NEW JERSEY COALITION OF AUTOMOTIVE RETAILERS REMAINING SAFEGUARD RULE REVISIONS ARE EFFECTIVE JUNE 9, 2023 Issue 1 | 2023
RMG DRIVING DEALER PROFITABILITY
WE MEAN BUSINESS New York • Newark • Jersey City • Basking Ridge • Philadelphia Genova Burns LLC • www.genovaburns.com ATTORNEYS AT LAW
EDITOR: BRIAN HUGHES PUBLISHED BY THE NEWSLINK GROUP, LLC 855.747.4003 ©2023 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. table of CONTENTS 6 President's Message The FTC Has Dealerships In Their Sights JAMES B. APPLETON 8 Chairman's Message Franchised Dealers Are the Critical Cog in the EV Marketplace JAMES CURLEY, III 10 NADA Director's Message NADA Active On Multiple Legislative, Regulatory and Educational Fronts RICK DeSILVA, JR. 12 NJ CAR Wins 2022 Communicator Award 14 NJ CAR Wins 2022 MarCom Award 17 5 Questions With... Assemblywoman Aura Dunn, 25th Legislative District Senator Edward Durr, 3rd Legislative District 20 How Dealerships Can Win With First-Party Data BY BILL PARLAMAN 22 Inflation Reduction Act What Does It Mean for New Jersey’s Auto Dealers? BY MAGDALENA PADILLA, ESQ. 25 FTC Trade Regulation Rule Would Complicate the Vehicle Purchase Process BY GREYSON HANNIGAN 28 A Delay in the Safeguards Rule, But Dealers Should Not Wait BY HAO NGUYEN, ESQ. 33 Federal and State EV Incentives as of February 2023 36 Common Forms All Dealerships Need 40 NJCAR Recognizes the Dealerships That Have Contributed to CAR-PAC 42 Thank You to Those Who Contributed to NADA PAC NJ CAR Executive Committee and Board of Trustees 2022-2023 NJ CAR BOARD OF TRUSTEES BY REGION NORTHERN REGION I (Bergen, Essex, Hudson, Passaic, Sussex) Joseph Agresta, Jr. Timothy Allocca Jeffrey Brown John Fette Tim Hlavenka (Alt.) William Kundert, Jr. Brian Lam Renee P. McGuire James Russomano (Alt.) Richard Selman (Alt.) Todd Van Duren NORTHERN REGION II (Hunterdon, Morris, Somerset, Union, Warren) Scott Barna (Alt.) David Ferraez John Johnson, Jr. Sean Lyons Chris Preziosi, Jr. (Alt.) Edward J. Rossi William L. Strauss, III Stephen Tilton James Curley, III....................................................................................Chairman Eric Nielsen....................................................................................Vice Chairman Ronald E. Baus, Jr..................................................................................Secretary Andy Shapiro..........................................................................................Treasurer Michael P. DeSilva...................... Regional Vice President (Northern Region I) Mark Montenero........................Regional Vice President (Northern Region II) Richard Malouf, Jr...........................Regional Vice President (Central Region) Ed Barlow, III................................Regional Vice President (Southern Region) Michael P. DiFeo.....................................................................Budget Chairman Michael McGuire...................................NJ CAR Insurance Co. Ltd. Chairman Richard DeSilva, Jr........................................NJ CAR Services, Inc. President Richard DeSilva, Jr............................................NADA Director for New Jersey Frank M. Pezzolla..................................................Truck Committee Chairman Charles S. Miller...................................................................CAR-PAC President Thomas DeFelice, lll............................................................NextGen Chairman James B. Appleton...............................................................................President CENTRAL REGION (Middlesex, Monmouth, Ocean) Robert Ciasulli Thomas Faragall Garry Foltz Elizabeth Giglio (Alt.) Adam Kraushaar Melissa Longo Shari Sandidge (Alt.) Paul Sansone, Jr. Anton Semprivivo David Wintrode, Sr. (Alt.) Jordan Wright SOUTHERN REGION (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, Salem) Russell Abate Jason Elkins Jeremy Fisher William Kassner (Alt.) Steven Kindle (Alt.) Judith Krupnick David Kull Peter Lanzavecchia (Alt.) Stacey Lilliston James McCormick Robert D. McCormick Tina Wright 4 new jersey auto retailer
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PRESIDENT’S MESSAGE | JAMES B. APPLETON THE FTC HAS DEALERSHIPS IN THEIR SIGHTS The Federal Trade Commission (FTC) is the primary federal regulatory agency that oversees automotive retail. And the FTC has been VERY busy in recent months. Their activity is keeping dealers on their toes, which is why it is critical that dealers ensure they remain compliant. Below is a rundown of a few FTC-related issues and their potential impact on dealers: Motor Vehicle Dealers Trade Regulation Rule In June 2022, the FTC introduced the Motor Vehicle Dealers Trade Regulation Rule. If adopted, this Rule would dramatically transform (and unnecessarily complicate) the process for consumers to purchase, trade in, and finance new and used vehicles. It would also impact consumers’ ability to take advantage of valuable optional products like extended service contracts and GAP Waivers. The proposed rule would massively expand the liability exposure for dealers related to advertising and vehicle sales and expose dealers to large monetary fines from the FTC. NJ CAR joined with NADA and scores of other dealer advocacy groups in submitting detailed comments to the FTC defending the highly competitive and pro-consumer benefits of the optional, dealer-assisted financing model. The bottom line of our collective comments is that the FTC’s proposal would likely negatively affect consumers, rather than protect them. Among other things, the Dealers Trade Rule would: 1. Prohibit misrepresentations related to the advertising and sales process; 2. Require dealerships to calculate the loan-to-value ratio before offering GAP agreements; 3. Prohibit sales of add-on products or services that provide no benefit to the consumer; 4. Require dealers to keep a variety of records for 24 months; and 5. Require dealerships to provide a variety of very specific disclosures. By December 2022, a bipartisan group of nearly 50 members of the U.S. Senate and House of Representatives had publicly called on the FTC to withdraw the controversial Motor Vehicle Dealers Trade Regulation Rule. As of now, the FTC has not finalized the proposed rule. In fact, the FTC must review over 70,000 comments before issuing a final rule. Proposed Rule on NonCompete Clauses The FTC has also announced a Notice of Proposed Rulemaking that would ban post-termination, non-compete clauses and require employers (including dealerships) to rescind existing noncompete clauses within 180 days of the final rule being published in the Federal Register. The Proposed Rule exempts individuals who are selling a business, an ownership interest in a business, or all of a business’ operating assets, where the individual restricted by the non-compete was a substantial owner, member, or partner in the business entity (owning at least a 25% stake in the business entity). The FTC is expected to finalize the Proposed Rule later this year, so dealerships should evaluate any noncompete clauses they may have with current or former employees with their HR professionals and attorney. FTC Civil Penalties Increased Finally, the FTC recently adjusted the maximum civil penalty dollar amounts for violations of 16 provisions of law the FTC enforces. The threshold was increased from $46,517 to $50,120 in 2023. If your dealership has noted the FTC penalty in your ISP, Safeguard Rule Policy or other documents, make sure to update the dollar amount. For more information on any of these issues, dealers are encouraged to visit the FTC website (www.ftc.gov) or contact NJ CAR at 609-883-5056. 6 new jersey auto retailer
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CHAIRMAN'S MESSAGE | JAMES CURLEY, III FRANCHISED DEALERS ARE THE CRITICAL COG IN THE EV MARKETPLACE Franchised dealers are ALL IN when it comes to offering a rapidly growing variety of electric vehicles (EVs) in every category and at every price point. Hundreds of billions of dollars have been invested in research and development, design, and standing up the manufacturing capacity to produce EVs in greater and greater numbers. Consumer demand for EVs is still light (about 7% of total New Jersey vehicle sales in 2022), but generous state and federal incentives should help the EV market share continue growing, notwithstanding concerns about the overly complicated federal tax credit or the “on-again, off-again” nature of the state incentive program. There is a great deal of upside and optimism among franchised dealers regarding the dealer EV marketplace. As is usually the case, this silver lining has a dark cloud hanging over it, with some OEMs considering or actually moving forward to spin off an EVonly line make. This has dealers very concerned. Take Polestar, which was originally a model in the Volvo lineup, that spun off as a new, standalone line make. While dealers were pleased to see Volvo appoint franchisees, new entrants to the EV market have chosen to go it alone, like Tesla. We’re not just talking about high-visibility brands like Rivian and Lucid. Vietnamese brand, VinFast, is setting up shop in the U.S. and others are sure to follow. Legacy brands are making noise as well. Ford CEO Jim Farly courted controversy with his comments last year about spinning off Ford EVs as a separate line make. It’s hard to determine whether this was an attempt to pump up the stock price or if he was serious about going down this road at the time. Ford ultimately decided to “separate,” but not spin off its EV business from its legacy operations. Volkswagen also announced plans to sell the new Scout EV brand online, directly from the factory, starting in 2026. Exactly how they plan to launch the Scout in the U.S., where most states prohibit direct sales, is a question that has not yet been answered. State franchise laws make it difficult for OEMs to bypass their incumbent dealer networks, but it’s important to note these laws were not intended to primarily protect dealers. They were aimed at protecting consumers by ensuring competition and accountability. It’s distressing to see some automakers STILL fail to grasp the fact that independently owned and operated dealers are the best way to market any new product, especially EVs. We need to remind our OEMs about this fact, considering the proclamations at the federal and state level, that every vehicle sold by 2035 will be an EV. Franchised dealers are a critical cog in the EV marketplace, but they are also caught in the middle of a tornado of ever-evolving activity. Government can mandate that manufacturers produce as many EVs as they want. Automakers can produce them as fast as supply chain conditions will allow. And these vehicles can flow down to dealer lots, but they do no good for the environment until customers purchase them. The consumer will decide when (or if) we become a 100% EV market, not politicians. And those consumers should benefit from the competition and protections afforded to them by the franchise system, not be forced to purchase their EV directly from a manufacturer (start-up or legacy) that has a monopoly on the entire car-buying process. 8 new jersey auto retailer
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The National Automobile Dealers Association (NADA) actively works on behalf of dealers across the country. Below is a brief review of some of the most critical issues NADA is addressing. LIFO Relief Legislation Reintroduced in the House of Representatives The bipartisan Supply Chain Disruptions Relief Act (H.R. 700) was recently reintroduced in the U.S. House by Reps. Jodey Arrington (R-TX) and Dan Kildee (D-MI). This legislation is identical to the LIFO relief bill from the last Congress, which received overwhelming bipartisan support and passed the Senate without opposition. H.R. 700 would allow businesses that utilize the LIFO accounting method extended time to replace their vehicle inventories that were dramatically impacted by pandemicrelated global disruptions and supply chain issues, which have impacted production. These obstacles made it nearly impossible to replenish the new vehicle supply. A Senate companion bill is expected to be reintroduced soon by Senators Sherrod Brown (D-OH) and Tim Scott (R-SC). NADA continues to urge Congress to pass this technical and noncontroversial legislation to address supply chain and semiconductor shortages and help the auto industry continue its recovery. Principles to Guide Auto Retail’s Future NADA Past Chairman Michael Alford spoke at NADA Show in Las Vegas earlier this year and he shared some important observations about the principles he felt will guide the future of auto retailing. He spoke about dealers and OEMs serving as two necessary components of a single automotive ecosystem that need to work in concert with each other. He stated that an ecosystem where the retail and manufacturing channels peacefully coexist will only benefit the customer experience for everyone. In an effort to help create this ecosystem, NADA unveiled its Guiding Principles on Evolving Business Models and the Dealer Franchise System, which lays a foundation that will help dealers and OEMs work to improve the customer experience and ensure business success for all. The principles, which can be downloaded at https://www.nada.org/nada/issues/future-retail, are the result of conversations between NADA leadership, state and metro ATAEs, dealer councils, and the Alliance for Automotive Innovation. The principles clearly articulate the industry’s position on the major issues impacting our business as well as common core values that both dealers and manufacturers could, and should, agree upon. Each and every one of us is fully committed to evolving and improving our processes. NADA developed these principles to provide a pathway for the franchise system to continue to evolve and flourish as the best system for selling and servicing new cars and trucks while positioning our industry for the future. If you haven’t already done so, I encourage you to review the principles and provide me with your feedback. NADA DIRECTOR'S MESSAGE | RICK DeSILVA, JR. NADA ACTIVE ON MULTIPLE LEGISLATIVE, REGULATORY AND EDUCATIONAL FRONTS 10 new jersey auto retailer
Safeguards Implementation Extension Was A (Temporary) Win for Dealers On November 15, 2022, the Federal Trade Commission (FTC) announced that it was extending the December 9, 2022, deadline for financial institutions to fully comply with all of the requirements of the FTC’s Amended Safeguards Rule. Dealers were given an additional six months to ensure they are fully compliant with the new rule (June 9, 2023). The deadline extension is welcome, but dealers are encouraged to not wait until the last minute to ensure compliance. Some of the requirements in the amended Rule are complicated, and they take time to implement. Dealers are encouraged to work with their attorneys, service providers and IT professionals to ensure your dealership complies with the new requirements of the Rule by the June 2023 deadline. It's also important to mention the FTC advertising rules. The commission continues to review the thousands of comments received and NADA will continue staying on top of this important issue. For more information, you can visit www.nada.org/safeguardsrule which contains a variety of resources including webinars, guides, workshops, FAQs and more. • Knowledgable and local Account Manager • Over 150 years of energy experience • Tailored advice from market experts • Pricing programs that fit your needs • Outstanding Customer Care Call today for your free, no-obligation natural gas or power quote! Gail Caputi, Program Manager 609.760.2043 | gcaputi@njcar.org Peter Jagodzinski, Account Manager pjagodzinski@spragueenergy.com | 732.440.0038 Customized Natural Gas & Power Solutions Take advantage of your NJ CAR membership benefits Member benefits: Scan for more information 11 njcar.org
To browse the winning issue, please scan QR code. To see the list of winners on The Communicator Awards website, please scan QR code. Congratulations! 2022 COMMUNICATOR AWARD WINNER! NJCAR We are very pleased to announce that the New Jersey Auto Retailer magazine earned the Award of Distinction for an association magazine. The Award of Distinction is presented for projects that exceed industry standards in quality and achievement and represents the best in marketing and communication. https://tinyurl.com/magazine-association https://new-jersey-auto-retailer.thenewslinkgroup.org/ pub-21-2022-issue-1/ This past year marked the 28th year of The Communicator Awards. This distinguished award is dedicated to recognizing excellence, effectiveness, and innovation across all areas of communication; they are the leading international awards program honoring talent in this highly acclaimed field. The Communicator Awards receives almost 5,000 entries from companies, agencies, studios, and boutique shops of all sizes, making it, globally, one of the largest award shows of its kind. They honor work that transcends craft; work that makes a lasting impact and provides an equal chance of winning to all entrants regardless of company or agency size and project budget. The goal is to reward excellence. The Awards provide winners and their clients the recognition they deserve and give communications and creative professionals proof and validation that their work is highly regarded by their peers within the industry.
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.
Congratulat ons NJCAR! 2022 MarCom Awards Winner! Since its inception in 2004, MarCom Awards has evolved into one of the largest, most-respected creative competitions in the world. This year, there were over 6,000 entries from throughout the United States, Canada, and over 43 other countries in the competition. MarCom Awards is an international creative competition that recognizes outstanding achievements by marketing and communication professionals and recognizes the creativity, hard work, and generosity of industry professionals. Being a Gold Winner is a tremendous achievement symbolized by the intricately detailed MarCom statuette. The MarCom graces the trophy cases of some of the top business and communication firms in the world. MarCom’s Gold Award Award is presented to those entries judged to be among the most outstanding entries in the competition. Gold Winners are recognized for their excellence in terms of quality, creativity, and resourcefulness. To view this year’s winners, please scan the QR code. http://enter.marcomawards.com/ winners/#/gold/2022 We are very pleased to announce that the New Jersey Coalition of automotive Retailers was awarded the MarCom Gold for print media. 14 new jersey auto retailer
Running a dealership comes with its share of uncertain terrain. But one thing is certain. Our Dealer Financial Services team is dedicated to being by your side with the resources, solutions and vision to see you through. John Kratsch john.r.kratsch@bofa.com 862.485.4467 business.bofa.com/dealer Making business easier for auto dealers. Especially now. Chris McCawley christopher.mccawley@bofa.com 267.675.0151 “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, 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. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: | Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value | ©2022 Bank of America Corporation. All rights reserved. 4826555 08-22-0145 Running a dealership comes with its share of uncertain terrain. But one thing is certain. Our Dealer Financial Services team is dedicated to being by your side with the resources, solutions and vision to see you through. John Kratsch john.r.kratsch@bofa.com 862.485.4467 business.bofa.com/dealer Making business easier for auto dealers. Especially now. Chris McCawley “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, 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. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: | Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value | ©2022 Bank of America Corporation. All rights reserved. 4826555 08-22-0145 CAD-08-22-0145_New Jersey (NJCAR).indd 3 8/18/22 11:43 AM
PNC DEALER FINANCE GROUP | From floor plan and retail financing, to treasury and wealth management, PNC’s specialized Dealer Finance group delivers a flexible, custom-built solution that supports your sales efforts and growth strategy. With a complete range of personal and business banking and financial services — and the support of our dedicated relationship management team — we’re committed to helping you put your goals on the road to success. Talk to a PNC Relationship Manager today, and put our Dealer Finance group to work for you. PNC and PNC Bank are registered marks of The PNC Financial Services Group, Inc. (“PNC”). Banking and lending products and services and bank deposit products and investment and wealth management and fiduciary services are provided by PNC Bank, National Association, a wholly-owned subsidiary of PNC and Member FDIC. Lending and leasing products and services, including card services, trade finance and merchant services, as well as certain other banking products and services, require credit approval. ©2019 The PNC Financial Services Group, Inc. All rights reserved. CON LEND PDF 1119-082-1391202 SHIFT YOUR PLANS INTO DRIVE, STARTING TODAY. _ RELATIONSHIP MANAGER Charles Dougherty: 570-961-6457 RELATIONSHIP MANAGER Brian Fox: 215-585-7300 RELATIONSHIP MANAGER Dave Keebler: 856-489-2914
What inspired you to run for office and become a legislator? Having served in many different roles in the public policy arena, I learned along the way that I have a lot to offer. Not just my knowledge of the job, culture, and environment, but my temperament and what it means to be a leader. It's someone who brings people together in a positive, goaloriented way. And, I have been doing that my entire life. What is your greatest achievement and greatest disappointment as a legislator? If you could change one thing in Trenton, what would it be? There's so much I want to accomplish while serving in the Legislature, but I'm already proud of how effective I've been as a member of the Minority party. And, when my bills are stolen by the other side, then I really know I'm making a difference. The one thing I'd like to see change in Trenton is the partisan politics — both from within our respective caucuses and throughout our institutions. That's the one thing I'd change with a myriad of ways to attack the problem. For a conversation starter, how about longer terms with limits and more opportunities for the members to convene. Maybe it’s refusing to let anyone leave the room until a compromise can be reached! What are the legislative priorities, issues or areas of concern on which you would like to focus your attention? Fairness. Fairness in our education system, in our infrastructure, our tax code! We the people are responsible for liberty and justice for all and that can mean that there's a safety net in times of adversity, a head-start when needed, or even a second chance. It is up to the individual to determine the rest. 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? Policymaking needs to be intentional, deliberative, and collaborative, never losing focus on the greater good — even in the midst of a crisis. It goes back to what it means to be a leader. Do you have core principles that you will stick by no matter how rough the seas become? What we saw during the pandemic was fly-by-night decisions being made. And no pun intended; but, really, COVID only spreads after 10 pm? When the decisions start to make no sense — like, big box stores remain open, but you cannot go to your local hardware store to get what you need — people lose confidence in their leaders. And as time went on, you saw winners and losers at every turn. The unfairness engendered anger, and rightfully so. It was awful to see neighbors against neighbors, school districts against school districts, business owners against business owners, at a time when we needed to be pulling together. No hearings were held — just press conferences announcing ever-changing and inconsistent, unscientifically-based directives. We were held captive by an imbalance of power. Two years later, no investigative committee has been called to review lessons learned. What troubles me the most is how much our children have suffered. Those critical developmental years, they cannot get them back. What was the make and model of the vehicle in which you learned how to drive? Also, what was the first (new or used) vehicle you owned? Growing up in Brooklyn, I didn't even think to ask my parents for a car. When I went away to college in Buffalo, New York, I took a driver's ed course that quickly got interrupted by the notorious winter weather. I failed the parallel parking portion of the test and didn't go back. I was 21 and attending graduate school in Washington, D.C., when I finally got my license, which I needed since I finally needed a car, which was a black Honda Civic. Assemblywoman AURA DUNN 25th Legislative District 5questions with... 17 njcar.org
What are the legislative priorities, issues or areas of concern on which you would like to focus your attention? While I care about all of my constituents, I am truly focused on working towards helping the developmentally-disabled community. One bill I am most passionate about is S-1897 (Billy Cray Law), which would allow cameras in common areas in group homes. Billy Cray was a young man who passed away while in one of the state’s group homes due to abuse. Coming out of the pandemic, what are the lessons you've learned and how do you think those lessons should guide public policy makers going forward? I've learned that people are willing to let others make unconstitutional decisions without resistance. Government on every level has taken advantage of this, which means there needs to be more of a check and balance of those in charge. What was the make and model of the vehicle in which you learned how to drive? Also, what was the first (new or used) vehicle you owned? I learned to drive on a Ford Galaxy 500 3 speed. The first car I owned was a 1969 Chevy Impala and my first new (and only new) car was a 1984 Ford LTD Brougham. Senator EDWARD DURR 3rd Legislative District What inspired you to run for office and become a legislator? Short answer — I was told I could not have a concealed carry permit. I did not feel we were getting true representation from my elected officials, so I decided to run in hopes to make the needed changes to protect my 2nd Amendment. What is your greatest achievement and greatest disappointment as a legislator? If you could change one thing in Trenton, what would it be? Having only been in office 11 months, I feel my greatest achievement is yet to come. The greatest disappointment for me has been seeing firsthand how divided lawmakers are. More bipartisan efforts need to be made in Trenton and beyond. Assemblywoman Dunn's Bio REPUBLICAN REPRESENTING LEGISLATIVE DISTRICT 25 Municipalities: Bernardsville, Boonton, Boonton Township, Chester Borough, Chester Township, Denville, Dover, Mendham Borough, Mendham Township, Mine Hill, Morris, Morristown, Mount Arlington, Mountain Lakes, Netcong, Randolph, Rockaway Borough, Roxbury, Victory Gardens, Washington (Morris), Wharton. EDUCATION State University of New York at Buffalo Masters from George Washington University (Public Policy) PUBLIC OR PARTY SERVICE U.S. House of Representative staffer U.S. Senate Appropriations Committee Budget Analyst U.S. House of Representative District Director LEGISLATIVE SERVICE General Assembly, 2019–present COMMITTEES Assembly Budget Committee Assembly Commerce and Economic Development Committee Assembly Women and Children Committee Senator Durr's Bio REPUBLICAN REPRESENTING LEGISLATIVE DISTRICT 3 Counties: Monmouth Municipalities: Alloway, Bridgeton, Carneys Point, Clayton, Deerfield, East Greenwich, Elk, Elmer, Elsinboro, Franklin (Gloucester), Glassboro, Greenwich (Gloucester), Logan, Lower Alloways Creek, Mannington, National Park, Newfield, Oldmans, Paulsboro, Penns Grove, Pennsville, Pilesgrove, Pittsgrove, Quinton, Salem, South Harrison, Swedesboro, Upper Deerfield, Upper Pittsgrove, West Deptford, Woodbury Heights, Woodstown, Woolwich LEGISLATIVE SERVICE State Senate, 2022–present COMMITTEES Environment and Energy Committee Health, Human Services and Senior Citizens Committee 18 new jersey auto retailer
The information contained herein is offered as insurance Industry guidance and provided as an overview of current market risks and available coverages and is intended for discussion purposes only. This publication is not intended to offer legal advice or client-specific risk management advice. Any description of insurance coverages is not meant to interpret specific coverages that your company may already have in place or that may be generally available. General insurance descriptions contained herein do not include complete Insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis. Insurance brokerage and related services to be provided by Arthur J. Gallagher Risk Management Services, Inc. (License No. 0D69293) and/ or its affiliate Arthur J. Gallagher & Co. Insurance Brokers of California, Inc. (License No. 0726293). © 2022 Arthur J. Gallagher & Co. | GGB41888 In association with ajg.com The Gallagher Way. Since 1927. NJ CAR in partnership with Gallagher and AmTrust, offers the industry’s most comprehensive workers’ compensation program custom tailored to New Jersey Franchised Auto Dealers. One of the key benefits of the program is a generous dividend return of up to 25% of your policy premium — not a credit applied to future premiums — and is based on individual loss experience rather than group performance. In 2021, over $840,000 in dividends were paid out to program members for the 2019 policy period, the highest annual total to date. Other program benefits include: • Broker-friendly access: Dealerships don’t need to give up their existing relationship. • Industry-specific classification rules: premium reductions between 15%–20%. • Scheduled underwriting credits: up to 25%, based on individual dealers’ risk profile. • Collaborative claims advocacy: aggressive claims investigation and cost containment. • Access to NJ CAR’s Zero Injury Program: a proven industry loss prevention program. NJ CAR Workers’ Compensation Program Lowering costs for franchised auto dealers across New Jersey. For more information, please contact: Pattie Collins Gallagher Area Senior Vice President T: 732.837.9150 | E: Pattie_Collins@ajg.com Charles Russo NJ CAR Risk Management and Safety Specialist T: 609.883.5056, ext 314 | E: crusso@njcar.org Northern New Jersey $1,548,067 Returned South Jersey $490,488 Returned Central New Jersey $716,016 Returned
How Dealerships Can Win With First-Party Data BY BILL PARLAMAN, CHIEF MARKETING OFFICER, STREAM COMPANIES What Is a Third-Party Cookie? Third-party cookies are created and placed on websites by someone other than the website owner (a third party). These cookies collect user data and allow marketers to develop detailed visitor profiles and create personalized advertising and retargeting campaigns. What Is the Cookiepocalypse? The "cookiepocalypse" refers to the depreciation of third-party cookies and how it affects advertising and marketing practices. As a result of new privacy laws, browsers need to change to stay compliant. Safari, Microsoft Edge, and Mozilla Firefox stopped supporting third-party cookies a few years back. Google Chrome, which owns over 64% of the market share, will stop supporting cookies by 2024. Here are three reasons why this is a problem for automotive dealers: • Data Loss: As technology and privacy policies change, more customers will opt out of your systems. Data loss reduces your ability to analyze and target user behaviors in your advertising. • Increased Customer Acquisition Costs: It increases customer acquisition costs due to reduced ad targeting and campaign measurement. Less relevant ads reduce return on investment (ROI) and force dealers to use expensive channels such as app stores, social media sites, and marketing tech platforms. • Decreased Revenue: Acquiring high-value, new customers using outdated third-party targeting and personalization is tied to revenue, and the “cookiepocalypse” puts that at risk. The Case for First-Party Data With the slow death of cookies, automotive dealers will need to increase their reliance on first-party data. First-party data is information your dealership collects about customers from online and offline sources, such as your company's website, app, CRM, social media, or surveys. You may have heard about the demise of third-party cookies, AKA "The Cookiepocalypse," on the news, in marketing blogs, or publications, but what does it mean for automotive dealers? First-party data shows a clearer picture of the consumer. However, while essential to own and activate, this data is not always handed to brands by the consumer. In most cases, dealers only have one or two sources of older first-party data: DMS and CRM data. The problem with this data is that it looks backward. What about the present and unknown predictive future in-market data? With legislation against the "sale of data," purchasing traditional audience data has already become legally messy and will no longer be possible. The Benefits of First-Party Data The beauty of first-party data is it enables dealerships to market, optimize and measure your advertising dollars. Here are just a few of the benefits of leveraging first-party data: • Lowering dependency on third-parties • Increased advertising accuracy • Owning your data and controlling it as a business asset • Increased return on ad spend (ROSA) with better targeting • Optimizing and measuring your ad campaigns • Additional insights and analytics of your website visitors and in-market retargetable audiences The Data Famine The challenge is that the world still lives in a desert of firstparty data. As you just learned, the only first-party data you own is in your DMS from CRM, and you have to ask yourself, "How accurate is this data, and do I have enough?" In reality, dealerships don't have enough first-party data to make most investments worthwhile. There is a pronounced move towards first-party data as cookiebased audiences become less accessible. Retargeting won't be as meaningful as the audiences on Facebook and Google get smaller and smaller. They will also become more expensive to reach since there will be fewer opportunities due to the deprecation of thirdparty cookies. 20 new jersey auto retailer
Now is the time to get ahead of the data famine and start building ways to collect more first-party data to leverage the new solutions introduced into the market. How Can You Leverage First-Party Data? • Create Customized Audiences: Collecting first-party data allows you to reach prospects who visit your digital properties, purchase often, and spend the most on your products and services. • Monetize Audiences: Leveraging first-party data allows you to activate immersive household marketing across various channels such as display, direct mail, CTV, Social, Audio, and Video. • Measure Your Marketing Performance: Marketing to first-party data sets allows you to measure the return on ad spend. Measuring marketing performance is essential to understanding which marketing campaigns are working and which are not. • Future-Proof Your Dealership: Collecting first-party data helps open new revenue streams and protects you from outside forces such as pandemics and changing laws and regulations. No one can take your first-party data away from you. It can't be sold and can't be de-platformed. So, Where Do You Start? If you're starting to feel a little overwhelmed about how to get started with first-party data, here are seven questions you can ask a potential data partner: 1. What is the impact of losing third-party cookies on their technology? Do they have a plan? 2. What kind of data am I getting? Not all data is created equal. Make sure to see examples of the data and know where they are getting it. Stay away from IP addresses and mobile IDs. 3. Is your data legally compliant? Ensure your vendors are CCPA-compliant, have a consumer opt-out plan, and the information is checked, validated, and audited. 4. Is it clean data? Ask vendors you are vetting about their data hygiene program. For example, do they run addresses through the NCOA? Are they checking with the USPS to ensure the household is a valid, occupied residence? 5. How will the data be sent? What's their process for accessing your data? Have your data vendor walk you through the process. Ensure the information is accessible to your marketing team while remaining gated and secure. 6. How much of a heavy lift will it be for my team? Many data platforms require a heavy lift on the end-user’s part. You don't want this process to be too much work for your teams. 7. Can you help me activate the data? Ask your partner what they can do with first-party data to support your dealership's growth. Collecting your first-party data is only one part. Activating your data is crucial. The bottom line is third-party cookies and ad identifiers are going away. Dealers, their agencies, and vendors must respond tactically and strategically. Addressable advertising is the default in the digital world and relies on identifying users to serve the right message at the right time. With the demise of third-party data, utilizing first-party data from consumers is critical for success in acquiring and retaining customers for your dealership. Bill Parlaman is CMO of Stream Companies and can be reached at 610.644.8637 x259 or via email at bill@streamcompanies.com. WITH THE DEMISE OF THIRD-PARTY DATA, UTILIZING FIRSTPARTY DATA FROM CONSUMERS IS CRITICAL FOR SUCCESS IN ACQUIRING AND RETAINING CUSTOMERS FOR YOUR DEALERSHIP. 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 21 njcar.org
INFLATION REDUCTION ACT What Does It Mean for New Jersey’s Auto Dealers? BY MAGDALENA PADILLA, ESQ., NJ CAR President Biden signed the Inflation Reduction Act on August 16, 2022, and the implications for the automobile franchise dealers are still being debated and worked out more than seven months later, while continuing to prepare for both the near and long-term implementation of elements contained in the legislation. The President has talked about the benefits of the Act for the EV manufacturing industry and future EV consumers, touting its $374 billion in energy and climate provisions. Below are a few important points for New Jersey dealers: • The Act saves some EV consumers up to $7,500 for new EVs and $4,000 for used EVs. The tax credit knocks out higher-priced and luxury EVs with a cap of $80,000 for vans, SUVs, and pickups, and a cap of $55,000 for passenger cars. It also sets a maximum adjusted gross income (AGI) for those who can claim the credit ($150,000 for single filers, $225,000 for heads of households, and $300,000 for joint filers). • It changes the eligibility requirements for the federal EV tax credit. First, while the federal tax credit will apply to applicable EVs sold or ordered with a binding contract (irrespective of its delivery date) executed before August 16th, 2022, there was some confusion about what a “binding contract” is for purposes of the Act. After recognizing the confusion created regarding the definition of a binding contract, the Internal Revenue Service responded with guidance. • The Act changed the list of vehicles that were eligible for the federal EV tax credit. Following pushback from OEMs, dealers and consumers, the list of eligible vehicles was expanded and the implementation of the provision regarding the origin of battery minerals and parts was delayed to allow further discussion. The Treasury Department recently announced it will not finish establishing the rules that govern where electric vehicle (EV) battery minerals and parts have to be sourced until sometime in 2023. As of January 1, 2023, an OEM’s calculation of the minimum credit for a particular VIN will take into account: ° The vehicle’s battery capacity (now minimum 7 kWh) ° The vehicle’s MSRP (< $80,000 for trucks and < $55,000 for light duty cars) ° The vehicle’s gross vehicle weight (< 14,000 pounds) ° The vehicle must be finally assembled in North America • If the vehicle meets the requirements above, the maximum tax credit will revert back to what it was before August 16, 2022 ($2,500 plus $417 per kWh for 5kWh batteries and up, to a maximum of $7,500; a minimum credit of $3,751 for a creditable 7 kWh-equipped vehicle and $7,500 for a minimum 16 kWh-equipped vehicle). • Effective January 1, 2023, the per-OEM cap was eliminated for General Motors, Toyota (and Tesla) vehicles, which will be eligible for the EV tax credit if they meet the requirements. • The Act contains a termination date of December 31, 2032 for all federal EV tax credits.
The Battery Belt and New Jersey: We Are Not in It The Act helps to set the EV supply chain for increased EV battery production growth in the United States and for more American-made EVs that are independent of foreign EV battery production. New Jersey is not a Battery Belt state and does not benefit from the Act’s provisions. That status may change if the Murphy Administration, emboldened by the Act’s provisions, decides to create an economic incentive to encourage EV-related factories or EV battery production investment in the Garden State. The Act’s battery provisions will help those states located in the Battery Belt, where some automotive manufacturers and energy/IT companies have built (or will build) EV-related factories and battery facilities. According to the Center for Automotive Research, currently, the Battery Belt states (with their corresponding industry EV investors) include: • Alabama (Hyundai; Mercedes-Benz) • Arizona (Lucid Motors) • California (Tesla) • Georgia (Rivian Automotive; Hyundai) • Illinois (Lion Electric; Rivian Automotive) • Indiana (Stellantis; General Motors) • Kansas (Panasonic) • Kentucky (Ford) • Michigan (General Motors) • Mississippi (Nissan) • Missouri (Ford) • Nevada (Tesla and Panasonic, joint venture) • Ohio (Ford; Foxconn) • Texas (Tesla) • Tennessee (Ford; General Motors and LG Energy Solutions, joint venture; Volkswagen) Magdalena Padilla is NJ CAR’s Director of Government Affairs. She can be reached at mpadilla@njcar.org or 609.883.5056, x345. THE ACT HELPS TO SET THE EV SUPPLY CHAIN FOR INCREASED EV BATTERY PRODUCTION GROWTH IN THE UNITED STATES AND FOR MORE AMERICAN-MADE EVS THAT ARE INDEPENDENT OF FOREIGN EV BATTERY PRODUCTION. 23 njcar.org
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FTC Trade Regulation Rule Would COMPLICATE the Vehicle Purchase Process BY GREYSON HANNIGAN, ESQ. On June 23, 2022, the Federal Trade Commission (FTC) introduced the Motor Vehicle Dealers Trade Regulation Rule that would, if approved, dramatically transform and complicate the process for consumers to purchase, trade in, and finance new and used cars and trucks and optional products like extended service contracts and GAP Waivers. If passed, the proposed rule would also massively expand the liability exposure for dealers related to advertising and vehicle sales and expose dealers to large monetary fines from the FTC that are not available today. The FTC is the primary federal regulatory agency that oversees automotive retail. As proposed, the FTC Dealers Trade Rule would: 1. Prohibit misrepresentations involving several activities related to the advertising and sales process; 2. Require dealerships to calculate the loan-to-value ratio before offering GAP agreements to customers; 3. Prohibit sales of add-on products or service that confers no benefit to the consumer; 4. Require dealers to keep records for 24 months to include, among many other items, all advertisements, sales scripts, training materials, and marketing materials regarding the price, financing, or lease of a motor vehicle; all “Addon” lists and all documents describing such products and services; calculations of loan-to-value ratios in contracts including GAP Agreements; and copies of all written consumer complaints related to a wide variety of topics; and 5. Require dealerships to disclose the following: a. A vehicle’s “offering price” (the full cash price a dealer will sell or finance a motor vehicle to a consumer excluding only required government charges) in any communication with a consumer or advertisement that references a specific vehicle or any monetary amount or financing term for a vehicle; b. An “Add-on list” on each website, online service, or mobile application. The list must include an itemized list of all of the dealer’s optional “Add-on Products or Services” and the price of each item (or, if the price varies, a price range the typical consumer will pay for the item); c. That the purchase of “Add-ons” is not mandatory; d. The total amount a consumer will pay to purchase or lease a vehicle when the dealer makes any representation about monthly payment amounts; and e. Whenever comparing payment options and discussing a lower monthly payment, that a lower monthly payment will increase the total amount the customer will pay to purchase or lease a vehicle (if such statement is true). NJ CAR joined with NADA and scores of other dealer advocacy groups in mounting a comprehensive and detailed response to the proposal, which will defend the highly competitive and pro-consumer benefits of the optional, dealer-assisted financing model, and show that, in fact, the FTC’s proposal is likely to harm consumers. The proposed rule will lengthen the car buying process for consumers by adding unnecessary forms and complicating the process by adding layers of compliance to existing regulations in New Jersey. The New Jersey Consumer Fraud Act (CFA), N.J.S.A. 56:8-1 et seq., is one of the strongest and most effective consumer protection laws in the United States. Its resulting regulations promulgated by the Division of Consumer Affairs, N.J.A.C. 13:45A-1.1 et seq., contain many of the prohibitions that the proposed rule is aimed at combating and includes: 1. N.J.A.C. 13:45A-26A.4. Bait and Switch 2. N.J.A.C. 13:45A-26A.5. Advertisements; mandatory disclosure requirements in all advertisements for sale 3. N.J.A.C. 13:45A-26A.6. Advertisements: mandatory disclosure in advertisements for lease of a new or used motor vehicle 4. N.J.A.C. 13:45A-26A.7. Unlawful advertising practices 5. N.J.A.C. 13:45A-26A.8. Certain credit and installment sale advertisements 6. N.J.A.C. 13:45A-26A.9. On-site disclosures 7. N.J.A.C. 13:45A-26A.10. Record of transactions On the leasing side, the New Jersey Consumer Protection Leasing Act (CPLA), N.J.S.A. 56:12-60 et seq., governs all motor vehicle leases which have a duration of more than 120 days. The 25 njcar.org
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