2026 Pub. 6 Issue 1

2026 Pub. 6 Issue 1 AUTO DEALER EPA Emissions Standards in Flux What Dealers Need to Know for 2026 and Beyond OFFICIAL PUBLICATION

For 20+ years, Higginbotham has helped Kentucky dealers protect profits, reduce risk, and support KADA. Higginbotham Dealer Services helps Dealer Principals: • Protect balance sheet and blue sky value • Reduce total cost of risk across all rooftops • Improve F&I and ancillary income performance Specialized solutions for auto dealers: • ADMIC Workers’ Comp: double dividend structure • Property & Casualty: garage, open lot, EPLI, cyber • Loss Control & Data Analytics: cost drivers and safety • Contract Review: indemnity and insurance requests • Employee Benefits: compliance and administration • High Net Worth Life Insurance • Finance & Insurance: training and income development strategies Zack McMillan 502-576-3917 zmcmillan@higginbotham.com | higginbotham.com For more information, please contact: Richard Goss 502-489-6182 rgoss@higginbotham.com

Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Tony Garcia, anton.r.garcia@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA. Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Tony Garcia, anton.r.garcia@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.

©2026 The Kentucky Automobile Dealers Association (KADA) | MBR Connect DBA The newsLINK Group LLC. All rights reserved. Kentucky Auto Dealer is published four times per year by The newsLINK Group LLC for KADA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of KADA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Kentucky Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of KADA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. CONTENTS 6 PRESIDENT’S MESSAGE Renewal and Opportunity By Jason Wilson, President, KADA 8 2026 Executive Committee 8 2026 KADA Staff 8 2026 KADA Board of Directors 10 KADA February Board Meeting & Legislative Reception 12 EPA Emissions Standards in Flux What Dealers Need to Know for 2026 and Beyond 14 National Automobile Dealers Association Show 2026 Brings Energy, Innovation and Celebration to Las Vegas 16 2026 KADA Family Convention 17 Kosair for Kids 18 What Is Bricking in Cyber Insurance? By Higginbotham 20 Kentucky Dealer University 2026 Curriculum 22 KADET Drive Our Industry Forward 24 2026 Is a Time for Action in Dealership Operations By Don Jacobs, President and Founder, Trydon 26 KADA Preferred Partner Programs 6 10 14 24 10 12 4 KENTUCKY AUTO DEALER

Renewal and Opportunity JASON WILSON PRESIDENT, KADA As spring arrives across the Commonwealth, it brings with it a sense of renewal, momentum and opportunity. For Kentucky’s franchised and independent auto dealers, this season likewise marks an important time to look ahead, following a cold and snowy winter that led to customer reluctance to come out and buy. Our industry remains strong because of the dedication, perseverance and professionalism of our dealer members and their teams. This year, one of our top priorities has been advancing meaningful legislative updates that reflect the realities of today’s automotive marketplace. The automotive industry has changed dramatically over the past decade, and our laws must evolve as well to ensure fairness, transparency and a level playing field for franchised dealers. A key focus of our legislative agenda has been modernizing Kentucky’s warranty reimbursement statutes. Dealers perform critical warranty and recall work on behalf of manufacturers, and it is essential that our technicians and service departments are fairly compensated for that work. Just as importantly, our legislative efforts reinforce the importance of the franchise system itself. The partnership between manufacturers and local dealers has served President’s Message 6 KENTUCKY AUTO DEALER

While our business continues to evolve with new technologies, changing consumer expectations, and an increasingly complex regulatory environment, Kentucky dealers always demonstrate the ability to adapt, innovate and lead. “ consumers well for generations by promoting competition, consumer protection and local accountability. Protecting and strengthening that system remains central to our mission. Advocacy is never a one-person effort. The successes we’ve achieved in Frankfort are the direct result of our engaged dealers who took the time to share their stories and perspectives with lawmakers. Thanks to all our members who called their elected leaders or participated in our legislative reception and Dealer Day at the Capitol. When dealers speak, policymakers listen — and that engagement makes a real difference. As we look ahead to the rest of the year, I am optimistic about the future. While our business continues to evolve with new technologies, changing consumer expectations, and an increasingly complex regulatory environment, Kentucky dealers always demonstrate the ability to adapt, innovate and lead. Thank you for your continued involvement and support. Together, we will keep working to ensure that Kentucky remains a great place to operate a dealership, serve customers and build strong communities. WWW.KYADA.COM 7

2026 Executive Committee 2026 KADA Staff Ed Hyde CHAIRMAN Legacy Automotive Network Bob Hook, III CHAIR ELECT Bob Hook Chevrolet Fred Tolsdorf VICE CHAIR Champion Chevrolet Buick GMC Travis Flaherty TREASURER Flaherty Chevrolet Rob Marshall PAST CHAIR Marshall Auto Group Nancy Sparks PAST CHAIR Kerry Automotive Group Kim Huffman PAST CHAIR Neil Huffman Auto Group Vickie Kain Fister NADA DIRECTOR Jack Kain Ford Jason Miller DIRECTOR-AT-LARGE Coad Toyota Paducah Alex Pogue NADA PAC DIRECTOR Pogue Automotive Group David Moore DEALER PHILANTHROPY DIRECTOR Moore Automotive District 1 Mike Reid Country Chevrolet Buick GMC Benton Kameron Huffman Neil Huffman Auto Group Frankfort Deborah Renshaw Parker Renshaw Auto Group Bowling Green District 2 Travis Flaherty Flaherty Chevrolet Brandenburg Alex Pogue Pogue Automotive Group Powderly Eddie Franklin, Jr. Don Franklin Family of Dealerships Glasgow District 3 Richard Swope Toyota of Louisville Louisville Miller Warren Mercedes-Benz of Louisville Louisville Adrian Miron BMW of Louisville Louisville District 4 Tom Gill Tom Gill Chevrolet Florence Tim Sparks Kerry Automotive Florence Mason Moore O'Brien Ford Shelbyville District 5 Justin Booth Mark Porter Ashland Ashland Trey Blakley Alton Blakley Family of Dealerships Somerset Todd Justice Hutch Chevrolet Buick GMC Paintsville District 6 Darrell Billings Tanner Chrysler Products Stanton Vickie Kain Fister Jack Kain Ford Versailles Jessica Gilbert Dan Cummins Auto Group Paris Jason Wilson PRESIDENT Sarah Bishop VICE PRESIDENT Melissa Peach CFO Penny Faulconer ADMINISTRATIVE SPECIALIST 2026 KADA Board of Directors 8 KENTUCKY AUTO DEALER

HIGHLY ATTENTIVE TO YOUR GOALS UNWAVERING REPRESENTATION UNPARALLELED SUPPORT STRAIGHT-FORWARD AGREEMENTS SUCCESS FEES ONLY WITH NO RETAINERS STRICT GUARDING OF CONFIDENTIALITY FAMILY-OWNED WITH FAMILY VALUES BROKERAGE SERVICES For a confidential consultation and a complimentary evaluation on your business, please contact us. California • Utah • Texas • Iowa • Illinois • Ohio • New Jersey • Alabama • Florida • North Carolina • Virginia • Alberta • Ontario Midwest Office East Mark Shackelford, Sr., Partner 330. 352. 5651 | mark@performancebrokerageservices.com Mark Shackelford, Jr., Partner 330. 634. 3825 | markjr@performancebrokerageservices.com 503 West Park Ave, Barberton, Ohio 44203 Corp: 949. 461. 1372 | performancebrokerageservices.com PIECE TO A PERFECT DEAL THE MISSING We are the trusted resource for helping dealers navigate the complex selling process, while preserving your legacy, protecting your confidentiality, and maximizing the value. Let us help you take the next step with confidence, knowing you have a partner committed to your best interests. Family-owned for over 30 years, our reputation is unmatched and built on a foundation of honesty, integrity, and ethical conduct. These core values run deep throughout our firm and are the driving force behind our continued success. We pledge to do it right, every time, one client at a time.

KADA February Board Meeting & Legislative Reception We had a great board meeting in February, during which we discussed important policy initiatives, followed by our annual legislative reception. Thanks to all who were able to attend these events — they were both a huge success! 10 KENTUCKY AUTO DEALER

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It should come as no surprise that the regulatory landscape for vehicle emissions has shifted dramatically in the last year. For franchised dealers, the challenge isn’t just understanding the rules — it’s preparing for uncertainty and potential policy reversals that could affect product mix, pricing and long-term investment decisions. We’ve got the latest news and what it means to you and your dealership. The Big Shift: Rescission of the Endangerment Finding On Feb. 12, 2026, the U.S. Environmental Protection Agency finalized a rule rescinding the 2009 Greenhouse Gas (GHG) Endangerment Finding and repealing all federal motor vehicle GHG emission standards issued under it. The EPA’s press release calls this the single largest deregulatory action in U.S. history and notes that it will save Americans over $1.3 trillion. • Without the endangerment finding, the EPA has no authority under Section 202(a) of the Clean Air Act to regulate GHG emissions from new motor vehicles. • All prior GHG standards for light-, medium- and heavy-duty on-highway vehicles have therefore been repealed. This action effectively dismantles the federal greenhouse gas framework that governed light-duty vehicles through model year 2026 and set the stage for stricter standards for 2027 and beyond. However, the EPA’s new rule is already facing strong political and legal opposition, and a coalition of health and environmental groups has already initiated litigation. For dealers, that means regulatory uncertainty is far from over. What Happens to the 2027-2032 Standards? At least for now, those standards are repealed at the federal level, as the EPA’s rescission of the endangerment finding limits the ability to enforce such standards. This effectively neutralizes the federal EV mandate as we knew it. While we anticipated a significant increase in EV and plug-in hybrid penetration under the 2027-2032 standards, those compliance-driven targets are no longer in effect. This means that manufacturers are likely to continue moving away from EV models, and we expect a growing emphasis on ICE and hybrid vehicle manufacturing. Dealers should expect continued EV offerings, though not at the escalating pace we saw in 2022-2024. Manufacturers still face global compliance requirements and state-level policies. Dealer Impacts: Areas to Watch Regulatory uncertainty is problematic for dealers and manufacturers alike. Manufacturers invest millions in EPA Emissions Standards in Flux What Dealers Need to Know for 2026 and Beyond 12 KENTUCKY AUTO DEALER

The Bottom Line For the first time in more than a decade, federal vehicle greenhouse gas standards have been repealed, fundamentally altering the compliance environment that automakers and dealers had been preparing for. Rather than simply returning to pre-standards norms, the industry must stay flexible on product mix. The EV revolution in still being driven my global markets, corporate strategy and state-level standards. Policy swings are far more likely than policy certainty in the near future. Dealers should plan as best they can for this volatility and remain as adaptable as they have proven to be for decades. creating compliant vehicles while balancing consumer demand. Dealers want to carry what consumers want to buy but struggle to maintain inventory that aligns with demand. 1. Inventory Mix Volatility: The outcome of litigation with the EPA, or a change in administration, could drastically impact ICE vs. EV allocations. 2. Used Vehicle Market: While the latest movements may stabilize the residual values of ICE vehicles in the near future, state-level standards could lead to deviations in the longer term. 3. F&I and Service Opportunities: Slower EV penetration into the market will sustain traditional parts and warranty revenue and could delay disruption to fixed ops. However, dealers that have made significant investments in EV service training and parts may see a delayed return on their investment. 4. Facility Investments: Dealers planning for EV charging stations, tools and training are left wondering to what extent they should continue their phased investments. It is advisable that they monitor the situation closely. 5. Political and Legal Uncertainty: 2026 could prove to be a transitional year. As dealers plan for 2027 and beyond, they should include contingency scenarios for varied emissions standards. Even if the federal standards remain repealed, state-level standards could impact all 50 states. Advocacy and engagement will remain critical as the litigation and policy arguments play out. For franchised dealers, the challenge isn’t just understanding the rules — it’s preparing for uncertainty and potential policy reversals that could affect product mix, pricing and long-term investment decisions. “ WWW.KYADA.COM 13

National Automobile Dealers Association Show 2026 Brings Energy, Innovation and Celebration to Las Vegas From Feb. 3-6, thousands of dealers, managers, manufacturers and industry partners gathered in Las Vegas for the 109th annual NADA Show, once again reaffirming its reputation as the automotive industry’s premier event of the year. Held at the Las Vegas Convention Center, NADA Show 2026 delivered four days of education, networking and cutting-edge technology, capped by high-profile main stage presentations and the industry’s most prestigious honors. Education, Innovation and Emerging Technology Education remained front and center throughout the week. Dealers participated in Live Stage sessions, Dealer Learning Labs and specialized centers focused on emerging trends, including EV solutions and AI-powered dealership tools. The expo floor featured more than 600 exhibitors showcasing solutions across sales, service, finance, marketing and operations. AI tools were a heavy focus, but exhibitors also showcased unified cloud platforms and digital retailing advancements aimed at improving efficiency and customer experience. Honoring Excellence: TIME Dealer of the Year The TIME Dealer of the Year program remains one of the highest honors in automotive retail, recognizing dealers for exceptional business performance and community service. 14 KENTUCKY AUTO DEALER

We celebrated Kentucky’s 2026 nominee, David Moore, who was honored as one of just 47 dealers nationwide recognized at the Show. David was an incredible representative of Kentucky dealers, and we are so proud of his many accomplishments. His nomination underscored the Commonwealth’s strong tradition of community-focused leadership. The TIME Dealer of the Year Brunch served as a reminder that beyond education and innovation, the NADA Show is about relationships — strengthening state associations, building camaraderie and recognizing those who lead both inside and outside their dealerships. Looking Ahead NADA Show 2026 attendees left Las Vegas energized by new ideas, renewed partnerships and a shared commitment to advancing the franchised dealer model. With momentum building toward future shows, the industry now turns its focus to applying what was learned and continuing to adapt in an evolving marketplace. WWW.KYADA.COM 15

Providing MORE JOY, in MORE WAYS, to the MOST KIDS. Are you participating in this life-changing partnership? In November 2024, the KADA Executive Board approved a partnership with Kosair for Kids to help children in need throughout Kentucky. As part of the partnership, KADA dealers across the commonwealth are encouraged to donate $1 to Kosair for Kids for each new and used car sold. The funds raised will fund pediatric healthcare, medical research, child advocacy, education, and social services so that all children may live life to the fullest. KADA and Kosair for Kids are making a difference together! Who we are: Kosair for Kids is the most comprehensive children’s nonprofit in Kentucky and southern Indiana. We are the safety net for our area’s children. What we believe: Every child should have access to the medical care they need. Our nonprofit partners should be the strongest of their kind. Every child should grow up in a safe environment. A joyful experience can change a child’s life. Contact Jason Wilson, Senior Vice President of Regional Development, Kosair for Kids at (502) 939-8563 (voice or text) or by email at jwilson@kosair.org.

Imagine discovering that a cyberattack has rendered your company’s servers, point-of-sale terminals and critical equipment permanently unusable — not stolen or physically damaged, but instead, inoperable and effectively useless. This scenario represents one of the most devastating, yet often overlooked, cyber threats facing businesses today: bricking attacks. Most business leaders understand how cyberattacks can disrupt operations or expose sensitive data. Fewer understand that some attacks can destroy hardware on a fundamental level by corrupting the underlying software, a risk that often lies outside the coverage of traditional cyber liability or property insurance policies. What Bricking Attacks Are and Their Impact A bricking attack is a particularly destructive type of cyberattack that corrupts essential firmware or operating systems, rendering hardware completely inoperable. The term “bricking” derives from the fact that affected devices become as useful as a brick; they retain their physical form but lose all functionality. Bricking corrupts essential software at the lowest levels of device operation, preventing computers and other electronic equipment from even starting up or performing basic functions. This threat differs from more familiar cyber risks like data theft or ransomware. Those incidents focus on unauthorized network access, data encryption or theft, while a bricking attack aims to destroy a device’s ability to function at all. Bricking attacks are intended to create a permanent, unrecoverable loss for the business. Once a device’s core firmware has been corrupted, recovery may be difficult or impossible, and attempts to reinstall software, roll back firmware or restore systems often fail. The consequences of such an attack can extend well beyond hardware replacement. When mission-critical devices, such as servers, point-of-sale terminals, medical equipment or manufacturing control systems, fail, entire operations may come to a halt. Production lines may shut down, retail stores may be unable to process transactions and health care providers may lose access to essential systems. The ripple effects of a bricking attack can include lost revenue, damaged customer trust and compliance challenges. Does Standard Cyber Insurance Cover Bricking? Bricking attacks are typically not covered by a standard cyber insurance policy. Traditional cyber insurance most commonly covers data breaches, ransomware, business interruption and liability. Property insurance, on the other hand, covers physical damage to buildings or equipment. But neither is designed to handle damage that’s caused by malicious firmware corruption. Because a bricking event destroys devices without visible physical damage, it usually does not trigger standard cyber or property insurance coverage. As a result, many organizations discover too late that their policies do not include coverage for this specific risk, leaving them on the hook for all costs related to the bricking attack. What Is Bricking in Cyber Insurance? By Higginbotham 18 KENTUCKY AUTO DEALER

How Bricking Coverage Works in Cyber Insurance Coverage for bricking is generally offered as an endorsement or add-on to a cyber liability policy. This enhancement is designed to cover financial losses if devices become permanently inoperable due to malicious software corruption, rather than physical damage. Because this coverage is specialized, it may require additional premiums and negotiations. When properly structured, bricking coverage may reimburse replacement costs for servers, laptops, point-of-sale terminals and other critical hardware. It may also cover related expenses, such as installation of replacement devices, labor to reconfigure systems and disposal of damaged equipment. In some cases, bricking coverage may even help with technical assessment costs in order to confirm the bricking event and document that restoration was impossible. However, coverage generally applies only when devices are confirmed to be permanently inoperable and cannot be restored through software repair, firmware reinstallation or other remediation. Insurance carriers often require thorough documentation, including a technical report confirming firmware corruption, before a claim can be filed. Industries Most Vulnerable to Bricking Attacks Sectors that rely heavily on specialized hardware are particularly vulnerable, including: • Health care providers: Sophisticated medical devices and electronic health record systems rely on embedded software. A bricking attack could disrupt patient care or data access that is essential for the daily operation of medical offices, and health care organizations are prime targets for cyberattacks. • Financial institutions: ATMs, transaction processing systems, trading platforms and security hardware often rely on firmware that could be compromised in a cyberattack. • Manufacturers: Production lines that utilize industrial control systems, automation equipment or computerized monitoring systems may face severe downtime and expensive replacements. • Retail businesses: Point-of-sale devices, payment terminals and inventory management systems are common targets when many endpoints share similar configurations. • Technology firms: Companies developing, manufacturing or configuring hardware and Internet of Things (IoT) devices could face both direct losses and liability if their equipment becomes a target. Common Coverage Limitations and Exclusions While policy terms will vary, bricking coverage often includes several restrictions, the most common of which include: • Devices must be proven to be permanently inoperable due to malicious activity — not wear and tear, a manufacturing flaw or a software bug. • Policies may include sub-limits by device type or cap total coverage for a single incident. For example, a policy might provide $100,000 in total bricking coverage but limit claims for individual devices to $25,000 or restrict coverage for certain types of equipment. High-value equipment may exceed per-device caps, which could leave organizations to cover the excess costs. • Waiting periods may apply. Some policies do not cover bricking events that occur shortly after policy inception. Others may require a waiting period between the incident and claim eligibility. • Some policies only trigger coverage when multiple devices are affected. Because of these factors, it’s essential for businesses to read policy language carefully, understand applicable exclusions and secure policy limits that reflect their exposures. Review your policies with your insurance broker to help ensure that you have adequate coverage. How Higginbotham Can Help At Higginbotham, we recognize that cyber threats evolve quickly, and policies that seemed adequate a few years ago may no longer address today’s risks. We work closely with businesses to understand their operations, assess their exposure to risks and secure appropriate insurance coverage. If you are uncertain about your current coverage or simply want to make sure your organization is protected against the full range of cyber threats, connect with one of Higginbotham’s business insurance specialists today by scanning the QR code. https://www.higginbotham.com/business-insurance/ request-a-quote/ WWW.KYADA.COM 19

CURRICULUM 2026 JANUARY 21 FEBRUARY 12 MARCH 18 APRIL 22 MAY 13 JUNE 1416 JULY 22 AUGUST 12 OCTOBER NOVEMBER 18 DECEMBER 9 SEPTEMBER 16 Kentucky Dealer University Marketing & Communications Virtual Class KADA Legislative Reception Frankfort, KY HR & Employment Practices Virtual Class Fixing Your Fixed Ops Virtual Class Annual Legal Review Summer Vacay! KADA Convention Click on the Event above to register or browse our website, www.kyada.com! KDU Tax Workshop Frankfort, KY Back to School with NADA Virtual Class Field Trip! KADA District Meetings Title Clerk Workshop Dealership Operations Workshop OSHA Compliance Virtual Class NOVEMBER 1 Fraud Prevention Virtual Class

Membership eligibility available throughout the Tri-State. Visit gecreditunion.org/membership for details. Equal Opportunity Lender General Electric Credit Union (GECU) has proudly served the Greater Cincinnati Tri-State area for over 70 years, financing more than five billion in auto loans in the last four years, and expanding our footprint to meet the needs of more dealer partners and their customers. A top provider of dealer-initiated auto loans in the area, we’re excited to partner with the Bluegrass state to bring you and your customers great rates, service excellence, and personalized solutions. Experience a better financing relationship Best in Banking CityBeat Best Credit Union Recognized 8 years Consistently voted Cincinnati’s best! Learn about GECU as a lending partner today! Scan the QR Code or contact a member of our Dealer Development team: 513.243.7900 (prompt 4) | dealerdevelopment@gecreditunion.org

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Your customers are already here. Will you take the stage? Your Audience Is Waiting. SCAN THE QR CODE TO RESERVE YOUR SPACE. (801) 676-9722

2026 Is a Time for Action in Dealership Operations By Don Jacobs, President and Founder, Trydon Recent changes in federal tax law now allow businesses to fully deduct the cost of capital improvements — including both equipment and installation labor — in the year they are made, rather than depreciating them over multiple years. This provides a significant opportunity for auto dealerships to enhance their facilities while reducing tax liability. Energy Management and Outdoor Lighting Electricity costs for outdoor lighting are a recurring expense, and rates are projected to continue increasing annually by 8-10%. Effective energy management can significantly reduce these costs. Strategies include operating lights at full intensity only when needed — such as during business hours or periods of activity — and dimming them during low-traffic times. This approach can lower energy consumption by up to 90% without compromising safety or visibility. Vehicle Inventory Security Dealership theft is an increasing concern. According to the FBI, roughly 7,000 vehicles are stolen from U.S. dealerships each year. In response, the National Highway Traffic Safety Administration has designated July as Vehicle Theft Prevention Month. Physical barriers, such as locked gates, can prevent unauthorized access but may also discourage potential customers. In contrast, Trydon’s network lighting control system mounts atop existing light poles, providing after-hours monitoring to detect and discourage trespassers. The appropriate security approach depends on the dealership’s perceived risk, inventory size and cost considerations. Financial Planning for Capital Improvements Combining the new tax advantages with Trydon’s finance-based subscription program can significantly reduce the cost of implementing capital-improvement lighting projects. In addition, this program will preserve cash for operational needs by establishing recurring and predictable monthly disbursements, enabling the dealer to initiate much-needed site improvements concurrently. Incentive Programs for Energy Efficiency Throughout southern Kentucky, TVA Energy provides financial incentives for energy-efficient projects, including: • Replacing older lighting systems (metal halide) with high-performance dimmable LEDs. • Installing lighting control systems to optimize energy use. Leveraging these programs can further enhance cost savings and operational efficiency while supporting sustainability goals. Trydon is proud to be sponsoring the KADA Accelerated Leadership Program Summer Retreat in Nashville on August 18-19, and I’m looking forward to attending in person. It’s shaping up to be a great event and an ideal opportunity to learn more about what Trydon can do for your dealership. I hope to see you there! 24 KENTUCKY AUTO DEALER

Kentucky Automobile Dealers Association (KADA) is pleased to recommend a broad range of products and services aimed at controlling expenses in every facet of the dealership. The following products and/or services are recommended by the association’s board of directors and endorsed through the association. These vendors are reviewed periodically to ensure the quality of products and services meet the needs of our dealers and can provide special pricing through group buying. Workers Compensation John Foresman, (502) 489-6255 jforesman@higginbotham.com Electronic Titling & Registration LT Slater, (216) 392-0695 lt@champtitles.com Cybersecurity Compliance Lauren Bailey, (703) 909-1625 lauren.bailey@complyauto.com Vehicle Sales Reporting Ronnie Leet, (859) 275-7950 ronnie.leet@cross-sell.com Customer Engagement Technology Scott Pechstein, (949) 278-8618 scott@digitalairstrike.com Business Continuation Services Keith Glandon, (304) 543-8271 keith.glandon@dominiondms.com Dual Price Strategy Technology Amberly Allen, (817) 404-9253 amberly@dealermerchantservices.com KADA Preferred Partner Programs 26 KENTUCKY AUTO DEALER

F&I Products & Services Brad Geren, (502) 472-3671, bgeren@dpg-inc.com Todd Howard, (859) 382-3252, thoward@dpg-inc.com Kevin Voges, (812) 204-2251, kvoges@dpg-inc.com Fixed Operations Software Anthony Fletcher, (815) 383-4280 afletcher@dynatronsoftware.com Group Health Insurance & Voluntary Benefits Colin Royster, (540) 526-7074 croyster@integrumadvisors.com Ben Hoffman, (804) 357-6004 bhoffman@integrumadvisors.com Settlement Recovery Services Greg Loeb, (419) 265-0999 greg.loeb@mcaginc.com Credit Card Processing Fee Savings Don Giordano, (973) 897-2778 dgiordano@merchantadvocate.com Service Department Products & Programs Jeremy Kimsey, (804) 641-1221 jkimsey@mocmidatlantic.com NADA Retirement Program Jeff Liwacz, (609) 529-3546 jeff.liwacz@empower.com Wholesale Marketplace Jared Thetford, (317) 365-8902 jared.thetford@openlane.com Kentucky F&I Forms Library Brian Ray, (314) 960-0100 brian_ray@reyrey.com Electronic Vehicle Transactions Doug Pillow, (502) 209-8705 dpillow@vitu.com WWW.KYADA.COM 27

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