GNYADA November 2017 Newsletter

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