Mississippi AUTO DEALER Pub. 2 2024 Issue 1
10543 South Glenstone Place, Baton Rouge, LA 70810 • 225-769-9923 • theversantgroup.com MADA'S ENDORSED F+I PROVIDER OF PRODUCTS, TRAINING AND INCOME DEVELOPMENT A FEW OF OUR 50+ TEAM MEMBERS: Keith Decell President Jason Rasti Executive Vice President Cole Miller Director of Training Kenny Roberts Territory Manager Central MS Brandon Choina Territory Manager South MS Michael McLellan Regional Manager - MS Shelley Cavin Client Relations Manager Sunny Mayhall General Counsel
©2024 Mississippi Automobile Dealers Association (MADA) | The newsLINK Group, LLC. All rights reserved. Mississippi Auto Dealer is published four times each year by The newsLINK Group, LLC for the MADA 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 the MADA, 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. Mississippi Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of MADA. While Mississippi Auto Dealer encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at 855.747.4003. 12 16 6 4 CHAIR’S MESSAGE Advancing and Protecting the Interests of Franchised Automobile Dealers By Trudy Moody, MADA Chair 2024 Alabama-Mississippi-Tennessee Car and Truck Dealers Convention 10 Jeff Field Named 2024 Mississippi Nominee for TIME Dealer of the Year Landers Automotive Group’s COO and Partner Recognized for Industry Excellence and Community Service 12 New Ride: MSU Students To Transform Cadillac LYRIQ as Part of EcoCAR Competition 14 Kia of McComb Celebrates Grand Opening 16 Give Me a Brake A Summary of the CARS Rule By Hao Nguyen, Chief Legal Officer, ComplyAuto 21 MADA Announces Partnership with Dealer Merchant Services 22 Interested in Passing Along Credit Card Fees to Your Customers? Know the Facts. By Dealer Merchant Services 24 MADA SIF Trustees Approve a $900,000 Dividend Credit and 4.3% Rate Decrease for 2024 26 Jason White Elected as Speaker of the Mississippi House of Representatives CONTENTSPub. 2 2024 Issue 1 3
Dear MADA Members, I hope the first quarter of 2024 is going well for you. The 2024 legislative session is underway, and for new car dealers, there is a sense of relief that no major initiatives are on the agenda. However, this doesn’t mean a lack of vigilance, as MADA remains actively engaged in reviewing every bill introduced at the Capitol to assess its potential impact on automobile dealers. Traditionally, thousands of bills are introduced each year, and MADA is committed to safeguarding the interests of auto dealerships by carefully evaluating each one. Despite the absence of a major legislative push, MADA ensures a strong presence at the Capitol, reinforcing our commitment to serve as the voice of the automotive industry. In exciting news, Governor Tate Reeves has wasted no time in his second term, announcing two significant economic development projects for the state. The first project involves a substantial $2 billion capital investment in Marshall County for the production of electric batteries aimed at powering commercial vehicles. This initiative is projected to generate 2,000 jobs with an average salary of $66,000, along with a comprehensive employee benefits package. The second economic development project, located in Madison County, marks a historic moment for Mississippi. Amazon Web Services has committed a staggering $10 billion to construct two “hyperscale data centers,” making it the largest capital investment in the state’s history. This project not only signifies a monumental boost to the economy but also positions Mississippi as a key player in the rapidly evolving digital landscape. The 2024 Alabama-Mississippi-Tennessee Car and Truck Dealers Convention stands as an event you do not want to miss. Scheduled for June 23-26 at the Hilton Sandestin Beach Golf Resort and Spa, this convention promises a unique opportunity for networking and gaining valuable insights. Chair’s Message Advancing and Protecting the Interests of Franchised Automobile Dealers Trudy Moody, MADA Chair 4
Featuring an all-star lineup of speakers, including Mike Stanton, President and CEO of the National Automobile Dealers Association; Kevin Tynan, Global Director of Automotive Research at Bloomberg Intelligence; and Jim McLaughlin, President of McGlaughlin and Associates, attendees can expect to gather valuable information and perspectives. The convention is not just about business; it’s a chance to connect with fellow dealers and industry partners in a family-friendly environment. With the beautiful white sands of Florida as the backdrop, attendees can unwind or engage in a round of golf, creating a perfect balance between business and leisure. The convention concludes with a spectacular fireworks show over the Gulf of Mexico, adding a touch of celebration to the event. You can find registration and additional convention information on page 6. I also want to take this opportunity to give a special congratulations to Jeff Field. He was named the 2024 Mississippi TIME Dealer of the Year. His commendable Our leadership team remains committed to advancing and protecting the interests of franchised automobile dealers. “ service to MADA in various capacities makes him an excellent choice to represent the dealer body. As your MADA Chair, I am humbled to be given the privilege of serving you and appreciate all that you do. Our leadership team remains committed to advancing and protecting the interests of franchised automobile dealers. While we have achieved much, challenges persist, and I’m grateful for the strength of our unified dealer body. Thank you for your continued membership and support. If there’s anything I can assist with, please don’t hesitate to reach out. Warm regards, Trudy Moody ENDORSED BY: ON AVERAGE, MS DEALERS ADD $60,468 IN PARTS UPLIFT ANNUALLY ARMATUS HAS COMPLETED OVER 15,500+ SUBMISSIONS NATIONWIDE ON AVERAGE, MS DEALERS ADD $53,820 IN LABOR UPLIFT ANNUALLY ARMATUS WORKS WITH 35% OF MISSISSIPPI DEALERS OUR COMMITMENT TO OUR CLIENTS: ÙYou Won’t Lift a Finger: Armatus does all the work for you. ÙFully Contingent Fee: You only pay when you are approved. ÙSpeed and Accuracy: No one completes a submission faster. ÙOptimization: Proprietary software guarantees you the best result. (888) 477-2228 | info@dealeruplift.com WWW.DEALERUPLIFT.COM If you have already completed a submission in-house or with another vendor, you may still have significant opportunities to gain more. If we can’t improve your results, you owe us nothing. Between our scientifically proven optimal results, and our speed of processing, we will literally pay our own fee. Reach out today for a no-obligation evaluation of your parts and labor rates. 5
10:00 a.m.-10:45 a.m. Speaker: Kevin Tynan Global Director of Automotive Research, Bloomberg Intelligence “Critical Questions for Dealers in a Post Pandemic Market” 12:00 noon Golf Tournament Lunch Burnt Pine Golf Club 1:00 p.m. Scramble Golf Tournament Burnt Pine Golf Club TUESDAY, JUNE 25 7:30 a.m.-9:00 a.m. Sponsor Tradeshow and Continental Breakfast 9:00 a.m.-9:30 a.m. General Business Session Speaker: Hao Nguyen Chief Legal Officer COMPLY AUTO “The FTC’s CARS Rule: Where Do We Go from Here?” 9:30 a.m.-10:15 a.m. Speaker: Jim McLaughlin President, McLaughlin & Associates, Public Opinion & Political Strategist “What Will Happen in the 2024 Elections?” 10:15 a.m.-10:30 a.m. Break 10:30 a.m.-11:30 a.m. AL State Meeting 10:30 a.m.-11:30 a.m. MS State Meeting 10:30 a.m.-11:30 a.m. TN State Meeting 11:30 a.m.-12:15 p.m. TAASIT Annual Meeting 6:30 p.m.-7:00 p.m. Cocktail Reception 7:00 p.m.-8:00 p.m. Buffet Dinner 8:00 p.m.-10:00 p.m. Fireworks Sunrise & Barefoots Deck WEDNESDAY, JUNE 26 Depart SUNDAY, JUNE 23 10:00 a.m.-5:00 p.m. TN Registration 10:30 a.m.-3:30 p.m. TAA Standing Committees 3:00 p.m.-7:00 p.m. AL/MS Registration 3:00 p.m.-4:30 p.m. MADA SIF Board of Trustees 4:30 p.m.-6:00 p.m. MADA Board of Directors Meeting 4:00 p.m.-6:00 p.m. ADAA Board of Directors Meeting 6:30 p.m.-8:30 p.m. AL/MS/TN Welcome Reception MONDAY, JUNE 24 7:30 a.m.-9:00 a.m. Registration 8:00 a.m.-9:00 a.m. Continental Breakfast 9:00 a.m.-10:00 a.m. General Business Session Speaker: Mike Stanton President & CEO, National Automobile Dealers Association JUNE 23-26, 2024 HILTON SANDESTIN BEACH GOLF RESORT & SPA Alabama Mi i ippi Tenne ee CAR & TRUCK DEALERS CONVENTION JUNE 23-26 2024 6
REGISTRATION n Please use the enclosed Registration Form to REGISTER THROUGH YOUR STATE ASSOCIATION for the 2024 Convention. Registration fees include participation in all convention events except the golf tournament. Registration fees will be returned if cancellation is received no later than May 24, 2024. n All convention registrants should pick up their name badges and other material at the Convention Registration Desk. Name badges should be worn for admittance to convention functions. n The dress for ALL events is “resort casual”. ACCOMMODATIONS n Reserve your room directly with the Hilton Sandestin no later than Wednesday, June 7, using this QR Code or by calling reservations at (850) 267-9500 and reference group code AMN. n Room rates start at $424 per night including the resort fee. n To confirm your room a first-night room deposit is required which is refundable only if the reservation is cancelled or arrival date is changed at least fourteen (14) days prior to arrival. Please call your association before cancelling in case someone else needs the room. n The room block will likely be sold out well before June 7 so reserve your room as soon as possible. n We reserve the right to cancel any room reservations in the associations’ room block if the guests are not registered for the convention. CHILDREN n Children under 18 years of age who would like to attend the convention’s adult functions should pay the $150 Children’s Fee. For private babysitting arrangements, call the hotel concierge at (850) 267-9500 prior to your arrival. GOLF TOURNAMENT n A lunch and scramble Golf Tournament will be held on Monday, June 24, at Burnt Pine Golf Club at Sandestin. The fee to enter the Golf Tournament is $200 each. ALL GOLFERS SHOULD PRE-REGISTER. THERE WILL BE NO REGISTRATION FOR THE GOLF TOURNAMENT AVAILABLE ON-SITE. AUTOMOBILE DEALERS ASSOCIATION OF ALABAMA, INC. (334) 271-4625 MARIE@ADAAWEB.COM MISSISSIPPI AUTOMOBILE DEALERS ASSOCIATION (601) 957-6868 BETH@MADAONLINE.COM TENNESSEE AUTOMOTIVE ASSOCIATION (615) 269-3433 KELLY@TAAONLINE.BIZ FOR ADDITIONAL INFORMATION PLEASE CONTACT: 7
Dealers, dealership personnel, Associate Members, sponsors.........................__________ @$500 each =__________ Spouses/Guests............................................................................................. __________ @$250 each =__________ Children under 18 attending meal functions ....................................................__________ @$150 each =__________ Names:_______________________________________________________________________________________ Non-member allied industry friends and their spouses/guests .........................__________ @ $1,000 each =________ Golf .............................................................................................................. __________ @$200 each =__________ TOTAL $__________ Golf Lunch and Scramble - Monday, June 24 {Burnt Pine Golf Club} $200 Each Name____________________________________ Handicap ___________ Name____________________________________ Handicap ___________ Name____________________________________ Handicap ___________ Name____________________________________ Handicap ___________ Names for Badges Name____________________________________ (His)__________________________ (Her)_________________________ Name____________________________________ (His)__________________________ (Her)_________________________ Firm Name______________________________________________________Telephone______________________________ Firm Address__________________________________________________________________________________________ Email Address_________________________________________________________________________________________ (Last) (Last) Street or Box City State Zip (First) (First) (First) (First) Do you have any special needs, such as food allergies, for which you need special accommodations?: _______________________________________________________ Registration includes: Entertainment, Business Sessions, Receptions, Dinners RESERVE A ROOM USING THIS QR CODE OR CALL 850-267-9500 REFERENCE GROUP CODE: AMN June 23-26, 2024 Hilton Sandestin Beach Golf Resort & Spa Alabama Mi i ippi Tenne ee CAR & TRUCK DEALERS CONVENTION JUNE 23-26 2024 Mississippi Automobile Dealers Association 800 Woodlands Pkwy, Ste 100 Ridgeland, Mississippi 39157 Fax 601-956-1877 beth@madaonline.com To register online go to: www.madaonline.com or return registration form with check. 8
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JEFF FIELD NAMED 2024 MISSISSIPPI NOMINEE FOR TIME DEALER OF THE YEAR Landers Automotive Group’s COO and Partner Recognized for Industry Excellence and Community Service In a prestigious acknowledgment of outstanding achievements, Jeff Field, chief operating officer and partner at the Landers Automotive Group, has been selected as the 2024 Mississippi TIME Dealer of the Year. This esteemed recognition is a testament to Field’s remarkable success in the automotive industry and his unwavering dedication to the Mississippi Automobile Dealers Association. The TIME Dealer of the Year award, considered one of the highest honors in the automobile industry, celebrates the nation’s most accomplished auto dealers who exhibit a long-standing commitment to community engagement. Field stands among a select group of 49 dealer nominees from across the country who were honored at the 107th annual National Automobile Dealers Association (NADA) Show in Las Vegas, Nevada, on Feb. 3, 2024. Having been chosen to represent MADA for the national award, Field emerged as one of the 49 nominees selected from over 16,000 dealers nationwide for the 55th annual celebration. Reflecting on his success, nominee Jeff Field expressed gratitude for the support staff and employees at Landers Automotive Group, emphasizing the importance of leading by example and bringing out the best in those around him. Field, an alumnus of Memphis State University, began his automotive career in 1987 and has since risen through the ranks, culminating in his current position as COO and partner at Landers Automotive Group. Field’s journey in the automotive industry includes significant milestones, such as managing stores for the Penske Automotive Group and ultimately partnering with Kent Ritchey to establish a Dodge and Nissan dealership in Southaven, Mississippi. Today, their partnership oversees 10 stores in Mississippi and Tennessee, representing a diverse range of automotive brands. Acknowledging the role of hard work, dedication and familial support in his success, Field highlighted the humbling experience of running a business where employees can achieve life-changing opportunities through their commitment and hard work. Jeff Field with TIME and Ally 10
Jeff and Susan Field with Cal Ripken, Jr. Beyond his professional achievements, Field is an active member of MADA, where he served as the 2022-2023 chairman. He played a critical role in getting HB 401 signed into law during his year as chairman. Field has been a member of the MADA board since 2017. In the realm of community service, Field focuses on fostering business opportunities in his region. He has been a vital member of the Southaven Chamber of Commerce, serving as board chair from 2017 to 2019. Additionally, Field supports the Mississippi Economic Council and sponsors events like the Hobnob Mississippi initiative. Field’s commitment to community service extends to his role on the board of the DeSoto County Economic Development Council, promoting business and economic growth in the community. Notable initiatives include sponsoring career expos for the organization and hosting an annual First Responders Appreciation Lunch at Landers Chrysler Dodge Jeep Ram. Furthermore, Field sponsors the Affordable Christmas program of Trinity Baptist Church in Southaven, demonstrating a commitment to making a difference in the lives of the customers and communities served by Landers Automotive Group. His remarkable journey stands as an inspiration, showcasing the intersection of professional success and a steadfast commitment to community service. “Making a difference for the customers and communities we serve never gets old,” Field said. 11
NEW RIDE: MSU Students To Transform Cadillac LYRIQ as Part of EcoCAR Competition Mississippi State University’s (MSU) EcoCAR Electric Vehicle Challenge team officially unveiled its Cadillac LYRIQ this past November at the university’s Center for Advanced Vehicular Systems. The EcoCAR team spent over a year developing designs to implement an all-electric powertrain as well as connected and autonomous features into the vehicle. The interdisciplinary team of students will now implement these designs and compete against some of the top universities in the country beginning in May and through the remainder of the four-year competition. The teardown of the Cadillac LYRIQ to remove the stock components that will be replaced recently began to prepare the vehicle for the integration of the team-added components, like the AWD electric powertrain and the new controllers. “Our mission is to give students hands-on experience applying what they learn in the classroom in the real world through these industry-standard practices, processes and tools,” said Timothy Wunrow, MSU EcoCAR project manager and a master’s student in the Department of Industrial and Systems Engineering. “Over the last 19 years, the MSU EcoCAR team has helped many students graduate with high-paying jobs in their chosen industry because the skills we learn here, such as how to communicate and how to solve problems, are transferable across the automotive industry and every other industry.” MSU has a long history of success in EcoCAR competitions, part of the Advanced Vehicle Technology Competitions sponsored by the U.S. Department of Energy, General Motors and MathWorks. MSU teams have won the national competition four times and regularly receive high marks in the different categories they are judged on, ranging from technical to communications and marketing. “We’ve been part of EcoCAR since its inception, which makes us part of an elite group of universities in the nation that have the privilege and honor for our students to develop the vehicles of the future,” said MSU President Mark E. Keenum. “That is what we are doing here today and that is what our students will be a part of over the next couple years of this competition. This is a unique experience that positions our students to go out into the world and be leaders in this field.” Over the past years, the MSU EcoCAR team converted a stock Chevy Blazer into an onboard hybrid vehicle adding adaptive cruise control and increasing fuel efficiency MSU President Mark E. Keenum and Provost David Shaw, center right, along with Vice President for Research and Economic Development Julie Jordan, left of car, are pictured with MSU student EcoCAR Electric Vehicle Challenge team members, along with faculty advisors and Center for Advanced Vehicular Systems leaders who will help guide the team during the prominent four-year competition to implement an all-electric powertrain and other cutting-edge features in a new Cadillac LYRIQ. The program develops students to become leaders in the automotive and related engineering fields Photo Credit: Grace Cockrell, Mississippi State University 12
in the 2018-2022 EcoCAR Mobility Challenge. And a stock Chevy Camaro was converted into a plug-in hybrid in the 2014-2018 EcoCAR 3 competition. The MSU EcoCAR team is comprised of more than 60 students representing 13 different majors, including mechanical engineering, electrical and computer engineering, aerospace engineering, industrial and systems engineering, computer science, cyber security, business administration and more. The competition gives the students hands-on experience that positions them to excel in their career following graduation. EcoCAR boasts a more than 90% hire rate for graduate and undergraduate students immediately after graduating. In addition to developing the competition vehicle, the team will conduct K-12 outreach to help inspire the next generation of engineers. Additional non-technical efforts include a project addressing inequities in mobility, communications and marketing campaigns. For more on the EcoCAR EV challenge, visit avtcseries.org/about-the-ecocar-ev-challenge. For more on MSU’s EcoCAR team, visit Instagram @msuecocar. Mississippi State University is taking care of what matters. Learn more at www.msstate.edu. Cadillac EcoCAR unveiling November 2023 Timothy Wunrow, MSU student, speaking at the new EcoCAR unveiling in November 2023 Teardown process of the Cadillac LYRIQ Photo Credit: Grace Cockrell, Mississippi State University Photo Credit: Grace Cockrell, Mississippi State University 13
KIA OF McCOMB CELEBRATES GRAND OPENING 14
On Friday, Jan. 19., Kia of McComb celebrated the grand opening of its newly built store. Conveniently located just off U.S. Highway 98, Owner Lock McNatt, General Manager Tony Lamoureux and the entire Kia team welcomed community leaders and longtime customers to help celebrate the much-anticipated occasion. Since March 2003, Kia of McComb has worked hard and built a loyal customer base from a 10,000-square-foot store that was built in the 1960s. But the business had outgrown the location, and when the Kia 2.0 Gallery design was introduced, Lock, with the help of Tony, decided that it was time to build a new store. Tony took the reins, and in addition to managing the old store, he met with the developer and contractor on a daily basis to get the new store up and running. “This is a store that we can be really proud of and something that Tony and I can both be involved in for the next 20-plus years,” said Lock. Kia of McComb is the fourth dealership in the country to be built under the new Kia 2.0 Gallery design. The new 20,000-square-foot dealership incorporates all elements of Kia’s rebranding overhaul that began in 2021. From the open, airy showroom and thoughtful amenities to the 12-bay service department to the friendly and knowledgeable staff, Kia of McComb truly embodies the new Kia slogan: Movement that inspires. “The service department has always been one of our strong points and has a long track record of customer satisfaction scores,” Tony said. The new facility is fully equipped and ready for the customer of tomorrow. Whether it be a traditional ICE vehicle or an EV, Kia of McComb is ready to handle any service needs that might come up — from routine to the unexpected. In fact, Kia of McComb has three master Kia technicians, which is a lot compared to other stores. If you ask Lock or Tony about their employees, they are eager to talk about the great team that they have. “We have salespeople, some of our sales managers, a service manager, warranty administrator and three technicians that have been here for 15‑20 years and our Comptroller, Ann Burr, has also been with the company since the purchase of the original the store in 2003,” Tony said. “Everybody wants to say they have a family environment, but when you have employees stick around for that length of time and you’ve gotten to know them, it really becomes a family atmosphere.” In appreciation of the loyal employees, Lock made sure working conditions in the new facility would be well above industry standards. “We decided to air condition and heat the shop. Summers get pretty hot here in Mississippi and I think that air conditioning is going to be nice come summer,” Lock said. With the opening of the new store, more employees were needed. The team has grown from 30 employees to 35, and in the near future, with a fully staffed team, Kia of McComb will employ 40 people. Kia of McComb is looking forward to serving Pike County and its neighboring communities from the new state-of-the-art facility. Their commitment to providing a family-oriented and professional experience to customers is second to none. Congratulations to Kia of McComb! Here’s to many more years of excellence and success. 15
GIVE ME A BRAKE The FTC continues its deep dive into the automotive industry with its latest opening chess move in the Combating Auto Retail Scams Rule, simply known as the CARS Rule. The Rule is comprehensive and will fundamentally change the way dealers do business. In this article, I will briefly cover all of these topics to provide a better understanding of what is to come on the new regulations’ effective date. The keyword here is “briefly” because the regulations that the FTC released spanned over 370 pages. In order to fully understand the CARS Rule and how it can potentially affect your daily operations, we will publish a series of articles over the next few months, with each focusing on a specific area of the regulations to give each portion the attention that it deserves. Hopefully, you will be well-equipped to meet the demands by the Rule’s effective date of July 30, 2024. OVERVIEW AND APPLICABILITY By now, you’ve heard about the CARS Rule by its original name, the “Motor Vehicle Trade Regulations Rule” (or some variation of it), either from your state trade association or the National Automobile Dealers Association. For those of you who have not, the CARS Rule is essentially a set of regulations that purports to provide dealer guardrails (or a euphemism I like to use: “instructions with legal ramifications”) on how you are to advertise, market and sell motor vehicles to customers. Touted as a consumer protection regulation, the goal of the CARS Rule is to reduce the number of unscrupulous dealers and poor transaction experiences that thousands of Americans ostensibly face every year. It is interesting to note that those dealerships that only sell motorcycles, ATVs, RVs, boats, scooters, electric bikes and golf carts will be unaffected. From advertising disclosures to record-keeping requirements, let’s jump into the thick of it to provide you with a bit more clarity as to what will need to change at the dealership level. ADVERTISING PROHIBITIONS You have a car. You want to sell that car. You advertise the car for sale. A consumer sees the advertisement, inquires about it, and the vehicle is sold. Sounds simple enough, right? The FTC has always overseen this advertising process under its current authority in Section 5, which prohibits “unfair or deceptive acts or practices in or affecting commerce.” It was broad, but the CARS Rule effectively groups the FTC’s fire on automotive transactions. Here is a list of prohibited activities when advertising a motor vehicle for sale. The list is long, so buckle up. You cannot misrepresent the following: 1. The cost or terms of purchasing, financing or leasing a motor vehicle; 2. The costs, limitations, benefits or any other aspect of an add-on product or service; 3. Whether or not the terms advertised are for financing or leasing; 4. The availability of any rebates or discounts by factoring into the advertised price those that are not widely available to all consumers; 5. The availability of vehicles at an advertised price; A Summary of the CARS Rule By Hao Nguyen, Chief Legal Officer, ComplyAuto 16
6. Whether any consumer has been, or will be, preapproved or guaranteed for any product, service or term; 7. The information about a consumer’s application for financing; 8. Whether a transaction is final or binding on all parties; 9. Whether cash down payments, trade‑ins, or charging fees are refundable or initiating legal proceedings if a transaction is not finalized; 10. Whether or when a dealer will pay off some or all of the financing or lease on a consumer’s trade-in; 11. Whether reviews or ratings of the dealer or the dealer’s products/ services are unbiased and independent; 12. Whether the dealer is affiliated with any United States government or branch of the armed forces; 13. Whether a consumer has won a prize or sweepstakes; 14. Whether, or under what circumstances, a motor vehicle may be moved, including across state lines or out of the country; and 15. Whether, or under what circumstances, a motor vehicle may be repossessed. As you can see, there is a lot to digest here in just the vehicle advertisements. What I said earlier about separate articles should now make a lot more sense! DISCLOSURE REQUIREMENTS Through the CARS Rule, the FTC wants to further “instruct you” on what you need to disclose when placing advertisements and during the entire documentation process. “Offering Price” Whenever you advertise a specific vehicle or finance special for a group of vehicles, you will have to identify the vehicle’s “offering price.” This offering price includes everything except any required government charges (all fees or charges imposed by federal, state or local government agencies, including taxes, license and registration costs, inspection or certification costs, and any other such fees or charges). Long gone are the days of “MSRP only” pricing or “click here for details” links, and if you have not yet noticed, you can no longer state “Plus” document processing charges, mandatory add-ons or filing charges in a disclaimer. They must be included in the offering price. “Offering Price” in First Communication with Consumer The regulation is as novel as it is strange. We have received multiple questions about this during a live webinar co-hosted by me, Chris Cleveland (CEO) and Andy Graff (COO) and posted the answers in our Frequently Asked Questions (FAQ) brochure that was distributed to attendees. If a consumer contacts you about a specific vehicle (or financing special for a group of vehicles), whether it be an online chat, over the phone, in an email or in a text message, you must respond to them with the offering price of the vehicle. One of the questions fielded was whether you had to tell the consumer the offering price even if the consumer did not ask about the price specifically. The regulations point to “yes.” If you did not attend our webinar, you can find more questions about these communications and about other aspects of the CARS Rule in our FAQs brochure by scanning the QR code. https://sales.complyauto.com/ftc-cars-rule-faqs Rebates, Discounts and “Pre‑approved” Loans The FTC prohibits you from factoring them into the advertised price but further clarifies that this prohibited activity involves rebates and discounts that are limited to only a few consumers (i.e., those rebates that are only available for the most expensive trim of a particular model or only to consumers with high credit scores). What is more important, suggests the FTC, is that you don’t make misrepresentations and will allow you to advertise rebates and discounts, and their limitations, in a “truthful manner.” This tells us that any rebates or discounts, and their limitations, must be clearly and conspicuously identified in the advertisement. Add-Ons That Are Not Required Specifically, the FTC requires you to disclose in writing that the purchase of optional addons is not required for vehicle purchase or lease. This, the FTC assures, was prescribed for the purpose of preventing unfair or deceptive acts or practices. 17
The Rule is comprehensive and will fundamentally change the way dealers do business. “ Total Lease or Finance Payments and Comparisons A purported common practice that the FTC aims to curtail is dealers emphasizing a low monthly payment while diverting a consumer’s attention away from the overall cost of financing or leasing the vehicle. Therefore, anytime you advertise or mention a monthly lease or finance payment, you must also identify the total amount the consumer will pay to lease or purchase the vehicle at that monthly payment after making all payments as scheduled. Comparing Monthly Payments Many of the complaints the FTC received were about dealers lowering monthly payments without telling consumers that the length of the loan is extended, thus making the purchase or lease of a vehicle more expensive over the life of the payments. Now, anytime you compare two monthly payments (such as via a desking tool’s proposal sheet or payment quote), you must include a clear and conspicuous disclosure that the lower monthly payment will increase the total amount the consumer will pay to purchase or lease the vehicle. OTHER PROHIBITED ACTIVITIES Add-Ons That Provide No Benefit You cannot charge a consumer for an addon that provides no benefit to the consumer. The FTC provides some examples: 1. Nitrogen-filled tire-related products or services that contain no more nitrogen than naturally exists in the air; 2. Sale of service contracts that are duplicative of manufacturer warranties; 3. Supposed rust-proofing add-ons that do not actually prevent rust; 4. Add-ons that the vehicle itself cannot support (like engine oil-change services on an electric vehicle); 5. Software or audio subscription services that the vehicle cannot support or use; and 6. GAP agreements on vehicles with a low LTV. Charging a Consumer Without Consent You cannot charge a consumer for any item unless you obtain the consumer’s “express, informed consent” to be charged for that item. The FTC defines “express, informed consent” as “an affirmative act [that communicates] unambiguous assent to be charged, made after receiving and in close proximity to a Clear and Conspicuous disclosure, in writing … of the following: 1. What the charge is for; and 2. The amount of the charge, including if the charge is for a product or service, all fees and costs to be charged to the consumer over the period of repayment with and without the product or service.” 18
Furthermore, the FTC identifies the following as not being “express, informed consent”: 1. A signed or initialed document by itself; 2. Pre-checked boxes; or 3. An agreement obtained through any practice designed or manipulated with the substantial effect of subverting or impairing user autonomy, decision-making or choice (which sounds eerily similar to “dark patterns” as it is related to consumer privacy choices). Though not explicitly stated in the regulations, we believe that this will require you to provide the customer with an additional disclosure form that they must acknowledge and sign. We will cover that in more detail in an upcoming article. RECORDKEEPING For 24 months, dealers must create and retain copies of the following: 1. Copies of all materially different advertisements, sales scripts, training materials and marketing materials regarding the price, financing or lease of a vehicle; 2. Copies of all purchase orders, financing and lease documents signed by the consumer (whether you sold a vehicle or not); 3. All written communications relating to sales, financing or lease between you and any consumer in which you sold or leased a vehicle. Another question we regularly saw during our live webinar was whether text and email communications between a salesperson and a customer, in which a vehicle was sold, needed to be retained for 24 months. The answer is “yes,” and we recommend that you train your staff to use software that tracks and records this electronic communication. OUTLOOK Though the regulation itself spans only 12 pages (with over 358 pages of comments), the ramifications to the industry are significant and very complex, but that’s why we’re here. Led by dealers and industry compliance experts, ComplyAuto has been preparing a solution for the CARS Rule since 2020 called “Guardian,” which was announced at the NADA Convention in Las Vegas on Feb. 3. Scan the QR code to sign up to receive updates. https://complyauto.com/guardian-coming-soon/ As the FTC continues to receive commentary about the CARS Rule and ratchets up enforcement in other areas of the automotive industry, ComplyAuto intends to remain the nation’s leading automotive compliance software solution by bringing you the latest information that affects your dealership. This article is intended to be for INFORMATIONAL PURPOSES ONLY and is NOT to be construed as legal advice. For over 100 years, we’ve helped dealers like you serve your customers by providing the best-in-class products and services you need – and by remaining true to the automotive passion we share. With nearly 5,000 specialists dedicated to supporting dealer financial services, we can help you gain efficiencies, increase your product offerings, and work to improve per vehicle revenue. Let us help you unlock new levels of growth at your dealership. We’re all better off with an ally. Contact your local Account Executive or call 888-919-2559 to get started. $46 billion in consumer auto originations in 2022 Over 32,000 vehicles listed daily on SmartAuction A leading F&I provider What we offer. Retail finance Commercial finance F&I Remarketing Wholesale inventory finance Dealer loans exponenti Congrats, Reggie Willis! 19
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MADA ANNOUNCES PARTNERSHIP WITH DEALER MERCHANT SERVICES MADA is pleased to announce a new partnership with Dealer Merchant Services. MADA chose to endorse Dealer Merchant Services (DMS) because of their focus and dedication to automobile dealers showing substantial savings at dealerships. If you are looking for a proven partner for credit card processing, you should contact DMS. The DMS mission is centered on helping automobile dealers recoup one of their most significant expenses: credit card processing fees. Federal laws are very specific on how businesses can charge credit card expenses to customers and the goal of DMS is to educate dealers with best practices for a seamless implementation. They have educated over 2,250 dealers through NADA webinars and have certified and trained over 7,600 dealership employees. After 30 minutes with Dealer Merchant Services, you will: • Be able to interpret your current merchant processing statement and identify your monthly fees. • Have knowledge about the legal changes and compliance requirements that allow surcharging. • Apply best practices for successful implementation if you choose to pass along these fees. MADA believes results matter and is proud to recommend this outstanding company to our dealers. For more information, contact Founder and Managing Partner Amberly Allen at amberly@dealermerchantservices.com or call (888) 819-5149. Additional information can be found at dealermerchantservices.com. • Labor Relations • Employee handbooks • Employment Law Counseling and Litigation • HR Policies and procedures • Independent contractor issues • OSHA Compliance and defense • Purchasing or selling a dealership • Staffing and contingent workers • Workers’ Compensation • Wage and hour law Steve Cupp Partner | Gulfport/New Orleans 228.822.1440 scupp@fisherphillips.com Fisher Phillips brings valuable legal counsel to MADA members. Our labor and employment law firm offers auto dealerships the following services: A driving force in labor and employment law for more than 70 years. fisherphillips.com 2505 14th Street | Suite 300 | Gulfport, MS 39501 21
KNOW THE FACTS. Dealer Merchant Services (DMS) is the leading expert in helping dealerships implement a compliant credit card surcharge program and is proud to be an endorsed partner of MADA. DMS is the fastestgrowing merchant provider that focuses exclusively on the automotive industry. Working with a partner that understands automotive is vital because of the complexities of the industry. The savings that come with passing along these credit card fees are undeniable. BUT this is not a DIY project. A FEW IMPORTANT REQUIREMENTS • You cannot add it to your RO. • You cannot charge on debit cards. • You must have technology in place that knows the difference between debit and credit on the physical credit card machines. • You cannot charge more than 3%. • You must have signage at the cashier and the entry point. • You must be registered as a compliant surcharge merchant. AT MINIMUM, CHOOSE A PARTNER THAT INCLUDES THESE ITEMS If you are concerned about your customer’s experience, it is important that you choose a partner who understands: • How to train your staff to communicate this properly upfront and often to your customers. DMS has trained and certified nearly 10,000 dealership employees on a compliant surcharge program. • How to work with your accounting staff. • How to work with extended warranties, wholesale parts, body shop, rental cars and finance. Interested in Passing Along Credit Card Fees to Your Customers? By Dealer Merchant Services 22
DID YOU KNOW? Enjoy your association news anytime, anywhere. Scan the QR code to visit our online publication to stay up to date on the latest association news, share articles and read past issues. mississippi-auto-dealer.thenewslinkgroup.org KNOW YOUR NUMBERS We will provide a complimentary statement analysis to help you understand what you are currently paying and how to save even if you don’t change providers. Surcharging is not the same as a cash discount program, and it’s important to know the difference. ABOUT DEALER MERCHANT SERVICES DMS helps dealers recoup one of their largest expenses, credit card processing, by helping them pass along those fees to their customers. The DMS program is legal in 48 states and currently has dealers operating in 41 of them. As of Jan. 2024, DMS has over 530 rooftops on their compliant surcharge program. DMS has educated over 2,200 dealers through NADA webinars and has trained over 10,000 dealership employees saving their dealers well over $1M every month and over $14.2M since inception, and these numbers are growing daily. The DMS retention rate is 97%, and dealer referrals are their largest lead source. DMS is the white glove service credit card processing company dealers seek. Dealer Merchant Services provides a demo and complimentary credit card statement analysis. Contact Amberly Allen at (214) 683-4088 or amberly@dealermerchantservices.com 23
MADA SIF Trustees Approve a $900,000 Dividend Credit and 4.3% Rate Decrease for 2024 The Mississippi Automobile Dealers Association Self-Insures Fund (MADA SIF) continues its tradition of delivering substantial benefits to its members with the recent approval of a $900,000 dividend credit and a 4.3% rate decrease for 2024 starting April 1. This decision, made by the Trustees, underscores MADA SIF’s commitment to its mission and members, further solidifying its position as a preferred choice for workers’ compensation insurance among Mississippi dealerships. Walt Massey, chairman of the Board of Trustees, expressed pride in the significant returns provided to Mississippi dealers, stating, “We are dedicated to serving our dealer members. We give 100% of our profits back to the participants.” Massey emphasized the importance of the Self-Insured Fund in supporting MADA’s mission by generating non-dues income. The approval of the dividend and rate reduction by the Mississippi Workers’ Compensation Commission highlights the effectiveness of participating dealerships’ loss control efforts and the savings accrued from previous fund years. With nearly $19 million returned to Mississippi dealers through dividends, the MADA SIF stands out for several reasons, making it the preferred choice for workers’ compensation insurance: • Generous Dividend Returns: $18,793,237 returned to MADA members, underscoring the Fund’s commitment to sharing profits with its participants, unlike other insurance providers that retain profits for themselves. • Direct Benefit to Members: All dividends are distributed exclusively to participating MADA member dealers, ensuring that the financial rewards directly benefit those involved in the program. 24
• Dealer-Led Governance: Mississippi dealers actively participate in the governance of the MADA SIF, serving as the Board of Trustees. This ensures that decisions are made with the best interests of the dealer community in mind. • Support for MADA’s Mission: Funds generated through the SIF contribute to MADA’s broader mission of promoting, advancing and protecting franchise automobile dealers. This support enables MADA to advocate for important legislative initiatives such as warranty reimbursement, facility protection, title washing and other issues relevant to franchise law. • Expert Safety Support: The SIF provides designated safety experts who visit dealerships, offering valuable guidance and resources to enhance workplace safety measures. The approval of the $900,000 dividend credit and rate decrease for 2024 reaffirms the MADA SIF’s commitment to providing tangible benefits to its members while maintaining a steadfast focus on promoting the interests of Mississippi’s automobile dealerships. As renewal information is disseminated to participants, the Trustees express their gratitude for the continued support of this highly successful program. MADA SIF BOARD OF TRUSTEES Walt Massey, Chairman Roger Bacon, Vice Chairman Jonathan Allen Jeb Blackburn Jeff Field Paxton King Cannon Kirk Cliff Mitchell Trudy Moody 25
JASON WHITE ELECTED AS SPEAKER OF THE MISSISSIPPI HOUSE OF REPRESENTATIVES In a historic moment, the Mississippi House of Representatives convened the 2024 session with the first order of business being the election of Jason White as the 62nd Speaker of the House. Hailing from the West, Speaker White, who previously served as Speaker Pro Tempore under Philip Gunn, brings a wealth of experience and a commitment to legislative excellence. BACKGROUND AND EXPERIENCE Jason White’s journey to the position of Speaker of the House has been marked by dedication and service. Having served as Speaker Pro Tempore under Philip Gunn, Speaker White has demonstrated his commitment to public service and legislative leadership. NOTABLE ACHIEVEMENTS Speaker White’s influence in shaping Mississippi’s legislative landscape is evident in his involvement in major initiatives, such as the pivotal decision to change the state flag. This landmark legislation underscored his ability to navigate complex issues and make decisions that resonate with the diverse population of Mississippi. INTEGRITY AND LEADERSHIP STYLE Speaker White’s leadership style is characterized by integrity and a straightforward approach. His colleagues respect him not only for his accomplishments but also for his commitment to transparent and ethical governance. In a time where trust in public officials is crucial, Speaker White’s integrity sets a positive tone for the legislative body. SUPPORT FOR MADA INITIATIVES Speaker White has been a steadfast supporter of the MADA’s legislative efforts. Notably, his support of HB 401, aimed at preserving the franchise law, demonstrates his understanding of the issues affecting new automobile dealers. CONCLUSION In electing Jason White as the 62nd Speaker of the House, the Mississippi House of Representatives has chosen a leader with a proven track record of legislative accomplishments and a reputation for integrity. Speaker White’s commitment to open and honest governance, coupled with his support for crucial legislative initiatives, positions him as a key figure in shaping Mississippi’s future. As the state embarks on a new legislative session, Speaker Jason White is poised to guide the House with dedication, experience and a vision for progress. 26
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?® Thomas Ballard, thomas.ballard@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 5949042 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.
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