1. shopping
2. auctions

It’s a New Year...
and there is a
Auto Auction,
with Old Fashioned
Service!
w
e
N
GREG GUARANTEES IT!
Visit greggehman.com
for more details.
GREG GEHMAN, General Manager
1040 Commercial Avenue • East Petersburg, PA 17520
717-569-5220 • [email protected]
PRESS RELEASE
Greg Gehman to head new ABC Auto Auction
Auction Broadcasting Company (ABC) has announced
the opening of its newest auto auction in Lancaster County,
Pennsylvania.
The new ABC – Lancaster Auto Auction is located at
1040 Commercial Avenue East Petersburg, PA, strategically
located between Lancaster and Manheim on PA Route 72,
known locally as “Dealers Row” for the abundance of new
and used car dealerships on the highway.
Well known and experienced, partner Greg Gehman has
been named General Manager of the new facility which will
open in March with four lanes.
Construction is already underway of a brand new eight
lane auction house with a full service restaurant and offices,
expected to open in mid-summer.
Mike Hockett, CEO of Auction Broadcasting Company,
commented: “Greg Gehman is a friend and a partner to all
dealers in the Northeast. He has a servant’s heart and is
looking to forward to working with the dealers again.”
“I am very proud and excited to see our newest addition
to the ABC family in Pennsylvania,” said Jason Brinkley, vice
president of business development for ABC. “The auction
staff that we have assembled has the energy and passion to
service the dealers in the Northeast.
ABC announced the creation of 75 new jobs. The project
also represents a multi-million dollar redevelopment investment in the renovations and improvements of the 40 acre,
former transportation terminal complex. Gehman stated,
“The property is well suited and located near a highway
system that will make attending the auction and vehicle
transportation easy for our dealers”.
Lancaster Auto Auction will operate on Thursday afternoons beginning at 1PM and anticipates consignments
from new and used car dealers and wholesale brokers as
well as institutional accounts to be presented for bidding by
licensed dealers only. The auction will be technologically
advanced with a full array of on-line services including
remote vehicle purchasing.
Assistant Manager Ron St.Denis and Office Manager Bob
Slade round out the experienced management team, and in
concert with Gehman and the ABC Corporate staff, welcome
their many associates in the industry to visit the new facility.
Visit www.greggehman.com for details and to register your
dealership.
About Auction Broadcasting Company (ABC)
In 2000, Auction Broadcasting Company was founded by
Mike Hockett with his vision to provide dealers with the ability to bid live from the comfort of their office against other
bidders in the lane at the auction. This vision has changed
the auto auction industry in a dramatic way. Auction Broadcasting Company is a full- service auto auction company with
seven locations nationwide, offering transportation, a full
menu of reconditioning services, customer services, financing options, in-house restaurants, world class auctioneers,
on-line bidding capability, and managers that are true car
people. This Press Release is paid for by ABC as an advertisement page in the PA Dealer News.
FaSt - SeCuRe - CeRtiFied
Get Online Now!
Join the growing number of auto dealers in Pennsylvania processing their titling
paperwork online with CVR, the industry leader in online vehicle registrations.
With CVR in Pennsylvania, you can:
✓ Inquire on vehicle records to verify ownership, trade-ins, and registration status
✓ Generate additional revenue by charging $20 for each online transaction
✓ Cover your expenses since the customer pays the online and doc fees
✓ Increase productivity by completing title and registration work on-the-spot
✓ Reduce costly errors on titles and fee calculations
✓ Improve customer satisfaction with fast, easy, and accurate transactions
Since 1992, thousands of dealers have taken advantage of these benefits.
Contact us today to find out how CVR can make a difference in your business.
Call CVR at 866.581.6860
or e-mail [email protected]
18 | FEBRUARY 2012 www.pennsylvaniaiada.com
Computerized Vehicle Registration
Looking for
inventory?
NEW! National Sales Calendar
on ADESA.com
ADESA’s National Sales Calendar provides sale dates
and auction locations for scheduled OEM, factory and
captive-finance sales. Find the vehicles you need at
ADESA.com/nationalsalescalendar.
© 2011 ADESA, INC.
Contact your
nearest ADESA
location:
ADESA PA
717-266-6611
Sale day: Wednesday
ADESA Pittsburgh
724-662-4500
Sale day: Friday
Controlling Expenses
at Your Dealership
By David E. Keller, CPA, CFE, Partner, Dealerships, CliftonLarsonAllen LLP
David Keller, CPA,
CFE, is a partner with
CliftonLarsonAllen LLP,
a top ten nationwide
CPA firm with extensive
experience in serving
the new, used, buy-here,
pay-here (BHPH) and
lease-here, pay-here
(LHPH) industries. Contact
him at 314-925-4317 or
david.keller@
cliftonlarsonallen.com.
As we are all aware by now, the current economy is not the greatest. That means that your
sales are probably not what you would like them to be. And, your expenses are also not what
you would like them to be.
Your sales and gross profits may be down this month or year to date, but your total
expenses don’t seem to be going down proportionately. Why is this?
One way to review if this is a trend or not is to print your income statement showing
the last 12 months side-by-side in detail by account. Once you have this report, preferably
in Excel format, you can compare your sales, cost of sales, gross profits and expenses
by month to determine what the trend is. You can insert additional columns between the
months so you can calculate the gross profit percentages by month and also if your sales
categories as a percentage of total sales has changed dramatically. Your expenses should
be shown as a percentage of sales or gross profits.
Now that you have the above data calculated and reviewed, move on to your total expenses.
There are different types of expenses. The first type is selling or variable expenses. These
expenses are amounts which are directly related to sales and or inventory carrying costs,
such as sales salaries and commissions, advertising, floor plan interest expense, etc.
These expenses should change proportionately to your sales and gross profits with small
variations. If you are overstocked on inventory both before and after your month in question,
then floor plan interest expense may still be high even though your sales are consistent.
If sales commissions are higher as a percentage of sales or gross profits, this could
indicate you paid more spiffs than normal or your average gross profits are lower than
normal and you paid out some minimum commissions as a guarantee to your sales people.
Advertising is normally an expense that is decided on before any sales are created, whereas
commissions are paid after the sale. Since advertising dollars are spent in anticipation of
future sales, hopefully they create enough sales to pay for the expense. If they don’t create
enough sales, then advertising expense as a percentage of sales or gross profit will be higher.
The next type of expense is operating or fixed expenses. These expenses tend not to
change in relation to sales or gross profits. Some examples of these are clerical salaries,
dealer salaries, rent, utilities, insurance, payroll taxes, outside services, telephone, real
estate taxes, other supplies, depreciation, repairs, etc. If sales and gross profits decrease,
then these expenses will be higher as a percentage of sales and grosses. This is normal.
To achieve lower fixed expenses, you can review the detail transactions that make up
these expenses. Are any of them changeable? Are they one time expenses that only occur
from time-to-time, such as repairs?
Check to see if these expenses remain somewhat consistent each month. If they don’t,
then maybe they are not being recorded on an accrual basis consistently each month. When
reviewing the detail activity, see if there is more than one month’s expenses in one month
and none in a following month. If you see this, then review how and when the invoices are
recorded. If you don’t receive an invoice to record before you close the month end books, you
can always accrue for the estimated expense. In the next month you can adjust the accounts
payable or accrual to reflect any change from the estimated amount to the actual amount.
Examples of expenses that are normally accrued each month are real estate taxes, legal
and accounting fees, insurance, etc. You should record an estimate each month equal to
1/12th of the total annual cost. When you pay the bill you would not charge it to expense,
but to the accrual account for that expense. If you charge it to expense and have accrued
for it each month, then you will have doubled your expense for the year and probably show a
huge expense in one month as compared to the other eleven months.
There are other expenses that require “standard entries” to be posted each month.
These are similar to accruals but some do not require a payment of cash. Depreciation and
amortization expense are good examples of these. They are an expense, do not require
a cash outlay, and normally decrease an asset on your financial statements over time.
These expenses normally decrease a long term asset, such as property and equipment or
organization expense.
20 | FEBRUARY 2012 www.pennsylvaniaiada.com
Pennsylvania Independent Automobile Dealers
Association (PIADA) is the state trade association
located in Harrisburg, PA, representing and providing
unique discount benefits to its member pre-owned
vehicle dealerships, wholesale vehicle auctions, and
businesses allied with the motor vehicle business, all
of whom must demonstrate a commitment to the
PIADA Code of Ethics. PIADA member services
include a state-wide dealer call center to answer
dealer questions, dealer set-up to help entrants into
the business, education classes to meet PennDOT
ongoing eligibility requirements for agent title
transfer work, online title processing for auctions
and dealerships, license requirements assistance
and filings, forms supplies, coupon savings book for
industry savings on necessary items and ser vices,
monthly magazine PIADA Dealer News containing
articles and updates on industry and regulatory
developments, representation before government
officials including lobbying services, and
automatic membership in the National
Independent Automobile Dealers
Association (NIADA).
ATTN: BUYERS
WE GOT CARS!!
WEEKLY DEALER CONSIGNMENT FEATURING:
HARTLEY BUICK/HONDA – HUMES C/P/D
A. CRIVELLI DEALERSHIPS – PADDOCK CHEVY
WEBER HARRIS FORD – CUNNINGHAM
WEEKLY FLEET CONSIGNMENTS FEATURING:
PLUS MANY OTHER NATIONAL ACCOUNTS
AUTO DEALERS EXCHANGE
www.corryade.com
1-800-776-0411
“SERVICE IS THE KEY” @ CORRYADE
AFFILIATIONS: NAAA, EAAA, NIADA, PIADA, NYIADA, OIADA, AFLA, IARA, TPC MGMT.
ATTN: SELLERS
BE A PART OF IT!!
• WE GOT CARS • WWW.CORRYADE.COM • WE GOT CARS • 1-800-776-0411 • WE GOT CARS • WWW.CORRYADE.COM • WE GOT CARS • 1-800-776-0411 • WE GOT CARS •
Advantages of Membership in PIADA
WE GOT CARS • WWW.CORRYADE.COM • WE GOT CARS • 1-800-776-0411
• WE GOT CARS • WWW.CORRYADE.COM • WE GOT CARS • 1-800-776-0411 • WE GOT CARS • WWW.CORRYADE.COM • WE GOT CARS • 1-800-776-0411 • WE GOT CARS •
Prepaid expenses are expenses that cash has been paid
out for a future period’s expense. They require cash to be
paid in advance, sometimes in a month where there may
be no related expense, but then expensed in future months
similar to depreciation expense. These expenses normally
decrease a current type of asset, such as prepaid insurance,
taxes, advertising, etc.
After reviewing the detail activity of your expenses, and
the percentage of each expense to sales, various expenses
may stand out as abnormal. Sometimes the expense as a
percentage of sales or gross profit will look extremely high.
The increase in this expense may still be normal because
the dollar amount is small compared to the percentage
change from one month to another.
In conclusion, if your fixed expenses are not consistent
each month, you may have an accounting procedure you
need to correct. If some show a higher or lower percent of
sales, the dollars spent may still be in line. If your variable
or selling expenses aren’t somewhat proportional to your
sales, then maybe you are overspending for some expenses
that are not generating sales and gross profits like they
should.
Remember to review your expense activity each month
compared to prior months. This is the easiest way to help
control expenses and know what your breakeven units and
grosses need to be to make a profit. Also remember to look
at both the percentage and the dollars, as one or both can
be distorted in relation to sales or gross profits. 3
WE GOT CARS • WWW.CORRYADE.COM • WE GOT CARS • 1-800-776-0411
PITTSBURGH / WHEELING, W. VA
BUFFALO / ROCHESTER / ERIE
CLEVELAND / YOUNGSTOWN
PENNSYLVANIA DEALER NEWS FEBRUARY 2012 | 21
FORMS
DESCRIPTION
Your Key to Affordable Dealer Insurance
 Liability & Dealers Physical Damage
 Low Monthly Payments
 Tags & Tow Truck on the Same Policy
 24 Hour Turnaround in Most Cases
We also handle Dealer Bonds & Tow Truck Insurance.
Steven Kramer, Agency Owner
Kramer Insurance Center
607 Corporate Drive, West
Langhorne, PA 19047
215-860-6510
267-364-5305 Fax
[email protected]
w w w. k r a m e r i n s u r a n c e c e n t e r. c o m
INDOOR / HEATED
PUBLIC CONSIGNMENT AUCTION
SAT. FEBRUARY 25TH - 10am
7700 Avonia Rd., Fairview, PA
8 miles west of Erie on I-90. Just west of I-79 & I-90
interchange. 10 miles from Erie International Airport, Exit 16.
HEAVY EQUIPMENT • TRUCKS • TRAILERS
COMMERCIAL/UTILITY UNITS
FARM MACHINERY
This will be an “Indoor-Rolling Sale” with Heat & Great
Food! All in-place/non-moveable units (such as dozerstrac equipment-hard to move units) will be on property for
your inspection and sold inside at the block on flat screen TV.
All moveable/rolling units will be driven inside and across the
heated auction block! Accepting units such as dozers-loadersexcavators-trucks-trailers-farm machinery-bucket trucks-fork
lifts-drilling equipment-landscape units and more. Sell
absolute or w/reserve.
Consignors: CALL NOW to list your units for early multi-state
advertising via internet-brochure-newspapers. Bring units
NOW for display with great visibility from Interstate 90!! Very
reasonable fees. For more info call: Ron Vennare, Heavy
Equipment Field Rep./
Sales Mgr. 814-720-9297
or 814-474-3900 or e-mail
[email protected].
Check us out online
www.greater-erie.com.
Quantity
“As is” Supplemental Statement
Buyers Guide Plastic Holders (50)
Buyers Guide Window Form
Buyers Guide Window Form (Spanish)
Consignment & Sales Agreement Form
Deal Jackets
Fees Chart (wall mount)
Installment Sales Contract
Key Tags (250)
Lease Agreements
Limited Warranty
No Purchase Required Disclosure
Notary Receipt Pad
Notary Register
Odometer Mileage Statement
Power of Attorney Disclosure Forms
Privacy Policy (Customer Choice)
Rental Agreements
Retail Buyer Order Form
Secure Power of Attorney
Secure Power of Attorney Log Book
Title Release Authorization Used Vehicle Record
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ MemberNon-$Member Member ext
Non-M ext
24.00 $ 00
37. $ 00
18. $ 00
18. $ 00
18. $ 00
24. $ 00
14. $ 00
39. $ 00
32. $ 00
53. $ 00
26. $ 00
24. $ 00
14. $ 00
14. $ 00
18. $ 00
18. $ 00
26. $ 00
32. $ 00
32. $ 00
45. $ 00
14. $ 00
14. $ 00
14. $
$
$
48.00 $ 00
74. $ 00
36. $ 00
36. $ 00
36. $ 00
48. $ 00
28. $ 00
78. $ 00
64. $
106.00 $ 00
52. $ 00
48. $ 00
28. $ 00
28. $ 00
36. $ 00
36. $ 00
52. $ 00
64. $ 00
64. $ 00
45. $ 00
28. $ 00
28. $ 00
28. $
_______
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ADP Forms
$ 00
$
Authorization to Release Payoff
_____ $28.00 56. _______ $ _______
$ 00
$
_____ $28.00 Customer Delivery Check List
56. _______ $ _______
$ 00
$
Customer Proposal
_____ $28.00 56. _______ $ _______
$ 00
$ 00
$
Damage Disclosure
_____ 28. 56. _______ $ _______
$ 00
$ 00
$
_____ 28. Delivery Confirmation
56. _______ $ _______
$ 00
$ 00
$
Deposit & Cash Receipt Book
_____ 28. 56. _______ $ _______
$ 00
$ 00
$
Goodwill Repair Acknowledgement
_____ 28. 56. _______ $ _______
$ 00
$ 00
$
Insurance Coverage Acknowledgement _____ 28. 56. _______ $ _______
$ 00
$
Interpreter Confirmation of Translation _____ $28.00 56. _______ $ _______
$ 00
$
Interpreter Coverage Acknowledgement _____ $28.00 56. _______ $ _______
$ 00
$
Notice to Co-Signer
_____ $28.00 56. _______ $ _______
$ 00
$ 00
$
Test Drive Agreement
_____ 28. 56. _______ $ _______
$ 00
$ 00
$
Trade-In Appraisal
_____ 28. 56. _______ $ _______
$ 00
$ 00
$
_____ Wholesale Purchase Agreement
28. 56. _______ $ _______
$
Subtotal
_______ $ _______
$
PA Sales Tax _______ $ _______
Shipping $ per pound + Special Shipping $ at cost. Total w/o shipping $_________
P lease make checks payable to PIADA, 1501 North Front St., Harrisburg, PA 17102
(call in to receive shipping cost to include in payment) or you may fax orders to
(717) 238-3870 with credit card information. *All orders MUST be accompanied by a
method of payment. *Must provide DIN if applicable.
REGULAR DEALER CONSIGNMENT
Dealership_________________________________________________________________________
STARTING AT 3:00
Contact_______________________________________________Date_________________
Address___________________________________________________________________________
City_______________________________________________State ______Zip__________
Phone _____________________Fax ____________________*DIN____________________
Card Type:
 VISA
 MasterCard
 American Express
 Discover
Name on Card____________________________________________________ Exp. Date________
Card Number _____________________________________ Security Code________
22 | FEBRUARY 2012 www.pennsylvaniaiada.com
PIADA Membership Application
Do It Quick!
Call (717) 238-9002 and Say...
“I Want to Join!”
PIADA Members: $50.00 per person
Non-Members: $100.00 per person
& we’ll take the info over the phone (M-F 8:30-4:30)
Dealership____________________________________________
Owner/President(s)_____________________________________
DIN #_____________________________ or  Special Member
 Corp.
 Partnership
 Sole Proprietorship
2012 PIADA ISSUING AGENT
TRAINING COURSES
 LLC
Number of Employees__________________________________
Street Address_________________________________________
City_____________________________ State_____ Zip _______
County__________________ E-mail________________________
Phone (______)________________________________________
Fax (______)__________________________________________
To assist our lobbying effort, your party affiliation is requested.
 Democrat  Republican  Independent  ____________
PIADA yearly dues are $399.00 (which include $60 NIADA
dues). You will receive all NIADA benefits including a discount
prescription drug card, Used Car Dealer magazine, and dealer
advocacy to officials in Washington, D.C.
(Contributions or gifts to PIADA PAC are not deductible as
charitable donations for Federal tax purposes; however, the $399
dues payments are deductible by members as an ordinary and
necessary business expense.)
By my signature below, I affirm that: I support the PIADA Code of
Ethics and want to strengthen the business and public image
of the Independent Automobile Dealer; I request membership in the Pennsylvania Independent Automobile Dealers
Association, 1501 North Front Street, Harrisburg, PA 17102,
(717) 238-9002, Fax (717) 238-3870, www.piada.org, and I
authorize PIADA to fax or e-mail important information to me.
FEE INCLUDES ONE MANUAL PER DEALERSHIP.
ADDITIONAL MANUALS MAY BE PURCHASED
FOR $30.00 EACH. MANUALS ARE PROVIDED TO
ALL ATTENDEES FOR CLASSROOM USE
Registration: 8-8:30am • Courses begin at 8:30am
*SWADE Course Registration: 9-9:30am
Course begins at 9:30am
ADVANCED TRAINING CLASS DATES
 February 13.................... GWC Warranty, Wilkes Barre
 March 19............................................. Manheim PA
 March 26............................. Manheim Pittsburgh AA
 April 16............................Pittsburgh Independent AA
 May 21.....................................Adesa Pittsburgh AA
 June 25............................ Manheim Philadelphia AA
 July 23............................................. Greater Erie AA
 August 27....................................... Central Penn AA
 September 10.... Northeast AA (Arcaro & Genell Restaurant)
 September 17...................................... Adesa PA AA
 October 29...............................................Corry ADE
BASIC TRAINING CLASS DATES
 March 5........................................... Central Penn AA
 April 23....................................................Corry ADE
 May 7...........................................................swade
 June 4................................................ Harrisburg AA
 August 6.......................................... Garden Spot AA
 September 24..................Pitttsburgh Independent AA
 October 15........................... Manheim Pittsburgh AA
 October 22........................ Manheim Philadelphia AA
 November 5....................GWC Warranty, Wilkes Barre
Registration for
2012 PIADA Issuing Agent Training Courses
Signature_____________________________________________
Company_____________________________________________________
 My check(s) in the amount of $________________________
$399 plus a voluntary PAC fund contribution to PIADA PAC of
$24 for a suggested total of $423 is/are enclosed. (Corporate
checks for PAC fund contributions are not permitted by PA law.)
Or please charge this amount to my credit card:
Contact______________________________________________________
Card type:  Visa  MasterCard  American Express  Discover
Name on Card_________________________________________
Card Number _________________________________________
Security Code ___________ Expiration Date_______________
Signature_____________________________________________
PIADA Member?  Yes  No
DIN # ______________________________
E-mail Address ________________________________________________
Business Address_______________________________________________
City_______________________________ State_______Zip Code________
Phone (____) ___________________Fax (____)______________________
Number Attending ______
Names of Attendees:
___________________________________________________________
___________________________________________________________
Printed Name__________________________________________
___________________________________________________________
Date_________________________________________________
___________________________________________________________
Received by PIADA Rep.___________________________
Card Type:  VISA  MasterCard  Discover  American Express
Date___________________________________________
OR
Mail to: PIADA,1501 North Front St.,Harrisburg,PA 17102
If using a credit card, you may fax this application to
PIADA at (717) 238-3870.
Name on Card:_________________________________________________
Card Number __________________________________________________
Security Code ___________
Exp. Date______________________________
Signature______________________________________________________
Fax (We’d prefer fax) to (717) 238-3870
Or Mail to: PIADA, 1501 North Front Street, Harrisburg, PA 17102
PENNSYLVANIA DEALER NEWS FEBRUARY 2012 | 23
AUCTION DIRECTORY
ADESA PA
I-83 Ex. 28 (Old Ex. 12),
30 Industrial Rd., York, PA 17406
Phone: 717-266-6611 / Fax: 717-266-7650
Vickie Kessler, GM
George Johnson, Fleet Lease Manager
Chris Miltsch, Sales Manager
Wednesday 8:20 A.M.
Powersports Sale, 4th Wed. of every month
www.adesa.com
ADESA Pittsburgh
I-79 & I-80 Crossroads
Exit 121 off I-79 N on 62S, Mercer, PA 16137
Phone: 800-477-4722 / Fax: 724-662-2840
Barry Fabricant, GM; Sharon White, Fleet Manager
Friday 9:00 A.M.
Office: M-F 8-5:00
www.adesa.com
AMERICA’s AA-Pittsburgh
55 E. Buffalo Church Rd.
Washington, PA 15301
Phone: 724-225-1777 / Fax: 724-225-7223
Lou Craig - GM; Skip Thomas - GM
Thursday 12:30 P.M.
www.americasautoauction.com
Central Pennsylvania AA
Exit 178 of I-80
Lock Haven, PA 17745
Phone: 800-248-8026 / Fax: 570-726-7841
Grant Miller, Owner; Doug Miller, V.P./COO
Tim Keohane, GM
Thursday 10:00 A.M.
Office: MTF 8-5:30 W-Th 8-6:00
www.cpaautoauction.com
Corry Auto Dealers Exchange
P.O. Box 317, Route 6
Corry, PA 16407
Phone: 800-776-0411 / Fax: 814-664-7724
Tad Swift, Dealer Contact
Thursday 11:00 A.M.
Office: M-F 8-5:00 W-Th 8-7:00
www.corryade.com
Greater Erie Auto Auction
7700 Avonia Road
(Exit 16 of I-90 & PA Route 98)
Fairview, PA 16415-0916
Phone: 814-474-3900 / 877-474-GEAA Fax: 814-474-4969
Todd Briggs, Co-Owner/GM; Chuck Williams,
Dealer Contact/Sales Manager; Tim Swift,
Fleet Lease/National Accounts Manager; Scott
Porter, Transportation/Re-Con Manager; Chrissy
Briggs, Marketing Manager
Sales Tues. 3:00 Thur. 3:30
www.greater-erie.com
Garden Spot Auto Auction
Robert Rd. & Apple St.
Ephrata, PA 17522
Phone: 717-738-7900 / Fax: 717-738-7930
Kevin Luring, Marketing Manager
Kristi Kohl, GM
Omar Landis, Owner
Tuesday 10:00 A.M.
www.gardenspotautoauction.com
Harrisburg Auto Auction
1100 S. York St.
Mechanicsburg, PA 17055
Phone: 717-697-2222 / Fax: 717-697-2234
Chip Hoynitski, President
Lynn Weaver, GM
Tom Wesner, Dealer Relations
Charlie Miller, Dealer Relations
Glenn Gochenaur, National Accounts
Thursday 9:30 A.M.
www.harrisburgautoauction.com
MANHEIM CENTRAL PENN
488 Firehouse Road
Grantville PA 17028
Phone: 717-469-7900 / Fax: 717-469-2842
David Kaflik, Manager
Linda Elliott, Sales/Marketing
Every other Monday 9:00 AM
www.manheim.com
www.traauctions.com
Manheim Pennsylvania
1190 Lancaster Rd.
Manheim, PA 17545
Phone: 717-665-3571 / Fax: 717-665-9265
Tim Van Dam, GM
Tim Doyle, AGM
Wendy Pfoutz, AGM
Kevin Gantz, AGM
Mark Pester, AGM
Bi-monthly Exotic Sales- 9:00 A.M.
Friday Sales- 9:00 A.M.
www.manheimautoauction.com
Manheim Philadelphia AA
2280 Bethlehem Pike
Hatfield, PA 19440
Phone: 215-822-1935 / Fax: 215-822-8140
Charles Pollina, GM
Scott Mulligan, AGM
Dave Hermann, Customer Support Manager
Troy Moyer, Commercial Accounts Manager
Tuesday 9:30 A.M.
TRA Sale - Tuesday 1:00 P.M.
Office: M-Th 8:30-5 F 8:30-3
www.manheim.com / www.traauctions.com
Orangeville Auto Auction
2040 St., Rt. 487
Orangeville, PA 17859
Phone: 570-683-4006 / Fax: 570-683-4018
Brenda Hartzel, Dealer Contact
Keri Sorce, Dealer Contact
Wednesday 10:00 A.M.
www.orangevilleautoauction.com
Pittsburgh Independent AA
378 Hunker Waltz Mill Rd.
New Stanton, PA 15672
Phone: 724-925-4700 / Fax: 724-925-4701
Denny Angelicchio, Dealer Contact
David Angelicchio, Owner & GM
Tuesday 11:00 A.M.
www.pittautoauction.com
ADESA Buffalo
12200 Main St., Akron, NY 14001
Phone: 716-542-3300 / Fax: 716-542-3547
Warren Clauss, GM
Mike Phillips, Assistant GM
Bob Rice, Fleet Lease Manager
Nancy LaTona, Sales Manager
Consignment Sale Tues. 9:00 A.M.
RV & Boat Sale 2nd Tuesday of
Every Month 12:00 noon
Ford Factory Tuesday Monthly 10:00
Office: M-Tu 8-5 W 8-4 Th 9-4 F 9-3
www.adesa.com/buffalo
ADESA Auction of New Jersey
200 N. Main, Manville, NJ 08835
Phone: 908-725-2200 / Fax: 908-725-3446
Jay Hinchman
Consignment Sale Thursday 9:30 A.M.
Top of the Line 9:30 (monthly Tuesdays)
GM Factory Sale Bi-weekly Wednesday 10:00
www.adesa.com
BSC America/Bel Air Auto Auction
21095 Route 19
Cranberry Twp., PA 16066
Phone: 724-452-5555 / Fax: 724-452-1310
Jon Schlegel, GM
Shawn Byers, Commercial Accounts Manager
Melissa Robison, Customer Support
Wednesday, 9:00 A.M.
www.manheim.com
North East Pennsylvania AA
Manheim’s Baltimore-Washington AA
860 N. Keyser Ave.
Scranton, PA 18504
Phone: 570-207-CARS / Fax: 570-207-1860
James Gaughan, Owner
Joseph Gaughan, Dealer Contact
Lisa Cohowicz, Dealer Contact
Kevin Jennings, Dealer Cnt/F-L
Tuesday 10:00 A.M.
www.nepautoauction.com
24 | FEBRUARY 2012 www.pennsylvaniaiada.com
Route 51 S. Perryopolis, PA 15473
Phone: 724-736-4445 / Fax: 724-736-0466
Renee Smith, Director of Operations
Friday 10:00 A.M.
www.perryautoauction.com
SWADE Scranton/Wilkes-Barre ADE
11 R. South Keyser Ave.
Taylor, PA 18517
Phone: 570-961-3800 (Scranton)
Phone: 570-823-2800 (Wilkes-Barre)
Fax: 570-562-1344
Justin Priblo, Dealer Contact
Dottie Arnone, Office Manager
Joe Gaughan, Gene Scagliotti, Owners
Monday 6:00 P.M.
www.swadeaa.com
Out-of-State Auctions
803 Bel Air Rd., Bel Air, MD 21014
Phone: 410-879-7950 / Fax: 410-893-1515
R. Charles Nichols, President
Michelle Nichols-Neff, Vice President
Cindy Mitchell, VP of Fleet Operations
Douglas A. Rodriguez, Dealer Sales
Chuck Wenzel, Dealer Sales
John Bellus, Dealer Sales
Christina Thorneycroft, Dealer Sales
Thursday’s 8:30 A.M.
www.bscamerica.com
Manheim Pittsburgh AA
Perryopolis Auto Auction
7120 Dorsey Run, Elkridge, MD 21075
Phone: 410-796-8899 / Fax: 410-799-0512
Toll Free: 800-533-2923
Mark Wanamaker, GM
Joe Ruch, AGM
Mark Lee, Dealer Sales Manager
Tuesday Sale starting @ 9:30 A.M.
Special TRA Salvage Sale @ 8:30
www.manheim.com
Manheim New Jersey AA
730 Route 68, P.O. Box 188
Bordentown, NJ 08505
Phone: 609-298-3400 / Fax: 609-298-4489
Pete Sauber, GM
Greg Conover, AGM
Wednesday 9:00 A.M.
www.manheim.com
Manheim New York AA
2000 Dealer Drive
Newburgh, NY 12550
Phone: 845-567-8400 / Fax: 845-567-8410
Gary Charlesworth, GM
Wednesday 9:30 A.M.
Office: M-T-Th 9-5 W 7-6 F 9-3
www.manheim.com
Mountain State Auto Auction
Route 2, Box 835,
Shinnston, WV 26431
Phone: 304-592-5300 / Fax: 304-592-3510
Chad Garrison, GM
Joe Pyle, Owner
Monday 10:30 A.M.
Office: 9-5:00
www.mtstateaa.com
State Line Auto Auction
830 Talmadge Hill Rd., South
Waverly, NY 14892
Phone: 607-565-8151 / Fax: 607-565-8659
Jeff Barber, Owner
Jim Terwilliger, Sales Manager
Jim Horton, Fleet/Lease Manager
GM Closed Factory Sale Alternate
Thursdays @ 10:00 A.M. Sharp
Dealer Consignment Sale
Fridays @ 9:20 A.M.
www.statelineauto.com
BelAir_3.625x4.75.pdf
6/22/10
1:26:25 PM
PennDOT New Electronic
Vehicle Information
In-Transit Registration
Plates system memo
“This memo is to inform you of PennDOT’s new electronic
in-transit registration plate system to input, track and validate the 30-day temporary cardboard in-transit registration
plates issued by the authorized PennDOT Agents. This new
electronic system is part of Pennsylvania’s on-going effort to
modernize and improve efficiencies and to reduce the potential for abuse and fraud associated with the reissuance of
in-transit registration plates.
As a reminder, manual issuance of in-transit registration plates will no longer be permitted using Form MV-120,
“Temporary Cardboard Intransit Registration Plate, Card or
Temporary Registration Transfer Card,” therefore the applicant
will no longer be provided a “pink slip” temporary registration
credential. Authorized PennDOT agents must now immediately process the in-transit registration plate request using the
new electronic system which will produce a 30-day Temporary
Registration Card that will be provided to the applicant.
The design of the new series in-transit registration plate
has not changed and mirrors the existing style of the intransit registration plates. The new in-transit registration
plate series will begin with 2120000 and will always be
accompanied with the 30-day Temporary Registration Card.”
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PENNSYLVANIA DEALER NEWS FEBRUARY 2012 | 25
LEGAL CORNER
THE carlawyer©
by Thomas B. Hudson and Nicole Frush Munro
Happy new year! Here’s our monthly collection of selected legislative and enforcement
highlights, and a recap of some of the many auto sale and financing lawsuits we follow each
month. Remember - what we report here is not every recent development. We select those
we think should be important to car dealers. Note that this column does not offer legal advice.
You should consult your dealership lawyer with any legal questions.
We include items from other states. Why? We want you to be able to see new legal
developments and trends. Also, another state’s laws might be a lot like your own state’s laws
– if AGs or plaintiffs’ lawyers are pursuing particular types of claims, those laws and claims
might soon appear in your state. As always, though, there is no substitute for checking with
your own lawyer before you rely on anything we report or if you have any questions.
Federal Law
All the federal news this month deals with the Consumer Financial Protection Bureau.
Tom ([email protected])
and Nikki (nmunro@hudco.
com) are partners in the
law firm of Hudson Cook,
LLP. Tom is the author of
a book, CARLAW®, and is
the Editor/author of the
CARLAW® F&I Legal Desk
Book. The books are
available at www.counselor
library.com. Tom is also
the publisher of Spot
Delivery®, a monthly
legal newsletter for auto
dealers, and the Editor
in Chief of CARLAW®, a
monthly report of legal
developments in all states
for the auto finance and
leasing industry (not to be
confused with the book).
Nikki is a contributing
author to the F&I Legal
Desk Book and frequently
writes for Spot Delivery®.
Spot Delivery®, CARLAW®
and the books are produced
by CounselorLibrary.com
LLC. For information, call
410-865-5411 or visit
www.counselorlibrary.com.
Copyright CounselorLibrary.
com 2011, all rights
reserved. Single publication rights only, to the
Association.
HC# 4846-1372-1870
1/12)
On December 8, Republicans in the U.S. Senate voted to block the nomination of Richard
Cordray to be the first director of the Bureau. The vote was 53-45, with 60 votes required to
move the nomination ahead. Republicans seek significant structural changes to the CFPB,
including having the director position replaced with a 5-member commission and increased
oversight. President Obama nevertheless appointed Mr. Cordray as the Bureau’s new
chief, using his powers to make recess appointments, a move that bypasses the Senate’s
confirmation process altogether. The move will provoke a hostile reaction from Senate
Republicans, who claim that Mr. Obama did not have the power to make the appointment.
We expect that the dispute will end up in court.
The Bureau recently published for public comment interim final rules establishing a new
Regulation M (Consumer Leasing), Regulation F (Fair Debt Collection), Regulation P (Privacy
of Consumer Financial Information), Regulation V (Fair Credit Reporting), Regulation B (Equal
Credit Opportunity), and Regulation Z (Truth in Lending). The interim final rules do not impose
any new substantive obligations, but make only certain non-substantive, technical, formatting,
and stylistic changes. To minimize confusion, the CFPB is preserving the numbering of the
Regulations, other than the new part number. While the interim final rules generally incorporate
the existing regulatory text, appendices (including model forms and clauses), and supplements,
as amended, the rules have been edited as necessary to reflect nomenclature and other
technical amendments required by the Dodd-Frank Act. The interim final rules were effective
December 30, 2011. Comments on the rules are due 60 days after publication in the Federal
Register, which has already occurred.
On November 29, the Bureau announced that it is requesting specific suggestions from
the public for streamlining regulations it recently inherited from other federal agencies.
The inherited regulations include those issued pursuant to the Consumer Leasing Act, the
Electronic Fund Transfer Act (except with respect to Section 920 of that Act), the Equal Credit
Opportunity Act, the Fair Credit Reporting Act (except with respect to Sections 615(e) and 628
of that Act), the Fair Debt Collection Practices Act, Subsections (b) through (f) of Section 43
of the Federal Deposit Insurance Act, Sections 502 through 509 of the Gramm-Leach-Bliley
Act (except for Section 505 as it applies to Section 501(b)), and the Truth in Lending Act. The
Notice asked the public to identify provisions of the inherited regulations that the CFPB should
make the highest priority for updating, modifying, or eliminating because they are outdated,
unduly burdensome, or unnecessary. The Notice discussed several specific requirements
that may warrant review, and sought suggestions for practical measures to make complying
with the regulations easier. Comments are due by March 5, 2012. Commenters will have 30
additional days, until April 3, 2012, to respond to other comments.
Have you fired anyone lately? Are they mad with you? If you are doing bad stuff at your
dealership, would they be interested in “blowing the whistle” on you? Now they can. On
26 | FEBRUARY 2012 www.pennsylvaniaiada.com
December 15, the Bureau issued a blog post, news release,
and bulletin in order to solicit information from whistleblowers
and other knowledgeable sources about potential violations
of federal consumer financial laws. The CFPB is welcoming
information from current or former employees, contractors,
vendors, and competitor companies. People who submit tips
may do so through the email address whistleblower@cfpb.
gov and a toll-free number. Early next year, the CFPB plans
to introduce an online tips portal accessible through its
website. Whistleblowers may request confidentiality or even
remain anonymous to the extent permitted by law, although
the Bureau notes that providing contact information may
assist it in investigating and remediating potential violations.
Certain employees who provide information about potential
violations of federal consumer financial laws are protected
from retaliation from their employers under Section 1057 of
the Dodd-Frank Act.
On December 8, the Bureau announced that it has established
an Ombudsman Office to assist in the resolution of issues
that a depository entity, non-depository entity, or consumer has
with the CFPB in an “independent, impartial, and confidential
way.” The CFPB notes that people may use the Ombudsman’s
Office when they have not had success with the existing CFPB
processes, to achieve an informal resolution, or to keep their
concerns confidential.
state enforcement actions
On December 15, the Colorado Motor Vehicle Dealer Board
issued an advisory concerning advertising violations in
TrueCar materials and on its website. The advisory notes
that any Colorado licensed dealer using TrueCar to promote
and list its vehicles to consumers is ultimately responsible
for any such violations.
Oregon Attorney General John Kroger and two Oregonbased used car dealerships recently settled allegations
that their business practices misled consumers. Among
other requirements under the settlement, the dealerships
are required to post the advertised price on a vehicle, not
misrepresent the market price in negotiations, disclose
material defects, not misrepresent that a service contract
is a warranty, provide required disclosures about financing
offers, not use the name “broker” when they are not acting on
behalf of the consumer, sell vehicles that are roadworthy, and
not sell vehicles as “parts only” rather than disclose serious
defects. Both dealerships are required to pay $10,000 each
for the alleged violations.
Washington Attorney General Rob McKenna entered into
a settlement with a car dealership to resolve allegations
of deceptive sales and advertising practices, including
allegations that it “power booked” loans by misrepresenting
the value of vehicles to banks. “Power booking” involves a
dealer listing phantom options such as sun roofs, luggage
racks, and sport packages, in order to qualify customers for
financing.
litigation
Federal Arbitration Act Did Not Preempt State Restrictions on
Arbitration of Insurance Contracts: When car buyers bought
and financed their cars, they signed a credit application that
included an arbitration agreement. In connection with the
car purchases, they bought credit life insurance. After paying
off the retail installment contract early, the buyers sued the
insurer, seeking a refund of unearned credit life insurance
premiums. The insurer moved to compel arbitration. The
buyers argued that the claim was not subject to arbitration
because the Arkansas Uniform Arbitration Act provides that an
insurer cannot compel an insured to arbitrate claims arising
under an insurance policy. The trial court denied the motion
to compel arbitration, and the Supreme Court of Arkansas
affirmed. The high court noted that although the Federal
Arbitration Act would ordinarily preempt conflicting state law,
the McCarran-Ferguson Act operates to bar application of
the FAA and leaves the regulation of the insurance industry
to the states if the applicable federal statute does not
specifically relate to insurance, the state statute was enacted
to regulate insurance, and application of the federal statute
would invalidate, impair, or supersede the state law. The
high court determined that reverse preemption under the
McCarran-Ferguson Act applied to the car buyers’ claims and
found that the FAA did not preempt the Arkansas prohibition
on arbitration of insurance disputes. See Southern Pioneer
Life Insurance Co. v. Thomas, 2011 Ark. LEXIS 573 (Ark.
November 17, 2011).
Florida Statutes of Limitations Not Applicable to Arbitration
Claims Unless Expressly Provided: Account holders at a
financial services company filed arbitration claims with the
National Association of Securities Dealers, Inc., and the
company moved to dismiss the claims as barred by Florida’s
statutes of limitations. The account holders then filed an
action in state court seeking a declaratory judgment. The
trial court issued a final declaratory judgment stating that
Florida’s statutes of limitations were not applicable to the
arbitration claims because arbitrations are not “civil actions”
or “proceedings” for purposes of Section 95.011, Florida
Statutes. The Court of Appeal of Florida affirmed, concluding
that Florida’s statutes of limitations are not applicable
to arbitration claims when the parties have not expressly
included a provision in their arbitration agreement stating
that they are applicable. The appellate court found that the
language in the account agreements at issue did not expressly
state that Florida’s statutes of limitations applied to arbitration
claims. However, the appellate court certified to the Florida
Supreme Court the following question: “Does Section 95.011,
Florida Statutes, apply to arbitration when the parties have not
expressly included a provision in their arbitration agreement
stating that it is applicable?” See Raymond James Financial
Services, Inc. v. Phillips, 2011 Fla. App. LEXIS 18182 (Fla.
App. November 16, 2011).
Rental Car Company Not Required to Equip New Vehicle
Purchased from Reputable Manufacturer with Optional Side
Airbags: An individual was ejected from a car he rented from a
rental car company, The individual sued the rental car company
and the car’s manufacturer, claiming that the vehicle should
have been equipped with side airbags. After the manufacturer
settled with the individual, the rental car company moved for
continued on page 28
PENNSYLVANIA DEALER NEWS FEBRUARY 2012 | 27
legal corner
continued FROM page 27
summary judgment, claiming, among other arguments, that
it could not be found liable for negligence because it owed
no duty to equip the vehicle with optional side airbags. The
trial court granted summary judgment in favor of the rental
car company, and the U.S. Court of Appeals for the Second
Circuit affirmed. The appellate court found that the rental
car company had no duty to equip its rental vehicles with
optional safety features where it bought the car as new from
a reputable manufacturer and was entitled to assume “that
the vehicles were not defectively designed, even absent the
side curtain airbags.” See Noveck v. Avis Rent A Car System,
LLC, 2011 U.S. App. LEXIS 23017 (2d Cir. (E.D.N.Y.) November
17, 2011).
Towing Company Converted Car Where it Took Car in Violation
of Servicemembers Civil Relief Act: An individual sued a
company for damages under the Servicemembers Civil Relief
Act for towing his vehicle from the grounds of his apartment
complex while he was deployed with the U.S. Navy. The trial
court dismissed the lawsuit on its own motion because the
SCRA did not provide a cause of action for damages. While
the individual’s appeal was pending, Congress amended the
SCRA to allow servicemembers to recover money damages
and attorneys’ fees. The U.S. Court of Appeals for the Fourth
Circuit reversed, holding that the damages provision added
28 | FEBRUARY 2012 www.pennsylvaniaiada.com
to the SCRA after the individual filed his lawsuit could be
enforced where the damages were consistent with existing
state law for conversion. The towing company conceded
liability with respect to the SCRA claim, but contested liability
with respect to the conversion claim. The U.S. District Court
for the Eastern District of Virginia granted summary judgment
on the conversion claim in favor of the individual. The court
determined that the individual owned the vehicle at the time
the towing company exercised dominion and control over it.
The court found that the towing company failed to comply
with the SCRA and, as a result, had no legal right to take the
vehicle. See Gordon v. Pete’s Auto Service of Denbigh, Inc.,
2011 U.S. Dist. LEXIS 139089 (E.D. Va. December 2, 2011).
Sale of Car for More than its Estimated Wholesale Value is
Prima Facie Evidence of Commercially Reasonable Sale: A
finance company repossessed a vehicle from an individual
after default and sued for the deficiency after the vehicle was
sold at auction. The individual argued that the vehicle was
not sold in a commercially reasonable manner. The trial court
entered summary judgment in the finance company’s favor, and
the Supreme Court of New York, Appellate Division, affirmed.
It found that because the vehicle sold for $1,700 more than
its estimated wholesale value, there was no genuine issue
of fact as to whether the vehicle was sold in a commercially
reasonable manner. See GMAC v. Jones, 2011 N.Y. App. Div.
LEXIS 8387 (N.Y. App. Div. November 23, 2011).
So there you have it! Stay legal, and we’ll see you next month.
3
Contact:Veronica Eskra [email protected]
Telephone: 717-763-1121 ■ Fax: 717-763-7419
On the Web at: www.shumakerwilliams.com
Offices in Camp Hill and York, PA, and Towson, MD
Established 1964
Committed to Meeting the
Legal and Business Needs
of the Automotive Industry:
Vehicle Finance ■ Buy Here Pay Here ■ Installment Sales ■ Floor Plan Financing ■ Loan Workouts
Auction Matters ■ Agents ■ Messenger Services ■ Licensing and Regulatory Compliance
Enforcement Matters ■ Warranties ■ Insurance ■ Service Contracts and SCRIPs ■ Leasing
Internet Sales ■ ELT Program ■ Contracts ■ Repossessions ■ Starter Interruption Devices and GPS
Counsel to the
Intellectual Property ■ Capital Raising ■ Mergers & Acquisitions ■ Corporate Governance
Pennsylvania Independent
■
■
■
Commercial Litigation Human Resources & Benefits Real Estate Tax Strategy
Automobile Dealers
Succession Planning (family, ownership, management) ■ Estates and Trusts Planning ■ Immigration
Association
LETTER FROM CONSUMER FINANCIAL PROTECTION BUREAU
From the Editor: An e-mailed letter received January 5, 2012
from the newly appointed (1.4.2012) Executive Director of the
federal Consumer Financial Protection Bureau is provided below. This letter is included in our Magazine to provide you, the
reader, with an idea of the initial view and approach of the
CFPB’s new Executive Director toward consumer protection.
Happy New Year,
As the new Director of the Consumer Financial Protection
Bureau, and as someone who has been helping to build the
Bureau for about a year now, I can tell you it’s an extraordinary privilege to work on behalf of American consumers.
Consumers like you. Tell your story. https://help.
consumerfinance.gov/app/tellyourstory
In our first six months, our team at the Bureau has been
answering calls and reading stories from hundreds of American consumers every week. Their stories illustrate the kinds
of issues people are dealing with around the country.
These things can happen to anyone. We are not talking
about some impersonal abstraction, not about somebody
“else.” We are talking about each one of us. We’re talking
about our mothers and fathers, our sisters and brothers, our
sons and daughters. Regular people who are trying to make
the right choices for themselves and their families.
We’ve heard from people like Rebecca from North Carolina. She told us she missed a mortgage payment nine
months after her husband lost his job. In the two years since
then, her mortgage servicer has increased her payments
even though she entered a trial modification in an effort to
lower her monthly payments. The servicer has charged her
monthly fees for inspections and appraisals that she never
asked for and she believes have never occurred, all while repeatedly threatening her with foreclosure unless she shells
out more money in unexplained fees. Rebecca has frantically
complied with all of these demands because she is afraid
of foreclosure and so is doing whatever she can to stay in
her home.
Tell us “your” story at https://help.consumerfinance.gov/
app/tellyourstory
With the stakes so high, consumers need to be able to
fully understand the costs and risks of borrowing on credit,
and they need to be able to comparison shop for the best
deal. Consumers deserve to have someone who will stand
on their side, who will protect them against fraud, and who
will ensure they are treated fairly. The new Consumer Bureau
was created to make sure that these things are achieved for
all Americans. The good news is that we have already gotten
started.
Over time, we will judge the success of our efforts by
considering whether consumers are treated more fairly and
with more clarity and candor in the financial marketplace.
We deeply believe that we must hear from Americans about
their experiences.
Can you share your experience? https://help.consumer
finance.gov/app/tellyourstory
Think about your own family members. Like all of us, they
want to be able to use consumer credit to make their lives
better, not worse. That is our goal as well. The financial marketplace can be a potent arena that helps people find and
seize opportunity, not condemn them to bewildering failure.
By working every day to protect consumers, we will help to
fashion a more resilient economy and a stronger country.
Join us; work with us; help us make it so.
Richard Cordray, Director,
The Consumer Financial Protection Bureau
PENNSYLVANIA DEALER NEWS FEBRUARY 2012 | 29
FROM COUNSEL
protecting your dealership’s
internet identity
By Ryan P. Siney, Esq., Shumaker Williams, P.C., Outside Counsel to PIADA
Ryan Siney
Ryan P. Siney is an
attorney with Shumaker
Williams, P.C., which
provides legal and
business advice to auto
dealers in Pennsylvania,
Maryland and New
Jersey. Ryan’s practice
focuses on business
formation, contracts,
vehicle financing,
litigation, trademarks,
copyrights and internet
law. If you have
questions, please
contact Ryan at
(717) 763-1121 or
siney@shumaker
williams.com.
Just as our identities must be protected in the “real world,” auto dealers must protect
their internet identities from potential fraud, misuse and confusion. Especially in the automotive sales industry, there are a handful of dealership names and logos that are very
common and generic. For example, how many dealerships are you aware of that use similar
names? In a world where customer complaints (or praise) can be spread over the world on
the internet in a matter of minutes, your dealership needs to take steps to protect its identity
and create a strong, recognizable brand that will not be confused with other dealerships.
The first step in protecting your internet (and “real world”) identity is to make sure that
your dealership name is a registered trade name and trademark. Registering your unique
dealership name or logo as a trademark ensures that no other auto dealer will be able to
use the same or a similar name for their own dealership. This is important, since trademark
infringement liability could cost your dealership tens of thousands of dollars.
The second step to protecting your dealership’s identity on the internet is to register
your dealership name as a web site address if you have not already done so. Once your
dealership has a web site, you must protect your identity be ensuring that no other person
or dealership purposefully uses your dealership name (or a confusingly similar name) in an
effort to divert internet users to a competing web site. This intentional diversion of internet
users is called typosquatting.
Typosquatters capitalize on your dealership’s marketing and goodwill by deliberately registering web site addresses which are confusingly similar (but not identical) to your dealership
name or web site address.
The best way to avoid becoming a victim of typosquatting is to register all possible misspellings or permutations of your dealership name. For example, my law firm, which has a
web site at www.shumakerwilliams.com, has also registered www.shoemakerwilliams.com
as a web site address because we know that many people will misspell “Shumaker” as
“Shoemaker.” By registering this common misspelling we can ensure that anyone looking
for our web site will be directed to the right place, and we can prevent other firms from taking
advantage of that error and mis-directing internet users to their own web sites.
If you discover that a typosquatter has already registered a misspelling or other similar
version of your web site address, you can initiate arbitration against the owner of that web
site. Arbitrators have routinely decided that a web site address which differs from the legitimate trademark by only one letter (the most common form of typosquatting) is confusingly
similar to the complainant’s mark.
Another common mistake seized upon by typosquatters is the use of the wrong top level
domain (.com, .org, .net, .info, etc.). Arbitrators have confirmed that merely attaching a
different top level domain to the complainant’s mark is confusingly similar (hp.net is confusingly similar to hp.com).
If you initiate arbitration against a typosquatter and prevail, the web site address about
which you complained will be transferred to you, and you can then re-direct internet users
to your legitimate dealership web site. The arbitration process is very streamlined, costeffective and typically much faster and cheaper than traditional litigation.
The rules governing web site addresses do not, however, preclude a web site owner from
using a similar domain for a legitimate noncommercial or fair use. Thus, a web site address
which incorporates a dealership’s name to protest or comment on the dealership may be
permissible in certain circumstances.
Your dealership must be proactive in registering and protecting its identity, including the
dealership name and logo, before typosquatters, trademark infringers or accidental confusion
cause you to lose customers and revenue. 3
30 | FEBRUARY 2012 www.pennsylvaniaiada.com
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