GNYADA May 2018 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

MAY 2018 Volume 28, Issue 2

1 New York Auto Show Bucks Trends 118-year-old institution has one of its biggest shows in history

HIGHLIGHTS

NADA Director’s Column page 3

Rules for Vehicle In-Transit Permit page 4

EPA to Revisit 2012 Greenhouse Gas Standards page 5

NY Rules for Interns page 6

We’ve heard the so-called experts who say auto shows are no longer viable. They say the steam is running out on these over 100- year-old events. They argue that baby boomers have less need for vehicles as they go into retirement, that millennials are more interested in their phones than their cars, and that everyone is looking forward to self-driving cars and car sharing rather than owning their own vehicles. Well, the 2018 New York Auto Show just proved them all wrong! This year’s Show was one of the highest- attended New York Auto Shows in its 118- year history, with a 14% jump in public attendance from 2017. Debuting more than 60 world and North American vehicles, attracting over one million visitors, and fea- turing all major manufacturers, North America’s first and largest-attended auto show debunked all those statements that auto shows’ best days are in the past. Whether attendees were in the market for a

new vehicle or simply window shopping for the sports car of their dreams, this year’s Show had something for everyone. From sedans and crossovers to hypercars and lux- ury vehicles, this year’s NYIAS featured a number of important new car debuts cover- ing nearly every segment. This year’s theme, “Forward Fast”, was cre- ated to tell the story of the automotive industry’s rapid technological acceleration. Show attendees got a glimpse of the most innovative and technologically advanced vehicles the world has to offer. Most importantly, according to early reports, a large number of Auto Show visi- tors indicated that they are in the market to buy or lease a vehicle within the next 12 months. Complete stats and attendee profile analysis will be included in the 2018 Show’s Year in Review to be distributed to members later this spring. (continued on page 2)

When Something Smells Phishy: Steer Clear of Fraud page 7 How Will the Tax Cuts and Jobs Act (TCJA) Affect Dealers? page 8 Buyers Prefer to Close the Deal at Dealerships page 11 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

Dealer Hotline 718.746.5900

www.gnyada.com

1

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

With one of the biggest years ever for new vehicle introductions, the 2018 Show was off to a fast start. From high volume models like the all-new Toyota RAV4 and Nissan Altima to luxury intros from Cadillac and Lincoln, press and industry witnessed more than 60 world and North American vehicle debuts. The Show also featured a number of important events including a special sneak peek for dealers during Dealer Preview night, the World Car Awards, and the National Automotive Technology Competition. When the doors opened to the public, over one million visitors got to come inside and see the latest models up close. 2018 New York Auto Show Highlights

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

The Newsletter • May 2018

2

NADA Director’s Column The Sky is Not Falling by Bob Vail, Vail Buick GMC, NADA Director Metro New York

millennials would give up owning a car for exclusive ride-hailing or car sharing; Time is valuable: Ride-hailing users wait an average of nine minutes for each ride. Considering the fact that the average household takes about 10 trips per day, that is a lot of waiting. 90% of survey respondents said they like the flexibility, convenience, and control of car ownership. They view this as a key benefit that doesn’t exist n

with ride-hailing services. NADA’s survey found that the ride- hailing services are beneficial in urban areas but whether the vehicles are autonomous or not, the future of transportation will be personally owned vehicles. NADA’s article can be read it its entirety at https://blog.nada.org/2018/ 04/09/the-future-of-personal-vehicle- ownership/

Many news outlets would have you believe that ride-hailing, autonomous vehicles, and car sharing are going to spell the end of personal vehicle ownership. NADA commissioned a national, large-scale consumer research project to find the truth. Some of the key findings are: Cars are not an inconvenience: Only 6.5% of car owners view ownership as “a hassle”; n

Millennials are interested in buying cars: Only 19% of

n

2 DMV Begins Sign-up for Mandatory Electronic MV-50s Program

DMV is moving rapidly toward its goal of having VERIFI fully implemented by July. Dealers should have already received notice that enrollment has begun. This mandatory program will make the MV-50 and book of registry almost completely electronic (only certain sales will be exempt). Dealers have been asked to register by May 31st in order to become familiar with the program’s features before its launch. Registration will require executing a contract (Facility Participation Agreement) with Vanguard Direct, the program vendor. Before registering, GNYADA strongly encourages attending one of the three regional training sessions the Association has arranged for its members. GNYADA members will receive an in-person orientation and demon- stration of the eMV-50 program and have questions answered directly by DMV and Vanguard. These live training sessions will: n Provide dealers with a step-by-step demonstration, from registration to eMV-50 processing; n Inform dealers about identifying administrators and their roles and responsibilities and identifying addi- tional authorized users; n Educate dealers about the requirements of processing transactions electronically;

n Explain the new eMV-50 and online ordering; n Demonstrate new Temporary Registration processes; n Explain the new electronic Police Book (Book of Registry); n Demonstrate how dealers can generate specific reports; n Dealer Q & A.

eMV-50 Regional Training Sessions

May 15, 2018 • 9:30am–11:30am Center for Automotive Education & Training 15-30 Petracca Place, Whitestone, NY 11357 May 22, 2018 • 9:30am–11:30am Westchester Marriott 670 White Plains Road, Tarrytown, NY 10591 May 24, 2018 • 9:30am–11:30am Melville Marriott 1350 Walt Whitman Road, Melville, NY 11747 This program is free for GNYADA members. To register, select the preferred date and location and contact Kelsey at kelsey@gnyada.com or by phone at 718.746.5900.

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

The Newsletter • May 2018 3

3 Governor’s Office Issues Misleading Press Release about Consumer Complaints Last month, Governor Cuomo issued a press release titled, MORE THAN $1.3 MILLION RECOVERED FOR CONSUMERS FROM DEALERS AND REPAIR SHOPS . After analyzing DMV records showing how this data was compiled, GNYADA determined that franchised new car dealers were not significant offenders. Statewide, only 8% of complaints and only 12% of the amounts recovered were related to franchised new car dealer sales. When combined with their service centers, new car dealers represent only 12% of the complaints and 15% of the amount recovered. Reading the press release, one would believe that the complaints and fines were all attributable to wrongdoing by new car dealers. In fact, franchised new car dealers continue to provide New York consumers with the highest of satisfac- tion. The below charts accurately show what a small part of the problem new car dealers are:

Complaints

Fines

GNYADA will request that any future press release of this nature separate consumer complaints about independent used car sales and repair industry from those about franchised dealers.

4 Rules for Vehicle In-Transit Permits

Here are a few rules to keep in mind when issuing an in-transit permit: A permit can be issued only to a customer who intends to transport the vehicle to register it outside of New York State; An in-transit permit is good for only 30 days, including the day on which it is issued; All issued permits must have the Issue Date, Expiration Date, Part n n n

1, and Part 2 completed. Keep one copy of the permit for your files and send one to NYS DMV; Remove the tear-strip on the right side of the permit and submit it to the NYS DMV along with all the necessary copies to have the permit processed and removed from your inventory. This must be submitted to DMV or to whomever processes your DMV work within five (5) calendar

days, as you would all other DMV work; The state of Massachusetts DOES NOT recognize in-transit permits from any state. Vehicles with in- transit permits cannot be driven on MA roads; The Buyer Eligibility documents required to issue an in-transit permit can be found in the Dealer Plate Issuance Manual (MV-461) Section 4.

n

n

n

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

The Newsletter • May 2018

4

Keep References for Ex-Employees Brief

5

employee designated to respond to such inquiries is the best way to avoid these claims. Even if the negative information is 100% accurate, proving so in court can be laborious and expensive. Of course, employers must ensure that false information, negative or positive, is never communicated in employment references. Note: New York City and, starting July 9, Westchester County bar employers from asking a potential employee their salary history. This law seems to be gaining in popularity throughout the state, so GNYADA members are advised not to offer salary history unless specifically requested.

In New York, an employer can be sued for giving a negative employment reference so dealers are advised to provide only a limited, neutral response to reference requests

employee didn’t part on good terms, the employee may claim that this, and not their actual job performance, is the reason for the negative reference. Another danger is the potential for retaliation under employment laws. Most employment laws including, but not limited to, anti- discrimination and wage-and-hour laws include anti-retaliation provisions that prohibit an employer from retaliating against a current or former employee because the employee filed a lawsuit or complaint. Maintaining and consistently following a policy of providing only neutral references containing the most basic information and having an

confirming only dates of employment, and title.

The most common claims that can be brought against employers who give negative references are: Defamation: The ex-employee may believe the reference is untrue or unfairly incomplete. For n

example, wording may be interpreted as blaming the employee for an error when multiple parties were at fault.

Retaliation: If the employer and

n

EPA to Revisit 2012 Greenhouse Gas Standards 6 On April 2, 2018, EPAAdministrator Scott Pruitt signed a Notice, “Mid- term Evaluation of Greenhouse Gas Emissions Standards for Model Year revised. The actual changes will be determined with NHTSA in to the equation isn’t just the highest possible standard; it’s the highest standard we can achieve while keeping vehicles affordable.”

rulemaking expected later this year. NADA President and CEO Peter Welch said that, “Dealers fully support continuous improvements in fuel economy, and we fully support fuel economy requirements that will encourage fleet turnover. But the key

2022-2025 Light-Duty Vehicles.” This Notice finds that the standards set in 2012 are, in light of the most recent data on factors such as fuel prices and consumer acceptance, no longer appropriate and should be

The New York Attorney General, with Attorneys General from other states, has sued to prevent this from happening.

Franchise Law Roundtable May 10, 2018 10:00 a.m. – 12:30 p.m. | Center for Automotive Education & Training Douglas Clark, Esq. (Shenker Russo & Clark LLP), Russell P. McRory, Esq. (Arent Fox LLP), and Richard N. Sox, Esq. (Bass Sox Mercer) will discuss how dealers can better protect their investments by understanding their rights and the protections available under the existing Franchise Law. GNYADA is helping dealers prepare for the future by seeking Franchise Law updates to increase protections against a variety of challenges, like manufacturers, start-up retailers, and millennials.

Save the Date

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

The Newsletter • May 2018 5

7 NY Rules for Interns

8 Hiring Minors

The U.S. Department of Labor (DOL) has changed its test to determine whether workers are interns or employees to be more favorable to employers. New York has its own standards that are, stricter than the federal standard. To be a valid internship under NY law, make sure: 1. The internship is similar to training that would be given in an educational environment. 2. The internship experience is for the benefit of the intern (such as earning school credit). 3. The intern does not displace regular employees and works under supervision, beyond ordinary staff supervision. 4. The employer that provides the training derives no immediate advantage from the activities of the intern. 5. The intern is not necessarily entitled to a job at the conclusion of the internship. An internship should run for a fixed, preset period; if it is treated as a trial period that will lead to employment, the intern will likely be considered an employee. 6. The intern is notified in writing, before the internship starts, that they are not entitled to wages. 7. Anyone supervising or directing an intern’s hands-on work must have sufficient industry experience and knowledge. 8. The intern does not receive employee benefits. 9. The training is general and gives the intern skills that are transferable to any similar employer in the field. 10. The intern screening program is not the same as that for new employees; it only uses criteria relevant to an independent educational program. 11. Any advertisements, positions, or solicitations clearly discuss education or training. A dealership that satisfies all of these factors with their unpaid interns is likely to be compliant. Partnering with schools, colleges, or programs where the intern receives course credit and works with a professional mentor, is also likely to satisfy the exemption requirements. n Put the terms of the internship in writing. n Do not guarantee that the intern will transition to a job. n Teach skills that are broader than on-the-job training that new employees receive. n Supervise the intern to ensure they are learning new skills. n Ensure the internship provides more educational benefit to the intern than it provides service to the dealership. How to avoid violations:

Federal and State Department of Labor guidelines: Individuals under 14 cannot work at a dealership; those under 18 must have working papers and are subject to the following hours restrictions:

Minors cannot perform certain tasks at a dealership, such as handling hazardous materials, operating certain power- driven machinery (like a hoisting apparatus), or act as a helper on a motor vehicle. These prohibitions do not apply to minors enrolled in an apprentice program registered with the DOL, such as the GNYADA-sponsored school- to-work Automotive Youth Educational Systems program. Employers must make a schedule for all minors, setting forth the hours each minor starts and ends work and the time allotted for meals. This schedule, and any changes made to it, must be posted conspicuously in the workplace. n 16-year-old licensed drivers may drive dealer vehicles on dealership property only. n 17-year-old licensed drivers, who have completed a drivers’ education course and have no record of moving violations, may drive on public roads within a 30-mile radius of the dealership, during daylight hours, in vehicles that weigh no more than 60,000 lbs GVW. They are limited to two trips per day when transporting non-employee passengers and may not transport more than three passengers (including employees) at a time. Minors are also subject to driving restrictions:

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

The Newsletter • May 2018

6

Posting Labor Rates 9

diagnostics and another for repair time. Remember, this rule applies only to posted signs. Estimates and invoices must contain specific information about the labor rate charge and calculation as well as specifically listing labor and parts. If a dealer gives an estimate based on a flat-rate manual, they must provide the name of the manual used.

“Phishing” emails, where cyber- criminals use a fake identity to coax employees into sharing information or transferring money, are becoming increasingly common. While phishing may seem easy to spot, the practice can be quite manipulative and clever so dealers need to be aware. Consider this scenario: while a dealer principal is on vacation, a finance employee receives an urgent email. It appears to be from the dealer principal, as it’s from their email address, contains authentic information regarding the trip, and addresses the employee by name. “I need your help. I need you to wire $20,000 into this account right now. I trust you can handle this for me. Please keep this between you and me for now, and I’ll explain on Tuesday.” This message looks legitimate, so the employee acts quickly. Once the transfer occurs, however, that money is lost forever. The dealership just became the victim of an email fraud. Dealers can, but do not have to, post what they charge for labor. However, New York’s Motor Vehicle Repair Shop regulations require that dealers post signs explaining how labor rates are calculated. Shops can calculate labor rates using clock hours and/or flat-rate manuals. Either or both can be used to reflect work being done on one vehicle. Posting only the calculation allows repair shops the freedom to charge different rates based on how hard the job is or what type. For example, a shop could charge one rate for

For free labor rate signs, call GNYADA at 718.746.5900.

When Something Smells Phishy: Steer Clear of Fraud 10

Fraudsters are looking to spot weaknesses in a dealership, and these weaknesses could be employees’ lack of understanding of cyber fraud. In order to prevent phishing, it’s important to assess risks and educate your employees about common signs of trouble. While cybersecurity may seem overwhelming, taking small steps can prevent major losses. GNYADA thanks John Kratsch, (john.r.kratsch@baml.com, 862.485.4467) Dealer Financial Services Relationship Manager, Bank of America Merrill Lynch, for this article. This communication is for educational purposes only.

The nature of the business makes auto dealerships particularly vulnerable: Dealerships handle a lot of money – Fraudsters aim to intercept one of the larger transactions or access bank account information. Many dealerships operate like small businesses – Although dealerships handle a lot of inventory, they often have a close, family-like office culture. Because staff is small, there is a lot of trust in one another when handling important information. Dealerships often don’t have the same control processes as larger companies. Wire transfers – Because you can’t transfer the ownership of a vehicle without a title, most vehicle transfers are conducted via a wire transfer or treasurer’s check, two common targets for fraudsters. n n n

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

The Newsletter • May 2018 7

How Will the Tax Cuts and Jobs Act (TCJA) Affect Dealers? 11

have been made eligible for this deduction, which is a benefit as long as it does not cause the phase-out to kick in. Temporary 100% bonus depreciation on qualified business assets: For new or used qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023, a 100% first-year deduction is permitted for the adjusted basis. Beginning in January 2018, dealerships will not be able to use the 100% bonus depreciation. Congress decided to offset bonus depreciation with the continued deduction for interest on floor plan financing, which had the potential to be limited under the new law. Limitation on deduction of business interest: For tax years beginning after December 31, 2017, every business is generally subject to a disallowance of a deduction for net interest expense, in excess of 30% of the business adjusted taxable income. This will apply to capital loans, mortgages for image program improvements,

and owner loan interest. n Exceptions: Average annual gross receipts of less than $25m for a three-year tax period ending with the prior tax year; floor plan financing. Entertainment expenses: For amounts incurred or paid after December 31, 2017, the only allowable entertainment expense deduction is 50% for business meals. Estate and gift tax exemption: For estates gifted after December 31, 2018 and before January 1, 2026, the estate and gift tax exemption is increased to $11.2m per person, $22.4m for a married couple. The TCJA ushers in significant changes so dealers are advised to consult their tax advisers to understand the business and personal implications. Dealers who are NADA members can read “A Dealer Guide to the Tax Cuts and Jobs Act of 2017” at https://www.nada.org/WorkArea/Dow nloadAsset.aspx?id=21474853930 n n

The Federal Tax Cuts and Jobs Act (TCJA), signed into law on December 22, 2017, encompasses many changes that will directly impact dealers and dealerships. Some changes include: New deduction for pass- through income: Generally, for tax years December 31, 2017 – January 1, 2026, an individual taxpayer with Qualified Business Income (QBI) from a partnership, S-corporation, or sole proprietorship can deduct up to 20% from QBI, depending on various limitations. If applicable, this can reduce the effective tax rate for dealership taxable income from 37% to 29.6%. Reduction of Corporate Tax Rates: Under the TCJA, C-corporations are taxed at a flat rate of 21%. Section 179 Expenses: The maximum amount that may be expensed under code section 179 n n n for property placed in service beginning after December 31, 2017, is increased to $1m and the phase-out threshold is increased to $2.5m. Additionally, new items

n

n

REGISTER NOW – SELLING OUT FAST!

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

The Newsletter • May 2018

8

Don’t Debate the Right Way to Terminate 12

On March 12, 2018, the New York State Senate passed legislation that defines sexual harassment in state law. The legislation also: Bans confidentiality or disclosure restrictions in court approved settlements, unless it is the vic- tim’s request, made without coer- cion or intimidation, and the court has considered the potential public impact; n Bans mandatory arbitration for sexual harassment claims; Protects independent contractors and freelance workers who would otherwise be non-employees; Restricts public sector employers from using taxpayer money for n n Even though New York is an “at will employment” state, meaning that both dealers and employees can end the relationship at any time, the reali- ty is a lot more complicated! Here are some steps to take before termi- nating an employee to make sure it’s done correctly: 1. Evaluate your employees: This will allow you to identify and cure an employee’s deficiencies and, if they are eventually termi- nated, can help demonstrate that there were legitimate, non-dis- criminatory and non-retaliatory business reasons for the termination. n

protected class because of their age, race, sex, gender, religion and a number of other categories. If you would like more detailed information about termination or the benefits of ERP membership, call GNYADA (718.746.5900) to join ERP today!

2. Engage in progressive

resolving sexual harassment claims; and Mandates that contractors doing business with New York State certify that they have sexual harassment policies in place and conducts annual sexual harass- ment training. This legislation shows that New York is serious about reducing instances of workplace sexual harassment and penalizing perpetrators. Dealers should act now to ensure their policies prevent sexual harassment. New York City is also taking immediate steps to require training for supervisors and employees. n discipline: This is where penal- ties increase depending on the severity of the performance defi- ciency or misconduct and the number of occurrences. Usually a verbal warning is the first step, followed by a written warning, then termination. Members of GNYADA’s Employee Relations Program can ask for progressive discipline forms to use in their dealerships. 3. Special Considerations: Before moving forward with termination, consider whether the employee is in a union; has a contract; just came back from leave; or is in a

New York State Legislation Aims to Combat Workplace Sexual Harassment 13

Upcoming Seminar:

On May 17, at the Center for Automotive Education & Training (15-30 Petracca Place, Whitestone, NY 11357) ERP’s Spring Labor Law Seminar will review How to Recognize and Respond to Sexual Harassment after #MeToo and #TimesUp. It is FREE for ERP members and $150 per person for non-ERP members. To register, contact Kelsey

at Kelsey@gnyada.com or 718.746.5900 x 273.

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

The Newsletter • May 2018 9

14 Remembering Cindy Shenker

remove liens from trade-ins, and laws expanding dealerships’ ability to offer new service and warranty products to consumers. She was also a key player in helping defeat bills that would hurt dealerships’ ability to function. Cindy was active in numerous civic and religious organizations. She was a fervent supporter of equality for women in politics and government. She is survived by her husband Jim Campbell, her daughters Alex (Kasey King) and Maddy, her sister, and her parents. GNYADA mourns the loss of Cindy. She will be missed by all who knew her. Messages of condolence may be sent to the Association and they will be forwarded to the family. Contri- butions in Cindy’s memory may be made to Eleanor’s Legacy or the Shenker/Campbell Clergy Develop- ment Endowment Fund, Congregation Beth Emeth, Albany, NY. The Association’s lobbying efforts will continue with Shenker Russo and Clark.

Albany Government Relations prac- tice. In 2015, Cindy began a new chapter when she founded the firm Shenker Russo & Clark LLP, where she continued to lobby on behalf of the Association. As GNYADA’s lobbyist, Cindy worked tirelessly to ensure legislators knew and understood the critical role of dealerships in the State. During the Association’s lobbying trips, she was sure to introduce GNYADA members, to anyone she encountered in the halls of the State Capital – and she knew every legislator and their staff! Not only was Cindy included in the City and State Albany Power 100 in 2015, 2016, and 2017, but Shenker Russo & Clark was designated as one of Albany’s Best Places to Work by the Albany Business Review . Cindy’s achievements as GNYADA’s lobbyist include ensuring the passage of the 2009 and 2014 Franchise Law amendments, a 2009 Doc Fee increase, several laws increasing the regulation of automobile brokers and leasing companies, the Lien Law amendment that makes it easier to have delivered more than 3,300 rebate eligible ZEVs. The program is still going strong, with nearly $47 million left in the rebate fund. If your dealership sells qualifying ZEVs (click here to see the full list or go to https://.nyserda.ny.gov/All- Programs/Programs/Drive-Clean- Rebate/How-it-Works ) but has not yet enrolled in the rebate program, you can learn more by visiting https://nyserda. ny.gov/All-Programs/Programs/Drive- Clean-Rebate/Dealers or by calling the Association at 718.746.5900.

Cynthia “Cindy” Shenker, GNYADA’s Albany lobbyist for near- ly two decades, passed away peace- fully at home on March 26, 2018, fol- lowing a brief illness. Cindy was a “one in a million” woman who was a role model to, and influenced the lives of, her family, friends, and col- leagues. Those of us who knew her recognized her as a deserving recipi- ent of the Woman of Distinction award that she received. Cindy completed her law school edu- cation in the evening while working full time in the Assembly. After 20 years as counsel to three Assembly Majority Leaders, she joined Wilson, Elser, Moskowitz, Edelman & Dicker, as a founding member of the firm’s New York State’s “Drive Clean” electric vehicle rebate program, allocating $55 million to be paid out in rebates to customers purchasing or leasing a Zero Emission Vehicle (ZEV) launched a year ago! GNYADA worked with the Governor’s Office and the NYS Energy Research and Development Authority (NYSERDA) to launch this successful incentive program. Hundreds of franchised dealers in greater New York are presently participating in the rebate program and

15 ZEV Rebate Program Turns One

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

The Newsletter • May 2018

10

Federal Court Blocks Delay to Fines Increase

16

A federal appeals court in New York blocked an attempt by the Trump administration to delay a scheduled increase in penalties for failure to meet U.S. fuel economy targets. Since the mid-1970’s, manufacturers have been fined $55 for each MPG by which they fall short of the annual Corporate Average Fuel Economy targets set by National Highway Traffic Safety Administration (NHTSA). The fines are multiplied by the number of vehicles sold in a

given model year. This ruling overturned a July 2017 NHTSA decision to indefinitely delay a rule that would have more than doubled the fines. Several states and environmental groups sued the Trump administration over the delay. Amy Spitalnick, a spokeswoman for New York Attorney General Eric Schneiderman, said in an email, “The fuel efficiency standards penalty rule even if they can complete a purchase online. Most significantly, a staggering 89% of consumers want to sign the final sales document at the dealership! The important takeaway is that “dealerships, despite disruptive technological changes, [remain] central to car buying”, according to Autotrader Senior Analyst Michelle Krebs. “Dealers cannot ignore that customer preferences change, and that preference is now to have “a a legal obligation but also a financial incentive to keep workers safe and the workplace hazard free. It sounds simple but it requires a concerted effort by everyone in the dealership, especially management, which is a key factor to success. Train, monitor, support and enforce safe work practices. Implement consistent safety pro- cedures. Look to keep both frequency and n n Steps to take n

is a common sense measure that would protect consumers’ pocket- books while reducing the carbon emissions that harm our health and drive climate change,” Earlier this month, NHTSA proposed canceling the steeper penalties. Spitalnick said New York will take action to block that rule if and when NHTSA finalizes it.

17 Buyers Prefer to Close the Deal at Dealerships

transparent, self-directed, personalized, no-pressure shopping experience measured in minutes, not hours – a process they can start online and finish at the dealership.” Krebs is confident that, despite changes to the buying process, dealerships remain essential. GNYADA thanks MediaPost for providing this article.

According to a Cox Automotive study, while consumers want to begin the buying process online, they still

prefer taking a test drive and completing the purchase at a dealership.

This study, which interviewed 2,550 shoppers, found that dealerships with digital retailing have a competitive edge. 83% of consumers said they want to complete one or more steps of the buying process online, but most of those still want dealership assistance

18 Improved Safety Can Lower Insurance Premiums

Workers’ Compensation (WC) premi- ums are affected by industry, classifi- cation codes, and losses incurred. The best place to start taking control of your premium is with your “Experience Modification Factor” or MOD. Employers with less frequent claims than average will show a credit MOD (reducing premium) and those with more frequent claims than the industry average will have a debit MOD (increasing premium). This means dealerships have not only

severity of claims down. Frequency matters more than severity when determining the MOD. Numerous small claims will drive up costs. If your dealership is renewing your WC policy in 2018, reach out to Michael Conway, of the GNYADA Insurance Brokerage, and see how Michael and his staff can improve upon your WC policy. Michael can be reached at 718.746.8100 or mconway@gnyada.com .

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

The Newsletter • May 2018 11

Are Employees Entitled to Cigarette Breaks?

Make Full Use of Your GNYADA Benefits

19

20

For over a century, GNYADA has committed to ensuring the success and prof- itability of its members with services that refine and enhance dealers’ opera- tions. We encourage you to utilize each of our benefits and programs for your business. Below are some of the crucial services GNYADA provides to its mem- bers:

While employers do not need to provide breaks in addition to lunch, if your dealership does give short breaks of up to 20 minutes, they should be paid. If a break is paid, you are allowed to dictate an employee’s conduct during the break. You may not want employees to smoke during paid breaks for any number of reasons – smoking is not permitted on dealership property, customers don’t like smelling smoke. However, you cannot stop employees from smoking during unpaid breaks as New York law prohibits employers from restricting employees’ consumption of a legal product when not working and off employer property. Remember, if your dealership has a CBA, check the Agreement and follow the rules for union employees. For questions or concerns about paid or unpaid breaks, contact Sue Bieber at 718.746.5900 or by email at susan@gnyada.com .

The GNYADA Insurance Brokerage covers all of your deal- ership’s insurance needs, including health and dental coverage, workers’ comp, disability, life insurance, medicare and flexible spending accounts. The Brokerage also consults dealers on mandated changes to their insurance offerings and helps them stay compliant with IRS form filing. Learn more at gnyada.com/dealers/insurance/overview . DMV-DIRECT processes titles and registrations for dealers and can handle rush duplicate titles in as little as three days. In addition to helping dealers with plate transfers, renewals, and VIN searches, DMV-DIRECT is also the only partner outside of Connecticut that can issue Connecticut plates. Visit gnyada.com/dealers/registration/overview . The Association’s Bond Program secures required bonds for dealers throughout our region. In addition to offering members the lowest rates on new car dealer surety bonds ($300 for a two-year, $50,000 bond), the Association helps dealers with Permit Bonds, Utility Bonds, and many others. To learn more, email jennifer@gnyada.com . Each year, GNYADA holds more than 60 specialized Workshops & Seminars for dealers. Trainings are conducted by expert instructors and are designed to improve dealership operations and enhance profitability. To review upcoming courses at GNYADA’s Center for Automotive Education & Training, visit gnyada.com/dealers/professional/overview.

PROGRAM OND A AD GNY B

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

Printed on FSC certified material. All original material except where noted. © GNYADA 2018

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.

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

The Newsletter • May 2018

12

Made with FlippingBook - professional solution for displaying marketing and sales documents online