2026 Pub. 6 Issue 2 AUTO DEALER 2026 Legislation Streamlines Business Operations Key Takeaways for Kentucky Dealers 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™, formerly The newsLINK Group LLC. All rights reserved. Kentucky Auto Dealer is published four times per year 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 (801) 676-9722. CONTENTS 6 PRESIDENT’S MESSAGE The Work Continues By Jason Wilson, President, KADA 8 2026 KADA Leadership Executive Committee, Staff and Board of Directors 10 2026 Legislation Streamlines Business Operations Key Takeaways for Kentucky Dealers 12 Accelerated Leadership Program Summer Retreat August 18-19, 2026 13 KADA Presents Legacy Award to Sen. Higdon 14 KADET Drive Our Industry Forward 15 KENTUCKY DEALER UNIVERSITY Sales & Use Tax Workshop 16 Controlling Electricity Costs Amid Rising Demand By Don Jacobs, President and Founder, Trydon 18 Disparate Treatment by Manufacturers in Warranty Parts & Labor Rate Increase Evaluations A Multi-Case Review By Joe Jankowski, Managing Member, Armatus Dealer Uplift 20 FTC Advertising Enforcement Actions for “Made in the USA” Claims By ComplyAuto 21 Upcoming Meetings & Events 22 Kosair for Kids 23 Fixed Ops: The Quiet Growth Engine of the Dealership By Dynatron Software 26 KADA Preferred Partner Programs 6 13 20 23 10 18 4 KENTUCKY AUTO DEALER
The Work Continues JASON WILSON PRESIDENT, KADA As we move through 2026, I continue to be energized by the strength, resilience and engagement of Kentucky’s dealer community. The pace of change in our industry has never been greater, but Kentucky dealers continue to prove that adaptability, innovation and customer service remain the cornerstones of our success. This year’s General Assembly brought both opportunities and challenges. While not every legislative effort ended as we hoped, our association once again demonstrated the power of a united voice, and we achieved some legislative wins. Dealers from every corner of the Commonwealth showed up, engaged with lawmakers, shared their stories, and advocated for the future of our businesses and our communities. That advocacy matters, and it makes a difference. One of the most important things we can do moving forward is continue building and strengthening relationships with our elected officials — not just during the legislative session, but throughout the year. The lawmakers who best understand our industry are the ones who hear directly from dealers in their districts. Whether it is inviting a legislator to visit your dealership, attending a local event, or simply having a conversation about the challenges and opportunities facing our businesses, those connections are invaluable. I also encourage every member to remain engaged with KADA. Our effectiveness as an association depends on the strength and involvement of our membership. Staying informed, participating in events and advocacy efforts, and responding to calls to action all help ensure Kentucky President’s Message 6 KENTUCKY AUTO DEALER
The pace of change in our industry has never been greater, but Kentucky dealers continue to prove that adaptability, innovation and customer service remain the cornerstones of our success. “ dealers continue to have a strong and respected voice in Frankfort and beyond. The automotive business continues to evolve rapidly — from emerging technologies and changing consumer expectations to workforce development and regulatory pressures. Through it all, KADA remains focused on delivering the advocacy, education and resources you need to succeed. Thank you for your continued support of this association and for everything you do to strengthen Kentucky’s economy and communities. I look forward to continuing our work together on behalf of Kentucky dealers. Together, we will continue moving this industry forward. WWW.KYADA.COM 7
2026 KADA 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 Alex Pogue NADA PAC DIRECTOR Pogue Automotive Group David Moore DEALER PHILANTHROPY DIRECTOR Moore Automotive 2026 KADA Board of Directors Jason Wilson PRESIDENT Sarah Bishop VICE PRESIDENT Melissa Peach CFO Penny Faulconer ADMINISTRATIVE SPECIALIST 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 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.
2026 Legislation Streamlines Business Operations Key Takeaways for Kentucky Dealers While the 2026 session of the Kentucky General Assembly did not deliver all that KADA had hoped, it nonetheless produced several significant legislative victories impacting Kentucky businesses, vehicle dealers, lenders and local governments. Among the most consequential measures were Senate Bill 110, Senate Bill 158 and House Bill 518 — each aimed at modernizing systems, improving consistency and reducing administrative burdens across the Commonwealth. SB 110: Kentucky Moves Toward Full Electronic Titling Senate Bill 110 represents one of the most significant updates to Kentucky’s motor vehicle titling and registration system in years. Signed into law in April 2026, the legislation accelerates the Commonwealth’s transition to electronic title and lien processing. Beginning July 1, 2027, motor vehicle dealers and lienholders will generally be required to use Kentucky’s electronic title application and registration system for submitting title, registration and lien documentation. This measure will not only improve transaction times but also help dealerships move at the speed of business. It is critical that dealerships not yet using KyELT begin that process soon to avoid delays as the deadline nears. The law also establishes a new electronic-only title system. This is a significant change that will result in vehicle titles being issued electronically rather than on paper. For vehicles without liens, owners can request a paper title for a small fee. Likewise, once a vehicle is paid off, the owner may request a paper title. Additional provisions modernize county clerk operations by: • Allowing certain notices and renewal reminders to be delivered electronically; • Eliminating outdated duplicate filing requirements; • Authorizing alternative payment methods for taxes and fees; and • Streamlining lien filing and release procedures. SB 110 is a long-overdue modernization effort designed to improve efficiency, reduce paperwork, and better align Kentucky with evolving automotive and financial industry practices. SB 158: Establishing a Framework for Vehicle Financial Protection Products Another major development for the automotive industry came with the passage of Senate Bill 158, which creates a comprehensive regulatory structure for vehicle financial protection products. The legislation clarifies that products such as vehicle value protection agreements and debt waivers are credit protection products, NOT insurance products, under Kentucky law. It also establishes consumer protections and compliance requirements for providers and lenders. 10 KENTUCKY AUTO DEALER
Collectively, these pieces of legislation demonstrate a broader legislative focus on modernization, digital infrastructure, regulatory clarity and administrative efficiency. “ Key provisions include: • Defining regulatory standards for vehicle financial protection products; • Establishing disclosure and contract requirements; • Allowing related charges to be separately itemized and financed; • Prohibiting creditors from conditioning financing on the purchase of these products; and • Requiring compliance by retail installment sellers and consumer loan companies. The law takes effect Jan. 1, 2027, and provides additional certainty for dealers, finance companies and consumers operating within the vehicle protection marketplace. This bill is a victory for dealers because it cements their authority to sell such products, confirms that they are not insurance and protects dealers from the regulations associated with genuine insurance products. HB 518: Standardizing Local Business Tax Filings Beyond automotive legislation, lawmakers also approved House Bill 518, a measure aimed at simplifying local business tax administration throughout Kentucky. The legislation requires standardized forms for local occupational tax filings on net profits, payroll and gross receipts. The bill directs the Kentucky Secretary of State to work alongside an advisory committee to develop uniform filing documents and electronic submission processes. Beginning Jan. 1, 2028, local taxing districts will be required to accept these standardized forms and associated electronic payments. The law is expected to reduce confusion and administrative complexity for businesses operating across multiple jurisdictions by unifying the forms and mechanisms associated with such filings. A Session Focused on Modernization and Efficiency Collectively, these pieces of legislation demonstrate a broader legislative focus on modernization, digital infrastructure, regulatory clarity and administrative efficiency. From electronic vehicle titling to standardized tax forms and updated financial product regulations, the 2026 General Assembly enacted reforms expected to positively impact Kentucky businesses for years to come. WWW.KYADA.COM 11
Summer Retreat 1 HOTEL NASHVILLE 710 DEMONBREUN ST, NASHVILLE, TN AUGUST 18-19, 2026 August 18: 6pm-8pm- Cocktail Reception and Dinner for ALP members and their spouses. August 19: 10 am-1pm- Meeting and Luncheon for ALP Members
KADA Presents Legacy Award to Sen. Higdon On March 12, in conjunction with KADA’s Dealer Day at the Capitol, KADA presented retiring Sen. Jimmy Higdon of Lebanon with a Legacy Award to recognize his years of service to dealers and all Kentuckians. Serving as chair of the Senate Transportation Committee, Sen. Higdon has been a valuable ally for dealers across the Commonwealth and will be sorely missed. We wish him all the best in his retirement. WWW.KYADA.COM 13
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The U.S. needs more electricity than ever. Rapid data center growth, coupled with AI and a rebounding American industrial sector are all increasing demand for electricity at a rate not seen for decades. The U.S. Energy Information Administration reports that the national average commercial electricity rate in 2024 (the most current data available) was 12.7 cents per kilowatt-hour (kWh). ICF, a global consulting company, estimates prices will increase by nearly 20% by 2028 and by more than 37% by 2032. The sharp projected rise in prices reflects a surge in expected demand; consider that the national five-year forecast issued in 2024 was five times the level predicted just two years earlier. Increasing production capacity is only one aspect of the costly investments utilities must make. The U.S. power grid is aging. Over 70% of the country’s transmission lines are more than 25 years old, with many approaching the end of their 50- to 80-year lifespan. Under traditional regulatory directives, utilities recover these massive capital investments by filing for and receiving rate increases, which ultimately pass the costs directly to their customers. In a very real sense, you are a captive consumer. You must buy your electricity from your local utility at whatever price they are legally permitted to charge. The only way to gain control of this ever-increasing operating cost is to purchase fewer watts of power. With LED lighting being your single largest user of electricity, operating your lights all night at full brightness simply wastes money, while turning them off partway through the night is an invitation for bad things to happen. Appropriate scheduling of nightly dimming events throughout your rooftop site can reduce your electricity costs by as much as 90% without compromising safety or merchandising impact. In addition, you can now upgrade key areas of your site, such as your front-row “merchandising line” with brighter, more efficient dimmable LED lights to draw more positive attention to your dealership and its inventory, all while consuming less wattage. Trydon’s outdoor lighting control system can accomplish all of the above objectives . . . and more! Additionally, 100% deductibility of capital improvements in the first year of operation, combined with Trydon’s subscription program, preserves your cash reserve for more important matters, such as purchasing cars for resale rather than tying it up in bricks and mortar. Additional benefits of the Trydon subscription program include: • 100% warranty support (parts and labor) for all equipment (lighting controllers, new lights, even light poles) supplied to the project • All Trydon software upgrades and enhancements are installed by Trydon personnel • 24-hour telephone-based customer support • Incentive programs for energy efficiency Financial incentives are available from TVA Energy in southern Kentucky, with LG&E/KU supporting the rest of the state, for energy-efficient projects, including: • Replacing older lighting systems (metal halide or LED) with high-performance dimmable LEDs • Installing the Trydon lighting control system to optimize energy use Leveraging these programs can further enhance cost savings and operational efficiency while supporting sustainability goals. Making Trydon the first capital project of the year can support additional site improvements later on. We welcome the opportunity to show you how we can benefit your operation. Controlling Electricity Costs Amid Rising Demand By Don Jacobs, President and Founder, Trydon 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! 16 KENTUCKY AUTO DEALER
Disparate Treatment by Manufacturers in Warranty Parts & Labor Rate Increase Evaluations A Multi-Case Review By Joe Jankowski, Managing Member, Armatus Dealer Uplift Introduction Over the past several years, discrepancies have emerged in how manufacturers evaluate and approve dealers’ warranty parts and labor rate adjustment requests. Across multiple stores and years, dealers have observed inconsistent application of rules and policies, shifting and inconsistent interpretations of “warranty-like” qualifications, and contradictory inclusion and exclusion decisions. These inconsistencies — found in submissions for a given store year-over-year, in parts and labor submissions for the same store(s), and between similarly situated dealers — constitute what can only be described as disparate treatment. This article presents multiple documented examples illustrating how identical or near-identical repair orders and methodologies have been treated differently by the same manufacturer under changing or variable internal guidelines. Each case study highlights the lack of evaluation consistency, transparent standards and uniform enforcement of manufacturer policies across all dealer submissions. Case Study 1: Same Store Parts and Labor Submissions with Different Rules A dealer submitted requests for warranty parts and labor rate increases during mid-2025. The requests were submitted to their manufacturer in quick succession — both within a one-month period. After reviewing the labor request (which was submitted for review first), the manufacturer approved the dealer for a slightly reduced warranty labor rate, having made several adjustments inconsistent with rules and policies upheld in years prior. Just two days later, the dealer filed a parts request using nearly the same set of repair orders; 89 out of 90 days used in each request overlapped, with a variance of only a single day. Each submission was prepared under identical rules, with parts having been adjusted based on the manufacturer’s RO-by-RO feedback as provided in response to the dealer’s labor request. Despite the nearly identical range, the manufacturer cited and adjusted the handling of 19 entirely different repairs that were not cited in the manufacturer’s review of the previously approved labor sample. In other words, the manufacturer’s rules regarding what constitutes a “qualifying repair” had changed within just a 48-hour period. The dealer, therefore, requested that the parts markup be approved using the same methodology and logic that governed the labor approval, proposing an amended markup aligned with the original figure requested, rather than the three-point reduction resulting from this disparate treatment. When submissions are prepared utilizing the same methodology, manufacturers should ensure parity across evaluations. Divergence in review criteria between labor and parts requests undermines procedural fairness and erodes dealer confidence in manufacturer processes. Case Study 2: Statutory Interpretation and Shifting Rules In another case, a dealer challenged a manufacturer’s inconsistent interpretation of a state warranty statute, year-over-year, with no relevant change to the state statute in reference. In early 2025, the manufacturer in question cited the absence of “warranty-like” language in the applicable state statute, asserting that repairs completed due to damage/outside influence (rodent damage, accident damage and other factors that would never be covered under a manufacturer warranty) should be included in the calculation. This interpretation was completely off base, considering the entire intent of the statutory language is to include work that would be covered under a manufacturer’s warranty and to exclude work that is not. The manufacturer’s very own behavior contradicted their previously stated stance. In 2023, the manufacturer took the exact opposite stance to reduce the exact same dealer’s request, having stated that repairs completed due to “outside influence” should be removed from the calculation, only to reverse that position in 2025 when doing so worked to the manufacturer’s advantage. In both cases, the stance taken resulted in a submitted rate that was reduced; the exclusion of such repairs reduced the dealer’s approved rate in 2023, while the inclusion of this category reduced the approved rate in 2025. Having taken notice of this contradiction, the dealer asserted a claim of disparate treatment, arguing that the manufacturer’s inconsistent rule application constituted an unfair practice. 18 KENTUCKY AUTO DEALER
However, the manufacturer was unwilling to amend their stance, ultimately stating that their handling of the request in 2025 was aligned with the state statute’s guidelines, offering no further insight as to why the dealer’s requests were handled differently, year-over-year, following the same statutory guidelines. When manufacturers alter interpretive positions without a transparent rationale, they invite credible claims of disparate treatment. Even if statutory language supports flexibility, manufacturers should maintain internal consistency to preserve fairness and trust. Case Study 3: Year-over-Year and Store-to-Store Inconsistency Between 2020 and 2023, this dealer completed retail warranty submissions successfully under state law without issues, achieving full approvals for each request. Over the course of this time frame, the manufacturer in question consistently excluded certain repair categories as maintenance and/or “not warranty-like” — including brakes, wiper blades, keys, wheel locks and carbon cleaning, to name a few — from retail warranty calculations. In 2024, however, with no change to the language in the state statute, the manufacturer erroneously included these categories for the first time without explanation, significantly lowering the dealer’s requested rate. The dealer challenged the inconsistency, citing the handling of their requests in years past and the non-warranty-like nature of the now-included repairs. In 2025, just a few months later, the dealer proceeded with submitting new requests for both parts and labor, following the same policies that the manufacturer had followed from 2020-2023 — excluding categories consistent with maintenance and/or non-warranty like circumstances, and disregarding the manufacturer’s 2024 stance that these categories should now be included. Surprisingly, the manufacturer reverted to the pre-2024 standards, approving both parts and labor submissions without any adjustments, and without reference to the prior year’s disagreements. When manufacturers apply policies regarding the qualification of repairs inconsistently and without rationale or notice in determining retail warranty rates, dealers are left with uncertainty and doubt regarding manufacturer expectations and intentions to reimburse their dealers at true retail. Conclusion Across all cases, one theme persists: inconsistent manufacturer application of evaluation criteria. Dealers have demonstrated that identical methodologies, repair categories and submission frameworks have been treated differently depending on timing, store or request type. This body of evidence illustrates how some manufacturers change their interpretation of statutory language, whether in designating “warranty-like” qualifications, adhering to state statute requirements or determining inclusion and exclusion of specific repair categories based on internal criteria. This is not an indictment of all manufacturers; in all fairness, there are several of them that properly adhere to statutory requirements and have a consistent application of their internal policies. For fairness and credibility to prevail in manufacturer-dealer relationships, evaluation criteria should be applied uniformly, transparently and consistently across all rate requests — regardless of year, dealer or submission type. Only through consistency can the process maintain legitimacy and support mutual trust between dealers and manufacturers. Joe Jankowski is the managing member of the Hunt Valley, Maryland-based Armatus Dealer Uplift, a firm specializing in retail warranty reimbursement submissions. Armatus has completed over 22,000 successful submissions nationwide. Joe has been personally involved in consulting on 25 retail warranty statutes and is widely recognized as a subject matter expert in this highly technical arena. Previously, Joe spent more than 20 years as CFO, COO and CEO of a large automotive group in Maryland. WWW.KYADA.COM 19
FTC Advertising Enforcement Actions for “Made in the USA” Claims By ComplyAuto On April 14, 2026, the Federal Trade Commission (FTC) announced a coordinated enforcement sweep targeting deceptive “Made in the USA” claims. The enforcement actions center on companies that marketed products as American-made despite relying on imported materials or fully foreign production. The FTC’s standard for an unqualified “Made in the USA” claim is strict: Parts of the products must be “all or virtually all” made in the United States. • TouchTunes: The maker of electronic dartboards claimed to be “Made in the USA” across its website and other marketing materials, even though the electronic dartboards contained imported components. Though final assembly was completed in the United States, many crucial components — such as computer chips, cameras and flat-screen monitors — were made abroad. This led to $625,000 in consumer redress, among other prohibitions. • American Liberty LLC, Three Nations LLC and the company principals: Its product line, consisting of American flags, U.S. military flags, and patriotic flag displays and other accessories, were touted as “Made in the USA,” “All-American Made,” “100% Made in the USA,” “100% American Made Tough,” and “Built by Americans for Americans” through corporate websites, digital marketing and other marketing materials. However, several products were wholly imported from China. This led to $167,743 in consumer redress, among other prohibitions and requirements. • Oak Street Bootmakers: The company falsely claimed that certain boots, loafers and other footwear products were “handcrafted 100%” in the United States, that the entire product was made in the United States “from heel-to-toe, using no pre-assembled components from overseas,” and that their footwear products were “More than Made in USA.” However, the footwear company used a factory in the Dominican Republic to source materials as well as factories in Brazil. This led to $75,000 in consumer redress, among other prohibitions. How Does This Affect My Dealership? While it is not common, we have seen instances where dealers make “Made in the USA” or similar claims in advertisements. Dealerships should exercise heightened caution before making any representations in advertising, in marketing materials, on websites, in showrooms or even by sales staff about where vehicles or its components are made. The information must be accurate, substantiated and consistent with FTC standards. Even if a vehicle is assembled in the United States, major components (engines, electronics, batteries) may be sourced internationally, meaning broad or unqualified claims could be considered misleading. Part of an Increasingly Aggressive FTC Approach to Advertising It seems like the FTC is only getting started here. Christopher Mufarrige, the director of the FTC’s Bureau of Consumer Protection, who also sent 97 letters to auto groups nationwide over concerns of deceptive pricing, said, “The FTC is committed to ensuring that ‘Made in the USA’ claims are truthful and trustworthy.” Additionally, “We will robustly enforce the ‘Made in the USA’ standard so that the American people have confidence that their purchases of American-made products support American workers and manufacturing.” ComplyAuto’s Guardian solution can help. Guardian, the only tool of its kind, will help you ensure that your ads are compliant with all federal and state advertising laws, including “Made in the USA” claims. Contact us at complyauto.com/ schedule-demo to learn more. 20 KENTUCKY AUTO DEALER
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.
Fixed Ops: The Quiet Growth Engine of the Dealership By Dynatron Software The most profitable opportunities in automotive retail aren’t always the loudest. In fact, the real growth engine for many dealerships isn’t on the sales floor. It’s in the service drive. Fixed operations is often the most controllable revenue stream in the dealership. While market conditions, inventory cycles and consumer demand can create volatility in vehicle sales, fixed ops performance is driven largely by execution, process discipline and performance management. Yet many dealerships struggle to unlock that advantage because they are operating inside what we call the “data fog.” They have access to more reporting than ever, but less clarity on what actually drives profitability. That’s where a true performance optimization strategy becomes critical. At Dynatron Software, we believe the future of fixed ops is not about collecting more data. It’s about turning data into action and creating a measurable performance advantage inside the dealership’s existing business. The Economics Make Fixed Ops Impossible to Ignore Fixed ops remains one of the strongest profit contributors in the dealership because of its inherent margin structure. Parts and labor operations typically deliver 45-55% margins, creating predictable revenue streams that help stabilize overall dealership performance during economic shifts. But margin alone isn’t enough. High-performing service departments focus on improving execution across the entire value chain — from pricing strategy to customer communication. Service Experience Drives Loyalty and Retention Service experience is now one of the most important competitive differentiators in automotive retail. A strong service experience: • Improves customer retention • Increases lifetime customer value • Directly influences future vehicle purchases WWW.KYADA.COM 23
In many dealerships, service is the primary retention engine, quietly driving sales success long after the initial transaction is complete. The Industry Is Creating More Service Opportunity Several market trends are expanding the opportunity for high-performing fixed ops departments: • The average vehicle fleet is aging. • Older vehicles require more maintenance and complex repairs. • Customers are keeping vehicles longer. This means more service opportunities, but only for dealerships that can operate efficiently and deliver consistent performance. Turning Performance Data into a Competitive Advantage The challenge isn’t access to data. The challenge is cutting through the noise. Too many service departments are drowning in reporting without clear guidance on what to improve first. That’s the “data fog” problem. While our n me h s ch nged under new ownership, the he rt of our comp ny rem ins the s me — including the reli ble, friendly te m you’ve lw ys worked with. Our go l is to be trusted p rtner for tr de nd profession l ssoci tions, strengthening membership nd connecting member businesses with their future customers. We look forward to what’s to come! New name. Same people. Renewed commitment. We’re excited to nnounce th t is now mbr-connect.com (801) 676-9722 hello@mbr-connect.com The highest-performing dealerships simplify performance measurement around the metrics that directly impact profitability: • Effective Labor Rate (ELR) optimization • Parts margin management • Technician productivity improvement • Advisor performance coaching • Warranty recovery optimization When performance data is paired with coaching, accountability and workflow optimization, dealerships move from monitoring results to actively driving them. Building the Future of Fixed Ops The dealerships that win in the long term will treat fixed ops as a strategic growth engine rather than a support function. The future belongs to dealerships that invest in: • Operational performance optimization • Service experience excellence • Workforce development and technician retention Because in today’s market, fixed ops isn’t just a profit center. It’s the foundation of sustainable dealership performance. 24 KENTUCKY AUTO DEALER
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
KADA Preferred Partner Programs The Kentucky Automobile Dealers Association (KADA) is pleased to recommend a broad range of products and services to help control expenses across every facet of the dealership. The following products and/or services are recommended by the association’s board of directors and endorsed by the association. These vendors are reviewed periodically to ensure the quality of their products and services meets the needs of our dealers and that they can provide special pricing through group buying. Automobile Dealers Management Insurance Company Workers’ Compensation John Foresman, (502) 489-6255 jforesman@higginbotham.com CHAMP Electronic Titling & Registration LT Slater, (216) 392-0695 lt@champtitles.com ComplyAuto Cybersecurity Compliance Sherryl Nens, (661) 210-3453 sherryl@complyauto.com Cross-Sell Vehicle Sales Reporting Ronnie Leet, (859) 275-7950 ronnie.leet@cross-sell.com Digital Air Strike Customer Engagement Technology Scott Pechstein, (949) 278-8618 scott@digitalairstrike.com Dominion DMS Business Continuation Services Keith Glandon, (304) 543-8271 keith.glandon@dominiondms.com EasyCare/Dealer Performance Group Inc. 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 Larry Dorfman, (404) 732-5910, ldorfman@easycare.com 26 KENTUCKY AUTO DEALER
Dynatron Software Fixed Operations Software Anthony Fletcher, (815) 383-4280 afletcher@dynatronsoftware.com Integrum Advisors Group Health Insurance & Voluntary Benefits Colin Royster, (540) 526-7074 croyster@integrumadvisors.com Ben Hoffman, (804) 357-6004 bhoffman@integrumadvisors.com MCAG Settlement Recovery Services Greg Loeb, (419) 265-0999 greg.loeb@mcaginc.com Merchant Advocate Credit Card Processing Fee Savings Don Giordano, (973) 897-2778 dgiordano@merchantadvocate.com MOC Mid-Atlantic Service Department Products & Programs Jeremy Kimsey, (804) 641-1221 jkimsey@mocmidatlantic.com NADA Retirement from Empower Retirement Program Jeff Liwacz, (609) 529-3546 jeff.liwacz@empower.com OPENLANE Wholesale Vehicle Marketplace Jared Thetford, (317) 365-8902 jared.thetford@openlane.com Priority Commerce Automotive Dual Price Strategy Technology Amberly Allen, (817) 404-9523 amberly.allen@prth.com Reynolds Document Services Business Documents & Marketing Services Brian Ray, (314) 960-0100 brian_ray@reyrey.com Vitu Digital Titling & Registration Doug Pillow, (502) 209-8705 dpillow@vitu.com WWW.KYADA.COM 27
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