GNYADA November 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

NOVEMBER 2015 Volume 25, Issue 6

1 GNYADA Dealers Meet with Federal Legislators at D.C. Conference

HIGHLIGHTS

A Decade of Success: CAET and Lincoln Tech page 2 GNYADA Again Teams Up With New York Cares page 4 Hackers are a Major Concern for Dealerships page 5 Windshield Washer Fluid: The Storage Rules page 6 GNYADA Partners with NYC Department of Education page 8 GNYADA Files Brief in GM Performance Standard Case page 9

Senator Chuck Schumer (D-NY) was one of several D.C. legislators whom the Association group met with at the Washington Conference.

More than 500 dealers from across the U.S. were briefed on federal issues facing the industry and held face-to-face discus- sions with their representatives, at the recent NADA Conference in Washington. A group of GNYADA members, dealer principals and Association staff took the trip to D.C. to volunteer their time and par- ticipate again this year. The key issue of focus for dealers was a bill known as H.R. 1737, to reform the CFPB’s overreach into dealer-assisted financing. Dealers urged House Members to support the bill, which was successfully passed on November 18th, by a vote of 332-96.

Dealers also vocalized opposition to two bills affecting vehicle recalls, and GNYADA projects that both of those measures will be rejected based on the pressure that industry members applied at the conference. One issue involves a leg- islative amendment proposed by Senator Richard Blumenthal (D-Conn.) that would force dealers to ground all preowned vehi- cles subject to a recall. Another, offered by Senator Claire McCaskill (D-Mo.), would prevent dealers from renting any vehicle with an open recall. Dealers voiced oppo- sition here, because the bills fail to differ- entiate between recalls that are safety relat- ed and those that have little to no impact on safety, such as an insignificant typo in the owner’s manual.

Fall/Winter Storm Prep 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

The Newsletter • November 2015 1

Ten Years of Collaboration with Lincoln Tech – Whitestone

2

(whereby an entry-level intern gets recruited as staff at that same dealer- ship) is close to 90%. Lincoln Tech represents a pool of highly-trained young men and women whose modern knowledge and inten- sive educations can make key addi- tions to your service team. If you’re interested in hiring a Lincoln Tech graduate or learning more about LTI's programs, please contact Kate Clymer, Director of Career Services, at 718.640.9800. high-def televisions, investing in tools and lift racks from Snap-on, and much more. CAET hosts more than 200 seminars annually — in 2014 alone, 5,678 dealership employees attended train- ing sessions. “In just a few short years, the Center has become a hub for auto industry training in greater New York and beyond,” continued Schienberg. “Now, CAET’s training courses are recognized as the most expansive in the industry.”

nological advances of the industry. This has entailed: training students on the latest diagnostics equipment; exposing them to new tools, systems and vehicle-types; and regularly replacing all equipment, to keep up with innovation. Both the Association and Lincoln Tech take special pride in the recruit- ment rate of LTI graduates. Lincoln Tech continues to place over 80% of its graduates in jobs, throughout the automotive repair industry. Internship-to-graduate placement Directors that has gone on to fulfill a critical need for well-trained dealer- ship personnel,” said GNYADA President Mark Schienberg. Since its inception, the location has continu- ously delivered state-of-the-art, hands-on training to all dealership employees, from salespeople to receptionists to billers and more. The Center has continually evolved its infrastructure over the years, to remain on the cutting edge; this has included replacing all projector screens with wirelessly connected

GNYADA and Lincoln Technical Institute teamed up one full decade ago. In that time, over 2,800 LTI- trained technicians have brought cut- ting-edge service skills to franchised new car dealerships across the metro area. Through the years, LTI has constantly revised its curriculum and invested in its facility, to keep up with the tech-

The CAET Reaches a Major Milestone

3

The Center for Automotive Education and Training is celebrating its ten- year anniversary this fall. Over the past decade, CAET has been the key demonstrator of GNYADA’s commit- ment to education as a critical part of dealership operations. GNYADA built the Center for Automotive Education & Training in 2005, to serve as a prime driver of automotive learning and to recruit top talent to the auto industry in our region. “The Center was a unique vision by the GNYADA Board of

10TH ANNIVERSARY CELEBRATION A DECADE OF DRIVING AUTOMOTIVE LEARNING SAVE THE DATE THE CENTER FOR AUTOMOTIVE EDUCATION & TRAINING

Celebrating the Center The Center will be hosting its official ten8year anniversary event on December 16, 2015 at 10:00am. The day will celebrate and acknowledge all of the positive impact that CAET has brokered: educating our industry, advancing individual careers and economically benefiting Metro New York.

If have any questions about the event, please contact Phyllis Aguilar: 718.746.5900, phyllisa7gnyada.com.

WEDNESDAY DECEMBER 16, 2015 10:00 AM 15-30 PETRACCA PLACE, WHITESTONE, NY 11357

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

The Newsletter • November 2015

2

Federal Law Mandates Floor Plan Reimbursement for Recalled Vehicles

4

Manufacturers are required to pay dealers if they are unable to immediately repair or repurchase vehicles, due to a stop-drive or recall order. Dealers who cannot sell new vehicles with open recalls will accrue floorplan interest and are entitled to reim- bursement. The Motor Vehicle Act, which is administered by the National Highway Traffic Safety Administration (section 49 USC §30116(b)) provides the following: (a) Actions required of manufacturers and distribu- tors. — If, after a manufacturer or distributor sells a motor vehicle or motor vehicle equipment to a distributor or dealer and before the distributor or dealer sells the vehicle or equipment, it is decided that the vehicle or equipment contains a defect related to motor vehicle safe- ty or does not comply with applicable motor vehicle safe- ty standards prescribed under this chapter-- (1) the manufacturer or distributor immediately shall repurchase the vehicle or equipment at the price paid by the distributor or dealer, plus transportation charges and reasonable reimbursement of at least one percent a month of the price paid prorated from the date of notice of non- compliance or defect to the date of repurchase; or (2) if a vehicle, the manufacturer or distributor immedi- ately shall give to the distributor or dealer at the manufac- turer's or distributor's own expense, the part or equipment

needed to make the vehicle comply with the standards or correct the defect.

(b) Distributor or dealer installation. — The distributor or dealer shall install the part or equipment referred to in subsection (a)(2) of this section. If the distributor or deal- er installs the part or equipment with reasonable diligence after it is received, the manufacturer shall reimburse the distributor or dealer for the reasonable value of the instal- lation and a reasonable reimbursement of at least one per- cent a month of the manufacturer's or distributor's selling price prorated from the date of notice of noncompliance or defect to the date the motor vehicle complies with applicable motor vehicle safety standards prescribed under this chapter or the defect is corrected. The past year has seen a record number of vehicle recalls. Yet the Association is aware of only a few OEMs that are actually reimbursing their dealers for grounded inventory. If you were required to ground any recalled vehicles, you should review your records to determine if you have been compensated by your manufacturer. GNYADA continues to work with state and federal legis- lators to address the concerns of dealers relating to new and used vehicle recalls.

5 Telephone Recall Alerts Don’t Violate Do-Not-Call

Dealers who call customers about recall-related issues are not violating national Do-Not-Call (DNC) rules by doing so. The Do-Not-Call Registry was set up a little over a decade ago, so people could designate their phone number as off-limits for telemarketers and other solicitations. However, inform- ing a customer that their vehicle is subject to a recall does not fall into these categories; rather, it is a helpful cue to the customer that their vehicle needs servicing.

It should be noted that this exception only applies when the repair work involves no cost to the customer. Any attempts to make additional sales or extract extra money during the con- versation will designate it as a phone solicitation, which is prohibited. Cellphones, texting, autodialing and prerecorded calls are subject to com- pletely separate sets of restrictions, under the Telephone Consumer Protection Act. The cellphone stipula- tion admittedly makes the lines tricky to stay within, as a dealer may not be

able to tell whether he/she is calling a cellular or landline. However, if a customer provided you with their cellphone number in the first place, you’re probably safe dialing it, as long as you keep the discussion squarely on the subject of the recall. Dealers should consult with counsel to ensure their customer outreach procedures align with the TCPA. The FCC’s full ruling can be found here: https://apps.fcc.gov/edocs_pub- lic/attachmatch/DA-05-1667A1.pdf

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

The Newsletter • November 2015 3

OEM Facility Upgrades — How Can They Best Reduce Your Taxable Income? 6

Manufacturers in many cases reim- burse dealers for satisfying certain facility requirements — this is typi- cally called “facilities support.” This reimbursement qualifies as taxable income and a dealer cannot use IRC Code Sec 118 to treat the support as a contribution to the capital of the com- pany. The question is, can that money be directly used to reduce the dealer’s cost in performing the upgrades? The answer is maybe. The reimbursement amount from the OEM cannot simply be netted with the money the dealer spends on the improvements. (These can include anything from new showrooms, to new signs, to service department expansion, etc.) However, a permissi- ble way to offset these costs is to seg- ment the work being done into cate- gories that have shorter depreciable

lives and higher corresponding depre- ciation deductions.

expense up to $25,000 in qualified purchases; however, for the last sev- eral years, subsequent legislation late in the year has enabled that amount to go up significantly. (It was $500,000 before January 1st of this year, for example.) That enabling legislation is only in effect for the year of its pas- sage, after which it reverts back to the original $25,000. For that reason, dealers should monitor this closely with their accountants to assure they receive all available deductions, if and when the amount goes up again before the end of this year. Your timing is everything, on this issue. The most seamless way to off- set facility upgrade payments is by timing the depreciation deductions to occur in the same year that the upgrades are placed in service for depreciation purposes. flyers and on their website. Not only will you be helping numerous New Yorkers make it through the coming winter, but you’ll also drive traffic to your showroom, as the public drops off their donated coats. New York Cares and GNYADA will provide signage for collection sites in your showroom and service depart- ment, and GNYADA will arrange to have your collections picked up. Register here , to sign up your dealership as a public collection site, or contact Jennifer Berman at

Example: If a dealer spends $10 million on work classified as “building,” that cost depreciates over 39 years, which amounts to a quarter million in annu- al depreciation expense. But if the dealer, after doing a segregation study, can classify the work in depre- ciation categories with shorter lives, he/she might be able to recoup that cost as a depreciation deduction on an accelerated basis. For example, work classified as “furniture and fixtures” depreciates over just seven years; “equipment” has a five-year deprecia- tion life; “land improvements,” 15. Another benefit dealers can take advantage of involves IRC code Sec 179: In a given year, a dealer can With the approach of cold winter days, even colder nights, and very real concerns about people in need surviv- ing the season, GNYADA is again teaming up with New York Cares’ coat drive. You can help the cause by signing up as a public collection site for winter coat donations. Last year, GNYADA dealerships col- lected an amazing 5,000 plus coats. By working together and spreading the word across neighborhoods and communities, we hope to top that number this year. When you register as a collection site, your dealership will be listed in all of New York Cares’ press releases and

Join Dealers in DonatingWinter Coats Our 4th straight year with New York Cares — nearly 90 dealers already signed up.

7

Jennifer@gnyada.com or 718.746.5900 ext. 235.

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

The Newsletter • November 2015

4

Hackers are a Major Concern for Dealerships

8

you want to provide wireless internet to customers, have a separate guest network that’s different from your private network. And make sure the private wireless network uses an encryption key. n Laptops used by techs to service onboard computers should have up- to-date operating systems. Plenty of dealerships use very old OS’s which don’t support the latest antivirus soft- ware. The hidden problem here is that the computer may say its antivirus protection is up to date; but it’s up to date from before Microsoft stopped supporting it. n Make sure you keep your systems updated with the latest antivirus soft- ware. Dealers who want a deeper rundown of cybersecurity steps can consult the Five Star Automotive Cyber Safety Program from iamthecavalry.org . If any plates aren’t accounted for, you must determine when you issued them and know where their paperwork is. If you still have outstanding plates, file a police report for a missing/stolen plate; then submit a copy of that police report, along with a letter of explanation, to DMV, in order to have those plates removed from your inventory. A best practice policy would include performing a plate inventory once a month, or whenever you submit a new plates order. n n

Dealerships need to be vigilant about detecting in-vehicle computer virus- es, as automobiles continue to grow more and more tech-enabled. The advent of features like voice controls, internet and rear-mounted radar require the biggest/fastest/best in onboard computers. But with new sophistication come new security issues. The latest concern is an “infected” vehicle coming in for service, subse- quently corrupting the dealership’s testing equipment, and then spreading malware to other vehicles that are serviced with the same hardware. According to cybersecurity experts, this fear is more concrete than per- haps many dealers realize. Just this past summer, Fiat Chrysler opted to recall 1.4 million vehicles when the Jeep Cherokee failed a hacking exer- cise — simulators were able to gain If your plate inventory is not up to date when you submit a new order to DMV, this may impact your ability to order plates — you could also run out before the issue is resolved. Conducting an inventory check will tell you if you have lost, old or out- standing plates, or if they’re being used out of sequence. It will also assure that your paperwork is being submitted on time by your biller/title clerk. To conduct this check, call the NYS DMV Plate Issuance Unit at 518.626.8380, and ask them for a report of open plates. You’ll need to provide your facility number and a fax number. DMV will send you a 9

control over a multitude of functions, from the air-conditioning to the brakes and steering. At a recent cybersecurity conference in Louisville, KY, one presenter demonstrated a new tool designed to reveal vulnerabilities in a dealership's diagnostics equipment. This particu- lar software identifies potential holes for malware to slip through. An example of such a flaw would be a system failing to check the entire VIN, allowing a virus-hosting car to upload any data it likes, disrupt diag- nostics software, and deliver a cor- ruptive payload. Short of using software that regularly simulates attacks, there are also sim- pler ways that a dealership can bol- ster its cyber-protection: complete list of all plates that have been issued to your facility, including in-transit permits. Once you have the list in-hand: Mark off all your boxes of unopened plates and in-transit permit packs. Look in your plate logs to make sure the remaining plates are either still in your possession or have been issued. If the plates have been issued, refer to your open transmittals and make sure the unaccounted plates are either included there or on the current transmittal that you’ll be sending to DMV-DIRECT or to your service provider. n n n n If you use wireless internet, you should not share the network info. If

Check Your Plate Inventory — Here's Why

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

The Newsletter • November 2015 5

WindshieldWasher Fluid: The Storage Rules

10

There are many questions on onsite storage of windshield washer fluid at a dealership. Answers depend on what region of metro NY you’re in.

Based on OSHA regulations, all facilities must: Clearly label containers of wind- shield washer fluid Always keep the necessary docu- mentation, such as Safety Data Sheets (SDSs), available to employees and inspectors Train all employees on the hazards of the product Windshield washer fluid is typically a mixture of water and methanol — the latter, in high concentrations, can be toxic, flammable and otherwise harmful to those who come into con- tact with it. The concentration of methanol in windshield washer fluid n n n low NYSDEC and NCDH require- ments: If a facility has less than five drums totaling less than 250 gallons of storage, the fluid drum does not need to be registered, but should be stored properly, as described earlier. If a facility stores more than 185 gal- lons of fluid with more than a 1% concentration of methanol, then the facility would have to follow stricter Chemical Bulk Storage regulations and register all containers with NCDH . LOCATION GUIDES BY COUNTY

varies from manufacturer to manu- facturer, but average concentration is between 20-40%. All counties can potentially regulate windshield washer fluid differently. If your dealership is located in Rockland, Dutchess, Putnam or Orange counties — or if you store the fluid in containers larger than 55- gallon drums — you should contact your local regulatory agency or Walden Associates (516.624.7200) to assure that you are storing chemicals properly.

UNIVERSAL RULES

All facilities should: Store containers on spill pallets, or in a bermed or diked area, to col- lect accidental spills Avoid stacking drums or contain- ers more than two-high Protect drums / containers from vehicular traffic Store fluid in well ventilated areas Avoid mixing windshield washer fluid with any other chemicals n n n n n New York City Dealerships or service centers within New York City’s five boroughs must follow NYSDEC and NYCDEP reg- ulations regarding windshield washer fluid. If your facility stores more than ten lbs. of methanol, you must report the windshield washer fluid to the city, under the Community Right-to- Know Program. (If your fluid has a 35% methanol concentration, four gallons of windshield washer fluid makes up 10 lbs. of methanol.)

Below are the storage rules for NYC, Nassau, Suffolk and Westchester.

SCDHS regulations governing stor- age requirements are similar to NCDH requirements. Only if a facili- ty has more than five drums or more than 250 gallons, must they register all drums. If they store large amounts in tanks, they must properly register the tank as well.

Westchester County In Westchester, NYSDEC and

WCDH regulations simply state that all containers must be stored proper- ly, but do not have to be registered.

Nassau County Nassau County dealerships must fol-

Suffolk County In Suffolk County, NYSDEC and

Renew Your Membership Today! GNYADA is on top of the issues that affect dealerships and impact your bottom line. Your membership allows the Association to have an important strategic presence in Albany and D.C. Every day, we assist dealers through a maze of regulations, steering you away from the pitfalls generated by so many requirements. It is important that we have the most current contact information for your key staff members, so we can keep them informed about important issues. Please download and complete the dealer contact form at www.gnyada.com/dealers/member/ overview , and email it to Jennifer at Jennifer@gnyada.com or fax her at 718.508.4772.

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

The Newsletter • November 2015

6

Fresh Perspective at the Washington Conference

11

The GNYADA dealers that attended this year's NADAWashington Conference included a new face: Allison Musante, General Manager of Smithtown Acura, and a prominent member of GNYADA’s NextGen committee. Ms. Musante recently recounted her time in Washington with the Association, where she interacted with Senators Schumer and Gillibrand, and Representatives Crowley, Israel, Rice and Meng. She delved into her experiences and takeaways from those conversations, and also touched on the importance she now sees in NextGen involvement.

“

Being at the conference helped me further understand what NextGen is all about. Our group of dealers made contributions in different areas, where lawmakers need us to be involved. Many of them want the background information of what they’re voting on and what the real concern is. They can have great intentions when they make laws and regulations, but if someone doesn’t educate them about our business, we can only fault ourselves if their vote has negative impact on our stores. An issue we spotlighted was the Dealer-Assisted Financing bill (H.R. 1737 — I’ll never forget that num- ber as long as I live). The bill focus- es on requiring transparency and accountability from the CFPB. The other key issues regarded vehicle

recalls and advertising deductibility.

the point in our business where women are sought after for their perspective. If her schedule allows, I anticipate she’ll attend. I realized that for these legislators, I’m not only the face of the con- sumer, I’m also the face of their voters — I have an impact on both. NextGen’ers and millennials in gen- eral don’t do things the way that our parents and grandparents did, and I’m in touch with that. Our elected officials are generally getting younger, too; they can relate to me as well as I can relate to them. I feel very positively about my time in Washington. I definitely want to get more involved — I see the need for it, and I see where we can really make a difference.

I was glad to be there supporting the entire auto industry, but I also advised some of the local legislators about what matters to me. For example, Steve Israel represents my congressional district; I mentioned to him that we’re going to be doing a facility upgrade and I invited him to the grand opening — he was very receptive to that. I wouldn’t have had that opportunity otherwise. I was also able to connect with Kathleen Rice, who quite appreciat- ed that I’m a young woman in the business. I actually invited her to attend a panel discussion I’ll be par- ticipating in on March 24th, at the New York Auto Show, about women in the auto industry. It’s getting to

”

GNYADA’s NextGen Committee The Association formed this committee of young managers and dealership successors two years ago to encourage the perspective of tomorrow’s dealer principals, and we’re always on the lookout for new mem- bers. Participants in this committee have the opportunity to create group agendas, represent the business in lobbying trips to Albany and Washington, and have formative conversations about our industry’s future.

To recommend someone at your dealership for NextGen, or for any questions about committee involvement, please contact jennifer@gnyada.com .

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

The Newsletter • November 2015 7

GNYADA Lends a Hand to NYC Dept. of Education

12

Professional Development program at the National Teachers Conference in D.C. After the presentation, Gazzillo was thanked for demonstrating how industry and education can success- fully work together to better prepare students for the workplace. GNYADA is proudly becoming a model for Teacher Professional Development programs around the country.

ongoing commitment to promoting automotive technology education among youths. GNYADA provides scholarships for automotive students, offers job shadowing and summer internships, manages the teacher externship program, organizes teacher trainings, participates in auto- motive advisory committees, and provides many other supports for schools, teachers and students. AFT recently invited GNYADA Vice President of Education, Ed Gazzillo, to present the Association’s Teacher

The GNYADA professional develop- ment program for automotive teach- ers has been nationally recognized by the American Federation of Teachers (AFT). As a result, the NYC Department of Education recently asked GNYADA to help them in ASE certifying all of their high school tech teachers by June, 2016. In assisting the Dept. and the United Federation of Teachers (UFT).

This dovetails with the Association’s

Medicare “Combo Plans” Can Benefit Both Employers and Employees

13

Medicare eligible employees have started opting for health coverage that combines Medicare with a Medicare supplement — the latter, often called Medigap, is a privately sold policy that helps cover copayments, coinsur- ance and deductibles. Not only do recipients see financial savings with this combination, they also get broad- er coverage. Employers likewise save money, as they’re spared the cost of insuring that employee through the company health plan. This is a win- win situation. Historically, the vast majority of peo- ple who worked past retirement age rarely opted out of their group cover- age, in favor of Medicare. But the popularity of this new “combo” cov-

payer. But if you have employees working beyond the age of qualifying for Medicare, it’s good for both them and you to be aware of this option. While you can recommend that a worker consider it, there is of course no broad brush that covers every pos- sible scenario and healthcare need. Refer them to a trusted professional for advice, so that they can analyze what the advantages would be under both options, and decide from there. Randy Frey, VP Senior Services, the FNA Group, contributed to this article. If you would like to explore this option for any of your seniors, please contact Michael W. Conway, Executive Director of the GNYADA Insurance Brokerage, at 718.746.8100 or mconway@gnyada.com.

erage is quickly changing the trend. There are several reasons for this:

In New York State, an employee 66 years of age pays the same premium as a 36-year-old employee, even though the older person has Medicare coverage paying a portion of medical or hospital claims. The ever-increas- ing health plan premiums, as well as significantly high deductibles, make this new form of coverage an attrac- tive option. What should employers do? The potential benefit of this configu- ration of coverage depends on a few factors, including how many people you employ and whether Medicare or your company plan is the primary

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

The Newsletter • November 2015

8

GNYADA Files Brief in GM Performance Standard Case

14

Their determination will impact not just GM dealers but all dealers in the state of New York. To that end, GNYADA has filed an amicus brief, which the Association presented in court to support Beck Chevrolet’s position on these issues. GNYADA passed important amend- ments to the Dealer Franchise Bill in 2008, which have provided the framework for Beck's legal position in this case. The NYSCOA has not yet set the date on which it will hear oral argu- ments, but the Association will con- tinue keeping its members apprised of the status of this important matter.

dealer can prove that the full tank was clearly indicated in the sales price. Also, only dealers with a contractual obligation to fill these tanks are eligi- ble for a refund of sales tax paid on the gas. Contesting these rejections from the NYS Department of Taxation and Finance takes effort, but it is a winnable battle. For example, one GNYADAAllied Member — Ellen Kera of Kera & Company Certified Public Accountants — has been focusing on this issue for many local dealers. Often by citing the stamped bill of sale for each transaction, Kera has subsequently proved to the NYS- DTF that full gas tanks were indicat- ed in the vehicle price, and success- Those familiar with the issue will recall that a New York administrative law judge found that GM did not have good cause to terminate Beck Chevrolet’s franchise, principally because GM wrongly used a statewide average to gauge the sales performance of all dealers. Under appeal, the judge in Federal District Court ruled that GM’s formula, as applied to Beck, was not unfair or unreasonable and rejected Beck’s claim for damages. Beck is now appealing the Federal District Court’s decision to the Federal Second Circuit Court of Appeals. The New York State Court of Appeals (NYSCOA) has been asked by the federal appeals court to give their opinion on the soundness of GM's sales performance calculation under New York franchise laws.

Several years ago, General Motors began termination procedures against one of their New York franchises: Beck Chevrolet of Yonkers. GM claimed that Beck failed to meet the manufacturer’s sales performance requirement, and therefore should have their franchise closed. The owner of the dealership challenged this termination as a violation of New York’s Dealer Franchise Law.

Get Your Fuel Fill Credit

15

The full tanks of gas that dealers often sell customers with a new vehi- cle is actually being “double taxed” — dealerships pay a tax on the fuel to have the tank filled for sale; then cus- tomers pay tax on the vehicle, which includes the cost of the full tank. In order to get that money back, dealers must file New York State’s FT-500 form, which is an application for the refund of sales tax overpaid on petro- leum products. Over the course of a full year, dealers could be leaving thousands of dollars on the table by not applying for this credit. However, the process of recov- ering the overtaxed amount is frus- trated by New York State's frequent rejection of FT-500 forms, unless the

fully gotten her clients’ claim denials removed.

If you would like help with filing these claims on behalf of your dealership, please contact Kera & Company at 914.332.8484.

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

The Newsletter • November 2015 9

DMV-DIRECT Celebrates 20 Years

16

Developed in order to help dealers expedite registrations and titling quickly and efficiently, GNYADA’s DMV-DIRECT service recently cele- brated an important anniversary — twenty years of collaboration with the New York State DMV. Since its inception in 1995, DMV-DIRECT has grown to become the DMV’s largest private sector part- ner. “The goal was to improve dealer- ship functions, by combining dealer operations with state operations,” said Donna Mause, who served as DMV-DIRECT’s Director for its first seven years. “We built a great rapport with deal- ers, resolving issues and getting their work done quickly,” Mause contin- ued. “They no longer had their tem-

dealership’s name in the consumers’ newsfeed. (And consider building a presence on platforms that skew younger, like Tumblr or Instagram .) Feature millennials in your ads Not just as the children of customers, but as the customers themselves. This may seem like a low-priority prob- lem, but if all the models in your ads have salt-and-pepper hair, you’re increasing the risk of millennials ignoring them. An aspirational shot of a smiling young consumer in a stylish new car can go a long way. Maximize mobile technology The average millennial spends a whopping four hours a day on their smartphone, so assuring your ads are mobile-friendly is critical. You should also invest in mobile technol- porary registrations expiring because of the time lag that it sometimes took in Albany. We eliminated time and made the process simple.” The initiative between GNYADA and the Department of Motor Vehicles boasts a near-perfect error rate, allows dealers to provide customers with faster delivery of registration documents, and saves New York State the costs of performing this work at State DMV locations. “Twenty years is a tremendous mile- stone for a private/public venture such as this,” said GNYADA presi- dent Mark Schienberg. “The longevi- ty of the arrangement is reflective of our determination to monitor and evaluate every transaction and to give dealers impeccable service.

.01% error rate Serving over 250 GNYADA dealers Helps NYS dealers process transactions for Connecticut customers Saves dealers time, money and inconvenience

3 3 3

3

ogy at your dealership. Mobile CRM software, which allows things like driver’s license and VIN scanning, streamlines the data process and makes transactions more efficient. These apps can even remind you about your customers’ birthdays, boosting the all-important personal touch. Consult millennials you have on staff This is a great, low-cost way to iden- tify barriers to millennial engagement with your dealership as well as possi- ble holes in your advertising plan. Simply ask them, “Would you shop here?” The ensuing conversation may reveal strategic moves you never thought of. DMV-DIRECT is a cost-savings to New York State, while allowing deal- ers to serve their customers better.” Based in the Association offices in Whitestone, Queens, DMV-DIRECT presently employs 12 full-time staff and collects more than $10 million in annual revenue for the state. Said Schienberg, “DMV-DIRECT is the perfect example of business and gov- ernment working together and achieving enormous successes.”

Appealing to Millennials: Four Key Tips

17

If your current advertising strategy doesn’t include active outreach to millennials, you’re not just ignoring a key business driver — you could also be indirectly lowering your relevancy among the dominant car buyers of the future.

Here are some key steps for market- ing your dealership to millennials:

Have a strong social media strategy Not only is this essentially free advertising, it also reaches socially active customers wherever they hap- pen to be. Publish posts / tweets / updates daily. Talk about upcoming sales or events your dealership is involved in, link back to your web- site, and know that the more active you can be, the better. Keep your

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

The Newsletter • November 2015

10

Fall / Winter Storm Prep Guidelines

18

fire department, insurance agent, and building owner easily accessible.

If a storm is coming, move your vehicles to higher ground, if possible.

The official “hurricane season” may be behind us; however, it’s important to note that some of the most damag- ing storms to affect retailers occur as fall transitions into winter. That’s the time of year when heavy winds, rain storms and dropping temperatures are the biggest threats, and can lead to property damage, lost revenue, employee injury and even business closures. The following checklist was prepared with the help of disaster response specialists, Agility Recovery (http://www.agilityrecovery.com/). It shares some key preparedness tips that could save your dealership costly infrastructure damage and business interruptions: Secure a backup generator, in case of loss of power. (And if you already have one, make sure it’s functional.) Check your procedure for restoring electrical services on an item-by-item basis. n n YOUR EQUIPMENT AND FACILITY

n

YOUR EMPLOYEES

Establish a procedure for relocat- ing vehicles and supplies.

n

Ensure you have an emergency communication plan in place prior to a threatening storm.

n

Assure that all roofs are draining properly, so water doesn’t collect and increase the threat of collapse.

n

Have all employees, vendors and client contact information on hand.

n

Make sure storm windows are effective and operational.

n

During evacuation, consider redi- recting your phone lines to cell phones, answering services, etc. Following the storm, notify all critical people of next steps, based on damage. In order to minimize the damage and time it takes to recover from storms this time of year, it is a good idea to develop a plan of action for your business and staff. Take the time now to determine how and where you can continue operations, how you will power your dealership should utilities be cut off, and how you will commu- nicate with employees and customers should the worst occur. n n

Drain all idle pumps and compressors, making sure jackets are vented. Cover your computers and other office equipment (and get them off the floor, if possible). Mark hydrants near your business for ease in locating and clearing after a heavy storm. Keep any hardcopy insurance policies safe from water (or fire) damage.

n

n

n

n

Keep names and phone numbers of your heating contractor, plumber,

n

AP Photo/Jessica Hill

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

The Newsletter • November 2015 11

EMPLOYMENT CORNER 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 .

Auto Shows Positively Affect Vehicle Sales

19

POSITION

RESIDES IN

FILE #

A recent study titled “The Power of Auto Shows” has confirmed the fol- lowing key points about the impact of auto shows: They attract, educate and motivate shoppers to visit new car and truck dealerships. They generate action long after they conclude. They provide deep engagement with vehicle brands and are piv- otal to brand decisions for many buyers. They dovetail with digital mar- keting efforts to assist consumers in their purchasing decisions. n n n n 72% of attendees plan to visit a dealer or manufacturer website, following the show. 57% of attendees said they plan to purchase a car or truck within 12 months of the show. 51% of attendees who purchased new vehicles post-show said the event influenced their decision. More than one-third of attendees made brand-list choices as a result. n n n n Car-buyers’ behaviors, post-show

OFFICE

Biller

Brooklyn

180 181 182 183 184 185 186 187 188 189 190 191 192

Massapequa St. Albans Yonkers (2) Staten Island Kings Park Manhattan Long Beach Bronx

Biller/Bookkeeper

Bookkeeper

Controller

Receptionist

Cambria Heights

Corona

Glendale

Whitestone

SALES

Sales

Elmhurst Glendale Manhattan

193 194 195 196 197

New Rochelle

Rego Park

SERVICE

Service Advisor

Flushing (2)

198 190 200

Service Cashier/Receptionist

Jamaica

Massapequa

This independent study was com- missioned by Auto Shows of North America (ASNA), a group of 65 auto shows from around the

Contact Us: 18-10 Whitestone Expressway l Whitestone, NY, 11357 Dealer Hotline: 800.245.4640 l Headquarters: 718.746.5900 email: 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 & Training: 718.640.2000

United States and Canada.

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 • November 2015

12