Pub. 5 2023 Issue 3

PARTNERSHIPS HELP Dealers Succeed NEXTGEN VISITS WASHINGTON, D.C.

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10 ©2023 Utah Auto Dealer | The newsLINK Group, LLC. All rights reserved. Utah Auto Dealer is published four times each year by The newsLINK Group, LLC for the New Car Dealers of Utah 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 the New Car Dealers of Utah, 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. Utah Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of the New Car Dealers of Utah. While the New Car Dealers of Utah 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. PUB. 5 2023 ISSUE 3 16 5 Executive Director’s Message NCDU: Leading the Future By Craig Bickmore, Executive Director 7 NextGen Visits Washington, D.C. 10 A Man All In for the Great American Auto Dealer: Michael G. Charapp 11 Partnerships Help Dealers Succeed By Sharon Kitzman, Dominion DMS 14 Planning for Dealership Succession: Dividing Multiple Dealerships Amongst Family By Duncan Moseley, Managing Director, Business Transition Advisory Group, Truist Wealth 16 Ways to Increase Your Service Department Traffic 20 What You Need To Know About Utah’s Gas Tax and Registration Fees 7 CONTENTS 4 UTAH AUTO DEALER

BY CRAIG BICKMORE, EXECUTIVE DIRECTOR NCDU: Leading the Future “The single biggest way to impact an organization is to focus on leadership development. There is almost no limit to the potential of an organization that recruits good people, raises them up as leaders and continually develops them.” —John Maxwell That statement describes the NextGen program to a tee. Recently, I had the opportunity to visit Washington, D.C., with our NextGen dealers. This yearly trip helps prepare the dealers of tomorrow by giving them the opportunity to meet with Utah’s Congressional delegation, NADA leadership and other leaders to gain a deeper understanding of how lawmaking and policy affect the auto industry. Mild temperatures, overcast skies and the occasional raindrops did not detour us from taking in the sights and walking the National Mall … and boy did we walk! I hope you enjoy seeing a few of the sights in the NextGen article in this issue. We initially planned to recap our NextGen trip in the last issue, but it was preempted by the FTC Safeguards deadline. We felt it was of great importance to cover that topic as the new law enacted many important changes for all of us. I would be remiss if I did not mention the passing of Michael G. Charapp of Mahdavi, Bacon, Halfhill & Young, PLLC. His dedication to our industry was second to none. He spent his life in and around the auto industry and served his clients tirelessly. He will be missed. Also covered in this issue are great articles to help you grow your business, your partnerships and help you plan for the future. These articles are provided by industry experts, and I hope they provide you with some new and interesting insights. If you need anything, NCDU is here to help you in any way we can. Whether that means talking about legislative issues or just providing access to educational and networking opportunities with other like-minded dealers, we are only a phone call away. I hope you enjoy what is left of the summer. I’m sure that you, just like me, are looking forward to the crisp days of fall. As always, I am grateful to be working so closely with so many accomplished, kind and caring individuals. Thank you! Craig Bickmore EXECUTIVE DIRECTOR’S MESSAGE 5 UTAH AUTO DEALER

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NEXTGEN VISITS Washington, D.C. In late March, NCDU’s NextGen flew to Washington, D.C. They spent three days learning about legislative efforts, policymaking and how those affect the auto industry. They met with the NADA Legislative Affairs Department, NADA Leadership and Utah’s Congressional Delegation: Rep. Burgess Owens, Rep. John Curtis, Sen. Mike Lee and Sen. Mitt Romney. NextGen also had a chance to see the sights as they walked through the National Mall and visited local attractions. The NextGen class was composed of the following: • Danny Labrum, Labrum Chevrolet • Jared Wade, Stephen Wade Auto • Savannah Labrum, Labrum Chevrolet • Ben Murdock, Murdock Group • Stephen Hemmersmeier, Jerry Seiner • Cam Watson, John Watson Chev • Josh Garff, Ken Garff Auto • Craig Bickmore, New Car Dealers of UT • Jason Bickmore, New Car Dealers of UT We are looking forward to another great NextGen trip in March of 2024. See photos from their visit on the next page. Essential cleaning products to keep Utah customers and employees safe since 1991. Prepare your showroom, service department and cleaning bay areas to move effectively into the future. Contact us today to see how we can help you shine! (800) 488-2436 | Salt Lake City, UT brodychemical.com 7 UTAH AUTO DEALER

NextGen Visits WASHINGTON, D.C. 8 UTAH AUTO DEALER

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PARTNERSHIPS HELP Dealers Succeed BY SHARON KITZMAN, DOMINION DMS Ideally, vendors and businesses work together as partners. Having a genuine relationship and being able to problem-solve together is an advantage no matter what. The auto business is not exempt. Dealerships have done well during the last couple of years. But there’s a downside to good times: dealerships sometimes develop bad habits because it becomes so easy to wait for customers to come to them instead of going out and finding new ones. Without leadership and a good plan, teams can fall apart quickly. As John C. Maxwell said, “Teamwork makes the dream work, but the vision becomes a nightmare when the leader has a big dream and a bad team.” Having a vendor as an ally in business can play a crucial role in the success or failure of an organization. Organizations should work to strengthen their vendor relationships in the same manner that they focus on team development and fostering customer loyalty. Once your goals are set and your vendor has committed to working with you, it’s important to maximize the relationships so you continue to get the most out of your tools. Here’s how to keep relationships going so you see the best results. Team Training and Support Working with vendors to come up with a well-thought-out training plan for your team helps with integrating new products into your dealership. At times, it can be hard to implement new tools because daily routines are set, and everyone is pressed for time. That’s why it’s important to work closely with your vendor to set your team up for success. When possible, bring in a vendor representative to train and educate your employees. That way, everyone understands how to use the new product. Key Performance Indicators (KPIs) Vendors should provide you with KPIs. KPIs create targets for your teams to hit, milestones to track progress and insights to help organizations make better decisions. Using feedback from KPIs will help you to continually improve performance. Communication Set up regular check-ins with vendors to talk about what’s working and what’s not. This is where you can get the help you need. A receptive vendor will use your feedback to improve its product, so be honest. It is also important to establish open channels of communication for your team to ensure everyone using the vendor tools knows how to get help if they need it. Long-Term Training Training is not simply finished after the initial setup. Follow-up training from your vendor is important because it allows your team to give feedback, get questions answered and allows for training as the product develops new features. You’ll keep your staff engaged and maximize the value of your dealership tools. A good vendor is there to help you achieve your goals, so make sure to stay on the same page, keep your communication going and continue to look for ways tools can benefit your dealership. Having a great relationship with a vendor who has a vested interest in your business can prove to be beneficial in a number of ways. 11 UTAH AUTO DEALER

Cost Savings Being a good customer — with consistent orders and on-time payments — can lead to vendors offering volume discounts and having special deals. Timely Deliveries In order for you to meet your obligations and provide excellent customer service, you need to have the tools you need delivered on time. That’s what’s great about having a good relationship with your vendor, they will prioritize you. Vendors will deliver the goods ahead of time. In addition, they’ll make sure that you get the best training and will follow up. Vendor Support When issues arise, the vendor will be prompt in their responses. More than likely, they’ll go beyond the basics to address your problem and compensate you for your trouble. Customization As your vendor begins to understand your business, they can provide you with unique and customized products that can create a competitive advantage over other businesses in the marketplace. Customer Satisfaction A strong relationship with your vendor can also impact other relationships, that of your customers and your company. When you deliver goods and services on time and free from issues, your customer relationships will become stronger. This can foster loyalty and trust as they will feel that their money is well-spent. There is more to consider. Recent trends in the auto industry are affecting dealerships, and dealers will have to adapt. What are some of those changes? You already know about an increase in EV sales, but specifics are harder to find. How many will be built, and where will they be distributed? When will the national charging infrastructure become a reality? Additionally, What are the next steps in putting digital technology into ever-more-connected cars? How will tech partnerships with auto manufacturers affect product offerings and sales strategies, including the market for accessories? Also, what progress is being made on autonomous cars? Will interest rates continue to rise? How will that affect the drop in used car prices as market conditions stabilize and supply chains return to normal? What about the regulatory environment? Major changes in finance, insurance and lending have all taken place. How will dealers create a consistent sales experience for customers? Will they refine multi-channel coordinated marketing? Will they go to Gen Z’s current search engine favorite, TikTok? As the market changes, finding low-hanging fruit may be more difficult. Establishing and maintaining solid vendor relationships is vital. Now is the right time to return to selling basics — focusing on customer service while maintaining cost efficiency, quality and developing your market are key. That means using your DMS to give you the information about customers you need. NADA keeps statistics about many aspects of the auto business, but one of those statistics has to do with inventory. About 2% of the people in a dealer database return to the market every month, but that doesn’t mean they return to the dealership where they bought their last car. Very few customers are loyal to a specific dealer, but a good DMS can help you to identify helpful information about customers: When was the last 12 UTAH AUTO DEALER

time they did business, did they buy or lease? Pay cash? Buy insurance? What was their payment range? How do you track your customers who aren’t coming back to your dealership? The technology is now there to know when customers visit other dealers. Dealers can use that information to determine why their customers are going elsewhere and possibly find ways to bring them back. Google Analytics (GA3) is making way for a unified GA4 specification written by the Automotive Standards Council, due in November 2023. Also, you can look forward to tracking across all vendors and outcome-oriented conversion signals that replace clicks. With the pandemic over and concerns about disease fading, how is shared mobility developing? We know fewer people are currently buying new automobiles. Of those who do, they don’t often have much equity in their old one. Will younger people continue to avoid buying or driving cars, or will they finally decide that getting a license and having a car is worth the time and money? What will happen to the subscription-based services manufacturers are experimenting with? Some people are coming in to return leased vehicles and walking out with a substantial check instead of another leased vehicle. If fewer people are buying automobiles, that also means there are fewer used automobiles. Optimizing revenue streams has become critical to staying in business. Dealers and vendor partners both benefit from communicating ideas and solutions for the problems they see. It’s easy to spend time on administrative tasks instead of building relationships and talking with business partners is as important as any other task. Maximizing your vendor relationships will increase your return on your technology investments and keep your dealership ahead of the curve. Finding a balance is key. Sharon Kitzman leads the launch and long-term growth of Dominion DMS. Previously, she managed the strategic direction and product development for Reynolds & Reynolds and Dealertrack. Her experience spans every area of dealership software development, including sales, marketing, product lifecycle management, process reengineering, OEM management, professional services, and customer services. Kitzman is a recognized leader in the automotive industry for her expertise in DMS technology. She received numerous accolades for her leadership, including Automotive News Top 100 Leading Women 2015 and 2020, Auto Remarketing Women in Retail 2021, and AutoSuccess Women at the Wheel 2021. She has a Bachelor of Business Administration from Ohio State University. Listen to our VUE Points podcast to stay up to date with news and current events related to the automotive software and retail industry. https://www.dominiondms.com/podcasts/ Be prepared for the road ahead. Whether you're optimizing operations or preparing for a sale or acquisition, our experienced advisors can help you map the road to success. eidebailly.com/dealerships 13 UTAH AUTO DEALER

Middle-market business transitions are rarely simple, and family dealership transitions are among the most complex. Typically, a dealership begins after one family member opens a dealership and then decides to add more over time. Indeed, successful dealers say the best way to expand wealth in the industry is to increase the number of dealerships held. As the number of dealerships grows, so too does the number of family members involved in the business. An owner’s children may decide to work in the business, and some might even make it their career, while others may choose to work in another field. As their children become adults, dealership owners begin to wonder how they can plan for the succession of their business and the distribution of its assets amongst their children without risking the business itself or family relationships. When owners have multiple dealerships and several children working in the business, they ask, “Should I put my children in business together, should I separate the dealerships and divide them amongst my children, or should I just sell the business altogether?” When owners decide to keep the business, they want to know how to provide for their children with other careers. Take Marty, for instance. He started with one dealership and now has five, with a combined worth estimated at $150 million. Additionally, Marty owns the land where the dealerships are located, which is worth a combined $50 million. Outside the business, Marty has about $10 million in assets, including a $3 million home and a $3 million beach property enjoyed by the entire family. But most of his wealth — like the airplane available to all family members — is tied up in the business. Marty has three children. Alton and Betty grew up working at the dealerships and want to continue working in the family business. While they have quite different personalities, neither can run the business alone. The third child, Carl, is happy with his own career outside the business. Marty’s total estate is $210 million, or $70 million per child. He has three goals: expanding the dealerships under the family name, giving each child a fair share of the wealth, and doing so in a way that maintains family harmony. However, accomplishing these goals may become complicated. For example: If Marty divides his estate by three, there aren’t enough personal assets for Carl to receive an equivalent value to that of his siblings without including some business interest. If all three children receive a third of the business assets, the dealerships may suffer if they disagree on business PLANNING FOR DEALERSHIP SUCCESSION Dividing Multiple Dealerships Amongst Family BY DUNCAN MOSELEY, MANAGING DIRECTOR, BUSINESS TRANSITION ADVISORY GROUP, TRUIST WEALTH 14 UTAH AUTO DEALER

goals. Moreover, Carl may resent salaries paid to his siblings, and they may resent him for taking a third of the profits when he doesn’t contribute. If Alton and Betty can’t run the business together, there isn’t an even number of dealerships to divide between them, and the dealerships may lose value by not being part of a larger group. The airplane and beach home may present a source of conflict if certain family members lose access to an asset they’ve enjoyed for years. And so, Marty is left with two crucial questions: “How do I treat each child fairly? And does the division have to be equal to be fair?” Eight Key Points for a Succession Strategy Interview your children to determine the intent and desires of each. Do they want to work in the business? Can they succeed together? Can they manage the business as a whole? Educate your children about what it means to be in business together. Explain how assets are not equal. Why might a fair share not be an equal share? Why is $20 million in cash not equivalent to a dealership valued at $20 million? Set clear expectations on what your children must do to maximize the benefits of your plan. Involve your children in the business so you can mentor them, assess their capabilities, and examine their ability to work together. Guide your children on managing their own personal financial lives and assess their ability to use the business’s assets responsibly. Set a plan for children not involved in the business. If your children can work together but don’t all want to work in the business, consider including the other children as non-voting owners, communicating clearly what they might receive based on your projected growth strategy. Consider alternative ways to pass value to children who aren’t working in the business. You’ll need a different approach for a child who doesn’t want to be involved with the business or whose involvement would disrupt the family dynamics or the business. Consider options like a life insurance policy, a dividend recapitalization to extract value, selling a business asset (including one or more of the dealerships), or prolonging a growth strategy for the business to keep that child’s inheritance on par with the other children. Discuss your approach with your child, showing your commitment to a fair — but not necessarily equal — distribution to a child who has chosen to pursue other opportunities outside the business. What Are the Keys to Creating a Successful Plan? Time: Allow enough time to prepare the proper strategy. A succession plan is neither created nor accomplished overnight. Education: Ensure you and your children have a thorough understanding of the options available within your business and outside of it so you can structure an appropriate plan. Communication: Set clear expectations for your children, make sure they understand your approach and get their buy-in at every step of the process. Flexibility: Make your plan flexible enough to accommodate changes in your business operations, family dynamics, and personal goals of your children. The Truist Business Transition Advisory Group has helped many dealership owners prepare and successfully transition their businesses, breaking through roadblocks with an integrated approach that leads to success and peace of mind for owners and their families. Developing a transition that supports both the needs of your business and your family ensures your hard work will provide for generations to come. Ready to prepare your dealership succession strategy? Ask your relationship manager about how the Truist Business Transition Advisory Group can help you and your family prepare to successfully transition your dealership. Go to truist.com for more information. Truist Bank, Member FDIC. ©2023 Truist Financial Corporation. Equal Housing Lender. 15 UTAH AUTO DEALER

Service Department Traffic WAYS TO INCREASE YOUR Although your parts and service departments are fixed operations, there are ways to increase traffic and, ultimately, your net profit. The first and most obvious one is keeping expenses down. That could be worth a separate article, but assuming you’ve already done that, the next step is to increase net profit by focusing on creating new business. There are several ways to accomplish this. You could focus on the profit margins for labor and parts sales, increase the number of sales per repair order or increase your repair order count. This article is about the last option, a fancy way of saying you should increase foot traffic. Examine Capacity Challenges We would all like to think that the pandemic is behind us; however, pandemic-related consequences continue. The shutdown prevented many people from maintaining their vehicles on time, and many owners are still playing catchup. The auto parts supply chain is still dealing with shortages, thanks partly to a brittle and arguably too-long path between the factory and the service department and partly to shutdowns and employee shortages. Currently, there aren’t enough loaner cars because many businesses sold off their fleets to generate needed income and haven’t been able to replace them. Thanks to labor shortages, some auto dealership service departments are understaffed. These are problems you can’t always solve at the dealership level, although many experts are working to remedy them. The J.D. Power 2022 U.S. Customer Service Index Study was released March 9, 2023. It contained some interesting information. For example, wait times for service appointments have increased. It now takes approximately 5.6 days for premium cars one-to-three years old and 4.8 days for mass-market vehicles oneto-three years old. That’s an increase of almost two full days. According to the report, delays are due to the increasing volume of EVs being serviced resulting in the first customer satisfaction decline in nearly 30 years. Why not take that hard truth and make it work for you? Now is the time to stand out from the crowd. Most dealerships work hard for a positive relationship with their customers. People who view the dealership warmly and know from first-hand experience how much it does for its customers and the community will react well when you need patience from them. Friends are good to friends. As the market continues to shift toward EVs, be aware that there’s an opportunity for better service. According to the J.D. Power study, people who own gas- or diesel-powered vehicles marked their overall service satisfaction at 852. For EV owners, it was only 784. Remember, many of those EVs are Teslas coming out of gigafactories in California, Nevada and New York. A lower satisfaction rating might indicate that Tesla’s customers are missing the service they used to get from dealership service departments. Never underestimate the power of keeping customers happy. Continued on page 18 16 UTAH AUTO DEALER

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Communicate Surprisingly, the survey found that communicating with customers keeps them happy. Customer satisfaction improves if service departments are proactive about communication and send texts or emails about unresolved problems. If a dealership problem affects customers, consider being preemptive about it and reassure them that you are working hard to resolve the issues. Increase Productivity Finding technicians without enough to go around can take some creativity. Focus on the following: treat techs well, consider hiring more diversely, and take an interest in programs at local schools. Do what you can to create a pipeline, hire more women and minorities, mentor young techs and help create satisfying career paths for them. Master techs are great, but you don’t need a master tech for every job. Instead, hire “B” and “C” level techs to handle repairs and maintenance. You can increase the work capacity that your service shop has by hiring just one tech. In turn, having one more tech reduces the customer wait time and can generally increase gross profit by about $10,000 per month. Even if you focus on hiring less-experienced techs, they will, in most cases, improve their skills over time. Schedule Appointments Get customers into the shop as soon as possible by scheduling an appointment for them when they call. For the dealership to be as competitive as possible, the appointment must be that day or the next. Until a tech looks at the problem, you can’t expect to provide them with an accurate diagnosis. And, if customers can’t get their vehicle into the shop immediately, they may call the aftermarket competition. Therefore, whoever handles calls — a service adviser, an appointment coordinator or someone else — should have only one primary assignment: scheduling appointments. Make Communicating Easier Many technology channels have made it much easier to communicate with customers than ever before. Set things up so people can make appointments online or through an app. Ease payments by putting that online, too. Send text messages and videos about repair work. People like getting a video or photo that shows them repair work to be done, and when you send some photographic evidence to them, they are three times more likely to agree to the work. Use Valets or Send Technicians People have always liked personalized service. Be willing to send a valet to collect a vehicle. Alternatively, send a technician to the vehicle’s location. Owners who use valet or mobile service rated their overall higher in customer satisfaction. Call No-Shows No-shows are a fact of life. People get busy, and they forget what they’ve scheduled. However, there’s a lot you can do to reduce the number of no-shows. Send a confirmation text when someone makes an appointment and a final one on or before the appointment day. If a customer doesn’t show up despite the text messages, have someone call them to reschedule. Follow Up on Special Order Parts Sometimes repairs can’t be made until an ordered part arrives. You may send the customer a postcard to let them know the part came in, but don’t stop there. Someone from the dealership should also call the customer to make an appointment. Too many dealerships don’t follow up with customers about parts orders. As a result, they sometimes have a large inventory of never-installed obsolete parts. Try to get the parts installed on the vehicles that prompted the order as much as possible. Make Routine Service Appointments When customers come in for an appointment, you ideally want them to return later for routine maintenance. Talk with customers about the next required maintenance and give them the option of making their next service appointment before they leave. The appointment can be time- or mileage-based. If you implement these strategies, the repair order count may increase by at least 10%. If the service department normally performs 400 repairs a month, after hiring a new tech and increasing the dealership’s focus on following up, the number could increase to 440. In a year, the extra 40 repairs per month could add up to 480 repairs. And the extra money will head straight to your bottom line. Never underestimate the power of keeping customers happy. Continued from page 16 18 UTAH AUTO DEALER

RETAIL WARRANTY REIMBURSEMENT ARMATUS WORKS WITH 50% OF UTAH DEALERS ON AVERAGE, UTAH DEALERS ADDED $89,028 IN LABOR UPLIFT ANNUALLY ON AVERAGE, UTAH DEALERS ADDED $87,720 IN PARTS UPLIFT ANNUALLY ARMATUS HAS COMPLETED OVER 129 SUBMISSIONS IN UTAH The new Utah Warranty Reimbursement law went into effect on May 4th, 2023. While some dealers were previously able to submit for retail reimbursement under the old law, the new law provides significant advantages to help you achieve your true retail rates and all dealers should be taking advantage of this opportunity. Reach out to us today for a no-obligation evaluation of your parts and labor rates. OUR COMMITMENT TO OUR CLIENTS: ÙYou Won’t Lift a Finger: Armatus does all the work for you. ÙFully Contingent Fee: You only pay when you are approved. ÙSpeed and Accuracy: No one can complete a submission faster. ÙData Governance: Your customer information is safe with us. (888) 477-2228 info@dealeruplift.com WWW.DEALERUPLIFT.COM

Utah’s Gas Tax and Registration Fees As EVs and hybrid cars become more common on roadways, states across the nation are faced with coming up with ways to replace the fuel tax that they would have received from the purchase of gasoline. Traditionally, the tax monies that are collected from fuel purchases are used to help fund the maintenance and construction of state and local roads. With the loss in tax revenue, states need to find ways to keep their roads maintained and infrastructure growing to accommodate population growth. The looming and imminent threat of an ever-widening gap between states’ gas tax proceeds and their transportation budgets has led to some hard conversations. Many states have implemented stopgap measures, including imposing additional taxes and registration fees on EVs and adding per-kilowatt-hour taxes to electricity accessed at public charging stations. Over the past few years, Utah legislators have considered a number of options to shore up road funding. These include raising vehicle registration fees, higher gas taxes, using money from the state’s general funds or creating more toll roads, all of which have been unpopular in polling. The federal government is not exempt from these revenue losses and is about to launch a pilot Road Usage Charge program, funded by $125 million from the infrastructure measure President Biden signed into law in November 2021. The program is a payper-mile charge instead of a tax paid per gallon on fuel. There is some consumer skepticism when it comes to the Road Usage Charge program as a tracking device is placed on the vehicle to track trips and driving performance, including braking, cornering and speed. The program also provides each user with a driving score and mileage reporting for road usage. As of today, Utah, Oregon and Virginia have adopted and are generating revenue from road usage charges. Utah’s Road Usage Charge program in Utah is voluntary for electric vehicle owners. WHAT YOU NEED TO KNOW ABOUT Continued on page 22 20 UTAH AUTO DEALER

For over 24 years, First Innovations has focused on growth through getting better, not growth through acquisitions. We understand that Bigger is Not Better, Better is Better. First Innovations is dedicated to providing personalized value driven support with Better Products, Better Price and Better Service. Every account is valued and not just a number on some large conglomerates balance sheet. YOU are important to us and there is no structure, product, or program that we don’t have. First Innovations remains unapologetic for its hands on personal holistic approach to dealership income and personnel development. First Innovations, Inc. —The Full Dealership Income and Wealth Development Company Better Products • Better Prices • Better Service With all of today’s mergers and acquisitions there are two important questions YOU need to ask yourself.  Does your provider’s merger or acquisition by a larger Private Equity or Publicly traded company make YOUR business better? a. Have your costs gone down? b. Has your level of service increased? c. Are your results improving because of the merger? d. Do you now feel more like a Small Fish in a bigger pond? e. Do you work directly with the Administrator / Provider, or thru independent general agents. We ONLY use direct employees! No middleman commissions or conflict of interest.  What is the Mission Statement of the controlling entity long term? a. Are they building a company to LAST or a company to sell again? b. Are you going to have to go through provider ownership transitions every 4-6 years? c. Are they cutting long term employees and expenses from the acquired providers to drive up their EBITDA for resale valuation? First Innovations (part of the First Group Family of Companies) has spent over 24 years building a company to LAST, NOT RESALE, and our Vision and Mission statements have not changed. We are growing ONE VALUED CLIENT AT A TIME. OVER $100 BILLION IN ASSETS BACKING US! 1-800-395-8664 www.firstinnovations.com “INNOVATIVE AUTOMOTIVE SOLUTIONS AT WORK”

ONE LAST THING ... Did you know that you can enjoy your association news anytime, anywhere? Scan the QR code or visit: utah-auto-dealer.thenewslinkgroup.org Check it out! The new online article build-outs allow you to: • Stay up to date with the latest association news • Share your favorite articles to social channels • Email articles to friends or colleagues There is still a flipping book for those of you who prefer swiping and a downloadable PDF. Utah’s Road Usage Charge is a potential replacement for the fuel tax, helping to provide a sustainable funding mechanism to build and maintain Utah’s roads. Every year, the number of vehicles and miles traveled on Utah roads continues to increase, putting more wear and tear on the roads and increasing roadway maintenance costs. However, the value of the fuel tax is eroding as vehicles become more fuel efficient and operate on alternative fuels. To add context, during the 2018 Legislative session, Utah lawmakers instituted an alternative fuel vehicle fee to cover a portion of those vehicles’ contribution to building and maintaining Utah’s transportation system. This fee is in addition to the annual vehicle registration fee assessed on all vehicles in the State. Utah’s Road Usage Charge provides a choice for owners of alternative fuel vehicles to pay by the mile in lieu of paying the alternative fuel vehicle fee. According to Utah’s Unified Transportation Plan, between 2019 and 2050, the estimated total transportation need in Utah is $108.5 billion. This estimate includes the funding needed to operate our current transportation system. This includes preserving and maintaining infrastructure, including funding to meet growing travel demands by increasing roadway capacity by building new roads and widening and making operational enhancements to existing roads. It also focuses on increasing transit capacity by building new transit lines, upgrading existing lines and providing more frequent rail and bus service, and increasing options to bike or walk by constructing new bikeways and improving existing trails and walkways. Utah state’s transportation partners have developed a Unified Plan Financial Model. The plan assumes that the revenues coming from transportation user fees — such as the current motor fuel tax or a replacement, like a road usage charge — will continue and grow gradually over time. Today, with Utah’s Road Usage Charge program, drivers can choose to continue to pay the flat fee for alternative fuel vehicles or enroll in the program to pay for road usage based on the number of miles they drive, up to the amount of the set flat fee. Simply put, if you drive less, you pay less. People who drive relatively few miles can save money by paying 1.00 cents per mile instead of paying the flat fee at registration time. You’ll never pay more in the program, but you may pay less. As of Jan. 1, 2023, only fully electric cars are eligible to enroll in Utah’s Road Usage Charge program. This change allows all gasoline hybrid and plug-in hybrid vehicles that were already enrolled in the program to be grandfathered in. Enrollment is easy. Simply visit https://roadusagecharge.utah.gov/enroll.php, and fill out your information, install the tracker and download the app to your smartphone and start driving. Continued from page 20 22 UTAH AUTO DEALER

Plan ahead for your dealership’s long-term legacy Setting up a succession plan is an important consideration for the future of your dealership. Now’s the time to think about your priorities, such as maintaining control, taxes, liquidity, employees and family. What would you like the power to do?® Learn more with our comprehensive overview of Dealer Financial Services Succession Planning at business.bofa.com/dealer. “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. 4882341 05-22-0512 “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. 4882341 05-22-0512

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