LATE CHARGES.pdf by lovemacromastia


									                                              26                                                              9           21                                          February 2007

                                              OIADA MEMBERSHIP                                                EVENTS AT   OIADA NEW
                                              APPLICATION                                                     A GLANCE    & RENEWING MEMBERS

Don't Let Late
                                                                                                             Oklahoma Independent Automobile Dealers Association

Hurt You
                                                                    OIADA, P.O. Box 6905, Moore, OK, 73153
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FLEET / LEASE & DEALER                         of America, LongBeach Acceptance,
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OIADA BOARD OF DIRECTORS                                                                                   IN THIS ISSUE
PRESIDENT                                                       John Easttom                               6 Let’s Get Late Charges Straightened Out
David Rath                                                      Auto Mart of Elk City                      Instinct and experience lead me to believe there is confusion among dealers
Altus Main Street Motors                                        P.O. Box 981                               about late charges. What you don’t know about late charges can hurt you.
P.O. Box 603                                                    Elk City, OK 73648                         By David L. Nunn, Esq.
Altus, OK 73522                                                 Phone: (580) 225-1100
Phone: (580) 477-2272                                           Fax: (580) 243-1103                        10 Speaker Cargill Announces House Committee Assignments
                                                                                                           Speaker Lance Cargill’s new committee assignments for the Oklahoma
Fax: (580) 482-5953                                             Email:               House are listed in this article. Speaker Cargill has provided details about
Email:                                                                      the restructured framework for the 36 full standing committees and sub-
                                                                Chris Goad                                 committees.
CHAIRMAN OF THE BOARD                                           Regal Motors
Monte Shockley                                                  3515 N. May                                16 How An Idea Becomes A Law
Shockley Auto Sales                                             Oklahoma City, OK 73112                    This chart gives the specifics on how laws come about.
2605 N Broadway St.                                             Phone: (405) 917-5800                      25 Katrina Damaged Vehicle Brands Are Being Washed
Poteau, OK 74953                                                Fax: (405) 917-5247                        Experian Automotive reports that almost 45 percent of the more than
Phone: (918) 647-3999                                           Email:                 200,000 vehicles branded as flood or storm damaged in the wake of
Fax: (918) 647-3027                                                                                        Hurricane Katrina have lost their brands after being moved and re-titled in
Email:                                             Sam Flippo                                 other states.
                                                                BRI Imports, Inc.
SECRETARY/TREASURER                                             6920 N. Broadway Extension
                                                                Sam Flippo                                 30 Legal, Legislative And Regulatory Summary
Bruce Beam                                                      Oklahoma City, OK
                                                                BRI Imports, Inc. 73116                    Keith Whann updates the Association on recent legal cases and actions.
                                                                                                           By Keith Whann, NIADA General Counsel
Dealers Auto Auction of OKC                                     Phone: Broadway Extension
                                                                6920 N.(405) 848-1961
1028 S. Portland                                                Fax: (405) 848-1971
                                                                Oklahoma City, OK 73116                    32 Designing An Ad Just For You
Oklahoma City, OK 73147                                         Email: (405) 848-1961
                                                                Phone:                  Advertising should convey an advantage through benefits and stories of the bene-
Phone: (405) 947-2886                                           Fax: (405)848-1971                         fits. Never forget what your goal is with an ad of any type.
Fax: (405) 943-8370                                             Max Pedigo
                                                                Email:                  By Mark Tewart, Tewart Enterprises, Inc.
Email:                                           Autoplus of Woodward
                                                                P.O. Box 362
VICE PRESIDENTS                                                 Woodward, OK 73802
                                                                              Max Pedigo
John T. Longacre, IV                                            Phone: (580) 256-6732
                                                                Autoplus of Woodward                       INDEX TO ADVERTISERS
Taft Motors, Inc.                                               Fax: (580) 256-0244
                                                                P.O. Box 362
722 S. Linden Street                                            Email:
                                                                Woodward, OK 73802                         165 Auto Auction ..................................................................................23
Sapulpa, OK 74066                                               Phone: (580) 256-6732
Phone: (918) 224-7700                                           Julian Codding
                                                                Fax: (580) 256-0244                        81 Auto Auction, Inc. ..............................................................................9
Fax: (918) 227-3564                                             Reliable Motors, Inc.
                                                                Email:            ADESA Tulsa Auto Auction........................................Inside Front Cover
Email:                                    9201 S. Shields
                                                                Oklahoma City,
                                                                Julian Codding OK 73160                    Aircept/Rental Track ..............................................................................21
Gary Gilley                                                     Phone: Motors, Inc.
                                                                Reliable(405) 912-5000                     Albright Insurance, Inc. ..........................................................................7
ADESA Tulsa Auto Auction                                        Fax: S. Shields
                                                                9201 (405) 912-5005
16015 E. Admiral Place                                          Email:
                                                                Oklahoma City, OK 73160                    AUTOSAVE ............................................................................................14
Tulsa, OK 74116                                                 Phone: (405) 912-5000            
Phone: (918) 437-9044                                           Fax: (405) 912-5005
Fax: (918) 437-3989                                             Email:               CAR Financial Services, Inc...................................................................11
Email:                                                                                  Credit Acceptance Corporation ..................................Inside Back Cover
                                                                                                           Dealer’s Auto Auction of OKC ..............................................Back Cover
                                                                                                           Frazer Computing ..................................................................................19
                                                                                    Guardian Warranty Corporation ............................................................3
                                        NIADA Headquarters                                                 I-40 Auto Auction, Inc. ........................................................................20
                  2521 Brown Blvd. • Arlington, TX 76006-5203 • phone (817) 640-3838                       Jordan Insurance Group ..........................................................................9
                                                                                                           Loftis Wetzel Insurance ..........................................................................18
    OIADA is a publication of the Oklahoma Independent Automobile Dealers Association, P.O. Box
    6905, Moore, OK 73153. The OIADA State publication is published monthly by the National                Manheim Auctions of North Texas ......................................................15
    Independent Automobile Dealers Association Services Corporation. Periodical postage paid at
    Arlington, TX, and at additional offices. POSTMASTER: Send address changes to OIADA, P.O. Box          McNutt Auto Transport Service ............................................................23
    6905, Moore, OK 73153. The statements and opinions expressed herein are those of the individ-          Oklahoma Auto Exchange ....................................................................25
    ual authors and do not necessarily represent the views of the Oklahoma Independent Automobile
    Dealers Association or the National Independent Automobile Dealers Association. Likewise, the          Trader Publishing Company..................................................................13
    appearance of advertisers, or their identification as members of OIADA or NIADA does not consti-
    tute an endorsement of the products or services featured. Copyright © 2007 by O&R Morgan, Inc.         United Acceptance Corporation............................................................17
    dba OIADA. All rights reserved. Advertising requests should be directed to Troy Graff at 817-640-
    3838 or OIADA is a publication of the Oklahoma Independent Automobile
    Dealers Association (OIADA) but is mailed to all dealers in the state in an effort to encourage non-
    members to join the Association and support our efforts to improve the profit potential for the        OIADA OFFICE
    industry. For 50 years we have worked to represent the independent car dealer in Oklahoma. We
    need your support. For information on how to become a member of OIADA, please contact Odell            Rose & Odell Morgan, Executive Directors                   Fax: (405) 799-3367
    & Rose Morgan at 405-232-2947 or
    State Publications Manager/Sales: Troy Graff •                                          Jackie Garner, Office Manager                              Email:
    State Publications Editor: Laura Patterson •                                           Jared Morgan, Electronics/Software Technician              Hours: 9:00 a.m. to 4:30 p.m.
    State Publications Art and Production Manager: Rebekah Petty •                       Jina Schrader - Clerk                                      Newsletter published by
    State Publications Graphic Artist: Christy Haynes •                                  Steve Morgan, Consultant                                   NIADA Services, Inc.
    Printing: Southwestern ColorGraphics Printing & Mailing Specialists

4      FEB 2007
    Let’s Get                                                                                                                 By David L. Nunn, Esq.

       Straightened                                                                                     installment however long it remains in

                                                                                                        default. No delinquency charge may be
                                                                                                        collected if the installment has been
                                                                                                        deferred and a deferral charge, Section 2-
                                                                                                        204 of this title, has been paid or incurred.
                                                                                                        A delinquency charge may be collected at
                                                                                                        the time it accrues or at any time thereafter.
                                                                                                              (3) No delinquency charge may be
                                                                                                        collected on an installment which is paid in
                                                                                                        full within ten (10) days after its scheduled
                              What you don’t know about                                                 installment due date even though an
                         L A T E               C H A R G E S                                            earlier maturing installment or a delinquency
                                          can hurt you.                                                 charge on an earlier installment may not
                                                                                                        have been paid in full. For purposes of this
                                                                                                        subsection payments are applied first to
                                                                                                        current installments and then to
            Instinct and experience lead me to         portion of the scheduled installment or five     delinquent installments.
      believe there is confusion among dealers         dollars ($5), subject to adjustment                     [There is a subparagraph four, but it
      about late charges. What you don’t know          pursuant to Section 1-106 of this title; or      pertains to revolving charge accounts
      about late charges can hurt you. Despite              (b) the deferral charge, as set forth in    which are not applicable here].
      what you may have been told, a finance           subsection (1) of Section 2-204 of this title,         In looking at this statute, a question
      contract late charge is not necessarily an       that would be permitted to defer the             that may initially come to mind is the
      automatic $20 or $30, and you cannot just        unpaid amount of the installment for the         reference to a maximum $5 late charge.
      add it in out of whimsy or frustration. Let’s    period that it is delinquent.                    You may ask, “How come I hear of dealers
      get late charges straightened out.                    However, a minimum late fee of five         charging $20 late charges?” The question
            In Oklahoma, the permissible late          dollars ($5) may be contracted for by the        is answered by the statute itself. It says
      charge that a dealer can charge is               parties under either paragraph (a) or (b) of     that the $5 maximum late charge amount
      governed by the “UCCC,” more particularly        this subsection.                                 is subject to periodic adjustment as
      known as the Oklahoma Uniform Consumer                (2) A delinquency charge under              provided in section 1-106. If you read
      Credit Code. (This is different than the         paragraph (a) of subsection (1) of this          section 1-106, you find that the
      UCC—Uniform Commercial Code.) An                 section may be collected only once on an         Administrator of the Oklahoma Consumer
      improperly accrued late charge is not                                                             Credit Code (as a practical matter, the
      enforceable and cannot be legally
      collected. Okla. Stat. tit. 14A, §2-414 . Here            THE BEST WAY TO                         Oklahoma Department of Consumer Credit)
                                                                                                        is authorized to periodically adjust the
      is what the UCCC says about late charges                DETERMINE IF THERE                        amount listed in section 2-203(1)(a). This is
      (called “delinquency” charges in the UCCC)                                                        typically done each year, with the change
      in the context of consumer credit                   HAS BEEN AN ADJUSTMENT                        usually becoming effective on July 1 of the
      automobile sales:                                                                                 adjustment year. The best way to
             (1) With respect to a consumer credit      IS TO LOOK AT THE RELEVANT                      determine if there has been an adjustment
      sale, refinancing, or consolidation,                                                              is to look at the relevant portion of the
      including a revolving charge account, the          PORTION OF THE OKLAHOMA                        Oklahoma Department of Consumer
      parties may contract for a delinquency                                                            Credit’s Web site, which is:
      charge on any installment not paid in full         DEPARTMENT OF CONSUMER               
      within ten (10) days after its scheduled due                                                      larchanges.php
                                                        CREDIT’S WEB SITE, WHICH IS:
      date as follows:                                                                                        In doing so, you will see that the $5
            (a) an amount, not exceeding the                    amount referenced in section 2-203(a) has
      greater of five percent (5%) of the unpaid           title160/dollarchanges.php
                                                                                                                                continued on page 8
6   FEB 2007
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       Kay Etzel                 Jamie Blanton                   Daren Wilson
    Late Charges

    been adjusted to $20.50. (Prior to July 1,                What about the late charge if less
    2006 it was $20.)                                    than a full installment is delinquent (i.e.,
            Notice this—and this is important—           you get short checked on the customer’s
    section 2-203(1)(a) does not say that a              monthly payment)? In that situation, the
    dealer can unilaterally impose a late                statute says the 5 percent late charge is               earn the
    charge. It says the parties can contract for         computed on the delinquent portion of the
    a late charge, not to exceed the greater of          missed installment. Thus, if the monthly
    5 percent of the unpaid installment (but an          installment amount is $200, and the
    agreed $5 minimum late charge is okay) or            customer only pays one-half, you would do              law about
    $20.50 (per the July 2006 adjustment).               the 5 percent calculation on the $100
    Please be clear on this. You cannot simply           (which is that portion of the installment
    add a late charge, of any amount, to your            that remains unpaid), and then apply a late
    finance contract balance. The customer               charge of $20.50 (since it is greater than         late charges,
    must have previously agreed for you to               $5). Also, don’t add a late charge more
    charge them a late charge and the accrued            than once on any missed installment. (If
    late charge must also be within the limits
    set by the Oklahoma UCCC.
                                                         you charged the customer a late charge
                                                         for their January payment, do not charge                and then
          The OIADA supplied finance contracts           them another late charge on that install-
    do not elect the “deferral charge” option            ment in February). To comply with section
    listed in section 2-203(1)(b)(and wisely I
    think) 1. Instead, the most recently pub-
    lished version of the Retail Installment
    Contract, Security Agreement and Disclosure
                                                         2-203(3), apply the first money in to the
                                                         current month’s installment, then to
                                                         missed installments3.
                                                              Lastly, illegally accrued late charges
    Statement (i.e., the “long grey form”) and           can set a dealer up for a wrongful
    most recently published Retail Installment
    Contract—Simple Interest, state:
          Late Charge: If a payment is not
    received within (10) days of the day it is
                                                         repossession claim where the Buyer could
                                                         recover actual and punitive damages. This
                                                         could come about where the dealer
                                                         misapplies the payments and illegally
    due, the Buyer may be charged the greater            accrues several $20.50 late charges, then
    of 5 percent of the unpaid amount of the
    payment or the amount set for delinquency
    charges by the Administrator of the Oklahoma
    Department of Consumer Credit at the time
                                                         repossesses the customer’s vehicle
                                                         because the dealer comes to the mistaken
                                                         conclusion that the customer is in default.
                                                              In conclusion, here is a quick
    the payment becomes delinquent.                      summary on the application of late charges
                                                                                                        charge is 5 percent of that portion of the
                                                         contracted for under the above referenced
          Under either of these forms 2,   the                                                          missed installment or $20.50 (until the
                                                         OIADA finance contracts:
    maximum late charge is going to be 5                                                                next annual adjustment – adjustments, if
                                                              1 . You must have an advance
    percent of the unpaid installment or                                                                any, are made each July 1), whichever is
                                                         agreement for the late charge (and
    $20.50, whichever is greater (Note: The                                                             greater (but a contracted for minimum late
                                                         remember, blanks on the late charge block
    $20.50 amount applies until July 1, 2007.)                                                          charge of $5 is okay);
                                                         means $0, and that means no late charges
    Here are a few examples to illustrate how                                                                4. Regularly check the Department of
    to determine the amount of an agreed                                                                Consumer Credit’s Web site to see if there
                                                              2. Make sure the missed payment is
                                                                                                        has been an adjustment (up or down) of
    upon late charge (under the above                    more than (10) days delinquent before
    referenced OIADA finance contracts) where                                                           the $20.50 fee discussed above;
                                                         adding the late charge;
    the full installment is not paid within 10 days                                                          5. Comply with section 2-203(3) by
                                                              3. Make sure the contracted for late
    of its due date:                                                                                    always applying the “first money in” to the
                                                                                                        current month’s installment, then to
                                                                                                        missed installments; and
     If the Scheduled Installment          5% of Missed Scheduled       Then The Proper Late                 6. Do not add a late charge more than
           That is Missed is:                  Installment is:               Charge is:
                                                                                                        once on any missed installment.
                   $150                               $7.50                     $20.50                       This is the low down on late charges
                   $500                                $25                       $25                    as I see them. Learn the law about late
                    $90                               $4.50                     $20.50                  charges, and then follow the law.

8   FEB 2007
Late Charges                          However, my recommenda-
                                      tion is to throw out the old
     1  As I read this provision,     style finance contract and
all that you get is the prorat-       get the new. [OIADA Editor’s
ed interest that would accrue         Note: OIADA form entitled
on the missed installment.            Retail Installment Contract,
This is probably not the best         Security Agreement and                                   81 auction
option for most dealers.              Disclosure Statement (i.e.,
      2 There are probably            the popular “long grey form”)
still some old style forms            has been revised to provide
floating around out there             for a late charge of the
that have language                    greater of the five percent
providing for “five percent           (5%) or the flat fee. Please
(5%) of the unpaid amount of          call the OIADA at (405) 232-
the payment, but not to               2947 to order this new form.]
                                            3 The result of applying
exceed $_______.” This
effectively gives you the             section 2-203(3) is to
lesser, not the greater, of the       prohibit the assessment of a
5 percent or $20.50 formula.          late charge on subsequent
These old style finance con-          timely payments just
tracts were based upon that           because one payment was
version of section 2-203              late.
before it was changed in
2002. This style of form,
                                      This article addresses
when properly                         general principals of law. It is
completed and performed,              not a substitute for obtaining
                                      the advice of a competent
will not violate the current          attorney about a specific legal
version of section 2-203.             problem.


EVENTS                              AT A GLANCE
               Used Motor Vehicle & Parts Commission
                 meets the second Tuesday of the month
                        2401 NW 23rd, Suite 57
                           Oklahoma City, OK
                 February date is the 13th at 10:30 a.m.
                  March date is the 13th at 10:30 a.m.
                                                                              INSURANCE & BONDS SINCE 1956
                                                                         Non-Franchised Auto Dealers
                                                                         Free quotes (800) 616-3233
                                                                                     (580) 223-3233
                                                                         • DEALER & SALESMAN BONDS
                     Free Oklahoma Title Seminar                         • GARAGE LIABILITY
                      Hosted by Clinton Auto Auction
                    Exit 66 off I-40, go South 3 miles                   • DEALERS OPEN LOT - PHYSICAL DAMAGE
                     on Hwy 183, turn West 1/2 mile                      • WRECKER SERVICES
                            Lunch will be served
                  Call the OIADA office for date and time                • TRUCKING
                   (800) 346-4232 or (405) 232-2947
                                                                         We specialize in all types of automobile
                      New Auction Being Readied                          risks & write all coverages. Our service &
                     Manheim Auctions has acquired
                  the former Oklahoma City Auto Auction                  expertise set us apart from the competition.
                            at 5005 South I-35
                 Watch for Grand Opening Announcement
                 Oklahoma Legislative Session Begins
                               Feb. 5, 2007
                                                                         Call Lois Towler
               Sine Die Adjournment by 5 p.m. May 25, 2007               for a free consultation
                                                                                                                  FEB 2007   9

       Speaker Cargill Announces
       House Committee Assignments
       Cargill said the new committee framework includes 10 full standing committees and 26

             Speaker Lance Cargill’s new              COMMITTEES AND ASSIGNED                         • Higher Education & Career Tech
       committee assignments for the Oklahoma         MEMBERS INCLUDE:                                  Subcommittee - Terry Ingmire (R-Stillwater),
       House are listed below. Speaker Cargill                                                          Chair; Vice Chair: David Derby (R-Owasso).
                                                                                                        Members: Pam Peterson (R-Tulsa), Charlie
       has provided details about the restruc-        APPROPRIATIONS & BUDGET
                                                                                                        Joyner (R-Midwest City), Bill Nations (D-
       tured framework for the 36 full standing       COMMITTEE - Chris Benge (R-Tulsa), Chair;
                                                                                                        Norman), Jabar Shumate (D-Tulsa), Terry
       committees and subcommittees.                  Vice Chair: Ken Miller (R-Edmond).
                                                                                                        Hyman (D-Leon)
              “Our new committee structure truly      Members: Randy Terrill (R-Moore), Guy
       meets the needs of a 21st century              Liebmann (R-Oklahoma City), Shane Jett (R-
                                                                                                      • Arts & Culture Subcommittee - Lee
       legislature,” said Cargill (R-Harrah). “I’m    Tecumseh), John Carey (D-Durant), Bill
                                                                                                        Denney (R-Cushing), Chair; Vice Chair:
       pleased that we’ll be able to offer all        Nations (D-Norman), James Covey (D-
                                                                                                        Ben Sherrer (D-Pryor). Members: Scott
       members a meaningful role in shaping           Custer City), John Auffet (D-Stilwell)
                                                                                                        Martin (R-Norman), Randy McDaniel (R-
       both policy and budget issues, as well as                                                        Oklahoma City), Darrell Gilbert (D-Tulsa),
                                                      • Revenue & Taxation Subcommittee -
       offering greater input into the legislative                                                      Al McAffrey (D-Oklahoma City)
                                                        Randy Terrill (R-Moore), Chair; Vice
       process. And, we have achieved the right
                                                        Chair: Danny Morgan (D-Prague).
       balance of experience and diverse                                                              JUDICIARY & PUBLIC SAFETY
                                                        Members: Dale DeWitt (R-Braman), Tad
       viewpoints among the 101 lawmakers.”                                                           COMMITTEE - Rex Duncan (R-Sand
                                                        Jones (R-Claremore), Earl Sears (R-
              Cargill said the new committee                                                          Springs), Chair; Vice Chair: T.W. Shannon
                                                        Bartlesville), Joe Dorman (D-Rush
       framework includes 10 full standing                                                            (R-Lawton). Members: Marian Cooksey (R-
                                                        Springs), Richard Morrissette (D-
       committees and 26 subcommittees. Work                                                          Edmond), Rob Johnson (R-Kingfisher), Fred
                                                        Oklahoma City)
       on bills will begin in subcommittees before                                                    Jordan (R-Tulsa), Charlie Joyner (R-Midwest
       moving to the full committee and then to                                                       City), Mark McCullough (R-Sapulpa), Dan
                                                      • Elections & Redistricting
       the floor for action. Additionally, nine of                                                    Sullivan (R-Tulsa), Sue Tibbs (R-Tulsa),
                                                        Subcommittee - Trebor Worthen (R-
       the full standing committees will unify                                                        Ron Peterson (R-Broken Arrow), David
                                                        Oklahoma City), Chair; Vice Chair: Purcy
       both policy and budgetary responsibilities.                                                    Braddock (D-Altus), Ben Sherrer (D-Pryor),
                                                        Walker (D-Elk City). Members: Randy Terrill
              “This new combined approach will                                                        Ryan Kiesel (D-Seminole), Richard
                                                        (R-Moore), Dennis Adkins (R-Tulsa), Ryan
       give lawmakers all of the necessary                                                            Morrisette (D-Oklahoma City), Scott
                                                        McMullen (D-Burns Flat)
                                                                                                      Inman (D-Del City), Paul Roan (D-
       information they need when reviewing
                                                                                                      Tishomingo), Terry Harrison (D-McAlester)
       bills,” said Cargill. “And it will help the    EDUCATION COMMITTEE - Tad Jones (R-
       Appropriations and Budget Committee            Claremore), Chair; Vice Chair: Todd
                                                                                                      • Civil Justice Subcommittee - Dan
       complete its work more quickly and             Thomsen (R-Ada). Members: Ann Coody
                                                                                                        Sullivan (R-Tulsa), Chair; Vice Chair: Paul
       efficiently.”                                  (R-Lawton), Lee Denney (R-Cushing), Terry
                                                                                                        Roan (D-Tishomingo). Members: Colby
             Cargill noted that the Appropriations    Ingmire (R-Bartlesville), Sally Kern (R-
                                                                                                        Schwartz (R-Yukon), Todd Thomsen (R-
       and Budget Committee will continue to be       Oklahoma City), David Dank (R-Oklahoma
                                                                                                        Ada), John Trebilcock (R-Broken Arrow),
       responsible for drafting and negotiating the   City), Doug Cox (R-Grove), Phil Richardson
                                                                                                        Richard Morrissette (D-Oklahoma City),
       state budget.                                  (R-Minco), Dan Sullivan (R-Tulsa), Neil
                                                                                                        Ryan Kiesel (D-Seminole)
             Cargill pointed out that committee       Brannon (D-Arkoma), Ray McCarter (D-
                                                      Marlowe), Jabar Shumate (D-Tulsa), Eric
       assignments reflect the proportional party                                                     • Criminal Justice & Corrections
                                                      Proctor (D-Tulsa), Jeannie McDaniel (D-
       affiliation representation within the                                                            Subcommittee - Sue Tibbs (R-Tulsa),
                                                      Tulsa), Joe Dorman (D-Rush Springs), Terry
       Oklahoma House, with a number of                                                                 Chair; Vice Chair: Mark McCullough (R-
                                                      Hyman (D-Leon)
       committees actually having Democrat                                                              Sapulpa). Members: Terry Ingmire (R-
       majorities. There are 57 Republican                                                              Stillwater), Jason Murphey (R-Guthrie),
                                                      • Common Education Subcommittee -
       lawmakers and 44 Democrats in the House.                                                         Pam Peterson (R-Tulsa), Terry Harrison
                                                        Ann Coody (R-Lawton), Chair; Vice Chair:
       Representation on the 36 committees now                                                          (D-McAlester), Glen Bud Smithson (D-
                                                        Neil Brannon (D-Arkoma). Members: Dale
       stands at 56.8 percent for Republicans and                                                       Sallisaw), Chuck Hoskin (D-Vinita), Brian
                                                        DeWitt (R-Braman), Susan Winchester (R-
       43.2 percent for Democrats.                                                                      Renegar (D-McAlester)
                                                        Chickasha), Weldon Watson (R-Tulsa),
                                                        Ray McCarter (D-Marlowe), Ed Cannaday
                                                        (D-Porum)                                                            continued on page 12

10   FEB 2007
     Speaker Cargill                                 Steele (R-Shawnee), Randy Terrill (R-               Chair: Jerry Ellis (D-Valliant). Members:
                                                     Moore), Wes Hilliard (D-Sulphur), Larry             Tad Jones (R-Claremore), Skye McNiel (R-
     • Homeland Security Subcommittee -
                                                     Glenn (D-Miami), Rebecca Hamilton (D-               Bristow), Mike Reynolds (R-Oklahoma
       David Braddock (D-Altus), Chair; Vice
                                                     Oklahoma City), Glen Bud Smithson (D-               City), Al Lindley (D-Oklahoma City)
       Chair: Jason Murphey (R-Guthrie).
                                                     Sallisaw), Jeannie McDaniel (D-Tulsa),
       Members: Gary Banz (R-Midwest City),
                                                     Darrell Gilbert (D-Tulsa)                         • Children & Families Subcommittee -
       Paul Roan (D-Tishomingo), Glen Bud
                                                                                                         Pam Peterson (R-Tulsa), Chair; Vice
       Smithson (D-Sallisaw)
                                                     • Health Subcommittee - Kris Steele (R-             Chair: Jabar Shumate (D-Tulsa).
                                                       Shawnee), Chair; Vice Chair: Jerry                Members: Lisa Billy (R-Purcell), Mike
                                                       Shoemake (D-Morris). Members: Wes                 Reynolds (R-Oklahoma City), Jeannie
                                                       Hilliard (D-Sulphur), Weldon Watson (R-           McDaniel (D-Tulsa)
     Liebmann (R-Oklahoma City), Chair; Vice
                                                       Tulsa), George Faught (R-Muskogee),
     Chair: Scott Martin (R-Norman). Members:
                                                       Todd Thomsen (R-Ada), Guy Liebmann (R-          • International, Federal & Tribal
     Steve Martin (R-Bartlesville), Mike
                                                       Oklahoma City), John Trebilcock (R-               Relations Subcommittee - Lisa Billy (R-
     Thompson (R-Oklahoma City), John Wright
                                                       Broken Arrow), Mark McCullough (R-                Purcell), Chair; Vice Chair: Wade
     (R-Broken Arrow), Rex Duncan (R-Sands
                                                       Sapulpa), Randy McDaniel (R-Oklahoma              Rousselot (D-Okay). Members: Shane
     Springs), Charlie Joyner (R-Midwest City),
                                                       City), Ron Peters (R-Tulsa), Charles Key          Jett (R-Tecumseh), David Braddock (D-
     Mike Jackson (R-Enid), Lisa Billy (R-
                                                       (R-Bethany), John Wright (R-Broken                Altus), Chuck Hoskin (D-Vinita), John
     Purcell), R.C. Pruett (D-Antlers), Mike
                                                       Arrow), Larry Glenn (D-Miami), Rebecca            Trebilcock (R-Broken Arrow)
     Brown (D-Tahlequah), Dale Turner (D-
                                                       Hamilton (D-Oklahoma City), John Auffet
     Holdenville), Jerry McPeak (D-Warner),
                                                       (D-Stilwell), Jeannie McDaniel (D-Tulsa),       ENERGY & TECHNOLOGY COMMITTEE -
     Eric Proctor (D-Tulsa), Al Lindley (D-
                                                       Lucky Lamons (D-Tulsa), Anastasia               Dennis Adkins (R-Tulsa), Chair; Vice Chair:
     Oklahoma City)
                                                       Pittman (D-Oklahoma City), Scott                Weldon Watson (R-Tulsa). Members: Terry
                                                       BigHorse (D-Pawhuska)                           Ingmire (R-Stillwater), Mike Jackson (R-
     • Transportation Subcommittee - Mike
                                                                                                       Enid), Rob Johnson (R-Kingfisher), Mike
       Thompson (R-Oklahoma City); Chair;
                                                     • Elderly & Long-term Care                        Thompson (R-Oklahoma City), Steve Martin
       Vice Chair: Richard Morrissette (D-
                                                       Subcommittee - David Dank (R-                   (R-Bartlesville), Trebor Worthen (R-Oklahoma
       Oklahoma City). Members: Don Armes
                                                       Oklahoma City), Chair; Vice Chair: Larry        City), Marian Cooksey (R-Edmond), Ken
       (R-Faxon), Dennis Johnson (R-Duncan),
                                                       Glenn (D-Miami). Members: David Derby           Miller (R-Edmond), Sue Tibbs (R-Tulsa),
       Jeff Hickman (R-Dacoma), Jason
                                                       (R-Owasso), Ann Coody (R-Lawton),               Danny Morgan (D-Prague), Lucky Lamons
       Murphey (R-Guthrie), Phil Richardson (R-
                                                       George Faught (R-Muskogee), Anastasia           (D-Tulsa), Ryan McMullen (D-Burns Flat),
       Minco), T.W. Shannon (R-Lawton), Trebor
                                                       Pittman (D-Oklahoma City), Jerry Ellis (D-      Ken Luttrell (D-Ponca City), Ben Sherrer (D-
       Worthen (R-Oklahoma City), Eric Proctor
                                                       Valliant)                                       Pryor), Terry Harrison (D-McAlester), Ray
       (D-Tulsa), Dale Turner (D-Holdenville),
                                                                                                       McCarter (D-Marlowe)
       R.C. Pruett (D-Antlers), Jerry McPeak (D-
                                                     • Veterans Subcommittee - Gary Banz (R-
       Warner), Al McAffrey (D-Oklahoma City)
                                                       Midwest City), Chair; Vice Chair: Ryan          • Energy Subcommittee - Marian Cooksey
                                                       Kiesel (D-Seminole). Members: Rex                 (R-Edmond), Chair; Vice Chair: Fred
     • County & Municipal Government
                                                       Duncan (R-Sand Springs), Ann Coody (R-            Jordan (R-Tulsa). Members: Lee Denney
       Subcommittee - R.C. Pruett (D-Antlers),
                                                       Lawton), Fred Jordan (R-Tulsa), Kris              (R-Cushing), David Derby (R-Owasso),
       Chair; Vice Chair: Charlie Joyner (R-
                                                       Steele (R-Shawnee), Paul Wesselhoft (R-           John Enns (R-Waukomis), Skye McNiel (R-
       Midwest City). Members: John Enns (R-
                                                       Moore), Wallace Collins (D-Norman), Jerry         Bristow), Colby Schwartz (R-Yukon),
       Waukomis), Sue Tibbs (R-Tulsa), John
                                                       Ellis (D-Valliant), Scott Inman (D-Del City),     Dennis Johnson (R-Duncan), Ron Peters
       Trebilcock (R-Broken Arrow), Rebecca
                                                       Paul Roan (D-Tishomingo)                          (R-Tulsa), Ron Peterson (R-Broken Arrow),
       Hamilton (D-Oklahoma City), Darrell
                                                                                                         Scott Martin (R-Norman), Earl Sears (R-
       Gilbert (D-Tulsa)
                                                     HUMAN SERVICES COMMITTEE - Ron                      Bartlesville), Paul Wesselhoft (R-Moore),
                                                     Peters (R-Tulsa), Chair; Vice Chair: Dennis         Danny Morgan (D-Prague), Lucky Lamons
     • Government Modernization, Agency
                                                     Johnson (R-Duncan). Members: Lisa Billy             (D-Tulsa), Ryan McMullen (D-Burns Flat),
       Review & Administrative Rules
                                                     (R-Purcell), Charles Key (R-Bethany), Sally         Ken Luttrell (D-Ponca City), Ben Sherrer
       Subcommittee - John Wright (R-Broken
                                                     Kern (R-Oklahoma City), Kris Steele (R-             (D-Pryor), Terry Harrison (D-McAlester),
       Arrow), Chair; Vice Chair: Mike Brown
                                                     Shawnee), Pam Peterson (R-Tulsa), Jason             Ray McCarter (D-Marlowe), Jerry McPeak
       (D-Tahlequah). Members: Dennis
                                                     Murphey (R-Guthrie), Scott Martin (R-               (D-Warner), Ryan Kiesel (D-Seminole), Joe
       Johnson (R-Duncan), John Trebilcock (R-
                                                     Norman), Randy McDaniel (R-Oklahoma                 Dorman (D-Rush Springs)
       Tulsa), Mike Reynolds (R-Oklahoma City),
                                                     City), Al McAffrey (D-Oklahoma City),
       Ken Miller (R-Edmond), Lucky Lamons (D-
                                                     Scott BigHorse (D-Pawhuska), Al Lindley           • Telecommunications & Utility Regulation
       Tulsa), Ryan McMullen (D-Burns Flat)
                                                     (D-Oklahoma City), Anastasia Pittman (D-            Subcommittee - Steve Martin (R-
                                                     Oklahoma City), Jabar Shumate (D-                   Bartlesville), Chair; Vice Chair: Earl Sears
                                                     Tulsa), Wade Rousselot (D-Okay), Jerry              (R-Bartlesville). Members: Shane Jett (R-
     (R-Grove), Chair; Vice Chair: Colby
                                                     Ellis (D-Valliant)                                  Tecumseh), Ron Peterson (R-Broken Arrow),
     Schwartz (R-Yukon). Members: Gary Banz
                                                                                                         Wes Hilliard (D-Sulphur), Scott Inman (D-
     (R-Midwest City), David Dank (R-Oklahoma
                                                     • Social Services Subcommittee - Sally              Midwest City), Scott BigHorse (D-Pawhuska)
     City), Dennis Adkins (R-Tulsa), John Enns (R-
                                                       Kern (R-Oklahoma City), Chair; Vice
     Waukomis), Greg Piatt (R-Ardmore), Kris                                                                                  continued on page 14

12   FEB 2007
     Speaker Cargill
                                                       Members: Guy Liebmann (R-Oklahoma           Walker (D-Elk City), Brian Renegar (D-
     • Aerospace & Technology                          City), Chris Benge (R-Tulsa), Danny         McAlester)
       Subcommittee - Mike Jackson (R-Enid),           Morgan (D-Prague), Mike Shelton (D-
       Chair; Vice Chair: Mike Shelton (D-             Oklahoma City), John Carey (D-Durant)       • Agriculture & Commerce
       Oklahoma City). Members: Skye McNiel                                                          Subcommittee - Don Armes (R-Faxon),
       (R-Bristow), Mark McCullough (R-              • Banking Subcommittee - Susan                  Chair; Vice Chair: John Enns (R-
       Sapulpa), Gary Banz (R-Midwest City),           Winchester (R-Chickasha), Chair; Vice         Waukomis). Members: Mike Jackson
       T.W. Shannon (R-Lawton), James Covey            Chair: John Carey (D-Durant). Members:        (R-Enid), Rob Johnson (R-Kingfisher),
       (D-Custer City), Purcy Walker (D-Elk City),     Chris Benge (R-Tulsa), Rex Duncan (R-         Ryan McMullen (D-Burns Flat), James
       Anastasia Pittman (D-Oklahoma City)             Sand Springs), Charles Key (R-Bethany),       Covey (D-Custer City) , Wade Rousselot
                                                       Steve Martin (R-Bartlesville), Neil           (D-Okay)
     ECONOMIC DEVELOPMENT & FINANCIAL                  Brannon (D-Arkoma), Purcy Walker (D-Elk
     SERVICES COMMITTEE - Ron Peterson (R-             City), Anastasia Pittman (D-Oklahoma        • Tourism & Recreation Subcommittee -
     Tulsa), Chair; Vice Chair: George Faught          City), R.C. Pruett (D-Antlers)                Terry Hyman (D-Leon), Chair; Vice
     (R-Muskogee). Members: Jeff Hickman (R-                                                         Chair: Randy McDaniel (R-Oklahoma
     Dacoma), Ron Peters (R-Tulsa), Greg Piatt       • Industry & Labor Subcommittee - Paul          City). Members: Doug Cox (R-Grove),
     (R-Ardmore), Earl Sears (R-Bartlesville),         Wesselhoft (R-Moore), Chair; Vice Chair:      George Faught (R-Muskogee), Mike
     David Derby (R-Owasso), Paul Wesselhoft           Ed Cannaday (D-Porum). Members:               Brown (D-Tahlequah), Ken Luttrell (D-
     (R-Moore), Susan Winchester (R-                   David Dank (R-Oklahoma City), Sally Kern      Ponca City), Ed Cannaday (D-Porum)
     Chickasha), Fred Jordan (R-Tulsa), John           (R-Oklahoma City), Weldon Watson (R-
     Auffett (D-Stilwell), Mike Brown (D-              Tulsa), Wallace Collins (D-Norman), Jerry   • Environment & Wildlife Subcommittee
     Tahlequah), Mike Shelton (D-Oklahoma              Shoemake (D-Morris)                           - Phil Richardson (D-Minco) Chair; Vice
     City), Wallace Collins (D-Norman), Chuck                                                        Chair: Glen Bud Smithson (D-Sallisaw).
     Hoskin (D-Vinita), Jerry McPeak (D-Warner),     NATURAL RESOURCES COMMITTEE - Dale              Members: Dennis Adkins (R-Tulsa),
     Ed Cannaday (D-Porum)                           DeWitt (R-Braman), Chair; Vice Chair: Skye      Colby Schwartz (R-Yukon), Mike
                                                     McNiel (R-Bristow). Members: Don Armes          Thompson (R-Oklahoma City), Dan
     • Insurance & Retirement Subcommittee           (R-Faxon), Jeff Hickman (R-Dacoma), Phil        Sullivan (R-Tulsa), Jerry Shoemake (D-
       - Jeff Hickman (R-Dacoma), Chair; Vice        Richardson (R-Minco), Terry Hyman (D-           Morris), Brian Renegar (D-McAlester),
       Chair: Charles Key (R-Bethany).               Leon), Dale Turner (D-Holdenville), Purcy       Dale Turner (D-Holdenville)

                                                                                                    O&R Morgan, Inc.

                                                                                        CHECK WITH OIADA
                                                                                         FOR YOUR BONDS
                                                                                              DEALER BOND RATES
                                                                                Used Dealer Bond        $15,000.00              -      $105.00
                                                                                Wholesale Dealer Bond   $25,000.00              -      $250.00
                                                                                Used Car Auction Bond   $25,000.00              -      $250.00
                                                                                Used Car Auction Bond   $50,000.00              -      $500.00
                                                                                Used Car Salesman       $ 1,000.00              -      $ 50.00
                                                                                Mobile Home Dealer      $30,000.00              -      $600.00

                                                                                    • QUICK TURNAROUND SERVICE
                                                                                    • EASY ONE PAGE APPLICATION
                                                                                    • NO FINANCIAL STATEMENTS REQUIRED IN
                                                                                      MOST CASES FOR USED DEALER BOND
                                                                                    • NO FINANCIAL STATEMENT REQUIRED FOR
                                                                                      SALESMAN’S BOND
                                                                                    • CHECKS OR CREDIT CARDS ACCEPTED

                                                                                  FOR INFORMATION ON THESE AND OTHER BONDS:
                                                                                          CALL OIADA at 1-800-346-4232
                                                                                                FAX: 405-799-3367

14   FEB 2007
     DEALER INIFO                                                                                                       December 12, 2006

     Used Motor Vehicle
          Director John Maile          dealer and used salespersons’     declined the invitation. Maile    The classes are held on each
     reported that in spite of the     licenses in FY 2007.              will go to their offices and      Monday prior to the
     Thanksgiving holidays and two          Maile provided the           meet with the DEQ staff and       Commission meeting on the
     days being closed because of      Commissioners with copies of      attempt to resolve the differ-    second Tuesday of each
     snow and ice, the renewal         a letter from the State DEQ       ences between the Agencies        month. The sessions run from
     licenses have been mailed out     regarding DEQ’s planned           in order to be able to issue      9 a.m. to about 12 p.m. You
     for all the applications that     response to dismantlers that      the dismantler licenses.          are asked to make reserva-
     were completed through            don’t yet have storm water              Deputy Director Ken         tions so staff can be prepared
     November 15.                      runoff permits. Maile also        Whitehead’s Monthly Report        to accommodate you. You
          Maile also explained that    provided copies of his            indicated that Commission         should call the Commission at
     their records showed a drop in    response letter to the DEQ on     Investigators completed 51        (405) 949-2626 to make your
     revenue from used dealer and      that issue. There are still       inspections for the period. In    reservations.
     salespersons’ licenses of         problems with that issue that     the same period, the staff
     about $80,000 in FY 2006          could forestall the issuance of   held four informal hearings to         In other business, the
     over the revenues for FY          some dismantler’s licenses.       settle complaints; issued three   Commission voted to sus-
     2005. He said that the            Maile had invited members of      Cease and Desist letters;         pend/abandon the following
     recently increased fee            DEQ to attend the                 handled 19 written complaints     licenses until compliance is
     amounts will help to offset the   Commission meeting to work        six of which were title issues,   met:
     anticipated drop in used          out a solution, but DEQ           one had to do with contract
                                                                                                           Gee Motor Company –
                                                                         violations, one was a mechani-    Oklahoma City – (WD) Out of
                                                                         cal issue and 11 were related     business, Ronald Gee surren-
                                                                                                           dered license.
                                                                         to miscellaneous issues.
                                                                         Whitehead reported that           Hawkes Motor Company, Inc.
                                                                                                           – Pryor – Out of business
                                                                         complaints received by the        per owner, Brent Caldwell.
                                                                         Commission are down by
                                                                                                           Mr. Ochoa Auto Sales –
                                                                         about half over the past three    Tulsa – Out of Business.
                                                                         or four years. He attributed      Location abandoned per
                                                                                                           Investigator’s report and
                                                                         the decrease to the dealer        phone disconnected.
     INSURANCE & RISK MANAGEMENT SOLUTIONS SINCE 1931                    education program, to the
                                                                                                           Olin Used Cars – Spencer –
                                                                         field agent’s auditing            (RB) Out of business; grant-
       Specializing in Garage Liability                                  procedures and to the             ed automotive dismantler
        For Non-Franchised Dealers                                       Commission’s ability to issue
      • Dealers Physical Damage                                          fines for persistent violators.   Reliance Motors – Warr
                                                                                                           Acres – Out of business;
                                                                               For the period, the
      • Garage Keepers                                                                                     change of ownership.
                                                                         Commission education pro-
      • Wrecker Services                                                                                   TC’s Pawn & Auto – Enid –
                                                                         gram had 30 in attendance.        Out of business; change of
      • Transportation Services
                                                                         All new applicants are            ownership.
      • Mobile Home Dealers                                              required to attend the            Trinity Auto Sales, LLC –
      • Salvage Dealers                                                  Commission’s education            Newcastle – (WD) Out of
      • Worker’s Compensation                                            program in order to complete
                                                                                                           business; granted used
                                                                                                           motor vehicle dealer license.
      • Dealer’s Bond                                                    the State licensing require-
                                                                                                           Tulsa Auto Master – Tulsa –
                                                                         ments. The sessions are held
     LOW PREMIUM PROGRAMS AVAILABLE                                                                        Out of business; change of
                                                                         at the Commission                 ownership.
             For Guaranteed Professional Service Call:
                                                                         conference room at 2401 NW
        KATHY TAYLOR 1-888-794-2878                                      23, Suite 57, Oklahoma City.

18   FEB 2007

DON’T                                   Gunning & Associates, Inc.
                                  (G & A), a company in the
                                  business of contracting out
                                                                        Headquarters-Buyback Notice”
                                                                        and “Bank Mandated Repo” and
                                                                        “Off Lease $59 Down Disposal,”

                                  marketing and sales assistance        when, in truth, the vehicles being
                                  to motor vehicle dealers, recently    sold were neither buyback,
                                  agreed to pay $200,000 to settle      repossessed or off lease vehicles
                                  claims that its advertising           nor were they obtained from the

ADVERTISING                       practices and “sales events”
                                  violated Ohio’s Consumer Sales
                                  Practices Act.
                                        The Attorney General of Ohio
                                                                        entity identified.
                                                                             In addition to paying
                                                                        $200,000 to the State of Ohio
                                                                        for enforcement costs, G & A

AGENCY                            asserted that G & A enticed
                                  dealers’ potential customers by
                                  misrepresenting the source of
                                                                        signed an agreement stating
                                                                        that it would change its sales
                                                                        and marketing promotions to

                                  the vehicles for sale, advertising    comply with Ohio Consumer
                                  with the intent to not sell the       Protection Laws.
                                  vehicles as advertised, misrepre-          Oklahoma dealers please bear
                                  senting the amount of and             in mind that marketers that run

IN TROUBLE                        reasons for price reductions,
                                  implying a false premise for
                                  selling vehicles and misrepre-
                                  senting the sale price of vehicles.
                                                                        false or misleading ads for your
                                                                        dealership place your dealer-
                                                                        ship in jeopardy, because the
                                                                        dealership ultimately is
Dealer marketing firm pays Ohio   For example, G & A used               responsible to the licensing
Attorney General $200,000         language in its advertisements        agency for any ads running for
                                  such as, “Ford Marketing              its products.

                                                                                                FEB 2007     19
     CASE OF THE MONTH                                                                                         By Keith Whann, NIADA General Counsel

     Supreme Court                                                         the purchaser bee-lined it to
                                                                           the State of Ohio to obtain a
                                                                                                                  a holder of such a certificate
                                                                                                                  are not absolute. The Act

     Finds That Thief                                                      new Certificate of Title. Where
                                                                           to next? You guessed it. He
                                                                           traded the vehicle in at an
                                                                                                                  “further provides that the
                                                                                                                  Registrar of Motor Vehicles
                                                                                                                  must cancel any Certificate of

     Cannot Convey                                                         Ohio Used Car Dealership. The
                                                                           vehicle was then sold at
                                                                                                                  Title to a stolen vehicle if upon
                                                                                                                  investigation, it appears that

     Good Title To                                                         wholesale to another dealer,
                                                                           who in turn sold it to a retail
                                                                                                                  such Certificate of title was
                                                                                                                  improperly issued.” Citing to

     A Bona Fide
                                                                           consumer. Meanwhile, when              two prior Court of Appeals’
                                                                           the original seller discovered         decisions interpreting Ohio’s
                                                                           that the check was no good,            Title Act and the Supreme

     Purchaser                                                             she reported the vehicle
                                                                           stolen to the Missouri police.
                                                                           When the Ohio Bureau of
                                                                                                                  Court of Ohio’s decision in
                                                                                                                  Hardware Mut. Cas. Co. V.
                                                                                                                  Gall, the court noted that a
                                                                           Motor Vehicles received the            “stolen vehicle” includes a
     The main issue before the court was whether a thief
                                                                           stolen vehicle notice, it              vehicle stolen by fraud or
     could transfer valid title to a bona fide purchaser for

     value who had no knowledge of the theft.
                                                                                          THE MAIN ISSUE BEFORE THE
           The facts in this case of    for it with a bad check. Before                  COURT WAS WHETHER A THIEF
       the month may be familiar to     the check cleared the bank,                      COULD TRANSFER VALID TITLE
       many of you. The story began     the seller delivered the vehicle
                                                                                          TO A BONA FIDE PURCHASER
       in the State of Missouri when    and the signed Certificate of
                                                                                              FOR VALUE WHO HAD NO
       an individual sold her vehicle   Title over to the purchaser.
                                                                                            KNOWLEDGE OF THE THEFT.
       to another individual who paid   Before the ink was even dry,

                                                                           canceled the Ohio Certificate          deception, to hold otherwise

       TUESDAY 6:30 PM                                                     of Title, and the parties began
                                                                           working their way up the title
                                                                                                                  would permit a thief to pass
                                                                                                                  title of a vehicle stolen by

      I-40 AUTO AUCTION                                                    chain to recoup their dam-
                                                                           ages, ultimately leading to the
                                                                                                                  fraud, which subverts the
                                                                                                                  purpose of the Act. Therefore,
                  3737 EAST I-40                                           filing of Allan Nott Enterprises,      under Ohio’s Certificate of
            Featuring Salvation Army                                       Inc. v. Nicholas Starr Auto LLC.       Motor Vehicle Title Act, a thief
                 Absolute Sales                                                  The main issue before            cannot convey good title to a
     • Public Auction
    • Public Auction                          • Restaurant
                                             • Restaurant                  the court was whether a thief          stolen vehicle, even if the
     • Lighted Facility
    • Lighted Facility                        • Fully Paved
                                             • Fully Paved                 could transfer valid title to a        Certificate of Title was valid on
     • Reserved Numbers
    • Reserved Numbers                        • Security Fenced
                                             • Security Fenced             bona fide purchaser for value          its face.
     • Prime Time Available
    • Prime Time Available                    • Easy Access
                                             • Easy Access
     • Floorplan Xpress Financing
    • Floorplan Xpress Financing
                                                                           who had no knowledge of the                  In this case, the dealer
     • Credit Cards Accepted                                               theft. The Trial Court and             who had to reimburse the cost
    • Checks/Credit Cards Accepted
     • AFC Financing Available
    • AFC Financing Available
     • DSC Financing Available                                             Court of Appeals said “yes”            of the vehicle to the dealer-
    • DCS Financing Available
     • Dealer Finance Available                                            according to the provisions in         ship that purchased it at
                                                                           the Uniform Commercial Code            wholesale and pursue the
   We Appreciate                                                           and Ohio’s Retail Installment          original seller who committed
                                                                           Sales Act, but the Supreme             the fraud for recourse probably
                        Your Business!                                     Court of Ohio said “no.” It            wasn’t happy about the out-
                                                                           found that, pursuant to Ohio’s         come. The best way to protect
          Located Between Scott (Exit 154) &                               Certificate of Motor Vehicle           your dealership is to make sure
             Sunnylane (Exit 155) on I-40                                  Title Act, a person must pos-          you have good funds before you
          405-670-0006 • Fax 405-670-3006                                  sess a Certificate of Title to         deliver a vehicle, and certainly
         1 Mile East of I-40 & I-35 Junction                               claim ownership of a motor             before you transfer title to a
                                           vehicle. However, the rights of        purchaser.

20 O I A D A
   FEB 2007
OIADA NEW & RENEWAL MEMBERS                                                      BE ON THE ALERT
The following list includes members who joined or renewed their OIADA/NIADA
                                                                                 New Way To Be Carjacked
membership during November 2006. We express our sincere appreciation for         Heads up everyone!
all the members of OIADA, and we extend our invitation to dealers who are not
members. A membership application can be found on page 26 in this

magazine. Your participation is needed for this Association to remain a strong         ou walk across the park-        money, and your keys. Your
and effective voice for the industry.                                            ing lot, unlock your car and get      home and your identity are now
David Rath, President
                                                                                 inside. You start the engine and      compromised!
 R=Renewal – N=New                                                               shift into Reverse. When you          BE AWARE OF THIS NEW
                                                                                 look into the rearview                SCHEME THAT IS NOW
 R   Whitney-Hunt Motor Company       Victor K. Whitney         Duncan           mirror to back out of your            BEING USED
 R   Tidmore’s Used Cars              John H. Tidmore           Valliant         parking space, you notice a                 If you see a piece of
 R   Elite Motors, Inc.               Earl Cook                 Sayre
                                                                                 piece of paper or other obstruc-      paper or other obstruction in
 R   Newell Coach Corporation         Karl Blade                Miami
 R   James Hodge Ford, Inc.           James E. Hodge            Idabel           tion in the rear window. So, you      your back window, just drive
 R   Bob Moore Cadillac Olds Norman   Mark P. Moore             Norman           shift into Park, unlock your          away, remove the object later
 R   House of Kawasaki                Doug Monson               Oklahoma City    doors and jump out of your            and be thankful that you read
 R   Richardson Auto Center           Dewey Richardson          Waurika          car to remove that paper (or          this alert.
 R   Current Classics                 William F. McDuff, Jr.    Chickasha        whatever it is) that is                     I hope you will forward this
 R   Randy Michell Auto               Randy Mitchell            Muldrow          obstructing your view.                information to friends and fami-
 R   Oklahoma Auto Exchange, LLC      Mike Clopton              Oklahoma City
                                                                                       When you reach the back         ly, especially to women. A purse
 R   66 Auto Sales                    66 Federal Credit Union   Bartlesville
 R   Mac’s Auto Sales                 Jon Segura                Stillwater       of your car that is when the          contains all kinds of personal
 R   Carter’s Car Country             Walter L. Carter          Duncan           carjackers appear out of              information and identification
 R   T & D Motor Co.                  Tony D. Engel             Bethany          nowhere, jump into your car           documents, and you certainly
 R   R-K Motors, Inc.                 John H. Rudy              Sand Springs     and take off. They practically        do NOT want this to fall into the
 R   Import Motors                    Gus Mazroy                Piedmont         mow you down as they speed            wrong hands.
 R   Boyd Performance Classic Cars    Danny E. Boyd             Porter           off in your car.
 R   Lake Country Motors, LLC         Gary Carpenter            Sulphur
                                                                                       And guess what, ladies? I       This information provided by:
 R   Tinker Pickups & Vans            Ray Skinner               Midwest City                                           Lieutenant Tony Bartolome,
 R   Frazer Computing, Inc.           Michael Frazer            Canton, NY       bet your purse is still in the car.
                                                                                                                       Bureau of Investigations, Florida
 N   Absolute Credit Auto, Inc.       Alan West                 Yukon            So, now the carjacker has your        Highway Patrol, P.O. Box 593527,
                                                                                 car, your home address, your          Orlando, FL 32859.

                                                                                                                                              FEB 2007      21

        While there isn’t much risk for the consumer when buying a new vehicle online, the used dealer must be more accommodating
        to the condition of the vehicle.

          As a dealer, are you still uncertain      retailing site in their search.                warranties, customer protection pro-
      about selling vehicles over the Internet?          While there isn’t much risk for the       grams, and of course, an Auto Check or
            More and more buyers are turning to     consumer when buying a new vehicle             CarFax vehicle title history.
      automotive Web sites for research on          online, the used dealer must be more                 To increase your actual retail used
      vehicles as well as actually buying the       accommodating to the condition of the          vehicle sales in 2007, develop and
      vehicle of their choice. How many, you        vehicle, i.e., don’t just say the vehicle      maintain a Web site for your dealership
      ask? Well, consumer surveys are showing       has a scratch but tell the buyer how long      and stand behind the product that you
      that more than 80 percent of consumers        the scratch is; this will help you sell more   sell. Then enjoy the added sales success
      utilize the Internet for some or all of the   used vehicles.                                 the Internet can bring to your
      buying process. This is four times as              To increase your opportunities to sell    dealership.
      many in 2002, and twice as many as            more used vehicles online, offer a return
      recently as two years ago. And, not all       policy just in case the vehicle is a lemon.
      these potential customers are going to        Also, other extras to give the retail cus-     --Robert Sullivan, President,
      research sites. For example, it’s estimat-    tomer a sense of security when buying a
      ed that almost one-third use an auto          used vehicle on the Internet are extended      (423) 883-3819

22 O I A D A
   FEB 2007
    Select Providers

         Guardian Warranty Corporation
  “Simply the Best” 1-800-482-7357 – O&R Morgan, Inc. dba OIADA is
 pleased to list the Guardian Warranty Corp. as a “Select Provider” of
 service contracts to Oklahoma dealers, because it is simply the best.

   ZURICH Financial Services (Insurance)
OIADA is pleased to list Zurich Financial Services (Empire Fire and Marine
   Insurance) as a “Select Provider” of dealership insurance, granting
    special consideration on premiums for OIADA members. For more
              information, contact OIADA at 800-346-4232.

                 Web site Development                                             erv
Jared Morgan – 405-520-9210 or - We are proud to list      e S ctions
                                                                              W u
                                                                                 A     ide
  Jared E. Morgan as a “Select Provider” of Web site development and          All ionw
                                                                               N at
 maintenance. A properly developed and managed Web site can give you
   the ability to list your inventory as it changes – on a daily basis, if
  necessary. For details, contact Mr. Morgan at the above listed phone
                          number or email address.

                                                                                        ATTENTION DEALERS
                                                                                     Are You Buying Your Cars Online?
                    David L. Nunn, Esq.                                                    Call McNutt to pick it up.
    Phone 405-330-4053, Fax 405-330-8470 – David L. Nunn heads the                  Whether you have one car or several, we’ll deliver
                                                                                        them to your doorstep within 2-3 days!
Edmond, Okla. law office of David L. Nunn, P.C. which serves the greater
   metro Oklahoma City area. We are pleased to include Mr. Nunn as a
  “Select Provider” of legal service to the industry. David L. Nunn, P.C.    That’s right! No Minimum Load and No Waiting!
                                                                              Go with the pros! Hundreds of Trucks Available!
is located at 17 East First Street, Edmond, OK 73034. Mr. Nunn is includ-
 ed as a “Select Provider” not because he asked to be, but because we               Call Now to Schedule Your Pickup!
          know the kind of service that he provides to dealers.                       800-755-2324 • fax: 417-644-2275

                                                                                                                                         FEB 2007   23

      This historic agreement will ensure that the Senate’s business can be conducted in an orderly fashion.

           Democrats and Republicans in the             reach this historic agreement. Republicans        FLOOR LEADERS
      Oklahoma State Senate have reached a              and Democrats alike realize that we must                Each party will appoint a co-floor leader.
      historic agreement to share power, Senate         work together to make sure the people’s busi-     The co-floor leaders will share the responsibility
      leaders announced Tuesday. The 48-member          ness gets done,” stated Senate Co-President       for scheduling the daily legislative calendar.
      Senate has an unprecedented tie of 24             Pro Tempore Glenn Coffee, R-Oklahoma City.        The co-floor leaders will rotate the manage-
      Republicans to 24 Democrats.                                                                        ment of floor activities on a daily basis.
                                                        HIGHLIGHTS OF THE STATE SENATE’S
            The leaders said the historic agreement     POWER-SHARING AGREEMENT                           PRESIDING OFFICERS
      will ensure that the Senate’s business can be                                                             Democrats and Republicans will share
      conducted in an orderly fashion, and follows      MAJORITY PARTY
                                                              The power-sharing agreement recognizes      presiding duties, rotating daily. On days
      several weeks of intense negotiations.                                                              when one party's co-floor leader is
            “I am proud of the agreement we are         that there is no majority party in the Oklahoma
                                                        State Senate. Both parties will share power.      managing floor activities, the other party
      announcing here today,” said President Pro                                                          will preside in the chair.
      Tempore Mike Morgan, D-Stillwater. “Faced         PRESIDENT PRO TEMPORE
      with the challenge of an equal partisan divide,         Democratic Senator Mike Morgan will         COMMITTEES
      the members of the State Senate have              serve as President Pro Tempore for the next            Each committee will have equal numbers
      chosen to respond with a bipartisan accord        two years, except from July 1 through July 31,    of Democrats and Republicans. Each
      that will ensure that the Senate will continue    2007, when he will serve as Co-President Pro      committee will have a Republican and
      to undertake efficiently and effectively the      Tempore. Republican Senator Glenn Coffee          Democratic co-chair, who will share the
      people’s business and provide a steadying         will serve as Co-President Pro Tempore for the    responsibility of running the committee.
      hand for our state.”                              next two years, except from July 1 through July   LENGTH OF AGREEMENT
            “Many pundits and doubters predicted        31, 2007, when he will serve as President Pro          The agreement will remain in effect for
      partisan gridlock in the State Senate because     Tempore. The President Pro Tempore and            two years, unless a special election to fill a
      of the tie, but it hasn’t happened. Oklahoma’s    Co-President Pro Tempore will jointly share       vacancy changes the balance of power in
      state senators have put aside partisanship to     authority in the State Senate.                    the Senate.

24 O I A D A
   FEB 2007

        Are Being Washed
                 With so many different brands being used, it can be difficult to know just what kind and how much
               damage to expect a vehicle to have had unless a person has some way to check the meaning of a brand.

     Experian Automotive           state, the brand may simply         legislation through the next          The goal of the proposed
reports that almost 45 percent     be dropped.                         session of Congress that          legislation is said to be
of the more than 200,000                With so many different         would help standardize that       simple. If an insurance
vehicles branded as flood or       brands being used, it can be        part of the titling process.      company pays a total loss on
storm damaged in the wake of       difficult to know just what kind         The proposed legislation     a vehicle, the VIN would be
Hurricane Katrina have lost        and how much damage to              would not preempt state           disclosed to the public so
their brands after being moved     expect a vehicle to have had        titling laws or require           that consumers, businesses,
and re-titled in other states.     unless a person has some way        changes in state laws.            dealers, auto auctions and
     The hurricane-damaged         to check the meaning of a           Instead, the bill would require   anyone buying used cars
vehicles which were identified     brand. That is why Oklahoma         insurance companies to            would be able to identify
by the National Insurance          is including the state with the     disclose information that         easily one of these branded
Crime Bureau (NICB) may            brand that is carried forward.      would identify totaled            vehicles, even if the title has
have been stamped with one         That gives a dealer an              vehicles before they ever         been washed to clear the
of several different brands to     opportunity to check with that      reenter the market.               brand.

   Any such title that comes

                 that branded the title.
identify the damage they           state’s DMV to learn the
sustained, including scrapped,     meaning of a brand.
junk, rebuilt, rebuildable,             Efforts are being made                   Wednesdays @ 10:00am
water damage, salvage, storm       by many organizations,
damage, or an exclusive brand      including NIADA, to convince         • 125,000 square feet of storage and auction space
of Louisiana, “Katrina.” Any       the U.S. Congress to pass
                                                                        • 500-600 vehicles per week
such title that comes into         legislation that would better
                                                                        • Public Sale every month
Oklahoma will have the brand       explain the history behind
                                                                        • Free lunch to all dealers after each sale
that is on the title carried       title brands and to require
forward, noting also the state     that any state’s brand be               “If we don’t serve you, we don’t deserve you”
that branded the title. That       carried forward every time a                   This is more than just a slogan,
does not happen with all           new title is issued even if it is                    it is a commitment.
states. There are those states     a title from a different state.
that have their own brands         Senator Trent Lott and                           405-680-8660 • 405-680-9020 Fax
and if an out of state branded     Representative Cliff Stearns                  
title doesn’t carry one of the     and other Congressional
specific brands used by that       leaders have pledged to get
                                                                                                                             FEB 2007      25
FEB 2007   27
    Rev 8/16/06
                                                   OIADA ORDER FORM
                                                                              Prices subject to change without notice
    Call Toll-Free                          Date of Order:___________________     Residential Delivery? yes____ no____
    Phone 1-800-346-4232                    Requested By: ______________________________________________________
    Fax 405-799-3367                          Visa Master Card Discover Amex 3 or 4 digit code # ________________
    Order on line at
    Credit Card Billing Address:_______________________________________________________________
    Expiration Date:________/_________ Signature:______________________________________________
    Ship To:
    ___________________________________________________________________________________ _____Ph.__________________________
    ________________________________________________________________________ _______________ Fax:_________________________
    Physical Address (no P.O. Boxes)
    City, State, Zip Code

      Item #                                        Item Description                               Price       No.       Total
                                      All Items in packs of 100 unless otherwise noted             $                 $
    F01           Dealer Warranty Disclaimer                                                            9.00
    F02           Odometer Disclosure Statements (3 part)                                              10.00
    F03           30 Day Notice (Title Receipt – (1 part perforated))                                   6.00
    F04           Buyers Guides – FTC AS IS (2part)                                                    14.00
    F04 A         Buyers Guides – FTC AS IS 4 seal (2 part)                                            37.00
    F 04 B        Buyers Guides – FTC AS IS Spanish (2 part)                                           18.00
    F04.1         Vehicle Inventory Record (bound book per each)                                       14.00
    F05           Retail Purchase Agreement (3 part)                                                   25.00
    F05 A         Wholesale Buyers Order (3 part)                                                      25.00
    F05.0         Vehicle Inspection Form (2 part)                                                     17.00
    F05.1         Privacy Notice & Communication Authorization (2 part)                                17.50
    F05.2         Privacy Notice (Annual – 1 part)                                                      7.50
    F05.3         Repo Notice of Sale (2 part)                                                         17.00
    F05.4         Repo Calculation of Return (2 part)                                                  17.00
    F06           Multiform (Retail Buyers Order – Bill of Sale – 3 part)                              27.00
    F06.1         Multiform (Retail Buyers Order – Bill of Sale – 2 part)                              20.00
    F08           Retail Installment Contract (4 part)                                                 40.00
    F08.1         Simple Interest Contract                                                             49.00
    F08.2         Precomputed Interest Contract (5 part)                                               51.00
    F08.3         Simple Interest Contract – Legal size (5 part)                                       54.00
    F09           Lien Entry Form (6 part)                                                             27.00
    F09.0         Agreement to Provide Insurance                                                       29.00
    F10.3         We Owe Forms (2 part)                                                                15.00
    F11           Used Car Sales Envelope – Deal Jacket (9”X12” Tan – Printed on both sides)           25.00
    F11.1         Used Car Sales Envelope – Deal Jacket (9”X12” Green)                                 25.00
    F13           Credit Application                                                                   21.00
    F13.2         Personal Loan Applications                                                           21.00
    F13.1         Spot Delivery Form                                                                   17.00
    F14.6         Consignment Forms                                                                    15.00
    F14.4         Certificate of Ownership                                                             25.00
    F14.5         Dismantler’s Forms                                                                   25.00

    F07 B         Stock Window Stickers – Blue___; Blue Blank___; Green___; Red___; Red Blank___       11.00
    F10           Rigidene Key Tags – (Bag 125) White or Yellow                                        11.00
    F10.0         Rigidene Key Tags – (Box 500) White or Yellow                                        40.00
    F10.1         Top Stripe Key Tags – (Box 250) Black, Green, Orange, Red Blue, or Pink              18.60
    F10.2         Protek Key Tags (Box 250) Blue, Red, White, or Yellow                                23.00
    F10.3B        EIT (Service Department) Key Tags (Pack of 1,000)                                    23.00

    F14           Plastic Folders for FTC AS IS (Pack of 25)                                           20.75
    F14.1         Plastic Folder Kits for FTC AS IS (Box of 100)                                       58.00
    F14.2         Mirror Hangers for FTC AS IS (Pack of 50)                                             5.95

    S15           Dealer Tag Magnets (per each)                                                         6.00
    S15.1         Pan Head Tag Screws (Box of 100)                                                     10.00
    S15.2         Hex Head Tag Screws (Screw Box of 100)                                               10.00
                                                     (Continued next page)

28 O I A D A
   FEB 2007
  Item #                                         Item Description                                          $ Price      No.   $Total
S15.3         Hex Head Tag Screws (Metric – Box of 100)                                                         10.00
S15.4         Nylon Tag Screw Inserts (Box of 100)                                                               7.00
S15.5         Tag Thumb Screws (Box of 50)                                                                      10.00
S15.7         Rubber Tag Holder with Magnet (per each)                                                          16.00
S16           Rubber Dealer Tag Holder (per each)                                                               12.00

S17           Uni Posca Marker (Small – each) White__, Pink__, Yellow__, Red__, Blue__, or Green__              3.00
S17.1         Uni Posca Marker (Medium – each) Green__, Orange__, Red__, Pink__, or Yellow___                   4.00
S17.2         Uni Posca Marker (Jumbo - each) Pink___, Red___, White___, or Yellow___                           7.00
S17.6         Uni Posca Marker ( Wide – each) Wht.___; Yel.___; Red___; Or.___; Gr.___; Pink___                 9.50
S17.3         Lettering Paint Pot w/brush (each) Green__,Blue__, White__, Yel__, Pink__, Red__, Or__            9.95
S17.4         Solid Marker Paint Stick – Solidified Paint (each) Red___, Yellow___, White___, Blue___           4.00
S17.5         Paint Crayon – grease stick (per each) White___, Yellow___                                        1.00

S18           Key Board – 32 peg (per each)                                                                    45.00
S18.1         Key Board – 55 peg (per each)                                                                    65.00
S18.2         Key Board – 105 peg (per each)                                                                  105.00

S20           Floor Mats – Plastic/paper (Box of 500)                                                          69.00
S21           Rear View Mirror Signs – Various imprints (Packs of 50)                                          14.00
S21.1         Windshield Signs – Various model years (Packs of 12)                                              6.95
S21.2         Windshield Message Signs – Various 3 ½ X14” (Packs of 12)                                         3.50
S21.4         Windshield Number Signs – 7 ½” (Packs of 12)                                                      3.50
S21.5         Windshield Number Signs – 9 ½” (Packs of 12)                                                      3.50
S21.6         Windshield “Bubble” Number Signs – 3”X4” (Packs of 12)                                            1.79
S21.7         Arched Slogan Signs (Mates with year signs) (Packs of 12)                                         4.50
              (list desired imprints here)
                   TM              TM
              DOX – DealerCap Forms (Dealership protection):
A 100         Customer Proposal                                                                                21.00
A 101         Trade-in Vehicle Appraisal                                                                       21.00
A 102         Test Drive Agreement                                                                             21.00
A 116         Used Vehicle Limited Warranty                                                                    21.00
A 119         Authorization to Release Payoff Information                                                      21.00
A 120         Notice to Co-Signer                                                                              21.00
A 121         Insurance Coverage Acknowledgement                                                               21.00
A 123         Delivery Confirmation and Acknowledgement (also covers “We Owe” Items)                           21.00
A 123 S       Delivery Confirmation (Spanish)                                                                  21.00
A 123 F       Delivery Confirmation (for sales in language other than English or Spanish)                      21.00
A 124         Customer Delivery Checklist                                                                      21.00
A 125         Acknowledgement of AS IS Sale                                                                    21.00
A 126         Good Will Repair Acknowledgement                                                                 21.00
A 140         Interpreter’s Acknowledgement of Confirmation                                                    21.00
A 141         Service Loaner Agreement                                                                         21.00
A 144         Agreement to Arbitrate                                                                           21.00

A 214         Carbonless Receipt Books (meets federal requirements) (200 numbered receipts)                    21.00

B 50.1        NADA Used Car Guide (Annual Subscription $70.00)                              (per each)          7.00
B 50.2        NADA Older Car Guide (Annual Subscription $60.00)                             (per each)         25.00
B 52          Black Book Weekly Guide (Annual Sub. $121.00)                                 (per each)          7.00
B 54          Black Book Truck & Van (Annual Sub. $101.00)                                   (per each)        10.00
B 55          Black Book Old Car Monthly Guide (Annual Sub. $86.00)                          (per each)        10.00
B 53          Black Book CPI Collectible Vehicle Value Guide                                (per each)         10.00

              Temporary Tags – All colors available – See price list elsewhere in this newsletter – Same
              day service.

Notes: Member Discount is 10%                              Shipping & Handling Chart              ORDER TOTAL
Order on line at
 Shipping is by UPS Ground - Place your order
                                                              Order Value     Amount              MBR DISCOUNT 10%
by 2:00 pm and it will be shipped that day to arrive at    $ 1.00 $ 30.00 $ 6.00
your door the next business day.                           $ 30.01 $ 50.00 $ 7.00
Make checks payable to OIADA Payment due upon              $ 50.01 $100.00 $ 9.00           SALES TAX
receipt - Net 10 days - 2% per month late payment
                                                           $100.01 $130.00 $11.00           SHIPPING
                                                           $130.01 $150.00 $12.00           C.O.D. CHARGE
  CASH       CHARGE             Check #_________           $150.01 $200.00 $13.00
 Visit our Web Page:                        Add $3.00 for residential addr. TOTAL DUE OIADA

                                                                                                                                 FEB 2007      29
      LEGAL INFORMATION                                                                                         By Keith Whann, NIADA General Counsel

      Legal, Legislative And
      Regulatory Summary
      Like many State Consumer Protection Statutes, Ohio’s Consumer Sales Practices
      Act (CSPA) is designed to compensate consumers when retailers violate the law.

                                                       to financing being obtained. When the
      New York Court Decision Calls into
      Question Validity of Vicarious Liability Ban     Dealership could not secure financing on
            In August of 2005, Congress passed a       the terms initially presented to Mr. Whitaker,   late.
      Federal Highway Bill that included a             who had already sold his other vehicle and             A jury awarded the plaintiff $367.15 for
      provision that ended the vicarious liability     refused to sign a new Agreement containing       the conversion of the stereo. It also found
      that many States place on rental and lease       a higher finance charge, the Dealership took     that the Dealership had committed 11
      companies when a leased vehicle is               the truck back and refused to return his         violations of the CSPA and awarded the
      involved in an accident. In September, a         $1,500 downpayment. To make matters              plaintiff $105,000. The Trial Court then
      Trial Court Judge in Queens, New York ruled      worse, when Mr. Whitaker returned to the         trebled those damages, which amounted to
      that the federal ban is unconstitutional. It     Dealership to hand over the duplicate keys       $315,000, and awarded over $150,000 in
      also held that the leasing company could be      and pick up the stereo he had installed in       attorneys fees to the plaintiff. The
      liable for damages under the State’s             the truck, it was “missing.” Mr. Whitaker        Dealership appealed the award of
      vicarious liability law, which holds lessors                                                      damages arguing that the plaintiff could not
                                                                                                        prove that he had incurred any “actual or

      and rental companies liable for accidents
      and damages because their names appear                                                            real loss or injury” as a result of any CSPA
      on the vehicle titles. Although this decision                                                     violation. The Court of Appeals agreed with
      isn’t binding on other courts, it has                                                             the Dealership’s position and reversed the
      captured the attention of lessors and deal-                                                       Trial Court’s decision. It held that non-eco-
                                                               A MAJORITY OF THE                        nomic damages (i.e. losses due to pain and
      ers throughout the State. Four other cases
      involving vicarious liability have been
                                                                JUSTICES AGREED                         suffering and mental anguish) could not be
      decided (three in New York and one in                    THAT ALL FORMS OF                        recovered under the CSPA and, since the
      Connecticut), and none of them found that                   COMPENSATORY                          plaintiff could not prove that he suffered
      the Federal law was invalid or in violation of                                                    actual economic loss, found that he was
                                                                RELIEF, INCLUDING                       only entitled to statutory damages of $200.
      state law. The Leasing Company has
                                                                  NON-ECONOMIC                                That victory, however, was short lived.
      indicated that it will file an appeal with the
      New York Appellate Courts. A lot of eyes will               DAMAGES, ARE                          The Ohio Supreme Court, to the surprise
      be watching this case as it proceeds.                     INCLUDED WITHIN                         and dismay of the Dealership (and retailers
                                                                                                        across the State, for that matter),
                                                                    THE TERM
      CASE OF THE MONTH                                                                                 overturned the Court of Appeals decision. A
      Ohio Supreme Court Allows Consumers to
                                                                 “DAMAGES” AND                          majority of the Justices agreed that all forms
      Treble “Non-Economic” Damages                               ARE SUBJECT TO                        of compensatory relief, including non-eco-
           Like many State Consumer Protection                   TREBLING UNDER                         nomic damages, are included within the
      Statutes, Ohio’s Consumer Sales Practices                                                         term “damages” and are subject to trebling
                                                                    THE CSPA.
      Act (CSPA) is designed to compensate                                                              under the CSPA. What’s more, the Court
      consumers when retailers violate the law. A                                                       went on to explain that a plaintiff only has to
      recent decision by the Supreme Court of                                                           provide evidence that a defendant acted
      Ohio will, however, raise the bar on the                                                          intentionally or maliciously in violating the
      amount of claims filed by plaintiffs to a                                                         CSPA to recover these types of damages.
      whole new level.                                                                                  Dealers can reasonably expect consumer
           The plaintiff in Whitaker v. M.T.           sued the Dealership for violations of the        attorneys in Ohio to include claims for
      Automotive, Inc., entered into a Retail Lease    CSPA, breach of contract, conversion, and        non-economic damages in every case
      Agreement with the Defendant Dealership          fraud. At this point, the Dealership returned    alleging a CSPA violation, making it all
      and accepted delivery of the vehicle subject     his downpayment, but it was too little too       that more difficult to defend, let alone
                                                                                                        settle, these cases.
30 O I A D A
   FEB 2007
  $1,300+                              Included in
                                       VIP DISCOUNT CARD # 1
                                       Tue @ 6:30 pm: I-40 Auto Auction, Inc., Del City
 IT’S LIKE MONEY                       One Buy Fee up to $50. One Sell Fee up to $50.
                                       Wed @ 7:00 pm: Clinton Auto Auction

IN YOUR POCKET!                        One Sell Fee up to $50.
                                       Wed @ 7:00 pm: 165 Auto Auction, Muskogee
                                       One Buy Fee.
                                       Fri @ 7:00 pm: I-40 Auto Auction, Muldrow
 ALL DEALERS WHO JOIN                  One Buy Fee.
 OIADA OR RENEW THEIR                  Thur @ 8:30 am: Dealers Auto Auction of OKC
    MEMBERSHIP ARE                     One Sell Fee up to $50. One Buy Fee up to $50.

                                       Included in
VIP CARDS are ready for distribution   VIP DISCOUNT CARD # 2
     to every new and renewing
                                       Thur @ 9:00 am/Mon @ 5:00 pm: 166 Auto Auction - Springfield
  member of OIADA. Each card is        One Sell Fee up to $100. One Buy Fee up to $70.
  dealer member-exclusive; it can’ t
                                       Fri @ 10:00 am: ADESA Tulsa
                                       One Sell Fee up to $50. One Buy Fee up to $50.
  be used by anyone else. Once you     Tue @ 9:00 am: ADESA Little Rock - Springdale location
 join or renew your membership, the    One Buy Fee up to $50 & One Sell Fee up to $50, limit
                                       1 per dealership.
 cards are YOURS, along with more      Guardian Warranty Corp.
       than $1,300 in savings!         Two $25 coupons, must be 12 months or longer;
                                       100,000 miles; one coupon per contract application.
                                       Wed @ 2:00 pm: America's Auto Auction, Inc. of Tulsa Dealers only
                                       or Sat@ 11:00 am: Dealers & Public
                                       One Buy Fee up to $50.
ONLY $295                              Included in
                                       VIP DISCOUNT CARD # 3
       PER YEAR                        Tue @ 6:00 pm: Heartland Auto Auction of Tulsa
                                       One Buy Fee up to $50.
   JOIN OIADA OR RENEW                 Tue @ 7:00 pm: I-35 Auto Auction-Pauls Valley
 YOUR MEMBERSHIP TODAY                 One Buy/Sell Fee up to $75.
     AND START SAVING!                 Mon @ 7:00 pm @ Thurs @ 6:30 pm: 81 Auto Auction - Chickasha
                                       $20 off Buy Fee.
                                       Thur @ 9:30 am: Manheim's Dallas/Ft. Worth Auto Auction
$$$$$$$$$$$$$$$                        Free Buy Fee. Free Sell Fee.
                                       Only available at Thursday sale.
                                       Fri @ 9:45 am: Manheim's Ft. Worth Vehicle Auction
                                       Free Sell Coupon up to $50. Free Buy Coupon up $50.
  IT COSTS TO JOIN BUT                 Wed 3:00 pm: Manheim's Dealers Auto Auction of Dallas
                                       New Car Trade Free Buy Fee.
                                                                                                           FEB 2007   31
      ADVERTISING INFO                                                                                         Mark Tewart, Tewart Enterprises, Inc.

     Designing An Ad                                                                                      By Mark Tewart, Tewart Enterprises, Inc.

      Make your marketing personal.

             I keep seeing ads that are             9) What irresistible offers might trigger an   to survive a down market or a competi-
       designed to be humorous but have             explosion in sales?                            tive market, you must understand direct
       forgotten the product along the way.                                                        response marketing and hire the best
       This is a big mistake. In a book called      10) What premiums can be tossed into
                                                                                                   coaches and agencies to help you
       Reality in Advertising, Rosser Reeves        the mix to press your prospect's hot
       wrote "A gifted product is mightier          buttons?                                       understand it. Applying the correct mar-
       than a gifted pen." Advertising should                                                      keting can make your dealership suc-
       convey an advantage through benefits                                                        cessful and wealthy.
       and stories of the benefits.                                                                       Here's another big tip - Make your
             Advertising done solely for humor        IF A DEALERSHIP                              marketing personal. Create quasi
       in the hope for brand awareness leads
       to little returns. There have been            OR ANY BUSINESS                               celebrities of you and your staff.
       many ads that have won awards for                                                           Personalize the message to your mar-
       creativity and have lost in the real           IS TO SURVIVE A                              ketplace in every way you can. Example:
       world of the marketplace. Never                                                             Make sure you are marketing to a select
       forget what your goal is with an ad of       DOWN MARKET OR A                               audience and not just everyone all the
       any type.
             If humor helps you deliver the             COMPETITIVE                                time. Consider credit scores, addresses,
       message and gets the customer to                                                            ages, garage indicators, magazine sub-
       take action, then it's effective. If it
                                                     MARKET, YOU MUST                              scriptions, other purchases, etc.
       does not, it is a waste.
             Here are the questions you
                                                        UNDERSTAND                                        Use pictures in your marketing to
                                                                                                   create a human element that builds
       should ask?                                   DIRECT RESPONSE                               identity and relates to your offer. "Join
       1) Why is the product made the way it is?                                                   the conversation already going on in
                                                      MARKETING AND                                their head." Be outrageous, or as Dan
       2) What consumer problems, desires and
       needs is it designed for?                       HIRE THE BEST                               Kennedy said, “be somebody, be some-
                                                                                                   where and do something."
       3) What's special about it - why does it        COACHES AND                                      Select niches and niches of niches.
       fulfill a consumer's needs better than the                                                  Create a toll position that everyone else
       competition?                                  AGENCIES TO HELP
                                                                                                   who follows must pay a toll to you.
       4) Who says so besides you?
                                                    YOU UNDERSTAND IT.                                    I recently received a voice broad-
                                                                                                   cast message from a dealership I have
       5) What are your strongest proof ele-                                                       bought many vehicles from. The broad-
       ments to make your case believable?                As a dealer, you have to insert your     cast wished me happy holidays, told me
                                                    dealership as the product and service          about an open house event and offered
       6) What are all the product’s best fea-
       tures and how does each translate into a     into the prospective of the questions. I       me a free pair of Isotoner gloves with a
       consumer benefit?                            would invite you to print and post these       test drive and told me the dates and the
                                                    questions and use them when you                offer. This is a great example of effec-
       7) If you had unlimited funds, how would     design your ads. If you use an advertis-       tive marketing. (Make sure you consult
       you improve this product?
                                                    ing agency, never assume that they             the new laws for Voice Broadcasting
       8) Who are its heavy users- the 20           know how to write copy for ads or under-       that started January 1, before you do
       percent who generate 80 percent of           stand anything about marketing.                anything. Even with new restrictions this
       the sales?                                         If a dealership or any business is       is an effective media.)

32 O I A D A
   FEB 2007

Air Bags Stolen                                                              Deployed?

     Replacement of air bags that have            informed that the air bags were                  about a missing or deployed air bag or
been stolen or deployed is not required           inoperable and then the worst happens.           other hidden defects is through the use
by law. However, the theft of air bags is              It often is not easy to know when an        of a Trade-In Vehicle Appraisal form that
an increasing problem for our industry,           air bag is missing or inoperable.                has questions which are to be asked of
with replacements running anywhere                                                                 the vehicle owner at the time of
from $200 to $2,000 or more per unit.                It often is not easy                          appraisal. A customer may not
The price makes those units prime                                                                  “remember” to disclose such defects
                                                       to know when an
targets for thieves and significantly                                                              unless he is asked a direct question
increases a vehicle’s cost if a dealer has            air bag is missing                           about them. He is most likely to disclose
to replace a unit.                                       or inoperable.                            them when asked directly.
     Even though there is not a law                                                                     That’s the value of the Trade-In
requiring that stolen or deployed air bags        However, original covers are marked              Vehicle Appraisal that is a part of the
be replaced and the National Highway              generally with a name or logo whereas            DealerCAPTM forms offering, through
Traffic and Safety Administration                 most replacement covers for cosmetic             Dealer Office Xpress (DOX). This form is
(NHTSA) is only concerned about                   purposes will be blank. At any rate, we          available from OIADA and is listed on the
operational air bags in NEW motor                 recommend that a dealer visit that               order form that can be found elsewhere
vehicles, a dealer is well advised to             issue with his customer and if the air           in this magazine.
disclose the absence of an operational            bag is not operational or is missing,
                                                                                                   A compilation of information by Odell Morgan of
air bag. A dealer’s liability exposure for        then get the customer to sign off on
                                                                                                   O&R Morgan, Inc. The information
both personal injury and property dam-            that fact.                                       contained herein is for general information
age can be great if a customer wasn’t                 One way that a dealer might learn            purposes only. You should contact legal
                                                                                                   counsel for specific application.


   As part of the acquisition, America's AA said it will expand the 15-acre facility, adding an additional lane and other enhancements.

       America's Auto Auction announced it         well with the objectives and business mod-        Lange said at the time.
  has acquired the Montgomery County Auto          els we are developing with auto-auction                 "As a new auction chain, we have
  Auction in Conroe, Texas, just north of          acquisitions around the country."                 considerable ground to cover, and
  Houston. The auction, America's Auto                   All three Cheney’s will remain with the     working with TPC gives us the ability to
  Auction's fifth, will be renamed America's       auction, added Sam Lipari, senior vice pres-      reach into many industry segments as we
  Auto Auction-North Houston.                      ident of operations for the company.              grow," he added.
       As part of the acquisition, America's AA          "They have built and operated a great             Looking ahead, executives said they
  said it will expand the 15-acre facility,        company, and we are glad to have them             plan to acquire 10 to 15 auctions over the
  adding an additional lane and other              with the America's Auto Auction team,"            next two to three years.
  enhancements.                                    Lipari said.                                            "We're not opposed to Greenfield
       According to executives, the auction              In November, America's AA announced         locations, but the auctions we're really
  has been owned and operated since 1992           it retained TPC Management to work direct-        going to be looking at are existing auctions
  by Sonya Cheney and her sons, Tracy and          ly with Lange to identify desirable acquisi-      across the country," said Ken Suprenant,
  Buddy Cheney.                                    tions and develop operations.                     the company's senior vice president and
       "We look to continue building on the              "Working with TPC Management allows         general manager.
  great services that the Cheney’s have            us to leverage the efforts of our team as we            America’s Auto Auction, Inc. also owns
  provided the Houston dealer community,"          implement the corporate structure,                the former Tulsa Auto Auction at 8544 East
  said Ben Lange, president of America's           streamline our operations and look to             Admiral Place in Tulsa. That phone number
  Auto Auction. "Their operation and vision fit    acquire additional auction properties,"           is (918 )832-1050.
                                                                                                                                   FEB 2007     33
                          USED DEALER LICENSES
       The following      COMPANY                             NAME                           CITY
                          A & P Auto Sales                    Albert Rainbolt                Muskogee
       applicants, as     Ada Auto Sales & Rental, Inc.       Massey D. Bates, Jr.           Ada
                          Auto Collection                     Raeff Shawn Loyd               Oklahoma City
        listed in the     Auto World of Muskogee              Ronnie Boswell                 Muskogee
                          Autome, LLC                         Mike Emery                     Warr Acres
                          Azteka Motors, Inc.                 Jose Esteban Torres            Tulsa
      Agenda for the      Azetka Motors, Inc. #2              Jose Esteban Torres            Tulsa
                          Breedlove Performance Automotive    Stephen Jack Breedlove         Tulsa
        Used Motor        Briarwood Motors, Inc.              Casey Stubbs                   Tulsa
                          Buffalo Car Lot                     Joe English                    Lawton
                          Chaprell Chrysler – Jeep – Dodge    Arthur Chapman                 Ada
     Vehicle and Parts    Collinsville Auto Sales, LLC        Dan A. Perkins, Jr.            Collinsville
                          Credit Cars of Tulsa                Muaaz Mughrabi                 Tulsa
        Commission        Credit Mart Motor Co., Inc.         Mark Larson                    Tulsa
                          David’s Auto Center                 David Atnip                    Idabel
      meeting of Dec.     Don Thornton Cadillac Saab, Inc.
                          Eastside Auto Sales
                                                              Don Thronton
                                                              Douglas Leader
                          El Chanillo Motors, LLP             Liobardo Silvar                Tulsa
      12, 2006, were      Exclusive Auto Sales, LLC           Angelica Valdez                Oklahoma City
                          Exotic Auto Sales                   Darren R. Bothell              Broken Arrow
      considered for      Express Motor Company #2            Kelly Burrows                  Lawton
                          Freeman Motor Sports, LLC           Matthew Rinowski               Jenks
     issuance of used     J & E Performance Motors, LLC       Joshua English                 Stillwater
                          J & M Motor Company                 Martin Sharp                   Minco
                          J & S Used Autos                    Jeromy Wayne Webb              Woodward
       motor vehicle      Magnum Motor Company                Chris Morris                   McAlester
                          McAlvain Motors                     Jim McAlvain                   Tahlequah
      dealer licenses,    McAtee Truck Sales, Inc.            Jarad S. McAtee                Oklahoma City
                          Mid America Auto Lease & Sales      Jeremy Morrow                  Oklahoma City
                          Morrison Auto & Truck Sales         William Frederick Johnson II   Morrison
     wholesale vehicle    Next Level Autoplex, LLC            Shawn England                  Claremore
                          Pap’s Appliance & Auto Plaza, LLC   Gary Kirk Ogle                 Commerce
      dealer licenses     Polaris Outdoors, Inc.              Morris Mauney                  Tulsa
                          Power Auto Sales, LLC               Kowi Jo Power                  Broken Arrow
       and rebuilder      Pro Street Motor Company
                          Pruitt’s 1st Quality Autos, LLC
                                                              Robert Tolbert
                                                              William D. Pruitt, Jr.
                                                                                             Pauls Valley
                                                                                             Broken Arrow
                          R. W. Motors, LLC                   Gregory G. Woods               Pryor
      certificates. The   Rapid Car Sales & Service           Ron Wilkins                    Stillwater
                          Reynolds Kia, Inc.                  Dale Daniels                   Edmond
     applications were    Robbins Motorsports, LLC            Gary D. Robbins                Idabel
                          Robert’s Auto & Trade Center        Robert C. Jinks                Waurika
    approved pending      Smalygo Auto Wholesale, Inc.        Kelly William Smalygo          Claremore
                          Stuteville Auto Center, LLC         Eric Stuteville                Durant
                          The Car Farm                        Janna Cottingame               Durant
     compliance with      Tom’s Motor Sales Company, LLC      Tom Webb                       Marlow
                          Trans National Bus & Coach, LLC     Elias Quintana                 Durant
    the State licensing   Triple M Motors                     Akbar Motian                   Oklahoma City
                          True Blue Auto Sales                Raymond Edwin (Ed) Williams    Tulsa
                          United Venture Motors               Brian Willis                   Altus
      laws and rules,     USA Motor Company, Inc.             Babak Amiri                    Tulsa
                          Wheelsport Suzuki Kawasaki          Ryan Young                     Ponca City
      and subject to      Wholesale Motors, Inc. #2           Johnny D. Reese                Muldrow
                          World Auto Connection               Nicholas Vakilzadeh            Tulsa
     final approval by    Xtreme Cycle & ATV                  Barry Brodersen                Clinton

    Commission staff.     WHOLESALE USED DEALER LICENSE
                          Hand Selected Autos                 Michael A. Hand                Oklahoma City
                          Miner Motor Company                 Susan Henry                    Oklahoma City
                          S & R Automobile Corporation        Kathryn Rachel Burken          Tulsa
                          TW Autos                            Thomas A. Wood                 Broken Arrow

                          REBUILDER CERTIFICATES
                          Exclusive Auto Sales, LLC           Sigifredo Valdez               Oklahoma City
                          Triple M Motors                     Akbar Motian                   Oklahoma City

34 O I A D A
   FEB 2007
“   With the Credit Acceptance Guaranteed Credit Approval Program we
change lives by turning empathy into action. Everyone wins. Over 4,792
contracts and      $3,256,434 in total profit on my non-recourse portfolio.
         - Anthony Underwood, pictured with sons Roderick (left) and Broderick, Anthony Underwood Automotive, Bessemer, AL
          Chairman Credit Acceptance National Dealer-Partner Council

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   Since 1972 Credit Acceptance has been helping customers change their lives with our
  Guaranteed Credit Approval Program. Our Patented Credit Approval Processing System
(CAPS) returns an approval through the Internet within 30 seconds/24 hours a day on every
          vehicle in your used inventory sorted by your non-recourse gross profit!


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                          dealer-partner enrollment website: (or call 1-800-873-0512)

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