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
OCTOBER 2018 Volume 28, Issue 3
GNYADA’s 108th Annual Meeting
DMV Postpones VERIFI Implementation at GNYADA’s Request page 2
FTC Finds Dealers Failed to Post Compliant Buyers Guides page 3 GNYADA Hires Economist to Support Doc Fee Increase page 4
Lee Certilman starts his second term as GNYADA Chairman
Members of the Greater New York Automobile Dealers Association held their annual meeting in June at the Old Westbury Golf and Country Club. This year’s meeting celebrated the state of the Association and its accomplishments over the past year and provided a platform for discussing strate- gies for the year ahead. In addition, a func- tion of the annual meeting is to swear in the Chairman, Executive Committee, and a new slate of Directors. Lee Certilman, dealer principal of Nardy Honda in Smithtown, Long Island, was sworn in for his second term as Chairman along with his Executive Committee which includes: VICE CHAIRS: Jane Millman, Riverhead Chrysler Dodge Jeep Ram; Gary Brown, Brown’s Jeep Chrysler Dodge; and Melanie Spare-Oswalt, Sayville Ford. SECRETARY: Oliver Brodlieb, East Hills Chrysler Jeep Dodge. TREASURER: Jack Weidinger, Weidinger Automotive Group. IMMEDIATE PAST CHAIRMAN: Bob Vail, Vail Buick GMC. PRESIDENT: Mark Schienberg.
In his Chairman’s report, Certilman refer- enced the important role the Association plays in the lives of the 35,000 people that are employed in dealerships in the Greater New York area. “GNYADA plays a pivotal role in offering key educational programs for members and through its ongoing advocacy with lawmak- ers in Albany and in City Hall to promote positive legislation and defend against leg- islation that would negatively affect deal- ers,” said Certilman. “Over the past 12 months we’ve successful- ly stopped Tesla from expanding its direct sales network which cuts out franchised new car dealers, we’re close to passing a Used Car Recall Reimbursement Bill that requires a 1.75% per month reimbursement to dealers that have stop-drive, stop-sale open recall vehicles in inventory, and we’re working with the NYS Department of Motor Vehicles on regulations to register brokers and leasing companies, which were unfairly competing with licensed franchised dealers,” Certilman added.
NADA Director’s Column page 5
Primary Results page 6
Best Practices for Hiring and Retention page 9
Tips for Spotting Flood Damaged Vehicles 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
Greater New York Automobile Dealers Association • www.gnyada.com
2 DMV Announces New Dates to Start Electronic MV-50 Program Phased VERIFI Launch Beginning October 9
The Department of Motor Vehicles has notified dealers that it will be implementing a phased roll-out of its new electronic MV-50 processing program, VERIFI, beginning on October 9, 2018. GNYADA informed DMV that it was concerned that the program, scheduled to start mid-September, was not ready to be implemented and a delay was needed for Vanguard (DMV’s VERIFI vendor) and DMV to resolve issues. DMV acknowledged GNYADA’s concerns and notified dealers that the implementation will now take place in three phases. 1. The first phase requires all dealers to be registered for VERIFI and to complete a Facility Participation Agreement (FPA) by October 9, 2018.
After November 19, 2018, all dealers must use VERIFI to process sales. DMV decided to use this phased approach, rather than implementing VERIFI in mid-September as it had planned, after learning from GNYADA about dealers’ concerns. DMV conducted additional beta testing with GNYADA members to address these problems. The Association's relationship with DMV and the valuable input of GNYADA members allow the Association to alert DMV about ongoing and new dealer issues. All GNYADA members should ensure that they are registered for VERIFI. If you are not registered and need assistance, contact Kelsey at the Association ( email@example.com or 718.746.5900). Croton Auto Park’s value to the community is evidenced by the dealership’s outstanding customer loyalty. 80% of the dealership’s customers are either repeat customers or referrals. In fact, Mr. Giordano is proud to be providing cars to the next generation of parents whose own parents were customers of the dealership! The Association also congratulates two other dealerships recognized as the Best of Westchester, 2018 by Westchester Magazine: Pepe Auto Group, Best Luxury Dealership, and Mohegan Lake Motors, Readers’ Pick Auto Dealership.
2. Phase two begins on October 9, 2018. Vanguard will upload the dealer’s inventory of paper MV-50s and license plates into VERIFI. Dealers will have to account, in VERIFI, for all paper MV-50s and license plates used. 3. Phase three is between October 9, 2018 and November 19, 2018. During this phase, dealers must: n n Enter vehicles into the VERIFI book of registry; Account in VERIFI for all paper MV-50s and license plates used; Use VERIFI to order paper MV- 50s. During phase 3, if a dealer does not meet these requirements, they will not be able to order paper MV-50s. n n Westchester Magazine’s 6th Annual Small Business Awards. Croton Auto Park is a long-term supporter of the Croton Cub Scouts Pack 28 and holds two Pinewood Derby events yearly. The dealership has also raised money for Support Connection, which offers breast and ovarian cancer support services, and The Keon Center, for the developmentally disabled in Westchester. “Being a good community partner and forging good relationships has been our standard and what we owe our success to,” says Giordano. n
3 Croton-on-Hudson Dealer Awarded For Outstanding Philanthropy
Congratulations to former Chairman and current Director Lou Giordano on the recognition of his dealership, Croton Auto Park, as an Outstanding Philanthropic Business by
2 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • October 2018
FTC Finds Dealers Failed to Post Compliant Buyers Guides on Used Cars
The FTC conducted a multi-state audit, including metro New York, of used car dealers and new car dealers that sell used cars to assess compliance with the FTC Used Car Rule, which requires dealers to place a Used Car Buyers Guide on every used car offered for sale.
According to the FTC, many dealers were found not to have posted Buyers Guides at all while some failed to post the new amended version. Dealers who do not display the revised Buyers Guide on all used vehicles could face penalties of up to $41,484 per violation.
Dealers can purchase FTC-compliant USED CAR BUYERS GUIDES, in both English and Spanish, from GNYADA: ENGLISH: $27.50 for 200 guides SPANISH: $15.00 for 100 guides To order, call GNYADA at 718.746.5900.
5 Dealers Breathe Life into the Community
Assemblyman Raia noted on his Facebook page, “I was happy to present a proclamation to the Greater New York Automobile Dealers Association (GNYADA) for donating a brand-new CPR training mannequin to the Commack Volunteer Ambulance Corps at Smithtown Toyota. The new mannequin will allow members of the Ambulance Corps to train and educate residents throughout the community on how to properly perform CPR, which will undoubtedly help save lives. A big thanks to the members of the Commack Volunteer Ambulance Corps and the GNYADA for all they do for our community, and I look forward to building upon this partnership throughout the future!” Manikins are earmarked for future donations by Classic Audi, Paragon Honda, and Pepe Cadillac. If you are interested in getting involved in this
for the first donation. Senator Carl Marcellino and Assemblyman Andrew Raia attended Smithtown Toyota’s donation to the Volunteer Ambulance Corp. Senator Flanagan, in his press release about the donation said, “It was my pleasure to join with the Greater New York Automobile Dealers Association (GNYADA) and Smithtown Kia as they donated CPR (cardiopulmonary resuscitation) training manikins to the Nissequogue Fire Department. This donation will provide the NFD with an enhanced ability to train both their members and the residents they serve with the skills needed to render assistance to those in life threatening situations.”
GNYADA dealers continue to donate Resusci-Anne life-size manikins (cardio-pulmonary resuscitation training equipment) to local hospitals, YMCAs, volunteer EMTs, and fire departments in the metro NY region. These manikins are used to teach CPR skills to first responders and local residents. GNYADA, which facilitates the donations, has been involved in CPR donations for many years. The latest donations took place on Long Island on August 2. The recipients of the equipment were the Nissequogue Volunteer Fire Department and the Commack Volunteer Ambulance Corp. New York State Senator John Flanagan joined Steve Cannata, dealer principal of Smithtown Kia
program, please contact Jennifer@gnyada.com .
Greater New York Automobile Dealers Association • www.gnyada.com
The Newsletter • October 2018
6 GNYADA Hires Economist to Support Doc Fee Increase
Governor’s Office, New York State increased the Doc Fee to only $75. New York’s Doc Fee remains one of the lowest in the country and is significantly lower than that of bordering states, which significantly disadvantages metro New York dealers. Dealers in bordering states advertise vehicles at lower prices, then charge hundreds of dollars in a Doc Fee to make up the amount, meaning that a customer’s “out-the- door” price may be higher than it would be for the same car in New York.
The time and cost study will look at a wide range of factors, including the amount of time various dealership employees spend processing registration paperwork, in terms of the cost of those hours worked, as well as any direct and indirect costs associated with this part of business, such as supplies and facilities. GNYADA completed a time assessment study in 2008 demonstrating that the actual cost for dealers to perform the necessary title and registration work is $236. Despite this documented support demonstrating actual dealership costs, which was presented to DMV and
GNYADA has commissioned a time assessment study of the cost for dealers to perform registration and title transactions in New York State. The Association has hired a well- respected economist to conduct this analysis as part of the Association's efforts to convince the Governor of the need to change the Doc Fee to be commensurate with actual dealer cost. Earlier this year, Governor Cuomo indicated that he understands our position that the existing fee cap, which hasn’t been adjusted in 10 years, needs to be reviewed and that his administration will consider increasing the $75 Doc Fee.
7 What’s the Proper Name to Go on Your MV-50?
your registered name including your dba(s) on the MSO, for example, ABC Fiat dba ABC Motors. This is also true if you have several stores in close proximity and tend to share inventory. If the MSO is made out to one location but the vehicle is being delivered by a different one, you must complete a dealer swap and fill out the MV-50 with the information about the dealership
delivering the vehicle. This practice ensures proper continuity of ownership on all documents.
A multi-line dealership may have separate MSOs for each manufacturer – ABC Fiat, ABC Mercedes Benz, ABC Ram – but be registered with DMV as ABC Motors. Which of these names goes on the MV-50? When completing the Selling Dealer section, you should be listing the registered name, e.g., this dealer would have to list ABC Motors. This means that the manufacturer must list
If you have questions or would like to discuss any of these options, contact DMV-DIRECT at 718.747.0400.
When a Lease Buyout Doc Fee is Permissible 8
al right to purchase the vehicle for the agreed upon price. If the lessee pur- chases the vehicle, charging a doc fee could give rise to an allegation that the dealer violated financial regula- tions or breached a contract unless:
Most leases allow the lessee to pur- chase the leased vehicle for a stated, fixed price if they choose at the end of the lease term or based on a formu- la if they choose to purchase it before the lease ends. Either way, the lessee has a contractu-
amount of the doc fee to be charged at the time of the buyout OR The sum of the doc fee and the price of the car (excluding fees and add on products) is equal to the buyout price.
The original lease disclosed the
4 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • October 2018
NADA Director’s Column Dealers from Around the Country Attend the NADA Washington Conference by Bob Vail, Vail Buick GMC, NADA Director Metro New York
vehicle leases) and dealers who offer business credit where a reasonably foreseeable risk of identity theft exists to maintain a written Identity Theft Prevention Program that (i) identifies relevant red flags that indicate the possible existence of identity theft, (ii) contains reasonable procedures to detect and respond to those red flags, and (iii) is updated periodically to reflect new identity theft risks. After the first alert, a GNYADA member contacted the Association with concerns about a transaction similar to the ones described in the alert. GNYADA contact- ed Sgt. Blair, who spoke to the dealer directly and looked into the transaction, which turned out to be legitimate. Sgt. Blair was happy to help and encour- ages dealers not to hesitate to reach out if any transaction seems suspicious. are currently facing. The legislators were familiar with GNYADA’s reputation and the contributions dealers make to their communities. We gave each of them copies of the latest Economic Impact report, information about the educational programs offered at the CAET, and offered to provide any additional information they required. GNYADA would like to thank our Board Members who came to Washington to attend several NADA legislative briefings and spent hours on Capitol Hill meeting with Congressional representatives.
This is an elaborate scheme that can be stopped if dealerships conduct a thorough examination of online loan applications and related paperwork and institute a waiting period before shipping the vehicle. In every incident, there have been several red flags that the dealership should have caught prior to shipping the vehicle. If you have questions or concerns, contact: Sgt. Keith A. Blair, Commanding Officer, Chicago Major Auto Theft, Investigative Unit, Central Investigations Division - Unit #606, Chicago Police Department, 3151 W. Harrison St., Chicago, IL 60612 or firstname.lastname@example.org . NADA Note: The Federal Trade Commission’s Red Flags Rule requires dealers who offer or maintain consumer credit (including retail installment sale contracts and President Mark Schienberg; Board Members Brian Miller, Jack Weidinger, Oliver Brodlieb, Mark Lacher, Jordan Daiagi-Harary, Lou Giordano; and NextGen Committee member Greg Vail. Our schedule included meetings with Senate Democratic Leader Charles Schumer; Representatives Lee Zeldin, Grace Meng, Tom Suozzi, Adriano Espillat, and Dan Donovan; and staff for Representatives Kathleen Rice and Peter King. Dealers shared their experience conducting business in their respective regions and discussed with the legislators the issues they
Earlier this summer, the Association notified members about an NADA alert regarding vehicles being fraudulently purchased online and shipped to the Chicagoland area. NADA has issued a second alert, at the request of the Chicago Police Department, that this scheme is ongoing. Criminals will select a car, usually valued at $50,000 or more, via internet search. They will fill out a credit application and paperwork online or send them via FedEx after they are sent to an address in the Chicago area. The offenders create a phony email account in the victim's name as well as a fake driver’s license with the victim’s information; they use Google Voice or other applications with untraceable phone numbers. The offenders often seek to arrange their own shipping. The annual NADAWashington Conference gives franchised new car dealers and association executives from around the country the opportunity to meet with their Congressional representatives and discuss pressing national issues. This year’s key issues include the President's proposed tariffs, the restriction on selling used cars with open recalls, and ensuring legislative regulating self-driving cars does not infringe on state franchise laws. On behalf of GNYADA, I was joined at the conference by GNYADA Chairman Lee Certilman;
9 Chicago-Area Vehicle Fraud Scheme Continues
Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • October 2018 5
Primary Results Headline 10
and participated in the Association’s New York Cares Coat Drive drop-off. SENATOR DILAN LOSES TO JULIE SALAZAR Julia Salazar, a Democratic Socialist who caught national attention over her disputed background, defeated Senator Martin Dilan (D-18, North Brooklyn). This race was of interest to GNYADA because Dilan was in line to be Chair of the Senate Transportation Committee, should the Democrats gain control of the cham- ber next Session.
ELECTION NIGHT SURPRISES LEAVE CONTROL OF STATE SENATE UNCERTAIN Republicans have been able to main- tain control of the Senate this year, despite having a minority of mem- bers, through a power sharing agree- ment with Simcha Felder, a Brooklyn Democrat who caucuses with the Republicans. Still, with Felder win- ning his primary and retaining control of his Senate seat there are no guaran- tees who he will caucus with, control of the chamber remains in limbo until November. On paper, Democrats have a 1 seat majority, with 32 members to the Republicans’ 31. Regardless of the outcome of the November elections, GNYADA has always maintained strong relation- ships with both Republicans and Democrats to help ensure dealers’ interests are well represented.
NYC PUBLIC ADVOCATE LETITIA “TISH” JAMES SECURES HISTORIC AG NOMINATION James made history as the first woman of color Democratic nominee for Attorney General. If elected as the top law enforcement official in New York, she will lead an office that oversees a wide range of dealership issues, regulations, and legislation. GNYADA has a developed relation- ship with James, who has toured the Center for Automotive Education and Training, attended the GNYADA’s New York Automotive Competition,
11 Automakers Ask CARB States to Boost Consumer Incentives for Zero Emission Vehicles The Alliance of Automobile
The Association has been raising these issues with state legislators and seeking additional financial incentives for several years, understanding that the aggressive CARB mandates would be nearly impossible to reach without such incentives. GNYADA has successfully worked with the New York State Energy Research Development Authority (NYSERDA) to develop incentive programs that benefit consumers and dealers. Additional state and federal incentives are needed to meet the aggressive
mandates. It’s great to see the automakers make a vocal push for such incentives but they must also bear some responsibility. The mandates, as written, allow man- ufacturers to dump ZEVs on dealers’ lots because they must only “deliver vehicles for sale.” The CARB man- date should be changed to deny man- ufacturers ZEV credits until a vehicle has been sold, leased, or placed in service. This would encourage manu- facturers to price and equip ZEVs to generate consumer enthusiasm.
Manufacturers, which represents 13 car manufacturers, recently sent let- ters to the governors of the nine states following the California Air Resources Board (CARB) zero-emis- sion vehicle (ZEV) mandates, asking them to boost consumer incentives. Specifically, the Alliance asked for increased charging station access, financial incentives, access to HOV lanes and parking, and additional ZEV purchases by state-owned fleets.
6 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • October 2018
12 Dealerships Cannot Condition Warranty Coverage on Using Specific Parts or Service
not sold or licensed by [company name]. This warranty does not apply if this product has had the warranty seal on the [product] altered, defaced, or removed.
The Federal Trade Commission (FTC) sent warning letters to six companies, including some that market and sell cars, regarding the companies’ statements that con- sumers must use specific parts or service providers to maintain warranty coverage. The Magnuson-Moss Warranty Act, which governs consumer product warranties, prohibits these statements
unless the warrantors provide parts or service for free or have an FTC waiver. Examples of prohibited lan- guage include: The use of [company name] parts is required to keep your manufac- n
turer’s warranties and any extended warranties intact.
Dealers should review their warranties to ensure that there is no prohibited language and call GNYADA with any questions.
This warranty shall not apply if this product is used with products
Be Prepared for Small Claims Cases – a Fact of Life for Dealerships
Nearly every town, village, county, and borough has a small claims court where plaintiffs can seek money damages – $3,000 in towns and villages, $5,000 in cities and counties – but nothing else. A small claims case suit will start with a letter to the dealer from the court briefly describing the claim and possibly the amount sought. Receiving a Claim Contact your attorney as soon as you receive such a letter. They may not need to do anything yet but can provide input and guidance. Then review and investigate the complaint – look for documents, interview employees, etc. You may also want to contact the plaintiff (your customer) to see if the matter can be resolved outside of court. If you do receive a letter, start collecting supporting documents – photos, agreements, contracts, letters, receipts, checks, invoices, work/repair orders – and make three copies (for yourself, the judge, and the plaintiff). Make sure you are very familiar with the documents. Many times, the party
who comes across as more knowledgeable and convincing is victorious! What to Expect in Court Even though corporations should be represented by counsel, you may be allowed to proceed without if you are an owner, manager, or other witness with written authorization to represent the business. Be on time for the calendar call. When your name is called, loudly say “Defendant ready” if you are seeking arbitration, “Defendant ready by the Court” if you are seeking a judge, or “Defendant application” if you need to adjourn to another date. Each side gets one adjournment, any more require court permission. If only the defendant appears, the case is dismissed. If only the plaintiff appears, the case is decided through an inquest (a one-sided trial) and a judgment is usually entered for the full amount against the defendant. If both parties are present, the plaintiff will testify first – they have the burden of proof. Take notes and write questions to ask later to
contradict their claims since you will have an opportunity to question them. You will testify next and have the opportunity to present documents and witnesses to support your defenses and objections. The judge may or may not allow brief closing statements. The Verdict In most courts, the decision is mailed and arrives 3-5 business days after the hearing. If the defendant wins, the matter is dismissed. If the defendant loses, then a judgment is entered for the amount awarded. If you do not appeal, the judgment must be paid within 30 days. Before appealing, talk to your lawyer since the cost of appealing can exceed the cost of the judgment. This article was prepared by GNYADA allied member Stevan H. LaBonte of the LaBonte Law Group.
Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • October 2018 7
14 AG Imposes Hefty Fines for Deceptive Practices The New York Attorney General’s Office recently announced a settle- ment with a local dealer, requiring it to pay over $423,000 in restitution, costs and penalties to the State and to change its business practices. Consumers alleged that, after negoti- ating deals in their primary lan- a consumer signs the English-lan- guage documents. Two other local dealerships were subject to a court order stopping be risky. To avoid legal problems, you need to be sure you make proper disclosures, ensure consumers under- stand the terms of the deal and that you have made proper translations. Document the consumer acknowl- edged understanding all the terms of the sale.
them from certain business practices and requiring payment of restitution, damages, and civil penalties. These dealers were alleged to have decep- tively charged as many as 1,100 cus- tomers for unwanted add-ons, which were sometimes not even added to the car, that increased the sale by anywhere from $129 - $3,998. Takeaways for Dealers Dealers on a regular basis assist con- sumer whose primary language is not English by conducting the sales transaction in the customer's pre- ferred language, but this is a hot topic among enforcement agencies and good intentions can sometimes 1964 states that employers with 15 or more employees “must reasonably accommodate employees’ sincerely held religious practices unless doing so would impose an undue hardship on the employer.” A safety risk can be considered an undue hardship. For example, if an employee’s reli- gion requires a head covering, that employee would be exempt from a dealership policy that prohibits head- wear, unless it’s a safety risk (e.g., that employee is a technician who works with machinery on which the head covering could get caught). The best way to prevent dress code issues is: Let candidates know require- ments and expectations upfront; Explain the policy in the inter- n n
guages, which were mainly Chinese dialects, the dealer used English-only contracts that significantly changed the deal’s terms to include add-ons that consumers had not requested nor agreed to. Consumers also allege that dealership staff failed to complete refinancing agreements and changed loan terms without consent. Importantly, this dealership is now required to translate all sales and loan documents into every language in which it conducts business before Picture this: it’s your experienced new hire’s first day. You expect them to be a sales superstar, but in they walk with facial piercings and visible tattoos! None of these were visible during the interview, so what are your options now? State and federal regulations permit dress code and appearance policies that regulate clothing and footwear, ban certain hair colors or styles, and forbid or limit tattoos and piercings. Dealerships may even have different standards for different departments. For example, employees who do not deal with clients may be allowed to have visible tattoos while salespeople must have them covered.
If your dealership advertises in for- eign languages, specific signs and disclosures in those languages may be required - NYC has a number of such requirements. If you have a sign in your dealership promoting the for- eign language abilities of your sales people, be prepared to provide docu- ments in those languages. Additionally, dealers should never include add-ons in a sale unless the customer has specifically agreed to the purchase. view or even in the job posting; Include the policy in the Employee Handbook or distribute the written policy separately; Have employees sign an acknowledgement of receipt; Train management to handle requests for accommodation and ensure that the policy is consis- tently enforced. What do you do about the new hire? As long as none of the body modifi- cations has religious significance, you can require them to remove piercings/cover tattoos and, if they refuse, terminate them for failing to comply with the dealership’s policy. SAVE THE DATE: GNYADA’s Employee Relations Plan is holding its Annual Labor Law Seminar on October 18th or 24th. n n n
15 Dealership Dress Codes
Additional Considerations Title VII of the Civil Rights Act of
Greater New York Automobile Dealers Association • www.gnyada.com
The Newsletter • October 2018
16 At a recent GNYADA NextGen Committee meeting, Shari Doran, the Director of Learning and Professional Develop- ment from the Automotive Management Academy, led a discussion about dealership hiring issues, attracting candidates, onboarding, and retaining employees. One of Ms. Doran’s recommendations was to “onboard”, rather than just train, new employees. Onboarding is the process that teaches employees the dealership’s policies, procedures, culture, expectations, and their responsibilities. The following table outlines the differences between onboarding and orientation: Best Practices for Hiring and Retention
Is typically a 1-day event Focuses on organization’s structure, mission and policies Includes a review of the Employee handbook Involves completing of payroll and benefits paperwork Addresses other administrative issues
Extends well beyond the 1st few days
Is a systematic process
Can last from 3 to 18 months depending on the position Cultivates long term relationships and access to information Promotes better understanding of the culture, mission and goals Fosters a feeling of belonging and affirmation of making a right choice Reduces the time it takes to “hit the ground running”
Every dealership should have an Onboarding Checklist, a “to do” list of critical elements, resources, and learning sessions that should be completed within the first day, first week, and first 30, 60 and 90 days.
n Provide overview of company (e.g., organizational structure, lines of business, major customers, etc.) and protocol (e.g., dress code, assigned schedule, benefits, and so on). Week One n Meet with the new hire to review their job description and clearly outline their responsibilities and performance objectives. n Schedule weekly check-in emails with a short, bulleted list of accomplishments, areas to improve, and goals for the week ahead. n Have a team member shadow the new hire to give constructive feedback. Quarterly for the remainder of the first year n Review progress with the new hire’s direct supervisor. n Meet with the new hire to review progress and discuss their experience. n Conduct professional development training.
Pre-Arrival n Send a new hire announcement to other team members. n Have the supervisor call the new employee to introduce themselves. n Confirm new hire work space is clean and stocked; email, phone, voicemail, and parking/security pass- es are working; order business cards and name tags. Day One n Make sure the receptionist is prepared to welcome the new hire. n Confirm direct supervisor has the day blocked to complete orientation. n Provide welcome packet with handbook and any forms to be completed. Review handbook, training schedule, pay plan, etc., and ensure all necessary documents are signed. n Tour the dealership and make introductions in all departments.
GNYADA thanks Shari Doran, Director of Learning & Professional Development at Automotive Management Academy, for her contributions to this article.
Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • October 2018 9
17 UPDATED Dealer Plate Information
In response to reports of police issuing tickets for alleged improper use of dealer plates, GNYADA requested that DMV update its Dealer Plate Use placard. From the placard, GNYADA created a window cling for members. See the enclosed flyer to order! If someone is properly driving a dealership vehicle with a dealer plate and pulled over, they can use the decal to explain why being issued a ticket is inappropriate. These reusable stickers can be placed where the vehicle’s registration would normally be. In the event someone is ticketed anyway, GNYADA also received an updated Memorandum from the DMV Commissioner on proper dealer plate use. This memo and the documents listed below have helped dealers successfully fight tickets. Contact GNYADA for a copy of this letter, relevant articles, and a court case ruling that “personal use of a
vehicle with dealer’s plates which is held for sale or demonstration does not violate section 415 of the Vehicle and Traffic Law.”
$ 1 40K Raised for Automotive Education GNYADA’s 13th A nnual C harity G olf O uting was another huge success
The day concluded with more than $50,000 in prizes won by the day’s raffle winners. Prizes included Apple watches and iPads, GoPros, large screen TV’s, scooters, and the main prize, a Chronomat Breitling watch. GNYADA holds the Annual Charity Golf Outing to raise scholarship money for students who wish to pur- sue careers in our industry. The funds
are distributed among highly deserv- ing automotive technology students through our Center for Automotive Education and Training. GNYADA thanks everyone who joined us for this important day, which has been a testament to the generosity and community investment of our devoted sponsors and members for more than a decade now.
The Golf Outing is a yearly sellout, bringing together all sectors of the industry for a day of camaraderie, friendly competition, gourmet dining, and exciting prizes. GNYADA was thrilled to host 390 attendees at the Old Westbury Golf & Country Club on Monday, June 18th. Everyone enjoyed a day of perfect weather, fun golf, and great food. And best of all, we raised $140,000 in support of automotive education in metro New York. After golf, guests got to network, unwind, and enjoy each other’s com- pany on the beautiful outdoor patio, while savoring great food and drinks.
Greater New York Automobile Dealers Association • www.gnyada.com
The Newsletter • October 2018
Tips for Spotting Flood-Damaged Vehicles 19
Now that hurricane season is underway, dealers should watch for flood-damaged cars. Many vehicles exposed to floods eventually return to market, as owners of salvage cars attempt to resell them as undamaged. In the event that some of these vehicles make their way to our region, GNYADA recommends the following tips for detecting flood damage: Sit in the car with the doors closed and see if you notice a moldy smell. Check carpeting or upholstery for water stains in unusual places. Be suspicious of an older car with new carpeting. Check areas surrounding light fixtures for moisture. Note if you find rust or dirt in unusual places. Scan both the interior and exterior for corrosion or waterlines. Check engine compartment crevices for dirt or mud. Perform a New York safety inspection – it could reveal corroded wires. 2. 3. 4. 5. 6. 7. 8. 9. Carefully examine the electrical system. 10. Check the undercarriage for excessive rust. 1.
Natural Disaster Damage Disclosure Law New York State requires presale disclosures, whenever a vehicle being sold has been damaged by a natural disas- ter . 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.) New York Damage Disclosure Law If a new vehicle requires repairs for physical damage (with a retail value in excess of 5% of the MSRP), 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 they can cancel the sale and receive a full refund. Carfax.com can help determine the history of a particular vehi- cle before 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 insur- ance companies, salvage yards and state and local authorities.
20 Long-Term Care Insurance Coverage
Sometime before the year 2020, the global population of people 65 and older will outnumber children under 5 for the first time – the need for long-term care (LTC) is a reality no one can escape. The costs of LTC – health care, in home health care, assisted living facilities, or nursing homes – can be tremendous and many people worry about how they will be able to afford it. Here are four options for paying for long-term care costs. 1. Self-Fund using assets like cash, stocks, bonds, mutual funds, invest- ment accounts.
2. Traditional LTC Insurance – there are a number of options depending on coverage amount, length of benefits, waiting periods etc. n Like health insurance premiums, premiums paid for traditional LTC coverage may entitle busi- ness owners and spouses to tax deductions. Premiums may be funded with HSA dollars. NY tax law allows resident tax- payers a credit equal to 20% of the premiums paid during a tax- able year. n Benefits may be tax free. n n
3. Hybrid Solutions
n Life Insurance with LTC Riders, which is an efficient use of premium dollars. Linked Products, this is LTC insurance with a return of premium. Annuities with LTC Riders, which can provide LTC benefits above the annuity value. 4. Medicaid – Government paid plan with eligibility requirements. To learn more about your options for long-term care insurance, please contact Michael W. Conway at email@example.com or 718.746.8100. n n
Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • October 2018 11
GNYADA Welcomes Lilia Yudina
Make Full Use of Your GNYADA Benefits
For over a century, GNYADA has committed to ensuring the success and prof- itability of its members with services that refine and enhance dealers’ opera- tions. 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 mem- bers: 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 firstname.lastname@example.org . 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.
The Greater New York Automobile Dealers Association is pleased to announce Lilia Yudina has joined the Association as its Marketing and Communications Manager. Yudina comes to the Association from the FOX News Channel, where for more than five years she distinguished herself as a passionate, energetic, and personable journalist. At GNYADA, Yudina will manage the Association’s marketing and communications including, developing news stories that will promote the valuable contributions franchised new car dealers make to their communities, increasing the Association’s digital and social media presence, and streamlining how the Association gets information to its members. Yudina graduated magna cum laude from Lehman College where she earned a Bachelor of Arts in Journalism. She was recently nominated for an Emmy in the Societal Concerns Program Feature/Segment category. Yudina speaks six languages including English, Russian, Spanish, French, German, and Latin.
PROGRAM OND A AD GNY
Greater New York Automobile Dealers Association 18-10 Whitestone Expressway l Whitestone, NY 11357
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.
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