FRONT ROW The official publication of the Washington State Independent Auto Dealers Association
10 MISTAKES To Avoid When Filing State Sales, Use, and B&O Taxes Customer
Insurance Needs Hurting Dealers? A Winning Solution
2016 BIRD DOG MEMBERSHIP CONTEST 3 STEPS TO BIG PRIZES
See page 4!
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The magazine of the WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION WSIADA.COM 707 Auburn Way South Auburn, WA 98002 T: 253-735-0267 | F: 253-804-0844 E: [email protected]
CONTENTS AUGUST/SEPTEMBER 2016
J.T. Curry, Board President Motors Northwest [email protected]
Ken Williamson, Board Vice President/ Chapter President - Tri Cities John’s Auto Mart, LLC [email protected]
Emil Scarsella, Board Treasurer Town & Country Auto Sales [email protected]
David Randall, Board Secretary Randall’s Auto Sales, Inc. [email protected]
Mo Aliabadi South Tacoma Auto Sales, Inc. [email protected]
AJ Hamedian, Chapter President - North Sound Excellent Choice Auto Sales, LLC [email protected]
Rachel Frankel, Chapter President - Vancouver Top Auto Brokers, LLC | topautobrokers.com Frank Tamez, Chapter President - Yakima Auto Max USA | [email protected]
Becky Doolin, Chapter President, South Sound Sunset Auto Wholesale | [email protected]
Vacant, Chapter President, Spokane
WSIADA STAFF Todd C. Elliott, Executive Director Colette Eilers, Member Services Associate Ashlie Seipert, Member Services Associate Michael McGaughy, Member Services Associate Dana White, Member Services Associate PRODUCTION EDITOR Professional Mojo [email protected]
2016 BIRD DOG MEMBERSHIP CONTEST 3 STEPS TO BIG PRIZES
See page 4!
2 | Partners: The Lifeblood of an Independent Auto Dealer 4 | Bird Dog Membership Contest in Full Swing 8 | Customer Insurance Needs Hurting Dealers? 10 | Ten Mistakes to Avoid When Filing State Sales, Use, and B&O Taxes 12 | Auction Listing 15 | A Winning Solution 17 | Service Provider Directory 19 | Read and Respond 20 | Calendar of Events THE FRONT ROW | WSIADA.COM Aug/Sep 2016 | 1
u MESSAGE FROM THE PRESIDENT
Partners: The Lifeblood of an Independent Auto Dealer BY J.T. CURRY, MOTORS NORTHWEST The title of this column also applies to life, but let’s save that for another time. For now, let us get very specific and talk about partnerships for WSIADA. Some of the same partnership messages apply to the dealers, but for WSIADA there is the element of leverage. For example, I participated in a very positive meeting with Pat Koehler and her team recently at the DOL. We consider the DOL and the other Olympia agencies as our partners. We even name them as such on WSIADA.com. Every strong partnership that WSIADA develops has a multiplier effect of 700, or more. You see, we as an association are 700 strong, something we are hoping to improve with our Bird Dog Membership contest announced in Todd’s column. So, every positive impact that our association has in Olympia with one of our partners affects all 700 of us. Likewise, 700 of us have a voice with our partners through our association. We are not going to get everything we ask for; however, if we make reasonable and thoughtful requests and offer solutions that a good partner would, we can hope to get a much more satisfactory result. In addition to DOL, we have had similar encounters with Vikki Smith and her team at DOR and Marc Worthy in the Attorney General’s office. After our recent DOL meeting, we are planning to meeting with the Washington State Patrol (a new partner) to put together a chapter meeting program we would like to roll out in the fall. Notice in this issue and last issue articles by our partners in Olympia. That is a trend we intend to continue. What better source of information than from the horse’s mouth, so to speak! A partnership is a two way street. If we are asking for help and support from Olympia, then they can expect the same from us. In my last column I addressed the dealership’s business office. If you recall, I said, “Stay organized, pay attention to the details of your business, use groups like WSIADA to stay current on changes that positively and negatively impact our industry.” Those dealerships that adhere to the guidelines set forth by our governing bodies, make appropriate inquiries when rules might be improved. You can make those inquiries directly to your association by email or phone call.
ADVERTISER INDEX Please thank these companies for their generous support of our bimonthly publication and mention to them you saw them here! 18 ADESA Seattle 20 AUL BC AutoZone 7 Credit Acceptance 14 DAA Northwest 13 Dealer Socket 3 LeMay America’s Car Museum IFC LOBEL Financial IBC Manheim 7 Nationwide Northwest LLC 16 Paul Webb Training 15 Rekdal Hopkins Howard 12 Shepard & Shepard Insurance
TARGET YOUR ADVERTISING DOLLARS
One last point, the April/May issue of the Front Row summarized a huge computer systems upgrade project underway at the DOL. At our meeting, we offered dealer support for focus groups and live market testing as they bring the new systems online. Please try to make yourselves available when that call comes. Happy selling!
J.T. TO ADVERTISE WITH WSIADA and receive a copy of the media kit for THE FRONT ROW magazine, call (253) 735-0276. 2 | THE FRONT ROW | WSIADA.COM Aug/Sep 2016
EXPERIENCE YOUR AUTOBIOGRAPHY
COMPLIMENTARY DEALER CROSS-PROMOTIONAL OPPORTUNITIES • Display vehicles on Anderson Plaza at ACM — Great visibility from I-5, I-705 & Tacoma Dome • Offer Ride & Drives around Dome District & Haub Family Field • Purchase ACM Group Admission Tickets for event promotion • ACM develops event promotional email for dealership
RESERVE TODAY Contact the Private Event & Sales Coordinator at [email protected]
2702 East D Street Tacoma, WA 98421 | 253.779.8490 | americascarmuseum.org THE FRONT ROW | WSIADA.COM Aug/Sep 2016 | 3
u EXECUTIVE DIRECTOR’S MESSAGE
Bird Dog Membership Contest in Full Swing BY TODD C. ELLIOTT, WSIADA EXECUTIVE DIRECTOR We need your help to make the association stronger! At the Education Fair in Spokane a dealer asked me how he can help recruit new members to share in the benefits of the association and make our industry stronger. We kicked around some ideas. When I got back to the office we built a contest and decided to give it a catchy name: the Bird Dog Membership Contest. To our dealer partners, please help us Bird Dog new members between now and December 31, 2016. The process is simple. 1. Consult the current dealer member list in this issue of the
Front Row magazine. 2. If you have dealer neighbors or buddies who are not members, give them a call, drop them a text or email and sell them on the value of the membership in the Association. 3. Once you have another dealer interested, have them contact us and please LET US KNOW in whatever format works for you. We will follow up with them and get them on the roster. PRIZES: Every dealer who successfully refers at least 3 new members qualifies for the following prizes. • Grand Prize: 500 Plate Frames and Inserts (up to $750) • 2nd Prize: 2017 WSIADA Membership • 3rd Prize: Case of ODOs We will post the results on our website and send you an email link to make it easy to follow the results. A list of current WSIADA dealer members follows at right. Good luck Bird Dogging!
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WSIADA Dealer Members
NORTH SOUND 360 Auto Sales Absolute Mobility Center Access Mobility Systems Aguila Used Car & Truck Sales Aleksandr Trofimchik Alex’s Auto Sales All Right Auto Sales Allyn’s Specialty Cars Alnagy Automotive & Shell Amana Auto Sales American Dream Motors Anacortes Auto Sales Apex ASAE Auto Sales International Apker’s Classic Cars Armadillo Auto Sales Art’s Auto Wrecking Auburn Discount Auto Sales Auburn Way Autos Auburn-Kent Valley RV Auction Auto Sales Aurora Classic Coaches, LLC Auto Buyers Inc Auto Connections of Bellevue Auto Connections Seattle Auto Place, Inc Auto Quest, Inc Auto Sales Consultants, LLC Auto Solutions - Seattle Automotor Autoplex Motors Autos Only Burien Auto Sales Autotrack Autowerx Avery Auto Sales, LLC Avila’s Auto Sales, Inc Barry Arps Bayside Auto Sales Bayview Motor Club, LLC Beetlesmith’s Valley Auto Service Belfair Auto Sales Bellingham Pawnshop, LLC Berglund & Jones Auctioneers, Inc Best Auto Parts, Inc Bidadoo Auctions, Inc Big Dawg Motors Binford Metals, LLC BK Motors Blue Diamond Motors Boyko Motors LLC Brooks Biddle Chevrolet-Suzuki, Inc Bruce Cox Imports, Inc Bryson Sales & Service of Washington, Inc Bubba Sudz Car Wash, Inc Budget Auto Sales
WSIADA DEALER MEMBERS t Buttera Motors, Inc Campbell’s Auto Sales Camping World RV Sales Car Chaser’s LLC Car Club, Inc Car Craft Auto Sales, Inc Car Link Used Auto Sales Car Trends II, LLC Carhop Carmall Auto Sales Carson Cars, Inc Cascade Distributing Cats Exotics, Inc CB Auto Financing, Inc. Cedardale Truck & Trailer Sales, LLC Chad Chambers Auto Sales Championship Motors Checkered Flag Motors Columbia Auto Center Columbia Valley Luxury Cars Commuters, LLC Compass Point Auto Sales, LLC Complete Auto Brokers Complete Automotive, Inc Consignment Sales & Lease Copart Auto Auction Cordial Auto Brokers Corn Motors Country Motorhomes Crown Auto Sales Crown Hill Automotive Daniel Used Automobile Dealer, LLC Dave Chapman Auto Sales Del Sol Auto Sales Denper Group, Inc Direct Auto Sales Don Jose Auto Sales, LLP Drager’s International, Inc Drive Auto Center Drive Change Duffy’s Auto Brokerage LLC Eastlake Auto Brokers Eastside Advanced Auto, LLC Eastside Harley-Davidson Easy Auto Buy, LLC Elite Auto Source, LLC Elite NW Auto Corp Elliott Bay Auto Brokers Emerald City Auto Brokers Emerald City Harley Davidson Enumclaw Suzuki Kawasaki Yamaha European Motors Corp Evergreen Sales And Lease, Inc
Excellent Choice Auto Sales E-Z Auto Buy Inc E-Z Buy Motors, Inc Farrell’s Sales Ferrari Maserati of Seattle Financial Consultants International, Inc First National Fleet and Lease, Inc First Union Auto, LLC Flotilla Auto, Boat, Motorcycle and ATV Sales Freeway Auto Sales Frontline Auto Centre Inc Gasoline Alley Gasoline Alley Autos German Car Specialists GMA of Everett H & H Motors Inc Hall’s Auto Sales Halterman’s RV Hertz Car Sales High Mountain Horsepower High Road Auto Sales Highland Auto HJR Equipment & Vehicles, LLC Honda Auto Center of Bellevue Horizon Auto Sales LLC I-5 Motors Identity Motors, LLC Ilyas Ayupou Import Auto Sales Independence Auto Center Integrity Auto Sales, LLC International Auto & Car Bazaar Iron Technics Enterprises J & L Sales & Rentals J & N Investements J&R Auto Sports LLC James G Murphy, Co Jeg’s Motors JTM Group LLC Karnation Auto Sales, LLC Kent Grand Auto Sales Kent RV Kent Truck & Equipment, Inc Kim’s Auto Sales King Motors Kirkland Auto Broker Kirkland RV Sales Lake Washington Auto Group LLC Landmark Motors, Inc Lease Return Center LLC Legend Auto Sales Inc Liberty Cars
Lifestyle Motor Co Links Auto & Truck Accessories Livengood Motors Los Amigos Lost and Found Classic Car Co Low Auto Sales M&M Lease Co. M.B. Motors LLC Machen Autosports Main Drag Auto Sales & Transportation Mainly Muscle Cars, LLC Mao’s Auto Sales Maple Valley Auto Sales Maxx Autos Plus McMillan Brothers Auction, Inc Memory Lane Motors Mercedes Benz of Seattle Mike & Son Auto Sales, Inc Millennium Motors, Inc Mission Motors MK Motors Motive Auto Sales Motorcars Limited Mountain Loop Motorcars, Inc Mt Si Motors Mycon’s Used Cars & Auto Body Nelson Truck Equipment Co., Inc North City Motors Northend Truck Equipment, Inc Northwest Autobahn Northwest Motorsport, Inc Northwest Sales & Service Numark Automotive LLC NW Auto Recyclers OB-1 Car company Inc O’Neill’s Wheels Open Road RV, LLC Overdrive Motorsport Owen Equipment Company Ozzy Motors, LLC Pacific City Auto Sales Pacific Classics Pacific Coast Auto Center Pacific Highway Sales, LLC Paisano’s Chevrolane Auto Sales Paramount Motors NW Paul Liu Payless Auto Mart LLC Payless Auto Sales Payless Car and Truck Sales LLC Penske Truck Leasing Co, LP Peters & Keatts Equipment Inc Pioneer Auto Sales Platinum Wholesale Autos, Inc
Pro Finish Inc Puget Sound Truck Sales, Inc. Quality Auto Center, LLC Quality Motors LLC R S Auto Rainbow Auto Service LLC Rallye Auto Sales Inc Reality Auto Sales Rich’s Car Corner, Inc Route 527 Motorsports, Inc Ryan’s RV S & S Best Motors S S Motors, LLC Sea Auto Sales Seattle Motors Semper Fi Motors SG Autosales SG Autosales LLC Shoreline Family Auto Care & Sales Sigona Auto LLC Singh Motors of Seattle Smart Motorz Smokey Point Auto Sales Snohomish Equipment Rental & Sale SNS Auto Sales Sound Auto Land, LLC Source Motor Sales, LLC South End Auto Wrecking, Inc South Sound Best Auto Sales Speedy#1 Auto Sales Spirit Auto Center of Renton Sport Motive Auto Sales Stingray Auto Brokers Sunnyside Automotive Group LLC Sunset Cars of Auburn Superior Motors T&T Auto Sales TDI Motors The Car Connection The Import Doctors The Price is Right Three Rivers Marine, Inc Top Spec Auto Totem Lake Auto Sales Town & Country Auto Sales TRED Trend Imports Trend West Auto Sales Truck Country, LLC U-Haul Company of Washington Union Auto Sales Unique Motorsports Auto Sales
THE FRONT ROW | WSIADA.COM Aug/Sep 2016 | 5
u WSIADA DEALER MEMBERS Valley Equipment and Truck Inc Valley Truck and Equipment, Inc Vaqueros Auto Sales Vintage Racing Motors, Inc Walker Motor Works Washington Cars, Inc Washington State Motorcycle Sales LLC Way Scarff Ford Western Truck Exchange Whatcom Auto Sales Winston Auto Service & Sales LLC X Car Inc Xcite Motors PENNINSULA 1 Star Motors, Inc Affordable Used Cars & Marine Sales, Inc All Season RV’s and Trucks Auto Sales Unlimited, LLC B & B Auto Repair & Sales Budget Rent-A-Car Port Angeles Christian Carpenter Auto Center, Inc Cliff ’s Cycle Center, Inc Coastal RV & Auto Sales Custom Autocraft & Sales Dave Barcelon’s Truck Town, Ltd Dave Barnier Auto Sales Dick Vlist Motors, Inc Flotilla Auto, Boat, Motorcycle and ATV Sales Gray Motors, Inc Hudson Auto Center of Bremeton Island View Marine Center Kitsap Auto Outlet Kitsap Used Cars LG Used Auto Sales Liberty Bay Auto Center Inc Modern Collision Rebuild Northwest Rides, Inc. Olympic Auto Sales Olympic Motors P.A. Auto Sales, Inc Port Angeles Power Equipment Randy’s Auto Sales Inc & Motorsports Reid & Johnson Motors, Inc Rock Rent a Car, LLC Ruddell Auto Mall Signature Auto Sales, Inc
Stokes Auction Sun Auto, RV & Marine Sales, Inc Sundance RV & Auto Center The Other Guy’s Auto & Truck Center The Trade Store & Affordable Car Rentals SOUTH SOUND 777 Auto Sales and Service A Auto Sales Adam Car Sales Inc Aguila Used Car & Truck Sales Airport Auto RV Pawn & Sales AK Motors Alex Auto Parts All American Motors All Recovery Services of Washington LLC All Right Auto Sales All Star Automotive, Inc AP Motors, Inc Arasi Auto Sales, LLC Aromax Auto Sales Auburn Discount Auto Sales Auburn Way Autos Auburn-Kent Valley RV Austin’s Pro/Max Auto & Truck Sales Auto Exchange Auto Outlet of Tacoma Home of The Car Guys Auto Sales and Consignments Auto Sales Consultants, LLC B & B Auto Sales, Inc B and B Enterprises, Inc Bacin Kraft Auto Sales, LLC Ball Auto Sales & Service, Inc. Bella’s I-5 Motor Sport Bidadoo Auctions Binford Metals, LLC Bjornson Motors, LLC Blue Diamond Motors Boyko Motors LLC Budget Auto Sales Bunce Rental, Inc Capital City Auto Sales Car Trek II, Inc Car Trends II, LLC Car Zone, LLC Cars “R” Us Carsmart Auto and Truck Sales and Service, LLC Classic Cars Classiness Automotive Sales
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Classy Chassies Fine Used Cars Collins Auto Wholesale Compass Point Auto Sales, LLC Complete Auto Copart Auto Auction Cordial Auto Brokers Cory Reickert Curbside Motors.com Dande Auto & RV Sales Dans Quality Cars Dave Chapman Auto Sales Destination Harley Davidson Don Jose Auto Sales, LLP Easy Auto Buy, LLC Ehli Auctions Elevated Motorsports Elite Auto Source, LLC Emerald Valley Auto Sales Engels Auto Sales Evergreen Sales And Lease, Inc Expo Auto LLC Extreme Auto Sales, Inc Farm & Home Supply, Inc Federal Way Auto Sales Fife Auto Repair & Sales Fife RV Center, Inc First National Fleet and Lease, Inc. Foxfire, Inc Freeway Trailer Sales, Inc Friesen Motorsports Gene Pankey Motor Company, Inc Gene’s Auto and Truck Sales Goodfella’s Motor Company GT Auto Sales Haave’s Auto Sales, Inc Harper’s Auto Sales LLC Hinshaw’s Motorcycle Store, Inc Hunt Street Auto I-5 Motors In and Out Auto Sales International Auto & Car Bazaar J Star Motorsports Jake’s Quality Used Cars JFK Auto Sales and Service Jim’s Classic Garage & Auto Sales Johnson RV JP Auto Sales JRS Auto Sales Kean Motors Kent Grand Auto Sales Kent RV Kent Truck & Equipment, Inc Kersey Mobility Systems, Inc Kim’s Auto Sales
Kost Auto Sales Lake Tapps Auto Sales LLC Latino Auto Sales & Repair Lease Return Center LLC LG Auto L.L.C. Life Auto Sale, Inc Los Amigos Lucash Motors M & M Auto Sales, LLC M D Auto Sales Inc Main Drag Auto Sales &Transportation Maple Leaf Motors Market Place Auto Maxx Autos Plus MC Euro, LLC Memory Lane Motors Meridian Auto Sales Messmer Motors MNM Auto Motive Auto Sales Motors Northwest My Town Motors Nelson Truck Equipment Co., Inc. Northwest Motorsport, Inc NW Auto Sales Olympia Auto Source Olympic Auto Works, LLC One.7, Inc Owen Equipment Company Ozzy Motors, LLC Pacific City Auto Sales Pacific Highway Sales LLC Parkland Auto Center Payless Auto Mart LLC Payless Auto Sales Penske Truck Leasing Co, LP Premium Motors Pro Finish Inc Puyallup RV Qcar Auto Sales LLC Rain City Rides Rhine Equipment Company Rio’s Auto Sales Ritchie Bros Auctioneers (America) Inc Rod’s All Star Auto Roosales Roy Y Auto Sales S & S Best Motors Sabeti Motors, LLC SG Autosales Sigona Auto LLC Singh Motors of Seattle Skyline Group, LLC
WSIADA DEALER MEMBERS t Smart Motorz Sound Auto Land, LLC South Tacoma Auto Sales, Inc Speedy#1 Auto Sales Sunrise Auto Sales Sunrise Automobile Corp Sunset Auto Wholesale Sunset Cars of Auburn Tacoma Auto Exchange Tacoma Car Sales LLC TMS Motor Sports Town & Country Auto Sales Trucks Northwest U-Haul Company of Washington Unique Motorsports Auto Sales V.L.S. LLC Vista Auto Sales and Leasing, Inc. Washington Cedar & Supply Co Way Scarff Ford Western Auto Sales LLC Wilcox Farms, Inc Winston Auto Service & Sales LLC X Car Inc SPOKANE 2 Way Auto Sales A Pro Automotive Adam’s Auto Sales Affordable Auto Rental & Sales, LLC Affordable Motors Agri-Fix, LLC Allwest Auto Remarketing Alpine Haus Marina Appleway RV LLC Arrotta’s Auto Max & RV, LLC Auto Credit Auto Maxx Automotive Distinctions, LLC Automotive Specialties Auto Sales, Inc Basin Auto Sales, Inc Becker’s Used Cars, Inc Best Buy Auto Sales Best Deals Inc Big Boy’s Toys Auto Sales, Inc BJ Auto Sales, Inc BJ’s Used Cars C & V Auto Sales Calligan Transportation Services Inc Camping World RV Sales Cannon Tire Auto and Mobile
Home Sales, LLC Car Connection Car Emporium of Spokane Car Mart Carmax Central Leasing Inc Choice Auto Group Choice Automotive & RV Class 8 Trucks Class 8 Trucks, Inc Clickit Auto & RV Sales Cliffs Quality Auto Cobalt Truck Equipment Cochrane Auto Ranch Common Sense Motors Consumer Auto Liquidators Cool Cars LLC Coyote Ridge Automotive Repair & Sales Crosspointe Autoplex Dave’s Auto Davis Auto Sales Down River Auto LLC Freedom Auto Sales Fresh Start Auto Sales Funke’s Auto Renovation & Auto Sales Globe Motors God Fearing Brothers Ltd Good Guys Cars and Trucks Harrington Machinery Co., Inc. Haven Street Motors Hopkins Automotive Inland Auto Wholesale Inland Sales & Service Jacobsen Motors Jennifer’s Greenacres Auto Sales L. A. Auto Rack LLC Lone Wolf Harley-Davidson Loon Lake Motors Medrano’s Auto Repairs and Sales, LLC Mikes Automotive Mike’s Automotive New Deal Used Cars Inc Newton’s Car Corner Norlift Inc Norlift, Inc Northtown Auto Liquidators LLC Northwest Auto Liquidators Northwest Recreational Liquidators, Inc. Osprey Equipment and Leasing Inc. Panorama Auto & RV Sales LLC
Park Avenue Auto Patriot Automotive Quality Cars Inc Quality King Auto Sales Rafter Y Auction Co., LLC Retro Classic Cars Rick’s Kar Korner Routman Used Kaars Sam Nikzat Shred Supply, Inc Silver Collector Car Auctions, Inc Solid Rock Auto Sales Solid Waste Systems Solid Waste Systems, Inc Spokane Frame & Auto LLC Squirrel’s Auto & RV Steve’s Auto Parts T.K. Auto Sales TCS Auto Wholesale, Inc Thompson’s Too, Inc Tiny’s Sales & Service Titan Truck Equipment Co, Inc Truckland Union Gospel Mission Motors Universal Sales and Service Valley Auto Liquidators VIP Traders Wakefield Inc Western Systems & Fabrication Wholesale Motors TRI CITIES 9th St. Auto, Inc Affordable Auto Liquidators, LLC A-Jack’s Auto Services & Towing LLC AK Autos, LLC All Star Automotive Group All Star Cars, LLC Archibald’s, Inc Auto Plaza Sales/Leasing Autochoice is Yours Dot Com, LLC B & B Enterprises, Inc Bart’s Auto Den, Inc Big Toe Auto Salvage, Inc Booker Auction Company CA Sales Carmona Auto Sales Chandler Auto Sales Chief ’s RV Center Clarkston Auto Sales, Inc Clearwater Auto Sales Collegiate Motorsposts
D Nichols, Inc Dave Martin Family Auto Sales, LLC Elite Auto Liquidators Farm & Home Supply, Inc Funke’s Auto Renovation & Auto Sales Gage Brothers Motorsports Grandstand Auto Sales Harding Motor Company Inca Auto Sales, Inc John’s Auto Mart, LLC Karmart Karnation Auto Sales, LLC L & M Auto Sales Inc Lets Deal Lightfoot’s Auto Sales Marquez Motors Mel’s Wheels & Deals Millennium Auto Sales Ortega’s Auto Sales, Inc Paragon Auto Sales Pasco Auto Wrecking, Inc Prestige Motors, Inc Randall’s Auto Sales Specialty Mobility Tri-Cities Auto Remarketing Tri-City Car Sales USA Auto Sales, Inc Vail International, Inc Warner Auto Center LLC West Coast Auto Dealers LLC Western AG Sales VANCOUVER 3 Six 0 Motorsports 4-H Auto Sales LLC Action Auto Sales and Service All American Classics, Inc Always Affordable Auto LLC AND Auto Sales Art Kuzma Motors, Inc B and B Enterprises, Inc Bellus Motors LLC Brink’s Car Sales Burkett’s Auto Sales Camco Auto Group Carr Auto Group, Inc Cars & Trucks USA Centralia Auction Chehalis Auto Center LLC Clean Machine Auto Detail Community First Auto Centers Country Motorhomes Dick Hannah EJ’s Cruisin’ Classics LLC
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u WSIADA DEALER MEMBERS Eldon Robbins Auto Sales, Inc Family Auto and Motorsports Group Garza’s Auto Repair Gold Key Motors H and H Classic Cars Inc Hot Wheels I-5 Toyota J & M Auto Sales, Inc Karz n More, Inc Luque’s Auto Sales McCord’s Vancouver Auto Center Mills Motors LLC Mimeco, LLC Mixer’s Auto Group Motion Autos Olympia Auto Sales, LLC On the Spot Truck Repair Pat Moore Quality Cars, Inc Paul Christensen Motor Co Premier Motorsports Inc R W Associates Inc. Randco Tanks Ritchie Bros. Auctioneers (America) Inc
Salvagebid Scott’s RV Sales, Inc Sunrise Auto Sales Top Auto Brokers LLC Triple C Auto Brokers U-Neek RV Center US Auto Care, LLC USA Auto Sales Vancouver Car Company YAKIMA A C Auto Sales Aerial Auto Auto Max USA Auto Shoppers, LLC Auto Sport Outlet, Inc BBL Auto Sales Bill Harris Used Cars, Inc Brian Harris Used Cars Bruce Kirkham’s Auto World, LLC Buy Here Pay Here, Inc C and R Car Sales Car Zone Car-Dawgs Carmona Auto Sales
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Cascade Equipment Sales City Motors of Yakima D&M Motors & Towing Delux Auto Sales Erickson Tank & Pump LLC E-Z Credit Auto Sales Frank’s Auto Sales Global Elite Motors Great American Car Co Hall Motor Group Heaverlo Auctions Heaverlo NW, Inc Hill’s Auto & RV, LLC Impact Auto Sales, LLC Independent Performance J & H Auto Sales JBR Motors John Clark Motors, Inc K&S Auto Sales Kim Eccleston’s Motors Inc Kleyn’s Auto Sales, Inc Leonard Evans Cars Lightfoot’s Auto Sales McKenna Motors Mike Wood Auto Sales Miller’s Auto Sales
My Friends Auto Sales Nob Hill Auto Sales Ortega’s Auto Sales, Inc Owen’s Yamaha Suzuki Harley Davidson Palomino’s Automotive, Inc Phil’s Auto Sales Powers Motors Prestige Motors, Inc R. E. Powell Dist Ramirez Motors Speedway Auto Sales Stewart Subaru Ted Motors Co The Auto Connection The Auto Mart The Brown Boys, Inc The Noel Corporation The Pit Stop Used Cars Tom’s Car Store Inc Toppensih Trinity Auto Sales True’s Auto Plaza What About Bob’s Used Cars Yakima Automotive & Collision Specialist LLC Yaktown Motors n
Customer Insurance Needs Hurting Dealers? BY TODD SHEPARD, SHEPARD & SHEPARD BUSINESS SOLUTIONS Many of your customers with standard insurance policies (Safeco, Pemco, Allstate, etc.) have access to a toll free number to add or verify coverage, available 24/7. However, for customers with non-standard or a local agency insurance, the agent is often unavailable to do so at night and on weekends. This is when you sell most of your cars! Every day, dealers are often faced with customers who want to buy vehicles but they are uninsured, underinsured, unverifiable (local agent closed/no insurance card), or forced to shop for insurance before taking delivery. They often use this as the excuse to not take delivery, only to take your car deal’s numbers to a competitor. As we all know, insurance quotes at the point of sale have the potential to blow up a deal, take down payment money, and/or steal backend gross. Dealers most often are forced to use a “work-around”. They call local agents, go online, or call 800# for quotes to secure the insurance before delivery. Insurance quotes on credit challenged customers can also kill a car deal. The credit score often has a big impact on the insurance quote. If the deal survives the insurance quote, some insurance carriers offer to do all of the financing, while others offer ancillary products including GAP, extended warranties, and Tire and Wheel –that isn’t good for your back end gross! Spot Deliveries - A recent article in the Front Row identified some of the dangers of Spot Deliveries. Spot delivering an auto without insurance opens your dealership to a huge liability exposure. It may surprise you
to learn that if the financing falls through your customer technically no longer has an ‘insurable interest’ in the vehicle. If he or she is involved in an accident the insurance company may choose deny a claim- even if a binder was already issued! Neither the finance company nor the customer would be willing to continue the process leaving you with a damaged auto and potential liability for other injuries as a result of the accident. Even worse, many dealer insurance policies exclude Spot Delivery exposure leaving you to foot the bill out of pocket. What can you do? REVIEW YOUR GARAGE POLICY. Ask your agent if you have coverage for Spot Deliveries. Such coverage won’t offer protection for the customer but it can afford liability and physical damage coverage to the dealer in the event he chooses to allow an uninsured or unapproved driver to take delivery. If your policy does not afford this coverage (or if your agent is not familiar with the term), it’s a good time to get a second opinion on your garage policy. Ask the dealer association for a referral to a broker with experience insuring auto dealers to review your policy with you. ESTABLISH A RELATIONSHIP WITH A QUALIFIED PERSONAL LINES AGENT. It’s important to have an agent who is on call to assist your customers secure insurance during YOUR hours of operation. An “independent agency” with access to multiple carriers will give your customer the best chance of obtaining the most competitive rates. Be cautious of agents who promise to pay your salespeople a “spiff.” This may sound like a great
deal but that “spiff ” is typically funded by a “broker fee” collected from your customer at the time of sale. Wouldn’t that extra fee be better served going toward the down payment on the car deal rather than lining the pocket of the agent? POINT OF SALE INSURANCE. Although this unique insurance product is not yet available in Washington, it has been filed pending State approval. Having a Point of Sale Insurance option is a preferred option for many Dealers across the country. It’s available 24/7. The dealer can secure temporary insurance that covers the dealer and customer simultaneously, for the chosen policy term in just a few minutes – with no underwriting (no credit or driving record check). This allows the customer to take delivery immediately with an active policy then add or shop for their insurance needs later. The cost is minimal to the dealer but the benefits are huge allowing your deal to get funded and protecting your dealership from the exposure of an accident caused by your new customer. Customers enjoy not being pressured into shopping limited insurance markets at time of delivery. Instead they can seek a policy that fits their needs, and their budget, from an agent or carrier of their choice at a later date often enjoying additional discounts associated with ‘bundling’ their auto with a homeowners, renters, or umbrella policy. More information will be made available later once the policy terms have been approved by the state. n __________________________________ Todd Shepard is the agency principal of Shepard & Shepard Business Solutions and Author of Insuring Your Dealership – What Every Used Car Dealer Should Know. THE FRONT ROW | WSIADA.COM Aug/Sep 2016 | 9
Ten Mistakes to Avoid when Filing State Sales, Use, and B&O Taxes PROVIDED BY THE WASHINGTON STATE DEPARTMENT OF REVENUE To stay on top of your Washington state tax obligations, here’s a list of the 10 most common errors made by auto dealers when filing their state taxes. 1. Documentary service fees – This is a negotiable fee that can be charged to the customer, up to $150. The fee is taxable under the Service and Other Activities business and occupation (B&O) tax classification.
proof the buyer is a resident from a state whose sales tax is less than three percent. For repairs, if an invoice is separated, the parts can be purchased tax exempt, but the repair labor is taxable because the work took place in Washington. For more information, see Excise Tax Advisory (ETA) 3054.2014.
Common error: • Dealer didn’t report and pay B&O tax on this fee.
Even though sales tax does not apply, dealers must pay retailing B&O tax on all nonresident sales if delivery occurs in this state.
2. Nonresident sales – Separate sales tax exemptions are allowed for sales of motor vehicle and other tangible goods to nonresidents.
Common errors: • Vehicle sales – Dealer didn’t complete and retain the seller’s certificate and buyer’s affidavit. • All sales – Dealer allowed exemptions that are not available to Washington residents or dual residents of another state and Washington. • All sales – Dealer took an interstate and foreign sale deduction under the B&O tax. • Other tangible goods – Dealer forgot to retain a copy of a driver’s license or other ID to document the buyer is a nonresident.
Motor vehicle sales A sales tax exemption is provided to nonresidents on purchases of motor vehicles if certain requirements are met. Dealers must establish the following: • Purchaser is a nonresident. • Vehicle is for use outside Washington. • Vehicle left the premises under a one-transit permit or valid license plates from another state. • The dealer completed and retained the Seller’s Certificate (In-State Delivery). • The dealer retained a completed Buyer’s Affidavit. For more information, see WAC 458-20-177. Other tangible goods A sales tax exemption is provided to residents of some other states on purchases of other tangible goods for use outside Washington. The exemption is only available to residents of a state whose sales tax is less than three percent, such as Oregon, Montana and Alaska. Dealers must examine and keep a copy of identification such as a driver’s license, for 10 | THE FRONT ROW | WSIADA.COM Aug/Sep 2016
Common errors: • Dealer didn’t complete and retain a declaration (or old exemption certificate for sales before June 9, 2016). • Vehicle wasn’t delivered to the buyer’s Indian country. • Vehicle was delivered to an address outside the buyer’s Indian country. • Vehicle was delivered to the wrong Indian country. For example, a Stillaguamish tribal member buys a vehicle that is delivered to Tulalip tribal land. • Dealer didn’t verify the buyer is a tribe or enrolled tribal member.
3. Sales to a tribe or tribal members/citizens – Motor vehicle sales to tribes and enrolled tribal members are not subject to sales tax if the motor vehicle is delivered to or the sale is made in the buyer’s Indian country. Under a new law that took effect June 9, 2016, the buyer and seller must complete a declaration.
4. Trade-in allowance deduction – The trade-in allowance is an exclusion from sales tax for like kind exchanges. This allowance is reported as a deduction on the tax return. It cannot exceed the selling price of the vehicle purchased. The licensed vehicle categories for “trade-in property of like kind” include the following: • Motor Vehicles: Cars, trucks, trucks with canopies, motorcycles, motor homes, mopeds, ORVs, and wheelchair conveyances • Trailers: Boat trailers, utility trailers, animal trailers, commercial trailers, and all other trailers except travel trailers • Recreational Land Vehicles: Travel trailers, campers, tent-camper trailers, and motor homes • Boats • Snowmobiles • Personal property: Mobile homes, travel trailers, motor homes, tent-camper trailers, and campers
See the Department’s *Special Notice Retail Sales Tax Exemptions for Sales of Motor Vehicles to Tribes and Enrolled Tribal Members and *Declaration for Motor Vehicle Sales to Enrolled Tribal Members with Delivery in Indian Country.
Common errors: • Dealer took the deduction for non-like kind exchanges; e.g., customer trades a boat for a car. • The deduction exceeds the selling price of the vehicle purchased. For example,
a customer purchases a vehicle for $10,000 and trades in a vehicle worth $15,000. The trade-in allowance is limited to $10,000, which is the selling price of the vehicle purchased. Reducing the selling price by over/under allowance, which can cause gross income to be underreported for B&O tax.
5. Double deductions – This occurs when a dealer takes two sales tax deductions on the same sale. Common errors: • Taking a trade-in allowance deduction on a qualifying: o Tribal sale o Nonresident/out-of-state sale o Military sale Since the sale was already deducted as a tribal, nonresident sale, also reporting the deduction for the trade-in allowance would overstate deductions. This typically happens when a dealer totals all trade-in allowances for the month/quarter and reports this amount on their tax return without checking to see if sales with trade-ins have already been exempted. 6. Warranty repairs – Repairs made for a third-party warrantor or manufacturer are subject to wholesaling B&O tax. However, dealers must report retailing B&O tax and collect and remit sales tax on “deductibles” that the customer has to pay out of pocket. Common error: • Dealer didn’t collect sales tax on deductibles or other amounts the customer has to pay directly. 7. Finance lease vs. true lease – A finance lease (capital lease or conditional sale) is similar to using a bank loan to purchase a vehicle. A dealer must report retailing B&O tax and collect and remit sales tax on the total selling price (which is the total of all of the finance payments) at the time of sale (at the inception of the finance lease). A dealer cannot wait to collect and remit sales tax on each payment. Typically, at the end of the finance lease term, the customer may purchase the vehicle for a nominal fee, which
must be less than 10 percent of the original value. However, for a true lease (operating lease), sales tax is collected and reported on each monthly payment. Typically, a true lease has more than a nominal amount due at the end of the term of the lease if it’s greater than 10 percent. At the term of the lease, if the customer chooses to purchase the vehicle, then sales tax is due on the residual. Common errors: • Dealer did not collect and remit sales tax on the total selling price at the time of sale. Instead, a financing lease is treated as a true lease and the dealer only collected sales tax on each payment. This typically happens because: o The dealer does not know how financing leases are taxed, or o Thinks a financing lease is a true lease. See WAC 458-20-211 for all criteria used to determine if a lease is a financing lease or true lease. 8. Sourcing sales tax – Dealers should source sales tax as follows: • Sales of motor vehicles – based on the dealer’s location. • Sales of parts and other tangible goods – based on where the customer receives the product. For example, if a part is sold and shipped to Tacoma, sales tax is charged and reported based on the Tacoma delivery address. • Lease and vehicle rentals: o If the lease or rental requires periodic payments, all payments are based on the location where the vehicle is garaged. o If the lease or rental is only a single-pay or “one-pay” lease/rental, the payment is based on the location where customer receives the vehicle. • Extended warranties and maintenance agreements are based on where the customer receives the product (contract agreement).
Common error: • A dealer under-collects sales tax because an incorrect location was used to source a sale. 9. Bad debt deduction/credit for repossessions – Dealers who sold a vehicle, collected sales tax, and reported the sale of its tax returns, may be eligible to take a bad debt deduction under the B&O tax and sales tax based on the amount left on the contract. Common errors: • Dealer reported an incorrect deduction amount because: o The actual sales tax collected on the original sale was reduced by a tradein allowance, which reduces the bad debts deduction. o No sales tax was collected on the original sale because it was a tax-exempt sale (e.g. nonresident or tribal sale). No bad debt deduction can be reported for sales tax on these sales. • Dealer reported a bad debt deduction for sales tax on portions of the receivable that were not subject to sales tax, such as documentary service, licensing, and title fees. • Dealer failed to reduce the bad des deduction by the value of the repossessed vehicle. For example, if the bad debt was $1,000 and the repossessed vehicle was valued at $1,000, then no bad debt deduction is available. For more information on how the bad debt deduction and credits are calculated, see WAC 458-20-196. 10. Use tax – Products purchased for consumption are subject to sales tax or use tax. If sales tax was not paid, then use tax is due. Items like shop supplies, office supplies, and personal use of vehicles are all subject to use tax. Dealers must also pay use tax on used cars provided to their sales staff or managers for personal use without charge. Continued on next page
THE FRONT ROW | WSIADA.COM Aug/Sep 2016 | 11
u AUCTION LISTING
Continued from previous page
Adesa | adesa.com/seattle Tuesday: Consignment 9:30AM Alternate Tuesday: Specialty 8:30AM Thursday Night: InOp Sale 4:45PM
The tax is due on one vehicle per year for each sales person or manager who uses one. The value for use tax reporting is the average selling price of all used vehicles sold in the preceding year, multiplied by 25 percent.
Common error: • Dealer didn’t pay sales tax or use tax on these items. More information is available on Use Tax
at WAC 458-20-132 and WAC 458-20-178. While this is not an all-inclusive list, auto dealers can limit their liability by paying attention to these common errors found during Revenue audits. Questions? If you have more questions, please send them to [email protected]
Resources: All rules, laws, special notices, and forms are available on our Department of Revenue web site at dor.wa.gov. To find documents and other information mentioned in this article, use the web site’s search tool. n
Brashers - Portland brashersportland.com Thursday: Consult website
Copart | copart.com Times vary: Consult website
DAA - Seattle | daanw.com Friday: Dealer and Fleet/Lease 9:00AM Alternate Friday: Heavy Metal* 9:00AM (Lane 8) Monthly GSA Public Auctions: 1:00pm as scheduled” *Mechanically-challenged/cosmetically damaged/non-running inventory
(oac) AT $200. G IN T R TA BONDS S
d r a p e h S & d r a p e Sh 6-0488
DAA - Northwest | daanw.com Weekly auctions: Thursdays at 9:00am; Monthly promotional event auctions: Wednesday at 2pm & Thursday at 9:00am Monthly MotorSports auctions: Thursdays at 11:00am (Lane 8) / Monthly RV auctions: 11:00am (Lane 8); Heavy Metal auctions: 8:30am as scheduled (Lane 8); NOTE: MotorSports, RV and Heavy Metal auction dates can be found at daanwmotorsports.com Ehli Auto Auctions | ehliauctions.com Last weekend of every month.
Shopping for Dealership Insurance?
Kaman | kamanauctions.com Thursday: Noon
Request a Complimentary copy of
Insuring Your Dealership Send Your Name, Dealership Name, and Address To: [email protected]
Shepard & Shepard Insurance “We wrote the book on dealer Insurance!”
12 | THE FRONT ROW | WSIADA.COM Aug/Sep 2016
Manheim - Seattle manheim.com/locations/SSAA/events Monday: OVE Event Sales Tuesday: Alternate weeks Ford Factory (Closed sale) - 10:00am; Crossborder Mobile Sale - 1:00pm Wednesday: General Sale Weekly – 9:00am All sale dates and times are subject to change. Please verify with the Auction or manheim.com. Manheim - Portland manheim.com/locations/PAA/events Tuesday: Open Sale: 9:00AM
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A Record-Breaking Event THANK YOU! Spokane, 14 | THE FRONT ROW | WSIADA.COM Aug/Sep 2016
WA | daanw.com | #daarocks
A Winning Solution BY LINDA JENSEN CLU CHFC LUTCF CLTC, COASTAL FINANCIAL PARTNERS I recently consulted with a successful car dealer. His top salesperson is generating nearly 30% of the business revenues. The owner wants to reward this sales history and acknowledge his contribution to the business. Realizing the importance of incentives to maintain loyalty, he is open to considering non-traditional compensation. The owner wants to offer an additional benefit because of the very real possibility that a competitor could poach his top performer. The dealership currently provides a 401(k) plan with a 3% company match; this investment plan doesn’t offer any flexibility. Of course, a different program cannot be offered to one employee without offering it to all. The issue becomes determining how to provide a cost effective, targeted plan that offers the flexibility to reward based on performance while maintaining a strong corporate balance sheet. We resolved the owner’s anxiety by creating a golden handcuffs plan for the valuable salesperson. A patented strategy that allows assets used to fund this benefit to remain on the business balance sheet. The owner cannot take a current tax deduction, but is reimbursed for the plan costs at the salesman’s retirement, separation from employment, or death. Contributions made on the salesman’s behalf are booked as an account receivable. If the salesman exits the company within the next several years, he is responsible for repaying plan contributions. When the plan is created, the saleperson signs off on the repayment structure, in the event of an early departure from the dealership. Flexible contributions allow for business cash flow fluctuations.
This owner decided to make an annual contribution of $14,700 for 20 years, to the 40-year-old salesman’s benefit plan. If he retires at age 67, the salesman will enjoy just over $100K of tax-free annual income for 15 years. In addition, this plan meets the criteria of keeping the assets on the company’s balance sheet. At retirement, the dealer is reimbursed for the plan costs, and the program ends. After 15 years of tax-free income, the salesman’s heirs will enjoy a residual death benefit of nearly $1,000,000 when he dies. The result is (1) a relieved owner who is confident he can keep his exceptional salesman, and (2) an employee who values his job, and is motivated to increase sales. Coastal Financial Partners specializes in providing innovative approaches that reward and retain key people. Unlike conventional plans that are restrictive, inflexible and prohibit discrimination, our solutions
can work to benefit both business owners as well as key employees. Conventional plans cannot discriminate and create complexity for business management plus taxable retirement income that is subject to new regulations This patented strategy includes an added benefit because our partner handles 100% of the accounting reports for a reasonable fee. The dealer CPAs receive detailed tax reporting satisfying IRS requirements. Every customized plan meets the diverse needs of our dealer owner clients. Plan contributions can be flexible. The owner determines the amount of the benefit and who receives it. The overriding goal of Coastal Financial Partners is to help the dealership leverage its cashflow, create a successful targeted plan, create a plan that benefits the dealer owner, create a plan that remains on the dealer balance sheet and in some cases reward the key employee(s.) n
THE FRONT ROW | WSIADA.COM Aug/Sep 2016 | 15
16 | THE FRONT ROW | WSIADA.COM Aug/Sep 2016
SERVICE PROVIDER DIRECTORY Accounting Services Rekdal Hopkins Howard (425) 658-1400 rh2cpas.com Please see our ad on page 15.
(253) 735-1600 adesa.com/Seattle Please see our ad on page 18.
(503) 492-9200 brashersportland.com
(509) 244-4500 daanw.com Please see our ad on page 14.
(253) 737-2200 daaseattle.com Please see our ad on page 14.
(253) 572-0990 ehliauctions.com
(425) 640-5111 kamanauctions.com
Manheim Portland (503) 286-3000 manheim.com
(206) 762-1600 manheim.com Please see our ad on the inside back cover.
Shepard & Shepard Business Solutions (855) 396-0488 shepquote.com Please see our ad on page 12.
WSIADA service providers are best in class. We invite you to explore their services and please mention that you saw their listing in The Front Row magazine.
Customer Relationship Management Systems
NW Dealer Services
(866) 813-1429 dealersocket.com Please see our ad on page 13.
ProMax Unlimited (360) 789-7486 promaxunlimited.com
Dealer Management Systems Frazer Computing, Inc. (888) 963-5369 frazer.com [email protected]
(360) 200-5287 walkerinsuranceagency.net
Floor Plan Companies
(253) 779-8490 lemaymuseum.org Please see our ad on page 3.
Coastal Financial Linda Jensen (360) 908-0612
Drive Dealer Solutions
Parts & Service
Identity Theft & Data Breach Protection IDENTITYMAXX
AutoZone (866) 727-5317 [email protected]
Please see our ad on the back cover.
In-Vehicle Security (623) 271-1865 onstar.com
(310) 621-8055 pixelcarsstudios.com
Paul Webb Training
Davies Pearson, P.C.
(949) 632-3734 PaulWebbTraining.com Please see our ad on page 16.
(253) 620-1500 dpearson.com
Lobel Financial Corp. (253) 839-2600 lobelfinancial.com Please see our ad on the inside front cover.
(425) 478-7242 drivedealersolutions.com
F&I Group LLC
(206) 728-8249 kiro7.com
(360) 710-9545 thefandigroup.com
LeMay Car Museum
(855) 372-2329 nexgearcapital.com
(206) 696-2264 dpccorp.net
(866) 701-4700 ext. 823 gravitypayments.com
(509) 703-6558 fpxus.com
Finance and Insurance
Benchmark Dealer Services
Floor Plan Xpress
Robin May (253) 653-9911
(800) 826-3207 aulcorp.com Please see our ad on page 20.
(206) 571-3068 swds.net
(253) 333-0300 afcdealer.com
(206) 999-6699 skywerks.com Please see our ad on page 9.
Olympic Dealer Marketing/ SWDS
Pro-Vigil Surveillance Services (210) 858-1105 pro-vigil.com
THE FRONT ROW | WSIADA.COM Aug/Sep 2016 | 17
Visit ADESA.com/off-lease to find inventory. 30-day guarantee on select inventory offered in the open sale on DealerBlock. Applies to eligible off-lease and rental vehicles.
Pay just $30 for 30-day guarantee Need to return the vehicle? We’ll pick it up from your lot! Transportation refund too! If you use CarsArrive Network for transport for an ADESA Assurance vehicle, we’ll refund your transportation cost, if the vehicle is returned.
© 2016 ADESA, INC.
ADESA Assurance buyer protection program and CarsArrive Network must both be selected at time of purchase to qualify for transportation refund. Vehicle must be returned in same condition as purchased within 30 days from purchase date. ADESA Assurance refund covers vehicle sale price and buy fee; transportation costs are only included if CarsArrive Network is used for transportation. See terms and conditions for full details. ADESA Assurance program may be cancelled by ADESA at any time and without notice.
18 | THE FRONT ROW | WSIADA.COM Aug/Sep 2016
READ AND RESPOND | Aug/Sept 2016 Front Row The purpose of this Read and Respond quiz is to verify one has read the content of this issue of Front Row. All of the answers for the questions provided are included in the content of the issue. WSIADA’s Read and Respond quizzes may be counted toward state required continuing education. A passing grade will be granted for scores of 80% or higher. $50 payment is required for non-members prior to the Washington State Department of Licensing being notified of completed continuing education. Please be advised that the information contained in WSIADA’s Front Row is, to the best of our knowledge, current and correct. However, we caution readers not to use the information provided to them as final authority. Its purpose is to be a guide. Any legal advice should be regarded as general information. It is strongly recommended that one contact an attorney for counsel regarding specific circumstances. Some articles may express opinions and/or suggestions for best practices. Likewise, the appearance of advertisers or their identification as members of WSIADA, does not constitute an endorsement of the products or services featured. Dealership Name: _______________________________________ Dealer #: _______________ Date: _________________ Check: q I read and understand the disclaimer above. Check those that apply: q $50 payment is enclosed. q I already paid. q It’s included in my membership. Quiz Taker’s Name: ______________________________________ Signature: _ ___________________________________ Email: ________________________________________________ Position: ____________________________________ Feedback and Comments: _________________________________________________________________________________________________ _________________________________________________________________________________________________ CIRCLE THE CORRECT ANSWER. 1. What is WSIADA’s recommended accounting firm? a. Rekdal Hopkins Howard b. AFC c. Gravity Payments d. Benefits Consultants NW 2. What are the recommended Dealer Management Systems? a. Skywerks b. Frazer Computing, Inc. c. AUL Corp d. both a and b 3. What type of business is Shepard & Shepard Business Solutions? a. Online Marketing b. Printer Service c. CRM Systems d. Commercial Insurance 4. Who is listed as Coastal Financial’s WSIADA representative? a. Dana White b. Megan Filer c. Linda Jensen d. JT Curry 5. What is true about the point of sale insurance product that is pending State approval? a. Bundles with customer’s home or renter’s policy
b. Offers temporary free insurance to dealer and customer c. Does not require a credit or driving record check d. All of the above 6. The residents of what state below does NOT receive tax exemption? a. Oregon b. California c. Montana d. Alaska 7. What is the maximum documentary service fee allowed by the DOR? a. $1000 b. $720 c. $50 d. $150 8. Dealers must pay the following taxes on all nonresident sales if delivery occurs in the state: a. B&O Tax Only b. Sales Tax Only c. B&O Tax and Sales Tax d. B&O Tax, Sales Tax and Use Tax 9. What did Linda Jensen of Coastal Financial call the non-traditional compensation plan in her article “A Winning Solution”? a. 401(k) with 3% company match
b. Golden Handcuff Plan c. Stocks and Bonds d. Life Insurance 10. Why should you be cautious of insurance agents who promise to pay spiffs to salespeople?’ a. It is illegal to accept spiff from agents b. The spiff is funded by your customer in a “broker fee” c. The spiffs take 3 months to be paid d. The spiff is usually small and not worth the effort 11. With the Indian Country Sales Law that went into effect on June 9, 2016, it is no longer necessary to deliver the vehicle to the appropriate Tribal Land. a. True b. False 12. What is a common error on non-resident sales? a. Dealer did not complete and retain Sellers Certificate and buyer’s Affidavit b. Dealer allowed exemptions that are not available to Washington State residents or dual residents Continued on next page THE FRONT ROW | WSIADA.COM Aug/Sep 2016 | 19
u READ AND RESPOND | AUG/SEPT 2016 c. Dealer took an interstate and foreign sale deduction on B&O tax. d. Dealer did not retain a copy of a drivers license or other government ID of a non resident e. All of the Above 13. “Point of Sale” insurance is currently available in Washington State. a. True b. False 14. If you are interested in becoming a member of WSIADA, the best way to reach us is: a. Phone: 253-735-0267 b. Email: [email protected]
c. WSIADA.com d. All of the above 15. To qualify for the prizes in the Bird Dog Contest, a dealer must recruit 5 new WSIADA members. a. True b. False 16. WSIADA is developing partnerships with the following organizations except: a. Department of Licensing b. Department of Revenue
c. Liquor Control Board d. Attorney General’s office e. Washington State Patrol 17. Dealers must pay use tax on used cars provided to their sales staff or managers for personal use without charge. a. False b. True 18. A sales tax exemption is provided to resident of some other states as long as the tax rate in the state they are from is less than what percent? a. 2 b. 3 c. 4 d. None of the above 19. The Bird Dog on the cover is a: a. German Shepherd b. Brittany c. English Setter d. German Shorthaired Pointer 20. All dealer insurance policies include Spot Delivery coverage. a. True b. False
WSIADA EVENTS CALENDAR AUGUST 25
10:00AM - 5:00PM, Prelicensing Class Auburn
10:00AM - 3:30PM, Title Workshop South Sound
9:00AM - 4:00PM, Prelicensing Class Spokane
8:00AM - 9:30AM, Chapter Meeting Lynnwood North Sound
10:00AM - 3:00PM, Title Workshop Lynnwood North Sound
10:00AM - 5:00PM, Prelicensing Class Auburn
SEPTEMBER 26 - 29 National Leadership Conference & Legislative Summit & Board Meeting Washington D.C. The Dupont Circle Hotel
OCTOBER 4 - 6 NIADA Boot Camp Dallas, TX
WSIADA Annual Meeting 12:30pm, WSIADA Office Auburn 20 | THE FRONT ROW | WSIADA.COM Aug/Sep 2016
SEE WSIADA.COM FOR MORE.
RACE TO GIVE Remarketing by Element and Manheim are donating to Red Cross to provide care for those in need.
You’re invited to the 4th Annual Race to Give Charity Auction
PLEASE JOIN US FOR A GRAND EVENING OF SILENT AND LIVE AUCTION ITEMS, DINNER, AND SOME FUN.
Date: Tuesday, September 20, 2016 Time: 4:00pm-8:00pm Manheim Seattle Cinema Room
RSVP to: Cindy Scothorne at 253.437.2566 or Dorothy Hitchcock at 253.437.2567
Remarketing by Element
*IMPORTANT NOTICE: Nothing herein shall be construed as constituting the creation of an employment, agency, partnership, joint venture, fiduciary or similar relationship between Element and the auction company or any other company or person. The administration of the sale events and related promotions (including fulfillment of any prizes or awards) is facilitated and administered by the auction company, and not by Element or any of its affiliates which takes no responsibility for the sale events or any related promotions. All participants are bound by the official rules which can be obtained at participating auction company locations, or otherwise from the auction company upon request. OPEN TO DEALERSHIPS WITH A VALID AUCTIONACCESS MEMBERSHIP NUMBER THROUGHOUT ENTIRE PROMOTION PERIOD AND THAT ARE NOT EXCLUDED AS DEFINED IN THE OFFICIAL TERMS AND CONDITIONS. Begins 7/1/16 at 12:01 a.m. EST & ends 9/30/16 at 11:59 p.m. EST. For eligible purchase details, Participating Locations, reward information, and official Terms and Conditions, see auction Promotions staff. Promotion operated by: Manheim Remarketing, Inc. on behalf of itself and its auction affiliates, 6325 Peachtree Dunwoody Road, Atlanta, GA 30328.
WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION WSIADA.com 707 Auburn Way South Auburn, WA 98002
ALL THE TOOLS TO BUILD YOUR SERVICE DRIVE PARTS AND SERVICES
AUTOMOTIVE REPAIR SOFTWARE
• Hot Shot Delivery • Tools & Equipment • 72-Hour No Core Charge* • 48-Hour Labor Claim Reimbursement**
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CALL 1-866-727-5317 FOR MORE INFORMATION ON THE PARTS, SERVICES AND TOOLS YOU NEED
*72-hour core deferral does not apply to engines, heads, crankshafts, transmissions or outside buys. Core charge deferral is available only to qualified delivery customers. **48-hour response guarantee does not apply to claims over $1,000 or claims requiring product testing. Contact your AutoZone Commercial Specialist for details. © 2016 AutoZone Inc. All rights reserved. AutoZone, AutoZone & Design, Duralast, Duralast Gold, Duralast Max, Loan-A-Tool and Duralast ProPower are registered marks of AutoZone Parts, Inc. and Going The Extra Mile is a mark of AutoZone IP, LLC or one of its affiliates. ALLDATA is a registered trademark of ALLDATA LLC. All other marks are the property of their respective owners.©2016 AutoZone, Inc. All rights reserved. AutoZone, AutoZone & Design, Duralast, and Duralast Gold are registered marks and Going The Extra Mile and Duralast Max are marks of AutoZone Parts, Inc. All other marks are the property of their respective owners. All photographic, clerical, typographical and printing errors are subject to correction.
NIADA used car dealer ad.indd 1
2/10/16 8:30 AM