GNYADA August 2016 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

Toomey Takes Over the Reins of the Association Meet GNYADA's New Chairman: Nick Toomey, Rallye BMW

AUGUST 2016 Volume 26, Issue 5

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HIGHLIGHTS

Nick has long been an active GNYADA member, serving as Vice Chair on the Association’s Executive Committee since 2008. “Nick brings a wealth of knowledge and experience to the job,” said GNYADA President Mark Schienberg. “He has deep, first-hand knowledge of the issues facing franchised new car dealers in metro New York and has good ideas on how to address them.” “Rallye Motors supports hundreds of jobs on Long Island and generates tens of mil- lions of dollars in revenue and taxes for the area,” Schienberg continued. “I know Nick will bring that same level of drive, enthusi- asm and civic-mindedness to his new role as Chairman.” (continued on page 2)

GNYADA Annual Meeting page 3

GNYADA Working to Finalize ZEV Incentive Plan page 4 Summer’s Heating Up! Keep Your Staff Safe page 7

Franchise Laws Lower Prices page 8

2 2016 Golf Event Par For the Day! Our 11th annual charity golf outing could not have been a bigger success! We were thrilled to host a record-high 421 attendees at the Old Westbury Golf & Country Club, on Monday, June 20. Everyone enjoyed a day of perfect weather, fun golf and great food. And best of all, we raised $110,000 in support of automotive education in metro New York. Nick Toomey, Vice President of the Rallye Motor Group in Roslyn, NY, was confirmed as Chairman of the Greater New York Automobile Dealers Association at the Association's Annual Meeting on June 20.

Dealerships Pay a High Toll for Cybercrime page 9

CarFax Sued for Price Hikes page 10

Dealerships Must Have CO Detectors page 11

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

(continued on page 2)

www.gnyada.com

The Newsletter • August 2016 1

Meet Your New Chairman

(continued from cover)

“Having started in the automobile business as an apprentice technician, training and opportunity are very important to me,” said Toomey. After graduating from Northwood High School in Silver Spring, Maryland, in 1969, his proficiency in handling vehicle repairs helped him get his foot in the door at Hill & Sanders Ford in Wheaton, Maryland. He was promoted to a management position by the time he was 25 years old. Toomey then worked at Koons Ford in Falls Church, Virginia, before being recruited by Rallye Motors in 1990 to direct fixed operations. During Toomey's four years as GNYADA’s Education Chairman, the Association’s education programs have seen a significant rise in dealer participation, received national and international accolades, and won numerous awards. Toomey is pas- sionate about education and its importance for young people entering the business, as well as in enhancing the skills of those already working in dealerships.

Women’s Fund of Long Island , American Heart Association’s Go Red for Women , Special Olympics , and the Boomer Esiason Foundation . In addition, Rallye sponsors an annual Christmas Party for abused children in temporary housing. The Association formally congratu- lates Nick Toomey on his new posi- tion, and we look forward to a pros- perous time with him as Chairman.

Toomey has also made a difference in his community by generously con- tributing to local and national causes. He received the American Red Cross Good Neighbor Award in 2012 and was a TIME Dealer of the Year recip- ient in 2013. Rallye Motors also sponsors the American Cancer Society’s Walk for a Cure , Long Island Cares’ Harry Chapin Food Bank , Swim Across America for cancer research,

2016 Golf Event – Par For the Day! (continued from cover)

As part of the evening program, newly elected Chairman of the Board Nick Toomey awarded five GNYADAAutomotive Education Scholarships — each worth $5,000 — to five stu- dents from Lincoln Technical Institute, who are also veterans of the U.S. military. To learn more about our 2016 scholarship recipients, visit gnyada.com/education/winners . The day concluded with thirty-eight prizes being handed out to the day’s raffle winners; prizes included New York Mets tick- ets, Apple Watch Sports, GoPro Cameras, an Apple iPad Air 2, and much more. Ken McGee from Capital One Auto Finance took home the grand prize, a Chronomat Breitling watch worth $25,000. The tournament winner was Port View Leasing. GNYADA thanks everyone who joined us for this important day, which has been a testament to the generosity and commu- nity investment of our devoted members for more than a decade now.

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

The Newsletter • August 2016

GNYADA Annual Meeting A Banner Year in the Books, More Work Ahead

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The Association’s 106th Annual Meeting, on June 20, saw the proud inauguration of Officers and Directors for the 2016-2017 term, as well as a review of GNYADA’s accomplishments over the last year. Addressing the roomful of 200 dealers and Allied Members gathered at Old Westbury Golf and Country Club, President Mark Schienberg highlighted Association achievements such as the ten-year anniversary of the Center for Automotive Education and Training, the milestones reached by DMV-DIRECT (20 years of operation / 3 million transactions), and record breaking weekends at the 2016 Auto Show. Said Schienberg, “As we marked these many milestones, it’s important to remember that GNYADA’s guiding principles have remained the same — to strengthen franchised dealers’ rights, and help them run their businesses without excessive outside interference.” He went on to note that during 2015-2016, GNYADA assisted in securing a remarkable 45 dealer licenses for its members. In his final Chairman’s Report, outgoing Chairman Bob Vail echoed these sentiments about the importance of GNYADA’s role. He specifically mentioned November’s hard-fought passage of H.R. 1737 (The Reforming CFPB Indirect Auto Financing Guidance Act), which resulted from a huge lobbying effort by dealers. In his first address as GNYADA Chairman, Nick Toomey looked at the road ahead for dealers, listing coming-year objectives such as reigning in deceptive auto-brokers, weathering the scrutiny of regulators, and combatting the mounting trend of

factory-direct retail operations. “Our industry faces many challenges,” said Toomey, in reference to these key dealer issues. “We will concentrate our experienced lobbying resources on these legislative efforts. And we will keep our voice loud and clear.” The focus on legislative involvement was timely, as the Annual Meeting also featured a highly informative panel discussion about the positive result in the Beck Chevrolet vs. General Motors case. Panelists were Doug Clark, founding partner of Shenker Russo & Clark, and Russ McRory, partner and member of Arent Fox’s automotive practice and also the attorney who represented Beck Chevrolet. Moderated by Mr.

Schienberg, the panel reviewed why the May verdict was a huge victory for all New York dealers, who now have strong arguments against manufacturers’ use of uniform sales standards. To close the meeting, Mr. Toomey thanked Mr. Vail for his tireless work on behalf of dealers across New York. He and Mr. Schienberg presented Vail with a plaque and ceremonial gavel in recognition of his service, as well as a NADAAmbassador Grant. With a powerful voice in Albany and beyond, a new Chairman in place, a slate of new officers installed, and a fresh generation of young dealers participating, GNYADA looks forward to an active and bright 2016-2017.

NEW OFFICERS SWORN IN During the morning meeting, the following individuals were confirmed as Officers of the Association: Chairman: Nick Toomey Rallye BMW Vice Chair: Gary Brown Brown’s Jeep Chrysler Dodge Vice Chair: Lee Certilman Nardy Honda Vice Chair: Jane Millman Riverhead Dodge Treasurer: Larry Orlando Tower Ford Secretary: Melanie Spare-Oswalt Sayville Ford Immediate Past Chairman: Bob Vail Vail Buick GMC

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

The Newsletter • August 2016 3

State Seeks Input from GNYADA on ZEV Program 4

the Javits Center in March that allowed representatives from north- east dealer associations to speak with environmental agencies about the the regional challenges to selling ZEVs. GNYADA is now actively collab- orating with NYSERDA and the Center for Sustainable Energy (CSE), to assure that dealers’ concerns are addressed in the new rebate program. For example, we have urged NYSERDA to work with the DMV to ensure that all program registrants are franchised new car dealers. We will also be asking some of our dealers to test a beta version of the application. The State plans to kick-off New York's rebate program in September, and GNYADA will be providing training to help familiarize dealers with the process. with regard to commissions, interaction with customers, etc., and therefore may be treated as exempt from overtime. The Supreme Court's ruling did not finally decide the issue. It simply found that the lower court had given too much deference to a 2011 opinion reached by the Department of Labor. (The DOL’s opinion in that case found that service advisors should be overtime-eligible because they’re neither salespeople nor mechanics, both of which are overtime-ineligible under the Fair Labor Standards Act.) The case will now return to the 9th U.S. Circuit Court, which will rereview the case.

The dealer must then enter the required information relating to the sale in NYSERDA’s dealer portal, to reserve the rebate funds. The dealer later uploads the transaction documents required for reimbursement. (Specific documents are to be determined.) Upon review and approval, NYSERDA pays the dealer the rebate amount, either by electronic transfer or by check. Dealers should expect payment to be delivered within seven to ten days. GNYADA has been contributing to the State’s clean energy mission since the beginning of the year. In addition to creating an exhibition of 12 Clean Technology Vehicles in Albany outside Governor Cuomo's State-of- the-State address in January, the Association also hosted a meeting at n n Department changed direction in 2011, and the Circuit Court deferred to that new interpretation. The high court’s ruling said the Labor Department's 2011 about-face was done without adequate justification to depart from a long-held precedent; Justice Anthony Kennedy, writing for the majority, described such changes as “arbitrary and capricious.” This legal distinction has been closely monitored by dealer associations, such as NADA and GNYADA, who’ve long asserted the uniqueness of the service advisor role, regarding their usual duties and pay plans. Service advisors may not personally sell vehicles, yet they function very much in a salesperson’s capacity,

GNYADA is working with state regulators on the development of New York's new point-of-sale rebate program for Zero Emission Vehicles. While the NYS Energy Research and Development Authority (NYSERDA) is still ironing out the details (as of this newsletter), the program is expected to function as follows: A dealer wanting to participate in the rebate program will be required to register with NYSERDA. After a customer agrees to purchase or lease a rebate-eligible vehicle, the dealer reduces the contract price by the rebate amount. (Rebate amounts will be announced prior to the program start-date, and different ZEVs will be eligible for different rebates. In addition, only New York State residents will be eligible to receive these rebates.) Dealers may continue treating service advisors and service writers as exempt from overtime pay, under the salesperson, partsperson and mechanic exemption. This per a U.S. Supreme Court ruling that rejected a lower court’s decision that service advisors should receive overtime pay under U.S. labor law. The heart of the dispute is the wording in the Fair Labor Standards Act's overtime provisions that exempts “any salesman, partsman or mechanic primarily engaged in selling or servicing automobiles.” Past appeals court decisions, and the Labor Department itself, have held that service advisors are included in that exemption. But the Labor 5

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Service Advisors Keep OT Exemption (for now)

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

The Newsletter • August 2016

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6 Spring Car Sales Slow, but Outlook Remains Positive

peak is difficult to pinpoint. Some say that the market may presently be at that point. Sales were soft during the spring, particularly in May. Other factors contributing this projection are: The pent-up demand that accumulated during the downturn, when people were buying far fewer cars, has been released. When examining core market fundamentals (i.e., driving age population and household formation) there is a natural limit to how high sales can go. Although the unemployment rate has decreased to pre-recession levels, economists are still concerned about underemployment, accounting for individuals who would prefer to work but have given up seeking employment. n n

averages exceeding ten years old. Although cars are more reliable and last longer, the significant number of vehicles over ten years old likely need to be replaced soon. Features and equipment on today’s new vehicles incentivize consumers to upgrade. Buyers are now entering the market based on a desire to purchase a new vehicle, rather than a need. Advances in electronic safety features, performance, fuel economy, and infotainment have made even five- year-old cars seem outdated. External factors may alter the projected course of new vehicle sales in the future: the Chinese economy is slowing significantly, which could impact global economic growth; the outcome of the U.S. Presidential election in the fall; gas prices could finally drift higher. If and when we hit the projected sales

New vehicle sales in the metro area has been on a great run over the past six years. Registrations have increased each year since the 2009 sales downturn, reaching about 587,000 units last year in metro New York. Most industry analysts have indicated that the sales market is peaking, following this prolonged rebound. However, despite the plateau, several key factors are likely to keep car sales at very healthy levels for an extended period: Personal incomes and wages are increasing, interest rates are at very low levels, and manufacturer incentives are high. These factors affordable for most consumers, and this is not expected to change for the near future. The age of vehicles on the road remain at record highs, with have combined to make new vehicle purchases relatively

n

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This article was provided by Jeff Foltz of Auto Outlook.

n

New York Metro Area Registrations

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

Metro area registrations are predicted to approach 610,000 units this year.

609,500

586,981

Registrations

553,884

531,573

501,070

450,850

449,172

452,076

432,032

384,763

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016 Forecast

Data Source: IHS Automotive

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

The Newsletter • August 2016 5

DCA Says “Shut the Front Door” New Air-Conditioning Rules for NYC Businesses

7

New York City Council passed Local Law 92, in the fall of 2015. The law imposes energy conservation require- ments upon commercial establishments in NYC, and requires all businesses, regardless of size, to keep doors and windows shut while the air conditioning is running. This is the first summer for which the law is in effect. (Note: Doors are allowed to be open during deliveries.)

Enforceable Penalties As of July 1, the DCA can fine first-violators of this provision of the law $250 for each open door or window. For a second violation (within an eighteen-month period), the penalty will be $500 per open door/window.

If you have any questions about this or other provisions of Local Law 92, please call the Association at 718.746.5900.

GNYADA Members Have Help Managing Cooling Costs

Getting antsy about your summer AC bill? Sprague Energy, a Dealer Discount Club vendor, helps dealers lock in energy rates for extended periods. They also offer real-time energy market data designed to improve purchas- ing strategies. Dealers can learn more by visiting www.spragueenergy.com . Or contact Jay Thomson, your assigned Sprague energy manager, for a free savings analysis: 732.440.0005 / jthomson@spragueenergy.com

EEOC Increasing Fines for Failure to Post Labor Laws GNYADA Provides Labor Law Poster Free of Charge

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The Equal Employment Opportunity Commission (EEOC) is more than doubling the penalties against employers who fail to properly post labor law posters displaying the federal laws that protect workers from dis- crimination. As of July 5, the maximum penalty for violating this specific posting requirement is now $525 — the previous maximum was $210. “The purpose of the adjustment is to maintain the remedial impact of civil monetary penalties and promote compliance with the law,” the EEOC said in its announcement. GNYADA helps dealers stay in compliance with these posting require- ments by offering a 14-in-1 labor law poster, as a free benefit of mem- bership. This poster includes the federal anti-discrimination laws. Dealers should display posters where employees can see them — for example, in a break or lunchroom, in their offices and service areas. Please contact the Association if you require additional posters.

Free Poster

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

The Newsletter • August 2016

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Summer's Heating Up! Keep Your Staff Safe

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providing as much airflow as possible, to limit the buildup of excess heat

During extreme hot weather, require your employees to hydrate often, per- mit breaks in cool areas, and instruct supervisors to monitor for signs of heat stress. This is especially impor- tant for techs and any other staff members who may work outside. Posters, training materials and OSHA Fact Sheets describing heat-related illnesses and how to avoid them are available at osha.gov/ SLTC/heatillness/index.html . For more information, please call the Association: 718.746.5900.

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Visible symptoms of heat-related illness

With temperatures on the rise, dealers must be vigilant about pro- tecting their workers against heat- related ailments on the job. The Department of Labor includes Auto Dealerships on its list of occu- pations for which severe heat may endanger employees. In addition, OSHA can fine employers who sub- ject their employees to an unsafe workplace.

Heat Exhaustion: Headache, dizziness or fainting, weakness, wet skin, irritability or confusion, thirst, nausea or vomiting. Heat Stroke: Confusion, inability to think clearly, passing out or collapsing, seizures, may stop sweating.

Working safely in high temperatures requires:

scheduling frequent breaks for workers to cool down in an air- conditioned or shaded area offering regular breaks for hydration (water, juice, or other non-caffeine beverages)

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Cuomo Creates Taskforce to Crack Down on Labor Violations

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On July 20, 2016, Governor Cuomo signed an executive order establishing a “Joint Task Force on Employee Misclassification and Worker Exploitation.” This action is signifi- cant for dealers, as the order specifies carwashes as a targeted industry. (Other areas that could intersect with automotive operations include truck- ing, janitorial services and waste disposal.) The joint taskforce will be coordinat- ing with ten State agencies, including the Department of Labor, the Division of Human Rights and the Department

of Health. The NLRB’s 2015 redefini- tion of “joint employer” status has already made dealers potentially liable for various mistreatments that involve subcontracted workers, such as payment delinquency, discrimina- tion, or unsafe working conditions. But now, it is far more likely that car- wash facilities will be actively moni- tored for these violations. Previously, the Governor’s Office has created only temporary taskforces to investigate and penalize worker mis- treatment in specific sectors. This joint taskforce, however, is a perma-

nent entity that essentially merges all the previous efforts. If your dealership has a vehicle-wash system that relies on contracted labor, be sure those workers are properly compensated and not exposed to dan- gerous working conditions. Dealers found in violation could be on the hook for back wages, damages, unemployment taxes and more. Dealers can learn more about this issue at GNYADA's Annual Labor Law Seminar on October 18 or 20. To register, call 718.746.5900.

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

The Newsletter • August 2016 7

The following commentary, written by NADA Chairman Jeff Carlson, was featured on nada.org and emailed out to NADA members.

Yes! State Franchise Laws Lower Prices and Benefit Consumers 11

A new economic report from the Phoenix Center for Advanced Legal and Economic Public Policy Studies makes one overriding conclusion: state auto franchise laws lower retail prices of new cars, which benefits consumers. The study, State Automobile Franchise Laws: Public or Private Interests? was released in July after years of debate and speculation about the benefits of the dealer franchise network. Professor T. Randolph Beard and Dr. George S. Ford, authors of the study, found that franchise laws do not limit competition or lead to higher prices. Quite the oppo- site, they found that “all the evidence suggests there is intense competition leading to very low margins on new car sales.” This, in turn, demonstrably lowers prices for consumers and alters the way they buy cars and service in a very positive way. Dr. Ford reports that when selling an automobile-service bundle, the analysis indicated that "franchised auto dealers have a better incentive with respect to consumer desires than car manufacturers." Thus, it makes sense that state legislatures choose a market design that best fits their con- stituents. This latest report reaffirms the messages that the National Automobile Dealers Association—and auto dealers nation- wide—have been espousing: the car-buying public is better served with our services than without. And how does the dealer network compare to manufacturers?

For more than 100 years, car buyers have been relying on a system that delivers the most efficient and cost-effective way of buying a car—through franchised dealers. Automakers contract with dealers because we incur bil- lions of dollars in expenses for equipment and facilities; we deliver in-person customer service you cannot get through a computer screen; and we reduce consumer costs through a competitive model that lowers retail prices and makes purchasing possible through dealer-assisted financ- ing. This latest report is also consistent with what respected auto analyst Maryann Keller reported at a Federal Trade Commission panel earlier this year. She cited empirical evidence showing that intra-brand competition among dealers significantly lowers new-car prices. A direct-sales model would not benefit consumers in the same way. Moreover, the franchise network also promotes public safety and instills confidence in the consumer that there is someone there to help service the vehicle when needed. State governments require dealers to invest in facilities so that help is available to car owners throughout the life of the vehicle, and not just at the point of sale. As regulators such as the Federal Trade Commission con- tinue to probe the benefits of the franchise system, we urge them to remember that the franchise laws in place not only promote competition in the free market but public safety for all. And YES, that is a win-win for consumers and deal- ers alike.

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

The Newsletter • August 2016

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Automotive News Announces 40-Under-40 List Three area dealership professionals honored 12

For the past five years, Automotive News has published its 40-Under-40 list, recognizing the most impactful players in the U.S. automotive indus- try, who also represent the top minds and highest achievers of the up-and- coming generation. We’re proud to report three honorees are representatives of the GNYADA dealership family. They are: Allison's rise through the automotive industry started on the ground floor, when she was a receptionist at a Lincoln-Mercury dealership in 2002. Automotive News lauds her 2015 ini- tiative to direct Smithtown Acura's entire (modest) ad budget toward dig- ital advertising and targeted market- ing, rather than TV and newspapers, which lead to a 22% increase in A recent study conducted by Total Dealer Compliance (TDC) — a NYC firm that conducts security audits — found that data breaches at dealer- ships cause stark decreases in cus- tomer confidence. Based on the sur- vey, covering some 200 dealerships, roughly 84% of consumers reported that they would not revisit a dealer- ship at which their data had previous- ly been hacked. An even more sobering statistic from the TDC study shows that 33% of all consumers polled have concerns regarding the security of their person- al and financial data at a dealership, regardless of whether that dealership Allison Musante General Manager, Smithtown Acura in St. James 13

sales. They also spotlight her active efforts to attract and retain women in the automotive industry.

doubled sales in that time. Central to this accomplishment has been his use of research and market-tracking soft- ware to monitor and beat competi- tors' pricing. With an overall goal of increasing transaction volume for his dealership, Jim also implemented a strategy to sell pre-owned cars after no more than 60 days on the lot. The Association congratulates Rich, Jim and Allison on securing their well-deserved spots on this important list. To read more about Automotive News ’ 2016 40-Under-40 honorees visit http://www.autonews.com/sec- tion/underforty02 .

Richard DeAngelo New-Vehicle Sales Manager, Rallye BMW in Westbury

Richard has been in his current posi- tion at Rallye since 2012. Automotive News calls out his focus on reputation-management in estab- lishing him as an industry influencer. Specifically, he incentivizes his sales- people to ask every customer to sub- mit online reviews of their experi- ence, which contributed to an overall rating of 4.9 out of 5, up from 4.0 prior to Rich’s push for reviews. Jim Gallagher General Sales Manager, Mount Kisco Honda in Bedford Hills Jim has worked at Mount Kisco Honda for less than a year and has has suffered a breach. So, even deal- ers with immaculate security proce- dures face an “uphill battle” to obtain public confidence. The study also found that the finan- cial involvement of a vehicle transac- tion requires dealerships to store more information on consumers than banks do. In addition, the study revealed that it often takes dealer- ships a relatively long time to discov- er that a breach has occurred, and that they would therefore benefit from keeping a network engineer, with computer security certifications, on staff.

Allison Musante

Richard DeAngelo

Jim Gallagher

Dealerships Pay a High Toll for Cybercrime

For some specific tips on steps you can take in order to ramp up security at your dealership, consult our Hackers are a Major Concern for Dealerships article, featured in our November GNYADA Newsletter.

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

The Newsletter • August 2016 9

Social Media: A Key Dealership Marketing Tool

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Newsflash: A car dealership is not maximizing its business outreach by merely having a Business Develop- ment Center. As we move further into the digital age, BDCs can only be truly effective if partnered with active social media marketing. Here are some ways to make your social activity a prime marketing driver for your dealership: Brand Personality Social media is the key to establish- ing your personae. For example, your salespeople and servicepersons are the public faces of your dealership. Let social followers get to know them. If they consent to the use of their image, encourage them to pub- lish charismatic posts, smiling photos and work anniversaries to shared social profiles. Engage Your Community The more popular your posts are (likes, shares, etc.), the more often friends of your customers will be prompted to follow you, even if they’re not currently in the vehicle market. CarFax, Inc. is being sued under alle- gations that the online vehicle history service used an unfair billing model in charging for long-term subscrip- tions. The suit, which represents numerous individuals and small busi- nesses who entered into contracts with CarFax, seeks more than $5 mil- lion in damages. Charges were formally brought on June 10, claiming that CarFax not only inflated monthly installments on 15

A great way to boost your activity is to promote your community-based events. If you’re celebrating an awareness month, hosting a “kids’ day” with ice cream, having live entertainment, these events should dominate your social accounts. Public Responses Pay Off Consider any digital medium where people share thoughts about dealer- ships (review sites, automotive blogs, etc.) to be part of your online social strategy. Respond to reviews whether negative or positive. Even if you can’t turn a public objector into a fan/customer, other potential customers will still see those responses and may like how you handled the situation. Leverage the Team If you can’t devote a fulltime position to digital marketing, no problem. Designate trusted social-savvy employees to share posting responsi- bility for your accounts. If you want to establish a “point-per- son” to maintain frequency, consider its subscriptions without justification, but also concealed the severity of these planned increases from sub- scribers upon registering. CarFax’s customer contracts are year- long, and renew automatically. According to the suit, the renewal point is when subscription prices have shot up. The principal com- plainant cites that the initial price bump, after a six-month trial period, was disclosed and consented to; how-

your receptionist. Administrative per- sonnel often jump at opportunities to own projects, they have permanent computer stations, and you’re show- ing that every member of your staff plays an important role. Promote Your Website This is even important if you don’t update your website as actively as your social accounts. The more visits to your website that come from social media channels, the higher your rele- vance in search engines. Measure Performance If you want deeper analysis of your social media results (beyond likes, retweets, etc.), register a staff mem- ber for a class about uncovering and examining these numbers. Google Analytics, for example, is a free traf- fic reporting service, and there are also free classes that show how to use it. The Association thanks Randi Siegel, Digital Marketing Director for Legend Auto Group and member of the NextGen Committee, for contributing to this article.

CarFax Sued for Unfair Price Hikes

ever, subsequent jumps (generally 15 to 20 percent higher than the initially agreed upon rate) were unexplained and also seemed to come at arbitrary renewal points. We will keep our members informed regarding the developments in this case.

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

The Newsletter • August 2016

10

Dealerships Must Have CO Detectors 16

Dealers are encouraged to reach out to their local fire or health depart- ments, who can advise them on where, and how many, detectors should be positioned in their facilities.

New York State’s Uniform Fire Prevention and Building Code requires carbon monoxide detectors within any commercial building that contains a carbon monoxide source; this includes all dealerships and repair shops. Rules for Detector Placement If a facility is smaller than 10,000 square feet, a carbon monoxide detec- tor must be positioned at a central location. Any facility larger than 10,000 square feet requires one cen- trally located detector, and any point that is more than 100 feet from the central location requires an additional detector. Enforcement of this law will be conducted locally, and fines can be $1,000 for each day that the dealership is noncompliant.

If you have questions regarding carbon monoxide requirements, please call GNYADA at 718.746.5900.

17 Consumer Financial Protection Bureau (CFPB) Reformation Awaits Senate Vote

provides dealers with an optional mechanism for ensuring that their credit pricing is fair and consistent across the board. If you have regis- tered, then this is relevant to mention in any correspondence you send to our U.S. Senators. To learn more about the program, visit: https://www.nada.org/faircredit/ We will continue updating our mem- bers on the various efforts to thwart the CFPB’s overreach into the dealer financing model, including the progress of the above legislation as it moves through the chambers of government.

In a communication sent out by NADA, Chairman, Jeff Carlson similarly urged dealers nationwide to reach out to their Democratic U.S. Senators to ask them to support the bill. Carlson also noted the need for immediate action, as the nearing Presidential election means a short- ened congressional session, therefore the vote on S.2663 could come up at any time.

Senate Bill S.2663 is the next step for the “Reforming CFPB Indirect Auto Financing Guidance Act”. The House version of this bill — H.R. 1737 — passed in a landslide vote last November. The Association will be asking Senators Schumer and Gillibrand to vote in favor of this bill, and we encourage our members to contact them as well.

Provable Consistency in Dealership F&I

The Fair Credit Compliance Policy & Program has been adopted by many dealers. Jointly released by NADA, AIADA and NAMAD, the program

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

The Newsletter • August 2016 11

GNYADA Is Here to Serve Dealers

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EMPLOYMENT CORNER 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 .

DMV-DIRECT can process your duplicate titles in as little as three days. In addition to hav-

POSITION

RESIDES IN

FILE #

ing the lowest error-rate of any private-sector DMV partner, GNYADA’s onsite registration and titling service is also the only partner outside of Connecticut that can issue Connecticut plates. Learn more at gnyada.com/dealers/registration/ overview .

OFFICE Biller

Bronx

250 251 252 253 254 255

St. Albans Ozone Park Manhattan Douglaston

Full Charge Bookkeeper

Office Manager

Office Manager/Controller

Through our Center for Automotive Education & Training , we hold over 65 seminars and

South Ozone Park

SALES

training sessions for members each year. These cover every focus within the auto industry, from technician training to marketing techniques and beyond. To find and book training sessions, check out our Automotive Workshops and Seminars Guide or email Carole@gnyada.com .

BDC/Customer Service General Manager

Brooklyn

256 257

Franklin Square

SERVICE Service Manager Service Technician

Lynbrook

258 259 260

Queens

From office supplies to required forms to data storage, GNYADA's Dealer Discount Club

Warranty Administrator

Washingtonville

offers lowered prices on products and services that dealers use the most. To find a company that fills your needs, send an email to Jennifer@gnyada.com. The GNYADA Insurance Brokerage seeks out the best employee benefit pro- grams (healthcare, worker’s comp and more) to meet each dealership’s specific needs. They also consult dealers (by phone and in person) on required changes to their insurance offerings. Learn more at gnyada.com/dealers/insurance/ overview .

Contact Us: Greater New York Automobile Dealers Association 18-10 Whitestone Expressway l Whitestone, NY, 11357 Dealer Hotline: 800.245.4640 l Headquarters: 718.746.5900 l email: assistance@gnyada.com DMV-DIRECT: 718.747.0400 l GNYADA Insurance Brokerage, LLC: 718.746.8100 l NYIAS: 718.746.5300 Center for Automotive Education & 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 2016

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

The Newsletter • August 2016

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