THE OFFICIAL PUBLICATION OF THE VIRGINIA AUTOMOBILE DEALERS ASSOCIATION In the Room with Eley Duke III, VADA’s 2026-2027 Chair
©2026 Virginia Automobile Dealers Association (VADA) | MBR Connect™. 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 (801) 676-9722. CONTENTS 2026 PUB. 7 ISSUE 3 A MESSAGE FROM PRESIDENT AND CEO DON HALL 4 AI Is Already in Your Dealership. It’s Time To Catch Up. By Don Hall, President and CEO, VADA 6 FTC Crackdown on Deceptive Pricing Practices What This Means for Auto Dealers By Barrett “Barrie” Charapp Beaty, Dealer Franchise Law Specialist, Charapp & Weiss LLP 8 In the Room with Eley Duke III, VADA’s 2026-2027 Chair 11 Upcoming Events 12 Koons Gives $30 Million to Dealer‑Centric Northwood University Longtime VADA Member and Automotive Entrepreneur Makes the Largest Philanthropic Commitment in Michigan University’s History 14 VADA PAC Supports Virginia Candidates with ‘Drive to 250’ 17 Virginia Dealers Shifting Gears for Good 20 With Aftermarket Products, Does the Vehicle Warranty Still Apply? By Barrett “Barrie” Charapp Beaty, Dealer Franchise Law Specialist, Charapp & Weiss LLP 23 Dealer Day 2027 24 Leadership 25 Thank You VADA Allied Members 26 Thank You VADA Program Partners 4 6 17 Virginia Automobile Dealers Association vada.com 3
A MESSAGE FROM PRESIDENT AND CEO DON HALL AI Is Already in Your Dealership. It’s Time To Catch Up. I had an interesting experience recently with a longtime dealer friend who was skeptical about artificial intelligence. He’d never used nor seen it in action. I pulled out my phone, opened ChatGPT and started asking questions a customer might ask before buying a vehicle: What should I pay? Should I finance through the dealership? What happens in the back office? Do I really need a service contract? Within minutes, he was amazed by what AI knew. And it dawned on him then that customers aren’t waiting for us to figure out AI. Before they ever walk into your showroom, they’re using it and other online tools to research vehicles, pricing, financing, warranties and the sales process. They may arrive knowing far more than we assume. Your employees need to be prepared for that new reality. At the same time, AI is moving at a breathtaking pace. New tools and companies seem to emerge every week. That makes it difficult for a dealer trying to run a business to separate what is genuinely useful from what is simply the latest shiny object. That’s where VADA comes in. Coming soon: Our new VADA AI Academy will help dealers understand and use AI, no matter where they are starting. If you have never opened ChatGPT, we’ll start with the basics. If you’re already using AI in your operations, we’ll help you explore more advanced applications and keep up with what’s changing. We’ve spent the last couple of years talking to retail automotive’s brightest AI minds, and we’re going to share that knowledge with you to help you make informed decisions. The Academy will bring together practical guidance, videos, podcasts, educational programs, industry experts and other resources organized by experience level. We’ll highlight the AI companies driving change in our industry and showcase what our partners are doing in the space. Our goal is to make VADA AI Academy a place dealers can continually turn to for useful, current information about the technology. VADA AI Academy comes thanks in part to your new chairman, Eley Duke III of Duke Chevrolet in Suffolk. Eley is the first to admit he isn’t an AI user but understands this technology is going to be critical to success in the future. Eley wants to ensure VADA members remain leaders in AI. AI is already changing our business. The question isn’t whether dealerships will be affected — but whether you will be ready. 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. 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.
FTC Crackdown on Deceptive Pricing Practices What This Means for Auto Dealers By BARRETT “BARRIE” CHARAPP BEATY, Dealer Franchise Law Specialist, Charapp & Weiss LLP On Aug. 19, 2026, the Federal Trade Commission (FTC) and the State of Connecticut secured a $4 million settlement with Chase Nissan LLC, along with its owners and managers, including general, sales and finance managers, resolving allegations of deceptive and unfair practices in the advertising; marketing; promotion; offering for sale, lease or financing; and the sale, lease or financing of motor vehicles. The FTC and Connecticut sued for deceptive and unfair practices in violation of the FTC Act and the Connecticut Unfair Trade Practices Act (CUTPA). The FTC alleged that the dealership did not honor their advertised prices, double-charged consumers for the cost to certify vehicles they had already advertised as certified, charged consumers for add-ons the consumer either did not know about or authorize, and lied about the amount of mandatory state registration and other fees consumers must pay. This ruling is not an isolated incident. The FTC has pursued similar cases across the country over the past few years. The stipulated consent order not only provides for monetary compensation be paid to the state of Connecticut for restitution and redress, but the Defendants are “permanently restrained and enjoined from misrepresenting, expressly or by implication,” “permanently restrained and enjoined from charging a consumer without having obtained the consumer’s Express, Informed Consent,” and “permanently restrained and enjoined from representing, expressly or by implication, any information relating to any amount a consumer may pay to purchase, finance, or lease a motor vehicle without disclosing the Total Price, Clearly and Conspicuously, as the most prominently displayed item in any visual disclosure.” While many previous settlements with the FTC include owners and general managers, this order is unique in that it also includes sales and finance managers. Each individual defendant will be required to make disclosures to the FTC in that individual’s title or role in any business activity related to selling and financing vehicles for the next six years. THE 97 WARNING LETTERS AND FTC FAQS ISSUED The most recent FTC settlement with Chase Nissan LLC aligns with the intent of the FTC’s warning letters sent to 97 dealership groups nationwide back in March 2026. The letters highlighted six deceptive practices that are in violation of Section 5 of the FTC Act, which prohibits “unfair or deceptive acts or practices in or affecting commerce.” 1. Advertising a price that does not reflect all required fees. The advertised price must be the total price the consumer is expected to pay, excluding only government fees such as tags, title and taxes. 2. Advertising a price that reflects rebates or discounts not available to all consumers. Conditional rebates and discounts cannot be built into the advertised price if not every buyer qualifies. Including a disclaimer will NOT solve this issue, contrary to popular belief. 3. Advertising a price that fails to take into account the amount of an additional required down payment. 4. Conditioning the advertised price on consumers using dealer financing. The advertised price must be available to cash buyers and to customers using outside financing, not only to those who finance through the dealership. 5. Requiring consumers to buy additional items not reflected in the advertised price. If a consumer must buy an add-on to get the advertised price, that add-on belongs in the price. 6. Advertising unavailable or non-existent vehicles. On Sept. 15, 2026, the FTC finally published the long-awaited “Automobile Industry Pricing Transparency: FAQs.” The FTC’s Christopher Mufarrige had promised that FAQs would be forthcoming back in April 2026 during the webinar hosted by the NADA, which was in response to those 97 warning letters. Within the document, the FTC addressed 14 “common questions.” We highly suggest that you scan the QR code and take a look at the actual publication. Though much of the publication’s answers have 6 Virginia Auto Dealer
been discussed by various experts in the industry, it does elaborate on some long-awaited questions, such as in-transit vehicles. In-transit vehicles are permitted to be advertised, but it must be clear that the vehicles are not on the dealership’s lot. Transparency is most important: If a vehicle is in transit or located at an off-site location, the advertisement must plainly state this fact. www.ftc.gov/business-guidance/resources/automobile-industrypricing-transparency-faqs HOW DEALERS CAN AVOID FTC ACTION The most prominent price needs to be the ceiling, not the floor. Any charge the dealership imposes and a consumer must pay, including processing or documentation fees, freight or destination, belongs in the dealer’s most prominent advertised price. Only government charges (tax, title and registration) may be excluded. Audit your online listings and third-party postings so the advertised price matches the price a consumer is actually offered. Sell add-ons as optional. Products added to a vehicle — including paint or fabric protection, VIN etching, total loss protection and service contracts — should have value to the consumer and must be disclosed, itemized and truly optional. Any pre-installed product to be charged to the consumer must be included in the most prominent advertised price. For best practices, it is advised not to pre-install optional products. In the Chase Nissan and Napleton matters, mislabeled and unauthorized add-ons were central to the government’s case. Get express, informed consent for every charge. The consent requirement in recent settlement orders is specific: Before adding a charge, explain what it covers, how much it costs and whether it is optional, then obtain the consumer’s affirmative agreement. A signature at the end of a long closing process or a final payment screen does not cure a charge that was never clearly explained. Build documented consent into your F&I workflow so each add-on has a clear, separate authorization. Make sure you have those menus signed, dated and explained to the consumers. Disclosures. The disclosures in advertisements should be “clear and conspicuous” and used to explain an advertised term, NOT to negate it. Deliver what you advertise. If a vehicle is advertised as “certified,” complete the certification and honor the associated warranty. The certification should be clear whether it’s a dealer certification or a manufacturer certification process. Consumers automatically think it’s manufacturer-certified, and if it’s not, stating only “certified” is deceptive. Do not charge separately to certify a car already advertised as certified. Do not advertise vehicles you cannot sell or prices that cannot be met. Train your people and audit regularly. The dealer as well as managers within your dealership(s) must stress their unwavering commitment to ethical conduct and compliance with the law. Sales and finance staff need to know what is advertised and what is included in the price. A single screenshot of a price the dealership will not honor, or one deal with an unauthorized charge, is the fact pattern these cases are built on. Periodic self-audits, with the assistance of counsel, of advertising, deal jackets, and add-on authorizations, will catch problems before a regulator does. Continued training of staff is necessary to remain in compliance. The bottom line is simple: The most prominent price a customer sees should be the price the customer pays (or less), and every additional charge should be optional, disclosed and affirmatively authorized. That standard is inexpensive to meet compared with the cost of an enforcement action. Dealers who move now, with the guidance of counsel, are far better positioned than those who receive demands from government authorities. vada.com 7
In the Room with Eley Duke III, VADA’s 2026-2027 Chair For Eley Duke III, leading Virginia’s franchised auto dealers is the latest chapter in a family story that has always been about showing up. Eley Duke III has been around the car business long enough to remember that his first job at the dealership was exactly what you might expect for a 13-year-old: washing cars. But by then, Duke Chevrolet GMC was already much more than a place to buy a car. It was part of his family. Duke’s grandfather, Ray Duke, got his start in the automotive business after operating a gas station and trucking business in Carrsville. He eventually worked his way into running a Suffolk dealership and purchased it in 1968, renaming it Duke Oldsmobile Cadillac the following year. Eley’s father, Eley Duke Jr., later joined him in the business. Eley Jr. died of brain cancer in 1989. Eley’s mother, Lydia, stepped into the dealership soon afterward, joining Ray Duke and helping carry the business into another generation. Eley III officially joined the family dealership in 1997 and began to learn from his mother and grandfather until he retired. Lydia is still in the dealership every day. Eley credits her, plus some great team members over the years, for being where he is today. “And one valuable lesson early on: ‘we’re in the people business,’” Duke said. Today, he serves as president and executive manager of Duke Chevrolet GMC and is the third generation of the Duke family to help lead the business. While history matters to Duke (his family stretches back six generations in Suffolk), he is far less interested in preserving a family business as a museum piece than in making sure it continues to matter. “Community is everything to us,” he says. “If this is your community, you should want to have a better place for your community.” A FAMILY CONNECTION TO VADA Duke’s connection to the Virginia Automobile Dealers Association goes back nearly as far as his connection to the dealership. His father served on the VADA Board of Directors before his death in 1989, and Eley remembers attending VADA conventions as a teenager. Decades later, at age 44, Duke joined the board himself. After a decade of board service, Duke is now chair of VADA, representing franchised new car and truck dealers across Virginia. For Duke, serving the association is part of the responsibility that comes with owning a dealership. “You should give back to the organization that helps you every day,” Duke said. “There are dealers that expect VADA to support them, but they’re not in the room, and I have a problem with that.” VADA President and CEO Don Hall, who has known Duke and his family for decades, says Duke also brings an important perspective to the role. Duke is a single-point dealer with two franchises under one roof, operating just outside a major Eley and mom, Lydia, with his new honorary “1D” tag, given to VADA chairs during their time in the position 8 Virginia Auto Dealer
metropolitan market — a much different business than the large dealership groups that increasingly dominate automotive retail. “He brings to the table something different that needs to be heard,” Hall said. At a smaller dealership, Hall said, the dealer is often much closer to the day-to-day operation — working across sales, service, parts and F&I while interacting directly with customers. That gives Duke a view of the business that Hall believes has value well beyond smaller dealerships. “There are some things we can learn from our smaller brothers and sisters out there because they tend to be more customer-centered in order to survive in a very competitive market,” Hall said. “His mentality — his ethos, if you will — and the way he operates is critical for all of us to hear and learn from.” Duke’s message is straightforward: Show up, get involved, help each other. “The laws and regulations governing dealerships do not simply take care of themselves. Neither does the franchise system,” he said. “Dealers have to participate in the debates that determine the future of their businesses.” Recent years have offered plenty of examples. VADA members have helped score major changes to Virginia’s franchise laws to prevent direct sales by manufacturers, strengthened dealers’ ability to receive fair compensation from manufacturer recall and warranty work, and more. “If you want to have a healthy dealership and dealer body in the Commonwealth, you’ve got to protect it,” Duke said. A BUSINESS BUILT AROUND PEOPLE Duke has watched the automobile business change dramatically during his career. That includes brands on his building, technology and the way customers shop for cars and trucks. Consumer expectations have changed, too. The Duke dealership itself evolved along the way. The family added Chrysler, Plymouth and Dodge in the early 1980s. Buick, Pontiac and GMC in 1990 and Chevrolet in 1994. Eley became vice president in 2008, and today Duke operates as a Chevrolet and GMC dealership serving Suffolk and the surrounding region. Yet Duke tends to bring conversations about the future of the business not toward technology but back to something even more important: people. The dealership eventually adopted “It’s All About U” as its defining message, an evolution of an earlier “Discover the Difference” campaign. The idea is simple: make buying and owning a vehicle less complicated and build a relationship that lasts beyond a single transaction. It also means investing in employees and worrying about where the next generation of dealership talent will come from, particularly technicians. “If we don’t find the right people, train them and keep them interested,” Duke said, “what’s going to happen down the road?” It is one of the challenges he sees not simply for Duke Chevrolet GMC, but for dealerships everywhere: adapting to extraordinary technological change without losing sight of the people required to make the business work. VADA’s Hall has also watched Duke personally for much of his life. He knew Duke’s father when he served on the VADA board in the late 1980s and watched Lydia Duke take a larger role in the dealership after her husband’s death. He describes Eley as “a Virginia gentleman” whose concern for employees is genuine. “He really cares about people in the true sense of the word,” Hall said. “I’ve been around him for a long, long time. I’ve watched him grow up, literally.” Eley and his wife, Nicole Harrell, have two sons, ages 20 and 13, and whether either eventually becomes the fourth generation at Duke Chevrolet GMC remains to be seen. For now, his focus is on his team, and the business and industry his family has spent decades building — and doing his part to position all for the future. “The business is going to continue to change,” Duke said. “You’ve got to be willing to change with it and have a great team.” Eley and his wife, attorney Nicole Harrell Eley with Parker, Nicole Harrell and “E” vada.com 9
Great Work Begins With Great People … This magazine is a perfect place to recognize your employees for: » Awards » Promotions » Anniversaries » Achievements » Retirements Contact us today to place your announcement. Call (801) 676-9722 or scan the QR code to fill out the form. Let’s Celebrate Them!
Upcoming Events VADA LEGAL & LEGISLATIVE LUNCH What will 2027 change for your dealership? Join the VADA legal and legislative team for a first look at the issues we’re focused on in 2027, and what dealers should expect from the upcoming Virginia General Assembly session and from federal regulators. This is a must-attend luncheon for dealers, general managers and controllers who want to stay informed, stay compliant and plan ahead for the year. We’re offering two dates and two locations. Wednesday, Dec. 9 — Richmond 11:30 a.m. The Place at Innsbrook 4036-C Cox Rd. Glen Allen, VA 23060 vada.com/event/2027-legal-and-legislative-update-richmond Thursday, Dec. 10 — Hampton Roads 11:30 a.m. Hampton Roads Convention Center 1610 Coliseum Dr. Hampton, VA 23666 vada.com/event/2027-legal-and-legislative-update-hampton-roads 2027 NADA SHOW Feb. 17-20, 2027 Orlando, FL See you in Orlando! The auto industry event of the year brings dealers together for four days of education, the industry’s largest expo of products and technology, and time with peers from across the country. Virginia dealers: Scan the QR code to register now and plan to join us. nada.org/nada-show/nada-show-2027attendee-registration MADA-VADA-WANADA RECEPTION Feb. 18, 2027 When you’re in Orlando for the 2027 NADA Show, make plans to attend our annual joint reception with Maryland and Washington, D.C., area retail automotive leaders. 5:00-7:00 p.m. Hyatt Regency Orlando 9801 International Dr. Orlando, FL 32819 vada.com 11
Koons Gives $30 Million to Dealer-Centric Northwood University Longtime VADA Member and Automotive Entrepreneur Makes the Largest Philanthropic Commitment in Michigan University’s History Jim Koons, a 1973 Northwood graduate and former CEO of Jim Koons Automotive Companies, built one of the nation’s largest privately owned dealership groups from its roots in Northern Virginia. His commitment to Northwood includes $20 million in direct philanthropic investment and another $10 million in challenge funding tied to undergraduate enrollment growth and future fundraising milestones. The funding will support student housing, automotive education, scholarships and other university initiatives. “This gift reflects my gratitude for my Northwood education and belief that Northwood is uniquely positioned to develop free enterprise leaders who understand the positive impact this economic system has on our country and the entire world,” Koons said in announcing the commitment. “Entrepreneurship and capitalism still provide the greatest opportunity to improve people’s lives.” A VIRGINIA DEALERSHIP LEGACY Koons has deep roots in Virginia’s franchised dealer community. His father, John Koons, opened the family’s first dealership in Falls Church in 1964. Jim later took control of the business and expanded it into a major Mid-Atlantic dealership Jim Koons and wife Cece with Northwood University President Kent MacDonald 12 Virginia Auto Dealer
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 organization. By 2023, Jim Koons Automotive included 20 dealerships — representing 29 franchises across Virginia, Maryland and Delaware — and employed more than 2,500 people. Koons and his dealerships were longtime members of the Virginia Automobile Dealers Association. Stores included Koons dealerships in Arlington, Falls Church, Sterling, Tysons Corner and Woodbridge, and the Koons team was heavily involved in VADA initiatives. Koons was regularly named to the Virginia Business Power List 500. The publication often noted his long history of philanthropy. Later that year, Koons sold Jim Koons Automotive Companies to Asbury Automotive Group in a $1.2 billion transaction, one of the largest dealership acquisitions in automotive retail history. At the time, the Koons organization had generated approximately $3 billion in annual revenue. INVESTING IN THE NEXT GENERATION Koons’ latest commitment builds on years of support for Northwood. He has remained closely involved with the university since earning his bachelor’s degree in business management there in 1973, including serving as commencement speaker in 2011 and receiving an honorary doctorate. The gift also reflects a natural connection between Koons’ career and his alma mater. Northwood bills itself as “America’s Free Enterprise University,” with a mission centered on developing free-enterprise leaders. The university also has deep ties to the retail automotive industry, offering specialized automotive and mobility programs that include dealership operations and hands-on dealership simulations, along with its Center for Automotive & Mobility Studies. For generations of students who have gone on to careers as dealers and automotive executives, Northwood has served as a direct pipeline into the industry. THE KOONS COMMITMENT • $10 million to transform two residence halls into a first-year living and learning community • $5 million toward a new academic hall and conference facility • $5 million for student scholarships through a fundraising challenge • Up to $10 million in additional challenge funding tied to enrollment growth and fundraising goals Northwood University President Kent MacDonald said, “Jim’s landmark gift reflects his conviction in free enterprise and his firsthand understanding of its power to create opportunity and transform lives.” The university announced the commitment Sept. 18 during the 2026 Center for Automotive & Mobility Studies Industry Summit, where Koons delivered a keynote address ahead of Northwood’s 63rd International Auto Show. vada.com 13
VADA PAC Supports Virginia Candidates with ‘Drive to 250’ Virginia’s auto dealers have always been drivers of progress — keeping customers on the road, creating jobs and powering one of the Commonwealth’s most important economic engines. As we celebrate America’s 250th anniversary in 2026, the road ahead demands the same commitment and unity that built our industry. Drive to 250 is our call to action, with the goal of raising $250,000 to support pro-dealer candidates. Because the policies written in Richmond shape the future of every dealership, from the sales floor to the service bays, we must ensure our voices are heard. Through the Virginia Auto & Truck Dealers Political Action Committee, we support candidates who understand our industry, value free enterprise and will protect a pro-business environment for Virginia dealers. To secure a pro-dealer environment, we need every member of the Virginia Automobile Dealers Association to contribute to our PAC. Your support ensures that our industry’s story is heard. A $250 level is now available — a dollar for each year of American independence — as well as a $25 option, making it easy for our many dealership employees and industry partners to give what they can to this important cause. Thank you to the following who have contributed to VADA PAC so far this year. Visit vadapac.com/contributors for the most up-to-date contributor list and to make a contribution today. As of Sept. 24, 2026. GOVERNOR'S CLUB — $10,000 AND UP Battlefield Automotive Group — $10,000 Battlefield Chevrolet Battlefield Ford Culpepper Battlefield Toyota Madison Ford LLC Steve Fay, Dealer Principal Beyer Automotive Group — $10,000 Beyer Kia of Falls Church Beyer Subaru Beyer Volvo Cars Dulles Beyer Volvo Cars Falls Church Land Rover Alexandria John Altman, Vice Chair Carter Myers Automotive — $12,500 CMA's Chrysler Dodge Jeep Ram of Lynchburg CMA's Chrysler Dodge Jeep Ram of Lynchburg, Matt Walsh CMA's Colonial Auto Center, Bruce Kolz CMA's Colonial Chevy CMA's Colonial Honda, Ed Nicol CMA's Colonial Hyundai CMA's Colonial Kia CMA's Colonial Nissan, H. Carter Myers III, 1995 VADA Chair CMA's Colonial Subaru CMA's Honda of Lynchburg, Rich Tritel CMA's Honda of Winchester CMA's Hyundai of Lynchburg CMA's Hyundai of Winchester CMA's Subaru of Winchester, Burke O'Malley, 2012 VADA Chair CMA's Valley Chrysler Dodge Jeep Ram CMA's Valley Honda, Ben St. Ours CMA's Valley Nissan, Chad Arnold CMA's Valley Subaru, Charles Camp CMA's Valley Volkswagen CMA's Volvo of Charlottesville, Liza Borches, 2023 VADA Chair CMA's Williamsburg Ford, Dave Lawson Duke Automotive — $10,000 Duke Chevrolet GMC Eley Duke III, 2027 VADA Chair 14 Virginia Auto Dealer
Haley Automotive — $10,000 Haley Buick GMC Haley Buick GMC Airport Haley Chevrolet Haley Chrysler Dodge Jeep Ram Haley Ford Haley of Farmville Inc. Haley Toyota of Roanoke Haley Toyota Richmond Volvo of Midlothian Volvo of Richmond Kinsey Pridgen, President Hyman Brothers Automotive Group — $10,000 Hyman Bros Infinity of Richmond Hyman Bros Nissan Kia Hyman Bros Subaru Land Rover Richmond Huddy Hyman, Owner Lindsay Auto Group — $10,000 Lindsay Buick GMC Lindsay Cadillac Company Lindsay Chevrolet Lindsay Chevrolet of Front Royal Lindsay Chrysler Dodge Jeep Ram Lindsay Lexus of Alexandria Lindsay Volkswagen of Dulles Lindsay Volkswagen of Manassas Lindsay Volvo Cars of Alexandria Chris Lindsay, 2010 VADA Chair Malloy Auto Group — $10,000 Malloy Chevrolet Alexandria Malloy Chevrolet Cadillac Malloy Chevrolet of Charlottesville Malloy Ford Alexandria Malloy Ford Charlottesville Malloy Ford of Winchester Malloy Toyota Geoff Malloy, President Ourisman Virginia — $10,000 Ourisman Chantilly Kia Ourisman Chantilly Toyota Ourisman Chevrolet Buick GMC of Alexandria Ourisman Chrysler Jeep Dodge Ram of Alexandria Ourisman Fairfax Toyota Ourisman Ford & Lincoln Ourisman Kia Alexandria Michael Bennett, CFO Pohanka Auto Group — $10,000 Honda of Chantilly Pohanka Acura Pohanka Chevrolet Inc. Pohanka Lexus Geoff Pohanka, President Pohanka Nissan-Hyundai Fredericksburg — $10,000 Pohanka Nissan-Hyundai Fredericksburg Pohanka Nissan Stafford Tim Pohanka, Vice Persident and Executive Manager Sheehy Auto Stores — $15,000 Sheehy Ford Sheehy Ford Ashland Sheehy Ford of Springfield Sheehy Ford of Warrenton Sheehy GMC of Fredericksburg Sheehy Honda Sheehy Hyundai Chantilly Sheehy Lexus of Richmond Sheehy Nissan of Manassas Sheehy Subaru of Fredericksburg Sheehy Subaru of Springfield Sheehy Toyota of Fredericksburg Sheehy Toyota of Stafford Sheehy Volkswagen Vince Sheehy, President Shelor Motor Mile — $10,000 Motor Mile Chevrolet Buick Motor Mile Chrysler Dodge Jeep Motor Mile Ford Motor Mile Honda Motor Mile Hyundai Pulaski Motor Mile Salem Motor Mile Chevrolet Shelor Chevrolet Shelor Toyota Larry Shelor, President and 2005 VADA Chair Southern Automotive Group — $10,000 Southern Acura Newport News Southern Buick GMC Kia Greenbrier Southern Buick GMC Kia Virginia Beach Southern Chevrolet Southern Chevrolet Dodge Jeep Ram Chesapeake Southern Chrysler Dodge Jeep Ram FIAT Newport News Southern Chrysler Dodge Jeep Ram Greenbrier 1414 Southern Chrysler Dodge Jeep Ram Greenbrier 1717 Southern Dodge Chrysler Jeep Ram FIAT Southern Ford Southern Hyundai Chesapeake Southern Hyundai Newport News Southern Mazda Newport News Southern Nissan Chesapeake Southern Team Hyundai Nissan Subaru Volkswagen Southern Team Nissan of New River Valley Southern Volkswagen Greenbrier Todd Skelton David Dillon, 2024 VADA Chair vada.com 15
SENATE CLUB — $5,000 TO $9,999 Banister Automotive — $5,000 Banister Nissan of Chesapeake Banister Nissan of Norfolk Banister Mitsubishi Hampton Banister Chrysler Dodge Jeep Ram of Hampton Dan Banister, President and 2024 VADA Chair Huber Automotive Group — $5,000 Mercedes-Benz of Fredericksburg Volvo of Fredericksburg Clay Huber, President Ted Britt Ford — $5,000 Joseph Britt, GM HOUSE CLUB — $2,500 TO $4,999 Cavalier Ford — $2,500 Cavalier Ford Lincoln Steve Klimkiewicz, President Duke Automotive — $2,500 Lydia Duke Farrish of Fairfax Inc. — $2,500 Farrish Chrysler Dodge Jeep Farrish Subaru Kevin Farrish, President Johnson Family Chevrolet — $2,500 Adam Johnson, President Magic City Ford Lincoln — $2,500 Magic City Chevrolet GMC Magic City Chrysler Dodge Jeep Ram Bedford Magic City Ford Lexington Cameron Johnson, CEO Radley Auto Group — $2,500 Radley Cadillac Radley Chevrolet Radley Mitsubishi Michelle Radley Chevrolet Michelle Radley, Dealer Principal Suttle Motor Corp. — $2,500 Mike Suttle, President and 2006 VADA Chair PATRON — $1,500 TO $2,499 Alexandria Volkswagen — $1,500 Wes Greenway Beach Ford — $1,500 Barton Ford Bob Barton, Vice President Tom Barton, CEO and 2017 VADA Chair Kern Motor Co. — $1,500 Rick Kern, Owner Leesburg Buick GMC Hummer — $1,500 Owen Ford Jeff Syed, Owner Marlow Automotive Group — $1,500 Marlow Ford Marlow Motor Company Tri-State Nissan Emily Marlow Beck, President and 2022 VADA Chair Mercedes-Benz of Arlington — $1,500 Ralph Mastantuono, GM Parsons Kia — $1,500 Susan Hobbs, GM Radley Auto Group — $2,000 Karen Radley Acura Volkswagen Radley Acura Rod Emmons, President Shamrock Associates — $1,500 Dick Strauss, 1980 VADA Chair Strosnider Chevrolet — $2,000 Chris Strosnider, President INDIVIDUAL Bob Barton — Beach Ford Fred Kirschbaum — Checkered Flag Auto Group Moheeb Iqbal, GM — Parks Chevrolet Richmond 16 Virginia Auto Dealer
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. HALEY AUTO GROUP FIGHTS HUNGER AND EXPANDS ACCESS Members of the Haley Auto Group team partnered with the Latinos in Virginia Empowerment Center to help improve access to fresh and healthy food within the Latino community. The team passed out boxes of food, coordinated conversations about outreach in the community and provided a welcoming and respectful environment. CASEY SUBARU BRINGS COMFORT TO PATIENTS Casey Subaru delivered blankets to patients at Riverside Cancer Treatment Center through the Subaru Loves to Care initiative, bringing warmth and compassion to those undergoing cancer treatment. SAFFORD SUBARU MANASSAS DONATES PATIENT CARE KITS Safford Subaru Manassas shared 30 care kits, each containing handwritten notes of encouragement, coloring books, colored pencils and stress balls. They also donated 80 heart-shaped pillows that unzip into plush blankets. The team is proud to support cancer patients through the Subaru Loves to Care initiative. vada.com 17
PRIORITY HONDA CHESAPEAKE SUPPORTS CHILDREN’S HEALTH Priority Honda Chesapeake was honored to partner with Children’s Hospital of The King’s Daughters (CHKD) and support the life-changing work they do throughout the community. They had the privilege of presenting a $10,000 donation to CHKD, helping advance exceptional pediatric care for children and families. FLOW TOYOTA OF CHARLOTTESVILLE INVESTS IN EDUCATION Flow Toyota of Charlottesville invested in the next generation by presenting a donation to the VA Havoc 434 AAU Basketball Team, helping empower young athletes on and off the court. The support will help cover uniforms and tournament fees for the season. The dealership is proud to play a small part in helping young athletes chase their goals, grow as teammates and create memories that will last a lifetime. PRIORITY TOYOTA SPRINGFIELD STRENGTHENS THE COMMUNITY Priority Toyota Springfield made a donation of $5,000 to ECHO Inc., supporting the organization’s work to provide essential resources, including food, clothing and household necessities, to individuals and families throughout the Burke and Springfield communities. The contribution reflects Priority Toyota Springfield’s continued investment in the well-being of its neighbors and its commitment to addressing everyday needs within the local community. 18 Virginia Auto Dealer
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 SHEEHY GMC OF FREDERICKSBURG DONATES SCHOOL SUPPLIES Sheehy GMC of Fredericksburg held a school supply drive for Spotswood Elementary, helping ensure local students returned to the classroom prepared and confident for the new school year. The effort provided essential supplies to students in the community, underscoring the dealership’s dedication to supporting local schools and the families they serve. vada.com 19
With Aftermarket Products, Does the Vehicle Warranty Still Apply? By BARRETT “BARRIE” CHARAPP BEATY, Dealer Franchise Law Specialist, Charapp & Weiss LLP Dealers often modify new vehicles with non-OEM accessories or parts, such as lift kits on trucks, because it’s what sells in their PMA or because the customer has asked for it. There has been an uptick in questions around whether certain aftermarket products void vehicle warranties. This article discusses the issues that may arise with using non-OEM accessories or parts. Prior to getting into the nitty-gritty of warranty and indemnification issues, we want to remind dealers that any aftermarket products added to the vehicle by the dealer before the consumer shops for and purchases the vehicle must be included in the vehicle’s advertised price. Here’s an example of what the math might look like for a truck with an added lift package: • MSRP of the truck: $50,000 • Discount available to all consumers: -$8,000 • Dealer-installed lift kit: +$5,000 • Processing/doc fees: +$800 • Dealer’s advertised total price: $47,800 NON-OEM ACCESSORIES ARE NOT COVERED UNDER MANUFACTURER WARRANTY In reviewing various dealer sales and service agreements, it appears that the vehicle warranty is not voided if non-OEM accessories and parts are installed on new vehicles. However, the non-OEM product would not be warrantied by the manufacturer and covered by the new vehicle warranty. If Dealer modifies or sells a modified new Motor Vehicle, or installs any equipment, accessory, recycled part or part not supplied by [Manufacturer], or sells any non [OEM] service contract for a Motor Vehicle, Dealer will disclose this fact on the purchase order and bill of sale, indicating that the modification, equipment, accessory or part is not warranted by [Manufacturer] or, in the case of a service contract, the coverage is not provided by [Manufacturer] or an affiliate. (emphasis added) The Company shall from time to time establish, by notice to the Dealer, the warranty applicable to each GENUINE PART. There shall be NO OTHER WARRANTY, express or implied, including any warranty of MERCHANTABILITY OR FITNESS, or any other obligation of the Company to the Dealer or the customer with respect to any GENUINE PART or any part thereof except the warranty established pursuant to this subparagraph. The Dealer shall expressly incorporate such warranty as a part of each sale of a GENUINE PART, in accordance with instructions set forth in the Warranty Manual. Manufacturers typically only warrant their genuine parts and accessories. Therefore, all other parts and accessories are not warranted under their bumper-to-bumper warranty. So, even though the modification to the new vehicle will not void its warranty, it could cause other issues for the dealer. The non-OEM part or accessory may have a warranty, but you need to check that vendor’s warranty to determine what it covers and any limitations it may have. VIOLATION OF DEALER AGREEMENT IF MODIFICATION AFFECTS SAFETY It appears that if the dealer modifies the new vehicle with non-OEM accessories or parts that could adversely affect the vehicle’s safety, emissions or structural integrity, the dealer could be in violation of its agreement with its manufacturer. 20 Virginia Auto Dealer
DEALER agrees that it will not make any modifications to [Manufacturer] Products that may impair or adversely affect a vehicle’s safety, emissions or structural integrity. For example, in the event of a rollover crash caused by a lift-kit suspension change on a truck, it is foreseeable that the OEM would not indemnify a dealer if someone injured in the rollover crash sues the dealer and the OEM. Such a liability suit puts your dealership and your relationship with the OEM at risk. Additionally, the OEM would claim breach of the DSSA. The customer and the OEM would argue that the lift kit altered the vehicle’s suspension, thereby compromising its safety. In addition to not using non-OEM accessories or parts that would adversely affect safety, emissions or structural integrity, the dealer agreement could also provide that you would be in violation if those non-OEM accessories or parts adversely affected the mechanical operation of a motor vehicle. Subject to the provisions set forth below, DEALER has the right to sell, install or use, for making non-warranty repairs, products that are not Genuine [OEM] Parts or Accessories. DEALER acknowledges, however, that its customers expect that any parts or accessories that DEALER sells, installs or uses in the sale, repair or servicing of [Manufacturer Motor] Vehicles are, or meet the high quality standards of, Genuine [Manufacturer] Parts or Accessories. DEALER agrees that in sales, repairs or servicing where DEALER does not use Genuine [Manufacturer] Parts or Accessories, DEALER will only utilize such other parts or accessories that will not adversely affect the mechanical operation of the [Manufacturer] Motor Vehicle being sold, repaired or serviced, and that are equivalent in quality and design to Genuine [Manufacturer] Parts or Accessories. It is important to check your dealer sales and service agreement to determine whether any modification to a new vehicle could violate that agreement. vada.com 21
NOTIFICATION OF NON-OEM PRODUCTS If you use non-OEM accessories or parts, you may be required by the dealer agreement to notify customers, and possibly get specific consent, that the parts are non-OEM and not covered by the manufacturer’s warranty. In order to avoid confusion and to minimize potential customer dissatisfaction, in any instance where DEALER sells, installs or uses other than Genuine [Manufacturer] Parts or Accessories, DEALER shall disclose such fact to the customer and shall advise the customer that these items are not included in warranties furnished by DISTRIBUTOR. Such disclosure shall be written, conspicuous and stated on the customer’s copy of the service or repair order or sale document. In addition, DEALER will clearly explain to the customer the extent of any warranty covering the parts or accessories involved and will deliver a copy of the warranty to the customer. Dealer shall not represent as new, genuine [Manufacturer] Parts or as parts approved or authorized by the Company or the Manufacturer, any parts which are not in fact new, genuine [Manufacturer] Parts or parts expressly approved or authorized by the Company or the Manufacturer. Dealer will not, without the specific consent of the owner, install on any [Manufacturer] Vehicle any non-approved parts or accessories which may (a) affect the owner’s rights under any warranty applicable to the Vehicle or (b) create any unreasonable risk to motor vehicle safety. Even if the dealer agreement does not require you to notify the customer, it may be good practice to notify consumers that non-OEM accessories and parts have been used on the new vehicle to avoid consumer claims of fraud or breach of contract. If the non-OEM accessories or parts are used and have a warranty, you may want to provide the consumer with that warranty information, since the parts will not be covered by the manufacturer’s warranty. MANUFACTURER INDEMNIFICATION In the event that the non-OEM accessories or parts are alleged to result in a product claim or an injury claim, the manufacturer may have no obligation to indemnify you against these claims. [Manufacturer] will assume the defense of Dealer and indemnify Dealer against any judgment for monetary damages or rescission of contract, less any offset recovered by Dealer, in any lawsuit naming Dealer as a defendant relating to any Product that has not been altered… (emphasis added) Since using non-OEM accessories or parts could alter the vehicle, the manufacturer may have grounds to decline a request for indemnification in a product or injury claim. There is also a concern that, should there be an injury claim involving modified vehicles in which the consumer sues the dealer and the manufacturer, the manufacturer could seek indemnification from the dealer. INSURANCE COVERAGE If there is a product claim or personal injury claim that is the result of the non-OEM accessories or parts modification, your insurance company may have the right to deny coverage. If your dealership is in the practice of modifying new vehicles, you may want to put the insurance company on notice since that increases the carrier’s risk. CONCLUSION Although using non-OEM accessories and parts to modify new motor vehicles may not void the manufacturer’s warranty, vehicle modification could cause other issues. To minimize your dealership’s risk: • Make sure you have checked your dealer agreement to determine whether you are in compliance with its language when modifying new vehicles. • Make sure you are notifying consumers that the vehicle has been modified using non-OEM accessories and that those parts and accessories will not be covered by the manufacturer’s new vehicle warranty. • Make sure you don’t need specific consent to install non-OEM parts. • Make sure that the modifications do not result in any safety issues or adversely affect the mechanical operation of the vehicle in a way that could lead to product or personal injury claims, which could put your dealership at risk that the manufacturer will not indemnify or insurance may deny coverage. 22 Virginia Auto Dealer
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 Sign Up Now vada.com 23
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