Pub 5 2023 Issue 1

NADA UPDATE BY DAVID HAMMER NADA DIRECTOR The NADA has recently launched a new section on its website designed to assist dealerships and customers with finding and understanding alternative fuel vehicles and refueling infrastructure incentives. The website, www.nada.org/ev-incentives, also features a recording of the Dec. 27, 2022, webinar, “What You Should Know About the New Federal EV Tax Credits.” The webinar reviews the vehicles and customers eligible for tax credits and how to best obtain the information that must be disclosed at the point of sale. Also, how the credits likely will change in the future, and how to get additional information. Many of the new rulings have gone into effect as of the first of the year, so if you have not already, I recommend checking out the resources at your disposal. On the topic of EVs, another noteworthy update is the ongoing dialogue between Ford and its dealer network regarding EV requirements. In short, the original proposition includes dealers investing up to $1.2 million in preparation to sell and service electric vehicles. This is not problematic; many dealers expect an operational cost associated with electric vehicles. What is problematic is that Ford plans to create tiers of dealerships: Model e Certified Elite, which could sell any Ford vehicle, and Model e Certified, which would be limited to just 25 build-to-order retail sales per year. At the federal level, NADA is continually discussing with Ford to arrive at some sort of middle ground and they feel progress is being made. State trade associations are working to address portions of the requirements that challenge franchise laws, specifically 24/7 access to public fast chargers and electric vehicle allocation. Another issue that the NADA and state Automotive Trade Association Executives (ATAEs) are following closely is the newly introduced rule by the FTC that would complicate the vehicle purchasing process. If approved, the new regulations would increase the complexity of the car-buying process in a way that would cost consumers extra time, create substantially more paperwork required at the dealership, and introduce new administrative burdens for small businesses that would increase the cost of cars and trucks. NADA has encouraged the entire dealer grassroots network to sign a letter, introduced by Reps. Kelly Armstrong (R-ND) and A. Donald McEachin (D-VA), urging the FTC to withdraw its proposed ruling and instead issue an Advanced Notice of Proposed Rulemaking. Reps. Annie Kuster and Christopher Pappas have already signed onto the letter. Lastly, by the time you read this, you have likely returned from the NADA Show 2023 in Dallas, Texas. Every year, dealers are invited for continuing their education and listening to worldclass speakers. It is a great time to network and explore a marketplace of new products and technology. They also name the winner of the TIME Dealer of the Year award, which honors new-car dealers in America who exhibit exceptional performance in their dealerships and perform distinguished community service. This year, New Hampshire’s nominee is Mark Tulley, Dealer Principal, Tulley Automotive, and President of the New Hampshire Automotive Education Foundation. Scan the QR code to read more on Mark’s nomination. https://www.ally.com/go/allydealerheroes/ nominees/mark-tulley/ If you have questions on any of the above, don’t hesitate to contact me directly. I am happy to assist. Happy New Year! At the federal level, NADA is continually discussing with Ford to arrive at some sort of middle ground and they feel progress is being made. 6

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