2025 ISSUE 4 THE OFFICIAL PUBLICATION OF THE VIRGINIA AUTOMOBILE DEALERS ASSOCIATION Virginia Dealers Shifting Gears for Good
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©2025 Virginia Automobile Dealers Association (VADA) | The newsLINK Group LLC. All rights reserved. Virginia Auto Dealer is published four times per year by The newsLINK Group LLC for VADA 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 VADA, 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. Virginia Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of VADA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. CONTENTS 2025 PUB. 6 ISSUE 4 A MESSAGE FROM PRESIDENT AND CEO DON HALL 4 Investing in Education Unlocking the Full Potential of the Parts Department 6 Living in the Digital Age By Barrie Charapp Beaty, Charapp & Weiss LLP, with Brad Miller, Chief Executive Officer/Chief Legal Officer, ComplyAuto 8 VADA Live: Exclusive Coverage on Artificial Intelligence 9 New Resources on Processing Fees 10 Virginia Dealers Shifting Gears for Good 15 VADA 2026 16 Ransomware A Response Plan Is Essential for Auto Dealers By Bank of America 18 Maximize Your Dealership’s Warranty Service Reimbursements By Truist Dealer Services, with special contribution from Jason Allen, Shareholder, Bass Sox Mercer, Attorneys at Law 20 Leadership 21 Thank You VADA Allied Members 22 Thank You VADA Program Partners 24 VADA Dealer Day 2026 24 Calling All Young Retail Auto Leaders for NextGen Virginia! 25 VADA PAC United as One for the Franchise System 26 Driving Virginia’s Economy 10 6 18 vada.com 3
Investing in Education Unlocking the Full Potential of the Parts Department Recently, I had the opportunity to step into the learner’s shoes alongside rising dealers, general managers and fixed-ops managers at the NADA Academy, where our class, N479, took an in-depth journey into the world of dealership parts departments. Over four decades into my career, it was a refreshing reminder that growth has no expiration date. All too often, sales and service get center stage in our industry, while the parts department is reduced to a footnote. That’s a misstep. After all, the association represents not just the “dealer,” but every single member of the team. As our instructor Mark Michalski put it, the parts department is often the most overlooked and misunderstood area in most dealerships. But it’s far more than merely supporting service operations — it stands as a profit center, offering opportunities from customer-paid work to accessories, apparel and performance upgrades. A well-run parts operation elevates both revenue and customer satisfaction. What’s truly changed is how we measure success. Thanks to advanced tools and analytics, dealers can now glean precise insights from their numbers, benchmark against peers and uncover missed opportunities. When well-managed, the parts department can operate with the same accuracy and intensity we bring to sales and service. Yet, the training also surfaced where we’re falling short. In a “mystery call” exercise, we discovered that only one out of 27 calls to parts departments resulted in capturing basic contact details. That’s a wealth of lost opportunities. Meanwhile, aftermarket players are using tech — like license-plate lookup — to streamline transactions. Dealerships have access to that same tech and must adopt it to remain competitive. The parts counter also holds a unique advantage: expertise, OEM warranties and guaranteed fit — especially valuable in an age when more customers begin their shopping online. A well-handled parts interaction doesn’t just close one sale, it builds loyalty and drives repeat business across service and future purchases. So, I’ll ask again: When was the last time you gave your parts department the attention it deserves? Education can reignite our commitment — whether you’re a newcomer or a seasoned veteran. Programs like NADA Academy offer opportunities to sharpen skills, renew dedication and better serve both your customers and your team. For me, spending time as a student once again reinforced a simple truth: The future of our industry relies on our ability to keep learning and to honor every department’s role in that mission. To watch a video of Don’s message, scan the QR code. www.youtube.com/watch?v=wYBsiNsUuwE A MESSAGE FROM PRESIDENT AND CEO DON HALL 4 Virginia Auto Dealer
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?® JL Winslow, jl.winslow@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.
SUMMARY A recent federal court ruling has set a precedent that could expose dealerships to litigation in states where they don’t have a physical presence. The case, Briskin v. Shopify Inc., established a “traveling cookie” rule, meaning a company can be subject to jurisdiction in any state where a consumer’s device with an installed tracking cookie travels. This decision, combined with the increasing number of states passing strict data privacy laws like the new Maryland Online Data Privacy Act (MODPA), means dealerships must ensure their websites are compliant with a wider range of state laws to avoid potential penalties. GET THE LATEST Brick-and-mortar dealerships are the heart and soul of the dealership model, but dealerships are living in a digital age. Recently, the United States Court of Appeals for the 9th Circuit issued a decision that could impact dealerships nationwide and how dealerships comply with state data privacy and perhaps even other state consumer protection laws. One recent case highlights the issues courts are struggling with in an age where online commerce is the norm. In the case Briskin v. Shopify Inc., Briskin, a California resident, purchased clothes from a California merchant’s website powered by Shopify’s e-commerce platform. Shopify Inc. is a Canadian corporation headquartered in Ottawa, with two subsidiaries wholly owned in the United States as Delaware corporations. Shopify’s software automatically installed tracking cookies on Briskin’s phone, gathering Briskin’s personal data without his knowledge or consent. Plaintiffs brought claims under California privacy and other state laws. Shopify argued that jurisdiction was improper and that Briskin unilaterally acted on his own, which resulted in the taking of his personal data, not through any intentional acts of Shopify itself. The 9th Circuit Court found that California had jurisdiction over the case and that Shopify violated California state law by collecting, maintaining and selling Briskin’s personal data, even if Shopify did not intend to obtain Briskin’s personal data specifically. In essence, the court created a new “traveling cookie” rule: When a company attaches cookies to a person’s electronic device, jurisdiction attaches wherever that person happens to be and wherever that person happens to travel thereafter. The 9th Circuit has ruled that interactive platforms, such as websites that are available nationwide, and that automatically monitor or gather the personal data of interacting users, are expressly aiming wrongful conduct towards other states that have stricter state consumer privacy laws. This decision could set a precedent for the concept that dealerships are subject to jurisdictions in California, or other states with stricter consumer privacy and related laws, simply by virtue of a website that interacts with consumers from those states. Dealerships may be roped into litigation simply based on the fact that a consumer accessed their website/advertisement, cookies were automatically attached to the consumer’s device without the consent of the consumer and personal data was taken and/or sold in violation of a state’s privacy laws. Living in the Digital Age By BARRIE CHARAPP BEATY, Charapp & Weiss LLP with BRAD MILLER, Chief Executive Officer/Chief Legal Officer, ComplyAuto 6 Virginia Auto Dealer
Notably, the primary claims in the Briskin case were brought under the California state wiretapping law — CIPA — that allows for statutory damages related to cookies and other tracking technologies loaded onto a website without adequate consumer consent. The same jurisdictional theories, however, could apply to state privacy laws like the CCPA and other state privacy laws. Not all states have restrictive privacy laws like California, but there are now 19 states with state privacy laws, including Maryland. The MODPA, signed into law on May 9, 2024, took effect on Oct. 1, 2025, and it grants Maryland residents broad privacy rights in the usage and collection of their personal data while imposing obligations and restrictions on businesses that conduct business in Maryland or target the residents of Maryland. Businesses, like dealerships, must conform to specific standards regarding the control and processing of Maryland consumers’ personal data. WHAT ARE DATA PRIVACY LAWS? Numerous states have passed data privacy laws that could impact your dealership. Living in the digital age, most of you have traveled to a website recently where you had to click on whether to allow cookies or reject them. Such banners are used, in part, to comply with data privacy laws. Some states have much stricter laws than others, but dealers need to be aware of the laws that impact their dealership. Compliance companies, like ComplyAuto, assist in making sure your dealership is compliant. In Maryland, the MODPA, which is applicable to persons and legal entities conducting business in Maryland or providing products/services targeted to the residents of Maryland AND during the previous year, either (1) controlled or processed at least 35,000 consumers’ personal data (excluding personal data controlled or processed for the purpose of completing a payment transaction) OR (2) controlled or processed the personal data of at least 10,000 consumers and over 20% of the entity’s gross revenue is attributable to the sale of personal data. Note that most dealers will meet this customer data threshold. Under MODPA, consumers are granted the right to: 1. Confirm whether a controller, which is a business/individual determining the purpose and means of processing personal data, is processing their personal data, and consumers have the right to access it. 2. Correct inaccuracies in their personal data. 3. Require the controller to delete personal data unless retention of the data is required by law. 4. Obtain a copy of their personal data from a controller processing their personal data in a readily usable format allowing the consumer to easily transmit the data to another controller. 5. Obtain a list of the categories of third parties to which the controller disclosed the consumer’s personal data. 6. Opt-out of the processing of personal data for the purpose of targeted advertising, the sale of personal data or profiling. Dealers subject to MODPA will be “controllers” and must establish a secure and reliable method for consumers to exercise the rights previously listed. Controllers must comply with consumer requests to exercise one of the above rights, responding no later than 45 days after they receive a request (plus a 45-day extension if it is reasonably necessary to complete the request due to complexity and number of requests). Controllers can reject a consumer’s request by informing the consumer no later than 45 days after the initial request, with justification for declining, as well as providing instructions for how to appeal the decision to decline. The MODPA provides a non-exhaustive list of requirements that dealerships must meet to adhere to the law, including but not limited to: 1. Limit the collection of personal data of a consumer to what is reasonably necessary and proportionate to provide a specific product or service requested by the consumer. 2. Establish, implement and maintain reasonable administrative, technical and physical data security practices to protect personal data confidentiality, integrity and accessibility. 3. Provide an effective mechanism for consumers to revoke their consent that is as easy as the mechanism by which the consumer provided consent initially. (The controller must then stop processing the consumer’s personal data no later than 30 days after receiving the request to revoke consent.) 4. Not sell sensitive data, process personal data in violation of state and federal laws prohibiting unlawful discrimination, and unless the consumer consents, a controller must not process personal data for a purpose that isn’t reasonably necessary to/ compatible with the disclosed purpose for which the personal data is processed. PENALTIES FOR VIOLATIONS Most privacy laws have penalties for violations, which can be very steep. For example, violations of MODPA are considered an unfair, abusive or deceptive trade practice, falling under the authority of Maryland’s Consumer Protection Act. Maryland has discretion in whether to initiate an action immediately or issue a notice of violation to the controller/processor if they determine that a cure is possible (if notice is issued, the controller/processor has at least 60 days to cure). MODPA violations can provide relief not limited to injunctive relief, civil penalties and attorneys’ fees. MODPA violators are subject to civil penalties not exceeding $10,000 for each violation. Repeat violators will be subject to fines not exceeding $25,000 for each subsequent violation. HOW DO DATA PRIVACY LAWS IMPACT DEALERSHIPS? Dealerships need to know the data privacy laws in the states they operate — but that is not all. First, many dealerships are located close to borders; for example, dealers in Virginia that often sell to Maryland consumers may also meet the requirements of MODPA. In addition, cases like Briskin and overbroad laws like the MODPA, which applies to businesses “providing products/services targeted to the residents of Maryland,” dealerships that do not operate in certain states could receive threatening letters from consumers or zealous attorney generals. Dealers must begin addressing any potential issues they have with collecting personal data through their websites and advertisements. Dealers should consult experts like ComplyAuto to ensure compliance with data privacy laws. vada.com 7
VADA Live: Exclusive Coverage on Artificial Intelligence Artificial Intelligence is shaking up every industry, and retail automotive is no exception. Over at VADA Live, our official podcast platform, we’ve been diving deep into the world of AI to understand its benefits, weaknesses and opportunities for dealers and their teams. Check out our latest videos on AI and much more at vada.com/live. PNC and PNC Bank are registered marks of The PNC Financial Services Group, Inc. (“PNC”). Bank deposit, treasury management and lending products and services, foreign exchange and derivatives products, bond accounting and safekeeping services, escrow services, and investment and wealth management and fiduciary services are provided by PNC Bank, National Association (“PNC Bank”), a wholly owned subsidiary of PNC and Member FDIC. Lending, leasing and equity products and services, as well as certain other banking products and services, require credit approval. ©2025 The PNC Financial Services Group, Inc. All rights reserved. PNC Dealer Finance Group | With a complete range of banking and financial services — and the support of our dedicated relationship management team — PNC’s specialized Dealer Finance group is committed to making a positive difference for your business. From floor plan and retail financing to treasury and wealth management, we can leverage our resources to deliver a flexible, custom-built solution that moves you forward financially. Shift Your Plans into Drive, Starting Today. Contact a PNC Relationship Manager today and put our Dealer Finance group to work for you. Daniel P. Cannaday VP Floor Plan & Commercial Financing 1 E. Pratt St. Baltimore, MD 21202 443-605-7334 daniel.cannaday@pnc.com CON LEND PDF 0125-0138-2616502 8 Virginia Auto Dealer
New Resources on Processing Fees Processing fees remain one of the most asked-about — and sometimes misunderstood — parts of the vehicle transaction. To help, VADA has created a new suite of resources for you and your customers. • A one-page information sheet you can download and share with staff or buyers. • An updated website with answers to common questions and background information you can point consumers to. Both are designed to help you explain the value of processing fees, the services they cover and the transparency requirements under Virginia law. Download the free one-pager and explore the full set of resources by scanning the QR code. vada.com/processingfees. vada.com 9
Virginia’s auto dealers aren’t just selling cars; they’re investing in the Commonwealth. We’re highlighting the positive impact auto dealers are making in their communities. From charitable giving to community service, these stories showcase how local dealerships go above and beyond to support their teams and neighborhoods. NELSON SUBARU PROVIDES BLANKETS OF COMFORT Nelson Subaru delivered cozy blankets to the Ravenel Oncology Center, where the incredible staff shared them with patients. RICHMOND FORD SUPPORTS LEMONAID CAMPAIGN Richmond Ford is supporting the Children’s Hospital of Richmond through this year’s Anthem LemonAid campaign. 10 Virginia Auto Dealer
ALEXANDRIA TOYOTA STANDS WITH AT-RISK YOUTH Alexandria Toyota sponsored the Latin American Youth Center’s annual gala, helping local youth navigate their path into adulthood. They strive to empower at-risk youth in the DMV so that they can thrive in transitioning into adulthood. Their programs cover social, academic and career needs! CMA’S VALLEY SUBARU SPONSORS YOUTH BASEBALL TEAM CMA’s Valley Subaru is empowering young athletes by sponsoring the Stuarts Draft 8u Baseball Team — a home run for the community! ALEXANDRIA TOYOTA RACES TOWARD AUTISM AWARENESS Alexandria Toyota continued their support of the Active for Autism 5K, sponsoring the event for the third year in a row. CMA’S COLONIAL CHEVROLET COLLECTS CANS THAT COUNT CMA’s Colonial Chevrolet collected canned goods for the Colonial Heights Food Bank as part of the “Cars and Cans Moving Lives Forward” challenge. Director Warren Hammonds calculated that between the cans and cash, they would be able to provide 11,000+ meals for the local community. Great job, team. vada.com 11
RICHMOND FORD CAMPAIGNS AGAINST DRUNK DRIVING Richmond Ford is partnering with Mothers Against Drunk Driving (MADD) through their Driving Change campaign to help end drunk driving and keep roads safe. This partnership is more than just a donation — it’s about saving lives right in the Richmond community. For every vehicle sold at any Richmond Ford dealership this past August, a portion went directly to support MADD Virginia’s life-saving mission to end drunk driving. Thank you to Lisa Black for courageously sharing her story and helping us bring attention to a cause that impacts so many. SHEEHY TOYOTA OF STAFFORD SUPPORTS LOCAL STUDENTS Sheehy Toyota of Stafford hosted their annual Sheehy School Supply Drive in partnership with the Stafford County Sheriff’s Department, ensuring local students have the tools they need to thrive this school year. RK SUBARU FUELS CANCER CARE RK Subaru showed their commitment to wellness by supporting the Sentara Brock Cancer Center’s ongoing efforts. 12 Virginia Auto Dealer
LINDSAY CHEVROLET OF WOODBRIDGE SUPPORTS LOST CATS AND DOGS Lindsay Chevrolet of Woodbridge supported the Lost Dog & Cat Rescue Foundation to help animals in need find loving homes. GOODIE BAGS TO CANCER PATIENTS BY CMA’S CDJR OF LYNCHBURG CMA’s CDJR of Lynchburg delivered thoughtful goodie bags to patients at the Centra Alan B. Pearson Regional Cancer Center, spreading warmth and encouragement. The bags were filled with some summer essentials, snacks and care items. We are so grateful to have so many partners in our community with such BIG hearts! ALEXANDRIA HYUNDAI AND GENESIS OF ALEXANDRIA TEAM UP WITH HYUNDAI HOPE ON WHEELS Alexandria Hyundai and Genesis of Alexandria presented $100,000 in pediatric cancer research grants to Children’s National Hospital and Georgetown University Lombardi Comprehensive Cancer Center on behalf of Hyundai Hope on Wheels. At the Mubadala Citi DC Open, Kevin Reilly, owner of Alexandria Hyundai and Genesis of Alexandria, and vice-chair of Hyundai Hope on Wheels, proudly presented the $100,000 check in pediatric cancer research grants. Hyundai Hope on Wheels is proud to donate $27 million in pediatric cancer research and program grants this year, bringing their lifetime total to $277 million in grants. We are deeply grateful for the lifesaving work these two outstanding institutions do daily in the fight to end pediatric cancer, and to Alexandria Hyundai and Genesis of Alexandria for their support of them. vada.com 13
WILLIAMSBURG HYUNDAI JOINS WITH HOPE ON WHEELS Williamsburg Hyundai joined forces with Hyundai Hope On Wheels in September to honor National Childhood Cancer Awareness Month. Through funding critical research, building regional partnerships and supporting survivors, they drove hope and progress for children and families affected by pediatric cancer. FARRISH OF FAIRFAX HELPS STUDENTS IN NEED Farrish of Fairfax partnered with Daniel’s Run Elementary School to provide essential school supplies for students in need. “At Farrish Subaru, we believe in supporting our community and helping kids start the school year strong,” the store said. SHEEHY TOYOTA OF STAFFORD AND FREDERICKSBURG PROVIDES HULA, HUGS AND HOPE Sheehy Toyota of Stafford and Sheehy Toyota of Fredericksburg hosted a surprise luau to send 15-year-old Bella off on her Make-A-Wish® trip to Hawaii, surrounding her with joyful community support. With island music, tropical treats and a whole lot of love, our teams from Sheehy Toyota of Fredericksburg and Sheehy Toyota of Stafford came together to wrap Bella and her family in the Aloha spirit. Surrounded by friends, first responders and our Sheehy community, Bella was all smiles as she geared up for the adventure of a lifetime. She took off the next day for her dream vacation, ready for sunshine, relaxation and unforgettable memories. 14 Virginia Auto Dealer
LOYALTY TOYOTA FILLS BACKPACKS FOR KIDS The Loyalty Toyota team handed out nearly 500 backpacks filled with supplies at Marguerite Christian Elementary, helping Chesterfield County kids start the school year prepared and excited. It’s a heartfelt example of Virginia dealers fueling confidence, joy and opportunity for local students. PRIORITY TOYOTA SPRINGFIELD DONATES TO RED CROSS “Driving Change, One Mile at a Time.” Priority Toyota Springfield donated $9,999 to the American National Red Cross to support their life-saving work in communities nationwide. “From disaster relief to emergency assistance, the Red Cross makes a difference every day, and we’re honored to help fuel their mission,” the team said. vada.com/event/ vada-2026convention vada.com 15
Ransomware A Response Plan Is Essential for Auto Dealers By BANK OF AMERICA High-profile cyber incidents have highlighted the need for auto dealerships to prepare for the impacts due to loss of critical services and theft of sensitive data. Here are some factors to consider when creating an incident response plan. KEY TAKEAWAYS • Auto dealerships are facing an increasing number of cyberthreats that can debilitate operations and compromise customer and financial data. • Creating a ransomware response plan is a critical piece of any dealership’s preparedness. • By implementing basic controls and best practices, an incident response plan can improve security for dealerships, even those with limited IT and cyber defense budgets. When a software and applications vendor was compromised by ransomware in June 2024, thousands of auto dealerships felt the effects. Essential management systems became inaccessible, sales and financing transactions went manual or stopped, and sensitive customer and business data was compromised. By one estimate, auto dealerships lost over 50,000 new vehicle sales and suffered over $1 billion in damages in the month after the incident was reported.1 Although this was an “upstream” incident that began with a critical service provider, the ransomware event highlighted the elevated risk auto dealerships face. A 2024 study found that 35% of surveyed dealers had dealt with some type of cyber incident in the past year. What’s more, ransomware was rated as the most serious cyberthreat these businesses face.2 In this environment, every dealership needs a plan for what they must do if they’re targeted. WHY A RANSOMWARE RESPONSE PLAN IS ESSENTIAL Even dealerships that lack the resources to hire security professionals or invest in advanced controls can greatly improve their defenses by constructing a response plan that includes proactive measures such as data protection, raising employee awareness and implementing core best practices. A plan that outlines how a business can prepare against cybersecurity threats and respond to incidents can help limit the damages related to loss of data and operations. It can also improve the chances of avoiding many types of incidents, including ransomware. The following guidelines can help dealerships create a response framework that can be tailored to their specific organization and capacity for planning. KEY ELEMENTS OF A RANSOMWARE RESPONSE PLAN Ransomware response depends on a timely assessment of a live incident’s severity and impact, clearly defined roles and reactions and a thorough investigation to ensure the threat is neutralized and operations can be brought back to a secure state. To be effective, your strategy must be in place before an incident occurs. Here’s how to get started. 16 Virginia Auto Dealer
Before an Incident 1. Prepare • Educate key personnel regarding current cyber-risks and objectives of cybercriminals. • Appoint the most qualified individual to lead the creation, implementation and updating of the response plan. Alternatively, you can supervise a contract with a professional security vendor that creates the response plan. • Conduct a company risk assessment and be sure to include data inventory. • Create and maintain encrypted, offline or immutable backups of essential company and customer data. • Implement strong protections around identity and access management, such as multifactor authentication on all devices that can access company networks. • Formulate, test and continuously evolve the response plan. It should identify stakeholders and their roles, communication tactics and off-network channels, reporting procedures required by regulatory bodies or local law enforcement, and criteria for restoration of safe states. 2. Backup and Test • Regularly confirm the integrity of backups. • Do not look at backups as the “last line of defense.” No backup method is 100% cybersecure, and stealthy bad actors can corrupt backups even before they launch ransomware. During an Incident 3. Detection and Assessment • Use security tools to monitor network traffic for evidence of an adversary’s presence or movement and issue alerts. • Assess which systems are easily compromised by ransomware and isolate them. Coordinate a shutdown of all devices that cannot disconnect from the affected systems. • Reset all credentials and passwords connected to affected systems. 4. Communication and Reporting • Inform all internal teams and stakeholders on a preselected communication channel to ensure individuals essential to the response are engaged. • As needed, report the incident to affected third parties or vendors that assist your dealership with security and incident response. • Notify cybersecurity agencies and/or local law enforcement to maintain regulatory compliance and to receive additional assistance or guidance. • Communicate with third parties and clients to ensure they have not experienced financial impacts after the incident. 5. Containment and Remediation • Disable any system involved in the initial breach, as well as connected systems that malicious actors could use to access other parts of the company network or data systems. • Analyze network traffic and endpoints for evidence of the malicious actors’ persistence. Remediate vulnerabilities. • Rebuild the systems that are most critical to business operations. • Reset passwords and permissions. After an Incident 6. Recovery and Response Plan Update • Complete a thorough forensic analysis of the incident and document all steps taken to eliminate the ransomware or remove footholds the threat actor established. • Confirm that backups remain uncorrupted and don’t contain malicious payloads. Restore affected systems. • Inform all relevant third parties and oversight agencies of the steps taken and the removal of the threat. • Make improvements to company systems based on forensics. • Continue to maintain vigilance. Update security systems regularly and adapt employee training to reflect lessons learned. To learn more, visit business.bofa.com. “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. 1Anderson Economic Group, “Dealer Losses Due to CDK Cyberattack Reach $1.02 Billion.” 2CDK Global, “The State of Dealership Cybersecurity 2024.” vada.com 17
Dealerships often rely on healthy margins from service departments to provide a consistent, reliable source of revenue. With a significant percentage of total service hours dedicated to warranty and related work, optimizing the pricing and processing of your warranty reimbursements can outsize your profits and dealership growth. WORK THAT ONLY DEALERS CAN DO Today’s vehicles are more dependable, often experiencing fewer issues or failures requiring warranty repairs. Yet they present more opportunities for OEM-reimbursed service work beyond warranty fixes, including: • Model Recalls: Recalls apply to specific models of all ages, including vehicles beyond the warranty period. The National Highway Traffic Safety Administration (NHTSA) mandates recalls at the federal level and tracks repairs via a nationwide system. Each new recall triggers a wave of reimbursable service work on affected models. • Manufacturer Maintenance for New or Certified Pre-Owned Vehicles: Some manufacturers include prescribed maintenance as part of new or certified pre-owned (CPO) vehicle sales. This reimbursable maintenance work generates reliable revenue while fostering an ongoing relationship with customers. • Extended Warranties: Buyers can purchase extended warranty plans for new and qualified used vehicles, creating additional reimbursable warranty work. Non-OEM warranties issued by third parties offer further service opportunities, with reimbursement dictated by the contract terms. This body of service work opens the door to more revenue through reimbursements and customer engagement. As the exclusive source of manufacturer-certified technicians to fulfill warranty and recall work, dealers can strengthen relationships with current customers and attract new ones. Warranty work secures ongoing service and parts revenue and keeps your dealership top of mind when it’s time to trade and buy again. THE MECHANICS OF WARRANTY REIMBURSEMENT Reimbursed service work provides a reliable source of steady revenue. With the right measures, it can become even more lucrative. Dealers who study warranty reimbursement details, refine workflow tracking and documentation to optimize warranty payments, and follow OEM program requirements can maximize rates and reimbursements, leading to increased service revenue. Maximizing warranty reimbursements depends on state laws, which dictate how retail rates for labor and parts are determined. Most states require manufacturers to reimburse dealers for warranty work at the same rates charged to retail customers. These laws are subject to change from time to time, necessitating that dealers keep up with the latest legislation and adjust their strategies accordingly. There are subtle but meaningful details that determine the labor time standards used, the method for calculating retail rates and how retail parts costs are set. While state laws require OEMs to pay retail rates, it’s up to dealers to document and justify the rates they charge customers. For instance, dealers may be required to submit a sample of 100 recent service orders to establish an average hourly rate for retail customers. The manufacturer then uses this average retail rate to calculate reimbursement amounts. In the ongoing negotiation between dealers seeking fair reimbursement and OEMs aiming to control costs, be cautious of OEM offers that circumvent state-mandated legal protections. For example, offers to provide necessary warranty parts at no or reduced cost may allow manufacturers to skirt legal protections to reimburse parts at retail rates. 6 BEST PRACTICES TO MAXIMIZE WARRANTY REIMBURSEMENTS Follow these practical steps to help you get the most in warranty reimbursements: 1. Ensure that your reimbursement rate matches what you are currently charging the retail customer. Costs for labor, parts and equipment have risen sharply in recent years. Modern vehicles require specialized equipment and highly skilled technicians who command higher wages. If your OEM reimbursement rates rely on outdated data, you may be losing out on revenue. 2. Price service work consistently and with discipline. Applying discounts may seem like an effective way to build relationships and loyalty, but the goodwill you create for one customer may negatively affect your warranty reimbursement rates overall. Providing “friends and family” rates or discounting repair invoices can decrease the average hourly charge in your service sample, reducing the reimbursement rate for all warranty work. Updating your published rate consistently is one of the most effective ways to maximize reimbursement. 3. Maintain excellent service records. Pricing data drives reimbursement rates so that meticulous record-keeping can have an outsized impact on potential revenue. Ensure records accurately reflect customer concerns and include Maximize Your Dealership’s Warranty Service Reimbursements By TRUIST DEALER SERVICES, with special contribution from Jason Allen, Shareholder, Bass Sox Mercer, Attorneys at Law 18 Virginia Auto Dealer
detailed descriptions of work performed. Misclassified service work, especially within the service work sample, can distort data and negatively affect reimbursement rates on all your warranty work. Additionally, configure your service workflow system to generate reports used to update retail rates as frequently as allowed by OEMs and state laws. 4. Ensure your service manager prioritizes warranty reimbursement. Your service manager should understand the complexities of warranty reimbursement and their impact on dealership profitability. Choose a program leader who’s keen to stay informed about state statutes and OEM reimbursement programs that maximize service revenue and your service absorption rate. 5. Revisit your reimbursement rate often. Most states require that manufacturers permit dealers to request annual rate adjustments for warranty reimbursements. While the process can be time-consuming, the financial benefits make it worthwhile. Even small adjustments can significantly boost service revenue, given the volume of warranty work. Even if you don’t request a reimbursement rate adjustment, assess your pricing structure annually. Ensure that the rate you receive from the manufacturer aligns with market conditions and reflects increasing labor costs. Today’s skilled technicians earn considerably more than they did just a few years ago, and your reimbursement rate should account for these rising expenses. 6. Be wary of manufacturer consumer price index (CPI) programs. OEM-offered, CPI-based multi-year programs may seem like a convenient way to secure annual rate increases. However, these programs base increases on changes to the national CPI — not the amounts you charge customers — and typically cap increases to less than 5%. While convenient, dealers that opt for these programs may forfeit their right to request more substantial rate adjustments allowed by law. Special thanks to Jason Allen, shareholder at Bass Sox Mercer, Attorneys at Law. Bass Sox Mercer is a dealer franchise law firm representing automobile, truck, and motorcycle dealers in complex commercial transactions, business and franchise disputes, operational issues and litigation. The firm specializes in dealer rights, including warranty reimbursement matters. Contact Jason Allen at jallen@bsm-law.com or (850) 878-6404. REIMBURSED SERVICE WORK PROVIDES A RELIABLE SOURCE OF STEADY REVENUE. WITH THE RIGHT MEASURES, IT CAN BECOME EVEN MORE LUCRATIVE. vada.com 19
VADA Executive Committee Roger Keller Chair Sheehy Auto Stores Eley Duke Vice Chair Duke Chevrolet GMC John Altman Treasurer Beyer Auto Group Tanner Hulette Secretary Page Auto Group Don Hall President VADA Dan Banister Immediate Past Chair Banister Automotive Tim Pohanka Legislative Chair and PAC Chair Pohanka Automotive Group VADA Board of Directors John Altman Beyer Automotive Group Conrad Aschenbach Aschenbach Automotive Group Daniel Banister Banister Automotive Harry Carrion Haley Automotive Zachary Cochran Whitten Bros Chrysler Dodge Jeep Mazda Mark Dalton Terry Auto Group David Dillon Southern Team Auto Group Eley Duke Duke Automotive Eric Flow Flow Motors Don Hall Virginia Automobile Dealers Association Josh Hamilton Checkered Flag Motor Car Co. Tanner Hulette Mechanicsville Toyota Cameron Johnson Magic City Ford Lincoln Isuzu Roger Keller Sheehy Auto Stores Steve Klimkiewicz Cavalier Ford Lincoln Ashton Lewis Jr. First Team — Automotive Chip Lindsay Lindsay Automotive Chris Lindsay Lindsay Automotive Ross Luck Luck Automotive Thomas Mohr Highway Motors Jeff Owens Southern Auto Group Michael Patrick Patrick GMC Geoff Pohanka Pohanka Automotive Group Tim Pohanka Pohanka Nissan Hyundai Rachel Pullen Safford Brown Michelle Radley Radley Automotive Group Jake Sodikoff Steven Nissan Matthew Walsh Carter Myers Automotive LEADERSHIP Virginia Motor Vehicle Dealer Board Alexis Barker-Taplett Mercedes-Benz of Virginia Beach Thomas Bates RK Chevrolet Inc. Tom Barton Beach Ford and Barton Ford Dennis Ellmer Priority Automotive Group Chip Lindsay Lindsay Volvo Cars of Alexandria Dick Myers Dick Myers Chrysler Dodge Jeep Ram Fiat Timothy Pohanka Pohanka Automotive Group Kevin M. Reynolds Jr. Reynolds GM Subaru VADA Group Self-Insurance Association Board of Directors Cole Balderson Ourisman Automotive of Virginia Burt Brenner Lindsay Lexus of Alexandria Chris Brown Haley Automotive Penny Burch Magic City Ford Lincoln Isuzu Gerald Duncan Duncan Ford Chrysler Dodge Jeep Don Hall Virginia Automobile Dealers Association Adam Johnson Johnson Family Chevrolet Fred Kirschbaum Checkered Flag Motor Car Co. Ralph Mastantuono American Service Center Associates Benji Nowak Ted Britt Ford Lincoln Michelle Radley Radley Automotive Group Chris Strosnider Strosnider Chevrolet Rich Tritel Carter Myers Automotive HRADA Officers Pat Fields President Wynne Ford Volvo Heath Wynn Treasurer Hall Auto Group Mike Owen Secretary Southern Auto Group Rebecca Wilson Immediate Past President Checkered Flag Audi HRADA Board of Directors Jarryd Carver Winners Circle Auto Group Brian Clark Charles Barker Mercedes-Benz Jim Hernandez Priority Honda Dave Lawson CMA Williamsburg Ford Cameron Shaw Southern Auto Group Allied Member Bryan Dougherty ACV (L-R) Roger Keller, Eley Duke, John Altman, Tanner Hulette and Don Hall 20 Virginia Auto Dealer
Accumatic Inc. Ally Financial Assurant Dealer Services Inc. Atlantic Union Bank AutoFi Baker Tilly US LLP Bank of America — Merrill Lynch BDO USA LLP BG Products & Services Brown & Brown Brown Edwards CPAs CarFax Charapp & Weiss LLP Computerized Vehicle Registration Core Assurance DLRdmv Dominion DMS Dynatron Software Ethos Group VADA ALLIED MEMBERS THANK YOU! Learn more at BankWithUnited.com Member FDIC / Subject to credit and underwriting approval. United Bank specializes in tailoring a combination of financial products and auto-dealer services to best meet the specific needs and goals of your automotive dealership. Floor Plan Line of Credit Term Financing Indirect Financing Cash Management Services GET MORE BANK FOR YOUR DEALERSHIP Foti, Flynn, Lowen & Co. GPW & Associates Inc. Greensboro Auto Auction Haig Partners Hiko JM&A Group Kerrigan Advisors KPA M&T Bank Manheim Fredericksburg Manheim Harrisonburg OpenLane PDP Group Pinnacle Bank PMA Management Corp. PNC Bank NA Priority Payment Systems Local Renew Energy Solera StrategicSource Inc. Tekion TowneBank TradePending TrueCar Truist Bank United Bank VinLogix vada.com 21
ACV is investing in game-changing technologies and world class people to improve the wholesale process for all dealers. They provide unbiased vehicle information that is unparalleled in its transparency. Their inspectors complete comprehensive condition reports on fresh vehicles, right at the seller’s lot. Cintas leads the industry in supplying corporate identity uniform programs, providing entrance and logo mats, restroom supplies, promotional products, first aid, safety, and fire protection products and services. Learn how Cintas’ solutions can benefit your sales and service departments at cintas.com. Forget the forms, binders, spreadsheets, folders, manual audits and training sessions. Compliance is automatically performed, logged and demonstrated in one simple platform. They’re not just another software company. They’ve actually worked at dealerships and have spent their entire legal and compliance careers in the automotive industry. You can receive optimal results for your parts warranty uplift. Just outsource the process to Armatus. Hand the entire retail warranty process to them, and you won’t have to lift a finger. Plus, there are no upfront fees — Armatus doesn’t get paid until you do. As the leading innovator in Vehicle-to-Government (V2Gov) technology, Vitu is transforming the way vehicles, businesses, government and drivers interact with one another. Vitu partners with state government agencies and businesses across the U.S. with cutting-edge process management SaaS solutions — including Digital Title and Registration — that cross state borders and transcend state-by-state variables. Digital Air Strike is the leading social media, intelligent lead response, consumer engagement and customer experience (CX) technology company helping over 7,700 businesses increase consumer response and conversions by leveraging patented AI-powered digital technology that generates measurable ROI. A pioneer in digital response, social media marketing technology and online reputation management solutions, Digital Air Strike deploys industry-specific mobile apps, software, intelligent messaging and consumer engagement platforms to monitor, respond, improve and convert more consumers into customers for thousands of businesses in the United States. More information about the company is available at www.digitalairstrike.com. As specialists in the antitrust settlement field, DCap makes antitrust claim filing easy for businesses, navigating the inherent complexities of the process and maximizing claim refunds for its clients. For nearly a decade, DCap has provided premier settlement education, guidance and ongoing support, resulting in millions of dollars recovered, for thousands of businesses. VADA PROGRAM PARTNERS THANK YOU! Directly from state registrations, Cross‑Sell Interactive® vehicle data provides insight into customized local markets to help dealerships and dealer partners create strategies for increased market share. Cross‑Sell reports provide in-depth views of local automotive sales, registrations and trends. VADA regularly publishes articles and news from our Program Partners. It’s content that makes you a more informed dealer. Find it at vada.com/news. For more information on our programs, contact Natalie Toler at ntoler@vada.com. 22 Virginia Auto Dealer
DMS allows dealers to take advantage of federal law to greatly diminish their expenses with credit card processing fees, typically between 75% and 95%. DMS can save some dealers well over $100,000 per year in fees. Find out how at dealermerchantservices.com. Promote your business, reduce compliance risk, manage data and keep your office inventory stocked with Reynolds Document Services. Hilb Group comes to work each and every day to ensure they have you covered. They take pride in providing sound advice to all of their clients. Hilb Group’s job is not done until you have complete peace of mind that you and your employees are receiving the best benefits and service available. MOC® is a leading provider of innovative products and solutions to the retail automotive industry. Their program is designed to provide new car dealers the ability to buy necessary products, tools and equipment at manufacturer direct pricing, but also receive unprecedented local and regional service and support. One Source Wonderful! Your local, one‑stop shop for all departments supply needs! In 2010, Co-Founders Adam Robinson, Michael Krasman and Jeff Ellman reinvented the hiring process, empowering businesses to ditch their filing cabinets and manilla folders in exchange for an intuitive, technology-based hiring process. Management consulting, human resource management and labor relations. For more information visit sescomgt.com. Zurich F&I professionals can help you increase product penetration, per vehicle retail, and customer satisfaction. They currently work with more than 100 Mid-Atlantic dealers, helping them build relationships with their customers and increase product sales. As the provider of Connect CRM, a leading dealership customer relationship management system, VinSolutions helps more than 5,000 dealers make every connection count. VinSolutions products integrate dealership systems, processes and tools to deliver a single view of the customer across the business. Sqwire’s mission is to help low- to moderate-income families realize their financial promise by providing financial education that is hopeful, respectful and fun. Financial education includes topics that build a solid financial foundation, using tools created specifically for today’s adult learners and quizzes, and detailed reporting ensures clients meet their goals. Learn more at getsqwire.com. vada.com 23
Dealership owners, leaders and staff are encouraged to join the VADA legislative team on Wednesday, Jan. 28, for Dealer Day at the Capitol in Richmond. We’ll review the issues before walking to the General Assembly Building in Capitol Square to meet with lawmakers. Our goal is to help them understand the value of the franchise system and address matters important to your business. We encourage someone from every dealer group or store to attend. Scan QR code to get details and register now for Dealer Day 2026! If you’re an up-and-coming leader in the automotive industry with long-term career potential, then this event is for you. NextGen Virginia is an exclusive program designed for the industry’s future leaders — professionals aged 45 and under who are ready to take their career to the next level. Visit vada.com/nextgen to show your interest and stay tuned for upcoming NextGen events! Calling All Young Retail Auto Leaders for NextGen Virginia! vada.com/event/dealer-day-at-the-capitol-2026/ 24 Virginia Auto Dealer
vadapac.com VADA PAC United as One for the Franchise System In November, Virginians head to the polls to elect all 100 members of the Virginia House of Delegates, along with a new governor, lieutenant governor and attorney general. Decisions made during these elections and the coming 2026 General Assembly will shape the commonwealth’s business climate for years to come, and we need to ensure that dealers’ voices are represented on the front lines. Beyond politics, the retail automotive industry is evolving rapidly. New technologies, economic pressures and marketplace demand require a strong, unified voice to advocate for Virginia’s dealers. The Virginia Auto & Truck Dealers Political Action Committee is that voice. The PAC is a nonpartisan organization that supports pro-business, pro-dealer candidates regardless of their political affiliation. Our contributions provide us with a seat at the table with lawmakers and decision-makers in Richmond, allowing us to share our stories and champion fair legislation and regulations that benefit us and the consumers we serve. We ask all VADA members, dealership leaders and sales, service, parts and F&I teams to support the Virginia Automobile & Truck Dealers Political Action Committee. Your contributions send a powerful message: Virginia dealers are united and committed to driving the future. vada.com 25
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