Issue 2 | 2023 New Congressional and Legislative Districts What Dealers Need to Know About the
THE FIRST DMS WITH A $0 CORE FEE. EVERYTHING YOU NEED, NOTHING YOU DON’T. INTRODUCING CLOUD-NATIVE FLEXIBILITY SECURITY & CUSTOMIZATION AN AVERAGE OF $6,500 IN SAVINGS PER MONTH DominionDMS.com
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 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 6 President’s Message The California Advanced Clean Car II (ACCII) Rule Is Bad for New Jersey BY JAMES B. APPLETON 10 Chairman’s Message CAR-PAC Is Looking To Raise $500,000 for Critical 2023 Elections BY JAMES CURLEY, III 12 NADA Director’s Message NADA Active on Multiple Legislative, Regulatory and Educational Fronts BY RICK DESILVA, JR. 16 It’s an Election Year: Who’s In and Who’s Out? BY MAGDALENA PADILLA 20 What Dealers Need To Know About the New Congressional and Legislative Districts BY JOHN SANTULLI 24 The Effect of Credit Card Surcharges on Sale Prices in New Jersey BY GREYSON HANNIGAN 26 Best Practices for Deleting Personal Data From Vehicles BY JOHANNA STUBENHOFER 30 Analyzing the Risk of Potential Threats to Auto Retailing BY STEVE GREENFIELD 32 Phase Three of the New Jersey Electric Vehicle Incentive Program Is Paused … AGAIN BY MAGDALENA PADILLA 34 NJ CAR NextGen Committee Is Always Looking for New Blood BY BREANNA DATELLO 4 new jersey auto retailer
Can Your Family Wealth Management Plan Pass the 360° Stress Test? Kevin Ellman CFP, CEO and Paul D. Miller are proud to announce the publication of their latest book. Wealth Preservation Solutions, LLC. 45 Eisenhower Drive, Suite 550 Paramus, New Jersey 07652 wealthpreservationsolutions.com Contact Kevin Ellman CFP Tel: (201) 632-2022 Email: kellman@wpsllc.net A Personal Family Office Critical to the success of a Wealth Preservation and Succession Plan, is having a 360° Family Wealth Manager oversee and coordinate the diverse cast of professionals responsible for implementing a plan’s complex elements and techniques to achieve the desired results. Can your Family Wealth Management plan pass the 360° Stress Test? Call (201) 632-2022 to receive a complimentary copy of our new book. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Wealth Preservation Solutions, LLC is not affiliated with Kestra IS or Kestra AS. Investor Disclosures
PRESIDENT’S MESSAGE The California Advanced Clean Car II (ACCII) Rule Is Bad for New Jersey JAMES B. APPLETON We’ve said it a million times; New Jersey’s neighborhood new car and truck dealerships are ALL-IN when it comes to selling and servicing EVs, and they want to sell what consumers want to buy. Both the Biden and Murphy Administrations have announced very aggressive EV goals over the next decade. It’s not a question of IF New Jersey will transition to a zero-emission transportation future. It’s only a question of WHEN. That is the heart of the debate among EV stakeholders on the best path forward for New Jersey to reach our shared goal of a 100% EV future. The New Jersey Department of Environmental Protection wants to adopt the California Advanced Clean Car II (ACCII) Rule as the primary mechanism for us to reach our EV goals. NJ CAR believes that blindly adopting ACCII will create unintended consequences that will hurt New Jersey consumers and make it MORE difficult to reach our EV goals, NOT easier. Adopting ACCII will hurt consumers by negatively impacting two of the most important elements of a vehicle purchase — affordability and choice. It’s simple math, consumers will be forced to hold on to their older, less environmentally-friendly vehicles when they can’t afford the mandated vehicles or those vehicle choices don’t meet their specific needs. ACCII could result in fewer vehicles being allocated to the State, as well as a limitation on base model vehicles in order for manufacturers to maximize profit on the vehicles they will be allowed to deliver for sale to ACCII states. New Jersey consumers lose because tighter inventories result in higher prices and/or less availability in the marketplace of base model vehicles. ACCII would also severely limit consumer choice on ALL types of vehicles, as not all automakers will produce all popular makes and models as ZEVs. Consumers’ shopping choices are further limited by ACCII’s lack of support for ALL hybrid vehicle options. Realistically, 100% EV sales in New Jersey will only occur when one of two things happen — all automakers build ONLY EVs, which is not the case so far since automakers want to continue to offer what consumers want to buy OR all consumers want to buy 6 new jersey auto retailer
ONLY EVs, which has not happened anywhere. Consumers want options, and they will decide when we reach 100% EVs, not the government. New Jersey needs to be realistic and plan a viable path to reach its EV goals. ACCII requires EV sales to reach 35% by 2026, increasing at a substantial rate until reaching 100% in 2035. That’s a 26% increase in EV sales over the next three years when it took nearly a decade for New Jersey to reach 9% EV sales. New Jersey can’t arbitrarily pick an EV sales percentage and assign it a date. It’s not a choice between ACCII and nothing. It’s a choice between an unrealistic ACCII and the Biden Administration’s significantly more stringent EPA Clean Car Rule that was recently proposed. The EPA rule gives New Jersey a viable alternative path to compliance that doesn’t harm consumers. Specific EV sales percentages aren’t mandated by the EPA’s proposed rule, but it does force automakers to produce more EVs. By comparison, ACCII locks New Jersey into a rule built for the California EV market and creates a wide variety of unintended headaches and obstacles for consumers, dealers and manufacturers. NJ CAR has encouraged the New Jersey Department of Environmental Protection (NJDEP) to review ALL options and conduct a cost/benefit analysis on each option before making a decision that will hurt New Jersey consumers and the $40 billion auto retailing industry that is a key driver of the Garden State economy. NEW JERSEY NEEDS TO BE REALISTIC AND PLAN A VIABLE PATH TO REACH ITS EV GOALS. 7 new jersey auto retailer
As a recognized leader in the industry, Citrin Cooperman’s Automotive Dealership Practice continually provides local-level attention and top-notch client service through a robust foundation of highly specialized expertise and a team of dedicated professionals. Start your journey towards excellence by contacting us today. citrincooperman.com "Citrin Cooperman" is the brand name under which Citrin Cooperman Advisors LLC and Citrin Cooperman & Company, LLP, independently owned entities, provide professional services in an alternative practice structure in accordance with applicable professional standards. ELLEN KERA Partner ekera@citrincooperman.com WILL FERNANDEZ Partner wfernandez@citrincooperman.com 290 W. Mt. Pleasant Avenue, Suite 3310, Livingston, NJ 07039 709 Westchester Avenue, White Plains, NY 10604
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
CHAIRMAN’S MESSAGE CAR-PAC Is Looking To Raise $500,000 for Critical 2023 Elections JAMES CURLEY, III CAR-PAC, the Coalition’s political action committee, is one of many critical tools NJ CAR has at its disposal to ensure the franchised new car and truck retailer industry’s voice is heard in Trenton on a wide variety of important public policy issues. It is critical that EVERY dealership contributes to CAR-PAC to ensure we have the necessary financial resources to support candidates (on both sides of the aisle) who support the franchised retail automotive industry in New Jersey. With all 120 members of the New Jersey State Senate and General Assembly up for re-election in November 2023, auto retailers have a huge stake in the outcome of this election. Unlike most, the Garden State election this November may generate some additional drama, with some competitive races, thanks to the newly drawn legislative districts. CAR-PAC advocates on behalf of New Jersey’s 500 neighborhood new car and truck dealerships and educates legislators on the industry’s many contributions to the State’s economy and the hundreds of communities in which we operate. NJ CAR currently invoices dealers $1,000 per year to keep CAR-PAC funded properly, but it is important to know that the New Jersey Election Law Enforcement Commission (ELEC) rules allow contributions to a political action committee of up to $8,200 per business or jointly-controlled business. That means a dealer that owns one store can contribute up to $8,200 per two-year election cycle, while a dealer with 15 stores can contribute a TOTAL of $8,200 across all stores (about $546 per store). And, don’t forget, those contributions can be made with corporate funds. CAR-PAC has set a goal to raise $500,000 for this year’s elections, a total that we can easily reach if every dealer considers making a supplemental contribution of $1,000 or more to the Coalition’s political action committee. Please contribute as much as you can comfortably afford. It is money well spent. NJ CAR appreciates the support of the nearly 300 dealers who consistently contribute to CAR-PAC and hope they will continue to honor their obligations going forward. The Coalition hopes those dealers who have not contributed will reconsider. If every dealer does their part, CAR-PAC will be in excellent shape to participate fully in this year’s legislative races. Checks should be made payable to CAR-PAC and forwarded to NJ CAR Headquarters (856 River Road, West Trenton, NJ 08628). 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, x330, or via email at jappleton@njcar.org, and he will have staff look into what you can still legally donate to CAR-PAC. There is strength in numbers. When our $40 billion industry comes together with one voice, we have the ability to promote policies that benefit our customers, our employees and our businesses and fight hard against proposals that will harm consumers or our industry. Please join me in supporting CAR-PAC with a generous contribution so they can continue supporting us. 10 new jersey auto retailer
CALL US NOW 877.875.6906 30 Two Bridges Rd. Suite 240, Fair eld NJ 07004 • www.vanguarddealerservices.com FOLLOW US ON OUR SOCIAL NETWORKS OUR DEALERS BENEFIT FROM: Free F&I Specialists/ Emergency Fill-in Better Managed Sales and F&I Departments Low Employee Turnover Compliance Experts Continuous In-house Coaching Higher CSI Scores and Customer Retention Rates EV Solutions Specialists Ongoing Compliance Staffing Support Free, Confidential, Honest Sales Strategy and Proficiency Analysis. SCAN ME F&I PRODUCT TRAINING SALES TRAINING
NADA DIRECTOR’S MESSAGE NADA Active on Multiple Legislative, Regulatory and Educational Fronts RICK DeSILVA, JR. 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. NADA Joins With Multiple Groups to Urge Congressional Action on Catalytic Converter Thefts The National Automobile Dealers Association recently joined with 20 other industry partners and sent a letter to the leaders of the U.S. House and Senate Commerce Committees in support of the “Preventing Auto Recycling Theft (PART) Act” (H.R. 621/S. 154). This bipartisan bill was introduced to combat the dramatic rise of catalytic converter thefts nationwide, including right here in New Jersey. Senators Amy Klobuchar (D-Minn.), Mike Braun (R-Ind.), Ron Wyden (D-Ore.) and JD Vance (R-Ohio) introduced the Senate bill, and Representatives Jim Baird (R-Ind.), Betty McCollum (D-Minn.), Angie Craig (D-Minn.), Randy Feenstra (R-Iowa) and Michael Guest (R-Miss.) reintroduced the companion bill in the House. According to the National Insurance Crime Bureau, catalytic converter thefts increased by 1,215% between 2019 and 2022. Due to valuable precious metals used in the devices, stolen catalytic converters can garner anywhere from $20 to $350 on the black market. In contrast, the replacement cost to vehicle owners can be as high as $2,500. These thefts are currently difficult to combat as catalytic converters are not easily traceable and can be stolen from unattended vehicles in mass quantities, including at dealership lots. The PART Act would give local law enforcement additional resources to prosecute thieves by requiring new vehicles to have traceable numbers stamped on the catalytic converter during assembly. The bill also increases record-keeping requirements for purchasers and establishes a federal criminal penalty for the theft, sale, trafficking or known purchase of stolen catalytic converters with a penalty of up to five years in jail. NADA and the other organizations who signed the letter have urged Congress to pass this legislation to begin combating catalytic converter thefts. You can read the full letter here: www.nada.org/media/8004/download?inline. NADA Market Beat: May 2023 is the 10th Consecutive Month of YOY Sales Increases New light-vehicle sales in May 2023 were up 19.6% compared with May 2022. The 15.1 million Seasonally Adjusted Annual Rate (SAAR) for May 2023 represents the 10th straight month of year-over-year sales increases. While the May 2023 SAAR was down compared with April, total sales reached 1.36 million units. As vehicle availability has improved, manufacturer incentives have increased. According to J.D. Power, average incentive spending per unit reached $1,788 in May 2023, an increase of continued on page 14 12 new jersey auto retailer
88.1% compared with May 2022. Incentive spending varies greatly by OEM and vehicle segment. As expected, OEMs and segments with the most in-demand vehicles still have very low incentive spending, while those OEMs and segments where inventory levels are higher have more available incentives. According to J.D. Power, average transaction prices in May 2023 reached $45,838, an increase of 0.7% year-over-year. OEMs have increased the builds of more affordable vehicles, but many of these units are flowing to fleet customers. Looking ahead, NADA predicts year-over-year sales increases in the coming months as new-vehicle availability continues to improve, with a forecast for new light-vehicle sales in 2023 of 14.6 million units. Review the entire NADA Market Beat report here: www.nada.org/media/8084/download?inline. FBI Cyber Division Issues Updated Ransomware Guide Ransomware is a form of malware designed to encrypt files on an electronic device, rendering them (and the systems that rely upon them) unusable. Malicious actors hijack the systems and demand a ransom in exchange for decryption. Businesses of all kinds and sizes have been victimized in recent years, and dealers are not immune. The FBI Cyber Division, through the Multi-State Information Sharing and Analysis Center (MS-ISAC), which includes the Department of Justice, Cybersecurity and Infrastructure Security Agency, and National Security Agency, has issued a #StopRansomware Guide, which can be found here: www.cisa.gov/stopransomware/ransomware-guide. The guide provides best practices, prevention checklists, and other steps that dealers could consider as part of their efforts to combat ransomware. The guide can also be found at www.ic3.gov and the internet crime complaint center, which contains additional guidance and resources. Dealers and their IT vendors should review this guide and consider applying these practices in dealerships. NADA Show 2024: The Industry Event of the Year Takes Place February 1-4, 2024, in Las Vegas The NADA Show and ATD Show are the largest and most prestigious automotive industry events of the year. They attract tens of thousands of attendees and feature prominent keynote speakers, educational workshops, dealer/manufacturer franchise meetings and more. Each Show also features hundreds of exhibitors offering cutting-edge products and services. Learn more about NADA Show 2024 here: www.nada.org/nada-show. continued from page 12 THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION (NADA) ACTIVELY WORKS ON BEHALF OF DEALERS ACROSS THE COUNTRY. 14 new jersey auto retailer
We Will Find For Your Dealership! NJ CAR SERVICES, INC. works for you! NJ CAR Services has provided fair, competitive and consistent pricing on business forms and advertising items to members of the New Jersey Coalition of Automotive Retailer since 1975. NJ CAR Services has saved members tens of thousands through increased competition and less expensive products. One call does it all. 609.883.5056 ext. 402 njcarservices.com
It’s an Election Year: Who’s In and Who’s Out? BY MAGDALENA PADILLA, DIRECTOR OF GOVERNMENT AFFAIRS, NJ CAR The statewide election in November began with this year’s primary elections on June 6. On Primary Election Day, New Jersey voters participated in the first primary elections for the state’s 80 Assembly and 40 Senate seats under the state’s new legislative district map. A new legislative district map is created every 10 years to better align New Jersey’s 40 legislative districts with the data revealed during the federal census. Adopted by the New Jersey Apportionment Commission on February 18, 2022, the new map replaces the “old” map for the 2023 elections and remains in effect through 2030. Incumbent legislators, however, continue representing the districts into which they were elected in 2022. The survivors of the Primary will be the candidates on the ballots for Election Day on November 7. The winners of that election will, on January 9, 2024, be sworn in as members of the 221st New Jersey Legislature. Democrats maintained their majority in the 2022 election. They enjoyed a 46/34 lead in the Assembly and a 25/15 lead in the Senate. The criteria for membership in the 120-member New Jersey Legislature are established in Article IV (Legislative) of the New Jersey State Constitution of 1947. It specifies that the 80 Assembly members must be at least 21 years old, must have resided in their district for one year and the state for two years, and must live in the represented district. The 40 Senators must be at least 30 years old, must have lived in their district for two years and the state for four years. The new map created a slight wrinkle for some incumbents, though they never changed residences. That is, some towns were reshuffled into adjoining districts. As a result, legislators continue representing their constituents in the “old” districts while they campaign in the newly configured districts. For some legislators, the shuffle created unexpected opportunities. For example, Democrat incumbent Asm. Raj Mukherji, who currently represents District 33, will be campaigning for the Senate seat in District 32, following that Senator’s retirement. Arguably the most intriguing residency wrinkle created by the new map affected two legislative giants whose hometowns were inserted into one district. Democrat Senator Nia Gill (a Montclair resident serving in the Legislature since 1994 for District 34 constituents) and Democrat Senator Richard J. Codey (a Roseland resident serving in the Legislature since 1974 for District 27 constituents and as Acting Governor in various years) competed against each other in the June 6th Primary Elections. The victor was Sen. Codey, who will be the Democrat Senate candidate in November for the newly configured District 27. November’s elections slate will also be affected by voluntary departures. This year, 26 incumbent legislators decided to retire from their current seats in the Legislature. Some were silent on why they were exiting. Others revealed their reasons 16 new jersey auto retailer
for departing, including seeking election to a different seat within the Legislature, seeking a different political office, or seeking a gubernatorial nomination. The list of incumbents retiring from legislative service are: • Democrat Sen. Fred Madden (District 4) • Democrat Asm. Paul Moriarty (District 4) to run for Senate of District 4 • Democrat Asw. Gabriela Mosquera (District 4) • Republican Sen. Jean Stanfield (District 8) • Republican Sen. Christopher Connors (District 9) • Republican Asw. DiAnne Gove (District 9) • Democrat Asm. Dan Benson (District 14) to run for County Executive of Mercer • Democrat Sen. Sam Thompson (District 12) • Republican Asm. John Catalano (District 10) to run for Mayor of Brick • Democrat Asw. Sadaf Jaffer (District 16) • Republican Sen. Steve Oroho (District 24) • Republican Asm. Hal Wirths (District 24) • Republican Asm. Parker Space (District 24) to run for Senate of District 24 • Democrat Asw. Mila Jasey (District 27) • Democrat Asm. Ralph Caputo (District 28) to be nominated for a director position • Sen. Sandra Cunningham (District 31) • Democrat Asw. Angela McKnight (District 31) to run for Senate of District 31 • Democrat Sen. Nicholas Sacco (District 32) to run for re-election as Mayor of North Bergen • Democrat Asw. Angelica Jimenez (District 32) to run for Commissioner in West New York • Democrat Asm. Pedro Mejia (District 32) • Democrat Asw. Annette Chaparro (District 33) • Asm. Raj Mukherji (District 33) to run for Senate of District 32 • Asw. Britnee Timberlake (District 34) to run for Senate of District 34 • Republican Asw. DeAnne Fuccio (District 39) • Republican Asm. Kevin Rooney (District 40) • Democrat Asm. Tom Giblin (District 34) For dealers, who are no strangers to adjusting to changing environments, these changes in the New Jersey Legislature will herald a new opportunity to create new bonds while also strengthening the industry’s established relationships in Trenton. Magdalena Padilla is NJ CAR’s Director of Government Affairs and can be contacted at mpadilla@njcar.org. We navigate you forward. The auto industry faces massive disruptions in the short and long term. Innovators and factories alike threaten the business model. In times like these, you need seasoned practitioners to guide you through the detours and roadblocks. ArentFox Schiff is here to navigate you forward – through this crisis and the next. Smart In Your World afslaw.com • 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 Member benefits: 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 membership benefits 17 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
We’re more than a financial partner. We’re an invested one. True relationships matter. We don’t take this lightly. The best are built on a deep understanding of your short- and long-term goals and always backed by thoughtful, strategic advice in support of your vision. With full-service financial solutions and a deep bench of industry expertise, we’ll build a team around your organization to focus on your success. So, let’s drive further—together. To learn more, contact Jason W. Smith, head of Dealer Commercial Services, 407-237-4011 or Jason.w.smith@truist.com. Truist.com/DealerServices © 2022 Truist Financial Corporation, Truist, Truist purple and the Truist logo are service marks of Truist Financial Corporation. All rights reserved. Truist Securities is the trade name for the corporate and investment banking services of Truist Financial Corporation and its subsidiaries. Securities and strategic advisory services are provided by Truist Securities, Inc., member FINRA and SIPC. | Lending, financial risk management, and treasury and payment solutions are offered by Truist Bank. | Deposit products are offered by Truist Bank, Member FDIC.
Continued on page 22 What Dealers Need To Know About the New Congressional and Legislative Districts BY JOHN SANTULLI Every decade, the U.S. government conducts a national census to identify changes in population to guide the distribution of funds and other aid to states. The new census is then used by states to guide them with their legislative redistricting and congressional reapportionment process, where both political parties redraw the lines of the new Legislative Districts (LDs) and Congressional Districts (CDs) in their states. On December 31, 2020, the new decade’s census results were finalized and became the resource for New Jersey’s new maps for LDs and CDs. The “new” 12 CDs were in effect for the November 8, 2022, elections for Congress. As you can see from the list below, with the exception of CD 7 flipping from Democrat to Republican, the CD political composition did not change and most incumbents regained their seats: * CD 1 Donald Norcross (D) * CD 2 Jeff Van Drew (R) * CD 3 Andy Kim (D) * CD 4 Chris Smith (R) * CD 5 Josh Gottehimer (D) * CD 6 Frank Pallone (D) CD 7 Thomas Kean (R) +CD 8 Robert Menendez, Jr. (D) * CD 9 Bill Pascrell, Jr. (D) * CD 10 Donald M. Payne (D) * CD 11 Mikie Sherrill (D) * CD 12 Bonnie Watson Coleman (D) *prior incumbent +succeeded prior Democrat 20 new jersey auto retailer
ON DECEMBER 31, 2020, THE NEW DECADE’S CENSUS RESULTS WERE FINALIZED AND BECAME THE RESOURCE FOR NEW JERSEY’S NEW MAPS FOR LEGISLATIVE AND CONGRESSIONAL DISTRICTS. 21 new jersey auto retailer
New Jersey Legislative Districts 2022-2030 The “new” LD map was not in effect for the 2022 elections for the state’s 80 Assembly and 40 Senate seats. That election was based on the “old” map which is what the incumbents are using to represent their constituents today. The November 2023 elections will be based on the new configuration of the state’s 40 LDs. This brief update summarizes the major changes between LDs and how those changes will impact franchised automotive retailers in New Jersey. The LD map, adopted on February 18, 2022, shows that out of the 40 LDs in New Jersey, 35 will change their borders under the new map. As a result, out of the 500 dealerships in the state, approximately 20% (or 100 dealerships) will change districts. For instance, under the new map, there is a wave of change in Warren County, which constituted most of District 23. Under the new map, District 23 expanded into adjoining LDs eastward, southward and northward. LD 24 (Sussex County) has expanded under the new map and combines with a growing LD 25 to virtually slice LD 26 further eastward. As you can tell, this can be hard to follow, and the practical implications may not be fully clear yet as to legislative representation. The Primary Elections in June 2023, and the subsequent General Election in November, will provide us with the hard results of the changes in LDs. Nonetheless, the district expansions and contractions are important now. From a practical perspective, some legislative candidates may reach out to dealerships that are not in their current districts but will be in their new districts. The incumbents will need to campaign under the new map and continue representing their constituents under the old map. This means that some dealerships may be visited by multiple legislators soliciting their votes. The following maps show the changes between the old and new Legislative districts with a key to show who is the current representative for that district. To see the new 2022–2030 legislative districts map in more detail, scan the QR code. https://www.apportionmentcommission.org/ adoption2022map.asp Continued from page 20 22 new jersey auto retailer
New Jersey Congressional Districts 2022-2031 To see the new 2022–2031 congressional districts map in more detail, scan the QR code. District Representative Party 1 Donald Norcross (D) 2 Jeff Van Drew (R) 3 Andy Kim (D) 4 Chris Smith (R) 5 Josh Gottheimer (D) 6 Frank Pallone Jr. (D) 7 Tom Kean, Jr. (R) 8 Rob Menendez (D) 9 Bill Pascrell Jr. (D) 10 Donald Payne Jr. (D) 11 Mikie Sherrill (D) 12 Bonnie Watson Coleman (D) https://www.njredistrictingcommission.org/ adoption2022map.asp 2 1 3 4 12 6 10 8 7 11 9 5 118th Congress (2023-2024) 23 new jersey auto retailer
The Effect of Credit Card Surcharges on Sale Prices in New Jersey Credit Card surcharges have been allowed in New Jersey since 2013. Prior to 2013, businesses were not permitted to charge a fee for acceptance of a credit card. This prohibition spurred businesses to bring a class action lawsuit against Visa and Mastercard. The settlement of the lawsuit allowed businesses to pass the cost of fees they were charged by credit card companies and payment processors onto their customers. As part of the settlement, certain rules must be followed before a surcharge can be charged to a customer, namely: 1. Display a sign at the point of sale, alerting customers about the credit card surcharge. 2. Tell the customer about the surcharge before they make the purchase. 3. The surcharge must be a separate line item on any receipt, both in-person and online. 4. Credit card companies must be notified 30 days in advance that a business is implementing a policy of charging a surcharge. 5. The amount of the surcharge must not be more than 4% or the actual cost to the business for processing the payment, whichever is smaller. (Effective April 15, 2023, VISA has limited the maximum surcharge to 3%.) Credit Card surcharges are not illegal under the New Jersey Consumer Fraud Act if they are disclosed to the customer. In 2019 (in response to the proliferation of credit card surcharges), New Jersey enacted legislation to prohibit retail establishments from requiring a “buyer to pay using credit or to prohibit cash as payment in order to purchase the goods or services.” A person selling or offering for sale goods or services at retail must accept legal tender when offered by the buyer as payment unless there is an applicable exemption under the law. See P.L. 2019, c.50, approved March 18, 2019 (N.J.S.A. 56:8-2.33). Violators of the law face a civil penalty of up to $2,500 for a first offense and up to $5,000 for a second offense. The law ramped up its civil penalty structure by making third and fourth violations, an unlawful practice under the New Jersey Consumer Fraud Act (CFA). See N.J.S.A. 56:8-2.33(b). With a third and fourth violation of the law deemed an unlawful practice under the CFA, violators face significantly higher civil penalties. A first offense carries monetary penalties of up to $10,000 and up to $20,000 for a subsequent offense. Additionally, there would be exposure to cease and desist orders by the Attorney General, the assessment of punitive damages, and the awarding of treble damages. The Office of Consumer Protection of the Division of Consumer Affairs (the Division) has deemed it a violation of N.J.S.A. 56:8-2.33 for a person to prohibit a buyer from using cash, refusing cash payment due to a buyer’s failure to use exact change and requiring BY GREYSON HANNIGAN 24 new jersey auto retailer
RETAILERS MUST PAY ATTENTION TO THE REQUIREMENTS FOR CHARGING A CREDIT CARD SURCHARGE … a buyer to only use electronic payment methods (such as an app or an in-store kiosk) when making a purchase in-person at a physical retail location. Charging surcharges on credit card purchases has an impact on the definition of “sales price” and creates a responsibility for retailers to ensure that a sign is displayed at the point-ofsale alerting customers about the credit card surcharge. In New Jersey, “sales price” is defined as “the total amount of consideration, including cash, credit, property, and services, for which personal property or services are sold, leased or rented, valued in money, whether received in money or otherwise, without any deduction for the following: (a) The seller’s cost of the property sold (b) The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller and any other expense of the seller (c) Charges by the seller for any services necessary to complete the sale (d) Delivery charges” Under the definition of “sales price,” a credit card surcharge is clearly a cost to the seller that has been passed on to the buyer and is a part of the total sales price of the merchandise. The requirement to post a sign displaying that a retailer charges a credit card surcharge and disclosing the total selling price has been the source of enforcement actions by the Division. The CFA prohibits the sale of any merchandise at retail unless the total selling price of such merchandise is plainly marked by a stamp, tag, label or sign, either affixed to the merchandise or located at the point where the merchandise is offered for sale. In 2022, and more recently in February 2023, the New Jersey Attorney General announced that the Division of Consumer Affairs issued cease and desist letters to businesses alerting them of their duty to disclose total selling price, including surcharges to consumers for using credit cards, debit cards or pre-paid cards. The Division expressed the view that “New Jersey consumers deserve to know exactly how much they will be paying when they go to a store and be able to pay however they can.” For retailers, including auto dealers, the emergence of credit card surcharges and the enactment of P.L. 2019, c. 50 has added a new area ripe for enforcement actions from the New Jersey Attorney General’s Office and the Division of Consumer Affairs. Retailers must pay attention to the requirements for charging a credit card surcharge, especially the requirement to display a sign at the point-of-sale alerting customers about the credit card surcharge, as well as the requirement to tell the customer about the surcharge before they make the purchase. These actions will satisfy the requirement of posting the total selling price for merchandise and keep retailers compliant. Greyson Hannigan is NJ CAR’s Director of Legal & Regulatory Affairs and can be reached at ghannigan@njcar.org. 25 new jersey auto retailer
BEST PRACTICES FOR DELETING PERSONAL DATA FROM VEHICLES BY JOHANNA STUBENHOFER, COMMUNICATIONS ASSOCIATE, NJ CAR Most modern vehicles are basically rolling computers containing a wide variety of personal information. According to data privacy experts, more than four out of five cars sold in 2020 contained personal data. There are currently established best practices for computers and cell phones when they are returned to an electronics retailer. These best practices can serve as foundational guidelines for dealers to build consumer trust regarding the protection of the private information contained in their used, lease return, or rental return vehicle. Bill S2740, introduced in the State Senate in June 2022, and A4723, introduced in the General Assembly in October 2022, are both being considered in their respective chambers. A4723 was voted out of the Assembly Science, Innovation and Technology Committee on March 23, 2023, with amendments championed by NJ CAR. The bills address the data deletion issue as well as the role dealers may play in offering to delete consumers’ personal information (PI). Amendments to A4723 allow dealers to charge a reasonable fee to provide the service. A4723, as amended, also provides more insight into what is considered “personal information,” “including, but not limited to, navigation history, paired phones, and garage doors codes.” The bill requires data deletion to be done utilizing protocols “developed by the National Institute of Standards and Technology, using techniques specified by the vehicle manufacturer to overwrite data or by using a menu option to reset the (relevant) device(s) to original factory settings.” Dealers should educate themselves (and their employees) about what is and isn’t required by New Jersey’s legislation, as continued on page 28 26 new jersey auto retailer
Reliability is important. Equal Housing Lender. ©2021 M&T Bank. Member FDIC. CTD-903 210908 V1 Providing stability to auto dealerships since 1951. From the people closing the deal to the vehicles themselves, dependability is everything in the auto industry. Which is why dealers choose to work with M&T Bank for the long haul. Through the industry’s highs and lows, our clients have come to rely on our steady support. We’ve learned the ins and outs of the business along the way, enabling us to deliver the right products - from floor plan to construction financing, merchant services to purchasing cards, and investment management to 401(k) advisory and wealth planning. It’s this dependability that helps dealers like you do what they do best - run their businesses. That’s what understanding what’s important is all about. Get in touch with M&T today. mtb.com/dealerservices New Jersey Nicholas Breslove Dealer Commercial Services nbreslove@mtb.com 201-788-0713
well as the recently updated Safeguards Rules that went into effect on June 9, 2023. The Safeguards Rule does NOT require data deletion from vehicles. That being said, it is in the best interest of every dealer to adopt industry best practices when it comes to data deletion of customer PI in order to promote consumer trust and limit possible future litigation. Some potential best practices dealerships might want to consider include: 1. Developing and implementing a secure data deletion policy that identifies all types of PI captured by vehicles and the process the dealership follows to delete the information as an optional service for their customers. 2. Preparing disclosures dealership staff can provide consumers, including: a. A general disclosure for computerized vehicles capable of data collection, transmission, and sharing with OEMs or any third parties. b. A disclosure for vehicle owners about data inside the vehicle the dealership may share with that vehicle’s OEM and vice versa. c. A disclosure to vehicle owners that data will be captured and stored within the vehicle itself, noting the vehicle owner’s manual will provide them with instructions on how to erase the data stored prior to trading in or ending a lease. Potential alternative ways to delete in-vehicle PI could involve telling authorized personnel that they are responsible for deleting PI from the vehicle, providing employees with tools to delete PI, or contracting a third party to delete the PI. While data deletion is not required under the Safeguards Rule, it makes sense for dealerships to consider how they want to address this important issue that can benefit both their customer service AND their bottom line. Developing a consistent and compliant policy using common best practices will help dealerships protect themselves from potential litigation, build brand reputation, and improve consumer trust as technology continues to evolve in the auto industry. Johanna Stubenhofer is NJ CAR’s Communications Associate and can be reached at jstubenhofer@njcar.org. … IT IS IN THE BEST INTEREST OF EVERY DEALER TO ADOPT INDUSTRY BEST PRACTICES WHEN IT COMES TO DATA DELETION … continued from page 26 28 new jersey auto retailer
22 Florence Street • South Hackensack, NJ 07606 • Learn more at WASCOonline.com • 800-732-4511 Why Should Your Dealership Partner With WASCO? Dealership Supplies & Exceptional Customer Service WASCO helps me manage a very diverse, very difficult business. Interacting with many vendors on my behalf really helps me simplify the entire process. — Ed Rossi, Rossi Chevrolet Buick GMC “ ” VOLUME PRICING DISCOUNTS PURCHASING EFFICIENCY ANNUAL DIVIDEND 29 new jersey auto retailer
My new book, The Future of Automotive Retail, introduced the world to my Automotive Ventures Retail Risk Assessment (AVRRA). The assessment provides some great information regarding the trends that have the highest probability of coming to fruition and their potential impact on the automotive retailing industry. The goal of the AVRRA is to be able to work closely with dealers to develop a roadmap for action in order to prepare for and neutralize some of the bigger threats exposed by the Risk Assessment. By monitoring these trends, dealers will be better informed and prepared for the future. Staying vigilant and on top of these themes will help industry players stay competitive and thrive in this accelerating period of change. The graphs included in this address a variety of disrupting trends in the industry. Below is an overview of some of the more significant potential trends: Connectivity & Over-the-Air Updates: There is expected to be growing tension around who “owns” the customer — the OEM or the dealer. Over-the-Air (OTA) updates will mean a decrease in recalls; however, dealers may profit from connectivity through participation in connected services revenue as well as greater insights into consumer driving behaviors and increased transparency into maintenance needs. Servicing of Vehicles: Electric Vehicles (EV) and OTA updates threaten to decrease both service and parts revenue. This may be offset by more sophisticated technicians and equipment and thus higher billable rates. Software Subscriptions: Automakers are planning to diversify their revenue away from traditional volume sales and aftersales and move towards high-margin software-enabled subscription services. Examples could be unlocking additional horsepower, activating rear heated seats, and providing enhanced in-cabin experiences. These services will be paid for monthly and may or may not be activated after the sale of the vehicle. It is way too early to gauge how revenue from these services, much of which will be activated post-sale of the vehicle, will be shared between OEM and dealer. Margin Compression: The internet has armed the online shopper with far more transparency around new and used car pricing and drove much of the margin out of the front end of the car deal. As inventory levels get back to normal, the industry should expect to get back to an environment of compressed margins. Direct Sale/Agency Model: The “Agency Model” is an evolution away from a more typical franchised dealership model to “agents” who sell products on the OEM’s behalf. The Agency Model is attractive to the automakers because they see the potential to reduce operating costs, eliminate discounting, and normalize the customer experience. In a new role as “agents,” dealers receive a commission or handling fee for providing certain services. Dealers need to stay attuned to how this is playing out overseas, and the implications, as different OEMs take different approaches. Consumer Privacy: A connected car can now collect 25 GB of data per hour. Data creates vulnerabilities. In parallel to vehicle data, there has been a recent trend toward consumer privacy laws and protections. More data collected means more “surface area” for hackers to penetrate systems. The question will be “Who is liable when consumer data is breached?” Dealers will have to comply with amended cybersecurity and IT guidance the Federal Trade Commission recently handed down, and there is a December 9 compliance deadline for dealerships to adopt its Safeguards Rule amendments. Dealers who embrace a future filled with ambiguity and who believe that having access to early-stage technology startups and innovative entrepreneurs will be the companies that best weather these challenges. Steve Greenfield is CEO and Founder of Atlanta-based Automotive Ventures. He can be reached at 470.223.0227 or, via email, at steve@automotiveventures.com. Analyzing the Risk of Potential Threats to Auto Retailing BY STEVE GREENFIELD, CEO AND FOUNDER, AUTOMOTIVE VENTURES 30 new jersey auto retailer
www.thenewslinkgroup.orgRkJQdWJsaXNoZXIy MTg3NDExNQ==