Issue link: https://read.dmtmag.com/i/422004
12 • December 1, 2014 • Powersports Business FINANCE www.PowersportsBusiness.com Signed copy of the finance menu that was used or a decline waiver This is the dealership's proof that you have offered every customer every product. Copy of the 8300 form if needed This form must be filled out and sent to the IRS whenever a customer gives your dealer- ship more than $10,000 in cash, along with other possible triggers. Dead or unsold files Copy of the Adverse Action Notice that was sent to the customer This notice needs to be given to every customer who submits a credit application to your dealer- ship and does not end up financing with you. Primary ID Any state or federal-issued picture ID Secondary ID Anything with the customer's name and a valid expiration date Signed copy of the dealership's privacy policy This is a form that tells the customer what you'll be doing with their information. 4. INSPECT WHAT YOU EXPECT If you do not personally follow up with your staff on the things you want done, they will stop doing them. All it takes is a quick talk with your compli- ance person every week or so. You can also ask him or her to keep a log of the missing items and provide it to you weekly. If you get reports that there are items missing on a regular basis, check with your finance office to see if there is some- thing its staff needs in order to remember these extremely important items more consistently. 5. REVIEW THE REQUIREMENTS At least once a year, you will want to update your compliance information. This can be done through several companies or organiza- tions. AFIP, your state dealer association or any consulting company that offers this ser- vice should be able to help. It's hard enough to make a profit. Don't give it away. You deserve to keep what you make. PSB Steve Dodds II is a moderator, trainer and con- sultant for Gart Sutton and Associates with a focus on sales and finance departments. Contact him at info@gartsutton.com. DODDS CONTINUED FROM PAGE 10 The Consumer Financial Protection Bureau (CFPB) has published a Proposed Rule that would enable it to supervise larger nonbank auto finance companies for the first time at the federal level. Currently, the CFPB supervises large banks making auto loans, but not nonbank auto finance companies. The Proposed Rule defines "automobile" as "any self-pro- pelled vehicle primarily used for personal, family, or household purposes for on-road transportation. The term does not include motor homes, recreational vehicles (RVs), golf carts, and motor scooters." While the proposed automobile definition includes motorcycles, the CFPB also seeks comment on whether motorcycles should be a sepa- rately defined term. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), the CFPB has authority to supervise certain nonbanks that the CFPB defines through rulemaking as "larger participants" in a market. The CFPB would be supervising such larger participants to ensure they are complying with federal consumer financial law. The Proposed Rule would generally allow the CFPB to supervise nonbank auto finance companies that make, acquire, or refinance 10,000 or more loans or leases in a year, excluding certain auto and motorcycle dealers (statutorily excluded from CFPB supervision pursuant to Dodd-Frank). The aspect of the Proposed Rule defining larger participants of a market for automobile financing pertains only to that purpose and would not impose new substantive con- sumer protection requirements. The CFPB also notes that certain types of motor vehicles, such as motor scooters, motor homes, recreational vehicles (RVs), and golf carts are in markets that differ from those of the vehicles included in the proposed definition of "automobile." Although the CFPB does not have suffi- cient data on these other market segments, it does not believe that financing for the types of motor vehicles that are excluded from its proposed definition of "automo- bile" is done on the same scale. Thus, the CFPB believes that the vehicles excluded from the definition likely warrant different larger-participant criteria and thresholds if they were included in the market defined for this Proposed Rule. YAMAHA MOTORCYCLE SALES UP 4.1 PERCENT THROUGH Q3 Net sales of Yamaha Motor Co., Ltd. motorcycles grew 4.1 percent to ¥723.9 bil- lion through the first nine months of 2014. During that same period, unit sales in developed countries grew 14 percent, and the company's market share increased. Operating income from the motorcycles seg- ment was up 188.4 percent to ¥17.7 billion. Net sales of marine products increased 12.9 percent to ¥209.2 billion, while oper- ating income grew 53.5 percent to ¥37.7 billion. "Net sales of sports boats and personal watercraft sales increased as a result of new model launches, for overall sales and income growth," the company said. Overall, net sales of Yamaha Motor products in North America were up 16.1 percent to ¥226.3 billion in the first nine months of 2014. PSB DIGEST CFPB seeks to supervise nonbank financing companies