GNYADA November 2019 Newsletter

Senator Holds Auto Broker Roundtable

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several dealers from the Greater New York Region also participated in the roundtable. Other attendees included representatives from the broker and leasing industry. There were direct exchanges with the brokers where GNYADA and its partners were loud and clear that brokers face little or no oversight on how they operate in comparison to the intense scrutiny of new car dealers. Additionally, GNYADA and its partners stressed that brokers offer far less consumer price competition, services, careers/jobs and economic impact for the State. GNYADA emphasized how uneven

the playing field has become. Dealers are regularly audited through on-site visits from the Department of Motor Vehicles, NYC Department of Consumer Affairs, the NYS Attorney General and other regulatory entities, while, despite having several laws already on the books, brokers deal with little of this regulatory oversight. While the dealers and the Associations made their case that brokers have become irresponsibly disruptive and are poorly regulated, it is clear a lot of pressure will be necessary to get the State Legislature to act to protect dealers’ investments and consumers’ interests.

GNYADA participated in a roundtable discussion concerning auto brokering in New York. The event was hosted by Senators Kevin Thomas (D-Nassau) and Diane Savino (D-Staten Island). Thomas is the primary Senate sponsor of a bill GNYADA supported last year that would curtail current broker practices. Assemblyman Bobby Carroll (D-Brooklyn), a strong supporter for GNYADA on this issue and the Assembly sponsor of the bill, was also present and voiced strong backing for the Association’s position. NYSADA, representatives from the UAW and Teamsters, along with

3 The economic impact of franchised new car dealers amounted to more than $51 billion in metro New York, according to GNYADA’s economic impact report. From employing tens of thousands of New Yorkers, to serving as brick- and-mortar anchors for Main Streets, to sponsoring little league teams, donating to hospitals and other local community institutions, franchised new car dealers’ contributions to individuals employed as a result of the indirect impact of dealership operations. This accounted for 12.3% of the total retail employment in the metro area, making new car dealers the fifth largest retail employer in the area just behind supermarkets, clothing stores, department stores, and pharmacies. A full copy of the report will be sent to your dealership. Franchised Dealers’ Economic Impact Tops $51B their communities and to the state’s economic vitality are significant and widespread.” said Jane Millman, Chairwoman of GNYADA and owner of Riverhead CDJR. A significant element of franchised new car dealers’ impact is tied to jobs. With a total employee compensation of $4.5 billion, metro area new vehicle dealerships employed 39,480 people in well- paying jobs with an additional 31,800

Additional findings of the report include:

2018

2016

Variance

Total sales

$38.5 Billion $36.8 Billion $4.5 Billion $4.3 Billion

4.6% 4.7% 3.9% 9.0% 4.2% 1.0% -1.6% 4.2% 1.0%

Total expenses Jobs generated*

71,280

68,600

Employee earnings*

$4.5 Billion $4.1 Billion $2.5 Billion $2.4 Billion $20.9 Million $20.7 Million

Taxes (state sales, payroll, real estate)

Charitable contributions New vehicle retail sales Advertising expenses

602,000

612,000

$496 Million $476 Million $485 Million $480 Million

Estimated capital improvement to dealership facilities

Data presented in the report is based on 2018 financial data collected through surveys sent to franchised new car dealers in the greater New York metro area.

2 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • November 2019