Montana Automobile Dealers Association

Transcription

Montana Automobile
Dealers Association
OCTOBER 2015 NEWS BULLETIN
Montana Automobile
Heath Insurance New PTTN Plan?
Dealers
Association
I am not sure if all dealers are aware of how hard your
another plan to completely remodel the
MADA Insurance Trust is working to keep your health costs
down by asking questions like, “why do hospitals bill us at
5 or 6 times what they bill Medicare?” “Wouldn’t double or
three times Medicare be fair since hospitals file annually and
state that Medicare billing is their cost, and why are these
‘non-profit’ hospitals making so much money and building
so many buildings?” Your Insurance Trust has been meeting,
or having conference calls almost weekly to fight this fight
for YOU and to keep your employee health costs down in the
future. Some hospitals in Helena, Great Falls and Kalispell
are fighting tooth and nail to KEEP their excessive profits
so they can continue to build new buildings all over the
place. In Bozeman we have a brand new Doctors Office high
rise facility being completed to the south of the hospital, a
brand new 43,000 sq ft full hospital being built in Big Sky
($12M+). They have just announced a new 9-acre 37,000 sq
ft Medical Campus being built in Belgrade ($10M) and now
intensive care unit in Bozeman ($10M),
we must be really sick around here.
Our ELAP billing review process for
Joe Billion
hospitals has definitely caused a stir and is MTADA President
definitely a hassle for some. The good news
is the fact that we have saved our MADA Health Plan over
1.3 million in excessive billing claims and that means that
those dealers in the trust will receive an overall 5% decrease
for 2016, BECAUSE we continue to fight for “fairness in
billing” for YOU and your employees!
Now, every fight is difficult. Every fight takes energy and
effort. Your MTADA Directors and the Insurance Trust
members are fighting this fight for YOU. Other associations
needing to survive and control costs are jumping on board
the ELAP train! The hospitals hate ELAP and will do
everything that they can to stop it. As one executive put
it, “we are doing the Lord’s work here to keep health costs
down”.
So, we have two choices as an association. We can give in to
pressure, and give up this fight. I call that plan the “MTADA
PTTN PLAN” or “pay through the nose plan”. That means
that next year, we could decide to just pay whatever the
Continued on PAGE 10
IN THIS ISSUE
NADA Update: Consumer Voices are
Centerpiece of NADA Financing Advocacy
p2
Chairman’s Message: 17 Million Reasons Auto
Sales will Remain Healthy
p2
Legal Update: OEM Responsibility...
p3
Don’t Fall for Winter
p4
Dealer’s Corner
p6
and more!
Montana Automobile Dealers Association • 501 North Sanders • Helena Montana • 406.442.1233
Montana Automobile
Dealers Association
NADA UPDATE
Consumer Voices are
Centerpiece of NADA
Advocacy on Financing
In new NADA initiative, consumers tell their own stories of
saving on financing at the dealership
The stories of real consumers who saved money by financing
new vehicle purchases through local dealerships are at the
center of an initiative by the National Automobile Dealers
Association (NADA) to showcase the true economic value of
dealer-assisted financing.
Through video testimonials and a new website - nada.org/
autofinance - NADA is bringing the voices of consumers
back into the debate over dealer-assisted financing. Dealers
have been fighting to preserve the fiercely competitive, proconsumer financing model ever since it came under threat
from the Consumer Financial Protection Bureau (CFPB) in
2013.
“Consumers save money every day when they finance
through dealerships, but that truth is getting lost in
Washington, and that needs to change,” said NADA President
Peter Welch. “The stories that we’re
highlighting are far from unique. Dealers
across the country save consumers money
every day, and right now Washington
is failing to understand what’s at stake
Bill Underriner
for these consumers and millions more
NADA Director
if competition is stifled and dealers are
prevented from offering discounts on financing.”
In today’s vehicle finance market, local dealerships are able
to shop a customer’s credit application to dozens of lenders
all competing for the same loan. As a result, dealers usually
offer better interest rates than consumers can find on their
own. Furthermore, dealers have the ability
to discount their rates to meet or beat a
competing credit offer, which results in
further savings for consumers.
Yet despite the fact that every day
thousands of consumers save money
on new vehicle purchases when they
Please stay involved
choose financing through their local
and in touch.
dealerships, the CFPB is pressuring
Bill Underriner
NADA Director
lenders to eliminate the dealer discounts
406.255.2350
that are a primary driver of these
consumer savings.
Continued on PAGE 9
CHAIRMAN’S MESSAGE: 17 Million Reasons
Why Auto Sales Will Remain Healthy
If you want to gauge the economic health of the country,
look no further than the retail-auto industry as an
economic indicator. The seasonally adjusted annual rate
(SAAR) for August soared to 17.8 million—the highest
pace since July 2005 and the strongest month in the
industry’s six-year recovery since the recession.
NADA predicts sales of nearly 17.2 million new cars
and light trucks this year. And the used-vehicle market
is improving as well. New-car dealerships will retail a
combined 31 million new and used vehicles this year, an
increase of 3.3 percent from 2014.
Particular factors have lined up to make it possible
for consumers to make purchases, including steady
employment growth, low gasoline prices and favorable
financing rates on auto loans that will continue.
Despite the robust growth, the industry should be aware
of the generational shift in car-buying demographics.
Generation Y—the cohort born after 1980—will soon
become the majority of consumers, and this could present
challenges to the long-term growth in auto retailing.
2
NADA’s chief economist, Steven
Szakaly, believes it will take up to four
millennials to replace the spending
power of just one baby boomer in the
Bill Fox
2015 NADA Chairman
retail marketplace. He also cites the
problematic wage gap between baby
boomers and millennials. Generation Y may encounter
stagnating wages—along with increasing vehicle sales
prices—that can pose challenges for new-car purchases.
Millennials are also far more likely to keep their cars for a
longer period of time compared to previous generations.
No matter the changing conditions, the dealer business is
part of the backbone of our nation’s economy. Franchised
dealerships are vital American businesses that support
individual communities and the nation as a whole. Dealers
employ more than 1 million people, providing well-paying
jobs that cannot be outsourced.
And we expect the sales momentum to continue into 2016,
which could be a record year for new-vehicle sales. n
OCTOBER 2015 MTADA NEWS BULLETIN
Montana Automobile
Dealers Association
LEGAL UPDATE
OEM Responsibility to Repurchase Inventory,
Parts and Special Tools on Termination
of the Sales and Service Agreement
As we’ve worked through some Purchase and Sales
Agreements recently we have observed that selling
dealers are unclear about the extent of the manufacturer
responsibility to repurchase inventory, parts, special tools
and signage upon termination of the Sales and Service
Agreement. Parts return is dealt with in all Sales and Service
Agreements in one form or another. However, generally
speaking no mention is made of vehicle inventory, signage
or special tools.
The most common scenario where the issue arises is
where the purchasing dealer agrees to acquire most of the
inventory, parts, signage and special tools. However, in
many cases the sale leaves the selling dealer with some of
the parts inventory.
The Montana Code addresses the manufacturer’s
responsibilities AND TRUMPS the provisions of the OEM’s
Standard Terms and Conditions. The applicable code
sections are Mont. Code Ann. §30-11-702 and 705 which
provide:
30-11-702. Repurchase of inventory items upon
cancellation of dealership or distribution contract. (1) If a
retailer enters into a written dealership contract and either
the wholesaler, manufacturer, distributor, or retailer cancels
the contract, such wholesaler, manufacturer, or distributor
shall, at the retailer’s request, pay to the retailer, or credit
to the retailer’s account if the retailer has outstanding any
sums owing the wholesaler, manufacturer, or distributor, an
amount equal to:
(a) 100% of the net cost of all new, unused, undamaged,
and complete inventory items held by the dealer at the
time of cancellation, plus cost of freight to return the
inventory; and
(b) 100% of the current net price of each repair part
carried on the most recent price list or catalog or the last
catalog or price list in which the repair part was listed as
provided by the manufacturer or distributor and held by
the dealer at the time of cancellation, plus cost of freight to
return the repair parts. (emp. suppl.)
R. J. “Jim” Sewell, Jr.
MTADA General Counsel
3011-705. Reimbursement for or repurchase of signs, special
equipment, and special tools. Upon the termination,
cancellation, nonrenewal, or refusal to continue a dealership
contract by a wholesaler, manufacturer, or distributor,
the wholesaler, manufacturer, or distributor shall pay the
retailer:
(1) the original cost, adjusted for the remaining useful life,
of each sign owned by the retailer that bears a common
name, trade name, or trademark of the wholesaler,
manufacturer, or distributor, if the acquisition of the
sign was recommended or required by the wholesaler,
manufacturer, or distributor;
(2) (a) the original cost, adjusted for the remaining
useful life, of all special equipment and special tools
purchased or leased by the retailer that were acquired from
the wholesaler, manufacturer, or distributor or sources
approved by the wholesaler, manufacturer, or distributor
and that were recommended or required by the wholesaler,
manufacturer, or distributor; or (b) if the special equipment
has a service agreement or the special tools are leased by
the retailer, the amounts that are required to terminate the
service agreement or the lease under the terms of the service
or lease agreement; and
(3) the costof transporting, handling, packing, and loading
the signs, special equipment, and special tools. (emp. sup.)
The only parts the dealer is not entitled to return are
described in Mont. Code Ann. §30-11-703.
30-11-703. Excepted inventory. The following inventory is
not subject to the repurchase requirements of 30-11-702:
(1) any repair part that has a limited storage life or is
otherwise subject to deterioration, such as rubber items,
gaskets, or wet-charge batteries;
(2) any repair part that is in a broken or damaged package;
(3) any single repair part that is priced as a set of two or
more items;
(4) any repair part that because of its condition is not
Continued on PAGE 7
3
Montana Automobile
Dealers Association
DON’T FALL FOR WINTER
Courtesy of
SafetySmart.com
WHAT’S AT STAKE
In cold weather conditions, people are usually careful to
put winter tires on the car and to drive according to road
conditions, but they don’t always exercise the same caution
when walking across snowy, icy or wet surfaces.
WHAT’S THE DANGER
Many falls on snow or ice occur so quickly that the person
has no time to react and is on the ground and in pain
before realizing what’s happened. Serious injuries and even
death may occur when someone’s body crashes onto a snow
or ice-covered surface.
EXAMPLE
Five minutes late for a critical meeting, Joan scrambles
from her car and begins to run across the parking lot. She
isn’t thinking about anything except how unimpressed her
new boss will be by her lateness. Joan is taken completely
by surprise when her legs shoot out from under her and her
head crashes onto the icy pavement.
HOW TO PROTECT YOURSELF
• When walking on slippery surfaces slow down and take
smaller steps.
• Don’t assume that just because you have the right-ofway, traffic will stop. Many drivers travel too fast for road
conditions and can’t stop in time for pedestrians.
• Keep both hands free to help you maintain your balance.
Don’t keep your hands in your pockets as you walk.
• Watch where you are walking, especially for potential
trouble spots such as stairways or ramps.
• Be careful when stepping into or out of vehicles. Keep a
tight grip on hand holds.
• Immediately report slippery surfaces that you encounter
on sidewalks or parking lots surrounding your
workplace or at building entrances.
• Wear the right footwear for the conditions. Shoes or
boots should have slip-resistant soles with plenty of
tread.
• While working at heights in winter conditions, use
extreme caution. Ensure that ladder rungs and scaffold
decks are kept clear of snow.
4
• Always use handrails on stairways.
• Don’t take shortcuts across piles of snow or areas that
haven’t been cleared and salted/sanded.
• Once inside, carefully wipe your footwear on the entry
mat to remove snow or water.
The steps listed above can help keep you upright on slippery
surfaces, but they can’t guarantee that you won’t fall. If you
start to fall:
• Avoid putting your arms out to break your fall. You are
likely to break an arm or wrist. Instead, relax, go limp
and let your thighs, hips and shoulders contact the
ground in sequence.
• If you fall backwards, try to keep your head forward
(raised) to reduce the chances of striking it on a hard
surface.
FINAL WORD
Walking seems fairly automatic, but you can’t afford to
be on auto-pilot when walking in winter conditions. Slow
down and watch where you are going. n
OCTOBER 2015 MTADA NEWS BULLETIN 4
ATTENTION ALL DEALERS
Montana Automobile
Dealers Association
Please read and understand how this will affect your business
These amendments are going into effect on October 1st, 2015
This past legislative session the following changes were
made to Montana Code Annotated section 61-4-104 in
regards to Record of purchase or sale of a vehicle:
(2) (a) Except as provided in subsection (2) (b), a
dealer, wholesaler, or auto auction must also have the
actual or a readily accessible photocopy, electronic
copy, or digital copy of the actual assigned certificate
of ownership, certificate of title, or manufacture’s
certificate of origin from the owner of each vehicle in
which the dealer, wholesaler, or auto auction from the
time the vehicle is delivered to the dealer, wholesaler, or
auto auction until it has been disposed of by the dealer,
wholesaler, or auto auction.
(b) A dealer may offer for sale or may sell or exchange
a vehicle without having the assigned certificate of
ownership, certificate of title, or manufacturer’s
certificate of origin if: (i) The dealer has applied for
the title as provided in Title 61, Chapter 3, part 2; or
(ii)the vehicle is financed by the dealer as inventory
through a financial institution, the financial institution
holds the certificate of ownership, certificate of title, or
manufacturer’s certificate of origin as collateral, and
the dealer has a readily accessible photocopy, electronic
copy, or digital copy of the certificate of ownership,
certificate of title, or manufacturer’s certificate of
origin.
(3) It is a violation of this part for a dealer, wholesaler,
or auto auction to fail to: (a) take assignment of
the certificate of ownership, certificate of title, or
manufacturer’s certificate of origin for a vehicle
acquired by the dealer, wholesaler or auto auction;
or (b) assign the certificate of ownership, certificate
of title, or manufacturer’s certificate of origin for any
vehicle sold in which the dealer, wholesaler, or auto
auction has a property interest.
(4) (a) Except as provided in subsection (4) (b), all
records required to be kept in accordance with this
section, and the odometer disclosure information
required to be retained under 61-3-206(4), must
be physically located and maintained at or readily
accessible within the building referred to in 61-4-101.
(b) A dealer, wholesaler, or auto auction that does not
maintain the actual certificate of ownership, certificate
of title, or manufacturer’s certificate of origin at the
building referred to in 61-4-101 shall maintain a
readily accessible record of the certificate of ownership,
certificate of title, or manufacturer’s certificate of
origin at the building.
(c) For the purposes of this section, “readily accessible”
means available in paper form or in an electronic, or
digital format.
(5) An authorized representative of the department,
upon presentation of the representative’s credentials,
may inspect and have access to and copy any records
required under this chapter.
Don’t Fall for Winter Quiz
1. If the traffic signal says “walk”, it’s safe to walk, even if
the roads are slippery. True? False?
2. Smooth indoor surfaces, such as tiled hallways, can be
every bit as slippery as icy sidewalks if snow or ice from
people’s footwear melts onto them. True? False?
3. Wearing footwear with smooth soles is your safest bet
while walking across slippery surfaces. True? False?
What Would You Do? You almost slip on an ice patch leading
to a side entrance to your building. You see the maintenance
guy clearing walks around the front of your building, but you
would rather be inside, warm, with a cup of coffee. Should
you assume that the maintenance person will find and sand
or salt the slippery area? Should you make the effort to walk
around the building and tell him about it?
4. If you fall, you should put your arms out to protect
yourself. True? False?
5. When falling backwards, you should try to raise your
head upwards to reduce the chances of smacking your
head against the concrete. True? False?
5
Montana Automobile
Dealers Association
DEALERS CORNER
Helena Motors Matches Grant for Helena Food Share
H
elena Motors has matched a $2,500 grant the Toyota Dealer Match Program has awarded to Helena Food Share. The grant will support the
Kid Packs program, which is designed to address hunger over the weekend in
elementary school students. The gift from Helena Motors and Toyota ensures
over 18,000 Kid Packs include peanut butter this academic year.
Helena Motors presented a check for the matching funds September 4th at
the dealership.
The Kid Packs program sends packages of kid-friendly foods home with
elementary students on Friday each week of the school year. The packs are
built with foods such as low-sugar granola bars, fruit cups, shelf stable milk,
juice boxes, regular Cheerios and Kraft Easy Mac.
Every elementary school in Helena and East Helena partners with Helena
Food Share to provide 900 local students with Kid Packs every week.
Last academic year, 32,000 Kid Packs were distributed. Helena food Share
was established in 1987. One in there of the people served by the agency is a
child under the age of 18. The agency distributes an average 5,000 pounds of
groceries every day. Helena Food Share is a community-based organization,
with over 98 percent of all support coming from the generosity of individual
donors and community partners. n Reprinted by Permission. Helena Independent Record
Billings-Based Underriner Motors Buys
Two Oregon Auto Dealerships
Underriner Motors bought two Oregon auto dealerships this
week, the latest expansion for the growing Billings-based
dealer.
West End, at the corner of Zoo Drive and the Interstate 90
exit. He sells Buick, Hyundai and Volvo vehicles there. He
also bought a Honda store in Walla Walla, Wash., last year.
Owner Bill Underriner said he closed the deal Monday for
Cascade Honda and Cascade Subaru in Klamath Falls, Ore.,
about 15 miles north of the California border.
Underriner had sought to buy Fitchner Chevrolet last year
but lost the bid to Rimrock Auto Group.
The two new dealerships, which have 55 employees in total,
have been renamed Klamath Falls Honda and Klamath Falls
Subaru.
“We’re looking to expand anywhere as deals come along.
We’ve looked at this place since about March,” Underriner
said Tuesday from Klamath Falls, where he’s overseeing the
transition.
His son, Blake Underriner, will manage the Klamath Falls
dealerships. The terms of the deal weren’t disclosed Tuesday.
The expansion comes on the heels of Underriner’s
completion last summer of his new dealership on the Billings
6
Underriner also operates a Honda dealership on the Billings
West End next to the new store, which he had moved from
downtown about six years ago.
In Klamath Falls, a city of about 21,000 people, Underriner
said he’s planning to build new buildings for both of the
dealerships. He added that he’s felt welcomed by Oregonians,
and he expects also to sell to Californians.
“We plan on building the business because we feel there’s
a lot of potential out here. … It feels great. We really like
Klamath Falls. There’s a lot of good people. We’ve got a lot of
good employees,” Underriner said. n
Reprinted by Permission. Erik Olson, Billings Gazette
Montana Automobile
Dealers Association
LEGAL UPDATE:
OEM Responsibility to
Repurchase Inventory, Parts
and Special Tools on
Termination of the Sales
and Service Agreement
CONTINUED FROM PAGE 3
resalable as a new part without
repackaging or reconditioning;
(5) any inventory for which the
retailer is unable to furnish evidence
satisfactory to the wholesaler,
manufacturer, or distributor of title,
free and clear of all claims, liens, and
encumbrances;
(6) any inventory the retailer desires
to keep, if the retailer has a contractual
right to do so;
(7) any inventory item other than a
repair part that is not in essentially
new, unused, undamaged, and
complete condition;
(8) any repair part that is not in new,
unused, or undamaged condition;
(9) any inventory item, other than a
repair part, that has been stocked for
36 months or more prior to notice of
termination of the contract;
M O N TA N A - B A S E D AWA R D W I N N I N G D E S I G N & M A R K E T I N G
C
CINCH
D E S I G N
& C O M M U N I C AT I O N S
Showroom Signage & Interior Displays
Event & Tradeshow Promotion n Customer Marketing & Collateral
Direct Mail n Advertising n Branding
(10) any inventory that was ordered
by the retailer after the date of
notification of termination of the
contract; and
(11) any inventory that was acquired
from any source other than the
wholesaler, manufacturer, or
distributor.
In a nutshell, any part that is three
years old or less, in the original,
unbroken and undamaged package
and in complete condition must be
repurchased. n
www.cinchdesign.com n [email protected] n 406.422.4838
7
Montana Automobile
Dealers Association
Product-Centric—the Millennial Way to Pay
When business slows down, dealerships look at
implementing changes to enhance processes or different
aspects of their business. These days, most of the changes
include adding new technologies to improve such things
as monitoring sales effectiveness or compliance, increasing
service retention, or enhancing the customer experience.
This also leads to a perfect time to implement a new-age
F&I compensation plan called, product-centric – the
millennial way to pay F&I.
If the Business Office has an outdated compensation plan
in place, this can hurt the dealership and today’s customer.
Therefore, it is important to evaluate your current
compensation plan and determine if adopting a more
millennial way to pay your business managers will have a
positive impact for everyone. The number one motivation
for your top producers is compensation, so it is imperative
that you continually monitor your plan to ensure top
numbers!
Before we delve into this any further, let’s take a
moment to gain a better understanding of what
exactly productcentric means, when applied to F&I.
The foundation for putting together this type of
F&I compensation plan can be simplified into five
components.
• Structure – create the right amount of layers to grow and
build from
• People – create a culture that F&I can adapt to
• Process – create consistency when using a proven
F&I delivery process
• Performance – create a pay scale that rewards for
exceeding goals and expectations
• Strategy – create a pay plan that delivers results
A product-centric method provides business managers
with the opportunity to maximize their pay through
performance. For the dealership, this method provides
specific direction for which products are selling well,
which also means clear expectations and accountability
for their profit margins.
When it comes to compensating today’s business manager,
the ability to remove them from non-product-centric
pay plans may not be as complicated as it may seem.
Productcentric is all about products. The compensation
plan will be customized for exactly which products are
offered at your dealership. However, your plan should
8
By Demetrios Lahiri
always include a balanced mix of core products and
Ancillary products. Guidelines on how to create the
perfect recipe are:
1. Simplify the base structure and create the right
balance between reserve income and product income.
This is where the main structure comes into play. Instead
of just targeting one product or more with a much higher
percentage of payout, combine all product offerings into
a category. Once a percentage has been determined, split
it in half and apply it as the base for reserve income.
This provides the Business Office with assurance that all
revenue streams are accounted for. In addition, there will
also be little to no resistance towards this structure, since
compensation is based off of all income sources available.
2. Incorporate performance-based incentives on
products to be sold. This is where the “people, process,
and performance,” or the three Ps, comes into play. It
should be noted, that the three Ps are the most critical
parts when finalizing the product-centric compensation
structure.
At a minimum, focus must be placed on each
product offering with some sort of order, and it is not
recommended to incentivize all F&I products equally.
You should also make sure that the performance-based
rewards offered are truly valuable to your team. You
need to put a lot of consideration into how and what
performance-based incentives are implemented into your
compensation plan, as they should be of value to the
Business Office, and still be in-line with the dealership’s
main objectives.
If you establish a minimum acceptable performance
level per product upfront, it allows the business manager
to place more emphasis and focus on exceeding those
minimums. It can also be very helpful to have at least two
levels of rewards available per product, with possibly a
few caveats. The different levels of rewards can be done as
either a percentage or flat dollar amount per product sold.
Whichever method is selected, it is important to create
an either/or situation when establishing the performance
Continued on PAGE 10
Montana Automobile
NADA UPDATE: Consumer
Voices are Centerpiece of NADA
Advocacy on Financing
“Most consumers know that financing is available at their
local dealership, but what many don’t know is that dealerassisted financing usually saves them money,” Welch added.
“Many policymakers might not realize this either, but once
the savings that comes from dealer discounting is made clear,
it will be hard for Washington to turn a blind eye.”
The CFPB’s efforts to eliminate or restrict dealer discounting
have not included an analysis of the economic impact to
consumers, and continue to be met with increasing scrutiny
by Congress.
Earlier this year, Reps. Frank Guinta (R-N.H.) and Ed
Perlmutter (D-Colo.) introduced legislation - H.R. 1737
- that would promote transparency at the CFPB in order
to help ensure that its policies do not unintentionally hurt
consumers. In July, the legislation, which has 55 Democratic
and 71 Republican cosponsors, passed the House Financial
Services Committee on a 47-10 vote. The bipartisan vote
included the support of 13 of the committee’s 26 Democrats,
and House Republicans have indicated that the bill may come
to the floor for a vote within the coming weeks.
“Our message is getting out, the facts are on our side, and
people are starting to take notice,” said Welch. “But there’s
too much at stake for consumers, so we don’t intend to take
our foot off the gas until we know that consumer rights and
consumer savings are adequately protected.”
Dealer Groups: Fifth Third Settlement Costs
Consumers and Ignores Solution
CFPB cuts consumer discounts as much as one half, again
rejects DOJ model that would ensure credit compliance and
preserve discounts
Leaders of the three major franchised auto dealership
industry groups on Tuesday sharply criticized a settlement
reached between the government and Fifth Third Bank over
allegations of disparate-impact discrimination resulting from
Fifth Third’s policy of allowing dealers to offer consumers
discounts on auto loans.
Under the terms of the consent order, dealers who work with
Fifth Third Bank to help consumers obtain financing on new
vehicles will now be significantly limited in their ability to
get discounted rates at the dealership. As a result, consumers
will lose as much as 1.25 percent of available savings on their
loans.
“By cutting the discount zone so dramatically, the
government has significantly reduced the amount of money
Dealers Association
consumers can save on auto financing at the dealership,”
said Bill Fox, Chairman of the National Automobile Dealers
Association. “Between 70-80 percent of new-car buyers rely
on dealerships to help them find competitive financing,
and the fact is that most consumers get a better rate at
the dealership because of the rate discounts that are only
available at the dealership.”
“Consumers have every right to continue benefiting from a
system that saves them money every day, but bank-by-bank,
percent-by-percent, the CFPB is taking those rights away, and
without giving consumers any say in the matter,” Fox added.
Monday’s announced enforcement action is particularly
egregious given the publication last week of private
documents in which top officials at the Consumer Financial
Protection Bureau admitted that the methodology they use to
bring these enforcement actions systematically overestimates
potential disparities in interest rates paid by minority and
non-minority borrowers.
According to American Banker magazine, “in a series
of private documents... CFPB officials repeatedly
acknowledge its methodology could overcount the potential
discrimination by firms, but say they prefer that to the
alternative where bias is underestimated.”
“We believe there is no room for discrimination in auto
financing. That is why we strongly support the Fair Credit
Compliance Program as viable solution to both protect
consumers and provide fairness to dealers,” said Damon
Lester, President of the National Association of Minority
Automobile Dealers (NAMAD), referring to the Fair Credit
Compliance Program developed by NADA, NAMAD, and
the American International Automobile Dealers Association
(AIADA), and modeled after a program originally
implemented by the Civil Rights Division of the Department
of Justice. “While we appreciate the CFPB’s commitment
to rooting out discrimination, our approach, originally
recommended by the DOJ, will be much more effective
than the arbitrary nature in which the CFPB is currently
proceeding.”
“The CFPB’s approach, which unnecessarily hamstrings
consumers, is truly regrettable given that a viable solution
to fair credit risk that preserves dealer discounts has been
in front of them the whole time,” said AIADA Chairman
Bradley Hoffman. “An array of the industry’s leading
compliance attorneys have said that the NADA/NAMAD/
AIADA Fair Credit Compliance Program is the best way
to address fair credit risk while also preserving the dealer
discounts that save consumers money. Right now, the only
reason we can’t have both is because of the CFPB, and I
think consumers deserve better than what they’re currently
getting out of Washington, D.C.” n
9
Montana Automobile
Dealers Association
NADA UPDATE:
Heath Insurance New PTTN Plan?
hospitals decide to bill us! Probably an extra 2 million
or so could be spent with hospitals in Montana because
of excessive billing! The problem with the PTTN plan is
that when you divide those extra claims over the 900 or
so paying members, it means that EVERY paying heath
member price could see a rate increase of about $200 per
month and families could be double that! IS THIS FIGHT
WORTH IT?
We plan to continue to fight this fight over ELAP! Your
trustees plan to continue to talk or meet weekly, and
continue to stand up for reasonable billing. We stand to
defend YOU! We believe that our fight is CRITICAL to the
survival of private health care, and private alternatives to
Obamacare.
However, let us know your thoughts. If you would prefer
to pay an extra $200/mo per employee or perhaps $400/
mo more per family next year. If you would prefer NOT to
be hassled and have to notify ELAP on any supplemental
billing. If you prefer NOT to discuss the health care reality
with your employees and just pay for the increase yourself,
or just charge it to the employees without a fight, please let
us know.
You can email Bruce Knudsen at [email protected]
and tell him that you would prefer to pay extra for the
PTTN (pay through the nose) for next year! We could very
easily do that! Less hassle for us too! Tell Bruce if you are
tired of fighting and do not mind passing those serious
cost increases every year on to your employees (or paying
them yourself).
If that is what you want, then we can all rest easy in 2016
and stop this fight!
If you feel the opposite, and are against a PTTN hospital
pricing and serious rate increases, please also drop us an
email encouraging us to, “stay the course”, “hang in there”
and “stay strong”. Let us know that you are, “all in”, to help
us with this fight to keep costs down!
AS FOR ME, I SAY ”stay the course”, ”stay strong” and
thanks to the Medical Insurance Trust Members and to
Bruce and his team and the MTADA Board of directors
for their courage and commitment to fight for ALL of us!
ELAP is a hassle, ELAP is a pain, but ELAP is our only
hope to control medical costs in the future! n
Product-Centric—the Millennial Way to Pay
levels. Below is a great example of having two different
levels of rewards:
Illustration based on total units sold:
If less than 50 contracts are sold, with 35%-45% penetration
= X payout
If more than 50 contracts are sold, with 35%-45%
penetration = Y payout
3. Allow room for discretionary bonuses to be applied.
This is where the strategy part comes into play. In
some cases, discretionary bonuses may be a permanent
fixture in the pay plan. In other cases, it may vary from
month to month. In all, this part can be structured in
a multitude of ways to best fit your Business Office’s
culture. Discretionary bonuses can include per vehicle
retailed (PVR)/per rental unit (PRU) achievement,
10
average products per sale, combined penetration indexes,
Customer Satisfactory Index (CSI) scores, total products
sold, or most improved product category. The important
thing to remember is, develop a strategy on how to
enhance the pay plan in order to gain maximum return on
investment.
At the end of the day, product-centric compensation
plans will deliver results. In order to attain these results in
an increasingly competitive environment, the plan must
be well-designed to motivate today’s business managers
and mirror the culture of the dealership. Your dealership,
as a whole, will see direct results and value with the
productcentric compensation plan. n
Montana Automobile
Dealers Association
Montana Automobile
Dealers Association
Snow
Rakes
Before the snow starts to fly,
stock up on Snow Rakes.
These Snow Rakes are perfect for
snow removal and will not scratch
or damage your inventory.
Only $23 plus Shipping
& Handling
Contact Dan Dallas
Field Services Director
406-442-1233
11
Montana Automobile
Dealers Association
Montana
WHEELS FOR YOU
montanawheelsforyou.com
Find
sell
vehicle
auto
a car
your car
research
dealers
$
1000’s OF HOT DEALS ON WHEELS
FROM LOCAL DEALERS
• User-friendly
• Large vehicle photos
• Compare multiple vehicles
• Contact participating dealers
FIND YOURS AT MONTANAWHEELSFORYOU.COM
Print
Online
iPad
Mobile
Car dealers interested in participating on the #1 local vehicle search platform, please call 406-657-1228.
12
Montana Automobile
Dealers Association
2015 MTADA Board of Directors
PRESIDENT
PRESIDENT-ELECT
VICE PRESIDENT
Joe Billion
Billion Auto Group
Bozeman
406-582-7777
Whitney Olson
Bison Motor Co
Great Falls
406-727-2552
Chuck Notbohm
Notbohm Motors
Miles City
406-234-4480
CHAIRMAN
NADA DIRECTOR
DEAC CHAIRMAN
Toby Hubbard
University Motors
Missoula
406-721-4900
Bill Underriner
Underriner Motors
Billings
406-255-2350
Don Kaltschmidt
Don “K” Chevrolet Subaru
Chrysler Dodge Jeep Ram
Whitefish
406-862-2571
EXEC. VICE
PRESIDENT
DIRECTORS
Chuck Notbohm
Notbohm Motors
Miles City
406-234-4480
Bruce Knudsen
MTADA
Helena
406-442-1233
Jim Peterson
Valley Ford
Kalispell
406-755-3673
Joe Billion
Billion Auto Group
Bozeman
406-582-7777
Tony Pierce
Snowy Mountain Motors
Lewistown
406-538-4014
Whitney Olson
Bison Motor Co
Great Falls
406-727-2552
Toby Hubbard
University Motors
Missoula
406-721-4900
13

Montana Automobile Dealers Association

Transcription

Similar documents

Window Sticker

All Warthog sewer tools are sold through StoneAge authorized

IT`S YOUR PROGRAM! OUR GUARANTEE TO YOU: TruServ

HELP THEM HELP YOU! - American International Automobile

Our World is Water

better timing - Simplebooklet

Coleman New Pres. Dealer Transport Law - SCADA

File - Perceptionicity Institute

Untitled - Cottonwood - Oxendale Chrysler Dodge Jeep

Blue Ridge Nissan - Blue Ridge Chrysler Dodge Jeep RAM

February 2016 Newsletter

Montana Automobile Dealers Association