2022MembershipDirectory_FNLdigital

2022 MEMBERSHIP DIRECTORY + SERVICES GUIDE

FUEL SURCHARGES Gasoline prices have skyrocketed to an all-time high resulting in increased costs to dealerships and raising questions about whether dealers can pass these costs along to consumers. Some local dealers have indicated that they are paying nearly $20,000 or more per month for gasoline. The question we are getting from members is, “Can dealers pass along the cost of gasoline to customers?”. The answer is generally “yes,” unless your franchise agreement prohibits it. Here are some general guidelines to follow:

New Car Sales: • If the manufacturer’s Monroney Sticker is silent about gasoline, dealers can charge customers the actual amount they pay for gasoline at the local gas station. • If the Monroney Sticker states that the vehicle price includes a full tank of gas, charging for gasoline would be considered a deceptive practice. • If your bill of sale states that you will provide a full tank of gasoline at delivery, it would be a deceptive practice to pass- along a gasoline charge to the customer. GNYADA suggests that dealers review reimbursement rights from your OEM regarding “full tank” requirements at delivery and loaner cars. Dealers should also consult their tax professionals to discuss tax implications relating to fuel surcharges. Loaner Vehicles: If dealers charge customers for gas refills on loaners, the dealer may become liable for sales taxes. Fees imposed on loaner customers could convert the vehicle to a rental car. If that occurs, additional special taxes related to rental cars could be imposed. Parts Delivery: Dealers with wholesale parts operations can add a delivery surcharge to cover additional gasoline costs, as long as they disclose these charges up front.

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