2016 GNYADA Membership Directory

HOT TOPICS

2016

MEMBERSHIP

DIRECTORY

As a general rule,“pre-printed”fees have been problematic. If not done correctly, they can lead to fines. However,

there was a major“turn-around”in 2014 on whether these fees are allowed at all. At the GNYADA Regional Dealer

Meetings, New York State Assistant Attorneys General (“AAGs”) stated that additional dealer “fees” on Buyers

Orders may be permitted

under certain conditions

While acknowledging that their office has “no specific guidelines”on the issue of fees, the AAGs provided general

direction on the issue. Both said that it is permissible for dealers to add “fees” (in addition to the regulated DOC

Fee) to their buyer’s orders, provided certain conditions are met:

The fees (amounts) cannot be preprinted or otherwise represented as“mandatory”andmust be negotiable;

The fees have to be clearly and conspicuously disclosed;

The fees have to relate to an additional genuine service, benefit, or product that the consumer is receiving

from the dealer and should be labeled (itemized) as such; and

The fees cannot be unreasonable (they cannot be so large or disproportionate as to constitute price

gouging, or be unconscionably large in relation to the service, benefit, or product for which it was being

charged).

Fees for equipment that are already included in new car Monroney Stickers or other price labels (such as

“destination fees”, “dealer prep”, gas, and the like) should not be the basis for “additional fees”. Also ensure that

“advertised prices”are not increased by additional fees.

Dealers are advised to proceed very carefully, following the guidance provided above.

Repair Orders Shop Supplies:

DMV has maintained that no pre-printed fees are permitted on repair orders.

Charges for the disposal of waste materials such as anti-freeze, brake fluid,

and solvents must be clearly identified and itemized on repair orders

and advertising. Charges for these items must be reasonable and

must be limited to those repairs where there actually were

such materials involved. The same rule applies to shop

supplies such as nuts, bolts, or cleaners. Further, state law

prohibits additional charges for accepting some waste

(such as waste oil) and you must avoid those charges

as well.

THE LATEST LOWDOWN ON PRE-PRINTED FEES