2026 Pub. 7 Issue 3

West Virginia Dealers Support Flood Relief Efforts 12

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?® Nicholas Breslove, nicholas.breslove@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA. Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Nicholas Breslove, nicholas.breslove@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 West Virginia Automobile Dealers Association (WVADA) | MBR Connect™. All rights reserved. WVADA News 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 WVADA, 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. WVADA News is a collective work, and as such, some articles are submitted by authors who are independent of WVADA. 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 PRESIDENT’S MESSAGE 5 Looking Ahead: A Season of Opportunity By Jared Wyrick, President, WVADA COUNSELOR’S CORNER 6 Arbitration Agreements: Advantages and Disadvantages By Johnnie Brown, Esq., Jackson Kelly PLLC BY THE NUMBERS 10 Segregation of Duties in the Dealership Accounting Office Identifying Incompatible Duties and Building Compensating Controls By Tasha Sinclair, CPA/ABV, Principal, Tetrick & Bartlett PLLC 12 West Virginia Dealers Support Flood Relief Efforts 14 New OSHA Flood‑Safety Guidance What It Means for Your Dealership By Lauren Bailey, Vice President of State Legal & Regulatory Affairs, ComplyAuto 16 Uncovering and Preventing AI Fraud in the Hiring Process 18 Why Safety Matters at Your Dealership The Cost of Inaction 20 In the Community 25 WVADA Preferred Partner Programs 26 Executive Committee, Board of Directors and Directors at Large 2026 ISSUE 3 18 JARED WYRICK President HALEY JUSTICE Communications & Events Director WEST VIRGINIA AUTOMOBILE DEALERS ASSOCIATION 1618 Kanawha Blvd. E. Charleston, WV 25311 Phone: (304) 343-4158 wvcar.com MEET OUR TEAM ELAINE JUSTICE Office Administrator AMY BROWN Office Administrator 5 WVADA NEWS 4

PRESIDENT’S MESSAGE Jared Wyrick President, WVADA As we look toward the months ahead, there is a lot to be excited about. Each new season brings an opportunity to reflect on where we have been, but more importantly, to look forward to where we are going. I believe our association is entering an exciting time, and I am proud of what we continue to accomplish together. We have a busy fall ahead of us, starting with our upcoming Board Retreat! This is a valuable time to discuss our goals, evaluate the needs of our members and develop plans that will continue to move our organization forward. I look forward to the conversations and ideas that will come from this time together. We are also looking forward to our Washington, D.C., Conference, where we will have the opportunity to connect with policymakers and fellow dealers while making our voices heard on the issues that matter most to our businesses: stopping controversial right to repair legislation, backed by big insurance and aftermarket parts companies; and supporting the Connected Vehicle Safety Act, to ban Chinese automakers’ entry into the U.S. Advocacy remains one of the most important benefits we can provide our members, and having a strong presence in Washington allows us to help shape the future of our industry. Looking Ahead: A Season of Opportunity Registration for the DMV Seminars is now open! Scan the QR code to learn more and get the registration form. Our DMV seminars will also provide an important opportunity for education and preparation. We urge all relevant dealership personnel to attend this year’s seminar, which will cover critical updates on the new Digital Title Vault for secure title management and training on the revamped Vehicle Registration System (VRS). We will be focusing on streamlined workflows for both in-state and 50-state processing, nationwide electronic titling, and expedited lien payoffs and releases. We encourage you to take advantage of these educational opportunities and bring your teams whenever possible. As we enter this next season, I encourage each of you to stay engaged, stay informed and take advantage of the opportunities our association provides. The future of our industry will bring challenges, but it will also bring opportunities — and I am confident that, together, our dealer community is ready for both. Thank you for your continued membership, support and commitment to our association. I look forward to seeing many of you at our upcoming events and, most importantly, to continuing to work together toward a strong and successful future. Here’s to a great fall! WVADA NEWS 5

COUNSELOR’S CORNER Johnnie Brown, Esq. Consumer and employment lawsuits are unpredictable liabilities in dealerships. Dealers can go years without any significant lawsuits and then be surprised by multiple suits in a short time frame. For years, mandatory arbitration agreements have been thought to be a panacea for controlling that exposure. But plaintiffs’ attorneys have gotten more aggressive about fighting to stay out of arbitration, and jury verdicts against dealerships have grown sharply larger. The question dealership owners should be asking in 2026 isn’t, “Should we use arbitration agreements?” The question should be, “Is our arbitration provision actually working, and are they worth the trade-offs?” Here’s a summary of the real advantages, the genuine downsides and what a well-built program looks like. BRIEF LEGAL BACKGROUND Arbitration agreements are governed primarily by the Federal Arbitration Act (FAA), and the United States Supreme Court and West Virginia Supreme Court spent the last three decades steadily strengthening employers’ ability to enforce them. If the FAA is not used, West Virginia also enacted an updated arbitration statute in 2015. The trend line is clear with arbitration; courts have consistently sided with businesses who structure their agreements correctly. For example, an estimated 80% of Fortune 100 companies have used employment arbitration agreements since 2010, largely in response to the rise of employment cases, but the same considerations can be examined by West Virginia auto dealers with both employment and consumer claims and lawsuits. THE ADVANTAGES ∙ Class action waivers are the single biggest win. Eliminating even one class action can meaningfully cut a dealership group’s litigation costs — and it can also lower your profile with the plaintiffs’ employment bar, which tends to target companies known for large exposure. ∙ Lower overall cost of resolution. Studies show that well-run arbitration programs tend to reduce class litigation exposure, limit discovery and push cases toward earlier, lower settlements with a more streamlined process than court litigation. However, I personally find this questionable Arbitration Agreements: Advantages and Disadvantages WVADA NEWS 6

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because of the significant upfront costs and the expense of an arbitration service and arbitrators. Of course, my impression is more anecdotal. This is a benefit that needs to be considered closely. ∙ No juries, no runaway verdicts. This may be the most important advantage for dealerships specifically. Jury verdicts of $10 million or more (“nuclear verdicts”) have grown sharply in both frequency and size. Arbitration takes the jury out of the equation entirely. ∙ Conf identiality. Arbitration proceedings and pleadings generally aren’t part of the public record, unlike court filings. ∙ Predictability and control. Arbitration outcomes are far more consistent than jury verdicts, and the agreement itself can be drafted and rolled out in the way that best fits your business. WHAT THE DATA SHOWS There is no single national database tracking arbitration outcomes, but the following, albeit only for employment matters, available numbers consistently favor arbitration over litigation: ∙ According to the American Arbitration Association (AAA), for employment cases between late 2017 and late 2022, 77% settled, only 9% went to a final award and the rest were resolved other ways. ∙ Of the cases that did reach an award, employees won roughly 26% of the time. ∙ More recent data (2024) shows similarly high settlement rates between arbitration and civil cases. ∙ By comparison, employees who go to trial in federal court win less than arbitration, but the rare wins can be enormous, which is exactly the “low-probability, high-reward” dynamic that makes litigation so risky for employers. In West Virginia, I do believe a consumer or employee’s chance of prevailing is higher than the average in the federal system across the United States. ∙ Arbitration usually resolves faster with streamlined discovery procedures and more limited motion practice that occurs in court. The takeaway for dealership owners: Arbitration doesn’t eliminate liability, but it substantially caps exposure to individual claims and will generally limit a runaway verdict, while resolving disputes faster for everyone involved. THE DISADVANTAGES, THEY’RE REAL Arbitration isn’t a silver bullet, and dealership owners should go in with clear eyes about the downsides. ∙ Disputes don’t disappear. Arbitration can reduce the volume and cost of disputes, but it doesn’t eliminate them. ∙ Compelling arbitration isn’t free or guaranteed. Motions to compel arbitration take time, cost money and aren’t always granted. ∙ You pay the upfront costs. If you use an arbitration provider/agency, those administrative costs — plus the arbitrator’s fees — typically fall on the company, not the employee. ∙ Extremely limited appeal rights. Under the FAA, your ability to appeal an unfavorable arbitration decision is much narrower than it would be after a court judgment. Practically, there is no appeal of even a bad decision. ∙ Not every claim is arbitrable. Unemployment claims, certain benefit claims, Dodd-Frank whistleblower claims (i.e., whistleblower claims protected under the Dodd-Frank Wall Street Reform and Consumer Protection Act) and sexual harassment/assault claims are generally excluded from mandatory arbitration by federal law. ∙ Mass arbitration risk. A coordinated wave of individual arbitration demands can generate extreme aggregate costs and can be more disruptive than a single class action would have been. ∙ Arbitration doesn’t stop agency action. Government agencies can still bring or process charges regardless of your arbitration agreement. ∙ King Solomon effect. I find that juries are more likely to tell a plaintiff they are wrong than an arbitrator, who may “split the baby” in their decisions. WVADA NEWS 8

BEST PRACTICES If your dealership is adopting or updating an arbitration program, my recommendations are as follows: ∙ Use a standalone arbitration agreement rather than burying it in a retail installment contract or employee handbook. I realize we have to use the lender’s arbitration agreement in the retail installment contract. Let’s consider having a standalone arbitration agreement that is consistent with the lender’s agreement, which mostly uses the American Arbitration Association as their commercial service provider. ∙ Draft the arbitration provision under the FAA and make sure it clearly addresses: ∙ Which claims and parties are covered ∙ Explicit exclusions for non-arbitrable claims ∙ A delegation clause (letting the arbitrator decide arbitrability disputes) ∙ A class action waiver ∙ Plan for mass arbitration risk up front, rather than discovering it after a wave of demands arrives. ∙ Track which version of the agreement each employee signed, confirm signatures are on file and set a clear document retention policy. Agreements that can’t be proven to exist or be signed are agreements that can’t be enforced. If you use a commercial arbitration service, you will need to pre-file your arbitration provision with the service. If you have an arbitration provision, be careful about deciding not to use it all the time. Plaintiff’s counsel has been arguing that such waivers void the arbitration provision. This creates another issue to address when having to file a motion to compel arbitration. BOTTOM LINE For dealership owners, arbitration agreements remain a strong strategic tool. The data shows faster resolution and dramatically reduced exposure to large jury verdicts compared to litigation. But they only deliver those benefits when built correctly: standalone, FAA-compliant, clear about exclusions and actively maintained. A poorly drafted or poorly tracked agreement can cost you the very protection you hoped to gain. Before rolling out or revising an arbitration program, loop in experienced counsel to make sure your agreement reflects current law in every state you operate, but particularly West Virginia. The federal and state landscape shifts often, and what worked five years ago may need updating today. As always, the West Virginia Automobile Dealers Association is ready to assist you. Please do not hesitate to reach out to Jared Wyrick or myself for any help. WVADA NEWS 9 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

BY THE NUMBERS Segregation of Duties in the Dealership Accounting Office IDENTIFYING INCOMPATIBLE DUTIES AND BUILDING COMPENSATING CONTROLS By Tasha Sinclair, CPA/ABV Principal, Tetrick & Bartlett PLLC Dealership accounting offices carry more fraud risk than a typical small business. Vehicle sales, F&I products, floor plan draws, manufacturer incentives and high-dollar cash receipts all flow through a back office that is often just two or three people. That combination — large dollar volume and limited staff — is exactly where segregation of duties (SOD) breaks down, and where most dealership fraud actually occurs. It’s rarely a stranger; it’s almost always a trusted employee with too much unchecked control over a process. WVADA NEWS 10

INCOMPATIBLE DUTY COMBINATIONS TO WATCH SOD asks whether one person controls more than one of: authorization, custody of assets, recordkeeping and reconciliation. Common danger pairings in a dealership include: ∙ Cash Receipts and Posting: The person collecting payments shouldn’t also post them to the customer ledger, or a payment can be pocketed and simply not recorded. ∙ Deal Entry and Cash Receipts: Separate the person posting the deal from the one receiving the down payments. ∙ AP Entry and Check/ACH Release: The person entering vendor invoices shouldn’t also have payment authority; this is the most common fraud vector in any business. ∙ Payroll Entry and Payroll/Master-File Approval: Separate hours/rate entry from the ability to add employees or change pay rates. ∙ Bank Reconciliation by Someone with Transaction Access: If the person reconciling the bank account also records cash activity, the one control meant to catch errors is controlled by the person who might cause them. ∙ Warranty/Rebate Claim Filing and the Related Cash Receipt ∙ Floor Plan Recordkeeping and Physical Vehicle/ Title Custody ∙ DMS Admin Rights and Day-To-Day Data Entry: Unrestricted edit/void access defeats every other control. WHY FULL SEGREGATION IS OFTEN IMPRACTICAL A single-point store with one controller and a clerk or two simply doesn’t have enough people to separate every incompatible pair. That’s a structural reality, not a failure of management. The answer isn’t to force an unworkable staffing model — it’s to add compensating controls that don’t eliminate the concentration of duties but reduce risk through independent detection. COMPENSATING CONTROLS ∙ Owner/GM review of source documents, not just summaries — bank statements, canceled checks/ACH detail and a sample of deal jackets each month. ∙ Independent review of bank reconciliations by the owner, an outside bookkeeper or your CPA if the same person handles both cash and reconciliation. ∙ Dual authorization on checks/wires above a threshold, new vendors and payroll master-file changes. ∙ System-enforced access controls and audit logs in the DMS/accounting system, with periodic review of voids, edits and backdated entries. ∙ Positive pay with your bank to catch altered payees or forged checks. ∙ Surprise cash counts and title/key audits, reconciling vehicles on the lot to titles and the floor plan schedule. ∙ Mandatory vacation or job rotation — many schemes require daily upkeep and unravel once someone else looks at the account. ∙ Owner receives bank, lender and financial statements directly, not filtered through the controller first. ∙ Annual third-party review — even a limited-scope engagement from your CPA focused on cash, floor plan and payables. THE BOTTOM LINE You’ll likely never achieve textbook segregation of duties in a single-store accounting office — and that’s fine. What matters is that no one person can both cause a loss and conceal it without a second, independent set of eyes somewhere in the process, even if those eyes only look periodically. These controls aren’t about distrust of your staff; they protect good employees from suspicion just as much as they protect the dealership. Building even three or four of them into your monthly routine closes most of the exposure that comes from a lean accounting office. Tasha Sinclair, CPA/ABV, is a principal of Tetrick & Bartlett PLLC and has been providing accounting, tax, valuation and consulting services to automobile dealers since 2002. Tetrick & Bartlett PLLC currently serves over 50 dealers in West Virginia, Virginia, Ohio and Pennsylvania and is a member of the AutoCPA Group, a nationwide organization of CPA firms specializing in services to automobile dealers. Tasha can be reached at tsinclair@tb.cpa or (304) 366-2992. WVADA NEWS 11

West Virginia Dealers Support Flood Relief Efforts JENKINS SUBARU HYUNDAI Jenkins Subaru Hyundai was so grateful for the outpouring of support from the community. Because of your generosity, they received tons of donations of much-needed products such as bottled water, cleaning supplies, toiletries, hygiene products, baby essentials, non-perishable food and more, to help families impacted by the recent flooding. Every donation and kind gesture reminds us what it means to be part of such a wonderful and caring community. From everyone at Jenkins Subaru Hyundai, thank you for standing with our community and showing what it means to be West Virginia strong. DAN CAVA GMC & TOYOTA Dan Cava GMC and Dan Cava Toyota collected flood relief donations to support those impacted by the floods in the surrounding communities! Every donation — big or small — helped bring comfort and hope to families during this difficult time! MID-STATE FORD Our hearts are with the families in Upshur County and Lewis County who were impacted by the devastating flooding. Mid-State Ford pitched in by serving as a drop-off location for donations of essential supplies to help those in need. They accepted donations of bottled water, non-perishable food, hygiene supplies (toothpaste, toothbrushes, soap, shampoo, deodorant, diapers, baby wipes, feminine hygiene products, toilet paper and more), games, coloring books, puzzles and other activities for children. Every donation — big or small — helped provide comfort and essential supplies to families as they began to recover. Thank you, Mid-State Ford, for helping support fellow West Virginians. Together, we can make a difference. BUCKHANNON TOYOTA A huge thank you to Encova for generously dropping off disaster relief supplies for our community! WVADA NEWS 12

PREMIER CHEVROLET GMC OF MORGANTOWN When our community needs us, we come together. Premier Chevrolet GMC of Morgantown partnered with WBOY 12News to collect donations for families impacted by the recent flooding across North Central West Virginia. They accepted donations of bottled water, non-perishable food, cleaning supplies, hygiene products, diapers and baby wipes, pet supplies, gloves, flashlights and batteries, and other essential supplies. Thank you to everyone who donated and helped support our neighbors as they recover. Together, we can make a meaningful impact. CMA’S CHEVROLET OF MARTINSBURG CMA’s Chevrolet of Martinsburg collected donations for West Virginia flood relief. 95.9 The Big DAWG was at the dealership, and several people stopped by to donate. Thank you to everyone who helped! Every donation made a difference. We appreciate the community coming together to support neighbors in need. HARRY GREEN CHEVROLET NISSAN The RCB Soccer Team stopped by Harry Green Chevrolet Nissan to donate supplies for the West Virginia flood relief effort. Their generosity and willingness to serve our neighbors are a true reflection of what makes our communities so strong. Every donation brings hope to families affected by the recent flooding, and we are grateful to everyone who has contributed to this effort. Together, we can make a meaningful difference for those in need. Thank you, RCB Soccer, for being part of the relief effort! DUTCH MILLER OF CHARLESTON Following the recent flooding in the Kanawha Valley, the need for relief supplies was critical, so Dutch Miller Auto Group stepped up to help. Their team handled the transportation and distribution of the supplies to make sure they went directly to the families and individuals who needed them most. Thank you, Dutch Miller Auto Group, for helping support our Kanawha Valley neighbors. WVADA NEWS 13

The past few weeks have provided an eye-opening reminder of how fast floodwater moves. In August, severe storms swept across the Midwest and Ohio Valley, bringing flash flooding to communities across the region, barely a month after catastrophic flooding tore through Texas Hill Country along the Guadalupe River and destroyed homes and businesses. For dealerships in the path of severe storms, the risk does not end when the rain stops; it often peaks during cleanup. OSHA has released a set of three flood-safety infographics for outdoor workers, and the guidance lands squarely on how dealerships operate when storms hit. Across the three pieces, the agency covers the health hazards hidden in floodwater (pathogens, fuel and chemicals, submerged debris, displaced snakes and insects, and downed power lines, all of which call for PPE and safety perimeters); the way flood risk shifts with terrain (coastlines facing surge, hillsides prone to mudslides and paved flash-flood zones where water rises fast); and the danger of moving vehicles through floodwater under the banner “Turn Around, Don’t Drown.” For a store with inventory parked outside and staff moving cars as conditions worsen, the throughline is simple: Floodwater conceals dangers you cannot see, and no vehicle is worth putting an employee into moving water. New OSHA Flood‑Safety Guidance WHAT IT MEANS FOR YOUR DEALERSHIP By Lauren Bailey Vice President of State Legal & Regulatory Affairs, ComplyAuto WHERE DEALERS GET HURT: THE CLEANUP Cleanup is the longest and most dangerous phase of a flood, and it is where OSHA’s guidance gets most useful for dealers. Its cleanup fact sheet (Fact Sheet 3276) speaks directly to what staff face over the days they spend in flooded service bays, parts rooms and showrooms hauling out water-logged inventory, which is exactly where injuries happen. Before anyone enters, a flooded building should be inspected and certified safe by a registered professional engineer or architect. Do a preliminary inspection for structural stability and probe standing water with a pole for pits, holes and hidden objects before stepping in. And have a plan for reaching medical help ready before work starts. Water-logged materials are deceptively heavy. OSHA advises teams of two or more for bulky objects, no single-person lifts over 50 pounds, and the use of lifting-assist devices where practical, along with frequent breaks and access to drinking water during a multi-day effort. Crews need the right gear, not whatever is in the trunk: watertight steel-toe boots, gloves, long pants and safety glasses. OSHA specifically warns that sneakers will not stop punctures, bites or crush injuries. A hard hat is needed where debris can fall, and a NIOSH-approved dust respirator is needed for the moldy materials that are all but guaranteed in a flooded showroom or office weeks later. WVADA NEWS 14

Electrical hazards are where flood cleanup turns fatal, and these are the rules to enforce the hardest: ∙ Treat every power line as energized until the utility confirms otherwise, and never touch an object or water in contact with a line. ∙ If wiring has been underwater, or you smell burning insulation or see frayed wires or sparks, shut the system off, follow lockout/tagout and keep it off until a qualified electrician inspects it. That covers flooded lifts, compressors, shop equipment and EV charging hardware. ∙ Ground-fault circuit interrupters are required in all wet locations, and cord-connected tools must be grounded or double-insulated. ∙ Run generators outdoors only (never inside the shop or showroom, because of carbon monoxide) and lock the main breaker OFF before starting to prevent backfeed onto utility lines. Finally, keep fire exits clear of debris and sandbags, confirm enough extinguishers are on hand, and evacuate immediately for any gas leak. Use extreme caution with floating or displaced containers of shop chemicals, and contact the EPA’s National Response Center for disposal advice by calling (800) 424-8802. COMPLYAUTO CAN HELP Flood safety is not something dealerships should be figuring out after the water is already rising. ComplyAuto Safety helps dealerships build and maintain the programs, procedures, and training needed to prepare employees before severe weather hits and manage the hazards that follow. With ComplyAuto Safety, dealerships can keep safety plans and required documentation organized, deliver and track employee training, conduct inspections, document hazards and corrective actions, and maintain compliance records in one place. That gives managers a practical way to turn OSHA guidance into procedures employees can actually follow — whether that means preparing for an approaching storm, keeping employees away from electrical and chemical hazards, or managing a safe cleanup afterward. For dealerships in the path of severe storms, the risk does not end when the rain stops; it often peaks during cleanup. WVADA NEWS 15

WVADA NEWS 16 Uncovering and Preventing AI Fraud in the Hiring Process Hiring has always come with a certain level of risk. Resumes can contain inaccurate information, applicants can exaggerate their experience, and references may not always tell the whole story. Artificial intelligence is adding a new layer to that challenge. Today, AI can be used to create highly polished applications, fabricate credentials, manipulate images and voices, and even help someone misrepresent their identity during a job interview. For automotive dealerships, where employees may have access to customer information, dealership systems, financial data, vehicles and other valuable assets, verifying that the person you are hiring is who they claim to be has never been more important. BambooHR reports that one in four online candidate profiles worldwide could be fake by 2028. While that projection does not mean one in four dealership applicants will be fraudulent, it illustrates how quickly hiring fraud is evolving. MORE THAN A FAKE RESUME AI-generated resumes and cover letters are not necessarily fraudulent. Many legitimate applicants use AI to help organize their experience or improve their writing. The concern arises when AI is used to misrepresent a candidate’s qualifications, experience or identity. Potential risks include fabricated resumes and credentials, identity theft, deepfakes, proxy interviews and fraudulent job postings designed to collect personal information. A proxy interview occurs when someone other than the actual applicant participates in an interview, potentially using AI-generated audio or video to conceal the substitution. A fraudulent applicant may also use stolen or fabricated information to appear more qualified than they actually are. For a dealership, the consequences can go beyond making a bad hire. An individual who gains employment under a false identity could potentially have access to customer records, dealership software, financial information, vehicle keys or other sensitive assets. That makes hiring verification an important part of the dealership’s overall risk-management strategy. WHAT SHOULD HIRING MANAGERS WATCH FOR? Hiring managers should be cautious when an applicant’s information does not add up. Warning signs can include: ∙ A resume that appears perfectly tailored to the job but does not provide many specific details about the candidate’s actual experience. ∙ Difficulty explaining previous jobs, responsibilities or accomplishments in the candidate’s own words. ∙ Information that differs between the application, resume, interview and background-check materials. ∙ Delayed or unusually unnatural responses during a live interview. ∙ A candidate who consistently avoids video or in-person interviews without a reasonable explanation.

WVADA NEWS 17 ∙ Hesitation or inconsistencies when employment, education or identity information is verified. ∙ Credentials or experience that seem unusually impressive but cannot be independently confirmed. These warning signs are not proof of fraud. They are reasons to slow down and verify information rather than making assumptions based on how polished an application appears. That distinction is important. AI can make a legitimate candidate’s resume look more professional, just as it can make fraudulent information look convincing. PUT VERIFICATION INTO THE HIRING PROCESS The best defense is not trying to become an expert at spotting AI usage. It is building verification into the dealership’s normal hiring process. Ask candidates specific questions about their experience and encourage them to describe situations they personally encountered. For example, rather than asking a service technician a broad question about diagnostic experience, ask about a specific repair they completed, how they approached the diagnosis and what they learned from the experience. Verify employment history, certifications, licenses and other qualifications that are important to the position. For technicians, sales professionals, service advisors, parts employees and other dealership positions, make sure the qualifications being relied upon are legitimate and relevant to the job. Identity verification should also be part of the process. Before hiring, dealerships should use appropriate methods to verify a candidate’s identity and follow consistent procedures for all applicants. Background checks and other verification processes should be conducted in accordance with applicable laws and dealership policies. PROTECT THE DEALERSHIP’S SYSTEMS Hiring fraud can be a cybersecurity concern, not just an HR concern. A fraudulent employee may be seeking more than a paycheck. Access to dealership systems can provide opportunities to obtain customer information, financial data, employee information or other sensitive business information. Strong account-security practices can help limit that risk. Two-factor or multifactor authentication can provide an additional layer of protection for applicant accounts, employee accounts and dealership systems. Access should also be limited according to an employee’s role. New employees should receive only the system and information access necessary to perform their jobs, with additional access granted when appropriate. MAKE THE PROCESS CONSISTENT BambooHR recommends five steps for reducing AI-related hiring fraud: 1) audit the hiring process, 2) train hiring teams, 3) establish fraud-prevention checkpoints, 4) maintain consistency across departments and 5) keep the process human-centered. This approach especially makes sense for dealerships, where hiring may involve multiple departments and managers. Sales, service, parts and administrative departments may have different hiring needs, but the basic verification process should be consistent. A candidate should not be able to move through one department’s hiring process with significantly fewer identity or credential checks than another. Training is also important. Hiring managers need to understand that a polished resume, professional video interview or impressive online profile does not necessarily establish that a candidate is who they claim to be. DON’T LET AI MAKE THE HIRING DECISION AI can be a useful tool for recruiting and administrative tasks, but dealerships should be careful about allowing automated systems to make hiring decisions without appropriate human oversight. The EEOC has warned that AI and other algorithmic tools used in employment decisions can create discrimination risks, including potentially screening out qualified applicants with disabilities. Employers remain responsible for complying with federal employment discrimination laws even when technology is involved in the hiring process. That means dealerships should understand how an AI-powered hiring tool is being used, what information it evaluates and how candidates are being screened. Automated tools should support the hiring process, not replace sound human judgment. KEEP THE HUMAN ELEMENT AI is becoming a permanent part of the workplace, and dealerships can benefit from using it appropriately. The goal is not to eliminate AI from the hiring process. It is to understand where it can help and where human judgment and verification remain essential. A candidate may use AI to improve a resume. That alone should not be a red flag. What matters is whether the information is accurate and whether the candidate can demonstrate the skills and experience described. Ultimately, the best protection is a thoughtful hiring process that combines technology with verification, conversation and human judgment. For automotive dealerships, hiring the right person is about more than filling an open position. It is about protecting customers, employees, dealership assets and the business itself. As AI makes hiring fraud more sophisticated, taking the time to verify who you are hiring is an investment worth making.

WVADA NEWS 18 Why Safety Matters at Your Dealership THE COST OF INACTION Workplace safety is a fundamental responsibility for every organization, but at a new-car automobile dealership, it can be easy to overlook the risks that exist beyond the sales floor. Dealerships bring together employees, customers, vehicles, equipment and active service operations every day. From the service bay and parts department to the vehicle lot and customer areas, safety risks are part of the business — and ignoring them can come with significant financial and operational consequences. No dealership wants to see an employee injured at work. Investing in safety training demonstrates dedication to protecting people first while also reducing risk and avoiding costly incidents. According to the National Safety Council, the average cost of a work-related death in the United States was $1.46 million in 2023, while the average cost of a medically consulted workplace injury was $43,000. These figures serve as a reminder that a commitment to safety is a commitment to people and also the long-term health of the business. The true cost of an incident can extend well beyond the immediate medical expense. A workplace injury can lead to workers’ compensation costs, lost productivity, overtime, equipment or property damage, operational disruptions, increased insurance costs and potential regulatory consequences. For a dealership, an injury involving a technician, service advisor, parts employee or lot attendant can affect an entire department. When an experienced employee is unavailable, other team members may have to absorb additional responsibilities, potentially slowing vehicle repairs, service appointments or other customer commitments. SAFETY IS PART OF CUSTOMER SERVICE In a dealership environment, safety also extends to customers and visitors. Customers are walking through parking lots, service drives and showroom areas while employees are moving vehicles and performing work. A wet floor, obstructed walkway, improperly stored equipment or vehicle moving through a busy area can create a hazard for more than just an employee. A strong safety program helps protect everyone who enters the dealership. Clearly marked pedestrian areas, clean and unobstructed walkways, proper vehicle movement procedures, appropriate personal protective equipment and well-maintained equipment are simple examples of proactive risk management. THE SERVICE DEPARTMENT DESERVES SPECIAL ATTENTION The service department presents its own unique set of hazards. Technicians work around moving vehicles, lifts, tools, electrical systems, chemicals, tires and heavy components. Preventing injuries requires more than having safety policies on paper. Employees need training, appropriate equipment and a workplace culture where safe practices are expected every day.

WVADA NEWS 19 The same principle applies to the parts department and vehicle lot. Employees may be lifting and moving parts, operating equipment, working around delivery vehicles or navigating large lots with constant vehicle movement. Identifying these risks before an incident occurs can help prevent injuries and reduce disruptions to dealership operations. WHAT HAPPENS WHEN AN EMPLOYEE IS INJURED? The absence of even one employee can have a ripple effect. In a dealership, losing an experienced technician or other key employee can affect scheduling, productivity and customer service. Other employees may work additional hours to keep up with demand, creating overtime costs and potentially increasing fatigue-related risks. There can also be longer-term consequences. A pattern of workplace injuries can affect employee morale and retention and may make it more difficult to attract qualified employees. Employees want to know that their employer takes their well-being seriously. A dealership known for putting safety first can demonstrate that its people are valued — not simply as employees, but as an essential part of the business. PREVENTION IS A BUSINESS STRATEGY One of the most effective ways to control the cost of workplace injuries is to prevent them. That starts with documenting incidents and near misses, identifying trends and regularly evaluating the dealership for potential hazards. Risk management means looking beyond what has already gone wrong and asking what could go wrong next. Could a customer slip in a service area? Is a walkway obstructed? Are employees following established procedures when moving vehicles? Is the equipment properly maintained? Are employees receiving the training they need to perform their jobs safely? Small corrective actions can prevent much larger problems. A caution sign near a wet floor, a clearly designated pedestrian route, proper storage of equipment or a routine inspection of vehicle lifts may seem like simple measures, but each addresses a potential hazard before someone gets hurt. Safety should not be viewed as a program that competes with sales, service or other dealership priorities. It supports them. A safe workplace helps keep employees on the job, protects customers and visitors, reduces disruptions and helps control the costs associated with workplace injuries. For new-car dealerships, the cost of inaction can be significant. Investing in safety today can help protect your employees, your customers, your reputation and your bottom line tomorrow.

COMMUNITY In the CMA’S TOYOTA AND CHEVROLET OF MARTINSBURG A very big thank you to CMA’s Toyota and Chevrolet of Martinsburg for hosting a food drive for the Berkeley County BackPack Program! We appreciate their help in feeding our community! ASTORG AUTO OF CHARLESTON Astorg Auto of Charleston was proud to sponsor the Kevin Jones 5 Camps this summer! It was great to see the support for an event that brought young athletes together to learn, grow and develop their skills while having fun on the court. Thank you to everyone who made the camp a success. Astorg Auto was proud to have been a part of such a great weekend for the community! LOUIS THOMAS SUBARU For the 10th year in a row, Louis Thomas Subaru helped bring comfort to cancer patients at WVU Medicine Camden Clark. Through the Subaru Loves to Care® initiative, Louis Thomas Subaru donated 80 cozy blankets and messages of hope to patients undergoing cancer treatment, reminding them that their community is standing with them every step of the way. This national program, in partnership with Blood Cancer United®, is dedicated to providing comfort, encouragement and support for people facing cancer. Thank you to Louis Thomas Subaru and Blood Cancer United for helping make a meaningful difference in the lives of these patients. WVADA NEWS 20

BUCKHANNON TOYOTA Buckhannon Toyota was honored to help complete the funding for Willa’s Therapy Dog Training Program with God’s Center for Animals and Education. Soon, Willa will be bringing comfort, encouragement and smiles to students, nursing homes and more. They’re grateful to play a small part in such a meaningful mission. Thank you to God’s Center for Animals and Education for everything you do! And we wish Willa the best of luck with the amazing people in the BU Zoo classroom. MID-STATE CHEVROLET What a fantastic day at Mid-State Chevrolet’s 4th Annual Car Show! While the rain may have kept a few people at home, they were still thrilled with the turnout and grateful that the weather gave everyone plenty of time to enjoy the event. From stunning classics to modern showstoppers and everything in between, the quality and variety of vehicles on display were incredible. Thank you to everyone who brought their vehicles, attended the show and helped make this event such a success. Your support and enthusiasm are truly appreciated. See you next year at the 5th Annual Mid-State Chevrolet Car Show! WVADA NEWS 21

NORTHSIDE CHEVROLET GMC The annual Mid-State & Northside Automotive Picnic was a huge success! The rain cleared just in time for employees and their families to enjoy a fun-filled day together! From games and inflatables to the cornhole tournament, bingo, pie-eating contest and plenty of delicious food, there was something for everyone to enjoy. A special thank you to the vendors for helping make the day possible: Maloney’s Pub, Hyped Up Rentals, Quantum Party Rentals and Nicholas County Memorial Park. Northside Chevrolet GMC would also like to recognize their Planning Committee for their hard work, dedication and attention to detail in making this event such a success. Thank you to everyone who attended, and we can’t wait to see you again next year! HARRY GREEN CHEVROLET NISSAN At Harry Green 7 Acres, they believe being part of the community means giving back to it. They had the honor of presenting a brand-new English horn to the talented music program at Lincoln High School. They hope this instrument helps inspire students for years to come and gives them another opportunity to grow through music. A huge thank you to Lincoln High School for welcoming them, and to the incredible students and educators who work so hard to keep the arts alive. We can’t wait to hear the beautiful music this instrument will help create, and we wish the Lincoln High School music program the very best this school year! WVADA NEWS 22

MOSES AUTO GROUP Moses Auto Group is proud to support the Kids of Kanawha 2026 Step Into School Shoe Drive, helping students across Kanawha County start the school year on the right foot! The Shoe Drive is part of the important work of Kids of Kanawha, providing resources and support to Kanawha County Schools students throughout their educational journeys. Thank you to Kids of Kanawha for including Moses Auto Group in this wonderful effort and for all they do to make a positive difference in the lives of students throughout the community. BILL COLE AUTOMALL — BLUEFIELD The 2026/2027 Princeton Senior High School cheerleaders represent their community with pride, discipline and Tiger Spirit. From Friday Night Lights to competition mats, they are committed to excellence, leadership and making positive impacts both on and off the field. Cole Kia, along with the entire Cole Automotive Group, hopes their sponsorship helps these athletes shine, compete and grow into community leaders! WVADA NEWS 23

ASTORG AUTO OF CHARLESTON Land Rover Charleston was proud to host the Kids of Kanawha Donor Appreciation event! Through the generosity of donors and supporters, more than 4,300 pairs of shoes have been provided to children at every middle school and high school in Kanawha County, as well as 28 elementary schools. Shoe closets have also been established at several schools to support students in need. Thank you to everyone helping Kids of Kanawha make an incredible difference in the community! WHARTON AUTO GROUP As a “Partner in Education” with the Jefferson Elementary Center, the collision center at Wharton Nissan recently completed the refurbishment and painting of over 350 lockers for students at the school. What a great way to support the community! WVADA NEWS 24

WVADA Preferred Partner Programs are designed to meet the needs of our members while providing competitive pricing. Supporting our Preferred Partners benefits YOUR association and helps maintain low dues for our membership. WVADA works for West Virginia Dealers, buying from our Preferred Partners is like buying from yourself. PREFERRED PARTNER PROGRAMS Heritage Crystal Clean provides its customers with parts cleaners, parts washers, drum waste management, oil collection, oil re-refining, vacuum services, parts cleaning solvent as well as other products and services pertaining to the environmental services market. Capital Automotive represents best-in-class F&I solutions that strengthen the bond between dealers and their customers. Through our comprehensive portfolio — including vehicle service contracts, limited warranties, theft prevention products, GAP, maintenance programs, a full complement of ancillary products and more — we help dealerships build lasting relationships based on value and mutual reward. Our solutions and training drive profitability while enhancing customer loyalty. ComplyAuto LLC is a RegTech company offering cloud-based software that helps dealerships enhance their compliance capabilities while becoming more efficient and cost-effective. ComplyAuto uses data analytics and AI to provide real-time automated compliance decisions, performing tasks that would normally require manually intensive processes and human intelligence. Cross-Sell has developed the ability to instantly email reports after the data is processed each month and has also created an online interface that allows you to analyze, filter, print and download the specific data or reports that you need. We are a “dealer first” business focused on helping our partners find their best path to success, plan for the future and achieve real results. There’s a reason why we’ve been trusted for over 40 years by dealers across the country. We’re proud of the relationships we’ve built with each and every one. The Accelerated Title program offers faster payoff, as fast as 4-6 days, by turning a traditionally manual process electronic. Accelerated Title now uses over 81 lenders and is still growing! The NADA Retirement Program from Empower Retirement focuses on optimizing participant outcomes through innovative 401(k) plan design. With over 75 years of automotive experience, Dealer Merchant Services has a proprietary solution to help dealers save up to 75% of their credit card processing fees without disrupting CSI. We feature the industry’s only Retail Management System to help you manage every area in your dealership. Whether it’s online interactions, selling and servicing vehicles or managing the business, we’ve got you covered. Integrum Advisors provides one-stop, strategic enterprise solutions that make it easy to take care of your people. As full‑service consultants, Integrum Advisors delivers complete peace of mind to every client. USI’s dedicated team designs comprehensive programs that include coverage not only for physical damage for your inventory but also theft, false pretense, collisions and more to safeguard your dealership. They also provide loss control services to evaluate your potential threats before they occur and access to online training courses to help reduce workplace incidents. Tyler’s broad solution and product offering empowers you to deliver better and faster assistance to the public — greater transparency and accessibility, sustainable office practices, secure data that’s easy to manage and maintain, and faster results. Contact WVADA today to learn more about our preferred partners at hjustice@wvcar.com or (304) 343-4158. WVADA NEWS 25

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