DECEMBER 15, 2009


IN THIS ISSUE

DEALER NEWS & INFORMATION

Automotive News at a Glance

 

REGULATORY & LEGAL UPDATES

Advertising Q&A Regarding Customer Cash Down

MSEC Alert on Employer Posting Requirements: Two Recent Changes

IRS Answers "Cash For Clunkers" Consumer Tax Questions

 

LEGISLATIVE UPDATE

Please Join CADA In Showing Your Support For Sen. Chris Romer

Save the Date!

Be A Part of CADA's Grassroots Efforts!

 

UPCOMING SEMINARS

Upcoming Seminars

Dealer Rights and Protections Seminar


CALENDAR OF EVENTS
Upcoming Events

Legislator Meeting

NADA Convention and Exposition

Denver Auto Show

CADA 2010 Annual Golf Tournament


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Share Your Accomplishments

 

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

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

CLICK HERE or scroll to the bottom
of this page if you want to be
added or removed from our list.


Need Acrobat Reader
to view linked
documents?
CLICK HERE for a FREE
download from Adobe.


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.


SELL MORE CARS!

CADA has developed and made available to you a FREE DOWNLOADABLE BI-FOLD BROCHURE that you can print in-house and hand out to prospective buyers. 

Although the Cash for Clunkers program is over, the federal government is still working to put money in the pockets of new car buyers. A new program that provides a sales and excise tax deduction to new car buyers offers great incentives for people to buy a vehicle —
BUT BUYERS MUST ACT BEFORE JANUARY 1, 2010!


Please click here to view and download this powerful and time-sensitive resource.

___________________________________________

Questions?  Please contact Tim Jackson at 303.831.1722 or email Tim.Jackson@coloradodealers.org.


AUTOMOTIVE 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.

  • Bill Ford praises Obama for auto bailout
    The Detroit News, December 15
    Ford Motor Co. Executive Chairman Bill Ford Jr. said Monday President Barack Obama was right to rescue domestic competitors General Motors and Chrysler.
  • Bill passed in Congress affects local dealerships
    Times Call.com, December 14
    Hundreds of auto dealers around the country threatened with closure are encouraged that they will finally be able to make their case to stay open.
  • Banker Baiting 101
    The Wall Street Journal, December 15
    The Obama Administration desperately wants a strong economic recovery, or so it says, but does it have any idea how to encourage one?
  • Advocates want consumer agency to watch auto sales
    The Washington Post, December 9
    Consumer advocates argued Wednesday that Congress should include auto dealers under the oversight of a proposed finance industry watchdog.
  • House votes to reform financial regulations
    The Washington Post, December 12
    More than a year after the near-collapse of Wall Street plunged the economy into crisis, a divided House on Friday approved the most sweeping overhaul of the nation's financial regulatory system since the Great Depression.
  • Senate GOP denied on spending filibuster attempt
    The Washington Post, December 13

    The Democratic-controlled Senate on Saturday cleared away a Republican filibuster of a huge end-of-year spending bill that rewards most federal agencies with generous budget boosts.
  • Michigan mpg gains from clunkers program lag nation
    The Detroit News, December 14
    State ranked 50th in fuel-efficiency increase for incentive program
  • USA Today, Open Road
  • …more news articles are included at the end of this issue.


ADVERTISING Q&A REGARDING CUSTOMER CASH DOWN

Question:  Is an advertisement that includes the customer down-payment, “your cash”, or “your trade” in a sample calculation to reach a bottom-line price (“Buy for as low as”, “Your price”, “Total price”, etc.) allowable in Colorado?

MSRP                      $20,000
Your discount*          $ 2,000
Factor rebate            $ 2,000
Your cash or trade    $ 3,000
--------------------------------------
Buy for as low as      $13,000*
*Must qualify: military, rebate, loyalty, etc.    

Answer:  CADA ran this type of advertisement past the Auto Industry Division (AID) for a general opinion.  While neither the Division, nor CADA can give legal advice, they can provide advice on what types of ads they would consider potentially of concern and a violation.  The Division saw “major” problems with this type of ad, and that in particular it may violate state Advertising Rules 5 and 9.  Dealerships are reminded that any advertisement above all is subject to state statutes that require an ad not be “misleading”.  What is “misleading” is certainly a gray area, but dealerships are advised to take into considerations the risks of a consumer complaint and/or lawsuit in any advertisement. 

Below are prior Open Road articles with more information on advertising requirements.   

March 26, 2008

INTERNET ADVERTISED PRICE MUST MATCH PRINT ADS

March 19, 2008

ADVERTISEMENTS MUST INCLUDE DEALERSHIP NAME

January 10, 2007

AUTO INDUSTRY DIVISION ALERT REGARDING INTERNET ADVERTISING VIOLATIONS

* * * * * * * *

MSEC ALERT ON EMPLOYER POSTING REQUIREMENTS: TWO RECENT CHANGES

Reminder:  Businesses are required as of November 21, 2009, to post a notification explaining the Genetic Information Nondiscrimination Act of 2008. If you haven’t enrolled in the MSEC subscription poster service, you can print the new posting from the link below. Then post it next to the EEOC poster you already have. This will bring you into compliance with Federal Requirements.

http://www.eeoc.gov/employers/upload/eeoc_self_print_poster.pdf

For Colorado Requirements, you need to print off this “Notice to Workers” concerning unemployment benefits. And you will be in state compliance.

http://www.coworkforce.com/UIT/forms/502Poster.pdf

* * * * * * * *

IRS ANSWERS "CASH FOR CLUNKERS" CONSUMER TAX QUESTIONS

In the event dealerships are asked this question by consumers—some articles and information circulated apparently generated confusion on this.   

In a New York Times article published earlier this month, the Internal Revenue Service’s Peggy Riley clarified for consumers and dealers whether the “cash for clunkers” rebates are taxable income. According to the program’s rules, “the credit is not income for the consumer.” That means no federal income tax, Riley told the Times. Dealers, however, are responsible for paying taxes on income from the program. To the extent the dealership receives any scrap value for the customer’s trade-in, that scrap amount also is included in the dealership’s income, according to an automotive alert issued by the IRS’ Motor Vehicle Technical Adviser Terri Harris. The IRS has urged dealers to maintain proper records of the CARS transactions, including the gross receipts from the sale of the new vehicle, the CARS payment amount, and any expenses incurred to dispose of the traded-in vehicle. To read the IRS’ automotive alert, visit www.nada.org/cashforclunkers.

* * * * * * * *

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


aaPLEASE JOIN CADA IN SHOWING YOUR SUPPORT FOR SEN. CHRIS ROMER

CADA will host a fundraiser for Sen. Chris Romer (D-Denver).  Sen. Romer is a prime sponsor of SB 91, CADA’s expansive franchise bill that passed through the legislature during the 2009 Legislative session and was signed into law by Governor Ritter shortly thereafter.  As our bill sponsor, Sen. Romer fought for dealers both in committee hearings and on the floor of the Senate and the House of Representatives.  Additionally, he legislators fought hard to keep unfriendly amendments to open up dealers on Sunday off of the bill. 

In addition to his extraordinary work during the 2009 Session on the dealer franchise act, Sen. Romer has agreed to carry another dealer bill during the 2010 legislative session.  This legislation will assist dealers that were terminated during the GM and Chrysler bankruptcies.  This bill will be another incredibly meaningful piece of legislation for the dealer body and we are exceedingly appreciative of the commitment that Sen. Romer has made to the members of CADA and the communities and consumers that you serve. Please join us in supporting this great legislator and staunch supporter of dealer issues.



Event Details
:

The fundraiser for Sen. Chris Romer will be on Wednesday, December 16th from 5:00p.m. – 7:00p.m.

These events will be held at the William D. Barrow Building, CADA Headquarters.  CADA suggests that dealers contribute $200 each to Sen. Romer and Rep. Rice

If you can’t attend, please consider mailing a check to CADA (290 E. Speer Blvd, Denver, 80203, Attn: Melissa Kuipers) ahead of the events so we can present your contributions to Rep. Rice and Sen. Romer on the evening of their events.

We know Sen. Romer and Rep. Rice will be extremely appreciative of your support. The staff at CADA greatly appreciates all the support we receive from our dealer members.  Thank you!

* * * * * * * *

SAVE THE DATE!

December 16th, 5:00 – 7:00: Fundraiser for Sen. Chris Romer (Senate sponsor of CADA bills during 2009 and 2010 session)

December 17th, 7:30 a.m.: Legislative Policy Committee Meeting to discuss 2010 Legislation

* * * * * * * *

BE A PART OF CADA'S GRASSROOTS EFFORTS!

In large part, CADA’s legislative success is due to the active and meaningful participation of our member dealers in grassroots activism.  We are in the process of scheduling 30 meetings across Colorado between now and when the General Assembly convenes for the 2010 Session on January 13th.  To see a current list of the meetings we have confirmed, please click here and RSVP to Lauren Stadler at lauren.stadler@coloradodealers.org if you plan to attend.  We can’t wait to see you at these very important and educational meetings!

* * * * * * * *

Questions or Comments?  Please contact:


a
DEALER RIGHTS AND PROTECTIONS SEMINAR
KNOW YOUR RIGHTS! RECOGNIZE YOUR OBLIGATIONS!
Presented by William E. Walters, Kelly Garnsey Hubbell + Lass, LLC

Colorado enacted significant new franchise law protections for dealers in 2009:

Dealership Rights: Make sure you understand these rights and dealer obligations in order to fully assert protection—and to ensure you are not signing rights or protections away without recourse!
     o Colorado Motor Vehicle Dealer Act (“Franchise Law”) – NEW protections
Dealer Obligations: keep your dealership out of the cross-hairs of regulators, lawyers, and consumers!

DENVER
Tuesday, Dec. 22nd
11:30am to 1:30pm
Lunch included


William D. Barrow Building (CADA Headquarters)
290 E. Speer Blvd
(SW Corner of Grant/Speer)
Phone: 303.831.1722


CLICK HERE for details and registration info.

* * * * * * * *

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

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

Dealer Rights and Protections Seminar

Tuesday, Dec. 22nd

11:30am-1:30pm

Click here for more info!

William D. Barrow Building
(CADA Headquarters)
290 E. Speer Blvd
(SW Corner of Grant/Speer)
Phone: 303.831.1722

Employment Law WEBINAR:
Reducing Lawsuit Risks of Terminations and Staff Reductions

By Todd Fredrickson, top Denver employment attorney, Fisher & Phillips, LLP

Archive of this webinar can be viewed any time

Session was completed June 18, 2009

Click here for a registration form and more information (login information and slides provided upon registration)

-Includes detailed Q &A by those linked in on June 18th


Event Description
Date/Time
Location

Legislator Meeting

*Key Meeting*

House Minority Leader Mike May

Tuesday, December 15, 2009

6:00 p.m., Dinner

Trappers Chophouse
(inside Holiday Inn)
19308 E. Cottonwood Dr.,
Parker, 80138

CLICK HERE for a full list of meetings or to register to attend!

NADA Convention & Exposition Feb. 13-15, 2010

Orange County Convention Center, Orlando FL

CLICK HERE for more information from the official website.

Denver Auto Show



Wednesday, April 7, 2010

thru  

Sunday, April 11, 2010

Colorado Convention Center

700 14th Street Denver 80202

CLICK HERE for more information.

CADA 2010 Annual Golf Tournament

SAVE THE DATE!

Monday, August 9, 2010

11:00am-11:45am Registration/Practice

12:00 Noon – Shotgun Start

Lakewood Country Club
6800 W. 10th Avenue
Lakewood, CO  80214



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

  • Top-of-the line BMW Z4 coming to Detroit auto show
    The Detroit News, December 14
    There won't be an official M version of the redesigned Z4 roadster. But you can kick the tires of the next hottest thing in January when a top-of-the-line Z4 debuts at the North American International Auto Show in Detroit.
  • Supreme Court rejects appeal of Chrysler bankruptcy exit
    The Detroit News, December 14
    The U.S. Supreme Court today rejected an appeal of Chrysler's bankruptcy and the sale of its best assets.
  • November Ford sales jump 19.8% in Europe
    The Detroit News, December 14
    Ford Motor Co.'s auto sales leapt 19.8 percent last month in its 19 key European markets -- the company's sixth consecutive monthly increase in the region.
  • Toyota to start selling plug-in hybrids in 2011
    The Detroit News, December 14
    Toyota showed its new plug-in hybrid Monday, available for leasing this month in Japan, the U.S. and Europe, and promised the green vehicle for sale to regular consumers by 2011 at an "affordable" price.
  • Gas-electric car sales expected to rise in '10
    The Detroit News, December 13
    Sales of fuel-efficient gas-electric hybrids are expected to rise next year, outpacing the U.S. auto market's overall growth, according to a new forecast.

If you want to be added to our mailing list, please CLICK HERE.

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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