POLICIES & PROCEDURES
Section 1. Gene ral and Personnel
Section 2. Operations (General and Housekeeping)
Section 3. Operations (New and Used)
Section 4. Operations (Service and Parts)
Section 5. Operations (Finance)
Section 6. Accounting
Section 1. General and Personnel
Employees are required to park in the designated area. Employee parking is
located in lower lot behind GM building (the center 2 rows)
Employees should not expect to have their personal vehic les cleaned on Friday;
detail is too busy getting cars ready for the weekend.
o Employees are responsible for paying for their own business cards.
o They should be ordered through the accounting office and will be payroll
o Are property of this dealership and should be treated as so
o They are under no circumstances to be used to access websites of a
o Software other than what is approved and required to perform daily job
duties is strictly prohibited!
o An asset repair/purchase request form must be completed and approved by
Aimee before any repairs can be made
o Training is the responsibility of the department manager. Employees
should be trained in their respective areas according to manufacturer and
o Excel standards for Honda must be adhered to
o Reimbursement for meals is limited to $4.00 breakfast, $7.00 lunch and
$12.00 dinner. Alcohol is not reimbursable!
Cell Phone Usage
o Personal Usage of Cell Phones should be limited and not interfere with job
o Cell Phones need to be set on “quiet” mode or vibrate only during work
hours to limit distractions.
Monitoring of E-Mail and Phone Calls
o The phone and e- mail accounts are corporate accounts and can be
monitored at the company’s discretion.
Casual business attire; authorized Rogers apparel (which can be purchased at the
GM parts department) or shirt and tie for men.
Rogers shirt with slacks or nice jeans. Comfortable shoes with a non-skid bottom.
Casual business attire; authorized Rogers apparel. No blue jeans. Comfortable
shoes with non-skid bottom.
Uniforms provided by company; steel–toe shoes.
Casual business attire; authorized Rogers apparel. No blue jeans.
Please refrain from:
o Flip Flops
o Hats or caps, unless they are corporate logos or brand specific to your
o Visible body piercing, including ears for men.
o Visible tattoos
In an effort to accurately maintain state and federally required records of time worked,
ALL personnel, including salaried employees and managers, are to use the time clock
(Job 1361 in ERALink)
Time punch requirements are:
Clock in (start of work day)
Clock out (end of work day)
Meal Out (start of lunch break)
Meal In (end of lunch break)
ALL HOURLY EMPLOYEES are required to punch for lunch breaks regardless of
SALARIED AND FLAT RATE TECHS are required to punch for lunch breaks of 30
minutes or longer*.
ALL EMPLOYEES must clock out if they leave the premises for any non-company
business. If you are unsure of how long you will be gone (for example, a doctor
appointment), please Clock Out and Clock In again when you return. The system allows
multiple punches as long as each “in” is followed by “out” and vice-versus. If you are
leaving for your normal lunch period, please Meal Out and Meal In upon return.
*Break In and Break Out punches do not affect total time recorded for the day. These
punches are to be used at department supervisor's discretion to track breaks taken on the
If you forget a punch, please clock the appropriate punch code and enter a comment in
the Reason field (Example: A customer was waiting to be served when you walked in at
8:00am. After helping the customer, it is 8:30am. You clock in and enter in reason: "in
at 8am, with customer").
If you completely forget to punch, your supervisor or the payroll department can
manually add the time record.
After one full year, and each year thereafter, employees will receive one week (five
days) of paid vacation and one week (five days) of paid personal/sick time. After five
(5) full years, the employee will be eligible for two weeks (10 days) of paid vacation.
On employee’s first anniversary date, vacation and personal days for the remainder of
that calendar year will be prorated according to how many months are left through
December 31st. Vacation and personal days will be calculated at ½ day per month.
The month you were hired in will count if your hire date is on or before the 15 th .
Ex: Your hire date is June 12th the following year on June 12th you will have
3.5 vacation days and 3.5 personal days to use through December 31 st of that year.
Ex: Your hire date is November 20th the following year on November 20th
you will have ½ vacation day and ½ personal day to use through December 31st
of that year.
New for 2010
Vacation and personal time may not be carried into the following calendar year or cashed
in. (pay will not be given in lieu of time off)
January 1st of the calendar year following your anniversary date, and each calendar year
thereafter, employee will be entitled to the full week of both vacation and personal time.
Vacation Pay will be calculated as follows:
1. Sales and Finance Mgrs receive their normal salary and/or draw as if they were
2. Salaried Employees receive their normal salary.
3. Flat rate technicians receive an average of their most recent 13 week pay.
4. Salespeople receive an average of their most recent 13 week sales commissions.
5. Hourly Employees receive their regular hourly pay.
6. Service Advisors receive their regular salary plus an average of their last 13 week
Note: Bonuses, Spiffs and guarantee hours will not be included in calculations of
If you have any questions, please talk to your direct supervisor.
Section 2. Operations (General and Housekeeping)
The proper department manager must authorize any dealership purchase, including
inventory items purchased for resale. The purchase order should be given to the vendor
at the time the order is placed and matched with the invoice upon receipt of the item(s).
Any differences between the purchase order and the invoice require an explanation from
the vendor before a check for payment of the invoice is issued. The Accounting
department must never write a check for an invoice that has not been signed by the proper
department manager or is missing a purchase order.
General purchases, such as office supplies, forms, and basic computer supplies should be
the sole responsibility of one person in the dealership, in order to prevent duplicate
purchases and ensure proper purchase discounts.
The following form should be utilized to request the purchase of office supplies and
forms. It must be approved by a manager and attached to the corresponding P.O.
Maintenance/ Repairs to equipment/property by outside services must also be approved
before the service call is made. In addition, any asset purchases must be approved in
advance. Please use the Asset Purchase Repair Form that follows. A P.O. should be
issued by the department manager and approved by the General Manger (Aimee).
Invoices received for items that will be returned for credit must still be turned into
accounting. The dept manager should keep a copy of the invoice to follow up with the
vendor for credit. Credits should also be signed by the dept manager and turned into
Purchasing privileges are to be assigned only by Aimee Thomas and/or the
Adve rtising is only to be arranged/approved by Aimee Thomas.
General Guidelines (Purchasing Privledges)
Sales Managers – Helium, Balloons, mobile repair services (ie: Doctor Vinyl)
Service Managers – Sublets, Detail Supplies. Essential tools
Parts Managers – Parts, shop s upplies. All other ite ms require a signature from the
General Manager or Controller. Example: key tags, shirts, misc.
Designated Office Personnel (Must have required re quest form) – Office Supplies,
Forms and Other Supplies
Asset Purchase/Repair Request
Item/Repair Requested (Desc) ______________________________
Proposed Company to be used _________________________________
Estimated Cost _________________________________
Brief Description of why item is needed _________________________
Requested by _______________________________________
Approved by ________________________________________
Request for Purchase of Office Supplies and Business Forms
Item Requested (Desc) _______________________________________
Quill Item # _______________________________________
Reason Requested _______________________________________
Requested by _______________________________________
Approved by ________________________________________
Gas Tickets (Exxon Mobil Fleet account purchases)
Each department manager is issued an Exxon Mobil gas charge card. In some instances,
a department may be issued multiple cards.
It is the department manager’s responsibility to keep track of the gas card and guard it
Know who has the card(s)
Get card(s) back
Obtain all gas tickets
It is also the department manager’s responsibility to make sure all gas tickets (receipts)
are properly CODED (vehicle stock number; RO number; other explanation of charge),
SIGNED, and TURNED IN to the accounting office DAILY.
Any and all gas tickets that are un-posted in accounting when the covering Exxon Mobil
bill is reconciled and paid, will be charged back to the departments who failed to turn the
Gas Card Agreement
I understand it is my responsibility to make sure all gas tickets are properly coded, signed
and turned in to the accounting office daily.
I further understand that any and all gas tickets that are un-posted in accounting when the
covering Exxon Mobil Bill is reconciled and paid, will be charged back to my department
& will affect my EOM commission.
Proper documentation must be presented to the Accounting department before any check
is written and signed. The submission of a check request, signed by the General Manager,
Controller, or department manager, is required before any check can be written. A dollar
amount, as well as a description, should accompany the request. Checks can not be
written upon verbal requests.
Blank or unsigned checks are not to leave the premises under any circumstances.
Check Amount $ _________________________________
Reason for request _________________________________
Need by date _________________________________
Manager Signature _________________________________
Checks for down payments should not be held unless warranted by unusual
circumstances. Hold checks must have a maximum holding period of twenty-one (21)
days. In many states, a check becomes non-collectible if it is returned unpaid by the bank
and the dealership has prior knowledge that the check was not good at the time it was
accepted and held for subsequent deposit.
The General Manager must approve all hold checks.
The check must be presented to the office along with the following hold check form
Hold Check Request
Stock # ______________________________________
Deposit Date ______________________________________
Swap for cash date _________________________________
Approved by (Manager) ________________________________
Documents and Files
Any files or documents in Accounting must not be removed from the office. If an
associate wishes to review a document or file, he or she may do so in the office. The
Controller or Office manager must maintain a written log for any file or document taken
from Accounting. The log should include the name of the recipient of the file or
document and the date the material was relinquished.
Cash Handling and Reporting
Cash Payme nts over 10,000
The policy of Rogers Automotive is to strictly comply with Federal laws regarding the
reporting of cash transactions over $10,000. Cash transactions can be comprised of one or
more of the following items: cash, cashiers checks, traveler’s checks, other bank checks
and money orders. Whenever this type of transaction occurs, the dealership must
complete a Form 8300 and send it to the Internal Revenue Service. (A copy of Form 8300
follows this page.)
If the dealership receives more than one cash payment for a single transaction or for
related transactions, the dealership must report the multiple payments any time that the
total amount exceeds $10,000 within any 12- month period. Any transactions conducted
between a customer (or his agent) and the dealership in a 24- hour period are related
transactions. Transactions are considered related if they occur over a period of more than
24 hours if the dealership knows, or has reason to know, that each transaction is one of a
series of connected transactions.
The report should be submitted to the IRS within fifteen days of the date that the
dealership receives the payment that causes the total amount to exceed $10,000.
Form 8300 may be filed voluntarily for any suspicious transaction, even if the total
amount does not exceed $10,000. Examples include transactions in which it appears that
a person is attempting to cause Form 8300 not to be filed, or to file a false or incomplete
form, and any instance in which there is an indication of possible illegal activity.
The controller is responsible for providing a written statement to each person named on a
Form 8300 on or before January 31 of the year following the calendar year in which the
cash is received. The statement must show the name, telephone number, and address of
the information contact for the business, the aggregate amount of reportable cash
received, and disclose that the information was reported to the IRS.
If a customer asks any associate whether a report to the IRS will be made regarding their
transaction, the associate must not answer that question, but immediately refer the
customer to the General Manager or Controller. The General Manager or Controller
should inform the customer that "we will do whatever the law requires us to do", and
must refrain from discussing any possible scenarios under which the dealership may or
may not be required to report the transaction to the IRS. Federal law prohibits any person
from aiding, abetting, assisting or advising another person about how to structure a
transaction so as to avoid the IRS cash reporting requirements. Any person who engages
in such conduct may be guilty of a felony.
Failure by an associate to follow these procedures will result in disciplinary action by the
dealership against the associate, up to and including termination of employment, and
could also subject the associate to felony criminal prosecution under federal law, which,
upon conviction, may result in imprisonment of up to 5 years for each separate offense.
All cash or checks received on car deals should be receipted in the office during the hours
that the office is open. The cashier at each location is equipped to receipt cash, checks
and credit card deposits received. Money is to be turned in to the main office several
times daily for deposit. The sales manager working the particular deal must receipt any
monies that are received after the Accounting office has closed. A receipt book should be
maintained at the sales desk for this purpose. All monies receipted after normal business
hours need to be accounted for by the office when it first opens on the next business day.
Finance and insurance personnel are not allowed to handle cash except under extenuating
Safeguarding Customer Information
In conjunction with the requirements of Section 501(a) of the Gramm- Leach-Bliley Act
(GLBA), the Federal Trade Commission (FTC) published “Standards for Safeguarding
Customer Information” (Safeguards Rule). The Safeguards Rule requires dealerships to
develop, implement and maintain a comprehensive written Information Security Program
(ISP), as well as appropriate safeguards, to protect customer information, such as
information contained in a consumer’s credit report or credit application, account
numbers, bank balances, etc., from identity theft, misappropriation, alteration, tampering,
and other harm or inconvenience.
The controller is designated as the Program Coordinator of the ISP and is responsible for
implementing and maintaining the dealerships safeguards.
All customer information should be kept in locked cabinets or offices. Under no
circumstances should customer information be left on a desk in an unattended,
Access should be granted to sensitive customer information on a “need to know”
Only managers are allowed access into the accounting office.
All computers that allow access to sensitive customer information should be
Dead deals are to be locked in a secure location. They should never be thrown in
the trash or kept at sales desks.
Customer information should never be thrown in the trash! If it is void and not a
dead deal it must be shredded.
Inventories and Days Supply
Controlling inventory is a critical component in dealerships profitability and the
Departmental managers are ultimately responsible for managing inventories in
accordance with Rogers Automotive guidelines. New vehicle days supply should be 60
days or less, with no vehicles over 180 days old. Used vehicle days supply should be 75
days, with no vehicles over 75 days old. Parts should maintain a days’ supply of 50 days
or less. Work in process does not have a level restriction but must be reconciled on a
monthly basis by the Controller.
Monthly physical inventories of new and used vehicles are mandatory. A Sales Manager
and someone from the Accounting department should account for each vehicle on the
Accounting vehicle schedule rather than the sales inventory list. Both parties should be
active in the physical observation, accounting, and reconciliation of the inventory. Any
vehicle exceptions are to be signed off by either the Sales Manager or the Controller of
A reconciliation of the dealership’s new vehicle inventory to the manufacturer’s
inventory must be completed each month. The reconciling items, other than recent sales
or transit units, must be corrected promptly.
Closing desks on the showroom floor should be free of personal items, papers,
clutter, photos, desk calendars, etc. these offices are for the purposes of initiating
and closing car deals only, they are not assigned to individuals, they are to be
shared amongst the sales floor, personal affects can be kept in the business
development center where they each have their own individual desks
No one is allowed to hang anything on any wall without Aimee or Rita’s
Finance offices are to be free of clutter, nothing on desks except for computer and
printer and fax machine
o There are organizers for forms, use them
o Deals should be closed out and turned in daily
o Only current forms should be stocked.
Locking up at night
o Fixed ops closes at 6pm and no one should in these areas unless
supervised and/or approved by the service manager
Same rule applies for Saturday
o The last manager to leave the store should check the contactors for the
power in the shop and drive around the building to make sure all garage
doors are secure and no other doors are left ajar or open
o All manager’s offices should be locked
Service keep it neat policy
o Empty trash daily
o Sweep all areas daily
o All fluid spills should be cleaned immediately. They should never sit
o Every Friday the shop and service drive should be cleaned from wall to
wall, no exceptions.
Sweep up debris before washing down the floors.
Lot and Inventory Maintenance
o Sales Management should never go home at night with holes on the front
o Inventory should be tightened up daily- no exceptions
o Verify trade- in’s and wholesales are parked in appropriate places
throughout the day
o Perform door checks daily to ensure we aren’t leaving keys in vehicles or
the vehicles unlocked
o Every vehicle should have Rogers ID on it. Tag bracket on front, tag &
license frame on rear along with sticker. Rare exceptions: XLR, v-series
o Sales management should do a quick inventory weekly to ensure vehicles
aren’t being misused or haven’t been stolen
Designated service parking areas
o Cars to be worked on
o Completed Cars
o Loaner Vehicles
These areas are to be observed at all times. Any questions please see Aimee.
Scheduling (Employee Staffing)
It is the Department Managers responsibility to maintain appropriate coverage at
One front end sales manager is required on the floor at all times.
When a department head is on vacation or off they must have someone in place to
cover their duties. In addition, all other department staff should be present.
When Aimee is on vacation, all key personnel are required to be on the job.
During the last week of the month days off are subject to your department being
on track and each employee in your department being on track for their individual
goals (if not, they should be working)
Section 3. Operations (New and Used)
Understanding our stock number system
o Honda-designated by blue key tags
o Kia-designated by red key tags
o GM-designated by yellow key tags
o Dealer Trades – are identified by adding a D to the end of the outgoing
stock number. If the incoming vehicle is a different year that the outgoing
vehicle, it will be assigned a new stock number without a D.
o Used-designated by white key tags
o Trade- ins
Ex. If H0000 is sold then your trade will be H0000A, if by chance
there are two trades the second will be H0000A1 (check with
finance to identify 1 st and 2nd trades)
Ex. If P0000D is sold then your trade will be P0000A
Ex. If P0000A is sold then your trade will be P0000B, if by
chance there are two trades the second will be P0000B1.
o HX Honda purchase
o HA Honda auction
o HAX Non Honda auction purchase
o KX Kia purchase
o AK Kia auction
o AKX Non Kia Auction purchase
o AC Cadillac auction
o AB Buick auction
o AG GMC auction
o AP Pontiac Auction
o X GM purchase
o AX Non GM Purchase
NEW / USED CAR INTERNAL PROCEDURES
1. Rogers internal form must be completed and signed by appropriate manager BEFORE
work on vehicle is started.
2. Service department will generate an internal RO accordingly.
NOTE: No internal RO’s are to be generated until the service department is provided
with an authorized new/used car internal form and/or a copy of a WE OWE from a
3. RO’s need to be closed as soon as the work is completed.
4. The new/used car internal form or WE OWE is to be attached to the accounting copy
of the internal RO.
Trade- ins should be stocked in and either parked in wholesale or sent to the shop
with an approved internal for reconditioning
If a car is wholesaled, “W/S” should be marked on the windshield with a grease
pen. If it’s placed, please indicate buyer.
Wholesale units are to be parked in the very back row of the lower lot behind GM
(also used for lease turn- ins, repos, etc.)
Each used car for retail should have 2 sets of keys: one set on the board, all other
sets in the used car folder
It is the manager’s responsibility to inspect all used cars and make sure they are
lot ready. A temporary buyers guide should be installed and the vehicle scheduled
for a Dealer Services sticker on their next visit (Tuesday & Friday)
Every vehicle traded in for retail sale on the used car lot gets the following:
o Used car inspection (the shop will tell you every single thing wrong with
the vehicle, it is your discretion on what to repair)
o Safety issues (ex. Tires, Brakes) must be repaired or replaced if needed.
o If you decide to retail the car, the following is required:
Make sure you have 2 sets of keys (not necessarily 2 fobs though)
Used car inspection
BG additive is required if over 50k (fuel or MOA)
BG used car kit under 50k
Rogers ID Kit
Partial or full detail, (no handwashes)
o Prior to work being done, a “new/used internal authorization” form must
be completed and signed by a manager.
Authorized wholesalers are:
o Ray Haynes 704-472-6141
o Shawn Moore 704-245-8067
o Chip (Flash Gordon)
o For late model vehicles ex. Ford we get buy figures from certain dealers
we do a lot of business with
Mark Ficken @ Keith Hawthorne Ford 704-363-0100
They also have Hyundai & Mazda
NO ONE ELSE IS TO BE USED WITHOUT AIMEE’S ADVANCED APPROVAL
o A vehicle does not leave this premise without a check in hand, regardless
of status of title
Each deal should be properly approved and signed by two dealership managers,
preferably a Sales Manager and the F&I department manager, before it is sent to
the Accounting department for processing. Deals should be checked to ensure that
the vehicle gross profit and all required paperwork is complete and accurate
before it is approved and submitted to Accounting for posting.
The F&I department is responsible for maintaining a neat and organized dead deal
file. The files should contain the credit application and any credit checks. These
deals must be retained for 24 months and should be turned in monthly to the
Any retail or wholesale deal that results in a loss of $500 or more must be
approved and signed by Aimee before it is sent to the F&I department for billing.
Any retail deal that has been delivered and contracted but not billed by the F&I
department within 24 hours delivery should be placed in a “hot box” and
reviewed and/or rehashed by the Sales Manager and F&I Manager on a daily
Each deal folder is to contain a checklist, attached to the front of the folder, of
required and completed information needed in the deal before it is sent to the
Accounting department. The checklist should be completed the same day that the
vehicle is delivered.
o Birddogs are illegal in the state of North Carolina
o Effective Feb 1, 2008 we will be issuing $50 Rogers Rewards to
customers for each referral they send us, this needs to be put on the we
owe so that the accounting office can add this money to their individual
Customers that have a trade- in without a lien should be charged a fee of $75 for
NC and $35 for SC in the event that they do not have a title for the trade- in. This
charge will either stimulate the customer to find the title or provide the funds
needed to obtain the title. The customer should be advised of this charge at the
time the deal is made.
An Autocheck is required in the deal jacket attached to ACV card for every trade.
Dealer plates, which are frequently used by most of the departments in the dealership,
must be constantly controlled. A physical inventory of the plates should be conducted on
a monthly basis when the vehicle physical inventory is taken. Any lost or stolen plates
should be reported promptly to the local Department of Motor Vehicles.
Any associate who is provided a dealer plate for any reason is also required to sign a
payroll deduction for the cost of a replacement plate if the dealer plate is lost. If an
associate has a history of losing plates, he or she should not have further ones issued.
Final paychecks will not be issued until an employees dealer plate has been returned to
the accounting office.
Temporary tags can not be used in place of dealer plates – this is expressly prohibited by
DEALER PLATE AGREEMENT
Employee Name ___________________________________
Dealer Plate # Issued ________________________________
I understand that I am responsible for the dealer plate assigned to me. It is to be used for
customer test drives only and never for personal use unless approved in advance by
The use of a dealer plate puts the company at a huge risk for insurance claims due to
collisions or loss of life. I understand this, and agree to respect this privilege and use my
best judgment at all times.
If at any time the plate is lost or stolen, I understand I am to report it immediately to the
office so it can be reported to the local DMV. The charge for lost plates is $35.00. I
further understand the company may recover this cost by payroll deduc tion.
I have read and understand the dealer plate agreement and agree to the payroll deduction
in the event my plate is lost or stolen.
Employee Signature __________________________________________________
o The delivery of a car should be handled properly, it should not be rushed through
Allow at least 1 hour for a thorough delivery; more if vehicle has
navigation or rear DVD
Rogers key chains should be on both sets of keys
Owners manual should be filled out
Introduction to service and scheduling 1 st service appointment should
happen during delivery
Explanation of warranty and services that need to be performed to uphold
Brochures for BG warranty if it’s pre-owned with < 50k
Activation of Roadside card on pre-owned and New Honda’s
Onstar/XM activation if equipped
Sales Management should ensure that all sales personnel have an assigned
extension for voicemail in the dealer business center. It is critical that voicemail
boxes be set up to ensure no lost sales messages. The sales manager should keep
the switchboard operator advised of all changes and additions.
Up cards are to be used without fail, from that card each salesperson should enter
their Up into CM, which adds the customer to your desk log
o At that point you can generate the forms you need to work a customer in
o Up cards are your guest registrations for the test drive giveaway
o Our desking tool is one of the best. It is a professional and legal approach
to desking a deal and is required to be used. It must be utilized daily.
o The forms integrated with desking are:
o It is the department manager’s responsibility and discretion to develop
cost efficient and exciting spiffs for their departments.
o All spiffs must be signed off and approved by Aimee before presenting it
Section 4. Operations (Service and Parts)
Open Repair Orders
o Should be reviewed daily
o Open RO’s are cash. The list should never be more than the daily average
number of written repair orders (ie. If the dept is average writing 30 repair
orders per day, their list should not exceed 30 open RO’s at any given
o Should be posted daily. Code and sign off on invoices and turn in daily to
Special order parts policy
o It is mandatory to use the integrated ERA system for special orders
regardless of where the part was ordered from. (If you don’t know how,
call Maureen (Ask the office for her number) and she can help you)
o Customer pay over the counter should be paid in full before placing the
o Should always be passed on to the customer or the factory and billed out
separately on the invoice or added to the price of the part.
Policy & Procedure Manuals
o All service and parts managers are responsible for reading and being
familiar with the current manufacturer’s procedure manual. All front line
employees in the department are also required to read the manual.
Scrap Metal Sales
o Any monies received from the sale of scrap metal, cores and tires is
property of the dealership and must be turned in immediately to the office.
o All Goodwill Repairs must clearly say “Goodwill” on the repair order and
the customer must be charged at least a dollar. Otherwise a warranty is
Service Lane Procedures
Get mileage off of customers vehicle – never ask the customer to bring you their
Perform a walk around on each car while it is in the lane with the customer
present. Note any damage on the ro.
Keep the service drive clear and free at all times. Vehicles should be parked in
the “cars to be worked on” are or pulled into the shop.
Customer’s vehicles must be pulled up for them. Never send a customer out to
the lot to find their car.
Appointments must be entered into the system.
SPG must be used to quote jobs.
Parts Return Policies
Rogers Automotive Group has specific return policies for retail customers and wholesale
These are to be displayed in the parts departments where they can be seen by our
Service Loane rs
Loaners should be flipped at least every 60 days. This is the responsibility of the
Cars should be put in service loaner fully serviced and detailed.
While in loaner it is the responsibility of the service department to keep each car
full of gas at all times and clean for every customer.
Service is responsible for keeping up all services and paying for the services
performed to the vehicle while in service loaner status.
Service will be charged a monthly depreciation.
Rental charges should be applied for on warranty jobs whe n possible.
When these cars come out of loaner service it is the responsibility of the service
department to make it has a fresh oil change and is cleaned for retail sale.
Each store should have at least 2 vehicles in loaner inventory and in addition, GM
should have one high end luxury.
The stores should share loaners when necessary instead of using outside vendors.
PARTS RETURN POLICY
All special order parts (items not normally stocked) require payment
in full at the time the order is placed. These items are not returnable
or refundable once ordered.
All electrical components are non – returnable and non- refundable.
Any part that is returned must be in an unopened package that is clean
and in sellable condition.
There will be a 15% restocking fee charged on any part return for
Any part that is eligible for return must be returned within 10 days of
No refunds on any clothing items including caps.
PARTS RETURN POLICY FOR WHOLESALE
ACCOUNTS AND COLLISION PARTS
All returned parts must be in returnable condition per manufacturer
specifications (ie. No writing on boxes, any torn boxes, etc) Return
dates are based on your invoice dates.
All electrical components are non-returnable and non-refundable.
All Sheet metal is non-returnable and non-refundable
Returnable at 100%
Honda within 10 days
GM within 20 days
Kia within 20 days
Returnable at a 15% restocking fee
Honda 11 to 15 days
GM 21 to 25 days
Kia 21 to 25 days
No returns accepted
Honda after 15 days
GM after 25 days
Kia after 25 days
Section 5. Operations (Finance)
An F&I Compliance Policy document appears on the following page. These
statements must be signed by all F&I Managers, General Managers, Controllers,
Billing Clerks, and Sales Managers at the time of hiring or promotion to the
position. This item should be placed on the “New Hire Checklist”.
F&I COMPLIANCE POLICY
I, by my signature below, acknowledge that I have been trained and
instructed on the F&I Compliance Policy, which includes the
requirement at all times of legal and ethical practices in the sale of
Finance and Insurance Products. I agree to comply with all
applicable State and Federal laws, including but not limited to the
Truth in Lending Act (TILA), the Fair Credit Reporting Act (FCRA), the
Equal Credit Opportunity Act (ECOA), and the Sherman Antitrust Act.
If for any reason I am unsure of whether a practice or procedure
complies with the law or dealership policy, I will immediately seek
guidance from my supervisor.
I also agree that, on all deals I work on with a customer:
1. I will leave all documents in the deal file, including but not limited to: the
original worksheet; a handwritten front gross sheet completed and signed
by the sales manager; a handwritten buyer’s order signed by the
consumer and the sales manager; any credit applications or related
documents; and, in the case of a re-contracting, any voided papers.
2. The file will contain a printed buyer’s order signed by the customer and
the finance manager.
3. The file will contain a recap sheet or washout sheet printed by the F&I
4. All F&I product forms will be printed by the computer, will contain
NOTHING THAT IS HANDWRITTEN. THIS INCLUDES PRICES, BLANK
PRICES, OR PRICES MARKED “NONE” OR “N/A,” and will be signed by
the customer. I will NEVER have a customer sign a product form with a
blank or handwritten price, or change a price term after the customer has
5. I will obtain the customer’s signature on a Menu disclosing the products
purchased and the term and payment or that the customer chose not to
purchase any such products.
6. The file will contain an Arbitration Agreement, signed and dated by the
Customer [and signed and dated by a witness present at the time the
Customer signs (I may be that witness)].
7. I will carefully examine the signatures of each Signor on the documents
and compare them to their Driver’s License to make sure the signatures
8. I will verify that there is a photocopy in the file of the Driver’s License for
each Signor (buyer/co-buyer).
9. I will not have the customer sign ANY blank forms, including but not
limited to any blank credit applications, or any product forms with blank or
10. I will give the customer his/her copy of all contracts and other documents
at the time of contracting.
11. I will GIVE (physically release control of) any Retail Installment Sales
Contract, Lease, or other financing document, to the customer so that the
customer has ample opportunity to review before signing.
12. I will not make any changes to income, other income, rent or mortgage
payments without verifying the accuracy of the change with the customer
and obtaining the customer’s initials beside the change.
I have fully read this F&I Compliance Policy and acknowledge that I have been
given the opportunity to ask questions regarding the same. I understand my
responsibilities regarding F&I products, and my dealings with customers, and
acknowledge that violations of any State or Federal Law, or any of the above
rules, can result in immediate termination without further notice or warning
Associate Name Associate Signature Date
Supervisor Name Supervisor Signature Date
OFAC – Terrorist List
The Office of Foreign Assets Control administers and enforces economic sanctions
primarily against countries and groups of individuals, such as terrorists and narcotic
traffickers. Dealerships are required to take “due diligence” steps in order to
comply with the OFAC regulations, including the prohibition against entering into a
transaction with persons or entities identified on the OFAC’s list of Specially
All dealerships must comply with this regulation for all transactions whether it is a
cash transaction or through a financial institution. Failure to comply with OFAC
regulation is punishable by:
Up to 30 years in prison
Fines up to $10 million per count against corporations
Fines up to $5 million per count against individuals
Civil penalties up to $1 million per violation
Dealertrack is equipped with an option to run a comparison against the terrorist list.
You may also use www.instantofac.com at no cost to the dealership. The results
must be printed and included in the deal jacket.
If a potential buyer’s name is on the list, the associate must follow certain guidelines
as outlined by the OFAC. The guidelines will help verify if there is a “possible
match” or an “exact match”. In order to follow through with the guidelines, click on
the More Info link on the recap page to bring up the search report. This will show the
information on the blocked persons list so that it can be compared to the customer’s
information. The OFAC guidelines are as follows:
1. Is the “hit” or “match” against OFAC’s SDN list or targeted countries,
or is it “hitting” for some other reason (i.e., “Control List” or “PEP”,
“CIA”, “Non-Cooperative Countries and Territories”, “Canadian
Consolidated List (OSFI)”, “World Bank Debarred Parties”, “Blocked
Officials File”, or “government official of a designated country”), or is
it not possible to tell what the “hit” is? If it’s hitting against OFAC’s
SDN list or targeted countries, continue to number 2 below.
2. Now that it has been established that the hit is against OFAC’s SDN
list or targeted countries, evaluate the quality of the hit. Compare the
name in the transactions with the name on the SDN list. Is the name
on the transaction an individual while the name on the SDN list is a
vessel, organization or company (or vice- versa)?
If Yes = No valid match.
If No = Continue to number 3.
3. How much of the SDN’s name is matching against the name in the
transaction? Is just one of two or more names matching (i.e., just the
If Yes = No valid match
If No = Continue to number 4
Compare the complete SDN entry with all of the information available
on the transaction name. An SDN entry often will have, for example,
a full name, address, nationality, passport, tax ID or cedula number,
place of birth, date of birth, former names and aliases. Is a lot of this
information missing for the person named in the transaction?
If Yes = Go back and get more information then compare
complete customer information with the SDN entry.
If No = Continue to number 5
4. Are there a number of similarities or exact matches?
If Yes = Call the OFAC’s Compliance Hotline
If No = No valid match
After taking those steps, if the customer is a valid match, report the customer to the
OFAC compliance hotline number above. OFAC will further screen the name and direct
the associate on how to proceed, either by indicating it is not an exact match and
authorizing the sale, or deciding what further action needs to be taken if it still appears to
be a valid match.
An F&I Checklist is to be included in every deal. All items must be completed
prior to the deal being turned in to the office. An example follows.
Acceptable contracts in transit is 3 days.
Menu presentation is mandatory 100% of the time.
Conditional Delivery Agreements are to be obtained on every deal, no exceptions.
E- Mail addresses are to be entered into the system.
If it is necessary to resign a customer, please re-date paperwork.
Make sure we are collecting the correct amount for tag fees to eliminate
additional paperwork Current Fees are as follows:
o New Standard Tag - $70.00
o Transfer Tag - $55.00
o New Truck Tags
5,000 Lbs 83.50
7,000 Lbs 99.70
10,000 Lbs 143.00
F&I Personnel must be notaries
No Bill of Sale should ever be shredded. Please turn all voided documents in to
o The finance mgr will work with the customer to complete cancellation
paperwork and collect proper documentation.
- Trade – copy of trade proof (odometer or BOS)
- Payoff – letter or other proof from bank showing lein is satisfied
o Paperwork should then been faxed to Zurich or completed online if JM&A.
-Zurich fax #’s Gap 913-498-5493 Service Contract 913-906-2379
o The finance mgr should keep track of cancellations in a log. The paperwork
should then be turned in to the controller to be filed until the refund is
o All deals should be placed into “closed” status the moment the customer
leaves with the vehicle. Deals left open risk us being out of trust with our
floor plan provider.
Salesperson __________________________________ Date_________________
Custome r __________________________________
Checklist for Sales
o Handwritten Buyers Order –COMPLETED & VERIFIED & S igned by Customer
o Trade In Vehicle Title Status & COMPLETED payoff form ○ Buyers Guide
o 3 Copies of Drivers License ○ Arbitration Agreement
o Signed Credit Application
o Signed Privacy S tatement
o Registration Card on Trade
o ACV Card –Completed and Verified
o Vehicle Registration & Insurance Info Form - INS URANCE VERIFIED
o We Owe Details – prices on any adds
o Down Payment – amount _____________________
Verified by Consultant ____________________________ Verified by S ales Manager ______________________________________
o Trade in Autocheck with ACV Card
Time – In
o CBI F&I_______________________
o Incentive Program Printout
o Vehicle Invoice # __________________
Verified by S ales Manager _____________________________
Checklist for F&I
o F&I Menu Special Instructions
o Conditional Delivery Agreement
o MVR 615 (NC Deals)
o Incentive Form Signed by customer
o Red Flag Worksheet
o Pink POA if payoff on trade or dup/ White on rest.
o S plit Deal? S piffs or bonuses? Commission Cards
o Aftermarket Forms completed, prices match BOS and contract, no handwritten prices.
o Check for open RO’s
o Bank Approval
o S pecial Instructions signed by Aimee
o Recap/ Run S heet Accurate? Matches deal?
o Notarize witnessed documents
o If certified, has the appropriate paperwork been completed and reported to the manufacturer?
o Customer has been given copies their copies, including receipt for downpayment
o Terrorist List checked and results printed Date & Time Out
o Verify all paperwork is signed and down payment has been collected
Verified by Finance Manager ________