Nov-Dec 2015 Showroom Draft.pub

November/December 2016
Volume 34, Edition 63
THE SHOWROOM
Wishing You A
Merry Christmas
And
A Prosperous
New Year!
INSIDE THIS ISSUE
NADA Director’s Report
3
Environmental Update
5
MDAI
11
Law Notes
12
Money Matters
17
ITDA
18
PAGE 2
THE SHOWROOM
NOVEMBER/DECEMBER
NADA DIRECTOR’S REPORT
PAGE 3
David L. Cox
Hare Chevrolet
Noblesville
NEW VIDEO: CONSUMERS BENEFIT WHEN
DEALERS DISCOUNT RATES
Today, the National Automobile Dealers Association released a new video highlighting how
dealers can discount interest rates on loans for new cars and trucks -- and how these dealer discounts benefit consumers by lowering the cost of loans.
“Dealers frequently offer better financing rates than banks … but some government regulators
are pushing a proposal to eliminate the dealers’ ability to discount those rates, pressuring banks
to prevent dealers from discounting rates for their customers by making it difficult or impossible
to discount the compensation they receive. This would give consumers fewer choices, limit competition and according to the Wall Street Journal these policies could raise the cost of a four-year
car loan for some consumers by nearly $600,” the video states. “That’s not what Washington is
supposed to do.”
The release of the video coincides with an effort in the U.S. House of Representatives on H.R.
1737, a bill that would repeal the flawed auto lending guidance issued by the Consumer Financial Protection Bureau (CFPB) in March 2013, which seeks to prevent dealer discounts. The bill
would also bring much-needed transparency and accountability to the CFPB's regulatory efforts.
“Consumers benefit from today’s auto financing market. Dealers and banks compete on financing with dealers discounting rates for consumers and that competition drives prices down helping consumers everywhere,” the video says.
NADA encourages dealers and automotive trade association executives to use the video in their
efforts to educate policymakers and the general public, through website posts, social media promotion, and airing it in other venues. ◊
PAGE 4
THE SHOWROOM
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NOVEMBER/DECEMBER
PAGE 5
ENVIRONMENTAL UPDATE
Managing Your Used
Tires in Indiana
So when it comes to storage keep the following in mind:
•
•
By: Zach Pucillo
I received a phone call the other day
about the management of used tires at
a dealership. I figured if one dealership
has this type of question, then several
others might like to hear about the
proper way to dispose of tires in the
state of Indiana.
There are some automotive dealers
that simply trust the guy that comes
around and takes the tires. You pay
him a few bucks per tire and he takes
them off your hands. No paperwork is
exchanged and the hauler doesn’t state
what he is going to do with them, but
you assume he is disposing of them
properly, right? Ah, the old phrase “out
of sight, out of mind” comes back to me.
Is this the right practice?
What if this hauler drives a few miles
down the road and then just throws
the tires into an empty field?
•
•
•
•
•
Storage
Let’s talk about storage first. When tires
are improperly stockpiled or illegally
dumped, they can trap rainwater and
become breeding grounds for diseasecarrying mosquitoes and rodents. Another problem with used tire storage
piles is that they may present a fire hazard and are extremely difficult to extinguish. When tires burn, they release
toxic gases into the air and leave behind a hazardous oily residue that will
produce an unsightly stain and may
possibly pollute nearby water sources.
The storage area can be no larger
than 500 square feet.
Stack tires in an approved location so
as not to create a fire hazard.
Stack tires no higher than two feet
from the ceiling and do not block any
exit from the building.
Stack tires no higher than twenty feet
when stacking outside (best practice
is to stack no higher than six feet for
safety).
Cover the tires or stack them in a way
to prevent them from catching rain
water.
The location of the tire pile must not
constitute a hazard to adjacent buildings or property.
You cannot accumulate more than
1,000 tires if they are to be stored
outside.
Selling of New Tires
If you are a facility that sells new tires to
the public then you will need to do the
following:
•
What if the hauler takes those tires and
resells them back to another consumer?
It is legal to sell used tires in the state of
Indiana but I would not recommend
this practice. This is a tire that your
trusted service technicians have
deemed not safe for the road. If that
tire can be tracked back to you then
there is the possibility of civil action, bad
publicity or the start of a bad reputation.
The Indiana Department of Environmental Management (IDEM) enforces
the regulations when it pertains to the
disposal of tires in Indiana.
Presented by:
Post a sign in a location that is conspicuous to your customers. The sign
must be at least 8.5" wide by 11" high
and the lettering must be at least 18point type. The written notice must
include the following language:
“Do not put waste tires in the
trash. Recycle your waste tires.
State law requires us to accept
your waste tires for recycling or
proper disposal if you purchase
new tires from us.”
•
•
Accept from the customer at least one
used tire for each new tire sold.
Collect a twenty-five cent ($0.25) fee
for each new tire that is sold, and pay
all but one percent (1%) of the collected fees to the State Department of
Revenue when the state gross retail
tax is due.
Disposal
You have two main options when it
comes to the management or disposal of
used tires. The first option is the “Used
Tire Rule.” Under this rule, you must use a
registered waste tire transporter to haul
your tires to a registered used tire storage
facility or to a tire recycler. When this option is used, the generator of the used tires
must acquire a waste tire manifest from
the registered waste tire transporter.
Make sure to retain those manifests for at
least three years. A list of registered
waste tire transporters can be found at:
http://www.in.gov/idem/files/
wt_transporters.pdf
The second option is to dispose of the
used tires as a solid waste. You cannot
simply take the tires and throw them into
the dumpster; whole tires are banned
from solid waste landfills. You must cut
the used tire into four relatively equal
pieces or you must remove both of the
sidewalls from the tread, resulting in
three pieces. Then the pieces of the tires
may be disposed of as a solid waste
(dumpster). I have also heard of services
that will come onsite and use a tire shredding machine to shred up the tires into
small pieces. Once the tires are shredded,
this is acceptable for solid waste disposal.
There are other options such as the possibility of recycling the tires or having them
retreaded, however, these are typically
not feasible or cost effective for a dealership. Please keep in mind that if you are
disposing of tires buy cutting them and
sending them to a landfill, the landfill
operators may have more requirements
outside of the regulations mentioned
above.
Now that you are informed about the
disposal of tires, you might be asking
yourself, “Are we managing all of our
waste streams compliantly?” Take a moment and think about everything that
leaves the service areas besides the cars:
oil, filters, sludge, antifreeze, fluorescent
light bulbs, solvents, paints and paint filters, etc.? You need to get “in the know”
about waste disposal requirements because they can come back to haunt you
down the road.
If you have any questions concerning the
disposal of any dealership related items,
feel free to contact KPA at 1-800-7818308, or you may contact the local representative Zach Pucillo at 317-201-2335. ◊
These articles are provided by KPA, a recommended partner of your Association providing Environment & Safety services for Auto, Agricultural /
Heavy Equipment, Motorcycle, RV, and Truck
Dealers. If you have additional questions, please
contact KPA at [email protected] or
800.853.9659.
PAGE 6
THE SHOWROOM
DEAC
(Dealers Election Action Committee)
Terry Lee
Terry Lee Honda—Avon
DEAC Chairman
Brooks, John ......Lakeside Chevrolet Inc.
2015 Contributors
(as of October 31, 2015)
Button, Don ............................................Button Motors
Colglazier, John ..................................Don Hinds Ford
** Indiana’s DEAC Team consists of the NADA
Director (Dave Cox), DEAC Chairman (myself),
Association President (Nick Dellen) and Association Executive Vice President (Marty Murphy).
Dargevics, Erik .Eriks Chevrolet
Duell, Doug ....Evansville Kia Mazda Volvo
Analysis of Contributors:
Fairchild, William ......................Art Hill Ford Lin Mazda
Members in report:
269
Gingerich, Rex Button Chrysler-Jeep-Dodge Ram
Members with Permission:
138
PRESIDENTS CLUB ($2,500 - $5,000)
Harris, Jeffrey .James Matthews Inc.
Bassett, Steven..General Truck Sales
Inskeep, Jeff ............................................Inskeep Ford
Butler, Robert..Butler Toyota Scion Inc
Jaeger, Scott .................................Thompson’s Honda
Jones, John .................................John Jones GM City
GOLD EAGLE DONORS ($1,000 - $2,499)
Lochmandy, Craig Lochmandy Motor Sales Inc.
Keller, Roger Tom Wood Management Inc.
Miller, Tom .................Tom O’Brien Chry-Jp-Dod-Ram
Thomas, Bob ...Capitol City Ford Inc.
CONTRIBUTING MEMBERS (less than $250)
Bennett, Bryan Country Chevrolet Buick Inc.
SILVER EAGLE DONORS ($500—$999)
Catterson-Kraft, Theresa ...Westgate C-J-D Ram
Anderson, Mike . .Mike Anderson GM Super Ctr.
Fuson, Mark ...Fuson Automoitiuve, Inc.
Dellen, Nick .........................Dellen Chev-Bui-GMC
Luebbehusen, David ...Washington Chrysler Center
Gernhardt, Dennis ...............................DeFouw Chevrolet
Luegers, Jeryl.....................Bob Luegers Motors
Goodwin, Maurice Goodwin Bros. Automobile Co.
Mooney, Betty ....Mikes Motor Co., Inc.
Roush, Tom .Tom Roush, Inc.
State Summary
(as of October 31, 2015)
Percent Members with Permission:51.30%
Contributors (YTD):
33
Contributions Received As Of:
Previous Year 10/31/2014
$13,520.00
Current Year 8/31/2015
$16,970.00
Current Year Quota:
$23,121.06
Percent Current Year Quota Attained:
73.40%
Poynter Sr., Robert...........................Poynter Chevrolet
Riedman, James...........................Riedman Motors Co.
.BRONZE EAGLE DONORS ($250 -$499)
Sandman, Larry ....Sandman Brothers, Inc.
Barile, John Jr.. ....Barile Ford Inc.
Yoder, William...Yoder Ford Inc
REGULATORY NEWS
SOSSOS-ADSD: 2015 Dealer
License Renewal Dates
The SOS Auto Dealer Services Division would like to remind all dealers
that license renewal dates are
changing effective January 1, 2015.
The new expiration date will be
listed on your 2015 license and new
plate month stickers will be issued
when necessary. 2016 license renewal fees may be prorated
up/down 1 month according to the
new expiration date.
The following is a listing of the new
expiration dates that will be listed
on 2015 dealer license renewals.
Dealerships whose business name
begin with:
A—B
January 31
C—D
February 28
E—F
March 31
G—H
April 30
I—J
May 31
K—L
June 30
M—N
July 31
O—P
August 31
Q—R
September 30
S— T
October 31
U—V
November 30
W—Z
December 31
NOTE: All 2014 licenses will expire
as usual based on what is listed
on your 2014 license. SOS-ADSD
routinely mails dealer license renewal applications approximately
6 weeks prior to license expiration. ◊
NOVEMBER/DECEMBER
PAGE 7
NA
OG
V EEM8B E R / D E C E M B E R 2 0 1 6
P
2015
P AH GE E S8H O W R O O M
T
BHPH CORNER
Do the Costs of a Lease HereHere-Pay
Here Model Outweigh the Benefits?
PRESENTED
BY:
some upfront education on the leasing program and its
feasibility prior to making the switch.
Understanding the pitfalls of a LHPH model will equip decision
makers with the information necessary to decide whether the
switch to a LHPH operation is right for them.
It is important to note that the lease terms established will
determine the appropriate accounting methods used for
sales tax, income tax and financial statement reporting.
Variables such as the age and value of the vehicle at the
time of sale, the number of lease payments, the amount of
each payment and any residual payments due at the end of
the lease will all factor into determining the accounting
method used. A detailed discussion of accounting methods
is beyond the scope of this article, but it is suffice to say that
careful planning upfront is necessary to ensure that the
desired outcome is achieved.
What Are the Benefits?
What to Consider
One of the largest benefits of a LHPH model is improved cash flow
and liquidity through the deferral of sales tax payments. In a BHPH
model, sales tax is remitted for the entire sale price upfront. But in
most states, sales tax related to a lease is only assessed on the payment stream from the customer. Additionally, initial customer payments can be collected as non-taxable refundable security deposits.
Starting a LHPH operation can be difficult, but if the climate
is right in your state, making the switch to a LHPH model
can enhance the cash flows of your company. Owners
should consider the significant upfront cost associated with
designing a leasing operation. They should also consider
the additional costs and human capital necessary to support the additional ongoing compliance, as well as the
tracking and reporting burdens unique to a LHPH operation.
While Buy Here-Pay Here (BHPH) owners are familiar with the
benefits of the Lease Here-Pay Here (LHPH) model, many do not
take the leap. Others may attempt it but fail to launch a successful
LHPH operation.
LHPH owners can benefit from deferred federal and state income
taxes through the deferral of the gross profit realized on a traditional sale and finance transaction. BHPH transactions typically
result in a sale of a vehicle from the dealership at significant gross
margin. BHPH operators often offset the original gross profit generated by selling the installment contract – at a discount – to a
related finance company (RFC). Because LHPH transactions typically do not generate a sales transaction, there is no gain to be
recognized. Without the need to sell contracts to the RFC, LHPH
models can also eliminate the need for the two-company structure, thereby simplifying financial reporting. Furthermore, with a
LHPH model, vehicles remain the property of the dealership and
are depreciated over time using accelerated depreciation methods
that can result in a reduction of initial tax liability.
Many LHPH operators also enjoy additional benefits, such as better bankruptcy protections and less restrictive regulations. But the
question remains: With these benefits, should BHPH owners make
the switch to a LHPH model?
Challenges to Overcome
Often, the largest hurdle in making the switch to a LHPH model is
related to the additional resources needed to administer a successful and compliant LHPH operation. Sales tax filings are more complex and require more human capital to ensure they are compliant. Additional insurance coverage may also be warranted for
LHPH operations.
Turnkey document management systems and accounting solutions for LHPH operations continue to be a challenge for those
contemplating the switch. Typically, due to the additional tracking,
compliance and reporting requirements, a BHPH software solution does not meet the needs of a LHPH operation.
Many BHPH dealers rely on lines of credit with financial institutions to finance their operations. Lease accounting can significantly change the financial statements, which can affect compliance
with covenants and borrowing capacity. Lenders may also require
To discuss any of the above items – or learn more
about how Katz, Sapper & Miller can help your dealership – please contact Jeff Taylor at 317.580.2014.
◊
NOVEMBER/DECEMBER
PAGE 9
ADAI Association News
Recognition of 2015 ADAI President, 2016 Board of Directors and
Regulatory Advisor Retirement
2015 Outgoing ADAI President
Presented With Plaque of
Appreciation
At–
At– Large Directors
Chris Coyle, NADA Director
Coyle Chevrolet, Inc.—Clarksville
ADAI Regulatory Advisor
Retiring in January 2016
Terry Lee, DEAC Chairman
Terry Lee Honda—Avon
Rick Brown
Dan Young Tipton—Tipton
Lisa Renner
Renner Motors—Columbus
Scott Jaeger
Toyota of Terre Haute
Jeff Roush
Tom Roush, Inc.—Westfield
District Directors
D #1–
#1– David Rodgers
Grieger Motor Sales—Valparaiso
D #2—
#2—Tom Shepherd
Shepherd’s Chev-Bui-GMC—Kendallville
ADAI Executive Vice President
Marty Murphy presented outgoing 2015
ADAI President Nick Dellen of Dellen
Automotive Family – Greenfield with a
plaque in appreciation of his service and
dedication to ADAI at the 2015 Annual
& 4th Quarter Board Meeting held in
Indianapolis on October 13, 2015.◊
◊
2016 ADAI Board of Directors
ADAI welcomes the following dealer
members to it’s 2016 board of directors:
D #3—
#3— Marty Kendrick
Kendrick Nissan—Lafayette
D #4—
#4—Jim Scarbeary
City Chevrolet—Columbia City
D #5—
#5—Scott Jaeger
Toyota of Terre Haute
D #6—
#6—Jeff Roush
Tom Roush, Inc.—Westfield
D #7#7- Randy Stoops
Stoops Automotive Group—Muncie
D #8#8- Kiran Pinisetti
Ray Skillman Northeast Mazda—Indpls.
D #9#9- Ray Farabaugh
Patrick Nissan—Evansville
Executive Committee
D #10#10- Richard Burton
Bedford Ford-Lincoln-Mercury
Harry Tepe, President
Tom Tepe Auto Center—Milan
D #11#11- Harry Tepe
Tom Tepe Auto Center—Milan
Nick York, Vice President
York Automotive—Greencastle
D #12#12- Chris Coyle
Coyle Chevrolet—Clarksville
Chris Coyle, Treasurer
Coyle Chevrolet, Inc.—Clarksville
Ray Farabaugh, Secretary
D-Patrick Nissan—Evansville
Nick Dellen, Immediate Past President
Dellen Automotive Family—Greenfield
ITDA Chairman
Jacob “Jake” Nichols
Palmer Trucks—Indianapolis
MDAI Chairman
TBD ◊
Cindy Wagner, ADAI Regulatory Advisor/ Showroom Editor/ Website
Coordinator will be retiring January 15,
2016 after almost 15 years of service
with ADAI. She was hired in March of
2001 for a new position based on her
expertise. She formerly worked for the
Bureau of Motor Vehicles for 30 years in
many capacities including Dealer Division Director and Title Department Program Coordinator. She has been invaluable to our members as the regulatory
advisor lending her 45 year auto industry knowledge and guidance to all by
way of her early seminars, many ADAI
fact sheets and “It’s the Law” brochures.
Cindy plans on enjoying her
retirement by spending time with her
son, Jeremy Railey, and new grandson
Rory, as well as gardening, crafting and
“not spending almost 2 hrs. per day
commuting to work!” She is a big animal
protection advocate and plans on volunteering at her local Humane Society.
She is currently training Amy Martin
who will take on her Showroom editor
and website coordinator duties and
other various association projects.
Please join us in congratulating
Cindy on her successful career and impending retirement. She will be missed!
◊
PAGE 10
THE SHOWROOM
BULLETIN
Bulletin #1502 – November 10, 2015
ATTORNEY GENERAL’S OFFICE:
DOC FEE COMPLAINT INVESTIGATIONS
LIMITED TO THOSE EXCEEDING $200
Monday, November 9, 2015
After many meetings and discussions between regulators, association officials and dealers
over the last year regarding dealer documentation fees, the State has finally reached a decision. Today, the Attorney General’s Office advised ADAI Executive Vice President Marty
Murphy that their office intends to limit their investigative resources on documentation fee
complaints to those instances where more than $200 was charges as a documentation fee.
This change is effective immediately.
A special thank-you to ADAI board member and Secretary Chris Coyle of Coyle Chevrolet,
Inc. – Clarksville for his tireless efforts on this issue. Chris helped prepare statistics and attended several meetings to make the case for dealers.
If you have any questions, please feel free to contact Marty Murphy at ADAI headquarters
at 317.635.1441 or email [email protected] .
NOVEMBER/DECEMBER
PAGE 11
Bill Starkey
MDAI Chairman
Flat Out Motorcycle
Indianapolis
Federal Highway Bill Contains PowersportsPowersports-Friendly
Amendments
Source: Dealernews.com Nov 5, 2015
The U.S. House of Representatives has
Source: Dealernews.com Nov 16, 2015
funds for motorcycle-only checkpoints;
Reestablishing a Motorcycle Advisory
adopted amendments to the federal
Highway Bill on Thursday that includes
•
good news for on- and off-highway
motorcyclists, the American Motorcyclist
the U.S. Department of Transportation
administrator on infrastructure concerns
Association reported.
of particular interest to motorcyclists;
Council to coordinate with and counsel
•
The Surface Transportation Reauthorization and Reform Act of 2015 approved
today by a vote of 363 to 64 provides
$325 billion over six years.
"We sifted through more than 100
amendments to this bill, identified those
favorable to AMA members and threw
Patents Under Review in
Dispute Between Polaris,
Arctic Cat
Authorization for a study to be per-
formed by the National Academies of Science on ways to prevent crashes; and
•
Funding of highway safety grants
A patent dispute between Polaris and
Arctic Cat is on hold while the disputed
patents undergo a review.
One of the three patents in question was
already in the middle of the review process, according to Bloomberg Business.
Polaris sued Arctic Cat for alleged patent
infringement for some design elements
included in AC’s Wildcat ATVs.
that include programs to reduce distracted
driving, including language that make it
easier for states to successfully qualify for
and receive the money.
In May, the U.S. District Court for the District of Minnesota consolidated three
"We also are pleased that the House decid-
cases, but the Patent Trial and Appeal
Board (PTAB) of the Patent and Trade-
our support behind them," said Wayne
Allard, AMA vice president for govern-
ed not to expand the number of states
eligible to impose new tolls on our high-
mark Office had already in February instituted review of the claims of one of the
ment relations. "At the same time, we
staunchly opposed proposed amend-
ways under the Interstate System Reconstruction & Rehabilitation Pilot Program,"
patents. The PTAB's determination is due
ments, such as those that would have
eliminated the Recreational Trails Pro-
Allard said.
gram."
Amendments and other provisions
passed by the House and supported by
the AMA include:
•
Continued funding for the Recrea-
tional Trails Program, which provides
funding to states for maintaining, improving and expanding off-highway
recreational opportunities;
•
A prohibition against using federal
by February.
The AMA also supported a provision that
Reversing an order by a U.S. magistrate
judge, the court ruled Nov. 5 that the
would have banned the U.S. DOT from
lobbying local, state or federal govern-
parties had easily met the requirements
for a stay of the lawsuit until after the
ments about policy issues. The House
Rules Committee removed that amend-
PTAB renders its decision.
ment from consideration, but the AMA
hopes to get the language restored as the
Arctic Cat then asked for review of two
bill moves forward.
The Highway Bill now goes to conference
committee, where differences between
the Senate and House versions will be
worked out.◊
◊
more patents, and a decision on institution of review of those patents is also due
in February. Should those patents be
reviewed, a decision would be due sometime in 2017, according to Bloomberg. ◊
PAGE 12
THE SHOWROOM
LAW NOTES
PRESENTED
BY:
Data Security—
Security—Nightmare Ahead
As society in general, and dealerships in particular, begin handling, processing, capturing or
holding more customer data
unusual problems are beginning to present themselves and
there is very little legal guidance
available. Most of the time laws
and regulations are reactive.
They are curative and not preventive.
Technology is progressing at warp speed rate.
What was good technology
today will be obsolete in a few
months or a couple of years.
The burdens placed on dealerships are substantial. These
burdens are also compounded
by the entry of a multitude of
third party vendors, all seeking
access to a dealerships data.
Dealerships must take protective steps to try to insure the
integrity of their operation and
minimize the potential for data
breaches or data insecurity.
Recently there have been some
federal trade commission actions that are noteworthy. In
FTC vs. Windham Worldwide,
the third Federal Circuit Court
of Appeals affirmed the holding
that the Federal Trade Commission has the authority to regulate a companys data security
practices. The FTC has the ability to determine what an
“unfair” data security practice is.
Unfortunately, there appears to
be no standardization of what
constitutes faulty data security
practices. There has also ex-
ploded on the scene a group of socalled “data brokers” who obtain
information on customer buying
habits, sales and service, warranty
and aftermarket repairs that are
aggregated from third party vendors providing services to dealers
through their dealership management services computer programs.
As we have been preaching for
years at our annual workshops,
the burden is on dealers to police
third party vendors. Also, interesting, but dangerous, is the topic of
telemetrix – data provided by
onboard computer systems in vehicles and subject to being downloaded or transmitted at the time
the vehicle is in the dealership for
service. The types of telemetrix
data commonly collected by
onboard systems include driver
personal data, in vehicle information and entertainment, forensic and diagnostic data, vehicle
manufacturer proprietary information, and, of course, GPS and
vehicle location data. If this data is
misappropriated by a third party
acting as an agent of the dealer,
there could be some liability on
the dealer’s part if they were negligent in handling this data while
the vehicle is in their possession.
All of this has spawned a need for
cyber liability coverage which insurance carriers are now beginning to provide. To its credit, Ford
is the one manufacturer so far
who has recognized this problem
and has agreed to attempt to con-
trol third parties and has acknowledged that Ford could have some
liability for third parties acting at
its behest.
The issues and ramifications of
this newly emerging field are
more significant than can be treated in this space. We intend to
have a major portion of our upcoming spring workshops spent
on dealing with this topic. Keep
an eye out for an announcement
in early January as to our spring
workshop schedule and be sure
to get signed up right away. We
WILL HAVE a new wrinkle this
year.
For further information
contact Ronald C. Smith, Bose
McKinney & Evans LLP, 317-6845171.◊
◊
NOVEMBER/DECEMBER
PAGE 13
PAGE 14
THE SHOWROOM
INSURANCE CORNER
A Question With No Good
Answer
Fill in the blank: Every _______’s worst
nightmare. Of course, we’ve all heard
“parent’s” used in that expression. But,
what about filling in the blank with
“tank truck driver”? As our imaginations
picture what that might be, here’s one
possibility to consider: a rollover that kills
someone.
Petroleum marketers and
certainly tanker drivers are aware of the
potential for that kind of nightmare. So,
why do rollovers keep happening? The
question is straightforward; the answer
is not.
PRESENTED BY:
vehicles. But, when the cause is determined to be distracted driving, the outrage is profound.
Anything that diverts a driver’s attention—
whether inside the vehicle or out—
redirects focus from the task at hand, and
that equals distracted driving.
F=Fatigue
Studies have shown that lack of sleep can
have the same effect on a person’s mental
sharpness as drugs or alcohol. Being
awake for 18 hours is comparable to having a blood alcohol concentration of 0.08
percent, which is legally intoxicated. Driver
fatigue, which can be due to a lack of
sleep, extended work hours, or other factors, can impair response time, increasing
the chances of being in a crash.
DRIVE S.A.F.E.
A top priority at Federated Insurance is
helping petroleum marketers combine
their industry knowledge with an awareness of why rollovers happen so they
can take steps to ensure their drivers
stay safe. The following is a condensed
version of Federated’s DRIVE S.A.F.E.
initiative. It illustrates the main causes of
rollover accidents and ways to help drivers steer clear of situations that could
prove catastrophic.
S=Speed
Many rollovers are the result of excessive
speed, most commonly when entering
exit ramps. Some drivers don’t realize
that the posted exit speed is for automobiles, not large trucks with a high center
of gravity and a shifting load.
However, rollovers can occur even at
very low speeds. Training drivers to understand the relationship between
speed, stopping distance, and loss of
stability can give them an awareness of
situations that could result in a rollover.
A=Attention
Distracted driving has gotten a lot of
press in recent years, and it’s not just
about teens with cell phones. While
every accident is tragic, there are perhaps none more gut-wrenching than
seeing a news report of a tank truck in
flames after crashing into passenger
But, fatigue isn’t limited only to human
operators. Mechanical fatigue is very real
and very dangerous, which makes it imperative to ensure the vehicle’s mechanical
integrity isn’t compromised due to wear
and fatigue. Pay particular attention to
components such as suspensions, tires,
and axles. Physically inspect the vehicle
before operating. Any parts showing wear
or fatigue should be replaced.
But, when speed, fatigue, distractions, and
all the other dangerous driving behaviors
are removed from the equation, there’s
another major cause of rollovers: road
geometry.
geometry Long suspected as a factor in
many rollover accidents, road geometry
has been discovered to be a frequent contributor to rollover accidents.
Unfortunately, drivers often have no advance warning of troublesome roadways
and interchanges. What can you do? Research the roads your drivers travel. Then,
arm them with information pinpointing
problematic areas to help them prepare
ahead of time and adjust their driving
accordingly.
Equipping your drivers with the tools,
knowledge, and skills they need to do
their job—including potentially life-saving
information—will help your drivers arrive
at their destinations safely. To learn what
Federated can do to help you protect
your drivers and all those they share the
road with, contact your local Federated
representative and request The Point of
No Return—Tanker Rollover.◊
E=Emotion
Two words: road rage. Superior driver skills
and a positive attitude are what it takes to
master a tank truck. That and your sense of
moderation will help keep you safe. Road
rage is caused by situational and/or personal triggers. Whether these emotions
result in your being the aggressor or the
victim, it’s a very serious act. Focus on
yourself and what you can control, not the
actions of other drivers.
That’s not all, folks
In 2009, there were more than 8,000 large
truck crashes involving rollovers, which
were to blame for more than half of the
fatalities resulting from those crashes.
Large truck rollovers often can’t be
blamed on a single cause. The leading
factors—driver error, truck design, and
operating environment—can cause an
accident individually or in combination;
however, driver error is cited most frequently.
This article is intended to provide general information and recommendations regarding risk prevention only. There is no guarantee that following
these guidelines will result in reduced losses or
eliminate any risks. This information may be subject to regulations and restrictions in your state and
should not be considered legal advice. Qualified
counsel should be sought regarding questions
specific to your circumstances and applicable state
laws © 2015 Federated Mutual Insurance
Company. All rights reserved.
Federated Mutual Insurance Company • Federated
Service Insurance Company* • Federated Life
Insurance Company
Owatonna, MN 55060 / Phone: (507) 455-5200
www,federatedinsurance.com
* Not licensed in the states of NH, NJ, and VT.
FEDERATED INSURANCE
P. O. BOX 50487
INDPLS, IN 46250
(800) 428428-4143
(317) 849849-7550
Fax: (317) 849849-7570
www.federatedinsurance.com
NOVEMBER/DECEMBER
PAGE 15
PAGE 16
THE SHOWROOM
NOVEMBER/DECEMBER
PAGE 17
MONEY MATTERS
Presented By:
Net Investment Income Tax
Special Rules for SelfSelf-Charged Interest and SelfSelf-Charged Rental Income
By Mark Kleissler, CPA
Special Rule for SelfSelf-Charged Interest:
Interest:
Through the passage of the Affordable Care Act and the finalization of
the related tax regulations, many
high income taxpayers were quick
to find they were exposed to one of
the new taxes under the law, the
Net Investment Income Tax (NIIT).
The special rule provides that, in the
case of self-charged interest received
from a non-passive entity, the amount
of interest income excluded from net
investment income will be the taxpayer’s allocable share of the non-passive
deduction. The result of this rule allows dealers, with loans made directly
to their dealerships, to exclude all or a
portion of the interest income from
net investment income.
Effective January 2013, a 3.8 percent NIIT applies to a taxpayer’s net
investment income each year when
adjusted gross income is over certain thresholds ($200,000 for single
filers, $250,000 for joint filers, or
$125,000 for married taxpayers filing separately).
Net investment
income includes interest, dividends,
royalties, rents, gross income from a
passive business, and net gain from
property sales. Income from a nonpassive trade or business (one in
which you actively participate) is
excluded from the definition of net
investment income.
Although this tax issue is now familiar to many, we would like to revisit
the special rules pertaining to selfcharged interest and self-charged
rental income that are included in
the final tax regulations, as these
are commonly applicable to owners
of dealerships and related real estate entities structured as passthrough entities for income tax purposes.
Example: A non-passive 70 percent
owner of a dealership pass-through
entity makes a direct loan to the dealership and receives $5,000 in interest
for the tax year. The owner’s allocable share of the non-passive deduction is $3,500 ($5,000 x 70% ownership allocation). Although the full
$5,000 is subject to regular income
tax, after reporting the non-passive
deduction of $3,500, only $1,500 of
the interest is subject to the additional
NIIT at the rate of 3.8 percent.
It is important to note that the selfrental rules are applied on a personby-person basis. It is possible to have
multiple owners in a rental entity,
with some owners who are subject to
the NIIT and some owners who are
not, depending on whether or not
they are active participants in the
trade or business of the tenant.
The regulations and special rules in
these areas are complex. There are
additional provisions and exceptions
that have not be addressed here.
Our intent is to heighten general
awareness of these special rules as
they are frequently applicable in the
tax reporting scenarios of dealerowners.
If you would like more information
on these issues or other dealership
matters, please feel free to contact K.
B. Parrish & Co. LLP at 317-347-5200.
◊
Special Rule for SelfSelf-Charged Rental
Income::
Income
The special rule provides that, if an
owner derives rental income from a
business activity in which the owner is
materially participating, the additional
NIIT will not apply. Dealers who own
the real estate outside of the dealership operating entity can therefore
exclude the rental activity from net
investment income.
KB PARRISH & CO. LLP
6840 Eagle Highlands Way
Indianapolis, IN 46254
(317) 347347-5200
Fax: (317) 347347-5211
Ryan Keith, Partner
www.kbparrish.com
PAGE 18
THE SHOWROOM
Jake Nichols
ITDA Chairman
Palmer Trucks
Indianapolis
ATD News
November 2015
Truck and Trailer Buying Expected to Stay Strong into
2016
Yet the growing driver shortage
seems to be putting the brakes on
purchasing plans for many fleets.
Demand for commercial trucks and
trailers is expected to stay strong well
into next year, according to a variety
of reports, though the growing
shortage of drivers may be curbing
the purchasing plans of many fleets.
According to a new HIS Automotive
analysis, commercial vehicle market.
Demand in the U.S. is expected to
stay strong for the next 15 months,
with the firm identifying over
500,000 businesses operating fleets
ranging from one to 250 vehicles,
and representing over 2.5 million
units, that are expected to buy another new vehicle during that time
period—data derived through the
firm’s new Return-To-Market (RTM)
Commercial Vehicle Predictor. The
quarterly Fleet Sentiment survey conducted in early October by CK Commercial Vehicle Research (CKCVR)
indicates that fleet equipment ordering activity could be similar in 2016
to what it has been for 2015.◊
Suppressed Diesel Prices Hindering Sales of NatGas Trucks
Sales of natural gas powered trucks
this year have slowed from 2014,
thanks in large part to falling diesel
prices. “with the fuel price differential
narrowing, the ROI to convert from
diesel to natural gas is moving in the
wrong direction: payback periods
are lengthening,” says Ken Vieth,
senior partner and general manager to ACT Research. “however, this
doesn't mean the adoption of NG
fuel has stopped or that there are
no new developments that might
lead to a future uptick in NG truck
orders.” Vieth says he and ACT staff
have spoken with a variety of people in the industry and learned that
despite the current fuel price differential, NatGas infrastructure continues to be built at targeted locations. Also, previous NatGas equipment purchasers remain committed to the fuel, seeing it as a longterm prospect, not just a short-term
reaction to historically high, volatile
diesel prices.◊
Commercial Truck Sales Up
Nearly 13% YTD
Medium– and heavy-duty vehicle
sales have been strong—up 12.9%
YTD compared to the same period
last year. Medium-duty trucks sales
are just over 143,000 vehicles YTD,
and heavy-duty truck sales are
more than 189,000 YTD. While the
first three quarters have been
strong, weaker employment numbers, the struggling oil and gas
industry, and weaker manufacturing data are all areas of concern.
Trucks remain an integral part of
commerce—but with manufacturing slowing, housing still weak and
domestic oil exploration falling, the
outlook for the rest of the year is
more mixed. We still forecast a
sales increase of 10.5% to 449,000
units for 2015, but we also have
become more cautious as headwinds increase. ◊
NACFE Class 8 Downspeeding Study Confirms 2 to 3
Percent Restructuring Program
The North American Council for
Freight Efficiency released a new
confidence report highlighting the
benefits and disadvantages of diesel engine downspeeding technology in class 8 applications this
week. Mike Roeth, executive director of NACFE, noted that the report drew on unbiased experts
from across the trucking industry,
including OEMs, component suppliers, engine and drivetrain manufacturers and large and small fleets
to paint as comprehensive a picture as possible on how
downspeeding is being used in
trucking today.◊
NOVEMBER/DECEMBER
PAGE 19
IN THE NEWS
Source: NADA Headlines-November
Holiday Car Deals Move
Earlier: 4 Things to Consider
Lexus put the red bows atop its cars a
month early, and General Motors is advertising Black Friday deals
two
weeks
before
Thanksgiving as the
auto industry copies
traditional retailer with
holiday discounts well before the holidays. Car buyers will reap good deals
for a longer time, analysts say, as automakers battle to hold or increase
their share of what likely will be record U.S. auto sales this year. Savings
can run in the thousands of dollars.
“The consumer is in a great spot to
get a great deal,” says Tom Libby,
manager of industry analysis for the
HIS Automotive consulting firm. Lexus, Toyota’s luxury brand, started its
sales early as it tries to catch Mercedes
and BMW, which in recent years have
dueled to be the top-selling U.S. luxury brand. ◊
GM Moves Forward with Plans
to Sell ChinaChina-Made Buick Crossover in U.S.
General Motors is moving
ahead with plans to sell the Chinesemade Buick Envision crossover in the
U.S. Two people with knowledge of
the plans told Automotive News that
GM was likely to green light Envision
exports to the U.S. for sale as early as
late spring, but stopped short of saying the plan has been finalized. GM is
targeting annual U.S. sales of 30,000
to 40,000 a year, with deliveries beginning next spring, The Wall Street
Journal reported, citing people familiar with the matter. ◊
Millennials’ Appetite for Auto
Loans Rising
Despite concerns over millennials’ lack of interest in vehicle ownership,
they are buying and financing vehicles,
says CU Direct, which links credit unions
and auto dealerships through its CUDL
lending platform. Millennials, those
aged 18 to 35, make up 36.2 percent of
car buyers financed through the CUDL
platform. “we are seeing that people in
that age group are starting to enter
some of their prime borrowing years,”
said Marci Francisco, vice president at
◊
CU Direct.◊
VW Dampens Hopes for Quick
Results in Emissions Probe
Volkswagen has dampened
hopes for quick results from an investigation into its rigging of diesel emissions
tests and said developing a fix for the
affected cars rather than finding the
root cause of the manipulations is its top
priority. “I understand the desire for
speed, but what matters to us instead is
to work thoroughly and to not give out
false premature results,” VW brand sales
chief Juergen Stackmann said at a panel
discussion on Tuesday. VW’s internal
investigation is focusing on as many as
40 employees involved in activities related to the manipulations, one person
familiar with the matter told Reuters last
month. ◊
Ford First Automaker to Test
Driverless Car at Mcity
Ford Motor Co. is the first automaker to test a fully autonomous vehicle at Mcity, an Ann Arbor automotive
proving ground intended to help Michigan lead in driverless-car technology.
The Dearborn automaker has been testing autonomous vehicles for more than
10 years and is now expanding testing
on an autonomous Fusion on the diversity of roads and realistic neighborhoods of the 31-acre Mcity near the
University of Michigan’s North Campus
Research Complex to accelerate research of advanced sensing technologies. ◊
2016 Fuel Economy Guide Now
Available
The U.S. Department of Energy
and the Environmental Protection
Agency have just released their 2016
Fuel Economy Guide. The guide provides detailed fuel economy numbers
for MY 2016 light-duty vehicles, along
with estimated annual fuel costs and
other information for prospective purchasers. Dealers must display a copy of
the guide and provide copies to customers upon request. ◊
German Luxury Brands Porsche,
M-B and Mini Rule the CarCarBuying Process
German luxury brands continue to rule when it comes to satisfaction
with the new-car buying process, according to U.S. consumers. Porsche
shoved Mercedes-Benz from first to
second place in sales satisfaction
among luxury brands in J.D. Power’s
2015 U.S. Sales Satisfaction Index Study
released [Thursday]. Porsche’s score
rose 14 points from a year ago to 752
points on the 2015 index. It placed fifth
among luxury brands in 2014. Mercedes-Benz scored 749, a decline of 12
points from last year. For a sixth consecutive year, Mini ranks highest among
mass-market brands, with a score of
762, a 35-point increase from 2014.
Among luxury brands, Lexus placed
third, up from fourth place last year. ◊
PAGE 20
THE SHOWROOM
78th Annual
AUTOMOBILE DEALERS ASSOCIATION OF INDIANA &
INDIANAPOLIS AUTOMOBILE TRADE ASSOCIATION
Convention & Retreat
NOVEMBER/DECEMBER
PAGE 21
PAGE 22
THE SHOWROOM
NOVEMBER/DECEMBER
PAGE 23
P AA GGEE 224 4
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T H EE SSHHOOWWRROOOOMM
Herman Goodin Award
Jeffery I. Wood selected As
ADAI’s 2015
Herman R. Goodin
Civic Service Award Winner
Jeffery I. Wood, Tom Wood Auto Group—
Indianapolis, was recently selected as the
2015 Herman R. Goodin Civic Service
Award Winner.
The Herman Goodin Civic Service Award was established in 1952 in
memory of Mr. Herman R. Goodin, who
was the first president of the Automobile
Dealers Association of Indiana. Mr.
Goodin died while serving our country as
a colonel in the United States Army
Transportation Corp during World War II.
His many business, civic and patriotic
activities formed the model for annually choosing a dealer to be recognized
for similar accomplishments.
Jeff Wood took over the reins
from his father, tom, who established
the family business in 1967. the company has grown to represent 15 automotive brands in four states along with
companies related to leasing, finance,
insurance, collision repair, car rental,
warranty and aircraft sales, service &
charter.
Mr. Wood graduated from
Miami University with a degree in Botany and continued his education at
Duke University, earning a Master’s
Degree in Forest Resource Management. He gained environmental experience by working in New Zealand and
Finland, as well as establishing his own
tree farm that he still manages today.
Jeff shared a love of aviation
with his father and joined the military
1988. he served in the Indiana National Guard and the U.S. Air Force as a
fighter pilot for 20 years. With over
2,200 hours in the F-16, he has flown
in many parts of the world from Korea
to Iraq and was also a member of the
U.S. Air Force Air Demonstration Team
“The Thunderbirds.”
After retiring from the military, Jeff flew the company airplane
and attended meetings with his father
until taking over the business. He has
been quick to adopt new technology
and is busy positioning Tom Wood
Automotive Group as the experts in
electric vehicle in Indianapolis. He sees
this as an exciting time in the car business. “I have always been interested in
alternative energy. That interest, my
environmental background and today's green technology will help us
grow our business in a positive way.
My father left us in a great position
with a great team even during a difficult economy. I am here to uphold the
standards of excellence that my father
set for this company and this family ..’
Honor, Integrity and loyalty, since
1967.”
Jeff currently serves on the
Board of Directors for the Tom & Julie
Wood Foundation, focusing on supporting the needs of at-risk women
and children. Jeff and his wife April
have three children.
Congratulations to Mr. Wood
for this, the most prestigious, award
given by the Automobile Dealers Association of Indiana, Inc.
Plan on attending the
2016 INDIANAPOLIS AUTO SHOW
December 26, 2015 - January 1, 2016
The Indiana Convention Center
100 S. Capitol Ave.
Indianapolis, IN 46225
www.indyautoshow.com
Admission:
Adults - $7.00
Children under 12 FREE
(when accompanied by an adult)
Military & Police / Fire Dept. Personnel - FREE
(All U.S. Military Active -Duty & Police/Fire Active-Duty - Must have ID)
NOVEMBER/DECEMBER
PAGE 25
DID YOU KNOW?
Dealers Are Not Required to Issue Paper Plates
Paper Plate vs. Metal Plate on
Newly Acquired Vehicle
An Indiana dealer is not required by
law to issue an interim (paper) plate
to a customer. It is a courtesy service only. It is perfectly legal to place
the customer’s valid trade-in vehicle
license plate on the newly purchased like-kind vehicle instead of
issuing a paper plate. The customer
must carry ownership documents
with them in either case and both
are valid for the same length of time
-31 days– until the customer registers or transfers registration to the
new vehicle.
Interim (Paper) Plate Issuance Law:
Indicates dealer “may
may”
may (not “must”)
issue paper plate to customer.
IC 99-3232-6-11
Interim dealer or manufacturer license plates
Sec. 11.
(a) The secretary may issue an interim
license plate to a dealer or manufacturer who is licensed and has
been issued a license plate under
section 2 of this chapter.
(b)
The secretary shall prescribe the
form of an interim license plate
issued under this section. However,
an interim license plate must bear
the assigned registration number
and provide sufficient space for the
expiration date as provided in subsection (C).
(c) Whenever a dealer or manufacturer sells or leases a motor vehicle,
the dealer or manufacturer may
provide the buyer or lessee with an
interim license plate. The dealer shall,
in the manner provided by the secretary, affix on the plate in numerals
and letters at least three (3) inches
high the date on which the interim
license plate expires.
(d) An interim license plate authorizes a
motor vehicle owner or lessor to operate the vehicle for a maximum period
of thirty-one (31) days after the date
of sale or lease of the vehicle to the
vehicle’s owner or lessor or until a
regular license plate is issued, whichever occurs first.
(e) A motor vehicle that is required by
law to display license plates on the
front and rear of the vehicle is required to display on a single interim
license plate.
(f)
An interim license plate shall be displayed: (1) in the same manner required in IC 9-18-2-26; or (2) in a location on the left side of a window facing the rear of the motor vehicle that
is clearly visible and unobstructed.
The plate must be affixed to the window of the motor vehicle.
(g) The dealer must provide an ownership document to the purchaser at
the time of issuance of the interim
license plate that must be kept in the
motor vehicle during the period an
interim license plate is used. (h) all
interim license plates not issued by
the dealer must be retained in the
possession of the at all times.
As added by P.L.92-2013,SEC.78.
Transfer of Metal Plate Upon Purchase
of Newly Acquired Vehicle: Indicates
customer can put his trade-in valid
metal plate on his newly purchased
vehicle for 31 days (no paper plate
needed).
(IC 99-1818-6-5)
Transfer of plates
Sec. 5.
(a) Upon the disposition by sale or other
means of a motor vehicle, trailer, semitrailer, recreational vehicle, or motor home
currently registered in Indiana, the license
plate from the disposed motor vehicle,
trailer, semitrailer, recreational vehicle, or
motor home may be:
(1) Transferred by the person who is
current registrant to any other vehicle of the same type acquired by the
person; and
(2) Operated in Indiana for not more
than thirty-one (31) days after the
date the person acquires ownership
of the vehicle.
(b) The person who is the registrant must
have in the person’s possession a:
(1) manufacturer's certificate of origin;
(2) dully assigned certificate of title; or
(3) bill of sale;
(4) Indicating that the person is the
owner of the vehicle to which the
unexpired license plates are affixed.
As added by P.L. 2-1991, SEC. 6
Amended by P.L. 262-2013, SEC. 68
PAGE 26
THE SHOWROOM
KPA Client Alert:
OSHA Fines Are Set to Increase 7575-80%
Unlike the EPA, whose fines are regularly increased due to inflation, OSHA was never included
within the same structure and was required to obtain Congressional approval in order to increase penalties. The result – OSHA maximum penalties have virtually remained the same for
decades and disproportionate to the severity of penalties enforced by other agencies such as
the EPA and DOT.
In a deal to avoid a default on the nation’s debt, the Bipartisan Budget Act of 2015 was signed
into law on November 2nd. The law included a provision that will bring OSHA fines in line with
inflation over the past 25 years.
The Budget Act includes a provision, entitled the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, which will allow OSHA to a “catch-up adjustment” dating back to
the year 1990. From 1990 through the end of 2015, the Consumer Price Index (CPI) rise is expected to be north of 78%. Applying this logic, the resulting increase in OSHA penalties are estimated as follows:
VIOLATION:
Serious Violation:
Repeat or Willful Violation:
MAXIMUM PENALTY:
From $7,000 currently to approx. $12,500 per incident
From $70,000 currently to approx. $125,000 per incident
The initial penalty increases must become effective by August 1, 2016. After the initial catch up
adjustment is made, OSHA will be permitted to increase penalties annually each year based on
CPI.
Dr. David Michaels is the longest servicing Assistant Secretary of Labor for OSHA and has consistently worked to strengthen OSHA’s enforcement strength and effectiveness. During
Michael’s administration, OSHA expanded the concept of multiple workplace violations, expanded repeat violations across multiple rooftops, increased focus on high risk industries, implemented the Severe Violator Enforcement Program, and has increased focus on OSHA’s data analysis
including changes to the OSHA 300 log exemptions. Amongst these changes, the 2016 increase in OSHA penalties will likely be the most significant.
As a call to action, now is a good time to re-evaluate your safety program - ensure your inspection frequency is adequate, ensure training is up to date, and confirm your paperwork and documentation is in order including 300 logs, written programs, medical evaluations, and fit-testing
if applicable. As always, we are here to assist and please contact your KPA consultant with any
questions.
KPA Contact: Matt Hanaman
Cell- 815.414.0886
Email: [email protected]
N OO VVEEMMBBEERR//DDEECCE EMMB BE RE R2 0 1 6
2015
P AA GGEE 225 7
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PAGE 28
THE SHOWROOM
CAL EN DAR O F EVEN TS
I N F ORM AT I ON N U M BE RS
2015 SCHEDULE:
ADAI HEADQUARTERS
JANUARY 2015
Allied &
ADAI/ITDA/MDAI
Annual Dues Invoices
Mailed
1st Quarter ADAI Board
Meeting
January 13, 2015
FEBRUARY 2015
Allied &
ADAI/ITDA/MDAI
Annual Dues Invoices
2nd Notice Mailed
MARCH 2015
Allied &
ADAI/ITDA/MDAI
Annual Dues Invoices
3rd Notice Mailed
APRIL 2015
2nd Quarter ADAI
Board Meeting
April 28, 2015
MAY 2015
DEAC Contribution
Request
1st Notice Mailed
JUNE 2015
Ally/Time Dealer of the
Year Award (TMDA)
Nominations
JULY 2015
3rd Quarter ADAI Board
Meeting
July 21, 2015
DEAC Contribution
Request
2nd Notice Mailed
Herman Goodin Award
Nominations
ADAI/ITDA/MDAI
Annual Elections
Nominations
4th Quarter /Annual
ADAI Board of Directors
Meeting
October 13, 2015
Herman Goodin Award
Winner Notification
AUGUST 2015
SEPTEMBER
2015
OCTOBER 2015
TMDA
ADAI/ITDA/MDAI
Annual Elections
Marty Murphy
[email protected]
Mary Ellen Phillips
[email protected]
Bookkeeper,,
Membership /Services Manager,
Special Events Coordinator
Cindy Wagner
[email protected]
Regulatory Advisor,
Showroom Editor,
Website Coordinator
Connie Dixon
Submission to NADA
Votes Tallied
Results Notification
DECEMBER 2015 Indianapolis Auto Show December 26, 2015 Indiana Convention
Center - Indianapolis
1-317-685-1028
[email protected]
www.adai-inc.org
1-800-872-0363
1-317-635-1441
Executive Vice President
ADAI/ITDA/MDAI
Annual Elections
NOVEMBER
2015
Indiana Toll Free
In Area
FAX
E-Mail
Homepage Website:
January 1, 2016
[email protected]
Dealer Bond Coordinator,
Vernon General Insurance
BUREAU OF MOTOR VEHICLES
BMV Call Center
(317) 232232-2892
(Drivers License, Title &
FAX: (317) 233-5131
Registration Information)
SECRETARY OF STATE
SOS DEALER SERVICES DIVISION……. (317) 234234-7190
FAX: (317) 233-1915
FORMS & INFORMATION (WEBSITE): www.in.gov/sos/dealer/
NADA CONVENTIONS
REVENUE TAX LIEN & LICENSE PROTEST INFORMATION
IDOR COLLECTIONS DIV………… (317) 232232-2165
OPTION #2—V
#2 EHICLE TITLE OR PROFESSIONAL LICENSES
2015
San Francisco, California
January 2222-25, 2015
2016
Las Vegas, Nevada
March 3131-April 3, 2016
OPTION #2—DEALER (LICENSE) PROTEST
OPTION #4—VEHICLE TITLE (TAX LIENS)
2017
New Orleans, Louisiana
January 2626-29, 2017
CHILD SUPPORT LIEN INFORMATION
100th Anniversary
DCS CHILD SUPPORT LIENS
(317) 234234-2768
NOVEMBER/DECEMBER
PAGE 29
CLASSIFIED SECTION
WANTED: Office Manager—
Manager— Mike
Anderson Chevrolet of Merrillville is
seeking an enthusiastic, self-motivated,
individual to fill the Office Manager
position. Applicant must possess a positive attitude, management background
with an accounting degree or a minimum of 5 years experience in automotive dealership accounting. Mike Anderson Chevrolet of Merrillville is a successful “GM Dealer of the Year” recipient
and excels in customer satisfaction. We
offer an excellent compensation package along with benefits including:
401K, Health Ins., Vacation/Holiday Pay,
Dental Plan, Vision, Life Ins. If you are
interested in joining our team, please
contact Judy Arnold or Kim Ashby at
219-947-4151.
Looking for something to buy?
Have something for Sale?
ADVERTISE IT HERE … FREE
For ADAI Dealer Members ONLY
ADAI POSITION STATEMENT
ADAI PURPOSE STATEMENT
A level playing field, with fair and open competition among all
dealers, is the best assurance Indiana consumers will continue to
obtain the highest level of value and service for their automobiles,
trucks and motorcycles. ADAI is committed to taking whatever
actions are necessary to accomplish this mission, including enacting legislation to protect dealers in their relationship with the manufacturer. The ADAI will work to protect members from overreaching or unfair manufacturer restrictions on their ability to
operate and sell the businesses they have worked hard to build.
The ADAI will also work to support legislation to protect members
from perceived abuses and oppressive acts by the manufacturer.
The purpose of the Automobile Dealers Association of Indiana, Inc.
is to maintain and enhance the franchise distribution system of
motor vehicles in Indiana. The ADAI believes the franchise system
of independently owned and operated licensed new vehicle dealers best serves the interest of manufacturers and consumers by
insuring the most competitive and efficient means of distributing
and servicing high quality new and used motor vehicles.
The ADAI believes any Indiana state budget surplus is a result of
over taxation. The ADAI believes in maintaining a ‘rainy day fund’;
however, all additional surpluses should be either returned to the
taxpayers in the form of tax cuts or invested in economic development. The ADAI will work for and support legislation aimed at
increasing Indiana’s economic development. The ADAI will work
against and oppose legislation harmful to members and their employees.
“Let ADAI open the door to a
profitable relationship.”
PAGE 30
THE SHOWROOM
ALLIED MEMBERS
360 SERVICES
(317) 202-0360 FAX: (317) 251-1030
Principal Business: Fire Protection Inspections
Contact: Michael Crafton
www.360services.com
CARDCONNECT
(773) 332-2982 FAX: (847) 620-2787
Principal Business: Merchant Credit Card Processing
Contact: Lance Marcinek
www.cardconnect.com
EXPRESS MVA
(317) 322-0020 FAX: (317) 322-0025
Principal Business: Title/Registration Processing &
Document Imaging
Contact: Kevin Calvert or Doug Pillow
www.expressMVA.com
ADESA AUCTIONS INDIANAPOLIS
INDIANAPOLIS
(317) 838-8000 FAX: (317) 838-8081
Principal Business: Wholesale Auto Auction
Contact: Dave Emerson
www.adesa.com
CHASE AUTO FINANCE
(317) 509-1773
Principal Business: Commercial & Indirect Lending
Contact: Todd Smith [email protected]
www.chase.com
EYEWITNESS SURVEILLANCE
(800) 518-3911 FAX: (410) 487-6126
Principal Business: Video Surveillance Provider
Contact: Stuart Marcoon
www.eyewitnesssurveillance.com/
ALDEBARAN CAPITAL, LLC
(317) 818-7827 FAX: (317) 818-7830
Principal Business: Investment Management
Contact: Edward A. Skarbeck
www.aldebarancapital.com/
CLARK COUNTY AUTO AUCTION
(812) 283-5555 FAX: (812) 258-2400
Principal Business: Auto Auction
Contact: Matthew Fetter
www.clarkcountyaa.com
FEDERATED INSURANCE
(317) 849-7550 FAX: (317) 849-7570
Principal Business: Property & Casualty Insurance, Life &
Disability, Pension/Retirement/Estate Planning
Contact: Austin Bond (Cell: 913.980.8790)
www.federatedinsurance.com
AMERICAN FIDELITY ASSURANCE
ASSURANCE CO.
(800) 450-3506 ext 3202 FAX: (866) 606-6149
Principal Business: Short & Long Term Disability
Contact: Kathleen Weisenbach
www.americanfidelity.com
COMPLYNET CORPORATION
(847) 915-6363 FAX: (847) 823-9778
Principal Business: Compliance & Risk Mngmnt. Consulting
Contact: Philip Troy
www.complynet.com
AMERICAN AUTO GUARDIAN,
GUARDIAN, INC.
(888) 442-2886 FAX: (847) 506-9681
Principal Business: Vehicle Service Contracts
Contact: Bernie Miraglia
COMPUTERIZED VEHICLE REGISTRATION (CVR)
(800) 333-6995
Principal Business: Electronic Registration & Title Processing
Contact: Ken Mehall
www.cvrreg.com
AMERICAN FINANCIAL & AUTOMOTIVE SERVICES, INC.
(800) 967-3633 FAX: (832) 813-0538
Principal Business: Dealership Development & F&I Products
Contact: Laura Hetland
www.afasinc.com
AUTO DEALERS EXCHANGE
EXCHANGE
(317) 352-0121
Principal Business: Auto Auction
Contact: Terry Goins
AUTO/MATE DEALERSHIP SYSTEMS
(877) 805-9446 FAX: (518) 688-2481
Principal Business: Dealership Management System (DMS)
Contact: Mike Esposito
www.automate.com
AUTOMOTIVE DEVELOPMENT GROUP
(847) 612-9361
Principal Business: Business Development & Growth
Contact: Bill Kelly
www.adgtoday.com
AUTOTRADER.COM
(317) 372-1572 FAX: (317) 845-0528
Principal Business: Advertising Media
www.autotrader.com
BOSE MCKINNEY & EVANS LLP
(317) 684-5000
Principal Business: Law Firm - ADAI Retained Counsel
Contact: Ron Smith
www.boselaw.com
BROAD RIPPLE GROUP, LLC
(408) 368-7138
[email protected]
Principal Business: Marketing & Strategic Communications
Contact: Molly Butters
www.broadripplegroup.com
CONSTELLATION ENERGY
(317) 231-6827 FAX: (317) 231-6900
Principal Business: Natural Gas Marketing
Contact: Adam Tracy
www.constellation.com
CONSTRUCTION PLANNING
PLANNING & MANAGEMENT, INC.
(317) 842-8046
Principal Business: Construction
Contact: Amy Forster
www.cpmconstruction.com
CURRY ENTERPRISES, INC.
INC.
(800) 421-9361 [317-357-8671] FAX: (317) 352-9399
Principal Business: Auto Dealer Supply Company
Contact: Tim Curry or Sean Curry
DEALERTRACK Registration & Titling Solutions, Inc. (RTS)
(formerly TriVIN)
(888) 346-3087
Principal Business: Vehicle Registration & Titling Solutions
Contact: Jeremiah Hale
www.dealertrack.com/rts
DIVERSIFIED VEHICLE SERVICES, INC.
(317) 862-9100 FAX: (317) 862-7689
Principal Business: Auto Redistribution
Contact: Ray Ramsey
ENCOMPASS DEALER SERVICES
(765) 969-1692
Principal Business: F&I Products, P&C Insurance, Employee
Benefits, Sales & Marketing Programs, Recruiting & Training
Contact: Terry Schwer
www.encompassdealer.com
ENVIROTEST TITLING & REGISTRATION
(219) 661-8220 FAX: (219) 661-8409
Principal Business: Vehicle Titling & Registration
Contact: Jennifer Kharchaf
www.ETRIndiana.com
FIFTH THIRD BANK
Principal Business: Commercial & Indirect Lending
www.53.com
FINANCIAL RECOVERY STRATEGIES
STRATEGIES (FRS)
(501) 240-1550 FAX: (501) 225-0134
Principal Business: Class Action Settlements & Cost
Recovery Solutions
Contact Greg Donaldson [email protected]
www.frsvs.com
FIRST MERIT BANK
(779) 770-7253 [email protected]
Principal Business: Commercial & Indirect Lending
Contact: James “Andy” Darling
www.firstmerit.com
FORT WAYNE AUTO TRUCK AUCTION
(260) 422-9577
Principal Business: Auto & Truck Auction
Contact Ms. Chris Walsh, GM
www.fwata.com
HUNTINGTON NATIONAL BANK OF INDIANA
(317) 229-4070 FAX: (317) 299-4007
Principal Business: Banking
IN Regional Mgr.: (317) 229-4051 Clint Sommer
Commercial Portfolio Mgr.: (317) 229-4037 Eric Seiler
INDIANA AUTO AUCTION
(219) 489-2776
Principal Business: Auto Auction
Contact: Eric Autenrieth
INTERSTATE NATIONAL DEALER SERVICES
(678) 894-3500 FAX: (770) 952-9275
Principle Business: Service Contracts
Contact: Breanne Morley
www.inds.com
IVY TECH COMMUNITY COLLEGE
(317) 921-477 FAX: (317) 921-4246
Principle Business: Ivy Tech Community College
Contact: Ron Finney & Thomas Ayer
www.ivytech.edu/indianapolis/
KATZ, SAPPER & MILLER, LLP
(317) 580-2000 FAX: (317) 580-2117
Principal Business: Certified Public Accountants
Contact: Jeffrey D. Taylor
www.ksmcpa.com
NOVEMBER/DECEMBER
PAGE 31
ALLIED MEMBERS (CONTINUED)
KATZ & KORIN, P.C.
(317) 464-1100
Principal Business: Law Firm, ADAI Forms Package
Contact: Donn Wray
K.B. PARRISH & COMPANY
COMPANY
(317) 347-5200 FAX: (317) 347-5211
Principal Business: Certified Public Accountants
Contact: Ryan Keith
www.kbparrish.com
KESLERKESLER-SCHAEFER AUTO AUCTION, INC.
(317) 297-2300 FAX: (317) 297-6234
Principal Business: Auto Auction Every Thursday
Contact: Steve Kesler
www.ksaa1.com
KEY BANK - DEALER SERVICES
(317) 974-3711 FAX: (317) 464-8022
Principal Business: Commercial Dealer Finance & Community Banking
Contact: Kevin Ringenberg
www.key.com/dealer
KPA
(866) 356-1735 FAX: (866) 281-2788
Principal Business: On-site Dealership Specific Environmental Health& Safety Compliance
District Manager: Nick Hardesty (Cell: 816-679-4006)
EPA Info: Zach Pucillo (Cell: 317-201-2335)
www.kpaonline.com
KRIEG DEVAULT LLP
(317) 636-4341 FAX: (317) 636-1507
Principal Business: Law Firm
Contact: Brett J. Ashton
Www.kriegdevault.com
MALLOR / GRODNER ATTORNEYS
(812) 332-5000 FAX: (812) 961-6161
Principal Business: General Legal Practice
Contact: Geoffrey M. Grodner
www.lawmg.com
MANHEIM’S INDIANAPOLIS AUTO AUCTION
(317) 862-8622 FAX: (317) 862-7526
Principal Business: Auto Auction
Contact: Chuck Warner
MICHIGAN COMMERCIAL INSURANCE MUTUAL
(877) 925-9911 or (941) 925-9911 FAX: (941) 925-7284
Principal Business: Workers Compensation Insurance
Contact: Laurie Zdanis
Www.mcim.com
THE OAK GROUP
(630) 833-9770
Principal Business: F & I Computers, Credit Insurance,
Service Contracts, F & I Consulting & Training
Contact: Eric Peterson
www.theoakgroup.com
ONEONE-VIEW, INC.
(317) 915-9039 FAX: (317) 915-9045
Principal Business: Data Archiving for Auto Dealers
Contact: David DeHaven
www.one-view.com
PLUNKETT COONEY, P.C.
(317) 974-5744 FAX: (317) 964-2744
Principal Business: Law Firm
Contact: Bill Ivers or Mike Shanahan
www.plunketcooney.com
SPECTRIO
(800) 584-4653 FAX: (727) 787-2582
Principal Business: Information on Hold
Contact: Joe Martin
www.spectrio.com
PNC BANK
(317) 267-3720 FAX: (317) 267-6156
Principal Business: Floor Plan / Indirect Lending
Contact: Todd Scott
www.PNC.com
SPEEDWAY LLC
(937) 668-4727 FAX: (419) 427-4144
Principal Business: Convenience Store / Gas Station
Contact: Derrick L. Foward
www.superfleet.net
PROTECTIVE ASSET PROTECTION
(800) 794-5491
Principal Business: Vehicle Protection Plans, GAP Coverage,
Credit Insurance, Limited Warranty Products, Dealer Participation Programs and F & I Training
Contact: Brad Hayes [email protected]
www.protectiveassetprotection.com
UNITED SURETY AGENTS, INC.
(800) 467-2245 FAX: (317) 254-1234
Principal Business: Auto Dealer Surety Bonds
Contact: Tony Widgery
www.unitedsuretyagents.com
RESOURCE DEALER GROUP
GROUP
(317) 956-9418 FAX: (312) 356-7867
Principal Business: Dealership Consulting, Training and F & I
Profitability
Contact: Matt Mahar [email protected]
www.resourcedealergroup.com
RESOURCES MANAGEMENT GROUP
(800) 761-4546 FAX: (808) 452-7458
Principal Business: F & I Provider and Development
Contact: Gregory Hoffman
www.corprmg.com
RICOP CONSTRUCTION CO.
(614) 444-1070 FAX: (614) 444-1090
Principal Business: Commercial Construction
Contact: Jessica Jones
www.ricop.com
ROUTE ONE
(248) 862-7003
Principal Business: Web-based Credit Application Management System
Contact: Scott Johnsen
www.routeone.com
ROWLEY, BUSHUE & COMPANY,
COMPANY, LLP
(219) 874-1437 FAX: (219) 874-1438
Principal Business: Certified Public Accountants
Contact: Mark Rowley
www.rbcllp.com
SHREDSHRED-IT
(317) 876-3477 FAX: (317) 876-3738
Principal Business: Mobile Paper Shredding & Recycling
Contact: LaMonica Costello
www.shredit.com
SHEPHERD INSURANCE & FINANCIAL SERVICE
(800) 846-0204 or (317) 846-5554 FAX: (317) 571-0388
Principal Business: Employee Benefits Insurance
Contact: Aimee Firebaugh [email protected]
www.shepherdins.com
SOMERSET CPAs, P.C.
(317) 472-2230 FAX: (317) 208-1200
Principal Business: Accounting/Consulting
Contact: Jane Saxon
www.DealershipCPAs.com
US BANK
(760) 200-1110 FAX: (949) 756-8616
Principal Business: Dealer Commercial Services
Contact: Buzz Helsel
www.usbank.com
VERNON GENERAL INSURANCE
INSURANCE CO.
(317) 546-5281 FAX: (317) 685-1028
Email: [email protected]
Principal Business: Credit Life/GAP Insurance
Contact: Marty Murphy
WALT GARNER ASSOCIATES,
ASSOCIATES, INC.
(800) 851-8090
Principal Business: Cancer Insurance, Intensive Care, Dread
Disease, Heart & Stroke, Life Insurance, Long term Care &
Disability Insurance
Contact: Tammy Toll
www.waltgarnerassoc.com
WELLS FARGO DEALER SERVICES
(317) 417-6052 FAX: (866) 608-9362
Principal Business: Wells Fargo Dealer Services
Contact: Barry Jackson
www.wellsfargo.com
ZURICH
(317) 416-2705 FAX: (913) 498-5359
Principal Business: Insurance
Contact: Adam Diemer
www.zurichna.com/FandI
PRSRT STD
AUTOMOBILE DEALERS ASSOCIATION OF
INDIANA (ADAI)
U.S. POSTAGE
PAID
150 West Market Street
Suite 812
Indianapolis, Indiana 46204
Permit #4747
Indianapolis, Indiana
Phone: 317-635-1441
Fax: 317-685-1028
Email: [email protected]
The Showroom is the official publication of the Automobile Dealers
Association of Indiana, Inc.. It is intended to provide accurate and
authoritative information on the subject matter covered and is distributed with the understanding that the association is not rendering
legal, accounting , or other professional services and assumes no
liability whatsoever in connection with its use.
2015
ADAI EXECUTIVE COMMITTEE
PRESIDENT Nick Dellen, Dellen Automotive Family - Greenfield
VICE PRESIDENT Harry Tepe, Tom Tepe Auto Center, Inc. - Milan
ADAI …. The eyes, ears and VOICE
of Indiana’s Franchised
New Vehicle Dealers!
TREASURER Nick York, York Automotive - Greencastle
SECRETARY Chris Coyle, Coyle Chevrolet, Inc. - Clarksville
IMMEDIATE PAST PRESIDENT Kevin McCubbin, McCubbin Ford, Inc. - Madison
ITDA CHAIRMAN
Jacob “Jake” Nichols, Palmer Trucks. - Indianapolis
See our Web Page
for past issues
and other
information!
www.adai-inc.org
MDAI CHAIRMAN
Bill Starkey, Flat Out Motorcycle - Indianapolis
STAFF
Marty Murphy - Executive Vice President
Mary Ellen Phillips - Membership/Services Manager
Cindy Wagner - Regulatory Advisor
Connie Dixon - Vernon General Insurance