Pub. 20 2021-2022 Issue 4

NEW J E R S E Y COAL I T I ON OF AU TOMOT I VE R E T A I L E R S Page 12 Issue 4 | 2021 Dealers Raise $500,000 For The Valerie Fund

RMG D R I V I N G D E A L E R P R O F I T A B I L I T Y

www.genovaburns.com Genova Burns LLC • Attorneys-At-Law Labor and Employment Law Commercial and Insurance Litigation Newark, NJ 973.533.0777 Jersey City, NJ 201.469.0100 Tinton Falls, NJ 732.758.6595 Camden, NJ 856.968.0680 New York, NY 212.566.7188 Philadelphia, PA 215.564.0444 Basking Ridge, NJ 973-387-7800 RepResenting new JeRsey’s Auto DeAleRships

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 4 | 2 0 2 1 4 new jersey auto retailer EDITOR: BRIAN HUGHES PUBLISHED BY THE NEWSLINK GROUP, LLC 855.747.4003 ©2021 New Jersey Coalition of Automotive Retailers | The newsLINK Group, LLC. All rights reserved. The New Jersey Auto Retailer is published four times each year by The newsLINK Group, LLC for the New Jersey Coalition of Automotive Retailers (NJCAR) and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and dealer 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 NJ CAR, 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. The New Jersey Auto Retailer is a collective work, and as such, some articles are submitted by authors who are independent of NJ CAR. While NJ CAR 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. NJ CAR Executive Committee and Board of Trustees 2021-2022 NORTHERN REGION I (Bergen, Essex, Hudson, Passaic, Sussex) Joseph Agresta, Jr. Timothy Allocca John Fette Tim Hlavenka (Alt.) Guy Johnson William Kundert, Jr. (Alt.) Brian Lam Renee P. McGuire James Russomano Richard Selman (Alt) Todd Van Duren NORTHERN REGION II (Hunterdon, Morris, Somerset, Union, Warren) Scott Barna (Alt.) Bridget Beyer David Ferraez John Johnson, Jr. Sean Lyons (Alt.) Mark Montenero Edward J. Rossi (Alt.) Michael Salerno Thomas Stark William L. Strauss, III Steven Tilton CENTRAL REGION (Middlesex, Monmouth, Ocean) Robert Ciasulli Thomas Faragall Gary Foltz Elizabeth Giglio (Alt.) Adam Kraushaar Melissa Longo Shari Sandidge (Alt.) Anton Semprivivo David Wintrode, Sr. (Alt.) Jordan Wright SOUTHERN REGION (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, Salem) Russell Abate Jason Elkins (Alt.) Scott T. Harvey William Kassner (Alt.) Steven Kindle (Alt.) Judith Krupnick David Kull Peter Lanzavecchia (Alt.) Marcy Maguire Jim McCormick Robert D. McCormick Tina Wright CONTENTS NJ CAR BOARD OF TRUSTEES BY REGION 6 Chairman’s Message MICHAEL P. DIFEO 8 President's Message JAMES B. APPLETON 10 NADA Director's Message RICHARD A. DESILVA, SR. 12 New Jersey’s Neighborhood New Car & Truck Dealerships Raise Over $500,000 For Children With Cancer & Blood Disorders 14 5 Questions With... 20 What Does Your Employee Onboarding Experience Say About Your Dealership? DURRAN CAGE 22 NJ CAR Recognizes the Dealerships That Have Contributed to CAR-PAC 24 Thank You to Those Who Contributed to NADA PAC 26 Five Things Auto Dealers Need to Know to Meet Their Legal Obligation for Compliance MICHAEL DACHILLE 30 Employee Retention Credit (ERC) Guidance for Dealerships in 2021 SCOTT LEWIS, CPA, MSA 32 Navigating Inventory Shortages In The Aftermath Of The Pandemic KENNETH ROSENFIELD Michael P. DiFeo........................................................................................................... Chairman James Curley, III................................................................................................... Vice Chairman Eric Nielsen....................................................................................................................Secretary Ronald E. Baus, Jr..........................................................................................................Treasurer Michael P. DeSilva............................................. Regional Vice President (Northern Region I) Andy Shapiro......................................................Regional Vice President (Northern Region II) Richard Malouf, Jr....................................................Regional Vice President (Central Region) Ed Barlow, III.........................................................Regional Vice President (Southern Region) Judith A. Schumacher-Tilton..................................................................... Budget Chairwoman Michael McGuire.............................................................NJ CAR Insurance Co. Ltd. Chairman Richard A. DeSilva, Sr..............................................................NJ CAR Services, Inc. President NADA Director for New Jersey Frank M. Pezzolla............................................................................Truck Committee Chairman Charles S. Miller.............................................................................................CAR-PAC President James B. Appleton.........................................................................................................President

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 4 | 2 0 2 1 6 new jersey auto retailer Chairman’s MESSAGE | BY Michael P. DiFeo NADA PRESIDENT AND CEO MIKE STANTON recently authored an article detailing why it is so critical for any dealership that offers (or will soon offer) battery electric vehicles (EVs) to prove themselves an indispensable part of their customers’ EV experience. They need to assist their customer during the decision-making process, the purchase process and throughout the life of the vehicle. Tesla has been saying, for years, that they chose the direct sales model because franchised dealerships were not interested or not able to sell EVs. We currently offer more than 40 models with a plug, and that number may grow to 140 in the next few years, with models being introduced in virtually every vehicle category and at every price point. Tesla’s soundbite no longer rings true. While EVs seem to make headlines almost every day, the fact is dealerships still offer more than 200 different makes and models of gas-powered cars and trucks, which represent the overwhelming majority of vehicles sold in New Jersey and across the U.S. EVs currently account for just three to four percent of all New Jersey EV sales, but that number will continue to grow as the state and the country moves toward a more electrified transportation future. EV sales are expected to jump as more EV models are introduced in the most popular vehicle categories, including compact and midsize SUVs, full-size pickups and more. Once the inf lux of new EV models starts hitting dealership showrooms and lots, dealers will have a critical role to play in getting mass-market car buyers to feel comfortable and confident about buying their first EV. Escalent, a human behavior and analytics advisory firm, recently completed a study that asked more than 20,000 EV shoppers and early adopters to provide detailed feedback on a variety of EV-related issues, including: 1. How they wanted to learn about EVs 2. How they wanted to experience EVs 3. How they wanted to purchase an EV 4. How they wanted to service their EVs 5. What kind of vehicles and features they want before making the switch to an EV When presented with a de-branded version of the direct sales model as an option, 20% of the respondents preferred the direct sales model, 23% were neutral, and 57% of respondents chose the current franchise dealership model. Even Tesla owners who participated in the survey weren’t entirely on board, with barely half choosing the direct sales model as their preferred option for purchasing an EV. While more of the vehicle research and purchase process has moved online for virtually ALL brands, the Escalent study also found a strong preference from EV buyers for an inperson experience, including vehicle education, test driving, charging options, completing the transaction, and getting the vehicle serviced. As many of us have been saying for several years, the direct sales model is not the right approach for consumers. When given a choice, consumers want competition for sales. They want ready access to warranty, recall and general maintenance service. And EV buyers want dealerships to be an integral part of their EV purchase experience. Dealers are all-in on EVs and offer the best (and most proven) way to ensure widespread EV adoption in the years ahead. Dealers Must Support Customers Throughout the EV Purchase Process (And Beyond) WHEN GIVEN A CHOICE, CONSUMERS WANT COMPETITION FOR SALES.

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N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 4 | 2 0 2 1 8 new jersey auto retailer President’s MESSAGE | BY JAMES B. APPLETON What Do the 2021 Election Results Mean for New Jersey Auto Retailers? NEIGHBORHOOD NEW CAR DEALERS CAN VIEW THE ELECTION RESULTS AS A “WIN” FOR COMMON SENSE GOVERNMENT. THE NOVEMBER 2021 ELECTION IN NEW JERSEY had considerably more drama than we typically experience in the Garden State. Not only did Governor Phil Murphy win reelection in a much tighter race than expected, but Senate President Steve Sweeney, one of the most powerful legislators in the State, suffered a major upset when he was defeated by a Republican newcomer. Most incumbent legislators will return to the Legislature for the 220th legislative session, which will begin on January 11, 2022, but Republicans were able to eat into the Democratic majorities, gaining three seats in the Senate and eight seats in the Assembly. This is more turnover than we typically see in statewide elections. In the new session, the Assembly will continue to be led by Assembly Speaker Craig Coughlin. The speaker is well-known to the dealership community and NJ CAR is confident he knows and respects dealerships as job creators and the economic engine on Main Street. With Senator Sweeney’s election loss, the Senate will have new leadership when Democrat Senator Nick Scutari takes the reigns on January 11. The defeat of Senate President Sweeney presents a big question mark (and potential risk) for our industry. NJ CAR enjoyed a strong relationship with Senator Sweeney and dealers were able to rely upon him to throw the brakes on legislation that could hurt Main Street businesses. The loss of that legislative experience and his level-headed presence in the Senate cannot be overstated. Time will tell how Senator Scutari approaches his leadership role. But NJ CAR is confident we will be able to build a strong relationship with the new Senate leadership team and ensure they are educated about the issues that are most important to New Jersey’s neighborhood new car and truck dealerships. Neighborhood new car dealers can view the election results as a “win” for common sense government. Despite the message of moderation delivered by November’s election results, it is not at all-clear the Murphy Administration is prepared to change course. Indeed, all signs, so far, are that the Governor plans to double-down on his progressive agenda. This is something the Coalition and its dealer members are likely to continue to struggle with throughout the Governor’s second term. Regardless of how things play out with the Governor, NJ CAR will continue to build upon the positive relationships developed over the years in both the Senate and Assembly. The upcoming legislative session is expected to be a busy one for our industry. Emboldened by a second term, the Murphy Administration and Democratic-led Legislature will need to be reminded that NJ CAR’s franchised neighborhood new car and truck dealerships drive the Garden State retail economy and are leaders in hundreds of communities in which they operate. NJ CAR will need every dealer in the State to roll up their sleeves and help meet this challenge. With a network of 500+ neighborhood new car and truck dealerships providing consumers with vigorous price competition and ready access to warranty and recall service, our industry deserves to be heard. We will be counting on our growing NJ CARPOOL outreach network to engage with our elected officials to support legislation that benefits our industry and defeat legislation that would do us harm.

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 4 | 2 0 2 1 10 new jersey auto retailer NADA’s Chief Economist, Patrick Manzi, recently posted a story about how the ongoing inventory shortage is impacting vehicle sales. According to NADA’s Chief Economist, Patrick Manzi, new light-vehicle sales in November came in below expectations, with a SAAR of 12.9 million units, down 19% from November 2020. Despite November’s month-to-month decline, sales through the first 11 months of the year are up by 7% compared with the same period in 2020. (In New Jersey, sales are up 17.1% through the first 11 months of the year, compared to 2020.) While November began with a slight increase in inventory levels in some parts of the country, limited vehicle availability keeps sales well below current demand. Month-end inventory in November 2021 was up by 2.9% from October 2021, but inventory could again fall a bit during the final month of the year. According to Patrick Manzi, tight vehicle inventories will continue to limit sales somewhat in the early months of 2022, but the inventory drag on sales should ease throughout the year as inventories build slowly and steadily. When inventory does arrive, it seems to move off the dealership lot at a record pace. The average number of days a new vehicle sits on the lot, according to J.D. Power, fell to a record low of 19 days in November, down from 48 days in November 2020. Average incentive spending per unit is expected to increase slightly to $1,612 in November from October’s record low of $1,598. With lower discounts and high demand, average transaction prices should reach a November record of just over $44,000, according to J.D. Power. Average trade-in values, which are up 83% year over year, and new-vehicle finance rates, which are down from a year ago, have helped consumers deal with those rising prices to some degree. Given the ongoing microchip shortage and its expected impact on vehicle deliveries during the final month of the year, NADA has lowered expectations for total light-vehicle sales in 2021, estimating a total of 14.9 million units sold for the year. WHO SHOULD ATTEND NADA SHOW 2022? The NADA Show is not just for dealers. The world-renowned annual auto industry event provides the education, business solutions and networking opportunities to help managers drive success in each dealership department — and accelerate their careers. Managers of all kinds attend the NADA Show to find real solutions for issues they face in every department, including employee hiring, retention and training, digital and traditional NADA Director’s MESSAGE | BY RICHARD A. DESILVA, SR. Limited Vehicle Availability Continues to Impact Sales

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 11 N J C A R . O R G new jersey auto retailer marketing, legal and regulatory updates, parts and service, and sales management. So who should attend? • General Managers • CRM Managers • Sales Managers • BDC Managers • Marketing Directors • Pre-Owned Managers • Fixed Operations Managers • Finance & Insurance Managers • Social Media Managers • e-Commerce & Internet Sales Managers More than 100 workshops and educations sessions will cover the latest trends and legislation affecting the industry and provide management training and best practices to guide dealers and managers along the path to dealership success. Whether looking to engage with current providers or shopping for new suppliers, attendees will be able to visit more than 500 exhibitors who will be on hand to offer new and exciting ways to help grow your dealership’s success and boost the bottom line. Visit nadashow.org to learn more and register. NADA RELEASES NEW DRIVEN GUIDE ON ELECTRIC VEHICLES Electric vehicles (EVs), being produced in every vehicle class, are a huge opportunity for franchised dealers, who are uniquely positioned to educate customers about EVs and provide them with the firsthand experience of EVs critical to considering a purchase or lease. A Dealer Guide to Electric Vehicles presents solid information about the battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) that will be arriving at dealerships in ever greater numbers — and about issues key to mass adoption of EVs: affordability, charging, range, batteries, safety, service, and the environment. In discussing dealers’ role in addressing each of these issues with customers, the new Driven guide aims to help dealers help their customers embrace EVs. THE WORLD-RENOWNED ANNUAL AUTO INDUSTRY EVENT PROVIDES THE EDUCATION, BUSINESS SOLUTIONS AND NETWORKING OPPORTUNITIES TO HELP MANAGERS DRIVE SUCCESS IN EACH DEALERSHIP DEPARTMENT — AND ACCELERATE THEIR CAREERS. AUTOMOTIVE ADVISORS PROFESSIONALISM • QUALITY • RESPONSIVENESS Our team has over 30 years of extensive knowledge and experience with the automotive industry. Our firm provides individual attention to each client, helping to maximize their bottom line. • Financial Reporting • Tax Planning • LIFO Inventory Application • Performance Benchmarking Please contact one of our partners. Daniel J. Ferrari, CPA Amy M. Dillon, CPA John J. Entz, CPA 2755 Philmont Avenue, Ste 210 Huntingdon Valley, PA 19006 215-914-1400 www.danferrari.com We navigate you forward. Arent Fox’s Automotive Group drives innovative strategies. Our cutting-edge, national practice advises leading dealers and dealer groups as the industry faces unprecedented changes and disruptions. We are here to guide you through this crisis and the next one. Smart In Your World arentfox.com

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 4 | 2 0 2 1 12 new jersey auto retailer New Jersey’s Neighborhood New Car & Truck Dealerships Raise Over $500,000 For Children With Cancer & Blood Disorders

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 13 N J C A R . O R G new jersey auto retailer THE NEW JERSEY AUTO RETAILERS UNITE campaign has raised more than $2.5 million to help the children of The Valerie Fund since 2014. The generosity of more than 200 neighborhood new car and truck dealerships throughout New Jersey has made an extraordinary impact on the lives of the 6,000 children with cancer, sickle cell disease and other blood disorders The Valerie Fund cares for every year. The Valerie Fund, founded in 1977, provides comprehensive health care services at the organization’s seven Children’s Centers located throughout the State. The Valerie Fund treats the whole patient, guided by the philosophy that to truly heal children, they must treat their emotional, social, and developmental needs, as well as their medical needs. “New Jersey’s 500-plus franchised dealerships compete for customers every day, but they can also unite behind a worthwhile cause such as The Valerie Fund and the incredible work they do for seriously ill children and their families,” said Jim Appleton, President of the New Jersey Coalition of Automotive Retailers. “These businesses are leaders in their community, supporting hundreds of charitable organizations and contributing more than $15 million to many worthwhile causes every year.” “It is especially important to offer support to the hundreds of children with Sickle Cell Disease treated at Valerie Fund Centers,” said Judith SchumacherTilton, owner of the Schumacher Auto Group. “This is an incurable disease that affects an underserved population, and New Jersey’s dealerships came together, across all brands, to support the vital work of The Valerie Fund.” One hundred twenty dealers donated over $500,000 in 2021 ALONE! The 2021 New Jersey Auto Retailers Unite campaign, launched in September to coincide with Pediatric Cancer Awareness and Sickle Cell Awareness Month, recruited actress Rosario Dawson to join the campaign as the celebrity spokesperson and featured her in a public service announcement with the patients. “I was truly honored to work with The Valerie Fund and could not be happier that they have reached their goal of raising $500,000,” said Ms. Dawson. “These brave families have to face hardships most of us will never understand. It’s incredible to see them get the love and support they need and deserve.” You can view a complete list of the 120-plus participating dealerships in this year’s New Jersey Auto Retailers Unite campaign at https://njcar.org/new-jersey-auto-retailers-unite-tosupport-the-valerie-fund/.

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 4 | 2 0 2 1 14 new jersey auto retailer Assemblywoman Verlina Reynolds-Jackson What inspired you to run for office and become a legislator? I was inspired to run for office because I felt there was not enough being done in the areas of advocating for youth with special needs or advocating for services for seniors. What is your greatest achievement and your greatest disappointment as a legislator? If you could change one thing in Trenton, what would it be? My greatest achievement as a legislator would be the passing of A3394, which requires civics education to be taught in our middle schools. Also, the passage of A3641, which requires the Department of Law and Public Safety to incorporate implicit bias in cultural diversity training materials for law enforcement officers. Both of these bills have been signed into law by Governor Murphy. My greatest disappointment to date has been my inability to rally support for legislation that limits law enforcement at polling locations (Assembly bill #4655). What are the legislative priorities, issues or areas of concern on which you would like to focus your attention? Two of my legislative priorities, as I move forward, are assisting our communities in the fight against COVID-19 so that the world can fully open up because, unfortunately, we are not where we need to be in this fight. My second priority is really focused on economic development and supporting the mission of our small businesses. Coming out of the pandemic, what are the lessons you’ve learned, and how do you think those lessons should guide public policymakers going forward? The pandemic showed us that food insecurities affect all people of different financial backgrounds, and moving forward, a concentrated focus is needed on public health, technology (broadband), and increased emergency preparedness. What was the make and model of the vehicle in which you learned to drive? Also, what was the first (new or used) vehicle you owned? The first car in high school was a 1981 Chevy Caprice. The first new vehicle I owned was a Ford Taurus, after having a used Camaro. Assemblywoman Reynold Jackson’s Bio: Previously a member of the Trenton City Council, Assemblywoman Verlina Reynolds-Jackson was first sworn into office February 15, 2018, to represent New Jersey’s 15th Legislative District (East Amwell, Ewing, Hopewell Borough (Mercer), Hopewell Township (Mercer), Lambertville, Lawrence (Mercer), Pennington, Trenton, West Amwell, West Windsor). She was reelected in 2021. Assemblywoman Reynolds-Jackson is the Vice-Chair of the Consumer Affairs Legislative Committee and a member of the Commerce and Economic Development Legislative Committee, the Joint Committee on Economic Justice and Equal Employment Opportunity, and the Joint Committee on the Public Schools. She is a Grants Administrator for Mercer County and a graduate of The College of New Jersey (B.A.), Central Michigan University (M.S.), and Rutgers University (C.M.F.O.). Senator Joseph Cryan What inspired you to run for office and become a legislator? I wanted to run for office because I believed I could make a difference in my community and the state of New Jersey. My father was also involved in government and politics, and while it kept him extremely busy, I saw that it brought him joy, that it was a true “labor of love.” I felt that my calling was in public service, and I’m honored to work with wonderful people to create positive change for the people I proudly represent. What is your greatest achievement and your greatest disappointment as a legislator? If you could change one thing in Trenton, what would it be? My greatest achievement would be writing a law that created the Division of Children and Families. My greatest disappointment is the knowledge that there is always more to do and not being able to assist everyone. If I can change one thing in Trenton, it would be the process to give people more time to review materials. What are the legislative priorities, issues or areas of concern on which you would like to focus your attention? New Jersey has been a national model in both labor laws and immigration standards, especially since Governor Murphy took office. While we should be proud of this, there is always more work to be done, especially after COVID-19 revealed so many inequities in our system. I am hopeful to sit down with stakeholders from both industries to see what we can do. Coming out of the pandemic, what are the lessons you’ve learned, and how do you think those lessons should guide public policymakers going forward? As we begin our slow recovery from the COVID-19 pandemic, I am continuously taken aback at the rampant misinformation that skews decision-making. I believe everyone should have

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 15 N J C A R . O R G new jersey auto retailer a right to make their own decisions, but moving forward, we need to take a more aggressive approach to combat misinformation. It has proven to be more than just a nuisance, but a public health initiative. What was the make and model of the vehicle in which you learned to drive? Also, what was the first (new or used) vehicle you owned? I learned to drive on a Ford Granada, and the first car I owned was a 1967 Chevy Nova (with an FM radio!) Senator Cryan’s Bio: Senator Cryan has represented New Jersey’s 20th Legislative District (Elizabeth, Hillside, Roselle, Union) since 2017. A former member of the New Jersey General Assembly, he first represented Legislative District 20 from 2002 to 2014. He served as the Majority Leader and chaired or served on over a dozen different committees in the legislature. He resigned from the Assembly after being elected sheriff of Union County, where he oversaw a gun buy-back program and worked with state and local law enforcement to support safety and security programs. In the Senate, he serves as Vice-Chair of the Law and Public Safety Committee, Vice-Chair of the Joint Committee on the Public Schools and is a member of the Select Committee on New Jersey Transit. He is a graduate of Belmont Abbey College, from which he earned a Bachelor of Arts degree in Business Administration. He has been honored and recognized by many organizations throughout his career and was the first general chairman of the Union County Saint Patrick’s Day Parade committee and is the standard-bearer of the Cryan Association, an Irish American charitable, civic organization. Senator James Beach What inspired you to run for office and become a legislator? I wanted my wife to call me “Honorable.” What is your greatest achievement and your greatest disappointment as a legislator? If you could change one thing in Trenton, what would it be? If I could change one thing, it would be to reconfigure how property taxes are assessed. I’m proudest of two bills that were ultimately signed into law: one to reform New Jersey’s car seat laws and another that provides the parents of medically-fragile children a voice in selecting their children’s nursing care at school. What are the legislative priorities, issues or areas of concern on which you would like to focus your attention? Veterans, senior citizens and children. Coming out of the pandemic, what are the lessons you’ve learned, and how do you think those lessons should guide public policymakers going forward? Collaboration, collaboration, collaboration: We can accomplish more working together than alone! What was the make and model of the vehicle in which you learned to drive? Also, what was the first (new or used) vehicle you owned? I learned to drive on a 1949 Ford. The first car I owned was a used 1964 Goliath. Senator Beach’s Bio: Senator James Beach has represented New Jersey’s 6th Legislative District (Burlington and Camden Counties) Berlin Township, Cherry Hill, Collingswood, Gibbsboro, Haddon, Haddonfield, Hi-Nella, Maple Shade, Merchantville, Oaklyn, Pennsauken, Somerdale, Stratford, Tavistock, Voorhees) since January 13, 2009. He is currently one of two Assistant Majority Leaders in the Senate, a role he has held since 2014. He also serves as the Chair of the State Government, Watering, Tourism & Historic Preservation Senate legislative committee and is a member of the Joint Committee on the Public Schools Education legislative committee. Senator Beach is a former educator and football coach for several southern New Jersey high schools. At the time of his retirement, he was director of vocational education for the Black Horse Pike Regional School District. Senator Beach earned a bachelor’s degree in Psychology and Physical Education from Midwestern College, a master’s degree in Personnel Services from Rowan University, and a doctorate in Education Administration from Nova University. Assemblyman Daniel Benson What inspired you to run for office and become a legislator? I became actively involved in my community and community service around the age of 25 when I started growing dissatisfied with the direction of my local government. I noticed that many of my local representatives were not from my neighborhood or professional background, and I felt that I could offer a unique perspective on the issues facing our township. What is your greatest achievement and your greatest disappointment as a legislator? If you could change one thing in Trenton, what would it be? My greatest achievement would be the passage of the 911 Good Samaritan opioid antidote legislation. For better or for worse, the bill, which we anticipated would save a couple of hundred lives per year, has ended up saving tens of thousands of people from overdosing throughout its lifetime. My biggest disappointment would be the length of time it can take to draft a bill, build support for it, get it posted for a vote, and then run out of time to get it passed and/or signed into law or vetoed by the Governor. It can be very frustrating for good legislation to take more than one legislative session (two years) 5 QUESTIONS continued on page 16

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 4 | 2 0 2 1 16 new jersey auto retailer to actually become law. But you have to be persistent and keep your coalitions of support together. Regarding what I would change in Trenton, I would definitely encourage greater social interaction among legislators from different political parties. I believe this would foster more organic relationships and create a stronger sense of empathy for the common needs of all constituents. What are the legislative priorities, issues or areas of concern on which you would like to focus your attention? Right now, I am primarily focused on reforming the Motor Vehicle Commission, continuing improvements to NJ Transit, fighting for equity and environmental stewardship in public transportation, increasing access to healthcare, and transitioning New Jersey to cleaner sources of energy, especially in the transportation sector. Coming out of the pandemic, what are the lessons you’ve learned, and how do you think those lessons should guide public policymakers going forward? I think the four most important lessons we have learned throughout this pandemic are: 1) that our communities are far more interconnected than perhaps we realized, so we have to place a greater emphasis on ensuring that no one is isolated; 2) we need to improve the f lexibility with which we deliver government services, especially in terms of expanding the online delivery of services without isolating those who are experiencing technical challenges; 3) we must ensure that everyone has reliable access to the internet, training for computer competency; and 4) that telehealth and telemedicine, proven invaluable through this pandemic, have proven their value outside the context of the pandemic, and should be codified as permanent aspects of healthcare delivery. What was the make and model of the vehicle in which you learned to drive? Also, what was the first (new or used) vehicle you owned? The car in which I learned how to drive was a 1977 Chevy Station Wagon, which would stall if you had to stop too quickly. The first car I bought was a sky blue 1977 Chevy Malibu classic, with a white soft top, two doors, and a V8 engine. The first car I newly owned was a 1998 Dodge Neon. Assemblyman Benson’s Bio: Assemblyman Daniel Benson has represented New Jersey’s 14th Legislative District (Cranbury, East Windsor, Hamilton (Mercer), Hightstown, Jamesburg, Monroe (Middlesex), Plainsboro, Robbinsville and Spotswood) since 2011. He has been the Assembly Deputy Conference Leader since 2020 and is currently the Chair of the Assembly Transportation and Independent Authorities Committee and a member of the Assembly Health Committee and the Assembly Budget Committee. Before serving in the Assembly, he served in the Mercer County Board of Chosen Freeholders from 2008-2011 and the Hamilton Township Council from 2002 to 2005. A business consultant, Assemblyman Benson is a graduate of Georgetown University and Rutgers University, Bloustein School of Planning and Public Policy. 5 QUESTIONS continued from page 15

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WILFREDO FERNANDEZ, CPA Partner, Co-Leader Automotive Dealerships Services wfernandez@citrincooperman.com 973.218.0500 ELLEN KERA, CPA Partner, Co-Leader Automotive Dealerships Services ekera@citrincooperman.com 914.949.2990 How we connect to the heart of the matter, with the strategic ability to plan and put ideas into practice, is what sets us apart and lets our dealership clients know they are in good hands. Start your journey towards excellence by contacting us today. Focused on the bottom line.

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 4 | 2 0 2 1 20 new jersey auto retailer CUSTOMER EXPERIENCE IS SUCH A BUZZWORD these days, but what about the Employee Experience? Research shows that both the Employee and Customer Experience are key to running a successful dealership. Do you remember your first day starting at a dealership? I can remember like yesterday. We take our OEM courses to get certified, you get a mentor (15-20 year car person if you are lucky), and then you hit the ground running. Sound familiar? The days of hiring people and letting them sink or swim are over. Today, your employee roadmap needs to be clear and written down. It would also benefit to create your own “Company Academy,” an online course designed just for your store so that it aligns with your company culture. Let’s back up for a moment. The employee experience actually starts before they are even hired. The interview process must be tight and systematic. Here are a few best practices: • Have the candidate send a video prior to the first interview, especially if the video is required to send to customers. • Your company should be sending the customer a personalized video about what to expect, along with the next steps. • Have the candidate send a text and email on why they would be a great person to join the team. With text being the number one form of communication used by customers, text etiquette is huge. • What does their role look like three months, six months, and 12 months down the road? Be transparent about how to grow within the company. Clarity is king. GOALS AND VISION After a phenomenal interview process, you now have hired the right employee. What’s next? I strongly suggest documenting what the employee would like to accomplish while employed at your dealership. Would they want to stay in sales, move to service, or maybe get into leadership? You must provide a clear path on how they can accomplish their short-and longterm goals. MASTER YOUR VIRTUAL SHOWROOM Make sure ALL employees have a solid grasp on your Virtual Showroom (Dealership Website). You would be shocked to see how many people currently working at a dealership don’t even know how to locate the Used Car Specials on their own website. With digital retailing so key to the online shopper, your employees need to understand that experience. What Does Your Employee Onboarding Experience Say About Your Dealership? By Durran Cage, Cage Automotive

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 21 N J C A R . O R G new jersey auto retailer ALWAYS BE LISTENING We are all so used to hard-core sales training and the “Always Be Closing” mentality. I would argue the real mantra should be “Always Be Listening” because that is where the sale is made. It isn’t just listening to what the customer says, but it’s what they don’t say as well. Think about body language and tone of voice. I would recommend training skills in the area of NeuroLinguistic Programming (NLP). If texting and emailing are part of their job requirement, then put them through an entrylevel copywriting course to boost their confidence in how to interact with words. The more we invest in our people, the more significant ROI we should expect. PRODUCT CERTIFICATION AND CUSTOMER EXPERIENCE SELLING Product Certification and teaching the process of how to create a great experience for your customers should always be mandatory. Certification should come from your OEM, and your “Road to the Sale” should be tailored to your customers and company culture. Both Product Certification and Customer Experience Selling should be updated/monitored regularly to assist in removing friction for both employees and customers. Again, what do your customers and employees want that would create the best experience for both? Leverage technology to update your processes. Record a video of the updates you want to make, and put this in your own Learning Management System so it can be available to everyone. REMOVE THE SILOS To level up both employee and customer experience, you must remove any silos within your organization. In this day and age, it is imperative your new employee understands how everything is connected at your dealership. Having your new employee meet both the variable and fixed team will separate you from your competition. Take it to the next step and have your new sales rep spend time working with the Online Experience Team (BDC) and spend a day or two in Parts. The goal here is to replace “That’s not my department” with “Yes, I am familiar with what you’re talking about because we are all on the same team.” SOCIAL MEDIA MARKETING AND BRANDING Take a look at the top downloaded apps. My guess is you’ll see a social media app near or at the top. Social media is here to stay, so how will your new employee market themselves along with the dealership? Don’t leave it up to your new employee to figure it out. Teaching your new hire how to leverage social media and build their brand is a must. It must be communicated what your company guidelines are on what is acceptable and what is not. Your new hire’s social media strategy needs to be planned and reviewed on a consistent basis. Remember, your new hire is part of your dealership’s brand; make sure everything is aligned. COMMUNICATION AND COACHING Communication and coaching are the most important elements of successful onboarding. Creating a successful onboarding strategy without consistent communication and development from your leaders will result in high turnover. At the end of the day, we all want to make sure we are on the right path, but this is impossible to know without frequent coaching and one-on-one meetings. Even if they are just a few moments on a consistent basis, these meetings are valuable to your employees. Take time to get feedback from your new hire on how the onboarding process has been and what they feel could be improved? Come up with a solid employee onboarding system that will have your new hire raving about your store and telling everyone about it. Durran Cage is the founder and owner of Cage Automotive, which provides dealerships with consulting, training and coaching for Internet Sales, CRM and Digital Marketing. He can be reached at 731-394-6907 or via email at durran@cageautomotive.com. Learn more about Cage Automotive at cageautomotive.com.

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 4 | 2 0 2 1 22 new jersey auto retailer NJ CAR Recognizes the Dealerships That Have Contributed to CAR-PAC NJ CAR appreciates the support of the 312 dealers who contributed to CAR-PAC, the Coalition’s political action committee, between Jan. 1, 2021, and Sept. 30, 2021. CAR PAC needs the contributions of ALL dealers to ensure it has the necessary financial resources to support candidates (on both sides of the aisle) who support the franchised retail automotive industry in New Jersey and ensure the dealers’ voice is heard in Trenton on a wide variety of important public policy issues. CAR-PAC has been (and will continue to be) very active in supporting the candidates who support our industry. The New Jersey Election Law Enforcement Commission (ELEC) rules allow contributions to a political action committee of up to $7,200 per business or jointly-controlled business. And, don’t forget, contributions can be made with corporate funds. If you have any questions regarding how much your dealership or dealership group can still contribute this election cycle, please contact Jim Appleton at 609.883.5056, Ext. 330, or by email at jappleton@njcar.org. NJ CAR encourages those dealers who have not yet contributed to support CAR-PAC’s efforts on behalf of ALL New Jersey franchised automotive retailers. The following dealerships contributed to CAR-PAC between Jan. 1, 2021, and Sept. 30, 2021: Ace Ford Action Hyundai of Millville Acura of Denville Acura of Ocean Acura of Ramsey Acura Turnersville All American Ford in Point Pleasant All American Ford of Paramus All American Ford Subaru of Old Bridge All American Ford, Inc. All AmericanMazda in Brick Audi Meadowlands Audi Princeton Audi Turnersville Autoland Chrysler Jeep Dodge Ram Autoland Toyota Avalon Honda Baker Chrysler Jeep Dodge, Inc. BarlowBuick GMC-Manahawkin BarlowBuick GMC-Woodbury BarlowChevrolet Bell Audi Bell Ford Bennett Chevrolet Bentley Parsippany Bentley Truck Services Logan Twp. Bentley Truck Services Maple Shade Benzel-BuschMotor Car Corp. Bill Vince's Bridgewater Acura BMWof Atlantic City BMWof Bridgewater BMWof Ramsey BMWof Springfield BMWof Tenafly Boardwalk Acura Boardwalk Honda Bob Novick AutoMall Bridgewater Kia Brogan Cadillac Company Buhler Chrysler Jeep Dodge Buick GMC of Mahwah BurkeMotors, Inc. Burlington Chevrolet, Inc. Burlington Kia Burlington Volkswagen Burns Buick GMCHyundai Burns Honda Cadillac of Mahwah CambriaMack Campbell Freightliner Causeway Ford Lincoln Causeway Honda Causeway Hyundai Causeway Nissan Chapman Ford LincolnMazda Chevrolet of Jersey City Chrysler Dodge Jeep of Paramus Chrysler Jeep Dodge Ram of Englewood Cliffs Ciocca Chevrolet of Princeton Ciocca Subaru of Pleasantville Circle BMW Circle Infiniti Coast Cities Truck Sales, Inc. Coast Honda Coleman Buick GMC Cadillac Crown Cadillac, Inc. D&CHonda of Tenafly DARCARS Lexus of Englewood Dayton Toyota DCHAcademy Honda DCHBMWof Bloomfield DCHBMWof Freehold DCHBrunswick Toyota DCH Freehold Toyota DCHKay Honda DiFeo Kia Dodge Chrysler City Douglas Infiniti Douglas Volkswagen Dover Dodge Chrysler Jeep, Inc. Downs Ford East Coast Toyota Echelon Ford, Inc. Edison Nissan Elite Acura Elkins Chevrolet F.C. Kerbeck & Sons Family Ford, Inc. Fette Ford, Inc. Fette Infiniti Franklin Sussex AutoMall, Inc. Franklin Sussex Hyundai Frank's Truck Center, Inc. Fred Beans Hyundai of Flemington Fred Beans Nissan of Flemington

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 23 N J C A R . O R G new jersey auto retailer Fred Beans Toyota of Flemington Freehold Buick GMC Freehold Dodge, Inc. Freehold Ford Freehold Nissan Freehold Subaru Fullerton Alfa RomeoMaserati Fullerton Automotive Corp. Fullerton Ford Gabrielli Kenworth of NJ Gabrielli Truck Sales Galaxy Toyota Gensinger Motors, Inc. Gentilini Chevrolet Gentilini Ford, Inc. GeorgeWall Ford Lincoln Glen Toyota Global AutoMall Gold Coast Cadillac H&HMack Sales Haldeman Ford Haldeman Ford of Hightstown Haldeman Lexus of Princeton HamiltonMazda Volkswagen, Inc. Hawthorne Chevrolet Hilltop Nissan, Inc. Honda of Freehold Honda of Princeton Honda of Toms River Honda of Turnersville Honda Universe Hudson Chrysler Jeep Dodge Hudson Hyundai Subaru Hudson Nissan Hudson Subaru Hudson Toyota Hunter Jersey Peterbilt-Clarksburg Infiniti of Englewood Irwin LincolnMazda Jaguar Land Rover Englewood Jaguar Land Rover Paramus Jaguar Land Rover Parsippany JimCurley Buick GMC Joe Heidt Motors Johnson Buick GMC Cadillac, Inc. Johnson Dodge Chrysler Joyce Honda Kerbeck Cadillac Chevrolet Buick GMC Kindle Ford Lincoln Kundert Volvo Cars of Hasbrouck Heights Larson Ford, Inc. Lawrenceville Ford Lincoln Lexus of Atlantic City Lexus of Bridgewater Lexus of Cherry Hill Lexus of Edison Liberty Hyundai Liberty Kenworth of South Jersey Liberty Kia Liberty Subaru, Inc. Liberty Toyota Liccardi Chrysler Dodge Liccardi Ford, Inc. Liccardi Mitsubishi Lilliston Chrysler Dodge Jeep Lilliston Ford, Inc. Lincoln of Wayne Lucas Chevrolet Lucas Chrysler Jeep Dodge Lucas Ford Madison Honda Mahwah Ford Sales & Service, Inc. Mahwah Honda Malouf Buick-GMC, Inc. Malouf Chevrolet-Cadillac, Inc. Malouf Ford-Lincoln, Inc. Manahawkin Chrysler Dodge Manahawkin Kia Maplecrest Ford, Inc. Maplecrest of Union Maserati & Alfa Romeo of Monmouth Maserati of Morris County Matt Blatt Glassboro ImportsMitsubishi Matt Blatt Kia Toms River Matt Blatt Kia-Egg Harbor Twp. Matt Blatt Nissan McGuire Buick GMC (LF) McGuire Cadillac McGuire Chevrolet Cadillac Mercedes-Benz of Atlantic City Mercedes-Benz of Flemington Mercedes-Benz of Newton Mercedes-Benz of Paramus Mercedes-Benz of Princeton Metro Honda Miller Buick GMC Corp. Miller Ford Lincoln Subaru Mini of Ramsey Mount Holly Nissan Nielsen Chevrolet Nielsen Chrysler Jeep Dodge Ram Nielsen Ford NielsenMitsubishi Nielsen Nissan Nissan 46 Nissan City of Red Bank Nissan of North Plainfield Nissan of Turnersville Nutley Kia Paramus Chevrolet Paramus Hyundai Park Avenue Acura Park Avenue BMW Parkway Toyota Paul Miller Audi Paul Miller BMW Paul Miller Chevrolet Paul Miller Honda of West Caldwell Paul Miller Porsche Paul Miller Subaru Paul Miller Toyota of West Caldwell Paul Miller Volkswagen of Bernardsville Pellegrino Buick GMC Pellegrino Chevrolet Pellegrino Chrysler Jeep Performance Dodge Ram Pine Belt Cadillac of Toms River Pine Belt Chevrolet of Lakewood Pine Belt Chrysler Jeep Dodge Ram Pine Belt Nissan of Toms River Pine Belt of Keyport Pine Belt Subaru Pointe Buick GMC Precision Acura Precision Chrysler Jeep Dodge Ram Prestige Volkswagen Subaru Raceway Kia of Freehold Ramsey Alfa Romeo Fiat Ramsey Chrysler Jeep Dodge Ram Ramsey Infiniti RamseyMazda Ramsey Nissan Ramsey Subaru Ray CatenaMotor Car Ray Catena of Union Red Bank Volvo, Inc. Reydel Volkswagen of Linden Riverside Nissan RK Chevrolet Subaru Kia Rossi Chevrolet Buick GMC Rossi Chrysler Dodge Jeep Ram Route 1Mazda-Woodbridge Route 1 Toyota Route 17 Nissan Route 18 Chrysler Jeep Dodge Ram

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 4 | 2 0 2 1 24 new jersey auto retailer Thank You to Those Who Contributed to NADA PAC Bob Ciasulli DrewColeman TomDeFelice, Jr. Rick DeSilva, Sr. Rick DeSilva, Jr. Sanford Dorf John Fette Garry Foltz Orrin Gensinger Scott Harvey David Kull Larry Kull Paul Larson, Jr. Shelly Locascio BobMcCormick JimMcCormick ChipMiller Eric Nielsen JimReydel Ed Rossi Judith Schumacher-Tilton Drew Sciaulino Andrew Shapiro Rob Sickel Peter Spina Sr. Louis Trebino Jeff Wall John Zanger, Jr. NADA PAC helps to elect to Congress qualified individuals who understand the needs of new car and truck dealers. NADA PAC is consistently credited as being one of the nation's top trade association political action committees in terms of both total fundraising and contributions to federal candidates. NADA PAC supports candidates for Congress on a bipartisan basis from the recommendations of the NADA PAC dealer leadership for each state. The 2021 NADA PAC leadership team for New Jersey consists of NADA Director Rick DeSilva, NJ CAR Chairman Michael DiFeo, NADA PAC State Chairman Robert Larson and NJ CAR President Jim Appleton. The following individuals from New Jersey have contributed this year to NADA PAC from January 1, 2021, through September 30, 2021: Route 22 Nissan Route 33 Nissan Route 46 Chrysler Jeep Dodge Route 46Mitsubishi Route 46 Subaru Route 130 Chrysler Dodge Jeep Ram Royal Buick GMC, Inc. Salerno Duane Infiniti Salerno-Duane, Inc. Sansone Chrysler Jeep Dodge Sansone Hyundai, Inc. Sansone Jr's 66 AutoMall Sansone Kia Sansone Nissan SchumacherChevrolet Buickof Boonton Schumacher Chevrolet of Clifton Schumacher Chevrolet of Denville Schumacher Chevrolet of Little Falls Schumacher Chevrolet of Livingston Scott Harvey Auto Group Sea Breeze Ford Sea Coast Chevrolet Sea ViewAuto Corp. Shore Toyota ShrewsburyMotors SmithMotor Company, Inc. Spirit Chrysler Dodge Jeep Springfield Acura Subaru of Morristown Sussex Honda T & T Coast Buick GMC TeamWelsh Jeep Chrysler Teterboro Chrysler Jeep Three County Volkswagen Corp. Tom's Ford Towne Hyundai Towne Toyota Toyota of Hackensack Toyota of Morristown, Inc. Toyota of Runnemede Toyota of Turnersville Toyota of Vineland Toyota Universe TrendMotors Tri-County Lexus Turnersville AutoMall Turnersville Kia Vann Dodge Chrysler Jeep Verner-Cadby, Inc. VIP Honda Volkswagen Princeton VolkswagenWorld of Newton Volvo Cars Manasquan Volvo Cars Ramsey Wayne Ford Wayne Subaru, Inc. Windsor Nissan Woodbury Nissan, Inc. World Volkswagen

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