2015 GNYADA MEMBERSHIP DIRECTORY

THE LATEST LOWDOWN ON PRE-PRINTED FEES

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” and must 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.

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Repair Orders and Pre-Printed Fees: 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.