GNYADA November 2016 Newsletter

Ten Tips for Spotting Flood-Damaged Vehicles

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7. Check engine compartment crevices for dirt or mud. 8. Perform a New York safety inspection — it could reveal corroded wires. 9. Carefully examine the electrical system. 10. Check the undercarriage for excessive rust. NY Damage Disclosure Law New York State requires presale dis- closures, whenever a vehicle being sold has been damaged by a natural disaster. If the vehicle’s mechanical or electrical systems are inoperable or unable to pass inspection, it cannot be sold without disclosing that damage in writing to any buyer, dealer or consumer. That disclosure must state the nature and extent of the damage, as well as the date and location where it occurred. (Failure to provide this disclosure is a Class B Misdemeanor.)

If a new vehicle requires repairs for physical damage (with a retail value in excess of 5% of the MSRP), deal- ers and manufacturers must disclose that in writing to any prospective buyer. (The 5% is based on the retail charges for parts and labor at a deal- er’s stated labor rate.) Otherwise, the buyer has a four-month window in which they can cancel the sale and receive a full refund. it arrives at your dealership. The National Insurance Crime Bureau also allows free search of the Flood Vehicle Database. (The information in the database comes from insurance companies, salvage yards and state and local authorities.) Carfax.com can help determine the history of a particular vehicle before

The heavy floods that ravaged Louisiana this past summer reported- ly affected as many as 80 dealerships, damaging potentially tens of thou- sands of cars. Last month, Hurricane Matthew caused flooding throughout the southeastern U.S., the damage from which is still being assessed. According to Carfax.com, roughly 50% of all vehicles exposed to floods eventually return to market, as own- ers or salvagers attempt to resell them as undamaged. In the event that some of these vehi- cles make their way to our region, GNYADA recommends the following tips for detecting flood damage: 1. Sit in the car with the doors closed and see if you notice a moldy smell. 2. Check carpeting or upholstery for water stains in unusual places. 3. Be suspicious of an older car with new carpeting. 4. Check areas surrounding light fixtures for moisture. 5. Note if you find rust or dirt in unusual places. 6. Scan both the interior and exteri- or for corrosion or waterlines.

FTC Increases Do-Not-Call Registration Fees

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area code of data will increase to $61 (from $60), and the maximum amount that will be charged to any single entity for accessing area codes of data will increase to $16,714 (from $16,482). Dealers who wish to have access to only five or fewer registered area codes from the DNC registry are exempt from the fee requirement, but must still register with the FTC.

Dealerships accessing six or more area codes must pay the fee when they renew their accounts. For more information about the Telemarketing Sales Rule, please visit the following website: https://www.ftc.gov/tips- advice/business- center/guidance/complying- telemarketing-sales-rule.

Any phone number a dealer is calling for telemarketing purposes must not be included on the National “Do-Not- Call” (DNC) Registry. As a reminder, any dealer seeking to access the DNC list must first register with the Feder- al Trade Commission (FTC) and pay any associated fees that apply. The FTC recently increased its fees to register for access to the DNC list, as of October 1, 2016. The cost for each

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

The Newsletter • November 2016 7