GNYADA October 2018 Newsletter

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.

Pop Quiz:

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.

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The original lease disclosed the

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