GNYADA December 2014 Newsletter

8 GNYADA Derails Legislation Harmful to Members

Over the last several months, we have seen a large uptick in legislative and regulatory activity in the DeBlasio administration and in the City Council that directly affects new car dealer operations. GNYADA will continue to keep an eye on legislative efforts that have the potential to harm your business, and, if necessary, will inform dealers when they need to voice their concerns to individual Council Members. As we have reported to you previous- ly – GNYADA was able to convince the NYC Department of Consumer Affairs (DCA) to extend the deadline for NYC dealers to answer the sub- poenas dealers received in regards to selling used vehicles with open recalls. The deadline to answer the subpoenas is now February 2, 2015. GNYADA continues to work with the DCA to find an acceptable solution that will not interfere with a dealer- ship’s ability to sell used cars in NYC. We hope that we will be able to reach an agreement with the DCA before the February 5th deadline. DCA Subpoena Deadline Moved to February 2, 2015

additional products or services after the sale, such as extended warranties, new tires or any other post-sale item. GNYADA President Mark Schienberg testified against both these bills at an October 28 City Council hearing. Following the hear- ings the Association continued lobby- ing the Council to hold off on taking any further action. the ability of dealers to sell their used vehicles with open recalls – no matter how insignificant the subject of the recall – would cause an undue burden on auto dealers. The Council also understands that NHTSA’s defi- nition of “safety recall” is overbroad, that the new recall database set up by NHTSA is not updated in real time, and that the information can be incomplete and unreliable. GNYADA will continue its efforts working with the City Council in order to prevent legislation that would be detrimental to GNYADA members and its customers who are looking for affordable used cars. The Council and its staff now under- stand that any law that would delay

Due to GNYADA’s lobbying efforts, the Association has successfully stopped two New York City Council bills that were on the fast-track to pass the City Council before the end of 2014. These bills have been removed from consideration during this year’s legislative session though it’s expected they will be on the Council’s agenda again in 2015. The first bill (no. 518) would require a dealer to repair any defect or imper- fection on a used vehicle that has been recalled by a manufacturer, regardless of the reason for that recall, before the dealer can sell that used vehicle. The second bill (no. 178) GNYADA opposes would require dealers to dis- play a stamp, tag, or label that states the total selling price for a used vehi- cle, including administrative, service, or other fees that will be charged by a dealer. GNYADA’s objection to 178 is that the bill is too broad and will have negative unintended consequences if passed. Essentially, the bill would make it illegal for dealers to offer

In-Transit Permit Rules

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In-Transit Permits are issued by dealerships to customers who are registering their vehicle in a state other than New York. Permits cannot be issued to a vehicle that is being transported and registered within New York State.

Some important facts: In-Transit Permits are only valid for 30 days, including the date of issue; The form must show both the issue date and the expiration date; Both Part 1 and Part 2 (front and back) of the form must be completed; Make two copies of the completed form – one for your dealership records and an extra for DMV; and retain the tear strip on the right side of the permit in the customer’s deal jacket. n n n n

It is important to note that Massachusetts does not recognize in-transit permits and vehicles may not be driven on their roads with such a permit.

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

The Newsletter • December 2014 5