your business. Most importantly, it has provided a safer working
environment and aided in sending many more of your employees and
friends home safe.
Kevin
McCutcheon
(406) 457-2111
[email protected]
Sean McCutcheon
(406) 457-2136
[email protected]
Our team at PayneWest, the Montana State Fund and the Montana
Auto Dealers Association want to sincerely thank you for your business
and congratulate you on your success. Keep up the great work and
please let us know if you need any assistance or have any questions. n Pat McCutcheon
(406) 457-2104
[email protected]
OSHA Audit Information
Below are the 6 things that the majority of the time OSHA asks for paperwork wise in the course of an audit.
1. Site Specific Safety Program
2. Written Hazardous Communication Program
3. Last 3 years of your OSHA 300 logs (last year in the case of auto dealers)
4. Last 6 months of employee safety meetings (not safety committee meeting minutes)
5. Forklift certifications and daily walk around inspections
6. SDS (Safety Data Sheets) formally known as MSDS or material safety data sheets.
A good reminder of paperwork safety items to have on hand in the event of an OSHA audit as well as:
• Annual lift inspection documentation
• Lift safety training documentation (employee signatures that you trained your employees on the “do’s and don’ts”
around your auto lifts). n
6
NOVEMBER 2015 MTADA NEWS BULLETIN
Montana Automobile Dealers Association
Montana Automobile
Dealers Association
DEALERS CORNER
Eisinger Helps Glacier Conservancy
F
or the sixth year in a row, Eisinger Automotive Group in
Kalispell has provided financial support to Glacier National Park through the Glacier National Park Conservancy. While federal funding provides for Glacier’s day-to-day
operations, private support from businesses and individuals is necessary for many of the vital projects and programs
throughout the park.
In the 2015 season, the auto dealer has supported the
Conservancy with a $10,000 cash donation, provided a
vehicle for Conservancy staff use, which they’ve done every
year for six years, and coordinated the donation of two
vehicles for Glacier National Park’s Backcountry Volunteer
program.
“When we heard that the backcountry volunteers were in
need of vehicles to carry out their duties this summer, we
were excited to help,” said Ben Eisinger, general manager of
Eisinger Automotive Group. “Their work is so important
to supporting the backcountry rangers who have over one
million acres to cover each day.”
There are 29
backcountry
volunteers in Glacier
National Park this
summer who have
donated more than 3,800 hours of their time. The donated
vehicles have thus far patrolled 2,714 miles in the park’s
backcountry and contacted nearly 7,000 visitors. The
volunteers have assisted with a variety of critical projects
this season including the removal of a radio tower on
Apgar Mountain, joint river patrols with the Flathead
National Forest and collecting and recording data for the
Huckleberry Phenology Project conducted by the U.S.
Geological Survey.
“This partnership is a great example of leveraging private
resources to the greater benefit of Glacier National Park,”
Preiss said. “We thank Eisinger Automotive Group for their
ongoing support and look forward to continuing to build
partnerships like this throughout the Flathead Valley.” n
MONTANA-BASED AWARD WINNING DESIGN & MARKETING
C
CINCH
D E S I G N
& C O M M U N I C AT I O N S
Showroom Signage & Interior Displays
Event & Tradeshow Promotion n Direct Mail
Customer Marketing & Collateral
Advertising n Branding
www.cinchdesign.com n [email protected] n 406.422.4838
NOVEMBER 2015 MTADA NEWS BULLETIN
7
Montana Automobile Dealers Association
Montana Automobile
Dealers Association
TIME AND ALLY FINANCIAL HONOR HAVRE DEALER
Craig Tilleman Wins National Recognition for Community Service and Industry
Accomplishments at NADA Convention
(New York, NY, November 16, 2015) – The nomination of
former NFL player.
Craig Tilleman, dealer at Tilleman Motor Company, a Buick, “Dad started the dealership in 1977
Cadillac, Chevrolet and GMC dealer in Havre, Montana,
in a small town 20 miles from our
for the 2016 TIME Dealer of the Year award was announced
current store,” Tilleman said. “He
today by TIME.
was either going to sell the dealership
Tilleman is one of a select group of 50 dealer nominees from
across the country who will be honored at the 99th annual
National Automobile Dealers Association (NADA) Convention & Exposition in Las Vegas, Nevada, on April 1, 2016. The
announcement of this year’s nominees was made by Meredith Long, publisher, TIME, and Tim Russi, president of Auto
Finance for Ally Financial.
or turn it over to one of his three
children. When he asked me to come
back and take over, I did.” Today, Tilleman owns the dealership with his
father and has added another store,
Tilleman Motor Company Hi-Line
Dodge, also in Havre.
“The TIME Dealer of the Year award nominees are business
leaders and pillars of their communities, who have each given
generously to support important charitable causes,” said Russi. “Ally is proud to honor these dealers and to recognize their
commitment to making a difference.”
Tilleman is committed to the Montana Automobile Dealers Association
and has worked diligently to provide
better benefits to dealerships throughout the state, serving
as president of the organization and holding leadership roles
in the group’s insurance trust. “We implemented a cost-plus
basis reimbursement this year for our healthcare, allowing us
to lower rates next year,” Tilleman said. “We are also changing
the way healthcare for dealers will be handled in Montana –
for the better.”
In its fifth year as exclusive sponsor, Ally will recognize dealer
nominees and their community efforts by contributing
$1,000 to each nominee’s 501(c)3 charity of choice. Nominees will also be recognized on AllyDealerHeroes.com, which
highlights the philanthropic contributions and achievements
of TIME Dealer of the Year nominees.
The TIME Dealer of the Year award is one of the automobile
industry’s most prestigious and highly coveted honors. Recipients are among the nation’s most successful auto dealers who
also demonstrate a long-standing commitment to community
service. Tilleman, 46, was chosen to represent the Montana
Automobile Dealers Association in the national competition
– one of only 50 auto dealers from 16,000 nationwide – nominated for the 47th annual award. The award is sponsored by
TIME in association with Ally Financial, and in cooperation
with NADA. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan will
select one finalist from each of the four NADA regions and one
national Dealer of the Year.
“The most rewarding aspect of my retail automotive career
is working with such a great group of people every day,”
nominee Tilleman said. “My team is honest, hardworking
and I am so proud of them on and off of the clock. It is also
a wonderful feeling to know that they are happy to be part of
our team.”
A graduate of Havre High School in Havre, Tilleman earned
a B.S. in chemical engineering from Atlanta’s Georgia Institute of Technology, where he graduated magna cum laude.
He left Montana and became an engineer before returning in
1998 to help run the dealership founded by his father, Mike, a
8
As a second-generation dealer, Tilleman is equally as devoted
to helping people in his community and actively supports the
United Way, 4-H and local schools and universities. He has
served as president of the Northern Lights Athletic Scholarship Foundation
(NLASF) at Montana State University (MSU)-Northern from
2012 to 2015, which provides scholarships to student athletes,
equipment upgrades, as well as training and salary subsidization for coaches. His father was a founding member of the
organization and each year the group hosts a celebrity pheasant hunt, the Legends for Lights Pheasant Jamboree, bringing
together sports stars for the four-day event. “The celebrity
pheasant hunt is our signature event, and along with two
other events, we raise more than $150,000 each year for the
school,” Tilleman said. “I am delighted to have helped continue the success of the foundation that my father started.”
A member of the Havre Lions Club for 14 years and vice
president since 2012, Tilleman has also donated his time to
the Havre Chamber of Commerce’s Leadership High School,
a program that fosters young leaders. “For ten years, I
taught a class on life skills,” he said.
Tilleman was nominated for the TIME Dealer of the Year
award by Bruce Knudsen, executive vice president of the
Montana Automobile Dealers Association. He has three
children. n
NOVEMBER 2015 MTADA NEWS BULLETIN
Montana Automobile Dealers Association
NADA/MTADA Financial Class a Success!
Montana Automobile
Dealers Association
MTADA held its first dealership training class along with
NADA Academy in Helena on November 3rd and 4th at the
Best Western Great Northern Hotel in Helena, Montana.
The training was titled, Through a Dealer’s Eyes – What’s
Important on the Financial Statement, and was attended
by 25 participants from various dealerships from across the
state.
Here are some of the comments by the various attendee’s:
“Instructor did a wonderful job. Liked all the materials
presented. Made it interesting and easy to understand.”
—Jerin Borrego, Helena Motors
“Thank you for your effort to get this valuable class to us!
You can count on someone from Rehbein Ford coming
to any classes that are put on by the MTADA, we want to
support this type of training in our area.”
—Todd Logan, Rehbein Ford
“Having the NADA financial management class right
here in Montana was a great opportunity to refresh my
skills and bring along my office manager for training.
The first day back in the dealership, she came to me
with a pile of printouts showing me the answers to all
the questions she’d written down in class. It was a great
learning experience.” —Whitney Olson, Bison Ford
“What a great class. A wonderful opportunity! I learned
soooo much and had a great time doing so. Thank You!”
—Andy Newton, Newton Motors:
“It was a great class, my mind is still numb!”
—Trina Wade, Karl Tyler Chevrolet:
“Great, very beneficial. The best class I have taken in two
years.” —Scott Cichosz, Hardin Chevrolet
“It was a cool experience learning about best practices on
the financial statement with a group of future dealers. I
came away with a lot of new ideas that I can take back to our
dealership.”
—Erik Kaltschmidt, Don “K” Whitefish
Thank you to Tom Carney of NADA Academy for coming
to Montana and leading a great group of attendees. Stay
tuned for upcoming classes. n
NOVEMBER 2015 MTADA NEWS BULLETIN
9
Montana Automobile Dealers Association
Montana Automobile
Dealers Association
Montanawheelsforyou.com
Title Seminars
CONTINUED FROM PAGE 1
Good news, Title Seminars will be taking
place this March. MTADA and the DMV have
scheduled four seminars that will be taking
place: March 8th Missoula, March 9th Great
Falls, March 15th Bozeman and March 16th in
Billings. If you have any questions or topics
you would like to see discussed, please let us
know. You can e-mail your topics to Dan
Dallas at [email protected] or call MTADA
at 406-442-1233 or on Dan’s cell phone at
406-431-5916. See you all in March! n
been two sites operating on this same platform in Missoula and
Billings previously, and they have been very successful and generated
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already a PROVEN product.
We all know that online advertising is the way of the future, and this
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newspapers around our state!
Until now, consumers have had no option other than visiting each
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checking on Autotrader.com and Cars.com with a local searches of 50
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of cost! This product will provide a cheaper option and drive
consumers to local auto dealers, because newspaper classifieds are an
established source for car shoppers. What montanawheelsforyou.com
does is put all of our Montana used and new vehicles in one place
and that is convenient for customers wishing to buy in state!
Don’t miss out on this opportunity to get in early at rock bottom
prices.
There are no long term contracts. Sign up before December 31st
to qualify for the special MTADA discounted pricing. Move your
advertising money from sources and give Montanawheelsforyou.com
a try for 6 or 12 months. If the product proves out like it has done
in Missoula and Billings, you will be pleased!
Your MTADA board is always striving to save our members money,
and protect our business! Thanks for being a member! n
Legal Update
CONTINUED FROM PAGE 3
open letter opines that in practice GM rarely moves dealers
to Option A because in many cases the result of the labor rate
application is a higher labor rate than GM was paying to begin
with. Len also feels this initiative by GM is more likely than not
to backfire as dealer focus on the issue will cause them to realize
that they can obtain higher warranty rates and markups on parts
and labor.
Each dealer must analyze the matter for himself or herself. It
seems to me that in most cases signing up for Option C would be
of no benefit to the dealer as the status quo would be maintained
for those not enrolling in “Option C” and if push came to shove
GM may argue that the dealer waived Montana’s statutory
protections by signing up for Option C. n
10
Save The Date: Next
Generation Dealers
Meeting
Save the date, the third Next Generation
Dealers Meeting will be taking place in Great
Falls, MT on Monday February 22nd and
Tuesday, February 23rd. The meeting will take
place at the Hilton Garden Inn in Great Falls.
We will meet for dinner at the hotel around
5:30 pm and head to a yet to be determined
location for dinner and fun. The meeting
will take place on Tuesday, February 23rd
beginning at 8:00 am and ending sometime
around 3:00 pm so you all can get home. A
room block is set up for the night of the 22nd.
Please call the Hilton Garden Inn at 406-4521000 and ask for the Montana Auto Dealers
Association room block.
Any questions please contact us any time
at 406-442-1233 or on Bruce’s cell at 406461-7680 and Dan’s cell at 406-431-5916.
We will see you in Great Falls! n
NOVEMBER 2015 MTADA NEWS BULLETIN
Montana Automobile Dealers Association
Montana Automobile
NADA UPDATE: CFPB Again Rejects
FOIA Request to Release Leaked
Agency Documents
CONTINUED FROM PAGE 2
“CFPB actions in the auto finance market are costing
consumers money, and may very well be hurting the very
people the agency is trying to help,” said NADA President
Peter Welch. “Consumers deserve a transparent process that
will allow their concerns to be heard and considered before
their rights are taken away by an overzealous Washington
regulator.”
Concerns about the manner in which the CFPB has
attempted to influence the auto finance market prompted
the House Financial Services Committee to approve H.R.
1737, a bill to provide accountability and transparency
to that process. The committee approved the bill with a
strong bipartisan vote of 47-10, and currently 102 House
Republicans and 65 House Democrats have cosponsored
the bill.
NADA Increases 2015 Sales Forecast to
17.3 Million New Light Vehicles
Sales above 18.1 million this month are hard to lament,
since we seem headed toward a record-breaking year.
Despite mixed signals on economic activity, light-duty
vehicle sales continue to set new highs. Sales of light trucks
outpaced cars 10.4 million to 7.8 million, respectively,
and the average transaction price rose to $33,201. But
incentives—at $3,100-plus—also were up, compared to last
October and effectively unchanged compared to September.
Still, there are plenty of reasons to be happy, so our outlook
for 2015 is revised up slightly to 17.3 million, based on
rising incentives and continued strong demand. n
Dealers Association
the video with your elected officials, visit www.nada.org/
autofinance.
New Brochure: Invite a Member
of Congress to the Dealership
To assist dealers in building these important
relationships, NADA published the brochure, “3 Easy
Steps to Making the Grassroots Connection,” which
provides quick and easy instructions on how to get
started. Back in August, I hosted Congressman John
Katko (R-N.Y.) at my Toyota dealership in Auburn, N.Y.,
for a one-hour tour and meeting with my employees, and
I plan to regularly engage with Congressman Katko in the
following months.
One of the best times to schedule a dealership visit is
during congressional recess breaks when members of
Congress are working in their home districts and meeting
with constituents. For the remainder of 2015, there are
three more recesses scheduled, with additional recess
breaks planned in 2016:
■■ Nov. 9-13, 2015 (House in recess);
■■ Nov. 23-27, 2015 (House and Senate in recess); and
■■ Dec. 21-31, 2015 (House and Senate in recess).
For more information about inviting a member of
Congress to your dealership, contact Patrick Calpin,
NADA director of grassroots advocacy, at 202.547.5500
or [email protected] or visit www.nada.org/grassroots.
Patrick can personally assist and connect you with your
legislators along with scheduling and coordinating the
visit. He can also help ensure that you are prepared with
talking points and copies of NADA issue sheets to share
DMV INFO
Numerous requests regarding non-repairable vehicles and the corresponding title work have been brought to our
attention. The motor vehicle division researched these requests and is providing the following guidelines.
Currently there are three title documents, issued in other jurisdictions, that the State of Montana does not issue a title
or registration from:
■■ Certificate of Destruction (Florida) = shown as either Dismantled or Junk in the National Motor Vehicle Titling
Information System (NMVTIS)
■■ Non-repairable Vehicle Title (Texas) = indicated as junk in NMVTIS
■■ Scrap Certificate (Michigan) = indicated as junk in NMVTIS
For additional information on reviewing vehicle information through NMVTIS, please visit NMVTIS.gov.
If you have additional questions for the motor vehicle division, regarding this information, please email dojdealerinfo@
mt.gov n
NOVEMBER 2015 MTADA NEWS BULLETIN
11
Montana Automobile Dealers Association
Montana Automobile
Dealers Association
Williams Amendment
Limiting Coverage of
Rental Car Regulations
Passes U.S. House
The U.S. House of Representatives late last
night passed by voice vote an amendment
offered by Rep. Roger Williams (R-Texas)
that would limit coverage of new
regulations on recall rental cars to rental car
companies only. The Williams amendment
will now be considered by a joint HouseSenate conference committee, and a final
vote is expected on the legislation by
November 20.
ess
ons,
to an
ing
e
PIN
V
s
ly,
cards
nd
s
EMV: What Your Business
Needs to Know
EMV (which is an acronym for Europay,
MasterCard® and Visa®) is a more
secure way of accepting payments.
A “smart card” and an EMV-enabled
point of sale solution are required to
leverage the technology and security
capabilities inherent in EMV.
Smart cards contain a “chip” capable
of more sophisticated security than
traditional magnetic stripe cards,
keeping cardholders safer and
combatting counterfeiting and fraud
by assigning dynamic values for each
transaction. Since fraudsters cannot
skim or copy chip card data, EMV
technology helps reduce fraud risks for
your
business and your customers.
Name
LET’S TALK:
THE
U.S.Number
IS TRANSITIONING TO EMV
Phone
ity
to
ands*.
a
EMV
that
“NADA thanks dealers who contacted
their members of Congress in support of
the Williams amendment, and NADA will
work to ensure the most favorable outcome
on this issue throughout the conference
committee process,” said NADA President
Peter Welch.
During
Email the transition to EMV, many
financial institutions will issue EMV
cards that also contain a magnetic
stripe. A customer can still swipe an
EMV card using the magnetic stripe,
but that does not take advantage of
added security technology embedded
on the card’s chip and is not considered
to be an EMV transaction.
The process for an EMV transaction
is different than a magnetic swipe
transaction. With EMV transactions,
the cardholder inserts the card into an
EMV terminal, where it stays during
the transaction. In some cases the
customer will be prompted for a PIN
(this is very much like a debit
transaction). For this reason, EMV
cards are commonly referred to as
“Chip and PIN” cards. Alternatively,
some cards may still require a
signature instead of a PIN. EMV cards
can also be referred to as “Chip and
Signature” in this instance.
The Williams amendment to the House
transportation bill (H.R. 22) refines an
overly broad Senate measure requiring
rental car companies to ground vehicles
under recall, even for minor compliance
matters with a negligible impact on safety.
“NADA will work to keep the Williams
amendment in conference because the
Senate bill threatens to regulate out of
existence dealer loaners, and triggers new
fines, government inspections and recordkeeping requirements,” Welch added.
During an EMV transaction, the
card never leaves the cardholder’s
hand. You present the payment
terminal to your customer – even
in restaurant environments.
LET’S TALK:
ACTION REQUIRED!
Email
Name
Source: NADA Legislative Affairs
Phone Number
You need to be aware of the liability
shift currently scheduled to go into
effect on October 1, 2015, a date
determined by the credit card brands*.
That means, by this date, if your
business accepts and processes a
counterfeit transaction on a non-EMV
enabled terminal, the liability for that
transaction is yours, not the card
issuer's. There is no fine associated
with non-acceptance of EMV cards,
ed
ds,
12
NOVEMBER 2015 MTADA NEWS BULLETIN
Montana Automobile Dealers Association
Montana Automobile
Dealers Association
Bipartisan CFPB Transparency Bill Passes House
Overwhelmingly
Congress Rejects CFPB’s Attempt to Eliminate
Dealer Discounts in the Showroom
Democrats and Republicans joined forces in the U.S. House
of Representatives on Wednesday to overwhelmingly pass
legislation to protect consumers by bringing transparency
and accountability to the Consumer Financial Protection
Bureau’s (CFPB) regulation of the auto finance market.
H.R. 1737, the “Reforming CFPB Indirect Auto Financing
Guidance Act,” introduced by Reps. Frank Guinta (R-N.H.)
and Ed Perlmutter (D-Colo.), passed on a 332-96 vote. 244
Republicans and 88 Democrats voted for the bill.
The Guinta-Perlmutter bill requires the Consumer Financial
Protection Bureau (CFPB) to withdraw the flawed guidance
that attempts to eliminate a dealer’s ability to discount
auto financing for consumers. The bill also requires the
minimal safeguards the agency failed to follow, such as public
participation and transparency. Nothing in the bill would
restrict the CFPB’s ability to enforce fair credit laws in auto
financing.
“The CFPB is clearly trying to eliminate a consumer’s
ability to receive a discount on credit in the showroom. It is
reasonable for Congress to ask for minimal due process to
protect consumers,” said NADA president Peter K. Welch.
Welch praised Congressman Guinta and Perlmutter for
their leadership. “The CFPB’s action will raise credit costs
for consumers. We commend Congressmen Guinta and
Perlmutter for working on a bipartisan basis to protect car
buyers.”
Welch also again urged the CFPB to embrace the fair credit
compliance program proposed by NADA, the National
Association of Minority Automobile Dealers (NAMAD), and
the American International Automobile Dealers Association
(AIADA), which allows a dealer to discount credit rates for
consumers when there is a legitimate business reason for
doing so that is unrelated to the consumer’s background.
The NADA/NAMAD/AIADA Fair Credit Compliance
Program is based on a platform developed in 2007 consent
orders by the Civil Rights Division of the U.S. Department
of Justice. Many dealerships have adopted this program,
and well-respected compliance attorneys have reviewed and
approve of this approach.
“The Department of Justice has already developed a way to
address fair credit risk in auto financing while preserving
competition,” Welch said. “It’s a viable, common-sense
solution, and the government should preserve the benefits
of a competitive auto finance market that benefits all
consumers.” n
Snow
Rakes
Montana Automobile
Dealersthe
Association
Before
snow starts to fly, stock up on Snow Rakes.
These Snow Rakes are perfect for snow removal and
will not scratch or damage your inventory.
Only $23 plus Shipping & Handling
Contact Dan Dallas, Field Services Director, at 406-442-1233
NOVEMBER 2015 MTADA NEWS BULLETIN
13
SAVE THE DATE!
Montana Automobile Dealers Association
Montana Automobile
Dealers Association
102nd MTADA
Annual Convention
AUGUST 12th–14th, 2016
Crowne Plaza Hotel • Billings, Montana
Take Note Families: This
This is
is the
the also
also the
the first
first weekend
weekend of the
MontanaFair
MontanaFair in
in Billings.
Billings. More
More information
information at
at
www.montanafair.com.
www.montanafair.com.
14
NOVEMBER 2015 MTADA NEWS BULLETIN
Montana Automobile Dealers Association
Montana Automobile
Dealers Association
ANNOUNCING
TEAM ONE MARKETING
&
GEORGE ANGUS
F & I TRAINING
IS COMING TO
BOZEMAN, MONTANA
JANUARY 14th & 15th, 2016
→ Team One Groups training and processes produced almost all
of the top performers with 89% of the country’s top 100.
→ Montana dealers who moved from the “four column menu” to
“Team One options menu” have had an average increase of
over 30% in “Per Retail Unit Dollars”.
→ Faster delivery time, compliant and consumer friendly coupled
with increased revenue is why dealers are moving to
“Team One approach”.
Come Find Out Why
To register simply send us the registration form. For more information contact us
at 406-522-9071 or email [email protected].
NOVEMBER 2015 MTADA NEWS BULLETIN
15
Montana Automobile Dealers Association
Montana Automobile
Dealers Association
Maximizing Sales and F&I Online
By Demetrios Lahiri
More than 75% of consumers look at a dealership’s
website prior to purchasing and financing a vehicle. Less
than 20% will purchase and finance from the dealership
site they first looked at.
In order to maximize sales and F&I profits online, it is best
to have an attractive and inviting website. In addition, it is
essential to have a sales process that allows a customer
to easily navigate his/her purchase from start to finish
without having to ever go to the dealership, if that is
his/her choice.
Some of the most successful internet dealerships in the
country start with an attractive website. The site should
be bright and easy to navigate. Multiple photographs that
are clear and detailed should be present on every car in
stock. The best retailers have each vehicle detailed and
photographed as soon as it comes on to their lot, prior
to placing it in the physical inventory. If the vehicle is
pre-owned, this should be done prior to any mechanical
reconditioning. This is important so the vehicle is available
for viewing within 24 hours, as opposed to days or even
a week or more sitting on the lot, and decreasing in value.
Having a live web-chat, or at least a live phone number,
is a must for those who would rather move to a more
interactive buying experience. The old-school thought of,
“We just need to get them in the door,” must be left at
the door, if we want to attract and sell the savvier 21st
century buyer. Some will still come to the dealership,
but it may be just to take delivery, as the purchase was
completed online.
graphs, etc., an informative, full-disclosure presentation
can take place via the web and phone. Then all electronic
documents can be sent to the customer so that he/she
may complete the purchase and financing options, online,
rather than having to overnight traditional ink on paper
documents back and forth. The customer may then have
their vehicle shipped to them for delivery, or they may
coordinate an in-dealership delivery for the car that they
just purchased.
It is important that the development company that you are
working with has the training, development, and products
that you need to operate in this new environment.
The online way of doing business is a shift from the past.
However, the top internet dealers have adopted this mind
set and are successfully maximizing sales and F&I with
their customers. They are winning over customers from
dealerships who are unable or unwilling to adapt to this
new model.
Demetrios Lahiri is the National Vice President of
Sales for American Financial & Automotive Services,
Inc. Demetrios can be reached at 800.967.3633 or at
[email protected].
If the customer selects a vehicle, negotiates, and closes
on a price, remotely, then the transition to F&I should
also be done at that time, remotely. With full electronic
menu options, and electronic vehicle service graphs, GAP
MasterTech Vehicle Service Contracts • Automotive Training Academy • Compliance Programs
GAP • Ancillary Products • Credit Insurance • Panoptic® Insurance
www.AFASinc.com • 800.967.3633
16
NOVEMBER 2015 MTADA NEWS BULLETIN
Montana Automobile Dealers Association
Montana Automobile
Dealers Association
2015 MTADA Board of Directors
PRESIDENT
PRESIDENT-ELECT
VICE PRESIDENT
Joe Billion
Billion Auto Group
Bozeman
406-582-7777
Whitney Olson
Bison Motor Co
Great Falls
406-727-2552
Chuck Notbohm
Notbohm Motors
Miles City
406-234-4480
CHAIRMAN
NADA DIRECTOR
DEAC CHAIRMAN
Toby Hubbard
University Motors
Missoula
406-721-4900
Bill Underriner
Underriner Motors
Billings
406-255-2350
Don Kaltschmidt
Don “K” Chevrolet Subaru
Chrysler Dodge Jeep Ram
Whitefish
406-862-2571
EXEC. VICE
PRESIDENT
DIRECTORS
Chuck Notbohm
Notbohm Motors
Miles City
406-234-4480
Bruce Knudsen
MTADA
Helena
406-442-1233
cell: 406-461-7680
Jim Peterson
Valley Ford
Kalispell
406-755-3673
Joe Billion
Billion Auto Group
Bozeman
406-582-7777
Tony Pierce
Snowy Mountain Motors
Lewistown
406-538-4014
NOVEMBER 2015 MTADA NEWS BULLETIN
Whitney Olson
Bison Motor Co
Great Falls
406-727-2552
Toby Hubbard
University Motors
Missoula
406-721-4900
17