Issue 2 2024 Official Publication of the New Jersey Coalition of Automotive Retailers SOCIAL MEDIA CONTENT TIPS FOR DEALERSHIPS Diversity in New Jersey’s Auto Retail Industry How to Prepare Your Dealership for a Sales Tax Audit
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©2024 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 BOARD OF TRUSTEES BY REGION NORTHERN REGION I (Bergen, Essex, Hudson, Passaic, Sussex) Joseph Agresta, Jr. (Alt.) Timothy Allocca Jeffrey Brown John Fette Matthew Haiken (Alt.) William Kundert, Jr. Brian Lam Renee P. McGuire James Russomano (Alt.) Richard Selman Todd Van Duren NORTHERN REGION II (Hunterdon, Morris, Somerset, Union, Warren) Greg Ciocca, Jr. David Ferraez Chris Gilbert (Alt.) John Johnson, Jr. Sean Lyons Trent Miller (Alt.) Chris Preziosi, Jr. (Alt.) Edward J. Rossi Michael Salerno William L. Strauss, III Stephen Tilton CENTRAL REGION (Middlesex, Monmouth, Ocean) Robert Ciasulli Lisa Ocasio Devivo Kevin DiPiano (Alt.) Garry Foltz Elizabeth Giglio Adam Kraushaar Veronica Maoli (Alt.) Paul Sansone, Jr. Anton Semprivivo Joseph Wajda (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 Judith Krupnick (Alt.) Stacey Lilliston James Magee (Alt.) Marcy Maguire James McCormick Robert D. McCormick Tina Wright Eric Nielsen ..................................................................................Chairman Ronald E. Baus, Jr. ................................................................Vice Chairman Andy Shapiro . ..............................................................................Secretary Ed Barlow, III ............................................................................... 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) David Kull ................................Regional Vice President (Southern Region) James Curley, III ..............................................................Budget Chairman Michael McGuire .................................NJ CAR Insurance Co. Ltd. Chairman William L. Strauss, III ................................ 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 PRESIDENT’S MESSAGE 6 New Jersey’s EV and Fiscal Policies Are on a Crash Course That Harms Consumers BY JAMES B. APPLETON CHAIRMAN’S MESSAGE 8 NJ CAR Continues Working to Strengthen Dealer Protections and Boost Consumer Recall Completion Rates BY ERIC NIELSEN NADA DIRECTOR’S MESSAGE 10 NADA Updates BY RICK DESILVA, JR. 12 Diversity in New Jersey’s Auto Retail Industry 16 NJ CAR Services Enhancing New Jersey Dealerships Beyond Cars BY MIKE MADIA 18 Social Media Content Tips for Dealerships BY JOHANNA STUBENHOFER 20 How to Prepare Your Dealership for a Sales Tax Audit BY PHILIP CRAFT AND JAIME REICHARDT 22 NJ CAR Social Media Highlights 24 Thank You to Those Who Contributed to NADA PAC 25 New Jersey Dealers Charitable Contributions 28 New Car Dealers Economic Impact 30 NJ CAR Recognizes Dealerships That Have Contributed to CAR-PAC 34 Every Dealership Should Be a Member of NJ CARPOOL EDITOR: BRIAN HUGHES PUBLISHED BY THE NEWSLINK GROUP, LLC 855.747.4003 NJ CAR Executive Committee and Board of Trustees 2024 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 While Governor Murphy has committed to making New Jersey a 100% EV market by 2035, his administration has added a new $1,060 registration fee for EVs, proposed yet another cut to the Charge Up New Jersey EV incentive, and proposed a state budget that phases out the sales tax exemption for EVs. Let’s look at these head-scratching actions that have shown a spotlight on EV policy that seems at odds with itself. EV REGISTRATION FEE No one disputes that EV drivers should pay their fair share into the Transportation Trust Fund (TTF) to maintain roads and bridges. The proposed $250 annual surcharge (which creeps up for the next several years) was the first warning sign that the state’s aggressive EV mandates are on a collision course with its fiscal realities. Since our DMV collects motor vehicle fees four years up-front, this $250 fee isn’t just $250 at the point of sale. The fee adds more than $1,000 to the cost of every EV registered in New Jersey. PROPOSED CUT TO CHARGE UP NEW JERSEY EV INCENTIVE The Charge Up New Jersey EV incentive program was launched as a $300 million, 10-year program and is entering its fifth year. The program started as a $5,000 incentive on any EV priced below $55,000. It evolved into a two-tier program providing a $4,000 incentive on eligible EVs priced below $45,000 and a $2,500 incentive on eligible vehicles priced between $45,000 and $55,000. Now, the Board of Public Utilities (BPU) has proposed chipping away at the value of the incentive in 2024, making it a $2,000 incentive on any vehicle below $55,000 and providing another $2,000 incentive that is income-based. According to the proposed plan, consumers will be required to submit documents to the BPU to prove they are eligible for the income-based incentive and will need to be pre-approved before going to a dealership to shop for an EV. PROPOSED PHASE OUT OF EV SALES TAX EXEMPTION Details haven’t been released, but the governor’s proposed 2024-2025 budget does away with the EV sales tax exemption, the most effective and the only consistent EV incentive dealers have had to work with in the showroom. WHAT DOES THIS ALL MEAN? Automakers and auto retailers have been challenged by the Murphy Administration to sell an increasing number of EVs in New Jersey. The automakers are meeting the challenge by designing and building exciting new EV products, and dealers have invested more than $200 million preparing to sell and service those EVs. Put simply, dealers want to sell what consumers want to buy, and right now, EV sales in New Jersey lag far behind the government mandates imposed by the California Air Resources Board (CARB), which governs the New Jersey EV market. Under the California rules, EV sales were supposed to reach 23.5% last year. They were less than 12%. Under CARB’s Advanced Clean Car II (ACCII) rule, which was adopted by the New Jersey Department of Environmental Protection (NJDEP), that mandate will jump to 43% in 2027, and then climb all the way to 100% by 2035. WHAT’S NEXT? The Murphy Administration needs to come to the realization that taking away or weakening EV incentives at a time when EV sales are continuing to decline is a fool’s errand. Dealers need generous cash-on-the-hood incentives and the sales tax exemption to turn EV-curious customers into EV owners. If the state cannot afford the subsidies and the mandates at the same time, it should withdraw from the CARB program and revert to the more flexible (but still aggressive) federal clean car rules followed by most other states. The governor’s plan to phase out the sales tax and slam EV buyers with $1,000 in new, up-front costs will further derail EV sales. Ultimately, consumers will decide when New Jersey becomes a 100% EV market — not automakers, not auto retailers, and certainly not government decision-makers. JAMES B. APPLETON, PRESIDENT, NJ CAR New Jersey’s EV and Fiscal Policies Are on a Crash Course That Harms Consumers 6 NEW JERSEY auto retailer
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CHAIRMAN’S MESSAGE NJ CAR is working with members of both the New Jersey Senate and Assembly to move the Coalition-backed Motor Vehicle Open Recall Notice and Fair Compensation Act (A4380/ S3309) through the legislative process. The bill is currently pending before both the Assembly Consumer Affairs Committee and the Senate Transportation Committee. In early June, NJ CAR launched a grassroots campaign, targeting the members of both committees and asking them to sign on as a co-sponsor of the bill, which addresses serious public safety and consumer protection issues. Manufacturers have long done the bare minimum to notify consumers about safety defects, which has resulted in less than half of all vehicles under recall ever getting repaired. This is a serious highway safety risk, a financial windfall for OEMs, and a financial burden to consumers and dealers. The bill is intended to dramatically improve recall completion rates by requiring automakers to provide the NJMVC with a list of all registered vehicles with unresolved recalls more than six months old and to create a more robust notification system and outreach to the owners of affected vehicles. This legislation is also designed to prevent automakers from unfairly manipulating the compensation they pay local dealerships and the technicians who repair vehicles on behalf of affected consumers. The legislation amends the New Jersey Franchise Practices Act and addresses a variety of issues important to dealers and consumers. Some of the provisions that NJ CAR hopes will be included in the final legislation include the following: • Prohibiting the sale of unsafe used vehicles under a “stop sale” or “do not drive” recall. • Requiring all used car dealers to check the National Highway Traffic Safety Administration (NHTSA) website (safercar.gov) for open recalls on a vehicle before it is sold. • Codifying the existing requirement for dealers to disclose whether a vehicle is subject to any open recall at the time of sale. • Providing a “safe harbor” defense to any consumer fraud claim, as long as the dealer checked the NHTSA website and found no recall on the vehicle before it was sold. • Requiring automakers to provide the New Jersey Motor Vehicle Commission (NJMVC) with a list of all New Jersey-registered vehicles under recall for six (6) months or more (that have yet to be repaired) and, in cooperation with the NJMVC, to send notice to those registered vehicle owners with unresolved recalls. • Requiring automakers to compensate their franchisees for specified costs associated with a “stop sale” or “do not drive” order. • Defining the dealers’ recall costs more clearly and requiring OEMs to compensate dealers 1.75% per month of the book value of any used vehicle subject to a “stop sale” recall. • Clarifying provisions in existing law, which require an automaker to pay dealers a fair retail rate of reimbursement on parts and labor to repair vehicles under recall. • Protecting auto retailers from being subject to financial or other penalties levied by an automaker in the event they bring a claim for reimbursement of recall costs. • Prohibiting manufacturers from recovering their cost of compliance with state law and requiring retail reimbursement to dealers for parts and services provided for warranty and safety recalls. • Prohibiting manufacturers from arbitrarily and unilaterally reducing the retail price of parts required for warranty and safety recall services immediately preceding or during a recall campaign to avoid paying dealers fair compensation for warranty and safety recall work. ERIC NIELSEN, CHAIRMAN, NJ CAR NJ CAR Continues Working to Strengthen Dealer Protections and Boost Consumer Recall Completion Rates 8 NEW JERSEY auto retailer
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NADA DIRECTOR’S MESSAGE RICK DESILVA, JR., DIRECTOR, NADA The following is the latest on some of the major issues being addressed by NADA. Please don’t hesitate to contact me at rick.desilva@libertysubaru.com if you have any questions. NADA APPLAUDS ADVANCEMENT OF LEGISLATION TO STOP FTC’S FLAWED VEHICLE SHOPPING RULE The House Financial Services and General Government (FSGG) Appropriations Subcommittee recently passed the Fiscal Year 2025 appropriations bill, which included a NADA-backed provision that would stop the Federal Trade Commission (FTC) from implementing or enforcing the Vehicle Shopping Rule (also known as the “CARS Rule”) until September 30, 2025. The onerous Vehicle Shopping Rule, finalized at the end of 2023, is simply terrible for consumers. It will add massive amounts of time, complexity, paperwork, and cost to car buying and shopping for tens of millions of Americans every year by requiring dealers to provide an extensive series of unnecessary written and oral disclosures when communicating with consumers related to the vehicle sales price, certain credit terms, and voluntary protection products. A study by the Center for Automotive Research (CAR) found the Vehicle Shopping Rule would cost more than $24 billion over the next decade and would add 60-80 minutes to the car buying process, which would harm consumers. Scan the QR code to review the full CAR study. https://www.cargroup.org/publication/ assessment-of-cost-associated-with-theimplementation-of-the-federal-trade-commissionnotice-of-proposed-rulemaking-addendum/ Commenting on the Vehicle Shopping Rule, NADA President and CEO Mike Stanton said, “This flawed rule would upend the sales process for consumers and small businesses. Either through the courts or Congress, this rule needs to be stopped before it wreaks havoc on consumers and the entire car-buying and car-shopping process.” NADA Updates 10 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 NADA REQUESTED RELIEF FOR DEALERS ENCOUNTERING PROBLEMS WITH REGISTRATION AND SUBMISSION OF TIME OF SALE REPORTS IN THE IRS ENERGY CREDITS ONLINE PORTAL On May 30, 2024, NADA submitted a letter to the U.S. Department of the Treasury and the Internal Revenue Service (IRS) formally requesting relief for dealers that have not been reimbursed for the advanced payment of Section 25E and Section 30D clean vehicle tax credits applied at the point-of-sale for 2024 clean vehicle sales because of problems with registration for the advance payment program and submission of Time of Sale reports in the Energy Credits Online portal. NADA submitted the letter following extensive discussions with the Treasury and the IRS over the last two months to define the types of problems encountered by affected dealers and the scope of outstanding reimbursements. The letter stressed that, because the customers involved in each sale received the benefit of a clean vehicle tax credit transfer, dealers should not be forced to incur losses on these sales based merely on technical non-compliance with certain regulatory requirements of the advance payment program, particularly given the technological and administrative difficulties encountered during the portal’s implementation. NADA will continue to push for relief for the affected dealers and to stress the importance of this issue in its communications with Treasury and IRS. Dealers should refrain from applying clean vehicle tax credits at the point of sale if they have not completed registration for the advance payment program or experience problems with the portal when submitting a Time of Sale report. Dealers are also reminded that, for transactions involving a clean vehicle tax credit transfer, they should not deliver a vehicle to a customer until after properly submitting a Time of Sale report. In addition, dealers are cautioned against spot deliveries involving a clean vehicle because a return after delivery could cause the vehicle to lose eligibility for a tax credit on a subsequent sale. NADA members may obtain additional guidance and information regarding the Clean Vehicle Tax Credits from NADA’s Clean Vehicle and Refueling Incentives webpage by scanning the QR code. https://tinyurl.com/nadaincentives 11 NEW JERSEY auto retailer
Diversity in New Jersey’s Auto Retail Industry In honor of Women’s History Month, NJ CAR highlighted some of the diversity that can be found in New Jersey’s franchised auto retailing industry. Below are Q&As and videos highlighting several women in our industry. MINDY HOLMAN HOLMAN AUTO GROUP How long has your dealership been in business? This year, Holman is celebrating its centennial anniversary. My grandfather, Steward Holman, opened his first dealership 100 years ago — Rice and Holman Ford in Merchantville, New Jersey. How many employees currently work at your dealerships? Holman currently employs nearly 9,500 individuals around the globe, including 800 across its family of dealerships in New Jersey. How did you first become involved in the industry? I joined the organization in 1986 as a management trainee and then served in various capacities in our dealerships, including General Manager, before becoming Vice President of Holman in 1994. I later served as President and then Chief Executive Officer of Holman before becoming the Board Chair in 2015. Is there an event when your presence as a female entrepreneur in the auto retail industry influenced younger generations to shop at your dealership or join the industry? Our entire organization is proud to be a WBE-certified business by WBENC. Being certified as a woman-owned business is a reflection of the significant role women throughout our organization have played — and continue to play — in Holman’s sustained growth and success. What is your pioneering vision for the future of your dealership? Our purpose as an organization is simple yet very important: provide a rewarding career for all; a better life for our employees and their families; and a great experience for our customers. Our commitment to this purpose shapes our culture and guides our business as we embark on our second century in business. What would you say to other women who haven’t considered a career in automotive retailing? The integral role women play across the automotive industry has certainly come to the forefront during the last several years. Today, many organizations (including Holman) have created robust programs that focus on empowering and inspiring women. As the industry continues to thrive and evolve, it is creating new opportunities for women, and I’m proud to see a growing number of women joining our traditionally male-dominated industry. My sincere hope is that business leaders across the automotive sector build upon this momentum and continue to create opportunities for women to flourish and make meaningful contributions to the future of our remarkable industry. JUDITH SCHUMACHER-TILTON SCHUMACHER AUTOMOTIVE GROUP Scan the QR code to learn more about Judy. https://www.youtube.com/watch?v=Ad7lXc7DAnk 12 NEW JERSEY auto retailer
MARCY MAGUIRE WINDSOR NISSAN How long has your dealership been in business? I bought Windsor Nissan in 2000, but my experience in the automotive retail industry goes back more than 40 years when I was involved in the family Chevrolet dealership. How did you first become involved in the industry? I started in the F&I department of the family Chevrolet dealership in the 80s, where I obtained my insurance license. In 1989, Saturn was a new brand in which I invested, building my first store in 1991 and a second in 1993. The automotive retail industry has gone through enormous changes over the last forty years, including the introduction of new brands, the closing of some brands, bankruptcies, bailouts, COVID-19, supply chain issues, and more. The industry is resilient and 100% focused on serving our customers. Is there an event when your presence as a female entrepreneur in the auto retail industry influenced younger generations to shop at your dealership or join the industry? The industry has been male-dominated since the first automobile was invented, but more and more women are assuming roles in all parts of the dealership, from sales to general managers and service technicians to dealership owners. Women make the majority of automotive purchase decisions. I think they truly appreciate seeing other women throughout the dealership. What is your pioneering vision for the future of your dealership? What I love about our industry is that it involves so many unique business operations under one roof: new cars, used cars, finance and insurance, service, parts, body shop, advertising, marketing, human resources, community relations, and political outreach. You are constantly learning something new, and you are never bored. What would you say to other women who haven’t considered a career in automotive retailing? Every woman, especially a woman with ambition, can find a place to shine in the automotive retail industry. Wherever your talents and interests lie, there is a rewarding career that awaits you. VERONICA MAOLI CELEBRITY FORD OF TOMS RIVER Scan the QR code to learn more about Veronica. https://youtu.be/KH9IhOVHq98 13 NEW JERSEY auto retailer
BETH BEANS GILBERT FRED BEANS AUTOMOTIVE GROUP How long have your dealerships been in business? The dealerships have been in the business since 1975. How many employees currently work at your dealerships? We have 1,910 employees across our 27 locations. How did you first become involved in the industry? When I was 12 years old, I spent the summer helping my father in his dealerships. I enjoyed watching him work and was inspired by the passion he had for this business. When that summer ended, I wrote him a letter saying I wanted to be a top dealer just like him. My father saved that letter, and he still has it displayed in our management office. After graduating college, I worked in Florida and Virginia dealerships and then attended the National Automobile Dealers Association (NADA) Academy. When I returned to the Northeast, I joined the family business, starting at our paint and body shop in Doylestown, which is still part of the Fred Beans Automotive Group. I moved around to learn as much as I could, working in different operations and in just about every department. I eventually took on general manager roles at a Mitsubishi and two Saturn dealerships. These experiences gave me confidence as I moved into my current position in 1997 as Vice President of the Fred Beans Automotive Group. In this role, I work to create programs and processes that guide our commitment to treat employees, customers, and community members as extensions of the Beans family. Is there an event when your presence as a female entrepreneur in the auto dealership industry influenced younger generations to shop at your dealership or join the industry? I was honored last year to receive the “Barbara Cox Anderson Woman of the Year Award.” That afforded me the opportunity to speak at the NADA Show about my experiences in automotive and to publicly encourage more females to join me in this industry. Among the attendees was a Northwood University student studying automotive aftermarket management, who I had the honor of presenting with the Barbara Cox Memorial Scholarship. For every young person who sees a future in automotive, I know there are many more who do not even consider automotive as an option. At Fred Beans, we have worked to highlight the important roles women can — and do — play in our industry. One way we do this is by celebrating the “Women of Beans” on our social media channels each day during March’s Women’s History Month. We feature their roles and how their vast contributions make it “Better at Beans.” What is your pioneering vision for the future of your dealership? This industry is not known for being flexible and family-friendly, but it doesn’t mean we can’t change. I am determined to have the Fred Beans Automotive Group lead the way in creating that change. Just last year, we introduced new and enhanced employee benefits that support a better work and personal life balance. We now have paid parental leave, which benefits both mothers and fathers. It’s something I have personally advocated for based on my own experiences. We’ve also increased PTO and bereavement days and offered paid time off for volunteering. I’d like Fred Beans Automotive Group to be the type of organization kids in our community dream of joining. I want my general managers’ daughters to want to work in automotive. I want to see their moms and dads succeed here, be happy here, and want to follow in their footsteps. What would you say to other women who haven’t considered a career in automotive retailing? We need more women in automotive! You can have a meaningful influence and grow a career with us. Automobiles are designed for and sold to a diverse population. So, we need people with different backgrounds, perspectives, and experiences designing, selling, and servicing cars for ALL buyers. There are also many roles for women outside of sales and service, including marketing, human resources, accounting, and even wellness. In fact, Fred Beans Automotive Group has a dedicated wellness coordinator to support employees’ mental and physical health. 14 NEW JERSEY auto retailer
EMILY CAMPBELL CAMPBELL SUPPLY COMPANY How long has your dealership been in business? Campbell Supply Company was founded in 1967 by my grandfather Whitman (Woody) and started in a small family home in Edison, New Jersey, selling fire apparatus. Since then, we have grown into a third-generation company with seven locations representing multiple product lines, including Freightliner, Western Star, Isuzu, and Spartan ERV. How did you first become involved in the industry? I grew up in the industry, starting from a very young age sweeping floors, landscaping, assisting with office tasks, and eventually working in the parts warehouse during the summers off from school. During high school and college, I continued to work in the business on a more regular basis, eventually moving to the Accounting Department after graduating from Rutgers. Is there an event when your presence as a female entrepreneur in the auto dealership industry influenced younger generations to shop at your dealership or join the industry? As a young female in a commercial truck dealership, I am always looking for opportunities to engage with our industry to drive increased awareness and engagement from younger generations, including females who may not know how great the trucking industry can be. What is your pioneering vision for the future of your dealership? I want to continually elevate our customer and employee experience through innovation and engagement. With more aggressive emission laws and regulations being enacted, our customers are entering a time of financial uncertainty. My vision for Campbell is to ensure that we are always working towards a better future for our customers, as well as our employees. What would you say to other women who haven’t considered a career in auto retailing? I would start by mentioning that women who have ventured into this industry often find themselves embracing and thriving in its challenges and opportunities. With significant growth and potential, it offers a dynamic and rewarding career path. I encourage all women to explore the possibilities within the trucking industry, where they can contribute their skills, drive, and passion to make a meaningful impact since trucking is such a critical part of the U.S. economy. How did you get to be the Controller, and what does that mean exactly? Campbell Supply is proud to be a family-owned dealership that will soon be a third-generation business with myself and my two brothers. We have expanded over the years, increasing our footprint across New Jersey and the surrounding areas to better service our customers. “Female” and “trucking industry” are words that don’t immediately come to mind as a combination. I have been working at Campbell Supply for as long as I can remember and have worked in multiple departments and positions throughout the years. I currently hold the position of Controller of our Raritan Center location, which includes overseeing accounting and financial reporting as well as ensuring compliance with financial regulations, monitoring cash flow, and analyzing financial data to guide strategic decisions. I collaborate with our teams to optimize the company’s profitability and operational efficiency by maintaining accurate financial records and implementing effective financial controls. Have you been able to implement any changes/programs/etc. to support your vision of the future of trucking or your company? Within Campbell, I work closely with our executive team to implement new strategies and processes that will drive growth in our organization. I initiated Campbell Supply’s commitment to the Woman in Trucking Association allowing for more engagement with women within our industry as well as ensuring Campbell Supply remains a foundational piece of the New Jersey trucking industry. In 2023, I graduated from the intensive, six-week American Truck Dealers academy course offered through NADA, which provided me with valuable information and material to further the success of Campbell Supply. I am looking forward to leading Campbell Supply with my two brothers, Spencer and Mason, and continuing the success for both our organization and our customers. 15 NEW JERSEY auto retailer
NJ CAR Services Enhancing New Jersey Dealerships Beyond Cars BY MIKE MADIA, DIRECTOR OF SALES & MARKETING, NJ CAR In the bustling world of automotive retail, every detail counts. From the sleek lines of a showroom to the fine print on paperwork, the success of a dealership hinges on its ability to seamlessly integrate various elements. NJ CAR Services exists to ensure that New Jersey’s new car dealerships operate smoothly and in compliance with all state and federal laws, rules and regulations. Our organization plays a pivotal role in providing everything a dealership needs to manage (and thrive) in their day-to-day business, including essential forms, eye-catching advertising materials, apparel, and promotional giveaways. NJ CAR Services’ commitment to dealers goes far beyond supplying products. As a trusted partner of the dealer community, we prioritize ensuring compliance with NJMVC rules and regulations. By staying ahead of the latest legal requirements and industry standards, NJ CAR Services helps dealers avoid costly fines and maintain their reputation as trustworthy businesses. Our extensive range of forms — in both traditional and electronic formats — are the backbone of dealership operations, necessary for facilitating transactions with record‑keeping that aid in dealership compliance with New Jersey Motor Vehicle Commission’s (NJMVC) regulations. By providing up-to-date, legally compliant forms, NJ CAR Services can help protect dealers so they can focus on what they do best — selling cars without unnecessary paperwork pitfalls. Fortunately, NJ CAR Services doesn’t stop at forms. Our organization also excels in crafting advertising items that help dealerships stand out from the competition. From license plate frames to windshield advertising, each item is designed to leave a lasting impression on potential customers. These items not only enhance a dealership’s brand visibility, but they can also contribute to a cohesive and professional aesthetic that instills trust in customers. NJ CAR Services also recognizes the power of branding. That’s why we offer a range of dealership apparel, including polos, quarter zips, hoodies, shirts, and hats — all featuring meticulously stitched dealer logos. This not only promotes a sense of unity among dealership staff, but also reinforces the dealership’s brand identity with every interaction. In addition to tangible products, NJ CAR Services specializes in dealer promotional items for giveaways. These items serve as valuable marketing tools, which help dealerships attract attention, generate leads, and foster customer loyalty. Whether it’s branded keychains, tote bags, USB drives, or any one of the hundreds of options, these promotional items keep the dealership topof-mind for customers long after the initial interaction. What sets NJ CAR Services apart from other competitors is our unwavering dedication to supporting the New Jersey dealer community. Dealers who purchase products from NJ CAR Services not only benefit from top-notch quality and service but will also contribute to a virtuous cycle where revenue flows back into the programs that provide dealers with valuable benefits and resources. In essence, by choosing NJ CAR Services, dealerships will be investing in their own success while supporting the collective growth of the industry. NJ CAR Services is a strategic partner, trusted advisor, and champion of New Jersey’s automotive dealerships. Through our comprehensive offerings, unwavering commitment to compliance, and steadfast support for the dealer community, NJ CAR Services continues to play a vital role in driving success for the dynamic world of automotive retail. Visit njcarservices.com to learn more. 16 NEW JERSEY auto retailer
BY JOHANNA STUBENHOFER, COMMUNICATIONS ASSOCIATE, NJ CAR According to a 2023 Pew Research Center study, approximately 68% of adults reported using at least one social media platform. That means dealers can reach as many as 6.3 million of New Jersey’s 9.2 million residents with a well-developed social media marketing strategy. With such a wide range of potential customers to reach, using social media to attract potential customers who are in the market for a new vehicle sounds like a no-brainer. Unfortunately, some dealers don’t take advantage of the many benefits offered in putting a consistent social media management plan in place. Some New Jersey dealerships are currently using social selling, which is a method for sellers to connect and build relationships with potential customers through social networks. HubSpot, a company providing businesses with social media tools and resources, estimated that 87% of businesses using social selling have found it to be an effective tool to grow their business. CONTENT IS KING Whether you have a social media advertising strategy or not, it is critical that dealers find ways to create content that encourages engagement with consumers (and potential customers). For example, dealers might create an eye-catching post that reminds drivers to keep up with their vehicle service with a call-to-action to schedule an appointment at the dealership. It is important to note that the average consumer is not well-schooled in the wide variety of preventative maintenance needed to ensure their vehicle operates at peak performance. Easy-to-understand social media content provides an excellent opportunity to educate a large audience about their vehicles, while simultaneously encouraging them to get their vehicles serviced at your dealership. Building a connection between your social media content and potential customers is a great way to build brand awareness. Dealers can also create posts that focus on vehicle and driver safety tips centered around weather-related conditions, such as flooding, snow, black ice, high winds, and more. These generic posts aren’t dealer-specific, but can help viewers associate your dealership brand with driver safety. This is another way to help dealership stand out from the social media noise. In order to encourage more potential customers to come into your showroom, dealers should create social media content that focuses on how the services they provide benefit consumers. SAVING TIME WHILE MANAGING SOCIAL MEDIA There are a wide variety of online tools to help with content design including Canva and Photoshop, as well as a variety of artificial intelligence (AI) platforms to give your dealership a jumpstart in social media content creation. Once you’ve created your content, some may be overwhelmed by the sheer number of popular social media platforms [Facebook, Instagram, X (formerly Twitter), LinkedIn, YouTube, etc.] and struggle to determine which ones are the best to meet your specific social media goals. Fortunately, there are affordable, user-friendly online tools to help your dealership manage social media like a professional. NJ CAR itself uses a platform called Hootsuite that makes it incredibly easy to manage multiple social media accounts at the same time. Hootsuite’s streamlined process is designed to help make social media management easier, making it the ideal tool for dealerships who want to dive into social media but also want to use their time efficiently. If you have any questions about social media content creation or management, please contact the NJ CAR Communications Department — Brian Hughes (bhughes@njcar.org) or Johanna Stubenhofer (jstubenhofer@njcar.org). Social Media Content Tips for Dealerships 18 NEW JERSEY auto retailer
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® John Kratsch, john.r.kratsch@bofa.com Chris McCawley, christopher.mccawley@bofa.com business.bofa.com/dealer ©2023 Bank of America Corporation. All rights reserved. DFS-699-AD 5949042 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA. 19 NEW JERSEY auto retailer
How to Prepare Your Dealership for a Sales Tax Audit BY PHILIP CRAFT AND JAIME REICHARDT CITRIN COOPERMAN After a brief reprieve due to the pandemic, state and local tax audits are back in full force, with automotive dealerships being a top target. While nobody enjoys getting the dreaded letter from a state revenue department, there are things dealerships can do to prepare and bolster their documentation, tax reporting, and remittance procedures for state tax auditors should they come knocking. The following are four key audit areas automotive dealership leaders should focus on to improve their tax and financial documentation: 1. Sales and Gross Receipts While most dealerships file sales tax returns with financial information derived from their dealer financial statements, state tax auditors will often commence the audit by attempting to reconcile or point out inconsistencies between information reported on your quarterly returns with figures reported on your state income tax returns. While there may be several legitimate reasons for differences between the figures, an auditor will likely require you to provide a reconciliation explaining any differences. It is worth looking at your dealership’s financial statement mapping of sales to make sure it includes all sale accounts that would otherwise be grouped for tax purposes. 2. Fixed Assets You should keep all of your fixed asset invoices to prove that sales tax was paid and capitalized to the asset. In the event the vendor does not charge you sales tax and the item at issue is taxable, you should be accruing applicable use tax and paying it with your next quarterly return. Auditors will also target repairs and maintenance accounts. You should have a copy of your capitalization policy and be prepared to explain how items are deemed to be repairs versus capitalization. 20 NEW JERSEY auto retailer
to charge sales tax on repairs or maintenance done under a warranty (or without a warranty), how to treat inspection charges, and whether to include towing charges and environmental or hazardous waste fees in the taxable sales price are all examples of difficult sales tax questions that dealerships and their owners face regularly. In light of these potential problem areas, it is imperative that your accounting and invoicing departments are provided with the correct taxability rules and determinations. There are many other areas where dealerships can potentially enhance and solidify their sales tax processes. State tax audits can come with penalties and interest, which can significantly accrue over time, depending on the look-back period under review by the state (usually three to four years). It is recommended to get your dealership’s CPA or tax advisor involved early in order to avoid a lack of documentation and failure to implement appropriate procedures and controls. Citrin Cooperman’s Automotive Dealerships Industry Practice is comprised of a team of professionals who specialize in helping dealers grow their businesses and work closely with our State and Local Tax (SALT) team to ensure automotive dealerships are up-to-date with their state tax compliance obligations. If you have any questions, please contact Philip Craft at pcraft@citrincooperman.com or Jaime Reichardt at jreichardt@citrincooperman.com. 3. Advertising Costs Subject to Sales Tax A highly targeted area of dealerships is advertising costs. It is important to look at your advertising bills and understand what is and is not taxable. Since advertising is generally a nontaxable service, many vendors do not charge sales tax on their invoices. However, if the advertising involves printed mailers or advertising inserts for periodicals and circulars to be distributed to prospective customers, that form of advertising could very well be taxable. In addition, many digital and online advertising or listing services could be considered to involve the sale of a taxable information service or, in some cases, access to a cloud computing portal, which may be taxable as well. It is imperative that dealers review their invoices to understand the nature of the service and how it is delivered. If there are questions about the services purchased, ask the vendor for clarification. 4. Loaner Vehicles and Repairs or Maintenance Another confounding area in sales tax for a dealership to consider is how to treat loaner vehicles provided to customers. It can be confusing when trying to identify whether there is a charge for the loaner and whether part of a free or additional warranty or maintenance program can impact the taxability. Additionally, there are also states that will not permit a dealership to purchase a loaner vehicle with a tax-free resale certificate since the vehicles may be utilized by the dealership and not sold or leased to customers. Lastly, the treatment of repairs and maintenance is an additional layer of complexity for dealerships to properly account for when it comes to sales and use tax. Whether Natural Gas | Electricity Choose a pricing program that fits your needs Lock-in your energy rates for 12 months or more Local energy expertise & insight mjahangani@spragueenergy.com Mike Jahangani | 732.982.8486 Visit us online at spragueenergy.com/njcar Sprague Works with NJ CAR Members to Manage All Their Energy Needs 21 NEW JERSEY auto retailer
NJ CAR Social Media Highlights RIDE AND DRIVE EVENT On May 21, another successful NJ Sustainability Summit and Electric Vehicle Ride & Drive was held. Local dealerships and vehicle providers showcased 16 EVs, which produced over 125 test drives. Attendees were able to experience the following EVs: • Audi Q4 e-trons from Audi Eatontown. • BMW iX from BMW of Freehold. • B4 Electric Truck from Bollinger Motors. • Chevrolet Blazer EV and Hyundai Ioniq 5 from Circle Auto Group. • Ford F-150 Lightning and Mustang Mach-E from George Wall Ford. • Hyundai Ionic 5 from Freehold Hyundai. • Lucid Air and Lucid Air Grand Touring from Lucid Motors Short Hills. • Nissan Ariya from Raceway Nissan of Freehold. • Porsche Taycan from Porsche Monmouth. • Tesla Model 3 and Tesla Model Y from Tesla Eatontown. • Tropos Motors LSV from Tropos Motors. The event also featured an impressive exhibition of medium- and heavy-duty EVs: • Bollinger Motors B4 Class-4 • Box Truck (LSV) from Tropos Motors. • Electric School Bus from BYD. • Ford F-150 Lightning from EV Resource Group. • Front Loader from HEVI, Corp. • Landscaping and lawn equipment from Kenvil Power and American Green Zone Alliance. A HUGE THANKS to Sustainable Jersey for hosting us and for helping secure local dealerships, and the New Jersey Electric Vehicle Association (NJEVA) for coordinating the showcase and supporting the event. 22 NEW JERSEY auto retailer
CALIFORNIA REGULATIONS Why has Gov. Murphy rejected the Biden Administration’s rigorous clean car regulations in effect in most other states in the nation and opted, instead, for the unreasonable and unworkable regulations designed by California regulators for the California new car market? New Jersey consumers aren’t like California consumers and the New Jersey new car market isn’t like the California new car market. HOLMAN RIBBON CUTTING Congratulations to the Holman auto group on their 100th anniversary! The anniversary was celebrated at the same time they cut the ribbon for BMW of Mt. Laurel and MINI of Mt. Laurel at the grand opening of their new showroom. Thank you to Sen. Troy Singleton for joining Holman at their recent celebration. Pictured in the accompanying photo are (L-R): Aksel Krieger, Vice President of BMW of North America, LLC — Woodcliff Lake, New Jersey, Eastern Region; Mike Peyton, Vice President of MINI of the Americas; Shaun Bugbee, Executive Vice President of Operations for BMW of North America; Mindy Holman, Chair of the Board of Holman auto group; and Cecil Lam, General Manager of BMW and MINI of Mount Laurel. PLUG-IN HYBRIDS Plug-in hybrids are a viable option for many New Jersey consumers who have continuing concerns about range anxiety or vehicle affordability when it comes to a fully electric vehicle. To read more about this topic in a recent Forbes article, scan the QR code. https://www.forbes.com/sites/ edgarsten/2024/04/29/studyreveals-the-hybrid-lifeline-for-evchallengedautomakers/?sh=17997d3c4df4 23 NEW JERSEY auto retailer
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