GNYADA November 2017 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

1 DMV Executive Deputy Commissioner Meets with GNYADA’s Board

NOVEMBER 2017 Volume 27, Issue 6

HIGHLIGHTS

Selected for a DMV Audit? Here’s What to Know page 3

NADA Director’s Column page 4

New City Laws Require Dealers to Disclose Profits page 5 Increase CSI by Shortening Customer Visits page 7 Six Important Safety TIps for Test Drives page 8 Join the Mission to Keep Our Neighbors Warm page 9 Avoid Violations in Your F&I Department page 10 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

(l to r) GNYADA President Mark Schienberg, New York State Department of Motor Vehicles Executive Deputy Commissioner Terri Egan, and GNYADA Chairman Lee Certilman

The New York State DMV’s Executive Deputy Commissioner, Terri Egan, and Deputy Commissioner for Compliance, Tom Higgins, attended GNYADA’s fall Board of Directors Meeting. Board Members took this opportunity to discuss a number of significant issues with high- Association’s push to increase New York State’s DOC fee, which is currently one of the lowest in the country. Directors stressed that having this fee be so much lower than what other states can charge puts New York dealers at a competitive disadvantage with neighboring states. The Executive Deputy Commissioner engaged in a give-and-take with the Board and showed a firm under- ranking DMV representatives. The first topic discussed was the

standing of this issue, which is one of GNYADA’s top regulatory priorities. Tesla’s push to open fifteen additional non- franchised locations, in violation of State Franchise Law, was also discussed. “The legislation is pretty clear on this one,” said Egan. “Tesla has five facility licenses, so they can only have five locations.” The Board told Egan that Tesla is skirting the law by opening “galleries” in the downstate area which operate identically to a dealer- ship. The Board expressed its hope that Governor Cuomo will sign GNYADA’s Broker Bill into law. Chairman of the Board Lee Certilman illustrated the threat brokers pose to dealers, and to commerce overall in New (continued on page 2)

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DMV Executive Deputy Commissioner Meets with GNYADA’s Board (continued from cover)

Egan also touched on the following topics: The state plans to fully launch its VERIFI/eMV-50 project in July of 2018. DMV will examine its dealer plate issuance program over the next 3-4 months, and will soon reach out to dealers and the Association for input on modernizing the program. Starting in October of 2017, the state will issue documents for New Yorkers to apply for federal REAL IDs, which will be required to fly domestically as of 2020. This document will be acceptable

for the full 6 points of ID to register and title a vehicle.

York State, as they often use low operating expenses to attract cus- tomers away from franchised dealers, then acquire the vehicle out of state. Egan took special interest in a graphic that demonstrated how vastly brokers outnumber dealers in the metro area. Egan praised the Association’s efforts to ensure that recalls are disclosed to consumers prior to purchase, high- lighting the recall disclosure decals GNYADA recently created for its members.

“Between myself, the Governor, and our other State agencies, we view GNYADA as a very important rela- tionship,” said Egan. “You provide such a huge economic service to the public.” The Association thanks the Executive Deputy Commissioner and the Deputy Commissioner for Compliance for attending the Board Meeting. GNYADA appreciates DMV’s support on the many regulatory issues facing New York’s franchised new car deal- ers and looks forward to further pro- ductive conversations.

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File Electronic Injury and Illness Records by December 1

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Dealerships with between 20-249 employees must electronically file their 2016 employee workplace injury and illness records (Form 300A), through the Occupational Safety and Health Administration’s (OSHA) website (www.osha.gov), by December 1, 2017. OSHA’s original electronic filing reg- ulations required all submissions by July 1, 2017. But due to the delayed availability of the online submittal portal, OSHA pushed back its enforcement deadline to December 1, 2017. There are three ways that dealers can submit injury and illness data: Manually enter data into the OSHA web format; n

Upload a CSV file for their facility; or,

Retaliation against employees for reporting work-related injuries and illnesses is strictly prohibited. The Association thanks Walden Associates Inc. for contributing to this article. For more information regarding electronic submission of injury and illness data to OSHA, please call GNYADA at 718.746.5900. n

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Automate the dealership’s record- keeping systems and have them transmit all data electronically using an application programming interface (API). The revised reporting regulations also include the following provisions: Procedures for reporting work- related injuries and illnesses must be reasonable and not discourage employees from reporting. Employers must inform employees of their right to report work- related injuries and illness free from retaliation. n n n

We are the Right-to-Know, OSHA and Environmental Compliance Experts!

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

The Newsletter • November 2017

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3 Selected for a DMV Audit? Here’s What to Know

Inventories of DMV documents and plates: passenger plates, commercial plates, in-transit permits, and inspection stickers. DMV will also check to make sure these are stored in the correct manner. Book of Registry (Police Books). Make sure these contain up-to-date information. Dealer Bonding Certificate. Certificates of Sale (MV-50’s). Customer sales folders (sales invoice, lien releases, finance contracts, etc.). Additional documents, such as plate n n n n n recently said, “When merchants collect tax on automobile sales from customers and fail to remit the tax, they’re stealing from the state and the local communities that depend on the sales tax revenue to fund critical public programs and services.” GNYADA Seminar Explains Key Tax Reporting Rules The Association’s 2017 Sales Tax Compliance Seminar will inform

logs, copies of transmittals, and proof of refunds for customers who were overcharged should also be made available. Having all of the above prepared for the Auditor, along with other requested materials, will make the process go more quickly. Please note that dealers must make every effort to provide Auditors with an adequate workspace at the dealership (table/desk, chair) and a nearby functioning electrical outlet. DMV-DIRECT can provide assistance during DMV Audits. DMV-DIRECT can be reached at 718.746.0400.

Several local dealerships have been selected for random audits by the New York State Department of Motor Vehicles. Selected dealers are asked to fill out a questionnaire, contained in an initial letter, and are subsequently contacted by a Senior DMV Accountant to set up an audit. After a date is set, the dealership will be asked to make transaction records available, for a given date-range of roughly six months, for review during the audit. DMV will hold all transaction work until the Auditor arrives. Dealers who are selected for a random audit should also make the following documentation available for the date-range DMV requests:

Dealers Can Face Prison for Unreported Sales Tax

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A Queens used car dealer has been charged with stealing over $330,000 in State and City sales tax. The dealer allegedly failed to report collected sales tax for a period of five years. If found guilty, the dealership could be fined up to twice the unreported amount and the dealer principal could serve up to fifteen years in prison.

dealers about the legal requirements for collecting sales tax on day-to-day transactions. Attendees will also learn about year-end filing deadlines, reducing accounting errors, and preparing for a sales tax audit. This crucial seminar is free to GNYADA Members!

New York State’s Acting Tax Commissioner, Nonie Manion,

2017 Sales Tax Compliance Seminar | November 15, 2017 9:30am12:30pm

Center for Automotive Education & Training 15-30 Petracca Place, Whitestone, NY 11357

FREE FOR GNYADA Members. Reserve your seat today. Contact: Kelsey at kelsey@gnyada.com or 718.746.5900

Save the Date

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

The Newsletter • November 2017 3

NADA Director’s Column Nationwide dealers promote tax reform at D.C. conference / Emergency relief donations still needed

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

state franchise law; Stopping a proposed Senate bill that would ground the sale of all used vehicles with open recalls; and, Restraining the Consumer Financial Protection Bureau’s regulatory authority over dealer- assisted financing. The Representatives we met with are very familiar with the great organization we represent, have been to our Center for Automotive Education and Training, and know our legislative priorities. We gave each of them copies of the latest Economic Impact report and offered to provide any additional information they required. Meanwhile, NADA has collected over a million dollars in donations to help those who have been affected by this brutal hurricane season. At the current rate of requests for aid relief, it appears that another two million dollars is needed. To meet this building demand, NADA Chairman Mark Scarpelli has asked every NADA dealership to make a $1,000 donation to NADA’s Emergency Relief Fund. I encourage dealers to donate by visiting: nada.org/emergencyrelief n n

The NADAWashington Conference gave franchised new car dealers and association executives from around the country an opportunity to hold face-to-face meetings with their representatives in the U.S. Senate and Congress. Dealers shared first-hand details about conducting business in their regions and informed legislators about pressing matters facing the retail automotive industry. Throughout the discussions, dealers focused primarily on the need to implement pro-growth tax reform, addressing the following provisions in particular: Maintaining the LIFO inventory accounting method; Eliminating estate taxes; and, n n

Creating lower personal rates on income from pass-through entities. On behalf of GNYADA, I was joined at the conference by fellow Board Member Lou Giordano, NextGen Committee members Aaron Berg, Jordan Daiagi Harary, and Julian Windfield, and Association staff. Our schedule included meetings with local Representatives Tom Suozzi, Kathleen Rice, Lee Zeldin, and Peter King. In addition to promoting the above tax reforms, conversations touched on several federal-level dealer issues: Ensuring that legislation allowing OEMs to deploy highly automated vehicles, without meeting existing safety standards, does not preempt n n

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

The Newsletter • November 2017

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5 New City Laws Require Dealers to Disclose Profits/ Offer Cancellation Review Option

Following statements by Mr. Schienberg, John LaSorsa (LaSorsa Chevrolet Buick), and Mark Lacher (Koeppel Auto Group), Mayor de Blasio said, “Although I will be sign- ing these bills today, I would like to invite people from industry to provide us with feedback as this takes effect.” The Association will be involved in the regulatory process, ensuring that dealers’ concerns are considered and addressed as the rules for enforce- ment are created.

rights provided for in the first bill that dealers will have to provide to cus- tomers separately. At the bill signing, Association President Mark Schienberg delivered a statement to the Mayor in which he spoke about the consumer benefits of the current financing model. “Retail dealers work closely with lenders on a daily basis, are highly knowledge- able about auto financing, and have extensive relationships with lenders, which help each customer find the most advantageous financing,” said Schienberg. “This action will have a stifling effect on New Yorkers’ abili- ties to buy affordable cars.” 4 Check areas around light fixtures for moisture. 5 Watch out for rust or dirt in unusual places. 6 Check the interior and exterior for corrosion or waterlines. 7 Check engine compartment crevices for dirt or mud. 8 Perform a New York safety inspection — it could reveal corroded wires. 9 Examine the electrical system. 10 Check the undercarriage for excessive rust. NYS Damage Disclosure Law New York State requires presale disclosures whenever a vehicle being sold has been damaged by a natural disaster. If mechanical or electrical systems are inoperable or unable to pass inspection, the vehicle 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,

6 Despite six months of meetings with New York City Council members, a bold grassroots opposition campaign, and an impressive showing of dealers at City Hall, Mayor Bill de Blasio signed two bills into law that require dealers to make unprecedented finan- cial disclosures to customers. The first bill requires dealers to tell customers what the dealer’s buy-rate is and what their profits are on used car financing. It also creates a two- day cancellation review option for customers purchasing a used car. The second bill creates a consumer bill of rights, which incorporates the During a devastating hurricane season, dealerships throughout the south and southeastern U.S. have suffered extensive damage to both their facilities and their inventories. Hundreds of thousands of cars and trucks in storm-affected areas have likely sustained flood damage. According to Carfax.com , roughly 50% of all vehicles exposed to floods eventually return to market, as owners and salvagers attempt to resell them as undamaged. As some of these cars and trucks may make their way up north, GNYADA recommends these tips for spotting flood damage: 1 Sit in the car with the doors and windows closed and see if you detect a moldy smell. 2 Check carpeting or upholstery for water stains in unusual places. 3 Be suspicious of an older vehicle with new carpeting.

Ten Tips to Identify Flood-Damaged Vehicles

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 valued in excess of 5% of the MSRP for physical damage, dealers 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 dealer’s stated labor rate. Otherwise, the buyer has a four-month window in which (s)he can cancel the sale and receive a full refund. Carfax.com can help determine the history of a particular vehicle before it arrives at your dealership. The National Insurance Crime Bureau’s Flood Vehicle Database ( www.nicb.org/ ) can also be searched for free. The information in the database comes from insurance companies, salvage yards, and state and local authorities.

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

The Newsletter • November 2017 5

AlliedMember Memo

Identifying Substance Abuse Protects Your Employees and Your Business 7

grams also create a culture of com- passion and understanding within your business. Learn how to identify an overdose Abuse of opiate-based drugs, such as heroin, fentanyl, hydrocodone, and other pain medications, continues to rise in New York State. Along with that comes the trend of life-threaten- ing overdoses. By training your employees to recognize the signs of an opioid overdose, perform CPR, and administer emergency narcotic overdose treatments, you may save a person’s life. This article was provided by Have Dummy Will Travel, Inc., a GNYADA Allied Member providing dealers with CPR, AED, and first aid training and equipment. Have Dummy Will Travel, Inc. can assist with educating your employees about recognizing signs of addiction, identifying an opiate overdose, and administering life-saving techniques and medication. Opioid overdose classes (including Narcan kits) are offered at dealerships free of charge.

have EAPs for their members.)

A study of the impact of drugs in the American workplace found that addiction accounts for annual losses of over $81 billion in decreased pro- ductivity, employee absenteeism, accidents, and other related costs. If a dealership employee is battling addic- tion, certain steps will help protect the individual and his/her coworkers, pre- vent accidents and damage, and safe- guard the dealer against liability. Have a policy that identifies drug abuse but encourages rehabilitation An optimal drug policy includes ran- domized drug testing, an additional testing regimen for recovering employees returning to work, and an Employee Assistance Program (EAP). These programs can help your employees with a number of mental health services, including addiction treatment. Rehabilitation may be more successful if an employee knows that, if (s)he voluntarily enters into a pro- gram, (s)he will have a job when (s)he graduates. (Consider reaching out to unions as some may already The U.S. Supreme Court agreed to review whether dealership service advisers fall within the federal “salesmen, partsmen, and mechanics” exemption for overtime pay under the Fair Labor Standards Act. In 2015, the 9th Circuit Court of Appeals found service advisers at Encino Motorcars in California were entitled to overtime because they are neither salesmen nor mechanics. The Supreme Court rejected the lower court’s ruling — conflicting with previous rulings which found that 8

Learn signs of addiction Knowing the hallmark signs of alco- hol or drug abuse can help dealers recognize if an employee is strug- gling. Look for two or more of the following: Frequent lateness or unexplained absence. Lower work performance, especially in the morning. Frequent small accidents resulting in minor injuries or breakage. Unusual physical symptoms or behaviors (unsteady gait, sudden weight loss, dental problems, bloodshot eyes, long sleeves on hot days). Decreased hygiene/less attention to appearance. Paranoia/overreaction to criticism. Frequent job changes. Drug awareness programs may help your employees identify a coworker with addiction issues, so that help can be gotten for the individual. Such pro- n n n n n n n service advisers are OT-exempt — and asked them to reconsider. The lower court did not arrive at a different decision, meaning the Supreme Court will now decide the issue. This legal distinction has been closely monitored by GNYADA and NADA, who have long asserted that, while service advisers are technically not salesman or mechanics, they function very similarly to salespeople, with regard to commissions, interaction with customers, etc., and should

therefore be exempt from overtime. NADA anticipates that the Supreme Court will rule in favor of the dealer, representing a meaningful victory for all dealers who have applied the overtime exemption to their service advisers for decades. Supreme Court to Review Service Adviser OT Case

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

The Newsletter • November 2017

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Dealers Must Use Latest FTC Buyers Guide by January 28 9

In 2016, the FTC updated requirements for Buyers Guides that must be displayed on used cars offered for sale. The FTC gave dealers a one-year transition period, starting January 27, 2017, in which dealers could begin using revised guides while using up their stock of old guides. Starting January 28, 2018, dealers must be fully transitioned to using the latest version of the Buyers Guide. Among other changes, the revised Buyers Guides contain a statement

telling customers they can obtain a vehicle history report, to reveal possible open recalls, through safercar.gov. English-language guides must also contain a sentence, written in Spanish, directing Spanish- speaking customers to request a Spanish version of the guide. Dealers are required to provide Spanish Buyers Guides for transactions conducted in Spanish. Failure to post Buyers Guides can result in fines up to $40,000 per violation. ership transactions were: A drawn-out process is one of the top customer frustrations in car- buying. In fact, customer satisfac- tion tends to drop drastically after about 90 minutes spent in the deal- ership. Nearly one hour, on average, is spent in F&I, which is where much of the negative experience take place. Consumers are much more satis- fied with the car-buying steps that take place online (such as research- ing the vehicle they want), but that satisfaction reliably declines when the process comes offline. Among a number of other strategic tips, the webinar offered dealers the following suggestions: Be transparent about the process. Zahabi encouraged dealers to keep customers informed about specifics of n n n

GNYADA Offers Compliant Buyers Guides Dealers can purchase FTC-compliant Used Car Buyers Guides in both English and Spanish from the Association: FTC Buyers Guide–$22.50 per set of 200 FTC Buyers Guide (In Spanish)– $12.00 per set of 100 To order, call GNYADA at 718.746.5900. n n the transaction, whenever feasible, in order to make the process more enjoyable and put the customer at ease. Educate customers during down- time. Previewing the different financ- ing or aftermarket options customers are going to be presented with, including taking them on product tours, allows customers to think about their decision and creates a better use of their idle time in the store. Connect the online experience with the in-store conversation. If a cus- tomer researches a dealership’s inven- tory online, selects a vehicle, goes to the dealership to “check out” and the dealer doesn't know what they’re talk- ing about, this is a negative experi- ence that hurts satisfaction scores. “Don’t make the customer redo what they did,” said Zahabi. “If they worked out payments or filled out credit applications on the website, make sure to acknowledge that when they walk in the store.”

10 Increase CSI by Shortening Customer Visits A recent Dealertrack webinar exam- ined car buyers’ rapidly changing shopping and purchasing preferences. The webinar, titled It’s About Time: Customers Are Demanding Faster Transactions. Here's How You Deliver , focused on the importance of

allowing consumers to conduct as much of the transaction process online as possible. Presenter Mo Zahabi, Director of Product Consulting for Dealertrack and VinSolutions, shared a number of important satisfaction metrics and addressed the need for dealers to cre- ate smoother, faster, and more con- venient transactions to maximize CSI scores and remain viable in the long run. “Customers’ expectations aren’t always reality, but that doesn’t mean they're not right,” said Zahabi to open his presentation. “We constantly hear that we’ve got to get faster with trans- actions in dealerships.” Some of the most important stats and facts Zahabi shared regarding in-deal-

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

The Newsletter • November 2017 7

Six Important Safety Tips for Test Drives 11

GNYADA recommends that these policies incorporate the following measures:

already be in the passenger seat when (s)he hands over the keys. Train sales staff in how to react if a customer becomes aggressive or hostile during a test drive. While such instances are rare, it is important for employees to have an action-plan so they can make clearheaded decisions. If an employee leaves with a customer on a test drive, they must notify someone at the dealership. For this reason, it is important for the entire staff to be educated about the policy and be aware of the rules. For help crafting a test-drive policy for your dealership, please contact the Association at 718.746.5900. 5 6

The Equifax data breach served as an important reminder for dealers to focus on how to properly evaluate and respond to cybersecurity challenges. Given that 60% of companies that suf- fer a data breach go out of business within six months of the incident, it is important that dealers regularly assess their store's physical security as well as their network and system security. “Dealers are entrusted with a lot of sensitive information and have a responsibility to protect it,” said Steve Levine of Ignite Consulting Partners, a compliance company that helps dealer- ships of all sizes implement security measures. “That's a challenging com- mitment in this ever-changing world of technology. You’ve got to have the right game plan and commitment to data security on a daily basis.” Dealerships in Alabama and Mississippi were recently victimized by vehicle thefts that occurred during test drives. In one instance, a woman “test drove” the vehicle all the way to her home, 75 miles from the dealership; in the other, the thief waited until the salesperson exited the vehicle to switch seats, then fled and crashed into a mailbox as he was pursued by the police. Incidents such as these are important reminders for dealers to have a test- drive policy which prevents against theft and damage. This is a necessary part of the sales process not only to keep control of your inventory, but, more importantly, to keep your employees safe. 12

The following steps will help safeguard your business against both external hackers and employee negligence or misconduct: Regularly train employees on proper data protection procedures; Always follow prompts to update antivirus/antimalware programs; Run tests for vulnerable access points to the dealership’s data storage systems; n n n Rotate both physical and system access passwords; and, Have a separation process in place for departing employees, including disabling logins, removing social media privileges, notifying vendors, etc. Do not permit a test drive unless your dealership makes a copy of the customer’s driver’s license. Have set routes from which drivers can deviate as little as possible. In particular, routes should not allow for extremely easy access to highways or other open roads. The planned test-drive route should also consist mostly of right turns, which have a lower likeli- hood of an accident than left turns. Ensure that the test driver is accompanied by a dealership employee. The employee should n n

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Lock-Down Cybersecurity at Your Dealership

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

The Newsletter • November 2017

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Rules for Delivering COBRA Election Notices If a qualifying event causes an employee to lose his or her group health coverage, dealers with 20 or Bankruptcy of the employer. 13 n

dealers against this method, as it does not guarantee that the notice will be received by the affected beneficiaries. Employers are not permitted to send COBRA election notices by email. As a best practice, dealers are also advised to verify the mailing address for any departing employee. This is a wise step, should the dealer need to provide required notices or documents to former employees for any reason. For more information, please contact Mike Conway, Executive Director of the GNYADA Insurance Brokerage at 718-746-8100 or mconway@gnyada.com. n

Federal law requires employers to use delivery measures which ensure that the COBRA Election Notice will be received by the employee and their qualified dependents: First-class mail is a compliant and recommended means of providing a COBRA election notice to employ- ees and their qualified beneficiaries. Employers who wish to send COBRA election notices by second- or third-class mail are recommend- ed to purchase additional delivery insurance, USPS Tracking, and for- warding and return services. n n

more employees must provide COBRA election notices to the

employee and to any qualified depend- ents on the employee’s group health insurance. The notice must be provid- ed no more than 14 days after the dealer or plan administrator is notified about the qualifying event. The qualifying events that require pro- vision of COBRA election notices are:

Termination or reduction in hours of the covered employee;

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Death of the covered employee;

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Covered employee becoming entitled to Medicare; or

Hand delivery is permitted; the Association generally advises

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Join the Mission to Keep Our Neighbors Warm Register as a New York Cares Coat Collection Site

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The Association is grateful for the generosity shown by our dealer mem- bers year after year. Together, we know we can deliver yet another all- time best collection total this winter. To watch a video recap of last year’s record coat collection campaign, visit www.gnyada.com/community/coat- drive-2017 . To see which dealerships have already signed up for the 2017 coat

straight year and asking local dealers to help us beat last year’s record donation. Dealers can register for the 2017 coat drive in three easy steps: 1 Visit www.gnyada.com/coats and complete a brief signup form. 2 Designate an area (or areas) in your dealership where customers and staff can drop off coats. GNYADA will provide posters announcing your dealership as a donation site and bags to store coats. 3 At the end of the coat drive, call GNYADA to have your donations picked up and delivered to New York Cares’ headquarters.

Last year, more than 110 GNYADA dealerships participated in the New York Cares Coat Drive, helping the Association collect and deliver a record-breaking 11,000+ winter coats to help people in need make it through the coldest months of the year. This year, the Association is teaming up with New York Cares for the sixth

drive, visit www.gnyada.com/ community/2017-coat-drive.

For any questions, contact Jennifer Berman at Jennifer@gnyada.com or 718.746.5900 ext. 235.

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

The Newsletter • November 2017 9

Technician Strike Still Affecting Chicago Dealers Stay compliant when dealing with unions 15

This past summer, roughly 2,000 unionized techs in the Chicago metro- politan area went on strike, impacting as many as 140 new-vehicle dealer- ships in that region. Many of the affected dealerships were forced to stop performing repair work during the strike. The strike eventually ended when the technicians’ union approved a new four-year contract that addressed sev- eral of their concerns. However, deal- ers in that area continue to feel the loss of business. During the strike, appointments for essential repairs and

warranty work were performed else- where while appointments for nonessential repairs were not sched- uled, meaning little work is coming in even today. Crucial rules for union dealings To avoid the loss of time and business that can result from mishandled union matters, the Association would like to remind dealers that they are federally prohibited from taking certain actions, or making certain statements, with regard to unions.

Dealers with unionized employees cannot:

Threaten employees with adverse action or discriminate against them for supporting or participating in union activity; Ask employees about union activities, including the location of meetings, or about internal conversations between unionized workers; Promise employees benefits if they vote a certain way on a union issue; or Surveil union activities, whether employees are striking or not.

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Avoid Violations in Your F&I Department

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Did you know some NY dealers have paid millions in fines for F&I noncompliance in recent years? On January 16, 2018, GNYADA will host a class focusing on the requirements of dealerships’ F&I processes and sharing practical steps to eliminate risks of violation. The class, called Reduce Compliance Risks in F&I Departments , will be presented by Max Zanan, President of Total Dealer Compliance (TDC), a GNYADAAllied Member. In preparation for the class, GNYADA spoke with Mr. Zanan about the need for dealers to adhere to the variety of rules governing this key step in the vehicle transaction process:

Q: In your experience, what are the areas where auto dealers run into the most problems with F&I compliance? A: Payment packing and F&I product jamming represent the biggest problems for dealers. These offenses damage a dealership’s reputation and are high on the violation-list of State and Federal law enforcement agencies.

Q: What are some of the hidden consequences dealers face for failing to follow F&I rules and regulations? A: Poor F&I procedures are a major

Q: What tips and procedures will

TDC's class address to help dealers reduce their risk of violations?

A: This class will focus on internal policies, audits, regular training, and improved complaint-resolution processes. These steps are easy to implement, will reduce a dealer’s exposure, and will increase customer satisfaction and retention. To register for the January 16 class, taking place at the Center for Automotive Education & Training, please contact Carole Rogner: 718.640.2012 / carole@gnyada.com.

reason car buyers are apprehensive about going to dealerships. In fact, customer dissatisfaction with the lack of transparency in this step is the main driver behind internet disrupters such as Vroom.com and Shift.com. Dealers who don’t evaluate the way they do business may not survive the digital revolution. (Remember what happened to travel agents once Expedia entered the market.)

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

The Newsletter • November 2017

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“Paws” to Consider Your Service Animal Policy 17

(ADA), people with disabilities may bring service animals into businesses. A service animal is a dog or miniature horse that has been, or is being, trained to aid a person with a disability. Most people are familiar with guide dogs for individuals with visual or hearing impairments; however, service animals can also be trained to detect oncoming seizures or when a person’s blood sugar is too high or too low. “Emotional support animals” are not trained to perform a specific task, therefore dealers do not need to permit them in the dealership. Some additional rules around this issue include: If it is not obvious that the animal n

is a service animal, a dealer is permitted to ask before allowing it into the dealership; A dealer may not ask the customer to present proof that their animal is a service animal; If the animal growls, lunges, or threatens other customers, a dealer may ask the owner to leave but must offer the option to stay in the dealership without the animal. A dealer may not charge the customer for allowing a service dog to go on a test drive or in a loaner vehicle. However, if the dog damages the vehicle, the dealership may charge the customer for repair.

A Florida Mercedes-Benz dealership settled a lawsuit for refusing to let a customer take his service dog in a loaner vehicle. Part of the settlement required the dealership to train its employees on how to treat customers who own service animals for disabilities. While this issue has not reached the courts, the law regarding taxis provides some guidance — taxis may not refuse to transport someone with a service animal and cannot charge a higher fare, fee, deposit, or surcharge for transporting a service animal. What if a customer brings a service dog into my dealership? Under New York law and the Americans with Disabilities Act

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Local Dealer Group Steps up Fall Food Donations 18

“In 1937 Nat Koeppel started a Thanksgiving tradition by giving turkeys to all his employees as a show of appreciation,” said Koeppel’s Dealer Principal, and GNYADA Director, Mark Lacher. “Over the years, this tradition has been expanded to include our surrounding community and local firehouses.” If a Koeppel employee doesn’t want or need the turkey being offered to them by the dealership, it gets donated separately to Lions Clubs International. Over the last decade, Koeppel has collected several hundred pounds of food as part of its work with New York Cares and City Harvest. Koeppel employees set up donation bins in each of the group’s four locations: Koeppel Ford, Koeppel Nissan, Koeppel Subaru, and Koeppel Mazda, all located on Northern Boulevard in Queens. The drives are also promoted on Koeppel’s website and social media channels, where customers are encouraged to come to one of the facilities and make a donation, whether actual foodstuffs or just financial support. To learn more about Koeppel’s 2017 efforts in the local fight against hunger, visit www.koeppelautogroup.com .

Every fall, the Koeppel Auto Group participates in massive food drives through New York Cares and City Harvest. In addition to these large-scale food collection campaigns, Koeppel donates 50 turkeys every year to organizations throughout the dealership’s community on the Tuesday before Thanksgiving. Koeppel employees Melissa Drapala (left), Jorge Pena (center-left), and Charles Fama (right) with City Councilman Daniel Dromm's Chief of Staff, Carolyn Tran (center-right)

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

The Newsletter • November 2017 11

GNYADA Meets the Needs of its Members

As members of the Greater New York Automobile Dealers Association, dealers have access to a wealth of services and programs aimed at keeping their business operations compliant, efficient, and profitable. The below list of pro- grams is a reminder of just some of the ways in which GNYADA has its members’ backs:

GNYADA BOND PROGRAM

DMV-DIRECT processes titles and registrations for over 200 dealers. The office 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 DMV partner outside of Connecticut that can issue Connecticut plates. Learn more at

The Association’s Bond Program secures required bonds for dealers through- out the 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 also helps dealers with Permit Bonds, Utility Bonds, and many others. To learn more, email jennifer@gnyada.com .

GNYADA’s Employee Relations Plan (ERP) gives you personal assistance with labor law compliance. Call the ERP Hotline at 718.746.5900 for guidance on workplace concerns like hiring / firing practices, wage payment issues, worker conflicts and much more. The Association’s team of Labor Law attor- neys is standing by to answer your questions. Learn more by visiting

The GNYADA Insurance Brokerage covers all of your dealership’s insurance needs, including health and dental coverage, workers’ comp, vision plans, disabil- ity, life insurance, medicare and flexible spending accounts. The Brokerage also consults dealers on required changes to their insurance offerings and helps them keep compliant with IRS form filing. Learn more at

gnyada.com/dealers/ registration/overview .

gnyada.com/dealers/ employee/overview .

gnyada.com/dealers/ insurance/overview .

Employment Corner

Contact Us: 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

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

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 2017

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

The Newsletter • November 2017

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