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Diesel Inspection Procedures

What is the diesel Smog Check inspection procedure? …

No, dynamometer testing will not be part of the diesel Smog Check inspection. …

www.bar.ca.gov/…/05_Legislative/RegulatoryActions/FAQs%20for%20Diesels%2012-24-09_Final.pdf

Vehicle Industry News VIN 2009–28
Smog Certification for Diesel-Powered Vehicles

New Legislation

Effective January 1, 2010, smog emission inspections are required for diesel-powered vehicles manufactured in or after 1998, and have a gross vehicle weight rating (GVWR) of 14,000 pounds or less for original registrations and transfers.

Biennial smog inspection requirements will be phased-in beginning with a registration renewal date of April 30, 2010.

Procedures
A smog check inspection is required:

http://www.dmv.ca.gov/vehindustry/vin_memos/vin2009/09vin28.pdf

The 4-year rule that currently exempts gas-powered vehicles, four or less model-years old, from transfer smog is not applicable to diesel-powered vehicles. A smog transfer fee will not be due for diesel-powered vehicles as they must obtain a smog certificate.
•
The 6-year rule that currently exempts gas-powered vehicles, six or less model-years old, from biennial smog is not applicable to diesel-powered vehicles. A smog abatement fee will not be due for diesel-powered vehicles as they must obtain a smog certificate.
•
Exemptions applicable to gas-powered vehicles located in non-biennial counties, family transfers, and obtaining a smog for a transfer within the past 12 months, will also apply to diesel-powered vehicles.
New vehicle dealers may certify on the New Vehicle Report of Sale (REG 397) that new diesel-powered vehicles with a GVWR of 14,000 pounds or less, meets emission requirements.

Vehicles that fail the smog check inspection may be eligible for the Consumer Assistance Program (CAP). Qualified consumers will be eligible for financial assistance for emission-related repairs or they can choose to retire their high-polluting vehicle.

All questions regarding diesel-powered vehicle smog requirements should be referred to the Bureau of Automotive Repair (BAR), at 1-800-952-5210, or visit www.smogcheck.ca.gov.
Background

Effective January 1, 2010, legislation expands the motor vehicle smog inspection program to include “diesel-powered” vehicles manufactured in 1998, and newer, with a GVWR of 14,000 pounds or less for original registrations, transfers, and renewals.

Distribution

Notification that this memo is available online, at www.dmv.ca.gov under Publications was made via e-mail alert in December 2009.

Contact
Call the DMV Customer Communications Section, at (916) 657-6560 for further clarification of this memo. Upon request, this document can be produced in Braille or large print.
JEAN SHIOMOTO, DMV Deputy Director Communication Programs Division

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Road to Success
You can still find a place in the auto industry–you just have to know where to look.
By Laura Tiffany | Entrepreneur Magazine –
Auto-Inspired Businesses

When customers walk into Dale Fox’s car rental business in Venice, California, they aren’t greeted by a choice of compact, sedan or SUV; they’re greeted by art–both on the walls and on four wheels. Spin Automotive Group, Fox’s company, offers rentals of classic, one-of-a-kind automobiles in museum-quality condition.

“[In Los Angeles,] there are lots of places where you can go out and rent a new Ferrari for a day. They’ve become ordinary,” says Fox, 41. “But if I pull up behind a [Lamborghini] in a 1961 Alfa Romeo, I guarantee you that I’ll come out after five minutes and there will be 12 people standing around the car. [Classics] are very inclusive, not exclusive. They strike up conversations, and I find that it’s a way of engaging the world in a really authentic, genuine fashion rather than trying to say, ‘I’m cooler than you.’”

Fox has found a unique niche in a marketplace full of multinational household names and is set to bring in $5 million in his first full year of business. “The [automotive] industry–especially dealerships–is populated with many second-, third- and even fourth-generation family businesses,” says Les McKeown, a serial entrepreneur, author and consultant who has advised many automotive aftermarket, dealership and rental businesses. “These are tough incumbents to unseat. They have longevity, customer loyalty and detailed insider’s knowledge of the industry on their side.”

As entrenched as the auto industry is, footholds do exist for new entrepreneurs who are niche-oriented, innovative and passionate about cars.

For Sale by Owner
Leslie Vander Baan had her entrepreneurial epiphany while navigating the difficult task of selling a car on her own. She recalls sitting on the curb outside “a bowling alley in Timbuktu” while waiting for a family to return with her car that they had taken for a mechanical inspection. “When it came time to facilitate the transaction, they were spooked about my title because I had just moved and it was out of state,” says Vander Baan, 30. “I was concerned that the money I was taking wasn’t going to be legit–that it wouldn’t deposit and clear. I just thought there has to be a better way to do this.”

“One-third of used car market [sales are] owner-to-owner, and they’re navigating this really frustrating, inconvenient process because of the savings involved,” says Vander Baan, adding that opting for dealer trade-ins usually results in $1,500 to $2,500 less for the car owner. “So we developed a solution for that hassle.” That solution is Automotive Consignment, a unique kind of used-car dealership that Vander Baan started with her husband, Mike, in 2003. The company’s nearly a dozen employees help people sell their cars on consignment by conducting test drives, handling paperwork, offering financing and providing a one-stop location for any other car-selling needs.

Licensed to Sell

We couldn’t pass up the opportunity to dig a little deeper and uncover their secrets to success.

If you want to sell cars, navigating the licensing maze can be a challenging process. “Licensing laws have typically been fairly strict on who can sell a motor vehicle because of the possibility of fraud,” explains Jim Moors, director of franchising and state law with the National Automobile Dealers Association. “You have significant issues with vehicle condition [and] odometer accuracy.” All states have different laws, but typically there’s a limit to the number of vehicles you can sell each year before you’re required to obtain a dealer’s license. There are often several types of licenses–auction dealers, new-car dealers, used-car dealers and salesperson licenses–but for any type of car dealer’s license, you typically need a physical location and signage for your business, a surety bond and insurance.

Most dealer licensing falls under the jurisdiction of your state’s motor vehicle department, and you can usually find more information on its website, including paperwork downloads, application fees and requirements.

The Road Less Costly

Dealerships are the Big Kahunas of the automotive industry. Because of the prime real estate involved, the inventory and the red tape, startup costs can be phenomenal, as entrepreneur Leslie Vander Baan can attest. But there are less pricy opportunities out there for car-loving entrepreneurs. “If you’re a bootstrapper, I’d look for a higher margin niche business–’primo’ detailing, high-end rental, luxury parts–where the margins and demand are somewhat less vulnerable to the current economic pressures,” advises consultant Les McKeown.

Franchising is another option you may want to consider. Entrepreneur’s Franchise Zone (entrepreneur.com/franchise) lists nearly 20 automotive franchises, including windshield repair and auto appearance reconditioning, that can be started for less than $20,000.
As with many car entrepreneurs, the auto business is in Vander Baan’s blood. She’s a third-generation dealership owner, and her father was her original silent investor, helping her secure $500,000 in startup capital and a $1.5 million property on auto row in Charlotte, North Carolina. Both of her parents now work with Vander Baan in her business, which she expects will bring in $4.9 million this year.

Trey Cobb also has cars in his blood. His father owned a tire shop in Rockwell, Texas, but it was imports (Subarus, specifically) that caught Cobb’s eye. Back in 1999, Cobb was unable to find the performance parts he wanted for his Subaru Impreza 2.5RS, so he claimed a corner of his father’s shop and began manufacturing parts on his own. His first products, an intake system and a camshaft, have now blossomed into 40 to 50 aftermarket products for Infinitis, Mazdas, Mitsubishis, Nissans and, of course, Subarus.

Cobb’s computer science background led him to specialize in tuning solutions for car computer systems, including his signature AccessPORT product. Cobb Tuning–now 35 employees strong and headquartered in Salt Lake City, which allows for weather-friendly product testing–brings in more than $6 million annually.

Cobb has carved out a specific market in the auto industry: His customers are tech-savvy enthusiasts with strong brand allegiances. His marketing strategy hasn’t changed much since he began in 1999. “We’ve always maintained a high level of grass-roots effort, going to various enthusiast meets and race events,” says Cobb, 33, who started up with just $10,000. “We also do quite a bit with discussion forums; we have our own blog. You really have to be involved on the grass-roots level so you can immediately respond to your customers’ changing demands.”

Vander Baan finds most of her business through referrals, repeat business, drive-by traffic, online ads and her website. Fox, on the other hand, decided to use a unique tactic for marketing his business: art. “We used [our] art gallery as leverage,” says Fox, whose business is located in the heart of Venice’s art gallery district. “Once a month, there would be an opening gala [for a local artist we would feature]. The people who [attended] are influencers. They’re high-wealth individuals and in the know about Los Angeles. So our strategy was: ‘Let them tell the story.’”

Fox rents out classic cars including a ’61 Alfa Romeo Giulietta and a ’58 Jaguar MkVIII to vacationers, locals celebrating special occasions, film and TV producers, and other clients. And he’s hired former employees of noted car collector Jay Leno and Galpin Auto Sports, the shop that pimps rides on MTV, to keep his rentals in tiptop shape.

The Red Tape
Finding a niche and a market to go along with it is just the first step. The most difficult startup hurdle may be the red tape inherent with auto-related businesses. “The hardest part was licensing and permitting,” says Fox, who has a dealer’s license and plans to start a classic car investment fund this year. “We changed a lot of things about the building. Doing that and getting the property permitted to legally be able to buy and sell cars was one of the biggest challenges. It took almost a year to get all that [approved].”

Finding a way to finance car sales was one of Vander Baan’s biggest challenges. “The financing aspect of the business is a very, very tricky one,” says Vander Baan, who eventually plans to take her consignment services online. “The banks in general don’t seem to like giving financing to independent car dealers. It’s a high-risk business for them.” She says it can take as long as five years to build deals with major lenders, but she was able to make it happen after just two-and-a-half years. Prior to that, she had to send buyers to their banks with bills of sale.

In the aftermarket parts industry, you may be able to forego the dealer’s license hassle, but the safety, emissions and other regulations are still a concern. “Often, as an enthusiast who decides to make a business out of it, you may not be exposed to all the laws and regulations,” says Cobb. “That’s where joining one of the organizations such as SEMA [Specialty Equipment Market Association] is important, so you can start to get that information.”

The Right Stuff
Being passionate is a huge plus in the aftermarket parts industry. “We see a lot of companies come in with a lot of capital–really good business-minded people–but they’re not enthusiasts or enthusiastic about the product they’re selling,” says Cobb. “And especially in these smaller niche markets, the customers can easily tell. They’ll immediately pick up on if that person is there just to try to turn a profit or if they’re there as a fellow enthusiast.”

But as with all businesses in which passion is a driving factor, jumping in too quickly is a common error. “Sometimes the attraction [to cars] borders on obsession, and that can make an individual blind to the often real problems and challenges with getting traction in the marketplace,” says McKeown.

McKeown says another common mistake he sees is startups over-investing too early: “Inexperienced entrepreneurs, especially first-timers, often think starting a business is like a pro baseball game. If they come out swinging for the fences, they [think they] can get a big early win.”

McKeown suggests being frugal when starting up, as Fox was in starting his high-end rental company in a prime real estate location for less than $100,000. “Save your money,” says McKeown. “You’re going to need all you have–and more–to last for a very long time. Start small, prove the market, get some early success and reinvest.”

Vander Baan echoes this sentiment based on her experience: “There’s a big reason you hear people say it will cost two times as much and take twice as long [as you expect].” She ticks off her startup expenses: “You need significant amounts of insurance, there are dealer licensing provisions, and you’ve got to get your bonds secured, refit the building and invest in inventory.” She also advises budgeting adequately for payroll, because “there is no one else doing it but you,” she says. “It’s like bringing home a baby. It never lets you sleep. You need a good support network in place to help you through when you just have to go to sleep.” Vander Baan credits her parents with the survival of her business; right when she was burning out, they stepped in to help.

Above all, McKeown stresses that business know-how is the key to success in the auto market. “Recognize that no matter how deep your passion for cars, that passion is no substitute for business acumen. Too many genuinely enthusiastic hobbyists launch what they hope will be a successful, thriving business only to find out too late that they haven’t got the skills to launch and grow a viable business,” says McKeown.

Vander Baan grew up working in the industry and had guidance from her father; Fox is a serial entrepreneur, having had many business successes. For those without that kind of experience, McKeown suggests turning to other entrepreneurs for advice. “Almost every successful entrepreneur I’ve met has a laser-like radar when it comes to judging whether or not someone else has ‘got it,’” he says. “Go see three or four entrepreneurs, share your vision and goals, answer their questions and ask for their candid advice. At this stage, the advice you get from them will be worth more than any business school program.”

Laura Tiffany is a web editor and freelance writer from Orange County, California.

A
ANTIQUE – a general description of an object having special value because of it’s age (usually more than 100years old) in automotive terms it tends to refer to a vehicle that was built prior to 1915.
ALL WEATHER – a term used in the twenties and thirties to denote a four door convertible sedan.

B
BAQUET- the literal translation is ‘bath tub’. It refers to cars at the beginning of the century in Europe with two rows of raised seats (single seats or divans) similar to those used in turn of the century horse drawn carriages. Baquets were generally without front doors, a top or a windshield. In the United States the term ‘touring’ was often used. Also see Phaeton
BARCHETTA – an open top car dedicated to racing without doors or a top and with uniform and streamlined bodywork. It could have one or two separate seats.
BAROUCHE- a carriage term very rarely used for automobiles. The driver sat in an open front seat with two couples facing each other inside a closed cabin. There was a folding top over the rear seat.
BATEAU – The shape of the rear end of open-topped racers at the beginning of the century, which looked like the hull of a boat. Also see Boattail.
BERLINE – a sedan
BOATTAIL – the tapered form of the rear-end. The term literally describes the shape of the vehicle tail, which resembled the bow of a boat. Popular in racing. Also see Bateau
BONNET – English term for panel that covers the engine. Americans call it a hood.
BOOT – English term for panel that covers the rear luggage compartment. Americans call it a trunk.
BROUGHAM – in early motoring this broad term signified a closed car for two or four persons. In later forms it was often found to describe a car with an open front driver’s compartment. When coupled with sharp lines and flat surfaces it may be called a ‘Panel Brougham’.
BULLNOSE – a term in use in England during the 1920′s to indicate a type of radiator, which supposedly resembled the nose of a bull! E.g.: Bull-nose Morris.
BUSINESS COUPE – a simple two-door coupe without a rumble seat, such as used by doctors, bankers and salesman etc. Everyday transport for the middleclass.

C
CABRIOLET – generally this means a convertible car with windows. However, this term has changed meaning significantly over the years and can even mean different things in different countries. During the 1920′s and 30′s in Europe it meant an open car with a top, two doors and four seats, which was most often derived from a sedan. The equivalent in Great Britain was called a drop-head coupe while the English used the term Cabriolet to mean a four door open top car. Concurrently in the United States, the term used was Convertible coupe. Today Cabriolet describes open top cars derived from a sedan or coupe. It could also be understood to mean an open top car with two rows of seats with just two doors. Although in reality it can have any number of doors and windows.
CHUMMY – In England from 1920 and up, a chummy was an open top car. The vehicle was usually a 2+2 i.e.: two full-sized seats up front with two small ‘occasional’ seats in the rear.
CLASSIC – according to the Classic Car Club of America this term refers only to specific or important marques built between 1925 and 1942 (with certain post-war exceptions). It is however applied today by owners of almost any collectible car more that is more than 25 years old.
CLUB COUPE – a two-door closed car with a rear seat.
COACH-LINE – a painted accent line on the body of a car. Modern equivalent is the pinstripe.
CONCOURS (d’Elegance) – a gathering or show of the elegant.
CONVERTIBLE – In short, a car with a folding top and windows! In the US from 1927 on, the term was used to mean a car with a soft, retractable top was hooked permanently to the bodywork, and therefore not removable like a roadster’s was. Other requisites were side windows that opened and the absence of any framework above the waist of the car apart from the windshield. The most common example of the was therefore called a convertible coupe these had two doors, whilst cars with four doors were called convertible sedans. In both cases four or five people could be seated.
CONVERTIBLE ROADSTER – a convertible is an open car with windows; a roadster is an open car without windows, hence a term which contradicts itself. Used by Lincoln, Chrysler and others about 1930 to emphasize sportiness.
CONVERTIBLE VICTORIA – a four passenger two door two-window cabriolet.
COUPE – a closed car with two doors for two or three people and a roofline that generally curves at the back. May also have a rudimentary rear seat in which case it is usually called a Club Coupe.
COUPE CHAUFFEUR – chauffeur driven car with passengers fully enclosed and the chauffeur exposed. Body has a blind rear quarter.
COUPE DeVILLE – or “town coupe”, applied imaginatively to various body styles Usually a four passenger two-door car with a permanently closed roof over the rear seats and a removable top covering the front seats. See Sedanca
COUPELET – a term used especially by Ford to describe a Model T two seater Cabriolet.
COUPE LIMOUSINE – chauffeur driven car with the passengers fully enclosed and the chauffeur exposed. Body has rear quarter windows.
CYCLE FENDERS – usually a front and sometimes a rear fender similar to that used on a motorcycle which follows the curvature of the wheel.

D
DeVILLE EXTENSION – a sliding roof over the front seat with side arms that folded back into the remaining roof thus producing a Sedanca configuration in metal rather than the usual fabric.
DICKEY – or Rumble seat. An extra external seat that could be accessed by lifting a forward-opening ‘trunk-like’ lid in the rear of the car.
DROPHEAD COUPE – British term for the equivalent of the American convertible, or the European Cabriolet.
DUAL COWL – a design of touring car, which saw the cab, divided into two compartments, front and back. Separated with a rear windshield mounted on a folding cowl, which covers part of the rear compartment.

E
ESTATE CAR – a station wagon, or four-door, four passenger car with an extended roof line plus a gate or hatch in the rear for increased cargo capacity.

F
FAUX CABRIOLET – a fixed head coupe made to resemble a cabriolet.
FENCERS MASK – The term used to describe a type of radiator grille design from the 1930′s which resembled a fencers mask for it’s shape and fine weave of the grille.
FIXED HEAD COUPE – a closed coupe.
FORDOR – Ford’s name for a four door sedan.

G
GOUTTE d’EAU – a body with a ‘tear drop’ design, flowing down to the rear.
GOVERNOR – a device used with the carburetor to restrict maximum engine speed.
GRAN TURISMO (GT) – grand touring
GP – Grand Prix or Great Prize.
GT – Grand Touring

H
HARD TOP – a removable top to replace the soft-top. It typically made from fiberglass, although sometime steel and usually painted the same color as the body of the car.
HOOD – American terminology for the sheet metal panel covering the engine.
HOOD – British terminology a convertibles soft-top.
HORSELESS CARRIAGE – a term defined by the Horseless Carriage Club of America applying to cars built before 1915 (See also Antique)

I J K

L
LANDAU- a partially opened limousine. The open part was usually in the front where the driver sat.
LANDAULET – a Landau limousine in which the section over the rear seats also opens or folds down.
LIGHT – a small window as in sidelight, quarterlight, skylight etc.
LIMOUSINE – a chauffeured sedan often with a longer wheelbase and usually with a division between the driver and the passengers. The rear compartment had luxurious features with controls for heating, radio and opening and closing the glass or wood division.

M
MARQUE – a make or brand of car.
MM – Mille Miglia, a 1000 mile Italian road race from 1927 to 1957.
MOTHER-IN-LAW SEAT – a single sideways-facing rear seat. Usually found in coupes or cabriolets.

N

O
OPERA COUPE – a two door closed car with a small folding seat beside the driver. This allowed easy passage to a rear seat for two, usually offset to the right in left-hand drive cars.

P
PANEL BROUGHAM – see BROUGHAM
PHAETON – it means opened top car with four seats. French term taken from the Greek “Phaeton” who drove the chariot of his sun-god father, Helios. A small four door open touring car.

Q
QUARTER WINDOW or QUARTER LIGHT- the small triangular side window to the rear most of the rear door glass, and foremost of the front door main glass.

R
RAGTOP – See soft-top
RIB – a bow made of metal or wood that makes up part of the rigid or semi-rigid frame of a convertible top.
ROADSTER – The term roadster has had several meanings depending on the origin and period. One thing everyone agrees on is that they did not have a top. Most recently the term has meant sportscar, generally it’s accepted to mean, small and powerful two-seater sportscar.
ROLL BAR – A metal bar fashioned in such a way to protect the driver in the event the car rolls over.
RUNABOUT – A small light two seater. Runabout was mainly an American term to indicate small open car, very basic and cheap. Predecessor to the Roadster.

S
SEDANCA – A type of early body design in which the top extended for a quarter of a circle and covered only the passengers in the rear seats.
SHOOTING BRAKE – This is a European term used typically to describe a car that is a cross between a two-door sports coupe and an estate car. Made popular by the well heeled as they wanted a vehicle to move larger than normal amounts of cargo (even dogs when grouse shooting) without having to resort to a dowdy estate car or station wagon!
SPORTIF – a very tight or narrow type of Phaeton.
SPORT COUPE – a closed coupe with a cloth top and sometimes landau irons resembling a convertible.
SPYDER – a light two-seater roadster (also called a Spider). The European term for the English Roadster.
SS – Super Sport
STATION WAGON – a utility car built of wood, typically with four doors.
SUBURBAN – a seven passenger limousine
SUICIDE DOOR- a rear hinged door, typically for the front seat. At speed any chance opening would cause the door to whip backward with great force.
SUPERLEGGERA – super light

T
TARGA – a coupe with a removable roof panel (or panels) from above the heads of the front seat occupants.
THREE POSITION COUPE – A Coupe de Ville which may be presented as a fully closed coupe, a deVille Coupe with the front section open or a fully collapsible convertible.
TONNEAU – the rear compartment of a car body, usually an open touring body. i.e. Phaeton
TONNEAU COVER – soft cover used on parked roadsters to protect the cab from rain when the top is down.
TORPEDO – a long wheelbase very smooth touring car with flat panel’s low doors and sides that offered no protection from the weather. They succeeded Tourers and Phaetons.
TOURING CAR – a four door open car, four seats and without windows. US equivalent of the European Baquet.
TOWN CABRIOLET – A town car in which the covered rear section converts to an open car.
TOWN CAR – a chauffeur driven car with the passengers fully enclosed and the chauffeur exposed. Also known as a Sedanca de Ville or Town Brougham
TUDOR SEDAN – Ford’s term for a two door.
TWIN SIX – Packard’s first twelve-cylinder car introduced in late 1915 and produced until 1920. When Packard reintroduced the new V12 in 1932, the term was reused for that first year only.

U
UNDERSLUNG – an automobile whose frame passed underneath the axles. Used primarily by the American Motor Company of Indianapolis from 1907 to 1914

V
VICTORIA – a close coupled two-door sedan or an enlarged coupe with a rear seat. Also a four door open car with folding top over the rear seat only.
VINTAGE – formerly a term describing cars built between 1915 and 1925 but now used broadly, especially in England, to include cars manufactured between 1920 and 1942.
VIS A VIS – a term used generally to describe a seating arrangement where the passengers sit facing each other.

W
WEYMANN – a patented body in which wooden frame members were joined by metal strips preventing the wood from touching and squeaking.
WINDOW STRAP – a strap attached to the base of a window, which passed inside the body up to the sill, and into the interior of the car. It could be used to pull the window up. Holes in the strap could be buckled against an interior pin to hold the window at various elevations.
WINDSCREEN – English term for windshield
WING – English term for fender
WINTER FRONT – a patented name for a shuttered radiator cover by the Pines Co., which could be opened and closed to regulate engine temperature.
WOODY – a motor vehicle incorporating natural finished wood for structure and all exposed parts of the body. The term has been loosely applied to any car, which uses wood coverings, even over metal.

XYZ

20/20: Beware the Car Dealer’s Secret
20/20’s Arnold Diaz Has Important Info for Car Buyers

On today’s 20/20, Arnold Diaz warns car buyers about the hidden charges car dealers may tack on during the purchase of a car.

According to consumer attorney Gary Klein, “It’s a dirty little secret that the auto lending industry has not owned up to.”

It works like this. Car dealers do not do the actual money lending, but send your application to a number of lenders, who then tell them what interest rate you qualify for. They call that number the “buy rate.” But legally, car dealers are not required to tell you that rate or how much they are marking up the loan. Dealers get a small fee for arranging loans at the buy rate, but can make a lot more money if they can get you to pay a higher rate. And lenders encourage that because they usually split the extra income.

David Robertson, head of the Association of Finance and Insurance Professionals — a trade group representing finance managers — defends the practice, saying it’s akin to a retail markup on loans. “The dealership provides a valuable service on behalf of the customer in negotiating these loans,” he says. “Because of that, the dealership should be compensated for that work.”

And there’s troubling evidence that black customers may be twice as likely as whites to have their rate marked up — and by more. That evidence — included in thousands of pages of confidential documents that 20/20 and The New York Times went into a Tennessee court to obtain — shows that Nissan and GM dealers in that state routinely marked up rates for blacks, forcing them to pay between $300 and $400 more than whites.

“The bottom line is that everyone who pays markup is affected by markup and is the victim of a secret policy, but blacks are victimized worse,” says Klein, a lawyer with the National Consumer Law Center (www.nclc.org) who is working on a discrimination lawsuit against GM Acceptance Corporation and Nissan Motors Acceptance Corporation.

The legal team in the discrimination suit filed against the two companies had an expert analyze thousands of confidential customer files from Tennessee Nissan and GM dealers and say they reveal a pattern of discrimination. In Nissan’s case, white customers loans were marked up an average of $507 — but black customers faced a $969 markup. At the GM dealers, blacks paid $315 more in markup than whites. In statements, both companies say this analysis is “seriously flawed” and point out that their loan application does not ask the buyer’s race. Both the companies and the dealers insist they do no tolerate any racial discrimination.

Prep Before You Shop So how do you ensure you’re not paying more than you should? Before you approach a dealer, get online and compare rates. You can find some Web links on the right. BanxQuote (www.banx.com) and Bankrate.com (www.bankrate.com) provide various lenders’ rates for new and used car loans. You can apply online for a loan through LendingTree.com (www.lendingtree.com). Plug in your salary and preferred payment structure, and LendingTree will return three to four different rates, giving you more information to bargain with dealers, or sidestep them completely.

And for a $3.95/monthly fee, Consumer Reports Online (www.ConsumerReports.org) can be a valuable tool for car buyers. The site contains information on more than 200 car models, including test results, ratings and survey results about vehicle reliability and driver satisfaction. Edmunds.com (www.edmunds.com) is another choice for car facts and pricing on new and used models. Finally, the Kelley Blue Book (www.kbb.com) will tell you how much your current car is worth, a valuable tool when considering a trade-in.

Fraud

car dealer indicted for scheme involving millions of dollars
By Craig Davison

1-866-362-2167 Ext. 13865

cdavison@heraldargus.com

LA PORTE — A local used car dealer was indicted in U.S. District Court in Ohio for his alleged role in a wire fraud scheme that involved almost 700 cars and millions of dollars.

James L. Howard, of Howard Autos, Inc. in La Porte, and Thomas C. Wilson face 10 counts for a scam to defraud the car dealership Wilson worked for in Paulding, Ohio.

Wilson sold used cars owned by his employer, Stykemain Chevrolet, to Howard, and took some or all of the money, according to the indictment.

The document said Wilson would direct Howard to pay for the vehicles, but to make the checks payable to the dealership or to Wilson. It said Howard knew Wilson would “keep all or a portion of the proceeds, all of which should have gone to Stykemain Chevrolet.”

Wilson caused the delivery and transfer of about 680 vehicles owned by Stykemain, with a value of approximately $8.6 million, to Howard Autos, Inc.

The indictment said that Howard wrote checks of about $5 million to Stykemain Chevrolet and about $1.8 million to Wilson.

It alleges Howard deposited more than $1 million in checks payable to Wilson into Wilson’s personal bank account. Wilson then would keep all or a portion of the funds for himself.

The pair communicated over interstate phone wires to arrange the fraudulent sales, leading to the wire fraud charges. The indictment lists 10 dates between 2005 and 2007 where the wire communications occurred for each count.

Paulding is located in northwestern Ohio and has a population of about 3,500, according to the last census. It is located about 30 miles east of Fort Wayne.

KEITH CRAIN
Next year has got to be better
Keith Crain
Automotive News

This year was lousy at best. During this economic disaster, we have seen car and truck sales plummet. And although sales seem to have bottomed out recently, they are certainly nothing to write home about.

But I have great optimism that next year will be markedly better. Sure, it’s tough for anyone who wants to buy a car or truck to postpone it for months, even a year. Americans never have been able to moderate their automotive desires; and a depression, while putting a damper on the economy, doesn’t stop car sales. We’re still selling more than 10 million cars and trucks in 2009.

But what will really pull buyers back into showrooms are all the products being launched. From a new Mercedes convertible to the hot Ford Taurus SHO, to some new iron from Asia, a renaissance of vehicles is under way.

In spite of the U.S. economy, the North American International Auto Show in Detroit as always will be a showplace for new cars and trucks from all over the world.

There is nothing like a good economy to inspire people to buy a new car. But the introduction of new models will bring out the buyers in America who have an almost irresistible desire to buy a car — especially when it is truly a new car.

Every automaker seems to have product it has just introduced or is about to introduce. That includes everything from high-powered pony cars — which Detroit seems to have a lock on with the new Camaro fighting the Mustang and Challenger for a spot on the performance charts — to tamer vehicles.

For those who are into politically correct vehicles, there will be an influx of all sorts of electric vehicles. We might even see a few more diesels. Those folks are praying for $4-a-gallon gasoline, which doesn’t seem too likely in a depression.

Once again, the consumer is proving that the product is king.

Let’s hope for an economic recovery — but a whole bunch of new products will pull us out of the recession just as quickly.

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