92nd Dealer Family Convention June 8-11, 2025
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©2025 West Virginia Automobile Dealers Association (WVADA) | The newsLINK Group LLC. All rights reserved. WVADA News is published four times per year by The newsLINK Group LLC for WVADA 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 WVADA, 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. WVADA News is a collective work, and as such, some articles are submitted by authors who are independent of WVADA. 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 PRESIDENT’S MESSAGE 6 MAKING MEMORIES AT THE 2025 DEALER FAMILY CONVENTION By Jared Wyrick, President, WVADA 8 92ND DEALER FAMILY CONVENTION June 8-11, 2025 12 THANK YOU CONVENTION SPONSORS A MESSAGE FROM THE NADA CHAIR 14 PROTECTING DEALERS AND THEIR CUSTOMERS By Tom Castriota, Chair, NADA 16 MEET WVADA’S 2025-26 CHAIRMAN, DENNIS SHEETS 18 CONGRATULATIONS ON YOUR RETIREMENT, GARY SHEETS! COUNSELOR’S CORNER 20 ARTIFICIAL INTELLIGENCE, A BLESSING AND A CURSE By Johnnie Brown, Esq., Pullin, Fowler, Flanagan, Brown & Poe PLLC BY THE NUMBERS 22 TAXES, TAXES AND MORE TAXES By Tasha R. Sinclair, CPA/ABV, Tetrick & Bartlett PLLC 24 LEGACY, LIQUIDITY OR SOMETHING IN BETWEEN How to Navigate the Next Chapter By Jamie Farley, Partner, Performance Brokerage Services 26 FTC MYTHS VS. REALITY A Cybersecurity Perspective By Robbie Harriman, CISA, Director, IT Advisory Services, OCD Tech 30 RANSOMWARE A Response Plan Is Essential for Auto Dealers By Bank of America 32 IN THE COMMUNITY 37 WVADA PREFERRED PARTNER PROGRAMS 38 EXECUTIVE COMMITTEE, BOARD OF DIRECTORS AND DIRECTORS AT LARGE 2025 ISSUE 2 14 22 JARED WYRICK President HALEY JUSTICE Communications & Events Director WEST VIRGINIA AUTOMOBILE DEALERS ASSOCIATION 1618 Kanawha Blvd. E. Charleston, WV 25311 Phone: (304) 343-4158 wvcar.com MEET OUR TEAM ELAINE JUSTICE Office Administrator WVADA NEWS 4
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?® Diana Zamudio, diana.zamudio@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.
PRESIDENT’S MESSAGE Making Memories at the 2025 Dealer Family Convention Jared Wyrick President, WVADA During the week of June 8, we hosted our Dealer Family Convention at The Greenbrier Resort. We extend our heartfelt gratitude to our dealers, their families and our sponsors for their participation. The convention featured insightful presentations from our state leaders, including Congresswoman Carol Miller, who inaugurated our Sunday Night Welcome Reception. Our general business sessions showcased distinguished speakers who explored the latest trends in the automotive industry, offering guidance on navigating uncertainty and inspiring us to become exemplary leaders. We commenced our business sessions with a board meeting, where we discussed future plans and strategies for enhancing our successful association. Our Monday and Tuesday business sessions included addresses from West Virginia Attorney General JB McCuskey; Senator Shelley Moore Capito; WVADA’s General Counsel Johnnie Brown; Robert Franko and Chris Keller with ChampTitles; Derek Garber from Haig Partners; NADA’s Brian Bennett; and Sherryl Nens from ComplyAuto. WVU Football Coach Rich Rodriguez also delivered a fun and inspiring closing. While our mornings were filled with productive business sessions, we also enjoyed some evening festivities. Our annual golf scramble was held on the Old White Course. Everyone was able to cool off that evening at our annual Ally Pool Party, where children delighted in making s’mores, dancing with jellyfish and swimming with a mermaid. The evening was concluded with an awesome fireworks display that lit up the sky over the infinity pool and The Meadows course. Tuesday continued the excitement with our Clay Shoot Tournament and a new addition this year — Iron Chef Cook-Off, in which contestants created an entrée and a specialty drink incorporating pineapple, jalapeños and cotton candy. Special thank you to Dennis and Cindy Sheets for volunteering and judging this fun event! As the evening approached, attendees gathered on the Chesapeake Bay Terrace for the Chairman’s Reception and Dinner. Guests enjoyed a photobooth and caricature portraits, and children relished pony rides and entertained themselves with a balloon artist. After savoring a delicious dinner, attendees relaxed with drinks and enjoyed live music from West Virginia native George Shingleton and his band. We would like to express our sincere appreciation to all our sponsors and exhibitors for their unwavering support; this event would not have been possible without their contributions. Our gratitude also extends to the dealers and their families for their enthusiastic participation. I wish everyone an enjoyable summer as we continue preparations for our upcoming DMV Seminars and Fall Board Retreat. WVADA NEWS 6
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92nd Dealer Family Convention WVADA NEWS 10
To view more photos scan the QR code: https://www.dropbox.com/scl/ fo/mkml60tx5bu3swyu9se1y/ AFCx8UFAC6KyMgr4Oboc_yM?rlkey =gehfwfz2gwn1tlc4176ito560&e=1&st=f z6c138l&dl=0 11 WVADA NEWS
THANK YOU, WVADA DEALERS! Your generous support helps us support our missions to get West Virginians back on the road to independence. Good News Mountaineer Garage puts people on the road with the help of many individuals and organizations. Our model consists of accepting repairable donated vehicles which are then distributed across West Virginia to qualified families in need of transportation to work or job training. We also have a program to help individuals through the process of applying for a loan, learning about credit and purchasing a vehicle. www.goodnewsmountaineergarage.org TAKE US ANYWHERE! Scan to read the most recent publication. Stay up to date from your couch, office or even the moon! Place a 1” x 1” QR Code White on Black Here to the main website WVADA NEWS 13
Wow, the past few months have been quite interesting! Keeping up with all the challenges shaping the auto industry has been challenging. I genuinely appreciate the resilience, strength and positivity that our NADA Board and dealers embody. We have faced uncertainty and tough times before, and I know we will continue to weather any storm that comes our way! I want to thank the board, the ATAEs and especially Mike Stanton and the NADA staff for all that NADA has accomplished since New Orleans. NADA began the year (besides the snow in New Orleans) with a favorable court ruling on Jan. 27, 2025, vacating the FTC’s CARS rule, only to face the Scout/VW and Honda/Sony actions that would prompt NADA to support state franchise laws that protect dealers and their customers. Then the discussion and implementation of the president’s tariffs arrived. I really don’t need to explain in depth the effects this has had on our OEMs and franchises. Like you, I have had many discussions with those affected by the actions and their consequences. Let me assure you, NADA has been on top of the tariff situation since President Trump publicly supported them. We have been in constant contact with dealers, OEMs, other significant auto industry groups, and members of the Administration and Congress. We have also communicated with our membership and the media to educate them on our perspective. While NADA acknowledges the underlying concepts related to the tariffs, as a trade association, it is our responsibility to ensure that the Administration is adequately informed regarding the implications of the decisions being made. NADA aims to ensure that the Administration’s choices are well-informed. In pursuit of this objective, NADA has discussed this with officials from the White House, the Office of the U.S. Trade Representative, the Department of the Treasury, the Department of Commerce and the Small Business Administration. NADA has also requested meetings with the Office of Management and Budget (OMB) and the National Economic Council. These meetings aim to ensure that the perspectives of America’s franchised new car dealers are represented in Washington and that policymakers know the implications of buying and selling automobiles. Here are a few of the messages that NADA has presented to our policymakers: • The average monthly new car payment is $729; increasing these payments will surely be out of reach for the average American family. • The average cost of a new vehicle would increase from $2,000 to $12,000 (depending on the model). • The affected sales of new vehicles could be reduced by 1.1 million units. Protecting Dealers and Their Customers Tom Castriota, Chair, NADA A MESSAGE FROM THE NADA CHAIR WVADA NEWS 14
• We have partnered with other key auto industry groups to send a message to the Administration. • NADA will continue its efforts to educate Washington on tariff impacts and keep membership informed of its work. Finally, I would like to highlight in my notes the passage of the Congressional Review Act (CRA) resolutions in both the House and the Senate, which currently awaits the President’s signature to formalize the legislation. Among other benefits, this legislation effectively outlaws the California ZEV rule, which was designed to ban internal combustion engine (ICE) vehicles. I want to thank the dealers, ATAEs and staff for their hard work in presenting our concerns to Congress and their unwavering support, along with months of tireless efforts to convey the CRA message to our legislators and federal regulators. As this year’s chairman, I represent your interests and am the voice of NADA, which serves you and all the dealers. Please contact me with any questions, concerns or ideas. I look forward to hearing from you (really)! Semper Fi, Tom Castriota Learn more at BankWithUnited.com Member FDIC / Subject to credit and underwriting approval. United Bank specializes in tailoring a combination of financial products and auto-dealer services to best meet the specific needs and goals of your automotive dealership. Floor Plan Line of Credit Term Financing Indirect Financing Cash Management Services GET MORE BANK FOR YOUR DEALERSHIP WVADA NEWS 15
Meet WVADA’s 2025-26 Chairman, Dennis Sheets Dennis Sheets, owner of Sheets Chrysler Dodge Jeep Ram in Beckley, was sworn in as 2025-26 WVADA Chairman during the 92nd Dealer Family Convention. Dennis grew up around the business and brings with him a lifetime of experience to the chairmanship. Raised by a single mother, both Dennis and his brother, Gary, learned the value of a hard day’s work, setting goals and gained a great sense of determination from her example. When Dennis turned 14, he got a job at the dealership where his mother and brother worked. After school, you would find Dennis washing cars and taking care of the lot. It’s safe to say that cars are a family affair. Working alongside family was a blessing to Dennis in many ways. Both his mother and brother took the time to teach Dennis everything they knew about the industry. “I fell in love with the industry during that time,” Dennis said. It was then that he decided that one day he would own his own dealership. WVADA NEWS 16
Dennis worked hard and learned everything he could about the business, and at age 19, having just graduated from high school, he was promoted to a sales job at the dealership. This was a huge step forward toward his goal of ownership. From there, Dennis steadily rose through the ranks. He was the store’s youngest general manager and went on to oversee eight pre-owned locations in West Virginia for the dealership group. In 2004, when Dennis turned 39, with encouragement and support from his wife, Cindy, he ventured out on his own. “After 24 years of working for the same dealer, I knew it was finally time to purchase my own dealership,” he recalled. The example his mother set so many years earlier paid off as Dennis acquired a Chrysler Dodge franchise in Oak Hill. “I did it completely on my own with no assistance through careful planning and years of saving,” he said. Following the Chrysler bankruptcy in 2009, Dennis moved to the larger Beckley market and added a Jeep franchise. “Chrysler gave me all of the territories based on my strong performance as a new young dealer,” he said. “Since I moved to Beckley, I have been improving month over month, as well as year over year.” Having attained a high level of success, Dennis appreciates the many opportunities he was given to succeed, and, in turn, has dedicated himself to helping others do the same. He participates in the Fiat Chrysler Automobiles U.S. (FCA US) Degrees @ Work program, enabling dealership employees and their immediate families to earn degrees from Strayer University — either online or in person — at no cost. “Many of my employees do not have the ability to go to college, and this program provides them the opportunity to receive an education,” he said. “It is extremely rewarding to help my employees grow, learn and better their lives.” His generosity doesn’t stop there. He gives back to the community he loves in a big way — everything from donating vehicles and other assistance to being involved with and supporting a lengthy list of charitable organizations. Because of this, Dennis was West Virginia’s 2016 TIME Dealer of the Year Nominee, an honor given to auto dealers who aren’t just successful but who also demonstrate a long-standing commitment to community service. Dennis embodies everything that it means to be a dealer and a West Virginian — hardworking, driven and filled with a strong sense of family and community. We look forward to having him bring his strength and determination as chairman over the next year. WVADA NEWS 17
Congratulations on Your Retirement, Gary Sheets! After 53 years in the industry, Gary Sheets is ready for the next chapter in his life. For the past 20 years, Gary has been a vital part of the Sheets Chrysler Jeep Dodge team. He started his journey as a lot boy and worked almost every position in the dealership. Gary leaves a legacy of commitment, loyalty and a deep knowledge of the industry. “In my 53 years working in the car business, I’ve only worked for three dealers, which may sound like a lot to some people, but in this business, that’s not very many,” he said. “The other thing I’m proud of is that I’ve never run a dealership that wasn’t profitable.” We recently had the chance to catch up with Gary and get his thoughts on the industry he loves so much, what he’s learned over the years and what retirement holds for him. WVADA NEWS 18
What lessons have you learned throughout your career? First, as an operator or a general manager, you’ve got to inspect what you expect. This concept was introduced to me in 1985 at the NADA Academy, and it has served me well over the years. Second, on the customer level, you need to treat customers with dignity and respect — treat them as you want to be treated yourself. If you do that, you’ll have a good relationship with them that will last for years. What challenges did you face throughout your career, and how did they contribute to your growth? The biggest challenges I’ve faced over the years were economic challenges and changes, from the introduction of Cash for Clunkers when the interest rates were high to when interest rates were low, and the markets were doing well. Economic challenges in the marketplace taught me how to overcome adversity — to recognize and relate to what was happening, then assimilate a plan and put it into action. Ultimately, it comes down to this: Keep doing the right things, treating people right with dignity and respect. You may have some tough times, but if you stay steady and run a good, solid dealership, keeping true to your values, you won’t feel the economic challenges as much because your customer base will stay with you. Do you have any advice for fellow dealers? Invest in training. Many dealers won’t spend money on training their salespeople, but your salespeople are your point of contact with your customers. Investing in their training on how to recognize and relate to the customer can only help. Don’t be afraid to pay your top producers, whether it’s salespeople or management. Too many dealers resent paying top performers. They do a good job of making big money for you. Don’t fall victim to thinking you can find somebody for the job for half the price; you’ll usually get half the performance. What does retirement look like for you? I live on a lake, so the chances of finding me fishing are pretty good. I also enjoy a round of disc golf and am looking forward to traveling. I don’t see myself leaving the industry in the rearview mirror. If the opportunity is available, I want to do training for dealerships when requested on the psychology of selling. Creating salespeople is what I did during my career, and I’d like to keep that focus during retirement. If you’d like my help in training your salespeople on “Closing the Customer You Have Today,” reach out to the association or contact me directly at (304) 320-1980 or gesheets@hotmail.com. WVADA NEWS 19
Before I focus on the topic of this issue of “Counselor’s Corner,” allow me to congratulate the West Virginia Dealer Association on a wonderful annual family convention at The Greenbrier. As usual, the event was informational and educational, but moreover, it was a fantastic opportunity for everyone to reconnect in a relaxed atmosphere. Allow me to turn to artificial intelligence. It is a term that encompasses a broad range of opportunities and efficiencies these days, yet it can also create significant legal liability for dealerships. Within the dealership, we utilize AI for chatbots to support our business development centers and assist customers. Our employees and managers use services such as ChatGPT, Gronk, Gemini and Copilot, not to mention a host of private vendors who are offering these products. We may use them in our hiring and employment decisions, which can create another level of exposure if not used properly. AI can be used to develop marketing messages, predictive maintenance and service alerts, and sales communications. AI agents can also be utilized in the back office to audit for fraud and anomalies. With the use of this new technology comes the usual legal exposure if not used properly. Our dealerships operate in an environment where manufacturers and vendors have access to the dealership’s customer and financial information. Obviously, this is beneficial for our business operations, but we have always faced a long-standing risk of potential data breaches and the exposure of non-public personal information. The purpose of this article is not to focus on safeguarding non-public personal information, as many reputable vendors are currently assisting our West Virginia dealers with best practices. I wish to focus on three areas of exposure that AI creates: identity theft, employment and advertising. The market where dealership sales occur is no longer limited to our surrounding communities and geographical area. The internet certainly changed that dynamic. West Virginia dealers now sell vehicles to consumers in our neighboring states and halfway across the country. We must acknowledge that the use of highly realistic, computer-generated or computer-aided editing in photographs or videos is becoming increasingly sophisticated. These are commonly referred to as “deepfakes.” When selling to a non-local customer, the previous practice of getting on a Zoom or Teams call after receiving the driver’s license to confirm identity would have normally been sufficient. These days, it is easy for individuals to edit their image and voice, which could easily fool any reasonable person. I believe it necessitates a face-to-face meeting at some point in the transaction. This is best handled in the dealership, but I hope a delivery driver is being trained to verify the person’s identity using the provided identification documents. Artificial Intelligence, a Blessing and a Curse Johnnie Brown, Esq. Pullin, Fowler, Flanagan, Brown & Poe PLLC COUNSELOR’S CORNER WVADA NEWS 20
I encourage you to be aware of deepfake detection tools and establish protocols for this type of long-distance transaction. It is essential that the transfer of funds is received and confirmed before any transfer of vehicle ownership and possession takes place. Additionally, I encourage you to ensure that your insurance policy covers such deepfake scams, along with the breach of non-public personal information that we have long protected. As you are aware, the legal obligations have been heightened concerning when we must report a breach of our non-public personal information. We do not wish to be associated with the negative publicity that will result from such an event caused by the nefarious actions of others. Turning to employment issues, the use of AI in hiring decisions is being attacked by many employee attorneys. I want to remind everyone that, even in hiring decisions made with the use of AI, there is a concept known as disparate impact. This concept does not require intent to prove liability, but rather that our actions or policies create a disparate impact on a protected class or protected activity. Although we can utilize AI, our hiring decisions must be transparent and clearly demonstrate why one candidate was chosen over another. We should audit whether our AI system is fairly evaluating the qualifications of individuals. Many states are passing laws concerning the use of AI in hiring decisions. While such a law does not exist in West Virginia as of this date, Maryland and Colorado have passed laws concerning the use of AI within hiring decisions. Again, please audit for bias, ensure transparency and provide a basis for employment decisions. Combine AI with human oversight and stay compliant with all federal laws. Adopt a framework that utilizes AI as a tool, supplementing rather than replacing our human judgment. Last, be careful of chatbots being used in the sale of services or products. Sophisticated buyers are also using AI to trick chatbots. For example, in December 2023, it was reported that a car buyer using AI tricked a chatbot into selling a brand-new Chevrolet Tahoe for $1.00. The actual quote from the chatbot was, “That’s a deal, and that’s a legally binding offer — no takesies-backsies.” No kidding, that was the actual language. I suspect there was an extremely unhappy dealer and an embarrassed chatbot vendor after this event. Another real-life example occurred when several airlines’ chatbots offered airline tickets for ridiculously low prices. While there may be some legal defenses against such mistakes, no one is certainly going to win the public opinion battle by not honoring a mistake made by a dealer or a business’s product. Generally, understand the chatbot’s technology, which is being deployed by a dealership, and its limitations, risks and weaknesses. Perhaps limit its ability to discuss price and financing terms. I believe those are better left to human interaction. Furthermore, review chatbot vendor contracts for indemnification provisions in case such mistakes occur. While limiting the scope of this article, I do appreciate that there are other significant issues surrounding data and artificial intelligence. There remains the issues of data ownership and derivative control, proper training, methods of audit of AI models, understanding the algorithms and settings proper standards and limits on third-party licensing, to go along with the requirements to have our privacy notices correctly state how we will use the non-public personal information that we gather from financing a motor vehicle. However, I simply wish to bring these areas to your attention. While wonderful vendors and service providers operate within your dealership, I encourage you to be aware of these issues and address them. As always, your West Virginia Dealer Association is ready to assist. Please do not hesitate to contact the Association or me for guidance on these complex matters. Have a great summer! WVADA NEWS 21
Tasha R. Sinclair, CPA/ABV Tetrick & Bartlett PLLC When I talk about taxes, I usually focus on income and estate taxes. I’ll continue to explore strategies for reducing those in future articles — especially if and when a final version of the One Big Beautiful Bill becomes law. But today, I want to shift attention to other taxes affecting your dealerships and offer some suggestions for staying compliant while minimizing your exposure. SALES AND USE TAX Effective July 1, 2025, another five municipalities in West Virginia are imposing a 1% municipal sales and use tax, bringing the total up to 94. Sales tax is determined by the location of delivery of goods and services. For most dealership transactions, this is your facility. However, if you deliver parts or offer mobile services, you’re responsible for charging, tracking and remitting the municipal tax for any of the 94 municipalities where those deliveries or services occur. To ensure accurate tax collection: • Review F&I product setup and parts/service modules in your DMS periodically to verify sales tax is applied correctly. • Maintain valid Certificates of Exemption for any customer marked as exempt from sales tax. Regarding use tax, keep in mind that it typically applies to: • Shop supplies. • Large purchases (equipment, furniture). • Services from vendors whose services do not qualify for exemption from sales tax. Be sure to self-assess and remit use tax in these areas if sales tax was not remitted to the vendors. Also, refer to WV Publication TSD 310, which outlines capital improvement exemptions for sales tax. Note: The definition for sales tax purposes differs from that used for income tax. Some expenditures may qualify for income tax BY THE NUMBERS Taxes, Taxes and More Taxes expensing as repairs and also meet the exemption criteria for sales tax. TSD 310 has a detailed, comprehensive list worth referencing when you have a large facility expenditure. BUSINESS AND OCCUPATION (B&O) TAX As of July 1, 2025, sales of new automobiles are fully exempt from B&O tax — a welcome savings for dealerships. However, please note B&O tax is determined by the location of delivery like sales tax. If you deliver parts or provide mobile services in municipalities that impose a B&O tax, you may still be subject to B&O tax in those jurisdictions. Review your activities accordingly. COMMERCIAL BUSINESS PROPERTY TAX West Virginia introduced the Small Business Property Tax Adjustment Credit to ease personal property taxes for small businesses. Unfortunately, most new automobile dealerships exceed the $1 million property value threshold and don’t qualify. That said, there are still steps you can take to reduce your tax liability: • Have department managers review depreciation schedules annually to identify and remove assets no longer in service. • Scrutinize the inventory value calculation submitted with your tax return. Ensure that all allowable excluded sales are claimed. • Scrap obsolete parts inventory and remove them from the valuation submitted. These practices help ensure the lowest possible personal property tax liability. UNEMPLOYMENT TAX Wage misreporting for unemployment tax purposes is a common issue when employees reside in states other than West Virginia. Remember: • Unemployment tax is based on where the employee works. • State income tax withholding, on the other hand, follows where the employee resides, assuming a reciprocity agreement exists (as it does with all West Virginia-bordering states). Ensure your payroll provider and/or personnel are assigning wages to the correct jurisdiction. FINAL THOUGHTS Noncompliance — or even just inattention — to these tax areas can be costly. Regularly review each category and consult your accountant when needed to protect your bottom line. Tasha Sinclair, CPA/ABV, is a principal of Tetrick & Bartlett PLLC and has been providing accounting, tax, valuation and consulting services to automobile dealers since 2002. Tetrick & Bartlett PLLC currently serves over 50 dealers in West Virginia, Virginia, Ohio and Pennsylvania and is a member of the AutoCPA Group, a nationwide organization of CPA firms specializing in services to automobile dealers. Tasha can be reached at tsinclair@tb.cpa or (304) 624-5564. WVADA NEWS 22
Jamie Farley, Partner Performance Brokerage Services F or many dealers, the question of what to do with the store doesn’t start with a spreadsheet. It starts around the dinner table — or maybe in the quiet moments when things finally slow down. After decades of building a business, employing people in your community and putting your name on the sign out front, the decision about what’s next is personal. And when family is involved, it’s rarely simple. Some dealers have always imagined passing the business to the next generation. Others have watched their kids build successful lives in different fields and quietly wonder if a handoff is still the right move. And often, there’s a mix of feelings — pride, uncertainty, loyalty, fear of regret. That’s normal. The emotional weight of a family business is real, and the process of transitioning it — whether within the family or outside of it — deserves careful, honest consideration. What we frequently see is hesitation to start the conversation. No one wants to create tension. Parents worry about upsetting their children. Children don’t want to seem disinterested — or entitled. But silence tends to create more confusion, not less. In families where the transition is successful, the common thread is usually clarity: an open dialogue about roles, expectations and timing well before the handoff begins. What many don’t realize is that there’s no longer just a fork in the road — sell it or hand it down. Today, there’s a broader landscape of options. Some families structure phased ownership transfers over time, others pursue internal buyouts with financial guidance. And more recently, new models have emerged that provide liquidity for the current generation while allowing family members to retain operational control and long-term equity. These approaches offer flexibility and customization that weren’t available — or widely known — even a few years ago. In other words, keeping the business in the family no longer has to mean taking on the full burden alone. There are creative, values-aligned ways to protect legacy, preserve harmony and plan for growth across generations. Still, it’s not just about structure. One of the most overlooked parts of the transition is emotional readiness — on both sides. Is the next generation ready to lead, not just manage? Is the outgoing generation truly ready to step back? And is everyone aligned on the vision for the future? These questions don’t have easy answers, but avoiding them doesn’t make them go away. The good news is that starting the conversation doesn’t commit you to any one path. It just opens the door to explore your options — with your family, your advisors and on your own terms. As buy-sell advisors, we’re often invited into these moments of uncertainty — before a decision has been made, when the road ahead is unclear. And it’s in these early conversations that the real value of planning emerges. Our role is not to push a transaction but to help dealers weigh their options, understand what’s possible and make thoughtful decisions that honor both the legacy they’ve built and the future they envision. These decisions don’t come with a playbook. But they do come with the opportunity to pause, reflect and shape the future with intention. Whether your path leads to a family transition, a sale to a third party or something in between, the most important move is starting the conversation — while you still have time to shape the outcome on your terms. After all, legacy isn’t just what you leave behind. It’s how you choose to move forward. Learn how our experienced team can help you navigate your next move with confidence by contacting Mark Shackelford Sr. at (330) 352-5651 or mark@performancebrokerageservices.com, or Mark Shackelford Jr. at (330) 634-3825 or markjr@performancebrokerageservices.com. LEGACY, LIQUIDITY OR SOMETHING IN BETWEEN How to Navigate the Next Chapter WVADA NEWS 24
HIGHLY ATTENTIVE TO YOUR GOALS UNWAVERING REPRESENTATION UNPARALLELED SUPPORT STRAIGHT-FORWARD AGREEMENTS SUCCESS FEES ONLY WITH NO RETAINERS STRICT GUARDING OF CONFIDENTIALITY FAMILY-OWNED WITH FAMILY VALUES BROKERAGE SERVICES For a confidential consultation and a complimentary evaluation on your business, please contact us. California • Utah • Texas • Iowa • Illinois • Ohio • New Jersey • Alabama • Florida • North Carolina • Virginia • Alberta • Ontario Midwest Office East Mark Shackelford, Sr., Partner 330. 352. 5651 | mark@performancebrokerageservices.com Mark Shackelford, Jr., Partner 330. 634. 3825 | markjr@performancebrokerageservices.com 503 West Park Ave, Barberton, Ohio 44203 Corp: 949. 461. 1372 | performancebrokerageservices.com PIECE TO A PERFECT DEAL THE MISSING We are the trusted resource for helping dealers navigate the complex selling process, while preserving your legacy, protecting your confidentiality, and maximizing the value. Let us help you take the next step with confidence, knowing you have a partner committed to your best interests. Family-owned for over 30 years, our reputation is unmatched and built on a foundation of honesty, integrity, and ethical conduct. These core values run deep throughout our firm and are the driving force behind our continued success. We pledge to do it right, every time, one client at a time.
In 2024, many in the automotive retail industry, including dealer associations and industry consultants, speculated that a new presidential administration would bring sweeping deregulation, including a potential slowdown in the enforcement of rules like the FTC Safeguards Rule. That belief was circulated through 20 Groups, dealer forums and vendor channels, prompting some dealers to question whether continued investment in cybersecurity compliance was necessary. However, recent research and enforcement data show that the expectation of lighter federal oversight may be more myth than reality, especially when it comes to the Federal Trade Commission. At OCD Tech, we analyzed FTC enforcement activity across administrations and found that the agency’s actions have been strikingly consistent — regardless of who is in the White House. Let’s look at the data. MYTH #1: FTC ENFORCEMENT IS MORE LENIENT TODAY When we compared full-term FTC enforcement activity in the auto industry between the current administration’s first term and the past administration, we found nearly identical numbers: • Current Administration: 19 enforcement cases involving the auto industry. • Past Administration: 20 cases. The same pattern holds when we zoom out to FTC enforcement across all industries: • Current Administration: 925 total FTC enforcement actions. • Past Administration: 926 actions. FTC Myths vs. Reality A CYBERSECURITY PERSPECTIVE Robbie Harriman, CISA, Director IT Advisory Services, OCD Tech WVADA NEWS 26
This shows no meaningful difference in enforcement volume or intensity between administrations. Regardless of changes in leadership, the FTC has remained active in pursuing consumer protection violations — including those tied to cybersecurity and data handling. MYTH #2: A SECOND TRUMP TERM WILL BRING IMMEDIATE DEREGULATION Some in the industry believed that a second Trump term would quickly reduce or delay enforcement of the Safeguards Rule. But enforcement patterns during the first 100 days of each term suggest otherwise. • In the first 100 days of Trump’s second term (2025): 2 enforcement actions in the auto industry. • Biden’s first term (2021): 0 actions in the auto industry. • Across all industries: • Current Administration: 49 FTC enforcement actions • Past Administration: 51 FTC enforcement actions Again, the numbers are virtually identical. The FTC has proven to be a nonpartisan enforcement body — continuing its oversight work no matter the political landscape. THE REAL ENFORCEMENT MECHANISM: BREACH REPORTING One reason some dealerships downplayed the risk of FTC enforcement is that, historically, few enforcement actions have directly cited the Safeguards Rule. However, that changed in May 2024, when a new FTC breach notification requirement took effect. This rule mandates that covered entities — including auto dealerships — must notify the FTC within 30 days of discovering certain security breaches involving customer information. This change created a built-in enforcement mechanism. If a dealership suffers a qualifying breach and fails to report it, they are now subject to regulatory scrutiny, not based on a random audit, but due to a failure to comply with a mandatory disclosure requirement. This adds insult on top of injury for a breached dealership. THE FAQ THAT RAISED EYEBROWS In May 2025, the FTC published a new FAQ addressing common questions about the Safeguards Rule, including which businesses are covered, how to meet encryption standards, and what a written information security program should include. While the agency FTC Enforcement in the Auto Industry (Full Term Comparison) Trump: 19 cases | Biden: 20 cases Nearly identical FTC enforcement in the auto industry. FTC Enforcement Across All Industries (Full Term Comparison) Trump: 925 cases | Biden: 926 cases Virtually no difference in total enforcement. FTC Enforcement in the Auto Industry (First 100 Days) Trump: 2 cases | Biden: 0 cases More FTC auto enforcement in Trump’s first 100 days. FTC Enforcement Across All Industries (First 100 Days) Trump: 49 actions | Biden: 51 Nearly identical enforcement across all industries in their first 100 days. Regardless of change in administration, FTC enforcement remains active and consistent. Auto dealers and all U.S. businesses should continue to take compliance risk seriously, regardless of who’s in the White House. WVADA NEWS 27
hasn’t published any formal cases against auto dealerships under the Safeguards Rule, the timing of this FAQ was notable given that we saw several dealerships fall victim to ransomware attacks within the past year. It came almost exactly one year after the CDK Global ransomware attack, which disrupted operations at over 15,000 dealerships nationwide. Though the FTC has not stated that the FAQ was issued in response to events like these, it’s reasonable to interpret the publication as a proactive reminder: Dealerships are still very much subject to the Safeguards Rule, and enforcement may simply be a matter of time. STATE LAWS: THE HIDDEN THREAT TO NONCOMPLIANT DEALERS Even if federal enforcement seemed to pause — again, the data doesn’t support that — it wouldn’t mean dealers are in the clear. As of July 2025, 19 U.S. states have passed comprehensive data privacy or cybersecurity protection laws, with most others having some sort of basic protection laws for residents, and many industry-specific ones at the state level. More states are introducing bills every year, and these laws increasingly apply to businesses that collect consumer or employee data. Just weeks ago, Oregon proposed an amendment targeting cybersecurity and data protection responsibilities within the auto industry, starting with manufacturers but potentially extending accountability to dealers. This is a trend worth watching, especially as many of these state laws carry private right of action provisions, enabling consumers to file lawsuits independently of government enforcement. LITIGATION RISK: CLASS ACTIONS AND RANSOMWARE FALLOUT In several high-profile ransomware cases affecting dealerships over the past year, we’ve seen a sharp rise in class action lawsuits filed not only by consumers but also dealership employees whose personal information (including Social Security numbers) was exposed. Even when regulators don’t act, civil litigation can be financially devastating. Cybercriminals are increasingly aware of Safeguards Rule requirements and use them to their advantage. In some cases, attackers have threatened to report noncompliant victims to authorities if ransom demands aren’t met. While this tactic hasn’t been widely seen in auto retail yet, it’s a known trend in other industries and further underscores the importance of timely breach reporting. A PRACTICAL PATH FORWARD Fortunately, there is good news. Most federal and state data protection rules overlap significantly. The FTC Safeguards Rule, state privacy laws and even consumer litigation risk can all be addressed by adopting foundational cybersecurity practices that protect customer and employee data. At OCD Tech, our approach is rooted in the Center for Internet Security (CIS) Controls — a set of prioritized actions developed by experts to reduce risk. We help dealerships build risk-based, evolving information security programs that align with legal requirements but are also practical and scalable. That means no wasted effort — just smart, defensible security strategies. CONCLUSION: FOCUS ON RISK, NOT RHETORIC Dealers don’t need to obsess over political cycles to make smart decisions about cybersecurity. Enforcement data shows that FTC action has remained steady, regardless of administration. More importantly, the risk landscape — ransomware, litigation, state laws — is growing more complex. Rather than guessing what Washington, D.C., will do next, the safer bet is to treat compliance as a business risk, not a regulatory checkbox. The FTC Safeguards Rule isn’t just about rules — it’s about protecting your dealership, your customers and your employees from real and growing threats. To learn more about OCD Tech — SecurePath, please visit securepath.ocd-tech.com or email Robbie Harriman at rharriman@ocd-tech.com. Robbie is director, advisory services at OCD Tech. Robbie joined the firm in May of 2016. Prior to working at OCD Tech, Robbie worked in IT for other companies, including the heavily regulated casino industry. He currently oversees OCD Tech’s Advisory services, which include security assessments as well as government compliance services, including DFARS, NIST and CMMC for organizations in the Defense Industrial Base. Robbie has a diverse range of experience in the IT field, with a deep background in IT systems administration and control areas. Robbie presents regularly at events and contributes to security-related publications. Dealers don’t need to obsess over political cycles to make smart decisions about cybersecurity. WVADA NEWS 28
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High-profile cyber incidents have highlighted the need for auto dealerships to prepare for the impacts due to loss of critical services and theft of sensitive data. Here are some factors to consider when creating an incident response plan. KEY TAKEAWAYS • Auto dealerships are facing an increasing number of cyberthreats that can debilitate operations and compromise customer and financial data. • Creating a ransomware response plan is a critical piece of any dealership’s preparedness. • By implementing basic controls and best practices, an incident response plan can improve security for dealerships, even those with limited IT and cyber defense budgets. When a software and applications vendor was compromised by ransomware in June 2024, thousands of auto dealerships felt the effects. Essential management systems became inaccessible, sales and financing transactions went manual or stopped, and sensitive customer and business data was compromised. By one estimate, auto dealerships lost over 50,000 new vehicle sales and suffered over $1 billion in damages in the month after the incident was reported.1 Although this was an “upstream” incident that began with a critical service provider, the ransomware event highlighted the elevated risk auto dealerships face. A 2024 study found that 35% of surveyed dealers had dealt with some type of cyber incident in the past year. What’s more, ransomware was rated as the most serious cyberthreat these businesses face.2 In this environment, every dealership needs a plan for what they must do if they’re targeted. WHY A RANSOMWARE RESPONSE PLAN IS ESSENTIAL Even dealerships that lack the resources to hire security professionals or invest in advanced controls can greatly improve their defenses by constructing a response plan that includes proactive measures such as data protection, raising employee awareness and implementing core best practices. A plan that outlines how a business can prepare against cybersecurity threats and respond to incidents can help limit the damages related to loss of data and operations. It can also improve the chances of avoiding many types of incidents, including ransomware. The following guidelines can help dealerships create a response framework that can be tailored to their specific organization and capacity for planning. Bank of America A RESPONSE PLAN IS ESSENTIAL FOR AUTO DEALERS WVADA NEWS 30
KEY ELEMENTS OF A RANSOMWARE RESPONSE PLAN Ransomware response depends on a timely assessment of a live incident’s severity and impact, clearly defined roles and reactions and a thorough investigation to ensure the threat is neutralized and operations can be brought back to a secure state. To be effective, your strategy must be in place before an incident occurs. Here’s how to get started. Before an Incident 1. Prepare • Educate key personnel regarding current cyber-risks and objectives of cybercriminals. • Appoint the most qualified individual to lead the creation, implementation and updating of the response plan. Alternatively, you can supervise a contract with a professional security vendor that creates the response plan. • Conduct a company risk assessment and be sure to include data inventory. • Create and maintain encrypted, offline or immutable backups of essential company and customer data. • Implement strong protections around identity and access management, such as multifactor authentication on all devices that can access company networks. • Formulate, test and continuously evolve the response plan. It should identify stakeholders and their roles, communication tactics and off-network channels, reporting procedures required by regulatory bodies or local law enforcement, and criteria for restoration of safe states. 2. Backup and test • Regularly confirm the integrity of backups. • Do not look at backups as the “last line of defense.” No backup method is 100% cybersecure, and stealthy bad actors can corrupt backups even before they launch ransomware. During an Incident 3. Detection and assessment • Use security tools to monitor network traffic for evidence of an adversary’s presence or movement and issue alerts. • Assess which systems are easily compromised by ransomware and isolate them. Coordinate a shutdown of all devices that cannot disconnect from the affected systems. • Reset all credentials and passwords connected to affected systems. 4. Communication and reporting • Inform all internal teams and stakeholders on a preselected communication channel to ensure individuals essential to the response are engaged. • As needed, report the incident to affected third parties or vendors that assist your dealership with security and incident response. • Notify cybersecurity agencies and/or local law enforcement to maintain regulatory compliance and to receive additional assistance or guidance. • Communicate with third parties and clients to ensure they have not experienced financial impacts after the incident. 5. Containment and remediation • Disable any system involved in the initial breach, as well as connected systems that malicious actors could use to access other parts of the company network or data systems. • Analyze network traffic and endpoints for evidence of the malicious actors’ persistence. Remediate vulnerabilities. • Rebuild the systems that are most critical to business operations. • Reset passwords and permissions. After an Incident 6. Recovery and response plan update • Complete a thorough forensic analysis of the incident and document all steps taken to eliminate the ransomware or remove footholds the threat actor established. • Confirm that backups remain uncorrupted and don’t contain malicious payloads. Restore affected systems. • Inform all relevant third parties and oversight agencies of the steps taken and the removal of the threat. • Make improvements to company systems based on forensics. • Continue to maintain vigilance. Update security systems regularly and adapt employee training to reflect lessons learned. To learn more, visit business.bofa.com. “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. 1 Anderson Economic Group, “Dealer Losses Due to CDK Cyberattack Reach $1.02 Billion.” 2 CDK Global, “The State of Dealership Cybersecurity 2024.” WVADA NEWS 31
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