Oregon Dealer News
www.oiada.com - 1-800-447-0302
January 2012 Oregon Independent Automobile Dealers Association
Representing all Auto, Truck, Trailer, RV, and Power Sport Dealers of Oregon
OIADA Figureheads Gaining
National Influence (pg 5)
Young Drivers Expected to Increase
Newer-Model Sales (pg 8)
Welcome: Bobbi Cockeram!
A valuable asset to independent
dealers state-wide (pg 12)
Every lane Every Week
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Political Action Committee
Executive Director Viewpoint
CNW: Days’ Supply of Used Models Softening
Need to Know 9
Legislative Report 11
Introducing: Bobbi Cockeram 12
Used Sales Surge in 2011 17
OIADA Education Calendar 18
Oregon Dealer News Corner 18
Associate Member List 19
Read and Response 20
OIADA must be a constant presence in monitoring current legislation within our state. We need
to interpret legislative activity that may impact our industry. It is the association’s responsibility to
maintain an ongoing relationship with governmental officials and regulatory agencies. Your voluntary
PAC contribution helps our legislative representatives work for you, the independent auto dealer.
OIADA has worked on many issues affecting dealers such as stopping the 3 day right of rescission,
getting temporary motorcycle permits that actually fit on the rear plate area, extension of DEQ slips
from 90 days to 180 days, all new broker disclosure forms, new silver dealer plate that makes us really
look like a dealer, opposing no sales on Sunday, saying no to a big increase in DMV fees, as well
as ongoing dealings with regulatory agencies, just to mention a few. An added benefit to making a
political contribution is the Oregon Tax Credit. You can take this directly off your state tax liability.
The credit is $50 for an individual and $100 on a joint return.
We thank you for understanding the importance of a strong presence within our Legislature. Please
remember the next time you renew your membership to consider your PAC contribution.
2012 oiaDa executive Committee oiaDa Staff
Gary Sargent, marc Huchette
President executive Director
Sargent’s motorsports firstname.lastname@example.org
10207 Se Foster Road
Portland, oR 97266
503-775-9445 Fax 503-777-9886
Dan nicholson (CMD), melissa Durnell
executive Vice President accounting Consultant
Central oregon motors email@example.com
1123 n 6th Street
Redmond, oR 97756
Bryan Steward, Wendy Riggi,
1st Vice President administrative assistant
aaa oregon autoSource Wendy@oiada.com
6 SW Centerpointe Dr. #100
lake oswego, oR 97035
503-973-6570 Cell 503-709-3835
2nd Vice President Valerie Dominici
Blizzard motors, inc. Dealer Relations
1604 e. Burnside VDominici@oiada.com
Portland, oR 97214
Greg Gage (CMD)
Gage auto Sales Committee Chairs
13432 Se mcloughlin Blvd.
milwaukie, oR 97222
Legislative: Lisa Larkin
503-652-0006 Education: Vince Powell
Fax: 503-652-6110 Image: Tom Collier
firstname.lastname@example.org Past Presidents: Glen Rardin
Chairman of the Board
Cars & trucks 4 U Oregon Dealer News is a publication of the Oregon Independent
Po Box 1496 Auto Dealers Association, 1475 Capitol St. NE, Salem, OR 97301
and is published every month. The association was established
Redmond, oR 97756
in 1948, chartered as a non-profit organization in Oregon
541-419-8088 and is affiliated with the National Independent Auto Dealers
email@example.com Association. Advertising rates may be furnished upon request.
tommy Wilson The statements and opinions expressed herein are those of
Secretary the authors and do not necessarily represent the views of the
tommy Wilson motor Company, llC/ Oregon Independent Auto Dealers Association. Likewise, the
appearance of advertisements or the identification as members
9215 SW Canyon Rd.
of OIADA does not constitute endorsement of the products or
Portland, oR 97225 services featured.
503-629-6000 *For advertising information please contact OIADA at
2 | OIADA December 2011
With the President
HERE IS FOOD FOR THOUGHT AS WE ALL ARE
When is too much information too much?
This is a perplexing question as we equate information knowledge to being
educated. In relation to our industry, in my opinion we are currently at the
Gary Sargent crossroads of too much information being available resulting in potentially
Sargent’s Motorsports diminishing the value of every vehicle on the road.
Case in point: every day thousands of consumers vehicles are being repaired in
body shops across North America by insurance claims. Many of these vehicles have
industry-accepted repairs preformed on the vehicles uni-body frame. Every repair
“Sharing of part to repair these vehicles is being ordered using the vehicles VIN number. Then
these parts bills and repair bill claim information is sold by the insurance companies,
information of an OEM Dealers, and the body shops to Carfax, Auto Check, etc.
accepted repair This sharing of information of an accepted repair practice is a form of branding
the vehicle. The title to the vehicle is not branded but the vehicle now has a negative
practice is a form branded vehicle history! Thus, after the vehicle is repaired in a body shop bringing
of branding the it back to its pre-accident condition as guaranteed by the insurance policy is in fact a
false statement. The negative vehicle history created by the industry accepted repair
vehicle ” lessens the value of the vehicle, which translates to the consumer’s entitlement to
compensation for the diminished vehicles value above and beyond the repair.
Whose responsibility is it to make the consumer aware of the diminished value
done to their vehicle after the repair is done that has been created by this type of
Now shift gears and think about this scenario:
Unknowingly as a dealer you take in trade a vehicle that has had an accepted
insurance industry repair performed on it to its uni-body frame. You decide to clean
your deal up by sending the trade-in to the auto auction. It sells and then you find
out it was rejected because of Frame Damage.
YES, the insurance companies accepted uni-body frame repairs are defined by
most auto auction rules as Frame Damage. Sadly, in a roundabout way Carfax and
Auto Check receive that information too, resulting in further branding the vehicle’s
history. So, now what? Your vehicle is now potentially branded as having “Frame
Damage” in its vehicle history report.
I ask again, when is too much information too much?
OIADA January 2012 | 3
Happy Holidays and a Better 2012
From Automotive Profit Builders
GROWING TO HELP YOU GROW!
INTRODUCING OUR NEW ASSOCIATE AGENTS
TIM GRAVES STEVE PURYEAR
Tim is based in the Portland Area. Years of experience Steve is based in Salem. Also years of experience as a
in running dealerships as well as training ﬁnance people. hands on ﬁnance expert and dealership leader.
Cell (503) 943-0473, Cell (503) 551-3902,
email firstname.lastname@example.org email email@example.com
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2. Xtra Ride RV, Motorcycle, Power sports and personal watercraft coverages.
3. Protective GAP Insurance – The only independent GAP Company in Oregon that pays
up to $1000 of the customer’s deductible.
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THE BEST PEOPLE – Our promise to you: Our agents Walk the Walk. We don’t just bring you
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Shannon Meany, President
Eugene and South, Based in Medford
(541) 944-9186 • fniproﬁt@gmail.com
The Power of your Membership
It’s a new year and we are very excited about all of the new products we are
going to be bringing our members in 2012! We are also going to be launching
some new services for dealers which will really give them a leg up on the
competition. 2011 was a great year for the organization and many strides were
made. Our membership has grown and we actually set an all-time record for the
organization with 29 new members in one month. Our education classes are
increasing in size and we are branching out into all areas of the state. Starting in
March, the Dealer Pre-Licensing class will be available everyday here in the Salem
office and eventually in Portland; this will make it much easier for prospective
Marc Huchette dealers to get their quality education in those two areas. We are also going to
Executive Director launch the Oregon Certified Dealer program endorsed by NIADA. This program
will contain a higher echelon of training and will be a stepping stone to the
“Certified Master Dealer” program put on by NIADA and Norwood University.
OIADA is very excited about this endeavor and are even more excited to promote
this to consumers across the state. We have also added a Compliance and F&I
class and will be rolling out an “Auction Boot Camp” class in conjunction with
the auctions. Another program we are going to be launching in March is our
new Forms and Dealer Management software which is going to be free to our
members. It will simplify your forms, inventory management and also give you the
ability to print digitally or on existing forms.
On the national front, I was very humbled to be selected to
be on the NIADA National Advisory Council. This position
“We are very excited allows me to really carry forward the concerns of the dealers in
about all of the new the state, the ability to meet with national leaders of the industry
to help solve problems, and most of all to ensure our members’
products we are going needs are met. Another honor bestowed up OIADA was our very
own President, Gary Sargent, was selected to be on the NIADA
to be bringing our Executive Committee as Region 4 Director. This is an extremely
high honor and we are very proud that he will be representing this
members in 2012 ” state and many others in that position. Once again, thank you so
much for your support and please feel free to contact me with any
questions, concerns, or suggestions.
OIADA January 2012 | 5
6 | OIADA January 2012
Tackling the Basics of the haven’t already, renewing your focus on basic blocking and
tackling at your dealership can help keep your operations
Used Car Business
effective, profitable and sustainable.
Looking closely at the basics of your sales process,
By Michael Linn offering better customer service, inventory controls,
Vince Lombardi, arguably the greatest coach in football personnel, marketing, F&I, regulatory compliance or
history, did not rely on complicated game plans or trick plays collections can often be the difference between success and
to win games. failure. These areas and more can easily get disjointed if the
basic aspects are overlooked.
Lombardi’s approach was simple. How simple? To begin
his first practice as head coach of the Green Bay Packers, In this issue, we begin with the most basic of the dealer’s
he gathered his players, held up the ball and told them, jobs: Sales. Nothing can happen if you don’t sell cars. Our
“Gentlemen, this is a football.” features include Sales 101, the basics of the process (page
18); some tips on how to go above and beyond in selling
The idea was to get back to the basics. Figure out the (page 28); and a look at the differences in the sales approach
fundamentals. Focus on them, practice them, work on them from a Buy Here-Pay Here perspective.
until you have perfected them, then practice some more.
Because in the end, blocking and During the year, our series will
tackling is what wins. also include issues dedicated to
That lesson applies to the used
car industry as well. While there are
“Championships are won on operations, marketing, compliance,
service, BHPH and F&I, among
all sorts of variations to each of fundamentals Some people other topics.
We will challenge you to review
the many roles a dealer takes on in
running his business, each part of try to find things in this your business practices and ask basic
questions about your operations and
the dealership is driven by certain
fundamentals that apply to every game that don’t exist, but why those practices are in place. If
the answer is, “That’s just the way
situation. The basics of customer
service, or sales, or collections never football is only two things – we’ve always done it,” you might
want to take our challenge, ask tough
So for 2012, Used Car Dealer
blocking and tackling ” questions and look for ways you can
get Back to the Basics.
Magazine is going to take a cue
from Lombardi and go “Back to the - Vince Lombardi This month we also feature a
Basics,” our magazine’s theme for look ahead to an industry event –
the year. the NADA Convention & Expo
at the Las Vegas Convention Center. This year, for the first
Gentlemen – and ladies – this is a car dealership! time, the NADA event is being held in conjunction with the
In a yearlong series, we’ll focus on the fundamentals of American Truck Dealers Convention. The combined event
the business. Each month we’ll feature the blocking and is expected to draw almost 500 exhibitors and more than
tacking of a different aspect of the dealership, emphasizing 20,000 attendees.
the basics that create success. If you’re one of them, make it a point to stop by the
And these days, that’s more important than ever. With NIADA booth (No. 2345) in the Expo Hall. We’ll be there
the economy still shaky and a legion of new regulations and to talk about NIADA’s Certified Master Dealer program, the
increased government scrutiny raising the consequences of NIADA Certified Pre-Owned Vehicle program, our Annual
slipping up, mastering the fundamentals is vital. Convention in June (also in Las Vegas) and the many benefits
Though we have seen some bright spots in the recovery that come with NIADA membership.
of the economy, one common thread among dealers who Here’s wishing all of you a Happy New Year from all of
have seen their way clear through economic uncertainty has us at NIADA!
been a renewed focus on basic business practices. If you
OIADA January 2012 | 7
CNW: Days’ Supply of Used Models Softening Even Further
By Art Spinella
CNW Research’s latest used-vehicle supply findings average transaction price to $10,855, up 2.9 percent versus
concur with several other assertions from wholesale analysts year ago,” Spinella highlighted.
— it’s not going to be easy for managers to keep their used “It also is a gain of nearly 3 percent versus December
inventories stocked. 2011,” he added.
Even with trade-ins climbing because of greater new- “If the rest of this month reflects historic first-half of
vehicle sales, CNW revealed on Tuesday that the industry January trends, the industry will sell in the 2.17 million unit
remains at a 45-days’ supply of used vehicles. neighborhood this month, or 8.2 percent ahead of last year’s
Highlighting just how significant the supply dearth is, 2.01 million,” Spinella went on to estimate.
president Art Spinella noted that January is In terms of age, CNW noted the hot
“There is a return of
running at a 44.3 days’ supply, lower than products are still the one- to six-year-old
any month of 2011. For comparison, the rides, but the supply is tight.
level stood at 50.7 days in January of last
year. younger consumers to Older models — more than 10 years old
CNW recollected that having a 70 to
80 days’ supply in the early 2000s was not
the used-car market — are lagging somewhat based on CNW’s
monthly segment tracking surveys.
uncommon. In fact, used supply hit 86 which should perk up “There is a return of younger consumers
to the used-car market which should perk
days’ in November of ’08.
“Dealers continue to struggle finding
the over-10 year old up the over-10 year old sales numbers in the
coming months,” Spinella surmised.
the right vehicles for their inventory,”
sales numbers in the “Pickups are gaining in market share
“It was once thought that having a 45 coming months ” while small cars are diminishing,” he
continued. “This could change if gasoline
days’ supply was ‘ideal,’ but that figure is prices rise dramatically, but for many of
now considered far too low for most dealerships. The likely the 20-somethings, a move to anything newer than what they
ideal level is in the low 50 days,” he explained. currently drive will improve fuel economy and offset all but
CNW determined that small-car supply — just like on the massive fuel price increases.
new-vehicle side — continued to shrink as a share of total Based on how January is unfolding, CNW noted that
sales while full-size pickup inventories rose to its highest level dealers should expect sales for the year to settle into the high-
of the year in December. 30 million or even 40 million units.
“Estimated sales for January shows small cars again
declining to about 16 percent of sales while pickups should Primary Drivers’ Median Age Tells a Tale
take more than 13 percent,” Spinella projected. Also contained with its latest report, CNW delved into a
discussion about the connection between the age of the driver
Early January Sales Trends and what brand that buyer chooses.
Looking at how used sales are shaping so far this month, “It’s not uncommon to read about the average or median
CNW indicated that private-party sales continue to increase as age of buyers for a particular model, but that often skews the
a share of total sales, running more than 26 percent ahead of results of who, actually, drives the car,” Spinella explained.
January of last year.
“Lexus commercials during the Christmas season are a
Spinella pointed out that franchised dealer used sales are case in point: Buy a Lexus as a present for a spouse or lucky
up about 4 percent in the opening half of the month while teenage child,” he continued.
independent dealers saw a near 3-percent decline.
“So, in many cases, seeing the median age of the actual
As demand increases, CNW said dealers are beginning to primary driver of a vehicle can tell a lot about the ability of a
see prices firming. manufacturer to reach an older or younger audience,” Spinella
“For example, franchised dealers’ average used-car asking added.
price in January is about $11,516, and they are getting more With that explanation in mind, CNW determined that
than 94 percent of that asking price for vehicles bringing for the industry as a whole, the age of primary drivers of
8 | OIADA January 2012
Phase 2 ATV Safety Requirements Effective January 1
The second requirement of a two- organization is providing the course.
phased all-terrain vehicle (ATV) safety OPRD is working with the non-profit
program becomes effective January 1, 2012 providers to pay the majority of the out-
for youth younger than 16 riding ATVs on of-pocket expense to the parents.
public lands, Oregon Parks and Recreation The ATV safety requirements are
Department (OPRD) today announced. designed to cut down on injuries to young
Phase 1 of the program was introduced riders. “Anyone who rides an ATV knows
in January 2009, after the Oregon that they can be dangerous. Learning
Legislature passed safety legislation how to ride an ATV safely, demonstrates
introduced by rider groups in 2007. Phase a respect for the machine and its
1 requires anyone operating an ATV on capabilities,” said John Lane, OPRD’s
public lands in Oregon to carry an ATV ATV Safety Education Coordinator. Lane
safety education card, demonstrating that emphasized that the safety requirements
they have completed a free online safety pertain only to public lands in Oregon, not
awareness course (www.RideATVoregon. private property. Lane also urged riders
org). Over 150,000 ATV enthusiasts to get their hands-on training soon to
have completed the course since it was avoid the rush. “With about 100 trainers
introduced. This requirement is still being statewide, training classes could be hard to
phased in so that by 2014, all riders on find if all riders want to get trained at the
public lands, regardless of age, will need same time.”
to complete the safety course and carry their ATV Safety If a youth rider has already completed hands-on training
Education Card. and the online safety awareness course, they may apply for a
Phase 2 begins January 1, 2012, when riders on public new card with the endorsement at www.OregonOHV.org/
lands under the age of 16 must complete both the on-line OPRD/ATV/docs/Previously_Trained_application.pdf.
course and a “hands-on” training course designed for the To find a hands-on training provider, go to OPRD’s
type of ATV or off-road motorcycle they ride. When they training locator at www.rideATVoregon.org/training. For
have completed the second training, they will be sent new questions or to have forms sent in the mail, call the toll- free
“endorsed” ATV Safety Education Cards free. The cost of ATV hotline: 1-877-7SAFELY (877-772-3359).
the course and its duration can vary depending on which
CNW: Days’ Supply of Used Models Softening Even Further ...continued from p.8
vehicles acquired in 2011 was up nearly 5 percent to 50.8 years As CNW has pointed out in the past, Toyota and Honda
compared to 48.4 years back in 2005. buyers and drivers have been getting older for a decade or
“Much of that is a reflection of the recession cutting many more.
consumers out of the new-car market.” Spinella pointed out. “Some of this can be attributed to younger consumers
Overall, CNW found that Ford has seen a 10-percent not wanting to own ‘my father’s Camry or Accord’ and part
decline in the average age of its primary drivers since 2005, is some less than inspiring mainstream models,” Spinella
from 58.4 years to 52.5 years. indicated.
“Much of that is a reflection of a strong message to CNW found Toyota median age is now up to 51 years —
younger consumers with Fiesta and high use of social media,” older than Chrysler and approaching Ford.
Spinella surmised. Honda is up to 53.5, compared to 47.6 in 2005 and a full
At 55.4 years, CNW determined the typical General Motors year older than Ford buyers.
primary driver is about 6.5 percent older than he or she was in By moving upscale with its product line, CNW mentioned
2005. Hyundai has seen the age of primary drivers climb 12.6
“Blame the lack of Saturn and Pontiac for the rise. Among percent — “on purpose,” according to Spinella.
the brands still in the stable, most have seen a decline in Now at 42.4 years, “it remains among the youngest brands,
median age,” Spinella said. but is now in the demographic sweet spot,” he added.
OIADA January 2012 | 9
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Legislative Report - Adverse Section Removed From Bill – For Now
December’s legislative recess has current Congress’ Senate version of order of priority, a three-fold strategy
come and gone, and our focus now that bill. with respect to Section 310, seeking
turns to the presidential election year NIADA’s review of S.3302 during first to have the section deleted; or
of 2012. In addition the tug-of-war the last Congress identified Section second, to amend it, addressing as
between Congress and the President 310 as a provision of concern. That many of the concerns as possible;
over the confirmation of Richard section would prohibit the sale or lease or third, to seek clarifying report
Cordray to the Consumer Financial of a used motor vehicle until the dealer language, especially regarding the
Protection Bureau and the many notifies, in writing, the purchaser or Secretary’s discretion and process for
other legislative and regulatory topics lessee of any defects to the vehicle implementation.
we are keeping tabs on, we wanted that have not been remedied. The In the end, while NIADA was not
brief you on S. 1449, one of our prohibition would not apply if the able to get the provision stricken from
legislative priorities for this year, and defect is remedied before delivery the bill, it did get language included
our continued efforts to minimize its under a sale or lease, or if notification in the definition of dealer to exempt
effects on our dealers. enforcement is set aside in a civil “mom and pop” operations, and a
S.1449, the Motor Vehicle and action, or if the recall infraction was commitment to work with staff on
Highway Safety Improvement Act not accessible at the time of the sale or addressing the scope and process
Senator Mark Pryor (D-Ark.), lease using criteria established by the regarding the Secretary’s proposed
chairman of the Subcommittee Secretary of Transportation. A dealers exemption authority.
on Consumer Protection, Product was also defined in the bill to mean As noted previously, that bill died
Safety and Insurance of the Senate a person who sold motor vehicles to at the end of the Congress. Since
Committee on Commerce, Science consumers. Lastly the bill said used then, NIADA has continued working
and Transportation, introduced this car auctioneers could be exempted with various subcommittee members
bill July 29, 2011, with five cosponsors. by the Secretary “to the extent that – Senators Pryor, Boxer, Klobuchar,
The Motor Vehicle and Highway Safety the exemption does not harm public Udall, Thune, and Ricker – and staff
Improvement Act of 2011, also known safety.” on their redraft of the bill for the
as “Mariah’s Act,” reauthorizes highway Section 310 raised a number of current Congress. As a result of those
and vehicle safety programs under concerns: advocacy efforts, Section 310 was not
the National Highway Traffic Safety • The onus would be placed on included in S.1449, and the bill made it
Administration (NHTSA). This agency dealers to know of all defects of a through the committee markup process
is charged with ensuring compliance vehicle. in December without change, though
with safety standards, investigating provisions still could be added when it
• The issue of who remedies the
safety defects and working with reaches the Senate floor. In addition,
defect and pays the associated
automakers on recalls. Additionally, House action on the issue has not
its highway safety mission consists of yet materialized. The bottom line is,
safety and research programs designed • The “in writing” notification to the advocacy efforts must remain constant
to decrease vehicle deaths and injuries potential purchaser or lessee and and vigilant.
by changing driver behavior regarding the attendant risks of liability to the
dealer. Additionally, in previous Congresses
drunk driving, distracted driving and the NHTSA reauthorization legislation
child seats. • The discretion of the Secretary of
has been handled in separate legislative
Transportation regarding general
During the last Congress, a similar vehicles. Given the sensitivity regarding
and auctioneer exemptions.
bill – S.3302, the Motor Vehicle enactment of bills in general, that
Safety Act of 2010 – was introduced • The definition of dealer, especially might not be the case this Congress.
by Senator John D. Rockefeller how it relates to “mom and pop” The bills could very well end up as part
(D-W.Va.), chairman of the Senate operations. of a package of “bigger” bills, such as
Commerce, Science and Transportation Because of these concerns, the reauthorization of the federal aid
Committee, but no floor action ensued NIADA worked with the staffs of the highway program, or, again, die at the
and, primarily due to the result of the subcommittee members. By engaging end of the Congress with NHTSA
November elections, the bill died at in several meetings and follow-up having received its funding via the
the end of the Congress. S.1449 is the conference calls, NIADA pursued, in appropriations process.
OIADA January 2012 | 11
Introducing: Bobbi Cockeram
Born and raised in Eastern Oregon in the little town of Vale,
Dealer-to-Dealer and Dealer-to-
Bobbi worked for the local GMC dealership in Ontario, Oregon Consumer Mediation
at the age of 18 selling to the local “Good ol’ boys” farmers and Title Training
ranchers. This is where her love for the Auto Industry started.
CarFax and Auto Check Cleaning
She relocated to the Portland area in 1996 where she entered
her career as a “Title and Registration Specialist.” It was a very Lost Duplicate Titles (in all states)
challenging time back then as there were no classes or training Title clerk fill-in
of any sort, so after years of hard work, dedication, and making
it her business to become as knowledgeable as she could from Dealer Setups
whatever resources she could find, she successfully graduated Title Preparation/Processing
from the school of “Hard Knocks,” and took off in the world as Notary Services
an independent Auto Dealer Consultant/Title and Registration
Specialist for Oregon auto dealers. Bobbi has not only had the Book Keeping Services
opportunity to work with Oregon auto dealers, but with Dealer Title Corrections/Problem Titles
Auctions, and several other states dealers as well. Additionally,
V-3 Training/ Setup
she is well versed in other state laws and DMV statues. Bobbi
started instructing Title and Registration classes as well as Pre- Deal Jacket Compliance Audits
licensing Courses and other forms of Continuing Education for us
at the OIADA 3 years ago and the classes just keeping better and Bobbi L Cockeram
bigger. She brings to us a great deal of knowledge and experience Po Box 727
to our members and staff. We are very excited about partnering Gladstone, Or 97027
with Bobbi. Her addition to the team has taken our educational 503-810-5535
and consulting programs for our members to the next level. firstname.lastname@example.org
hecht_autoins_ad_final_out.indd 1 2/3/11 10:23:10 AM
F & I Consulting Firm partners with OIADA
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• Auto Deductible Reimbursement • Key Replacement • Gap Insurance
• Vehicle Service Contracts • Warranty Programs • Road and Tow
• Mechanical Breakdown Insurance • GPA Tracking & Payment Assurance • Tire and Wheel
If they don’t have what you need, they will find it or try to create it for you. Now you can work with ONE
representative and ONE company for ALL your auto aftermarket products.
Learn more at www.milehighconsultinginc.com or call (720) 838-7400.
Need to Know
A Look at the New Year’s Used Car Market
The trend toward strong used vehicle values looks like it’s continuing. Kelley Blue Book anticipates used-car values to
increase 3% to 5% in the first quarter of 2012, with gains continuing into the second quarter.
Values were flat through the first two weeks of January; although, a handful of segments have started to increase earlier
than originally anticipated. Non-luxury cars and crossovers increased between $50 and $100 in the past week alone, and they
will likely continue to rise in the weeks and months ahead. A lull in lease returns and an aging fleet of vehicles on the road
are expected to keep prices high through most of this year; potentially higher than the record levels established in 2011.
Used car sales reached nearly 38.8 million in 2011, up 5.2% over the previous year, with December seeing particularly strong
sales. Private party sales continued their gain, as more consumers use free internet sites to find used cars.
Used Values Ended 2011 Up Nearly 4% Year-Over-Year:
Should remain strong this year, especially since lease returns at all-time low.
W/ Expected Lack of Lease Returns at Auction:
Projecting used-car values to increase 3% to % through Q1 of 2012 alone.
Most Significant Gains Likely Continue to Come from Compact Cars and Crossovers:
Values for 1- to 3-year-old compact cars 15% higher today than in January 2011, compact crossovers up more than 5%.
OIADA January 2012 | 13
Is Your Dealer Policy a “Keep Your
statement let me back up and explain a couple of types of
dealer insurance coverage’s.
Customer Happy Policy”?
The dealer insurance policy typically provides for many
different coverage options. One of these options is Garage
Keepers Insurance. This coverage is very inexpensive yet
How often do you take a customers vehicle into your
useful if there is ever a chance that you take possession of a
possession for either a few minutes or for a week? Are you
customer’s vehicle. This coverage also comes in one of two
responsible for your customer’s vehicle while it is in your
forms. The coverage either comes as a “Legal Liability” form
care? Is your customer’s vehicle covered by your dealer
or as a “Direct Primary” coverage form.
insurance policy while it is in your care?
The Legal Liability coverage form typically will extend
These are all valid questions. However, I started with
coverage only if you are “Legally Liable”. And, it is at times
the first question “Is your policy a Keep Your Customer
secondary to the customers own insurance policy. Frequently
happy policy?” for a good reason. But, before I clarify that
found with this type of coverage is “Specified Cause of
Loss”. Some Under Writers argue that this coverage is for
the benefit of the dealer. It is a benefit to the dealer because
the dealer has reduced claims on their policy. But, in this
case, the dealer many times reaches into their own pocket to
pay for the loss. Sure, the customer might be happy in this
situation, but is the dealer?
Now, this is why I ask if your policy is a “Keep Your
Customer Happy Policy”.
The solution to keeping your customer happy is to
elect to carry Garage Keepers form as “Direct Primary”
with Comprehensive coverage. This form of coverage is
the broadest of the two discussed. The dealer’s policy is in
the first position over the customer’s policy and with the
comprehensive coverage there is a far better chance the loss
will be covered under the dealers’ policy. This form will be
a less financial burden to the Dealer and hopefully restore
good Customer relations.
Carrying a Direct Primary Comprehensive form Garage
Keepers coverage indeed cares for both the dealer and
customer. This is the preferred form, but seldom offered to
Ask your agent about Direct Primary Comprehensive
coverage or give us a call at 503-625-2615. We will be happy
to talk with you. Kelly, President, Kelly Martin Insurance
Agency Inc. www.kellymartinagency.com
14 | OIADA January 2012
Fundraiser at Brasher’s CNW: Used Sales Surge in 2011, Close Year on High Note
Northwest Benefits St. Jude’s
By Joe Overby
In what was a solid finish to a strong used
January 2, 2012 2011 for the used-car market, December sales
Employees saw a 12-percent rise in used sales, in the
and customers at which pushed the full-year numbers to a year-ago
Brasher’s Northwest gain of more than 5 percent, according period.
Auto Auction opened to CNW Research. There were 11.2 million private-
their hearts and More specifically, used-vehicle sales party sales during 2011, compared to
their pockets this for 2011 totaled 38.8 million units, 11.1 million in 2010. In December, the
fall during a special which was 5.2-percent stronger than market saw 1.2 million private sales,
promotion to raise the total in 2010. During the year’s final compared to 1.0 million the prior
funds for St. Jude month, there were 3.1 million used sales, December.
Children’s Research compared to 2.8 million in December
Hospital. A combined “Private-party sales had their fourth
2010. monthly sequential share increase as a
total of $12,694.33
was raised as part of Sharing more good news for the growing number of consumers use free
the St. Jude Halloween and Lisa Larkin business, CNW analysts noted that more Internet sites such as craigslist.com to
program. agreed to shave people are in the market for a used car find buyers,” CNW leaders said in their
their heads compared to 2010 analysis.
“The generosity of
when goals “The number of shoppers to buyers “Other online sites such as
the people we work were reached in
with everyday was truly the fundraiser jumped by 20 percent versus a year ago,” AutoTrader.com are also high on the
overwhelming,” shared for St. Jude’s they shared. “In hard numbers, about list of private-party selling venues with
Lisa Larkin, general 9.7 million consumers were actively on a 13-percent increase in vehicles offered
manager at Brasher’s Northwest. “One the hunt for a used car this December, on the Internet,” they added.
of our employees, who asked that versus 8.1 million a year ago.” What’s more, CNW emphasized that
his contribution remain anonymous, Breaking down the sales data, the December had the highest share
donated over 100 hours of vacation franchised dealers sold 13.8 million of used inventories offered via the
time to St. Jude’s. We really do work used vehicles in 2011, compared to 12.8 Web (73.1 percent). This compares to a
with and for some amazing people!” million in 2010. Their December used 69-percent share in December 2010.
Included in the “amazing” group sales were at 980,873 units, up from Delving into transaction prices for
were Anne Osterman, who works 917,842 used sales in December 2010. the month, these fell slightly more than
in Brasher’s accounting office, As for independents, they moved 1 percent year-over-year. However,
and Larkin herself, both of whom 13.8 million used units for the year, up because sales volume was stronger,
volunteered to have their heads from 13.0 million. Independents closed the total value of used cars climbed to
shaved when $2,500 and $5,000 goals 2011 by selling 965,295 used units in $28.2 billion, up from $25.6 billion in
were met, and, true to their word, December, an increase from 844,525 December 2010.
submitted to the clippers.
“You always hear it said that 2012 COLLECTOR CAR AUCTIONS
every dollar makes a difference and
we certainly saw the truth in that Saturday February 4
statement during our fundraiser for St. Super Bowl Saturday
Jude’s,” said Larkin. “Whether it was Salem, Or.
Oregon State Fairgrounds
$1 out of a pocket, or a few hours of
vacation time, or a $500 check, we all Call now to consign Saturday July 7
worked together and raised more than 541-689-6824 “It’s a Graffiti Weekend Event”
$12,000, which all goes to help a sick Roseburg, Or.
Locate • Buy • Sell
child. We work with the best people Douglas County Fairgrounds
in the world, and this was a wonderful “Hassle Free Transactions”
opportunity to pull together and help www.petersencollectorcars.com
make a difference!”
OIADA January 2012 | 15
Your NIADA Platinum
National Corporate Partner!
As the Finance and Insurance National Corporate Partner of the
NIADA, Protective is committed to growing your independently owned
dealership’s profits and customer satisfaction.
We look forward to serving your independent dealership!
We Listen • We Care • We Have Solutions
Vehicle Service Contracts I GAP Coverage I Credit Insurance
Lifetime Engine Warranty I Limited Warranty I Dealer Participation Programs
F&I Training I Advanced F&I Technology
Dealers Since 1962
A “National Corporate Partner” has met stringent NIADA criteria demonstrating that it can provide valuable products and services to NIADA members. No legal partnership has been created by the granting of this status, but NIADA does receive
compensation from Protective. Lifetime Engine Warranty, Limited Warranty, Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VSCs are backed by Old Republic Insurance
Company. GAP, Lifetime Engine Warranty and Limited Warranty are not available in NY. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.
16 | OIADA January 2012
New & Renewing Members
1 Cent Profit Sales Sandy 4 Season’s Auto’s Medford
AAA Oregon Auto Source, LLC Portland Auto Solution Inc. Portland
Auto Outlet Salem Autobahn Motorcars Portland
Bickmore Auto Sales Milwaukie BB Auto Sales Albany
Blizzard Motors Lake Oswego Bob & Carol’s Family Auto Center Klamath Falls
Cars To Go Inc Portland Canon Investments Inc. Salem
Cars-R-Us Milwaukie Carriage Motors Albany
Castle Creek Auto Sales Grants Pass Cars & Trucks R’ Us Outlet Eugene
Columbia Car Sales Pasco Clarissa Auto Salem
Daniel Gherman Portland Coop’s Car Connection Salem
Deals On Wheels Salem Farwest Auto Sales Redmond
Elma Gazibara Portland Five-Star Auto Sales Hermiston
Family Auto Network LLC Portland Freeman Motor Co. Portland
Good Cars, Good People Inc Salem Hank’s Auto Sales The Dalles
Hofco Auto Consultants Portland Henry’s Foreign Auto Sales Phoeniz
Jalisco’s Automotive Portland Johnnys Automotive The Dalles
Jim Vick Auto Sales North Bend Oregon Truck Sales LLC Central Point
JMVS Global Auto Services Portland Premier Auto Sales Albany
K & K Autos Portland Reliable Credit Association Milwaukie
K W Imports Silverton Rexius Forest By-Products Eugene
McMullin Chevrolet Dallas Slick Auto Sales Crawfordville
Mobility Access Options, Inc. Central Point Southern Oregon Subaru Medford
MotorCars by Vic Lake Oswego Steve Pound Wholesale Portland
Mt Hood Polaris Boring Swede One Autoworks Portland
Northwest Beemers Beaverton The Summit Group of Oregon Salem
Portland Rescue Mission Portland
R & J Mobility Services Inc
R M G International LLC
Get the Most out
R V Northwest LLC Beaverton of Your OIADA
Saints Motors Junction City Membership
Salem Auto Sales Salem Visit www oiada com to
Siavash Safari Lake Oswego connect with other members,
Tony’s Auto Sales Portland get news updates and more!
Valley Boys Auto Sales Medford
OIADA December 2011 | 17
Oregon Dealers News Corner
Possessory Lien Foreclosure Forms
Oregon Administrative Rule requires all possessory lien
foreclosure transactions to be submitted on DMV forms,
when DMV has a form available. In addition to being on a
-5 days to submit the white copy of an issued trip permit
DMV form, the foreclosure form must have a revision date
of December 1996, or later. (OAR 735-020-0012)
-5 days to deliver vehicle registration materials to
Effective February 15, 2012, all possessory lien forms -7 days to file the 165 notice on Oregon titled vehicles
submitted to DMV must be submitted on a possessory -10 days to make a Good Faith Effort to obtain
lien foreclosure form with a revision date of January necessary docs
2008, or later. This change applies to the following DMV -10 days to payoff consigned vehicle (from the date of
• Form 735-518, Certificate of Possessory Lien -15 days to payoff security interest holder on vehicles
Foreclosure (ORS 87.162 – Landlord’s Lien) traded in (from date of trade-in)
• Form 735-519, Certificate of Possessory Lien -20 days to perfect liens by either submitting title to
Foreclosure (ORS 98.835) DMV or filing a TOD
• Form 735-520, Certificate of Possessory Lien -25 days to notify the buyer and security interest holder
of delay in titling
Foreclosure (ORS 87.152 – Lien for Labor and Materials)
-25 days to provide title to customer on cash deal or
• Form 735-521, Certificate of Possessory Lien dealer to dealer transactions
Foreclosure (ORS 90.425 – Lien for Personal Property -30 days to submit title to DMV for transfer
Abandoned by Tenant)
-30 days to file secure power of attorney with $4.00 fee
• Form 735-6604, Certificate of Possessory Lien -Only do business at your licensed location or get a
Foreclosure (ORS 819.160) supplemental
• Form 735-6605, Certificate of Possessory Lien -Properly display your Dealer License
Foreclosure (ORS 98.812) -Notify DMV of location, name or type of business
The DMV Title and Registration Handbook will include changes
updated possessory lien foreclosure form information on -Carefully follow consignment laws on purchasing
February 1, 2012. Please check the online handbook for the vehicle before you sell it (remember to follow
these changes at: http://www.oregondmv.gov/ODOT/ normal purchase rules such as the 165 and purchase
If you have any questions regarding these changes, please -Keep Good Records!!! Keep detailed records of whom,
where and when the event took place or the effort
call DMV Customer Assistance (in Salem call 503-945-5000, that was made.
in Portland call 503-299-9999, or call the DMV number Keep record of regular follow through efforts, not
listed in your local directory). sporadic.
OIADA Pre-License & Education Classes
January 2012 March 2012
27 – Brasher’s northwest auto auction – 9 – laGrande (location tBa) – title & Registration/
February 2012 23 – Crosspoint northwest auto auction – title &
17 – oiaDa Salem office – title & Registration/ Registration /Compliance
Compliance 30 – manheim Portland auto auction – Pre-licensing
24 – Brasher’s Portland auto auction – Pre-licensing
18 | OIADA January 2012
ASSOCIATE MEMBER LIST: Your Dealer Products and Service
ADVERTISING CAR RENTALS INSURANCE & BONDING cont
AutoTrader.com Canon Investments, Inc. Kelly Martin Insurance Agency, Inc.
Amelia Goldman, 360-303-8407 Joe Canon (Salem), 503-580-0473 Kelly Martin, 503-625-2615
Amelia.email@example.com DEALER SOFTWARE Sentry Insurance
Cars.com Frazer Computing, Inc. Randy Dombrowski
312-601-6134 Micheal Frazer, 888-963-5369 800-624-8369 x 7272
Raven Marketing Zurich
Laura Gonzales, 503-954-1473 FEE-BASED INCOME PRODUCTS Chris Booker, 800-648-2144
The Oregonian Triumph Consulting Services, LLC
Rich Fryback, 503-221-8486 Mike Cintron, 720-838-7400 Cell LEGALSERVICES
UCMLink www.ucmlink.com Simms & Simms
Allison Pittman, 601-812-5876 FINANCING Ted Simms, 503-228-8583
UsedCars.com by Dealix
Erik Parmele, 503-914-7128 LEASING
Tamara Garris, 704-243-6652
Credit Concepts Oregon Roads, Inc.
ACCESSORIES – AUTO Jason Moon, 541-342-8545 New & Used Vehicle & Commercial Leasing
Joseph McKinney, 541-683-2277
Auto Marketing Associates NW JP Morgan–Chase Auto Finance
Gary Palaniuk, 503-519-7725 Jeff DeGarmo, 503-201-4370 RECONDITIONING
Northwest Auto Accessories Nationwide Northwest, LLC E & N, Inc.
Craig Lessard, 503-288-5700 Mark Tischer, 503-339-4165 Marco Segura, 503-850-4730
Reliable Credit Association
AUCTIONS – PRIVATE David Marx, 503-462-3022 SERVICE CONTRACTS
Brasher’s Portland Auto Auction Gold Acceptance/ Oregon Auto Finance A.U.L. Corporation
Jerry Hinton, 800-300-3200 1700 Valley River Dr. #300 Gina Eagerton, 800-826-3207
Brasher’s Northwest Auto Auction Eugene, OR 97401 Automotive Profit Builders
Lisa Larkin, 800-905-3901 Gary Veum, 541-868-0472 Shannon Meany, 541-944-9186
Cross Point NW dealer Auctions United Finance: Auto Services Company
Brian Hardy, 503-457-4000 Burnside, 503-232-5153 Dick Proudfoot, 503-705-7597
Manheim Portland Auto Auction A.U.L. Corp/ D.P.C. Inc.
503-286-3000 Jim Bangert, 360-834-3333
AUCTIONS OUT-OF-STATE FLOORPLAN FINANCING
Protective - Asset Protection Division
Dylan Doran, 818-836-1455
Adesa Seattle Auto Auction
Jason Arcaro, 253-735-1600 x 213 Dealer Services Corporation GWC Warranty
Garrett Jorewicz, 866-230-0820 800-482-7357 ext. 767
Dealer’s Auto Auction Northwest
Steve Doyle, 509-244-4500
HEALTH CARE & BENEFITS TRAINING
South Seattle Auto Auction OIADA: Continuing Education, Title &
The Summit Group of Oregon, LLC
Julie Picard, 206-762-1600 Registration, & Pre-licensing
John Petrie, 503-581-2825
Ladena Borchers, 800-447-0302
AUCTIONS – PUBLIC INSURANCE & BONDING Automotive Profit Builders
Benjamin Auction Service Shannon Meany, 541-944-9186
Consumer Insurance USA
Dustin Benjamin, 208-405-8596
Robert Wells, 615-896-6133
Insurance Auto Auctions, Inc.
FirstSource NW Insurance Brokers, Inc.
Ryan Hall, 503-253-1500
Ron Huffman, 425-743-2812
Petersen Auction Group of Oregon
Hecht & Hecht Insurance
Curt & Susan Davis, 541-689-6824
Larry & Evelyn Hecht
Woodburn Auction evh@hechtinsur - 800-609-0979
Steve Morin, 503-981-8185
OIADA January 2012 | 19
Read & Respond or Certify Below
OIADA CONTINUING EDUCATION PROGRAM
Complete this test or Certify below that you have read the articles for Nov. 2011
ATV Phase 2 of the all-terrain vehicle (ATV) safety program becomes effective January
1, 2012 and requires youth younger than 16 riding ATVs on public lands, Oregon
Parks, and private lands to carry proof of completion of either the on-line course and
a “hands-on” training course designed for the type of ATV or off-road motorcycle
Need to Know A lull in lease returns and an aging fleet of vehicles on the road are expected to keep
used car prices high through most of this year; potentially higher than the record
levels established in 2011.
Legislative Report The highway safety mission of the National Highway Traffic Safety Administration
(NHTSA) consists of safety and research programs designed to decrease vehicle
deaths and injuries by changing driver behavior regarding drunk driving, distracted
driving and child seats.
Need to Know This year the most significant gain in used car values are likely to come from
compact cars and crossovers: Values for 1-to3-year-old compact cars are 15% higher
today than in January 2011, compact crossovers up more than 5%.
2011 Used Car Sales Used-vehicle sales for 2011 totaled 38.8 million units, which was 5.2-percent weaker
than the total in 2010.
Supply of Used Average used-car asking price in January 2012, $10,855, is down 2.9 percent versus
Models year ago when it was $11,516.
I certify to OIADA that I have personally read these articles in The Oregon Dealer News Magazine for #12-2011
My Name __________________________________________________ ____________(printed)
Dealership Name ____________________________________________________ ___________
Dealer License Expiration Date:_________________________ Dealership #_______________
Signed: _______________________________________________Date _____________________
FAX TO: 503-364-7331 or mail to OIADA, 1475 Capitol St. NE, Salem, Oregon 97301
20 | OIADA January 2012
M ARTIN INSURANCE AGENCY, INC
Kelly Martin, President
Your INDEPENDENT AGENT shopping
the best rates and coverages for you.
We only work with highly rated AM Best
carriers which helps provide PEACE OF MIND when
needing to file a claim.
We Sincerely Want to be of Service to YOU!
24 Years of Experience
Call us at 503-625-2615 Visit us at kellymartinagency.com
Located at 22566 SW Washington St. Ste 213, in old historic Sherwood, OR 97140
PERMIT NO. 188
1475 Capitol St. ne
Salem, oR 97301
503-492-9200 JANUARY 2 0 1 1
D E C E M B E R 2012
www.BrashersPortland.com Dealer Sales Every Thursday at 9:00 am
Brasher’s Portland Auto Auction
will be closed Friday Dec 23 & 30 C R E D I T U N I O N
Every week with up to 75 units
Closed factory sales on Dec. 8 & 22
GSA Internet Sale
Dec. 8th through 14th
New Car Store Feature Sales
Featuring up to 200
New Car Store Trades
and Aged Inventory!
Dec. 8 and 29 Dec. 22
with up to 50 repo units
each week with Todd Olson
Featuring the Dick
Hannah Auto Group and
other new car stores
Dec. 1, 15 & 29 Up to 100 trades and aged inventory every Tuesday at 1:00 pm