GNYADA March 2017 Newsletter

2 Used Car Recall Disclosure a Priority Dealers trying to keep up with what needs to be done to sell a used car subject to an open recall face a confusing maze of different The signed acknowledgment from the customer should indicate the following:

available from the manufacturer.

policymakers in Washington, D.C., to explain the negative impacts a BAT could have on the costs of vehicles. NADA Chairman Mark Scarpelli called for BAT advocates to prove how a border tax or import tariff would ease the vehicle affordability problem already confronting millions of dealership customers. Mr. Scarpelli urged dealers to stay engaged with their representatives in Congress regarding this matter, and pledged to represent the interests of dealers and their customers as tax reform moves forward. 3. If the car the dealer is selling is not the dealer's brand, the dealer will arrange to have it repaired by a franchise dealer which sells that brand before the customer takes delivery or will notify the customer that they need to make the repair. If repair parts are unavailable, the acknowledgment should state this, too. 4. If the customer accepts the vehicle at the agreed price after disclosure of a recall is made, the customer should sign and date the acknowledgment. A copy of this acknowledgement should be given to the customer, and the dealership should retain a copy, in addition to the recall report. Dealers are advised to consult their attorney for a specific acknowledge- ment form to be used for their dealership. For further questions about creating this form, please call the Association at 718.746.5900.

Means Committee. NADA warned about a BAT’s potential to raise expenses (taxes, cost of goods) on companies with global supply chains, in turn causing reductions in employment and higher prices falling to consumers. One of NADA’s – and the automotive industry’s – largest worries is the prospect of a border tax or import tariff raising the cost of all imported vehicles, as well as American-made vehicles containing parts manu- factured overseas. NADA has been steadily communicating with 1. That the dealer has disclosed, and that the customer has received, a report about open recalls as found on safercar.gov , prior to delivery. 2. If the car is the dealer's brand, then either: The dealer will repair the vehicle prior to delivery, or Parts are not yet available from the manufacturer, but the dealership will notify the customer as soon as the repair can be made, free of charge, or The safercar.gov report shows no recalls on the vehicle but a bulletin from the manufacturer has alerted the dealership about a recall, in which case the repair will be done either prior to delivery, or as soon as parts are n n n

information from numerous agencies. The FTC, the State Attorney General, DMV, and the NYC Department of Consumer Affairs are a few groups that oversee dealer practices, and each have given their opinions and guidance on this issue. The difficulty for dealers is that the guidance is not always the same; however, one area where these agencies overlap is the requirement of disclosure. Dealers are advised to disclose any recall on a used vehicle to the customer and to have them sign an acknowledgement that they have been provided that information before delivery. Providing the customer with a report from NHTSA’s safercar.gov website, along with any information from your OEM, is the best way to meet the agencies’ requirements.

NADA Director’s Column Every Dealer Should Have Concerns About a Border Adjustment Tax

NADA Director for Metro New York Bob Vail, Vail Buick GMC

Voicing concerns over a possible Border Adjustment Tax (BAT) has become a priority issue for NADA. The organization recently joined with a group of business associations in contacting Representative Kevin Brady, Chairman of the Ways and

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

The Newsletter • March 2017 3