Dealer Day at the Capitol 2026 2026 ISSUE 1 THE OFFICIAL PUBLICATION OF THE VIRGINIA AUTOMOBILE DEALERS ASSOCIATION Name City, State Nominated by Connecticut Automotive Retailers Association Emily Marlow Beck Front Royal, Virginia Nominated by Virginia Automobile Dealers Association EMILY BECK Virginia’s 2026 TIME Dealer of the Year Nominee Name City, State Nominated by Connecticut Automotive Retailers Association Emily Marlow Beck Front Royal, Virginia Nominated by Virginia Automobile Dealers Association 2026 Dealer of the Year Award
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. 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.
©2026 Virginia Automobile Dealers Association (VADA) | MBR Connect DBA The newsLINK Group LLC. All rights reserved. Virginia Auto Dealer is published four times per year and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of 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 2026 PUB. 7 ISSUE 1 A MESSAGE FROM PRESIDENT AND CEO DON HALL 5 China, Competition and the Long Game By Don Hall, President and CEO, VADA 6 Emily Beck, Virginia’s 2026 TIME Dealer of the Year Nominee Front Royal Dealer Recognized for Community Service and Industry Achievement 8 26 for ‘26 The Roadmap to Navigating Risk in the New Year By Barrett “Barrie” Charapp Beaty, Dealer Franchise Law Specialist, Charapp & Weiss LLP 14 FTC Warns Retail Automotive Industry of ‘Total Price’ Enforcement 16 VADA Live The Official Podcast of the Virginia Automobile Dealers Assocation 18 VADA ‘26 Virginia Beach, VA | June 22-25 20 Dealer Day at the Capitol 2026 Advocacy in Action for Virginia’s Auto Dealers 22 Virginia Dealers Shifting Gears for Good 26 Stronger Tools, Smarter Training, Greater Opportunity VADA Announces Partnership With Brown & Brown Dealer Services 27 Leadership 28 VADA PAC Driving the Future for the Retail Automotive Industry 29 Thank You VADA Allied Members 30 Thank You VADA Program Partners 20 6 14 Virginia Automobile Dealers Association 4 Virginia Auto Dealer
A MESSAGE FROM PRESIDENT AND CEO DON HALL At February’s NADA Show in Las Vegas, and in my recent conversations with dealers and peers from across the country, one topic dominates: China. As someone I know who has lived there for years and understands its political system recently told me, “We ought to be paranoid about China.” China is the world’s second-largest economy, and it is hellbent on becoming No. 1. We can compete and win, but only if we do it the American way — by innovating, getting better at manufacturing, getting better at sales and service, controlling expenses and labor costs, and being smart about regulation. As Chinese vehicles enter the U.S. over the next two decades, cars and trucks are merely the vehicles to American access and domination. Modern vehicles constantly collect and transmit sensitive data like location, driving patterns and personal device information. And because Chinese law can require companies to share data with the government, we should all be asking who ultimately controls that information and how it will be used. China understands the American consumer. They know we have a strong appetite for convenience, technology and lower prices. They also know that economic dependence is one way to gain influence. China already dominates global auto production, accounting for roughly 40% of worldwide capacity, compared with about 10% for the U.S. Most industry leaders believe Chinese brands will enter our market within the next few years, in part by building plants here to get around import tariffs. Chinese EV makers are already rapidly expanding into Europe and other global markets. To be sure: Chinese-made vehicles are no longer junk. They look good. They are well-equipped. They are safe, fun to drive and high quality — very different from the outdated reputation of older Chinese-made cars. In many markets, you can buy a technology-packed vehicle for $25,000 or $30,000. That is extremely difficult for American manufacturers to match. That’s tempting for consumers and for dealers. Lower sticker prices mean more sales, and new brands create curiosity (one of my own staffers is ready to buy a BYD truck when it comes stateside, leading to a slap on the wrist from yours truly). But too often, our industry focuses on the next 30 days instead of the next 30 years. It’s also important to understand how China’s auto industry works. Major manufacturers are state-owned or controlled by the Chinese Communist Party. Even private companies operate within a system shaped by government policy and financing. On top of that, China dominates the supply and processing of rare earth materials that power EV motors and components. As the saying goes, China doesn’t need to fire a single bullet to overtake us. We are seeing this play out at the highest levels. In February, Ford CEO Jim Farley discussed a framework to allow Chinese automakers to build vehicles here through joint ventures with American companies. On paper, that may sound reasonable. In reality, it mirrors the same model China once forced on Western manufacturers, but now the roles are reversed. Even in a joint venture, Chinese companies gain access to our market, technology, data and our workforce, while maintaining influence over key systems and supply chains. It may create short-term jobs, but it also raises serious economic and national security questions. “Made in America” does not mean “data controlled in America.” If American manufacturing continues to weaken, the damage will extend far beyond dealership showrooms. Parts suppliers, service departments and entire communities depend on this industry. Once that is weakened, it is very hard to rebuild. China is a complex, long-term challenge that requires serious engagement from dealers, associations and policymakers. Ideally, we should say “Hell No” to China. But if that is not possible, we don’t have to throw in the towel either. We just have to be Americans about it. China, Competition and the Long Game An automotive clash of the titans, coming soon to a country near you. (Image created by AI).
Name City, State Nominated by Connecticut Automotive Retailers Association Emily Marlow Beck Front Royal, Virginia Nominated by Virginia Automobile Dealers Association 2026 Dealer of the Year Award Virginia’s Emily Marlow Beck, president of Marlow Motor Company, was nominated for the 2026 TIME Dealer of the Year award late last year. She is the first woman to be named Virginia’s nominee since 1998. Beck is part of a select group of 47 dealer nominees from across the country who were honored at the 109th annual National Automobile Dealers Association (NADA) Show in Las Vegas on Feb. 5. The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. The program recognizes the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service. Beck was chosen to represent the Virginia Automobile Dealers Association in the national competition, now in its 57th year. CONTINUING THE FAMILY BUSINESS Beck leads Marlow Motor Company, a family business founded in 1947 that represents Chrysler, Dodge, Jeep and Ram in Virginia’s Shenandoah Valley. After earning a B.A. from the University of Virginia (1999) and a J.D. from American University Washington College of Law (2002), she built a legal career focused on automotive compliance at Hudson Cook LLP before returning home in 2010 to join — and soon lead — the dealership. Shortly after returning home, her father suffered a heart attack and quintuple bypass, accelerating a leadership transition that she navigated with transparency, resilience and a focus on culture. “I grew up learning about the car business from my father, who passed away last year,” Beck said. “My first dealership job was in the parts department when I was in middle school,” and after an unexpected setback upon law school graduation, “my father… simply said, ‘You can always sell cars for me. Welcome to the corporate world. If you can get yourself out of this, you can get yourself out of anything.’” Beck then relied on her dealership experience to begin practicing law in the automotive space. “Looking back, I believe that my father gave me the greatest gift by not rescuing me when I lost my ‘big firm’ job,” she said. GROWTH AND INNOVATION Under her direction, Marlow Motor Company has invested in future-ready operations, including EV infrastructure upgrades and expanding heavy-duty/ service capacity to better support business and fleet customers. “Our store is a more rural store,” she noted. “Because we do a lot of fleet services with business, we have added lifts to increase our capacity to service business customers.” Emily Beck, Virginia’s 2026 TIME Dealer of the Year Nominee Front Royal Dealer Recognized for Community Service and Industry Achievement 6 Virginia Auto Dealer
She also created a Cares Committee that engages team members across departments to strengthen culture and community ties. The committee has organized adoption events with the local animal shelter, baby supply drives for the United Way, food truck appreciation days and employee recognition programs. “One of the best things we implemented in our dealership in the last 18 months is the establishment of our Cares Committee,” Beck said. “When we invite our team to take leadership roles in building and establishing our culture, we have better buy-in and morale.” COMMITTED TO EDUCATION Committed to workforce development and opportunity, Beck provides Degrees@Work — a no-cost, no-debt college degree program through Strayer University to help employees and their families advance their careers while working full-time. The dealership has covered over $400,000 in tuition for employees and their families through the program. The store also partners with local high school vocational centers on apprenticeships and mentored technician pathways, as well as an annual automotive scholarship. Customer care at Marlow Motor Company is personal and practical. “One of our core values is to be innovative problem solvers,” Beck said, pointing to a recent example: “A woman and her two dogs arrived at our dealership when her car broke down. There was a delay in getting the part she needed. The employees used their personal funds to purchase her meals and care for her dogs, and our service manager used his own funds to get a hotel room for the woman so she would have a safe place to sleep.” ADVOCACY BEYOND THE DEALERSHIP WALLS Beck’s leadership extends statewide through the Virginia Automobile Dealers Association, where she has served as chairman (2021-2022), vice chair, treasurer, secretary and long-time board member (2011-2024). That role brought her attorney’s perspective to complex issues, including direct sales, warranty reimbursement, EV transition and pandemic response. Reflecting on a pivotal leadership moment, she added, “Team members will overlook inexperience, but they will not overlook lack of character or commitment.” To mark the company’s 75th anniversary in 2022, she challenged the dealership to perform 75 acts of kindness for the community in 25 workdays, ranging from book drives and food pantry stocking to e-recycling events, shelter support and neighborhood cleanup. The campaign spurred copycat kindness campaigns by local organizations and drew broad media recognition. “When we began the campaign, I was concerned that we would not be able to successfully execute it,” she recalled. “At one point, I realized that the campaign was exactly what my team needed during that time.” The lasting lesson: “The best part of the 75 acts of kindness was how effective it was in modeling culture for our team. We continue to work with many of these non-profits to this day.” Beck was nominated for the TIME Dealer of the Year award by Don Hall, president and CEO of the Virginia Automobile Dealers Association. Emily and her husband, Andrew Beck, have three children: Olin, Marshall and Margaret. THE TIME DEALER OF THE YEAR AWARD IS ONE OF THE AUTOMOBILE INDUSTRY’S MOST PRESTIGIOUS AND HIGHLY COVETED HONORS. vada.com 7
With each new year, the automotive industry brings challenges, whether it’s the franchisor, employees, consumers or regulatory bodies. And with each new year, dealers have coped and met each challenge head-on. 2026 should not be much different in terms of challenges, but those challenges can be rewarding. Here are 26 issues to which you should give attention in 2026. FEDERAL AND STATE COMPLIANCE Dealers have become accustomed to federal oversight from any one of the numerous alphabet agencies. From advertising to sales practices to personnel treatment, a dealer must have in place a strong compliance program to operate in this regulatory climate. I-9 Audits With the Trump administration, it is imperative that dealers’ I-9 Forms are compliant. Dealers must follow the correct processes for completion of Forms I-9. Failing to give the employee the choice of documents to show identity and authorization to work can be the basis for a government enforcement action. Maintain Forms I-9 for the required time: for separated workers, one year after termination and three years after hire, whichever is longer. Spot check periodically to make sure you have a Form I-9. If not, follow up and have forms completed. Keep a note with each form completed after the required date to explain when and why the form was created. If there are errors, have a procedure to correct them. Employers can only correct Section 2 and Supplement B of the form, while employees must correct Section 1. Be sure the corrections are evident to avoid claims of wrongdoing. Pay Attention to Advertising Compliance Under the Trump administration, the FTC’s regulatory desires will be curbed, but the FTC’s enforcement activities will continue. Your staff in charge of ads and your ad agency must understand the rules. 1. In finance advertising, understand trigger terms and the requirement for follow-on disclosures. 2. Understand what the FTC considers bait and switch, and avoid those tactics by clear and conspicuous disclosures. Meaningful disclosures should be used to explain the terms and pricing, not negate the price. 3. When an ad appears too good to be true, it likely is. Regulators understand that. “Too good to be true” offers will attract regulatory attention. 4. If you are using third-party advertisers such as TrueCar or Cars.com, make sure those advertisements are the same as your website. Vehicle Shopping Rule Is Dead (For Now), but FTC Enforcement Is Not Dealers must sell the vehicle at the price advertised. Advertising a vehicle at a price at which the dealer does not intend to sell it is viewed by the agency as bait and switch — a cardinal sin. Bait and switch cannot be solved with a disclaimer that admits that you will not sell vehicles for the advertised price. Proper disclosures explain an advertised term, and they do not contradict or negate it. A statement that you will not honor the advertised price in the advertisement will be seen as an admission of a violation. Another cardinal sin, and one on the FTC’s radar, is requiring the customer to finance the vehicle or purchase a product to get the price advertised for the vehicle. For example, you cannot require the customer to buy GAP protection for the lower price you state you will sell the vehicle. Additional products and services, like extended service agreements and GAP protection, may be additional products purchased by the customer. Those products must be expressly agreed to with clear pricing and disclosures that the products are voluntary. Data Protection Will Continue To Be on the FTC and State AG Watch List This is a hot issue. Make sure your compliance efforts on mandated programs — the Privacy Rule and the Safeguards Rule — are in place and complied with. With the recent breach of 700Credit, it brought to light the need for compliance companies to ensure full compliance with the Safeguards Rule. The FTC’s views on add-ons differ greatly from dealers and even customers. To the FTC, the price of the vehicle is the only thing that matters. Anything else and the FTC is quick to characterize it as a “junk fee.” The FTC’s view is incorrect, and voluntary protection products, like extended service 8 Virginia Auto Dealer
agreements and GAP protection, are important to many consumers. Moreover, charges for voluntary protection policies are not fees. However, dealers must be careful about other types of “creative” fees. Typically, state laws permit a dealer to charge a voluntary documentary or processing fee (however it may be labeled under state law) and a pass-through of electronic titling fees. Additional fees may be a problem. The most clear examples are commission fees or used car reconditioning fees added to the advertised price of a used vehicle. Those fees cannot be disclosed separately from the price of a vehicle. Charging any fees not expressly permitted by state law in addition to the advertised price is considered a bait and switch practice by the FTC, and it may violate state law on permissible fees. Use a Fair Credit Policy The fairness of pricing vehicle financing has been criticized for years. To deal with the criticisms, the NADA has developed a template program for fair credit. It requires a dealer to establish a standard starting point above buy rates for all customers, with downward deviations for non-discriminatory factors. If you have not adopted a policy, or if you adopted one and you no longer police it carefully, it is time to energize your fair credit compliance efforts. Adopt a policy and enforce it. Establish a Policy for Sale of VPPs Like criticisms over the terms of credit, proponents of stronger regulation of dealer practices have criticized VPP sales practices. To address the criticisms, NADA, along with NAMAD and AIADA, developed a template program for the sale of voluntary protection products. Use the NADA/NAMAD/AIADA program to protect against charges of discrimination in the sale of VPPs. Adopt a policy and enforce it. The FTC already views VPPs as “junk fees,” thus, having a standard policy and enforcing it is necessary. Be Sure Deals Are Neat and Complete You have a form package for a transaction with a consumer for a reason. The forms are required by state or federal law, or by best practice to protect your dealership. The forms do not work unless they are used properly. Be sure personnel finalizing transactions understand the need for all documents to be completed. Use a deal completion checklist. Periodically audit deals to be sure that all forms are being completed. Make sure your forms are up to date to address current laws. You should seek legal advice on the disclosure requirements and form review. OPERATIONS ISSUES Employee Issues Personnel lawsuits in the automotive industry have become big business for plaintiff’s firms, and 2026 will be no different. Dealers need to take proactive steps to lessen the chance of lawsuits. Do you have an employee handbook? Is it signed? When was it last updated? How are complaints handled? Make sure all employees who need licensing have licensing. Document personnel files with disciplinary actions and unsatisfactory performance issues. Attention to detail will go a long way when it comes to employee issues. Spot Delivery A dealer that enjoys spot delivery protection under state law should carefully follow the law. If there is no state statute, a dealer should avoid the practices that can lead to criticism. 1. Use a clear and understandable disclosure of the conditional nature of the spot delivery. If your state requires certain spot delivery language or agreements, such as in Virginia (on the buyer’s order) and Maryland (separate form with certain language required), your state requirements should be the only spot delivery language or documents in the deal. 2. If the vehicle is retaken, return the trade and the down payment. 3. Do not charge for use of the vehicle while it was in the hands of the customer. 4. Retake vehicles in strict compliance with the law. Give Attention to Cybersecurity In 2024, dealers were faced with the CDK breach. In 2025, dealers were faced with the 700Credit breach. Hopefully, things don’t come in threes, and 2026 is spared. However, it’s imperative that dealers remember Continued on page 11 vada.com 9
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that it is not just big companies and government that are targets of hackers and other virtual malefactors. Bad guys target everyone, including car dealerships. Work with your computer vendor to make sure you have the latest in protection against cyber intrusion. Don’t forget the old-fashioned remedies, such as regularly changing passwords, guarding against employees sharing passwords or leaving them exposed, and limiting web surfing that leaves your system open to attack. Be especially careful with methods of payment. Dealers doing large transactions have been victimized by hackers who have taken residence in their systems to send false wire instructions for accounts that immediately get emptied. When doing deals, especially larger deals or deals involving multiple vehicles, do not accept payment instructions through the internet unless you call the person with whom you are doing business at a number you recognize to verify the instructions. Review your insurance policies to ensure that you have the proper coverage for cyberattacks and business interruptions. Recalls on New Vehicles Ground new vehicles with open recalls. Everyone knows this, but what is your procedure to make sure new vehicles with open recalls are not being delivered? Recalls on Used Vehicles in Your Inventory Fix the open recalls on used cars that you can. If there is not a fix or parts are not available, disclose the open recall to a buyer. There is no federal requirement to ground a used car with an open recall. Nevertheless, it is best practice to check the recall status of every used car in stock. Stop Sale Due to Recall on Sale of Used Vehicles If your franchisor issues a stop sale on used vehicles, pay attention to that. There is no federal law empowering a manufacturer to issue a used vehicle stop sale, but there can be consequences to your relationship with your franchisor if you disregard the mandate. Moreover, it exposes a dealer to great liability if the mandate is disregarded. Pay attention to it and seek compensation. Certain states, like Virginia, allow for compensation for stop sales on used vehicles. Open Recalls on Vehicles Brought in for Service Be sure you are checking the service vehicles of your brand for open recalls. The law requires that you notify service customers with vehicles of your brand of open recalls if your franchise requires that. Whether or not your franchisor requires that (increasingly factories say they do), it is a best practice to check for the open recall status on all vehicles of your brand brought in for service. If there is a recall affecting a vehicle of the brand you handle, repair it. This will provide business to your service department and avoid potential liability issues of selling a vehicle with a problem you could have remedied. If you cannot remedy an open recall because there is no fix or it is not a brand you sell, disclose that to a buyer. Supplier Agreements All dealers should do an audit of their supplier and vendor agreements, including DMS and insurance coverage. Have a detailed list of requirements and make sure the list is fulfilled. Think about how you may have to terminate your obligations and negotiate termination provisions for events like loss of a franchise or sale of a dealership. You want favorable terms in all your supplier agreements and do not want to get stuck with unnecessary, long-term supplier contracts that could have large termination costs for events like loss of a franchise or sale of a dealership. • Have a policy for review, approval and execution of supplier contracts. • For each contract, a dealer must ask why a lengthy term is required, and whether there is a benefit to the dealer. • Do not agree to lengthy contract terms unless there is a reason that benefits you. • Do not agree to automatic rollovers at the end of the term, except for month-to-month. • Make sure the state in which your dealership operates is the choice of law and venue for any actions between you and the supplier. • As dealers know, there are some suppliers who will not modify their form agreements. In that scenario, dealers need to determine what they can and cannot live with. If the supplier won’t modify the agreement, the dealer needs to assess what the supplier is providing and what the true downsides of the terms are and what that means for the dealership. Dealers should seek legal counsel should they be concerned or need guidance on the terms of supplier agreements. FRANCHISE RELATIONS As much as the franchisor relies on the dealer to get its cars on the road and fix the warranty issues from defective products, franchisors become bolder and more demanding of dealers year after year. Attack on the Franchise System In May 2025, the Alliance for Automotive Innovation, known to you as the Alliance, sent a letter to the Justice Department requesting that it examine franchise laws, specifically as it relates to add-points and warranty reimbursement. Like the Alliance, Scout, a wholly owned subsidiary of Volkswagen that is no different than Audi, also sent a letter requesting that the federal government intervene to get rid of state laws that ban direct-to-consumer sales. Essentially, the letters by the Alliance and Scout shared a common theme, that state franchise laws are archaic, unnecessary Continued from page 9 Continued on page 12 vada.com 11
and anti-competitive. Manufacturers are getting bolder, as evidenced by the direct attack on the franchise system. Legacy Manufacturers Selling Direct As you are aware, in 2024, Honda and Volkswagen announced that they want to forego the dealer network and sell the manufacturer line-makes Afeela and Scout, respectively, direct to consumers, which is a slap in the face to their dealer bodies. In 2025, dealers in Florida sued Volkswagen in Miami, which has survived a motion to dismiss. In April 2025, the California New Car Dealers Association (CNCDA) sued Volkswagen and Scout based on the changes that California passed to its franchise laws. While those suits are pending, Scout has obtained a dealer’s license in both Colorado and Missouri. This will be an issue to watch in 2026. Support Your State and Metro Dealer Associations Dealers will be leaning on their state and metro associations more than ever. The associations need dealer support as they are the advocates in the state you operate, and they work hard to ensure dealers have friends on both sides of the aisle, regardless of political divides. State associations protect dealers against negative legislation that challenges franchise and licensing laws. The associations introduce legislation and lobby on your behalf to improve dealer franchise protections by educating the elected officials on your business so they can understand the need for those protections. For these reasons, you need to support the associations, financially and through personal activism by getting to know your local representatives. There are still many lingering questions regarding the Hyundai and Amazon partnership. As we predicted, Ford has thrown itself into the partnership mix for used vehicles. As we have seen so far, Amazon has served the same purpose as other lead provider websites and has not circumvented the dealership franchise system. However, monitoring the Amazon and manufacturer relationship in 2026 will be critical to ensure your rights are protected as a franchise dealer. Be Prepared To Enforce Your Franchise Rights State franchise act protections are not self-enforcing. OEMs continually have documents or programs that may disregard or violate state franchise law. OEMs have taken certain liberties over the years as to which franchise laws they want to follow and which they do not. If you are not enforcing your rights, the manufacturer will take full advantage of dealer complacency. Many states have protections for fair payments for performing warranty repairs. You may have to enforce your right to entitled reimbursement at retail for labor and parts. You may have to enforce your right to incentive monies for each new program that the manufacturer introduces in states such as Virginia that allow you to receive program monies even though you do not upgrade your facility to each of the program’s requirements because you renovated your facility within the last 10 years. Failing to enforce your rights on the facility upgrade programs could mean you are leaving hundreds to thousands of dollars per vehicle on the table while encouraging the manufacturer to continue to skirt franchise laws. Performance Threats OEMs continue their standard threats about dealer performance, particularly sales. If you get a letter critical of your performance, respond and dispute it. Explain why your performance is not deficient. Be clear about the negative impact of inventory shortages. Explain why the standard you must meet is improper; for example, your PMA is incorrectly defined, making you responsible for sales in geographic areas where you have no advantage. NEVER agree that you have breached your dealer agreement. Warranty Audits In 2025, many manufacturers performed warranty audits and claimed hundreds of thousands of dollars in chargebacks against dealers. Many of the warranty audits are a result of manufacturers who are strapped for money and want to recoup it from the dealers. Some of these audits completely violate the laws in which the dealers operate. For those audits that are excessive or completely in violation of the law, you should be challenging them either through the internal manufacturer process (i.e., Ford’s Dealer Policy Board) or through your state administrative agency under the state franchise act. Any audit should be a wake-up call to the dealer to know whether their procedures and processes for warranty claims need to be fine-tuned. If the same mistake is occurring, training and possibly hiring warranty experts may be necessary to stop the same issue from occurring in the next audit. Avoid freely giving your money back to the manufacturer! Warranty Rate Increase Requests Insist on proper labor and service reimbursement for warranty and recall work. Warranty work and repairs to remedy recalls have increased dramatically. Many states have changed the methods and procedures related to retail reimbursement. Make sure you are following your state law when seeking an increase in your rate. It is best practice to hire an expert to submit the package. Due to various statutes changing around the country, many manufacturers are quick to deny the request as well as haggle with you. An expert is the best practice to set up a challenge under state law that the submission was done correctly. Continued from page 11
What Are You Signing? When your OEM rep presents you with a document to be signed, understand what it requires. Programs that cost you more and make you less will result as OEMs seek to make dealer income their own. Some OEM documents may violate your state law if they have waivers of state franchise act protections. Remember, your franchise agreement does not terminate. During renewal of the agreement, while you cannot change a manufacturer’s form agreement, the specific terms applicable to your dealership are negotiable. If the terms are unfavorable, raise the issues with the factory and negotiate more favorable terms as part of your renewal. If your factory representative labels you as a difficult dealer, point out that the factory is changing the relationship, not you. Know your state franchise laws when it comes to new forms, such as in Virginia. The new forms need to be presented and approved by the Commissioner before the manufacturer can request that you execute them. Succession and Dealer Ownership Succession planning has become a reality for many dealers. If you are one of those dealers redoing the ownership structure for estate planning purposes, make sure you have the approval of your franchisor before you finalize the sale of or gift of stock. Many dealers think that they only must notify franchisors of minority interest changes after they make them. That is not the case. Most dealer sales and service agreements require manufacturer approval before a new interest in the company is granted. Any small interest gifted or sold requires manufacturer approval. Failing to obtain approval beforehand can be considered a breach of the dealer sales and service agreement. Scan the QR code to download the Supplier Agreement Checklist. vada.com/wp-content/uploads/2020/05/ Supplier-Agreement-Checklist.pdf Backed by decades of experience, Brad D. Weiss, Barrett Charapp Beaty, Travis Salisbury, Elizabeth A. Dwyer, and Ben Sinder are dedicated to providing auto dealers with comprehensive legal support and strategic guidance. cwattorneys.com 571.346.7507 1818 Library Street, Suite 500, Reston, VA 20190 Barrett Charapp Beaty Travis Salisbury Elizabeth A. Dwyer Ben Sinder Brad D. Weiss Your Trusted Legal Partner for Auto Dealers: Charapp & Weiss, LLP. Contact Us For Further Inquiry vada.com 13
Recently, the Federal Trade Commission sent warning letters about advertising and sales practices to 97 auto dealerships. The letters amounted to a warning shot aimed not just at those 97 dealerships but at the entire retail auto industry. In those letters, the FTC states that advertisements that include prices that are not the “offering price” under the CARS Rule are deceptive and in violation of the FTC Act. To comply with the FTC Act, the advertised price of the vehicle should be the total price the consumer is expected to pay, which shall include all fees and charges (i.e., processing fees and freight), but may exclude governmental fees (i.e., tags, title and taxes): According to the FTC letters: “The FTC is committed to ensuring that the price consumers see in advertising is the actual price they will pay (aside from required government charges, like taxes). This is what the FTC Act, which prohibits deceptive or unfair acts or practices, requires.” WHAT IT MEANS FOR YOUR DEALERSHIP You are urged to take this warning seriously and move quickly to update your advertising. Consider the risks; a simple screenshot of a non-compliant online ad or a customer being asked to pay more than the advertised price on the lot can easily become a “gotcha” moment for regulators, consumers or even competing dealers. To avoid costly violations, dealers must follow the roadmap for proper advertising on their websites and on third-party sites. The FTC’s warning also extends beyond advertising. Dealers must train salespeople on compliant sales practices, especially regarding what is included in vehicle prices and how to convey those prices accurately to consumers. For example, when a customer calls the dealership to ask for an out-the-door price, the salesperson must provide the total price, including processing fees and freight charges (if your dealership previously removed them from the advertised price). In Virginia and Maryland, you must display addendum stickers showing the vehicle’s price, including such fees and charges. These stickers must be accurate, display the vehicle’s total price, and match the advertised price exactly. VADA’S NEW FTC ACTION RESOURCE PAGE With support from the VADA legal team and our external counsel, Barrett “Barrie” Charapp Beaty, VADA has prepared a comprehensive multi-article analysis of the FTC announcement for the benefit of our dealer members. In addition to a comprehensive breakdown of the new rules, these resources include a step-by-step federal advertising checklist, compliant sample ads and an extensive dealer FAQ. You’ll also find deep-dive guidance on: • What an FTC investigation entails • Reviewing your dealership’s social media policy • Avoiding “add-on” pitfalls • Practical, immediate actions you can take today To access our FTC action resource page, scan the QR code or visit vada.com/ftc-action. Further questions can be directed to VADA’s general counsel and executive vice president, Anne Gambardella, Esq. vada.com/ftc-action/ FTC Warns Retail Automotive Industry of ‘Total Price’ Enforcement 14 Virginia Auto Dealer
TAKE US ANYWHERE! Scan to read the most recent publication. Stay up to date from your couch, office or even the moon! Place a 1” x 1” QR Code White on Black Here to the main website 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 vada.com 15
THE OFFICIAL PODCAST OF THE VIRGINIA AUTOMOBILE DEALERS ASSOCIATION WWW.VADA.COM/LIVE AVAILABLE WHEREVER YOU GET YOUR PODCASTS
Get the competitive advantage for your dealership with VADA Live. The official podcast brings together VADA staff, dealership leaders, and industry experts for essential conversations focused around the Virginia retail automotive market. Hear actionable insights on current legislation, effective talent management, the impact of AI and technology, and proven best practices to drive your business’ success.
‘26 VIRGINIA BEACH, VA | JUNE 22-25 IT ALL STARTS HERE. REGISTER SPONSOR & EXPLORE VADA.COM/CONVENTION
INTRODUCING A REFRESHED APP EXPERIENCE: TAILOR YOUR CONVENTION. MEET YOUR SPEAKERS. CONNECT WITH SPONSORS. REGISTRATION & HOTEL BLOCK OPEN REGISTER & LEARN MORE AT VADA.COM/CONVENTION PREPARE FOR AN EPIC WEEK FILLED WITH EDUCATION, CONNECTION, AND CELEBRATION. FEATURING SESSIONS AND KEYNOTES WITH ALEXWEBER AMERICAN NINJA WARRIOR JIM ROCHE WARRCLOUD DIANA LEE CONSTELLATION JOHN COLES ACV KEVIN TYNAN THE PRESIDIO GROUP JOE ST. JOHN AUTOFI / OAKES AUTO GROUP LAUREN BAILEY COMPLYAUTO SAM D’ARC CAR DEALERSHIP GUY PODCAST DAVID SPISAK DISRUPTIVE GROWTH SOLUTIONS JIM FITZPATRICK CBT NEWS
Dealer Day at the Capitol 2026 Advocacy in Action for Virginia’s Auto Dealers Nearly 100 Virginia auto dealers gathered in Richmond on Feb. 25 for VADA’s annual Dealer Day at the Capitol, where they delivered a unified message about the strength and importance of the automotive franchise system. After a luncheon briefing at the nearby Hilton Richmond Downtown on key legislative issues — including tax and transportation, dealer-related bills, and emerging employment law and business proposals — dealers fanned out across Capitol Square for meetings with all 140 members of the House of Delegates and Senate. Throughout the day, dealers emphasized the industry’s $27.5 billion in annual sales, 61,245 jobs supported statewide, and $1.7 billion in tax revenue generated for the Commonwealth, while reinforcing the need to protect franchise laws that safeguard local competition, consumer choice and community reinvestment. 20 Virginia Auto Dealer
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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. SOUTHERN TEAM SUBARU PROVIDES FEASTS TO FAMILIES During the holidays, Southern Team Subaru helped 12 families in their community gather and celebrate the season by providing everything they needed for a full Thanksgiving dinner. The boxes included detailed cooking instructions, roasting bags, aluminum foil and disposable pans to make cleanup easy. TRI-STATE NISSAN DONATES CAR FOR PATIENT RECOVERY Tri-State Nissan, part of Marlow Auto Group, donated a 2017 Nissan Maxima to the Valley Health Foundation for their new Rehabilitation Center in Winchester. It wasn’t your typical delivery — the Maxima was crane-lifted to the second floor to help patients practice real-world mobility as part of their recovery. Now that’s taking community support to the next level! 22 Virginia Auto Dealer
SHEEHY FORD OF RICHMOND SUPPORTING MERCY MALL Sheehy Ford of Richmond supported Mercy Mall in their mission to provide clothing and essential items to individuals and families in need, helping restore dignity and stability. CARTER MYERS AUTOMOTIVE HOSTS TEDDY BEAR TAKEOVER Carter Myers Automotive hosted its annual Teddy Bear Takeover, collecting stuffed animals and toys to bring comfort and smiles to the young patients at UVA Children’s Hospital. Over 300 teddy bears were donated! STEVEN KIA HELPS SHENANDOAH VALLEY STAY WARM Steven Kia supported United Way of Central Shenandoah Valley by serving as a collection point for their Warm Homes and Weatherization Drive, collecting warm clothes and weatherization supplies for the community. Continued on page 24
PRIORITY TOYOTA SPRINGFIELD SUPPORTING THEIR COMMUNITY Priority Toyota Springfield donated to Ecumenical Community Helping Others (ECHO), which provides food, clothing, housewares and financial assistance to individuals and families in need in the Burke/Springfield community. SHEEHY TOYOTA OF FREDERICKSBURG WEARS RED FOR HEART HEALTH The team at Sheehy Toyota of Fredericksburg wore red on Wear RED Day in support of the American Heart Association, raising awareness of the importance of heart health for women. CMA COLONIAL SUBARU INSPIRES THE NEXT GENERATION Carter Myers Automotive’s Colonial Subaru welcomed students from Colonial Heights and Hopewell High Schools for a guided tour of every department of the dealership. The students learned about great career paths in sales, service, parts, support and more, and that they can get all the training they need to build successful, high-wage careers! Continued from page 23 24 Virginia Auto Dealer
ALEXANDRIA HYUNDAI HELPS FUEL CANCER RESEARCH Alexandria Hyundai owner Kevin Reilly was front and center at Hyundai’s Hands On Hope contest at the Washington, D.C., Auto Show, where teams battled it out to win a 2026 Hyundai Palisade Hybrid and unlocked $100,000 in pediatric cancer research grants for Children’s National Hospital and Georgetown Lombardi Comprehensive Cancer Center. CAVALIER FORD CHESAPEAKE SQUARE HIGHLIGHTS FIRST RESPONDERS Cavalier Ford Chesapeake Square kicked off their First Responder Friday initiative with stops at Chesapeake Fire Station 12, Chesapeake Police 4th Precinct and Chesapeake Fire Station 11. They delivered Chick-fil-A biscuits and coffee as a thank-you for their hard work and dedication! vada.com 25
In today’s retail automotive marketplace, the margins are tight, regulations are complex, and customer expectations are higher than ever. To support Virginia’s franchised new car and truck dealers, the Virginia Automobile Dealers Association (VADA) announced a new partnership with Brown & Brown Dealer Services, naming the company the preferred provider of finance and insurance (F&I) products and additional dealership services for VADA members. Brown & Brown Dealer Services (BBDS) offers a comprehensive suite of F&I training, participation programs, and additional services tailored specifically for franchised automobile dealers. The partnership is designed to help VADA members strengthen profitability, elevate customer experience, and navigate an increasingly complex regulatory and insurance environment. “Virginia’s dealers operate in a highly competitive marketplace, and having access to industry-leading F&I, training platforms and insurance specialists gives our members a meaningful advantage,” said Don Hall, president and CEO of VADA. “We have known the Brown & Brown team for years, and they understand the unique needs of franchised dealers and are committed to the automotive industry. While they are global, they are also nimble and can offer creative benefits to dealers that other providers cannot. We are excited to bring this new partnership to our members.” BBDS brings national scale and local service to the partnership and is ranked among the top 10 insurance brokers in the world by Business Insurance magazine. The company offers access to A-rated providers, flexible reinsurance structures and in-house administration. In 2025, the company rolled out an artificial intelligence-powered advanced training tool called SIM365, designed to enhance dealership performance and training through roleplaying without risking real-world opportunities. “Our team is committed to delivering innovative F&I products, customized training and performance-driven solutions that help dealers improve operations, enhance the customer ownership experience and build long-term wealth,” said Robert Hunter, president of automotive F&I at BBDS. “We look forward to supporting VADA’s trusted network of dealers across Virginia and are honored to be part of the industry in the Commonwealth.” In addition to F&I services, BBDS provides additional products to help dealerships manage risk and plan for growth. Through this partnership, VADA members will gain direct access to Brown & Brown’s dedicated automotive team and its broad national brokerage resources, combining personalized local service with industry-leading capabilities. For more information about the partnership, or to learn how BBDS can work for your dealership, visit www.bbrown.com/us/bbds-vada. THE PARTNERSHIP IS DESIGNED TO HELP VADA MEMBERS STRENGTHEN PROFITABILITY, ELEVATE CUSTOMER EXPERIENCE, AND NAVIGATE AN INCREASINGLY COMPLEX REGULATORY AND INSURANCE ENVIRONMENT. STRONGER TOOLS, SMARTER TRAINING, GREATER OPPORTUNITY VADA Announces Partnership With Brown & Brown Dealer Services Virginia Automobile Dealers Association 26 Virginia Auto Dealer
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