Pub. 2 2019-2020 Issue 4

6 NCDU: A Value Proposition R ecently we had a conversation with a dealer who asked, “why does the association get involved with so many things that look on the surface to take away our focus from the most important reason we exist, the legislative and government relations?” We are grateful for the opportunity to explain what the association does and how it functions. NCDU is 100% committed to protecting the dealers and the franchise system that has been and will continue to be the premier model to sell and service vehicles to the motoring public. There is no better way to efficiently and professionally distribute automobiles and the products that accompany them, such as competitive financing and other products, than through a franchised dealer. Depending on which statistic is used, the new car dealers in Utah generate between 14% and 17% of the taxable sales for the state. That is an incredible number, which is a vital foundation block for Utah’s economy. Since 1979, when the franchise law was first established, to the re-write of the franchise law in 1996, the association has continued to amend the law to keep ahead of the manufacturer’s attempts to weaken the dealer network, push their costs on to us and control the free enterprise principles that make us successful. It has been our role and responsibility to keep the integrity of the franchise system intact. So how does the association function so that the New Car Dealer franchise system remains strong and prosperous? Here are some of the things that the association does to ensure its legislative and government relations success: • Most importantly, we realize that the new car dealers’ lifeblood in Utah is the franchise system. Only the dealers and the association will do whatever it takes to protect and preserve it. We have others that will lend a hand, but the heavy lifts have always come from us. • The success of our association’s governmental efforts has always depended upon our members’ support for all of our legislative efforts. Meetings at the capital, hosting legislators at your dealerships, serving on boards and commissions, running for political office, attending dealer meetings across the state, and being a part of other meaningful functions and activities are critical. • We understand the importance of personal relationships with the legislature and government agencies that oversee our industry. • Alongwith the dealers’ contacts and the teamat NCDU, we knowand deal with the vast majority of the 104 Utah legislators on a first name basis andmaintain an excellent relationship with all of the government divisions who oversee our industry. • Since 1994, we have not increased our dues. In 1998 we actually reduced dues by 25% asking dealers to instead put that money into our association PAC to help pro-business candidates be elected. • Over the past six years, we have spent over $400,000 above and beyond our normal budget to stave off legislative efforts that potentially had the effect of eliminating the franchise law, including all the legislation surrounding the Tesla issue. • From the standpoint of value of our franchise law, consider the unreimbursed expenses that your dealerships would not be able to recoup if we did not have a fair and equitable warranty and parts reimbursement at retail. How much would that cost per store? • One of the great benefits over the last 21 years has been the Saturday/Sunday closing law that gives the dealers and their employees a six-day work cycle. This eliminates employee burn out as well as reduced expenses which directly impact customers with lower costs • We retain excellent legal counsel to keep us current on the relevant automotive issues • Our relationship with NADA’s legal and legislative staff is as good as any association in the country. NCDU played a significant role along with NADA and others to pass the 2017 federal tax bill that kept floor plan interest as a deductible business expense. This means over 650 million dollars in tax savings annually to the dealers throughout the United States • Throughout the year, staff members of NCDU attend national legal and legislative meetings, participate in