Issue link: https://read.dmtmag.com/i/217512
8 • December 2, 2013 • Powersports Business www.PowersportsBusiness.com FINANCIAL F&I SOLUTIONS Federal regulations and your powersports dealership Recently, the Federal Trade Commission and the Internal Revenue Service have begun targeting automotive and powersports dealerships for inspection with regards to the Safeguards Rule. With the federal government hungry for new sources of revenue, it is much easier to impose and collect fines than struggle to increase taxes. Understand, fines for non-compliance can reach $11,000 per occurrence. That means for each credit application you leave unsecured you could be fined $11,000. The FTC has issued the final Safeguards Rule to establish standards relating to administrative, technical and physical information safeguards for institutions. The standards of PETER JONES the Safeguards Rule are intended to: ensure the security and confidentiality of customer records and information, protect against any anticipated threats or hazards to the security or integrity of such customer records and protect against unauthorized access to or use of such records or information that could result in harm or inconvenience to any customer. The Safeguards Rule requires companies to develop a written information security plan that describes their program to protect customer information. The plan must be appropriate to the company's size, the nature and scope of its activities and the sensitivity of the customer information it handles. As part of its plan, each company must: designate one or more employee to coordinate its information security program; identify and assess the risks to customer information in each relevant area of the company's operation and evaluate the effectiveness of the current safeguards for controlling these risks; design and implement a safeguards program and regularly monitor and test it; select service providers that can maintain appropriate safeguards (make sure your contract requires them to maintain safeguards and oversee their handling of customer information); and evaluate and adjust the program in light of relevant circumstances, including changes in business or operations, or the results of security testing and monitoring. The success of your information security plan depends largely on the employees who implement it. Here are a few things to consider: checking references or doing background checks before hiring employees who will have access to customer information; asking every new employee to sign an agreement to follow your company's confidentiality and security standards for handling customer information; limiting access to customer information to employees who have a business reason to see it; controlling access to sensitive information by requiring employees to use passwords that must be changed on a regular basis; using password-activated screensavers to lock employee computers after a period of inactivity; developing policies for appropriate use and protection of laptops, cell phones and other mobile devices; and preventing terminated employees from accessing customer information by immediately deactivating their passwords and user IDs. Also, train employees to take basic steps to maintain the security, confidentiality and integrity of customer information, including: locking rooms and file cabinets, not sharing or openly posting employee passwords, encrypting sensitive customer information when it is transmitted electronically via public networks and reporting suspicious attempts to obtain customer information. Here are some suggestions on maintaining security throughout the life cycle of customer NORTHWEST 1.9% Service Department 15.3% Major Units 11.9% 4.6% Parts Department 7.9% Parts Department Overall Parts Department Service Department 17.2% Service Department Major Units 9.8% 4.8% 5.6% Major Units WEST 3.6% Overall A B C Eu In In Ja M Ph S S Ta Th NORTHEAST 6.5% MIDWEST 2.1% 5.6% Overall Parts Department N 8.3% Service Department 12.6% Major Units SOUTH -0.2% 9.9% Overall Parts Department 3.3% UNITED STATES Service Department 9.4% 11.3% 2.5% Parts Department 5.8% Major Units Major Units 8.8% Service Department 7.4% Overall Overall OCTOBER 2013 PARTS SALES Overall, the 1,357 metric and V-twin dealerships covered by ADP Lightspeed saw an improved October year over year. U.S. dealerships reported an 8.8 percent total store increase over October 2012. Parts in the South was the only area that was down, with a 0.2 percent decrease. Major unit sales were up significantly, with a 11.3 percent hike from the same month in 2012. The Northwest reported the largest unit sales increase, up 17.2 percent. In parts, 730 dealers were up, while 627 were down. MARKET WATCH SERVICE SALES For service, 735 dealers were up, while 549 were down. MAJOR UNIT SALES FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: adplightspeed.com/dataservices 721 dealers were up, and 461 dealers were down in units. 260 120.511 4.12 3.54% P08x11-PSB15-Finance.indd 8 160 140 120 100 80 PSB INDEX VALUE DOW JONES INDEXED S&P 500 INDEXED 11/8/13 S&P 500 Index 180 10/14/13 3.01% 9/16/13 4.01 8/20/13 137.093 200 7/23/13 Dow Jones Index 220 6/21/13 -3.9% 5/28/13 -9.46 5/7/13 233.068 240 4/17/13 % Change Powersports Business Index Source: FactSet and Wells Fargo Securities, LLC POWERSPORTS BUSINESS WINNERS AND LOSERS STOCK MARKET ACTIVITY 3/15/13 11/8/13 inf kn is s au sto or flo is l inf pu on ph sto wi bac by are pan wh DEALER FINANCIAL SNAPSHOT STOCK MARKET WATCH Change from 10/8 ww Company MarineMax, Inc. Universal Technical Institute General Electric Co. Brunswick Corp. Assurant, Inc. Deere & Company Arctic Cat, Inc. Spy Inc. Cooper Tire & Rubber ArvinMeritor Stock Ticker HZO UTI GE BC AIZ DE ACAT XSPY CTB ARM Price 11/8/13 $16.10 $13.67 $27.05 $45.04 $59.84 $81.50 $51.89 $1.25 $23.82 $6.79 Percent Change 28.5% 20.4% 14.3% 14.0% 8.5% -0.9% -3.4% -9.1% -10.1% -11.2% 11/25/13 11:27 AM