GNYADA March 2015 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

APRIL 2015 Volume 25, Issue 3

NYIAS PREPARES FOR BIG SHOW Major Debuts Lined Up for Press Preview 1

HIGHLIGHTS

Reveals of more than 60 new vehicles including the all-new Chevrolet Malibu.

ABC-TV Investigates Selling Defective Vehicles page 2 GNYADA’s Warranty Parts Program page 3 FTC Hits Dealers page 6 Independent Contractor or Employee page 8 April Seminars page 12 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

With just a few days before the 2015 New York International Auto Show opens its doors, automakers are planning the largest ever lineup of new vehicle debuts in the Show’s 115-year history to wow the press and public. In addition to the excitement of the car and truck intros, the Show is hosting a wide range of important industry events attracting automobile executives and members of the media from around the world. Major Vehicle Launches This year, the Show will host more than 60 new vehicle unveilings to the world’s media during our press preview days. “We’re seeing tremendous momentum that suggests this spring’s Show is going to be huge,” said Show Chairman John LaSorsa. “These indicators combined with incredi- ble investments by the OEMs in impres- sive new displays and strong auto sales

tells us that the industry, the media, and consumers are excited to get out there and see what's coming. After 115 years, the New York Auto Show is still the perfect place for current and future buyers to experience, compare, and contrast every make and model available, under one roof, in an entertaining, fun, and relaxed envi- ronment,” he continued. World-Class Industry Events Key industry events such as the NADA/J.D. Power/ NYIAS Automotive Forum featuring legendary investor, Warren Buffet, as keynote; World Car Awards, and Nielsen Advertising Awards programs attract automobile executives and members of the media from every cor- ner of the globe. And our World Traffic Safety Symposium welcomes law enforce- ment and traffic safety experts to discuss the issues impacting road safety.NHTSA Administrator Mark Rosekind will be the keynote speaker.

Dealer Hotline 718.746.5900

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The Newsletter • April 2015 1

Showcasing Auto Careers The retail industry’s shortage of well- trained technicians is another impor- tant issue that the Show directly addresses. GNYADA’s National Automobile Technology Competition, which pits 30 teams of high school of historic cars from the LeMay Museum, a display from New York Fire Department to celebrate their 150th year anniversary, plus aftermar- ket expertise from DUB and much more. NYIAS PREPARES FOR BIG SHOW

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seniors in automotive programs around the country to compete against each other for a share of $3 million in prizes and scholarships, is the largest school-to-work program in the country. Engaging Consumers We will also have many new activi- ties during the public days of the Show to keep everyone visiting engaged. A new daily seminar series covering everything from technology to what women want in a vehicle is planned and we have a unique exhibit

2 ABC-TV Investigates New Car Dealers Selling Defective Vehicles

launch an online tool to identify cars and light trucks that are subject to a recall. Dealers and consumers can check a vehicle using the Vehicle’s Identification Number (VIN) using NHTSA’s www.safercar.gov to deter- mine if specific vehicles have unre- paired safety recalls. Checking vehicles in your inventory using this lookup tool is a practical way to manage inventory recall issues. If you find a vehicle with an unresolved recall, you should make sure it is not sold until all repairs are made.

ABC’s Good Morning America recently reported that numerous new car dealers in the metropolitan area continue to deliver new cars to cus- tomers with open recalls. If a dealer receives notice of a safety recall, the dealer may not deliver affected vehicles until the defect is remedied. Dealers should check the manufactur- er’s website for the recall status of all vehicles they have in inventory. Last summer, NADA worked with the U.S. Department of Transportation to

We encourage dealers to review their current policies to ensure that new vehicles, subject to an open recall, not be delivered to customers. If you have any questions regarding recalls contact Susan Bieber, Esq., Vice President of Dealer Services, by email at susan@gnyada.com or by phone at 718.746.5900

NYC DCA USED CAR RECALL SUBPOENAS GNYADA was again successful in obtaining another postponement for dealers to respond to the Department of Consumer Affairs subpoenas. The new deadline is April 27, 2015.

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

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FTC: Settles Case with BMW

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chise, the Warranty Parts Reimburse- ment rate generally reverts to a reduced rate, typically cost plus 40%. Manufacturers consider the reim- bursement rate the selling dealer was receiving to be voided by the Buy/Sell Agreement. To apply for increased reimburse- ment, dealers need either 100 quali- fied customer paid repair orders or 90 days for all repair orders to go for- ward with a new submission. Depending on your volume of war- ranty work, your dealership can antic- ipate very significant parts reimburse- ment increases every month. GNYADA continues to assist dealers, and we have successfully achieved a reimbursement increase on every application submitted. Consumers were led to believe that by using non-OEM parts or service, would void their warranties. BMW has agreed to correct its war- ranty language and refrain from any misleading information regarding warranties all promotional material. It will also mail letters to all affected MINI owners to advise them of their rights. Take-away for dealers: Avoid any statements to consumers that imply that they must return to the dealer- ship for non-covered repair or service work, or that they must use OEM parts in order to preserve their rights under the warranty. Apply for Increased Reimbursement

BMW has recently settled charges brought by the FTC that the automaker violated the Magnuson- Moss Warranty Act when it told con- sumers that using non-OEM parts for maintenance and repairs would void their warranties. The FTC alleged BMW’s MINI Warranty Statements conditioned warranty coverage on having all rou- tine maintenance and repair work done using genuine MINI parts and performed by MINI dealers. The FTC also objected to language that said BMW’s warranty will not cover repairs for parts that include “non- genuine” MINI parts.”

This item is intended as information only and was provided by Stuart A. Rosenthal, Esq. Stuart@Rosenthal.Lawyer.

Dealers Are Cashing in on GNYADA’s Warranty Parts Program

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Hundreds of GNYADA members are receiving fair retail parts reimburse- ment payments resulting in millions of dollars in additional revenue

because they participate in GNYADA’s Warranty Parts

Reimbursement program. This pro- gram assists dealers by relieving the burden of the labor- intensive applica- tion process from dealership man- agers while providing great results. Recent changes to the Franchise Law, which GNYADA advocated for, such as the exclusion of tires, batteries, and routine maintenance from the reim- bursement calculation, enable dealers to increase their warranty parts per- centages whether they have submitted increase applications in the past or this is their first application.

If you would like begin a Warranty Parts Reimbursement submission, please call Bill Cordes 917.763.5318

(cell) or email Phyllis at phyllisa@gnyada.com .

Buy/Sells - A Little Fact When dealers acquire a new fran-

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

The Newsletter • April 2015 3

5 NLRB Developments Impact Dealers

The NLRB’s new rules regarding Quickie Elections could present challenges for employers whether dealers are a union shop or not. The quickie election rule goes into effect on April 14. The NLRB recently weighed in on an administrative law judge’s decision that a dealership violated the National Labor Relations Act (NLRA) when the dealership prohibited union organizing on company property by creating the impression that employ- ers’ union activities were under sur- veillance and questioning employees on their union activities and other grievances. Rule making states: Employees have the right to use dealership email systems for solicitation activity n An Old Dominion Freight Line, Inc., truck driver admitted to the company that he had an alcohol problem. Upon hearing this, and according to com- pany policy, the driver was perma- nently taken off the road and offered a part-time non-driving, lower-paying position at the dock. The driver was ultimately terminated for abandoning his new position. Old Dominion had an unwritten poli- cy of preventing any driver who “self-reports” an alcohol problem from driving again. The Court found that this policy violated disability discrimination laws under the Americans with Disabilities Act (ADA) and denied the driver reason- able accommodation. The ADA 6

Reviewing employee handbooks policies on confidentiality, e-mail use, and cell phone use Company social media policies cannot permit bad-mouthing employer Dealers should consult with their labor attorneys before taking any action in the event of union activity at the dealership. GNYADA’s Employee Relations Plan (ERP) keeps dealer members up to date with employment regulations. As an ERP member, you have access to expert legal counsel, both in-house and through an outside labor law firm. ERP membership costs $595 per year to get instant answers to complex labor problems. Contact Susan Bieber at 718.746.5900 or susan@gnyada.com . requires an individualized assessment to determine if employee is able to perform the functions of their job safely. The Equal Employment Opportunity Commission (EEOC) stepped in and sued on behalf of the driver. The EEOC acknowledged that Old Dominion could (and indeed had to) take the keys away from this truck driver in order to comply with DOT regulations concerning the safety of the public. On the other hand, upholding the decision of a federal district court in Georgia, the Eleventh Circuit ruled that Crete Carrier Corp. did not vio- late the ADA when it declined to n n

ERP Spring Seminar MAY 13, 2015 Center for Automotive Education & Training This seminar gives both union and non-union employers’ dealerships guid- ance on bringing work rules and policies into compliance with recent NLRB decisions while preserving your rights to manage the dealership in a profitable manner.

Save the Date

Free for GNYADA’s ERP members. Email phyllisa@gnyada.com to register.

Jury Awards Truck Driver $119,000 Here’s a labor law case that’s to crazy to believe

employ a truck driver with a “current clinical diagnosis of alcoholism,” a bar to driving under DOT regulations. Dealers must assess each individual employee situation one-by-one when it comes to handling disabilities. Dealers must enter into a dialogue with employees in order to determine an acceptable accommodation.

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

The Newsletter • April 2015

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Complete GNYADA’s Economic Impact Survey

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390, Exton, PA 19341 Complete the survey online by log- ging on to GNYADA’s website at http://www.gnyada.com/files/ pages/2014_Survey_Form.pdf. To generate this report and have it available in a timely manner, we ask that you submit your completed sur- vey by April 10, 2015. n

successful completion of the train- ing Trainees may operate a forklift only under the direct supervision of persons who have the knowl- edge, training, and experience to train operators and evaluate their competence and where such opera- tion does not endanger the trainee or other employees. Training must consist of a combi- nation of formal instruction (e.g., lecture, discussion, interactive computer learning, video tape, written material), practical training (demonstrations performed by the trainer and practical exercises per- formed by the trainee), and evalua- tion of the operator's performance in the workplace. As GNYADA walks the halls of the State legislature and local City and County Legislatures, we bring with us the message that a strong and healthy retail auto industry is important in every way to the State’s economy. Please take a few minutes to fill out this important survey. Use figures from your recently completed 2014 year-end financial statement and your December 2014 factory statement. All information will be kept confidential. No individual dealerships will be identified. The Association now has three ways to complete the survey: Complete the printed survey, included in this newsletter, and fax it directly to Auto Outlook at 610.640.2907 Complete the printed survey, included in this newsletter, and mail it to Auto Outlook, P.O. Box n n

Forklift Safety Forklifts are being operated in an increasing number of dealerships. Technicians are using them to lift engine blocks and to move pallets of parts. However, they are dangerous in the hands of an inexperienced driver. OSHA has issued regulations specify- ing general requirements for “pow- ered industrial trucks” (forklifts) safe- ty and training. These regulations should be reviewed to ensure that your dealership is in compliance. 8 dealers are job creators in every com- munity in every county in this State. It also shows that dealers generate over $1 billion in sales, property, and employment/payroll tax revenue each year, which is crucial to the services that local and state government pro- vides for local residents. According to OSHA requirements, training must include: The employer must ensure that a forklift operator is competent to operate a powered industrial truck safely, as demonstrated by the n The GNYADA Franchised Dealer Economic Impact Study is one of the most important surveys we do each year. Your participation in the 2014 Study is essential. Current, reliable information allows GNYADA to demonstrate the positive economic impact dealers have. This information allows us to tell the story to state and local legislators, key policymakers such as DMV, County Executives, and the media on how important car dealers are in this region. The data that you and other dealers in the region provide to us in this ques- tionnaire is the proof that new car

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All operator training and evaluation must be conducted by persons who have the knowledge, training, and experience to train powered indus- trial truck operators and evaluate their competence. For assistance with this OSHA requirement or any other OSHA compliance concerns, contact Bill Cordes at Bill@gnyada.com or 917.763.5318.

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

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9 FTC Hits Dealers in New Sweep Results in 187 Enforcement Actions – $2.6 Million in Judgments

Loan Application Fraud– dealers used straw purchasers or changed customer information on credit appli- cations to ensure loan qualification for vehicles customers may not have been able to afford. The FTC expressed particular concern over purchase add-ons sold by deal- ers. The agency settled with a New Jersey dealer and a company offering bi-weekly payment plan to customers. The FTC claims that these bi-weekly pay plans include service fees that exceed any potential savings gained from the bi-weekly payments. Fines & Liability The NJ dealer will pay $184,000 to the FTC while the company offering the automatic bi-weekly payment plan will pay $1.5 million to consumers and $949,000 directly to the FTC. The Agency indicated that criminal prosecutions could be forthcoming seeking sanctions, including jail time, for individuals (i.e.: sales people, sales managers and F&I) found to have committed bank or wire fraud or other wrongdoing.

the mortgage industry have now been assigned to focus their attention on auto dealers. The FTC also said that enforcement action against auto deal- ers is ongoing. GNYADA is hosting a Compliance Seminar on April 21 at GNYADA’s CAET. See the enclosed flyer or email phyllisa@gnyada.com . FTC Compliance Advertising Compliance for Dealers APRIL 21, 2015 10:00am – 12:00pm Center for Automotive Education & Training The FTC has targeted the auto industry for enforcement activity. Experts will review the FTC’s recent activity to inform dealers how to avoid the same mistakes. Deceptive advertising remains a hot topic for enforcement at the local, state and federal levels. Join the discussion by con- tacting Phyllis at GNYADA.

The Federal Trade Commission (FTC) released the results of

Operation Ruse Control, an enforce- ment sweep of car dealers’ practices on a national conference call with the media and interested parties last week (March 26). The FTC partnered with criminal and civil enforcement agen- cies in the latest investigation. This is the second sweep within a two year time period. Purchase Add-ons– products or services sold by a dealer or third party and added to finance contract or lease. For example, the FTC found a dealership that misrepresented a pay- ment program that claimed it would save customers money. However it failed to disclose that the significant fees it charged for the service often cancelled out any savings. Deceptive Advertising– Bait and Switch advertisements. For example the FTC found ads offering promo- tional prices and rebates, but dis- claimers in very small print eliminat- ed customers from qualifying for advertised promotional rates. The FTC targeted these specific practices it found to be deceptive:

The FTC indicated that their fraud investigators, previously assigned to

GNYADA Annual Membership Meeting

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When: Monday, June 15, 2015 Time: 10:00 am - 11:30 am Where: Old Westbury Golf & Country Club Old Westbury, New York

Join fellow dealers and allied members at GNYADA’s Annual Membership Meeting . We will report on the Association’s programs, successes, and advances this past year and what’s on tap for the coming year. New Directors and Officers will be installed at the meeting. Come network with other dealers, our sponsors and with industry suppliers, who will be present for a mini-trade show.

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

The Newsletter • April 2015

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David Karp Named TIME Quality Dealer David Karp, president of Karp Automotive on LI, was one of a select group of 55 dealers from across the country to be honored as a nominee for the 2015 TIME Dealer of the 11

Year award at the 98th National Automobile Dealers Association Convention & Exposition in San Francisco.

“We take good care of our employees and they in turn take good care of our customers,” Karp said. “We heavily involve ourselves in our community and promote charity, community spirit and fair business practices.” “Our children are our future,” he said. “Karp Automotive has provided more than 85 scholarships to graduating high school seniors, and we are proud to see them flourish. We also assist mentally challenged students by providing an opportunity for them to enjoy a non-threatening learning experience in our workplace.” Karp, a third-generation dealer, graduated from South Side High School in Rockville Centre in 1967. He earned a B.S. in economics from Syracuse University in New York in 1971 and a J.D. from University of Miami in Florida in 1975. He practiced law in Miami for five years before returning to his family’s business in 1983.

David Karp is also a member of the Board of Directors of the Greater New York Automobile Dealers Association, and has been active on its committees. The Association offers congratulations to David Karp for this well- deserved recognition. Matt Gallagher, Director, Integrated Marketing TIME; David Karp, GNYADA TIME Dealer of the Year Nominee; Robert Vail, GNYADA Chairman; Mark Schienberg, GNYADA President; Tim Russi, President, Auto Finance, Ally Financial.

How Are You Ensuring That Your Customer Experience Is ‘Social-Media’ Friendly?

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You may have seen this great story featured on the news or in your per- sonal social media newsfeeds. A young man was about to go on his first job interview, so he went in to his local Target store to purchase a clip-on tie. But the store didn’t sell clip-ons, only traditional neckties. Unfortunately, this young man did not know how to tie a tie. So the Target employees went a step above and beyond. First, they assisted the young man by showing him how to make a traditional necktie knot. Then, they tucked in his shirt, doled out some advice about looking the inter- viewer in the eye and offering a firm handshake, and wished him luck before sending him on his way.

What makes this story remarkable is that this great service moment was not shared by the Target Company or by the customer. It was shared by a customer who happened to be shop- ping in the store that day. As the cus- tomer observed this moment, she snapped a few photos and shared them via her personal social media accounts. The photos went viral and appeared on news media outlets worldwide. This story also demonstrates how social media can so quickly and easi- ly become the vehicle through which customer interactions and service- delivery moments—both good and bad—can be shared worldwide. In other words, now more than ever,

dealerships must assume that their customer service experience is com- pletely transparent to the public through social media. So make sure your service is exceptional.

A Target customer photo showing excep- tional customer service that went viral.

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

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13 New FMLA Definition of Spouse

marriages may take FMLA leave to care for their spouse or family mem- ber, regardless of where they live and work. In other words, if a same-sex couple is validly married, they are “spouses” for FMLA purposes and can fully exercise their FMLA rights. The revised rule also applies to same- sex couples who were married out- side the United States, as long as the marriage was valid where entered and would be considered valid in at least one U.S. state.

Take qualifying exigency leave due to their lawfully married same-sex spouse's covered military service, or Take military caregiver leave for their lawfully married same-sex spouse. Dealers should educate supervisors about the new definition and its potential impact on FMLA leave requests and ensure they administer the FMLA rules equally and fairly with respect to all eligible employees. For additional information on the FMLA, including information and fact sheets on the revisions, visit http://www.dol.gov/whd/fmla/spouse/ index.htm . n n employer responsibility provisions. Labor laws dependent on the size of the employer, like the Family and Medical Leave Act, could also be affected. Dealers are encouraged to review their procedures for determining whether a worker is an independent contractor or employee. Visit the links below for information factors used to determine employee or inde- pendent contractor status: http://www.irs.gov/Businesses/Small- Businesses-&-Self- Employed/Independent-Contractor- Self-Employed-or-Employee

Effective March 27, 2015, workers in same-sex marriages will now have the same rights as eligible opposite- sex couples under the Family and Medical Leave Act (FMLA). Previously, the FMLA regulations defined "spouse" to include only mar- riages that were legally recognized in the state where the employee lives. Under the old rules, an employee in a same-sex relationship who lawfully married in NY but lived and worked in Kentucky, would have been denied FMLA leave to care for a spouse with a serious health condition. The new definition of spouse amends the regulatory definition of spouse so that eligible employees in same-sex If your dealership has 50 or more full-time employees, then the Affordable Care Act requires that you provide health insurance. Some employers, seeking to avoid expenses related to providing health insurance, may improperly categorize staff as independent contractors. The IRS is highlighting the distinc- tion between employees and inde- pendent contractors for compliance with state and federal guidelines. If the IRS finds that enough workers at a company are mislabeled as contrac- tors and not employees, then stiff penalties apply. These penalties are based on the entire payroll, not just the number of misclassified employees.

As a result of this change eligible employees will be able to:

Take FMLA leave to care for their lawfully married same-sex spouse with a serious health condition,

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14 Independent Contractor or Employee? Affordable Care Impact

that wants to hire a New Yorker is more likely to be on the hook for payroll taxes and perhaps even health coverage. Dealers should review the classifica- tion guidelines set by both the IRS and the New York State Department of Taxation for the factors that will help you determine whether your employees are properly classified. Affordable Care Act Implications The IRS may deem an employer a large employer for purposes of the ACA if it determines that workers have been wrongly classified as inde- pendent contractors rather than employees. If the number of misclas- sified workers brings the employer to over the 50-employee threshold, the dealer must also be concerned about the implementation of the ACA’s

https://labor.ny.gov/formsdocs/ui/ia31 8.14.pdf

New York is especially strict when it comes to the distinction. A business

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

The Newsletter • April 2015

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Auto Outlook- Benefit of Membership

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As an added benefit of your Association membership, GNYADA provides you with monthly issues of New York Auto Outlook . New York Auto Outlook is a report about both new and used vehicle sales in the twelve-county New York Metro Area. The report also provides clear indicators of individual brand performance and forecasts of new vehicle sales in area markets. March New York Auto Outlook: According to the March Auto Outlook, the Metro Area used vehicle market got off to a good start in 2015, with used registrations increas- ing 5.1% in January of this year ver- sus a year earlier. Extremely cold weather held back the new vehicle market in January, as new retail registrations declined slightly versus a year earlier. Indicators are predicting a small increase in February, with more

increases likely to come later this spring.

Additional Highlights of the March’s New York Auto Outlook include: Monthly registrations increased an estimated 7% in February of 2015 versus a year earlier. The New York Metro market increased 2.9% in new vehicle sales during the first two months of this year. SUV market share rose to 48.7% thru February of this year. The top performers in the first two months of 2015 with a 10% increase in registrations are Chrysler, Lexus, GMC, Subaru, Acura, and Jeep. GNYADA emails electronic versions of the report monthly to members. You can also find current and past issues of the New York Auto Outlook on our website, www.gnyada.com/ dealers/news/outlook . n n n n greater New York area for 105 years. We are one of the oldest and most recognized dealer associations in the country. GNYADA works to keep dealers informed about important, ever- changing issues, trends, and legisla- tion within the franchised new car marketplace. In addition to influenc- ing legislation, the Association con- tinues to provide dealers with compli- ance solutions, newsletters, seminars, invitations to association events, access to members-only offers, as well as many other benefits that sup- port the needs of our members and

If you are not receiving your monthly issue of New York Auto Outlook con- tact Jennifer Berman, Director of Member Services at 718.746.5900 or Jennifer@gnyada.com .

95% of Dealers Renewed GNYADA Membership

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GNYADA thanks everyone who renewed their 2015 membership.

the communities they serve.

When renewing your dues, we sug- gest that you also make a contribution to the Association Pro-Dealer PAC and keep our voice strong in Albany. GNYADA’s Political Action Committee is the largest retail PAC in the state of New York. Please remit payment for dues before your membership expires. For assis- tance contact Jennifer Berman, Director of Member Services at Jennifer@gnyada.com or 718.746.5900.

There are a small number of dealer- ships that have not yet paid their 2015 dues. We urge you to pay your dues immediately. If dues payment is not received by April 1, 2015, your membership will be placed on hold and your dealership cannot attend programs offered by GNYADA or take advantage of our services. A GNYADA Membership is a valu- able asset for your dealership. The Association has been representing the interests of new car dealers in the

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

The Newsletter • April 2015 9

Grow Your Own Service Technician Since 1995, the Greater New York Automobile Dealers Association’s AYES Internship Program has pro- vided more than 700 high school stu- dents with the opportunity to partici- pate in paid, educational internships during the summer and the academic year. to helping students who aspire to be automotive technicians by furthering their education. AYES Internships offer automotive students the oppor- tunity to explore this field in a hands- on professional work environment. The internship program has been hugely successful, many former interns are now gainfully employed 17

School coordinators are now looking to place qualified AYES students in local dealerships. If you would like to provide such an opportunity for one or more students in your community contact Stephen Mercaldo, GNYADA’s education consultant at stephen@gnyada.com.

The AYES Internship program pays tribute to the Association’s dedication

as full-time service technicians throughout the greater NY area.

Making Your Service Department Mobile Friendly In last month’s newsletter, we warned about the dangers of texting promo- demonstrating to the customer exact- ly what is going on, right there in the lane. 18

These images become part of your vehicle service recommendations. This helps take the pressure off sales and increases your overall closing percentage. Remember that these images are to be used in real time and to help establish a relationship with your cus- tomers. Marketing via text messaging is still prohibited unless the consumer has given advanced consent in writ- ing after receiving required disclo- sures. But using mobile technology to create a transparent service depart- ment is sure to increase your CSI.

tions to your customers. But using mobile technology isn’t dangerous all the time. In fact, used correctly, mobile technology can make your customers feel more in control of their experience. Your service department is the perfect example of how you can use mobile technology effectively. With a multi- point inspection tool that includes mobility, a technician can document every step of the inspection process on a phone or tablet – including real photos of vehicle issues – and

Service advisors and customers can scroll through photos and line items together to make decisions on next steps. The customer feels involved and appreciates the individualized approach. Not only can the service technician make recommendations about immediate needs, but he or she can map out a maintenance plan with the customer by going over items on a mobile device. The customer can see the leaky oil pan and note that the brake pads are starting to get worn.

Dental Insurance with Maximum Rollover According to a recent study Dental Insurance is the second most popular coverage requested by employees. Dealers can easily sign up to provide this popular benefit for employees. Rollover allows a qualifying member to roll over unused annual maximums into a personal account. This account can be used to provide extra dental coverage in years where the insured 19

GNYADA’s Insurance Brokerage offers quality Dental Insurance plans at an affordable price. GNYADA’s Insurance Brokerage can help you with Dental Insurance and Maximum Rollover Plans. You can reach Michael W. Conway at mcon- way@gnyada.com or 718.746.8100.

may have maxed out their annual coverage, and faces unexpected dental issues. This feature, which can be part of a PPO plan, gives employees access to a wide network of dentists.

One of the more popular features in Dental Insurance available through GNYADA’s Insurance Brokerage is called Maximum Rollover.

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

The Newsletter • April 2015

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20 Yes, Millennials Love Phones, But They Love Cars More

Myth #3 : Millennials don't like cars and don't find them essential.

With so much current speculation around Millennials interest in owning cars, MTV's new research study “Millennials Have Drive” uncovers an increase in young people's passion for cars and car ownership. The findings debunk the following five major myths about young people and the auto industry: Truth : Even among today's growing public transportation options, driving is still Millennials' go-to mode. 80% of Millennials get around most often by car. Myth #2 : Millennials don't want to drive, have no interest in getting their license. Truth: State laws are holding teens back as they now have driving restrictions placed on them that other generations did not face. Myth #1 : Millennials don't drive.

6 in 10 young people would rather buy than lease a car 1 in 3 young people plan to buy and/or lease a new car within the next 6 months Myth #5 : Millennials one true love is technology, especially their phones, and cars cannot compete for their attention. Truth : Unlike previous generations - Millennials see both their car and their phone as a necessity to social connection. In fact, 92% agree that having a smart phone does not replace the need for a car Overall, Millennials value their cars and phones for similar reasons – accomplishing tasks, freedom, explor- ing new places and learning new things. They also agree that both allow for them to interact with friends and family and protects them from the fear of missing out (FOMO)! n n

Truth : Young people not only like cars but are passionate about them. 70%of Millennials enjoy driving 75% of young people agree "they couldn't live without their current car" 60% of Millennials said "they feel like losers among their peers with- out their cars" Myth #4 : Millennials are forgoing the purchasing of cars and other big ticket items. Truth: With the warming of the econ- omy and more young people heading into the workplace and, subsequently, accumulating more savings, Millennials are looking to buy cars. 8 in 10 Millennials see cars as the one big ticket item their age group purchases 3 in 4 Millennials believe they have a lot of purchasing influence n n n n n

NADA Article: Tax Implications of Dealership Facility Image Upgrades

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Many auto dealers have renovated their facilities as the result of factory- mandated image programs. These programs typically involve factory financial assistance to participating dealers to offset a portion of their investment. Dealers often assume they can reduce the cost basis of this investment by the amount of factory assistance received and are surprised to learn that IRS issuances to date state that

this amount is taxable income in the year it is earned.

ing firm Boyer Ritter outlines these mechanisms and provides an example of how applying them may help a dealer to preserve a manageable cash flow. Dealers are encouraged to share and discuss this article with their tax advisor.

Dealers should be aware, however, that there are several mechanisms available to them that may be able to reduce the impact of the current tax obligation associated with factory image program payments. In a brief article entitled Tax Implications of Dealership Facility Image Upgrades, the dealer account-

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

The Newsletter • April 2015 11

EMPLOYMENT CORNER

April Seminars

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 .

RECEPTIONIST TRAINING April 16, 2015

First impressions are critical. Is your receptionist portraying the image you want? ADVANCED MANAGEMENT SKILLS AND TECHNIQUES April 21, 2015 Develop proactive approaches to meet the complex challenges of your team. ADVERTISING COMPLIANCE FOR DEALERS April 21, 2015 Avoid costly consequences of advertising missteps.

POSITION

RESIDES IN

FILE #

OFFICE

Biller

Bronxville Forest Hills

135 136 137

Yonkers

Bookkeeper

Manhattan

138 122

Staten Island

Office Manager

Brooklyn Flushing

139 140

MAxIMIzE PROFITS IN PRE-OWNED VEHICLES April 22, 2015

SERVICE

Most customers do research before they buy…are you doing yours?

Entry-Level Service Techinian Brooklyn

141

Service Cashier/ Receptionist

THE DOS AND DON’TS OF AUTOMOTIVE BILLING April 23, 2015 Learn the essential steps to becoming an efficient and effective biller. All classes take place at the Center for Automotive Education & Training. To register for these classes or for more information contact Carole Rogner, 718.646.2012 or carole@gnyada.com .

Massapequa

142

Warranty Admin. Parts Manager

Flushing

143

Contact Us: 18-10 Whitestone Expressway | Whitestone, NY | 11357 Dealer Hotline: 800.245.4640 GNYADA Headquarters: 718.746.5900 E-Mail: assistance@gnyada.com DMV-DIRECT: 718.747.0400 GNYADA Insurance Brokerage, LLC: 718.746.8100 New York International Automobile Show: 718.746.5300 Center for Automotive Education and 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 2015

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

The Newsletter • April 2015

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