GNYADA February 2014 Newsletter

GNYADA Highlights Dealer Needs at DMV 4

Long Island Dealers to join Expedited Dealer Plates/MV-50s Pilot Program Long Island dealers will be asked to participate in an expanded pilot pro- gram that expedites requests for addi- tional dealer/transporter plates, and MV-50s. This streamlined program allows dealers to make requests directly to Albany, bypassing the regional DMV inspection. Doc Fee While we were disappointed with the answer we received on our request for proper compensation for handling the State’s Registration and Title work, it did not come as a surprise. New York State still ranks as one of the lowest in the country for DOC fees. The Commissioner did agree to our pro- posal that a working group be set up that would include representatives of Dealer Associations and DMV offi- cials to look at how to reduce the bur- dens of all the paper work that DMV requires in order to reduce dealer operation’s cost. The compensation method is based on one that was adopted by two dealers in 2007 to resolve Department of Justice allegations of unintentional credit discrimination. It generally involves establishing a set amount of dealer participation that a dealer adds to a buy rate and only deviating from that amount if certain pro-competitive factors that are unre- lated to the consumer’s background are present in the transaction and are properly documented.

motor vehicle processing. The new rules will allow dealers to reduce unnecessary management costs.

GNYADA met with DMV Commissioner Barbara Fiala and key agency officials along with Dealer Associations from across New York. We would like to thank the Commis- sioner for coordinating this meeting and for making the time to address our concerns. The Association and DMV convene these meetings each quarter to cover many of the important issues that face new car dealers and State motorists. We are very pleased to be working again with DMV to arrange for DMV to exhibit at the upcoming NY Int’l Auto Show this April. In addition to promoting the State’s new tamper free driver’s license, the Department will also be addressing the importance of not texting while driving.

Advisory Scans GNYADA stressed the need to

remove the onerous burden of requir- ing pre-sale scans of every new vehi- cle’s inspection computer system. GNYADA urged the agency to study the effectiveness of this requirement.

Broker Law Mr. Schienberg, President of

GNYADA also stressed the need to ensure compliance with a law cham- pioned by GNYADA that requires specific disclosures of new car broker businesses. Unregistered brokers can easily disrupt dealers’ markets and harm new car consumers. Secure Power of Attorney Pilot DMV announced that it is seeking more dealer participants in its Secure Power of Attorney pilot program. The program permits dealers to use a secure power-of-attorney primarily to obtain duplicate titles for trade-ins. background on this issue, sets forth a fair credit compliance program template that a dealer can adopt, and contains both general and specific instructions for completing the program template. Among many other features, the program template (a) sets forth a fair credit policy that states the dealer’s commitment to fair credit compliance; and (b) establishes a voluntary stan- dardized method for determining the amount of dealer compensation that may be earned in a credit transaction.

The meeting’s highlights included:

Centralized Dealer Recordkeeping DMV is moving forward with a pro- gram to implement a GNYADA ini- tiative to allow multiple dealers under common ownership to centralize their

NADA Releases Fair Credit Compliance Program 5

NADA has led the charge in defend- ing the dealer-assisted financing model, and is working to prevent the adverse consequences that govern- ment-imposed flat fees would cause for consumers, dealers and finance sources alike. To help dealers, NADA has prepared educational resources to strengthen dealers efforts to comply with fair credit laws. Dealers can access the NADA Fair Credit Compliance Policy & Program at nada.org/faircredit .

This publication provides essential

Thank you to NADA for this article.

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

The Newsletter • February 2014 3