GNYADA February 2017 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

1 Bob Vail Elected NADA Director

FEBRUARY 2017 Volume 27, Issue 1

Bob is a third-generation auto dealer. The Vail family has been in the auto industry since 1918, when Bob’s grandfather first opened a Chevrolet dealership in Ossining, N.Y. Bob entered the family business in the '60s, starting as a mechanic at a Studebaker dealership owned by his father and brother. In 2014, Bob replaced Neale Kuperman as GNYADA Chairman of the Board; now, he inherits Neale’s NADA Director seat. Bob attended his first NADA Board Meeting at the NADA Convention in late January. He has already been appointed to both the Regulatory Affairs and Dealership Operations Committees. GNYADA wishes Bob the greatest of suc- cess as he takes on this prominent new role. We know that he will continue the standard of excellence that Neale maintained. We also take this opportunity to thank Neale for his decades of service to our industry, and for giving franchised new car dealers an important voice on the national stage.

HIGHLIGHTS

New EEOC Guidelines on Mental Health Conditions page 2 Wages Can’t Be Withheld to Cover Losses page 3 Important Auto Show Dates page 6 Top 10 OSHA Violations Affecting Dealerships page 7 GNYADA Dealers Donate over 11,000 Coats page 9 Local Auto Tech Students Show Their Drive page 10 Don’t Let Credit Card Fraud Damage Your Business page 11

Immediate Past Chairman Bob Vail (Vail Buick GMC) has been elected as NADA Director for the Metro New York region. GNYADA congratulates Bob on this mean- ingful and well-deserved achievement. New York Metro dealers should have confi- dence that Bob will work tirelessly as their advocate on the national level; he brings 40 years of dealership experience, including ten years serving on GNYADA’s Executive Committee. As a member of the Executive Committee, Bob has attended meetings with state and federal legislators to address dealer concerns and to strengthen New York State’s Franchise Law.

IMPORTANT: 6SRNHQSURPLVHVDUHGLI¿FXOWWRHQIRUFH Ask thedealer to putall promises inwriting. Keep this form. BUYERS GUIDE

VEHICLEMAKE

MODEL

YEAR

2 GNYADA has updated the FTC1 Used Car Buyers Guide, as per the new federal guidelines. Dealers can place their order — $22.50 for a set of 200 per pack- et — by calling the Association at 718.746.5900. Dealers may continue using their remaining stock of Guides until January 27, 2018, which is one full year after the new forms go into effect, per the FTC. Order Updated Used Car Buyers Guides Today

VEHICLE IDENTIFICATIONNUMBER (VIN)

WARRANTIESFORTHISVEHICLE:

DEALERSTOCKNUMBER (OPTIONAL)

DURATION: LIMITEDWARRANTY. Thedealerwillpay 100%of the laborand100%of theparts for thecovered systems that fail during thewarranty period. Ask the dealer for a copy of thewarranty, and for any documents that explainwarranty coverage, exclusions, and the dealer’s repair obligations. Impliedwarranties under your state’s lawsmaygive youadditional rights. FULLWARRANTY. DEALER WARRANTY Thedealer doesn’tmakeanypromises to fix things thatneed repairwhen you buy the vehicle or afterward. But impliedwarranties under your state’s lawsmaygive you some rights to have thedealer take careof seriousproblems thatwerenotapparentwhen youbought the vehicle. IMPLIED WARRANTIES ONLY

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

SYSTEMSCOVERED:

This vehicle is soldwith the statutorywarranty required byNewYorkGeneralBusiness Law sections198-aand 198-b.The systems coveredby thiswarranty include: (a)Engine.All lubricatedparts,water pump, fuelpump, manifolds,engineblock, cylinder head, rotaryengine housingsand flywheels. (b)Transmission.The transmission case, internal parts and the torque converter. (c)DriveAxle.Front and reardriveaxlehousingsand internal parts, axle shafts,propeller shaftsand universal joints. (d)Brakes.Master cylinder, vacuum assistbooster, wheel cylinders, hydraulic lines and fittings anddisc brake calipers. (e)Radiator. (f)Steering.The steeringgearhousingandall internal parts, power steeringpump, valve body,pistonand rack. (g)Alternator, generator, starter, ignition system excludingbattery. (h)Other, if any.

If the vehiclehas18,000milesor less and has been in service less than 24months from thedate of original delivery the vehicle shall receive themanufacturer’s expresswarranty coverageup to theearlier of18,000 milesor 24months. 90 daysor4,000miles – for vehicleswithmore than 18,000milesormore than24months in service from the date of originaldelivery but up to36,000miles. 60 daysor3,000miles – for vehicleswithmore than 36,000milesbut up to80,000miles. 30daysor 1,000miles – for vehicleswithmore than 80,000milesbutup to100,000miles.

Dealer Hotline 718.746.5900

MANUFACTURER’SWARRANTYSTILLAPPLIES. Themanufacturer’soriginalwarranty has not expiredon some componentsof the vehicle. NON-DEALERWARRANTIESFORTHISVEHICLE:

www.gnyada.com

ASKTHEDEALER IFYOURMECHANICCAN INSPECTTHEVEHICLEONOROFFTHELOT. OBTAINAVEHICLEHISTORYREPORTANDCHECKFOROPENSAFETYRECALLS. For information on how to obtain a vehicle history report, visit ftc.gov/usedcars. To check for open safety recalls, visit safercar.gov. Youwill need the vehicle identification number (VIN) shown above tomake the best use of the resources on these sites. SEEOTHERSIDE for important additional information, includinga listofmajor usedmotor vehicles. Si elconcesionariogestion SERVICECONTRACT. A service contracton this vehicle isavailable foranextra charge. Ask for details about coverage,deductible,price,andexclusions. If youbuya service contractwithin90days of your purchase of this vehicle, impliedwarranties under your state’s lawsmaygive youadditional rights. Ask thedealer fora copy of thewarranty documentandanexplanationofwarranty coverage, exclusions, and repair obligations. OTHERUSEDVEHICLEWARRANTYAPPLIES. MANUFACTURER’SUSEDVEHICLEWARRANTYAPPLIES.

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The Newsletter • February 2017

EEOC’s New Guidance on Mental Health Conditions 3

Employers are permitted to ask applicants to explain or execute job tasks they will need to perform, and base a hiring decision on those demonstrations. If job candidates do talk about their condition for any reason, they are protected from discrimination and the information must be kept confidential from co-workers if they are hired. Employers must have objective evidence that someone can't perform the duties of the job, or that he or she would create a significant safety risk (even with a reasonable accommodation), before rejecting the individual for a position. Dealers are advised to keep these guidelines in mind when addressing matters of worker disability.

The EEOC guidance reiterates that it is illegal for an employer to pass over a job applicant simply because he or she has a mental health condition. Employers can decide not to hire a person if that individual cannot perform the duties of the job; however, a determination of whether an applicant can perform those duties should not be based on stereotypes about mental health conditions. Generally, employers cannot ask applicants if they have any mental health conditions before making a job offer. The EEOC states: “Before a job offer has been made, you can’t ask questions about an applicant’s disability or questions that are likely to reveal whether an applicant has a disability. This is true even if the disability is obvious."

The Equal Employment Opportunity Commission (EEOC) issued guidance reminding employers that employees and job applicants are protected from discrimination and harassment based on depression, post-traumatic stress disorder, schizophrenia and other mental health conditions. Further, mental health conditions may be kept private before a job is offered. Mental health conditions are no different than physical health conditions, under the law. According to the Americans with Disabilities Act , mental impairments that impact one's day-to-day life qualify as protected disabilities. The New York State Human Rights Law also specifies that certain mental impairments are also categorized as disabilities. This year’s National Automobile Dealers Association (NADA) Convention took place in New Orleans, LA. Dealers from around the country spent the four-day confer- ence networking, attending seminars and meeting with numerous vendors that specialize in maximizing dealer- ship success. The 2017 Convention was a special one for NADA, as the organization celebrates its 100-year anniversary. At a special opening general session, 8,000 people gathered in honor of “NADA 100”. The event was keynot- ed by Ford CEO Mark Fields. 4

Dealers Nationwide Attend “NADA 100” Convention in New Orleans

In addition to the numerous seminars and factory meetings, there was an important day-long event which offered attendees new insights into emerging developments in automo- tive retail. The J.D. Power Automotive Summit delved into the new challenges facing retail dealers, including OEM incentive programs, the effects of car buyers opting for longer-term vehicle loans, and the importance of embracing electric

vehicles and other mobility trends. At the Automotive News Retail Forum , representatives from various OEMs and large dealer groups addressed operational issues that are shaping the future of the industry. Topics included dealership recruiting, hiring millennials, the digital shop- ping/buying process, and the poten- tial for dealer groups to expand inter- nationally.

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

The Newsletter • February 2017

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Wages Can’t Be Withheld to Cover Losses 5

The GNYADA Dealer Hotline is occasionally asked if a dealer may deduct from an employee's wages, to cover property or equipment damage caused by the employee. (For example, if an employee damages a vehicle due to their own irresponsible act, such as speeding.) The answer is: No. Deductions cannot be made from a worker’s wages unless it is required by law, such as child support

payments; or unless the employee has expressly authorized a deduction to cover services like health clubs or daycare centers. According to the New York State Department of Labor’s website: “… if an employee takes or damages property belonging to the employer, the employer may not recoup the value of that property by withholding all or a portion of that employee's wages. The employer,

like any other party aggrieved by the negligent or criminal behavior of another, must pursue whatever remedies are available [under the] law. He may not simply confiscate wages due to his employee without a court order permitting him to do so.” For any questions, please call the Association at 718.746.5900.

The Fight Against Unlawful Brokering and Leasing Companies Continues Dealers and legislators meet to discuss the escalating issue 6

On January 19, GNYADA coordinated a meeting between franchised new car dealers and local legislators — including the sponsors of the Broker Bill — to develop an action plan against the growing threat that unlawful leasing and brokering companies pose to dealerships, their employees, and consumers. The meeting was attended by Senator Martin J. Golden, Assemblyman Peter Abbate Jr. and Assemblyman Michael Cusick, as well as representatives from Senator Andrew Lanza’s and Assemblywoman Nicole Malliotakis’ offices, and representatives from all Staten Island franchised new car dealerships. Brokers are an issue for all of GNYADA’s members; however, on Staten Island, brokering and leasing companies outnumber franchised new car dealers 3 to 1. Throughout the meeting, legislators recognized the seriousness of the issue and pledged to work with the Association and dealers to enforce

current laws and craft new legislation that will further protect consumers and dealers. “We understand and want to help,” said Senator Golden. He, Assemblyman Abbate, and Assemblyman Cusick proposed the formation of a task force within the Attorney General’s Office to focus specifically on unlawful brokers. GNYADA is preparing a formal request for the creation and funding of this task force. In 2016, GNYADA worked with Assemblyman Abbate and Senator Golden to pass legislation that increased penalties on brokers who violate the laws requiring them to hold a $75,000 bond, to be registered with the Secretary of State, and to provide advertising and contract disclosures alerting consumers that they are not franchised dealers.

Governor Cuomo signed that bill into law in October; however, very few brokers have registered, paid the bond, or are following the advertising/disclosure requirements. The Association is thankful for the legislators' attendance and support. GNYADA will continue working with dealers and State policymakers, to draft legislation that regulates the activity of brokers and leasing companies. In the coming weeks, GNYADA will continue working with the Legislature to tackle this ongoing problem.

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

The Newsletter • February 2017 3

Cuomo Launches Min. Wage Enforcement Unit Keep compliant, to avoid costly penalties and invasive workforce audits!

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Governor Cuomo recruited more than 200 investigators to an enforcement unit that will monitor New York employers’ compliance with the State’s minimum wage laws. The Minimum Wage Enforcement and Outreach Unit will share enforcement responsibility with multiple state agencies, as part of a public awareness campaign to inform

workers about the new law and help businesses understand their wage payment obligations. As the information campaign will likely lead to more wage claims, it’s critical for dealers to make sure they properly compensate all workers. Penalties Under the new law, employers will be

fined $3 for every hour they fail to pay an employee the proper minimum wage. They must also pay back wages, plus all liquidated damages and civil penalties. The Association will continue keeping members informed as further enforcement details are finalized.

Some Scam-Warnings… Are Actually Scams

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been compromised. These can be attempts to extract confidential information. For example, someone claiming to represent the dealership’s bank may say they are messaging account- holders to “warn” them about scam emails sent in the bank’s name, adding that accounts have been “locked” to prevent anyone from losing money. Victims would then be prompted to call a phone number or

follow an online process in order to “unlock” the accounts. However, they are actually being scammed into revealing their account numbers, passwords and other confidential information, giving the scammers all the information they need to commit a theft. Wondering if a message is legitimate? Look up the bank’s phone number yourself, and call it directly to confirm.

We have seen dealerships receive messages from bogus companies and deceptive individuals warning them about data breaches, or claiming the dealership’s information has already

Save the Date: February 16 Information Security Guidelines

Center for Automotive Education & Training 15-30 Petracca Place, Whitestone, NY 11357 10:00am-1:00pm

As “financial institutions” dealerships must comply with the same regulations as banks, credit unions and other bodies that make consumer loans. Attendees of this seminar will learn how to adhere to finance regulations, and how to ensure the security of customers’ information. To register, contact Carole at carole@gnyada.com or 718.640.2012.

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

The Newsletter • February 2017

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for GNYADA members. Call them at 516.624.7200 to get a head start on this year’s RTK reporting. Community Right-to-Know Filings Due March 1

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GNYADA offers the following reminder of New York State’s requirement that all employers post labor rate signs in the workplace: New York’s Motor Vehicle Repair Shop regulations require that dealers’ signs specify how labor rates are calculated. However, no specific dollar amount is required on the sign. Dealers may, on their own, list a specific rate if they wish. March 1 is the deadline for all New York City employers to submit their Community Right-to-Know (RTK) filing reports to the Department of Environmental Protection (NYCDEP). Severe fines can be imposed for noncompliance. Any hazardous substances that meet the Threshold Reporting Quantities (TRQ) during 2016 must be reported in your 2017 filings. The report must provide details on all hazardous materials, including Safety Data Sheets (SDS’s) for each substance.

clock hours or flat-rate manuals. Either or both can be used to reflect work being done on one vehicle. Posting only the calculation method allows repair shops the freedom to charge different rates based on the difficulty of the task. For instance, an oil change can be a simple job. Whereas diagnosing an electrical problem may be more involved. Also, a shop could choose to charge one rate for diagnostics and another for repair time. All containers containing these materials must be labeled, and a copy of their unique Facility Inventory Form (FIF) must be kept on premises. Filing reports can be time-consuming and needs to be accurate. Irregular- ities in the report may increase a dealership’s risk for unscheduled inspections by the NYCDEP. Fortunately, Walden Associates, a GNYADAAllied Member, can assist with these reports. Walden has completed more than 500 RTK filings

The NYCDEP is holding workshops on using their online Tier II Filing System to submit these reports at 59-17 Junction Blvd, Flushing, NY: Feb 15 10:00am - 11:30am (for those who filed online before) Feb 22 6:00pm - 7:30pm (for new filers) Call 718.595.4454 to register.

Dealer-Posted Labor Rates 10

Keep in mind that this rule applies only to posted signs. Estimates and invoices must contain specific information regarding the labor rate charge and the method of computation. If a dealer gives an estimate based on a flat-rate manual, they must provide the name of the manual used. Invoices to customers require that both labor and parts charges be specifically listed. To acquire labor rate signs, at no cost, call GNYADA at 718.746.5900.

Shops calculate labor rates using

GNYADA’s Workers’ Comp Plan The right choice for your dealership

Ask the GNYADA Insurance Brokerage to give you a quote on your Workers’ Comp coverage. GNYADA has partnered with "A" rated insurance carrier AmTrust to offer competitive coverage rates based on individual dealerships’ MOD, specific employee classifications, and more. A dividend program is also available through GNYADA's Workers’ Comp plan, offering mem- bers a further opportunity to lower their premium costs. To learn more, contact Michael W. Conway at 718.746.8100 ext. 405, or visit: GNYADA.com/dealers/insurance/overview

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

The Newsletter • February 2017 5

Commissions Can Be Decreased Due to Negative Sales Growth

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The Seventh Circuit Court of Appeals has ruled that an employee’s commissions may be decreased due to negative sales growth. In the case, Cohan v. Medline Industries , two sales reps sued the company for factoring sales declines into their commission calculations. They argued that their commissions for slow-sales years should have instead been zeroed out, as declines could be caused by factors outside their control, such as unusually bad weather or an already softening market at the time they were hired. The court, however, ruled that

decreasing commissions was a valid way to incentivize salespeople to contribute to annual business growth. What this means for New York dealers The court applied New York law in making its decision. This ruling will now be persuasive in future New York court cases. The ruling confirms that a dealership may adjust salespeople’s commissions — either up or down — to account for sales performance, as long as those calculations are specified in the written commission agreement. For

example, Medline’s commission agreement, which was signed by both sales reps, specifically stated that commissions would be earned based on sales growth, including negative growth. A sample commission agreement is enclosed, for dealerships' reference and use. We thank GNYADA's Employee Relations Plan (ERP) for providing this.

Important New York International Auto Show Dates

The Auto Show team is gearing up for a spectacular 2017 New York International Show, with lots of big announcements expected in these months leading up to the Show. Here are some important NYIAS dates:

Press Days April 12 & April 13

GNYADA Dealer Preview PARTY! April 13

Public Days April 14 – April 23

Opening Day Ceremonies April 15

National Automotive Technology Competition Automotive Career Fair April 18 & April 19

World Traffic Safety Symposium April 21

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

The Newsletter • February 2017

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Top 10 OSHA Violations Affecting Dealerships 12

With fines for OSHA violations having recently increased by as much as 80%, dealerships cannot afford to fall out of compliance. The below list breaks down the top 10 OSHA violations affecting automobile dealerships:

1 Insufficient Hazard Communication (HAZCOM) Employers must have a written HAZCOM plan and inform workers about the safety of any chemicals at the jobsite — everything from cans of WD-40 to drums of motor oil. Workers must know how to respond to incidents of exposure or ingestion, and how to participate in protective measures. Employees at risk of breathing air toxins must be trained in respirator usage. A written program must be developed and updated if workplace conditions affecting air contaminants or ventilation change. 3 Unsafe Abrasive Wheel The rule is for the wheel’s maximum opening to be set at 1/8 ‐ inch. Any adjustments to widen or increase that exposure area is a violation. When operating the wheel, eye protection must be worn. 4 Dangerous Electrical Setups Electrical safety violations include dangling wires, uncased wires, or uncoiled wires strewn in a walking area. Circuit breakers and outlets should be covered, and electrical panels should be kept clear. 5 Unqualified Forklift Operators All operators of forklifts or motorized hand trucks must be over the age of 18 and must be trained and regularly evaluated on that specific truck. Do not overload forklifts with heavier cargo than they are designated to carry. Lift mechanisms must be tested and, when necessary, repaired or upgraded. 2 No Respiratory Protection Program

6 No Emergency Action Plan Dealers must have thorough procedures for reporting emergencies and evacuating if necessary. Violations would include a failure to have such procedures or having incomplete policies that lack details about alarm systems, rescue or medical response processes, scheduled drills, etc. 7 Hidden / Obstructed Fire Extinguishers Fire extinguishers must be operational, accessible, and must receive monthly maintenance checks, with the latest inspection date noted on the tag. Red-and-white "Fire Extinguisher" signs must be positioned on walls above all units. Employees should be taught how to use an extinguisher. 8 Unventilated Spray Booths If your dealership has a spray booth for painting / coating vehicles, it must include mechanical ventilation that can expel flammable vapors.

9 Violating the “General Duty Clause” This is the employer’s requirement to provide a hazard-free workplace. Inspectors may cite tripping hazards, spill concerns, precariously stacked heavy items, oversupplied electrical areas, or even unclean service centers as violations. Eyewash Stations Eyewash stations must be positioned 33 to 45 inches above floor-level and at least six inches from the wall (or nearest obstruction). A facility’s size determines how many stations it needs, but all should be in well-lit areas and reachable within 10 seconds. They should be tested to assure both outlet heads are operating full-flow. Contact Sue Bieber at 718.746.5900, to ask about GNYADA’s Employee Relations Plan, which can help your dealership comply with these and other safety issues. Poorly Located / Nonfunctional

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

The Newsletter • February 2017 7

Return Unused 2017 Inspection Stickers

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Send the request via certified mail to: NYS DMV Bureau of Consumer & Facility Safety Accounting Unit, Empire State Plaza, P.O. BOX 2700, Albany, NY 12220-0700. For overnight delivery, send to: NYS DMV Vehicle Safety Accounting Unit, 6 Empire State Plaza, Room 220, Albany, NY 12228. The credit the dealership receives is valid for one year. It can be used on orders for 2018 inspection stickers, MV-50 books, and plates. It cannot be applied to online orders. n

The deadline for dealerships to return unused 2017 inspection stickers to the DMV, in exchange for credit toward future orders, is March 1. The process is as follows: On dealership letterhead, request a credit for 2017’s unused inspection stickers and indicate the sticker numbers being returned. Include the facility name, address, and the number for an employee contact. (If a dealer has multiple stores, separate letters must be written and sent for each location.) Place the unused stickers in a box or envelope, along with the letter. (Do not include orders for new stickers in this package; that comes later.)

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For any further questions about returning unused inspection stickers, please call DMV-DIRECT at 718.747.0400.

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An Employee Just Gave Notice — Can You Ask Him/Her to Leave Sooner? 14

When a worker gives two weeks’ notice, an employer may prefer that the worker leave immediately, and may tell them so. But there is a potential consequence to keep in mind: If an employer moves up an employee’s resignation date, thereby stopping the employee from working during his/her announced notice

period, the Department of Labor may consider that resignation to be a termination, entitling the employee to unemployment insurance benefits. Also, the Department of Labor has ruled that the employee’s unemployment benefits are not limited to the notice period. Here are the differences between a termination and a resignation: Termination If an employee is terminated, that employee will usually qualify for unemployment benefits, unless the termination was for misconduct. Misconduct includes serious transgressions such as theft, violence, on-the-job drug use,

job abandonment, or violation of company policy rules, to name a few. Misconduct does not include performance-related terminations or traditional layoffs. Resignation If an employee voluntarily resigns or retires from the dealership, the employee won’t qualify for unemployment insurance, in most circumstances. There are times when it is important to have an employee leave the premises immediately after giving notice of resignation. But before turning a resignation into a termination, dealers are advised to consider how this may impact their obligation to provide unemployment insurance coverage.

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

The Newsletter • February 2017

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GNYADA Dealers Donate 11,000+ Winter Coats 15 With 110+ drop-off bins stationed throughout Greater New York, GNYADA dealers collected more than 11,000 winter coats for this year’s New York Cares Coat Drive.

On January 18, GNYADA delivered two truckloads of coats to New York Cares’ NYC distribution center. This year's donation volume represents a 52% increase over last year’s total, and brings our donation tally to 37,000 coats since we first teamed up with New York Cares. Expressing his gratitude for the Association's efforts, New York Cares Executive Director, Gary Bagley said the fol- lowing: “At New York Cares, we talk a lot about our Coat Drive ‘champions’ — the individuals, companies, and partners whose energy and generosity have powered coat collection efforts over the last 28 years. After five years of enthusiastic participation and a delivery of 11,000 coats this year, GNYADA and their dealers are true champions of warmth.” The Association would like to congratulate all the dealers who contributed to this effort. For a full list of dealerships who participated in this year’s coat drive, see the enclosed insert or visit gnyada.com/community/coat-drive .

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

The Newsletter • February 2017 9

16 Local Auto Tech Students Show Their Drive

At the end of the two-day event, the regional winning teams were: Long Island: John DeLuca & Evan Wagner / H.B. Ward Technical Center New York City: Sudesh McCoon & Robinson Suriel / Thomas A. Edison CTE High School Westchester / Rockland: Owen Hillegass & Kaden Marvin / Orange- Ulster BOCES The first- through fourth-place finish- ers had tens of thousands of dollars in scholarships distributed between them. All participating teams received complimentary tools from Snap-on. The State Finals take place on February 14. While these have histor- ically been structured as half worksta- tion and half on-car exercises, the State Finals are now entirely on-car to provide students with the most real-world scenarios. The 25th National Automotive Technology Competition takes place April 18-19, at the Jacob Javits Center.

Since 1991, GNYADA has sponsored the New York Automotive Techno- logy Competitions, to prepare the upcoming generation of technicians and to embrace the ever-advancing technology of today's vehicles. This year’s regional competitions — covering Long Island, NYC, and Westchester / Rockland Counties — took place in January. Thirty-three teams from high schools throughout the downstate area gathered at the Center for Automotive Education & Training, with the 12 top teams earn- ing spots at the New York finals in February. Workstation challenges featured high- er levels of technical difficulty than in previous regionals. "GNYADA struc- tures each level of these competitions to prepare students for the rigor of real-world automotive service work," said GNYADA's Education Commit- tee Chairman and Chairman of the Board, Nick Toomey. "Adapting and intensifying challenges is an impor- tant investment for us. These are the dealership techs of tomorrow; we want to help them be agile learners with competitive spirits."

GNYADA thanks the following sponsors of the regional auto tech competition:

Electude

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n General Motors Corp. n LaSorsa Auto Group n Lincoln Technical Institute

Megatech Corp.

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n New England Institute of

Technology

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n Ohio Technical College

Snap-on Tools

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Subaru U

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n Suffolk County Community

College

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n Toyota Motor Sales

n Universal Technical Institute n University of Northwestern

Ohio

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Refunding Registration and Title Fees

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“The amount indicated on this sales contract or lease agreement for reg- istration and title fees is an estimate. In some instances, it may exceed the actual fee due the Commissioner of Motor Vehicles. The dealer will automatically, and within 60 days of securing such registration and title, refund any amount overpaid for such fees.” This preprinted statement needs to be

Dealers are required to obtain regis- trations and titles for buyers and esti- mate the amount due in most cases. According to New York State law, dealers must automatically refund any overcharge within 60 days of securing the registration and title. If your dealership uses a good faith estimate approach, the sales contract or lease needs to have the following statement included:

in bold print, and the customer must initial it. If you collect registration and title fees based on estimates, GNYADA suggests you check your contracts and leases for this disclosure state- ment; and, have a procedure in place to ensure overpayments are refunded within 60 days.

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

The Newsletter • February 2017

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18 AlliedMember Memo

Don’t Let Credit Card Fraud Damage Your Business

team can offer coaching tips on what questions to ask and how to prevent a fraudulent transaction from occurring. The Red Flags Rule requires dealers to institute and enforce an Identity Theft Prevention Program (ITPP). Failure to do so can incur maximum civil penalties of $3,500, in addition to whatever amounts the dealership may be deemed legally responsible for. This article was contributed to by Xenex Payment Systems, a GNYADA Allied Member. For information on how Xenex can help secure your cred- it card transactions, contact Michael Sclafani, Xenex's National Sales Director, at 888.918.4409 or the Association, at 718.746.5900.

Here is a nightmare scenario for a dealership: The Parts Department processes a large credit card transac- tion over the phone; the purchaser either picks up the purchase or has it delivered; a month later, the dealer- ship gets charged back for the trans- action. What happened? The purchas- er was using a stolen credit card, and the rightful cardholder reported the fraudulent transaction after reviewing their statement. Incidents such as these occur regular- ly, and can wreak havoc on business operations. Here are a few ways to reduce your risk and provide higher levels of security for your customers: When taking credit card payments over the phone, collect as much information about the card as pos- sible, beyond the expiration date n

and security code. Ask for the cardholder’s full name, address and phone number associated with the card, as well as a driver’s license number. The higher the likelihood of being caught in a lie, the more likely a criminal is to abandon the scam. Watch for these red-flags: first- time customers (who are not in the dealership’s customer database) attempting to make large purchases over the phone, or making large transactions at the parts counter. If a purchase doesn’t “smell right”, enlist third-party help. All GNYA- DA members can contact Xenex Payment Systems, a GNYADA Allied Member, if an employee isn’t getting the proper information on a cardholder. Xenex’s support

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Renew Your GNYADA Membership Today! 19

As a member of the Greater New York Automobile Dealers Association, you have access to a wealth of services and programs aimed at keeping your business operations efficient and profitable. To make sure your benefits continue uninterrupted, we urge you to renew now! For dealers in our region, it's more

important than ever to have an Association looking out for their best interests. We’re seeing ongoing challenges to the franchise system, increasing pressures from regulators, and new legislation threatening to negatively impact dealership business. The Association is your tool to push back against these trends. With your committed support, we

will continue working to promote and represent the franchised new car industry in metro New York, so you can focus your attention where it matters most: running your business with minimal outside interference. If you have any questions or comments concerning your renewal, please contact Jennifer Berman at 718.746.5900 / jennifer@gnyada.com.

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

The Newsletter • February 2017 11

EMPLOYMENT CORNER

2017 Fuel Economy Guide Enclosed

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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 .

FILE #

POSITION

RESIDES IN

OFFICE Biller/Title Clerk

Staten Island Staten Island

350 351 352 353 354

Biller/Swap Manager

Controller

Astoria Bronx

Office Manager

Receptionist

College Point

SALES Customer Service

Oceanside Great Neck

355 356

Sales Manager

SERVICE Auto Body Tech Entry-Level Fixed Operations Manager Parts & Service Director

Included with this newsletter is a copy of the 2017 Fuel Economy Guide. As we reported in last month's issue, the Environmental Protection Agency and the Department of Energy require dealers to prominently display this Guide wherever new cars are offered for sale. Dealerships must provide this booklet to each customer, free of charge, upon request. GNYADA provides this Guide as part of our Dealer Services Program, to help members comply with federal regulations. Additional copies can be downloaded at fueleconomy.gov and can be ordered from the Association by calling 718.746.5900.

Sleepy Hollow Marlboro, NJ Highlands, NJ

357 358 359

Contact Us: Greater New York Automobile Dealers Association 18-10 Whitestone Expressway l Whitestone, NY, 11357

Dealer Hotline: 800.245.4640 Headquarters: 718.746.5900 email: assistance@gnyada.com DMV-DIRECT: 718.747.0400

GNYADA Insurance Brokerage, LLC: 718.746.8100 New York International Auto Show: 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 2017

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

The Newsletter • February 2017

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