Magazine BHPH ks.net

M AY 2 0 1 5

08 MOBILE WEBSITE TRAFFIC

10 BEYOND THE HEADLINE

12 NIADA CONVENTION

16 DMV NEWS

Dealer News

REPRESENTING ALL AUTO, TRUCK, TRAILER, RV AND POWER SPORT DEALERS OF OREGON

magazine

BHPH BEST PRACTICES FOR BUY HERE-PAY HERE NAVIGATING ASSOCIATED RISKS

THE OFFICIAL MAGAZINE OF OREGON IADA

PRSRT Standard U.S. Postage

PAID

DALLAS, TEXAS Permit No. 2079

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LEGAL MUSINGS

NIADA BHPH Commission Scores a Big Win in Oregon

A BILL TO PUT SEVERE RESTRICTIONS ON BUY HERE-PAY HERE DEALERS IS DEFEATED THANKS TO YOUR ASSOCIATION AND

ITS COMMITMENT TO THE BHPH INDUSTRY

BY SHAUN PETERSEN

For the past five years, the Buy Here-Pay Here industry has been put under the microscope and dissected like no other.

The CFPB, FTC, Department of Justice and state attorneys general have ramped up the number of enforcement actions against BHPH dealers. Likewise, media scrutiny of the industry has been intense, from the Los Angeles Times to the New York Times and many in between.

Now many state legislatures are considering laws geared toward increased oversight of BHPH dealers.

But none of the bills we have seen rival the complete overhaul of the industry proposed by recent legislation here in Oregon.

Oregon's Department of Consumer and Business Services (DCBS) introduced Senate Bill 276 with the goal of "stemming abusive financial practices in BHPH transactions." Under this bill, a BHPH dealer would be required to:

? Obtain the same type of license from DCBS that a payday or auto title lender must get.

? Cap interest rates at no more than 20 percent or the federal funds rate plus 17 percent, whichever is lower.

? Reduce interest rates to account for the amount of the consumer's down payment.

? Form a good faith belief that the consumer has the ability to perform on the contract by using underwriting standards passed by DCBS.

? Disclose the purchase price of the motor vehicle before determining creditworthiness.

? Remove certain clauses from contracts that waive consumer rights to assert claims or defenses, etc.

? Cease accruing interest once a vehicle has been repossessed.

? Enter into only one contract secured by one motor vehicle title at a time.

? Provide a specific disclosure in the language used to negotiate the transaction.

? Wait to repossess a vehicle until after 30 days from when

nonpayment has occurred. ? Cease any practice of

refusing to accept a scheduled installment payment or refusing to accept a late fee or repossession fee if the consumer offers to pay the full amount.

? Charge consumers no more than 7.5 percent of the purchase price for repossession fees.

? Cease the use of GPS or starter-interrupt devices.

As you can see, the bill is as comprehensive a regulatory framework as would exist in the country ? and it's wholly unworkable for the industry.

With that legislative challenge in front of us, the newly created NIADA Buy Here-Pay Here Commission jumped at the opportunity to use its influence not only to lobby against the bill but to educate the Oregon legislature and DCBS about the Buy Here-Pay Here industry.

Working with the Oregon IADA, the NIADA BHPH Commission contacted BHPH dealers in the state to explain the adverse impact the bill would have on the industry. The commission also reached out to other BHPH dealers across the country to inform them about the Oregon bill and the potential for similar legislation to pop up in other states if efforts to defeat it in Oregon were not successful (of course, it's still possible similar legislation might rear its ugly head anywhere at any time).

NIADA hired Shawn Miller, a lobbyist in Oregon with years of experience advocating against legislation detrimental to business. He immediately met with key legislators and encouraged them not to let the bill become law.

In addition, Shawn and I met with the legislative and policy staff of DCBS. Armed with tools now found on the NIADA BHPH website (), we had a productive discussion educating the agency about the association, the industry and the impact the bill would have on consumers, dealers and the

I ENCOURAGE YOU TO RALLY BEHIND THE NIADA FLAG

Oregon economy. It was clear from that meeting

they did not understand our business.

Through our team effort, I am happy to report the Oregon bill has officially been killed for this session. That is a major accomplishment in which we should take great pride.

However, the fact we won that battle does not mean we have won the war. Both legislators and DCBS ? in addition to numerous other agencies and legislatures across the country ? have expressed concern that the industry might need additional oversight. Other legislation and enforcement actions could arise.

So what does all that mean for you, the dealer?

Your membership in NIADA and OIADA is critical. Your support of the association allows us to fight these battles and to advocate on your behalf.

If you are not a member or think it is not important, think again.

But mere membership is not enough. We need leaders to stand with us and fight the good fight. Saying or believing someone else will do it only leads to negative consequences. If we all think that way, we are destined to fail.

I encourage you to rally behind the OIADA and NIADA flags and help us ensure detrimental legislation such as the bill introduced here does not see the light of day.

Become an active and engaged participant by contacting OIADA today to find out how you can make a difference in this crucial effort to protect your business.

SHAUN PETERSEN IS A PARTNER WITH THE LAW FIRM OF MAC MURRAY, PETERSEN & SHUSTER LLP AND HEAD OF THE FIRM'S AUTOMOTIVE PRACTICE. HE SERVES AS NIADA'S REGULATORY COUNSEL.

BECOME AN ACTIVE AND ENGAGED PARTICIPANT BY CONTACTING YOUR STATE ASSOCIATION TODAY TO FIND OUT HOW YOU CAN MAKE A DIFFERENCE IN THIS CRUCIAL EFFORT TO PROTECT YOUR BUSINESS.

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Inside M AY 2 0 1 5

06

BEST PRACTICES OF BHPH

08

MOBILE WEBSITE TRAFFIC

10

BEYOND THE HEADLINE

12

NIADA CONVENTION

16

DMV NEWS

18

MORE INVENTORY OPTIONS

WHAT'S NEW

Buy Here-Pay Here Website NIADA has launched a new website especially for the Buy Here-Pay Here industry. It offers various resources for both BHPH dealers and consumers. Check it out at .

ADVERTISERS INDEX

BRASHER'S NORTHWEST AA..........IBC BRASHER'S PORTLAND AA ....BACK COVER DAA NORTHWEST/SEATTLE............ IFC ...................................5 NEXTGEAR CAPITAL ......................... 11 TRUECAR ..............................................7 VAUTO ...................................................9

OFFICE

Oregon Independent Auto Dealers Association 1475 Capitol St. NE Salem, OR 97301 800-447-0302

NIADA HEADQUARTERS

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW. WWW. 2521 BROWN BLVD. ARLINGTON, TX 76006-5203 PHONE (817) 640-3838

FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR TROY@.

OIADA Dealer News is published 12 times per year by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone 817-640-3838. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 6006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of OIADA Insider or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of NIADA , does not constitute an endorsement of the products or services featured. Copyright ? 2015 by NIADA Services, Inc.

STATE MAGAZINE MGR./SALES Troy Graff ? troy@ EDITORS Jacinda Timmerman ? jacinda@ Andy Friedlander ? andy@ MAGAZINE LAYOUT & GRAPHIC ARTIST Chantae Arrington ? chantae@ ART DIRECTOR Christy Haynes ? christy@ PRINTING Nieman Printing

AUCTION NEWS

ADESA to Buy DataScan's Car Inspection Business

COMPANY SAYS IT'S A STRATEGIC BUSINESS DECISION BY AUTO REMARKETING STAFF

ADESA subsidiary AutoVIN has signed a definitive agreement to purchase the vehicle inspection business of DataScan Field Services. The combined companies plan to provide all major leasing companies and auto lenders with inspection services.

"AutoVIN's field inspectors provide peace of mind for our clients who want a professional, competent experience for their customers and business partners. And, our geographic reach ensures their portfolios are inspected and processed in a timely manner," said St?phane St-Hilaire, president and chief executive officer at ADESA.

"This acquisition will provide an unmatched offering by combining

DataScan's innovative technology for capturing vehicle information and communicating customer data with AutoVIN's vehicle inspection expertise and ADESA's renowned customer service," he continued.

DataScan president Brent Sergot said, "This is a strategic business decision for DataScan to now be singularly focused on the wholesale finance industry in order to continue to build upon our position as the leading provider of floorplan accounting software and inventory verification solutions. We are dedicated to growing our market share, finding ways to continually do it better and positioning our core businesses to operate at peak performance."

SAFETY WATCH

Honda Recalls Vehicles from Three Different Model Years

AIRBAG RECALL EXPANDS

American Honda Motor Company Inc. is recalling 104,871 model year 2001 Accord, 2004 Civic, and 2008 Pilot vehicles.

Upon deployment of the driver side frontal airbag, excessive internal pressure may cause the inflator to rupture. In the event of a crash necessitating deployment of the driver side frontal airbag, the inflator could rupture with metal fragments striking and potentially seriously injuring the vehicle occupants.

Honda will notify owners, and dealers will replace the driver side frontal airbag inflator in all affected vehicles, free of charge. This recall is an expansion of recall 14V-351.

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OIADA 2015 Board of Directors

PRESIDENT Gary Sargent Sargent's Motor Sport

EXECUTIVE VICE PRESIDENT Tommy Wilson Jr Tommy Wilson Motors

1ST VICE PRESIDENT

Siamak Lofti

Siamak's Car Company

TREASURER Gary Brooks Brooks Motors

SECRETARY Jim Weaver Credit Union Auto Broker

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