December 30, 2014
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IN THIS ISSUE
DEALER NEWS & INFORMATION
– Last Change! Register for Today's CADA Webinar: Dangers Lurking for Dealers With Massive Recalls
– Colorado Dealer Breakfast
– Auto Industry News at a Glance
– Automotive News Best Practices
– Clear The Air Foundation 60 Second Video
– We Deliver Business
– SAVE THE DATE! CADA Webinar on Recalls featuring Fairfield and Woods attorney Michael J. Dommermuth
– KPA WEBINAR - NO WEBINAR, HAPPY HOLIDAYS!
– Upcoming Seminars
REGULATORY & LEGAL UPDATES
– January 1st Sales Tax Rate Changes
– Advertising Rule Changes Effective December 30, 2014
ALLIED MEMBERS / ANNUAL MEMBER GOLF EVENT SPONSORSHIP ADS
– Accelerated Services
– Heider, Tanner & Dirks, Inc., CPA
– 35 Years of Raising the Standard In F&I
– UniFirst... The Nation's Preferred Auto Uniform Supplier
– NADA Supports Bipartisan Effort to Reform CFPB Auto Lending Guidance
– CADA Bill Tracker
CALENDAR OF EVENTS
– Upcoming Events
HIGHLIGHTS & TRANSITIONS
– Let Us Know About Your Accomplishments!
–All the News That's Fit to Email!
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CADA Open Road is now beginning its eighth year of service, providing uninterrupted weekly news and information for Colorado automotive professionals to better compete in our industry, since its first issue on
Jan. 3, 2007.
LAST CHANCE! REGISTER FOR TODAY'S CADA WEBINAR - DANGER LURKING FOR DEALERS WITH MASSIVE RECALLS
COLORADO DEALER BREAKFAST
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.
- Connected cars overtake video games at electronics show
The Detroit News, December 30
"CES has become a major launch point for a lot of the big automakers," said Mark Boyadjis, technology analyst for researcher IHS. "CES is a way for them to get on a global stage for technology."
- First F-150 ads focus on durability, not fuel economy
Detroit Free Press, December 30
The first national advertising campaign for the 2015 Ford F-150 will begin airing Wednesday to tout the capability of the new truck. Notably absent in the first three TV spots is any mention of the fuel economy figures for the lighter, aluminum-bodied pickup.
- Federal government lost $9.26B on auto rescue
The Detroit News, December 30
The U.S. government lost $9.26 billion on the auto industry rescue, according to the final accounting released late Monday.
- Car and truck sales fall in Colorado in November
The Denver Post, December 29
Car and truck sales fell four percent in November 2014 compared to November 2013, according to the Colorado Automobile Dealers Association.
- Cadillac Looks to Update Its Image With New CTS-V
NBC News, December 29
Cadillac is hoping to radically revise its image with new midsize CTS-V debuting at the Detroit Auto Show next month. The high performance sedan is anything but the classic Caddy boulevard cruiser, with its supercharged 6.2-liter, 640-horsepower V-8 and track-tuned suspension.
- The 13 most intriguing new cars coming in 2015
Detroit Free Press, December 28
After a strong year for car and truck sales, automakers have a flood of new models in the works to woo buyers in 2015.
- Electric cars a win for the Colorado environment, supporters say
Denver Business Journal, December 23
A recent study saying that electric cars that rely on power from coal-fired plants aren't all that great for the environment is getting criticism from Colorado supporters of electric vehicles.
- LA Show offered fuel cells, power-packed vehicles & even a video game car
Tim W Jackson, Wordpress Blog
See more at http://timwjackson.wordpress.com
- GM ordered 500,000 ignition switches before recall
Detroit News, Autos Insider
See more at www.autosinsider.com
- Move Over Land Yachts, Compact S.U.V.s Are in Demand
The New York Times, Wheels
See more at http://wheels.blogs.nytimes.com
- Just Cool Cars: '40 Chevy pays homage to P-51 Mustang
USA Today, DriveOn
See more at http://content.usatoday.com/communities/driveon/index
- Five best motorcycles of 2014
Los Angeles Times, Autos
See more at http://www.latimes.com/classified/automotive/highway1/
- Consumer Reports Least Loved Cars 2014
See more at http://autos.aol.com/
- Google Seeks Partners for Self-Driving Car
The Wall Street Journal CARS
See more at http://online.wsj.com/public/page/news-autos-automotive.html
- 2015 Mustang: Ford's pony has new tricks
See more at http://money.cnn.com/autos/
…more news articles are included at the end of this issue.
CLEAR THE AIR FOUNDATION 60 SECOND VIDEO
JANUARY 1ST SALES TAX RATE CHANGES
The state Department of Revenue – Division of Taxation posts sales and use tax changes prior to January 1st and July 1st each year. Dealerships should be aware of these changes and be on the lookout to ensure the tax database being utilized reflects these changes. There may be a time-lag between the effective date and the update of these data sources.
CLICK HERE for a listing of January 1, 2015 Sales Tax Rate Changes.
IMPORTANT ALERT: SALES TAX INCREASES ARE EFFECTIVE FOR THE FOLLOWING:
Click here for information on the available databases that provide tax-rates by address.
Keep in mind that all self-collected jurisdictions must report and changes are effective on these two dates each year. Home-rule jurisdictions, however, can change at any time, and while many still adhere to these timeframes and report to the state, their changes do not always shown up in this list.
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ADVERTISING RULE CHANGES EFFECTIVE DECEMBER 30, 2014
Recent changes are minor
The Auto Industry Division, like other state agencies, is under a requirement by the Governor’s office to review all of its existing rules for any needed changes (20% per year is the goal). Advertising rules were recently reviewed and fairly minor changes were proposed. Click here to review the redline changes – these are effective Dec. 30, 2014. In summary:
- The term “Computer Display” is defined to mean any electronic device capable of presenting a commercial message.
- Rule 6 regarding “used” vehicles not being misrepresented as “new” was re-written to more simply state:
- A used vehicle shall not be advertised in any manner that creates the impression that it is new.
- Rule 7 regarding types of prior history that must be disclosed upfront in advertising was modified to remove taxi cabs and police vehicles – primarily due to the difficulty of being able to determine this information with certainty. Colorado and many states do not have brands on these uses and new services like Uber for example will make such use more difficult to determine. The initial proposal was to add “prior rental vehicle” which would have created many of the same issues.
- Salvage, rebuilt from salvage, and flood remain and are the three types of prior history that must be included in an advertisement if the dealer has knowledge of that history.
- Rule 13 that covers including all costs in an advertised price was modified to be clear that any/all government fees or taxes are clearly excluded.
- Rule 14 covering rebates was modified to include a statement specifically targeting ads that combined rebates that are not all attainable (an issue the FTC has targeted in recent actions):
- When advertising rebates, incentives, or other offers, a dealer shall not combine such offers or give the impression that such offers are obtainable, when in fact they are not.
Three new rules were added:
- Rule 17. If any advertisement relates to a lease, the advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a vehicle. [Note: this is already required under federal law].
- Rule 18. Statements, such as “Everybody Financed,” “No Credit Rejected,” “We Finance Anyone,” and other statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit, are prohibited, unless such statements are true. [Note: false statements are already problematic].
- Rule 19. Bait advertising, as defined in § 18-5-303, C.R.S., is not allowed.
- This is a mostly technical change to include the existing prohibition that is under criminal statutes to also be included in the dealer laws for enforcement reasons.
CADA will be working further with the Division and the dealer board on the development of industry guidelines to help convey and provide clarity to dealers how all of the advertising rules apply in various contexts and mediums. The advantage of such guidelines is that examples can be provided, and they can more easily be updated to address new technologies and practices.
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If you have questions on any legal or regulatory topic, please contact:
Tammi McCoy, VP, email@example.com, 303.282.1449
Tim Jackson, President, firstname.lastname@example.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.
KPA WEEKLY WEBINAR:
Covers an Environment & Safety or an HR topic each week
Thursday December 25, 2014, 10:00 am Mountain Time
NO WEBINAR: HAPPY HOLIDAYS!
Click here for upcoming Human Resources webinars.
Click here for upcoming EH&S webinars.
Previously recorded webinars are also available
* * * * * * * *
CADA Webinar on Recalls featuring Fairfield and Woods attorney Michael J. Dommermuth
Tues., Dec. 30
CLICK HERE for more info.!
KPA Weekly Webinar
Special Event: HR Practices Webinar for Group Dealerships
CLICK HERE for upcoming topics and to register!
Previously recorded webinars are also available at the above link.
If you have a particular area of interest or would like to suggest a training seminar topic, please contact Marsha Temple at 303.457.5123 or email@example.com
* * * * * * * *
HEIDER, TANNER & DIRKS, INC. CPA
* * * * * * * *
35 YEARS OF RAISING THE STANDARD IN F&I
UNIFIRST... THE NATION'S PREFERRED AUTO UNIFORM SUPPLIER
NADA SUPPORTS BIPARTISAN EFFORT TO REFORM CFPB AUTO LENDING GUIDANCE
NADA is urging Congress to pass HR 5403, a bipartisan bill that nullifies the Consumer Financial Protection Bureau's (CFPB) flawed guidance on auto lending and requires more transparency and accountability from the agency on future guidance.
The new bill, "Reforming CFPB Indirect Auto Financing Guidance Act," would allow the agency to reissue its guidance under a more transparent process.
As previously reported by NADA, in March 2013, the CFPB issued guidance that threatens to eliminate the flexibility of new-car dealerships to discount the interest rate offered to consumers to finance vehicle purchases. The CFPB claims that negotiated interest rates between dealers and their customers create a significant risk of unintentional "disparate impact" discrimination. However, there are a variety of legitimate business-related factors that can affect finance rates, such as beating a competing rate.
"HR 5403 is needed because it requires the CFPB to follow a transparent process when issuing auto finance guidance," said NADA Chairman Forrest McConnell. "The bill would rescind the 2013 auto finance guidance and require public participation for future guidance before it is issued."
NADA urges dealers to contact their House members today to co-sponsor HR 5403.
Find your House representative
View NADA brief on HR 5403
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CADA BILL TRACKER
Follow the Colorado Auto Dealers Bill Tracker HERE!
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 firstname.lastname@example.org. Also include your contact information for further follow-up.
ALL THE NEWS THAT'S FIT TO EMAIL!
- Auto industry acts globally — except on recalls
The Detroit News, December 28
When it comes to making and selling cars, the auto industry thinks and acts globally: There is near-seamless coordination between parts suppliers, factories and dealerships.
- No Excuses: Falling Gasoline Prices Are Impacting Tesla's Sales
Seeking Alpha, December 26
Even rich people prefer to justify a $100,000 purchase by saying they’re saving money somewhere in the equation.
- Top stories of 2014
Automotive News, December 29
The U.S. auto industry returned to full-fledged prosperity in 2014, racking up prerecession sales accompanied by rising transaction prices.
- German premium brands seek to highlight tech lead at electronics show
Automotive News Europe, December 29
Following a number of difficult years, carmakers in the US are upbeat about their prospects for 2015 as the economy continues to improve and falling petrol prices mean consumers have more disposable income.
- Automotive News Calls Cadillac ELR Pricing Strategy A 2014 Blunder
GM Authority, December 28
The luxury automaker revealed the MSRP of the ELR in October of last year, raising questions about General Motors’ pricing strategy for the car.
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