Issue 3 2026 Official Publication of the New Jersey Coalition of Automotive Retailers PRESIDENT’S MESSAGE THE POWER OF PARTNERSHIPS
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table of CONTENTS NJ CAR BOARD OF TRUSTEES BY REGION NORTHERN REGION I (Bergen, Essex, Hudson, Passaic, Sussex) Mark Abaid (Alt.) Joseph Agresta, Jr. (Alt.) Timothy Allocca Jeffrey Brown John Fette Matthew Haiken (Alt.) William Kundert, Jr. Brian Lam Reneé P. McGuire Richard Selman Todd Van Duren NORTHERN REGION II (Hunterdon, Morris, Somerset, Union, Warren) Gregg Ciocca, Jr. William Feinstein David Ferraez Chris Gilbert (Alt.) John Johnson, Jr. Sean Lyons Mark Montenero Chris Preziosi, Jr. (Alt.) Edward J. Rossi William Strauss, III Stephen Tilton CENTRAL REGION (Middlesex, Monmouth, Ocean) Dan Chuhinko Robert Ciasulli Lisa Ocasio Devivo Kevin DiPiano (Alt.) Garry Foltz Adam Kraushaar Robert Larson Shelly Locascio Tyler Schmelz Anton Semprivivo Robert Sickel SOUTHERN REGION (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, Salem) Doug Burke Allen (AJ) Eastlack (Alt.) Jason Elkins Scott Haldeman Thomas Hessert, III Steven Kindle Stacey Lilliston Marcy Maguire Mark Miller Robert D. McCormick NJ CAR Executive Committee and Board of Trustees 2026 A. Andrew Shapiro .. .. .. .. .. .. .. .. .. ........... Chairman Ed Barlow, III .. .. .. .. .. .. .. .. .. ........... Vice Chairman Michael P. DeSilva .. .. .. .. .. .. .. .. .. ........... Secretary David Kull .. .. .. .. .. .. .. .. .. .. .. ............ Treasurer Jordan Wright .. .. .. ...... Regional Vice President (Northern Region I) Michael DiFeo .. .. .. ...... Regional Vice President (Northern Region II) Richard Malouf, Jr. . . . . . . . ....Regional Vice President (Central Region) Russell Abate .. .. .. ....... Regional Vice President (Southern Region) Ronald E. Baus, Jr. .........................BudgetChairman Eric Nielsen .. .. .. ....... NJ CAR Captive Insurance Co., Inc. Chairman Richard A. DeSilva, Jr. .. .. .. .. ........ NADA Director for New Jersey Robert Larson .. .. .. .. .. .. ........ NJ CAR Services, Inc. President Frank M. Pezzolla .. .. .. .. .. .. ........ Truck Committee Chairman Judy Schumacher-Tilton .. .. .. .. .. .. ......... CAR PAC President Thomas DeFelice, III .. .. .. .. .. .. .. ......... NextGen Chairman Laura C. Perrotta .. .. .. .. .. .. .. .. .. ............ President PRESIDENT’S MESSAGE 6 The Power of Partnership Strengthening New Jersey’s Dealerships with NJ CAR’s Handpicked Providers BY LAURA C. PERROTTA CHAIRMAN’S MESSAGE 7 The Value of the Franchise System NJ CAR’s Public Relations Campaign BY A. ANDREW SHAPIRO NADA DIRECTOR’S MESSAGE 9 NADA Advocacy Update BY RICK DeSILVA, JR. 12 How Aged Inventory Quietly Drains Your Front-End Gross BY JAKE RENNER 13 Why Dealerships Need Independent Document Scanning Solutions BY MICHAEL DACHILLE 14 Navigating the 2026 FTC Dealer Advertising Crackdown BY MARK SANBORN 15 Energy Infrastructure Upgrades A Competitive Edge for New Jersey Dealerships BY CHRIS DONNELLY 16 Automotive Dealerships Are Cybercrime Targets BY BRAD BONO 17 Spotting the New Wave of Fraud Before the Car is Stolen BY DOUG FUSCO 19 F&I as the Profit Anchor in an AffordabilityDriven Market BY MEGAN KENARY 20 Protecting Margin in a Softer Market Why Payments Deserve a Second Look BY AMBERLY ALLEN 21 Factory Reset Isn’t Enough to Ensure Vehicle Data Privacy The Hidden Liability Sitting on Your Lot BY SHERRYL NENS 22 New Jersey Energy Costs Keep Rising What Auto Dealers Can Do Now BY JAY THOMSON, JR. 23 Thank You NADA PAC Contributors 24 NJ CAR & Dealers Making a Difference Philanthropy, Highlights, and Grassroots 28 NJ CAR Recognizes Dealerships That Have Contributed to CAR PAC in 2026 30 Every Dealership Should Be a Member of NJ CARPOOL ©2026 New Jersey Coalition of Automotive Retailers (NJ CAR) | MBR Connect™. All rights reserved. New Jersey Auto Retailer 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 NJ CAR, 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. New Jersey Auto Retailer is a collective work, and as such, some articles are submitted by authors who are independent of NJ CAR. While a firstprint 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. EDITOR: BRIAN HUGHES PUBLISHED BY MBR CONNECT (801) 676-9722 Official Publication of 4 NEW JERSEY auto retailer
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Over the past 23 years I’ve worked in the association world, I’ve come to fully appreciate the value and benefits of building and maintaining partnerships. The business world runs at a lightning-fast pace where technology is rapidly adapting while legislation and regulations — especially in New Jersey — can turn on a dime. The auto retail sector is no stranger to this truth. The act of balancing evolving customer expectations with the pressure of remaining compliant is exhausting for dealers trying to adapt. When your focus is stretched and the bandwidth for your attention runs out, having a partner becomes invaluable. PARTNERSHIPS OFFER A COMPETITIVE EDGE As the trade association that represents and advocates for the franchised new car and truck dealerships in New Jersey, it’s our responsibility to support our dealer members at the State House and in every facet of the dealership. In that respect, NJ CAR is proud to endorse providers we believe will allow dealers to maintain sustainable excellence across the entire store. We’re confident that our Endorsed Providers (EPs) understand the nuanced challenges dealerships face and can offer tools that bolster day-to-day operations for your business. By building an alliance with these organizations, we’re able to point our dealer members to companies that will give them a competitive edge to enhance their business operations. When we vet these organizations, we’re ensuring their mission aligns with our dealer’s values and that they can commit themselves to the long-term success of our members. From specializing in compliance to optimizing daily operations to facility and network solutions, EPs are charged with providing dealers with options that allow the dealership to function smoothly and efficiently. As experts in their respective fields, the Coalition’s EPs are prepared to tackle the massive pipeline of processes and maintenance that are difficult to preserve internally. CONSIDER THE BENEFITS OF PARTNERSHIPS To illustrate that our EPs understand the obstacles New Jersey dealers face, we’ve invited them to submit articles in this issue of our magazine that address the various challenges dealers are facing while offering their thought leadership and proposed remedies. We urge you to consider their insights and entertain giving them an opportunity to EARN YOUR BUSINESS. These companies aren’t just providing dealers with a product or service; they’re presenting expert insights that address real trials dealers face every day. As the auto retail sector changes, our EPs are evolving to meet the demands of an industry that never stands still. Efficiency is the difference between strong foundations and tenuous ones. Procedures that aren’t efficient show up in your bottom line. Optimizing efficiency gives dealers more time to focus on what matters: selling vehicles, delivering excellent service, and maintaining long-lasting relationships with their local communities. SHAPE YOUR FUTURE Be proactive and take advantage of the resources available to NJ CAR dealer members. Our Endorsed Providers can become essential partners that elevate your workflows, protect your interests, and grow your revenue. Don’t just prepare for your future — actively shape it by taking the opportunity to bridge the gap between today’s hurdles and tomorrow’s successes. Plus, when you utilize one of our EPs, you invest in your industry. We have contractual relationships with our partners that support our advocacy efforts. It’s truly a win-win. We hope you find value in the power of our partnerships. If you have any questions about our Endorsed Providers or want to learn more, please contact NJ CAR’s Director of Marketing Mike Madia at mmadia@njcar.org. PRESIDENT’S MESSAGE The Power of Partnership Strengthening New Jersey’s Dealerships with NJ CAR’s Handpicked Providers by LAURA C. PERROTTA, President, NJ CAR 6 NEW JERSEY auto retailer
CHAIRMAN’S MESSAGE The Value of the Franchise System NJ CAR’s Public Relations Campaign by A. ANDREW SHAPIRO, Chairman, NJ CAR Franchised dealerships have always strived to promote the many ways they work to protect, support, and build relationships with their customers. Elevating the image of our members is one of NJ CAR’s primary missions. However, as some manufacturers explore direct sales, they sow doubt in the minds of some consumers about the benefits of the franchise system. Our position is that the franchise model remains the most effective vehicle distribution system. It is critical that we promote the value our stores bring to hundreds of New Jersey communities. NJ CAR constantly highlights the many ways the franchise system benefits consumers: intra- and inter-brand price competition; easy access to warranty and recall repairs; serving as advocates for consumers; local accountability; and community support. We have the attention of our elected officials. Now, we need to educate consumers about the value of the franchise system. CAMPAIGN MESSAGING & SCOPE OF STRATEGIC POINTS NJ CAR has once again teamed up with award-winning public relations firm Moxie Strategies on a broad multimedia campaign to highlight all the benefits dealers offer consumers. Moxie’s success in helping with last year’s campaign to pass the Motor Vehicle Open Recall & Fair Compensation Act made them a natural choice for this year’s proactive messaging. The mission of the campaign’s first phase is to demonstrate the franchise model as the system that is most affordable, consumer-friendly, and economically trustworthy. The second phase — expected to launch later this year — will showcase the problems direct sales poses for competition, pricing, access to service, and accountability at a local level. The breadth of this public relations campaign rests on four strategic pillars: 1. Clearly defining the benefits of the franchise system vs the pitfalls of the direct sales model 2. Validating the franchise model through credible, third-party endorsements 3. Emphasizing the negative consequences of direct sales at the local level 4. Using consumer-facing messaging to capture the attention of legislators 7 NEW JERSEY auto retailer
STRATEGIC TARGETING THROUGH PHASES Phase One of this campaign puts faces and names to our “value of the franchise system” message in an effort to impact public opinion to increase the influence of the Coalition’s legislative advocacy. In displaying the real-world benefits of the franchise model to New Jersey consumers, the campaign will illustrate repeatedly to our State legislators positive examples of local dealers showcasing the span of their impact on local communities. In this article, I have included one of the campaign’s static ads, and I encourage you to view all the marketing pieces on the campaign landing page. The campaign also contains a 30-second video featuring NextGen member Megan Long with Long Automotive Group currently running on social media, several websites that are popular with our elected officials, and on Optimum cable network. Phase Two of the campaign will sharply contrast the benefits of the franchise system with the negative impact of the direct sales model. Building off the success of last year’s recall bill campaign, previously identified key policymakers and industry influencers will be targeted specifically in an effort to boost this campaign’s effectiveness. SUPPORT THE CAMPAIGN ON SOCIAL MEDIA NJ CAR has established itself as a thought leader on behalf of all franchised new car and truck dealers in New Jersey. The Coalition launched this campaign to benefit our nearly 530 franchised dealerships. Now it’s our turn to step up and help scale the reach of this indispensable public relations campaign by sharing the posts and ads found on social media. We all stand to benefit from the work NJ CAR has set in motion. Let us take advantage of the opportunity set before us and, together, we will thrive — long into the future. See the full landing page of NJ CAR’s public relations campaign at njcar.org/advocacy/localmatters. https://www.njcar.org/advocacy/localmatters/ 8 NEW JERSEY auto retailer
NADA DIRECTOR’S MESSAGE NADA Advocacy Update by RICK DeSILVA, JR., Director for New Jersey, NADA NADA continues to advocate aggressively on issues critical to the automotive retail industry. This article covers the latest updates on these issues. Please contact me with any questions at rdesilva@libertycarsnj.com. SO-CALLED “RIGHT TO REPAIR” LEGISLATION Earlier this year, the House Energy and Commerce Committee passed the Motor Vehicle Modernization Act, including the “REPAIR Act” (H.R. 1566). The entire bill was stripped down to three provisions that NADA supported: codifying the 2014 light-duty and 2015 heavy-duty truck Memorandums of Understanding, and an FTC study on this issue, due in 2030. Thanks to NADA’s grassroots advocacy, the committee withdrew its problematic draft of the “REPAIR Act” and replaced it with a significantly scaled-back version. The bill preserves the current repair system without introducing new liabilities on dealers, opening warranty and recall work to third parties, or threatening state franchise law. NADA anticipates “right to repair” supporters will try to restore the dropped language when the bill moves to the House floor. CHINESE OEMS’ ENTRY INTO THE U.S. AUTO MARKET On May 28, NADA and other auto industry groups met with high-ranking officials in the National Security Council to advocate for maintaining barriers to the entry of Chinese OEMs into the U.S. market. In mid-May, Reps. John Moolenaar (R-Mich.) and Debbie Dingell (D-Mich.) introduced the “Connected Vehicle Act” (H.R. 8730) as the House companion to the Senate version (S. 4429) introduced in April by Sens. Bernie Moreno (R-Ohio) and Elissa Slotkin (D-Mich.). The bill would prohibit the import, sale, and operation of vehicles manufactured in China or any other country of concern and ban the use of Chinese-developed connected-vehicle technologies — such as software and data systems — on American roads. NADA is monitoring the potential for Chinese automakers to enter the U.S. market and the need for appropriate government barriers due to concerns about unfair competition, consumer privacy, and national security. NADA has sent letters to the Trump administration, urging them to take decisive action to prevent their entry into the U.S. 9 NEW JERSEY auto retailer
NADA also supports the policy behind the “Connected Vehicle Security Act of 2026”, and is working with sponsors to define the legislation’s scope. CATALYTIC CONVERTER ANTI-THEFT LEGISLATION Supported by NADA, the bipartisan “PART Act” (H.R. 5221) was not included in the “Motor Vehicle Modernization Act”, which passed the House Energy and Commerce Committee on May 21. Despite broad bipartisan support, the “PART Act” was dropped from the markup due to unrelated legislative debates within the House Energy and Commerce Committee. NADA continues to advocate for passage of the “PART Act”, either as a stand-alone bill or as a floor amendment to the Surface Transportation Reauthorization bill. USMCA NADA recently signed a letter to U.S. Trade Representative Jamieson Greer, urging the government to renew the United States-Mexico-Canada Agreement (USMCA). NADA joined a coalition of industry associations and organizations expressing support for the extension of the USMCA. The coalition asserted that the free trade deal is crucial for U.S. vehicle production to remain competitive with Asia and Europe. The USMCA is undergoing its first six-year review, which requires each of the three countries to confirm whether they wish to renew the pact. It also explains that U.S. production and supply chains are built on trillions of dollars in long-term investment, refined over years to efficiently comply with the USMCA’s rigorous framework. In July 2026, the three countries will hold a joint review to assess the agreement’s performance and determine its future. If all parties agree to renewal, the agreement will remain in force for another six years, with a review in 2032. The agreement could enter an annual review period if renewal is delayed or denied. It’s also possible that one or more countries could withdraw, opening the door to a return to bilateral arrangements. FTC ADVERTISING GUIDANCE NADA is continuing to engage with the Federal Trade Commission (FTC) to provide education and guidance on dealer advertising. The FTC has stated that price transparency across all industries, including auto sales, is a priority of the Trump administration and plans to issue FAQs soon to address dealer questions regarding advertising practices. EPA REPEAL OF BIDEN-ERA GHG STANDARDS Despite legal challenges, the final rule repealing the unworkable Biden-era greenhouse gas standards took effect on April 20. After the final rule was announced, NADA and ATD released a statement emphasizing that the new rule would help make vehicles more affordable; expand consumer choice; and increase ownership of newer, safer, cleaner cars and trucks. There are two sets of standards that regulate fuel economy: the EPA’s GHG standards (revoked in March) and NHTSA’s CAFE standards (still in place). Currently, NHTSA is revising its CAFE standards. NADA supports lowering CAFE standards to a level the market can bear. SONY HONDA/AFEELA Regarding Sony Honda Mobility (SHM)’s attempts to circumvent franchise laws to sell their Afeela brand: 1. SHM has announced it was canceling the development and North American launch of its first two EVs — the Afeela 1 and an SUV variant — and it would scale back operations. 2. A Los Angeles court overruled SHM’s motion to dismiss the lawsuit filed by the California New Car Dealers Association (CNCDA), accusing SHM of violating state franchise laws. In August 2025, CNCDA sued American Honda Motor Co., Sony Honda Mobility, Inc., and Sony Honda Mobility of America, Inc. for violating California franchise laws by competing directly against their Honda and Acura franchisees with the Afeela brand. The recent court ruling allows the lawsuit to proceed. It is unclear how the cancellation of SHM’s vehicle launch will affect the CNCDA lawsuit. The cancellations are part of a broader cooling in the EV market and may signal deeper strain in the partnership. VOLKSWAGEN/SCOUT Regarding Volkswagen/Scout lawsuits: 1. A federal court denied Volkswagen/Scout’s motion to dismiss the CNCDA lawsuit alleging illegal competition. 2. Two dealers filed a class-action lawsuit against Scout Motors, Scout Motors Sales, LLC, Volkswagen Group of America, and Volkswagen AG in Virginia. By allowing the CNCDA case to move forward, the court’s decision strongly supports the franchise dealers’ position that Volkswagen/Scout is unlawfully competing with its own dealers, and depriving customers of the competitive benefits of the franchise system. As a class-action lawsuit, the filing in Virginia automatically covers every Volkswagen dealer in the U.S. This lawsuit alleges contract violations in contrast with other lawsuits against Volkswagen/Scout, based on alleged franchise law violations. Neither NADA nor the Virginia Automobile Dealers Association (VADA) is involved with the class-action suit. NADA opposes Scout’s efforts to circumvent state franchise laws and will continue to work with ATAEs, as well as state and metro dealer associations to determine the best path forward to enforce the law, standing behind Volkswagen and Audi dealers. 10 NEW JERSEY auto retailer
by JAKE RENNER, Vice President of Marketing, ACV Auctions The new vehicle market is softening. Cox Automotive projects new vehicle sales in the U.S. will fall 2.4% in 2026 to approximately 15.8 million units, driven by affordability headwinds, tariff-driven price increases, and the expiration of federal EV incentives. When new car traffic slows, dealers lean harder on used, and that’s exactly when disciplined used car operations separate the profitable stores from the ones chasing their tails. The problem is that most dealers already have a margin leak hiding in plain sight — aged inventory. WHAT SITTING UNITS ARE ACTUALLY COSTING YOU Every vehicle on your lot that hasn’t sold is burning money. Industry data puts average used vehicle holding costs at $50-$85 per day when you factor in floorplan interest, insurance, depreciation, and facility overhead. According to WardsAuto, the average turn time has climbed to over 50 days — that’s a 23% increase from 2023. Run the math. At $65 per day, a unit sitting for 50 days costs you $3,250 before you’ve written a deal. That’s money coming directly out of your front-end. On a used vehicle where your target gross might be $2,500-$3,500, you’re essentially working to break even. THE FIX STARTS BEFORE THE VEHICLE HITS YOUR LOT The most durable solution to aged inventory isn’t aggressive repricing or running units through a physical auction every 90 days. It’s smarter acquisition and more precise pricing from day one. The dealers consistently protecting front-end gross are sourcing with the end in mind, they’re not buying based on gut instinct or what they paid last quarter. They’re evaluating each vehicle against live market data, actual condition, and their own store’s historical performance. Pricing works the same way. Setting your ask based on outdated market averages is a recipe for aged inventory. Pricing to your store’s actual demand curve, accounting for condition, competition, and what buyers in your market are paying right now keeps units moving. WHEN YOU NEED TO WHOLESALE: SPEED = GROSS Even the best run stores end up with inventory that doesn’t fit. When it’s time to wholesale, the instinct to run units through a traditional physical auction is understandable, but a 14-day auction cycle on a unit already costing you $65 a day is an expensive habit. A 48-hour digital auction delivers the same competitive bidding environment without the waiting, the transport risk, or the holding cost bleed. HOW ACV HELPS ACV MAX gives dealers sourcing and pricing intelligence built for exactly this kind of disciplined approach — live market data, condition-adjusted valuations, and store-level performance insights that help you buy right and price right from acquisition through retail. Moreover, when it’s time to move units that don’t fit your strategy, ACV’s Guaranteed Sale puts your inventory in front of 10+ active bidders per vehicle, giving you real competitive demand with a guaranteed floor. No risk, all the money, and a timeline that doesn’t cost you another week of holding costs. In a softer market, the dealers who win aren’t the ones reacting fastest. They’re the ones operating with the most discipline, and that starts with never letting the clock run against you. For more information, please visit our website at acvauctions.com or contact us at (732) 908-0221 | jsatkowski@acvauctions.com. How Aged Inventory Quietly Drains Your Front-End Gross 12 NEW JERSEY auto retailer
by MICHAEL DACHILLE, Managing Director, AutoTrieve Document Scanning Services Automotive dealerships generate enormous volumes of paper documents every day, including repair orders, sales contracts, finance agreements, warranty paperwork, HR files, compliance records, and customer documentation. While many dealerships rely heavily on their dealership management system (DMS) for storage and retrieval, depending exclusively on a single platform can create operational, financial, and compliance risks. A professional service bureau scanning solution provides dealerships with a smarter, more secure, and cost-effective approach to document management. BENEFITS OF THE DUAL-BACKUP STRATEGY One of the greatest benefits of outsourced document scanning is the creation of a dual-backup strategy. Storing documents only within a DMS environment places all critical business records into one system. If a dealership experiences system outages, vendor disruptions, cyberattacks, accidental deletions, or data corruption, the access to important records can become limited or unavailable. A service bureau scanning provider creates an independent digital archive, ensuring dealerships maintain access to critical records outside of the DMS platform. This “not putting all your eggs in one basket” approach strengthens disaster recovery, business continuity planning, and independence from the DMS. Service bureau scanning also delivers superior quality control and document verification processes. In-house scanning often becomes a secondary responsibility for dealership staff already focused on customer service, vehicle sales, or service operations. This can lead to incomplete scans, missing pages, indexing errors, or inconsistent file naming practices. Professional scanning providers utilize trained specialists, standardized workflows, barcode recognition, image enhancement, and multi-step verification procedures to ensure documents are accurately captured and indexed. Quality assurance reviews confirm documents are complete, legible, and properly categorized. OBTAIN LONG-TERM FLEXIBILITY, SAVINGS, AND ELEVATED SECURITY Another major advantage is integration flexibility. Modern service bureau solutions can seamlessly integrate scanned records into virtually any DMS platform while simultaneously maintaining secure external backups. Documents can be indexed by RO number, VIN, customer name, stock number, employee ID, or deal number, making retrieval fast and efficient across departments including sales, service, accounting, finance, and human resources. Cost reduction is another compelling reason dealerships choose outsourced scanning services. Maintaining an internal scanning operation requires labor, equipment, software licensing, maintenance, training, and ongoing quality management. Dealership employees spending time scanning and indexing documents are also being pulled away from revenue-generating responsibilities. Service bureaus leverage high-volume production equipment and specialized staff to process documents more efficiently and at lower overall cost. By reducing manual labor, minimizing storage space, and improving retrieval speed, dealerships often acquire significant operational savings. Additionally, digitized and verified records improve compliance readiness. Automotive dealerships constantly face increasing regulatory requirements surrounding customer privacy, employment documentation, financial records, and retention policies. Professionally scanned and indexed records simplify audits, reduce lost-document risks, and improve document retention consistency. GET INDEPENDENT BACKUP PROTECTION In today’s fast-moving automotive environment, dealerships need more than simple document storage. They need accuracy, redundancy, security, compliance, and operational efficiency. A professional service bureau scanning solution complements the dealership’s DMS by adding independent backup protection, advanced quality controls, verified indexing, and measurable cost savings. The result is a more secure and efficient document management strategy that supports long-term dealership growth and operational reliability. For more information, please visit our website at autotrieve.com or contact us at (201) 820-7419 | michaeld@mgcimaging.com. Why Dealerships Need Independent Document Scanning Solutions 13 NEW JERSEY auto retailer
Navigating the 2026 FTC Dealer Advertising Crackdown by MARK SANBORN, Regulatory & Compliance Counsel, ComplyAuto In March 2026, the Federal Trade Commission sent warning letters to 97 auto dealership groups nationwide about “illegal” advertising practices, putting the industry on notice that advertised vehicle prices must reflect the true price consumers are required to pay. This is the most aggressive step taken by the FTC with respect to dealer advertising, and combined with several recent high-profile (and high-dollar-penalty) enforcement actions, it indicates that the FTC plans to take further action to enforce the law against dealers who do not reform their advertising practices immediately. A MUCH MORE AGGRESSIVE ENFORCEMENT POSTURE The FTC’s current focus is on whether the price advertised to consumers is the price they can actually pay to purchase the vehicle, excluding only required government charges such as tax, title, and registration. Advertisements that promote an attractive price but later add mandatory fees or products become enforcement targets. TOTAL PRICE MUST MEAN TOTAL PRICE While the FTC has detailed more than this, its clear focus is on price advertising. Dealers must ensure the most prominent advertised price includes all mandatory dealer-imposed charges, including doc fees, reconditioning, inspection, CPO fees, destination charges, market adjustments, and required accessories or add-ons. Every consumer should be able to purchase the vehicle for that total price, excluding required government charges. The FTC has clearly stated that this requirement preempts state laws, even where state law allows the exclusion of certain dealer fees, such as doc fees. This total-price standard applies across all advertising and sales channels, including VDPs, third-party listings, social media, email, direct mail, radio, etc. REBATES AND CONDITIONAL DISCOUNTS Since the advertised total price must be available to all consumers, conditional rebates or finance-contingent incentives may not be used to reduce the most prominent advertised price unless every consumer qualifies for that incentive. Dealers may, however, separately list conditional incentives with clear eligibility requirements. This avoids creating the impression that every customer can obtain a price that is actually available only to a subset of buyers. VEHICLE AVAILABILITY The FTC is also concerned that advertised vehicles may be unavailable when a consumer arrives at the dealership to purchase them. Sold vehicles must be promptly removed from dealer websites and third-party marketplaces. In-transit vehicles should be clearly identified near the vehicle description and price with an expected available date stated and should not imply immediate availability. OEM and co-op ads should also be reviewed. Even when content comes from an OEM or vendor, the dealership may face risk if pricing or availability claims do not meet these requirements. WHAT SHOULD DEALERS DO NOW? Dealers must ensure that all their ads are compliant with these practices and other federal or state advertising requirements. ComplyAuto’s Guardian advertising compliance software can help by automatically scanning ads and reviewing them for federal and state advertising issues — including unique New Jersey requirements — and flagging problems before they become enforcement concerns. Guardian also supports inventory compliance with recall monitoring, Buyers Guide automation, and vehicle privacy/data removal tools for trade-ins and loaners. Contact ComplyAuto today to learn more about Guardian’s limited-time low-price offer. For more information, please visit complyauto.com or contact NJ CAR Programs Coordinator Gail Caputi at (609) 760-2043 | gcaputi@njcar.org. 14 NEW JERSEY auto retailer
by CHRIS DONNELLY, Vice President, Donnelly Energy At Donnelly Industries, we see facility upgrades as more than construction or energy projects. For dealerships, they are investments in customer experience, service department performance, and long-term competitiveness. That’s especially true when it comes to EV infrastructure. While the initial “EV shock” has slowed in some areas of the market, the opportunity for dealers has not disappeared. EV adoption may continue to vary, but hybrid and plug-in hybrid vehicles are still creating new needs for dealership service departments. Dealerships that are prepared with the right infrastructure will be better positioned to serve these drivers as the market continues to evolve. BOOST CONSUMER CONFIDENCE AND PROTECT YOUR BOTTOM LINE Charging stations can help dealerships create a more convenient experience for plug-in hybrid and EV owners. Whether it’s a Level 2 charger that allows vehicles to charge during service or a DC fast charger that helps customers get back on the road more quickly, access to charging can support service visits, improve customer satisfaction, and demonstrate that the dealership is prepared for the future of transportation. Investing in charging infrastructure can help build confidence in a dealership’s ability to support newer vehicle technologies. For dealers who have been hesitant because of cost, available incentive opportunities may help make these upgrades more manageable. Incentive availability can vary by program, utility territory, charger type, and project scope. These programs can help businesses offset eligible costs tied to infrastructure improvements. Now may be an important time to review available support for EV charging infrastructure and related facility upgrades. REVIEW CURRENT INFRASTRUCTURE UPGRADE INCENTIVE PROGRAMS Beyond EV chargers, New Jersey is one of the few states that offer significant incentives for other building infrastructure upgrades. Through eligible utility programs, businesses may be able to complete qualifying upgrades with near-zero upfront capital through New Jersey utilities’ On-Bill Repayment model. Instead of paying the full project cost upfront, the approved project balance can be repaid over time through the utility bill. This can be especially useful when planning service department lighting, HVAC, and other energy efficiency upgrades. Improved lighting can improve visibility, safety, productivity, and utility costs while HVAC upgrades keep customers and staff comfortable. When paired with EV charging planning, these improvements become part of a broader facility strategy to support future growth and meet customer needs. THE BIGGER PICTURE The main takeaway is that EV and other energy infrastructure upgrades should not be viewed as standalone expenses. They should be considered part of a broader strategy to modernize dealership facilities, support service operations, and meet customers where the market is heading. Donnelly Industries brings construction and energy expertise together to help dealerships evaluate their facilities and plan practical improvements. Through Donnelly Energy, our team identifies available utility incentives; supports energy efficiency upgrades; assists with applications and paperwork; and manages projects from start to finish. Since 2024, Donnelly Energy has helped upgrade several NJ CAR member facilities, securing over $1.5 million in upfront incentives and reducing annual CO2 emissions by an estimated 358 tons. For dealers considering lighting upgrades, EV charging infrastructure, or broader facility improvements, Donnelly Energy can help determine which options are available and explain how to move forward strategically. For more information, please visit our website at donnellyenergy.com or contact us at (862) 400-6106 | cdonnelly@donnellyind.com. Energy Infrastructure Upgrades A Competitive Edge for New Jersey Dealerships 15 NEW JERSEY auto retailer
Automotive Dealerships Are Cybercrime Targets by BRAD BONO, Chief Executive Officer, Helient Technologies Any type of business can find itself the victim of cybercrime, but automotive dealerships have been particularly targeted in recent years, likely due to the amount of data dealerships handle. According to CDK Global’s State of Dealership Cybersecurity in 2025, “one in five dealerships reported being targeted in 2025.” Notably, CDK itself was the target of a much-publicized cyber incident in 2024, in spite of ongoing threats from cyber criminals. Fortunately, there are preventative actions your dealership can take to protect itself and its assets. Here are three immediate steps your dealership can consider: 1. Audit Your Current IT Security: The first step toward safeguarding your dealership against cybercrime is to assess your current security situation. For most dealerships, this means bringing in an outside cybersecurity specialist to analyze your current practices. A good consultant can inspect your IT infrastructure to look for security holes, including any outdated protocols that leave you exposed to cyber threats. Automotive dealerships handle just as much sensitive customer data as a bank or a hospital, so an assessment of your current security is a must-do first step. 2. Secure Your Data: Whether you’re working off localized files or the cloud — likely both — the security of your customers’ data is only as strong as the network you’ve built around it. A trained cybersecurity consultant can make sure your dealership’s encryption, firewalls, and WiFi networks are up to date against the newest threats. This can include monthly security patching and updates to anti-virus as well as intrusion prevention and endpoint security. 3. Train Your Employees: You must train your team to be aware of the latest and most common cybercrime tactics. This can include training against malware and password attacks via phishing, but it could also include preparation against more sophisticated AI-impersonation attacks that have been predominant as of late. Employee training is important for all parts of your business. Just as your marketing team needs to be aware of suspicious inquiries, your IT department needs to be on the lookout for unusual network activity. Consider quarterly sessions with your team to stay on top of the latest tactics to make sure that new hires are up to speed on your security-first protocols. At Helient, we’re cybersecurity experts. We believe it’s important for your dealership to have a qualified Managed Security-Solutions Provider (MSSP), with specific expertise in dealership security on your team. Helient has been an MSSP for more than 15 years, and we work with more than 70 dealerships, giving us the experience needed to assist with ongoing efforts and secure dealerships against cyber threats. For more information, please visit our website at helient.com or contact us at (856) 470-1369 | bbono@helient.com. Natural Gas | Electricity Dedicated Support & Account Management Local Market Expertise & Insight Budget Certainty & Pricing Flexibility Tired of Unpredictable Utility Costs? Jay Thomson | 908.239.9644 jthomson@spragueenergy.com Rate Surprises Shouldn’t Cut Into Your Bottom Line Take Control of Your Energy Costs Today. 16 NEW JERSEY auto retailer
Spotting the New Wave of Fraud Before the Car is Stolen by DOUG FUSCO, Managing Partner, Informativ NJ CAR received several reports earlier this year from dealers describing attempted and completed vehicle thefts. They’re not happening in the middle of the night. They’re happening in your F&I office by people who look like legitimate buyers. THE PROBLEM Fraud targeting dealerships falls into four categories: 1. Identity Fraud: Uses a real person’s stolen information (i.e., SSN, address, DOB, etc.) to impersonate them on a credit application. The victim may not know for weeks or months. 2. Synthetic Identity Fraud: Is the construction of an identity using real and fabricated data (i.e., a real Social Security number, often a child’s or deceased person’s, etc.) with an invented name. With the help of data breaches and AI, synthetic fraud is the fastest-growing fraud type. 3. Document Fraud: Involves presenting counterfeit or altered driver’s licenses and supporting stipulations. Modern fakes can be purchased online for as little as $15. 4. Internal Fraud: Involves dealership insiders who manipulate customer data to benefit themselves or a customer. THE FRAUDSTER’S PLAYBOOK Most dealership fraud follows a recognizable pattern. The fraudster arrives at a busy time, is pleasant, has documents, and doesn’t negotiate aggressively. They know dealership workflows and that a clean credit profile with matching ID are often enough to get the keys. The goal is to get off the lot before anyone looks too closely. They may also demand a remote sale and delivery to a generic location like a coffee shop or an office building. BUILD A RED FLAG CHECKLIST FOR YOUR TEAM Standard credit verification isn’t enough. F&I managers need a checklist that’s practiced and enforced to flag deals that look clean but feel wrong. Consider flagging any deal where: • License address doesn’t match the address on the credit application and the applicant can’t explain why • Customer is unusually indifferent to interest rate, term length, or monthly payment • Credit profile is thin, but the score is high (a hallmark of synthetic identity) • License barcode data doesn’t match the front of the card when scanned • Customer is vague about employer details, pay stubs, or references • Deal involves a high-value vehicle with minimal negotiation and a desire to move fast • Stipulations are produced immediately and almost too cleanly No single flag is a red light, but two or more together should pause the deal entirely. THE ROLE OF TECHNOLOGY Even the best-trained teams can’t catch what they don’t check. The most effective dealerships are using technology to check for fraud throughout the sale — not just once — and more importantly, to enforce a process where fraud checks and compliance are required. With Informativ, multiple fraud checks are enforced by its platform that collects, creates, and stores customer data digitally and compliantly. It’s built directly into the sales-to-F&I workflow, so there’s no room for a rushed employee to skip fraud checks and compliance requirements. The dealers who’ll avoid fraud losses this year aren’t more careful — they just have better systems that enforce multiple fraud checks throughout the sales process. For more information, please visit our website at informativ.com/njcar or contact us at (800) 448-0183 | hello@informativ.com. 17 NEW JERSEY auto retailer
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F&I as the Profit Anchor in an AffordabilityDriven Market by MEGAN KENARY, Eastern Area Sales Director, JM&A Group New Jersey dealers are operating at the center of one of the most affordability-sensitive environments in recent memory. Vehicle prices, interest rates, insurance costs, and everyday household expenses are all putting pressure on customers before they ever enter the F&I office. For many buyers, the question is no longer simply, “Can I afford this vehicle?” It’s, “Can I afford everything that may come with owning this vehicle?” That’s why F&I continues to play such an important role inside the dealership. It’s a critical profit anchor, but it’s also one of the most important places where a dealership can help customers better understand and manage the total cost of ownership. The strongest F&I departments are not built on product presentations alone. They’re built on education, consistency, and customer-focused conversations. Protection products shouldn’t be positioned as unnecessary add-ons. They should be explained as tools that can help customers protect their budget from unexpected costs after the sale. F&I ISN’T “ADD-ONS” — IT’S CONSUMER PROTECTION A vehicle service contract, for example, is not simply coverage. It can help protect a customer from a repair expense that may disrupt their monthly finances. Tire and wheel protection is not just another option on a menu. For many New Jersey drivers dealing with traffic, road hazards, potholes, and seasonal driving conditions, it can be a practical way to manage risk. GAP, key replacement, maintenance, appearance protection, and other solutions can all be part of a broader conversation around financial confidence and ownership experience. To make these conversations effective, dealers need to train their teams differently. F&I managers should be coached to connect product value to real-life customer concerns. That starts with asking better questions. How long does the customer plan to keep the vehicle? How many miles do they drive each year? How would an unexpected repair impact their household budget? Do they prefer to plan ahead for ownership costs or handle expenses as they come? Those questions move the conversation away from selling and toward advising. They also allow the F&I manager to present protection in a way that is relevant to the customer’s needs, driving habits, and financial priorities. WHAT TRAINING SHOULD LOOK LIKE Training should include roleplay, live coaching, and consistent reinforcement. It is not enough for an F&I manager to know the features of a product. They need to be able to communicate the value clearly, compliantly, and confidently. They need to understand how to slow the conversation down, explain options in plain language, and help customers make informed decisions without feeling pressured. For dealers, this approach protects profitability while improving the customer experience. When customers understand how protection products may help them manage future expenses, they are more likely to see value in the F&I process. That builds trust, strengthens retention, and reinforces the dealership’s role as a long-term partner. ESTABLISH A MORE CONSISTENT F&I EXPERIENCE As an endorsed F&I provider, JM&A Group partners with dealers to help strengthen this process through customer-focused F&I products, dealership training, in-store development, reporting, and ongoing support. Our teams work shoulder-to-shoulder with dealers to help elevate performance throughout the dealership, increase profitability, and create a more consistent F&I experience centered around today’s customer needs. For more information, please visit our website at jmagroup.com or contact us at (215) 301-7107 | megan.kenary@jmagroup.com. 19 NEW JERSEY auto retailer
Protecting Margin in a Softer Market Why Payments Deserve a Second Look by AMBERLY ALLEN, Managing Partner, Priority Commerce Automotive THE MARKET IS FORCING A RETHINK When unit volume is down, every controllable cost matters, and credit card processing is one that dealers often overlook. Front-end gross is under pressure. Unit volume is down. The easy money from the post-pandemic run has largely dried up. Dealers who are holding their margins right now are doing it by looking inward at costs they can actually control. Payment processing is one of the most overlooked. MERCHANT FEES AREN’T FIXED. THEY’RE MANAGEABLE. For years, credit card fees have been treated like utilities — something you pay and don’t think much about. However, as transaction sizes grow and more customers pay by card, those fees are adding up. Modern payment platforms give dealers tools to manage them: • Standardized checkout across Sales, Service, and Parts • Better routing and authorization performance • Reporting that shows exactly where fees are hitting • Integration with your DMS and no duplicate workflows Small improvements compound. Over time, they add up to real money. SURCHARGING: TURNING COST INTO “FOUND MONEY” Surcharging lets dealers pass a portion of credit card fees to customers who choose to pay by card. In a tough market, that can mean recovering thousands of dollars per rooftop per month. That’s margin that would otherwise be gone. Surcharging isn’t a switch you flip. It requires structure. NAVIGATING NEW JERSEY’S RULES New Jersey permits surcharging, but under strict conditions. To stay compliant, dealers must: • Disclose the surcharge clearly before the transaction • Itemize the fee on the receipt • Stay within allowable limits (not to exceed the actual cost of acceptance) • Comply with card brand rules, which can differ from state law and change over time Manual or inconsistent processes create real risk, especially in a high-volume dealership environment. If your staff can’t explain the surcharge confidently at the point of sale, you’ll hear about it in your CSI scores. Compliance isn’t just a legal matter. It’s a customer experience issue. THE SERVICE DRIVE: YOUR BEST ABSORPTION TOOL When sales slow, Service and Parts carry more weight. That’s where dealers protect cash flow, and payment technology can help. Mobile payments, digital service authorizations, and remote checkout tools reduce friction at every step. Customers move through faster. Staff handles more throughput without adding complexity. Absorption rates — critical when front-end volume is soft — improve. PAYMENTS ARE A BUSINESS LEVER, NOT A BACK-OFFICE FUNCTION The dealers navigating this environment most effectively aren’t just cutting costs; they’re finding margin in places they hadn’t looked before. Payment is one of those places. Priority Commerce Automotive brings a dealership-focused approach to payments, helping dealers treat merchant fees as a manageable expense, stay compliant with surcharging rules, and leverage technology across the store to protect margin when it matters most. For more information, please visit our website at prioritycommerceautomotive.com or contact us at (214) 683-4088 | amberly.allen@prth.com. 20 NEW JERSEY auto retailer
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