GNYADA November 2019 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 2019 Volume 29, Issue 4

1 GNYADA Chairwoman Driving the Association’s Agenda

HIGHLIGHTS

Senator Holds Auto Brokering Roundtable page 2 GNYADA in Washington DC page 3 NYC DCA is Cracking Down on Dealers page 4 DMV Commissioner gets a Firsthand Look at the Need for Auto Techs page 6 FTC Raising Fees to Access Do-Not-Call List in 2020 page 7

GNYADA Chairwoman Jane Millman, center, recipient of the 2019 New York Power Woman in Business award, presented by Vicki Schneps (right).

ship skills combined with her commit- ment to our Association are tremendous assets to the GNYADA membership and franchised new car dealers at large.” Millman has also been featured dis- cussing the important role dealerships play in their communities in several media outlets including key industry publications such as Ward’s Auto, Autobody News and CBT Automotive Network, Long Island Business Journal and most recently, Dealer Magazine. Last month at a reception in Queens, Milliman was awarded 2019 Schneps Media New York Power Woman in Business for her leading voice in the community and the industry. The event was sponsored by Vicki Schneps, President of Schneps Communications.

Chairwoman Jane Millman has been very active in her first few months at the helm of GNYADA. Millman has met with numerous state legislators to discuss GNYADA’s political agenda including the ongoing shortage of tech- nicians and good paying careers avail- able at local dealerships. Jane also focused on additional issues dealers face in running their businesses such as increasing manufacturer demands on dealerships and the impact that the influx of brokers is having. “We are very fortunate to have someone with Jane Millman’s industry knowl- edge, experience, and insight as Chair of the Board of Directors for 2019,” said Mark Schienberg, President of GNYADA. “Jane’s vision and leader-

Data Proves It: New York Auto Show Moves Metal page 8 Why a Health Savings Account be Beneficial page 9

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

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

Senator Holds Auto Broker Roundtable

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several dealers from the Greater New York Region also participated in the roundtable. Other attendees included representatives from the broker and leasing industry. There were direct exchanges with the brokers where GNYADA and its partners were loud and clear that brokers face little or no oversight on how they operate in comparison to the intense scrutiny of new car dealers. Additionally, GNYADA and its partners stressed that brokers offer far less consumer price competition, services, careers/jobs and economic impact for the State. GNYADA emphasized how uneven

the playing field has become. Dealers are regularly audited through on-site visits from the Department of Motor Vehicles, NYC Department of Consumer Affairs, the NYS Attorney General and other regulatory entities, while, despite having several laws already on the books, brokers deal with little of this regulatory oversight. While the dealers and the Associations made their case that brokers have become irresponsibly disruptive and are poorly regulated, it is clear a lot of pressure will be necessary to get the State Legislature to act to protect dealers’ investments and consumers’ interests.

GNYADA participated in a roundtable discussion concerning auto brokering in New York. The event was hosted by Senators Kevin Thomas (D-Nassau) and Diane Savino (D-Staten Island). Thomas is the primary Senate sponsor of a bill GNYADA supported last year that would curtail current broker practices. Assemblyman Bobby Carroll (D-Brooklyn), a strong supporter for GNYADA on this issue and the Assembly sponsor of the bill, was also present and voiced strong backing for the Association’s position. NYSADA, representatives from the UAW and Teamsters, along with

3 The economic impact of franchised new car dealers amounted to more than $51 billion in metro New York, according to GNYADA’s economic impact report. From employing tens of thousands of New Yorkers, to serving as brick- and-mortar anchors for Main Streets, to sponsoring little league teams, donating to hospitals and other local community institutions, franchised new car dealers’ contributions to individuals employed as a result of the indirect impact of dealership operations. This accounted for 12.3% of the total retail employment in the metro area, making new car dealers the fifth largest retail employer in the area just behind supermarkets, clothing stores, department stores, and pharmacies. A full copy of the report will be sent to your dealership. Franchised Dealers’ Economic Impact Tops $51B their communities and to the state’s economic vitality are significant and widespread.” said Jane Millman, Chairwoman of GNYADA and owner of Riverhead CDJR. A significant element of franchised new car dealers’ impact is tied to jobs. With a total employee compensation of $4.5 billion, metro area new vehicle dealerships employed 39,480 people in well- paying jobs with an additional 31,800

Additional findings of the report include:

2018

2016

Variance

Total sales

$38.5 Billion $36.8 Billion $4.5 Billion $4.3 Billion

4.6% 4.7% 3.9% 9.0% 4.2% 1.0% -1.6% 4.2% 1.0%

Total expenses Jobs generated*

71,280

68,600

Employee earnings*

$4.5 Billion $4.1 Billion $2.5 Billion $2.4 Billion $20.9 Million $20.7 Million

Taxes (state sales, payroll, real estate)

Charitable contributions New vehicle retail sales Advertising expenses

602,000

612,000

$496 Million $476 Million $485 Million $480 Million

Estimated capital improvement to dealership facilities

Data presented in the report is based on 2018 financial data collected through surveys sent to franchised new car dealers in the greater New York metro area.

2 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • November 2019

4 GNYADA in DC to Discuss the Reality of our Industry with Legislators

GNYADA participated in NADA’s annual Washington Conference along with counterparts from around the country in an effort to shape the federal laws and regula- tions that will impact the industry for years to come. Some of the discussions with legislatures included the following topics. Trade Policies Should Not Threaten U.S. Jobs or Harm U.S. Consumers (Tariffs | USMCA) Steep new tariffs of up to 25% on imported autos and auto parts, would hurt the auto industry and consumers. According to a recent study by the Center for Automotive Research auto and auto parts tariffs would increase vehi- cle prices by $2,750 on average per vehicle, cause a decline of up to 1.3 million vehicle sales, and result in a loss of 367,000 American jobs. Dealers advocated their support of modernizing America’s trade agreements, such as the U.S.-Mexico-Canada Agreement (USMCA). This agreement would continue the tariff-free exchange of vehicles within North America. Approval of USMCA would preserve the competitiveness of the U.S. automotive industry and reduce the threat of tariffs on autos and auto parts produced in North America. The administration and Congress currently are negotiating implementing legislation for the agreement. These negoti- ations should be expedited, and Congress should vote on the USMCA implementing legislation this year. Sen. Richard Blumenthal (D-Conn.) recently introduced S. 1971, legislation that would cripple the used-vehicle market by halting a dealer’s sale, lease, wholesale or loan of used vehicles under any open recall. The bill is over- broad because most recalls do not require the drastic step of grounding. Additionally, the bill would create a “trade- Overbroad Recall Bill Will Create A Consumer Trade- In Tax (S. 1971)

in tax” that would instantly devalue a car buyer’s trade-in by grounding recalled vehicles for minor matters such as a peeling sticker. Dealers lobbied that Congress should oppose overbroad recall legislation and focus on initiatives to improve con- sumer response to vehicle recall notices and increase recall completion rates. Throughout the day, the GNYADA coalition met with Senate Minority Leader Charles Schumer, Congressman Peter King, Congressman Jose Serrano, Congresswoman Nydia Velazquez, and Congressman Max Rose. In all the meetings, the GNYADA delegation was able to make the issues relatable to activity in our region. Every representative understood the impact of franchised dealer- ships in their districts and appreciates the good-paying careers afforded to constituents.

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

The Newsletter • November 2019

NYC DCA is Cracking Down on Dealers TWO USED CAR DEALERS FINED $204k FOR VIOLATIONS

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laws that became effective last June. If your dealership has not already filled out the Report, it can be found at https://www1.nyc.gov/assets/dca/do wnloads/pdf/businesses/Used-Car- Contract-Cancellation-Option- Report-English.pdf Failure to produce the Report with your renewal application will result in non-renewal of your used car license. Dealers should review this Report carefully to ensure consistency with documents showing the numbers of used cars sold between July 1, 2018 and May 31, 2019. Dealers should also review deal jackets to ensure copies of the Contract Cancellation Option forms have been filed properly.

The Department of Consumer Affairs (DCA) recently fined two used car dealers, in Brooklyn and the Bronx, for illegal marketing and business practices as well as violations of the new financial disclosure laws. The dealerships failed to give customers required documents including the Consumer Bill of Rights, Financing Disclosure Form, and Contract Cancellation Option. The dealerships’ licenses are also being suspended and may be revoked. Due to violations like these, the DCA is requiring all NYC dealers to submit a copy of the New York City Second-hand Automobile Contract Cancellation Option Report with their license renewal application. Your dealership should have this Report available as it is a requirement pursuant to disclosure Recently, several dealers have either taken in vehicles on trade or have pur- chased used vehicles from auctions where the “Branding” from the DMV did not appear. Titles are sometimes “washed” from a vehicle to alter or eliminate necessary information. This is a problem for dealers because they are obligated to disclose the Branding when selling the vehicle. It is also a problem for purchasers because they may pay a higher insurance premium or be entitled to only a percentage of the damages in the event of an accident. Mississippi has the highest rate of vehicles with washed titles – 1 in 44.6 vehicles. New Jersey is not far behind with 1 in 87 vehicles. Other states with a high number of washed titles include Maryland (1 in 217), 6 Washed Titles

NEW YORK CITY SECOND-HAND AUTOMOBILE CONTRACT CANCELLATION OPTION REPORT

Second-HandAutomobileDealerName:

Second-HandAutomobileDealer DepartmentofConsumerAffairs (DCA)

LicenseNumber: BusinessAddress:

Second-hand automobile dealersmustmaintain a reporton consumer useof automobile contract cancellationoptions. The reportmust bemade availableupon request to theDepartmentofConsumerAffairs,butnomore thanonceannually. Date

NumberofConsumers thatAcceptedan AutomobileContractCancellationOption inConnectionwith theirSecond-Hand AutomobilePurchase

NumberofConsumers thatCancelled their Second-HandAutomobileSalesContracts Pursuant to anAutomobileContract CancellationOption

January 20___

February20___

March20___

April20___

May20___

June 20___

July20___

August 20___

September20___

October20___

November20___

December 20___

Iam authorized (e.g., owner, sole proprietor, general partner, director, corporate officer, or shareholder owning 10% ormore of company stock) to completeand sign this form onbehalf of theSecond-HandAutomobileDealer namedabove. Iunderstand that falsification of any statementmade herein is an offensepunishable bya fine or imprisonmentor both. __________________________________________________________ Signature __________________________________________________________ PrintName __________________________________________________________ Position/Title __________________________________________________________ Date

If you have any questions, please call the Association at 718.746.5900.

CARFAX, Auto Check, or any other place that you can obtain accurate information about a used vehicle’s history.

Rhode Island (1 in 238), Vermont (1 in 343), and Delaware (1 in 410).

Once a Branded Title, Always a Branded Title

DMV-DIRECT is available at 718.747.0400 if you have any questions regarding vehicle titles.

If a dealer purchases a vehicle or takes one in on trade and discovers that the Branding was removed from the title, it is best practice to disclose it to the poten- tial purchaser in writing to avoid possible legal issues. If a vehicle was originally titled in New York State, and the title was washed after moving through a few states, then the vehicle’s title should be re-Branded if it is titled again in New York. Dealers should make every reasonable effort to check the vehicle history through

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4 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • November 2019

Pay Stub Violations Could Cost Millions

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To help stop repeat offenders, if a dealer has already had a violation in the previous six years, penalties could be up to $20,000! Pay stubs/wage statements must include: n Dealership’s name, address, and phone number n Employee name n Dates covered by payment (pay period) n Basis of payment (hourly, salary, commission, etc.) n Rates paid (regular and overtime) n Hours worked (regular and overtime) n Allowances or credits applied against wages n Gross wages n Any deductions from wages, and n Net wages

Earlier this year, a federal court in California awarded a class of Walmart employees over $100 million because Walmart had given them improper wage statements. The wage statements did not tell employees all applicable hourly rates during a pay period or did not include pay period start and end dates. The same violation could be just as costly to a NY dealer. New York’s Wage Theft Prevention Act (WTPA) requires that employees receive detailed, accurate, written wage statements. For each day a dealer does not provide a pay stub, a worker can get $250, up to a max of $5,000. If the pay stub is not compliant with the WTPA, a dealer will have to pay $250 per violation, up to $5,000.

8 Process DMV Registrations and Titles from your Dealership

GNYADA is proud to partner with Dealertrack to provide dealers with a high-performance In-State Registration and Titling solution. Dealertrack’s Online Registration System is a user-friendly, intuitive application that enables dealerships to register and title motor vehicles on site, online, and in real-time. It inte- grates seamlessly into your workflow and is designed to be streamlined, helping you to process transactions faster, easier and more efficiently.

Online Dealer Advantages:

Online Dealers Do Not Have To:

You know the exact registration fee to collect from the customer, eliminating registration refund processes; DMV supplies you with your documents and license plates; If the customer is transferring plates and the registration has only one day left, you can transfer and renew the plates all at once; If your customer lost the title for their trade-in, you can process the duplicate title request; Eliminates the risk of having to pay customer tickets because they didn’t receive their registration on time.

Cut refund checks;

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n Mail registrations and refund checks; Pay for license plates and in-tran- sit permits; Remember to order plates; Send unclaimed money to the State each month for the cus- tomers who haven’t cashed the checks sent by your dealership. To learn more about Dealertrack’s Online Registration System, contact GNYADA’s DMV service, DMV- DIRECT at 718.747.0400. n n n

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

The Newsletter • November 2019

9 DMV Commissioner Gets a Firsthand Look at the Need for Auto Techs

Governor Andrew Cuomo selected GNYADA President Mark Schienberg as a Co-Chair of his Excelsior Automotive Technician Task Force (EATTF). The Governor established the EATTF commission after GNYADA reported a shortage of technicians; he announced its cre- ation during the Opening Ceremony of this year’s New York Auto Show. Governor Cuomo said, “We have over 75,000 technician jobs [nation- wide] that are good jobs, high-paying jobs, and we want to educate New Yorkers for those jobs right here in New York. This new task force will set us on that path.” The task force is focused on increas- ing automotive technician education and boosting its workforce by bring- ing together stakeholders from all parts of the automotive industry to collaborate on promotion, education, training, and job placement issues. Since its creation, GNYADA has helped define a course of action, gathered stakeholders, conducted need assessments and, most recently, invited DMV Commissioner Mark Schroeder to tour automotive schools and a dealership in the metro area to provide him with a firsthand look at the technician shortage.

Messrs. Schienberg and Schroeder spent a day touring several down- state automotive education facilities. GNYADA arranged several meetings and tours for the Commissioner and his Executive Advisor Patrick Curry to provide them the opportunity to meet with local school officials and dealership staff. Commissioner Schroeder met with LTI CEO Scott Shaw, Campus President Herman Dawkins, and a number of students to discuss how the LTI program functions and the importance of the relationship with GNYADA and its members, which create job-specific training for stu- dents to succeed in the industry. Dave Macholz, the Chair for Automotive Technology, and President Louis Petrizzo, sat with

the Commissioner to discuss Suffolk County Community College’s relationship with different OEM- advanced training programs and their class-size limitations. Jim, Joe, and Nancy Buzzetta, owners of Competition Auto Group, and sev- eral of their managers discussed the impact the technician shortage has on dealer operations. The Commissioner found the day to be very informative and it helped form ideas for the task force to con- sider. EATTF will be releasing a report to the Governor outlining key steps that must be taken to address the shortage of technicians. GNYADA will keep dealers informed of progress in eliminating the shortage.

Tech Survey Results are in– We Need Techs! 10

to the task force that these are good high paying jobs; 51% of respondents pay “A” Techs more than $100,000, 66% pay “B” Techs between $75,000-$100,000, and 34% pay “C” Techs between $50,000-$75,000. GNYADA has shared these results with the Governor’s Automotive Technician Task Force, further indicating the critical need for techs. GNYADA thanks the dealers who took the time to respond to the survey.

GNYADA recently sent a survey to its members asking for information about their need for auto technicians – which had an overwhelming completion rate of more than 35% of our membership. To no one’s surprise, the results were as expected… we need techs! The average dealership in metro New York needs 11 techs right now and at least 14 additional techs in the next 5 years (accounting for attrition, retirement, etc.) meaning metro area dealers will need more than 4,000 techs soon. The survey also proved

6 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • November 2019

11 FTC Raising Fees to Access Do-Not-Call List in 2020

The IRS requires dealers to report any cash, or cash equivalent payments over $10,000, using IRS Form 8300. Payments up to and including $10,000 in cash or cash equivalents do not trigger this requirement. The only exception is if the dealer suspects the buyer is attempting to arrange the deal specifically to avoid the reporting. Cash equivalents are a check, cashier’s check, bank draft, traveler’s check, or money order. But what about a debit card payment? In its Motor Vehicle Dealership The Federal Trade Commission (FTC) recently announced an increase in fees for companies to access its “Do-Not-Call” (DNC) Registry. Dealerships are prohibited from calling phone numbers on the DNC Registry for telemarketing. All telemarketers calling consumers in the United States are required to download the numbers on the National DNC Registry to ensure they do not call consumers who have registered their phone numbers. 12

a half year will increase to $31, up from $30. The maximum amount that can be charged to an entity accessing

Q&As, the IRS says that a debit card is not a cash equivalent for reporting purposes. It says a debit card works like a credit card, which is not a cash equivalent, except the customer’s account is charged against existing funds instead of creating a debt to be paid later. For example, if a customer buys a $16,000 car with $9,000 in cash and a $6,000 debit card payment, the dealer does not need to file an 8300. However, if the dealer receives even one cent more than $10,000 in cash or New Charges for 2020 Dealers who want access to only five area codes or fewer 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 per-area-code access fee when renewing their accounts. The cost for yearly access to a single area code of data will increase to $65, up from $63, and the fee for accessing an additional area code for

all area codes nationwide will increase to $17,765, up from $17,406.

For more information about the FTC’s Telemarketing Sales Rule, visit: https://www.ftc.gov/enforcement/rules /rulemaking-regulatory-reform- proceedings/telemarketing-sales-rule

Debit Card Payments Are Not “Cash Equivalent” for 8300 IRS Form Reporting

cash equivalents, or believes the buyer is structuring the deal specifically to avoid reporting, the dealer would have to file an 8300. Filings for qualifying events are due 15 days after the transaction. Reminder: All customers who were identified on an 8300 form during 2019 must be notified, in writing, of the form’s submission to the IRS no later than January 31, 2020. For more information, including details on filing 8300 forms electronically, visit www.gnyada.com

In August, the Department of Labor (DOL) determined that the Family Medical Leave Act (FMLA) covers an employee’s absence to attend a meeting about their child’s individ- ualized education program (IEP). The DOL said that attending these meetings counts as caring for a family member with a serious health condition, since this includes FMLA Update: IEP Meetings a Reason for Leave 13 Violating the FMLA can be costly, as a Massachusetts employer found. The employer terminated an employee while they were on FMLA leave to recover from surgery because it found out he went on vacation. The court said that recovery could take place while on vacation, since the employee established he didn’t do anything strenuous, just sat on the beach! physical and psychological care. What Should Dealers Do This type of absence would be easy to reject as not covered so make sure all supervisors know that IEP meetings are eligible for FMLA. If you have any questions about FMLA or other types of leave, contact the Association (718.746.5900).

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

The Newsletter • November 2019

Data Proves It: New York Auto Show Moves Metal GNYADA PREPARES DEALER-FOCUSED REPORT FOR 2020

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huge investment in advertising and marketing, the Show generates levels of interest in new vehicles like no other event. Our goal is to bring a greater awareness of the relationship between the Show and GNYADA members that will benefit dealers through increased publicity and sales,” said New York Auto Show Committee Chairman, John LaSorsa. “In addition to providing OEMs with an unprecedented volume of leads, 46% of attendees reported that they plan to visit a dealership after attend- ing the Show. There is no better way to reach these potential buyers than the New York International Auto Show and we want to make sure that they visit your dealership to test drive the cars and trucks they have been excited by at the Auto Show,” continued LaSorsa.

To strengthen the connection between the Show and GNYADA member- ship, the Association is preparing a report specifically tailored to empha- size the value the Show brings to local dealerships and to OEMs. “With an increase in traditional and social media attention as well as the

The New York International Auto Show continues to be the preferred method of research for the over 20 million consumers in the New York Designated Market Area (DMA). Over 72% of attendees indicated in a post-Show survey that they are in the market for a new vehicle in the next twelve months.

GNYADA Membership Directory Services Guide YOUR ONE STOP RESOURCE

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This year, we have renamed the Membership Directory – it is now the Membership Directory and Services Guide – to encompass the full breadth of information that can be found in it. The Directory includes not only a listing of GNYADA dealers and allied members but is filled with information that will help with your day-to-day operations. The Hot Topics section will help you find the solutions to many of the issues and questions that keep our phones ringing off the hook. You can read about issues including sexual harassment, paid family leave, signage, OSHA violations, advertising guidelines, and tax reminders. This year’s Directory includes a new section – compliance for NYC dealers. Contact Jennifer at the Association 718.746.5900 or Jennifer@gnyada.com if you would like more copies.

GNYADA thanks the following advertisers for supporting our Directory and Association:

ACV Auctions AutoTrieve

Portfolio Group Management Putney, Twombly, Hall & Hirson Richards, Witt & Charles Rosenblatt, Levittan, Vulpis, Goetz & Co. Rosenfield & Co

Bank of America Bass Sox Mercer CarFax Citadel Security Systems Citrin Cooperman DP Sales Distributors Groovecar GSFS Group Gundermann & Gundermann LaBonte Law Group

Siegel Distributing The Dent Specialist UDS Insurance Walden Associates Weiner LLP Weisberg, Mole', Krantz & Goldfarb,LLP Withum Smith & Brown Xenex

Lincoln Tech Marcum LLP Nerds That Care NuVinAir New York

8 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • November 2019

2019 Women Driving Auto Retail Video Contest

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receive a $1,000 gift card plus complimentary registration to the NADA Show 2021 in New Orleans, along with a $1,000 travel stipend.

The National Automobile Dealers Association (NADA) is accepting entries to its third annual Women Driving Auto Retail video contest. The 2019 contest aims to continue amplifying the voices of women in all areas of franchised dealerships, from owners to controllers, service technicians to F&I managers, and strives to encourage other women to pursue automotive careers. GNYADA encourages women in ALL dealership positions to highlight the many accomplishments and opportunities for women in auto retailing. Record and share a video (no longer than 3 minutes) to Facebook, Twitter, LinkedIn and/or Instagram (along with the hashtag #WomenInAutomotive) by December 31, 2019. If you’re a woman working in the auto retail industry, tell other women who you are, what you do, why you love it, how you’ve grown professionally, what benefits you’ve found working in the dealership setting and why the auto retail industry is a great place for women to succeed. NADA will announce 10 semifinalists on January 31, 2020, and the grand-prize winner will be announced during the NADA Show 2020 in February. Semifinalists will receive a $500 gift card. The grand prize winner will

Submission Requirements

n Videos can be no longer than three (3) minutes. n Videos cannot exceed 2GB in file size and must be in either .MOV or .MP4 formats. n Submit your video through the form at www.womendrivingautoretail.org, granting NADA the rights and permissions to use and display the submitted entry. n Submissions must also be shared publicly on Facebook, Instagram, LinkedIn or Twitter and include the hashtag #WomenInAutomotive. The form below will ask you to include a link to the public post. n All submissions must be received by December 31, 2019, to be eligible. If you choose to participate, please forward a link of your video to Jennifer Berman, Director of Membership, at Jennifer@gnyada.com so GNYADA can share your “Women In Automotive” video submission through our social media channels as well.

Why a Health Savings Account is Beneficial

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pre-tax money to pay for qualified medical expenses such as deductibles, copayments, and coinsurance. The pre-tax contributions can be invested, and grow,

A Health Savings Account (HSA) is a savings account, available for employees that have a high deductible plan, that allows them to set aside

Benefits of HSA’s

n Contributions made into an HSA are tax deductible. Contributions can be made by an employer and/or employee. Money taken out of an HSA for qualified medical expenses is not taxed. HSA contributions earn interest. The money is yours even if you leave your job. You don’t lose it if you don’t use it. The funds will roll over and continue to grow. If you feel an HSA may be of interest to your dealership, contact Michael W. Conway, Executive Director of the Insurance Brokerage to discuss in more detail. Michael can be reached at 718.746.8100 or mconway@gnyada.com . n n n n

tax-free when they are withdrawn for qualified expenses.

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

The Newsletter • November 2019

Jim Buzzetta Gets Time Dealer of the Year Nomination

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Foundation in 2010, which recog- nizes extraordinary volunteerism and leadership. Another charitable institution that Buzzetta champions is Alternatives for Children, a Long Island organiza- tion that provides education and ther- apeutic services to children with spe- cial needs. He is a board member and his company is a founding sponsor of the group’s annual Classic & Sports Car Rally. Other initiatives he supports on both a local and national level include: Pink Aid (helps underserved women throughout their breast cancer treat- ment), the Heckscher Museum of Art (Huntington), St. Johnland Nursing Center (Kings Park, NY), Huntington Arts Council, YMCA of Long Island, American Cancer Society, St. Jude Children’s Research Hospital, Special Olympics, National Multiple Sclerosis Society, and many more. The Greater New York Automobile Dealers Association congratulates Jim on this distinct honor!

Buzzetta has served on the board of the St. Charles Hospital Foundation since 2002 and was chairman of the group for three years. He actively participates in programs to raise funds for the Port Jefferson, New York-based hospital, which include an annual gala, golf outing, cooking event, and wine auction. Buzzetta is proud to have received the coveted Theodore Roosevelt Award from the St. Charles Hospital

Jim Buzzetta, Dealer Principal at Mercedes-Benz of Huntington, has been nominated for the 2020 TIME Dealer of the Year award by his fel- low dealers. Buzzetta is one of a select group of 49 dealer nominees from across the country who will be honored at the 103rd annual National Automobile Dealers Association (NADA) Show in Las Vegas on February 15, 2020.

Hiring Younger Workers Could Reduce Turnover 19

A 2019 Dealership Staffing Study by Cox Automotive found that dealerships have an incredible 80% turnover rate! The study showed that around 20% of dealership staff plan to look for a new job in the next six months and that 1/3 of non-management employees are either neutral or unhappy with their jobs. However, dealerships can reverse this trend by hiring from younger generations – Gen Z and Young Millennials. Approximately 61

million Gen Z-ers are entering the workforce and they are more interested in dealership jobs than older generations.

n Be open to new technology as we transition into a new era of car buying Ensure your dealership reflects your market demographics GNYADA thanks Allied Member Cox Automotive for its contributions to this article. For more information about this staffing survey visit; https://www.coxautoinc.com/learning- center/university/#StaffingStudy n

How to Attract and Retain Younger Employees

Promote a healthier work/life balance to mitigate turnover Create and communicate a competitive pay and benefits plan Provide ongoing employee training and career planning discussions

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10 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • November 2019

GNYADA Member Benefit: Reduced Flat Rate Pricing 20

the new discounts to your existing account by visiting: www.savewithups.com/gnyada or call 1.800.MEMBERS (1.800.636.2377), Monday-Friday, 8am-5pm, ET. GNYADA’s UPS Savings Program Is a part of the Dealers Discount Club (DDC) . The DDC helps dealers reduce overhead, save time, and identify companies who offer products and services geared toward today’s dealerships. If you have questions about this program or any other DDC Program, contact Jennifer at jennifer@gnyada.com or 718.746.5900. *Visit www.savewithups.com/gnyada for specific services and discounts

GNYADA Members Savings Include:

n 45% on Domestic Next Day / 10%* on UPS Next Day Air ® Early 25% on Ground Shipping International: 50% on Export / 40% on Import / 25% Canada Standard Savings begin at 75%* on UPS Freight ® shipments over 150 lbs. Free UPS Smart Pickup ® UPS also help dealers get things done with e-commerce tools, supply chain management, transportation solutions, and warehousing and distribution services. Open a new account, or if you are already taking advantage of our UPS savings program, re-enroll and apply n n n n

Rely on GNYADA’s UPS Savings Program to get critical documents or last-second orders to customers the next morning with the same convenient and reliable service at a new lower price - no matter how much you ship, when you ship, or where it’s going.

Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • November 2019 11

Make Full Use of Your GNYADA Benefits

Order 2021 Inspection Stickers Now

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For over a century, GNYADA has committed to ensuring the success and profitability of its members with services that refine and enhance dealers’ operations. 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 members:

Place your order for 2021 New York State vehicle inspection stickers NOW to ensure that your dealership has a sufficient supply of them by January 1st. Dealers have two options for ordering inspection stickers: Option 1: Order through DMV’s website. If you order online, you will need the following: n the dealership facility number and ZIP code n the type of stickers you need n an email address to receive your confirmation Option 2: Complete the online order form, which can be printed for mailing. Regular and express mailing instructions are included on the order form. Calling the Vehicle Safety automated response system at 518.474.2398 and following the instructions. This service is available 24 hours a day, seven days a week. You must provide your facility number to use this service. Looking it up online at: process.dmv.ny.gov/safirelook up/ Checking the status online requires you to provide your facility number, facility ZIP code, and email address. If you have any questions about ordering inspection stickers, please call DMV-DIRECT at 718.747.0400. n Check the status of your order by: n

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

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 2019

Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • November 2019 12