MARCH 27, 2012

IN THIS ISSUE

a DEALER NEWS & INFORMATION

Auto Industry News at a Glance

 

REGULATORY & LEGAL UPDATES

FTC Targets Dealerships For Deceptive Advertisements

State Alternative Fuel Tax Credits: Beware of Confusion on Leases

 

LEGISLATIVE UPDATE

CADA Bill Tracker

Federal: Senate Highway Bill Includes NADA-Backed Odometer Provision

 

UPCOMING SEMINARS

Wells Fargo Insurance Services: Medical Marijuana in the Workplace

KPA Weekly Webinar

Upcoming Seminars


CALENDAR OF EVENTS

Upcoming Events


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Share Your Accomplishmens

 

THE AFTERFACT

All the News That's Fit to Email!


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CADA Open Road is now beginning its sixth year of service, providing uninterrupted weekly news and information for Colorado automotive professionals to better compete in our industry, since January 3, 2007.


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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.




FTC TARGETS DEALERSHIPS FOR DECEPTIVE ADVERTISEMENTS
Alleges Dealers Falsely Promised To Pay Off Trade-ins, No Matter What Consumers Owed, FTC News Release, 3/14/2012a

Five car dealers around the country have agreed to Federal Trade Commission settlement orders that require them to stop running ads in which they promise to pay off a consumer's trade-in no matter what the consumer owes on the vehicle.

The FTC charged that the ads, which ran on the dealers' websites and on sites such as YouTube.com, deceived consumers into thinking they would no longer be responsible for paying off the loan balance on their trade-in, even if it exceeded the trade-in's value (i.e., the trade-in had "negative equity"). Instead, the dealers rolled the negative equity into the consumer's new vehicle loan or, in the case of one dealer, required consumers to pay it out of pocket.

The proposed settlements, reached as part of the FTC's ongoing efforts to protect consumers in financial distress, bar all of the dealers from making similar deceptive representations in the future. The cases are the first of their kind brought by the FTC. The Commission also issued a new consumer education publication titled Negative Equity Ads and Auto-Trade-ins to help consumers understand these types of ads.  

The dealers named in the FTC's complaints are:

  1. Billion Auto, Inc., in Sioux Falls, South Dakota;
  2. Frank Myers AutoMaxx, LLC, in Winston-Salem, North Carolina;
  3. Key Hyundai of Manchester, LLC and Hyundai of Milford LLC, in Vernon and Milford, Connecticut, respectively, and which advertise jointly; and
  4. Ramey Motors, Inc., in Princeton, West Virginia.

The FTC's complaints allege that despite the dealers' claims, consumers still end up being responsible for paying the difference between the trade-in loan balance and the vehicle's value. The complaints charge that the dealers' representations that they will "pay off" what the consumers owe are false and misleading, and violate the FTC Act.

Examples of the allegedly deceptive advertisements include:

  • "Credit upside down? Need a new car? Go to Billionpayoff.com. We want to pay off your car." The advertisement depicts a car moving, inverts the video to depict it upside down, and then turns it right-side up again.
  • "Uncle Frank wants to pay [your trade] off in full, no matter how much you owe."  
  • "I want your trade no matter how much you owe or what you're driving. In fact I'll pay off your trade when you upgrade to a nicer, newer vehicle."
  • "Ramey will pay off your trade no matter what you owe . . . even if you're upside down, Ramey will pay off your trade."

CLICK HERE for the full news release. 

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STATE ALTERNATIVE FUEL TAX CREDITS: BEWARE OF CONFUSION ON LEASES

Media target dealers after Department of Revenue notified consumers to re-pay lease tax credits claimed by both the consumer and leasing company. 

IMPORTANT:  Dealership personnel should be especially careful to never give tax advice to consumers! Directing consumers to relevant sources and publications, including links or handouts, can provide assistance; but it is critical to ensure there is no impression of specific tax advice.

Background:
Some Colorado dealers have discovered that on certain leases of alternative fuel vehicles, the available Colorado income tax credit was claimed by both the leasing company and the consumer.  Those consumers received a letter from the Colorado Department of Revenue to pay back the credit (in some cases over $2,000) within ten days.  Needless to say, these consumers were extremely upset—and some of that blame was directed toward the leasing dealership.  The Department of Revenue has indicated 189 instances of duplicate credits based on audits conducted through tax year 2010.        

By statute, only one credit can be claimed per vehicle.  A Department of Revenue regulation clarifies priority regarding lessor/leasing company and lessee/consumer.  The calculation of the credit and guidance on these topics is found in the Department publication Income FYI #9.  (Visit www.taxcolorado.com, “Individual Income Tax” on the top menu-bar – FYI #9 is listed upfront; an updated version is now posted with revision date 02/2012).

CLICK HERE for the full alert, including information on pending legislation to address this problem. 

DISCLAIMER:
CADA is not authorized to dispense legal or tax advice.  While we may provide and forward relevant laws or regulations, and offer business advice, dealers and consumers must consult legal counsel and/or a CPA.


* * * * * * * *

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



CADA BILL TRACKER

Follow the Colorado Auto Dealers Bill Tracker HERE!

* * * * * * * *

FEDERAL: SENATE HIGHWAY BILL INCLUDES NADA-BACKED ODOMETER PROVISION
NADA 60-Second Email, March 14, 2012

This afternoon the Senate passed a two-year highway bill by a vote of 74-22. Included in this comprehensive bill was language (Sec. 31206) that directs NHTSA to issue regulations to prescribe procedures to allow odometer disclosures to be made electronically. NADA strongly supported this provision because many states want to create an electronic vehicle titling system, but according to NHTSA, current law requires a “paper trail” for odometer disclosures.

NADA also worked to keep provisions out of the highway bill that were unworkable or needlessly burdensome. Some of the provisions that were not included in the bill would have required disclosing the VINs of vehicles advertised on the radio and mandating odometer statements for vehicles up to 24 years old.

The NADA Legislative Office thanks those NADA directors and ATAEs who helped ensure that the Senate-passed highway bill is beneficial to consumers and dealers alike.

Don Chalmers
Chairman, Government Relations Committee

* * * * * * * *


a
MEDICAL MARIJUANA IN THE WORKPLACE
Provided by Wells Fargo Insurance Services

Guest speaker: a
Mike Anton, AIS, Marketing Representative

Mike Anton works closely with contracted insurance agents, helping them identify and attract potential policyholders, as well as service existing accounts. He also maintains strong relationships with Pinnacol’s policyholder associations. Mike joined Pinnacol in 1997 as an underwriting technical coordinator, becoming a marketing representative in 1998. His experience as an insurance underwriter is a real advantage in helping agents and associations understand complex workers’ compensation policies.

Prior to joining Pinnacol, Mike served as underwriting manager with RTW, Inc. for three years, and as regional director of underwriting with CIGNA in Singapore for four years. Anton is an Associate in Insurance Servicing (AIS) and received his Bachelor of Science degree in marketing from the University of Northern Colorado.a

Topic includes:
Mike Anton will be presenting an overview of Colorado Medical Marijuana laws and how they can affect your workers’ compensation program.

Thursday, March 29, 2012
8:30a.m. – 9:30a.m. Vail Room

Wells Fargo Insurance Services USA, Inc.
5755 Mark Dabling Boulevard, Suite 300
Colorado Springs, CO 80919
OR by Conference call:
888.549.3557
Code: 5287595

Please RSVP by March 23, 2012 to:
Diana Sanderson
diana.sanderson1@wellsfargo.com
719.592.1177 or 800.332.9256

* * * * * * * *

KPA WEEKLY WEBINAR: 
Covers an Environment & Safety or an HR topic each week

Every Thursday
 
10:00-11:00am (MST)

CLICK HERE for upcoming topics and to register!

Previously recorded webinars are also available at the above link.

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* * * * * * * *

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

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

KPA Weekly Webinar

Covers an Environment & Safety or an HR topic each week


Every Thursday  

10:00-11:00am (MST)


CLICK HERE for upcoming topics and to register!

Previously recorded webinars are also available at the above link.

Medical Marijuana in the work place

Brought to you by:  Wells Fargo Insurance Services, CADA’s endorsed broker for Workers Compensation coverage

Thursday, March 29 

8:30-9:30am (MST)


CLICK HERE for more information.
In person OR by Conference call:
888.549.3557
Code: 5287595

RSVP by March 23, 2012 to: 
Diana Sanderson
diana.sanderson1@wellsfargo.com

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


a

Event Description
Date/Time
Location

Stay tuned!

 


 




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