Issue link: https://read.dmtmag.com/i/422004
FINANCIAL I am getting more and more requests from dealers to come to their dealer- ship and perform a legal compliance audit. So, why would you have a person come in and perform a compliance audit rather than supply training that could generate imme- diate return on your investment? By making sure that their dealerships are following cur- rent legal regulations, they decrease their legal exposure. This increases the likelihood that these dealerships get to keep what they make. Recently I performed a compliance check for a dealer. During our debriefing, we dis- cussed the need for internal ongoing checks and what the dealer should be looking for in every deal. Here is a list of some of the simple checks that should be done on a regular basis by an onsite compliance person. Bear in mind that this is not a complete list of the items that are examined during a compliance check. These are the items that the dealer can use to see that the legal basics are being done. 1. GETTING STARTED Find a neutral party from outside your dealer- ship to help you with the initial audit. This person's job will be to look for potential prob- lems. Don't be upset if they find issues — be grateful! The problem your compliance pro- fessional finds will be a problem a customer or lawyer does not find. They should spend time with your selected onsite compliance person to find out what's currently being done and what's not. He or she should also review your files for missing paperwork, inconsistencies and other red flags. He or she should then supply you with a list (see number 3) your onsite compliance person will need to look for with each deal. 2. PICK THE RIGHT PERSON You need either to commit to being your own onsite compliance person or find the right person to do this for you. Make sure that if you delegate these responsibilities, the person doing them is loyal to the company above anything else. There cannot be any reason that this person would let the sales or finance department slide. It is too important. You can usually find this person in your accounting office. Regardless of who performs the checks, you want a double check that gets you as close to 100 percent compliance as possible. Your compliance person should look on a regular basis for the items in the list below. 3. THE LIST Sold Files Primary ID Any state or federal-issued picture ID (driv- ers license, passport, military ID, etc.) Secondary ID Anything with the customer's name and a valid expiration date (credit or debit card, hunting or fishing license, vehicle registration) Signed copy of the dealership's privacy policy This is a form that tells the customer what you will be doing with their personal informa- tion. Signed copy of your Credit Score Disclosure Form This is a form that tells the customer their credit score along with some other informa- tion about their credit. This form is supplied to the dealerships by most lenders. Proof that the OFAC's Specially Designated Nationals list was checked This is a list of individuals, companies, organizations, etc. with whom we as Ameri- cans cannot legally do business. 10 • December 1, 2014 • Powersports Business www.PowersportsBusiness.com 5 ways to make sure you keep what you earn STOCK MARKET WATCH Stock Price Percent Company Ticker 11/7/14 Change ArvinMeritor ARM $12.25 23.4% Brunswick Corp. BC $47.52 19.2% MarineMax, Inc. HZO $18.87 19.1% Harley-Davidson, Inc. HOG $66.04 17.0% Speedway Motorsports, Inc. TRK $19.77 16.9% Cooper Tire & Rubber CTB $32.49 16.7% ADP ADP $84.38 16.1% Carlisle Companies CSL $88.75 15.3% Honda Motor Corp. ADR HMC $31.62 -0.3% Spy Inc. XSPY $0.80 -11.1% POWERSPORTS BUSINESS WINNERS AND LOSERS DEALER FINANCIAL SNAPSHOT OCTOBER 2014 Same Store Sales for 1,449 CDK Global Recreation dealers were up double-digits in service, major units and overall, however parts was down 0.2 percent. Service saw the largest year-over-year increase, up 12.6 percent in October. The West led the service department spike, with a 14.0 percent jump, how- ever four of the five U.S. regions reported double-digit improvement. The West reported the highest overall improvement, up 13.2 percent over October 2013. PARTS SALES 774 dealers were up in parts, while 675 were down. SERVICE SALES In service, 924 dealers were up, and 484 were down. MAJOR UNIT SALES 750 dealers were up in major units, and 507 were down. NORTHWEST -3.7% Parts Department 8.0% Service Department 6.4% Major Units 5.9% Overall MIDWEST 2.3% Parts Department 13.7% Service Department 6.2% Major Units 6.6% Overall NORTHEAST -0.5% Parts Department 11.9% Service Department 7.8% Major Units 6.9% Overall SOUTH -1.4% Parts Department 12.5% Service Department 13.2% Major Units 11.7% Overall WEST 0.5% Parts Department 14.0% Service Department 16.2% Major Units 13.2% Overall UNITED STATES -0.2% Parts Department 12.6% Service Department 11.3% Major Units 10.0% Overall See Dodds, Page 12 MARKET WATCH Change 11/7/14 from 10/10 % Change Powersports Business Index 351.689 31.45 9.82% Dow Jones Index 152.855 8.96 6.22% S&P 500 Index 138.296 8.56 6.60% Source: Wells Fargo Securities LLC 50 100 150 200 250 300 350 400 3/14/14 4/11/14 5/2/14 5/23/14 6/20/14 7/18/14 8/15/14 9/12/14 10/10/14 11/7/14 PSB Index DOW Jones Index S&P 500 Index STOCK MARKET ACTIVITY * The Powersports Business Index has been adjusted to reflect the removal of Orbital Engine Corp. Ltd. ADR (OE) on 8/15/14. F&I SOLUTIONS FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: cdkrecreation.com/dataservices I am getting more and more STEVE DODDS