2025 ISSUE 1 THE OFFICIAL PUBLICATION OF THE VIRGINIA AUTOMOBILE DEALERS ASSOCIATION Dealer Day in Virginia
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® JL Winslow, jl.winslow@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
©2025 Virginia Automobile Dealers Association (VADA) | The newsLINK Group LLC. All rights reserved. Virginia Auto Dealer is published four times per year by The newsLINK Group LLC for VADA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of VADA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Virginia Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of VADA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. CONTENTS 2025 PUB. 6 ISSUE 1 Virginia Automobile Dealers Association A MESSAGE FROM PRESIDENT AND CEO DON HALL 4 What’s in a Name? 5 Registration Open VADA ‘25 6 Dealer Day in Virginia LEGISLATIVE UPDATE 8 New Warranty and Recall Protections for Dealers Signed into Law 10 VADA Live Interview with Dr. Paula Pando 11 Congratulations to Greater Richmond’s TOP GUN Automotive Technicians! 12 2025 NADA Show Recap 13 Congratulations to Dick Myers, New Virginia Motor Vehicle Dealer Board Member 24 6 12 14 Combating Dealership Fraud in 2025 Fraud Is on the Rise, and Virginia Dealers Should Protect Themselves 16 About Those Used Vehicles … By Barrie Charapp Beaty, Charapp & Weiss LLP 19 Back to the Basics By Barrie Charapp Beaty, Charapp & Weiss LLP 20 Virginia Dealers Shifting Gears for Good 24 Payment Strategies for a Changing Auto Retail World By Lyubena Smith, CTP, Treasury Sales Manager; Carl Dix, Treasury Solutions Sales Consultant; and Andy Rankin, Head of Treasury Solutions Sales, Truist Dealer Services 26 Leadership 27 Thank You VADA Allied Members 28 Thank You VADA Program Partners 30 VADA PAC United as One for the Franchise System vada.com 3
What’s in a Name? As we walked the halls of the General Assembly Building during our annual Dealer Day, it dawned on me that the name of our association — and all state “dealer” associations — is somewhat misleading. We are not an organization that merely supports dealership owners and leadership, or exclusively the sales side as the word “dealer” implies. Our work supports everyone inside the four walls of a dealership — and many people, especially consumers, outside of them. Look no further than the unanimous, bipartisan support behind VADA’s warranty and recall legislation in the Virginia General Assembly to provide greater protections to dealerships and fair pay to auto technicians for warranty and recall work. Indeed, among the 100+ dealership leaders at our Dealer Day on Jan. 29 were many boots-on-the-ground automotive technicians, parts and service directors, and others whose livelihoods depend on legislation like this one. These conversations with legislators provided crucial insights, making it clear that outdated reimbursement policies were not only placing financial burdens on dealerships but also delaying necessary vehicle repairs for consumers who rely on the transportation our members provide. Our legislation has since been signed into law by Gov. Glenn Youngkin. This legislation is more than just an economic measure — it’s about fairness, stability and making sure that those who work in our industry can continue to grow in their careers. Dealerships directly employ more than 30,000 people in Virginia, a number that balloons to over 61,000 workers in support or partner roles. The truth is that the Virginia Automobile Dealers Association does not only support “dealers.” We protect the technicians, service teams and managers who ultimately ensure the customer receives quality service every day. And ultimately, it is the customer whom we all serve. A MESSAGE FROM PRESIDENT AND CEO DON HALL 4 Virginia Auto Dealer
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Dealer Day in Virginia More than 100 representatives from Virginia’s franchised car and truck dealerships showed up in Richmond on Jan. 29 to “lead from the front” and support our legislation to bring greater protections and fair pay to our Commonwealth’s automotive technicians. In addition, dealers and technicians sent more than 700 letters of support to lawmakers in support of House Bill 1683 and Senate Bill 1308. The commitment and advocacy in support of fair compensation for Virginia dealers and their technicians are truly invaluable, and our successes are a direct result of VADA’s members’ collective passion, determination and unwavering support. Special thanks to Armatus Dealer Uplift LLC for sponsoring our luncheon prior to visiting the Hill, and to Armatus team members Jordan Jankowski and Ryan Hammer for joining us on these visits. 6 Virginia Auto Dealer
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LEGISLATIVE UPDATE New Warranty and Recall Protections for Dealers Signed into Law In March, Gov. Glenn Youngkin signed into law new protections to ensure fair reimbursement for Virginia’s automotive technicians and dealerships performing warranty and recall repairs. Backed by strong bipartisan support in the General Assembly, the legislation marks a major victory for dealerships, which are often small businesses, across the Commonwealth — closing loopholes, preventing price manipulation by manufacturers and guaranteeing pay for diagnostic and communication time. The law takes effect on July 1, 2025. 8 Virginia Auto Dealer
Dealers should look forward to: • OEMs no longer having the ability to challenge warranty rates based on their definition of “reasonableness.” • Protection from decreases in markup on recall and recall-like repair parts. • The ability to return unused recall parts. • Strengthened protection for payment for diagnostic repair time. • The right to full reimbursement for rental vehicles within 30 days, regardless of the vehicle’s make or model. “We thank our great bill patrons, Del. Sewell and Sen. McPike, for championing fairness for Virginia’s dealerships and the technicians who keep our communities moving and Gov. Youngkin for signing the bills,” said Don Hall, president and CEO of VADA. “In many ways, this legislation is about one thing: doing what’s right. Dealerships shouldn’t be forced to eat the cost of a manufacturer’s mistake, and technicians deserve to be paid for the work they actually do. These new protections are something to be proud of — and something our industry can look forward to benefiting from for years to come.” Scan the QR code to view the details of the legislation. vada.com/wp-content/uploads/2025/01/VADA-Leg-2025-1.20-1.pdf Del. Briana Sewell (D-Prince William) carried HB1683, and Sen. Jeremy McPike (D-Prince William) served as patron to the identical SB1308. vada.com 9
Interview with Dr. Paula Pando VADA Live recently sat down with Paula P. Pando, Ed.D., president of Reynolds Community College, to discuss the critical partnership between community colleges and the automotive industry. Dr. Pando shares Reynolds’ innovative approach to training technicians, including participating in the nationally recognized Toyota Motor Corporation & Lexus Technician Training and Education Network (T-TEN) program and how they’ve embedded EV training into the curriculum. She also discusses the challenges of funding these vital programs and how dealers can help. Hear her inspiring story on how community colleges can transform lives and strengthen communities, and what drives her work every day. Plus, Dr. Pando has a direct message for Virginia’s auto dealers. Enjoy your association news anytime, anywhere. Scan the QR code to visit our online publication to stay up to date on the latest association news, share articles and read past issues. virginia-auto-dealer.thenewslinkgroup.org To watch the interview, scan the QR code. vada.com/blog/2025/02/12/vada-live-interview-with-dr- paula-pando-president-reynolds-community-college/ VADA Live is our newest digital media platform, bringing Virginia’s dealer community timely, relevant insights through live and recorded interviews, trainings and in-depth conversations with industry leaders. Don’t miss an episode! Visit vada.com/live. 10 Virginia Auto Dealer
Congratulations to Greater Richmond’s TOP GUN Automotive Technicians! These skilled automotive professionals were honored at a January 2025 banquet for demonstrating their technical prowess during a November 2024 test held at Reynolds Community College and proctored by the National Institute for Automotive Service Excellence (ASE). To see more of the celebration, visit vada.com/topgun. For more about VADA’s ASE program and bringing these programs to your community, scan the QR code to view our dedicated resource page. vada.com/ase-career-paths/about-ase vada.com 11
2025 NADA Show Recap JOINT RECEPTION Virginia Automobile Dealers Association To view all the photos from the evening, scan the QR code. https://vada.com/blog/2025/02/16/ nada-reception-2025-gallery/ 12 Virginia Auto Dealer
HONORING VIRGINIA’S TIME DEALER NOMINEE DAVE PERNO Scan the QR code to watch the VADA Live Interview with Dave Perno. https://www.youtube.com/watch?v=h3mAhWST5AQ Congratulations to Dick Myers, New Virginia Motor Vehicle Dealer Board Member Congrats to Virginia dealer Dick Myers of his namesake Chrysler Dodge Jeep Ram and Fiat, recently sworn in as a member of the Virginia Motor Vehicle Dealer Board. Led by Virginia DMV Commissioner Gerald Lackey, the Board is made up of franchised and independent dealers and a consumer representative and is charged with administering the laws and regulations of retail dealers. Pictured from left to right are VADA’s Don Hall; Dick’s son, Andy (the third generation to operate the Chrysler Dodge Jeep Ram dealership); Dick and his wife, Susanne; Dick’s daughter, Tracey May; and Anne Gambardella. vada.com 13
The news stories are numerous: Fraudsters hack into a dealership’s email system and intercept wire transfers. Scammers use impossible-to-detect fake IDs to secure transactions. Employees are duped into giving up customer information to an impersonator. But it’s not new news that cyberattacks on dealerships are more prevalent. Incidents can cost thousands of dollars, loss of customers and risk reputational damage. The Federal Trade Commission’s Safeguards Rule also requires dealerships to adopt measures to protect the security of customer information. Here’s the latest data on fraud and cyberattacks — and ways Virginia dealers can protect their business, people and reputation. CONSUMERS LOST $12.5 BILLION TO FRAUD IN 2024 • The latest FTC data shows consumers reported losing more than $12.5 billion to fraud in 2024 — a 25% increase over the prior year. • In 2023, 27% of people who reported a fraud said they lost money, while in 2024, that figure jumped to 38%. • Consumers reported losing more money to investment scams — $5.7 billion — than any other category in 2024. The second highest reported loss amount came from imposter scams, with $2.95 billion reported lost. AN ALWAYS-ON PROBLEM FOR DEALERS Dealerships are an attractive target for cybercriminals because they have several key vulnerabilities, according to our partners at Zurich: • Dealers have a treasure trove of data: confidential and personal information, including financing and credit applications, customer financial information and home addresses. • They lack basic cybersecurity protections. A large percentage of auto dealers use outdated systems and/or have outdated software. Unsecure networks can act as gateways to stealing information or creating digital mayhem. • Dealership systems are often interconnected to external interfaces and portals, such as external service providers, exposing them to further risk. • Dealership employees may lack training in the most frequent of cyberattacks: phishing scams. Nationwide, losses have cost the auto industry more than $7.9 billion, according to Point Predictive. Cybercriminals use hacking, phishing and spoofing techniques to infiltrate email accounts, impersonate trusted parties and redirect funds. Most attacks start with phishing or “social engineering” to deceive or use emotional manipulation to trick people into revealing confidential information or act in ways that harm them (or their employers) financially. AI IDS: IMPOSSIBLE TO DETECT Due to advances in AI, there was a 98% growth in fake-identity fraud in 2024, the FTC said. Identity documents are too easy to forge. And AI-generated fake IDs have gotten so good that trained F&I managers cannot spot forgeries even with close scrutiny for details like 3D holographic stamps. Biometrics — such as facial recognition and other hard-to-imitate characteristics — may become the new standard, according to experts. BE ESPECIALLY CAREFUL OF WIRE TRANSFER SCAMS Fraudsters hack or spoof email accounts to impersonate dealers. They wait for high-value transactions and send fraudulent wire instructions. Money is then wired to criminal-controlled accounts and quickly withdrawn. How To Stop Fraudulent Wire Scams • If selling, establish immediately the method of payment. • In each email or document created, use a message warning against fraud, such as: “Because of the possibility of fraud, only accept payment directions such as wire transfer instructions if you personally verify the information by a telephone call to our publicly advertised phone number.” • Never accept payment directions, such as wire transfer information, without calling a known person at the seller using the publicly advertised phone number. Combating Dealership Fraud in 2025 Fraud Is on the Rise, and Virginia Dealers Should Protect Themselves 14 Virginia Auto Dealer
BY IMPLEMENTING STRONG CYBERSECURITY PROTOCOLS, TRAINING EMPLOYEES AND VERIFYING ALL WIRE TRANSFERS, DEALERS CAN REDUCE THEIR RISK OF FALLING VICTIM TO SCAMS. ADDITIONAL MEASURES YOU CAN TAKE Strengthen Cybersecurity Protections • Keep all computer systems and security software up to date. • Require IT vendors to implement the latest security protocols. • Use multi-factor authentication (MFA) for email and financial transactions. Train Your Team • Educate employees on email scams and cybersecurity best practices. • Train staff to recognize phishing emails and avoid clicking on suspicious links. • Conduct routine checks to ensure employees follow security protocols. Monitor for Suspicious Activity • Regularly review email security and access logs. • Ensure employees use strong passwords and do not write them down or share them. • Monitor for unauthorized changes in financial transactions. Cyberfraud targeting auto dealers is not going away — and has only grown in recent years. Without proactive security measures, dealerships risk losing significant sums of money and facing massive liabilities. By implementing strong cybersecurity protocols, training employees and verifying all wire transfers, dealers can reduce their risk of falling victim to scams. vada.com 15
In July 2024, Vroom entered into a settlement with the Federal Trade Commission in the amount of $1 million, with the FTC issuing refunds to consumers from the settlement monies at the beginning of March 2025. The FTC’s allegations against Vroom were that it participated in deceptive and unfair acts or practices regarding inspections and shipping of vehicles, failure to conspicuously display the Used Buyers Guide and failure to provide written warranties prior to sale to consumers. In the FTC’s statement and the complaint against Vroom, the FTC claims that: • Vroom advertised that its cars underwent “multiple inspections,” including listing 184 points of inspection that were checked by Vroom for every car sold, but consumers had various complaints about the vehicles that told a different story of the condition of the vehicles; • The required Buyers Guide, which lists a dealer’s basic warranty terms and conditions — including the duration of coverage, the percentage of total repair costs to be paid by the dealer, and the exact systems covered by the warranty — was not provided until late in the purchase process and often were missing required information; and • Vroom also failed to provide the terms of its warranty on its website in close proximity to the warranted used vehicle and it didn’t inform consumers how they could obtain the warranty’s terms prior to the receipt of the sale documents. Often claims of fraud against dealerships result from the sale of used vehicles rather than new vehicles, and the Vroom settlement is a lesson for all dealers when it comes to how used vehicles are advertised, if they are advertised as “certified” and thoroughness of warranty disclosures So about those used vehicles … INSPECT ALL USED VEHICLES Too often, used vehicle managers cannot wait to get used cars onto the front line, and that means dealership employees are not taking the time to thoroughly inspect them beforehand. If that’s happening in your dealership, it’s a problem. Most used vehicle managers will argue that they review the vehicle history report or maybe even the title history for the vehicle. Since those show no problems, they see no reason to inspect a vehicle they wish to retail. However, there are lots of reasons why a problem with a vehicle doesn’t show up on a vehicle history report. Perhaps the issue with the vehicle — damage or flooding for example — was not reported to an insurance company and was repaired by the owner out of pocket. Or perhaps the vehicle history report company is delayed in updating recent damage or flooding to the report prior to the dealership’s sale of the vehicle. For many reasons, a clean vehicle history report does not mean that a vehicle has not had problems. CARFAX reports specifically state that “This CARFAX Vehicle History Report is based only on information supplied to CARFAX and available as of [Date] at [Time]. Other information about this vehicle, including problems, may not have been reported to CARFAX. Use this report as one important tool, along with a vehicle inspection and test drive, to make a better decision about your next used car.” More importantly, a clean vehicle history report does not absolve a dealership from failing to follow its obligations under the law, a reminder underscored by the recent Vroom settlement. Title histories may also be misleading. The fact that a vehicle has never been titled in the name of an insurance company doesn’t mean that the car was never declared a total loss. Insurance companies have been known to simply “skip title” by arranging a purchase from the owner of a seriously damaged vehicle directly to a subsequent owner (if it has been fixed) or to someone who will fix it for resale (if it has not been repaired). An insurance company’s name sometimes never shows up on the title history of a totaled vehicle. There are a number of reasons you must carefully inspect the used cars you sell at retail: • Floods: Take 2024 for example, with storms and flooding in various parts of the United States, (i.e., Florida and North Carolina), there are many cars that have suffered flood damage. It’s important for dealers to remember that vehicles may become “flooded” even if they were not partially submerged in standing water. Many vehicles suffer flood damage from hard rains that damage interiors through open windows or through windows and sun/moon roofs with poor or damaged seals that allow rainwater to leak in, causing extensive damage. The fact that its flooding hasn’t yet appeared on a vehicle history report doesn’t mean the car that dealers are buying isn’t a flood car. However, you won’t see those if you don’t carefully inspect the vehicle. • Serious Damage: Plaintiffs’ lawyers love to sue dealers over used vehicles that have suffered previous damage without About Those Used Vehicles … By BARRIE CHARAPP BEATY, Charapp & Weiss LLP 16 Virginia Auto Dealer
disclosure of that to the buyer. Once again, you cannot depend on the vehicle history report or the title history. You can best protect yourself from a claim that a used vehicle suffered severe damage by inspecting it carefully, including putting it up on a lift to look at the undercarriage. While the outside exterior body of the vehicle does not show accident damage, the undercarriage may tell a different story and the next time the customer takes the vehicle for any service work at a different dealership, you can bet they will disclose that to the customer as an opportunity to sell them a replacement vehicle. In short, there are many reasons why you must inspect used vehicles before you put them on the lot at retail. Of course, it is important to know what is in the vehicle report and the title history, so you should review each for every car that you retail. But it is just as important to inspect the car to make sure that there is no condition that should put you on notice of a serious problem. CERTIFIED USED VEHICLES For dealers that have their own Certified Pre-Owned (CPO) program, it must be clear what the term “certified” means. If it’s under their own program, dealers cannot just advertise “Certified Pre-Owned” without providing who has certified the vehicle and under what program. Consumers automatically think a “certified” vehicle means it is meeting a manufacturer-certified program rather than a dealer’s own certified program. What are the dealer’s developed standards that make this vehicle certified? Do those standards provide significant benefits to the customer by ensuring that the vehicle is in good mechanical condition, is free from serious body damage or flood damage, and meets some objective standards of quality? For dealers that are certifying the vehicle under a manufacturer program, you must ensure that the manufacturer’s CPO requirements are met prior to selling the vehicle to the consumer. Dealers should be following the rules set forth in the manufacturer’s Program Manual and should adhere to all program requirements. For example, for some manufacturer CPO vehicles, the vehicle must be submitted to the manufacturer and be approved for sale by the manufacturer as a CPO vehicle prior to selling it to customers. Additionally, some manufacturers require a service history report of all previous warranty repairs to be provided to the customer prior to purchase. Make sure sales personnel know the manufacturer’s rules concerning CPO vehicles so that it’s a clean sale. When advertising a vehicle as CPO, the disclosure of who is actually certifying these vehicles is mandatory. Consumers automatically think “certified” means that it falls under a manufacturer-certified program. The advertisement should provide what certified means and by who. There should be a disclosure that it’s your program versus a manufacturer’s program. Lack of disclosure is ripe for a claim of misrepresentation and deception by both the FTC and plaintiffs’ attorneys. CERTIFIED INSPECTIONS ARE DIFFERENT FROM GENERAL INSPECTIONS A dealer should be sure that each certified used car in the dealership’s inventory meets the established inspection standards either by its own program or the manufacturer’s. If you have your own program, the program should identify the inspection process and standards for each item to be inspected. Such standards guide the technicians and assure customers that the vehicle is in the best condition possible. For your program, what are technicians certifying and what qualifications do they have? For manufacturer programs, you should be following the program with a manufacturer-certified technician doing the Point Inspections and Condition Reports. All inspection reports should be kept by the dealership and a copy provided to the customer. For one manufacturer, their manual requires the inspection report to be kept for a minimum of seven years. Also, some manufacturers require copies of the warranty service records to be provided to the customer buying a CPO vehicle. Dealers often fail to provide a printout of the warranty service records to a customer buying a manufacturer CPO vehicle with the purchase documents. Upon inspection, some vehicles may not be able to be certified, and we are not talking about minor dents and dings or a fender that’s been crumpled. We’re talking about a serious accident, flood-damaged vehicles or vehicles that don’t meet the factory standards for certification because they were repaired without genuine manufacturer parts as required under the CPO program. Customers assume that cars that have been certified have not incurred these types of problems. Manufacturer programs outlaw these types of vehicles from being certified and so should your program. Some vehicles may need minor repairs prior to passing a CPO inspection, which can then bring the vehicle into CPO standards. If the minor repairs and parts are permissible under the manufacturer’s CPO program, the repairs must be made prior to certifying the vehicle. BUYERS GUIDE Used vehicles are required to have a Buyers Guide. When the form was changed over seven years ago, the emphasis of the form was the disclosure of whether there was a dealer warranty. If there is no dealer warranty, but only a franchisor or third-party warranty, the vehicle may only be sold as is or with implied warranties only (depending on state law). If you are providing a dealer warranty on used vehicles, you must state the basic terms of that warranty and what is covered by the warranty. However, the Buyers Guide does not serve as the warranty document. You must have a separate document for the warranty. In some states like Virginia, the Buyers Guide must be signed and dated by the consumer. In states that do not have such a requirement, it is best practice to have the consumer sign and date the Buyers Guide with a copy kept in the deal file. WARRANTIES The Magnuson-Moss Warranty Act requires the seller of a consumer product with a written warranty (“a promise made in connection with the sale of a consumer product”) to make a text of the warranty readily available for examination by a prospective buyer. Remember, the Buyers Guide cannot serve as the dealer’s written warranty document. The requirement is satisfied if the dealer either displays the warranty in close proximity to the warranted car or has prominent signage advising prospective buyers of the availability of warranties upon request. If the dealer opts for the latter option, the dealer must furnish the warranty upon request. vada.com 17
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Back to the BASICS By BARRIE CHARAPP BEATY, Charapp & Weiss LLP Customer complaints are at an all-time high, which often happens when there is economic uncertainty or a downturn. There are many factors, including many customers who are upside down on their vehicles with very lengthy and costly monthly payments. However, many of the complaints that have come to our attention are due to selling practices and behavior of dealership personnel, which often violate laws and regulations (state, federal and local). It’s time for dealers to go back to the basics and train dealership personnel, not just in the laws and regulations that apply to them but the ethical standards of the dealership. Although it’s impossible to train personnel about every possible situation that can occur and the appropriate response to it, a dealer can inform employees about the conduct that the dealership expects of them. This will provide a solid base of ethical standards employees can use when dealing with a situation or making a decision. Dealers should adopt an ethics code such as a Standard of Conduct policy that specifically informs employees that the company intends to conduct its business in compliance with all applicable laws, rules and regulations, with honesty and integrity, and with a strong commitment to the highest standards of ethics. Dealerships also should adopt a complaint-handling process to ensure that all customer complaints, whether they are made directly or through an agency get handled and responded to in a timely manner. A customer complaint can and should be viewed as an opportunity to learn how to improve a dealership’s processes. All too often we have seen that customers have turned to agencies such as state attorney generals to complain because their complaints were not handled by the dealership appropriately. Dealership personnel should know that it’s a violation of your dealership policy (and law) and that they cannot change the price of a vehicle on a consumer if the consumer does not know that the vehicle is advertised at a lower price. All negotiations for the vehicle price start at the vehicle’s advertised price — whether the consumer knows that price or not. It is also a violation of company policy and the law for dealership personnel to inform a consumer that they can purchase the advertised price of the vehicle only if they finance the vehicle through the dealership. Each employee should sign the policy and commit to the company’s standards of ethical conduct. In addition to a general commitment, the code should make a number of critical points: • It is the dealership’s policy to comply fully with the spirit and the letter of all laws and regulations governing its business. • The conduct of each employee should reflect the highest standards of honesty, integrity and fairness. • Each employee is responsible for the propriety and consequences of his or her actions. Employee misconduct will not be excused because an action was directed or requested by a manager or another person. • Employees are expected to exercise good judgment in their work and business relationships to avoid violations of the code of ethical conduct — as well as laws and regulations. • Practices and standards of other companies may not be used as justification for ignoring or modifying the intent of the dealership’s policy. • Unethical or questionable practices, even in the belief that they will benefit the dealership, regardless of degree, will not be tolerated. • Employees should operate in competition with other dealers vigorously, independently and ethically, but they must avoid any practice that could be characterized as unfair or deceptive. The policy must make clear that a violation can lead to disciplinary action. It should also require employees to bring matters to management’s attention even if they are not directly involved. The company can generally only learn about problems if they are reported, and employees should commit to report a violation of any law, regulation or other regulatory requirement, whether committed by a company officer, director or employee. It is also very important that management make employees aware of the fact that the company will protect any employee who brings a matter to the attention of management. Employees should understand that while the company will not make a public broadcast of the employee’s report, confidentiality is necessarily limited. Once the management commences an investigation of a matter, the identity of the person who gave the information to management may become evident. For that reason, management must commit to protecting employees against retaliation. When any investigation commences, a strong warning of non-retaliation must be delivered to those who are subject to an investigation. vada.com 19
Virginia’s auto dealers aren’t just selling cars; they’re investing in the Commonwealth. We’re highlighting the positive impact auto dealers are making in their communities. From charitable giving to community service, these stories showcase how local dealerships go above and beyond to support their teams and neighborhoods. HALEY AUTO GROUP DONATES TO RONALD MCDONALD HOUSE CHARITIES RICHMOND Haley Auto Group made a $1,000 donation to help provide Easter baskets for the Neonatal Intensive Care Unit at Virginia Commonwealth University and the Ronald McDonald House Charities Richmond. Pictured are Julius and Judith Hopkins of Discovery Toys, who designed the baskets. FLOW SUBARU OF CHARLOTTESVILLE COAT AND SHOE DRIVE As part of the Subaru Loves To Help initiative with Operation Warm, Flow Subaru partnered with Piedmont Housing Alliance to provide new winter coats and shoes to children in the Charlottesville community. 20 Virginia Auto Dealer
SHELOR MOTOR MILE SUBARU PARTNERS IN HOSTING “SUBARU LOVES TO HELP” Shelor Motor Mile Subaru in Christiansburg partnered with New River Community Action and their Head Start Preschool to host the Subaru Loves to Help event for children in need. The event teamed up with Operation Warm to provide warm coats to more than 130,000 children throughout the United States. Shelor’s event included letting kids pick out their brand-new coats in their favorite color, pizza, snacks and a toy truck to take home. “Needless to say, we had some VERY happy kiddos at the end of the day,” Shelor wrote. SOUTHERN AUTO GROUP SUPPORTS CHESAPEAKE UNITED SOCCER CLUB Southern Auto Group has been a proud supporter of Chesapeake United Soccer Club for many years and was out with its vehicles and flags at the start of the season’s opening weekend at Centerville Park in Chesapeake. CARTER MYERS AUTOMOTIVE SKILLS USA VIRGINIA DISTRICT COMPETITION Another great Skills USA Virginia district competition is complete! Carter Myers Automotive is a proud supporter of this event. Nine competitors from four local high schools competed in nine events designed to test their automotive technology skills. These events allow students and parents to network with business and industry partners that will be recruiting these students in just a few short months. As these students graduate from high school, they will be armed with the skills and confidence to enter the workforce and be ready to build their career paths! Congratulations to all the students for showing up, giving their best and supporting each other! vada.com 21
HARRISONBURG HYUNDAI CELEBRATES SALES EXCELLENCE WITH 2024 WINNERS Congratulations to Harrisonburg Hyundai’s 2024 Salespeople of the Year winners! Brian Hicks won Top Salesperson at Harrisonburg Hyundai and Tyler Rich won Top Salesperson at Harrisonburg Honda. Your dedication, hard work and commitment to changing lives have truly set you apart. Here’s to an amazing 2025 filled with even more success and customer smiles! SHEEHY LEXUS OF RICHMOND SPONSORS THE UNIVERSITY OF RICHMOND SPIDERS Sheehy Lexus of Richmond is proud to be an official luxury automotive sponsor of the University of Richmond men’s basketball team! Go Spiders! HALEY TOYOTA OF ROANOKE CELEBRATES “BEST OF ROANOKE” AWARDS Haley Toyota of Roanoke was recognized by The Roanoke Times for various Best of Roanoke awards. Haley Toyota of Roanoke is proud to be voted: • Best New Car Dealership • Best Used Car Dealership • Best Auto Body Shop • Best Tire Store • Best Customer Service • Best Auto Service Shop • Best Place to Work Here’s to continuing to serve every customer and vehicle with excellence in 2025! 22 Virginia Auto Dealer
LOYALTY CADILLAC TECHNICIAN WINS TOP GUN Congratulations to Loyalty Cadillac Technician Will Jordan, who received the Top Gun Tech J.D. Riggleman Award of Excellence from the National Institute for Automotive Service Excellence! Winners were selected based on a demonstration of their technical prowess during a test held at Reynolds Community College. Way to go, Will! ALEXANDRIA TOYOTA SUPPORTS “GIRLS ON THE RUN NOVA” Alexandria Toyota hosted a snack drive for Girls on the Run NoVA! They are a local girls’ running organization that aims to build confidence and healthy habits amongst elementary school girls. Thank you to everyone who supported them by donating healthy snacks to fuel teams in the Alexandria area. NELSON FORD SUPPORTS “GOD’S PIT CREW” Nelson Ford is deeply honored to support God’s Pit Crew, a faith-driven, disaster response nonprofit organization. Their unwavering commitment to providing hope, relief and essential resources to communities affected by natural disasters aligns with the dealership’s values, and Nelson Ford is proud to contribute to their life-changing work. NELSON SUBARU KEEPS THE COMMUNITY WARM At Nelson Subaru, they partnered with Operation Warm to provide brand-new coats to children in their community. Thank you, Nelson Subaru, for spreading warmth and support where it’s needed most! Want your community news shared here like these great dealers? If you don’t alert us to it, we don’t know it happened. When you post pictures and news to Facebook, be sure to tag @teamvada. You can also email photos and information to teamvada@vada.com. vada.com 23
By LYUBENA SMITH, CTP, Treasury Sales Manager; CARL DIX, Treasury Solutions Sales Consultant; and ANDY RANKIN, Head of Treasury Solutions Sales, Truist Dealer Services In the past couple of years, the auto retail business has shown remarkable adaptability, changing to meet new demands during the global pandemic. Not only have dealers addressed an array of challenges — inventory depletion, supply chain disruptions and a skilled labor shortage — while still having some of the most profitable years, but they’ve also responded to evolving consumer buying preferences. Today, 40% of Americans say they’re prepared to configure and purchase a car online, only visiting the dealership for a test drive.1 From sophisticated, tech-based marketing to digital documentation, dealers embrace digital transformation as they strive for efficiency to streamline the buying process. Equally important, savvy auto dealers are welcoming innovations for making and receiving payments. FASTER, EASIER AND MORE SECURE PAYMENTS Payment solutions have progressed to become faster, more secure and easier to execute. New options — from Zelle®, PayPal and Real Time Payments (RTP) to Same Day ACH — offer consumers and businesses faster ways to exchange funds. Traditional payment types are plagued with a high risk of fraud. By a wide margin, checks represent the number one fraud risk among payment choices; 63% of respondents in a 2023 survey experienced attempted or actual check fraud at their organization.2 Newer payment methods are constantly upgraded to offer stronger security measures. Consumer demands for faster settlement and funds availability are spurring the shift to digital payments. The latest payment options reflect society’s broad desire for immediacy and younger purchasers’ expectations for simple, digital execution. FIND THE BEST WAY TO PAY To realize the advantages of new payment types, auto retailers often start with payables, exploring options to manage private-party, used car purchases; efficiently process customer refunds; handle marketing and advertising expenses; and pay contractors, suppliers and vendors. Processing a paper check creates additional steps for both parties and exposes them to a higher risk of fraud or loss. By moving away from checks, funds can be managed more efficiently, and the transaction can be completed more quickly. Over the coming years, dealers will need to continue to embrace consumers’ universal push for agility and immediacy. The pressure for the same instant fulfillment that customers experience at other kinds of businesses will extend to every aspect of the way auto retailers market, sell and close purchases. As buying becomes more digital, customers — accustomed to the Zelle and PayPal experience — will start to expect the same speedy movement of funds for an auto purchase that they see in other transactions in their daily lives. Yet buyers’ preferences are only one factor to consider in your approach to payments — speed of execution, fees and the risk of payment reversal are part of the equation as well. Payment options need to align with delivery and fulfillment and integrate with your documentation process. Payment Strategies for a Changing Auto Retail World 24 Virginia Auto Dealer
For now, merchant services remain the preferred means that auto retailers use to secure payment for deposits, in-person sales, and parts and services. As a familiar choice for customers, it can be implemented in both face-to-face and e-commerce settings. KEY BUSINESS PAYMENT OPTIONS Payment Type Payment Description Impact Real Time Payments Electronic payments through RTP member banks • Immediate, irrevocable settlement. • Low transaction cost. • Minimal incidence of fraud (0.1% of all RTP payments according to The Clearing House).3 Same Day ACH Electronic payments through any financial institution • Same business day settlement up to 2:00 p.m. • Low transaction cost. Purchasing and Virtual Cards Individual cards or virtual card numbers issued for one time or repetitive payments to OEMs, vendors and service providers • Same day settlement to seller. • Extends days of payables outstanding. • Lowers administrative costs. Checks Paper-based payments • Variable settlement. • High end-to-end cost. • High incidence of fraud — 63% of businesses have experienced check fraud.2 As you consider the best type of payment for each purpose, keep in mind that a bank like Truist can accept a single file with multiple payment types and then separate and direct each payment where it needs to go. That consolidated payments approach could simplify the time your finance and technology teams spend staging payments. BUILDING A PAYMENTS STRATEGY The range and sophistication of payment options continue to evolve. Payments planning as you work toward creating a payments policy can help ensure your choices align with your business goals and provide the most efficient and cost-effective option for each type of payment you make. Developing a sound payments process starts with a careful assessment of all your incoming and outgoing payments, along with the business requirements behind each one. Examine each type of payment you make in terms of security, speed, cost and convenience involved in moving those funds. Questions you will want to consider include: • When should you remit payment based on terms and discounts? • Do you have a hierarchy of preferred payment options based on transaction cost and ability to mitigate fraud? For example, your preferred payment method may be virtual cards, followed by ACH and RTP. • Do you have segregation of duties where one person enters the payment and a second person approves the payment? A payments strategy can guide you in improving the use of your working capital as you hold onto funds longer before remitting payment, send payments the most cost-effective way, mitigate fraud risks and ensure proper payment authorization. As you begin to design your own payments strategy, refer to the business payments options outlined in the previous chart. 1. Digital Auto Report 2023 Volume 1 – Understanding Customer Preferences and Implications, PWC, 2023. https://www.strategyand.pwc.com/tr/tr/pdf/digitalauto-report-2023.pdf. 2. AFP 2023 Payments Fraud and Control Survey, Association for Financial Professionals, 2023. https://www.jpmorgan.com/content/dam/jpm/commercialbanking/insights/cybersecurity/download-payments-fraud-Survey-keyhighlights-ada.pdf. 3. John Adams, Real-time payments leave little time to spot fraud, American Banker, Oct. 23, 2023. Truist Bank, Member FDIC. ©2025 Truist Financial Corporation. Truist, the Truist logo and Truist Purple are service marks of Truist Financial Corporation. Equal Housing Lender. vada.com 25
VADA Executive Committee Dan Banister Chair Banister Automotive Roger Keller Vice Chair Sheehy Auto Stores Eley Duke Treasurer Duke Chevrolet GMC John Altman Secretary Beyer Auto Group Don Hall President David Dillon Immediate Past Chair Southern Auto Group Tim Pohanka Legislative Chair Pohanka Nissan Hyundai Chris Lindsay PAC Chairman Lindsay Automotive VADA Board of Directors John Altman Beyer Automotive Group Conrad Aschenbach Front Royal Ford LLC Daniel Banister Banister Nissan of Chesapeake Andy Budd Country Chevrolet Harry Carrion Haley Automotive Zachary Cochran Whitten Bros Chrysler Dodge Jeep Mazda Mark Dalton Terry Volkswagen Subaru David Dillon Southern Team Auto Group Eley Duke Duke Automotive Eric Flow Flow Motors Don Hall Virginia Automobile Dealers Association Josh Hamilton Checkered Flag Motor Car Co. Tanner Hulette Mechanicsville Toyota Cameron Johnson Magic City Ford Lincoln Isuzu Roger Keller Sheehy Auto Stores Steve Klimkiewicz Cavalier Ford Lincoln Ashton Lewis, Jr. First Team — Automotive Chip Lindsay Lindsay Management Co. Chris Lindsay Lindsay Chevrolet Ross Luck Luck Chevrolet Thomas Mohr Highway Motors Jeff Owens Southern Auto Group Michael Patrick Patrick GMC Tim Pohanka Pohanka Nissan Hyundai Rachel Pullen Safford Brown Michelle Radley Radley Automotive Group Jake Sodikoff Steven Nissan Michael Suttle Suttle Motor Corp. Matthew Walsh Carter Myers Automotive Virginia Motor Vehicle Dealer Board Alexis Barker-Taplett Mercedes-Benz of Virginia Beach Thomas Bates RK Chevrolet Inc. Tom Barton Beach Ford and Barton Ford Dennis Ellmer Priority Automotive Group Chip Lindsay Lindsay Volvo Cars of Alexandria Dick Myers Dick Myers Chrysler Dodge Jeep Ram Fiat Timothy Pohanka Pohanka Nissan of Stafford LLC LEADERSHIP VADA Group Self-Insurance Association Board of Directors Cole Balderson Ourisman Automotive of Virginia Burt Brenner Lindsay Lexus of Alexandria Chris Brown Haley Automotive Penny Burch Magic City Ford Lincoln Isuzu Gerald Duncan Duncan Ford Chrysler Dodge Jeep Don Hall Virginia Automobile Dealers Association Adam Johnson Johnson Family Chevrolet Fred Kirschbaum Checkered Flag Motor Car Co. Ralph Mastantuono American Service Center Associates Benji Nowak Ted Britt Ford Lincoln Michelle Radley Radley Automotive Group Chris Strosnider Strosnider Chevrolet Rich Tritel Carter Myers Automotive HRADA Officers Pat Fields President Wynne Ford Volvo Heath Wynn Treasurer Hall Auto Group Mike Owen Secretary Southern Auto Group Rebecca Wilson Immediate Past President Checkered Flag Audi HRADA Board of Directors Jarryd Carver Winners Circle Auto Group Brian Clark Charles Barker Mercedes-Benz Jim Hernandez Priority Honda Dave Lawson CMA Williamsburg Ford Cameron Shaw Southern Auto Group Allied Member Bryan Dougherty ACV GRNCDA Board of Directors Keith Hightower Chairman Pearson Honda Zach Cochran Vice Chairman Whitten Brothers Harry Carrion Secretary/Treasurer Haley Automotive Michael Patrick Immediate Past Chairman Patrick Buick GMC Brenton Evans Audi Richmond Kayla Kody Richmond Ford 26 Virginia Auto Dealer
Accumatic Inc. Ally Financial Atlantic Union Bank AutoFi Baker Tilly US LLP Bank of America — Merrill Lynch BDO USA LLP BG Products & Services Brightline Dealer Advisors Brown, Edwards & Co. CarNow CBIZ Charapp & Weiss LLP Computerized Vehicle Registration Core 22 Design Build Core Assurance Councilor, Buchanan & Mitchell, PC DLRdmv Dominion DMS DSMA Dynatron Software Ethos Group Forvis Mazars Foti, Flynn, Lowen & Co. Fulton Bank GM Financial GPW & Associates Inc. Greensboro Auto Auction Haig Partners JM&A Group Kerrigan Advisors KPA M&T Bank Manheim Fredericksburg Manheim Harrisonburg OpenLane People’s Bank PDP Group Pinnacle Bank PMA Management Corp. Protective Asset Protection QoreAI Safepoint GPS Solera TitleTec Strategic Source Tekion TowneBank TradePending True Car Truist Bank United Bank Wells Fargo Dealer Services VADA ALLIED MEMBERS THANK YOU! PNC and PNC Bank are registered marks of The PNC Financial Services Group, Inc. (“PNC”). Bank deposit, treasury management and lending products and services, foreign exchange and derivatives products, bond accounting and safekeeping services, escrow services, and investment and wealth management and fiduciary services are provided by PNC Bank, National Association (“PNC Bank”), a wholly owned subsidiary of PNC and Member FDIC. Lending, leasing and equity products and services, as well as certain other banking products and services, require credit approval. ©2025 The PNC Financial Services Group, Inc. All rights reserved. PNC Dealer Finance Group | With a complete range of banking and financial services — and the support of our dedicated relationship management team — PNC’s specialized Dealer Finance group is committed to making a positive difference for your business. From floor plan and retail financing to treasury and wealth management, we can leverage our resources to deliver a flexible, custom-built solution that moves you forward financially. Shift Your Plans into Drive, Starting Today. Contact a PNC Relationship Manager today and put our Dealer Finance group to work for you. Daniel P. Cannaday VP Floor Plan & Commercial Financing 1 E. Pratt St. Baltimore, MD 21202 443-605-7334 daniel.cannaday@pnc.com CON LEND PDF 0125-0138-2616502 vada.com 27
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