W - AutoIMS



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Westlake Financial Services

Auction Guidelines – 2016

Communication

• ALL vehicle specific communication with Westlake must only be through AutoIMS notes. All other communication should be thru email only.

• Documentation should be notated in AutoIMS notes for recon, transport, title statuses, issues, problems, delays.

• All HOLDs will be documented in AutoIMS.

• All charges must be clearly documented as they are incurred and separated out in AutoIMS - or they can’t be paid. No charges should be listed as “Miscellaneous.” All charges must appear in AutoIMS by day of sale or they will not be paid.

• No reconditioning charges will be paid after sale day on sold vehicles.

• A/Rs should be submitted per vehicle within 3 days, e-mailed to remarketing@. Pending A/Rs can’t be deducted from other sale proceeds. Redemption invoices should be e-mailed the day the vehicle is redeemed.

Assignment / Transportation

• Assignments should be acknowledged / accepted within 24 hrs of receipt with an ETA posted in AutoIMS notes.

• Any transport charges that total over $175 must be approved by Westlake prior to transport and must be documented in AutoIMS.

• Note all assignments, assignments accepted, firm ETA’s, and vehicle secured dates in AutoIMS.

• Secured date must be updated in AutoIMS the day of vehicle arrival.

• Notes should be entered in AutoIMS documenting all calls, dry runs, vehicle run condition, and mechanical cause for non-runners; send AutoIMS Note to Westlake regarding any agent issues including overly restrictive pick up times. Transport charges in AutoIMS must indicate pickup location city.

• Transport should be by tow truck; vehicles should not be driven in transport or be driven back/forth to offsite shops. Tow only.

• All vehicles should be checked in and confirmed at Auction within 5 business days of transport authorization. In addition, the Auction will be responsible for a $12 daily storage rate for all storage fees incurred 10 days or more following assignment of pick up order.

• Do not front any fees / costs to outside vendors unless specifically authorized by Westlake in AutoIMS notes.

Arrival / Check-in / CR Process

• Neatly apply a Westlake sticker to the upper center of the windshield on all newly arriving vehicles. (see diagram)

• Check-in sheet at the front gate / drop area should note all vehicle damage and any missing items.

• Upload complete Condition Report into AutoIMS within 2 business days; should cut key or request key approval within 3 business days of arrival.

• The CR’s and Vehicle Grades need to be 100% accurate. Nothing missed. But, not overwritten. Mechanical issues, BWC results, and negative brands/announcements should be reflected in the Vehicle Grades.

• Condition report must contain the following:

1. All CR’s must indicate vehicle sub-model. If sub-model is not available enter “base.”

2. Miles.

3. “Drivable” field must be completed in AutoIMS and reflect the vehicles most up-to-date status. Drivable means drivable across the block.

4. If FRAME/STRUCTURAL/UNIBODY is noted, then CR must be clear on damage location.

5. If FLOOD or BIOHAZARD is determined, there must be specific photos and back up on the CR to support the announcement.

6. If TMU is noted, then there needs to be a note in AutoIMS indicating the reason.

7. Odometer status (if an issue, need to know ‘rollback’, ‘inop’, ‘will not light up’, etc.). If ODO is inop, provide more detail on the ODO issue in the CR or in the Autoims Notes.

8. Complete photos (no less than 8 pictures) with sufficient lighting and detail to reasonably determine condition visually. The pictures should have good contrast, be in focus, and not be too close up or too far away (see diagram):

▪ All 4 corners of vehicle (pics 1, 2, 3, 4)

▪ Interior photos, minimum of 2, after de-trashing vehicle (pics 5, 6)

▪ Odometer (pic 7) ODO must be lit up

▪ VIN (pic 8)

▪ Clear pictures of all body damage and missing items over $400 - should be taken AND not TOO close up.

▪ Missing engine parts or engine apart - should be taken so it’s plainly clear what’s missing

▪ For pickup trucks, a photo of the inside of the bed – needs to show condition of the bed

▪ Photos of any major missing items such as radios or third-row seats – should be clear what item is missing

▪ Photo of undercarriage showing missing spare tire – needs to clearly show empty area

▪ Photos of undercarriage showing evidence of rust and corrosion – needs to clearly show rust damage

▪ FRAME – photo the FRAME issue

▪ Pictures in AutoIMS must be updated post-reconditioning

▪ Pic1 should show complete front and complete left side

▪ Pic2 complete left side and complete rear

▪ Pic3 complete rear and complete right side

▪ Pic4 complete right side and complete front

▪ Pic5 should be taken from right side with front door open; should show front interior arear, seats, dash, column, carpets

▪ Pic6 should be taken with rear door open should show rear interior area, seats, carpets

▪ Pic7 should clearly show odometer in miles

▪ Pic8 should clearly show vin – either from the dash or from the door

9. Note missing stereo or battery.

▪ If the condition report does not meet ANY of the above requirements, Westlake expects the CR fee to be waived.

Reconditioning

▪ If a vehicle is on HOLD in AutoIMS, no reconditioning of any kind should be done, including BWC inspections. No charges will be paid other than the basic condition report.

▪ All reconditioning requires approval, except for the items listed below:

1. Steel keys under $100; Vat/chip/programmed keys under $175. Keys should not be cut if major components such as engine, transmission, electrical components or any other critical parts are missing, unless prior authorization is given; keys should be easily accessible for the dealers when previewing inops and drivables.

2. Batteries should be replaced ONLY if the battery will not hold a charge. Maximum charge of $65 (incl labor and core) without approval. We expect to be able to start all vehicles during preview day without a jump box.

3. Alarm, breathalyzer or GPS removal – remove if necessary to make vehicle drivable; maximum charge $65 (including labor) without approval.

4. Tires - ok to replace if it will not hold air and cannot be repaired, used tires preferred. Maximum charge of $40 each (including labor) without approval. Higher charges must be explained / approved in AutoIMS. When requesting approval, you must note WHY. Include repairable status and status of the spare.

5. Wheel covers - ok to replace when missing. Max charge of ($50 per set / $15 per single hubcap) (up to four - incl labor) without approval. Use cheapest, non-factory.

6. Gas - 2 gallons of gas up to $10 total, and only if absolutely necessary

7. Linkage reconnection charge is limited to $35.

▪ Oil / Fluids - no oil changes; no topping off fluids. All fluid requests must be through AutoIMS.

▪ Inop windows should be forced all the way up or the window must be covered with plastic sheeting to protect interior from weather. This should be done at no charge. This needs to be done upon ARRIVAL, not late in the cycle.

▪ Inop units – MUST do a trash clean out on ALL inop vehicles.

▪ Drivable vehicles - full detail should be performed on all vehicles.

▪ Auction-to-auction transfers should only receive a wash & vac; no additional recon without approval.

o No admin, storage or redemption fees should be incurred if the vehicle was run in at least one sale at the originating auction.

▪ If unit is still inop after battery, keys or alarm removal, it will require a BWC inspection regardless of Miles. No BWC inspection should be performed on vehicles with obvious mechanical issues like engine locked, heavy collision damage, major missing mechanical parts, etc.

▪ There should be only one BWC inspection / mechanical check charge per vehicle. No additional check and advise charges are allowed beyond the BWC inspection charge - without approval. An over miles, inop mech inspection should be charged at same BWC inspection rate.

▪ A check and advise fee with proper documentation/reason should be the same price as the BWC fee. We wouldn’t pay a BWC inspection charge if all a unit needs is a battery, key, alarm removal etc.

Sale

▪ Westlake adheres to the most recent revision of the NAAA National Arbitration Guidelines.

▪ Westlake vehicles (drivable or non-drivable) must be grouped together and run in consecutive run order, including inops. Rerun units should be spread throughout the run.

▪ All sale vehicles must be prepped and ‘on spot’ 24 hours prior to sale.

▪ Sale day washes must be done on all vehicles at no charge.

▪ Marketing

1. Signage should include banner in lane, BWC poster in lane, Dealer Loyalty poster in lobby; vehicle staging should be marked by a Westlake flag.

2. Create promotional flyer for the sale a week ahead of auction date and email to Auction Rep.

3. A Westlake run list should be produced that includes promotional flyers and any auction specific Westlake info.

▪ On line sale photos must be of superior quality and must be taken post reconditioning. If posted after run, the vehicle must be clear of all sale day numbering/writing. The photo must include an image of the BWC sticker (if applicable).

▪ AutoCheck reports must be run at least 24 hours prior to sale and AutoIMS must be updated with detailed results. E-mail AutoCheck reports to Westlake home office when results indicate TMU, Flood, Salvage, or Lemon Law. AutoIMS notes must be updated when an AutoCheck report is e-mailed to home office, indicating the reason and date sent.

▪ Auctions are NOT to run KSR’s; Westlake will supply them

▪ Sale units should be loaded into auction’s on-line system as soon as possible; run list shouldn’t be lumped with other sellers; logo / promos must be shown.

▪ Floors / Offers:

1. All floors will be documented / accepted in AutoIMS. No vehicle should be sold below the Westlake floor.

2. All bids not meeting the floor value should be made into offers and communicated to Westlake and confirmed by email or AutoIMS.

3. Only cleared vehicles should be set for sale, per the “Open Date 1” field in AutoIMS.

4. Vehicles should be set in next available sale unless a date is indicated in the AutoIMS “Open Date 1” field. The Open Date field takes priority.

▪ Announcements for inop units should indicate if engine runs and if trans engages. Include the reason unit is non-drivable.

▪ Auction must supply Westlake Auction Rep a copy of the block, sale and expense.

▪ Announcements must always be clear and per Guidelines. If possible, don’t abbreviate and don’t duplicate announcements.

Post Sale

▪ Sale proceeds on titled vehicles should be sent electronically within 24 hours along with batch report and sale backup documentation which contains Westlake Account numbers associated with the transmittal. Westlake expects all sale day proceeds to be received by month-end via ACH.

▪ The auction’s post sale report should be sent to Westlake immediately following each sale, including:

o Total auction volume and % sold

o Total fleet volume and % sold

o Total bid badge count

o Sale and expense detail summary

o On-line bidding activity summary

o List of who ran in front, behind, next to, and how many for each

▪ All no-sales should be posted immediately to SmartAuction / OVE / DealerBlock / AuctionPipeline for a period of 7 days unless instructed otherwise.

▪ All vehicles sold on-line, whether in lane or out, must be properly identified in AutoIMS.

▪ All vehicles sold on SmartAuction / OVE / DealerBlock / AuctionPipeline, etc. must include a note in AutoIMS with sold date and amount.

▪ Auctions must provide an electronic buyers list. The list must include buyer contact detail.

Buy With Confidence (BWC) Guidelines

BWC Program

The BWC program grew out of our need for a CR that more accurately reflected vehicle mechanical condition. These improved CRs provide more complete vehicle information and facilitate improved recon and valuation decisions. The program allows for a 3-Day Guarantee for the drivetrain (engine, transmission, transfer case, differential), frame, odometer, and title. This provides for greater buyer confidence in Westlake vehicles.

BWC Requirements

▪ A Condition Report must be uploaded to AutoIMS within 2 days of vehicle arrival (excluding weekends and holidays).

▪ For all units under 135k miles, auction must perform a BWC inspection and complete the multi-part BWC form.

▪ BWC inspection must be performed as part of the CR process at the time of arrival, not rushed at the last minute as part of sale preparation.

▪ No BWC inspection should be performed on vehicles with issues like engine locked, heavy collision damage, major missing mechanical parts, etc.

▪ No inspection should be performed on vehicles on HOLD in AutoIMS.

▪ If the inspection determines that repairs are necessary, a repair estimate must be created and details must be entered in AutoIMS notes. Westlake will approve / deny recon request through AutoIMS notes.

▪ The CR must be amended to include the pertinent details from the BWC inspection. Passing vehicles must show a 3- or 7-day guarantee under “Announcements”. Failing vehicles must show the condition for failure under “General Remarks”. This final amended CR must be uploaded into AutoIMS. This update must be completed within 4 days of vehicle arrival (excluding weekends and holidays).

▪ Enter the BWC inspection date under “Repairs Completion Date” in AutoIMS.

▪ The BWC Gold program applies to 2010 model years or newer and 100,000 miles or less, no frame / structural / unibody damage. Place the BWC Gold sticker over the bottom right corner of the BWC 7-Day Guarantee sticker (refer to diagram for sticker placement). The announcement should show as “BWC Gold – 7-Day Drive”.

▪ Place a BWC 3-Day Guarantee sticker on the upper passenger side of the windshield (refer to diagram for sticker placement) for any vehicle that passes inspection and is being sold BWC- 3-Day Drive. The sticker / hang tag must be applied at least 24 hours before sale. The auction is responsible to ensure that the stickers remain on the vehicles through the time of sale.

▪ These units have a 3-Day mechanical warranty on the drivetrain only. The announcement should show as “BWC – 3-Day Drive”.

▪ If the sale is arbitrated, the auction owns the vehicle, even if the defect was not cited to or existing at the time of the inspection. This includes arbitrations specifically related to drivetrain (transmission, engine, transfer case, differential), frame, odometer and title issues.

▪ If an inspected vehicle is arbitrated for a frame/structural damage, title or odometer issue, the auction owns the vehicle even if it was sold ‘AS-IS’. The auction won’t be held responsible if the frame issue was not reasonably detectable.

▪ If the program requirements are not met, the associated fees should be waived.

▪ Program materials are available through Graphic Solutions. You need the BWC 3-part Mechanical Inspection sheet, the BWC 3-Day Guarantee windshield sticker or hang tag, BWC 7-Day Guarantee windshield sticker and the BWC Gold windshield sticker.

▪ AutoIMS notes are to be updated with inspection results. Please include “Pass” or “Fail” and reason. Also include the repair estimate.

▪ Detail on engine / transmission / 4WD (‘crank no fire’, ‘bad engine’, ‘bad trans’ not sufficient; ‘blown head’, ‘low compression’, ‘trans slips’, ‘upper or lower engine noise’, ‘loud / low engine knock’ are better).

▪ For INOP vehicles, note if the engine runs and / or the transmission engages.

▪ The “General Remarks” section must be updated with: “BWC Pass”, “Fail” and reason.

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Picture examples:

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Examples of BWC inspection results Note in Autoims:

BWC 3 Day Drive complete and passed

BWC 3 Day Drive complete and failed, transmission clunks and slips est to replace $1914.20 - unibody damage R apron

BWC FAIL-AS IS NO ARB AIR BAG LIGHT ON (UNABLE TO READ CODE) $700 TRANS HARD SHIFTING 2 T0 3 GEARS $1300 UPPER ENG NOISE VALVE TRAIN NOISE & ROUGH IDLE $1400; right apron damage frame

BWC inspection results example showing that Announcements and General Remarks have also been properly updated:

Announced Conditions : AS/IS/STRUCTURAL DAMAGE

General Remarks: FAIL - CLUTCH SLIPS $1200;MULTIPLE AIRBAG CODES $1000

Auction Note:

BWC FAIL- clutch slipping, replace clutch $1200, airbag light on/multiple codes-would have to go to dealer to further diag codes $1500

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