GNYADA October 2014 Newsletter

To read these stories and get the latest news online, visit the GNYADA website at www.gnyada.com

For Dealer Principals / General Managers / Sales Managers The Newsletter A Publication of Greater New York Automobile Dealers Association

Dealers Travel to Washington – Push Auto Agenda 1

OCT 2014 Volume 24, Issue 6

HIGHLIGHTS

DCA Recalls Questioned page 2

Marketing Suspensions Violate Dealers’ Rights page 3

The legislation, which had a dozen bi-partisan sponsors when we arrived in Washington now has 91 co-sponsors from both sides of the aisle. From our area, Representatives Tim Bishop and Peter King have both signed onto the bill. Pending legislation would require dealers and rental car companies to repair all open recalls before a vehicle could be used as a loaner or rented. We addressed our concerns to the bill’s sponsor, Senator Schumer, and asked him to work with NADA to reach a reasonable and workable accommodation for franchised dealers. Lawmakers are seeking ways to balance the budget and eliminate deductions, and some have suggested limiting or eliminating the deduction for advertising expenses. NY area legislators are particularly sensitive to this issue and several told us that they would forcefully oppose any such measure. The delegation from GNYADA included Robert Vail, Chairman; Directors Louis Giordano, Nick Toomey, Brian Miller, and Gary Schimmerling; Next Gen Committee member Greg Vail; Mark Schienberg, President and Stuart Rosenthal, VP.

GNYADA Adds New Counties to Membership Roster page 4 NYIAS Recognized for Excellence page 6 NJ Charges Dealers of Used Car Deceptions page 7 Nassau Checking Dealers’ Toxic Materials SOPs page 8

GNYADA members joined dealers from across the country in the nation’s capital in September to participate in the annual NADAWashington Legislative Conference. We met with Senator Charles Schumer as well as several key members of the House of Representatives from our region. Our agenda included a number of issues crucial to auto dealers: Legislation drafted by NADA has been introduced in Congress (H.R. 5403) to nullify “Guidance” issued by the Consumer Financial Protection Board (CFPB) and to require the CFPB to be more transparent in its rulemaking. We raised this legislation and our concerns with the CFPB in each meeting with legislators, and we were generally well received.

Training to be the Best page 9

The Newsletter is published by GNYADA, a not-for-profit organization representing franchised automobile dealers in the New York metro area. 18-10 Whitestone Expressway Whitestone, New York, 11357

Dealer Hotline 718.746.5900 www.gnyada.com

The Newsletter • October 2014 1

2 GNYADA Adds New Board Members

At GNYADA’s annual meeting in June, members approved the slate of Directors, including two newcomers to the Board: Brett Saslow (Smith Haven Chrysler-Jeep-Dodge, Mitsubishi, and Mazda) and n

The new Board Members heard in detail about the important work of the Board, and their role in deter- mining the policies and direction of the Association. They have gladly accepted their responsibilities (which are many) and their privileges (consisting mainly of volunteering for hard work on behalf of all the dealers in our region). The Greater New York Automobile Dealers Association welcomes Brett and Jack, and welcomes back Jane Millman (Riverhead Dodge), who is rejoining the Board after a short hiatus.

Brett Saslow, Smith Haven Chrysler- Jeep-Dodge, Mitsubishi, and Mazda

Jack Weidinger (North Bay Cadillac, Heritage Jaguar, and Jaguar of Great Neck).

n

Jack Weidinger, North Bay Cadillac, Heritage Jaguar, and Jaguar of Great Neck

GNYADA Chairman of the Board Bob Vail welcomed Jack and Brett to a “new director orientation” recently, where he and Association staff updated them on all of the Association’s many services and ongoing projects.

DCA Retroactive Rule on Recalls Questioned In late July, the NYC Department of Consumer Affairs (DCA) “reinter- preted” its consumer protection law and became the only jurisdiction in the nation to say that selling used cars that were subject to open recalls (without making repairs first) was a deceptive practice. It also issued subpoenas to dealers demanding they produce very extensive records opportunity to explore a resolution of the industry’s concerns with this new retroactive interpretation. DCA agreed to our request and adjourned the subpoena deadline until 10/29/14. GNYADA has hosted conference calls with nearly a dozen attorneys who are GNYADA allied members and who represent dealerships with regard to the subpoenas. We are working to coordinate the industry’s response to DCA’s retroactive change in its interpretation of the law. 3 Attorneys WorkingWith GNYADA In addition to working with DCA,

GNYADA will ask for additional meetings with the Commissioner to ask DCA to revise its position and support a workable solution to address her concerns regarding used cars with open recalls for safety defects. GNYADA has already said it recom- mends, as a “best practice,” that deal- ers repair open safety recalls before selling used cars, but we do not sup- port or agree with the DCA’s position that such sales are a “deceptive prac- tice,” or that dealers are obligated to make those repairs on used cars, especially for vehicle brands for which the dealer does not have a franchise.

regarding used cars they sold in the last year that might have been subject to an open recall at the time. In addition, it sought information including how dealerships identify and repair (or pay for third-party repairs) those vehicles, contact infor- mation for buyers, and from whom the dealers acquired those used cars. GNYADA met with Consumer Affairs Commissioner Julie Menin in August and requested a delay in the subpoena return date to allow an

New Federal “Look-up”Tool NHTSA has launched a new online “tool” to help consumers and dealers identify specific cars and light trucks with “open” recalls. The new site is accessible on the SaferCar.gov website at either

www.safercar.gov/vinlookup or https://vinrcl.safercar.gov/vin/

We will continue to press forward on this issue and seek a resolution. If you have any questions, contact GNYADA directly at 718.746.5900.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • October 2014

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4 Hot Off the Press – 2014 Membership Directory

GNYADA’s 2014 Membership Directory has been sent to members. This yearly publication serves as an easy-to-navigate resource guide for your business and features a full listing of members, preferred vendors, and services offered by GNYADA. Also included is an expanded Hot Topics section, with guidance on Sales Tax Issues, Advertising Guidelines, Top OSHA Violations, Compliance Checklists, Healthcare Reform, Above Ground Storage Tanks, and other local, state, and federal compliance matters that impact your business. In addition, more than 30 advertisers who support the Association and the Membership Directory are featured. These advertisers offer products and services that are vital to dealerships. Bill Cordes will have additional copies available during his field visits. To obtain additional copies of the directory, contact the Association at 718.746.5900.

Marketing Suspensions Violate Dealers’ Rights 5

“fourth Type B violation within any twelve-month period.”

In most cases, dealers have gone to great lengths to follow AHM’s poli- cies. Although there are errors that may occur in dealer advertising from time to time, AHM would be hard- pressed to show that the dealer has fallen short of the standard required under New York law. If you have received a notice of sus- pension from AHM’s marketing pro- grams, we strongly recommend that you contact experienced motor vehi- cle franchise counsel to determine your rights under state law. The foregoing information is provided for educational purposes only and is not to be construed or interpreted as legal advice. GNYADA thanks Richard Sox, Esq., rsox@dealerlawyer.com , for the material for this item.

Although some Honda dealers received three or four notices within a year, the alleged violations did not occur within a 12-month period. That alone is a basis to challenge a proposed chargeback and suspension. New York’s franchise laws regulate suspensions from such programs. It offers strong protection against incentive denials or chargebacks and permits dealers to file an administra- tive protest or a lawsuit. The issue in any litigation over incentive denials or chargebacks will be whether the dealer’s incentive “claim was materially false or fraud- ulent or [whether] the dealer failed to reasonably substantiate the claim in accordance with the manufacturer’s reasonable procedures.”

American Honda Motor Co., Inc. (“AHM”) has been strictly enforcing its marketing guidelines, resulting in suspensions and steep penalties against Honda and Acura dealers. AHM has suspended dealers from its marketing allowance programs due to alleged violations of AHM’s poli- cies (e.g., advertising prices that are below invoice or using pictures showing a different trim than what is advertised). The marketing allowance program guidelines call for a suspension upon the “third Type A violation within any twelve-month period” or the

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • October 2014 3

6 $1.75 Million Penalty for Cash Reporting Failure

the company’s intentional failure to report cash transactions of more than $10,000 to the IRS allowed drug traffickers to launder their profits by buying cars. Cash Reporting Rules When dealers receive cash (or cash equivalents) of more than $10,000, they are required to file IRS Form 8300 with the IRS. Auto dealers may file Form 8300 electronically, using the Bank Secrecy Act (BSA) Electronic Filing (E-Filing) System. E-filing is a free, web-based system that allows businesses to submit meal breaks and claims that they post- ed California's break policy in work- places as required by law. Apple responded that employees often post- poned their meals for various reasons, including because they were, “having too much fun.” While the bulk of the employees affected by this lawsuit are in California, New York has similar laws on both of these points . Meal Breaks and Paychecks Every dealership employee who works more than six hours must be

A used-car dealer with two dealer- ships in Washington State has settled charges brought by the federal prose- cutor that it failed to comply with cash-reporting requirements. The dealer pled guilty to charges that it failed to file “IRS 8300” forms and agreed to forfeit $1.5 million and pay a $250,000 fine for its violations. In addition, as part of the plea deal, the dealer is entering into a corporate- integrity plan to ensure similar viola- tions don’t recur.

reports through a secure network.

Dealers must notify customers who are identified on a cash reporting Form 8300 no later than January 31 of the following year that their trans- action and information was reported to the IRS. More information, including extensive FAQs from the IRS, is available on the “dealer pages” of the GNYADA website at http://www.gnyada.com/dealers.

U.S. Drug Enforcement Administration (DEA) agents said

Class Action Alleges Meal Break Violations

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Employees who are suing computer maker Apple for labor law violations have been granted class action status, raising the stakes for the computer maker, as 21,000 current and former employees are now included in the suit. The employees claim Apple denied them scheduled meal breaks and failed to pay “final” paychecks in a timely manner when employees resigned or were terminated.

allowed at least thirty minutes for “lunch” between 11am and 2pm. Repeated violations can lead to fines of up to $500 per violation and up to 60 days in jail (misdemeanor). In addition, “final” paychecks must be paid on the regular payday for the final period. NY wage and hour rules will be covered at GNYADA’s Annual Labor Law Seminar in October. See the enclosed flyer for registration info.

Apple denies that its managers pre- vented employees from taking timely

GNYADA’s Territory Expands

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At the annual board meeting in June, the Association’s membership voted to include three additional contiguous counties in the lower Hudson Valley region. This allows dealerships in Putnam, Duchess, and Orange to benefit from the full array of membership services

that the Greater New York Automobile Dealers Association has to offer. There are about 30 dealerships that will be added to GNYADA’s ranks through this expansion, most of which are not currently served by other metro associations. Some of these

were already participating as associate members but will now have voting rights as full members. We welcome our new members and hope they will become involved in all we have to offer. We look forward to working them and serving them in as many ways as possible.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • October 2014

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Sales Up 11%

9 Don’t Rely on Lenders for Adverse Action Notices

in August 10

MARKET TO REMAIN STRONG

3 When you don’t get the customer financed either because no lender gives you terms that are acceptable to your dealership or because the customer, after negotiations, rejects your “final offer” of credit. Not offering the customer credit on the terms they request is also an adverse action. If the customer rejects your final offer, you haven’t given the customer credit on the terms they want. Non-compliance Can Be Costly Damages (including civil liability and punitive damages) and fines for not giving adverse action notices can be significant. Add to that attorney’s fees and costs to a prevailing con- sumer. Don’t forget that the AG, FTC, or CFPB (as applicable) may also seek additional fines and penalties. GNYADA thanks Randy Henrick, Associate General Counsel and lead Compliance Counsel for Dealertrack, Inc. for his contributions to this article.

Dealers frequently ask about Adverse Action Notices (AAN). Do I have to send them? (Yes.) Can I rely on the lender’s adverse action notice? (No.) To which customers do I have to send notices? (Read on—that’s not a yes or no question!) Under federal law, dealers must give AANs to a consumer if he or she is turned down for credit or offered credit on terms less favorable than what he or she had sought. A dealer must provide the AAN in writing, within 30 days of receiving a credit application. 1 When you take a customer’s credit application but do not send it to any lender, typically because the cus- tomer is credit challenged and you know you won’t get them financed. 2 When you unwind or re-contract a “spot delivery” deal. You are virtual- ly certain to get less favorable terms for the consumer in the new deal. Who Must Receive an AAN? Send an AAN:

Metro area sales rebounded 11% in August compared with 2013 after a slow July. That’s a predicted annual total of more than 500,000 units, an increase of around 4% over last year, according to figures highlighted in the September issue of New York Auto Outlook , published by GNYADA. 1 Area new vehicle market increased an estimated 11% in August of 2014 versus a year earlier. U.S. market was up 5.6%. 2 Area market increased 3.9% during the first eight months of this year versus a year earlier, compared to 6.1% nationally. 4 Light truck market share rose to 51.8% thru August of this year, up 4.6 points . 5 Honda, Toyota, Nissan, Jeep , and Ford were the new vehicle market share leaders during the first eight months of 2014. 6 Area used vehicle market fell 3.5% for the first seven months of this year. September Auto Outlook Highlights: 3 The market is predicted to improve 4% from 2013 to 2014.

Information Safeguards and Identity Theft Protection OCTOBER 23, 2014 10:00am -1:00pm Center for Automotive Education & Training Presented by: Avoid hefty penalties for data security breaches and sales to identity thieves. A data security breach may be your dealership’s biggest prospective liability. Learn the federal and state laws and regulations relating to a dealer’s obligations to safeguard and securely dispose of customer information and to verify a customer’s identity. To register email carole@gnyada.com Randy Henrick, Associate General Counsel & Lead Compliance Counsel for Dealertrack, Inc.

Save the Date

Please visit www.gnyada.com for the full Auto Outlook report.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • October 2014 5

New York Auto Show Recognized for Excellence

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Here’s what the judges had to say about the New York Auto Show tak- ing home the gold in three categories.

efforts, and we are grateful for the acknowledgement,” said GNYADA President Mark Schienberg. Looking Ahead to 2015 Riding on the coattails of 2014’s huge success, Auto Show staff and GNYADA President Mark Schienberg met with West Coast manufacturers in early August to discuss their plans for 2015. communications executives from Toyota, Lexus, Scion, Hyundai, Honda, Acura, and Kia. All gave indications that they are bringing big news to the Big Apple next spring, including a wide range of world and North American vehicle debuts. Following the individual brand meetings, NYIAS hosted its annual exhibitor meeting and golf outing where more than 110 OEM, sponsor, and exhibit company personnel participated in discussions on what succeeded at the 2014 Show, and their big plans for exciting announce- ments and exhibits 2015 New York International Auto Show. Attending the one-on-one meetings were top-level marketing and

Best Overall Show

As owners of the New York Auto Show – North America’s oldest and largest new car marketing event – GNYADA’s main objectives are to build excitement, enhance auto- makers’ marketing efforts, and drive showroom traffic. In recognition of its success in these areas, GNYADA has been awarded with three prestigious E.X.C.I.T.E. Awards from EXPO Magazine. The New York Auto Show won Best Overall Show, Best Consumer Event, and Best Marketing Collateral. “Recognition like this brings enor- mous prestige and enhances the Show’s credibility with the media and industry,” said John LaSorsa, New York Auto Show chairman. “This ‘stamp of approval’ from an unbiased source helps us stand out from the crowd.” “As event producers, we strive to make the experiences for our visitors and exhibitors the best that they can be. These awards validate those

“The sheer complexity of what the New York International Auto Show pulled off with its massive—albeit well-targeted—marketing campaign and its great attendance is evidence that live events can shape an indus- try and a community.” “More than 100 exhibits from all the big car companies, more than 1 million attendees, 63 press confer- ences, vast social media impres- sions and over $263 million in eco- nomic impact. You can’t get much more impressive than that.” Best Consumer Event

Best Marketing Collateral

“The New York International Auto Show used a well-orchestrated set of materials across multiple media to drive more than 1 million people in the New York area to the show at the Jacob K. Javits Center.”

NYS Limits Health Insurance Increases

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The New York State Department of Financial Services (DFS), which includes the old Insurance Department, is holding down health insurance premium increases for next year. The average health insurance rate increase next year should be just under six percent in New York State.

The rates for 2015 were set after reviewing proposals from insurers. The insurance companies had requested, on average, increases of about 13 percent. Predictably, some insurers complained such “severe” limitations on increases would harm their companies.

On the individual market, the average increase will be about 5.7 percent, rather than the 12.5 percent requested by insurers. For the small group mar- ket, the average increase will be 6.7 percent, down from 13.9 percent requested by insurers.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • October 2014

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GNYADA’s Stuart Rosenthal Stepping Down

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national bar association for attorneys who represent dealerships.

eral major revisions of the New York Franchised Motor Vehicle Dealer Act and numerous compliance and regulatory matters on local, state, and federal levels. Dealers often relied on his broad knowledge for practical answers to knotty problems. Prior to joining the Association in 1995, Stuart was an Assistant AG in the NYS Attorney General’s Office. Before that, held several legal and policy positions at NYC Department of Consumer Affairs. He is also of Counsel to the law firm of Rosenthal & Markowitz, LLP in Elmsford, New York. Stuart was a member of NYC Mayor Rudolph Giuliani’s Task Force on Automobile Insurance, served as President and a Trustee on the Board of the Pocantico Hills Central School District, and was the Deputy Town Supervisor for the Town of Greenburgh. He is a member of the Board of Directors of the National Association of Dealer Counsel, a The complaint calls for the dealer- ships to cease the deceptive practices and to make reparations to affected customers. The dealerships were a Hyundai and a Mazda dealership. It was reported that spokesperson for Mazda said that the dealership is an independently operated business and it is up to the dealership to work with the state of New Jersey. NY Follows Similar Rules This complaint by the NJ state authorities follows a settlement of a similar case in NY over the summer. Eight new-car dealerships under common ownership paid $1.8 million to settle claims of deceptive sales tactics.

Stuart worked hard on the “Any Car Store” legislation that sought to pro- hibit non-franchised dealers from selling new vehicles. He also refined GNYADA’s “lien release legislation” and broadened broker requirements. He drafted major revisions to the Association’s bylaws over the course of his tenure here. Although Stuart may not be in the office every day, his influences are far reaching and he will continue to have an impact on dealerships. We wish him luck in his future endeavors and know our paths will cross and he will be there when we need him. Many of his responsibilities will be handled most capably by Director of Dealer Services, Susan Bieber, Esq., who has worked with Stuart for the past nine years at GNYADA. NYS Advertising Guidelines and Vehicle and Traffic Law contain provisions similar to NJ: 1 Certain types of damage (storm damage, salvage titles) must be disclosed before selling a vehicle; 2 Prior use as rental, taxi, police, or driver education vehicle must be disclosed in ads and before sale; 3 All costs to be borne by the buyer, except tax, title and tags must be included in an advertised price for a specific vehicle; 4 Used cars cannot be advertised as “new”; 5 Advertised prices should disclose the full price of the car, and any qualifications for advertised rebates must be clearly disclosed.

After 18 years, Stuart Rosenthal is stepping down as Vice President, Legal Affairs for the Greater New York Automobile Dealers Association (GNYADA). But he is not leaving the automotive industry entirely. He is going into private practice where he will focus on automotive compliance. In addition, he will be counsel to Bass, Sox & Mercer.

At GNYADA, Mr. Rosenthal focused on legislative matters, including sev-

NJ Charges Dealers of Used Car Deceptions

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The NJ State Division of Consumer Affairs and the NJ AG have charged two dealerships with deceptive adver- tising and sales practices, in connec- tion with offering previously rented or damaged cars as new, and adver- tised already-sold or leased vehicles that were no longer available. Additional complaints against the dealership include failing to add legally required statements in news- paper ads explaining what costs the vehicle price included, as well as fur- ther costs that would be charged to the buyer. The advertisements failed to detail and clarify qualifications for any discounts, the state said.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • October 2014 7

James E. Farley Remembered

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A vocal member of the Board, he was involved in many decisions facing the retail auto industry in New York throughout the past quar- ter century. He was involved in many of GNYADA’s key events from the groundbreaking ceremony of GNYADAWhitestone headquar- ters in 1986 to the opening of the Center for Automotive Education & Training in 2005. Jim was the owner of G/C Volks- wagen of New Hyde Park, NY. As Chairman of the New York International Automobile Show Committee when the Show moved from the Coliseum to the newly con- structed Jacob K. Javits Convention Center, he was instrumental in help- ing turn the Show from a popular regional event into the globally important affair that it is today. Nassau County Department of Health inspectors have visited deal- erships to ensure that the dealership has posted its Toxic and Hazardous Material Storage, Handling and Control “Standard Operating Procedure” (SOP). Article XI of the Nassau Public Health Ordinance provides that no one can store toxic or hazardous materials without: 1 Establishing an acceptable SOP for handling of those materials, and 2 Posting a copy of that SOP in all areas where hazardous materials are used and/or stored. 17

He worked hard as a member of many GNYADA committees, including Education, Government Relations, Long Range Planning, and Public Relations, to promote, support, and defend the industry that he loved. Jim was a staunch advo- cate for dealers’ rights, especially when it came to the Franchise Protection Law in New York State. He battled his franchisor in a suc- cessful effort to establish dealers’ rights for proper warranty reim- bursements. On behalf of the Board of Directors, fellow GNYADA members, and staff, we express our heartfelt condolences to the Farley family for their loss.

GNYADA sadly notes the passing of Jim Farley on Friday, August 22, 2014. Mr. Farley joined the GNYADA Board of Directors in 1981 and was instrumental in rein- vigorating the Association to reflect the rapidly changing needs of the retail automobile industry.

Arthur La Fres 16

Nassau Checking Dealers’ Toxic Materials SOPs

We are saddened to inform you of the passing of Arthur La Fres, 81, former owner of La Fres Ford on September 29, 2014. He was a member of GNYADA from 1986-2002. Mr. La Fres is survived by his nieces and nephews and was preceded in death by his wife. La Fres Ford was the largest supplier of Ford taxis for NYC. On behalf of the Board and members of GNYADA, we express our heartfelt condo- lences to the La Fres family and their friends for their loss.

the Service and Parts departments and wherever else the dealership stores hazardous or toxic materials. Aboveground Storage Tanks Article XI is the same section of the law that requires permits for above- ground storage tanks, and regulates the issuance of those permits. Permits are not transferrable, and new owners of facilities need to apply for a new permit. They may operate under the existing permit until such time as the new permit application has been granted or denied. For more information on how to get your storage tanks “permitted,” call Susan Bieber at GNYADA, 718.746.5900.

Those notices should be posted in

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • October 2014

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Dealership Data: Be Empowered, Not Overwhelmed

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Content Marketing Is a Communication Channel and a Data Tool

your own market. The big questions are, how much of that data is actual- ly relevant and do you know how to apply it effectively? Drowning in numbers that don’t paint a clear pic- ture can be frustrating and counter- productive. Be Empowered, Not Overwhelmed The good news is that you don’t have to manage multiple data sources and tools by yourself. Choose to partner with someone who will do the hard analysis, testing, and man- agement for you and who will share the detailed reporting and results so you can build an informed business strategy. Data Driven Sales Strategies Learn how to use your customer information to increase profits. October 14 . Integrity & Profitability of F&I Learn to maintain compliance while generating revenue in a legal, ethical manner. November 12 . The Sales Process – REDEFINED Meet the Millennials: These con- sumers will change the dealership landscape. November 18 . All 2014 classes are posted on www.autoedcenter.com/education , the Center for Automotive Education & Training’s website. For more information about our classes call Carole Rogner at 718.640.2012.

Everyone in marketing is talking “data” – why you need it, where to get it, how to protect it, who should manage it, and on and on. There is so much data available that it can be overwhelming. Here is some help getting started. You have customer information, sales data, service records, and other valuable data in your DMS and/or CRM system. Effective marketing will come from a continually updated and appended intelligent database. Too Much of a Good Thing More data is not necessarily better. You already have access to reports from the industry, your OEM, and The Greater New York Automobile Dealers Association knows that educating and training your staff is key to a successful dealership. To maximize that edge, GNYADA offers quality training for dealership staff. The 2014 courses offered by GNYADA play a critical role in preparing dealership professionals for the competitive challenges of the automobile retail industry. Our programs train new and seasoned professionals to improve operations 19

While the goal of most content mar- keting is to drive consumer engage- ment, studying that engagement can help drive the rest of your marketing strategy. Analyzing the content that resonates most with your audience helps you deliver the right message to the right customer at the right time. The content for this item was provid- ed by Naked Lime ( nakedlime.com ). For more info, contact Jill Levy at jlevy@nakedlime.com or 516.640.1855.

Training to be the Best

and profitability within each department of the dealership.

Our team of instructors have come up with brand new classes and have updated existing classes to meet the demands of doing business in today’s market place. New classes include:

Look for GNYADA’s Fall 2014 Seminars calendar for all of the Center’s September-December offerings.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • October 2014 9

Are Your Employee Benefit Plans in Compliance?

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can be described as “rebuilt” or “remanufactured,” and limit use of the term “factory rebuilt’’ to certain used parts. The Guides also specify acts and practices that are unfair or deceptive under the FTC Act and are thus pro- hibited. The Guides prohibit misrep- resenting: that a used part or assembly is new; the amount of use a part or assembly has had; n n the identity of anyone who worked on a used part or assembly after its removal from the original vehicle; the condition or the amount of work done to it after the part’s or assembly’s removal from the original vehicle. n n FMLA Compliance Since 1993, employers with more than 50 employees have been required to provide up to 12 weeks of leave to qualifying employees under the Family Medical Leave Act. Employers must have FMLA com- munications, eligibility, and medical certifications to support their actions in this area. COBRA Compliance Employers must provide to some for- mer employees, retirees, spouses, for- mer spouses, and dependent children the right to continue health insurance coverage at group rates. Employers must provide a variety of notices to former employees regarding this cov- erage, including a Summary Plan Description, General Notices, and Election Notices.

The Federal Trade Commission (FTC) has updated its Guides for the Rebuilt, Reconditioned and Other Used Automobile Parts Industry (Used Auto Parts Guides). The Used Auto Parts Guides address advertis- ing, sale, and installation practices regarding previously used motor vehicle parts and assemblies of parts that contain previously used parts, such as engines and transmissions (“used parts”). The Used Auto Parts Guides require that used parts must be clearly and conspicuously identified as such in advertisements, on packaging, and if the product appears new, on the prod- uct itself. Further, the Guides prohibit misrepresenting the identity of the used parts’ rebuilder. They limit what Compliance with federally mandated employee benefit programs can be challenging. GNYADA’s Insurance Brokerage is working with Total Administrative Services Corporation (TASC) to help dealers comply. TASC saves time and money by streamlining compliance and avoid- ing penalties associated with non- compliance. Three key areas of where TASC can help dealers are: ERISA Compliance ERISA is the 1974 federal law that regulated Group Sponsored Benefits; it is overseen by the Department of Labor (DOL) and the IRS. DOL is auditing companies, including their ERISA Mega-Wrap Plan Documents, ERISA Summary Material Plan Descriptions, Form 5500s, and Health Care Reform Notices for Group Plans. 21

TASC can assist in any of these areas. It can provide all the required administration procedures, DOL Forms, Health Care Reform Notices, Plan Document and Summary Plan Description Notices, Disclosure and Policy Guidance, as well as employ- ee eligibility determination. In addi- tion, TASC will hold dealers harm- less if they make an error that results in an employer being penalized. If you would like to set up a meeting with a representative of TASC to learn more about their services, please contact Michael W. Conway at the GNYADA Insurance Brokerage, mconway@gnyada.com , or 718.746.8100.

FTC Updates Its Used Auto Parts Guide

The terms “remanufactured,” and “factory rebuilt” should be used only if the product was rebuilt “at a facto- ry generally engaged in the rebuild- ing of such products.” The Guides now also apply to used tires. The amendments became effective on August 22, 2014.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • October 2014

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Procedures Help Keep Plate Orders on Track

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If it seems to take too long for a box of plates that you ordered from DMV to arrive, it might be a good time to review your own practices and pro- cedures. Errors on your DMV paper- work may delay those shipments. For example, did the salesperson neglect to return plates that were issued for a deal that was later canceled? Were the plates returned to the biller, but not issued to the next deal that required new plates? Managing Plate Inventory Plates (passenger, commercial, or in- transits) that are assigned to your dealership are inventoried by DMV and tracked from delivery to a deal- ership through the registration process. Dealers may only obtain a new batch of plates when all plates in the prior batch have been used to register vehicles. If you request a The one-year waiting period to get into NYS DMV’s Dealer Plate Issuance Program (DPIP) has been eliminated for some dealers. GNYADA had urged DMV to make it easier for dealers to participate in this essential program, and now DMV has adopted new regulations to expedite access to the DPIP. New provision: Any dealer who has been registered in New York or any other state for at least one year may apply to participate in DPIP. The Commissioner may waive the one- year waiting period for a dealer adding another dealership if the deal- er has a satisfactory participation record in the DPIP within the last five years. A newly licensed new vehicle dealer may also apply.

new box of plates before you submit paperwork for all of the plates in a prior box, you will raise red flags at DMV. Failure to follow DMV’s procedures may result in delays in filling plate orders and lead to violations result- ing in fines and penalties. Follow the steps below to avoid delays and denials of new plates for your dealership. Plate Procedures to Avoid Delays Here is a checklist of procedures that you can follow to avoid delays and violations from DMV: Submit all title and registration paperwork to DMV within five calendar days from the date you deliver a vehicle to your customer. When you prepare to send deals to the bank, separate the title and n n Previously, new dealers were required to obtain plates from a local office or outside service while wait- ing out the mandatory one-year wait- ing period. As we reported in the last The Newsletter , this has been a very active year for buy/sells. Waiver of this waiting period has been a consis- tent item on GNYADA’s agenda in meetings with DMV. This business-friendly rule change is a welcome complement to the Provisional Dealer License approved by DMV last year. We are pleased to report that dealers whom GNYADA has assisted to obtain facility licenses also have gained immediate entry into the DPIP. GNYADA thanks the DMV for its continuing efforts to ease dealership operations.

registration paperwork and put that on a transmittal. Send the transmittal to your registration service (such as

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GNYADA’s DMV-DIRECT ) the same day in order to meet DMV’s five-day rule. If paperwork is returned to you, make the required corrections and return it to your service immediately. Periodically request a copy of your inventory list from Vehicle Safety (DMV) and review it to ensure that you have not missed any plates. Assign one person to be responsible for tracking all dealership plate inventory. Keep a DMV-approved plate log. Complete a plate log daily to address any “missing plate” issues. DMV-DIRECT Does That, Too! Yes, DMV-DIRECT does out-of- state work, including registrations, plates, and titles. We process Connecticut work in-house (we are the only agency in NYS with that ability). We also have a shorter turnaround than most servicers. When comparing our fees to the others around us (you know who we are talking about), our fees are lower in many cases – by as much as $45 per transaction. We process requests for all states. If you would like to know more, call DMV-DIRECT at 718.747.0400 and ask to speak with Patti, Raj, or Jean Marie. We will be happy to give you all the information.

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • October 2014 11

EMPLOYMENT CORNER

A New Model

24

GNYADA’s Employment Corner is a free recruiting and job placement service that lists qualified candidates for positions at dealerships. If you have a position to fill, call 718.640.2012 .

FILE #

POSITION

RESIDES IN

OFFICE

Biller

Farmingdale

725

Bookkeeper

Manhattan

726

Clerical

Bethpage

727

Congratulations to GNYADA Board Member Leon Geller and his wife, Muriel, and to their son, Russell Geller, of Beck Chevrolet and his wife, Allyson, on the birth of grand- son Jason Michael Geller August 11. Grandparents, parents, and sister Melanie are thrilled and we wish them all much happiness.

Controller

Franklin Square

728 729

Whitestone

Receptionist

College Point

730 731

Commack

SALES

Annual Labor Law Seminar October 15 or October 21 9:30am -12:30pm Center for Automotive Education & Training

Customer Relations Manager

Valley Stream

732

Sales

Brooklyn

733

SERVICE

Save the Date

Service Manager

Centerport Douglaston

734 735

Every day there are new headlines from a government agency directing businesses to change their practices regarding wages or working conditions of employees. The Employee Relations Plan’s labor counsel, Jim McGrath, Esq., will be joined by HR experts from the compliance company KPA to help deal- ers understand current wage and hour issues, leaves of absence rules, how to successfully work with and supervise millennials, and other timely employ- ee relations issues impacting dealers. Call Phyllis at 718.746.5900, or email to her at PhyllisA@gnyada.com to register for either day of this event.

Service Technician

Lindenhurst

736

Contact Us: 18-10 Whitestone Expressway | Whitestone, NY | 11357 Dealer Hotline: 800.245.4640 GNYADA Headquarters: 718.746.5900 E-Mail: assistance@gnyada.com DMV-Direct: 718.747.0400 GNYADA Insurance Brokerage, LLC: 718.746.5900 New York International Automobile Show: 718.746.5300 Center for Automotive Education and Training: 718.640.2000

The information contained in this newsletter may not be relied upon for the avoidance of tax penalties. Readers are urged to discuss any issues raised in this newsletter with their legal and tax professionals. Printed on FSC certified material. All original material except where noted. © GNYADA 2014

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • October 2014

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