GNYADA July 2015 Newsletter

GNYADA Succeeds In Excluding Dealers from Costly State DFS Oversight

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Dealertrack’s products, such as their online credit application network and software solutions for auto dealers, are expected to compliment Cox‘s inventory of automobile related serv- ices which include: Kelley Blue Book, AutoTrader and Manheim. GNYADA and Dealertrack work together on several services for members, including: online registration services Connecticut title and registrations DMS and website services through all DOC programs n n n $100,000. While the bill sponsor indi- cated to us that this was meant to deal with some of the fly-by-night inde- pendent used car dealers, the bill could have also required new car dealers with separate used car lots to also secure these bonds. The bill would have stretched how bonds could be used and could unrea- sonably add to the costs for our mem- bers. As a result of our efforts, dealers whose used car facility is covered by their new car license will not need to obtain a separate $100,000 bond. GNYADA and RADA Lobby Albany Earlier in the month, two bills that were part of the same Senate IDC Subprime Auto Lending package (S. 5489 and S.5490-A) were also removed from the Banking Committee agenda. This followed a flurry of meetings held by GNYADA and the Rochester Automobile Dealers Association (RADA), imme- diately prior to the bills' removal.

Dealertrack has also been a generous sponsor of many GNYADA events, such as The Automotive Forum, Dealer Preview and the annual Charity Golf Outing. The Association also relies on Dealertrack for expert speakers on numerous regulatory and compliance issues impacting dealers. GNYADA anticipates that current programs with Dealertrack will con- tinue without interruption. The Association looks forward to continuing our relationship with Dealertrack as part of the Cox Automotive Group. GNYADA President Mark Schienberg joined with RADA President Brad McAreavy in a series of meetings with Senate and Assembly members on the subprime auto lending and automotive recall bills currently being deliberated in both houses. GNYADA and RADA explained to the bills’ Senate sponsors – IDC Conference Leader Jeff Klein and Banking Committee Chair Diane Savino – that the bills, while well intentioned to deal with illegal and predatory actions by used car dealers, were far too broad and risked damaging the entire automotive sales market. Session Ends As the legislative session concludes, neither of these bills have been passed. The Association anticipates that these bills will return to the agen- da during the next session – our lob- bying efforts are ongoing in this area.

GNYADA was recently successful in convincing bill sponsors to amend two Subprime Auto Lending bills to address our concerns. Independent Democratic Conference (IDC) mem- ber Senator Diane Savino is the spon- sor of the first bill – S.5506-A. This legislation, would have given the Department of Financial Services (DFS) oversight to set regulations over automobile dealers’ sales and lending practices. As you well know, the purchase of motor vehicles is already subject to extensive State and Federal regulation. We are pleased to report that the bill has been amended to remove the sec- tions that would grant DFS dealer oversight. We are grateful to Senator Savino for working with us to make these changes. The second bill that was also a con- cern – S. 5485-A, would have required used car and truck dealers to secure surety bonds as high as

Cox Automotive Buys Dealertrack Technologies

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Dealertrack Technologies provides a wide variety of services for our members and frequently assists us with numerous Association projects. Cox Automotive also provides many services to dealers, through their cur- rent holdings in the auto industry. It was announced earlier this month that Cox is buying Dealertrack, in a deal expected to close later this year.

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

The Newsletter • July 2015

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