GNYADA October 2018 Newsletter

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 mconway@gnyada.com or 718.746.8100. n n

Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • October 2018 11