Issue link: https://read.dmtmag.com/i/410960
FINANCIAL 18 • October 6, 2014 • Powersports Business www.PowersportsBusiness.com STOCK MARKET WATCH Stock Price Percent Company Ticker 9/12/14 Change TCF Financial Corporation TCB $16.52 8.1% MarineMax, Inc. HZO $18.95 7.2% Brunswick Corp. BC $44.45 6.6% Harley-Davidson, Inc. HOG $64.42 4.1% Speedway Motorsports, inc. TRK $17.88 3.7% Bridgestone Corp. ADR BRDCY $17.18 -1.2% Dover Corporation DOV $85.78 -1.8% ARI Network Services, Inc. ARIS $3.01 -2.6% ArvinMeritor ARM $13.21 -2.7% Deere & Company DE $81.95 -3.4% POWERSPORTS BUSINESS WINNERS AND LOSERS MARKET WATCH Change 9/12/14 from 8/15 % Change Powersports Business Index 342.430 3.29 0.97% Dow Jones Index 147.754 2.82 1.95% S&P 500 Index 135.140 2.08 1.56% Source: Wells Fargo Securities LLC 50 100 150 200 250 300 350 1/27/14 2/25/14 3/14/14 4/11/14 5/2/14 5/23/14 6/20/14 7/18/14 8/15/14 9/12/14 PSB Index DOW Jones Index S&P 500 Index STOCK MARKET ACTIVITY *The Powersports Business Index has been adjusted to reflect the addition of TCF Financial Corporation (TCB) on 2/25/14 and the removal of Orbital Engine Corp. Ltd. ADR (OE) on 8/15/14. EDITOR'S NOTE: This is the final column in a series of 10. While the powersports industry has not seen the scrutiny from federal and state governments that the automotive industry has, compli- ance and disclosures have most likely been on the minds of most finance offices and especially, deal- ership owners. While I am by far not the foremost expert on compliance, I do have enough experience as an F&I trainer to share some of the most important related guidelines. Multiple sources and businesses can be utilized to establish pro- cesses that line up with the sales and finance process at your dealership. OFAC EXPLAINED "The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury admin- isters and enforces economic and trade sanc- tions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruc- tion, and other threats to the national security, foreign policy or economy of the United States. OFAC acts under Presidential national emer- gency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze assets under US juris- diction. Many of the sanctions are based on United Nations and other international man- dates, are multilateral in scope, and involve close cooperation with allied governments." It is every business's responsibility to help OFAC, including powersports dealers. What is your policy? Are you screening individuals before you accept their payments in any form? THE RED FLAGS RULE The Red Flags Rule requires businesses and organizations to implement a written Identity Theft Prevention Program designed to detect the warning signs — or Red Flags — of iden- tity theft in their day-to-day operations. The Federal Trade Commission (FTC) enforces the Red Flags Rule with several other agencies. DEALER FINANCIAL SNAPSHOT AUGUST 2014 August was a down month for many of the 1,440 CDK Global Recreation dealers studied. Overall sales were down 0.4 percent nationwide, as the Northeast (down 6.2 percent) and Midwest (down 2.8 percent) both reported decreases. Parts was down in all five regions and down 6.9 percent nationally. Major units and service were up only slightly, with 0.6 percent and 0.8 percent increases, respectively. The West region saw the best month, up 3.6 percent overall. PARTS SALES Parts was up for 550 dealers and down for 890 dealers. SERVICE SALES In service, 698 dealers were up, and 676 were down. MAJOR UNIT SALES Nationally, 630 dealers were up and 627 were down in units. NORTHWEST -7.7% Parts Department 0.6% Service Department 6.1% Major Units 2.5% Overall MIDWEST -11.7% Parts Department -0.6% Service Department -0.4% Major Units -2.8% Overall NORTHEAST -6.3% Parts Department -1.7% Service Department -7.0% Major Units -6.2% Overall SOUTH -2.6% Parts Department 2.0% Service Department 1.0% Major Units 0.7% Overall WEST -5.9% Parts Department 2.9% Service Department 4.4% Major Units 3.6% Overall UNITED STATES -6.9% Parts Department 0.8% Service Department 0.6% Major Units -0.4% Overall FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: www.cdkrecreation.com/ dataservices. Examining compliance and disclosures F&I SOLUTIONS BRIAN GALLMEIER Securing the data you collect and main- tain about customers is important in reduc- ing identity theft. An estimated 9 million Americans have their identities stolen each year. The Red Flags Rule seeks to prevent identity theft by ensuring that your business is on the lookout for signs that someone is using others' identity. Examples of signs include addresses, birth dates, phone numbers and ages of individuals that just don't seem to line up. Pulling someone's credit may automati- cally generate a "Red Flag." However, pulling credit has many additional implications for your business. PRIVACY Much like HIPPA (Health Insurance Portabil- ity and Accountability Act of 1996) from the Office of Civil Rights, customer privacy is required in many forms throughout your deal- ership as well. Fines that reach $11,000 per occurrence in some states for privacy breaches should be incentive enough to protect your cus- tomers' information. Here are some checkpoints that might help you determine if you are providing enough privacy for your customers: See Gallmeier, Page 20