OCTOBER 12, 2010

IN THIS ISSUE

DEALER NEWS & INFORMATION

– Auto Industry News at a Glance

REGULATORY & LEGAL UPDATES

– Employee or Independent Contractor?

– Castle Rock Sales Tax Will Increase 4% Beginning January 1, 2011

LEGISLATIVE UPDATE

– CADA Legislative Policy Committee Dealer Meetings

UPCOMING SEMINARS

– Upcoming Seminars

– Webinar: Six Often Missed Profit Opportunities in New & Used Sales Departments

– Webinar: "Now" Generation Car Shoppers Demanding a New Generation Selling Process

– Webinar: How to Fix Your Technician Upsell Program

– Motor Vehicle Franchise Industry Updates

– NEW: Risk Based Pricing, Red Flags Enforcement and "Top 10" F&I Legal Pitfalls

CALENDAR OF EVENTS
– Upcoming Events

– CADA Regional Meetings

– NADA Convention and Expo

DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

–Jim Reilly of Reilly Buick GMC and Past President of CADA Passes Away

–Share Your Accomplishmens

THE AFTERFACT

–All the News That's Fit to Email!

ARCHIVES

CLICK HERE for Open Road
e-newsletter archives.

CLICK HERE for an Index of Regulatory
& Legal Articles from the Open
Road e-newsletter.

CLICK HERE for Bulletin archives.

CLICK HERE for Colorado Auto
Outlook archives.

CLICK HERE for Denver Auto
Outlook archives.

ONLINE REGISTRATION

CLICK HERE to register online
for various CADA seminars & events.

MEMBERSHIP RESOURCES

CLICK HERE for details on the
Speaker and Educational
Resources.

CLICK HERE for a list of current
Endorsed Vendors/Programs.

CLICK HERE for a list of current
Allied Members.

CLICK HERE for an order form for
CADA forms.

CLICK HERE for information on all member services.

www.nada.org


www.aiada.org

CLICK HERE for NADA
Regulatory Affairs information.

STATE GOVERNMENT RESOURCES

CLICK HERE for the Auto Industry
Division of the Colorado Dept.
of Revenue.

CLICK HERE for the Title and
Registration section of the
Colorado Dept. of Revenue,
Motor Vehicles Division.

CLICK HERE for the Colorado
Department of Labor &
Employment website.

Visit us at www.coloradodealers.org.

CADA Hours of Operation
Monday to Thursday, 7 a.m. to 5 p.m.
Friday, 7 a.m. to 4 p.m.

CADA STAFF

CLICK HERE for a CADA staff listing

If you have questions
or suggestions regarding this
e-newsletter, please
contact Lauren Stadler at
lauren.stadler@coloradodealers.org

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ENDORSED VENDOR/PROGRAMS

CLICK HERE for information about the
Endorsed Vendors/Programs.

If you have trouble viewing any of the links or documents in this e-newsletter, please CLICK HERE to access the web-based version.

DENVER CADA Regional Meeting - 2010

~ IT'S NOT TOO LATE TO REGISTER! ~

CLICK HERE FOR MORE INFORMATION!

 
AUTO INDUSTRY NEWS AT A GLANCE

Listed here are several articles pertaining to the
auto industry in general that appeared recently in newspapers and other media outlets across the nation.

Denver CADA Regional Meeting 2010

Join your colleagues to learn about issues important to you, your dealership, and your operations.                 

Hear what is happening in Colorado’s legislative and regulatory arena and what CADA is doing to proactively address problems that affect dealer survivability and profitability.

Be informed, be involved and be connected! Register today AT NO COST using one of the following methods:

Please click on the box below to register
for this meeting.
To register by phone, please call Lauren Stadler at 303.457.5123
Questions? Call or email Tim Jackson at 303.282.1448 or tim.jackson@coloradodealers.org
or visit www.coloradodealers.org/regionals

EMPLOYEE OR INDEPENDENT CONTRACTOR?
Guest Article By Michael Charapp

Businesses of all types have been increasingly classifying personnel as independent contractors instead of full time employees.   To the maximum extent possible, the IRS wants people who work for employers to be full-time employees.  They want the employers to withhold taxes, make social security and Medicare payments, and issue W-2s at the end of the year.

A recent report by the U.S. Government Accountability Office finds that many of those listed as independent contractors are misclassified, and it has issued an estimate that this misclassification will cost the Treasury Department $7 billion in lost payroll tax revenue over the next ten years.  The U.S. Department of Labor has listed “misclassification” as one of its top priorities for the next fiscal year.  Its 2011 budget request includes an additional $25 million for a “misclassification initiative” that includes 100 additional Department of Labor personnel.

A dealership that classifies personnel as independent contractors and not employees should be sure that the classification is appropriate.

CLICK HERE for the entire article (Clean-up Personnel and Occasional Drivers are noted as key job categories of concern). 

For more information, visit the IRS page in this topic and recent tax tip “Employee vs. Independent Contractor – Seven Tips for Business Owners.”  

See also this prior Open Road article with more on Colorado specific requirements:
Independent Contractors: Be Careful of Employee Misclassification, By Michelle R. Magruder, Esq. of Nemechek & Magruder, LLC.  (CADA Open Road, April 13, 2010).    

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CASTLE ROCK SALES TAX INCREASES TO 4% BEGINNING JANUARY 1, 2011

Early notice was received from both the Town of Castle Rock and from Douglas County of an upcoming tax rate change that will affect motor vehicle sales.  The Castle Rock sales and use tax rates for motor vehicles will increase from 3.6% to 4%, effective January 1, 2011.   CLICK HERE for more information on the Castle Rock city web site. Note the Town will be holding a workshop to cover proper procedures and answer any questions on Thursday, October 14th.

As a reminder, the Department of Revenue Tax section publishes a listing of all tax rates changes of which they are notified within a month or so of each standard change date, January 1st or July 1st of each year.  CADA typically publishes the full list of these changes as soon as it is available. Note that Home Rule cites can change rates at any time, but many coincide with these regular dates on which any state-collected jurisdictions may make changes.  Castle Rock is a home-rule city. 

See also this prior Open Road article for more on resources to assist in identifying current tax rates:

Dec. 8, 2009, Third Party Tax Jurisdiction Database
NOTE:  This article contains links to these third party services as well as guidance about the existing state system; dealers may want to check both systems whenever possible. 

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If you have questions on any legal or regulatory topic, please contact:

• Tammi McCoy, Vice Pres., tammi.mccoy@coloradodealers.org, 303.282.1449
• Tim Jackson, President, tim.jackson@coloradodealers.org, 303.282.1448

DISCLAIMER: CADA is not authorized to dispense legal advice.The information contained in this weekly email is intended to provide important updates and reminders regarding statutes, litigation, and regulations. CADA always advises that dealers should consult legal counsel on the specifics of any laws or regulations to ensure proper compliance

CADA LEGISLATIVE POLICY COMMITTEE DEALER MEETINGS

The CADA Legislative Policy Committee is scheduling dealer meetings with Colorado state legislators in order to increase awareness and gain support for the many policy issues expected to face auto dealers in the upcoming session of the Colorado General Assembly which convenes January 12, 2011.

Several meetings are planned and you are invited to participate in as many of the meetings as you are able to do.

The primary purpose of this series of brief get-togethers is to foster and advance relationships between CADA member dealers and Colorado’s elected leaders.

The following topics areas are expected to be covered in each session:

• Auto industry issues in general
• Colorado dealer issues in particular
• Proposals to repeal Colorado’s ban on Sunday sales of automobiles
• Growing class action litigation against the auto retail industry
• Trends in auto sales in state and nationally
• Sales tax jurisdictional issues

With the economic challenges faced by the industry today, it is more important than ever that state legislators get the opportunity to hear from you on issues of importance to you and your business.

CLICK HERE to view the schedule and RSVP!

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Questions or Comments?  Please contact:

• Melissa Kuipers – VP of Government Relations and Communications
  melissa.kuipers@coloradodealers.org, 303.457.5115
• Tim Jackson, President, tim.jackson@coloradodealers.org, 303.282.1448   

WEBINAR: SIX OFTEN MISSED PROFIT OPPORTUNITIES IN NEW & USED SALES DEPARTMENTS

Creative ideas to bring more cash to the bottom line in your new and used vehicle departments!

11:00am(MDT), Thursday – October 14, 2010

If buying an automobile is a complicated process, then selling one is even more so.  Keeping your staff motivated and productive when selling fewer units than in previous years is challenging.  Necessity demands that dealers find new ways to bring more profit to the bottom line. 

Join us as Steve Nickelsen of Nickelsen Partners highlights six often overlooked opportunities to bring profit to your bottom line in your new and used vehicle departments.

Presented By: Steve Nickelsen, Nickelsen Partners

Cost:  CADA Members $169 / Non-Members $298.00

CLICK HERE for more details!

CLICK HERE to register online!
Enter discount code TCDJ2CADA (not case sensitive)

** DealersEdge does accept "bill me" registrations.  If you prefer to be invoiced, rather than to pay online with a credit card, please call 800-321-5312 for personal and prompt service.

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WEBINAR: "NOW" GENERATION CAR SHOPPERS DEMANDING A NEW GENERATION SELLING PROCESS

More and more dealers are adopting a “negotiation-free” selling model with huge success!

11:00am(MDT), Thursday – October 21, 2010

The Internet has changed the landscape of automobile shopping tremendously; customers are no longer in the dark about car prices!  Online review sites give the disgruntled consumer a megaphone to share their experiences with you dealership.  The costs of maintaining a traditional showroom process continue to climb while effectiveness wanes. 

Join us as Mark Rikess of The Rikess Group discusses why so many dealers are taking action by changing the culture in their showrooms to amore transparent and open non-negotiation based selling system.  Case studies presented demonstrate the effectiveness of this approach, now its up to you to be the catalyst for change in your showrooms.  Learn how successful non-negotiation selling dealers are taking the plunge and making it work!

Presented By: Mike Rikess, The Rikess Group

Cost:  CADA Members $169 / Non-Members $298.00

CLICK HERE for more details!

CLICK HERE to register online!
Enter discount code TCDJ3CADA (not case sensitive)

** DealersEdge does accept "bill me" registrations.  If you prefer to be invoiced, rather than to pay online with a credit card, please call 800-321-5312 for personal and prompt service.

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WEBINAR: HOW TO FIX YOUR TECHNICIAN UPSELL PROGRAM

Are you turning over every stone to find new ways to build service volume and profits?

11:00am(MDT), Thursday – October 28, 2010

There are many credible strategies to building service volume and profits.  Do your technicians provide basic information about needed repairs and maintenance on vehicles currently in your shop?  Is your technician up-sell process failing, do you know how to fix it?

Join us as “Prof” Ray Branch of the KEEPS Corporation discusses all the reasons a technician up-sell program can fail and how you can fix failed process and turn them around to increase your service volume and profits.  Ray’s blueprint should yield an additional .2 to .4 hours to your average consumer repair order. 

Presented By: “Prof” Ray Branch, KEEPS Corporation

Cost:  CADA Members $169 / Non-Members $298.00

CLICK HERE for more details!

CLICK HERE to register online!
Enter discount code TCDJ4CADA (not case sensitive)

** DealersEdge does accept "bill me" registrations.  If you prefer to be invoiced, rather than to pay online with a credit card, please call 800-321-5312 for personal and prompt service.

MOTOR VEHICLE FRANCHISE INDUSTRY UPDATES

Keep Your Dealerships Out of the Cross-Hairs of Manufacturers and Regulators!

Multiple Locations November 9 - 11, 2010

Who should attend?
  Dealer principals, general managers, GSMs, controllers & dealer attorneys

• Dealership Rights: Make sure you understand your rights and obligations in order to fully assert protection—and to ensure you are not signing rights or protections away without recourse!
• Newly enacted Colorado franchise protections
• Review of lessons learned for ALL dealers from GM & Chrysler arbitrations
• Dealer protections against exclusivity and forced facility upgrades
• Review of manufacturer audit and chargeback limitations under Colorado law
• Strategies for responding to increased manufacturer  threats of  deficient sales performance
• Termination benefits  for dealers with discontinued linemakes and individually terminated franchises
• Dealer protections against distributors and foreign manufacturers
• Examples from specific manufacturer programs and actions will be included
• Preview of new and additional dealer protections under consideration for Colorado

Presented by: Richard n. Sox, Bass Sox Mercer Law Firm
Richard Sox is the managing partner at Bass Sox Mercer Law Firm which focuses primarily upon the representation of motoer vehicle dealers.  Mr. Sox assists dealers in both manufacturer sponsored and judicial mediation, state-mandated administravie proceedings as well as in state and federal court. Mr. Sox is not limited to any particular state in his represenation of dealers.  Most recently, he has undertaken the lead role in assisting various state dealer associations in revising and updating their franchise protections.  Mr. Sox was admintted to the florida Bar in 1993.  He writes a monthly franchise law column for Dealer Magazine and is regularly quoted in industry periodicals, including Automotive News.

CLICK HERE for registration and information!

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NEW: RISK BASED PRICING, RED FLAGS ENFORCEMENT AND TOP 10 F&I LEGAL PITFALLS

You can not afford to miss this session designed to inform you about major federal regulatory changes and common errors you need to avoid! 

Multiple Locations November 16 - 18, 2010

Topics to be covered include:

• Risk based pricing, what you must know in order to comply with this new mandate that starts Jan. 1, 2011!
• Red Flags enforcement, why you should use the new model privacy notice. After many delays, active enforcement begins Dec. 31, 2010.  Are you ready?
• Bureau of Consumer Financial Protection, why the “auto dealer exemption” may not apply to your dealership
• Top 10 F&I legal pitfalls – what to look for – what to avoid
• Other hot topics, federal regulatory changes, common errors and much more.

Presented by: Shawn Mercer, Bass Sox Mercer Law Firm
A partner in the Raleigh, North Carolina office of the Bass Sox Mercer law firm.  Mr. Mercer’s national practice is devoted solely to representing motor vehicle dealers.  He provides counsel to the firm’s dealer clients and their local counsel in areas including manufacturer facility and incentive programs, franchise realignment, audit charge backs, sales performance agreements, terminations, dealership relocations and add points. Mr. Mercer regularly represents dealers in disputes with manufacturers and consumers in mediations, administrative proceedings and in state and federal court.  He also assists various state dealer associations with revising and updating state franchise protections and he regularly works with dealers to address factory disputes, F&I concerns, advertising compliance and consumer complaints.

CLICK HERE for registration and information!

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TO REGISTER ONLINE FOR ANY CADA SEMINAR OR EVENT, PLEASE VISIT: www.coloradodealers.org/registration

If you have a particular area of interest or would like to suggest a training seminar topic, please contact Lauren Stadler at 303.457.5123 or lauren.stadler@coloradodealers.org

As car dealers our visions are always beyond the present and embedded in the future. With new car sales on the rise and crippling legislation prevented, we, as dealers can certainly see a Bright Future Ahead!

To learn more about this Future and to explore all the possibilities it can contain, be sure to attend this year’s NADA Convention and Expo in San Francisco. We have so much in store for you! To name a few things headed your way:

• New on Friday night!  A NADA welcome reception co-sponsored by JD Power and Associates
• One stop registration and housing online with immediate confirmation!
• A compact 3 day Convention that wraps up on Monday at 5:00
• New workshops by Google, Ritz Carlton and JD Powers!
• General Sessions to be held on the third level in Moscone West, eliminating the busing to Civic Auditorium
• Advance registration open right up to Friday!
• Early Bird discounted registration fees
• New ID card scanners to replace the expo cards
• Optional badge mailing to your home enabling streamlined credential pickup.

Visit www.nadaconventionandexpo.com for more details!

JIM REILLY OF REILLY BUICK GMC AND PAST PRESIDENT OF CADA, PASSES AWAY

Jim was born at St Francis Hospital in Colorado Springs, CO March 30,1925 to James and Annie (Bourke) Reilly. He was a lifelong resident of Colorado Springs. He died peacefully at home in his sleep Oct 5th, 2010. He attended St Mary School until serving in the Army Air Corps as a pilot. He then graduated from General Motors Institute in Flint, MI. He married Mary Jane "Toni" Hyde in 1955. He is survived by 3 sons, James, Edward and Kevin, six grandchildren Jenna, Jimmy, Joseph, Shannon, Brian and Steven, two great grandchildren Piper and Liam, nieces Chris and Mary and nephew Tom. He was a great supporter of Colorado Springs and the Pikes Peak Hill Climb. He served as President of the Hill Climb for many years. He was still an active member of the Pikes Peak Historical Society "Over the Hill Gang". Jim and his partners built the first auto dealership in what is now known as Motor City. Jim will also be remembered as a model of leadership in the automotive industry, he served as an Officer of te Colorado Springs Auto Dealers, the Colorado Auto Dealers and the Colorado Director for the National Auto Dealers Association. He was owner of Reilly Buick GMC Truck until his retirement. He was known for his work ethic and honesty. Reilly Buick was not just an automobile dealership but was a place where friends gathered. Friendship was the foundation of Jim's success, he was loved and respected by his family and friends. He was always full of fun and mischief. His delightful sense of humor, his guidance and his friendship will be missed Mass of Christian Burial is scheduled for 10am Saturday Oct 9th at Corpus Christi Church, at 2318 N Cascade, Colorado Springs, CO In lieu of flowers contributions may be sent to St Mary's High School, at 2501 E. Yampa, Colorado Springs, CO 80909.

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LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!

Have you or anyone else at your dealership won an award recently? Have you or your dealership provided any outstanding community service? We want to recognize such accomplishments. Please send us a brief write-up of the award or event along with any other information to milestones@coloradodealers.org. Also include your contact information for further follow-up.

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