New 30-Day Title Bill Goes into Effect on August 10, 2016



Be it enacted by the General Assembly of the State of Colorado:

SECTION 1. In Colorado Revised Statutes, 12-6-118, add (8) as


12-6·118. Licenses - grounds for denial, suspension, or























42-3-203. Standardized plates - notice of funding through gifts,

grants, and donations - rules - repeal. (3) (e) A DEALER MAY ISSUE A











Presidents Letter

November 2015

Dear Members,

Charity Gala time – Dean Gunter has some great committees working on this years “Charity Gala” and with attendance expected to surpass 500 this year buy your ticket now to insure your spot at this wonderful event. It will be Saturday, December 5th at the Radisson Hotel, Parker Road and I-225.

Work is ramping up on three pieces of legislation for next year. The concept for the first one extends the current 30 days to provide title and also provides a way to perfect the lien in order to protect dealer’s interest when a buyer files bankruptcy. Second is putting more teeth into the enforcement of unlicensed sales / curbstoning and the third is adding a title brand for any vehicle an insurance company pays out a total loss claim.

CIADA has collaborated with Connie Hatch in order to provide better service to our western slope members and now offer various statewide on-line training programs. Visit for all of the details.

Please take advantage of Connie Hatch and Eric Hartsough, retired Dealer Board Investigators, who will come to your dealership and perform a complete confidential review of your deal jackets. Better to correct any compliance / paper work issues now before a state investigator shows up.

Competition for the Quality Dealer is getting stronger each year, looking forward to naming this year’s winner at the CIADA charity Gala next month. Historically Colorado’s winner has proven to be a very formidable candidate at NIADA’s annual convention in Las Vegas.
Congratulations - CIADA’s membership continues to lead the nation with the highest percentage of eligible dealers belonging to the Association.

Thanks to all for your involvement in keeping Colorado’s auto industry strong.

Stan Martin

Chairman of the Board Letter

November 2015


I ask this question after CIADA participated in the NIADA latest leadership conference and legislative summit held in Washington DC for the third year. We already know we are a highly regulated industry with new rules and regulations being implemented frequently and after spending three days in meetings and talking with Senators and Congressmen I can sadly say it is not changing any time soon! Fortunately, we have made an impact by making our presence known as we voice our concerns over issues that could be devastating to us and our ability to earn a living as we create jobs in our communities.

Let me touch on a couple of issues that are currently on the table: 1) Grounding ALL vehicles with an open recall until fixed. The biggest problem here is the attempt to classify all recalls the same whether it's a safety issue or a misprint in the owner's manual. There are over 200 million cars that have recalls and 30% have no fix. We understand the effect grounding vehicles until fixed would have on our consumers as the value for their trades would plummet as prices skyrocketed for our inventory as we competed for vehicles without recalls. Currently this bill has been stopped in committee although there is an effort to bring it up again. 2) Consumer Financial Protection Bureau, also known as the CFPB, and it's Indirect Auto Financing Guidance Act. This was enacted without any industry input or studying the impact of the cost of credit to consumers. Congress has sent eleven letters to the CFPB requesting how they arrived at their reasoning for the implementation of this act. As of this date they have received no response so a bill has been sponsored by Congressman Ed Perlmutter (D) of Colorado to nullify this act.
3) Department of Labor and their interpretation of Independent Contractors. While they never gave a clear definition on how they determine this classification process, always saying
it's a grey area, if you are determining how they operate and what work they do along with being their only compensation they claim more likely than not they will call them an employee. Please seek advice if you have any questions on this issue as it can be costly to your business.
Bottom line is stay involved rulings change and ignorance is not a defense. Look for upcoming compliance classes and stay educated because we have all worked too long and hard to have what we earned taken away.

Happy New Year and let's all make 2016 the best year ever !!!

David Cardella
Chairman of the Board

Letter from the Vice-President

September 2015

The Charity Fundraiser Gala will be on Saturday December 5th. If you have any ideas for the auction, it is not too early to get them to the CIADA office.

Some ideas for the auction could be alcohol gift sets, vacation getaway packages, massage spa packages, sporting items, dinner packages at restaurants and don’t forget if it does not auction off it can go into the silent auction. If we all start now we will have more ideas than last year. Also, plan to drop off new toys for the toy drive.

We need ticket sales for the amazing Corvette that will be given away at the charity fundraiser on December 5th. Get your tickets now they are only $25 for one or a pack of 5 for $100.00. Imagine how winning this wonderful car would enhance your Holiday Season so purchase your tickets now at or call the office – 303-239-8000. Plus CIADA is paying the required Federal Withholding Tax of approximately 28%.

LEGAL PROTECTION: If you are not a part of this fund, you should think about joining before a lawsuit comes your way. Membership is only $500 to help protect your business. There are attorneys out there just waiting to take cases against you that would be covered by this fund.
If you have any questions feel free to call me 303-809-1618 I can answer them.

File your liens before 30 days. Many dealers may not even know how this works but they learn about it after they have to turn over a loan or the title to a trustee that is handling a bankruptcy and it seems so wrong. But the law states the lender has to file all liens within 30 days. Most contracts with banks make this fall on the dealership. This has happened to me twice. Once I had to turn over title and lost the vehicle to the bankruptcy court the other I had to buy back a customer’s loan. It hurts when it happens so file your liens by 30 days or you will feel the pain.
Todd and the group at CIADA are working on a solution to file the liens without a title but this will take time to get done. One of the most important forms you could use is the arbitration agreement. This could save you a lot of grief just for using this simple form.

We are all very proud of Todd O` Connell, the Executive Director of CIADA, for winning the NIADA National Executive Director of the year!!!

Todd is always working hard for this association and we all appreciate his work. Feel free to call for any questions or visit

Dan Berkenkotter

Presidents Letter

May 2015

Dear Members,

The Charity Fundraiser Gala this year will be Saturday, December 5, 2015 at the Denver Radisson SE at Parker Road and I-225. They have put together a great package for us including special room rates of $79.00 for those wanting to stay and enjoy the hotel’s many amenities.

So please save the date - Plan now to attend this year’s extraordinary CIADA Charity Gala event that will begin with a reception starting at 5:30 pm.
- Toy Drive for needy children
- Holiday Cocktail Reception
- Enjoy Live Entertainment
- Fantastic Dinning Experience
- Raffle Drawing for Corvette featured on front cover
- Quality Dealer Award (application form in magazine)
- Hall of Fame Presentation (nominating form in magazine)
- Live Auction to Benefit CIADA Charity
- Special $79 Room Rates
- Plus More !!!!

One hundred percent of the net proceeds go toward funding the “Used Car Dealers of Colorado Charity Fund”. Brad Sturgeon of Dealers Auto Auction and Jeff West of Manheim Denver have volunteered to be on the Used Car Dealers of Colorado Charity Fund Board joining other CIADA Directors Dan Berkenkotter, David Cardella, Dean Gunter, John Lindberg, Mark Weida, Stan Martin and Tim Gaylord. The “Charity” is currently looking to help with several aid requests and is granting scholarships. Please have anyone you know who might need assistance or is attending college contact the CIADA office or look at the website, for additional details and the aid / scholarship application forms.

The CIADA Board has approved a raffle to help fund the “Charity”. The prize is a 1995 Corvette Convertible Indy Pace car with approximately 9,347 actual miles. This Corvette is in perfect condition; please see the accompanying article for more information.

Your Executive Director Todd O'Connell has been awarded the NIADA National Executive Director of the Year! We are all very proud of him.
The “Ambassador Group” continues to grow; I thank this group for their help in sharing important information with other dealers – I have seen first-hand that their extra effort is working! Please contact any of the CIADA Directors or myself to find out how you can be a part of this exceptional group.

A New NAAA Arbitration Policy took effect on May 4, 2015. This policy is what the majority of Auctions use; there are quite a few changes that could affect you and put your business at risk so make sure you are up to date with the revisions. I do not agree with all of them and looking to see what can be done.

Please make sure you are perfecting your liens within 30 days, as there are possible dire consequences if the lien is perfected after 30 days. The first is if the buyer files bankruptcy between 30 and 90 days after the purchase, the bankruptcy Trustee has the right to obtain the vehicle and then sell with proceeds going toward settling the bankruptcy – the dealer loses all rights to the vehicle – you do not get the vehicle back. Second, make sure you know what you are signing on your bank contracts. Some have a recourse clause that may require you to buy the contract back if the lien was not perfected in 30 days and the customer defaults at any time – even years after the sale. This is a very high risk especially if you have a lot of these out there!

If you are not a member of the Protection Fund, you should be. Ask one of the Ambassadors or a Board of Director about the benefits of joining.

Nominations for this year’s Quality Dealer are now open. If you are interested or know a dealer you feel deserves to represent Colorado at the National Convention in Las Vegas contact Todd O’Connell or myself. The Quality Dealer qualifications and nomination applications are on CIADA’s website for your convenience.

Stan Martin, CIADA President

Chairman of the Board Letter

March 2015

Fellow Members,

Could we have ended 2014 any better than we did ? I venture to say ABSOLUTELY NOT !!! As you will see in the Charity article, we raised over $106,000.00 yes $106,000.00 dollars for charity !!! I commend and thank everyone for their involvement and support in reaching and surpassing our goal as none of this could have been accomplished without the help of the many people who came together to pull off this amazing feat. THANK YOU !

This was quite the night as we announced this year's Quality Dealer of the Year winner Nevada Auto Sales owned by Mike and Sharon Bonicelli. With over forty years of being in business and many achievements over this time, they will certainly represent our State well in Las Vegas where they will compete for the National Quality Dealer of the Year. We also recognized an individual who over the years has shown others the way to be successful through hard work, integrity, compassion, leadership and a commitment to those he employed. John Sharp, owner of Family Trucks and Vans, was inducted into the CIADA Hall of Fame.

Please read the articles about these two outstanding winners we recognized and help us honor the next worthy winners by submitting the names you feel should be recognized this year. Remember this is your association and your honorees.

Now on to this year's business - hopefully we finished 2014 strong and are prepared for what lies ahead in 2015 and whatever challenges may be waiting for us. I know as an association we will need to fix certain things that affect our industry starting with the 30-day title and lien filing. It seems many dealers are not aware of the risk they assume when a lien is not filed in thirty days and the purchaser enters bankruptcy. How about the loss of the vehicle and repurchase of the contract from the lender. Do I have your attention now because that is what is in your dealer agreement with most banks. While we work on a solution to this problem, do yourself a favor and reread your dealer agreement as no one can afford to make a $10,000 dollar mistake. By now, most of us have heard the commercials about the check engine light failing a car's E-test. This change took place January first and now is causing clean running cars to fail the test. We have formed a committee to address this issue and welcome your input. Although we passed legislation, concerning title brands and salvage vehicles last year it now seems total loss is appearing on vehicles with no branding on the title. We are working to correct this, because even though you have no knowledge your customers may believe you knew about the total loss and intentionally failed to disclose.

Problems will always exist that we will have to tackle. But it is a new year with a great outlook for our industry so let us go to work selling vehicles and working together to solve these problems. Remember as salespeople we are just looking for that roadway to success and success starts with selling vehicles so let us have some fun and make 2015 the year we break all the records.

David Cardella
Chairman of the Board

Directors Letter

March 2015

New Emission Test Requirements – Procedures have changes as of January 1, 2015

Exemptions for new vehicles increased from four to seven model years. A 2011 vehicle, for example, does not need an inspection until 2018. This change has not created any consumer or dealer concerns.

For vehicles 12 years old or older, nothing changed in the testing method. The I/M 240 test (simulated driving cycle on a treadmill-like device called a dynamometer) is used. The vehicle will pass if the “Check Engine” light is on as long as the emissions from the tailpipe are within the program margins.

The change that is causing some concern to consumers and dealers alike is in the 8 through 11 year old group of vehicles. These vehicles now have their onboard diagnostic (OBD) computer systems checked. They are not put on the dynamometer and if the “Check Engine” light is on will automatically fail the inspection.

CIADA has received calls from both consumers and dealers questioning this new process. The Association has been engaged in meetings with the State to clarify this change and appointed two Directors, Jim Bode and Lucas Jozefkowicz to study the impact of this new testing technique. Your input is requested to help determine the effect this change is having on your customers and business. Please send an email with your comments to

Resources are available from the “Emissions Program” to help increase the success rate of testing the 8 to 11 year old vehicles. The Colorado Department of Public Health and Environment – Air Pollution Control Division routinely hosts technical seminars on the “OBD” computer testing and troubleshooting process at their Emissions Technical Centers. Some general reasons vehicles are failing or showing that the computer/monitor is not “ready” for the “OBD” test are:

•    Resetting all of the monitors right before the test – driving the vehicle is necessary in order to reactivate. All of the monitors need time to reset for the “OBD” test. If the “OBD” test is tried before all of the monitors are active or “ready to test”, the test results will show “system not ready” even if the check engine light is not illuminated.
•    Resetting the monitors after a repair – do not reset the monitors after a repair because as noted above this can take unnecessary valuable time. When the needed repair is complete, just drive the vehicle and the monitor normally will reset in a short period of time.
•    Misinterpreting scan codes – for best results make sure the repair facility has the proper equipment to diagnose the codes.
•    Unnecessary replacement of Catalytic Converters – when getting a “cat” code make sure the repair shop checks the “upstream” codes to insure the “Catalytic Converter” actually is the problem.
•    Confusion over a vehicle “failure” versus “system not ready” – customer takes the vehicle for an emission test and does not look at the paperwork close enough to see the vehicle actually did not “fail” but the system was simply “not ready”. Because they did not get the emission test, they inform you the vehicle failed which can lead to much frustration since the codes are clean but the monitors were not completely reset so the test was not even administered. Ask to see the paper work so you know the exact test results.

These Emission Technical Centers will also evaluate your vehicle to determine the reason for the emission failure for free, provided the vehicle was repaired and then still fails the retest. Jim Bode took advantage of this free assessment with one of his vehicles and here are the required steps:
Test one fails
1. Keep copy of failed test
2. Make repairs – must have proof of repairs
Test two fails
1. Keep copy of failed test
2. Call Emission Technical Center and make appointment to have vehicle inspected (phone number is 303-744-2442, press 3 for more information and to make an appointment)
a. Must provide at appointment - copies of all tests, receipts for all repairs and proof of ownership (invoice or copy of title)
3. State performs diagnostic tests, takes about one hour
a. Technician will explain and give you a copy of test results
4. Make additional repairs
5. Retest

CIADA will be offering a seminar this month covering “Emissions Best Practices” – please check your email, call the office 303-239-8000 or visit the website for the details.

The emission testing process can have many variations so please contact me anytime with questions.

Thank you.
Todd O’Connell
CIADA Executive Director

Presidents Letter

January 2015

Like last year, CIADA has a lot going on! We are still working on the Total Loss bill but looks like it will be next year before we can get a bill introduced to try and resolve this important disclosure issue. We are still hoping to get something done this year with our 30-day title delivery problem! Currently your dealerships can be fined up to $10,000 for not delivering a title within 30 days! CIADA is working to try to make it as long as you have completed everything needed to produce the title and are waiting for a third party to provide the rest of the documents, you will not be fined and your license will not be in jeopardy!

Joe McCloskey, Dean Strawn and Mike McKinnon have been working very hard to get a definition for material damage worked out with the Dealer License Board. This item is on the May rulemaking agenda and hopefully will be in front of the Dealer Board this fall for approval.

Trying to get something going on “curbstoners” is a priority for CIADA! Call Todd 303-239-8000 with violations or ideas on how to attack this ever growing problem!

A new committee was created to deal with the new emissions laws headed by Jim Bode and Lucas Jozefkowicz please share your experience with us and try to make it work better for all of us!

CIADA leads the nation in members per dealers. CIADA surpassed New Mexico last year and is trying to reach one thousand members! There are around nine hundred twenty members at this time. Tesh Tesfaye is chairman of the membership committee; let us try to help Tesh reach this goal!

Last year’s Charity Gala led by Tim Gaylord and Dean Gunter was a huge success and we are going to try to improve it even more this year! The new separate board formed to administer CIADA’s charity, the ”Used Car Dealers of Colorado Charity Fund”, will be reporting on the Charity’s activities.

Please remember the Quality Dealer nominations will be coming up again soon. Anyone can nominate themselves or anyone they feel deserving of this high honor. In the past, we have collected names from the auctions and other business involved in our industry. The candidates are then submitted to Regis University who for the last four years has picked the winner including one NIADA Quality Dealer of the Year. Contact Todd with any nominations.

The Ambassador Group was organized last year to help get CIADA’s message out by word of mouth keeping all informed of current issues and with more people being involved creates an excellent breeding ground for new board members!

The Legal Protection Fund is still growing strong with eighty members. John Lindberg and Dan Berkenkotter are co- chairman of that committee. Please contact any board member for information!

Special thanks for all the hard work Dave Cardella has done for years! It is a group effort of volunteers that make it work for all of us! Please get involved to make your association even stronger!


Stan Martin President CIADA

Presidents Letter

November 2014

Fellow Members,
I write this letter to you in November after participating in the NIADA leadership conference in Washington D.C... We were there as a national organization and came together to hear from different government committees and lobby Congress concerning issues within our industry. Eye opening to say the least. We heard from representatives at the FTC, CFPB, DOJ and the NHTSA as they talked about different issues concerning our businesses and how we run our lots. We discussed topics ranging from financing to selling cars with open recalls. If I learned anything from them, it was their lack of understanding about us and what we do every day and fellow members that is why being involved is so important for all of us. They talked about grounding automobiles until recalls are fixed and we informed them of the devastating effects that would have on us to provide transportation to customers. Hopefully they understood. They talked about the discriminating effects that using one finance rate for everybody would have on people. Funny the last time we met with them they told us the exact opposite. Again this only reinforces the reasons why ALL of us need to be involved with our association.

On day two, we went to congress and visited offices of Senator McConnell, Reid, Portman, Enzi, and Levin along with House Representatives Boehner, Pelosi, McCarthy, Grisham, Kelly, Campbell, Peters and Perlmutter. Although we only met with their senior staff members, I assure you these are the people who actually get things done. They listened as we voiced our concerns and pointed out items in their bills that even they were not aware existed. I guess they live by the motto “we have to pass it to find out what's in it ". Wow another wakeup call !!! Again, I ask you to become involved because if you do not people who are clueless about selling automobiles will dictate to all of us on how to make a living and that is the last thing we want to happen.

As we close out 2014, which hopefully was profitable for everybody, let us look back at what WE accomplished as an association. In the beginning of the year, we were informed of a flood bill making its way through the legislation with questionable wording that would leave dealers responsible for vehicles while relieving insurance companies. We enlisted the help of others and passed two bills with bipartisan support giving us needed title reform, we held our largest golf tournament with over 150 participants, we grew our legal protection fund and association membership, we formed an ambassadors committee that saw 30 members volunteering, we held our first Charity Gala to raise money to help our communities statewide and we inducted John Sharp of Family Trucks and Vans into the CIADA Hall of Fame. I hope you are as proud as I am on what we have accomplished knowing that as an association we can make a difference.

As I sign off as your president for the last time, I want to thank you for allowing me to serve the association the last two years and tell you how grateful I am. Even though this is all done voluntary, the wealth of information and friendships I have made is truly worth all the time. I hope you have grown as much as I have and I pray for all of our continued success as we move forward into a new year. I am proud to be a member of our association and once again, I ask for your involvement, as this is absolutely the only way we can continue to be one of the strongest associations affiliated with NIADA.

Thank You,
David Cardella
CIADA President

Presidents Letter

September 2014

Fellow Members,

As I write this letter I can't seem to stay focused on just items pertaining to our industry. This summer has been busy. Our golf tournament was a huge success with 152 participants and many vendors enjoying a beautiful day. The convention in Las Vegas was once again very informative with many workshops and guest speakers. If you've never attended one do yourself and your business a favor by planning for next year’s convention. Many people attend year after year as the knowledge they gain is invaluable to success as it seems new committees and regulations continue to pop up concerning our industry. This year we had a representative from the Consumer Financial Protection Bureau talk to us and while NIADA's attorney, Shaun Petersen, posed outstanding questions I don't believe we received one straight answer. Shameful but enlightening as that was their stance in Washington D.C. last November. As dealers we need to be aware that there is no set rule that governs this bureau and WE are responsible for staying compliant.

A couple of issues that seem to have come forth again are the 30 day window in perfecting the lien on a title and material damage disclosure. I can't stress enough how important these issues are to your business as both can have a huge impact on your bottom line. If your lien is not perfected within 30 days and your customer files bankruptcy within 90 days you may lose the vehicle to the bankruptcy trustee or if the buyer defaults at any time you might have to purchase that contract back per your lender agreement. AN EXPENSIVE OVERSIGHT !!! Non-disclosure of material damage is a violation of our laws that govern us in Colorado and the board will address all complaints. Hopefully you opened our email concerning the guidelines outlining how they base their decisions, if not, look for it again as we will be re-sending it. As sales increase sometimes we let the little things slip by but in today's business environment with unscrupulous lawyers waiting for an opening please don't fall asleep. We all work too hard and put in too many hours away from our families to let a little mistake turn into a costly mistake.

As I said in the beginning of this letter sometimes it's hard to stay focused on our industry when so much is happening in our lives every day but this summer a friend of mine, Mark Chalfant of Manheim Denver, suffered a real tragedy when his son was murdered; a senseless tragedy that will affect many families for a long time. If you know Mark, and many of us do, you know he's strong and will pull his family through this tragedy but if I can just ask you to say a prayer for them I know they will appreciate it.

David Cardella
President CIADA

Presidents Letter

June 2014

Fellow Members,

Hard to imagine six months are already in the books for this year with many accomplishments to talk about. The two bills we were working on are now signed into law, we have established our own charity, we elected three new board members and had one of the largest turnouts in
the history of our golf tournament. We had over 150 players and launched our charity with an auction raising $2,955.00 !!! Besides having our valued members we had State Senators Lucia Guzman and Nancy Todd plus House Representatives Brian DelGrosso, Polly Lawrence, Tracy Kraft-Tharp and Jovan Melton with everybody leaving with a prize and a smile. If you have never attended one of our outings please try and join us for some laughs and an opportunity to meet your fellow dealers and vendors in a relaxed atmosphere.

Now as we head into the second half I can tell you our association is focused on new issues like the 30 day window to deliver titles which is becoming increasingly difficult especially when a pay-off is involved. Another issue is the interpretation of the material damage disclosure law
which some investigators are looking to include mechanical components as well. During our many visits to the Capitol and numerous meetings with the lawmakers I can say we can correct things that affect us in our businesses but WE have to take the lead. In order to do this we need YOUR HELP when we request it. It may be a simple phone call, attending a fundraiser or just contributing to our political action fund. Everything helps no matter how small you think it might be and I can attest to that as the phone calls our members made helped get our salvage bill passed this year.

Please reach out to us and give us a heads up on issues that may be affecting your businesses so we can better serve all of our members and don't hesitate to contact us for help. If you’re not one of the many dealers who have joined the Legal Protection Fund contact Todd O'Connell for information to safeguard yourself against frivolous lawsuits. As an association we can come together to protect ourselves but we need to be responsible to get and stay compliant so if you haven't attended one of classes check the schedule as it could be the best money you ever spent !!!!!

Let's finish strong let’s finish smart let’s finish profitable let’s make it another great year.

David Cardella
CIADA President

Directors Letter

March 2014

Hope you all are experiencing a profitable first quarter. The following is delivered with the spirit of helping you keep all of your profit in 2014. By knowing what the “hot” compliance topics are you can evaluate your business practices in order to minimize any potential problems.

In his message this issue, David Cardella touches on compliance issues at both the State and Federal levels. To provide more details, I talked with the different regulatory agencies to discover the highlights from their investigations.

From the State – no surprise that the number one consumer complaint revolves around “Title Delivery”. There are numerous complications that contribute to a late title and a good portion of the time the fix is out of the seller’s control. But be mindful that with the current regulations the title is to be delivered within 30 days. While number one is problematic, the number two compliant, “Unlicensed Sales / Unlicensed Salespeople” is relative easy to avoid. Simple solution is if there is not a current license hanging on the wall, that salesperson cannot be selling. Develop a system to keep track of the renewal dates as the out of pocket fine is $7,500. “Misrepresentation”, “Contract / Financing” and “Advertising” round out the top five complaints the State received in 2013. These are very broad reaching with many different scenarios. Disclose what you know about the vehicle and keep a detailed written record for every transaction. Advertising rules are possibly going to be revised this year in rulemaking so will keep you updated with any changes.

From the IRS, they are actively looking at dealerships using “Independent Contractors”. The fines and penalties can be substantial so if there is any doubt now is the time to consult with your CPA or attorney to make any necessary changes in your business model.

The Attorney General’s office is out statewide looking at “Late Charges”, the retail installment contract “Insurance Coverage” wording, “Gap” insurance documents, “Repossession Charges”, “Deficiency Values” and the big one is the “Licensing and Notification Requirement”. By the time you read this you should already have received information detailing exactly who needs to register plus the specifics on a “Compliance Policy” being offered to all dealers who are not registered.

Very near the top of the compliance list if not at the top is the Office of Foreign Assets Control (OFAC) administered by the US Department of Treasury. OFAC regulations mandate that a check be pulled on every sale. If your dealership is not familiar with OFAC please give the Association a call because the Treasury is non-forgiving and the fines are substantial. In 2013 more than $137,075,000 in fines were imposed with the smallest one being $10,000.

Please call me anytime with questions and check CIADA’s website for the date of our next compliance seminar.


Todd O’Connell

Presidents Letter

January 2014

Fellow Member,

As we begin a new year with great expectations of profitability in pursuit of the never ending chase for one more car deal we pause and take a moment to reflect on all that we have accomplished over the past year.

As an association we have many things to be proud of but perhaps none greater than having our state Quality Dealer of the Year Winner, McCloskey Motors, located in Colorado Springs also win the National Quality Dealer of the Year !!! This is the second time in twenty years we have had this prestigious award given to one of our dealers. Joe and Ann McCloskey owners of McCloskey Motors competed against more than 38,000 fellow dealers in America to bring home this award. Once again let us recognize their great achievement and the recognition it brings to our state. We also had another National winner as association member, Dealers Auto Auction of the Rockies, won NIADA Auto Auction of the Year. We are proud of our winners and I encourage all of our members to compete at the highest level to achieve these same types of recognition.

Now I extend our congratulations to our newest winner Charles and Teri Ehmka owners of, Charlies Auto and Truck Sales, located in Northglenn who have been named our 2013 Quality Dealer of the Year winning against some very strong and well deserving fellow dealers. We will see you in Las Vegas as you hopefully bring home the National Quality Dealer Award to our state again.

In November Todd and I traveled to Washington D.C. with NIADA on behalf of our association to express our concerns with the ever changing rules and oversight being placed on our dealers. We had the opportunity to discuss issues with the FTC, NMVTIS, NHTSA and CFPB committees and also senators and congressmen. While our feeling is our voices were heard we also understand that the focus on our industry seems to becoming more intense with the formation of committees by our government to look at all compliance issues even though some agencies were unable to provide us with clear and precise rules. We will be paying close attention to these and other issues as they present themselves throughout the year.

2014 is already shaping up as a year of issues for our industry as a title branding bill was drafted with wording we believe is harmful to our customers and members. This bill, introduced in the first week of the legislative session, currently seems to be opposed by all except for the insurance companies. I can assure you we are on top of this issue and have been in contact with government officials expressing our concerns.
Some other issues our association will be addressing this year are: 30 day titles, spot delivery, curbstoning, professional salesperson license and advertising rules. Compliance is one thing all of us must pay close attention to in running our dealerships and now more than ever as rules and laws are being implemented on the state and federal level seemingly every day.

Let's have a healthy, safe and prosperous year as we pursue our dream of being small business owners while overcoming all the obstacles that always seem to present themselves as we provide our customers with safe and reliable transportation.

David Cardella
President CIADA

Political Committee Fundraiser

October, 2012

Fellow CIADA Members,

My name is Dean Strawn President and Co-Owner of AutoTrek. It has been my honor and pleasure to serve this past year as the President of the Board of our Association - CIADA. I emphasized our Association because that is exactly what it is. As members of CIADA each of us has an opportunity to shape the Association in ways which can have a positive impact on our own dealerships, and the industry as a whole.

Involvement can take on many forms. Members can take an active role, as I and many others have done, by seeking an appointment to the board. Donating your time and effort at this level gives you direct input on budgets, planning, goal setting and legislative issues that impact our industry. Members can take a less active role by simply providing input at meeting or addressing concerns with board members directly. Input from the members is always welcome, taken seriously and addressed at board meetings. It is important to note, the Board serves the members, and the Association’s Executive Director, Todd O’Connell, serves the Board. As members, you really are in the driver’s seat! Pardon the pun.

The final way to get involved, and possibly one of the most impactful, is through a donation to the CIADA Political Committee Fund. The Association’s Political Committee is a non-partisan committee that approves donations to legislators and candidates that we believe support the causes of our association and are sympathetic to the concerns of small business in general. The decisions to contribute are made judiciously and with the help of the Association’s Lobby Team, Aponte’ and Busam. Our dedicated lobbyist, Edie Busam, spends many hours each week at the Capitol meeting with legislators. Additionally, she and her colleagues attend/sponsor fund raisers and provide reports detailing pending legislation that may affect our industry. Edie’s, boots on the ground approach, allows the Board, the Committee and Todd to make informed decisions on which candidates and legislators to support. Without Edie’s help it would be difficult to know who’s in, who’s out, who’s on their way up or who may be heading up the next committee that oversees the auto industry.

I cannot stress enough; the time to make friends is NOT when you need one, the time is now!

When I came on the Board many years ago it was the direct result of needing friends and not having any. My dealership came under fire from the Auto Industry Division. Even though I was operating in manner that was consistent with many of my competitors, I was in their sights, and going to pay or be shut down. Not knowing where to turn I called CIADA for help. Our CIADA Executive Director agreed we were being treated unfairly and requested a meeting with the new Director of AID. The meeting was accepted and eventually it all worked out. However, when our Executive Director made the initial call, the new Director of the Auto Industry Division had not heard of him or CIADA!

At that moment I came to a few stark realizations. One, I realized you can be legislated or regulated out of business very quickly, at a minimum your ability to operate profitably can be significantly reduced. This can happen in a matter of minutes, not weeks, months or years. All it takes is the regulatory board that governs our industry (Auto Dealer Board) or their enforcement arm (Auto Industry Division) to change how they view past regulation or accepted business practices. Two, I realized it was time to get involved with the Association that protects our industry. Three, I realized we had to improve the prominence and visibility of our Association if we wanted or needed to do battle with City Hall.

Fortunately, our Executive Director and Board at the time recognized this as well. I joined the board, to fight the good fight with many others, such as: Peppe DeMarco, Dave Cardella, Lloyd Donnelly, Wally Smith, Trish Bobbitt, Don Walker, Jim Bahne, and Mike Bonicelli, just to name a few. Many past Board Presidents and past Executive Directors, Members, CIADA staff, Attorneys, Lobbyist and others have all contributed to increase the Association’s exposure significantly with our legislative body and regulatory agencies.

Today CIADA works closely with the Department of Revenue, The Auto Dealer Board, the Auto Industry Division and our State Legislators. CIADA has introduced and successfully passed legislation benefiting Independents. CIADA has helped defeat countless pieces of proposed legislation and regulation that could have had a negative impact on small business or the Independent Auto Dealer. Good people have done good work, but the fight goes on!

CIADA has had a Political Committee Fund for some time. It is the existence of this fund, and the contributions made, that has led to some of our successes legislatively. Some may recall there were issues with this fund in making timely and correct fillings with the state. Those issues have been resolved and the fund has a positive balance of approximately $2,300 dollars. However, we are well short of our goal of $10,000. The mere fact that we have a fund at all has opened doors with the legislators that just weren’t open before. They now know more about our Association because they are now willing to listen to who we are and what we do. They now know we represent over 900 members. That is 900 small businesses, families, employees, employee’s families – VOTERS! All represented by an Association that has funds to donate to their campaign; pretty powerful.

A former Colorado Speaker of the House put it to our Board this way. Contributions won’t buy an ethical legislators vote, what it will buy is access. You will at least have the opportunity to state your issue, how it impacts your business and the economy, how it will impact the public at large, and the voters in his or her district. They may agree or disagree, but your side was heard. He went on to say that access was granted in this order. Family and longtime friends got the greatest access - just the way it is. Next were those that had either worked on the campaign or donated to the campaign. Third, were the registered voters in their district. At the very bottom of the list were people that sent letters or made phone calls who were not in the first three groups. He said they were for the most part ignored. We and our industry are faced with too many legislative challenges to be ignored! Let’s Make Friends NOW!

Recently our Executive Director learned at the National Convention there are three bills in California that have already passed both Houses and are awaiting the Governor’s signature; they directly impact BHPH dealers and used car dealers.

Bill 1447 – Prohibits the dealer from requiring the customer to make payments in person, at the dealership. Requires the BHPH dealer to provide a 30 day, 1000 mile warranty on every vehicle sold. Puts strict conditions on use of GPS tracking and starter interrupt devices. ***

Bill 956 – Provides longer grace periods for slow pay before the vehicle can be repossessed. Requires a dealer to hire a licensed repossession agency and limits amount dealer can charge for costs in connection with the repossession. ***

Bill 1534 – Requires all vehicles to be displayed with a prominent label detailing the reasonable market value of the vehicle and how that value was determined.
*** (Prior to lobbying efforts these bills contained more potentially damaging aspects such as: after the sale a dealer could not call buyer's references; could not track vehicle with GPS technology; could not disable vehicle using ignition override technology; requirement to allow buyer two months to repay any penalties, fees, and other charges imposed by dealer in connection with past due payments that have been brought current and requirement to have sale price of vehicle prominently displayed on vehicle.)

You may ask, “How does a bill in California concerns me”? Well, we have seen this before. Legislation that is passed in one state gets introduced in another – The Consumers Bill of Rights… etc. It is only a matter of time before similar legislation shows up in Colorado.

I feel strongly the single most important function of any association is to protect its members from legislative or regulatory threats that would prevent or restrict its member’s ability to do business!
I’m asking each of you to give generously to the CIADA Political Committee Fund. The maximum contribution is $550 over a two year period per business/dealer. That can all be paid in advance this year or split over a two year period $275/$275. If that amount is too high please donate what you can. We need to build this fund as quickly as possible to gain the access and influence necessary to protect our members. On behalf of AutoTrek I will be making the maximum contribution and will continue to do so for as long as I have a dealership in the state of Colorado, it’s just that important.

My tenure as Board President will be over at the end of this year. It’s been a great experience working with so many quality and dedicated people. Soon, I will no longer be on the board and will become a dealer member like most of you. Although I won’t be as actively involved, you can count on this. As any member in good standing has the right to do, I will be whispering in the new president’s ear and the collective ear of our Board - “You better cover our ass at the Capitol and make friends at the DOR, AID and the DLB”!


Dean Strawn
Board President, CIADA

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  • Message from the CIADA President


    Dear CIADA Members,

    My name is Peppe DeMarco. On Dec. 8th 2010, I was elected President of CIADA. As this was past the editorial deadline for the Jan/Mar issue of the CIADA Insider, this is my first opportunity to communicate with you in my new role.

    First a little bit about me. I reside in Ft. Collins and I am the owner of Highline Motors. Originally from Sorrento, Italy, I moved to Chicago in 1978. I started my auto career selling cars for “Svitak Buick”. In 1987, I went to work for “Patrick Dealer Group”. I was the Used Car Director until 1996. That’s when I decided to move to Ft. Collins and start Highline Motors. My wife Sherryl is both my partner in life and business. We have two beautiful daughters Dana and Danielle. We all agree that the move to Ft. Collins was a good one!

    Highline Motors has been a long-time member of CIADA. In 2006, we were fortunate enough to be nominated and chosen as the “Colorado Quality Dealer of the Year”.

    I would like to inform our members about the new improved website.

    At year-end 2010 and after much delay, federal regulators and lawmakers eventually approved and quick implemented three policies which affect most all of us. Understanding the complexity and “what does this mean for me” components of Red Flag Rules, Risk-Based Pricing, and revised Privacy Notices has taken time away from selling cars. CIADA was out-front on these issues and sent email blasts and posted valuable information to to help us through the maze.

    In February, the new and improve was launched to offer members a more valuable and informative online experience. With links to and its valuable news and training resources, we urge you to visit regularly and take advantage of all tools you can use for the benefit of your dealership.


    Peppe Demarco
    CIADA President

  • CIADA Announces 2010 Quality Dealer of the Year

    February 3, 2011

    CIADA Press Release FOR IMMEDIATE RELEASE Stan's Auto Sales Named 2010 CIADA Quality Dealer of the Year Click Here to see video. Denver, February 4, 2011 - The Independent Automobile Dealers Association of Colorado (CIADA) is pleased to announce that Stan’s Auto Sales, LLC (Stan’s) has been awarded 2010 Quality Dealer of the Year. This prestigious award is given annually to the Independent Dealer which most closely meets the criterion of Ethical Practices, Superb Operations, Business Growth, and Community Commitment. Nominees are received from past Award Winners and members of the CIADA Board of Directors. This year’s nominees created a slate of exceptional Independent Dealerships and business leaders, making the final selection of Stan’s all the more noteworthy. Stan’s was established in 1998. Owner Stan Martin has over three decades of experience in the automotive industry, including sales, sales management, general management and high-volume wholesale purchasing. The mission of Stan’s is to offer the public a large selection of competitively priced vehicles, while providing a laid-back environment in which its customers are afforded an easy and friendly buying experience. Stan’s staff is customer-focused, and brings the further assurance of Auto Check background reports, Better Business Bureau accreditation, and strict adherence to the professional standards espoused by CIADA. In making the 2010 Award, CIADA Executive Director Gary Zimmerman explains, “Stan’s Auto Sales is a testament to the time-tested business credo that taking care of customers’ needs in an honest, thoughtful and thorough manner is the key to building a successful enterprise. Stan Martin and his team exude extreme competence and are the epitome of friendly customer service. They’re not just good folks to buy a car from; rather, the people at Stan’s are the type you’ll want to form a lasting relationship with. And since 1998, many Coloradans have done just that.” Upon receiving the 2010 Quality Dealer of the Year Award, Stan Martin commented, “I am humbled to have received this honor. But more so, I am so very proud of the staff at Stan’s for bringing their best every day. And finally, we are grateful to the thousands of customers who have entrusted their family’s transportation needs to us over the years.” For additional information, contact: Stan’s Auto Sales 7192 Newton St., Westminster, CO 80030 Telephone: 303-650-1011 Facsimile: 720-833-0592 Email: Web: CIADA 6464 W. 14th Ave., Lakewood, CO 80214 Telephone: 303-239-8000 Facsimile: 303-237-3305 Email: Web: The Independent Automobile Dealers Association of Colorado (CIADA) Established in 1941, the CIADA is one of the oldest organizations of its type and represents Colorado Dealers in a variety of support roles. Its membership ranks Colorado with the highest percentage of available dealers in the country. CIADA is committed to assisting dealers from the initial dealer application to becoming a dealer to providing ongoing education provided by the CIADA Education & Training Center. The association provides assistance to dealers in obtaining required surety bonds and the necessary forms to comply with the State of Colorado dealer requirements and the importance of representing dealers at the State Capitol and with the State Regulating Agencies is a primary benefit of belonging to the CIADA. ###

  • Red Flags Rules Signed in to Law by President Obama, Effective December 31, 2010

    After three years of delays, on December 18, 2010, President Obama signed into law the "Red Flag Program Clarification Act of 2010."

    Attorneys, doctors, and CPAs fought to be excluded from compliance with the Red Flags Rule and in the end with the help of the US Congress they were successful.

    Automobile dealers must comply with the Red Flags Rule which is effective on December 31, 2010.

    What are "red flags"? They are the potential patterns, practices, or specific activities indicating the possibility of identity theft.

    The Red Flags Rule defines how your dealership must develop, implement and administer your Identity Theft Prevention Programs. Your program must include four basic elements which address the threat of identity theft.

    1.Your program must include reasonable policies and procedures to identify the "red flags" of identity theft in connection with the opening of an account in the sale of a vehicle.
    2.Your program must be designed to detect the red flags you have identified.
    3.Your program must spell out appropriate actions you will take when you detect red flags.
    4.Because identity theft is an ever-changing threat, you must address how you will re-evaluate your program periodically to reflect new risks from this crime.

    1.Identify the red flags of identity theft you're likely to come across in your dealership.
    2.Set up procedures to detect those red flags in your dealership.
    3.Respond appropriately to any red flags to prevent & mitigate Identity theft.
    4.Ensure the Program is updated periodically to reflect changes in identity theft risks.
    Preventing Identity Theft is a team effort by all members of your staff. The Red Flags Rule requires you to have a written program in place. The attorneys for NIADA (National Independent Automobile Dealers Association) have provided a written program that meets all of the requirements of the rule and allows you to type your dealership name and other information into the document. Go to and in the header section you will see a banner labeled "publications". If you scroll down you will find the Red Flags Rule document. You can make your entries directly into the document and then print your written program with your dealership information in the document. You cannot save the document, so I suggest you print the document before you start modifications. This way you can pencil the changes you will insert for your dealership and then go to the document and make the entries.

    Also, as part of the Red Flags Program on, you will find the following.

    1.An Overview Memorandum of the Red Flags Rule.
    2.Guidelines to assist your dealership in analyzing identity theft red flags and developing a written program.
    3.A model dealership policy.
    4.An employee acknowledgement regarding the Dealership's Identity Theft Program.
    5.A service provider agreement addendum regarding the Dealership's Identity Theft Program.
    6.A service provider letter regarding the Dealership's Identity Theft Program.
    The Red Flags Rule is complex and CIADA is here to assist you with compliance. One of our member dealers has lost six vehicles to Identity theft. Numerous dealers have lost one or two vehicles to Identity theft. In all of these cases the dealer had to reimburse the lender when Identity Theft was discovered. All lender agreements are written in favor of the lender in Identity Theft cases.

    Identity Theft is the #1 crime in the U.S. Only 1 out of 700 cases of Identity Theft are prosecuted. Identity Theft is not going away, implementing these procedures under the rule will help to mitigate Identity Theft.

    The author of this document is Howard Koziara, Certified Identity Theft Risk Management Specialist and instructor of the Safeguard and Red Flags Rule Classes at CIADA. If you would like to attend a Red Flags Rule class, contact CIADA at 303.239.8000. CIADA members may contact Howard directly with questions about the Red Flags Rule at 303-257-8200 or 

  • 2011 Uniform Consumer Credit Code Forms and Instructions

    As a service to its Membership, CIADA would like to remind that annual filing and fee for all Colorado businesses which extend or arrange consumer credit is rapidly approaching. The due-date is January 31st. Please be sure to review the notification from the Colorado Attorney General regarding the Uniform Consumer Credit Code, along with the necessary forms and instructions. Please feel free to call CIADA at 303.239.8000 should you have any questions.