MAY 3, 2011

IN THIS ISSUE

DEALER NEWS & INFORMATION

Auto Industry News at a Glance

 

REGULATORY & LEGAL UPDATES

Lease Advertising Under Regulation M
Federal Reserve Board - FREE Information Brochure for Consumers

 

LEGISLATIVE UPDATE

CADA Hosts Reception With Chris Romer

 

UPCOMING SEMINARS

Upcoming Seminars
A Candid Comparison of the Top DMS Systmes

How Independents Make Big Bucks in the Body Shop Business

State Compliance Manual Training


CALENDAR OF EVENTS
Upcoming Events

CADA Annual Golf Event


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

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

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for various CADA seminars & events.


MEMBERSHIP RESOURCES

CLICK HERE for details on the
Speaker and Educational
Resources
.

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Endorsed Vendors/Programs
.

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.

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.

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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.


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Friday, 7 a.m. to 4 p.m.

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Endorsed Vendors/Programs
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 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.



…more news articles are included at the end of this issue.




LEASE ADVERTISING UNDER REGULATION M
Guest Article By Rob Cohen, Esq.

Key excerpts below; CLICK HERE for the full article.  Dealers should also note that while currently Reg. M applies to consumer leases with a ‘total contractual obligation’ over $25,000, as of July 21, 2011, that threshold increases to $50,000 (and will be adjusted annually for inflation starting 1/1/2012).


The availability of favorable leasing programs has resulted in dealers advertising more leases than in the past. Unfortunately, dealers (and even some manufacturers) often fail to include proper lease disclosures in advertisements. This article will explain the basics of closed-end lease advertising under federal law (Regulation M).  Note: Since dealers generally do not offer open-end leases, I will not discuss the additional disclosure requirements associated with those types of vehicle leases.

Basic Disclosures

Lease advertising, like finance advertising, is all about trigger terms. If you advertise either a monthly payment or anything about the drive-off (e.g., cap. cost reduction, security deposit, “no down payment”, etc.) then this triggers the need for the following additional disclosures:

  1. Clearly identify the transaction as a lease (e.g., “Lease for”); and
  2. State the number, amounts and period of scheduled payments (e.g., “$399 per month for 39 months.”); and
  3. State the total amount due on or before delivery (e.g., “$999 total amount due at lease signing”); and
  4. State whether or not a security deposit is required (e.g., “(no security deposit required).”).
    [Reference: 12 CFR § 213.7(d)]

. . . [see full article for additional content]

Toll-free Number Misconception

Dealers and attorneys alike often have the misconception that a toll-free number can be used in radio and television in lieu of all the disclosures. This is simply not true.  What is true is that a toll-free number where customers can get the required disclosures can be used to avoid only two disclosures, one of which is for open-end leases and the other is the amount or non-existence of a security deposit.(12 CFR § 213.7(f)(1))  Again, since dealers do not generally advertise open-end leases, a toll-free number really would only save a dealer from having to mention a security deposit (hardly worth the trouble).

* * * * * * * *

FEDERAL RESERVE BOARD - FREE INFORMATION BROCHURE FOR CONSUMERS

The Federal Reserve Board has published a consumer information brochure that may be helpful for dealers.  Often consumers are confused by the mandated notices they receive, and need further information—in addition, on occasion they may also issue demands about ‘rights’ that go beyond requirements, or even beyond what dealers are allowed to provide.  

CLICK HERE for the publication “What You Need to Know: New Rules about Credit Decisions and Notices” (see option on the right to download a PDF version)

(As links may change, it is available at www.federalreserve.gov, under the top index tab, Consumer Information”, and then under the “What you Need to Know Series”).

* * * * * * * *

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

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


aa

CADA HOSTS RECEPTION WITH CHRIS ROMER

I can't attend, but I would like to contribute

Or RSVP to Nick@RomerForMayor.com or (720) 432-4024

* * * * * * * *


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A CANDID COMPARISON OF THE TOP DMS SYSTEMS
Making sense of the strengths and weaknesses of each 

Presenter by Paul Gillrie of The Paul Gillrie Institute

Since 1992 Paul Gillrie has been a trusted source by a multitude of dealers seeking to upgrade or replace their dealership management systems. His guidance is sought in the assessment of needs, choosing the correct system relative to those needs, cost comparisons and in contract negotiations. Paul has agreed to spend 90 to 120 minutes with us on a very special webinar. He will discuss the top systems available and spell out the strengths and weaknesses of each. Especially if your current contract expires this year or next, this is your opportunity to get an expert's review of the options available to you. This is a special opportunity - don't miss it!

Thursday, May 5, 2011
11:00am (MDT)

REGISTER ONLINE!

* * * * * * * *


HOW INDEPENDENTS MAKE BIG BUCKS IN THE BODY SHOP BUSINESS
Don't ignore this potentially lucrative profit center!

Presented by Scott Krohn: V.P. Operations of ABRA, Inc.

Auto dealers have been abandoning the body shop business in great numbers - but did they make the right decision? Perhaps they gave up to soon and learning from the models provided by successful independent shop operators could have turned a perennial soft performer into a dealership profit center powerhouse. Spend just 90 minutes with Scott Krohn, V.P. of operations with ultra-successfully body shop operator ABRA, Inc. Scott will reveal to you the secrets of success and high profits in a dealership-based body shop operation. If you are looking for a new high-potential profit center for your store, this could be it.

Thursday, May 12, 2011
11:00am (MDT)

REGISTER ONLINE!

* * * * * * * *

aTO REGISTER ONLINE FOR ANY CADA
SEMINAR OR EVENT, PLEASE VISIT:

www.coloradodealers.org/registration
Event Description
Date/Time
Location

A Candid Comparison of the Top DMS Systems

Presenter by Paul Gillrie of The Paul Gillrie Institute

Thursday, May 5, 2011
11:00am (MDT)

REGISTER ONLINE!

How Independents Make Big Bucks in the Body Shop Business

Thursday, May 12, 2011
11:00am (MDT)

REGISTER ONLINE!

State/Dealer Compliance Roll-Out and Training Guide

June 21, 22, 23

Various locations across the state

More registration details coming soon!

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



Event Description
Date/Time
Location

CADA
Annual Golf Event



Monday, September 12, 2011

Usually a 12:00pm Shotgun Start


Green Gables Country Club
6800 West Jewell Avenue
Denver, 80232

Registration coming soon!




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.


THE AFTERFACT


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Colorado Automobile Dealers Association
290 East Speer Boulevard Denver, CO 80203
Telephone: 303.831.1722 | Facsimile: 303.831.4205
www.coloradodealers.org